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Marketing Strategy
                     Learning Team – 1A
                     -   Darshak S J
                     -   Dianne Sison
                     -   Madhuranath R
                     -   Tanmoy Dey
                     -   Vincent Bermejo
MARKETING STRATEGY FOR CHOCOLATE
 Positioning
 Issues & Recommendation
 Analysis for Marketing Mix
   Product Strategy
   Placement Strategy
   Promotion Strategy
   Pricing Strategy
 Customer Profile Analysis
 Summary of Recommendations
SITUATION ANALYSIS
POSITIONING
    International




                                            High
                                                                         BRAND
                                                                         PERSONALITY
BRAND




                                               PRICE
                                                                     -    Couture
                                                                     -    International

                                                                         IMAGE
                                                                     -    Stylish
                                                                     -    Non-exclusive
     Local




                                            Low


                    Mass            Niche
                           MARKET
STRATEGIC RECOMMENDATIONS
 ISSUE
  Mismatch in Brand Projection & Perception

 RECOMMENDATIONS
   Enhance Brand Awareness & Brand Equity
   Enhance Consumer Experience
   Improve Brand Positioning


 TARGET
       POSITIONING
  BOUTIQUE CHAIN
   Target Niche Markets
   International Mix
   High pricing
PRODUCT
STRATEGY
PRODUCT PROFILE
                                  Current Situation

5:95 Product Portfolio; 5% In-House Designs: 95% Imported Australian Designs
                            Special                     Size Range
 Season       Utility                       Style                       Age        Price
                           Occasion                     (Australian)
 E-Winter     Party        Wedding        For Home      6 - X-Small     14-18     Budget
 L-Winter   Corporate      Funeral         Casual        8/10 Small     18-25    Better-To-
                                                                                  Budget
 E-Spring   Outerwear     Christening     S-Formal        12/14         25-30   HIGH END!!!
                                                         Medium
 L-Spring   Sportswear      B-Day          Formal       16/18 Large     30-35
E-Summer      Daily       Anniversar       Special        20 X-         35-40
                              y                          Large/!X
L-Summer      Street      Promotions    Haute Couture   22 1X/2X Plus   40-45

  E-Fall    Swimwear       For Gifts     Pre-a-Porter      22 2X        45-50
                                            (RTW)
  L-Fall     Lingerie       Others      Mass Market       24/26 3X      50-60

  Rainy/    Accessories                 Contemporary                    60-70
  Sunny
PRODUCT STRATEGY
                        The Retail Shopping Experience
•   Enhance the fashion literacy of the sales personnel, not only
    focusing on courtesy but product knowledge
    A personal shopper for established clientele; A brand Ambassador must be
    established to showcase Chocolate
    Create a comprehensive database of customers not only focusing on contact
    details & demographics, but include purchase history for style, season, vital
    stats, & utility.
•   Extend customer service through alterations, if required for free
    for a minimum purchase requirement; since most are made in Australia that
    cater to mid to plus size customers eliminating mid to petite sizes
•   A chocolate for every customer program w/ strategic alliances w/
    chocolate vendors, capitalizing on the choco name. In addition to the anti-
    depressive state of chocolate stimulants.
PLACEMENT
STRATEGY
LOCATIONS

 Shop-in-Shop   @ Rustan’s
   Makati
   Alabang
   Shangri-La Plaza
   Robinsons Place Ermita

 Standalone Stores
   Trinoma Mall, Quezon
   Cebu
   Davao
ISSUES

    Single aisle outlet – alongside non-boutique designer labels

    ‘Truckie’ does not complement boutique perception – mass
    stationed at public locations

    Co-existence of shop-in-shop & standalone stores – positioning
    dilution

    In store ambience & layout not conducive to expected customer
    experience

    Website placement channel – ineffective virtual store
RECOMMENDATIONS
       Widen aisle space to:
        Accommodate more brands
        Design boutique positioning in a shop-in-shop model

       Focus more on standalone boutiques for brand positioning

    ‘Truckie’ to be strategically placed at target residence or public
    hubs

    Develop store layout and ambience in line with brand theme
    Chocolate to
     create value-driven customer experience


