ExampleMarketingPlan1
Marketing Plan （clothing: jeans）
Group Member:
1.0 Executive Summary
Jeans are now a very popular article of casual dress around the world. They come in many styles and colors; however, "blue jeans" are particularly identified with American culture, especially the American Old West. Often the term "jeans" refers to a particular style of pants called "blue jeans" and invented by Jacob Davis and Levi Strauss in 1873. Starting in the 1950s, jeans, originally designed for cowboys, became popular among teenagers, especially members of the greaser subculture.
The Levi's brand epitomizes classic American style and effortless cool. Since the invention and patent of riveted clothing by Jacob Davis and company founder Levi Strauss in 1873, Levi's jeans have become the most recognizable and imitated clothing in the world - capturing the imagination and loyalty of people for generations. And while the patent has long since expired, the Levi's brand portfolio continues to evolve through a relentless pioneering and innovative spirit that is unparalleled in the apparel industry. Their range of leading Jeanswear and accessories are available in more than 110 countries, allowing individuals around the world to express their personal style.
We can choose a style as being an agent of Levi’s brand and sell its product at third-tier city, cause we find that the third-tier cities in per capita disposable income grew faster than the first-tier cities, and also in the future 20 years third-tier city will become the main economy boom point of China. All in all, there are lots of potential customers between 17-40 which obtain huge purchasing power, however, cause of economic development speed and inconvenient traffic factors, many of those well-developed third-tier cities don’t exist these big brands, these groups of people can’t consume these products conveniently. Hence what we should to do is to provide these people a chance to get close to Levi’s. In the first 3 years of the business, we expect finding these potential market and to take the largest proportion of jeans market among third-tier cities.
2.0 Company Overviews
2.1 Mission
Our main mission is to provide Levi’s Jeans clothing among third-tier cities to satisfy a group of people who love life, fashion and the pursuit of individuality, not afraid of facing challenge, energetic, adventurous, free leisure is the life pursuit.
2.2 Competitive Advantages
Levi's is the world's largest jeans' company. Its brand is one of our biggest advantages There are a lots of loyalty customers. Besides that cause we will set our stores in third-tier cities, many of those cities don’t exist Levi’s stores and most people live in third-tier cities have vanity of famous brands. It’s our second competitive advantage—monopoly. Third, we choose a style as being an agent, we will have some price advantages and some professional instructions over other Levi’s resellers.
2.3 Back Ground
After analysis the economy situation of third-tire cities, we find there are three main characteristics. First of all, the GDP growth rate in third-tier cities is higher than first ones. Second, the rate of the price of real estimate to people’s income in third-tier cities is more reasonable than first ones, people have greater purchasing power. Thirdly, the third-tier cities in per capita disposable income grew faster than the first-tier cities. So to open stores in third-tier cities is a good choice.
3.0 Objectives
1.0 Develop a group of people between 18-40 who has loyalty to our stores in
one year.
2.0 Deepen the influence of Levi’s among third-tier cities in two years.
3.0 Double our sales by the year end of the second years.
We can short our objectives into 3d.
4.0 Situation Analysis
4.1 Internal positive --Strengths
Levi's is the world's largest jeans' company. Jeans are a very professional product, and Levi's is very strong, able to quickly grasp the popular elements, at the same time to obtain first-hand information from the brand sales, and this is Levi's biggest advantage. International brand---Levi's cost-effective than local enterprises and make it cannot be compared. And then, a long history and strong brand culture is the strong backing of its competition.
4.2 Internal negative --Weakness
Levi's predecessor, has always insisted on a pair of jeans sold with thousand Yuan in the factory of the world as China. However, RMB 299-399 Yuan is the mainstream price of a brand of jeans in the Chinese market, therefore, the price is the biggest disadvantage before a big changing happen in China.
4.3 External positive --Opportunities
Not only because of China has 1.3 billion potential customers, but also has the world's fastest-growing middle class. The Chinese government is trying to encourage its citizens to increase their consumption. The level of consumption in China has been improving. Obsession and pursuit for international brand of Chinese costumer is undoubtedly the opportunity to compete in Levi's.
4.4 External negative --Threats
1．Powerful competitors: the denim market in the top three: Lee, CK in the launch of new products at the same time are all out marketing.
2．Obstruction of local enterprises: China is country that can make a jeans for only $1, to ensure that the premise of low-cost, local enterprises are also to follow the trend of fashion, and make jeans as pretty novel styles. This is undoubtedly the Levi's obstacles to development in China.
3．A blank of e-commerce: In this era of information technology, a large portion of the population have been accustomed to shopping online. In China, the younger generation are accustomed to online shopping, they prefer to stay at home to enjoy the convenience of shopping and fun on net. However, in e-commerce area Levi's is empty, they are entirely the form of a physical store to do some promotions of Levi's brand.
