marketing management plan pic shirt

8/9/2019 marketing management plan Pic Shirt

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Institute of Business Management

MARKETIING MANAGEMENTTERM REPORT

Marketing PlanFor

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Table of Contents

Executive Summary ..................................................................................................................2Situation Analysis ..................................................................................................................... 3

2.1) Market Summary ...........................................................................................................4

2.1.1) Market Demographics ........................................................................................... 4

2.1.2) Market Needs ..........................................................................................................52.1.3) Market Trends .........................................................................................................6

2.1.3) Market Growth ........................................................................................................7

2.2) SWOT Analysis .........................................................................................................7

2.3) Competition ...................................................................................................................82.4) Product Offering ............................................................................................................9

2.5) Keys to Success ........................................................................................................... 11

2.6) Critical Issues ...............................................................................................................113.0) Marketing Strategy .......................................................................................................... 11

3.1) Mission ........................................................................................................................ 11

3.2) Marketing Objectives ...................................................................................................123.3) Financial Objectives .................................................................................................... 12

3.4) Target Markets .............................................................................................................13

3.5) Positioning ...................................................................................................................13

3.7.1) Perceptual Mapping .............................................................................................. 143.6) Strategies ......................................................................................................................15

3.7) Marketing Mix .............................................................................................................15

3.7.1) Pricing ...................................................................................................................15

3.7.2) Product ..................................................................................................................163.7.1) Distribution ...........................................................................................................16

3.7.1) Promotion ............................................................................................................. 173.6) Market Research ..........................................................................................................18

4.0) Financials .........................................................................................................................19

4.1) Breakeven Analysis .....................................................................................................194.2) Sales Forecast .............................................................................................................. 20

4.2) Monthly Expense Forecast .......................................................................................... 21

5.0) Controls ............................................................................................................................22

5.1) Contingency Planning ..................................................................................................225.1.1) Difficulties and Risks ........................................................................................... 22

5.1.2) Worst Case Risks .................................................................................................22

Executive Summary

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Pic-Wear is planning to launch an entirely innovative product of thesame name in growing market. Despite a healthy competition in themarket for clothes, Pic wear is coming up with a completely newconcept of customized wear in September 2009. The first productwhich Pic-wear intends to launch will be customized shirts. There is

a huge market for these shirts as the research findings have givenan insight into market trends for customized shirts and Pic-wearneeds to tap these market opportunities before a competitor doesso.

The primary marketing objectives are to gain at least 15 % marketshare in the compatible market and also create new markets for Picwear, places where products like Pic-wear were needed but werenot introduced, in the first two years. Pic wear also intends to sellatleast 7000 units within the first two years to maintain enoughcash flows for future development and promotional objectives. Thecentral financial objective is to achieve two year sales volume of atleast PKR 2.8 million with managing to breakeven in the first 5months and go profitable in December and onwards.

Situation Analysis

Pic-Wear is an entirely new concept, which is yet to be introduced in

Karachi as the most customized of fit out in the entire market.Although a very low profile competition exists for Pic Wear, as of yetthere hasnt been any appropriate brand for a product of the likes ofPic Wear. Pic wear offers an entirely new idea, for the consumers todesign their own outfit and acquire it with in a little time of notmore than 24 hours.

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2.1) Market Summary

Target Markets

Sports Events (Occasional) Political/Social rallies and activities (Occasional)

Random wear

2.1.1) Market Demographics

The market demographics for Pic-wear are as under:

Geographic

Pic wear will initially keep its focus intact upon the mega city ofKarachi, Pakistan. With a success in Karachi, Pic wear can smoothlymove into other big up-country centers where pic-wears productscould surely get success.

Demographic

Pic wear best suits the liking of those people who lie within the agegroups of 5-35 year olds. It will be offered to both males andfemales alike. Although random wear users would be targeted all

year long, the occasional users are the ones who will bring bigorders and good know how about this market is thus equallyimportant.

