Introduction

• Charles & Keith is a Singapore footwear and fashion accessories label owned mainly by Charles & Keith(Singapore) Pte Ltd.

• Charles & Keith has a global network that covers more than 165 stores across 25 countries with them specialising in items

• Including Shoes, Bags & Accessories

• Their mission is “To offer high quality products and services, with a commitment to perfection.”

Marketing Orientation

• Societal Marketing concept:

• Places great importance on being a socially responsible company by contributing in numerous ways to the community it operates in by focusing on 3 main principles:

Humanitarian Causes Human Excellence Environmental Initiatives

Target Market

• Demographic Targeting strategy • Charles and Keith current target market

working class women who like to wear quality shoes.

• Target market for new product• working class who will require the use of

formal wear

Strategic Direction

Why Charles & Keith was chosen:

• Potential Market Share

• Enterprise of the Year 2009

• Pledges to the Society for the Physically Disabled (SPD)

SWOT AnalysisStrengths:

• Excellent brand awareness• Strong brand positioning• Broad portfolio • Long term experience• Strong management team• Online presence

Weaknesses:

• High pricing of products• Uncomfortable footwear• Imitation of goods

Opportunities:

• Expansion of products/services• Brand endorsements by models and celebrities• Expand outside Asia

Threats:

• Intense competitions• Changes in consumers’ taste• Economic factors (recession)

Ansoff’s Model

• For Charles & Keith, we will be adopting the Product Development strategy for our new product – formal wear

• These products are new products for the existing markets

Gap Analysis

• GAP analysis is a growth strategy that helps companies compares actual performance with potential performance.

• There are three types of strategies:

• Intensive growth, which is a current portfolio of the company that is trying to achieve growth within the current business.

•Integrative growth strategy, where companies are able to build or acquire businesses that are related to their current business

• Diversification growth, which means that the company would be interested to attract business that is unrelated to the current business

BCG Model

Question Mark category• -low market share• -high market growth

Positioning

• Based on survey, Quality and Price ranked at top 2 priority for making a purchasing decision.

• Positioned to offer the best quality product at affordable prices

Marketing Direction

Product

Quality

Quality has a direct impact Uses only top quality materials to produce our

merchandise

Design and Style

Famous designer Ashley Isham to lead our design team

the new line of formal wear we are planning to introduce will be very popular and well-received

Packaging

Adopting societal marketing concept Our packaging concept would be

environmental friendly Shopping bag in the form of “Briefcases” to fit

in and complement with the formal wear’• Can be reused

Product life-cycle strategies(Introduction)

Starts when the C&K formal wear line is first launched.

In this stage, as compared to other stages, profits are negative or low because of the low sales and high distribution and promotion expenses.

Because the market is not generally ready for product refinements at this stage, we would only produce basic version of the product at this stage(1 or 2 designs)

So it is important to build selective distribution and gain product awareness among early adopters and dealers through using heavy sales promotions to entice trial.

Product life-cycle strategies(Growth)

• Even though there will be a growing number of competitors, our sales and profits is still expected to increase during this period together with maximizing market share being our marketing objective.

• However, to sustain rapid market growth and continue growing our market share, we would aim to use these strategies to remain competitive:

Improving product quality(Use better material etc) Introducing more designs and product lines Reducing sales promotions

• In the growth stage, our firm would face a trade-off between high market share and high current profit. By financing on product improvement, promotion, and distribution, the company can capture a dominant position.

Product life-cycle strategies(Growth)

If the product satisfies the market, it will enter a growth stage, in which sales will start climbing quickly.

The early adopters will be satisfied with the quality & design of the formal wear we plan to introduce and later buyers will start to follow their lead, especially if they hear favourable word of mouth.

Attracted by the opportunities for profit, new competitors will enter the market. They will introduce new designs of the product and the market will expand.

Price

• Pricing Objective- maximum market share• Pricing Strategy- Market Penetration• Product-Mix Pricing Strategy- Optional Product Pricing

• Pricing Adjustment Strategy- Customer Segment Pricing- Product Form Segment Pricing- Timing Pricing- Psychological Pricing- Discount Pricing

Place

• Direct and Indirect marketing channels• -Indirect -2 channel levels

• Distribution strategies• Pedro outlets

• People• GEMS training• Matching outfit

• Physical Evidence• Ambiance of stores• Segregate the store

Promotion

Our marketing communications objectives:• to build brand awareness• influence the consumer decision• promote our new product – formal wear

Advertising:• helped shape good company image• change the customer’s perception of Charles & Keith• A series of innovative advertising campaigns were used

Sales Promotion

• A form of communication that support Advertising and specifically meant to help sell Charles & Keith products faster

• Charles & Keith offers warehouse sales, loyalty programs and membership offers for their consumers

Internet

• Great for building customer relationship, high selectivity and inexpensive

• Necessary information of the product is put up on the website giving consumers specific details of the product

• Charles & Keith also use the various social networking sites to promote their products (Facebook & Twitter)

Outdoor

• Its function is to provide coverage about their new product and create public awareness

• Billboards & posters can be found in the public places

• Effective headlines and taglines were used to promise a benefit, arouse curiosity and present something new to their consumers

Print Advertisement

• Able to reach highly targeted audiences and create a vast pool of loyal readers who feel safe in its very credible environment over the years

• Charles & Keith advertisements can be seen in magazines such as CLEO, Her World and Female

Chosen Media

• Internet - relatively inexpensive and it provides immediacy with latest updates of products for their consumers

Why Online Advertising?• The Internet has opened up new communication options for

personalized messages to be delivered to targeted consumers

• Reading habits are also changing fast. More consumers are going online every day, and they are spending more quality time online than on traditional media

Financial Plan

Charles and Keith is popular among the magazines for having the most interesting photos of showing off their shoes and bags.

The cost of advertising in magazines would cost about $6,800-$12,800 for first or second half of the magazine or the first 25% of the magazine.

Advertising methods Rates

MRT Stations $300/week(Min. Ad period 8 weeks)

Bus Stops $3,500-$7,500/month(Prime Areas cost more due to high volume of commuters)

Television 10 Seconds $35015 Seconds $50020 Seconds $70030 Seconds $100040 Seconds $1,35050 Seconds $1,70060 Seconds $2,000(Advertising with Channel News Asia)

Magazines Regular Position(Second Half of Magazine) $6,800Preferred Position(First Half of Magazine) $10,800Prime Position (first 25% of magazine, guaranteed right hand, facing editorial pages) $12,800

Taxis $200/day per taxi(Wholly taxi, Taxi door, Taxi Top)

Online Personal Website $600/ week (whole page)Social Platforms $3,280/week

Advertising methods RatesTelevision 10 Seconds $350

15 Seconds $50020 Seconds $70030 Seconds $100040 Seconds $1,35050 Seconds $1,70060 Seconds $2,000

Magazines Regular Position(second Half of Magazine) $6,800Preferred Position(First Half of Magazine) $10,800Prime Position (first 25% of magazine, guaranteed right hand, facing editorial pages) $12,800

Online Personal Website $600/ week (whole page)Social Platforms $3,280/week

Other advertising locations that Charles and Keith uses.

Conclusion

• Should expand to selling formal wear• Huge potential to succeed• Complements existing product• Should follow the suggested marketing plan