Table of Contents

Executive Summary..................................................................................................2
Segmentation and Target Market..............................................................................3
Positioning and Differentiation.................................................................................6
Competitor Analysis..................................................................................................7
Marketing Mix...........................................................................................................9
Break-Even Analysis...................................................................................................9
Marketing Action plan.............................................................................................16
Executive Summary

Product Description: Jackets with temperature control capability that allows its users to adjust
the degree of heat they experience internally depending on the atmosphere. The heating system
keeps the body warm with a range of temperatures at the control of fingertips.
Which need/want/demand is it fulfilling? This fulfills the want of having a single outfit that
caters to a wide range of climatic conditions.
Target segment: Upper middle to elite class- primarily for travelers, coming from various
climate areas, who face a problem of withstanding extreme cold weather with normal
clothing/jackets and are forced to purchase and wear multiple weighty clothing layers.
Competition:
Presently, no direct competition with similar tech-based clothing products.
Other brands producing winter clothes and foreign competitors with access to a similar
technology can be potential competitors.
Marketing mix:
Product: Jackets (with detachable hood and gloves)
1. Multi zone heating (back, chest & hands)
2. Temperature controller button (high, medium and low) - lets you control the internal
temperature no matter what’s the weather externally.
3. DWR (durable water repellent) is a coating added to fabrics to make the products water-
resistant.
4. Lightweight and packable
Price:
Around Rs. 12,999 For Jackets
Considering the prices of aluminum, DWR coating, and high-quality controller button in the
Pakistani market.
Placement:
Online sales, with no physical outlets, because we are targeting a niche and our customers are
widely spread, making it unreasonable for us to operate on a physical location. Our product is
highly specialized, not of the type where we produce first and sell later, rather we will produce
the tracksuit based on orders. Therefore, we follow a pull-based inventory system.

Promotion:
Social media campaign such as video and pictures, hence creating awareness of our product and
its features. Print media advertisements mainly travel and fashion magazines. Moreover, we will
sponsor local travel vloggers on YouTube and other sites by providing them our tracksuit for
their trips, with the condition that they review and promote the product. Placement of
advertisements in the vicinity of airports and railway stations, tourist resorts, and product
displays on popular travelling agencies. Partnerships with travelling societies of different
universities, offering discounted prices to selected universities.
Segmentation and Target Market

We have used different basis to divide our market into smaller segments so that they can be
targeted more effectively.
1. Demographic Segmentation:
Demographic segmentation is to divide the market based on different characteristics such as age
and lifecycle, income and gender.
Age: For age, our possible segments can be kids, teens, youth and old-age. Our target
market comprises of youth because according to a research, the 23% of increase is tourism is
contributed by tourists who are aged between 15 to 29 years, and this number is expected to
continuously increase in the coming years1. This makes our target segment very attractive as
youth comprises of a major junk of tourists and also huge growth is expected. (link in
footnotes*).
Income: There are four main categories based on income: Lower class, lower-middle
class, upper-middle class and elite class. Since our product price is relatively high, it mostly suits
youth belonging to upper-middle class and rich-class families. Our price range is likely to be
between PKR 10,000 – 15,000. Also, travel for recreation being a luxury is afforded only by
people belonging to higher income bracket.
Gender: Our product is not differentiated by gender. Both the genders have same basic
need which the company aims to deliver.

Willingness To Pay Vs. Gender

50
40
30
20
10
0
Female Male

No Yes

2. Psychographic Segmentation:
Psychographic segmentation is to divide a market into different segments based on lifestyle or
personality characteristics.
Our segment comprises of people who are risk takers. They like to go on adventures. They like
to travel to northern areas, where it is toughest to survive due to intense cold weather. They want
to try new things.
3. Behavioral Segmentation:
Behavioral segmentation divides buyers into segments based on their knowledge, attitudes, uses,
or responses to a product. There are various ways of doing behavioral segmentation such as,
benefit segmentation, occasion segmentation, usage rate, user status, loyalty etc. We are
segmenting our product based on benefits sought and usage rate.

