Issuu on Google+

   

 

Marketing  Plan        

By:  Marija  Pejkovic    


Table  of  Contents    

 

 

 

 

Corporate  Information………………………………………….Page  3-­‐5  

 

 

Customer  Profile…………………………………………………..Page    6  

 

 

SWOT  Analysis………………………………………………………Page  7-­‐11  

 

 

 

SWOT  Analysis  External  Forces…………………..Page  7-­‐8  

 

 

 

SWOT  Analysis  Internal  Forces……………………Page  9-­‐11  

 

 

Marketing  Mix  Strategies……………………………………..Page  12-­‐16  

 

 

Evaluation  and  Budget  ………………………………………….Page  12-­‐16  

 

 

Marketing  Research  Survey  ………………………………….Page  17-­‐18  

 

 

Examples  of  Ad  Campaigns  …………………………………..Page  19  

  2    


bebe  Brand   bebe  designs,  develops  and  produces  a  distinctive  line  of  contemporary  women's  apparel  and   accessories.    Manny  Mashouf  opened  the  first  bebe  boutique  in  1976  in  San  Francisco.  At  that   time,  three  categories  dominated  the  women's  wear  market:  junior,  briouh  women   inspirational,  sexy  fashion.  Thirty  years  later,  bebe  is  an  established  company  as  one  of  the  top   women’s  retailers  that  developed  the  contemporary  market  for  the  masses,  before  a    non-­‐ junior  line/department  ever  existed.  

Mission  Statement   “Our  objective  is  to  satisfy  the  fashion  needs  of  the  modern,  sexy  and  sophisticated  woman.”  

Corporate  Goals   1. Provide  distinctive  fashion  throughout  a  broad  product  line.   2. Vertically  integrate  design,  production,  merchandising  and  retail  functions.     3. Manage  merchandise  mix.     4. Control  distribution  of  merchandise.     5. Enhance  brand  image.     6. In  the  fiscal  year  2011,  bebe  plans  to  open  8  new  stores  and  to  relocate  and  expand  1   existing  store.    They  plan  to  close  up  to  49  stores  related  to  PH8.     7. Further  enhance  the  customers  shopping  experience  and  integrate  their  webstore  with   retail  stores  and  mobile  applications.   8. Bebe  plans  to  expand  from  49  internationally  licensed  operating  stores  to  63.     3    


Strategic  Business  Unit   1. Bebe-­‐  Offers  trendy  apparel,  bags,  accessories  and  shoes.   2. Bebe  Sport-­‐  Offers  work-­‐out  attire  and  accessories,  located  within  bebe  stores,   sometimes  a  standalone  store.    Caters  to  performance  and  active  lifestyle  needs  of  the   customer.     3. PH8-­‐  A  conversion  of  bebe  Sport  storefronts  into  PH8,  offering  casual  weekend  apparel,   work-­‐out  attire  and  accessories  such  as  bags  shoes  and  various  seasonal  items.     4. 2b  bebe-­‐  bebe  store  that  offers  2b  bebe  merchandise  with  logo  and  bebe  retail   markdowns.                

  4    


Management  Organization   Name  

Job  Title  

Board  

Manny  Mashouf  

Chairman  and  Chief  Executive  Officer  

Executive  Board  

Barbara  Bass  

Director  

Non  Executive  Board  

Cynthia  Cohen  

Director  

Non  Executive  Board  

Corrado  Federico  

Director  

Non  Executive  Board  

Caden  Wang  

Director  

Non  Executive  Board  

Walter  Parks  

Chief  Operating  Officer  and  Chief  Financial  Officer  

Senior  Management  

Barbara  Wambach  

Chief  Administrative  Officer  

Senior  Management  

Kathleen  Fong-­‐Lee  

Chief  Merchandising  Officer  

Senior  Management  

Tara  Poseley  

President,  Bebe  Sport  

Senior  Management  

Susan  Powers  

Senior  Vice  President  of  Stores  

Senior  Management  

Lawrence  Smith   Amy  Nichelini  

Vice  President,  General  Counsel                     Principal  Accounting  Officer  and  Corporate   Controller  

