Graduation Thesis Presentation Marketing Plan fashionfitr your perfect fit Yanji Liu

Transcription

1 Graduation Thesis Presentation Marketing Plan fashionfitr your perfect fit Yanji Liu Company: Company Supervisor: School Supervisor: Second Reader: School: Course: FiftySix Avenue B.V. Mr. Robert J. Lugtenborg Mr. Simon van Renssen Mr. Thierry Tartarin Saxion University of Applied Sciences IBMS

2 Introduction 1. Research Problem 2. Research Objective 3. Central Research Question 4. Research Method 5. Findings & Solutions 6. Conclusions & Recommendations

3 Research Problem 1. Company Background (FiftySix Avenue) Small-size company Deventer Clothing web shop Business transformation Fashionfitr Online shopping tool Defining the right size

4 Research Problem 2. Problem Analysis New player Brand awareness & reputation Customer needs Actual return rate Market size No physical barrier Domestic market Costly to expand overseas Manpower

5 Literature Review Services Marketing (Lovelock, 2007) Essentials of Services Marketing (Lovelock, 2009) Marketing Management (Kotler, 2011) Integrated Advertising, Promotion and Marketing Communication (Clow, 2011) B2B Marketing (Minett, 2002) SELL (Ingram, 2012) Research Method for Business Students (Saunders, 2009)

6 Research Objective The objective of this project is to develop a marketing plan for fashionfitr at FiftySix Avenue B.V. by March 2014 aiming at reaching 10% market penetration among online clothing companies in the Netherlands within a year.

7 Central Research Question How can FiftySix Avenue B.V. introduce fashionfitr to online clothing stores on the Dutch market in order to achieve 10% market penetration by February 2015?

8 Research Questions 1. Micro-environment 2. Macro-environment 3. Meso-environment

9 1. Micro-environment

10 2. Macro-environment

11 3. Meso-environment

12 Research Method Descriptive Research Portraying market, industry, competitor, and customer. Mixed-method research Quantitative and qualitative data collection techniques Qualitative data collection techniques and procedures Desk & field research

13 Desk Research Passport GMID, INretail, Modint, CBS Statistics Netherlands, Thuiswinkel, Internal sources of FiftySix Avenue B.V., etc.

14 Field Research 1. Visiting trade fairs Webwinkel Vakdagen & Modefabriek 2. Interviews at Modefabriek 20 random, structured, taking notes 3. Telephone interviews 15 random, structured, taking notes 4. Face to face and telephone interviews 3 face to face & 1 telephone, semi-structured, audiorecorded 5. Observation at FiftySix Avenue B.V.

15 Research Question Research Method

16 Findings & Solutions 1. Internal Analysis 2. Macro-environment 3. Meso-environment

17 Internal Analysis 1. History 2. Organizational Structure 3. Goals and Objectives 4. Current Financial Status 5. Service fashionfitr 6. Proposition of the Service

18 History May, 2011 FiftySix Avenue clothing web shop November, 2012 Fashionfitr 1 st November, 2013 Official website of fashionfitr

19 Organizational Structure

20 Organizational Structure Decentralized Small-size Flexibility Quick-decision making (Strength 1) Inexperienced employees (Weakness 1)

21 Goals and Objectives Goals Reduce return rate To be profitable Environment protection Objective Build brand awareness in the domestic market and international market in the future Vision: to optimize the online fashion world and enhance the online shopping experience. Mission: To become a well-known problem-solving brand in the online fashion industry worldwide.

22 Current Financial Status Appendix F (p.67), balance sheet Current ratio Current assets/current liability = < 1.00 The company may not able to meet its upcoming obligations. (Weakness 2)

23 Service fashionfitr

24 Service fashionfitr Three clicks within 5 seconds User-friendly Less information requirements 1200 brands (Strength 2)

25 Service fashionfitr No sales, reputation, and low brand awareness among clothing web shops. (Weakness 3) The lack of evidence. (Weakness 4) The virtual fitting solution is 100% owned by Pelican B.V. based on the contract.

