Dr. Anthony Allred
September 11, 2007
Miche purses have come up with one purse that goes with every outfit for ladies
of all ages. There is no need to buy multiple purses when one magnetic black purse with
multiply choices of fashionable shell covers exists. This basic 9x11 triangular black purse
is made of a cotton/spandex blend that is washable, yet durable. It has two handles along
with a detachable shoulder strap. The purse opens widely from the top, allowing easy
access to items inside. To keep the purse closed, a mental magnetic latch is near the top
inside of the purse. Sewn in underneath the fabric of the purse is a strong magnetic sheet
that lines the entire outside of the purse. The magnetic sheet then magnetizes to a purse
shell cover. The purse shell hugs the outside of the black purse, giving it a different look
and color. The same black fabric is sewn on the inside of each shell to have it blend into
the black bag. The shell then closely fits the handbag, so that it is difficult to tell that the
purse is changeable. Inside the purse shells is also the same strong magnetic sheet that
magnetizes to the basic black purse. Because of the strong magnets the shells will not
come off, unless you take it off by hand. These purse shells come in an array of colors,
fabrics, and leathers. The shells used are made of real leather and silver accessories to
give a fashionable look. Some shell covers are made with a durable fabric. New shells are
always added to the collection in order to update new trendy fashion styles.
These purses can be purchased at Fashion Place Mall, where purse booths are set
of for sale. Miche purses can also be purchased online at michebags.com, where all
possible shells may be viewed.
The price of this bag is 60 dollars, including two covers of the customers’ choice.
Each shell purchase after the first two covers is 20 dollars each.
The Price of the purse is a competitive advantage because the customer is getting three
purses for the price of one. One leather triangular purse from purseboutique.com ranges
in cost from 35- 80 dollars, while high fashion name brand bags like Coach or Gucci cost
anywhere for 200 to thousands of dollars. The purses bought from the competitors are
usually one color that goes with selected outfits, whereas the black purse can be carried
with or without any shell. A simple black purse can change into a different look or color
by attaching one of the shells. For the first purchase of the black purse and two shells, the
customer is really paying 20 dollars each for 3 purses. The additional shells are at an
affordable cost of 20 dollars, which makes it more affordable to invest in different styles
Guarantee is another competitive advantage for the Miche purses. Most
inexpensive handbags make no mention of a guarantee for the lifetime of the purse. Only
when you spend thousands of dollars from companies like Gucci, do they guarantee their
product. Miche will make the buyer aware of the guarantee, knowing that it is a lifetime
guarantee product. This fact will not be hidden, but out in the open to customers.
There is a guarantee on the black bag because of its necessary part in completing
the product. Without the proper use of the black purse, the other product shell purchases
would not work. For this purpose, the guarantee includes a lifetime guarantee for the
black purse magnets. If the black purse is not magnetizing to the shells, then the purse
will be replaced with a new one.
Customers can take their purses to the Utah mall booths or email Miche’s purses
at miche.com for a replacement purse.
Table of Contents
Executive Summary Pg.
SWOT Analysis Pg.
Brand Name Pg.
Market Research Pg.
Product Strategy Pg.
Promotion Strategy Pg.
Price Strategy Pg.
Definition: SWOT analysis is the identification of meaningful strengths (S) and
weaknesses (W) in the organizations internal environment, and opportunities (O) and
threats (T) outside the organizations, the external environments.
