Launching Women in Vogue Clothing Line A Marketing Plan

LaunchingWomen in Vogue Clothing Line: A Marketing Plan

Tableof Contents

Executive Summary 4

Introduction: Company description 5

Situational analysis 5

SWOT Analysis 5

Porter’s Five Forces Analysis 6

a. Bargaining power of suppliers 7

b. Bargaining power of buyers 7

c. Competitive rivalry 7

d. Threat to substitution 7

e. Threat to new entry 7

Market growth potential and competitive analysis 8

Market analysis 8

Pricing 8

Segmentation 9

Target Market 9

Positioning 10

Marketing Communications Plan 11

Media selection 11

Reach and frequency and costs 11

The Financial Plan 12

Forecasting demand 12

Break-even Analysis 13

Sales 14

Promotional budget and marketing expenses 15

Intended Marketing Objectives 17

Recommended Marketing Strategy and Tactics 18

Implementation Milestones 18

Marketing and Product Performance Evaluation and Control Metrics 18

Customer readiness to buy metrics 19

Sales metric 19

Distribution metrics 19

Contingency Planning Elements 19

Legal and Ethical Considerations 20

Conclusion 20

References 22

ExecutiveSummary

Today, mostorganizations challenge their workers to dress professionally. Inthis regards, it is imperative for the apparel industry to offerprofessionally tailored clothes while at the same time designing themuniquely and trendy. Thus, Indulge Women’s Clothing want to launcha product that meets the needs of the professional woman in astylish, innovative, empowering, and conservative manner. The newclothing line (Women in Vogue) will give the firm acompetitive edge and allow it to compete favorably with itsrivalries. Furthermore, Women in Vogue will ensure that thecompany extends to other regions, appeal to other clients, increaseits profitability, and become a major player in the apparel industryin California. When a company is planning to launch a new product, itis essential that the organization possess the knowledge of themarket to ensure a successful product venture. This report willundertake a situational analysis through a SWOT analysis and Porter’sForces, then evaluate the market, growth potential for the product,competitors’ strengths and reaction to the new product, and amarketing research. Then, the report will outline a marketing andfinancial plan to determine the effectiveness of the new product.Thus, this report analyzes the marketing plan of the Women inVogue clothing line to determine the strategies and financialsthat the company requires making the clothing line a success.

LaunchingWomen in Vogue Clothing Line: A Marketing Plan

Introduction:Company description

Based in Bakersfield, California, Indulge Women’s Clothing is aprivately held firm, which deals with women and children’s appareland accessories. The company was established in 2009, but due to theintense competition in Bakersfield, it has not managed to become amajor player in the area. The lack of extensive reach to clients isevident from the financials of the company and the number of staff.According to Manta (n.d.), the company has a workforce of roughly 4employees and a yearly revenue of less than $500,000. However, thecompany has managed to cultivate a loyal customer base, which hasallowed the company to remain a going concern. It is against thisbackdrop that the company wishes to introduce a quality, highlyinnovative, unique, and stylish clothing line.

Situationalanalysis

A situational analysis is a significant element of a firm’smarketing plan as it encompasses the approaches that the managementutilizes to evaluate a business’s internal and externalenvironment. By conducting a SWOT analysis and Porter’s 5 forcesanalysis, the situational analysis will help create a long-termrelationship with the clients.

SWOTAnalysis

Strengths

Weaknesses

  • Unique Product — Women in Vogue will introduce a product that will be unique to its market

  • Cost Advantage — Since the company’s objective is to sell their products at affordable prices, Women in Vogue clothing will have a competitive edge in the market

  • Marketing – The firm will greatly engage with the clients through social media platforms

  • Lower costs take away exclusivity of brand

  • Dependent on cheap supplies to keep overall costs low.

  • The bargaining power of consumers is relatively small

  • Barriers to entry Fashion industry has the potential to block new product lines

  • Diversified product range risk of brand dilution

Opportunity

Threats

  • International expansion

  • Targeting women who are interested in a sleek, conservative, professional look.

  • Growth in new locations

  • Competition (similar clothing lines)

  • Market Saturation

  • Economic recession

  • Foreign currency exchange rates

Porter’sFive Forces Analysis

The Porter’smodel is important as it allows one to examine the environment forthreats from rivals and detect problems to diminish the threats.

