A Launch Marketing Plan for a High Street Brand That Has to Have International Appeal - Report Example

A Launch Marketing Plan for a High Street Brand that has to have international appeal Table of Contents Table of Contents 2 Introduction 4 2. Strategic audit 5 2.1. Micro-marketing environment 5 2.2. Macro-marketing environment 5 2.3. Customers perception towards the brand 7 2.4. SWOT & strategic options 7 3. Marketing plan 8 3.1. Marketing strategy 8 3.2. Aims and objectives 9 3.3. Target markets 9 3.4. Marketing mix 10 3.4.1. Product strategy 10 3.4.2. Price strategy 10 3.4.3. Place strategy 11 3.4.4. Promotion strategy 11 4. Marketing action plan 11 4.1. Timeline (or Plan calendar) 11 4.2. Budgets 13 5. Evaluation 14 Reference list 15 Appendix 17 1. Introduction Recently, the high street brands are facing huge challenge in terms of competitions and changing market demands and perceptions. There are several leading retailers in the high street of UK. Massimo Dutti menswear is one of the major lifestyle brands present in the high street area of the UK and is a part of the Inditex group (Static.inditex.com, 2015). In the international fashion segment Inditex group is positioned in the top level. The organisation is operating eight brands and they are having over 6,460 stores all around the world. Inditex Groups brands are aiming to sell trendy products with high quality and comfort provisions (Inditex.com, 2015). Inditex is meeting the requirements of customers with the help of more than 128,000 skilled employees. The group is using the state of the art system for logistics operations. This process will help the group to transfer various plans and raw materials from headquarter in Spain. Massimo Dutti is a part of the group established in the year 1985 (Static.inditex.com, 2015). During the year 1991, Inditex acquired the firm to increase profitability and revenue generation. Massimo Dutti is currently operating 769 stores in the global market of 71 different countries (Static.inditex.com, 2015). This brand is mainly providing the mens fashion in global fashion retail market. They started to produce new range of the fashion from the year 1992. Massimo Dutti reported with net sales of 1293 million Euros during the financial year 2012-2013 (Massimodutti.com, 2015). In the current study, a marketing plan developed for a new range of pomade products for Massimo Dutti Corporation. In the contemporary UK fashion market, beauty care products are increasing the popularity among male customers (Inditex.com, 2015). Mainly, the marketing plan will target the male from the UK based areas, who are in the initial stages of careers. The firm is planning to launch the first range of pomade product in the small and autonomous trend designer market. It is planning to develop new concept store in London area to meet more male customers (Inditex.com, 2015). 2. Strategic audit Strategic audit is a crucial part of developing a marketing plan for the Massimo Dutti for their new pomade product. 2.1. Micro-marketing environment These types of marketing environment will be depending on the various factors like consumers, competitors, intermediaries and other external parties (Cangemi, 2014). Consumers: During the year 2013, £415 was spent on men’s apparel and accessories for the mature male candidates. Barber products are holding huge market share of the consumer market of the UK. Men are increasingly looking for the style and grooming kits. UK based men customers are becoming image conscious. It is observed that more than 81% male youths of less than 25 years age are highly concerned for their appearance effects. They are using different type of barber products and they are recognised as the potential customers of new initiative of the pomade products of Massimo Dutti (Aagerup, 2011). Competitors: In the UK based barber market, Massimo Dutti will be facing the threat of other leading fashion products producers like the Belief, G-Shock, Crooks and Castles, Empire Apothecary, Garbstore, King Apparel, Lacoste, Majestic, and Nike. Thus, Massimo Dutti needs to develop feasible marketing plan to meet the challenges (Butler, 2013). Intermediaries: The fashion retail outlets and different local stores will be used to sell the pomade products of Massimo Dutti. Therefore, sales managers are required to maintain proper relationship with the intermediaries with proper charges. 2.2. Macro-marketing environment Demographics of Massimo Dutti: Massimo Dutti has launched youth fashion range in the year 2013 under the brand name of Massimo Dutti youths. They are operating in the global market with the help of the various strategic factors and huge product range. Their marketing managers are adopting demographic segmentation for the customers (Dutillieux, Stokes and Willekens, 2013). This policy helped them in meeting the requirement of designing and marketing of their huge product line. Managers of the firm have segmented the customers’ base according to the men, women, kids and latest addition of youths offering products like womens wear, Accessories, Fragrances, Mens wear, trimmings, Personal Tailoring, perfumes and Boys and Girls segments (Cangemi, 2014). PESTEL analysis of Massimo Dutti: Political factors: In the UK, Massimo Dutti will be enjoying stable political condition. Global business system is enjoying free market concept. Thus, pomade products of the firm will be facing intense