Marketing Report by Amy Chapman

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Belstaff “The Rockingham Collection” Marketing plan for a new 5 pocket western range By Amy Chapman 3 December 2009 Amy-Louise Chapman

IMA Year 1 Report

29/11/2009

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Contents 1. Title page 2. Contents 3. Executive summary 4. Introduction 5. Market analysis 8. Target market 9. PESTEL 10. SWOT 11. Marketing Mix 12. Advertising campaign 14. Costing 15. Conclusion

Amy-Louise Chapman

IMA Year 1 Report

29/11/2009

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Executive Summery Belstaff have been involved in a number of expansion projects over recent months and the next step for the company is to introduce a new denim line “The Rockingham collection” to the brand. 21% of all designer sales are on jeans showing that there is a market for the line. 55% of people asked say that they buy jeans to replace an existing pair, this shows that consumers are looking for classic styles, only 2% said that they buy the latest style. The main age groups purchasing and wearing jeans are the 25-34’s with growth expected in the designer market by the 45-54’s it is suggested that the range be aimed at 25-45 year old men and women. It is suggested that influence be taken from the film “Amelia” and that the advertising be featured in magazines aimed at the target age group specified and posters in flagship locations. It has also been suggested that advertising starts in the approach to the festive season as this is when footfall is at its highest. A budget of £500,000 has been given for six months of advertising. £481,000 has been spent equating to 16,026 pairs of jeans that need to be sold in the six months period.

Amy-Louise Chapman

IMA Year 1 Report

29/11/2009

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Introduction “Belstaff celebrates the modern-day global traveller. It’s elegant, in the way a person of great culture is elegant, combining traditional styles with innovative fabrics, often with a cosmopolitan touch” – Michele Malenotti (http://hypebeast.com/2008/11/vman-designer-portraits-preview/, 2009). Belstaff was founded in 1924 by Harry Grosberg in Stoke-on-Trent, England. The original line consisted of waterproof garments for men and women. Belstaff was the first company to use the now famous Waxed Cotton that made cotton completely waterproof without losing any of its breathability; with this Belstaff specialised in the creation of high technology protection for motorcyclists. Due to a downturn in 1991 the company was taken over by an Italian named Franco Malenotti but still stays true to its British roots. Belstaff remains the only custodian of the tradition of waterproof and protective motorcycle wear. A wealth of new and old knowledge, technique, fashion and design (http://www.belstaff.com, 2009). Belstaff have been involved in a number of expansion products in recent years to boost brand awareness and investing to create a lifestyle brand. The high-end sportswear company known for its edgy biker-chic clothing teamed with Audi to create the limited series A3 Cabriolet Style by Belstaff that is already on sale (Women’s Wear Daily 2009). Belstaff's revenues rose 10 percent last year to 100 million Euros, or $133.2 million at current exchange, and in the U.S., fall-winter 2009 sales climbed 30 percent, according to Malenotti. To further fuel the growth, Belstaff in January inaugurated a 10,800-square-foot showroom in New York that will serve as its U.S. base. In the same period, the firm launched an e-commerce Web site that is seeing strong sales in the U.S. especially, said Malenotti. Belstaff also inked a watch license with Lorenz and signed on with Como-based Canepa for underwear (Women’s Wear Daily 2009). Meanwhile, Belstaff continues to expand its own retail, with store openings in Prague, Bucharest and Barcelona scheduled to take place over the next five months (Women’s Wear Daily 2009). As well as all of this Belstaff have a great reputation in the costume design field and have strong Public Relations base in events, sponsorship and charities. The next step for the company is to introduce a new denim line, “The Rockingham collection” to the brand. This denim line will be able to easily integrate with the existing market segment and will act as a successful extension to the brand. The line will be classic taking influence from and acting as a perfect accompaniment to the existing range. The purpose of this report is to outline the objectives of the marketing plan, the proposal for an advertising campaign and a six-month costing of the campaign. Both primary and secondary research was conducted to identify various strategies and to confirm a market will exist for the collection.