5    

Senior  Management   Senior  Management  


Customer  Profile   Bebe’s  target  customer  is  a  21-­‐34  year-­‐old  woman  who  seeks  current  fashion  trends  to  suit  her   busy  lifestyle.  She  is  a  stylish,  sexy,  sophisticated,  body-­‐conscious  woman  who  takes  pride  in   her  appearance.    She  is  assertive,  confident  and  cutting  edge,  looking  for  the  same  status  in  her   clothing.  She  wants  current  fashion  trends  at  high  quality  while  paying  a  competitive  price.  She   reads  many  fashion  magazines,  always  staying  on  top  of  the  hottest  trends.  She  lives  in  the  city   and  she  loves  go  to  shopping  whenever  she  gets  a  moment  from  her  busy  social  life.  She   attends  fashion  shows  and  has  many  industry  contacts  by  working  at  a  PR  company.  She  is   single  and  loves  to  splurge  on  herself,  not  just  on  apparel  but  her  Mercedes  Benz,  apartment,   beauty  products  such  as  Chanel  and  Dior  and  on  recreational  activities  like  yoga  and  Pilates.      

 

 

 

              6    


External  Forces:  (Macroenvioronment)   External  Forces  

Opportunities  

Competition  

• •

Economics  

Threats  

Clothing  made  from   organic  materials   Building  relationships   with  clientele  

Increased  demand  for  luxury   goods  in  high  growth  emerging   economies  

Nature  

Larger  competitors  with   established  financial,   distribution  and   marketing  resources  

Luxury  &  contemporary   merchandise  at  lower   price  points  

Big  ticket  items  aren’t  being   purchased  during  the  recession  

• Offering  clothing  that   corresponds  to  temperatures  

Sales  on  outerwear  during  the   season  they  are  needed  

Fabric  that  keeps  the   consumer  warm  and  cool   during  different  temperatures  

Fires,  earthquakes  disrupting   major  facilities  in  which  bebe   operates  in  

• •

Part  time  employee  benefits  

Purchasing  of  raw  materials  in   the  U.S.   •

7    

Low  consumer  confidence  

• •

Low  entry  barriers  

Lower  price  points  which  helps   stretch  the  consumers  tight   budget  

Politics  

Disruption  of  trade  with   countries  in  which  bebe   contractors,  suppliers,  or   customers  are  located  

Significant  fluctuations  in  the   values  of  the  dollar  against   foreign  currencies,  restrictions   on  the  transfer  of  funds  


Regulations  

Registration  of  trademarks   domestically  and   internationally  

Increasing  e-­‐commerce   market  

Ready-­‐to-­‐wear  fashion  shows  on   competing  retailers  websites   Competing  retailers  giving  the   option  to  pre-­‐order  products  for   the  following  season  

Celebrity  associations  

Miscalculation  of  customer’s   product  preferences  

Bebe  fashion  shows  at  LA,   Chicago  and  Miami  Fashion   Week    

          8    

Manufacturers  that  violate  labor   laws  

• Accurately  forecasting   demand  and  fashion  trends   •

Bebe  blog    

Society  

• Manufacturers  that  fail  to   conform  to  their  quality  control   standards  

Closing  under-­‐performing   bebe  stores  

Technology  

• Bebe  doesn’t  own   manufacturing  facilities  

Trends  that  are  not  socially   accepted  


Internal  Forces:  (Microenvironment)  

Internal  Forces  

Strength  

Customer  Profile  

Weakness  

 

Demographics  

 

Bebe’s  target  customers   shop  whenever  they  have   a  chance.     Bebe’s  target  customers   like  to  splurge  on   themselves  

Trendy  young  women  buy  luxury   price  but  not  luxury  pieces  

15-­‐64  year  olds  make  up  largest   percentage  of  the  population   and  bebe  only  targets  women   between  21-­‐34  years  old.    

  Psychographics  

Geographics  

Trendy  women  like  to  look   fashion  forward  

Customers  attend  a  lot  of   events  and  they  are  active,   so  they  need  a  variety  of   merchandise.    

Stores  located  in  regional   shopping  malls,   freestanding  street   locations   •

International  stores   9  

 

Consumers  don’t  instinctively   pick  bebe  over  other   competitors  until  they  compare   because  bebe  doesn’t  have   strong  brand  recognition.    

Bebe  doesn’t  follow  up  with   their  clienteling-­‐  they  build  a   relationship  with  the  client  while   in  the  store,  but  they  do  not   follow  up  to  see  if  their  client   was  satisfied  or  if  they  need   more  merchandise.      

Locations  are  in  regions  instead   of  counties          


Behavioral  Buying  Traits  

Bebe’s  target  customers   like  to  splurge  on   themselves.    