       Develop virtual store – updated catalogs, customized & trial
        options to customers to create a virtual shopping experience
PROMOTION
STRATEGY
CURRENT PROMOTIONS




          Awareness Activities
          -   Facebook / YouTube
          -   Website / Blog

          Brand Building Activities
          -   Sponsorships for TV Shows
          -   Newspaper features
ANALYSIS

ISSUE ANALYSIS
 Expected Brand  Projection & Promotion are not aligned
 Value Proposition of the Brand is not being conveyed

 Brand Positioning is not clear for the customer



ALTERNATIVES ANALYSIS
 Provide a clear brand  message
 Utilize appropriate channels

 Possess right product mix
RECOMMENDATIONS
 MEDIA
     Ads & Features in
        Fashion Magazines
     Fashion Events
     Ads in selective OOH Media

 ONLINE     PROMOTION
   Enhance website to promote fashion
   Leverage Blog to develop credibility
   Create exclusive YouTube channel


 FASHION      TRUCK
     Personalized consumer experience
     Awareness in exclusive locations
                                           BOUTIQUE-on-WHEELS
CURRENT WEBSITE
PRICING
STRATEGY
STRATEGIES IN PRICING


 Cost Based pricing

 Competitor based pricing
 Value based pricing
Current Strategy
                                                DRESSES
               4,995
5,000

4,500

4,000

3,500
                                                                                  2,950
3,000                                                                 2,699
                                        2,495
2,500                                                                                     Mean:
2,000                       1,799
                                                       1,999                  1,950       2,486
                        1,399       1,395
1,500
         995
                                                                                          Mean:
1,000
                                                 899
                                                                                          1,336
                                                                599

 500

   0
        Chocolate      People are   Top Shop     Bench         Kamiseta       Mango
                        People
Current Strategy
                                             DENIMS

6,000
             5,295


5,000



4,000


         2,995
3,000

                                                                2,199
                                      2,099
                          1,999
                                                                            1,790   Mean:
2,000                 1,599                                                         1,747
                                  1,199                                 1,190
                                                      999
                                                            1,099                   Mean:
1,000                                           799                                 1,172

                                      NA

   0
        Chocolate    People are   Top Shop      Bench       Kamiseta    Mango
                      People
PRICING RECOMMENDATIONS


 Promote    CHOCOLATE as boutique store
 Use   a combination of Value Based & Competitors Based Pricing
 Change   competitors now to boutique stores –
   Tango, M)phosis, Bayo, Plains and Prints
 Maintain   the same price
 Differentiation   & customer experience will justify the high price
PRICING STRATEGY MAP

High


                               Tango
                               T&M




 Low

       Retail                          Boutique
                     Designs
CUSTOMER
CUSTOMER PROFILE
CURRENT P R O F I L I N G STRATEGY
 A-B segment
 20s – 30s



   YOUNG MOMS
      single wealthy non-working women                         ISSUES
                                                                -   Fragmented
                                                                    Market
   YOUNG FAMILIES                                              -   High threat of
                                                                    substitutes
      married entrepreneurs with children                      -   Low Frequency


   WORKING WOMEN
     single and married working women
PROFILE COMPARISON

                     CURRENT PROPOSED
 DEMOGRAPHIC         A-B             A-B
 PSYCHOGRAPHIC       Functional      Fashionable

 SHOPPING PATTERN    Occasional      Habitual

 BEHAVIORAL          Trend aware     Trend conscious & trendsetter

 LIFESTYLE           Home to work    Outgoing

 MEDIA               Online, TV      Magazines, Billboards, Online
STRATEGY SNAPSHOT
SUMMARY
Enchance CHOCOLATE CLOTHING retail shop brand awareness & equity
                   KRA                                                 KPI
 Establish alliances w/ local & foreign       Sign-up at 3 local & 3 foreign chocolate vendors that
 chocolate manufacturers.                     resonates with the store image
 Out-of-Home main road billboards & in-       1 billboard per rain/shine season for 1 month each
 mall posters to drive customer curiosity ;   @100k per month. 15 seconders in movie ads in movie
 magazine; social media & internet            houses in mid-season events.