competition from the other UK or global brands of barber products. Economic factors: Economic recession has harmed global market rapidly; people are facing huge challenges in terms of buying the luxury products. Face grooming or appearance products like pomade are facing the increased threats of the inflation and recession. Fashion industry is providing luxury products, thus, Massimo Dutti will be facing the challenges of lower economic parity among the potential customers (Goworek, 2010). Technological factors: Technology is developing rapidly among the fashion retailing, apparel and accessories of pomade type barber products. Therefore, Massimo Dutti must be able to modify their policy in meeting technical challenges. Pomade products will be requiring effective technologies in terms of providing higher comfort and safety. Legal factors: In the global fashion industry, Massimo Dutti and Inditex are one of highly popular brand names. Globalised business of the Spanish firm is helped by legal policies for safeguarding of copyright and brand protection. In addition, intellectual properties of the fashion designers are protected by the legal issues (Gibson, 2014). Environmental factors: Environmental impact is one of the major strategic factors for the global organisations. Textile and apparel fashion industry have to develop various strategies like CSR and sustainable audit in terms of consumption of power and deadly chemicals. Moreover, customers are seeking for more comfort and safety for using Massimo Dutti products. Social factors: Massimo Dutti will be enjoying the social factors as the society is promoting clean shaved man. Youths are favouring the metro sexual look or appearance to attract the opposite sex. Thus, demands of grooming and facial kits are increasing (Luther, 2001). 2.3. Customers perception towards the brand UK based male fashion customers are looking for quality apparel and grooming products. Moreover, they are highly concerned for their appearance with the use of various barber items. Thus, for the new pomade products of Massimo Dutti, they will be looking for the intense quality, comfort non-chemical usage in the products. Customers will be seeking for competitive pricing in the market. 2.4. SWOT & strategic options SWOT Analysis Strength Massimo Dutti has almost 665 stores in the year 2013. The firm has been acquired by the Spanish retailers Inditex which is one of the major retailers of world. High brand value in the global fashion and accessories market. Supply chain management of the Massimo Dutti is vertically integrating the operations. Parent company Inditex is imposing Just in Time system for developing their Value Chain Management system (Paley, 2005). Te firm is producing their garments and accessories are produced at comparatively low cost and innovative ideas are empowered to increase trendy and comfortable designs They are using feasible transportation facility to increase the speed of delivering new products among the customers Weakness Being the part of the Inditex, Massimo Dutti does not use any sort of commercial policy Massimo Dutti is also facing the issues regarding the consumer loyalty. In the barber products, segments potential customers prefer existing brands of grooming products (Gibson, 2014). Opportunity Massimo Dutti is enjoying option of 3 new global markets like the UK and many other developed countries. Barber products can be explored in these markets. Massimo Dutti is a leading clothing and apparel producers they can use their brand value in the new innovative products. Online marketing and E Retail process of Massimo Dutti will be able to explore 21 global markets (Gibson, 2014). Threats Existing fashion merchandisers and grooming kit producers are the major threats of the firms. Economic recession reducing the interest and capability of potential customers to invest in luxury. Global cosmetics and accessories market is threatening Massimo Dutti with high consumer switching (Gibson, 2014) 3. Marketing plan 3.1. Marketing strategy Development of marketing strategy for the pomade product emphasises on different attributes. Marketing managers of Massimo Dutti must be developing the marketing strategies disseminating the product features as per the consumer or market requirement. The marketing strategy must convey proper placing and communicating strategies. Marketers of Massimo Dutti should develop the commencement goals as per the UK based male requirements. Effective market survey will aid the marketers of Massimo Dutti in developing suitable marketing strategies (Ryan and Jones, 2009). UK based survey are outlining that the male grooming market respondents are using more than six barber products a day. More than 57% UK male or youth are using more than 15 products to increase the attraction or appearance. Thus, Massimo Dutti can get success for marketing different barber products. Mainly, they can use their brand name in attracting the potential 47% youths of London area (Static.inditex.com, 2015). 