Ciao!

Marketing Plan

Kellie Hurd, Julia Kelly, McKenzie Krawczyk, Grace Leeker

MKT315: Fashion Marketing and Merchandising
Spring 2016

Executive Summary
Traveling or studying in a new country is stressful in itself without
having to worry about getting tricked into paying a higher price for a product
just for not knowing where to shop. With the app Ciao! travelers and study
abroad students will be able to locate their desired item for the best price in
Florence, Italy. Ciao! is the answer to all shoppers visiting Florence because it
allows users to post, view, and comment on products within the market.
Want to buy a leather bag but you dont know which leather shop to give
business to? Ciao! shows where travelers and locals have previously
shopped, the prices they have paid, and whether or not the purchase is
worth the price that was paid.
We developed a short survey in order to discover if our app would be
successful. From this survey we received a great amount of positive
feedback. Now we can continue developing this app for our users.
Unfortunately our survey showed that most consumers would not want to
pay for a basic version of this app. In order for us to profitize off of the app
we decided to create a pro version of Ciao! The pro version will give more
detailed results, there will be a location tab in order to discover the closest
option to the user's location, and much more. As the app gains popularity we
will have the ability to include pop up advertisements within the app. This
will allow us to profitize from both the basic version along with the pro
version that has been paid for.

Some of our current competitors would include the apps TripAdvisor

and The Hunt. The advantage over The Hunt is that that particular app does
not provide the precise location market that our app Ciao! is able to fulfill in
Florence. The competitors have more worldwide users yet Ciao! is only just
developing and users will be knowledgeable specifically about the Florence
markets.
Furthermore Ciao! will be easily discovered by our customer because it
has a memorable, location specific name and will be sold in the Apples
ITunes App store which is available for IPhone users. We believe Ciao! is a
necessary app for travelers and specifically study abroad students in the
area of Florence. We think it is necessary because nothing is more
frustrating for a consumer then over spending on a product that could have
been obtained for a much cheaper price. Caio! is planned to be extremely
beneficial and we are very confident that it will be a success in the app
world.
Introduction
When people come to Italy, everyone knows that they will be making a
stop at at least one of the several markets scattered around the area.
Especially since the country is known for its leather goods. The opportunity
to shop in the markets around the city is something that must be done.
However, many people do hesitate to buy that purse or that jacket they fall
in love with just because they do not know whether the price they are
offered is reasonable.

This lead us to the creation of the app Ciao!. With Ciao! it will now be
possible for consumers to quickly search for specific products one is
interested in purchasing. With the search a consumer will be able to see the
individual prices other people have paid for similar merchandise. Consumers
will also be authorized to post comments about certain products they have
purchased and markets they have visited to give the rest of the consumer
market an idea of the experience they should have. There will also be a
location tab developed for consumers to locate products that are closest to
their specific area.
This app will be a social media based app with multiple available
markets to choose from which include, but not limited to, leather markets,
flea markets, farmers markets and other food markets. The subscribers will
post on the app about what they paid for a specific item and others will be
able to see the prices that have been previously paid at the same markets
and at every other market that has been posted about.
We decided to take action with this app based on the amount of
duplicate products that one will see while walking around the streets in
Florence. Each market and stand that you pass will be selling similar, if not
the same merchandise. The difference is that one might be real, and the
other a knock off item. One of the most disheartening things as a consumer
is to purchase an item thinking it is one of a kind and that it was purchased
at a great price and then coming across the same item moments later listed
at a lower price. This app is created to stop that experience from happening

and making sure consumers are purchasing the best possible option for the
merchandise they are looking for.
Through research and personal experiences we have found that
travelers would be willing to use this app, however not so willing to pay for
the service. Unfortunately, we had to come up with a solution in order for us
to profitize. There needs to be funds for this venture to be put in action so it
was decided to develop both a lite version of Ciao! and a pro version. The
pro version will allow the subscriber to see more reviews, more markets, and
additional benefits for just a small cost. The marketing plan to follow will
discuss both the primary and secondary research that has been done, the
competitors of our app Ciao!, the target market we are going to focus on, the
product description and all of its benefits, and the marketing mix decisions
we have made.
Method
The development of Ciao!, evolved when personally we were studying
abroad in Florence. We were all eager to purchase a real leather good.
Italy being known for leather products makes shopping the markets the place
to be. While at the market it became extremely discouraging when always
viewing the same products at each different vendor. Each having a range of
different prices and different varieties. Once something had been purchased,
we began to think about the prices other students may have paid for the
same product. We also were questioning the quality and whether or not a

