LOT201 2010/ 2011 Marketing Plan Developed by Corey J. Sao
Table of contents Mission Statement Objective Situation Analysis Strength Weaknesses Opportunities Threats Competitive Advantage Strategic Direction Market Segmentation Marketing Mix Product Price Distribution Promotional Mix Advertising Public Relations Sales Promotion Personal Selling Budget Timing Evaluation
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Julie Bent, Artist, Head Designer and Founder of LOT 201, and Husband/Business Partner Max Bent are out to put Baltimore –and their signature line– on the fashion map. Better yet, she might just draw a new map altogether. Julie’s launching her line with an innovative, DIY spirit and a smart, consumer-conscious awareness that glows with a true artist’s creative sensibility. She’s motivated to create fashion in a community where noncommercial art is celebrated and where do-it-yourself is a mantra, not an insult.
A. Mission Statement LOT 201 is an independently owned and operated womenâ€™s apparel label committed to providing garments that are one of a kind and highly exclusive. Choosing to implement stellar designs and sound construction, the fashionable consumer can now take pride in purchasing clothes that have been hand-crafted using top-quality construction techniques that fit into their moral fiber. B. Objective It is LOT 201â€™s objective to attain the revenue goal of $15,680 by Spring, 2011.
C. Situation Analysis Internal Strengths - Employees have extensive knowledge in the areas of accounting, inventory, and communications. - Education and training specific to mission statement: ‘Old Industry’ techniques of garment construction at BCCC as well as a background in fine arts at Alfred University (BFA, 2000, sculpture, digital design) - Fully in-house production cuts down on overhead costs. Internal Weaknesses - Limited investment capital. - Limited staff. - As a couple, personal goals may overshadow business goals
External Opportunities - Online shopping is more popular now than ever. - Online businesses compete on a more even playing field. - Large numbers of consumers seek products with organic features. - Growing Baltimore fashion culture. - Current recession has driven trend towards “educated” consumers who prefer to know more about a product before making a purchase. External Threats - Mainstream entrance into eco-friendly garment market threatens to siphon off of potential consumer base. - Fashion conscious, well made clothing labels that have eco-friendly qualities, with a strong online presence already exist. - There is only a small market of affluent shoppers in Baltimore, MD Page4
D. Competitive Advantage LOT 201 has a niche competitive advantage. LOT201 is also serving a single segment of the market with exclusive apparel. E. Strategic Direction Product Development LOT201’s focus has changed and the new line needs to be created for target market. Formerly LOT201’s focus was hand-dyed and printed garments, now LOT201 has shifted to hand made original pieces that are offered in limited edition with a wider variety of garments. F. Marketing Strategy: Market Segmentation LOT201 studied the lifestyles of their target consumer, LOT201 observed their beliefs and opinions, along with the way they have chosen to live their life. According to the SRI Business and Intelligence: Values, Attitudes, and Lifestyles Survey my target market falls into the VALS category of the Innovators. Our target consumers consist of solely tech-savvy women ages 26-35. LOT201’s target market cares a lot about where she shops and what she buys. She also feels that knowing more about her organizations greatly impacts whether or not she shopped at a location. Our target does not care if clothing items are “eco-friendly”, but they do understand its benefit. To effectively reach our target consumer LOT 201 will only focus on one market in order to create a mutually satisfying exchange. In order to do this LOT 201 will be using a concentrated targeting strategy.