The demographics for the above mentioned target markets are asfollows:Sports events: ages 14-32 (nearly 42% of the entire market)Political/Social rallies and activities: ages 20-35 (nearly 38% of theentire market)Random wear: ages 5-25 (nearly 48% of the entire market)

The markets income levels are extremely different. The lower agegroups do not earn and are mostly dependants. The above 20 and

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22 y/olds and above are mostly income earners and differ in incomelevels. Nearly 4% are unemployed

33%: Rs.12000 Rs.9900037%: Rs.100, 000 - Rs.180, 000

13%: Rs.181, 000 - Rs.400, 0008%: Rs.400, 000 - Rs.1, 000,0005%: Rs.1, 000,000 Above

Behavior Factors

The prospected Pic Wear users are divided into two groups

High End

These are party going people, who either attend good colleges ortake part in multiple social activities and visit sports events. Thesepeople are willing to pay higher prices for quality products with acondition that it suits their tastes.

Low EndNot very quality savvy, they are those users, with more interesttowards work and less time for recreation. But sports events likecricket matches (even between local teams) are among their mostvalued recreation and this is the place they want to enjoy their timein full. But they are significantly high price savvy users.

2.1.2) Market Needs

Pic Wear is bringing into the Market a highly customerized product,which can be shaped in any manner as the customer wants it to be.We just ask the user to design your complete wear and well justmanufacture and deliver it for him.On the other hand for special events there are already custom

designed products which suits the occasion to the highest extremeof the essence of the event.

Thus this product cannot come in to existence without determiningthe market needs first.

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The analysis of the major needs of the market concerning Pic Wearis:

Easy availability:The availability of the product within time and with easy access isthe utmost priority

Complete reflection of the customers idea:Whatever the customer wants to be printed on the shirt, should beprinted with complete colors and it should meet the customersexpectations. The print should be done with good colors andmaterial.

2.1.3) Market Trends

Although, again, being in a grip of recession, Pakistans economyhas shown remarkable resilience in the past and bear goodprospects for the growth of Pic-Wear, Karachi on the other handreceives thousands of migrants from all over Pakistan and has adiverse bunch of people who throng sporting events, numerouspolitical, social rights, and humanitarian and religious rallies everyyear.

The latest development which has really been strengthening thesedays in the metropolis is the increase in frequency of political,social, and religious events taking place in the city. These rallies areorganized by various organizations and the activists hold bannersand placards but they do need their wearto also reflect their causeas proved by our research.

The rapid growth of media popularity can also be a source of furtherdevelopment and demand among the consumer for our products.Although Pakistan is snatched from its place as a cricketing host but

there are chances of revival in the future. In such a case Karachiwould be the obvious venue for any cricketing action due to theunfortunate Srilankan Team Attack in Lahore this year andcontinuous unrest in other parts of Pakistan.

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2.1.3) Market Growth

The market is growing by 6% every year due to more and morepeople coming to the city each year and also due to rising incomestandards.Given that we are just launching Pic-Wear for the first timetherefore any predictions or extrapolation regarding its growth willonly be possible after the first year of its sales.Karachi has many large Public sector universities where numerouspublic gatherings will be started to be held. This is after the newGovernment of Pakistan, under PPP, has recently allowedgatherings of students by lifting the ban on student union rallies.

2.2) SWOT Analysis

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Karachis

massive

population

increase since

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2.2.1) Strengths:

Pioneer Advantage

Custom-designed Shirts

Small effective teams

Highly distinctive Offering

Highly customerized

Small Distribution system

2.2.2) Weaknesses:

Limited capital Limited set-up

Too much dependency on Suppliers

Limited ability to fulfill macro consignments

2.2.3) Opportunities:

Well defined market niche

Growing market

Great potential for growth

Less number of Competitors

Innovation is the key

2.2.4) Threats:

Recession

Political Unrest (Terrorism)

Price invariability of

Big Brands might jump into competition and use their brandpower to thwart our success

The product can be easily imitated and sold at lower price andlower quality by giants like China.