Amy-Louise Chapman

IMA Year 1 Report

29/11/2009

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Market Analysis The percentage of adults who have not bought any designer clothing in the past year, has dramatically reduced from 59% in 2006 to 26% in 2008 (Mintel 2008a). Buying something that will last is also increasingly important, and links with the general sentiment against ‘disposable’ clothing. Women may want something different and quirky but – as one industry commentator said, ‘they don’t necessarily want to pay top dollar for it, so more affordable, quirky, interesting designer ranges will see a revival’ (Mintel 2008a). The chart below shows which designer items consumers are buying. Jeans %

T-shirt %

Sportswear

Underwear

Trousers

Jacket %

Shirt %

All

Gender: Men Women

25 17

23 14

17 9

15 10

14 10

13 9

16 4

Age: 16-24 25-34 35-44 45-54 55-64 65+

53 34 25 13 3 1

45 28 22 13 6 2

27 19 18 9 5 1

24 21 16 7 5 2

28 15 15 6 5 6

25 14 11 8 4 5

18 14 12 8 5 3

Socio-economic group: AB C1 C2 D E

20 24 24 21 13

14 22 23 20 10

11 15 16 12 6

13 14 14 12 6

13 12 14 10 8

10 12 11 13 7

12 13 11 5 3

Mintel Report: Designer Clothing - UK - August 2008 The Consumer – What They Buy Figure 40: What they buy, by gender, age and socio-economic group, April 2008 (Base: 2,021 adults aged 16+) Source: GfK NOP/Mintel

It is clear to see that the most popular purchase of designer clothing is jeans. This shows that there is a strong market for designer denim lines.

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Up to two million Brits hold on to their favourite pair of denims for up to 40 years. Many believe that, whatever the style, their jeans will eventually come back in fashion (Mintel 2009). With this in mind it is clear that there need in the market for classic, durable denim. The graph below shows the occasions that consumers are most likely to buy a new pair of jeans.

Mintel Report: Jeans ‐ UK ‐ April 2007 Attitudes and Motivations Figure 39: Occasions for Buying Jeans, January 2007 (Base: 2,000 respondents aged 16+)

More than half of the people asked said that they are most likely to buy a pair of jeans as a replacement for existing jeans. This goes to show that consumers are looking for something to last and that they are not driven by the latest fashion trend when it comes to purchasing denim jeans. The next graph shows the main considerations consumers have when purchasing a pair of jeans.

Mintel Report: Jeans ‐ UK ‐ April 2007 Attitudes and Motivations Figure 36: Things people look for in jeans, January 2007 (Base: 2,000 respondents aged 16+)

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It is clear to see that fit and comfort are the leading thing consumers look for when purchasing a pair of jeans by a large margin followed by price and then quality. This shows exactly what it is Belstaff need to do to launch a successful denim line. The product needs to be well fitting, made with quality materials and components at a reasonable price point, something that Belstaff can do exceedingly well.

Jeans - UK - April 2007 - Market Value and Forecast Figure 12: Forecast of the total jeans market, by value and volume 200712 Source: Mintel

The graph above shows the estimated growth of the total jeans market between 2007 and 2012. It shows that the jeans market is expected to grow steadily in volume and value meaning that an extension to the company via a jeans collection would be profitable for Belstaff.

