Strategic Marketing Plan of Splash Company - Case Study Example

Running Head: STRATEGIC MARKETING PLAN Strategic Marketing Plan Name Course Date Table of Contents Running Head: STRATEGIC MARKETING PLAN 1 Strategic Marketing Plan 1 Name 1 Course 1 Date 1 Table of Contents 2 Developing a Strategic Marketing Plan 4 Situational Analysis 4 Market Summary 5 Target Markets 5 Market Demographics 5 Market Needs 6 Market Trends 7 Marketing Mix 7 Distribution Strategy 8 Advertising Strategy 8 Pricing Strategy 9 SWOT Analysis 10 Strengths 10 Weaknesses 10 Opportunities 10 Threats 11 Mission Statement 11 Marketing Objectives 11 Non-financial objectives 12 Competition 12 Breakeven point analysis 13 Conclusion 14 References 14 Executive Summary Splash Company is a clothing retailer within Dubai, UAE. The company was established in 1993 and with time it has grown tremendously to have more than 140 stores and 50 brand stores even in foreign countries. Splash was set up when there was a broad gap within clothing industry and there were no well-established brands as well as loyal customer base in clothing industry. Initially, the company was trading through merchandise and did not have customization of the customer offering. With the companies, strategic marketing of its product, the company started differentiating through selling products that were carefully chosen to suit the style and need preferences of the customers. In 2004, Splash gained a higher customer base due to its differentiated products and remarkable brand campaign designs which have provided the company’s clothing products with value. Developing a Strategic Marketing Plan Situational Analysis The marketing environment for Splash represents great opportunities and has a few challenges that the company believes can be met effectively. Within 2004, the company went through a complete identity change whereby it changed its tag-line and refurbished it logo. Similarly, in 2006, the company changed its marketing campaign from the earlier product centric campaign to a very fashionable and spectacular marketing campaign. Splash has also introduced a ‘barcode’ motif within all its communication and stores and has constantly developed its product. Additionally, Splash has a marketing campaign dubbed “Eye on Design” which resulted to a significant leap within the brand’s history. This brand campaign statement resulted to an evolution within the company’s entire philosophy and since then Splash has led in 3D campaign, the first outdoor campaign for its products. Consequently, the company has developed remarkable strengths and there are numerous opportunities that have by. Its devoted funders, the increasing number of brand-loyal clients as well as efficient company management puts Splash is a good position to develop and grow. As the firm is in the final stages of developed new products and increased online sales, the firm’s management should be aware of competitors who end up duplicating the products. Nonetheless, Splash is dedicated to establishing strong relationships with customers, retailers, in addition to suppliers as this has helped the company a lot in counteracting its competitors (France, 2005). Market Summary Splash Company captures the essence of fashion in all its products. The company’s brand connects with the customers via collection, emotion and attitude and therefore it has carved a niche in fashion industry as being the most successful local textile firm within the fashion industry. Additionally, the market environment is well suited for the company (Bellis, 2010). Target Markets The target markets for Splash products is men and women aged between 25-40 years and teenagers and it offers fashion clothing and accessories to suit the lifestyle needs of the customers. Market Analysis Potential customers Growth 1st Year 2nd Year 3rd Year 4th Year 5th Year CAGR Men & Women aged 25-40 years, Teenagers 5% 150,000 156,750 163,804 171,175 178,878 4.50% Other 0% 0 0 0 0 0 0 Total 4.50% 150,000 156,750 163,804 171,175 178,878 4.50% Market Demographics The profile for Splash’s customer include of geographic and demographic factors: Demographics The active customers represent a demographic group of properly educated, employed and successful people and teenagers coming from successful families. Household income of the active customers in general is above average. In spite of their good incomes, these customers are price conscious and constantly seek value any time they are making a purchase. Irrespective of their age (if they are teenagers, or are within the upper or the lower end of the target range), their lifestyle is active. They are somehow class oriented, although not excessively so. They like associating with high-quality products but on the other hand, they are not ready to pay premium price for a given brand (France, 2005). Geographic Current Splash customers tend to live within UAE, and overseas countries within the Middle East, India, Pakistan, along with Tanzania. Nonetheless, one future objective