SWOT by forrests

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									Deanna Williams
Marketing 3010
Dr. Anthony Allred Marketing Plan September 11, 2007

Deanna Williams Marketing 3010 MWF 8am Business Description Executive Summary Product Idea 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. Competitive Advantage Price Guarantee 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 and colors.

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 Segmenting Targeting Brand Name Market Research Product Strategy Promotion Strategy Price Strategy Distribution (Place) Strategy Pg. Pg. Pg. Pg. Pg. Pg. Pg. Pg. Pg.

SWOT ANALYSIS 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: Internal Product Price Place (Distribution) Promotion External Competition (Growth Matrix) Buyer Power (MGM) Supplier Power (MGM) New Entrants (MGM) Substitutes (MGM) Economic Forces Social values and beliefs Demographic Political and legal forces Science and technology Natural resources Physical Factors

Communication Supplies Operations Channel Management Advertising Code of Ethics Sales promotion Form Personal Sales Service
Publicity PR

Outsourcing Service Information

Time Possession Place

Application: 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 FridaySaturday: 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 handbags. 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 www.patneddiez.com. 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 compete.

SEGMENTING 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

Geographic
Political boundaries, climate regions, population boundaries, geodemographic and zip code

Socioeconomic
Occupation, education, income, social class

Behavior Patterns
Type of store, time of purchase, number of units purchased, shopping frequency, media habits

Lifestyle/Psycho graphic
Activities, interest, opinions, values

Consumption Patterns
Frequency of use, heavy vs. light usage unit size, occasion, loyalty to brand, ownership of other products

lll

Consumer Predispositions
Product knowledge, benefits sought, consumer problems

Application: 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 and price.

TARGETING Definition: Selecting more of more segments, and developing products to meet the needs of those specific segments. List of Principles: Undifferentiated Differentiated Measurable Actionable Application: 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.

Substantial Accessible Differentiable 80/20 Rule

Majority Rule Concentrated Customized

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.

BRAND NAME 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 Mark Logo Tagline Trademark Application: 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.

Generic Family Co-branding Licensing Private- label

Easy-to-say Easy-to-remember Avoid Linguistic trap Short and Distinctive Positive association

Function Image Benefits User

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 nondesigners 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.

Logo Picture!!!

MARKET RESEARCH Definition: The process of collecting analyzing and interpreting data about customers….. List of Principles: Defining the problem Determining the Research Technique Gathering Data Ensuring the Quality of the Data Implementing the results Exploratory Research (Qualitative)
Consumer Interviews Focus Groups Ethnographies Case Studies Projective Technique

Sampling
Random Sampling Quota Sampling Convenience

Validity Reliability Representativeness New Product Development
Comparing mission Idea generation Screening Business Analysis Product Development Market Testing- Real customer - Real life situations

Descriptive Research
Cross-sectional Design Longitudinal Design Surveys

Cross-Sectional Design Longitudinal Design Surveys ??? Casual research Secondary Research Primary Reserach

Commercialization

Application:

My research question is, how should Miche purses create awareness for their new product?

PRODUCT STRATEGY Definition: List Principles: Packaging
Communication Containment Protects in Shipping Storage Usage (form utility)

MBNA (Retention Strat.)
200% X 4 yrs. Intangible (Make it tangible) Inside/outside Employees Inventory Evaluate Testimonies/Titles

Quality Dimensions of Goods
Performance Conformance Features Service ability Quality Product Reliability Aesthetics Perceived Quality Durability

Perishable
Demanding Forecasting System for Random Inseparable (separate yourself) Core competencies Leave the store Heterogeneity (Be consistent/Flexible)

Standardize (Red Rules) Customize (Yellow Rules) Creating Rules/ Policy
Customer Worth Put it in writing In Advance Be consistent Base on the Majority

Influences Expectations
W.O.M Needs Past Experiences Promotion

Customers worth Expectations Gaps
Gap1: manager/customer Gap2: resources Gap3: Employees Gap4: Promotion

Decline Stage Strat.
Modify product Decrease price Reposition

Determinants of Service Quality
Reliability Responsiveness Competence Access Courtesy Communication Credibility Security Understanding Tangibles

Discontinuous Innovations Dynamically Continuous Innovations Continuous Innovations Adoption of Innovation Process
Awareness Interest Evaluate Alternatives Trial Adopt

Barriers to Adoption
Compatibility Complexity Observability Advantages Trial ability

Sources of New Product Ideas
Personal needs Job (Internal/External) New uses Product Limitations/Failures Product Success

Application:

PROMOTION STRATEGY

Definition:

List Principles: Personal selling Advertising
Creates- Awareness Benefits Associations-not sales Limitations-Low credibility High percent not interested Ad clutter

Promotion Objectives
Profit Sales Retention

Position
Benefits Awareness

Promotion Basics
Inform Persuade Remind

Public Relations
High credibility Free

Sales Promotion W.O.M/Buzz/Viral
Samples Referrals Testimonials

C.A. B Perceptions
Exposure Attention Comprehension/Retention

Guerilla Marketing (catch off guard) Promotional Budget
Objective/task Percent sales Competitive Parity Affordability Cooperative Combination

P.I.E.PP Product Placement Cause Event Sponsorship Push vs. Pull Strategy Advertising Types
Product Institutional Advocacy Public Service Direct Action/Index

Effective Advertising
Attention Understood Believe Remembered Likeable Benefits

Advertising Appeals
Logical Emotional Celebrity Sex Fear Humor

Effective Spokesperson
Recognizable Likeable Attractive Overcome hardship Credible

Ad Formats
Story line Product benefits Slice of Life Life Style Still Life Association Montage Analogy Jingle

Application:

PRICE STRATEGY Definition: List Principles: Pricing Sales Growth Competitive Advantage Positioning Social Pricing Retention 3 c’s
Cost Competition Customer

Multiple Unit Pricing Reference Pricing Odd vs. Even Pricing F.O.B Pricing Prestige Pricing Legal Issues in Pricing
Price fixing Price discrimination Predatory pricing Deceptive pricing Dumping

Second Market discounting Skimming vs. Penetrating Captive Pricing Loss Leader Price Bundling

Application:

DISTRIBUTION (PLACE) STRATEGY Definition: List Principles: Break Bulk Accumulate Bulk Assemble and Sort Create Assortment Reduce Transactions Transportation and Storage Communication Repair Service Credit/Finance Risk taking (inventory/bad credit) Warehousing Inventory Management Reverse Logistics Application: ???Push vs. Pull Dual Partner Problem Non-traditional Channel Partner Gray Market Reverse Channels Channel Selection Considerations
Market mix Co. Resources Customers Availability Transportation Material Handling Order Processing


								
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