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......... 6 4 MARKETING OBJECTIVES...................................................................... 9 5 MARKETING STRATEGY...................................................................... 10 6 PRODUCT STRATEGY......................................................................... 12 7 BRAND STRATEGY............................................................................. 14 8 PRICING............................................................................................ 14 9 INTEGRATED MARKETING COMMUNICATION PLAN............................... 15 10 DISTRIBUTION STRATEGY................................................................. 16
Its Easy to be Trendy
Clothing is a beautiful visual demonstration of the social and emotional needs of people wearing it. It also portrays in a clearly understood visual manner, what people of different cultures and styles want socially. Fashion, through times, has gone through many rapid changes and bizarre extremes that it has examples of nearly every kind of clothing function. However in a boutique business the specifications and description of the designs and clothes are so general that they can fit more than one customer, which actually are quite different from each other in nature and this is solely dependent on the taste of the people. Similarly in our boutique we are going to provide the highly trendy and fashionable clothes first time ever in the history of Bahawalpur. Right now our main focus is on women aging 20 to 55. But in the near future we are having plans to expand it to other segments as well. We are also having plans to open the men boutique under the same name in near future. We are focusing businesswomen, and housewives finding less time from their work to stick to the fashion magazines, TV and others. We will provide them the platform where they can come select the trendy ones and feel confident in their circles.
“Satisfying our customers by providing them best qualitative stuff and unique designs keeping in view their comforts and excellence”
2 ENVIRONMENTAL ANALYSIS
2.1 EXTERNAL ENVIRONMENTAL ANALYSIS
By the careful external environmental analysis w find out the following factors important to consider in order flourishing in the industry
Pakistan is very instable political country. We are having laws but no enforcement at all. This thing is devastating for any industry. Elections run through almost every year although for none but for many reasons. Every government brings new rules and policies. Even different political parties are against fashion industry like MMA. Taxes, FEDs and other import duties are being imposed making hard to survive. Despite of all these fashion industry is flourishing and renowned in the world.
Inflation rate in Pakistan is rising every year. In 08-09 it was 22.3% that was 10.3% in 07-08. This is very point of tension. Interest rates are other freaky thing. And the recent world recession though had less impact on Pakistani economy yet has its importance. These things are like hurdles in fashion or in any industry. The price wars are also of great important. Countries with high technologies are striving with low prices dragging developing countries towards down.
Pakistan is the 6th largest populated country of the world. Due to the increased literacy rate and advanced media people are aware of new trends and fashions. Due to the entrance of foreign market tastes of people so as living styles are being changed. People are becoming more fashion conscious and careful in their selection. Advanced telecommunications has improved sociability of the people. At the same time religion is on the move. These all things has a great impact on fashion industry as people are more aware of their needs so as to satisfying them.
Though fashion industry is not technology driven but in ever dynamic and global market it’s now being essential to prosper in the technology area. Now a day without technology success seems far. It’s a great tool of competitive advantage and a source if brand equity as well. The concept if e-business is having great impact on fashion industry. Enhanced Internet, mobile and media activities are gaining much importance in the fashion world.
Certain legal acts can’t be left as unimportant. Different business laws should be kept in mind to abstain any problem in the future. Though there is no enforcement of laws in Pakistan but laws are of great importance. In the recent government many new laws are made. Different trade policies with the neighboring countries are signed. These all things according to us should be considered in the business.
Weather has a great influence on fashion or apparel industry. But weather in Pakistan is not changed unexpectedly. But the electricity crisis are of great important so as devastating.
2.2 INTERNAL ENVIRONMENTAL ANALYSIS
Following are the factors considered as internal
2.2.1 RESOURCES (CAPITAL)
*10 Million (* See key assumption for utilization of resources in the last page)
2.2.2 RESOURCES (P EOPLE )
14 (1 Graphic designers, 2 sales girls, 5 tailors, 1 iron man, 1 dyer, 1 office boy, 1 guard, 2 sweepers/ peon)
2.2.3 ORGANIZATIONAL STRUCTURE AND CULTURE
Dynamic yet friendly Top management decisions
2.2.4 PRODUCT DEVELOPMENT
• • • •
Design Pattern making/ cutting Stitching Finishing Presenting/ market
Required in order to give familiarity with new trends and styles.
