Marketing plan: Secosana bags - Essay Example

A MARKETING PLAN FOR SECOSANA BAGS TABLE OF CONTENTS EXECUTIVE SUMMARY 3 COMPANY OVERVIEW 3 SITUATION ANALYSIS 4 Market Industry Trends Strengths - Weaknesses - Opportunities - Threats Analysis Competitor Analysis 5 TARGET MARKET 6 Demographics Psychographics Benefits Usage MARKETING AND FINANCIAL OBJECTIVES 6 MARKETING STRATEGIES 8 Product Price Promotion Distribution ACTION PLAN 9 CONTORL PROCEDURES 10 REFERENCES 11 Elena Kakuriev Marketing Plan 15 April 2006 SECOSANA BAGS: MARKETING PLAN I. EXECUTIVE SUMMARY In the bag industry, the most recognized brands such as Guess, Louis Vuitton, Versace, DKNY, Gucci, Calvin Klein Collection, Celine, and Prada all have gained prior and major access as well as a stable market share in the Philippine market. These brands, such as Louis Vuitton, are already synonymous with the fashion style and elegance according to http://www.bagsforme.com/louis-vuitton.php. It is now an enormous challenge for the SECOSANA Company, an amateur bag company to gain the challenger role in the Philippine market. SECOSANA Company aims to gain at least an additional 10% of the market share upon the introduction of its new product line. This is possible using SECOSANA's discount offers and advertising strategies. These strategies are directed towards women aging from 18 to 40 years old either earning or non-earning. With this, SECOSANA projects a net income from the projected sales of $14,520 that is worth 2640 units. Although, locally SECOSANA is a competitive brand, SECOSANA still aims to level up with international brands' claims such as Guess's "already high standards a driving artistic force in the world of fashion" as stated in its website in http://www. guessinc.com or be like Gucci Groups becoming "one of the world's leading multi-brand luxury goods companies" (http://www.guccigroup.com). II. COMPANY OVERVIEW Noted as "one of the most recognized brands for ladies targeted at women" http://www.secosana.com.ph reveals some of the achievements of SECOSANA Inc. among these are: "2004 Consumers' Choice Awards for Most Outstanding Ladies Bag, 2004 People's Choice Award for Top Ladies Bag Brand, 2004 Outstanding Product Brand of Leather Bag for Ladies, 2004 People's Choice Award Top Ladies Bag Brand " and the list goes on. In addition, SECOSANA describes their products as an understanding of the women's lifestyle and respect for their independence. It is the woman's sense of fashion that drives SECOSANA to improve the quality and style of their bags. The primary aim of SECOSANA bags is to design a bag that "reflects every woman's unique personality." III. SITUATION ANALYSIS a. Market SECOSANA bags primarily target markets composed of women who fall in the 18 to 40 year old bracket, who finds SECOSANA bags suited for their varying personality, attractive to the eyes, uniquely designed to go well with their taste and convenience and durably made that it ensures quality. It shall give women the additional satisfaction they wanted when the bags are offered at a reasonable price. b. Industry Trends The Philippines is a very good market for bags given the idea that the Filipinos love bags and prefer affordable prices provided it has a durable quality. It is easy to market and sell in the key cities of this country since the major cities have very busy and crowded malls that could catch the attention of the customers and cater to the investors well. The Filipino people that are in charge with the sales of the bags also have good communication skills that could easily convince the customers. Bags used depend on the occasion as well as the season. Just like any other fashion analysts, http://www.fashionfreak.de/ classifies their bags in four major categories that would best fit summer time. Their classifications are: "Modern Classic - Femininity with style", "Sweet Fifties - Coquetry with Charm", "Dynamic Fun - Sportiness Full of Power : Originality with Esprit" and "Fantastic Nature - Exotic and Eroticism". It is the challenge of every bag company to produce a bag that would best fit an occasion or, if possible, fit all occasions and most seasons. c. Strengths - Weaknesses - Opportunities - Threats Analysis SWOT (Strength-Weakness-Opportunities-Threats) OBJECTIVES ACTIVITY KEY RESULT AREAS STRENGTHS Proper delegation of work Collection of partial receivables. To have a proper scope and limitation of each function. Be able to collect it on time. Discuss further the function of each position. Discuss proper schedule of collection. have a proper flow of work Continuous business operation. WEAKNESS Increased prices in raw materials. Be able to canvass at the lowest price. Scout other stores for the cheapest price. Be able to purchase