1 https://www.wysetc.org/2015/09/youth-and-student-travellers-age-15-to-29-represent-23-of-
international-tourist-arrivals/
Benefits sought: Convenience is our major claim. Our product is easily packable, light weight
and portable. Moreover, if you wear HeatVeste Jackets, you don’t need to wear any layers of
clothes beneath it. Otherwise, tourists usually face the issue of packing heavy winter clothes in a
limited time and space available.

Usage rate: Our main target are those people who are frequent travelers. This way our
product becomes a one-time investment for them which creates convenience and satisfaction for
them for a long term. The diagram below shows the possible usage rate of our target market.

From the above discussion, it is clear that our target segment is Youth belonging to upper-middle
and rich families, who are frequent travelers and like to go on adventures. Our purpose is not to
go for small share in a large market but to go for a large share in a specific segment. This
approach is known as Niche/Concentrated Marketing. We believe that our competitors are
unable to cater the needs of this segment as we would be able to do. So, this approach to
marketing gives us an upper hand on our competitors.

Moreover, our target segment has a measurable size, their purchasing power can easily be known
as shown in the graph (measurable), they can easily be reached (through social media etc.) and
served (accessible), their size is substantial (as mentioned above), they can easily be
distinguished from other segments (differentiable), and this segment can easily be attracted
through different types of marketing campaigns and offers (actionable), as this segment is very
active on social media and respond quickly.

Positioning and Differentiation

HeatVeste aspires to deliver the need of the hour: convenience. It intends to provide a single
winter clothing solution for travelers. The product’s features themselves speak for the value
created. For instance, light weightiness, packability, multiple heating zones, soft and comfortable
fabric, and all the other features distinguish our product from those of the adventure shops in
Pakistan. Moreover, the add-on products, such as gloves are compatible with the jackets via
super-fast Type-C USB connections that attaches gloves to the main battery. These distinct
features ensure convenience for the consumers.
Secondly, HeatVeste’s promotional strategies and marketing campaigns differentiate the brand
from its competitors, which have been discussed in the competitor analysis briefly by showing
how adventure shops lack attractive promotional activities. HeatVeste believes in building
partnerships with its marketing intermediaries such as traveling agencies, as well as adventure
societies at universities and schools, which will help in effective promotion of our products to the
target segment. Furthermore, affiliations with online influencers such as with a popular Polish
travel vlogger Eva Zu Beck, who has been working towards promoting tourism in Pakistan, can
make our campaigns compelling for our target audience. Moreover, the marketing team can also
ask these influencers to review our product which can positively affect customer perceptions of
our product.
Additionally, the exclusivity of the HeatVeste brand with no physical outlets and a direct
delivery channel to the customers enhances the brand image overall. Having no physical
infrastructure also provides an additional financial advantage over competitors as the fixed costs
of physical outlets (rent) would not have to be incurred by the company.
Consequently, HeatVeste’s 4Ps differentiate
its brand from the competitors. This
differentiation ensures a clear and
distinctive place relative to competitors in Our
the minds of target customers. This Positioning
establishes a More for More value
proposition because HeatVeste provides the
most upscale product with distinctive
product features, high quality and stylistic
product design.
The diagram below shows how the features
provided by HeatVeste will be valued by its target market as the survey result shows that single
layer clothing is preferred to multi layers.
Competitor Analysis