2.2.6 SYSTEMS & PROCESSES
• • • In-house and outsourcing stitching (buttonholes and elastic embedding will be outsourced) Contracted designers Stitching machines 3
Working hours 8 Rent out outlet (as per following infrastructure components)
3 CUSTOMER SEGMENTATION AND MARKET ANALYSIS
Following is the demographics of Bahawalpur according to census bureau Pakistan 1998
Gender: women Social class: upper middle class Age: 20 to 55 Housewives and workingwomen are main focus Demographics • House wives, Professional woman, college or uni girls (ages 20-55)
• • •
Household income over Rs 90,000/year College-educated Lives in a higher-income Bwp neighborhood
Psychographics • Looks for bargains (seasonal fashion) but willing to spend money on quality, core items
Would like more time or help in understanding what clothing is right for her
She wants to look her best because she wants to feel good about herself as well as make a good impression at her job
Leisure Activities • Supports the Arts
• • • •
Reads the news, dawn, Daily post, Fashion magazines Watches style 360, F Tv, geo, Hum etc Internet user She enjoys eating out as well as taking time for herself
Total Market Size in terms of sales and people
Market Growth Rate:
Market is growing rapidly as more and more women are being fashion conscious.
Housewives, working women and University girl
Typical Buying Needs:
www.rewaj.com.pk, newspapers, fashion magazines e.g: “SHE”
Key Trade Events:
Conferences on fashion awareness, and shows in universities and colleges, exhibitions in Multan, Lahore, Rahimyar khan
3.1 COMPETITOR ANALYSIS
Analyze the size and intensity of the competitors in the target market(s) and describe the major competitors in the target market(s) and their major strengths and weaknesses as per following format.
3.1.1 WAHID CLOTH HOUSE AND BOUTIQUE
Strength #1 dealing in almost all categories of women suiting Strength #2 different shops for different category Strength #3 Dealing also in men suiting
Weakness #1 no mission statement Weakness #2 inside bazaar congested area Weakness #3 Stitching problem Weakness #4 late delivery Weakness #5 customization problems
3.2 SWOT ANALYSIS Strengths
• • • • • Good and high quality machinery Exclusive outlet Highly qualified staff Adaptability to newness Diverse brand portfolio •
• • High rates and prices Less supportive financial and govt institutions Lack of idea sharing
• • • Expand into emerging economy Enter new product market Acquire more market
• • • Lack of knowledge Brand cannibalization Substitute
Competitors Political instability
3.3 KEY ISSUES
First the company has to focus on • • Lack of knowledge Acquiring more markets
First time the boutique like ours is being introduced in Bahawalpur. It is very much necessary to convey about boutique, generate awareness and make people know about the benefit of boutique. Second increasing the length of business is crucial to every business. Entering into the new and potential market is very much important. So finding new prospective market is also important.
4 MARKETING OBJECTIVES
• • •
To be among the top ten favorite brands To add new designs in every season To drive awareness and build sales through mentions in both local print and the nation's top fashion magazines
To maintain an inflation growth in earning per year at a rate of 12% To obtain a return on equity of at least 30%
Providing stitching facilities to other boutiques in 2012 who are lacking this facility To maintain profit margins at 15-20% through close attention to expenses and cost of goods sold
5 MARKETING STRATEGY
5.1 STRATEGIC OVERVIEW
Due to the demand for up-to-date fashions, inventory turns are projected at 5
From the above projected overview it is obvious that business is heading towards growth.Which is a prosper sign for boutique business.