List of Princiles:
Product Communication Competition (Growth Matrix)
Price Supplies Buyer Power (MGM)
Place (Distribution) Operations Supplier Power (MGM)
Promotion Channel Management New Entrants (MGM)
Advertising Code of Ethics Substitutes (MGM)
Sales promotion Form Economic Forces
Personal Sales Service Social values and beliefs
Publicity PR Demographic
Outsourcing Time Political and legal forces
Service Possession Science and technology
Information Place Natural resources
Place (S1) Distribution of the purses will be an organized process where the Miche
purses will be transported from the purse manufactures and then sent by semi-trucks to
Salt Lake City, Utah. In Salt Lake City is where Pro Star Fulfillment will be responsible
for the warehousing, inventory management, order processing, and material handling. Pro
Star Fulfillment has 13 years of experiencing in outsourcing. They provide shipping in
many locations. “The fulfillment center is strategically located at the gateway to the
nation's distribution lanes providing lower cost nationwide transportation. This allows the
distribution of your product to reach both east and west coast customers in an affordable
and timely manor.” All of the Miche products would be stored in the warehouse and also
shipped to homes. The orders would come to Pro star by Internet and then they fill the
orders within 24 to 48 hours after the purchase. Pro star also has a call center in which
costumers can call with any questions about shipment, or the actual product. The service
they provide is done by how many orders are filled, unlike some shipping companies that
set their services at a flat rate. This companies experience, low rates, and distributions
method will aide in getting the product to the customer in a timely manner and saving in
expenses. ( http://www.prostarfulfillment.com/)
Promotion- (S2) Currently, Miche purses has focused on reaching customers by the
Internet and local Utah sales. In Utah, personals sales are achieved through personal
Miche bag shows and at one kiosk in Fashion Place Mall in Utah. The personal Miche
bag shows are done by request of customers. The customer host a show in which Miche
representative come and show their product, along with new shells to 10 or more woman.
Some free Publicity Public Relations media has been achieved through ABC4- “Good
things Utah” The owners Michelle Romero and Annette Cavaness, showed their product
on this show, creating awareness in Utah. The plan for Miche is to stretch its awareness
by advertising on infomercials. A date has been set in 6 months for Miche purses to be
sold on TV. This promotion will help reach others who do not shop on the Internet, better
inform customers, create awareness of the product and reach others outside of Utah.
While selling Miche purses on the infomercial, opportunities of sales promotion, such as
special discounts or receiving and additional shell will be given to those that buy by
infomercial. This promotion will be used to create urgency in purchase.
Using the promotions of sales promotion, publicity public relations, ad personal
sales will provide opportunities in sales, resulting in further profit. That profit will then
be used toward further advertising to compete with competitors.
Time (W1): A Miche purse can only be bought in person at one location, the kiosk at
Fashion Place Mall. There hours are Monday-Thursday: 10:00am-9:00pm Friday-
Saturday: 10:00am-10:00pm, Sunday 12:00 to 6pm. This can only reach a limited amount
of customers within the allotted time and who live in the area. The Internet is the main
access to all the Miche purses, but does not become an automatic purchase where you
give the money and instantly receive the purse. The purse will arrive to the wanted
location within one week. This could turn away buyers that want or need a purchase
immediately for a special event or those costumers who do not shop online.
Information (W2): Information about the product is not easily accessible to possible
costumers. A limited amount of information is given on the web site michebags.com, if
online users find the website. Information is given to those that shop at the Miche booth
at Fashion Place mall, but that only reaches a limited amount of people that live in that
area. Information about Miche purchases was given on the ABC4- “Good things
America,” but only reaches those that watched the program. The viewers are then told to
go to the website for more Miche information, but again the information is limited. If one
wants to find out how to purchase one of these purses they can’t just give a credit card
number, name and address, but must email one of the owners to find out how. Milward
Brown Intelliquest (shop.org) found that “women in the US use the Internet for product
information before making a purchase and 33% research products and services online
before buying offline in April 2001.” This makes important to have valuable information,
to help with possible research, which could later lead to a purchase.
Demographic (O1) : Miche purses have the advantage of providing service for women of
any age, race, ethnicity, etc. because of the different purse selections. Bright, colorful
purses may attract the younger women, whereas a simple leather purse may attract older
woman. Purses are made of different fabrics and styles appealing to different individuals
of different demographics. More and more women are working, not leaving time for
shopping. Having the Miche purchases online makes it available for easy shopping and
purchasing. The Miche purse allows customers to always have one base purse, changing
it with different shells. This makes it easy, convenient, and inexpensive for all buyers.