HeatVeste is a very new idea, not only nationally, but also internationally. As of right now, it is
reasonable to conclude that the company does not faces any direct competition. There is no other
manufacturer that produces a good which could be considered as a close substitute for HeatVeste
jackets.
The primary reason for not having a direct competitor is the non-availability of supporting
technology that we use in our production. And this is because this idea is relatively new, and it
will take considerable amount of time for other manufacturers to enter the market and add to the
aggregate supply.
Therefore, we face indirect competition from 2 markets: adventure shop offerings and the
traditional winter wear.
Adventure shop offerings include products like wind breaker jackets, which are water-proof and
light clothing. Complimentary products generally include trekking footwear, gloves, mountain
climbing gear, and travelling bags. Generally, the jackets cost from PKR 4,000 to up-to PKR
10,000, depending on the branding and quality differentials. The adventure shops do not indulge
much in promotional activities, however most of the effort, if any, is done on social media where
advertisements of such products occasionally pop up. In terms of placement, these adventure
shops sell online, but also have brick and mortar stores. Such shops are mainly present in some
sectors of Islamabad and rarely in Lahore as well.
Traditional winter wear includes sweaters and jackets (polyester, leather, and bomber jackets).
This industry is a weaker substitute to HeatVeste jackets, both in absolute terms, and relative
terms when compared to adventure shops. However, this category has been made part of the
competitor analysis because although it is weak, but the target market is exposed to this type of
clothing the most. Such products are used in combinations (multi-layered clothing) in extreme
weather, and as stand-alone consumer goods in casually cold environments. The prices of these
products range from as low as PKR 2,000 to as much as PKR 10,000, and sometimes even more
for imported, premium quality brands. These products are also easily available in all cities across
Pakistan, either in form of shops on commercial lanes to shopping malls, as well as over the
internet. This industry also relies heavily on promotional efforts to differentiate one brand from
another and stay on top of the consumer’s preference set.
The diagram below shows a need for winter clothing solution which was identified by competitor
analysis.

Marketing Mix

Product:
1. HeatVeste produces Jackets (with detachable hood and gloves). The specialized jackets
have a multi zone heating system (such as Aluminum heat reflective lining at the back,
chest & hands). Temperature controller button (high, medium and low) - lets you control
the internal temperature no matter what’s the weather externally. Moreover, DWR
(durable water repellent) is a coating added to fabrics to make the products water-
resistant. These jackets are produced in such a way and with such fabric that makes it
lightweight and packable. Hence such features make them a unique and innovative
product for the Pakistani market.
Break-Even Analysis
Selling Price 12999
Variable Cost 9050
Fixed Cost 420000
Break even Quantity 106.35604
Per day sales (quantity) 3.54520132
Per day sales (revenue in PKR) 52,000

Components PKR Per Unit

Fabric 400
Stitching 300
Battery 2800
Wiring 300
Heat pads 4000
Adapter 700
Extension Cord 500
Installation
labor 50
Total Variable Costs per unit 9050
 BreakEven Analysis
Total Fixed Cost Total Variable Cost Total Revenue Total Cost
3500000

3000000

2500000
Total Cost/Profits

2000000

1500000

1000000

500000

0
0 1 2 3 4 5 6 7 8 9
Quantity per day (Post Launch Phase)

Pricing:
HeatVeste follows value-added pricing. Instead of matching competitors’ prices, it has tried to
add quality and value-added features, such as multizone heating system in the jacket and gloves,
to differentiate its offers and thus support its premium prices.
Furthermore, the mechanism used to derive the price was based on several factors.

1. Competitors’ prices:
1. KAILAS ULTRA-LIGHT PRO DOWN JACKET MEN’S PKR 42000 2
2. Ororo Women's Slim Fit Heated Jacket with Battery Pack and Detachable Hood- $
139.99 (PKR 19685.88) 3
2. Number of direct competitors: As we have already mentioned, HeatVeste does not
have any direct competition in the local market with access to the similar technology as
HeatVeste has. Therefore, it is likely to provide HeatVeste a free walk in the market only
after it successfully transforms the want for its product into demand.
3. Variable costs per jacket: PKR 9,050