G. Marketing Mix 1. Product LOT201, happens to be currently in its growth stage of the product life cycle and provides clothing that is exclusive, handmade, distinctive, one of a kind, and truly exclusive. LOT201 is located in Baltimore, Maryland. The company was founded by Julie bent. Julie Bent hand makes each LOT201 piece. Julie also keeps the brand very exclusive by never making the same thing twice. Aside form using eco friendly fabrics in every single creation Julie also incorporates the use of organic dyes from the abbey color facility which happens to be located in Philadelphia. Julie Bentâ€™s expertise is rooted in design and production but is also involved with managerial decision-making alongside husband and business partner Max Bent. The two orchestrate the marketing tasksLOT201. LOT201 has been led buy this husband and wife duo for 5 years and plans to be around for many more. LOT201 products are warranted based on their intended use: 30 Days from Date of Purchase. LOT201â€™s warranty will apply when the product is used for the purpose it is intend, under normal conditions. The warranty will not apply to damages caused by typical wear and tear over time, unreasonable use accidents of neglect. LOT201 will repair or replace any damaged LOT201 garments. Products repaired or replaced under warranty will be returned free of charge. Along with detailed product features, prices, distributions, and functions it is detrimental to the success of LOT201 that the following is kept in perspective the product packaging. Protections, promotions, recycle ability, and storage ability. Page6
2. Pricing Sample: cost $60 x 2 = $120 wholesale, $120 x 2 = retail $240 LOT201 will maintain status quo pricing and maximize the profit margin. To meet the objective of profit maximization LOT201 will use skim pricing to skim the cream of the top of the market by setting a price high enough to sell to those who are affluent and less price sensitive. 3. Distribution LOT201.com, (50/50 consignment), Direct to Customer sales. When LOT 201 keeps what the consumers wants in mind and makes a decision as to how they would like their products to be introduced and distributed, LOT 201 must look towards a strategic alliance with Shine Collective to execute a selective distribution strategy.
H. Promotional Mix: 1. Advertising Plan Objectives: Advertising will convince The Female Screen Shopper that LOT 201 is not only fashionable and well constructed, but also an exclusive clothing line that is the must have for the creative and fashion-forward woman. -Increases sales online by 4% within the first month of implementation. Strategy: We will educate consumers about the designer, Julie Bent, the construction techniques that make her line unique and the value of owning these limited edition designs. Tactics: LOT 201 will connect with reputable fashion publications, both print and digital that are in-line with LOT 201â€˜s mission. Express City Paper Daily Candy Ready Made. Facebook BurdaStyle Baltimore Magazine Pieces will focus on the key attributes of the LOT201 brand which include the designer, product, process, and where to go for more information or purchase. Evaluation: I will base success of my advertising plan with a quarterly assessment of online and in store sales. Questionnaires to establish how and where they have heard about or seen us advertised; we will also follow up by obtaining e-mail addressees and other contact information.
2. Public Relations Plan Objectives: Public relations will establish LOT201 as a clothing line that cares about the Baltimore community and is dedicated to both creating designs and incorporating ethical business practices. Increase sales by 3% by the first nine months implementation. Strategy: LOT201 will participate in monthly events that are located in or around the Baltimore area. Tactics: Host televised networking opportunities i.e. “The Doodle Chronicles” or “ The Studio” for our target to interact and fortify the loyalty to the LOT201 brand. Representatives of LOT201 will be assigned specific dates when they will host fundamental design classes/workshops/interviews at select locations, Evaluation: Asses the number of web site hits, e-mail subscriptions, address book count (e-mail), online sales, boutique sales and returning customers.
3. Sales Promotion Objectives: Sales promotions will encourage consumers to purchase LOT201â€™s new garments directly the LOT201â€™s store website. Increase e-newsletter subscribers by 10% in the first 6 months of implementation. Increase sales by 4% within the first 3 months of implementation Strategy: LOT201 will offer premiums on limited edition clothing items for a limited amount of time for online customers only. Tactics: LOT201 will offer free shipping and handling on exclusive garments that are available online for a limited time only. Evaluation: Review the number of web site hits, e-mail subscriptions, address book count (e-mail), online sales and boutique sales.
4. Personal Selling Objective: Showcase LOT201 products and build long-term relationships with consumers, and generate immediate sales. Increase sales by 25% within the first year of implementation. Strategy: LOT201 will create opportunities for face-to-face promotions and sales. Tactics: LOT201 will book Trunk Shows in the target area as a way to directly reach customers. This will allow potential clients to network directly with Julie, see latest designs, try-on garments, and purchase clothing. Evaluation: By quarter two 2010, LOT201 will review the number of web site hits, e-mail subscriptions, address book count (e-mail), online sales and boutique sales. Page13
Remainder advertising will be executed through print, web, and radio, ranging from 25%-75% off of the set original price.
Public relations cost will consist of pricing of renting the venues, and other variable cost.
The budgeting for sales promotion will be based of the disposable income after cost of PR Plan and Advertising Plan have been evaluated
Evaluation will determine the effectiveness of advertising efforts through electronic surveys and other quantitative research methods. Evaluation will also present new concepts through qualitative research focus groups. LOT201 will also track awareness and communication of messages through a digital survey.