Low  traffic  

Low  average  spend  by  consumer  

Company’s  merchandise  lacked   appeal  in  ‘08  

Bebe’s  target  customers   are  always  staying  on  top   of  the  hottest  trends,   therefore  always  buying   new  arrivals  for  each   season.      

Product  Mix  

Licensing  agreements  to   expand  product  lines  

Bebe  designs  their  own   merchandise  

Bebe  does  not  offer  men’s   clothing  

• Bebe  carries  many   products  and  categories   Pricing  Strategies  

Promotion  

Distributing  only  in  retail   and  online  helps  control   pricing  

Lower  price  points  on  new   product  lines,  affects  sales  and   further  markdowns  

2b  bebe-­‐  merchandise  at   lower  price  points  

Long  periods  of  markdowns  

Outlet  2b  bebe  stores  have   a  large  percentage  of  retail   markdowns  

Loyalty  program  members   receive  points  for  every   time  they  shop  at  bebe.   When  these  points   accumulate,  they  receive  a   small  gift  certificate  to  use   on  their  next  purchase.     •

Gift  cards  with  no   expiration  date  

10    

• •

High  markdowns  

Untimely  product  delivery   results  in  lower  than  expected   sales  and  markdowns.  


Distribution  

• Product  inventory   management  is  critical  to   meet  consumer  demand   • Distribution  through   company  retail  stores  and   online  

Management  Structure  

One  week  of  delivery  time  after   an  item  is  bought  and  shipped   from  online   Manny  Mashouf  owns   substantial  portion  of   outstanding  shares-­‐  other   shareholders  may  not  be  able  to   influence  direction  the  company   takes   •

Suppliers  response  of   emerging  trends  in  a   timely  manner   Raw  materials  held  at   suppliers  warehouse  

 

        11    

Shallow  skill  base  of  associates   hired  at  entry  level  

Lawrence  Smith-­‐  former   general  counsel  for  BCBG   Maxazria.  Lawrence  has   experience  working  for  a   brand  that  is  bebe’s   competition.    

Suppliers  

Emila  Fabricant-­‐  former   divisional  merchandise   manager  for  Barneys  New   York.  Emila  brings   knowledge  from  a  high   end  luxury  department   store,  bringing  ideas  to   bebe  to  help  target  their   customer  more  precisely.    

• Bebe  failed  quality  control   standards  on  products  resulting   in  a  delay  of  alternative   products  

3rd  party  suppliers  and   manufacturers  

No  long  term  contracts  

Availability  of  raw  materials  and   finished  goods  is  uncertain  


Introduction  to  Marketing  Mix  Strategies     Here  you  will  find  marketing  mix  strategies  for  bebe  stores  Inc.  Product,  price,  place  and   promotion  will  revolve  around  the  central  idea  of  launching  a  men’s  collection  for  bebe  stores   Inc.     I.

Product   A.

Budget-­‐  $15,000  

B.

Objective-­‐  Introduce  a  men’s  collection  for  Holiday  2011.     1. Evaluation-­‐  bebe’s  men  collection  was  introduced  for  Holiday  2011  on   November  1st,  2011.    

C. Strategy  –  Examine  the  type  of  clothing  void  within  the  marketplace  for  men   ages  20-­‐35  years  old.   1. Tactic-­‐  Conduct  marketing  research  by  surveying  men  20-­‐35  years  old  to   find  what  styles  of  clothing  need  to  be  offered  for  their  age  group.   a)

Execution-­‐  Marketing  Department:  January  2011  

2. Tactic-­‐  Send  surveys  to  existing  bebe  customers  to  see  if  they  have  a   significant  other  that  would  possibly  escalate  into  a  bebe  client  if  a  men’s   collection  was  offered.  (Example  on  Page  17-­‐18.     a)

Execution-­‐  Marketing  Department:  January  2011  

3. Tactic-­‐  Hire  designers  experienced  in  designing  menswear  for  the  ages  of   20  to  35,  to  design  the  men’s  collection.     a)

Execution-­‐  Human  Resources:  April  2011  

4. Tactic-­‐  Report  what  styles  of  clothing  need  to  be  offered  to  the  new   designers  so  they  could  design  according  to  the  consumers  wants.     a)

Execution-­‐  Marketing  Department:  April  2011  

  12    


5. Tactic-­‐  Hire  reputable  manufacturers  that  work  closely  with  bebe’s   existing  manufacturers  to  make  the  clothing.     a)

Execution-­‐  Chief  Operating  Officer:  June  2011  

 

6.

