MARKETING PLAN

YESHICA INDRA FASHION BUSINESS 2.2

16 MARCH 2011

CONTENTS

I. INTRODUCTION II. EXECUTIVE SUMMARY III. SITUATION ANALYSIS

a. Company analysis b. Costumer analysis c. Competitor analysis d. Collaborators e. Climate

i. PEST analysis ii. SWOT analysis

IV. MARKET SEGMENTATION V. ALTERNATIVE MARKETING STRATEFIES VI. SELECTED MARKETING STRATEGY

a. Product b. Price c. Distribution (Place) d. Promotion

VII. SHORT AND LONG TERM PROJECTIONS VIII. CONCLUSION

I. INTRODUCTION Greene   is   a   brand   that   holds   strong   beliefs   in   making   a   difference   –   not   only   to   the  costumers  but  also  on  the  environment.  For  this  reason,   it  seems  suitable  for  the  brand  of  active  wear  to  expand  to  the  world  of  organic  clothing.      This   plan   allows   us   to   analyze   into   the   insight   of   the   brand’s   business,   background   and  recommended  ways  to  expand  from  our  present  costumer  base  conditions.    

II. EXECUTIVE SUMMARY  Fueled  by  a   sense  of   concern  of   lack   feminine   sport  wears,  Greene  was   founded.   In  2008,  Greene  started  off  by  opening  a  small  concession  brand  at  local  department  store,  Sogo.  We  make  products   that   last  and  debunk  notions   that  active  wear   fashion  can’t  be  both  sporty  and  feminine,  promising  the  balance  of  style  and  performance.  Combining  organically  grown  and  recycled  fabrics,  Greene  is  the  first  choice  for  fashionable  organic  active  wear.    Since  that  point,  the  company  has  rocketed  to  have  our  own  boutiques  across  Jakarta,  but  also  still  holding  concession  stands  in  department  stores  and  have  highly  established  online  shopping  website.    

Our  business  had  overcome  various  obstacles  and  grown  rapidly  in  the  past  four  years.  We  are  projecting  that  by  this  plan,  we  increase  sales  and  revenues  by  perhaps  15-­‐25%  percent  the  least  by  creating  awareness  to  current  returning  customers  and  to  generate  an  average  of  15%  of  new  customers  within  the  next  year.  

   

III. SITUATION ANALYSIS  

A. COMPANY ANALYSIS

Goals To  inspire  women  to  find  empowerment  through  fitness.    Focus Our  company  focuses  on  giving  costumers  the  ability  to  own  organic  active  wear  clothing  by:  Cotton   and   Bamboo   grown   without   pesticides   that   don't   involve   the   use   of   harmful  chemicals   and   bleaches   to   color   fabrics—are  made   to   last,   so   that   people   keep   them   for  longer. Culture We  are   a   pioneering   company  which   aims   to  make   a   lasting   contribution   based   on  moral  awareness  and  ethics.  In  while  making  clothes  that  take  into  account  the  environment,  the  health  of  consumers  and  the  working  conditions  of  people  in  the  fashion  industry.    Strengths Strong  well-­‐established  brand  concept  Good  distribution  through  the  country  and  department  stores  Strong  costumer  relationship  High  quality  products  Strong  relationships  with  distributors.  Excellent  staff  who  are  well  trained  and  customer  attentive.    An  efficient,  stylish  retail  store.  

Weaknesses Specialized  product,  does  not  appeal  to  everyone  Products  limited  to  women  only  Depends  strongly  on  loyal  customers  

Market Share A  high  penetration  of  the  luxury  women’s  active  wears  market    

B. COSTUMER ANALYSIS

Number The  number  of  our  costumer  all  across  Indonesia  is  250.000  people  and  growing.    

Type GEOGRAPHIC

Consumers  generally  reside  in  urban  areas  and  large  cities  within  the  Special  Administrative  Region  of  Jakarta.  Demands  for  image  will  be  stronger  in  heavily  populated  areas  so  creating  a  higher  demand  for  stylish  clothing.  

DEMOGRAPHIC Products  are  made  for  women  only  and  appeal  to  a  wide  range  of  consumer  ages,  although  mostly  attract  those  of  aged  20-­‐40s  as  clothing  are  slightly  more  hip.  Their  income  will  generally  be  mid  and  above-­‐range  as  garments  are  slightly  more  expensive  than  the  non-­‐organic  finished  products.  