Marketresearch.com says that
Attitudes towards shopping are changing, along with changes in lifestyles. “The
increased possibilities of Internet and home shopping. For the former, consumers now
want efficient and quick solutions. For shopping for clothing and non-essential items,
expectations are building for environments that entertain, inform and make a trip to a
shop worthwhile. Women are still far more inclined to value shopping as a social and
therapeutic activity.” This shows that customer behavior is changing and having shopping
on the Internet meets their needs. It provides them with efficient and quick solutions.
Supplier Power (O2) Miche purses have an advantage in the purse industry because no
one else has leather changeable shells. It is a newer invention. Other purses have been
made with pictures and plastic and reversible clothe bags, but Miche has created a new
elegant purse that can change the complete look. Today, they are the company that can
provide one base purse that will fit many different stylish shells. They are the only
supplier of a purse with a base and multiply shells.
Competition (T1) Miche purses competitors are high-fashion bags, reversible bags and
purse art bags. The high fashion bag brands are Gucci, Louis Vuitton, JP Tod and Prada
Gucci has been around since 1906 and is considered, “the most famous,
prestigious, and easily recognizable fashion brands in the world,” by wikipedia.com.
Gucci brought in 7 million dollars in revenue worldwide in 2006 and was 46th for the top
100 brands by BusinessWeek magazine. They also have 425 stores worldwide.
Louis Vuitton specializes in luxury leather goods founded in Paris. It was
established in 1854, so it is a well-recognized brand (wikipedia.com)
Other more recent purses have also hit the market. Purse art, which is a plastic
bag with inner changeable artwork, can be found at pursueyourart.com. Small business
make reversible bags, made out of clothe that gives two purses in one at
Miche is a new company, with little awareness. Their name is not well known.
Miche is trying to bring a new idea to the purse market that gives multiple options , yet
trying to stay elegant and sophisticated.
New Entrants (T2) – The high- fashion purse designers are always keeping up with the
new trends and technology of pursues. Miche purses must also keep up with recent fads
and trends to keep their customers wanting more. In always advancing in the product, it
keeps the Miche purses new, fresh and hip. Once concern is also copy- cat entrants that
try to use a similar idea as Miche. It is important to get the name out and familiarize the
customer long term, so they will continue to purchase Miche as new entrants come to
Definiton: The process of dividing a larger market into smaller pieces based on one or
more meaningful, shared characteristics.
List of Principles: Demographic
Age, sex, race, ethnic, marital status, family size, family life cycle
Political boundaries, climate regions, population boundaries,
geodemographic and zip code
Occupation, education, income, social class
Type of store, time of purchase, number of units purchased, shopping
frequency, media habits
Activities, interest, opinions, values
Frequency of use, heavy vs. light lllusage unit size, occasion, loyalty
to brand, ownership of other products
Product knowledge, benefits sought, consumer problems
Demographic: The demographics selected for segmenting are women ages 18-25 (A)
and women ages 30-45 (B). The reason to choose age as a part of segmenting is because
these two age categories have different purchasing habits. Dbmarketing.com considers
women ages 30-45 to be women with children and/or business women. It considers
woman ages 18-25 to be young women.
Behavior Patterns: The behavior patterns selected for the segmenting are those that
Shop online (X) and those who shop in person at stores (Y). There are reasons woman
buy online and buy in person. Women ages 30-45 has less time between being a mother
and/or working. Then they are more likely to look for convenience and quickness in their
shopping. Those that shop at stores may look for personal service and an immediate
transaction. Some may not feel comfort with the technology of the computer and go to
the familiar store shopping.
The four segments are:
AX: This segment is women ages 18-25, who shop online. These shoppers are familiar
with using the Internet and do their personal shopping online. They spent time searching
for different products, finding the best deal.
AY: This segment is women ages 18-25, who shop in person at stores. These women feel
comfortable seeing their purchases in person.