at the low cost. OPPORTUNITY Designs Create new elegant styles. Research updated designs, sizes, and style. More sales THREATS Competition Establish a marketing key of the product. Quality of work. More profit d. Competitor Analysis Currently, the Philippine market for bags is primarily battled by major stable bag companies like GUESS, Versace, Louis Vuitton, Gucci, Dolce and Gabana and the local manufacturers in the country. Most Filipinos prefer very affordable bags but not undermining the quality of the bags they buy. If a bag would carry a very affordable price with quality performance, sure enough the product would hit the market. IV. TARGET MARKET a. Demographics Age - 18 above Gender -Female Classification: Students and employees Status - Single, Married Location - The Rural Areas of the Philippines Income: Budgeted allowance b. Psychographics All classes of lifestyle who would like to pick and add SECOSANA bags to their collection. This category also covers bag collectors and fashion freaks who could not go out without a bag in hand. c. Benefits Aside from having the women's stated needs satisfied, customer's secret needs are also answered such as being admired by men and adored by their friends because of the different available colors and designs for the bag which will definitely complement a woman's needs for every occasions. d. Usage The bag shall be a "user-friendly" bag. According to http://www.wearwish.com/overgirl/, Secosana bags "do have decent, and rarely, even fashion-forward bags." Secosana bags come in leather forms which are well-built and can be used during ordinary daytime get-ups and evening parties. The users could have easy access to its compartments. The bag's compartments are made especially to fit a woman's planner and journal, make-up kit, pens, cellular phones, papers, coin purse, etc. V. MARKETING AND FINANCIAL OBJECTIVES a. Marketing Objectives SECOSANA bags shall be aiming to gain at least a 10% additional market share in the primary cities of the Philippines such as Manila, Cebu City and Davao City. With stable and internationally acclaimed competitors like Guess, Gucci, and Dolce and Gabana, SECOSANA should have very appealing strategies that would call the attention of the customers. SECOSANA also aims to be the preferred brand in the Philippine market and as a result would have reasonable initial net income. In total, SECOSANA bags aim to be a challenger in the Philippine market and its greatest asset is its very affordable price. b. Financial Objectives SECOSANA Bags aims to become the preferred brand by Filipinos. In effect, sales of SECOSANA bag shall increase at a minimum of 10%; by which would also increase the net income of the company for the year ended December 31, 2006. The figures are based on the Philippine Peso and are converted to U.S. Dollars at an average exchange rate of Php 55.00 = $1.00. 1. Increase sales units by: 20 units monthly; 240 units at the end of the year. 2. Increase Sales Dollar: $110 monthly: $1320 at the end of the year. 3. Projected Total sales in 12 months: $ 13200.00 4. Total Net income: $8000.00 VI. MARKETING STRATEGIES a. PRODUCT SECOSANA bags are made out of leatherette material, it is patterned and cut from an elegant designs. These designs vary from tote bags, shoulder bags and hand bags that come with affordable prices the market will surely like. Enhance convenience for women to put their belongings. It can be use on different occasions and it can also be worn on casual days. It can be use in school, in office, or to any formal occasion. The bags that SECOSANA produces include handbags, mini bags and shoulder bags. When the customer purchases a SECOSANA, she will attain the satisfaction of buying a branded bag at a lower price. By this, she meets her secret need of being praised by her comrades of having such beautifully designed bag. Thus, two needs of the customer are met at once. Her stated need of having a bag and her secret need being recognized by her friends for having a SECOSANA bag. The SECOSANA bag aims to attain recognition in society in par with the internationally known brands like Guess and Gucci. With that, SECOSANA bags shall be a challenger in the Philippine industry of bags. It shall have a head on competition with the stated stable brands through its specific marketing strategies. b. PRICE "SECOSANA BAGS" a chic and classic bag. SECOSANA bags shall be sold at reasonable prices that range from $6 to $25 or in the Philippine context, a price of Php300.00 to Php1250.00. This is a very good advantage for SECOSANA bags over its stable competitors because prices of competitors' products are roughly higher or more expensive than that of SECOSANA's. c. PROMOTIONS SECOSANA will double up its