PHYSCOGRAPHIC Research  shows  that  consumers  have  shown  a  rise  in  global  awareness,  which  is  becoming  a  part  of  their  lifestyles.  Our  costumers  must  have  a  keen  interest  in  living  a  healthy  and  active  lifestyle  such  as  enjoys  activities  such  as  yoga,  Pilates,  dance,  aerobics,  swimming,  going  to  the  gym,  etc  and  will  generally  be  eco-­‐conscious  and  promote  green  living    BEHAVIOURAL Greene  tends  to  have  a  following  of  loyal  customers  as  they  offer  exclusive  promotions  and  campaigns  for  returning  buyers,  which  creates  an  attachment  to  the  brand.    

Value Drivers Beliefs  of  a  healthy  lifestyle,  as  they  are  the  companies’  core  values.    

Decision Process People  will  look  for  the  right  combination  of  style  +  performance  which  we  promise.      Concentration of costumer based for particular product The  best  selling  product  of  our  company  is  basic  seamless  sports-­‐bras,  leggings  and  layer  tops  that  are  originally  targeted  for  yoga  and  Pilates  wear  but  can  also  be  opted  as  leisure  wear.  

C. COMPETITOR ANALYSIS

Market Position

 

 

 

 

 

 

 

 

 

The  clear  difference  between  Greene  and  it’s  competitors  is  that  they  pride  themselves  on  being  unique  in  the  sense  that  they  offer  a  wide  range  of  products  which  not  only  perform  during  sporting  activities  but  also  hold  a  strong  sense  of  style,  something  that  is  not  easily  found  amongst  its  competitors.  Although  we  overcome  with  the  issue  that  we  are  not  as  well  established  as  some  international  active  wear  brands.    

Nike  Mid-­‐range  products  Fairly  basic  designs  and  styles  Good  on  performance  Do  offer  a  mid-­‐sized  selection  of  organic  clothing,  although  not  well  known

Puma  Mid-­‐range  products  Fashion  ability  over  performance  Only  offer  selected  men’s  organic  t-­‐shirts  Offer  designer  collaborations  

 

Fashionable  

Pricing  

GREENE  

NIKE  

PUMA  

D. COLLABORATORS Suppliers:  The  growing  popularity  of  the  brand  means  we  establish  a  secure  supplier  who  can  meet  our  growing  demands.  Also,  still  being  a  small  company  we  make  sure  suppliers  won’t  raise  prices  on  products.  

Distributors:  The  Company  has  an  advantage  of  selling  their  products  independently  from  store,  by  online  and  also  secured  concessions  in  Metro  and  Sogo.  

Subsidiaries:  Currently  we  have  no  second  line  under  our  brand.  

Joint  ventures:  We  too  offer  external  brands  on  our  store  such  as  Speedo,  Havaianas.  and  FitFlops.  

E. CLIMATE I. PEST ANALYSIS

Political A   shift   in   government   policies   on   shipments   or   manufacturing   laws,   may   affect   the  company.  

Economic A  rise  inflation  will  increase  sales  price  that  may  decrease  or  has  no  effect  on  overall  sales.  A  decrease  in  unemployment  rates  could  mean  decrease  in  disposable  income,  resulting  in  a  possible  decrease  in  sales.    Social Global  warming  and  environmental  issues  can  create  a  demand  for  natural  product  and  increase  sales  but  also  invite  new  entrants  and  competitors.  The  attitudes  of  people  towards  health  are  not  constant  and  can  cause  an  increase  in  sales  and  demand.    Technology The  company  has  a  well-­‐established  online  shopping  site  and  the  increasing  popularity  of  online  transactions  could  force  the  company  to  adapt  and  update  our  website.  

II. SWOT ANALYSIS

Strengths Quite  a  rare  market  –  being  an  organic  and  active  wear  for  women.  Good  distribution  through  independent  and  department  stores.  Strong  costumer  relationship.  High  quality  products.  Strong  relationships  with  distributors.  Excellent  staff  who  are  well  trained  and  customer  attentive.    An  efficient,  stylish  retail  stores.  

Weaknesses Specialized  product,  does  not  appeal  to  everyone.  Products  limited  to  women  only.  Depends  strongly  on  loyal  customers.  Slightly  costlier  being  an  organic  made  product.      

Opportunities Open  more  branches  all  across  Jakarta.  Collaborate  with  a  well-­‐established  designer.  Men  and  children’s  line.  Advancements  for  online  site.  Further  development  of  existing  products.      Threats Entry  of  new  and  similar  competitors.  Larger  and  more  established  brands  may  begin  to  sell  similar  products.  Changes  in  costumer’s  lifestyle  and  habits.  Non-­‐organic  products  hold  the  same  functions.  

