Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

Direct Marketing Plan:

ZAFINO Laptop Bags

Retail Executions Pty Ltd
JADDAN BRUHN BOBBY BRADY MIKE BRADY JAN BRADY PETER BRADY MARSHA BRADY GREG BRADY CEO / CFO ACCOUNT MANAGER CREATIVE DIRECTOR CREATIVE SERVICES MANAGER MEDIA MANAGER PUBLIC RELATIONS MANAGER RESEARCH

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Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

Executive Summary
Zafino drives to translate its smaller scale operating capacity into an ability that allows the company to be far more responsive to the needs and expectations of customers, developing bags that directly meet lifestyle and career challenges and style aspirations in a manner outside the scope of larger brands, whilst concurrently exceeding the calibre of product retailed by smaller scale market participants attempting to captivate the same niche. Zafino aims to position its brand as the leading premium women’s laptop bag for superior quality and style. The laptop bag market is currently dominated by a small number of brands catering to the utility requirements of purchasers, defined by a near exclusively male oriented aesthetic. Brands creating laptop bags for stylish corporate females are highly diffuse, have very low brand recognition, and largely place emphasis on cheap fashion with little regard for quality, durability or longevity. Critical objectives addressed by the proposed promotional activities have been identified as repositioning the brand, dramatically building brand recognition, forging a lifestyle affinity with the target audience, stimulating and driving a sustainable growth in sales, communicating and demonstrating the product’s defining attributes. This plan proposes to achieve these objectives by engaging with the target audience, providing visible and contextual triggers throughout the promotional period to provide the consumer with several touch points commensurate with instigating the execution of Zafino’s objectives facilitating consumer engagement and action, through direct mail, social media, public relations, sales promotion, print and television advertisements; aligning Zafino with consumer’s career aspirations, lifestyle demands and social connectedness. Extensive research has identified the typical Zafino laptop bag owner and the most powerful motivations for her purchase; cognisant of the elemental impact of her product choices, adept at visual projections of her goal-driven lifestyle, perceiving the purchase of a Zafino laptop bag as an individualised expression of style and confidence, a marker of status and a reward for achieving a career milestone that signifies a sense of personal recognition. The demand for laptop bags is critically aligned to laptop sales. The current and impending launch of several new products by hardware vendors, the incremental and sustained growth of the Australian dollar, competition and innovation directed laptop market expansion and reduction in the purchase cycle all conspire to beneficially impact the inherent demand for Zafino’s symbiotic product. The proposed promotional activities are structured to occur during the May – June 2010 period, supporting the launch of Zafino’s first David Jones retail concession and coinciding with consumer’s propensity for tax-effective expenditure during this time.

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Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

Table of Contents
Table of Contents.................................................................................................. 3 1. Introduction....................................................................................................... 4 2. Analysis of Market Situation..............................................................................4 2.1 Competitor Analysis .....................................................................................4 2.2 PEST Analysis...............................................................................................4 2.2.1 Political......................................................................................................4 2.2.2 Economic...................................................................................................4 2.2.3 Social.........................................................................................................4 2.2.4 Technological............................................................................................4 2.3 SWOT Analysis..............................................................................................5 2.3.1 Strengths...................................................................................................5 2.3.2 Weaknesses...............................................................................................5 2.3.3 Opportunities.............................................................................................5 2.3.4 Threats......................................................................................................5 2.4 Market Position.............................................................................................5 2.5 Macro Environment Analysis........................................................................6 2.6 Micro Environment Analysis..........................................................................6 3. Target Audience................................................................................................6 3.1 Demographics..............................................................................................6 3.2 Psychographic..............................................................................................6 3.3 Geographic...................................................................................................6 3.4 Behavioural / Usage......................................................................................6 4. Direct Marketing Objectives...............................................................................7 5. Direct Marketing Strategies...............................................................................7 6. Tactics...............................................................................................................8 6.1 Direct Mail – April 2010*...............................................................................8 6.2 Social Media – April 2010..............................................................................8 6.3 Magazine Print Advertisements – May to July 2010......................................8 6.4 Sales Promotion – April to July 2010*............................................................8 6.5 Television Commercial – May to July 2010....................................................8 6.6 Public Relations – Host charity screening of Sex and the City 2 – June 20108 6.7 Public Relations – Fashion event at David Jones – May 2010*......................8 7. Control Measures...............................................................................................9 8. Indicative Budget – David Jones Fashion Event.................................................9