Amy-Louise Chapman

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Target Market One third of consumers admit to buying designer clothing as a way of treating themselves. In keeping with the 'saving money by buying better but buying fewer' products mantra; if you are only buying one item why not go for something expensive and, hopefully, durable? Treating yourself is an act of enjoyment with perhaps an element of excess backed up by the 'I've deserved this' feeling (Mintel 2008b). Existing customers of Belstaff are people who want quality to last, buying less frequently, but investing in a more expensive item when they do spend. They have extra disposable income, seeking luxury items and believe that they get quality from branded products. They are stylish and fashion orientated with have a keen eye for quality. They want to support a company with strong charitable connections and to buy from a company that is trusted and used by celebrities-in film and reality. One specific demographic are motorcycle enthusiasts. The growth in the 25-34s is potentially positive for the designer market, as these people are keen on looking good and dressing well, and are interested in designer clothing. This group is the second most likely to think that designer clothing improves a person’s image. The growth in the 45-54s will be the key opportunity for the designer market over the next five years. They may have more disposable income and will be much ‘younger’ in mind, body and spirit. Self-treating and pampering will be important to them and they will look for great shopping experiences to go with the products they buy – so the store environment and service are crucial (Mintel 2008a). Men buy more jeans than women as they feel they are affordable due to the increase in the amount of occasions they are suitable for wear. Male consumers are looking for heritage and tradition and believe this is what they will get from a designer brand. Men buy jeans to last and the most likely age to buy is 25-35 (Mintel 2008a). The target market for this denim line should be fashion lead men and women aged 25-45 looking for practical, quality products and also motorcycle enthusiasts aged 25+ not just fashion lead but looking for practical, quality products with a celebrity following such as George Clooney and Ewan McGregor therefore giving confidence that they are getting practical, quality products. This will integrate the new products with existing ones meaning they will appeal to the existing consumer and also appeal to new ones. When primary research with this target group was conducted is was made very clear what they are looking for in a pair of jeans the main considerations are fit, quality and price something also noted in secondary research. The consumers asked were willing to pay more to ensure they were getting quality. They were not looking to pay the expected prices for trend lead designs but were looking for something classic that will last many seasons (see appendix 1 for full results).

Amy-Louise Chapman

IMA Year 1 Report

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PESTEL Political • Business-government relations • Lobbyists hired to specialise in legislation • Trade barriers removed meaning political influence and trade protectionism is minimal • World trade organisation Economics • Young people spend more than older • Women spend two times more than men • Credit had been so widely available that spending on cards etc seemed normal as was rising debt but since the credit crunch spending has been put on hold • Housing market there has been great lack of confidence in the housing market of late but there are signs that it is improving • Unemployment has been a great concern since the start of the recession but figures show that the rate of unemployment growth in the UK is slowing • Both these factors greatly affect consumer confidence so it is a great sign that things are slowly getting better • Price inflation- has fallen to a 5 year low which suggests that the economy is recovering due to retailer price cuts • Recession= less spending and more saving • Exchange rate- sterling is down meaning we do not get as much for our money against the euro and dollar Social • Rise in number of DINKY’s (double income no kids yet) = less big cars, houses and childcare costs which drives demand for luxury personal goods • More working women, more people living at home until 30’s, marrying later with more chance of divorce, more single person households and same sex relationships all leading to setting up home later = less children and an aging population • Aging population- The “grey pound” 65 years+ make up 20% of the population The average spend for clothes amongst the 50-59 age group is £962 pa compared to £811 pa with under 30’s • Greater divide between the rich and poor • Ethical concerns affect how consumers buy they often want to be reassured that cheap or “slave” labour hasn’t been used in production • Homosexual men (the pink market) spend two times more on their appearance, have greater brand loyalty and are more likely to adopt new technologies. Technological • Energy and transportation • Advances in energy saving technology • Increase in home shopping via digital TV and internet • Increase in email/web based marketing • More efficient direct and database marketing • Virtual flagship stores

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Environmental • Pollution- consumers want pollution levels to be lower and this greatly affects what they chose to purchase • Organisations and interest groups monitor the supply chain • Must comply with regulations on packaging • Sustainable development meets the needs of humans whilst preserving the environment • Carbon emissions should be kept to a low • Companies should take advantage of for example haulage companies using hybrid lorries Legal • • • • • • • •

Labelling Patents Testing Controls on sale, marketing and promotion of fashion products Employment Law EU Law Consumer Law Trading Standards

SWOT Strengths • Leaders in outerwear garments • Good reputation for designs and use of materials • Great image due to use of costume design and celebrity following • Multi-national company- UK and Italy • Number of facilities including stores and showrooms • Expertise in intelligent textiles, motorcycle wear and outerwear • Available at a large number of websites • High penetration in the market • Dressing styles are much more casual

Weaknesses • Limited number of stores in England • Reputation for outerwear more than casual clothing i.e. denim wear • Brands focusing on trends must innovate regularly to ensure they do not disappear when a trend does

