10 step marketing plan by o.c. akeel dalisay
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10 step marketing plan by o.c. akeel dalisay 10 step marketing plan by o.c. akeel dalisay Presentation Transcript

  • The Ten-Step Marketing Plan for Hickok (under Quality House, Inc.) Dalisay, Akeel Zean D. Ateneo Graduate School of Business November 2012 ph.linkedin.com/in/akeeldalisay
  • DISCLAIMER This Ten-Step Marketing Plan is part of the mandatoryrequirements of Prof. Remigio Joseph De Ungria’s AGSB MarketingManagement class. The data included in this report are based on publicly available datasuch as those on internet websites, news, package declarations, and publicreports. When appropriate, data are “masked” so as not to createunexpected conflicts. The reports are posted and linked on Slideshare and Facebook sothat there is easier sharing among students from different marketingclasses. ph.linkedin.com/in/akeeldalisay
  • COMPANY PROFILE The Hickok brand was established in Rochester, New York in 1909.It was established by Stephen Rae Hickok, who revolutionized themanufacture of belts, arguably fashions most popular accessory. In 1954, Hickok was launched in the Philippines through anexclusive agreement between Hickok Manufacturing Co., USA and QualityHouse Inc. This is, in fact, one of Philippines first licensing andmanufacturing arrangements made between a Filipino company and aforeign partner. Quality House, Inc. was incorporated in the SEC on March26, 1954 and is engaged in the manufacturing and trading of leather goodsunder the brand name of Hickok, Hickok Essentials, Winchester, andCaregg. Its major customers include SM Department Stores, LandmarkDept. Store, Robinsons Dept. Store. Ever Dept. Store. Among their majorsuppliers are C.G. Lejano Leather Industry, Tovilin Footwear, and Well Pack,Inc. ph.linkedin.com/in/akeeldalisay
  • COMPANY PROFILE cont. Hickok Philippines boasts quality leather goods made with thefinest leather hides sourced from all over the world. Every Hickok item is atestament to the superb craftsmanship and the meticulous eye for detail ofthe numerous skilled workers at the Hickok headquarters. Indeed, if thereis another component to Hickoks success, it is Hickoks craftsmen. Theyhave been with the company for so long, some for more than 30 years, soyou know that in every Hickok item is a longstanding tradition of excellenceand quality. Hickok’s local manufacturer, Quality House, Inc., is presently leadby Mrs. Carmelito Go, and crafts their world-class products in theirheadquarters in Sampaloc, Manila. They have a revenue mix of 85%coming from Hickok, and the remaining 15% from Hickok Essentials. ph.linkedin.com/in/akeeldalisay
  • Simply The Best…1. Hickok’s Primary Target Market are males and females belonging to the middle to high-income classes, preferably within the ages 35 above.2. Who loves high-end quality leather goods, such as bags, purses, belts, and wallets (they need leather goods for their everyday lifestyle such as bags, wallets, and belts; they want high-quality leather products that can give them the sophisticated look and feel; but they will demand products that will make their money worth).3. Prominent competitors include Fino Leather, Rusty Lopez (Centropelle), and The Leather Collection.4. Gap is all leather goods manufacturer offer high-quality products, reasonable prices, and great designs.5. Target market is approximately 26,000,000. Hickok’s market share is 11%. ph.linkedin.com/in/akeeldalisay
  • Customers want the best…6. Hickok boasts quality leather goods made with the finest leather hides sourced from all over the world. Each item is a testament to the superb craftsmanship and the meticulous eye for detail of its numerous skilled workers.7. Hickok’s price is quite expensive, just like its prominent competitors.8. Uses word of mouth, and its reputation for being more than 50 years in the industry9. Primary store locations are SM Departments Stores, Robinsons Department Stores, Landmark Department Stores, and Ever Department Stores. Manufacturing site is in Sampaloc, Manila.10. Relies primarily on word of mouth and the Internet. Lacks the necessary marketing efforts to win the greater market. They should invest on media and print ads to better capture the market. ph.linkedin.com/in/akeeldalisay