different vendor might have held a better quality leather product. This is
where our idea sparked.
Having knowledge about TripAdvisor and its surplus of abilities, we
began to think about how convenient it would be if there was an app that
could compare all the different markets around Florence. This has lead us to
the idea of the app Ciao!, and made it come alive. After consulting with our
peers who are also studying abroad in Florence, and comparing their own
personal experience of purchasing leather products at the market, with our
own, we really saw a difference in the pricing and a window for a successful
app. Then we reached an agreement that it would be extremely convenient
and helpful to have the information at hand to have known which market and
which vendors sell the best products at the best possible prices.
With our primary research and the details of the summary we came to
the conclusion that most people would not pay for the use of this app. We
then settled on the idea of creating two versions of the app. A lite version
which will be free of cost and a pro version that would cost 0.99 cents. This
app will be based on travelers opinions about where they went shopping and
the prices they have paid. It will be very similar to writing a review.
As a customer, if you downloaded the app you would have the freedom
to browse and find all different markets to visit and then in a detailed search,
find a variety of different products such as coats, bags, gloves, etc with the
listed pricing that has previously been paid by other tourists and study
abroad students.

Summary of Secondary Research

The Ciao! application is developed to be used in Florence, Italy and
possibly, one day, in other areas around the globe informing consumers
about markets and products purchased in other countries. While this app will
be used first strictly in Italy, it will most likely not be being used by very
many Italians. Based on our secondary research to follow, the majority of our
app users will be international. People who are taking a vacation and
traveling to Italy, and mainly study abroad students.
MarketLine gives a good overview of the app market growth in the
America. In the United States the mobile app industry has grown 17% in
2015 reaching a value or $87.8 billion. The market value forecast by 2020
states that the industry will have over $130 billion. The mobile app market
currently has over 709 million subscriptions and the volume of the
subscriptions is thought to increase to 1,169.5 million by 2020.
The mobile app industry is an extremely large industry that is and
always will be continuously growing in both volume and in revenue. The first
graph shows the market value from the years 2011 to 2015. The growth
percentage is falling; however, the value is steadily increasing. The figure
below is what the market is predicted to be over the next 5 years. By 2020
the industry will be valued at around $130 billion.

These next figures show the growth of the size of the industrys
market, the volume. As with the first graph seen above, the percentage of
growth is declining but the subscribers are increasing. The graph below

shows the volume of the market until the year 2020.

From this information we can understand that the mobile applications

are used by a large number of people all over the United States and it is an
industry that does not seem to be slowing down any time soon.
Competitors
Some competitors of Ciao! are TripAdvisor and The Hunt. TripAdvisor is
an app that enables travelers to plan and book their perfect trip. This app
offers advice that comes from millions of travelers reviews on the best
flights, hotels, and restaurants. It connects customers to websites of their
establishment of interest to compare prices. Trip Advisor has been successful
in reaching over 350 million unique monthly customers and has increasingly
been adding new features to their app. The Hunt is an app that allows
customers to share their shopping tips with other users. Users can post a
photo of anything they see whether it be someone walking on the street or
something they see in a store. It allows the community to comment on
where to find it. The app allows user to ask the community for their opinion
on a style decision and browse tutorials, trends, and blogs. The Hunt also
gives users the opportunity to purchase anything they find on the app and
add to their wishlist for later.

Summary of Primary Research

For our primary research we conducted a six-question survey asking
future customers questions that could help us analyze our app
demographically seeing who would be using it and questions that could help

further our success. The questions that were asked in this survey included,
how old are you, what is your gender, would you use this app, would you pay
for this app, how much would you pay, and a section for feedback. We had
100 responses and eleven people left feedback.
The results include that 84% responded between the age of eighteen
and twenty-two, 7% between the ages of twenty three and thirty, 3%
between the ages of thirty one and forty five, and lastly 6% for ages fifty and
above. Overall there was 88% of female that responded and 12% male. For
the question would you use this app, 86% responded yes and 14%
responded with no. 30% responded that they would pay for the app but 70%
said they would not. Breaking it up for pricing 30% said they would pay .99
cents, 3% said they would be $1.25 and 67% said they would not pay for it at
all. We received positive feedback saying that it was a smart idea, I think
this would be great because you can see the same items from store to store
but some are more expensive or cheaper. With the app you would be able to
compare before you buy. Another comment was, This app would be
awesome especially being in a country where you don't understand the
language or culture that well! I always hear that I paid more than someone
else for essential products and that can be really frustrating.
It seems that future customers are satisfied with the idea of the
application, we learned that mostly women answered and a large amount
over 50% answered with that they would not pay for this app. This is
something we had to re-consider so we generated a new idea. We would

