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Brand Development Project Zdenek Pasek BA Fashion marketing & communication, Level 6, 2017-2018 6FAMK002C International Branding and Sustainability CWK2 Clara Mallart, Sergio Costa, Alejandro Gonzรกlez

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Introduction 5 Why Expand Older Brother

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Internal Analysis 8 Company’s Local Environment

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The International Environment

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The Market Entry Strategy

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Marketing Strategy 32 Sales & Distribution 35 Operation Overview 37 Ethics & Sustainability

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Conclusion & Recommendation

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Appendices 41

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INTRODUCTION

The main goal of this project is to launch the eco-conscious fashion brand Older Brother into the new market with the focus on the region of India. The vision of this project it to expend the brands operations and develop an international business plan that would be coherent with the current market situation. The plan will underline tools used to achieve profitable internalisation and brand expansion. Further more we will investigate the micro and macro environments that cause impact on the company Older Brother.

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Why expand Older Brother?

Taking into consideration that the Indian fashion market and its production is in the group of five most profitable markets in the world, we find a big opportunity in expending the US brand Older Brother. Through a collaboration with a local production company we would like to increase the awareness of the brand. The collaborating brand is know for its consciousness upon its workers and guaranties their heath and financial stability. To support the mission and vision of the brand we will incorporate the smile foundation that is focusing their goal toward female equality and financial stability. Their goal is to support the families with low income and help children to obtain good education. To outline the garment environmental friendly production we will include the global organic textile standard in the produced garments.

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The Internal Analysis

Mission Statement: Older Brother fuses natural processes with playful spirits to create contemporary classics. The mission statement underlines the core values of the brand. The company isn’t following a trend, it is setting innovation and showcases eco-friendly and natural production. The inspiration can be found in the base of fashion classics with contemporary twist. All is supported by naturally dyed fabrics with blue indigo technique and organic cotton production.

Vision of Older Brother: We make clothes for people. This statement represents the core vision of the brand Older Brother. The brand overcame the trend of merging targets where there is no age in the targeted consumer. The brands are currently decreasing their focus on the age of there target audiences. The brand Older Brother is holding on to genderless clothing that is sophisticated yet contemporary and nature based. The designed items are tailored to fit women, men and those in-between. The vision to create genderless clothing create a strong value and spread awareness upon the designed collections.

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O rganisational Structure of a Company Board of Directors

CEO of Older Brother

COO

Sales

Marketing

CFO

IT

Production & Design

Advertising Content

Development & Quality Control

HR

Accounting

Receivables Audit

Payables

Prospect

Customer

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C ompany’s Local Environment PEST Analysis

Political

Economical

Elections of new president Donal Trump causes business insecurities

Strong US Economy

Social Decrease of international citizens entering the US working forces Low awareness of garment consumption

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Increase of globalisation in industries to decrease supply cost

Technological New ways of prod- mass consumption uct distribution through omni-chan- New sources of innels and internet formation and local producers Do to internet audiences are facing global awareness of


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he International Environment: Foreign Market

The international Environment & Foreign Market Section gives outline to a market pest analysis coherent with the brand. Further more we will be able to see the analysis of the competitors and a SWOT graphic structure for each company representing direct and indirect competition. The market will be analysed in order to create a coherent entry strategy for the brand Older Brother.

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Political

Economical

Europe political turnover due to the Brexit situation

Increase of cotton prices

Social/Employment Legislation

Increase of globalisation in industries to decrease supply cost

Social

Technological

Modern lifestyle brings consciousness upon consumption and garment compositions Admiration and trendiness of denim Increase of environmental awareness lead to invention of new markets

New ways of product distribution through omni-channels and internet Do to internet audiences are facing global awareness of mass consumption


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NDIA

The Indian fashion market is the second target contributor in retail after food market. The brands entering the market as new competitor they adapt as non-branded. Nevertheless, Older Brother has high potential in this market due to its environmental awareness and sustainability. The GDP in India is expected to grow up to 2 - 3 per cent. The Indian retail market is represented by the worth of 641 billion US dollars. The current fashion market is worth 46 billion US dollars. The demand for sustainable garments if widely increasing across India especially the city of Mumbai. The market is considered as the second largest in the world. Indian market is in 5 top markets in the worlds Women’s wear 42% Men’s wear 39% All major global brands report India as major contributor to sales

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he Internalisation Barries

The barriers are seen as internal and external. With the focus on India the considered internal barriers can be classified as informational, marketing, financial and managerial barriers. Further more, the external barriers can be structured into currency, legal, economical, governmental and procedural.