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Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

1. Introduction
Established in 2007 as a manufacturer and retailer of high quality, high fashion, laptop bags for women, Zafino is currently placed at a critical juncture in its progression as a brand and as a company. Armed with the experience garnered over the last three years of operation, sustaining financial viability throughout the global financial crises, and perceiving a need to reengage with consumers as it relaunches its website and opens its first David Jones retail concessions, it is prescient for Zafino to now take the opportunity to move into the future and maximise the brand’s potential through a strong and effective coordinated promotional campaign.

2. Analysis of Market Situation
2.1 Competitor Analysis
Dominated by Targus, Belkin and Crumpler, brands catering to the utility requirements of laptop purchasers, the laptop bag market is currently defined by a near exclusively male oriented aesthetic. Brands creating laptop bags for stylish corporate females are highly diffuse, have very low brand recognition, and largely place emphasis on cheap fashion with little regard for quality, durability or longevity.

2.2 PEST Analysis
2.2.1 Political
• • • • Impact of consumer protection legislation. Location of manufacturing base. Changes in importation regulation / AQIS requirements Labelling regulation

2.2.2 Economic
• Product is tax-deductible. • Purchase cycle of product correlates to shortening purchase cycle of laptops. • Current fluctuations in $AUD have made imported premium bags more affordable. • Materials supply sensitive to shipping delays. Increase in female workplace participation. Increase in personalisation of corporate accessories. Consumers more willing to purchase a laptop bag that reflects a personal style, rather than just using the standard bag that accompanies laptop purchase. Increased confidence/uptake in on-line shopping. Demand for product dependant on demand for medium-sized laptops. Improvements in durability/sustainability/weight of alternative materials may impact consumer demand for leather. On-line sales require continued growth in uptake of broadband internet.

2.2.3 Social
• • • • • • •

2.2.4 Technological

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Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

2.3 SWOT Analysis
2.3.1 Strengths
• • • • • • Premium product identified as status purchase. Product is classified as a tax-deductible expense. Design techniques emphasise style attributes, deferring attention from functional aspects. Bags utilise high quality materials and adhere to superior production standards. Strong relationships with suppliers, keyed to respond flexibly to demand fluctuations. In-house manufacturing process ensures strict quality control, allows for smaller runs of specialist bags for promotional purposes and facilitates the flexibility to implement design alterations in response to consumer demand. Low brand awareness. Limited retail presence/ small distribution network. Brand is not diversified. Continued financial viability depends on outcome of proposed promotional activity. • Competing in niche market currently overlooked by mainstream laptop bag manufacturers. • Niche competitors highly diffuse, of lower quality, smaller range and of lower brand recognition. • Anticipated expansion of laptop market from impending laptop product launches and high value of Australian dollar keeping shelf price of technology imports relatively low beneficially impact demand for Zafino’s product. • Scope to dominate niche and be identified as brand leader in category, with long term potential to diversify product offerings into specialist IT, luggage or fashion categories to leverage expected increased brand awareness.

2.3.2 Weaknesses
• • • •

2.3.3 Opportunities

2.3.4 Threats
• Continued demand for product dependant on existence and ongoing demand for laptops. • Established brands in women’s handbags and luggage categories may introduce laptop bags in direct competition, capitalising on their brand’s lifestyle and status attributes. • Mainstream laptop bag brands may introduce products positioned at the high-end, female market, capitalising on their greater brand awareness and broader distribution networks.