Tactic-­‐  Ship  clothing  from  manufacturers  to  bebe’s  warehouse.   a)

Execution-­‐  Logistics:  August  2011  

 

7.

Tactic-­‐  Distribute  clothing  to  be  sent  to  the  12  top  door  stores.     a)

Execution-­‐  Merchandising  Officer:  End  of  October  2011  

 

8. Tactic-­‐  Follow  up  to  make  sure  each  store  received  the  men’s  collection   by  Holiday  2011.     a) II.

Execution-­‐  Senior  Vice  President  of  Stores:  Mid  November  2011  

Price   A.

Budget-­‐  $2,000  

 

B. Objective-­‐  Launch  a  men’s  collection  by  Holiday  2011  ranging  in  price  from  $60-­‐ $200.     1. Evaluation-­‐  bebe’s  men  collection  for  Holiday  2011  fell  between  the  price   points  of  $58-­‐$198.   C. Strategy-­‐  Collaborate  with  manufacturers  that  create  bebe’s  women  collection   to  set  the  men’s  collection  to  the  price  point  of  $60-­‐$200.     1. Tactic-­‐  Look  for  designers  with  similar  lifestyles,  price  points  and  looks,   that  corresponds  with  bebe’s  lifestyle.     a)

Execution-­‐  Merchandiser:  March  2011  

  13    


2.

Tactic-­‐  Set  an  annual  salary  for  the  designer  that  cannot  be  adjusted.   a)

Execution-­‐  Chief  Financial  Officer:  April  2011  

3. Tactic-­‐Purchase  similarly  priced  textiles  for  the  clothing  that  is  to  be   made.   a)

Execution-­‐  Buyer:  End  of  May  2011  

4. Tactic-­‐  Have  the  clothing  manufactured  in  the  same  country  as  the   women’s  collection.   a)

Execution-­‐  Buyer:  June  2011  

5. Tactic-­‐  Monitor  the  progress  being  made  until  the  merchandise  is   received  to  the  warehouse  so  that  no  additional  charges  are  made  to  the   company’s  budget.   a) III.

Execution-­‐  Chief  Financial  Officer:  April-­‐  August  2011  

Promotion   A.

Budget-­‐  $13,000  

B. Objective-­‐  Create  an  ad  campaign  targeted  to  20-­‐35  year  old  men  to  launch  in   November  2011  and  begin  the  process  of  exposing  this  campaign.  (Example  on  Page  19)   1. Evaluation-­‐  bebe’s  men’s  collection  ad  campaign  targeted  men  ages  20-­‐ 35  years  old  and  launched  October  1st  ,  2011.     C. Strategy-­‐  Set  a  theme  for  the  ad  campaign  that  will  attract  the  20-­‐35  male   market  group.     1. Tactic-­‐  Work  with  the  designer  to  find  out  what  inspired  them  to  create   the  men’s  collection.     a) 2.

Execution-­‐Advertising  Department:  April  2011  

Tactic-­‐  Incorporate  the  inspiration  into  a  story  for  the  ad  campaign.   a)

 Execution-­‐  Advertising  Department:  May  2011  

  14    


3.

Tactic-­‐  Incorporate  the  lifestyle  of  a  bebe  man  into  the  ad  campaign.   a)

D.

Execution-­‐  Advertising  Department:  May  2011  

Strategy-­‐  Advertise  in  appropriate  mediums  fit  to  the  bebe  men’s  lifestyle.     1. Tactic-­‐  Advertise  in  GQ  with  print  ads  located  towards  the  beginning  of   the  magazine  on  a  thicker  cardstock  paper  that  stands  out  from  the  rest  of  the   ads.     a) 2.

Execution-­‐  Advertising  Department:  October  2011  

Tactic-­‐  Advertise  through  a  direct  mail  campaign  with  bebe’s  ads  and  a  

coupon  to  men  ages  20-­‐35  living  in  the  same  household  as  bebe’s  women   clientele.     a) 3.

Execution-­‐  Advertising  Department:  October  2011  

Tactic-­‐  Introduce  the  men’s  collection  through  online  ad  banners  on  

websites  such  as  Esquire.com,  Complex.com,  Espn.go.com,  and   men.style.com/gq.     a) IV.

