New Victoria Beckhams Cruise Sub Brand - Essay Example

New Victoria Beckham’s Cruise Sub Brand New Victoria Beckham’s Cruise Sub Brand Background information The new Victoria Beckham’s cruise sub brand for spring summer 2014 comes in the wake of the successful 2013 spring summer collection. The new range is a masterpiece that adds femininity to the cruise style having a tinge of the 1950s in its design. The collection in line with the quality and glamour associated with Victoria Beckham’s brand fuses modern day concepts with the classic 1950s elements. The range comes with a full collection of well-tailored dresses, light jackets, fancy jumpsuits, and fully accessorized with bright summer wear. The common Victoria Beckham signature of navy stripes is a characteristic present in all the accessories. Trend research The current hot trends in the market are based on the redefinition of the 1950s. The market trend that is so prevalent is the use of bright colors with fancy new designs. This necessitates the brand in following the trend to mainstream its design to light, trendy, and bright colored summer wear. One of the major spring summer trends is the use of an all-white theme. The main reason for white color is that is ever lasting and does not go out of style. Consumer Research Consumers are the backbone of any new product in the market. In this new spring summer collection of 2014, the views of the consumer form a large portion of the whole line. Consumer research shows that consumers need to be fully included in the designing of the products. Their preferences are light and stylish clothes for spring summer. Competitor Analysis The top three competitors for Victoria Beckham’s spring summer collection are Moschino, Givenchy, and DKNY. According to the SWOT analysis model the above three competitors have one common strength over the Victoria Beckham collection is that the three companies enjoy market advantages due to their existence for a long time. However, all the leading brands including Victoria Beckham’s brand enjoy equal opportunities in accessing the market. Marketing Objectives The first marketing objective in the smart model that can be used is that marketing should be measurable. The second objective is that the marketing model ought to be realistic. Lastly, the marketing strategy should be time scaled. Objectives in marketing that follow the smart model are more likely to be successful. Segmentation of the Market Market segmentation entails the division of consumers into different groups according to common identifiable characteristic. The major segments possible in the market include gender- related, geographically related, age-related, and lifestyle related segments (Joyce & Woods, 2008). Targeting The segment to be targeted is the gender-related segment. The strategy to be used in targeting is market differentiation. In market differentiation, the main strategy is to tailor make products that meet specific needs of individuals or a group of people in the market with similar requirements. Differentiation of markets into sub groups to meet their specific needs will lower the risks faced by the clothing line and will work at improving revenues. Positioning Positioning in the market is significant to the success of the new spring summer wear line of Victoria Beckham. 1. Positioning map- brand positioning in the market follows the successful selection of the target market, which in this case is the gender-related market. The product, which is the summer cruise wear, has to be positioned to meet targeted customers wants and needs. Concerning brand positioning, the line must take consideration of its customers’ needs in relation to competing products. Positioning maps are vital in the classification of already existing markets and identifying any gaps in the market to take advantage. Positioning in the market is vital with the use of a map to know the specific size of production necessary (Mintzberg & Waters, 2002 p. 18). 2. USP or point of differentiation- Unique Selling Proposition (USP) is a marketing feature that the new cruise brand can use to differentiate its product from those competing against it. The main point of differentiation in the new cruise brand from its competitor is through the quality and originality of the clothing line. Brand identity 1. Brand name- Victoria Beckham the new cruise brand 2. Marketing mix Product 1. Core benefit- the core benefit is a representative of the benefits that consumers enjoy from the consumption of a specific product. In this case the core benefit of the new cruise brand is to offer stylish, simple, and unique clothing to the customers. 2. Actual benefit- this stems from the actual product being sold and in this case the actual benefit is the satisfaction of wearing comfortable and appealing summer wear. 3. Augmented product benefits- the augmented product is constituted by the packaging, brand names, labeling, and price. The benefit from augmentation is the advantage it gives the product line over its competitors in perfectly differentiating it from others. 4. Potential product benefits-the potential product benefits include comfort, looking trendy and cost saving. PRICE The pricing aspects of any product are significant to its success and penetration in the market. The new cruise brand of Victoria Beckham should set its prices well in order to compete favorably in the market. 1. Pricing strategies The new cruise brand should adopt three basic pricing strategies. The first strategy is through penetration pricing, where the prices set are adequate to allow the new product enter the market and secure a fair share of the market. The second pricing strategy to be used is the competitive pricing strategy where the new brands prices are similar or close to those of competing brands. In competitive pricing, the new cruise brand cannot set it prices too high. The other pricing strategy to be used effectively is the differential pricing one where prices are differentiated according to different clients with specific differences in their expectations (Ohmae, 2012). 2. Competitor price mix analysis The new brand of spring summer wears needs to take into consideration the pricing strategies employed by its competitors through a thorough analysis and streamline their prices accordingly (Porter, 2009 p. 245). Place 1. Distribution channels The distribution channel has to be simple, cost effective in reflection of profit goals, and pricing. The best distribution channel to be followed is from production to retail stores who finally sell to customers. 2. Location of outlets The location of supply outlets should be proximally located near the customers. Spring summer wear is more marketable near coastlines and beach towns hence more stores should be located there for maximized sales. Promotion 1. One year promotional calendar The promotion calendar is vital in the success of the new brand in the market. The calendar should be split into three. The first part is during spring where the prices are to be discounted at a rate of 10 percent, while the second part is in winter where further reduction in price is inevitable to 25 percent to boost sales. The third section of promotion entails the use of marketers in stores during summer. 2. Launch Campaign A major campaign with aggressive advertising in magazines, billboards, and televised adverts raises the awareness of the public. The PR department is to be bolstered to ensure that customers are satisfied with the products. New cruise sub brand portfolio Reference list Joyce, P. & Woods, A., 2008. Essential strategic management - from modernism to pragmatism. London: Butterworth Heinemann;. Mintzberg, H. & Waters, J.A., 2002. “Of strategies, deliberate & emergent” In Strategic Management Journal, Vol. 6, pp.257-272. (Adapted extract reprinted in Mintzberg & Quinn The Strategy Process, pp.14-15, New York, NY: Prentice Hall International. Mintzberg, H., 2007. “Crafting strategy” In Harvard Business Review, July - August 2007, pp.66-75. Harvard: Harvard University Press. Ohmae, K., 2012. The mind of the strategist. London: McGraw-Hill Publishing. Porter, M.E.,2009. Competitive strategy – techniques for analyzing industries & competitors. New York, NY: The Free Press. Porter, M.E., 2009. Competitive advantage – creating & sustaining superior advantage. New York, NY: The Free Press. Read More