2 Shimshal Adventure Shop Lahore

3 Amazon
Considering the company’s value-added pricing approach, the strategies used for product’s
introduction in the market are as follows:
1. Market Skimming strategy:
HeatVeste’s new innovative product and its value-added features incentivize the company to set
high initial prices to skim revenues layer by layer from the market. It believes that the premium
pricing is suitable for its premium products and the value they create for the customers. Even
with the availability of competitors in the winter clothing market, there is no direct competitor
with access to the similar technology that HeatVeste has. Moreover, the patent for the product’s
technology further restricts its competitors from getting into the company’s target market and
undercutting the high price. As a result, after such careful research of the market dynamics,
HeatVeste is confident to follow market skimming pricing strategy for its new and innovative
product.
2. Optional Product Pricing:
HeatVeste offers different add-ons such as gloves and hood along the jacket. This provides a
chance to adopt optional pricing strategy to enhance the value captured from the consumers.
The prices for these add-ons are as follows:
Hood: PKR 500
Gloves: PKR 1,000
3. Captive Product Pricing:
HeatVeste has a controlled heating system which operates on a heating gear that comprises of
a battery and charging adapter. The heating gear is a customized device produced only by
HeatVeste. Hence, the customers are bound to buy the device from HeatVeste if they want to
use the multi-heating zone feature of the jacket.
The price for this heating gear is:
Battery: PKR 3,500
Adapter: PKR 875
4. Product Bundle Pricing:
Since gloves and hoods do not sell separately on a frequent basis, a product bundle offer is
also available for the customers. This bundle will consist of Jacket, hood and gloves charged
at a slightly lower price. Product bundle pricing will be used after few months of the product
launch.
 The price for the product bundle is likely to be PKR 14,000. (Price lower by PKR 500 if
purchased separately)
To create buying excitement and urgency, HeatVeste will temporarily price their products below
list price. Several forms of Promotional pricing that will be used by the company are:
1. Limited-time offers: such as online flash sales.
2. Seasonal discounts can be offered during summers when the sales are expected to decline
slightly due to rise in temperature in northern areas.
The company also employs Geographical pricing strategy such as Freight-absorption pricing.
International competitors selling similar products charge shipping costs to Pakistani customers.
By following this strategy, HeatVeste can gain an edge over its foreign competitors in terms of
price.
Placement
As far as the nature of our marketing channel is concerned, we will be employing a direct
marketing channel. This is important to our product placement strategy, as we do not want our
product to be with any distributer or retailer of any sort. Such a placement policy helps us in
many ways.
First of all, we are new to the market and want to deliver the product to the customers directly, so
we might be able to build a better relationship with them. This will eventually help us with the
word-of-mouth marketing. But this can work only when lead times are low, and the distribution
channel works perfectly. However, because we are new, we are not very experienced with supply
chain management, and therefore it is better for us to have a direct marketing channel, rather than
trust intermediaries and have potential marketing channel conflicts.
Secondly, we want to avoid any excessive costs, so that our prices can stay affordable. Our
pricing is based on a 25% mark-up policy. This is already very reasonable, and we do not want to
cut it any further. The current price of the product is PKR 12,999; any further increase in price
due to an increase in costs will likely push the product out of some of our potential target
audience’s budgets.
Thirdly, we highly value any and all customer feedback. Yes, it is possible to have feedback
even when intermediaries are involved, however the quality of insight that we will get will be
higher in the case where the customer talks to us directly, rather than through a channel of
 intermediaries. It will help us reduce our response times as well, and have higher customer
satisfaction levels, as after sale services will be timely.
Furthermore, we put a lot of effort into maintaining the premium quality of our jacket. From the
best raw material for the fabric, to the best vendors for all the outsourcing needs, we keep strict
checks to ensure that only the best product goes to the end user. All this effort will be wasted if
the intermediaries do not put the same level of emphasis on the product’s condition and quality
when it is held up with them as inventory. Keeping checks on intermediaries to ensure optimum
quality is possible, however it will push up the costs, and as already mentioned, we cannot afford
higher costs.
Lastly, we want to maintain exclusivity of the product. This also goes hand in hand with the pull-
based marketing strategy we want to set-up. Having our product easily available at big retailers
will reduce the scarcity perception that we want to build for our product. Exclusivity is important
because this is a niche product, and a high-end tech-cum-fashion gadget that is completely new.
Having it at easy excess will reduce the sense of belonging to an exclusive club that we want to
build for our consumers.
Promotion: 
Firstly, HeatVeste identifies different characteristics of its target consumers to pick up the ways or