  1. Bargaining power of suppliers

The apparelindustry has a high number of raw material’s vendors thus, theyhave a weak bargaining power. Raw materials are cheap and readilyavailable and suppliers engage in a low forward vertical integration,which means their power is significantly low.

  1. Bargaining power of buyers

The apparel industry, especially in the California region, ischaracterized by a high number of clients. Although some clients areloyal to certain brands, they can switch easily to other brands, andinfluence emerging trends in the industry. This means that lowswitching costs, a high number of providers, and great availabilityof substitutes allow the clients to have a high bargaining power.

  1. Competitive rivalry

The market is highly saturated with many providers offering thesimilar products though differentiated and same experience. Thecompetition is high with the largest competitors being theestablished large stores.

  1. Threat to substitution

The market has a high number of providers offering similar products,which means that clients can easily switch to other products withinCalifornia. Thus, the threat of substitution is high.

  1. Threat to new entry

The threat is low in the market as new brands and firms can easily bedeveloped or formed in California. The regulations for entry in theapparel industry are few and standardized, the government provides afavorable environment, and the industry provides multipleopportunities for growth.

Marketgrowth potential and competitive analysis

Today, the competition in theapparel industry is highly intense. Brands from direct competitorssuch as Gap, Express, Calvin Klein, Bling It On Boutique, and H&ampMwill threaten the Womenin Vogue as the newclothing line will share style and design aspects. Furthermore, thesecompetitors have previously marketed affordable apparel to theintended target market. However, given previous trends in the market,the level of competition will vary and the number of directcompetitors may fluctuate especially given that research shows theapparel industry as dynamic (Brown &amp Rice, 2013). The intensityof competition could also increase, especially if Womenin Vogue expand into theglobal market. Some competitors will adapt to market changes andconsumer demands as they devote greater resources to altering theirbrand in efforts to tailor their marketing strategies to theconsumers’ needs. Creativity and innovation will enable IndulgeWomen’s Clothing to market the new product to existing and newclients. Expansion to new locations and market will become vital forthe product’s development and success.

MarketanalysisPricing

The medium earning for the females in the area is $22,411 with anunemployment rate of 7.4% and residents with income levels below thepoverty level in 2013 consisting 25.8% (United States Census Bureau,2015). It is against this the relatively high poverty levels andlow-medium earning that the company will offer the new product at areasonable price. The company will use price elasticity fordetermining demand measurement as a long-run pricing strategy toassist the overall product line growth. The measurement will allowthe firm reduce prices on slow moving merchandise and wait since timewill have a major effect on prices. The firm strives to cover itscosts while still making a profit thus, it will utilize TargetCosting to understand costs as they relate to production. Themanagement must understand the minimum efficient scales of productionfor the products, which will enable the firm to determine thebreakeven point (Soener, 2015). Overall, the firm will adopt a valuepricing as the pricing approach. However, Women in Voguewill not hold back on quality for the offering of low pricing. Kotlerand Keller (2016) assert that a value pricing approach allows a firmto win loyal customers through low prices, maintaining ortransferring to lower-cost methods of production and deliveringquality items. The product will trade at $51, $60, and $69 dependingon color, style, and included features and will offer a 30-day returnpolicy with an accompanied receipt in case of any problems.

Segmentation

The firm willeffectively create a niche segment for promoting Women in Vogue byutilizing geographic segmentation and women demographics. The newclothing line will be directed to the entire California and laterexpand to other parts of America. Given the relatively low valueinfluenced by the potential clients, the firm will market the productto some parts of the world, for example, Asia and Europe.

TargetMarket

Women inVogue is intended for the professional working class womanbetween twenty-five to thirty-five years. The target group willmainly consist of sizes 7 to 22 Hispanic and Caucasian females withincome levels between $22,000 and $35,000. The company chooses thissegment given that Bakersfield has a population of 177,216 females ofwhich 56% are Caucasian females and 45% are Hispanic females (UnitedStates Census Bureau, 2015). The medium age of the females is 31years and 64% is in the working-age bracket. Thus, the companyintends to target working Hispanic and Caucasian females as theyrepresent the largest population in Bakersfield. The chosen sizes forthe women reflect the health trends of the area given that 30.3% ofthe population is considered obese (Bryner, 2012). The firmunderstands that the working class is an important segment of theindustry thus, the firm’s focus on the group.