3.2. Aims and objectives Current market plan will be a developed with the aim of creating more profitability and sustainability for the high street brand Massimo Dutti menswear. The fashion apparel and accessories producers are producing products under the parent company Inditex. This marketing report will be providing framework of marketing new range of barber products for men. On the other hand, the project has the objectives like: To create new marketing plan for the new pomade products set for the high street brand Massimo Dutti To evaluate the requirements and demographic profiles of the UK based men customers who are interested in beauty care products. To analyse the new concept store area market in London externally and internally. To select proper marketing strategies like STP, marketing mix, budget and project timeline assessment. Therefore, this marketing plan will be helping Massimo Dutti in terms of providing the barber products for the male marketers. 3.3. Target markets In terms of developing marketing plan for the new barber products of the Massimo Dutti, target market need to be selected carefully. Proper segmentation, targeting and positioning statement is required to meet proper reach of the marketing plan (Wigley and Provelengiou, 2011). STP Segment London based male grooming market is the potential segment of the Massimo Dutti pomade products. Mainly the market is to be segmented in youth and matured male candidates Target Group Mainly the youths who are at the beginning of their career and earning fair amount of salary are the main target of the Massimo Dutti pomade products. Positioning Fashionable grooming products of Massimo Dutti must be promoted and positioned efficiently so that potential target customers are attracted. Innovative medias must be used along with some good looking models in order to attract metro sexual males. 3.4. Marketing mix 3.4.1. Product strategy Massimo Dutti needs to develop diversified pomade products to attract the customers. The firm need to use the USP, visual representation, lucrative design and badge, shopping channels designs are the key products related strategies. The firms are going to provide London market with an excellent blend of high end, innovative grooming pomade products will help at reasonable prices to the youths of the UK (Wood, 2003). The firm is going to offer the UK based youths with variety of the products line. Massimo Dutti will be offering various shampoos for different surfaces of hairs, different flavoured conditioners, multi fragranced deodorants, multi flavoured shower gels. Marketers are going to target the shaving markets with the products like shave gels, shaving creams, and aftershave lotions. In addition, hair styling products are the mostly used luxury or styling products by the youth. 3.4.2. Price strategy Massimo Dutti is required to select effective pricing strategies to attract the customers. New pomade products must be priced as per the competitive or penetrative pricing model. Penetrative pricing will be using value of new pomade products offered by the firm to the potential buyers. UK based barber products market is intensely competitive and the customers are high price sensitive (Westwood, 2011). Massimo Dutti needs to contrast the price in the market to justify their market share growth. In addition, marketers of firms must offer lucrative discounts to the trade customers in order to attract bulk purchasers. Penetrative pricing will help the firm to set the price in comparison with their competitors (Gibson, 2014). 3.4.3. Place strategy Massimo Dutti will be promoting their barber products in the High Street London area. Marketing managers of the firm planned to develop certain concept stores to reach the youth male customers with their products range. Mainly, the UK based fashion industry is highly popular and Inditex group is well popular. Thus, selecting the high street location is highly opportunistic. Moreover, the firm will be able to attract high fashion and appearance seeker male customers to sell their pomade products (Gibson, 2014). 3.4.4. Promotion strategy Massimo Dutti has to select effective promotional strategy to reach the potential customers of the new barber products. Promotional policy must include public relationship, advertising, email marketing and sampling of the products. The firm need to select the promotional channel in order to reach maximum numbers of leads in lower cost. Massimo Dutti can adopt the social media and digital marketing strategies to reach to the maximum number of youth male customers. These two mediums are the most emerging media to reach the customers. In addition, loyal customers of Inditex group are provided with the free sampling to attract them to the pomade products (Goworek, 2010). 4. Marketing action plan 4.1. Timeline (or Plan calendar) Date Activities Budget £ Notes 6-06-2015 to 15-06-2015 Pomade Product design 500 12-06-2015 to 15-07-2015 Resource evaluation 2410 Internal and external resourcing 9-07-2015 to 5-08-2015 Analyse the Opportunities in the UK based barber industry 300 1-08-2015 to 9-08-2015 UK Market scanning 425 Analysing growth and opportunity 10-08-2015 Selection of promotional channel 579 Online, social media or conventional one 15-08-2015 to 21-09-2015 External and Internal analysis of the Massimo Dutti 1089 27-09-2015 to 12-10-2015 Market size, target group and risk estimation for Massimo Dutti 700 Potentials of pomade market success 15-10-2015 Financial planning of the new product 215 Budgets and financial statement preparation 17-10-2015 to 21-10-2015 Assessing strategic planning 415 25-10-2015 Selection of target market 105 1-11-2015 Producing the grooming products 1150 Pomade production 15-11-2015 Recruitment of skilled employees 955 20-11-2015 to 23-11-2015 Prototype testing 210 27-11-2015 Start selling the barber products 75 From the above mentioned table, timeline of the marketing plan of the new pomade products of Massimo Dutti are outlined. This framework will help the marketing managers of Massimo Dutti in terms of the increasing the feasibility of getting the growth and marketability of the barber products (Dutillieux, Stokes and Willekens, 2013). 