Internal

External

Informational

Currency

Marketing

Legal

Financial

Economical

Managerial

Governmental Procedural

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he Competitor Analysis: Competitive Analysis Porter’s Five-Forces Model

Threat of Substitutes - High Rising popularity of fast fashion green washing Consumers feel environmentally conscious by purchasing false fast fashion garments

Threat of new entrants Moderate to Higher Scale economies Increase of environmentally conscious fashion brands Exclusive access to distribution Low switch cost

Suppliers Bargaining Power - Moderate

Buyers Bargaining power Low to Moderate

High amount of suppliers yet cheap labor cost

Increase of buyer awareness - information

Geographical Coverage

Lower increase of volume Substitute of products

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SWOT Analysis of Competitors T he& Positioning Map

High Price

Fast Production

Design & Lifestyle

Low Price

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OS : Swot Analysis (Competitor)

Strenghts

Weaknesses

Inspiration in contemporary art and architecture. Influence in the final design and production. Stylish, simple, higher quality garments with taste of minimalism. Collaboration with influencers Accessible pricing strategy

Expensive final reach to the customer - Logistic channels Inaccessible for younger markets Weak store coverage internationally Lack of transparency

Opportunities

Threats

Involvement of unique technologies and full channel coverage Website improvements and development of in-store experience Consider the BRIC markets in the global strategy

New entrance of competitors with similar style Search for more affordable replacements Global growth of competitors


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&M : Swot Analysis (Competitor)

Strenghts

Weaknesses

Reputation as a first fast fashion clothing company

Lack of brand transparency

Fast distribution channel

Use of green washing marketing techniques

Opportunities

Threats

Expand Brick and Mortal

Increase of success and publicity of competitors

Local production and distribution Production cost increasing

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*green washing example of H&M fast fashion brand

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L OOMSTATE : Swot Analysis (Competitor)

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Strenghts

Weaknesses

Strong Sustainability Story

Weak website development

Transparent brand strategy and production

Physical store coverage and global strategy

Opportunities

Threats

Expand globally and consider BRIC country strategy

Increase of success and publicity of competitors

Communicate collaborations with charities and main strategy and values

Production cost increasing Better competitors coverage


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Analysis: Cross Cultural purchasing pattern M arket analysis : Purchasing Behaviour (Why do the consumers purchase the products/brand?)

Do to Older Brother environmental consciousness the core vision is spread. The audience is fully aware of the purchased garments. The customer shares the same values with the brand due to its transparency opened to public. The unique materials used in the production attracts those shoppers that are fully aware of what they are buying and are willing to care for the environment. The garments are made with the spirit to care for the environment and for the people that are standing behind the production. The company’s mission is to make clothes for people. They are not focusing on only one target, but their target is wide and collaborative. The reason behind wide purchases is sympathy with the environment and the core values of the brand.

Which cultural aspects make the new market good or a bad choice to internationalise your company? Since to 2003, it has been noticed that the purchasing power has emerged in India. The urbanised middle classed customers are making monthly purchases in high amount of international stores. On the other hand, we can see a big difference between the middle-class and lower middle-class where the lower middle-class is poorer. Fifty percent of the people living as the lower middle class spends their money and early necessities such as food, shampoos and other products. There should be also taken into account the differences in urbanisation. The middle classes living in bigger cities are more likely to spend higher amounts of money on clothing then the lower classed citizens. In order to overcome unsuccessful strategy the company Older Brother should focus on the bigger cities to achieve perfect positioning.

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D ecription, Analysis & Evaluation : Entry Method The fashion company Older Brother is a sustainable brand with contemporary twist based in Portland USA. Their main focus is on production of environmentally friendly garments. The brand also uses the techniques of indigo die which gives the products vivid and long-lasting colour. Based on these facts we have decided to incorporate in the market expansion direct exporting and joint ventures. Due to the company local based production we find direct exporting suitable. The Indian market will be able to see contemporary US production and will be able to join the environmental consciousness. The company Older Brother will be selling directly into the market of India. Once the situation is settled the company will then also have the functionality of a distributor and will be able to represent in the market. Further more we will apply join ventures entry strategy. The company will create a partnership with a local production company and share the profit equally. Due to its awareness we would like to include healthy standardisation of the local garment production and create humanised and caring partnership with the new market. The combination of these two strategies would be key in order to enter the new market. It will guarantee sufficiency and success of the brand Older Brother.

Direct Exporting

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Joint Ventures


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Marketing Strategy : Pricing Strategy & T hePositioning Map

High Price

Fast Production

Design & Lifestyle

Low Price

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T he Pricing Strategy of Older Brother Strategy of Pricing at a Premium Due to the uniqueness of the brand Older Brother the plan should be set to enter the Indian market with a highest possible profit. Since the past pricing strategy was positioned to medium to higher priced products we would like to refer to the existing base line. The plan is mainly communicating the brands core values of sustainability and environmental awareness. In order to connect with the mission and vision we will apply the strategy of pricing at a premium. In this step we will keep some of the current pricing but also increase the prices. The line will be set higher than the competitors. The audience would be able to face highest quality of the offered garments and connects with the story behind it. According to the research this pricing strategy has been set as the most effective while entering a new market. Further more, to support the strategy and ideology of the brand we will stress the store interior look and feel and the high end packaging.

