Marketing Plan 18478 Essay Example

relatively stable in the past three years, it has experienced consistent growth and currently accounts for 52% of total sports goods sales and around 7% of all clothing sales.

(Mintel – Sports Clothing, November 1998) The trends that were evident in 1995 have become more pronounced. These include the growing impact of fashion on the younger market and the heightened fascination with active lifestyles. It is highly desirable for individuals in the 15-24 age group to appear to wear active gear, regardless of whether they participate in sports or not. The older market, which consists of people who are maintaining their youthful appearance and leading active lives, is also increasingly embracing outdoor sportswear.

Mintel estimates that the sales of sports clothing in 1998 were valued at approximately ?2 billion, with a significant portion of this being derived from the youth market. The youth population, specifically individuals aged 15-24, is projected to grow by 3.5% by 2002, indicating a larger core market and potential for sustainable growth. Conversely, there is limited availability of sportswear catering to older age groups or preferences amongst leading manufacturers. Furthermore, the aging 'baby boom' population constitutes a growing segment.

(Mintel – Sports Clothing, November 1998) Numerous prominent brands primarily dominate the sports clothing market. However, the increasing trend of using sports clothing as a fashion statement has allowed traditional fashion labels to enter the sports leisurewear market. Tommy Hilfiger, Ralph Lauren Polo, and Levi's have achieved remarkable success in this market due to their strong appeal among young consumers. Furthermore, outdoor brands like Rockport, Timberland, and O'Neil are also gaining recognition because they attract a wide range of consumers. This market has significant potential

for future growth.

The sports clothing market had a value of ?1.7 billion in 1997 and is expected to reach ?1.8 billion in 1998, despite the recession in the early 1990s. There has been significant growth in the market, with a 22% increase in current prices between 1995 and 1997, equivalent to a real-term growth of 25%. In 1997, clothing made up for 52% of sales in the sports goods market, while footwear and equipment accounted for 32% and 19% respectively in 1994. This shift can be attributed to consumers opting for higher-value items such as outerwear and branded garments.

Footwear holds a greater importance in sportswear compared to general apparel, with a 17% share. This is largely due to its critical role in the brand image of leading sports goods manufacturers. Consumer spending on clothing that embodies the "sport – good health" look is expected to increase in the future (Mintel – Sports Clothing, November 1998).

Situation Analysis

The marketing audit involves conducting a S.W.O.T & P.E.S.T analysis. It serves as a means for companies to understand their relationship with the operating environment. Essentially, an audit assesses the company's strengths and weaknesses and how they align with external opportunities and threats.

The strengths and weaknesses of home shopping services in the UK can be summarized as follows. Home shopping emerged due to its provision of credit to communities, and with the accessibility to the Internet by at least one-third of the UK population, these sectors have the potential to reach the entire population soon. "Fashion Mania" is an example of a home shopping service that caters to various consumer groups such as young professionals, disabled individuals, and those who

find visiting physical stores challenging. Additionally, "Fashion Mania" offers a wider range of shopping options through the opportunities provided by the Internet. The convenience of home shopping being available 24/7 is particularly suitable for consumers with busy lifestyles. However, there are also weaknesses associated with this industry. One major drawback is its pricing, which tends to be higher compared to high street shops because catalogue prices are fixed for specific periods while high street shops often offer better deals. Furthermore, products may be out of stock when customers wish to make a purchase since catalogues are issued in advance, leading them to return to high street shops. Another weakness in the home shopping industry is limited advertising and promotions budget.

The strengths and weaknesses of home shopping services in the UK can be summarized as follows.
Home shopping emerged due to its provision of credit to communities,
and with the accessibility to^1/3_rd

of the UK population,
these sectors have the potential

to reach

t.he entire population soon.

"Fashion Mania" is an example of a home shopping service that caters to various consumer groups
such as young professionals, disabled individuals, and those who find visiting physical stores challenging.
Additionally, "Fashion Mania" offers a wider range of shopping options through the opportunities provided by the Internet.

The convenience of home shopping being available 24/7 is particularly suitable for consumers with busy lifestyles.
However, there are also weaknesses associated with this industry.

One major drawback is its pricing,
which tends to be higher compared to high street shops because catalogue prices are fixed for specific periods while high street shops often offer better

deals.
Furthermore, products may be out of stock when customers wish to make a purchase since catalogues are issued in advance, leading them to return to high street shops.