Opportunities • Trend in intelligent textiles and fabrics that Belstaff are known for • Success in previous expansion projects so offers great opportunities for new projects • Despite bad economic conditions sales in luxury and jean sectors have been maintained

Threats • Huge competition for existing jean ranges and brands • Economic conditions still not at the high that they were at end of 2007 • No stability in economy

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Marketing Mix Product • • • • • • • • •

Clean look jeans Classic style Black and indigo shades Straight, Regular and Skinny fits Influence taken from and a perfect accompaniment to the existing range Strong use of company name and logo Company colours-Black and Gold-as seen in Phoenix logo A quality, long-lasting product Full size range For women-24-32 leg lengths 30, 32, 34 For men-28-38 leg lengths 32,34,36 -to ensure best fit

Price • •

Should be able to save up for product and know getting value for money In order to compete with the existing brands (such as levis’ and All Saints) products should be priced at £100-£200

Place • • • •

Own stores and showrooms Department stores-Harrods, Selfridges, Liberty, Harvey Nichols Own website-www.belstaff.com Third party websites-such as www.net-a-porter.com/belstaff, www.yoox.com/belstaff, and motorcycle websites where Belstaff is currently stocked

Promotion • • • • •

Web-Company website, third party websites Editorial magazines-Weekly-Grazia Monthly-Elle, In-style, Vogue, Harpers Bazaar and also motorcycle magazines Posters Movies and music videos-Belstaff are known for their costume design credentials and no doubt the Denim line will be able to enhance this Celebrity endorsement-George Clooney is current spokes model and Kate Moss has previously been used

Unique selling points • High quality, High technology fabric • Clean, classic style • Strong use of company logo

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Advertising Campaign Fig.1.

Fig.2.

Fig.3.

Fig.6.

Fig.4.

Fig.5.

Fig.7.

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Belstaff is known for its British heritage and 85 years of experience and this is one of the main things consumers value about the brand, it is suggested that this should be a fundamental part of the advertising campaign for this line. Nostalgia is a strong driving force with consumers especially in times of economic crisis where people want to buy from brands they can trust. It should be shown in the advertising that Belstaff have many years of experience in creating quality products that are trusted by many; including celebrities. Belstaff has recently been involved in the costume design for the film Amelia based on the life of Amelia Earhart. This is an ideal way to introduce Belstaff’s history using nostalgic imagery. Above are a few ideas for advertising, the inspiration being Amelia Earhart (see figures 4-7). There are also some examples of previous Belstaff campaigns that have a similar theme in black and white with “retro” styling (see figures 2 and 3). The focus needs to be on the product and the best way to do this is with a very simple location for the photography (see figure 1). It is suggested that advertising is featured in publications that are aimed at the target market and also underground stair, lift and escalator panels in London where the flagship store for the company is based as this is what target market answered they responded to most (see appendix 1 for full results). It is also suggested that some new media be used especially with the use of banners on relevant websites such as Vogue.com. Another suggestion is that further celebrity endorsement is used as this has worked well for Belstaff in the past. It is also important to note that there should be some promotional activity via blogs, social networking sites and also via gratis product placement. Belstaff products are regularly used by celebrities and so gain publicity this way also via costume design projects in both film and music.

Shown above is the footfall index (RetailWeek.co.uk). The peak time for footfall within shops as expected begins mid‐November (around week 45) preparing for Christmas. This should be considered when launching the new line. Advertising should start to assert the brand before the higher footfall starts. September to October would be a good time as the season changes then and new autumn / winter lines would be in store. Amy-Louise Chapman

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Costing Below is a costing for this advertising campaign based on a six month period.