2.4 Market Position
Zafino’s key point of difference relative to other brands operating in the niche female laptop bag market is its product’s superior quality and its attention to the style attributes important to the target audience. Zafino aims to position itself as the leading high-end brand of laptop bag in its category, based on style and quality, with its shelf price reflecting its image as a premium product.

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Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

2.5 Macro Environment Analysis
Zafino is a growing small business operating in a niche market and accordingly will remain quite sensitive to a number of external variables. The issues in the macro-environment with the greatest scope for impact on the business are: • A global double-dip recession, deepening the economic impact of the GFC. • Fluctuations in Australia’s economic stability; including material movements in levels of full time employment, interest rates and currency exchange rates. • A legislated / market price on carbon / pollution increasing freight & production costs. • Incursion into product category by premium brand with much higher brand awareness. • Technological changes impacting sale / use of laptops.

2.6 Micro Environment Analysis
Zafino directly manufactures the bags it retails from materials sourced locally and overseas. Issues for Zafino to focus on in its micro environment include: • Freight and logistics contracts for movement of stock. • Manufacturing, retail and administration personnel issues. • Flexible supplier contracts responsive to fluctuations in retail and manufacturing demands.

3. Target Audience
3.1 Demographics
Zafino’s key demographic is females, 25 – 35 years old, educated, employed, unmarried, childless, urban dwelling in metropolitan Sydney. Young Optimism, AB & C, style and fashion conscious, seeking to project the right image, on a clear career trajectory, keen to assert their corporate credentials, more confident in expressing their sense of femininity in the workplace – yet cognisant of the importance of quality manufacturing techniques and textile integrity, adept at visual projections of their goal-driven lifestyle. The target audience reside in inner-urban Sydney. Sydney is also the focus of promotional activity. As a visible accessory that conveys a sense of the success and status of the wearer, the target audience perceives the purchase and utilisation of a Zafino laptop bag as an individualised expression of style and confidence, a marker of status and a reward for achieving a career milestone that signifies a sense of personal recognition – demonstrating the ability to coopt a premium product they deserve that manifests a tangible signifier of their female empowerment; a defining point of difference, depicting corporate confidence and personal style – an opportunity for personal expression and identity that transcends the corporate uniform.

3.2 Psychographic

3.3 Geographic

3.4 Behavioural / Usage

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Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

4. Direct Marketing Objectives
Key goals to be addressed through the proposed promotional activities have been identified as an urgent requirement to increase brand recognition, direct traffic to and increase sales at Zafino’s website, expand market share and raise consumer awareness of the product’s defining attributes. Underpinning the broader promotional deliverables, and, commensurate with the opening of the David Jones retail concessions, sales are projected to increase concurrently by 200% during the fourth quarter. Altering the profile of Zafino, affiliating Zafino with the consumer’s lifestyle; the designated promotional activities are tasked with positioning Zafino at the premium end of the market, in a cost-effective, consistent manner, maximising brand exposure, providing the scope and opportunity for the product’s attributes, style and superior quality to be explored, demonstrated and glamorised; creating a buzz, engendering recognition and piquing desire; resulting in consumers making a Zafino laptop bag purchase. These goals are to be achieved through advertising structured for the maximum reach and frequency possible within budgetary limitations, flighting simultaneous to promotional activities timed to generate awareness of the product via multiple touch points, compounding the impact of paid-for promotional activity and its ability to leverage exposure and activity generated by non paid-for promotional activity.

5. Direct Marketing Strategies
Direct marketing activities are to be employed to support and underpin the strength and effectiveness of Zafino’s promotional campaign. Utilising paid for mailing lists and the customer databases of promotional partners to directly engage with consumers, Zafino intends to leverage the reach of its advertising campaign with personalised electronic and direct mail to prospective consumers in its defined target audience.