mediums through which they can persuade those identified customers into buying its product.  
Since we are a new product, the main objective of our promotion strategy is to first create awareness of
our product, then placing ourselves into the customers’ preference set, and finally cashing in the
purchase. How we plan to achieve this is further highlighted below. 
Strategy 
We will employ a pull based promotional strategy, rather than a push-based model. There are couple of
reasons for it: - 
1. Business model: Our business model does not allow much room for us to adopt a push-based
model as it is primarily based on online sales with no involvement of retailers and wholesalers from
which a product is pushed to the customers.
1. Nature of the Product: We classify ourselves as a tech product that offers a solution to a certain
clothing problem. The industry practice for flagship tech products is to use a pull-based marketing
system. This is important to keep the brand perception high by keeping the product
exclusive, hence allowing us to position the product as a high-end product. 
MEDIA TYPES that HeatVeste will use: 
Digital Marketing   Digital marketing is very important in this day and age. It can be very handy if you
want to reach out many people with minimum cost. Our target market mainly comprises of youth, and
the easiest way to deliver our message to them is through social media.  
In order to create awareness about our product in the market, presence on the popular platforms is
essential. This means that we will need official brand pages on Facebook, Instagram, Twitter, and
YouTube at the very least. Social media is a very effective mode of two-way communication; not only
can we talk to the market, but the market can directly respond as well. As far as communication from
our end is concerned, pages on social media will help us in creating hype for the product before the
launch, as well as keep the product relevant once it has been launched. On the other hand, it can help us
to keep ourselves updated with relevant and latest customer feedback. We can easily use our social
media pages to make our customers aware of product features and value proposition initially, and then
about new or promotional deals, discounts etc. later.   
Marketing through social media can also help us to reach out to only those people who are potentially
interested in our product.  Through targeted advertisements on Facebook, we can even make
personalized ads for people of different psychological traits from within our target market. This will
reduce our marketing costs, as the amount spent will not be wasted on people who were never
intending to buy the product. Yes, this method is highly probabilistic, however with the present internet
technology, it is one of the best ways to promote a product or service. 
On our social media pages, we can post endorsement videos from celebrities and/or famous travelers
and then target these videos to our possible consumers using ‘targeted advertisements’ feature. A plus
point of this is that we can use social media insights to know whether our videos and ads are being
watched in our target market, and we can also get real-time feedback. Real-time feedback can help us to
understand about our target market more and more and thus improve our market strategies more and
more.  
Social Media is only one end of how businesses strengthen their online presence. The other end includes
Search Engine Marketing (SEM) and Search Engine Optimization (SEO). Businesses today buy adds on
search engines like Google and Bing, and we plan to do the same. Apart from getting traffic from the
search engines, another advantage of using SEM is the data analytics that comes complimentary with
SEM, allowing businesses to know who visited the website for the first time, who is a frequent visitor,
what products get the most clicks, which websites direct the most users to the businesses home page
and so on. This data can be used to convert visitors into customers.
Personal Selling: 
Since our product is new, therefore, we must work on building two-way trust relationship with the
customers. For this, personal selling can play a handy role. 
We can contact Adventure societies and travel agencies and inform them about our product. We can
approach them either through mail or by a phone call. After getting a positive signal that they are
interested in our product, we can arrange for presentations and demonstrations of our product. This
means that we will try to compel them that our product fulfils needs of our customers which other
products in the markets are unable to do so. We will not only demonstrate the use of product, but we
will also be open to hear their objections. If their objections hold weight, and we need to modify our
product a bit to nullify those objections, we can do so. But for that we need to follow this process before
the actual launch of the product. Once the objections are removed, we need to make follow ups so that
we do not lose our potential customers. 
Once we are able to convince these Adventure Societies and Travel agencies on the value proposition of
our product, they can help us promote our product through word of mouth.  
In addition to travel agencies, we can also use travel guides, as in Northern tourist Areas, acting as our
ambassadors. We can give financial incentives (commissions) to them for the per unit orders they get.  
Advertising in Print Media:  
Print media can be very effective for advertising. We can print ads in magazines mainly travel and
fashion magazines. Only those people are consumers of travel magazines who are travel enthusiasts.
This way we can make sure that our message gets delivered to the relevant audience. 
Marketing Action plan