Positioning

In launching theproduct, the company will utilize demographic-based and competitivepositioning. The firm will rely on comparative advertisement to reachthe target audience while it will cultivate demographic-basedpositioning to reach buyers. The firm will offer flexible paymentsand free shipping for consumers who will choose to buy online. Thecompany will position itself as the center of stylish conservativeapparels for the working woman, not only in the Bakersfield localitybut also within California and across America. Women in Vogue willembody a uniquely professional and conservative look for the workingwoman of all sizes. Furthermore, the product will position itself asthe conservative, empowering, and tasteful design for the workingwoman seeking a mature style without overwhelming her budget.

MarketingCommunications PlanMediaselection

Women have beengradually climbing the professional ladder for the last 50 years,making up about 51% of professional workers in the United Stateswithin the last couple of years (&quotDepartment for ProfessionalEmployees&quot, 2015). With such a high level of professional womenin the workforce, there is no question that the clothing line willappeal to those looking to dress for success. By placing an emphasison the methods for communicating to women in the industry, themarketing approach needs to be tailored to their lifestyle. Clothingand apparel firms can interactively connect with their marketsthrough direct advertisement and online advertisement. Directmarketing approach will allow the company to be more selective andtailor exposure towards the target audience (Roberts &amp Candi,2014). The firm will use flyers and brochures by distributing them tohouseholds in the Bakersfield city area that fall within thepredetermined demographics. For a more cost-effective channel, anonline marketing approach will suffice. Through display ads placed inrelevant websites that match the interest of the female businessprofessional, the firm will reach more clients. The social media, forinstance, Instagram, Facebook, Twitter, YouTube, and blogs will formthe largest marketing channel for launching the new product. Funk(2015) contends that recently, 73% of brands have invested greatly insocial media and have experienced increased profitability. In thisregards, it is imperative to note that the success of Women inVogue will greatly depend on the effectiveness of the marketingstrategies adopted.

Reachand frequency and costs

Thecompany will undertake a mass marketing campaign to introduce theproduct in the market. To enhance its online presence, the firm willcreate a website where clients can make purchases and interact withemployees. In the first year, the firm will spend $50,000 onmarketing and running of its online channels. The firm will increasethe budget by 8% and 15% during the second and third yearsrespectively. The increase of the marketing budget is in regards tothe firm’s expansion into the international market. Marketingcampaigns will be undertaken monthly and targeted towards Californiaarea during the first six months, but extend to America in the lasthalf and the first half of the first and second year. Later, the firmwill target international clients. However, some marketing campaignsespecially those in the online platform will run throughout as itwill be easier to run and maintain the channels.

TheFinancial Plan

The firm willmaintain a proper financial strategy for the first three years. Thefinancial aspects will include forecasting demand, sales, break-evenanalysis, marketing expenses, and promotional budget.

Forecastingdemand

For short-term forecasts, the firm will undertake interviewsand surveys. The firm will also undertake a projection-based approachto project for the demand. This year, the company generated a revenueof 4,725,000 from the sale of 115,000 units while in last year, thecompany sold 95,000 units thus, the company projects that the salesfor year one will be 100,000 units [(95,000 + 105,000/2)]. Demand forthe second and third year will include new markets that the companyhad not expanded into during the other periods.

Basedon the current market, the need for stylish, unique, and conservativeapparels for the working woman, the firm expects an increasing demandfor the product.Break-evenAnalysis

The break-even analysis shows the number of products and the revenuethat the firm must sell and generate daily to cover the costs of thebusiness.

Table 1

Break-evenanalysis

Revenue Break Even $50,000

Expected profit $1000,000

Assumptions

Average Sale Per-Unit Revenue $60

Average Per Unit Variable Cost $40

Average Sale Per Unit Revenue $60

Estimated Annual Fixed Costs $1,000,000

Sales

The firmprojects the first year revenue from the sales of Women in Vogueto be $6 million, based on sales of 100,000 units at an average priceof $60. The firm projects first-quarter sales of $1 million,second-quarter sales of $1.5 million, third-quarter sales of $1.5million, and fourth-quarter sales of $2 million. During the secondyear, the firm projects the sales to increase to $10.5 million, whichwill then increase to $15 million during the third year. Thefirst-quarter projections for the second year will be of $2 million,second-quarter sales will be $2.5 million, third-quarter sales willbe $2.8 million, and fourth-quarter sales will be $3.2 million. Thefirst-quarter projections for the third year will be of $3.2 million,second-quarter sales will be $3.5 million, third-quarter sales willbe $4 million, and fourth-quarter sales will be $4.3 million

Table 2

Sales activity

By Market

Year 1

Year 2

Year 3

Bakersfield

40,000

5,000

4,000

Rest of California

50,000

40,000

30,000

Rest of America

10,000

130,000

66,000

Globe

150,000

Total

100,000

175,000

250,000

The cost of saleswill include material purchases, freight and duty, labor, utilitiesand services, overhead, and depreciation. In the first year, thefirm’s cost of sales will be $4.5 million, which will decrease to$4 million during the second year and increase to $5 million duringthe third year.