Advertising type

Total cost

Cost per Issue

Underground Stair, Corridor, Lift and Escalator panels Elle Elle Collections Vogue Instyle Gay Times GQ GQ Style Fast Bikes Vogue.com banner

£9,900 £13,125 £2,500 £23,100 £20,340 £2,136 £15,400 £7,300 £2,000 35 CPM

Further Online banner

6 Months 6 Months 1 Bi-annual 6 Months 3 Months 6 Months 6 Months 1 Bi-annual 6 Months 1 Month

£59,400 £78,750 £2,500 £138,600 £61,020 £12,816 £92,400 £7,300 £12,000 £8,000

1 Month

£8,000 £480,786

Total Cost

Selling Price of jeans

Profit Margin on jeans

Number of jeans to be sold to cover cost of advertising

£480,786

£150

20% of £150 = £30

16,026 over 6 Months = 616 per week

Costing information taken from www.bradinsight.com and www.cbsoutdoor.co.uk

Conclusion This report has shown that there is a market for classic designer jeans that will be durable and last many fashion seasons and that an extension to the Belstaff brand via a denim line will be profitable, sales of jeans continues to grow despite the recession. A target market of 25-45 year old men and women have been identified and it has been confirmed that the line will integrate with existing consumers of the Belstaff brand will also introduce new ones. The report has outlined ideas for the advertising campaign via nostalgic imagery that will appeal to consumers during this time of economic crisis and that advertising should be demonstrated via magazines that will appeal to the target market and also via posters in flagship locations. This report also includes a costing for a six month period for this campaign, a budget of £500,000 was used and 16,026 pairs of jeans have to be sold in the six months to justify the cost of the campaign. It has also been suggested that the advertising for the line be introduced in September to October when footfall is at its highest levels.

Amy-Louise Chapman

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Appendix 1 Question asked

Name: Samantha Campbell, student

Age

Do you keep up to date with fashion?

Yes

How do you do so?

Read fashion magazines and follow celebrities

Do you wear jeans?

Always

Why do you wear them?

Can be dressed up or down- Versatile

When do you buy jeans?

For different occasions, nights out etc

What are you favourite brands? And why?

Topshop, Diesel, Replay

What is important when you buy jeans?

Fit and Price

What about the fit?

Most important

Quality?

Key Trends?

Very important Second most important factor if jeans look good price is less of an issue Rather buy what suits, latest trends don't always suit

Which is most important to you?

Fit

When do you wear jeans?

All the time dressed up or down

How many pairs do you have? How much would you spend on the "right" pair of jeans?

6 or 7

Price?

Would you spend more to get quality?

£200 maximum Yes, I have purchased cheaper pairs that have lost shape quickly, which is more expensive in the long run

What is your impression of Belstaff?

British, strong heritage, Celebrity following

Would you purchase from Belstaff? Can you name one male and female celebrity that comes to mind when you think of Belstaff? What type of advertising most relates to you? What are your first impressions of the jeans range?

Definitely

Does the range appeal to you?

Yes Would appeal to men and women, men will be intrigued by technological fabrics

Kate Moss and Ewan McGregor Usually a magazine Fits with the brand image

Why? What do you like about the brand?

Practical, clean lines, fits with motorcycle image The darker denim, the intelligent materials and the stretch for the fit

What do you like about the design ideas? Would you buy a pair of Belstaff jeans? What price would you be willing to pay for a pair of Belstaff jeans? Would you save up for them if you could not afford them?

Amy-Louise Chapman

Yes £100-£200 is reasonable Yes

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Question asked

Name: Stefanie Oakley, student

Age

Do you keep up to date with fashion?

Yes

How do you do so?

Magazines, websites, word of mouth

Do you wear jeans?

Yes

Why do you wear them?

The go with everything, comfortable and versatile

When do you buy jeans?

Once a year

What are you favourite brands? And why?

Diesel and Miss Sixty

What is important when you buy jeans?

Fit

What about the fit?

Comfortable but snug, makes bum/legs look good

Quality? Price?

Needs to be of good quality Doesn't matter too much if I love something I will find a way

Key Trends?

Somewhat, I usually stick to styles that suit

Which is most important to you?

Fit

When do you wear jeans?

Day or night

How many pairs do you have? How much would you spend on the "right" pair of jeans?

Would you spend more to get quality?

Yes

What is your impression of Belstaff?

Rebel like, attitude, adventurous, free spirited

Yes

Does the range appeal to you?

Yes

Why?

Same as above

What do you like about the brand?