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Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

6. Tactics
During the campaign period of April to July 2010, the promotional activity will be conducted as follows:

6.1 Direct Mail – April 2010*

6.2 Social Media – April 2010

Purchase subscriber lists of Grazia & Marie Claire magazines, delete duplicates, direct mail a post card informing the recipient of the launch of the new Zafino website, upcoming Zafino hosted events & directing them to register their details through the website for product discounts, prizes & to be informed of future Zafino style events. Create Zafino Facebook page. Reference the link on the Zafino website & alert names in the database via e-mail. Direct people to join Zafino on Facebook & post a link on their wall & invite their friends; to keep informed of Zafino style events, offers & prizes. Half page print advertisements featuring Megan Gale as the face of Zafino, in Grazia, Famous, Madison & Marie Claire magazines during May, June & July 2010. Images used for the print advertisement will be from stills taken during the filming of the TVC. Through magazine subscription website magshop.com.au, via electronic direct mail offer new and existing subscribers discount on laptop bag purchase, with the incentive of offering three back copies with the new laptop bag of the magazine subscribed to. As additional support to the electronic direct mail, have a promotion link on magshop & Zafino website and Facebook page, and printed on new subscriber cards inserted in all ACP magazines. TVC promoting brand awareness & launch of David Jones retail concession, featuring Megan Gale as the face of Zafino. To air during May, June & July during 7pm Project, The Good Wife, Ugly Betty, NCIS, Masterchef and Medium, shows most watched by the target audience.

6.3 Magazine Print Advertisements – May to July 2010

6.4 Sales Promotion – April to July 2010*

6.5 Television Commercial – May to July 2010

6.6 Public Relations – Host charity screening of Sex and the City 2 – June 2010

6.7 Public Relations – Fashion event at David Jones – May 2010*

In conjunction with 2Day FM, Time Out Sydney, The Sydney Morning Herald, Skyy Vodka, Sunraysia Natural Beverage Company (cranberry juice retailer), Event Cinema & The McGrath Foundation, host a charity screening of Sex and the City 2, with all proceeds from the evening going to The McGrath Foundation.

To launch the opening of Zafino retail concessions at David Jones, Zafino, David Lawrence & David Jones host a fashion show at the Elizabeth St store showcasing the corporate Spring/Summer 2010 collection of David Lawrence, integrating the Zafino product range. Personalised direct mail invitations will be sent to Sydney David Jones account holders inviting them to the event & introducing them to the product. *=direct marketing activity.

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Plan Direct Marketing Activities – BSBMKG508A JADDAN BRUHN

7. Control Measures
Unlike other promotional activity options available to Zafino, the impact and engagement level generated by direct marketing activity is able to be monitored and measured precisely. Click through sales generated by electronic direct mail can be tracked and measured for effectiveness and to monitor and determine the accuracy of the audience targeted. The effectiveness of the personalised direct mail can be determined by attendance at the invited event. Inclusions in the mail-out encouraging a direct response, either by interacting with the website, signing up to the Zafino customer database, or making an event specific purchase (ie offering an event specific discount), are further ways to measure the effectiveness of direct mail.

8. Indicative Budget – David Jones Fashion Event
Retail Executions DJ Fashion Event - Zafino Budget - Fashion Event Models Stage Manager Hair/Makeup/Wardrobe Staging Equipment & Staff Lighting Equipment & Staff Audiovisual Equipment & Staff Interior fit-out & Site set-up crew Furniture Hire DJ Security Catering Hospitality Staff Cleaners Graphic Design & Printing Photographer Invitations & mailout Press Photos & Materials Total David Jones @ 50% David Lawrence @ 30% Zafino @ 20% 5,000.00 800.00 2,000.00 3,000.00 2,000.00 2,000.00 3,000.00 2,000.00 500.00 500.00 2,000.00 1,000.00 500.00 2,000.00 2,000.00 4,000.00 8,000.00 $40,300.00 $20,150.00 $12,090.00 $8,060.00

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