5.2 TARGETING AND POISONING STRATEGY
If you were to overhear women talking in a dressing room, you would more than likely hear them comment on something they've tried on and question how they should wear it or what it will go with in their closet. Research has shown that women are stressed, have little time to shop, and would generally like help in determining the right clothes and styles to wear. With over 61 million U.S. women between the ages of 25-54 spending over $34 billion in apparel each year, there are sure to be some mistakes made in clothing choices. Television shows such as BBC's "what not to wear" and Style's "Fashion Emergency" clearly speak to a woman's confusion about what looks best on her. Even women who can afford a professional stylist feel helpless and often jokingly request that their stylist come to their home every morning to help them get dressed. "Within a decade, the companies that do the best job of marketing to women will dominate every significant product and service category." -Faith Popcorn
Target: Women Position: Time; less time to find latest and trendy fashions in a single place. Without utilizing much energy, effort etc
5.2.1 PRIMARY CUSTOMERS THEIR KEY INFLUENCERS , DECISION MAKER, AND
Both primary and secondary customers are women, key influencer is woman, Decision maker is woman, and economic buyer is woman and man.
5.2.2 PRIMARY USERS
Both primary and secondary customers are women
5.3 POSITIONING, VALUE PROPOSITION
Describe how you will differently position your product form the competitive products.
“Rewaj” Boutique provides women with upscale designer clothing and exclusive personal services. Our main competitive advantage is the unique Style Assessment and education emphasis in helping women develop their personal style.
“Its Easy to be Trendy”
As the name and logo suggest that women can come to the boutique to learn about themselves and experiment with their personal style. By these meanings, Rewaj looks to be the leader in providing exceptional service and assistance for women's fashion needs. The elegance of the name suggests the types of clothing and accessories that will be featured.
Innovative | Stylish | Contemporary | Modern | Fresh | Approachable | Elegant The overall brand personality of “Rewaj” aspires to be fashionable, customer-oriented, innovative, refreshing, stylish and educational. The boutique is a place where women can go to
transform themselves with beautiful clothes and take advantage of the Style Assessment and other services that help them determine the right clothes for their unique selves. We are a shop that educates. We help women learn about the designers, gather with their friends, and have fun during the process. We not only carry items that help them look good, but we also help our customers maintain these items. Owners will work with their top design advisors to create the atmosphere, colors and wording that encapsulates these thoughts.
6 PRODUCT STRATEGY
6.1 PRODUCT PORTFOLIO
Product Class: Fabric/ clothing Product Category: • • • Casual Wear Semi Formal Wear Formal Wear
Product line: Each product line will have the following product lines • • • Ethnic wear Contemporary Wear Western Wear
Product Mix Category Casual Wear Semi Formal Wear Formal Wear Percentage of total outfit 34% 33% 33% % Cost of sales 35% 32% 30%
6.2 PRODUCT / SERVICE ANALYSIS
We are focusing on casual, formal, and semi formal in which we will be giving contemporary, ethnic, western. Our main focus would be on latest trends. We will try to give the best quality,
colors, designs, fabric and so as the best environment that women will find ease and would surly love to buy form our boutique again after first buying. Our clothes will appeal image conscious, fashion aware, and choosy type of women. Women will feel high among their social circle. Estimated annual sales: 40lac Estimated profitability: 25lac Market Growth rate: 10% as the increase in incomes and awareness in the gentry. Geographical scope: Bahawalpur is a trade city. Nearer cities to Bahawalpur are Multan, Sadiqabad, Rahimyarkhan, and Ahmadpur. Moreover Bahawalpur is developed city as compare to most of these cities. So this city has vast coverage. And people can easily come to our boutique. Consumer buying process: due to the less markets and shops people find ways to festive. Normal trend is that women love to buy visiting the market. In our outlet they would love to cone and buy.
6.3 COMPETITIVE PRODUCTS,
6.3.1 DIRECT COMPETITORS
188.8.131.52 Competitor 1 – ENTER COMPETITOR NAME 184.108.40.206.1 Contact Details: Address: Wahid Clothe house and boutique, Chowk bazaar, Shahi bazaar, Bahawalpur Telephone: 0622288745
It is the only considered competitor yet it is far behind competition. But its proposed plan can be bring it into hard competition. Right now they have captured the highest market share. They are having boutique whereas they accept alteration and made on order as well. Though they are not having any website, mission or vision statement but they have prospered. They are even selling in Lahore market but on minimal level. Their prices are moderate to high and their products are perceived as of high quality. The perceived weakness they are having is of congested area, lacking in quality of fabric and sometimes in stitching, whereas perceived strengths are of dealing in men suiting, having different shops for different categories and owning large area.