2.3) Competition

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Pic-Wear is a Brand of its own kind. It is the first ever time that thelocals in Pakistan will be facilitated with the liberty of customizingthere wear in accordance with their choices and tastes.

As far as the competition is concerned there are no Branded

customized t shirts and wears available in the market. However, lowquality and low priced versions are offered in the markets by somesellers who fail to maintain high awareness.

These low Profile sellers do not cater to the needs of individualcustomers, in fact they go after the entire market according to theirpersonal perception of needs and trends. Hence they do not doindividual marketing. Usually they identify the likings of majority ofbuyers and start producing for that majority and in the processindividual demands and needs are neglected or in most cases notconsidered at all.

2.4) Product Offering

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Pic shirt is a new, yet an amazing product, specially designed tocater the modern-day clothing needs of the youth and theadolescents alike .The product that Pic Wear plans to launch initiallyis a customized T-Shirt. The customers will be given completefreedom to choose the color, material, and style/type of the shirt in

accordance with their choice. The customers could order the exactpicture that they wish to see on their shirts.

Printing of the picture can be done at front only, back onlyor bothsides, depending upon the convenience and monetary range of thecustomer.

The customers can even get their favorite pictures printed on otherbranded T-shirts, the way they like. Hence at Pic Wear its thecustomer whos the boss.

Pic shirt is manufactured on a made to order basis. It is the mostcustomized product pf its type. The customer can order whateverhe/she likes to be printed on his/her shirt within the shortestamount of time with an unmatched quality.

The variety of products can range from shirts with pictures of rockstars, sports personalities, political leaders, famous quotes,monochrome graphics etc printed over them. The printing is doneon quality fabric with superior printing materials.

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Customers

chosen Pic

?

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2.5) Keys to Success

Customer chosen designs.

Conformance in quality.

Reasonable prices

2.6) Critical Issues

Initially it would be important for Pic wears success that Pic wear

make more and more people know about the product in a positivesense and establish itself as a highly customized clothing solution.

Pic wear has to ensure in all circumstances that even in high growthtime the quality of Pic wear products remains the same and largequantities should not in any way affect the Products quality. Thiswill be a backbone for sustainable growth.Pic wear should constantly focus on customer satisfaction throughcustomer feedback and next time purchase patterns.

3.0) Marketing Strategy

The core of the Marketing Strategy for Pic wear will rely on itspositioning as a highly customized clothing solution with areasonable price and which is very easily available. The market isalready segmented and target markets are also well set. The three

target markets with different product criteria will be marketed onlyaccording to their precise needs.

3.1) Mission

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To provide our customers with an exceptional clothingexperience, by enabling them to choose for themselvesdesigns that best suit their personalities, and to transformtheir fascinations into reality with economical, durable,and innovative solutions.

3.2) Marketing Objectives

Increase product awareness among the target audience by 25percent in one year. Inform target audience about the qualities of our product and itscompetitive advantage.

Position this product as a good quality product and work on to makePic Wear a household brand name, easily recognizable and one that isalways appreciated. Gain at least a 15% market share in the compatible market in thefirst year.

3.3) Financial Objectives

Achieve revenue growth of 25% to 50% per year during the first threeyears A more consistent revenue base Stable earnings during recessionary periods Retain a promotional and R&D budget to ensure sustainable growthin good and bad times alike. Sell at least 7000 units in the first two years and keep sales to a pointof no less than PKR 2.6 million

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3.4) Target Markets

With such huge differences among the target markets, the

strategies which need to be formulated would have to be entirelydifferent from each other. Considering the variability and growth ofthis market the strategy is needed to cater all of the target marketaudiences alike. The market is not fast at evolving, for the last somany years the population pattern has not changed a lot, thus itmeans that the demand for Pic-Wear is not likely to shift a lot ifproper Brand reinforcement and Brand revitalization is done.