have a free version of the app but if they wanted more results or locations of
where goods were they could pay the .99 cents to receive the pro-version.
This is seen throughout all different successful applications we believe if we
give the customer an incentive to want more from the app that they would
pay for it. Also the age group that was mostly responding in the survey
included young people from the age of 18-22, depending on the age could
change the decision on paying for it or not. Another idea came from the
feedback section someone left a comment saying, Maybe say how close the
cheaper items are. Kind of like the gas app that shows you where the
cheapest gas is. According to the customer's location we could locate the
cheapest price of any item that they are looking for, this again could be part
of the pro-version which gives an incentive to the customer to want to pay
the amount.

Target Market
Market segmentation is dividing the total market into smaller groups
and analyzing each group by specific characteristics. There are four ways to
divide and segment the market. It can be looked at through demographics,
psychographics, geographical location, and behavioral habits.
In the past apps have lacked making shopping suitable on the go.
However, with the fast paced lifestyle that is now developed, technology is
essential to managing our everyday lives. We created a survey to receive

feedback about our product to discover the most appropriate target market.
We surveyed over 100 consumers of all different age groups, both male and
female. After conducting this survey and research, we determined that our
target market would be of the female demographic profile, specifically those
females that are traveling and studying in the area of Florence, Italy within
the age range of 18-22.
Information that was taken by the Census Bureau states that the
population of Italy is currently made up of 62,008 people, both male and
female. There is also research that divides the population by age group.
Considering the age group we are targeting, the Census Bureau calculates
demographically the population of males and females. Between the ages of
15-29, about 15% of the population is female and about 16% of the
population is male.

We have decided that the female student is the most appropriate

target market for our specific app. Based on psychographics, females are
more likely and willing to shop in the markets. There is evidence that shows
that women spend more time shopping and browsing than men do.
Research that was conducted in the past shows that men tend to become

more un-interested browsing around after several minutes while it can take a
woman several hours to finally be content with her shopping. Some people
can even say, men buy and women shop. This is because men have the
behavioral habits of grabbing what they need, making the purchase, and
leaving. A woman is more likely to take the time to browse a store or
market, shopping at a leisurely pace. Women will take there time to be
100% satisfied with a product before making a purchase.
After analyzing the market through segmentation we have developed
the most appropriate target market for our app. We are targeting a female
international student who is studying abroad in the area of Florence, Italy.
After conducting surveys and doing research, we believe that females of this
age range will make up the best target market to make Ciao a successful
app.
Product Description and Benefit Analysis
Markets are becoming increasingly popular, however what is
considered to be a good price for an item? Travel apps are used daily by
both internationals and locals because everyone wants the best out of their
stay. The app Ciao! will allow consumers all over Florence to grasp an idea
about shopping in the local markets. When an international students or
tourists come to stay in Florence, they usually are uneducated and unaware
of their surroundings and their spending habits. This app is designed to be
beneficial to both international and local beings. The idea behind Ciao! is to
give people a place to post, view, and comment on the different products

that they have purchased within marketplaces around Florence; allowing

consumers to be aware of their purchases and if the purchase being made is
reasonable. Everyone knows that at the markets the people running the
shops are trying to get you to spend big, even when the cost of the product
is significantly less. Developing this app can help people save and get the
most for their moneygetting the best bang for your buck!
This app will most likely be used, but not limited too, young
international students between the ages of 18-22. International students
come to study in places like Florence for months on end. These are the
people that are potentially paying over price for specific products, especially
leather goods. Florence is the capital for leather goods, so this is where
students are excited and get the opportunity to bring home some real
leather. However, no one really knows if the price paid is a decent price, or
just a rip off. Utilizing this app can solve that issue. When students go
around to different leather stores they can post the store, what they
purchased, and how much they paid. This can help all other international
students from paying double or even three times more than they originally
should have, saving them lots of money.