  • Males and females ages 35 above belonging to the middle to high-income classes• Hickok’s Primary Target Market are males and females belonging to the middle to high-income classes, preferably within the ages 35 above; they preferably employed (either in the public or private sector), and holds positions from staff to officers (depending on their income).• Who loves high-end quality leather goods, such as bags, purses, belts, and wallets that will make them look and feel sophisticated and will have a sense of belongingness, particularly in the corporate world.• Who wants recognition through the things they use and they wear; the “corporate look”.• Who loves fine leather goods, that has reasonable price and enduring quality.• 35 above, as lower age brackets will still settle for the sporty and trendy looks of the younger workforce. ph.linkedin.com/in/akeeldalisay
  • Abraham Maslow’s Hierarchy of Needs The feel of sophistication To be recognized as an eliteFeeling of belongingnessin the corporate world ph.linkedin.com/in/akeeldalisay
  • Abraham Maslow’s Hierarchy of Needs cont.• Target market would want to have a sense or feel of belongingness. As Hickok’s products bring the sophisticated look, target market will feel that they belong to the corporate world and will feel like an elite.• They want recognition from the people around them; colleagues, friends, officers.• Of course, the sense of belongingness and recognition are followed by self-actualization or self-fulfilment. ph.linkedin.com/in/akeeldalisay
  • Positioning Map NINE-YEAR AVERAGES 2010 NET REVENUES 2010 ESTIMATED MARKET COMPANY NAME (in P 000) SHARE ROE ROS FL ATO Running % Share PercentagePhilippines Light-Leather, Inc. 381,183 26.79% 26.79% 48.42% 20.08% 15.49 1.99Allegro Pacific (Philippines), Inc. 331,576 23.30% 50.09% -0.55% 0.44% 1.34 2.43VKC, Inc. 214,354 15.07% 65.16% 13.45% -2.76% -7.43 3.10Rusty Lopez Enterprises, Inc. 178,785 12.57% 77.72% -349.27% -1.65% -0.84 6.28Quality House, Inc. 162,053 11.39% 89.11% -1.36% -0.50% 10.74 1.44Fino Leatherware, Inc. 69,938 4.92% 94.03% 7.41% 3.11% 2.89 0.89The Leather Collection, Inc. 32,251 2.27% 96.30% -432.09% -10.03% 2.09 1.16H&A International, Inc. 28,134 1.98% 98.27% 16.09% 1.11% 7.80 2.14Knick Knack International, Inc. 24,573 1.73% 100.00% 23.12% 1.50% 15.74 0.87Total Revenues of Identified Firms 1,422,847 Estimated Average 15.23% 0.18% 5.31 1.75 ph.linkedin.com/in/akeeldalisay
  • Positioning Map cont. The LeatherBENEFITS Rusty Lopez Hickok Fino Leather CollectionReasonable PriceGreat designsQuality leatherExtensive marketingpromotions Price / Age Matrix 15 to 20 20 to 35 35 aboveHigh PriceLow Price ph.linkedin.com/in/akeeldalisay
  • Positioning Map cont.• Illustrated in the tables are the net revenues of the major players in the industry back in 2010, together with their market shares.• The lower table illustrates the target market and price bracket of the prominent players in the industry.• Though price range may not be far from each other, primary target market will be the issue among the players in the industry. Rusty Lopez may be marketed to the lower age bracket due to its lower price.• What these players offer to their market are identical; what differentiates is the marketing efforts and promotions. This is what Hickok lacks. They tested the water back in early 2000 by acquiring the services of two TV personalities to endorse their products. ph.linkedin.com/in/akeeldalisay
  • What HICKOK lacks? For the past decades, Hickok’s target market remains the same.The styles and designs of their bags and wallets somehow does not fit forthe younger generations whose sometimes after the name of a productalone, not the quality and the price. They attempted to penetrate the younger markets back in early2000’s, planning to acquire the services of a few collegiate players asendorsers; to capture students, especially college students. It is quite agood choice as majority of the college students are watching theirrespective schools’ games in the major collegiate leagues. However, theyended up with TV personalities Brad Turvey and Bernadette Allison, whoare household names that time. But they stopped the endorsementsthere. They haven’t had an endorser since that time. They should be aggressive in media and print ads to better capturetheir target markets. ph.linkedin.com/in/akeeldalisay
  • Brand Slogan ph.linkedin.com/in/akeeldalisay
