Savannah College of Art and Design
PRODUCT PROPOSAL v New Convertible Jumpsuit for BCBGMAXAZRIA v
Skyler Convertible Jumpsuit.
v Jumpsuits are versatile for any occasion.
v Same concept in 3 distinct forms. v Jumpsuit v Romper v Skort
REASONS v Some women aren’t sure about her outfits for occasions
v They like to wear new clothes
v Gives them the opportunity to style the same outfit different ways.
v Add’s versatility to the BCBGMAXAZRIA LINE
COMPANY INFORMATION v Aimed towards sophisticated women v Strives for excellence and innovation v “Bon Chic, Bon Genre” = Good Style, Good Attitude v Loyal following of celebrities v Worldwide presence v More than 570 boutiques worldwide v Most boutiques have Ready-To-Wear (RTW) v Collections in specialty stores v
In-store shops in Department stores
MARKET & INDUSTRY ANALYSIS v Generates more than $1 billion in sales annually v Revamped and strengthened capital structure. v The Company received a $135 million cash infusion from investors. restructured its debt and strengthened its balance sheet, making BCBG Max Azria Group ideally positioned for future growth.
PEST ANALYSIS: POLITICAL • Availability of resources and materials depending on the political stability of the country where they manufacture and distribute. • With the recent concerns over environmental protections, BCBG MAXAZRIA has to take in regard the federal laws.
PEST ANALYSIS: ECONOMIC v International economic recessions v Economic recession affects buying habits v Higher unrestricted spending through credit card use v The reduction in trade barriers and manufacturing costs allows for economic integration and globalization
PEST ANALYSIS: SOCIAL/TECHNOLOGICAL Social/Cultural v Consumer like longer lasting products. v Most tend to be hesitant when buying because of the prices. Technological: v BCBG’s software has allowed increased efficiency for inventory scheduling. v E-commerce makes purchasing of products easier for local and international customers. v Transactions over the phone (through credit cards) makes the customers life easier v Research for new products.
TARGET MARKET BCBGMAXAZRIA identifies its customer as a woman who is updated with the fashion world. This customer has a strong desire to be fashionable and trendy and can afford to use readyto-wear designer clothes. This is usually a woman who wants to be up to par with what the designer has in store for the season. BCBGâ€™s main influence does come from European fashion and their intention is to portray it to and through their customers.
TARGET MARKET: PSYCHOGRAPHICS v Sophisticated and elegant v Fashionable women v From housewife to professional v Likes feeling empowered v Likes going out v Understands fashion is a good investment v Up-to-date with the latest fashion
TARGET MARKET: DEMOGRAPHICS v Young women from 18-40
v Caters to new trends
v Could range of careers
v Income starting $50,000-$200,000
TARGET MARKET: DEMOGRAPHICS v The following graph shows the percentage of affluent household members in the United States who have owned BCBG Max Azria brand men's or women's apparel, accessories, and footwear from 2011 to 2014. v In 2013, 9.8 percent of respondents who came from a household where the annual income was 200,000 U.S. dollars or more stated that they owned BCBG Max Azria brand apparel, accessories, and footwear.
TARGET MARKET: DEMOGRAPHICS
TARGET MARKET: SOCIOGRAPHICS v Established social media relationship v Facebook, Twitter, Pinterest, Youtube, Instagram.
v Responded to the use of technology v Mobile App
v Customers look for new products constantly v Technology facilitates this
POSITION STATEMENT BCBGMAXAZRIA targets the diverse market of the modern woman, who see’s herself as a sophisticated and dignified. By highlighting a diverse but finite offering of readyto-wear designer apparel; BCBGMAXAZRIA offers women the opportunity to reflect her personality and style. “Bon Chic, Bon Genre”, the Parisian phrase meaning “good style, good attitude” is what has inspired the designer, Max Azria and his wife, Lubov Azria to commit their lives to designing and providing the world with fabulous attire. Ranging from dresses to perfume, BCBGMAXAZRIA strives to create excellent and innovative high fashion trends to the all women and incentivize them to live the Bon Chic Life.
BRAND COLLATERAL In line with the brand collateral used by BCBGMAXAZRIA, for the promotion of the Multi-way jumper, the following collection of media will be used to promote the brand’s latest product and support its sales and marketing efforts: v Magazines v Advertising v Press Kit v Client list v Printed & digital brochures and newsletters v Company Website and Social Media accounts
MARKETING MIX: PRODUCT v A piece from BCBGMAXAZRIA’S Summer Collection 2015 v Transform from a jumpsuit, to a romper and to a skort v The jumpsuit has a zipper design that provides a quick and easy transition from pants to short v The luxurious, silk jumpsuit says: v Sleek v Smart v Style-savvy
MARKETING MIX: PRODUCT v Available in Black, White and Red v The combination of the minute zipper and the cuffed hem makes this alteration unnoticeable. At the waist, there is an elastic band with a gap made to place the skirt, which will have a belt attached.
MARKETING MIX: PRODUCT The target market would have to purchase similar alternatives to this product individually. Itâ€™s not a product that is currently officially on the market, so no replicas have been made. Each woman would have to buy a jumpsuit, a romper and a dress and a skirt individually and limit herself to its usage.
MARKETING MIX: PLACE v Exclusively sold at BCBGMAXAZRIA’S stores worldwide
MARKETING MIX: PLACE DISTRIBUTION DIAGRAM
MARKETING MIX: PROMOTION v Advertisement through social media pages v Website print ads v Billboards v In-store booklet v Promotional E-mail v Personal Phone calls to Clientele
MARKETING MIX: PROMOTION
MARKETING MIX: PRICE v Skyler Convertible Jumpsuit - $398 v Product Line Pricing v Different price point within the same product range
v Premium Line Pricing v Setting a higher price for exclusive products
v Psychological Pricing v Making the consumer consider the price
INCOME STATEMENT v The income statement represents a hypothetical situation in which all products sold at $398 retail price were sold. v The costs per unit would be $198 and 7,980 units would be manufactured. v BCBGMAXAZRIA aims at being exclusive and only sell 2 products of each size (0-12). v This would mean that there would be 14 jumpsuits for all 570 stores worldwide. v Because of the exclusivity, it was estimated that all jumpsuits could be sold in year one and would be discontinued after all products are sold.
Itâ€™s expected for the Company to break-even 4 months after the launch of the product. Setting the launch for February, it would break even by May. Break Even = $1,580,040.00/398 = 3,970 units.
Itâ€™s expected for the Company to break-even 5 months after the launch of the product. Setting the launch for February, it would break even by May. Break Even = $13,860/398 = 35 units.
MARKETING STRATEGIES: ADVERTISING v Placed through different advertising efforts v Newspapers, Magazines, Main Website, Social Media Websites
v Hosted monthly trend event v Brunch type event v Focus on Clientele v Exclusive first hand look at the Skyler Jumpsuit v Increases possibility of instant sale
MARKETING STRATEGIES: SERVICE v All associates participate in a Calling Campaign v Consists of calling all clients and notifying about the arrival of the Skyler Jumpsuit v Creates anticipation and interest for a new product v All recommendations are in line with how BCBGMAXAZRIA promotes their brand and products. They focus on maintain a strong relationship with clients and giving the feel of exclusivity. These strategies promote the product massively while maintaining such exclusiveness.