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he Sales & Distribution

The Distribution In order to sufficiently design the brands distribution strategy we will include the evaluation of the end user that is important to meet with the brands values. The statistics have showed that 70% of the final customers prefer to buy the products online. Nevertheless, the products purchased physically need to include the high end packaging and brands experience. With stress of design the distribution strategy has to match with the needs of end-users. Since we are entering a new market we will apply direct selling via website and virtual catalogue. In the Indian market we will collaborate with the wholesale/retail structure. With this step we will be able to assure that the final customer will obtain full information about the products that is necessary. The revenue will be driven through the previously mentioned channels.

The Distribution Channel

The Producer

Sales Force

Retailers

Business Segment

Physical

Consumer Segment No. 1

Catalogue, Web

Consumer Segment No. 2

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T he Sales & Distribution The Sales Strategy With the new strategy of development of Older Brother in India we will meet the goals of efficient selling point. Further the plan will generate the sufficient revenue reports and create return on investment. The process will deliver optimal information that would be needed to make faster decisions and lead the customer to higher stage. The sales will be supported by marketing plant that will monitor the transformation form leads to customers. To develop the best and sufficient process we will apply seven steps to determine sales goals.

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Delivery of the final products of Older Brother

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Share and send our proposal

Find out more about the prospect and determine if our products are sufficient for India

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Adjust our proposal in the light of the prospect’s needs and wants

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Make contect with Older Brother prospect and record their details

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Line up the prospect’s requirements

Demonstrate to the prospect how our product would create pontential benefit for India


T he Operation Overview Production Organisation Distribution January February March April May June July August September October November

Fashion Design and Product Implementation with Indigo Dye Techniques

Contact the local production company and local distributor of Older Brother

P R O D U C T I O N 2018

Setting the coherent strategy with the local production company and implement the global organic textile standard garment tags

P R O D U C T I O N 2019

The local store developement and instore decoration process

Product implemented by US Local production sent to India The Older Brother Store Openning Event

Product placement in the store and quality check

Collaboration with Smile Foundation and female empowerment

December

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T he Sustainability & Ethics Strategy According to the India’s top companies for sustainability and CSR the local manufacturing companies are the most sustainable rather then the service companies. In order to achieve highest possible goals, the company Older Brother will collaborate with NGO Smile Foundation. Do to Older Brothers gender equality and sustainable awareness the strategy will benefit over then 600,000 children and families and ensure the highest possible education and proper healthcare. Further, the brand will collaborate will local organic cotton production company Organic Clothes India to ensure the highest quality and guarantee the proper payment to the workers. Through the NGO Smile Foundation we will be able guarantee empowerment of female workers in the factory and production process. The customers will be able to see the clear transparency of the brand Older Brother and their consciousnesses upon the human resources and environmental issues that needs to be solved.


To ensure the brands transparency and unique cotton production we will add the global organic textile standard certification in the label of the produced garments. This action will provide local awareness of the true organic and environmentally conscious production.

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R eferences

Indiaretailing.com. (2018). Retail Industry Business News in India, Retail News | India Retailing. [online] Available at: http://www.indiaretailing.com/ [Accessed 14 Jan. 2018]. Olderbrother. (2018). Lookbooks. [online] Available at: https://olderbrother.us/blogs/lookbooks [Accessed 14 Jan. 2018]. Olderbrother. (2018). Olderbrother - Portland, OR. [online] Available at: https://olderbrother.us/ [Accessed 14 Jan. 2018]. Olderbrother. (2018). Process. [online] Available at: https://olderbrother.us/pages/process [Accessed 14 Jan. 2018]. Organicclothesindia.com. (2018). Organic Clothes India. [online] Available at: http://www. organicclothesindia.com/ [Accessed 14 Jan. 2018]. Organicclothesindia.com. (2018). Organic Clothes India. [online] Available at: http://www. organicclothesindia.com/ [Accessed 14 Jan. 2018]. PARASOL PROJECTS. (2018). Olderbrother @ Elizabeth. [online] Available at: http://www. parasolprojects.com/past-events/2017/9/13/olderbrother-elizabeth [Accessed 14 Jan. 2018]. Roy, A., Sekhar, C. and Vyas, V. (2018). Barriers to internationalization: A study of small and medium enterprises in India. Sirohi, G. (2018). Amazing Facts About Worldwide E-Commerce / Online Shopping | Gulshan Sirohi’s SEO Tips, SEM Tips, SMO Tips & SMM Tips India 2017. [online] Gulshan Sirohi’s SEO Tips, SEM Tips, SMO Tips & SMM Tips India 2014. Available at: http://www.seosolutionsindia.com/blog/2015/02/23/amazing-facts-about-worldwide-e-commerce-online-shopping/ [Accessed 14 Jan. 2018]. Smilefoundationindia.org. (2018). Ngo In India | Education For Poor Children | Donate Online For Underprivileged Children – Smile Foundation. [online] Available at: http://www.smilefoundationindia.org/ [Accessed 14 Jan. 2018].

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OlderBrother  

An International Business Plan focused on International Brand Development. Demonstration and understanding of branding (including ethical el...

OlderBrother  

An International Business Plan focused on International Brand Development. Demonstration and understanding of branding (including ethical el...

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