BX: This segment is women ages 30-45, who shop online. These women save time by
shopping online. They find information and compare prices.
BY: This segment is women ages 30-45, who shop in person at stores. These women
have more time to shop around and find their desired purchase. They go more for style
Definition: Selecting more of more segments, and developing products to meet the needs
of those specific segments.
List of Principles:
Undifferentiated Substantial Majority Rule
Differentiated Accessible Concentrated
Measurable Differentiable Customized
Actionable 80/20 Rule
The target segment BX: women ages 30-45, who shop online is the target. These women
are either professional career women and/or stay at home mothers who spend, much of
their time at work or home taking care of the kids. They are Caucasian and live with a
middle class income. They don’t have time to shop for fashionable or trend attire at local
stores. They do their personal shopping online because they can get quality items easily,
quickly and conveniently online. They understand how to use the Internet and search for
information and good purchases. They want a product that will last and serve multiple
purposes. They span across the United States.
Measurable: One study was conducted for the Unilever Interactive Brand Center by
Cyber Dialogue in April 2001 and found “that more than one in four shoppers (28%) say
the Internet makes them shop more often, while one in three women (33%) say they
usually exceed their shopping budget online“(shop.org). This shows that the Internet is
becoming more of a shopping trend and measurable in terms of where individuals are
shopping. This target market is measurable in terms of finding age, sex, income level, etc.
Substantial: Jupiter Media Metrix (shop.org) found that women over the age of 18
account for 40.9% of all Internet users in the US as of May 2001. This shows that those
that are Internet users do more than just search the web, but find personal items through
online shopping. With more products available for purchase on the Internet, asubstantial
amount of women are turning to the easy access of their home computer for purchase.
There are a substantial amount of women that work and/or are mothers.
Definition: A name, a term, a symbol, or any other unique element of a product that
identifies one firm’s product(s) and sets them apart from the competition.
List of Principles:
Name Generic Easy-to-say Function
Mark Family Easy-to-remember Image
Logo Co-branding Avoid Linguistic trap Benefits
Tagline Licensing Short and Distinctive User
Trademark Private- label Positive association
Name: The current company name is Miche. The name comes from the owner and
designer of the purses Michelle. Her nickname is Miche and decided to use that name for
her product (michebagshows.com). It is not an easy word to say because it is pronounced
“Meeches.” When looking at the word, one might think of Mickey. That is not the name
that is wanted. It is not easy to remember because it does not tie into the product. It is
short, which helps with memory, but not distinctive. The benefit is that it is a unique
name and gives that high- fashion feel because of its uniqueness. The image this name
could receive if not pronounced correctly could be Mickey, which gives a younger
childish feel. If the name is pronounced correctly, then the image could be classy,
sophisticated, and high-end. Since this name is being established and has been seen by
many customers already it would be wise to keep the name because confusion might
occur if the name were to be changed. It would be important for the seller on TV or in
person to continually say the product name it is correct form because you want others to
pronounce it correctly, if they tell a friend.
If the name were to be changed, I would recommend their shell cover name Chelle,
because it relates to the shells being sold. It is short and easy to say. It reminds the
costumers about the extra shells they can purchase to cover their bags. Chelle also gives a
high-fashion feel and image because many famous designers us their name to sell the
product. Chelle sounds like a name, but also is the name of the covers sold. The benefits
from having a name that makes one think about the covers is more sales. Then will more
sales comes a familiarization with the product. The user would be benefited from this
name because it is easy to remember.
Mark: The current mark for Miche is an M that has rounded arches on top. The rounded
M is similar to the famous golden arches of McDonalds. A horizontal san serif mark
should be used in the top left hand corner of the M, so there will be no confusion between
the golden arches and the M of Miches. The Miche mark is black and white. This mark
can also be seen engraved on silver metal as a mark on the actual Miche purchases. The
M is elongated. The M arches are then separated by the word Miche. The M helps to
connect with the name Miche because of the beginning letter.