  • Market Share based on Revenue NINE-YEAR AVERAGES 2010 NET REVENUES 2010 ESTIMATED MARKET COMPANY NAME (in P 000) SHARE ROE ROS FL ATO Running % Share PercentagePhilippines Light-Leather, Inc. 381,183 26.79% 26.79% 48.42% 20.08% 15.49 1.99Allegro Pacific (Philippines), Inc. 331,576 23.30% 50.09% -0.55% 0.44% 1.34 2.43VKC, Inc. 214,354 15.07% 65.16% 13.45% -2.76% -7.43 3.10Rusty Lopez Enterprises, Inc. 178,785 12.57% 77.72% -349.27% -1.65% -0.84 6.28Quality House, Inc. 162,053 11.39% 89.11% -1.36% -0.50% 10.74 1.44Fino Leatherware, Inc. 69,938 4.92% 94.03% 7.41% 3.11% 2.89 0.89The Leather Collection, Inc. 32,251 2.27% 96.30% -432.09% -10.03% 2.09 1.16H&A International, Inc. 28,134 1.98% 98.27% 16.09% 1.11% 7.80 2.14Knick Knack International, Inc. 24,573 1.73% 100.00% 23.12% 1.50% 15.74 0.87Total Revenues of Identified Firms 1,422,847 Estimated Average 15.23% 0.18% 5.31 1.75 ph.linkedin.com/in/akeeldalisay
  • Photo Gallery ph.linkedin.com/in/akeeldalisay
  • Photo Gallery of Competitors ph.linkedin.com/in/akeeldalisay
  • Hickok’s Present Mode of Marketing ph.linkedin.com/in/akeeldalisay
  • Hickok’s Website ph.linkedin.com/in/akeeldalisay
  • Rusty Lopez’s Website ph.linkedin.com/in/akeeldalisay
  • The Leather Collection’s Website ph.linkedin.com/in/akeeldalisay
  • Fino Leather’s Website ph.linkedin.com/in/akeeldalisay
  • Place• Hickok’s products are displayed and being sold at SM Department Stores, Robinsons Department Stores, Landmark Department Stores, and Ever Department Stores. They also have kiosks at smaller malls in the provinces. They are using the major malls as they cater more market and the chance of capturing them are better.• Manufacturing site is located along Manga Avenue in Sampaloc, Manila. Considered to be halfway of northern and southern NCR. They have the ease on delivering their products up and down the metro, and even the provinces as they have quick accesses to both NLEX and SLEX.• They are also shipped to provinces in Visayas and Mindanao and other parts of Luzon such as Pampanga, Tarlac, and Pangasinan.• They don’t offer yet the internet and phone orders except for distributors. ph.linkedin.com/in/akeeldalisay
  • Hickok’s Best Option• Hickok is one of the best in leather products, but their market remains the same. They should have a wider scope of the market for continuous boost in sales.• Word of mouth is credible, Internet is viral; but these are not enough to boost their sales better and be known to a wider market, especially the younger markets.• They should invest on heavy advertising such as TV and radio, and print medias. Hire a few prominent personalities and celebrities as endorsers.• Have designs that will cater for the younger market.• A lower price will also help.• Quality is unquestionable. I’ve been personally a user of their product since my young age.• Widen the product portfolio. ph.linkedin.com/in/akeeldalisay
  • SUMMARY1. Hickok’s Primary Target Market are males and females belonging to the middle to high-income classes, preferably within the ages 35 above.2. Who loves high-end quality leather goods, such as bags, purses, belts, and wallets (they need leather goods for their everyday lifestyle such as bags, wallets, and belts; they want high-quality leather products that can give them the sophisticated look and feel; but they will demand products that will make their money worth).3. Prominent competitors include Fino Leather, Rusty Lopez (Centropelle), and The Leather Collection.4. Gap is all leather goods manufacturer offer high-quality products, reasonable prices, and great designs.5. Target market is approximately 26,000,000. Hickok’s market share is 11%. ph.linkedin.com/in/akeeldalisay
  • SUMMARY6. Hickok boasts quality leather goods made with the finest leather hides sourced from all over the world. Each item is a testament to the superb craftsmanship and the meticulous eye for detail of its numerous skilled workers.7. Hickok’s price is quite expensive, just like its prominent competitors.8. Uses word of mouth, and its reputation for being more than 50 years in the industry9. Primary store locations are SM Departments Stores, Robinsons Department Stores, Landmark Department Stores, and Ever Department Stores. Manufacturing site is in Sampaloc, Manila.10. Relies primarily on word of mouth and the Internet. Lacks the necessary marketing efforts to win the greater market. They should invest on media and print ads to better capture the market. ph.linkedin.com/in/akeeldalisay
  • The Ten-Step Marketing Plan for Hickok (under Quality House, Inc.) Dalisay, Akeel Zean D. Ateneo Graduate School of Business November 2012 ph.linkedin.com/in/akeeldalisay