5.0 Costumer and Product Analysis
Analysis based on the consumer, we know very well that the jeans market faced to consumer groups between 18-40 years old, Occupation: students, office workers, outdoor sports, freelance. They love life, fashion, and the pursuit of individuality, not afraid of facing challenge, energetic, adventurous, free leisure is the life pursuit. For Levi, age is not a problem, but if there must be preceded by the age limit and that is about 18-35 years old. Qualitative research shows that this group is particularly in love with a cowboy apparel, fitting denim clothing to bring them comfort unparalleled. According to market analysts, Levi's positioning in the 18-35 year-old people who pursuits of freedom and individuality and the fashion.
6.0 Market Analysis
Back to see the third-tier cities in China, almost locate around the eastern, southeastern, south and southwestern of China. Those areas have the most population of Chinese. GDP is an important indicator to reflects the level of economic development of a country or region. In near years, the third-tier cities in the GDP growth rate is generally higher than the first-tier cities. Contrast among the first-tier, second-tier and third-tier cities' GDP growth rate in 2009, "Beijing, Shanghai, Guangzhou, Shenzhen" growth is significantly lower than the part of the second and third tier cities, especially Shanghai's GDP growth rate of 8.2% at a low level. Although the second and third tier cities in total GDP lower than the first-tier cities,
but in recent years, the third-tier cities' urbanization has improved continuously, the economy is in a period of rapid growth, the city size and economic level, along with rapidly increasing.
And the third-tier cities in per capita disposable income grew faster than the first-tier cities. Since 2000, the first-tier cities per capita disposable income levels have been higher than the national average, but in recent years, with the development of the urban economy, its residents' income growth is relatively flat, and some third-tier cities economy is entering a period of rapid growth, residents' disposable income level of more rapid growth.
7.0 Marketing strategy
Target market
Our ideal customer is between the age of 18 – 40 who love life deeply, who like the pursuit of fashion and personality, who have the courage to face the challenge of life, who enjoy the free and leisure lifestyle. They can be students, office worker, outdoor sports people and freelance. They have the spending power and open mind to accept new fashion things quickly. With the development of economy of China, the preference of customers has changed. They care more about the quality, fashion and personality of the products than the price.
7.1 The combination of consistency and differentiation
There is no doubt that, as an international brand, the quality of Levi’s Needless to be cared about. The important thing is what kind of products can firmly grasp the hearts of consumers. We should insisted each commodity can reflect fashion, freedom individuality and at the same time develop a variety of series to meet the different needs of customers. For example, "PREMIUM" series, which is designed to get close to fashion and delicate. "TYPE1" series is designed to commemorate the LEVIS 150th anniversary of the new series. The style is more extreme, and with a little street color.
7.2 The product portfolio strategy
Levi's not only produce jeans, but also other derivatives, such as T-shirt, shirt, dress and so on. So we can use the product portfolio strategy to ensure the customer can have a variety of options. The customer can save much energy and time by buying the satisfied products in one stores.
7.3 Multi-brand strategy
In 2010, Levi's launched its new brand tannin town. This new brand is tailored for the Chinese people. The price set between RMB299 and RMB 399 which can draw more potential customers In the third cities.
7.4 Advertising and celebrity endorsements
Everyone is interested in the creative advertising. The advertising should pass the cultural connotation of levis to customers. Let the customer have the feeling of freedom, savagery and personality. The main actor and actress should have the ability to show the cultural connotation to customer. And they should be
well-known among the target customer.
7.5 The development of e-commerce
Now, there are too much cheap copy of levis in taobao. The product just call 100 to 200. The quality of the fake levis will influence the reputation of the brand seriously. With the development of economy of China, e-commerce is developing quickly and will be the trend in the future. So levis can develop the e-commerce though the establishment of the official website, blog, forum and online trading platform. The online trading platform not only can sale the product also can let the customer share their though and ideas. It is also convenient to collect the information of customer and heard their voice to do self-examination.
7.6 Adhere to brand positioning
consumers need clear positioning and bring a status symbol brand, just like AMANI (high fashion brands) is positioned as a noble, elegant. Levi's should seize their own position to insist on freedom personality and fashion brand culture. Stop to break away from the diversification of the brand culture.
7.7 Enhance the communication with customer
It is not a long time from Levi’s getting into the market of China. After beginning the business in the third cities, Levi’s should have feedback to seize the heart of customer. Such as, providing award and giving the chance to travel as a gift to high viscosity customer and so on.
8.0 Financial Projection
1. Annual expense budget by year
The first step Levi’s start the business in the third cities market is to choose a good location. There will be rental budget before the formal business. To make the brand well-known in the third cities, Levi’s should have a expense budget on the promotion. There will be budget on the employee’s salary and the fee on water and electricity.
Annual Expense Budget
factor Year 1 Year 2 Year 3
Promotion $200,000 $300,000 $400,000
Rental $100,000 $150,000 $200,000
Other $40,000 $50,000 $100,000
Annual Expense Budget
2. Sales forecast
Sales will mainly come from jeans.
Sales forecast Year 1 Year 2 Year 3 Unit price $100 $100 $100 Units sold 30,000 40,000 50,000
Total sales $3,000,000 $4,000,000 $5,000,000 Unit cost $ 50 $50 $50
Total cost of sales $1,500,000 $2,000,000 $2,500,000
Total profit from sales $1,500,000 $2,000,000 $2,500