Table 3

Cost of sales

Year

1st quarter (in million)

2nd quarter

3rd quarter

4th quarter

Total

Year 1

2

1

0.8

0.7

$4.5

Year 2

0.5

1

1

1.5

$4

Year 3

1.7

1.5

1

0.8

$5

Promotionalbudget and marketing expenses

Table 4

Market budgetand expenses

Year quarters

Items

1st Q

2nd Q

3rd Q

4th Q

1st Q

2nd Q

3rd Q

4th Q

1st Q

2nd Q

3rd Q

4th Q

Advertising

9,000

4,000

4,000

2,900

4,000

10,000

7,000

4,000

6,000

6,000

6,000

10,000

Catalogs

2,000

1,000

2,000

1,000

1,000

2,000

Websites

2,000

200

100

100

100

100

100

100

100

100

100

100

Promotions

800

2,000

1,000

1,000

1,000

1,000

1,900

4,000

Brochures

1,500

1,000

400

400

1,000

1,000

1,000

1,000

1,000

1,000

PR

1,000

3,000

1,500

1,500

2,000

2,000

1,000

1,100

2,000

Training

1,000

2,000

1,900

2,000

Shows

4,000

2,000

3,000

3,000

4,000

2,000

2,000

2,000

Design

500

1,000

1,000

900

900

900

800

Misc

700

1,000

Press distribution

1,300

2,000

2,000

2,000

IntendedMarketing Objectives

Indulge Women’s Clothing wants to strategically entrench the Womenin Vogue in the industry in an effort to meet the lifestyle needsof wellness-aligned women professionals. The firm’s specific aim isto cultivate a unique place in the domestic and global apparel marketby offering the stylish, empowering, innovative, unique, yetconservative look of working females. Ingenbleek, Frambach, andVerhallen (2013) contend that for a firm to effectively attain itsmarketing objectives, it needs to combine the convenience of theproduct with a reasonable price. Thus, Indulge Women’s Clothing’sobjectives include:

  1. To promote product awareness by 40% among the target market within one year

  2. To update the target market about the product’s competitive advantage, features, and benefits in order to increase sales by 20% within one year

  3. Develop strong image in all markets within a one-year period, which will help increase sales in the second period by 40%.

  4. Engage in a mass marketing campaign for the second and third year in a bid to expand to the entire America and the world.

Once the product is fully developed, the company will gather andevaluate consumer feedbacks to gauge the level of satisfaction andareas of improvement. During the second and the third year, the firmwill engage in direct selling, improvements of the product’sfeatures, mass promotional campaigns, and expansion to internationalmarkets.

RecommendedMarketing Strategy and TacticsImplementationMilestones

The generation and screening of idea will be the first implementationmilestone for the company. This step will include the evaluation ofthe market to establish whether the company will manage to developand launch the product successfully. The step will consider theunique features to include in the product and the design of theproduct. This step will start on 1st September 2016 andend on 2nd October 2016. Then, the firm will develop andtest a prototype of the product to determine the selling features ofthe product. The company will design and develop few Women inVogue products and have the staff try them to see how women willlook on the product once launched. The firm will conduct studies intothe geographic, demographic, age, and buy behaviors elements of theclients. The research will be undertaken from 15thNovember and the reports will be submitted within 3 months (by 15thFebruary). This step will start from 10th October andcomplete on 20th February. The third step will involvedeveloping and preparing the product for launch. The Women inVogue launch will begin on 3rd March 2017. The companywill undertake marketing campaigns for 3 months until 4thJune and ultimately launch the product to the market.

Marketingand Product Performance Evaluation and Control Metrics

The firm will develop stringent control activities to evaluatequality and customer experience. The evaluation and control metricswill allow the firm attain breakeven, measure returns, controlschedules, and appropriate implementation of the identifiedapproaches. Thus, the evaluation and control metrics include:

Customerreadiness to buy metrics

To ensure that the brand is recognizable and appreciated, the companywill utilize awareness as the standard measure. A weakness inawareness will suggest the need to get the name out, which the firmcan attain through advertising. The firm will utilize theconventional survey measurement for evaluating this metric forquality rating. The information from the survey will be collectedmonthly and used in providing exemplary and excellent customerservice.