3.5) Positioning

Positioning Statement

For those, choice savvy consumers who love to have selfdesigned attire, Pic wear is a product that provides you with acomplete clothing solution in the most customized manner

possible. Unlike others, be it the size, fabric, color or the

picture, its you, who have to design your own outfit. Pic wear isyour ultimate and the most personalized clothing experience.

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3.7.1) Perceptual Mapping

The Perceptual Map of Pic-Shirt above noticeably shows that Pic-Shirt is exceptionally placed at the highest of the level ofdistinctiveness in this map. Although it is positioned here along withthe huge internationally acclaimed brand names like Levis andHang ten it remains high on its distinctiveness due to a highlycustomized and made-to-order approach of its products.

Other brands like Fiction and Leisure club are comfortablypositioned with less distinctiveness and high affordability whileother local brand names are almost not at all distinct but are veryaffordable which means that they only cater for lower endcustomers and does not pose any threat to the potential growth ofPic Shirt.

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Less Distinctive

Highly affordable

Less affordable

Levis

Hang ten

Fiction

Leisure Club

Other Local brands

Highly distinctive

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3.6) Strategies

The entire marketing strategy will seek to position Pic wear as themost customized Clothing accessory available in the market. Inessence there is nothing in a Pic wear product that a customer can

not shape according to his/her own choice. The messages that PicWear needs to convey will be done conveyed through severaldifferent methods.Being a entirely new concept Pic wear require a strong marketingeffort to enter this industry with a success. For this the MarketingMix needs to be both effective and efficient.

3.7) Marketing Mix

3.7.1) Pricing

Variable Cost per unit

Shirt 180

Printing 150 per side (250 for both sides)Press 5Total 335 / unit (one side print)

Fixed Costs

Wages (Reception) 8000Wages (Service man) 6000

Rent 10,000Utility 3500Total 27,500

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Fixed cost per unit = PKR 94 / =Variable cost = PKR 335 / =Selling Price = PKR 570 / =Desired Profit Margin = PKR 25 %

Markup Price = Unit Cost

(1 desired return on sales)

= 335 + 94 = 570

1-0.33

Starting from Rs. 570 / =

Value Pricingis done by keeping moderately high markup so that customers couldperceive Pic Wear as a good quality product

3.7.2) Product

The entire description regarding Pic wear has been discussed in

prior section of product offering. Some improvements in Pic wearproducts can be an introduction of cardigans, blazers or sweaterswith Pic wear characteristics.

3.7.1) Distribution

Being a highly personalized product, Pic wear will only be available through the state

of the art Pic wear store at Shop # 7608 Zaibunnisa Street (formerly Elphinstone

Street), Karachi.

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3.7.1) Promotion

Pic wear is a new product and will require some effective andintegrated marketing communication messages.

First of all some eye catching and incredibly startling pamphletwill be distributed among students of private sector universities

throughout the city, which are our prime target audience. Thesepamphlets are designed keeping in mind the intellectual level ofaverage target audience. (A model of this pamphlet is attached inAppendix A)

Intensive promotional activities will be carried out in thesecolleges and universities. Prototypes of Pic wear will bedisplayed and students would be encouraged to order on the

spot.

For the important niche such as sports wear, target marketaudiences can best be reached at the point of ticket sale atmultiple Bank branches. Pamphlets (Appendix A) and bannerswill be distributed and displayed respectively at these bankoutlets. The pamphlets will be circulated at the entry and exitpoints of these outlets and streamers will be placed rightabove the point where the tickets for the event would be onsale.

A less expensive but effective technique of word-of-mouthinfluence will be utilized with the help of Opinion leaders inkey target locations to create brand awareness of pic wearamong the desired target audience. These opinion leaders willbe persuaded to wear different Pic-wear shirts and to promoteit through personal levels among their friends and peers.

Political and Social groups are a vital target market for Picwear; andpersonal selling can be the most effective

marketing tool for this niche. Pic wears sales agent willpersonally visit the central offices of these groups and willexplain and market the entire product concept to them.

Once Pic wear establishes itself as a prominent brand in theindustry, large scale advertising could be done throughnewspaper ads and television commercials to reach idermarkets and increase market share.