IV. MARKET SEGMENTATION  Our   market   share   is   a   high   penetration   of   the   luxury   women’s   active   wears   market.  The   market   for   women's   fashion   is   a   strong,   steady   growing   market   but   with   too   many  competitors   in  women’s  wear   fashion,  Greene   separates  ourselves  with   the   small   growing  market  of  female  active  wears.    It  is  generally  may  not  be  affected  by  economic  downturns  as   it   is   not   a   primary   needed   product   but   quite   a   high   quality   product.    Women   seem   to  consume  fashion  regardless  of  the  economic  climate.  While  might  not  be  entirely  accurate,  women  love  their  fashion  and  cannot  seem  to  get  enough.  

 

STRATEGIC MARKETS Athletic Our  business  meet  the  standards  and  high  quality  that  the  professionals  seek.  These  include  athletes  that  pride  the  look  and  performance  of  the  product  or  people  who  looks  for  durable  active  products.      

Leisure The  comfort  quality  of  our  product  also  lets  people  to  opt  our  products  as  leisure  wear  and  although  this  is  not  our  target  markets,  this  market  contributes  much  to  our  product  sales  for  basic  apparels  such  as  tops,  leggings  and  sports  bra.      

   

PRICE SENSITIVITY All  products  will  be  priced  competitive  to  the  urban  Jakarta  market.  Although  our  products  are  mid-­‐range  and  they  retail  higher  than  the  normal  non-­‐organics,  our  garments  create  an  emotional   attachment   to   our   costumers   as   they   give   a   sense   of   ethics.    

 

V. ALTERNATIVE MARKETING STRATEGIES

1. SOCIAL NETWORKING PROMOTIONS 2. SPONSORING VARIOUS GLOBAL

EVIROMENTAL AWARENESS EVENTS 3. ENHANCE WEBSITE 4. OPEN BRANCH STORES AT THE KEY

PLACES TO TARGET MARKET’S 5. OFFER FREE ONLINE HEALTH BLOGS

PROMOTING HEALTHY LIVING

CAMPAIGNS FOR COSTUMERS 6. DISTRIBUTE FLYERS, CATALOGUES, ADS TO YOGA, PILATES, AND DANCE

STUDIOS, CLUBS AND FITNESS CENTERS 7. ONLINE NEWSLETTERS TO LOYAL COSTUMERS PROMOTING NEW

RANGE AND EXCLUSIVE DISCOUNTS 8. IN STORE ADVERTISING

9. FASHION SPREADS AND ADS 10. GIFT VOUCHERS 11. SPECIAL OFFERS FOR MEMBERSHIPS 12. WORK TOGETHER WITH FITNESS CENTERS, BANKS OR DANCE STUDIOS

AND OFFER FASCINATING SHOPPING DEALS

VI. SELECTED MARKETING STRATEGY

A. PRODUCTS

 We  establish  the  ability  to  understand  our  customers  and  connect  with  them  and  emphasis  in  the  balanced  combination  of  style  +  performance,  of  sporty  +feminine.  

APPARELS Our  organic  apparels  are  made  of  100%  cotton,  bamboo  or  hemp  grown  without  pesticides  that   don't   involve   the   use   of   harmful   chemicals   and   bleaches   to   color   fabrics.   We   offer  apparels  ranging  for  activities  from  swimming,  gym  workouts,  running,  yoga,  Pilates,  dance,  tennis,  beach,  walking,  and  even  a   special   line   just   for  pregnant  women.  And  under   those  categories   costumers   can   find   products   such   as   jackets,   bottoms   (skirts,   leggings,   skorts,  trousers),  tops,  bras,  vest,  swimsuits,  bikinis,  cover-­‐ups,  and  socks.  

ACCESSORIES We  also  provide  a  variety  of  fitness  accessories  such  as  trainers,  goggles,  bags,  mats,  water  bottles  and  towels.  But  these  only  can  be  found  on  our  store,  as  they  are  not  available  at  our  concessions  stands  at  department  stores.    

B. PRICE We  are  offering  the  best  quality  of  organic  fibers  for  prices  that  are  affordable  to  our  target  market,  which  most  likely  would  still  be  getting  disposed  income.    

Our  apparels  retails  in  the  range  of  IDR  100.000  –  1.000.000  above  for  various  tops,  jackets,  sports  bra,  cover  ups,  swimwear  and  vests.  

C. DISTRIBUTION (PLACE) Our  stores  are  available  at  malls  such  as  SENAYAN CITY AND EX.  For  reasons  that  consumers  generally  reside  in  urban  areas  and  large  cities  demands  for  image  will  be  stronger  in  heavily  populated  areas,  creating  a  higher  demand  for  stylish  clothing.  These  malls  have  a  gym  that  in  effect  would  boosts  the  sales  of  our  products.    