Salesmetric

The best way for a firm to increase its profitability is throughrealizing a growth in sales. As such, sales growth forms afundamental part of growth forecasts and planned decision-making. Thefirm will use sales growth as a vital metric to evaluate the growthtrends and normalized values. The company will monitor salesquarterly for signs of recession or growth thus, this will help indetermining target market growth and market share.

Distributionmetrics

The firm will include the cost per unit for transport, shipping costper unit, the frequency of back order, inventory turnover rate, thefrequency of inventory damage, the cost of carrying inventory,distribution cost, and a number of customer returns or goodsreturned. The distribution metric will allow the firm to evaluateaspects related to distribution and logistics.

ContingencyPlanning Elements

Indulge Women’sClothing has developed a contingency plan to deal with a descendingpricing pressure, which may ensue if a key rival starts a price waror creates a lower-cost technology. The plan supports theintroduction of a significant short-term price promotion, forinstance, a discount to remain competitive while defining the pricesensitivity of diverse sections. Based on the result of thepromotion, the firm will review the marketing plan as needed toprotect its market share and profitability. Furthermore, if salesfail to grow as expected, the firm will reduce long-term obligations,expand the product line, undertake a joint venture, or ultimatelyliquidate to cover liabilities.

Legaland Ethical Considerations

The marketing standards determine the interrelation between theadvertising company and clients. The firm understands that it mustaccompany the advertised product with a reasonable price and fairtreatment. Ingenbleek et al. (2013) and Soener (2015) assert that itis illegal for any firm to provide deceitful and unfair informationto the clients when advertising. This means that the firm will actreasonably in its marketing strategy. Furthermore, it is in thecompany’s domain that misleading and selective marketing negativelyaffects public relation and brand reputation. The firm should directadvertising to the target market and ensure that it does not invadepeople’s privacy, especially when collecting data.

Conclusion

Indulge Women’s Clothing new product, Women in Vogueembodies a uniquely professional and conservative look for workingwomen of all sizes. The product targets working professional womenwho desire a more affordable, sophisticated, and mature style. Thus,the company feels that the product launch will be successful. Thelaunch of the product will help build a platform for future expansionpossibilities across the world, especially in China, allowing thecompany to become Global. Marketing segmentation will be essential inidentifying marketing profile, customer-purchasing behaviors,customer-decision provocations, and the targeted market. Positioningand pricing of the new product will become important in ensuring thesuccess of the product while marketing will be the foremost aspect inensuring that the product reaches the targeted market.

References

Brown, P., &amp Rice, J. (2013). Ready-to-wear apparel analysis.Pearson Higher Education.

Bryner, J. (2012). The list: The most obese cities. LiveScience.Retrieved 2 August 2016 fromhttp://www.livescience.com/18886-obese-cities-list-2011.html.

Department for Professional Employees. (2015). Retrieved 2 August2016 fromhttp://dpeaflcio.org/professionals/professionals-in-the-workplace/women-in-the-professional-and-technical-labor-force/.

Funk, T. (2013). Advanced social media marketing how to lead,launch, and manage a successful social media program. New York:Apress.

Ingenbleek, P., Frambach, R. T., &amp Verhallen, T. M. (2013). Bestpractices for new product pricing: Impact on market performance andprice level under different conditions.&nbspJournal of ProductInnovation Management,&nbsp30(3), 560-573.

Kotler, P., &amp Keller, K. L. (2012). Marketing Management(14th edition). Upper Saddle River, NJ: Pearson Prentice Hall.

Manta Media Incorporation. (n.d.) Indulge Women’s Clothing &ampMore. Retrieved 2 August 2016 fromhttp://www.manta.com/c/mr418kt/indulge-womens-clothing-more.

Roberts, D. L., &amp Candi, M. (2014). Leveraging social networksites in new product development: opportunity or hype?.&nbspJournalof Product Innovation Management,&nbsp31(S1), 105-117.

United States Census Bureau. (2015). QuickFacts Bakersfield City,California. Retrieved 2 August 2016 fromhttp://www.census.gov/quickfacts/table/POP010210/0603526.