 Enchance Customer Shopping Experience
                 KRA                                                 KPI
 Stimulate loyal customer purchases       50% visit to 100% visits; 2x a month to once a week
 Increase conversion rates of new         100% seasonal trainings of sales personnel, especially
 customers                                personal shopper & brand ambassador


 Migration from a purely Retail to a more focused Boutique business model
                KRA                                                 KPI
 Introduce Authentic Designs by       Tilt the balance from 5:95 to 50:50 within 24 months by
 Chocolate                            introducing fresh designs at least 2x to at most 4x /year
THANK YOU

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Marketing Strategy for Chocolate Clothing

  • 1. Marketing Strategy Learning Team – 1A - Darshak S J - Dianne Sison - Madhuranath R - Tanmoy Dey - Vincent Bermejo
  • 2. MARKETING STRATEGY FOR CHOCOLATE  Positioning  Issues & Recommendation  Analysis for Marketing Mix  Product Strategy  Placement Strategy  Promotion Strategy  Pricing Strategy  Customer Profile Analysis  Summary of Recommendations
  • 4. POSITIONING International High BRAND PERSONALITY BRAND PRICE - Couture - International IMAGE - Stylish - Non-exclusive Local Low Mass Niche MARKET
  • 5. STRATEGIC RECOMMENDATIONS  ISSUE Mismatch in Brand Projection & Perception  RECOMMENDATIONS  Enhance Brand Awareness & Brand Equity  Enhance Consumer Experience  Improve Brand Positioning  TARGET POSITIONING  BOUTIQUE CHAIN  Target Niche Markets  International Mix  High pricing
  • 7. PRODUCT PROFILE Current Situation 5:95 Product Portfolio; 5% In-House Designs: 95% Imported Australian Designs Special Size Range Season Utility Style Age Price Occasion (Australian) E-Winter Party Wedding For Home 6 - X-Small 14-18 Budget L-Winter Corporate Funeral Casual 8/10 Small 18-25 Better-To- Budget E-Spring Outerwear Christening S-Formal 12/14 25-30 HIGH END!!! Medium L-Spring Sportswear B-Day Formal 16/18 Large 30-35 E-Summer Daily Anniversar Special 20 X- 35-40 y Large/!X L-Summer Street Promotions Haute Couture 22 1X/2X Plus 40-45 E-Fall Swimwear For Gifts Pre-a-Porter 22 2X 45-50 (RTW) L-Fall Lingerie Others Mass Market 24/26 3X 50-60 Rainy/ Accessories Contemporary 60-70 Sunny
  • 8. PRODUCT STRATEGY The Retail Shopping Experience • Enhance the fashion literacy of the sales personnel, not only focusing on courtesy but product knowledge A personal shopper for established clientele; A brand Ambassador must be established to showcase Chocolate Create a comprehensive database of customers not only focusing on contact details & demographics, but include purchase history for style, season, vital stats, & utility. • Extend customer service through alterations, if required for free for a minimum purchase requirement; since most are made in Australia that cater to mid to plus size customers eliminating mid to petite sizes • A chocolate for every customer program w/ strategic alliances w/ chocolate vendors, capitalizing on the choco name. In addition to the anti- depressive state of chocolate stimulants.
  • 10. LOCATIONS  Shop-in-Shop @ Rustan’s  Makati  Alabang  Shangri-La Plaza  Robinsons Place Ermita  Standalone Stores  Trinoma Mall, Quezon  Cebu  Davao
  • 11. ISSUES  Single aisle outlet – alongside non-boutique designer labels  ‘Truckie’ does not complement boutique perception – mass stationed at public locations  Co-existence of shop-in-shop & standalone stores – positioning dilution  In store ambience & layout not conducive to expected customer experience  Website placement channel – ineffective virtual store