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3.6) Market Research

Before the launch of Pic-Wear, a research was carried out, to findout the potential of customized products. Especial emphasis wasgiven to customized clothing, to get a clear picture about thepotential of the target market of Pic-Wear. Secondary research wasalso conducted by analyzing the competitors and the productcategory, in order to create an effective category membership. Thisresearch helped to create the right value prepositions for thecustomers. The research also helped in establishing a competitive

edge over the competitors.

After the launch of Pic-Wear, the sales, the market and thecustomers will be closely monitored. For Pic-Wear to do well it willbe important to create brand awareness, that will be evaluatedfrom time-to-time. Information on the sales and the consumerpreference will give a picture about the consumer attitude towardsPic-Wear and the other competing brands. This information will giveus a proper feedback of the customer response to the offerings ofPic-Wear.

The change in the fashion or trend will also be closely monitored.Incase the market trends are shifting; Pic-Wear will try toaccommodate the changing trends. Potential fads will also beexplored, in order to create short bursts of profits from time to time.Keeping the market and the consumers into consideration will helpPic-Wear establish a strong brand equity.

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4.0) Financials

This section deals with how Financial Objectives will be met by achieving the marketingobjectives and what does Pic wear forecast its costs, sales, breakeven and growth to be in

present and as well as for future.

4.1) Breakeven Analysis

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Pic wear will initially breakeven at 184 units with Rs. 150 ascontribution per unit.

Monthly Break even units 118 unitsMonthly Break even sales PKR. 67260

Monthly Fixed Costs = PKR 27500

Variable Cost = PKR 335 / unitSelling Price = PKR 570 / unitContributuon = PKR 235 / unit

4.2) Sales Forecast

Pic wear forecasts its sales as neither too ambitious nor too conservative,it follows mild approach. Initially with the promotional budget a bit limited

Sales wont be much high; But Pic wear hopes to reach the break even inthe first month and go profitable in the second and onwards as more cashflows come in and promotional efforts are geared up.\The monthly forecast figure are as follows:

Sales Forecast in units

September October November

Sports Wear 30 50 70

Political and social rallies 35 90 80

Random users 50 70 95115 210 245

Sales Forecast in Sales Revenue

September October November

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Sports Wear 17100 28500 39900

Political and social rallies 19950 51300 45600

Random users 28500 39900 54150

65550 119700 139650

4.2) Monthly Expense Forecast

Monthly Expense Budget September October November

Web Site 2000 500 1000

Pamphlets 3500 5000 7000

Banners 12000 10000 15000

Sales Promotion 8000 8000 8000

Personal Selling 3000 3000 3000

Opinion leader expense 5000 5000 5000

Miscellaneous 3000 5000 6000

36500 36500 45000

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5.0) Controls

Pic-wear needs to monitor some key aspects of its marketing Mix.The most important among them is the quality of its products.Keeping in mind the high level of outsourcing involved in Pic wearsproducts, it is required that its suppliers are completely monitoredand also have good relations with. First of all the materials of theclothing and its fabric have to be bought with complete care and itshould be ensured that good quality colors are applied and theprinting is done in an absolutely fine manner.

Other things which need proper monitoring and control includeproper customer service provision by the employees and alsoensuring complete customer satisfaction in terms of both beforeand after sales customer service.

5.1) Contingency Planning

5.1.1) Difficulties and Risks

As of yet Pic-wear has no close competitors and Pic-wear isjust targeting major niches of a big niche, but there is apossibility that a competitor may penetrate in to the market atany given time and give Pic-wear a hard fight in terms ofbetter marketing mix.

It is possible that Pic wear may not continue its qualitystandards if it start focusing on volumes rather than the

performance standards of Pic-wear.

5.1.2) Worst Case Risks

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It may be possible that Pic wear cannot sustain as a goingconcern.

The supplier for Pic-wears manufactured products goes out ofBusiness.

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marketing management plan pic shirt

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