Logo: The Font style of Miche is a Modern font style. “Modern typefaces have serifs, but
the serifs are now horizontal instead of slanted, and they are very thin.” (The non-
designers design book.) The miche letters are not crunched together, but carefully spaced,
giving a simple calm look. Using a modern font style gives the idea that this product is
high fashion. Gucci, one of the competitors, also uses a similar modern typeface and
spacing for their logo. Gucci is high fashion, which Miche is also seeking.
Definition: The process of collecting analyzing and interpreting data about customers…..
List of Principles:
Defining the problem Sampling
Determining the Research Technique Random Sampling
Gathering Data Quota Sampling
Ensuring the Quality of the Data Convenience
Implementing the results Validity
Exploratory Research (Qualitative) Reliability
Consumer Interviews Representativeness
Focus Groups New Product Development
Ethnographies Comparing mission
Case Studies Idea generation
Projective Technique Screening
Descriptive Research Business Analysis
Cross-sectional Design Product Development
Longitudinal Design Market Testing- Real customer
Surveys - Real life situations
Cross-Sectional Design Commercialization
??? Casual research
My research question is, how should Miche purses create awareness for their new
Packaging MBNA (Retention Strat.)
Communication 200% X 4 yrs.
Containment Intangible (Make it tangible)
Protects in Shipping Inside/outside
Usage (form utility) Inventory Evaluate
Dimensions of Goods Perishable
Performance Demanding Forecasting
Conformance System for Random
Features Inseparable (separate yourself)
Service ability Core competencies
Quality Product Leave the store
Reliability Heterogeneity (Be consistent/Flexible)
Aesthetics Standardize (Red Rules)
Perceived Quality Customize (Yellow Rules)
Durability Creating Rules/ Policy
Influences Expectations Customer Worth
W.O.M Put it in writing
Needs In Advance
Past Experiences Be consistent
Promotion Base on the Majority
Customers worth Decline Stage Strat.
Expectations Gaps Modify product
Gap1: manager/customer Decrease price
Gap2: resources Reposition
Gap3: Employees Discontinuous Innovations
Gap4: Promotion Dynamically Continuous Innovations
Determinants of Service Quality Continuous Innovations
Reliability Adoption of Innovation Process
Access Evaluate Alternatives
Credibility Barriers to Adoption
Sources of New Product Ideas Advantages
Personal needs Trial ability
Personal selling Promotion Objectives
Creates- Awareness Sales
Associations-not sales Position
Limitations-Low credibility Benefits
High percent not interested Awareness
Ad clutter Promotion Basics
Public Relations Inform
High credibility Persuade
Sales Promotion C.A. B
Guerilla Marketing (catch off guard) P.I.E.PP
Promotional Budget Product Placement Cause
Objective/task Event Sponsorship
Percent sales Push vs. Pull Strategy
Competitive Parity Advertising Types
Effective Advertising Public Service
Attention Direct Action/Index
Understood Advertising Appeals
Effective Spokesperson Fear
Likeable Ad Formats
Attractive Story line
Overcome hardship Product benefits
Credible Slice of Life
Pricing Multiple Unit Pricing
Sales Growth Reference Pricing
Competitive Advantage Odd vs. Even Pricing
Positioning F.O.B Pricing
Social Prestige Pricing
Pricing Retention Legal Issues in Pricing
3 c’s Price fixing
Cost Price discrimination
Competition Predatory pricing
Customer Deceptive pricing
Second Market discounting Dumping
Skimming vs. Penetrating
DISTRIBUTION (PLACE) STRATEGY
Break Bulk ???Push vs. Pull
Accumulate Bulk Dual Partner Problem
Assemble and Sort Non-traditional Channel Partner
Create Assortment Gray Market
Reduce Transactions Reverse Channels
Transportation and Storage Channel Selection Considerations
Communication Market mix
Repair Co. Resources
Risk taking (inventory/bad credit) Transportation
Warehousing Material Handling
Inventory Management Order Processing