Objective
Our promotional plan can be segmented into three periods. Before we talk about the plan itself, it
should be noticed that our product is planned to be launched in the late last quarter of the current year.
That will be during the end week of November, making it a perfect time for the target market to shop
for their winter break trips. So, this is where the segregation of out promotional efforts come into play.
There will be a “Pre-Launch Campaign”, from September 2019 to the end of October 2019. Then there
will be “Test Launch Campaign” which will be in the month of November. And then there will be a “Post-
Launch Campaign” during the month of December, which will keep going until the end of January 2020. 
Pre-Launch Campaign 
The purpose of this campaign will be to spread awareness about an upcoming launch of a product that
will revolutionize tourism experience for the youth. The advertisements will be short clips, that will work
as teasers for the actual product. For example, imagine a very dark room. The product will be placed on
a mannequin. There will be a swiftly moving white light that will move over the product, the light
bouncing off the black polythene.  The light passes over, and the room goes dark again. The
advertisement ends with a brand logo and a gripping tagline. This would make it a 20 second clip hardly.
There can be similar styled advertisements. Depending on the nature of the advertisement medium
selected. For instance, print media advertisements (on travel magazines for example) may involve
a mountain climber such as Samina Baig wearing this jacket with snow all around him and a stick in his
hand, firmly pressed on the ground. And on the side, there will be rhetorical questions that will point
towards the feature of the jacket. The bottom line is, this time period will be used to generate a buzz
about the product, and we will capitalize on it by launching the product at the right time. 
Test-Launch Campaign 
The purpose of this campaign is to create a perception of exclusivity and rarity. The product will not be
launched to the open market, but rather gifted to the people of our choice. This will be more of an
endorsement campaign from celebrities, but not just any celebrities. We will select the stars that our
target audience relates to. For example, Mooro from YouTube, or Eva Zu Beck, whose travel vlogs
received massive attention from Pakistan when she came to visit the country. The terms of the
campaign would be simple, wear the product, go on a trip to the north and talk about how the product
has created value for the consumer. The vloggers and product reviews will have their trips sponsored as
well, if the need arises, but this might not be necessary in all cases.  By this time, the launch date for the
product would be finalized and these vloggers will also highlight the date our product goes online. The
objective we will try to achieve through all this effort will be to persuade the target market into liking
the product and at the very least, consider the product to be a viable option once they plan for their trip
clothing. At this point we want the product to move from the awareness stage to the likability stage, and
hence creating a window for the consumer to finally purchase the item.  
In order to persuade the target market, we will need to convince the audience about the value
generated by our product, and why is the price tag justified for this value. Using the internet celebrities
to endorse our product is merely one block to the whole puzzle. We will have to tell the consumers how
this product is a better alternative to the traditional multi-layered clothing styles, that not only make
maneuverability of the person wearing them difficult, but also diminishes the experience of travelling by
making multiple clothes difficult to carry around and look after.  
We will have to highlight the salient features of our product and justify why we believe that this product
is need and how is it relevant to today’s fashion industry. This argument will open new doors to
merging traditional fashion with technology as well. We might achieve that by including testimonies of
people who went on trips but faced a problem, a problem that would not have occurred if our product
would have been used instead of the traditional use of wind breaker jackets and multiple layers of
clothing. 

Post-Launch Campaign 
Once we launch the product on our website, we will again use online influencers to spread the message
that we are finally operational. Online influencers will be given personalized promo codes and will be
paid with commission on every entry of the promotional code. Moreover, the product will be advertised
on multiple webpages like daraz, olx, and other sites where the target age group makes up most of the
visitors. The objective of this stage will be to push the potential customers from liking the product
to actually buying it. This is the most important part, as this is where we generate our inflows from. If we
fail at this stage, we will not be able to breakeven, and with limited resources, this is not a good place to
be in for a startup.