Has character, stands out The style, fitted, straight cut, high quality, use of black and gold

Amy-Louise Chapman

up to ÂŁ300

Brad Pitt, Erin Wasson Magazines, word of mouth Exciting, strong willed women should wear, attitude, live life their way

Yes ÂŁ200 Yes or use credit

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Bibliography “Aviator style from “Amelia” lands on runways, too” (2009) Daily News Egypt [Online]. Available at http://www.lexisnexis.com/uk/nexis (Accessed 26 November 2009) Easey, M. (2009) Fashion Marketing 3rd Edition. Chichester: Wiley-Blackwell. Edelson, S. (2009) “Belstaff planning to rev up U.S. business” Women’s Wear Daily [Online] Available at: http://www.lexisnexis.com/uk/nexis (Accessed 26 November 2009) Hines, T and Bruce, M. (2007) Fashion Marketing Contemporary Issues 2nd Edition. Oxford: Butterworth-Heinemann Jackson, T and Shaw, D. (2009) Mastering Fashion Marketing. Basingstoke: Palgrave Jefkins, F. (2000) Advertising 4th Edition. Harlow: Pearson Education Limited, Prentice Hall Jobbler, D. (2007) Principles and Practice of Marketing 5th Edition. Maidenhead: McGraw-Hill Kotler, P, et al. (2008) Principles of Marketing 5th Edition. Harlow: Pearson Education Limited, Prentice Hall White, R. (2000) Advertising 4th Edition. Maidenhead: McGraw-Hill

References “Amelia” *Online Image+ Available at: chicago.timeout.com/search/articles/category=... (Accessed 3 December 2009) (See Fig.6.)

“Amelia Earhart” *Online Image+ Available at: www.cdnn.info/industry/i041218/i041218.html (Accessed 3 December 2009) (See Fig.4.) “Amelia Earhart #1” [Online Image] Available at: webs.rps205.com/.../ssandvoc/WondrousWomen.html (Accessed 3 December 2009) (See Fig.5.) “Amelia Film” [Online Image] Available at: www.duttondirect.com/.../Amelia-Film.aspx (Accessed 3 December 2009) (See Fig.7.)

Belstaff Company Website- Available at: http://www.belstaff.com/index.php?option=com_content&task=view&id=142&itemid=374 (Accessed 3 December 2009) Bradinsight.com- Available at: http://www.bradinsight.com/brad/ (Accessed 3 December 2009) CBS Outdoor- Available at: http://www.cbsoutdoor.co.uk/Global/UK/documents/rate_cards/Underground_rate_card.pdf (Accessed 3 December 2009)

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Ilari, A. (2009) “Fashion brand increase exposure to battle downturn”. Women’s Wear Daily [Online]. Available at: http://www.lexisnexis.com/uk/nexis (Accessed 3 December 2009) “Loft_before.jpg” *Online Image+ Available at: www.goldbergarts.com/id49.html (Accessed 3 December 2009) (See Fig.1.)

Mintel 2007- Jeans- UK- April (2007) Mintel [Online] Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=220121 (Accessed 3 December 2009) Mintel 2008a- Designer Clothing- UK- August (2008) Mintel [Online] Available at: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=227736 (Accessed 3 December 2009) Mintel 2008b- Designer Clothing- UK- August (2008) “Will designer clothing benefit from the credit crunch?” Mintel [Online] Available at: http://academic.mintel.com/sinatra/oxygen (Accessed 3 December 2009) Mintel 2009- Daily Mail. (2009) “2m Brits hold on to their favourite pair of jeans up to 40 years” Mintel [Online]. Available at http://academic.mintel.com/sinatra/oxygen (Accessed 3 December 2009) “Steven Meisel for Belstaff FW08” [Online Image] Available at: models.com/feed/?p=437 (Accessed 3 December) (See Fig.3.)

VMAN Designer Portraits Preview- Available at: http://hypebeast.com/2008/11/vman-designer-portraits-preview/ (Accessed 3 December 2009) Word count: 3,294

Amy-Louise Chapman

IMA Year 1 Report

29/11/2009