  • 12. RECOMMENDATIONS  Widen aisle space to:  Accommodate more brands  Design boutique positioning in a shop-in-shop model  Focus more on standalone boutiques for brand positioning  ‘Truckie’ to be strategically placed at target residence or public hubs  Develop store layout and ambience in line with brand theme Chocolate to  create value-driven customer experience  Develop virtual store – updated catalogs, customized & trial options to customers to create a virtual shopping experience
  • 14. CURRENT PROMOTIONS Awareness Activities - Facebook / YouTube - Website / Blog Brand Building Activities - Sponsorships for TV Shows - Newspaper features
  • 15. ANALYSIS ISSUE ANALYSIS  Expected Brand Projection & Promotion are not aligned  Value Proposition of the Brand is not being conveyed  Brand Positioning is not clear for the customer ALTERNATIVES ANALYSIS  Provide a clear brand message  Utilize appropriate channels  Possess right product mix
  • 16. RECOMMENDATIONS  MEDIA  Ads & Features in Fashion Magazines  Fashion Events  Ads in selective OOH Media  ONLINE PROMOTION  Enhance website to promote fashion  Leverage Blog to develop credibility  Create exclusive YouTube channel  FASHION TRUCK  Personalized consumer experience  Awareness in exclusive locations BOUTIQUE-on-WHEELS
  • 18.
  • 20. STRATEGIES IN PRICING  Cost Based pricing  Competitor based pricing  Value based pricing
  • 21. Current Strategy DRESSES 4,995 5,000 4,500 4,000 3,500 2,950 3,000 2,699 2,495 2,500 Mean: 2,000 1,799 1,999 1,950 2,486 1,399 1,395 1,500 995 Mean: 1,000 899 1,336 599 500 0 Chocolate People are Top Shop Bench Kamiseta Mango People
  • 22. Current Strategy DENIMS 6,000 5,295 5,000 4,000 2,995 3,000 2,199 2,099 1,999 1,790 Mean: 2,000 1,599 1,747 1,199 1,190 999 1,099 Mean: 1,000 799 1,172 NA 0 Chocolate People are Top Shop Bench Kamiseta Mango People
  • 23. PRICING RECOMMENDATIONS  Promote CHOCOLATE as boutique store  Use a combination of Value Based & Competitors Based Pricing  Change competitors now to boutique stores – Tango, M)phosis, Bayo, Plains and Prints  Maintain the same price  Differentiation & customer experience will justify the high price
  • 24. PRICING STRATEGY MAP High Tango T&M Low Retail Boutique Designs
  • 26. CUSTOMER PROFILE CURRENT P R O F I L I N G STRATEGY  A-B segment  20s – 30s  YOUNG MOMS  single wealthy non-working women ISSUES - Fragmented Market  YOUNG FAMILIES - High threat of substitutes  married entrepreneurs with children - Low Frequency  WORKING WOMEN  single and married working women
  • 27. PROFILE COMPARISON CURRENT PROPOSED  DEMOGRAPHIC  A-B  A-B  PSYCHOGRAPHIC  Functional  Fashionable  SHOPPING PATTERN  Occasional  Habitual  BEHAVIORAL  Trend aware  Trend conscious & trendsetter  LIFESTYLE  Home to work  Outgoing  MEDIA  Online, TV  Magazines, Billboards, Online
  • 29. SUMMARY Enchance CHOCOLATE CLOTHING retail shop brand awareness & equity KRA KPI Establish alliances w/ local & foreign Sign-up at 3 local & 3 foreign chocolate vendors that chocolate manufacturers. resonates with the store image Out-of-Home main road billboards & in- 1 billboard per rain/shine season for 1 month each mall posters to drive customer curiosity ; @100k per month. 15 seconders in movie ads in movie magazine; social media & internet houses in mid-season events. Enchance Customer Shopping Experience KRA KPI Stimulate loyal customer purchases 50% visit to 100% visits; 2x a month to once a week Increase conversion rates of new 100% seasonal trainings of sales personnel, especially customers personal shopper & brand ambassador Migration from a purely Retail to a more focused Boutique business model KRA KPI Introduce Authentic Designs by Tilt the balance from 5:95 to 50:50 within 24 months by Chocolate introducing fresh designs at least 2x to at most 4x /year