of Splash is to target consumers within United States. Splash has identified its consumers as active individuals aged between 25 to 40 years and teenagers. Nonetheless, this does not imply that a person who is aged 50 years and above and prefers to dress trendy and stylish attires is not a potential customer. Through pinpointing where existing consumers reside, Splash can make plans for growth into new outlets (Westwood 2009). Market Needs The clothing needs of people change with climate. Therefore, Splash will initially target the changing climate needs of the consumers and supply its products. Additionally, the clothing needs also change with increasing income. As a result, Splash will also target segments of high income business market. As Splash grows, it will consider unified products for equity (Bellis, 2010). Market Trends The industry is ideal for Splash because the company reveled that the stock market in clothing industry has been slowing within the past one year and thus there is a likelihood of taking some of the glitter off the clothing business market. This will enable Splash to set up a market presence and consequently make preparations to grow within the next period of investment. Market Forecast Marketing Mix The proposed marketing mix for Splash includes: Product Strategy At present, Splash offers a variety of high-quality clothing. All its clothing has the company’s logo. Splash has conducted research on the most loved and popular colors/designs for its products. Within the next 5 years, the company has plans of expanding its product line to encompass kids wear and accessories. Attractive logos can be added to the attires and at the start there can be five new logos and have additional later. Lastly, new logos and designs can be introduced and the old ones replaced. This strategy will maintain a fresh concept and thus it will not become diluted with too many variations. Secondly, Splash plans expanding its product line through offering lightweight bags, coming in varying styles and colors. Additionally, the items would be trendy and they will all have the Splash logo (William 2009). Distribution Strategy At present, Splash is marketed through its local and international markets but has not distributed its products through apparel chains. Within the next two years, Splash is aiming at expanding distribution to retail specialty shops worldwide. Additionally, Splash has plans of expanding internet sales through providing customized product line through online only and therefore this will differentiate between internet offers and specialty ship offerings (William 2009). Advertising Strategy Communication to the customers, suppliers and retailers regarding its products is conducted in various means. Any information regarding Splash as a company and its products is readily available online, and the company also sends e-mails to them. In addition, the company’s advertisement efforts are aimed at differentiating its products from the products of its rivals. Splash heavily depends on individual contact with its key retailers to find out the products within their stores. The contacts are achieved through the phones or e-mails and assists in conveying Splash’s corporate messages, illustrates the distinctiveness of the company’s products and develops and maintains relationships (Britton, 2008). Sales representatives of Splash pay visits to all its stores at least two times annually and in-store training regarding its products for new retailers are offered. As distribution enlarges, Splash will adjust to meet increased demand through recruiting more sales personnel to ensure that its stores get more frequent visits (William 2009). Pricing Strategy Basically, Splash prices its products basing on competition. The company does not concentrated on setting high prices to demonstrate lavishness or status and also it does not try to accomplish the objectives of counterbalancing low prices through selling more quantities of its products. Rather, Splash practices value pricing in order to make customers more comfortable when buying new attires to replace the old, even though it is merely because they like a new design. Additionally, the pricing strategy facilitates most of its customers to but the company’s products, in occasions such as graduations, weddings, etc. The planned kids wear will sell for $3 to $5 less as compared to the normal Splash logo clothing. Still, pricing of the bags will be done competitively, where a good value against competition will be offered (William 2009). SWOT Analysis Strengths The management of Splash understands the target market and product and the marketing personnel have a wide background in marketing and communications Splash has achieved distribution within numerous markets with fast acceptance by the audience The company achieves high annual returns and thus has a high potential of growing and expanding Splash works with only one manufacturer and this ensures maximum quality control of its products Well-skilled