26 Proposition of the Service 11 out of 15 web shops (Positive) 2 out of 20 brands (Positive) 3 industry experts (Positive)

27 Internal Analysis Strengths: Quick decision making & flexibility User-friendly tool Weaknesses: Inexperienced employees No reputation & brand awareness Weak financial statues Lack of evidence

28 Macro-environment Findings: 40% of INretail s members move online. Number of physical shops go down 40% of them will disappear in 10 years 9.3 out of 16.8 million Dutch people bought goods online. It is increasing year after year. More web shops will be launched and more people will shop online. Market potential is positive for fashionfitr to grow in the future. (Opportunity 1)

29 Macro-environment Findings: Different compatibilities among browsers

30 Macro-environment Measuring Technology Manual measurement 3D body scanner with software Web-based body scanner software works with smart phone & webcam

31 Macro-environment Social Media Sizable users with sizable data (Threat 1) Big Data Fashionfitr with sizable data could provide accurate analysis to third parties. (Opportunity 2)

32 Macro-environment Sustainability 132 deliveries only generate 82 sales 15% 40% returned 50%, Zalando Increase efficiency reduce returns Protecting environment reduce transportation costs, emission, paperwork, etc. (Opportunity 3)

33 Macro-environment Threats: Social Media Opportunities: Growing market Big data Sustainability goal

34 Meso-environment 1. Market 2. Customer Analysis 3. Communication Channels 4. Competitor Analysis

35 Market Clothing Industry A size 8 in one brand may not be the same as a size 8 in another USA Today Uniqueness Style Differentiation Vanity sizing Girls Results in returns, low efficiency, and environment damage.

36 Market Market Size Top five - 40% market share (60% 5 years ago) Mono-brand & Multi-brand web shops Chamber of Commerce Thuiswinkel Fashionchick Thuiswinkel Fashionchick Top Five Zalando, Wehkamp, V&D, H&M, Esprit

37 Market Market Development and Trend Physical shops decrease App-based clothing stores through IOS & Android Fashionfitr app will be a potential opportunity in the future. (Opportunity 4)

38 Customer Analysis Customers Needs (Multi-brand) Number Monthly Page views (*1) Monthly Visits (*1) Return Rate (*2) Free Return Euro (*3) Cost Per Return (*4) % Free 5 10 euro % Free Transportation % No Small %. No (4.95) 1 5 euro Confidential No (2 6.75) Not clear % No Less than 1 euro Up to 20%. No Less than 5 euro % Free 10 euro % No Less than 1 euro 10 N/A N/A Confidential Free Confidential 11 N/A N/A 15 20% No Less than 1 euro % No None Less than % No (7) None % Free Average 5 euro % No Less than 1 euro

39 Customer Analysis Customers Needs Findings (Multi-brand): Number Monthly Page views (*1) Monthly Visits Web shop 2 50% - 60% (Highest return rate) Web shop 13 10% (Lowest return rate) Monthly page views and visits Return rate Web shop 7 vs. web shop 6 (*1) Web shop 12 offers a live chat popup. (Threat 2) Return Rate (*2) % % Up to 20% Less than %

40 Customer Analysis Customers Needs Findings (Mono-brand): Selling through agencies, physical stores, multi-brand web shops, and other channels. 7 out of 20 brands have web shops. 95% of them have the return rate of lower than 10%, except one has return rate of 10% - 20%. Less and no returns for those who sell through third parties.

41 Customer Analysis Multi-brand web shops are considered as potential customers Multi-brand web shops Priority to reach 181 (272) Zalando, Wehkamp, V&D

42 Customer Analysis Decision Making Units Multiple decision making units: Management team, Finance, Marketing, and Operation Departments. Wehkamp has 15 internal and 10 external programmers. Marketing department to reach.

43 Communication Channels Direct Contact Indirect Contact: 1. Modint 750 members in clothing & fashion accessories 2. INretail 16,000 members, mainly physical stores 3. Kega Its members include Score, Bristol, and Shoeby Trade show

44 Competitor Analysis Why analyze all competitors all over the world? 1. No physical barrier 2. Some web shops are international companies

45 Competitor Analysis Number of clicks Number of measurements Time (Second) Virtusize UPcload Fits. me True Fit Metail Verisize Option 1: Option 2: Measurements include length, bust, waist, sleeve, etc. Metail and True Fit require to create a virtual model.