4.2. Budgets Selection of the financial resources is the most important factors of developing marketing plans for any organisation. In the current section, a forecast on the profitability of the barber products segment is done (referred to appendix). Projected income statement of Massimo Dutti barber product segment reported that the organisation has incurred cost of production of $19420 whereas; their selling price is $22000. Thus they will be able to enjoy a profit margin of 2580 (referred to appendix). Statement of forecasted profit and loss prepared for the Massimo Dutti pomade products showing a growth in the upcoming five financial years of the commencement. From the barber product segment reported with a forecast of net profit for the year 2015 of 1450, 915 in the year 2016, 1415 in the year 2017, 1204 in the year 2018 and finally, 2665 in the year 2019 (referred to appendix). 5. Evaluation Measurement policy of the Massimo Dutti barber products will be framed as per month revenue contrast basis. Marketing managers and financial managers are asked to report the improvements. In addition, this policy will provide appraisal of the marketing plan prepared for the pomade products (Luther, 2001). Massimo Dutti marketing managers and CEO is required to provide suggestions for the inefficiency or the gaps in the actions of marketing team members. After developing marketing plans for pomade product, it is crucial to assess and evaluate the marketing plan. Thus, marketing managers must be evaluating the marketing plan of Massimo Dutti (Goworek, 2010). Reference list Aagerup, U., 2011. The influence of real women in advertising on mass market fashion brand perception. Journal of Fashion Marketing and Management: An International Journal, 15(4), pp.486-502. Butler, S., 2013. Barbers make a high street comeback as men go retro and abandon salons. [online] the Guardian. Available at: [Accessed 24 April 2015]. Cangemi, M., 2014. Performing a Strategic Risk-Based Assessment: Integrating Data Analytics into the Audit Universe. EDPACS, 49(5), pp.1-6. Dutillieux, W., Stokes, D. and Willekens, M., 2013. Strategic pricing by Big 4 audit firms in private client segments. Account Finance, 53(4), pp.961-994. Gibson, R., 2014. Male Grooming Statistics: 57% Use Six Products or More - HJi. [online] HJi. Available at: [Accessed 24 April 2015]. Goworek, H., 2010. An investigation into product development processes for UK fashion retailers. Journal of Fashion Marketing and Management: An International Journal, 14(4), pp.648-662. Inditex.com, 2015. At a glance - inditex.com. [online] Available at: [Accessed 24 Apr. 2015]. Luther, W., 2001. The marketing plan. New York: AMACOM. Massimodutti.com, 2015. Massimo Dutti España. [online] Available at: [Accessed 24 Apr. 2015]. Paley, N., 2005. The managers guide to competitive marketing strategies. London: Thorogood. Ryan, D. and Jones, C., 2009. Understanding digital marketing. London: Kogan Page. Static.inditex.com, 2015a. Inditex Annual Report 2012. [online] Available at: [Accessed 24 Apr. 2015]. Static.inditex.com, 2015b. Retail formats | Massimo Dutti | Annual Report 2013 | Inditex. [online] Available at: [Accessed 24 Apr. 2015]. Westwood, J., 2011. How to write a marketing plan. London: Kogan Page. Wigley, S. and Provelengiou, A., 2011. Marketfacing strategic alliances in the fashion sector. Journal of Fashion Marketing and Management: An International Journal, 15(2), pp.141-162. Wood, M., 2003. The marketing plan. Upper Saddle River, NJ: Prentice Hall. Appendix Budgets & Investment Required: Projected income statement of the Massimo Dutti pomade product segment for the year 2014-15: Particulars Details Amount Per hour (£) Raw material 12000 120 Cost of maintenance 5000 50 Prime cost 17000 170 Office and administrative overhead Office Rent 900 9 Depreciation 40 0.4 Other general expenses 180 1.8 Total office and administrative overhead 1120 11.2 Cost of service de 18120 181.2 Selling and distribution overhead of new set up Advertisement expenses 950 9.5 Other expenses 350 3.5 Total 1300 13 Cost of service sold 19420 194.2 Selling Price 22000 220 Profit 2580 25.8 Statement of forecasted profit and loss of Massimo Dutti pomade products for the next five financial year plans: Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 Sales 22000 23500 24500 25000 26800 Direct selling cost 19420 21500 22100 22800 23100 Other production Expense 0 0 0 Total cost of sales 19420 21500 22100 22800 23100 Gross margin 2580 2000 2400 2200 3700 Gross margin% 88.27% 91.49% 90.20% 91.20% 86.19% Expenses : Depreciation 40 30 35 36 40 Rent 900 750 700 750 760 Other general expenses 180 185 150 155 165 Selling and expense 0 0 0 Total Operating Expense 1120 965 885 941 965 Profit before interest & tax 1460 1035 1515 1259 2735 Interest Expense 0 100 75 25 35 Taxes Incurred 10 20 25 30 35 Net Profit 1450 915 1415 1204 2665 Comparison of the investment with the profit earned: Year 1 2 3 4 5 Net Profit 1450 915 1415 1204 2665 Investment 1000 1000 1200 1000 1800 Read More