and dedicated workers The company’s products are well-established and popular brands Weaknesses Splash has a just one manufacturer and this limits its ability of expanding Compared to the size of the company, Splash has relatively few workers. Opportunities Splash’s loyal customers have a high likelihood of buying its new products There is a gap in clothing market and the gap can be filled with new clothing products, such as accessories and kid’s wear A probability of repeat business Threats Future potential competition from upcoming clothing companies There are many clothing business worldwide (William 2009). Mission Statement Splash aims at being the leading producer and marketer in clothing fashion industry worldwide. Splash wasn’t to inspire individuals to wear trendy and comfortable clothing and have a feel of class while doing so, at affordable prices. Splash strives to devise programs for preservation of relaxing lifestyle. Marketing Objectives The marketing objectives will involve both financial and non-financial objectives Financial objectives Acquire funding to expand manufacturing ability, increase distribution as well as set up four new product lines Increase profits by at least 30% annually Donate about $50,000 annually to conservation and charity organizations as part of social responsibility by the company. Non-financial objectives Introduce four new product lines, whereby there will be modified clothing and lightweight bags Get into new geographic markets and this will include United States Creates successful online customer care websites, where the customers, retailers as well as the suppliers can communicate easily with the company. This will assist in maintaining strong relationship with retailers, customers, as well as the suppliers and will also increase customer satisfaction because their complaints will be tackled promptly Create its own conservation program whose purpose will be assisting the society to raise funds to buy open space Competition Clothing industry has many entries. There are companies such as Ragged Mountain, Blue Sky and Timberland present competition to Splash Company. However, Splash is likely to thrive in the midst of the competition because customers are increasingly looking for ways to appease themselves with classy clothing and also customers are becoming more confident with economy and thus are in a position and have capacity to spend more (Samoff, 2008). Marketing Forecast and budget Jan Feb March April May June Total Advertising $40, 000 $30, 000 $30, 000 $30, 000 $30, 000 $20, 000 $180,000 Promotions $30, 000 $25, 000 $20, 000 $15, 000 $15, 000 $15, 000 $120,000 PR $15, 000 $15, 000 $10, 000 $10, 000 $10, 000 $10, 000 $70,000 Service $30, 000 $20, 000 $15, 000 $15, 000 $15, 000 $10, 000 $105,000 Shows $30, 000 $20, 000 $15, 000 $15, 000 $10, 000 $10, 000 $100,000 Training $20, 000 $15, 000 $15, 000 $10, 000 $10, 000 $10, 000 $80,000 Catalogs $15, 000 $10, 000 $10, 000 $10, 000 $10, 000 $10, 000 $65,000 Others $40, 000 $30, 000 $25, 000 $15, 000 $15, 000 $15, 000 $140,000 Marketing expenses $220,000 $165,000 $130,000 $205,000 $115,000 $100,000 $935,000 Total Sales $180,000 $205,000 $210,000 $220,000 $200,000 $200,000 $1,215,000 Breakeven point analysis Break even point is the point at which the difference between costs or expenses and revenue are equal. This implies that there is neither a net loss nor a net gain. The break even point of the marketing budget will be at the second month of the new products’ launch; February. At this point the total sales of the new products in the new market will cover the costs of the marketing budget (Gruttadaro 2010). Break-even Analysis Graph Conclusion The marketing environment for Splash has many opportunities even though there are some challenges. The products of the company captures fashion and the target market constitutes of teenagers and men and women aged between 25 to 40 years. A SWOT analysis shows that the company has many opportunities which include expansion and the company’s strengths include well-skilled workers and effective management. However, the company faces some threats which include emerging clothing businesses which pose some competition and the main weakness is that Splash only has one manufacturer which limits its ability of expanding. References Bellis, M. (2010). Marketing Plan for the Independent Inventor.Retrieved November 16, 2010 from . Britton, N.J. (2008). "Boots Treads Carefully," Marketing, May 26, p. 22. France, M. (2005).Business for Beginners: From Research And Business Plans to Marketing, California: Sourcebooks. Gruttadaro, D, 2010. The importance of Return on Investment, Retrieved December 05, 2012 from . Samoff, J. (2008). Institutionalizing international influence. New York : Rowman & Littlefield publishers. Westwood, J., 2009, The marketing plan: a step-by-step guide, Kogan Page Publishers, New Jersey. William, L., 2009, The marketing plan: how to prepare and implement it, AMACOM Div American Mgmt Assn, Sydney. Read More