46 Competitor Analysis Competitors Positioning Name Virtusize UPcload Fits. Me True Fit Metail Verisize Marketing Message The #1 virtual fitting solution. Get the size advisor for your website, providing the right size has never been easier. Fitting room sets the standard Find your true fit. Shop online with confidence in style and fit. The number one fitting solution

47 Competitor Analysis Market Penetration and Achievements Competitors with proofs and achievements (Threat 3)

48 Competitor Analysis Company Size and Financial Aspects

49 Competitor Analysis Pricing Schemes 1. CPA (Virtusize & UPcload) 0.15 euro 2. Subscription (Virtusize, UPcload, Fits Me, and Verisize) euro 3. Metail (6% - 10% of net sales value) 6 10 months contracts 30 days free trail Customization of the service button

50 Meso-environment Opportunities App-based Service Threat Live chat popup Competitors with proofs and achievements

51 Porter s Five Forces Model Competitive 6 major competitors 2 of them entered into the Dutch market No physical barrier for others to enter Two web shops have been reached 181 potential customers defined. Barriers to entry No physical barrier European law of free movements International web shops Threat of substitute service Social media Fasha Tailor-made clothes

52 Porter s Five Forces Model Bargaining power of customers Fashionfitr is not well-known It has not been tested yet Pricing strategy to fulfill customers needs Differentiation Bargaining power of suppliers Clothing brands data Partnership

53 Marketing Strategy Positioning Name Virtusize UPcload Fits. Me True Fit Metail Verisize Marketing Message The #1 virtual fitting solution. Get the size advisor for your website, providing the right size has never been easier. Fitting room sets the standard Find your true fit. Shop online with confidence in style and fit. The number one fitting solution Competitors: What, How, Why Fashionfitr: Why, How, What People do not buy what you do, people buy why you do it. (Sinek, 2010)

54 Marketing Strategy Marketing Mix Product Standard service Customized service Pricing All competitors offer similar solutions Customers may choose the cheapest one Competition based pricing

55 Marketing Strategy Pricing CPA Subscription Metail Subscription 1. Easiest one to apply for both 2. Small-size and big-size web shops 3. Off seasons and peak seasons 4. Web traffic is not reliable (Showed before) Metail 1. Detailed business information 2. Additional employees to calculate 3. Not practical

56 Marketing Strategy Pricing CPA is highly recommended Competition based pricing Option CPA Nonecustomized Customized 0.15 euro per comparison Free euro (Charge once) 1 X X 2 X X Test the effectiveness of the service with first movers. Ask the first movers to join the product development.

57 Marketing Strategy Marketing Communication Mix Sales funnel Quantify the number of prospects at each stage of the process. Different marketing strategies will be used at different stages to reach different customers in different levels.

58 Marketing Strategy Top of the funnel Generate sales leads Advertising Building brand awareness 1. Website A live chat window 2. Google AdSense Precise to target Budget 3. Trade Show Webwinkel Vakdagen

59 Marketing Strategy Level two of the funnel Quality sales leads Determine sales prospects It is respond those who have responded Mailing Copernica Mail Plus YMLP

60 Marketing Strategy Level three of the funnel To prioritize prospects whether they are qualified. Hand over to sales. Telemarketing Cost efficiency Provide detailed information for those who are interested in a further process. First conversation to understand their needs, willingness, ability to purchase, and reach decision markers.

61 Marketing Strategy Last stage of the funnel Preparing sales dialogue Close the sales Salesperson Free trail Target 181 potential customers 10% market penetration 18 potential customers to achieve Approximately 2 customers per month

62 Marketing Strategy Physical Evidence A flag with fashionfitr s logo Employee working card.

63 Budget Activities Mailing service Mail Plus Year License (Mailplus, 2014) 960,00 Website Live-chat Window 200,00 Exhibitor at Webwinkel Vakdagen Trade Show (Webwinkelvakdagen, 2014) General participation fee Price per m2 including stand construction x 4 (320,00 euro per m2) VAT 21% x ( ) Traveling Expenses and Food to the trade show (By car) x 2 days Physical Evidence Fashionfitr Flag Working cards Sub-total (euro) 240, , ,00 200,00 100,00 Google AdSense (Budget of 100 euro per day for the first month) 3,000 2*Telephone Expenses (55 euro per month of unlimited phone 660 call) (KPN, 2014) x 12 month Total 7059,20

64 Recommendations 1. Maintain fashionfitr s simplicity. 2. Position fashionfitr by WHY. 3. Test the tool with the first movers and ask them to join the product development. 4. Multi-brand web shop are potential customers. 5. Mono-brand are size data suppliers.

65 Thank you for listening!