existing promotional strategies to increase its consumer awareness. The specific action programs details SECOSANA's plan in increasing customer awareness. This covers up advertisement through radio, leaflets and billboards. SECOSANA shall also offer discount privileges during peak seasons or on special occasions like Thanksgiving and Christmas. d. DISTRIBUTION SECOSANA has already opened up stalls in major malls in key cities in the Philippines. However, the locations of these stalls are to be reevaluated since it might be an inappropriate or inaccessible location which might be the reason why there is a lack of customer awareness. In connection to this, SECOSANA is, if possible, to be placed beside one of its major stable competitors. This will grant the customers the idea of comparing both the quality and price of the competing brands. Thus, since SECOSANA has par quality yet more affordable price than its competitors, customers would prefer SECOSANA. VII. ACTION PLAN ACTION TIME FRAME BUDGET Leaflets will be distributed to major malls in key cities of the Philippines. Agents will be assigned to distribute the fliers. The fliers shall contain basic information and benefits derived from the bags; and also contain sample images of bags. This shall also contain the data where the bags can be purchased. The leaflets are in a size of 8.5 inches by 11 inches and are folded into a brochure type. Every first week of the month for one (1) year and shall have a year-end evaluation to assess whether the program is to be further pursued. January to December 2007 Printing Costs: $ 180.00 for 500 sheets. A billboard shall be posted that contains a sample image of the bags and shall also display the selling price of $2.80 per bag. The billboard shall also contain the company's slogan. Contracted for two years with bi-annual evaluation whether the program is to be further pursued or not. January to December 2007 $500 per month for two years = $12,000. SECOSANA company shall also advertise the bags on key radio stations in the Philippines. It is the liberty of the radio station to create a jingle about the bag. The advertisement contains the location, attributes of the bag and the price. Done during the first and the last quarter of the year and shall have a year end evaluation to assess whether the program is to be further pursued. January to March and October to December 2007 Primetime advertising: $8. A 10% to 25% discount is to be offered on selected bag items. During the Christmas season, from December to January of the following year. To be evaluated whether the program is to be pursued or not. December 2007 - January 2007 Costs incurred are only the cost discounted. VIII. CONTROL PROCEDURES If the business environment does not favor SECOSANA Company, the company shall little by little eliminate its non-productive marketing strategies. The results of the evaluation shall come in handy. First on the line is the elimination of the leaflets. By this, the company saves $180.00. Next to be eliminated is the billboard. By this, the company saves a $12,000 cost. The company also considers the possibility of selling its unnecessary fixed assets. Also, the company could shift from direct selling to consignment basis to cut down on agent expenses. With these following activities to be done, the company shall be able to revive its initial working capital. IX. SUPPORTING DOCUMENTS 1. Computation of Projected Sales: Increase sales by 10% which is 240 units. Target sales = 240 / .10 = 2640 units Target Sales Dollar = 2640 units * $5.5per unit. = $ 14520.00 2. Action Program Timeline First Quarter January to March Second Quarter April to June Third Quarter July to September Fourth Quarter October to December First Week: Leaflets Billboard Radio Advertising First Week: Leaflets Billboard No Radio Advertising First Week: Leaflets Billboard No Radio Advertising First Week: Leaflets Billboard Radio Advertising Discount offers X. REFERENCES Works Cited "Company Overview." GUCCI GROUP. 2004. Gucci Group NV. 01 April 2006. http://www.guccigroup.com/grpProfile/default.asp. "eLuxury.com." BagsForMe.com. 01 April 2006. http://www.bagsforme.com/louis-vuitton.php. Leigh. "Bags that won't strain your wallets." OverGirl. 29 October 2005. 21 April 2006. http://www.wearwish.com/overgirl/. Offenbach, Messe and Traudel Albrecht-Fuchs "I.L.M. Offenbach :Fashion and Bag Trends Spring/Summer 2005 -The Ease of Being." Fashionfreak! Volume 5. Issue 04/01, 08.04.2005. 15 April 2006. http://www.fashionfreak.de/vol05/editorials/ editorial_20en .html "Overview How it all began." Guess. 2006. Guess, Inc. 01 April 2006. http://www.guessinc.com/Overview/. "Profile." SECOSANA Inc. 15 April 2006. http://www.secosana.com.ph/main.php Read More