Execution-­‐  Advertising  Department:    October  2011  

Place   A.

Budget-­‐  $2,000  

B.

Objective-­‐  Offer  bebe’s  men’s  collection  at  12  top  door  stores  for  Holiday  2011.     1. Evaluation-­‐  bebe  men’s  collection  was  offered  at  12  top  door  stores   across  the  U.S.  for  Holiday  2011.    

C.

Strategy-­‐  Conduct  market  research  for  bebe  store’s  sales.     1. Tactic-­‐  Look  at  sales  statistics  for  each  store  from  the  past  two  years  to   determine  if  the  allocation  will  be  a  fit.     15  

 


a)

Execution-­‐  Chief  Financial  Officer:  March  2011  

 

2. Tactic-­‐  Choose  a  store  with  ample  space  that  can  be  dedicated  to  the   men’s  collection.     a)

Execution-­‐  Vice  President  of  Stores:  April  2011  

 

3.

Tactic-­‐  Close  stores  with  low  foot  traffic.   a)

Execution-­‐  Vice  President  of  Stores:  April  2011  

 

4.

Tactic-­‐  Consider  using  stores  in  bigger  cities.     a)

Execution-­‐  Vice  President  of  Stores:  April  2011  

 

5.

Tactic-­‐  Consider  using  stores  in  tourist  areas.     a)

Execution-­‐  Vice  President  of  Stores:  April  2011  

  ***Budget  is  based  on  annual  sales  of  $800,000.                     16    


Marketing  Research  Survey    

     

1. Do  you  have  a  significant  other  that  would  consider  purchasing  clothing  at  bebe  stores   if  we  offered  a  men’s  line?   Yes       ____   No       ____   2. If  yes,  how  often  do  they  shop  for  clothing  a  year?   Once       _____   Twice       _____   Three  Times     _____   Four  Times     _____   Five  Times     _____     3. If  So,  what  is  their  age?   18-­‐24       _____   25-­‐35       _____   35-­‐45       _____   45-­‐55       _____     4. Where  do  you  shop  for  men’s  clothing?   Banana  Republic   _____     Express     _____   JCrew       _____   Nordstrom     _____   Lord  &  Taylor     _____   Von  Maur     _____   Macys       _____   H&M       _____   Other:  Please  Explain  Below   ___________________________     5. What  brand  do  you  mostly  shop  for  in  men’s  clothing?   Calvin  Klein     _____   Diesel       _____   French  Connection   _____   Polo  Ralph  Lauren   _____   Seven  for  all  Mankind_____   Lacoste     _____     17  

 


6. What  is  most  important  when  purchasing  men’s  clothing?   Selling  Price     _____   Quality     _____   Brand  Name     _____     7. How  much  do  men  spend  on  average  for  an  article  of  clothing?   Under  $30   _____   $30-­‐40     _____   $40-­‐60     _____   $60-­‐80     _____   $80-­‐120   _____   $120-­‐200   _____     8. What  article  of  clothing  is  most  hard  to  shop  for  men?  (check  all  that  apply)     Accessories   _____   Bottoms   _____   Denim     _____   Jackets     _____   Outerwear   _____   Shoes     _____   Shirts     _____   Sweaters   _____   Sweatshirts   _____   Vests     _____   Other:  Please  Explain  Below   ___________________________     9. What  style  of  clothing  would  you  feel  would  be  a  void  in  the  men’s  clothing   marketplace.  Please  explain  below.   ______________________________________________________________________________ ______________________________________________________________________________        Thank  you  for  participating  in  bebe’s  survey.  Please  mail  this  survey  

back  with  the  attatched  pre-­‐paid  envelope  for  a  chance  to  win  a  $500   bebe  gift  card.     18    


Examples  of  Ad  Campaigns                   For  bebe’s  ad  campaign,  I  would  like  the   theme  to  be  subtle  as  these  two  ads  show   from  J.Crew  and  Gap.  The  clothing  is  the   main  focus  in  these  ads.  These  ads  show  a   variety  of  items  that  are  offered  at  the   retailers,  therefore  giving  the  consumer  a   sense  of  what  they  could  expect  when   visiting  the  website  or  store.  I  would  like  for   bebe’s  campaign  ad  to  be  straight  forward,   highlighting  all  the  different  merchandise  we   offer  just  as  these  ads  do.  

       

19    


Bebe Marketing Plan