Another weakness in the home shopping industry is limited advertising and promotions budget.

For new retailers entering the market, it is crucial to advertise their products extensively in order to ensure consumer awareness when the catalogue becomes available. However, this can be challenging for retailers with limited budgets. Additionally, retailers who sell through catalogues face difficulties in keeping up with rapidly changing fashion trends, making it hard to effectively target teenage consumers.

Despite these challenges, there are opportunities for small or medium-sized retailers like "Fashion Mania" to expand their reach using simple selling methods such as the Internet. The use of advanced database techniques also allows home shopping services to focus on specific niche groups, leading to better returns, increased profit potential, and growth opportunities.

The popularity of home shopping presents a chance for existing brands to exert more influence in the market and attract new customers. Furthermore, society's widespread acceptance of the internet contributes to market growth and provides affordable advertising options for promoting new products.

However, there are threats posed by an increasing number of new entrants into the market. Foreign manufacturers who have launched home shopping services in their own markets are now expanding into other markets as well.The current decrease in consumer spending can have a negative impact on impulse purchases made through home shopping. Many top UK companies are at risk of falling behind because they lack an online presence. The environment is divided into four main categories known as PEST: Political & Legal factors, Economic &

Competitive factors, Social Factors, and Technological Factors. These political and legal factors include political uncertainty, EU regulations affecting trade and investment mechanisms, and the balance between public and private sectors. In the economic and competitive environment, a strong economy and higher disposable income can lead to increased sales. Social factors involve providing credit to communities and facilitating access to diverse cultures. Understanding the sociocultural environment is crucial for marketers to comprehend consumer needs and motivations.Technology has constantly advanced resulting in better internet accessibility, streamlined sales processes,and increased profits for companies (Brassington & Pettit).Marketing objectives should encompass five essential elements: specificity, measurability, comprehension of desired outcomes, attainability, and realism. Additionally, it is crucial to set time-based goals in order to achieve sustainable profitability and gradual improvement over time. In the span of three years, Fashion Mania aims to secure a strong position in the fiercely competitive home shopping services market by attaining this level of performance and gaining a notable advantage.

From that point and on, the possibilities are practically limitless. Ideally, the best development would be to generate such profits as to expand not only in the UK market but also in other markets worldwide. The main objective is to revive a product/service that tends to become extinct within modern societies where lifestyles favor quantity over quality. In other words, to create a service that will allow “Fashion Mania” to merge past values with today’s reality and demonstrate that small-sized companies exemplify one of the best practices in doing business.

Marketing Strategies

Management requires a plan or strategy to achieve their objectives. A strategy is defined as the decisions made by management on resource

allocation and attaining competitive advantage in chosen markets (Peter Doyle, Marketing Management & Strategy). This company focuses on various market sectors with the following marketing strategies:

• Development of a website.
• Selling through catalogues and utilizing new distribution channels such as the Internet for global reach.
• Establishing a base in the European Union.
• Advertising in magazines.
• Promoting existing products to new markets.
• Implementing mail order service.

The winning strategic direction involves targeting young professionals with little free time but ample financial resources through high-quality clothing at premium prices.

"Fashion Mania" plans to market its products through catalogues and the Internet. Market segmentation in consumer markets can be categorized into five main categories: geographic, demographic, geodemographic, psychographic, and behavior-based segmentation. These categories cover a wide range of characteristics (Brassington & Pettit, Principles of Marketing). The target market for sports wear or street wear primarily includes young people aged 15 to 20 and adults aged 30 to 45. Sports wear can be worn by customers from any social class due to its versatility, including items such as jeans, fabric Lycra, and sweat suits.

According to a 1998 survey in the UK, Adidas is the preferred sportswear brand for 48% of the 987 adults sampled. Nike and Reebok are the second and third most popular brands, respectively, trailing behind Adidas. This survey result indicates that sports and designer brands have become popular "household brands." (Key Note - UK Clothing & Footwear, 1999) "Fashion

Mania" targets males and females aged 25 to 45 from social classes A, B, C1 who have little free time due to their urban lifestyles but want exclusive products. They are athletic individuals who prioritize staying in shape and typically work in media, marketing, or fashion industries. The price range offered by "Fashion Mania" is medium to high. As an online shopping service, my company offers free catalogues for customers to choose from. We cater specifically to young professionals aged 25-45 who have disposable income but lack time for traditional shopping due to their busy schedules while prioritizing fitness as well.