Products  are  arranged  into  categories,  both  in  store  and  online,  making  it  easy  to  find  the  product  costumers  are  looking  for  and  which  activity  they  are  looking  to  partake  in.    

We  also  do  offer  our  products  through  the  small  concession  stands  for  the  apparels  we  have  at  department  stores  of  Sogo  and  Metro  which  are  located  at  malls  such  as  PONDOK INDAH

MALL AND PLAZA SENAYAN.  

D. PROMOTION Marketing  strategies  for  2011  will  be  an  overall  continuation  of  Greene’s  advertising  and  promotion  methods.  At  present  we  depend  on  the  use  of  online  promotion,  in  store  advertising,  social  networking,  newsletters,  memberships  and  general  magazine  coverage.  These  have  all  been  successful  ways  for  to  raise  brand  awareness.  For  this  reason,  we  will  add  more  by  ways  of:  

-­‐  The  distribution  of  catalogues  promoting  the  new  range  of  organic  active  wear  and  also  offering  a  discount  when  flyer  is  presented  during  a  purchase.  

-­‐  These  catalogues  will  be  distributed  to  yoga,  Pilates  and  dance  studios,  clubs  and  fitness  centers  within  range  to  the  Greene  stores.  

-­‐  Online  newsletters  to  loyal  customers  promoting  the  new  range  and  offering  an  exclusive  discount  (higher  than  given  to  regular  customers)  when  purchasing  items.  

-­‐  In  store  advertising,  including  visual  merchandising  and  knowledgeable  staff  

-­‐  Online  promotions;  creating  a  health  blog  that  promotes  healthy  living  for  costumers.  

 -­‐  Offer  exclusive  memberships  for  loyal  costumers  

-­‐  Work  together  with  Fitness  centers  -­‐  for  members  of  a  certain  gym  get  a  30%  off  our  stores  by  showing  their  fitness  membership  card.  

VII. SHORT & LONG TERM PROJECTIONS

   

• To  generate  a  minimum  15%  -­‐  25%  growth  in  overall  sales  and  revenue  for  the  company  in  the  year.  

• To  increase  sales  of  apparels  by  30%  in  the  next  12  months.  • To  create  awareness  to  current  returning  customers  and  to  generate  an  average  of  

15%  of  new  customers  within  the  next  year    

• To  maintain  and  increase  the  current  market  share.  • To  make  Greene  the  first  choice  for  fashionable  organic  active  wear  for  women.  

 

ASSUMPTIONS

Our  projections  are  based  on  the  assumption  that  the  economy,  consumer  spending  habits  and  population  growth  in  Jakarta  will  continue  for  the  future.  

1)  Inflation  will  remain  at  3  per  cent  in  2011,  rising  to  4  per  cent  in  2012  and  2013  2)  Interest  rates  will  remain  in  the  range  of  5  to  6  per  cent  over  the  period  of  the  plan.    3)  Company  wage  increases  will  not  exceed  inflation  over  the  next  two  years.  4)   Suppliers   will   continue   to   sell   inventory   to   us   at   prices   that   allow   us   to   maintain   our  margins        

GREENE  SALES  FIGURES  (Historical  and  Forecast)  

SALES  AREA:     ALL  

 

YEAR  (values   in   Rp  000,00)   2008   2009   2010   2011  

forecast  2012   2013  

             APPARELS   1,105,750     1,117,830     1,125,650     1,129,230     1,142,230     1,152,660  ACCESSORIES   945,700   963,200     1,120,820     1,201,910   1,314,200   1,389,190  

             TOTAL   2,051,450  

 2,081,030  

 2,246,470  

 2,331,140  

 2,456,430  

 2,541,850  

 

VIII. CONCLUSION  

From  the  data  collected  and  taking  into  consideration  the  opinion  of  current  Greene  customers,  the  current  need  for  organic  clothing  within  the  organic  wear  market  and  the  steady  increase  in  global  awareness,  it  seems  that  our  collection  will  not  only  benefit  the  company  in  accomplishing  their  hopes  of  becoming  a  successfully  sustainable  company  but  also  aid  in  an  increase  in  sales  and  revenue  and  generate  new  relationships  with  a  clientele  who  share  beliefs  of  a  greener  world.  

   

APPENDICES  Our  latest  set  of  accounts  is  included  in  the  appendix  together  with  further  analysis  of  our:  

• Sales  areas  and  key  applications  • Profit  margins  • Breakeven  analysis  • Catalogue  draft