6.3.2 SUBSTITUTE PRODUCTS/SERVICES
Traditional tailors can be substitute one. Where traditionally women go and made dresses according to their desire though not of high h quality but do.
6.3.3 POTENTIAL NEW MARKET ENTRANTS
Possible new entrants can be those small boutiques working on small level right now not having much investment but got experience like Fashion ghar, Huma silk center and small home made boutiques
7 BRAND STRATEGY
• • We brand our product with brand laddering: emotional brand laddering, our product is of image conscious wich requires highly image positioning Our boutique focus on latest trends and less time to reach them. Woman can get what they want without any problem and with great ease. We are providing value, image, elegance and style of what woman are hungry. Brand name: Rewaj suggesting that what is in the fashion. Easy to pronounce and easily accepted all over the Pakistan without any discrepancy. We can even extend our boutique to men under the same name this name has no limitations. Logo: needle and thread expressing the nature of business. It is memorable generating loyalty and protectable. Adaptable to any culture. And having no cultural problem all over the country. Similarly have no limitations. Acceptable for both genders. Color: red and black. Quite neutral color easily memorable and associations can be developed without any problem. The R written in capital font and with red color getting attraction and attention. Slogan: It’s easy to be trendy positioning on time and easy to memorable. Also it delivers that we are giving what ever is in fashion and is in. It is also protecable and acceptable in culture. Symbol: girl wearing contemporary dress. Focusing on latest designs and fashion. And it also shows that boutique is of women. Women can generate associations with the symbol.
URL: www.Rewajtrend.com.pk available url easy to remember and protectable.
Pricing is set according to market indicators. Set in such a way that it covers cost and generate revenue for the boutique. In the start it requires lower prices in order to penetrate in the market. Than high the price for the assurance of high quality as it is perceived.
Version Upgrade/Competitive Upgrade Matrix
Intro. Prices Rs
After a 9 months Rs 3500 5000 18000
Proposed competitive price for future. Rs 2900 4200 16000
Casual wear Semi formal wear Formal wear
3000 4500 15000
9 INTEGRATED MARKETING COMMUNICATION PLAN
9.1.1 ADVERTISING ACTIVITY
Newspaper advertisement will be done, banners, posters, brochures and cable TV ad will also be used.
9.1.2 DIRECT MARKETING ACTIVITY
Catalog marketing will be used, direct mail are also considerable
9.1.3 ONLINE ACTIVITY
www.rewajtrend.com is our website we will provide online purchase facility.
9.1.4 EVENTS ACTIVITY
Exhibitions will be arranged, participations in fashion shows will be done. And seminars on fashion awareness will also be arranged.
9.1.5 RETAIL SUPPORT AND OTHER COLLATERAL
Brochures, and key chains will be designed written rewaj on it.
9.2 MARKETING AND PROMOTION BUDGET
Marketing activities are important generating awareness. More the money spend more effective the activity will result. The total cost of all activities will be of 2 million and it will increase sale 5 times. More and more people will be aware they will attracted towards product.
10 DISTRIBUTION STRATEGY
Customer Direct chain as we are having both backward and forward integration. Selectivity Shopping good so exclusive outlet and selective distribution as product is of high image. Waiting and delivery time Product will be available in the outlet so customer doesn’t have to wait for the delivery. Variety and Assortment We will provide this as we are dealing in three categories; casual, semiformal, formal
Information provision: We will provide training to our employees so that they can facilitate the customers as much as possible. Following flows would be performed to produce the above services outputs. These flows would be performing from manufacturer to consumer through whole seller and retailer. Physical possession
Ownership Financing Risking Negotiation Promotion Ordering Payment Channel Function and Flows A marketing channel performs the work of moving goods from producer to consumers. It overcomes the time, place and possession gaps that separate goods and services from those that need or want them. It perform number of functions: They gathering information about potential and current customer, competitors, and other actors and forces in the marketing environment. They develop and disseminate persuasive communication to stimulate purchasing They place an order to the company They provide for the successive storage and movement of the physical products.
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