The positioning map below illustrates the rationale behind selecting this specific market segment:

Positioning map: High Quality Cheap Expensive. Low Quality

From the aforementioned map, it is clear that "Fashion Mania" is a company that provides clothing of outstanding quality at affordable prices.

Marketing Mix

Product

The company's product offering will include high-quality leisure/sports clothes, with a particular emphasis on categories like sweat suits. These products will be produced according to customer demand. As the company grows in the market, there may be possibilities for expanding into other categories.

Customers must give a 48-hour notice to cancel their order, otherwise the payment made in advance will not be refunded. We have different packaging options available for orders of any size, including plain and gift wrappings. Our warranties cover either exchanging or refunding damaged items. However, our top priority is ensuring customer satisfaction and we will address any dissatisfaction by offering discounts or a 2-for-1 deal.

Price

The price for footwear is ˆ18, while clothes are priced at ˆ22 for specific limited product options. Prices may be adjusted for exceptional orders. Full payment in

advance is required as a guarantee.

The company's policy is to not accept credit and discounts in order to maintain the smooth running of our business. This means that sales will be the only source of income and profit.

Place

The company's delivery system will be free of charge and cover the north and central areas of the UK. As we are in the introduction stage and have ambitions to expand, we will also cover other distant areas around the UK. However, there will be a delivery fee for these areas. The goods will be delivered directly to our customers' work environment or houses using a multipurpose vehicle (van).

Promotion

By definition, small businesses have limited resources, and our case is no exception. Consequently, our promotional efforts will primarily focus on sales promotions and public relations, with the goal of reaching potential customers with high-quality information rather than bombarding them with frequent promotional activities. In terms of public relations, we rely on word of mouth to demonstrate the quality and reputation of our products. Our strong commitment to customer satisfaction means that our customer service will be appropriately tailored to meet customers' needs. Moreover, we will combine sales promotion techniques with direct marketing. Specifically, this will involve distributing a concise catalog and colorful leaflets to targeted areas (north and central UK) using our business van.

These promotional tools aim to increase awareness by providing information. To achieve this, we will use color photographs that represent our unique style, accompanied by detailed and clearly priced lists. The main message of our promotion will be about embracing traditional lifestyles while remaining modern and flexible.

Evaluation

Strategic statement: Our primary objective is to grow the company

in terms of sales and margins within a three-year timeframe.

Overall direction: We aim to attract young professionals who have limited time for shopping. Our general strategy will remain the same. The main focus will be on internally developing new products. We will finance this strategy by allocating funds towards design, product testing, and marketing, totaling 500 million. To achieve this, we will increase gearing to 35%.

Forecast

The prediction is that home shopping will continue to grow due to the positive response from people towards the Internet. However, catalogues still remain a popular alternative to physical stores. The overall landscape is expected to be influenced by the rise of niche sectors. Additionally, innovative methods of home shopping are anticipated to have a rapid impact on the market. The electronic and niche sectors are projected to gain more strength and focus as direct marketers utilize specialized databases to target specific consumer groups.

According to Key Note, the market for home shopping is predicted to make up more than 6% of total retail sales by 2003. Key Note estimates that the total value of the home shopping market will be ?20.3bn, showing a growth rate of 73.5% compared to 1999 and 99% compared to 1998 (Key Note Ltd, Home Shopping, 1999).

Bibliography.

1. Branssington, F. and Pettit, S. [2000], Principles of Marketing, London, Pitman Publishing.
2. Kotler, P. and Armstrong, G. [1996], Principles of Marketing, London, Prentice Hall.
3. McDonald, M. [1984], Marketing Plans: How to prepare them, how to use them, London, Butterworth ; Heinemann.
4. Thomas, Michael J. [1989], Marketing Handbook, London, Gower Publishing Company.
5. Adcock, D and et al.

[1998], Marketing Principles and Practice, London, Pitman Publishing.

et al. [1996], Principles of Marketing, London, Prentice Hall.

Mintel Reports:

• Retail Advertising [April 1999]
• UK vs. US Online Shopping [June 2000]
• The Sports Market [September 1998]
• Sports Good Retailing [June 1999]
• Sports Footwear [October 1998]
• Sports Clothing [November 1998]
• Leisure Shopping Off the High street [May 1999]
• Leisure On The Internet [May 2000]
• Online Shopping [July 1999]

Web pages:

• www.nike.com
• www.adidas.com
• www.encarta.com

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• www.geocities.com