Marketing Mix
Distribution
Customers will be able to purchase our app through the Apple App
store. Apple has web based tools that helps developers submit and manage

their apps called ITunes Connect. This allows for developers to have a
portfolio of store content, legal and tax documents, along with contact
information so that the developer can add to their app while it is live. The
portfolio also collects status information, feedback from customers, and
earnings so that developers can easily track their apps sales. The app must
be put through a review by Apple to be allowed on the App Store.
Once it is accepted by Apple we will create a product page for the app
that will be easily understood by our customers. We have chosen the name
Ciao! which is a simple, memorable name that is easy to spell as an apps
name plays a critical role on how it is found in the App Store. The app will
have an easily recognizable icon that communicates the apps quality and
purpose. Previews for the app will tell the customer how the app functions
and the features it possesses. We will have app screenshots to visually show
the apps user experience before the customer downloads it. A description
will be included to let the customer know what the app is exactly about and
all the benefits it contains. The description will let the customer know why
our app is unique and how it will be useful for their shopping experience. Our
app will be catagorized under the shopping and travel categories as the app
was designed for traveling shoppers. Having the app under a category on the
App Store will give it more attention by customers not knowing its specific
name.

Price

Ciao! would be considered a simple based app and there would be a

development fee for someone to create and prepare the app to be reviewed
by Apple, this would be a one time cost between $1,500-4,000. The
additional cost would include a GPS locator and social media integration.
Another cost would be promoting and advertising our app, printing out flyers
that could be personally handed out or posted around the abroad community.
Basing this cost on if we used 1,000 half sheets of paper at the cost of 5
cents per page the estimated cost would be $50. To keep Ciao! in the app
store there would be a fee of $99 yearly. Together the cost would be $1,649.
With these flyers we will be promoting travel agencies that also work with
study abroad students such as Bus2Apls and Smart Trip. If the customer
brought the flyer into one of these agencies they could get a discount, for
every time someone uses the discount code Ciao! would get paid a
percentage. In order for us to break even by teaming up with travel agencies,
239 people would have to go to one of these agencies and spend roughly
around $230 on a single trip. We would then get 3% of that cost back per
trip which would be around $6.90. In order to break even the $6.90 can be
multiplied with the amount of people, 239, and we would reach our $1,649
start up cost. Once we break even we can start to increase distribution and
expenditures to enhance the app to develop the Pro version and charge .99
cents for a download. The fixed cost would be the yearly fee to Apple we
must pay in order to keep our app in the apple store, which is a fee of $99.

The variable cost is any additional cost such as the cost for the GPS locator
and the monthly printing of flyers.
Promotion
An integral part of any product is the promotion or where and how you
are going to get any messages and ideas to the public about the product.
There are many factors to consider when promoting any product such as
where, when, how, and to whom you will be promoting to. For this mobile
app, Ciao!, the promotion will rely on word-of-mouth marketing as their main
source of promotion.
Advertising
In order to keep costs at a minimum there will be no advertisements in
any magazines or on television. A source that Ciao! will utilize is college
study abroad students because this is a large group of the target market.
Other things that Ciao! will do to promote is have an Instagram account,
Twitter, and Facebook page that users can follow with pictures of items that
people just bought telling the prices or other pictures having to do with
Florence and shopping. Ciao! recognizes that this kind of promotion is not
always enough to sell your product so instead of using conventional ways of
marketing with advertisements, Ciao! will use the travel bloggers that are all
over social media and websites who have many followers. This is a common
tactic for marketing and because our target market is mostly young travelers
it is the most useful and effective way to promote our mobile application.
Direct Marketing

On college campuses around the United States, Ciao! will hand out
stickers and small pieces of information that gets students interested in what
the app is. From there, the marketing and promotion will be about people
talking to each other about the app.
Sales Promotions
Ciao! will few sales promotions because, as you can see from the
primary research done, not many people will want to pay for Ciao!. A
promotion that Ciao! will utilize is that it will offer the pro version of the app
for free for three days and then require the user to purchase the app if they
would like to continue using the pro version. This will allow the user to get a
taste of what the whole unlocked app is and will force them to want to buy it.

In conclusion, Ciao! Was started out of a necessity to travelers everywhere.

Through more research, it was seen that the mobile app industry was on the
rise and the volume of users is continually growing. This showed promise for
Ciao!s marketing plan and through primary research more information about
Ciao! was gathered. Even though not everyone would be willing to pay for
this app, people would definitely use it. The creation of Ciao! Allows travelers
to experience less buyer's remorse and disappointment when purchase
goods, leaving them happy and satisfied.

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