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INTERNATIONAL MARKET ADVISORS “BE SUCCESSFUL, BE STYLISH, BE REISS.” MARKETINGPLAN Entering The Netherlands Matteo Giovannangeli Sara Chaaby Thomas Lucas
Executive Summary All you can find in the presentation in one slide... If this marketing plain would fail, we have also a Plan B (POLAND or POLAND+DE BIJENKORF), but it is not the case because... INTERNATIONAL MARKET ADVISORS UNBEATABLE COMBINATION
Which is the current position of Reiss REISS has been being a very successful menswear and womenswear brand with a spread retail network all around the UK and Ireland. Factors that have contributed:
What went well -Settle the brand in the UK -Proposing a unique offer: Clothing (good design, quality, value) and store experience with a clear identity. -Own label range, Reiss can be only purchased in Reiss store -Reiss had a good visibility in a lot of fashion magazines What went wrong -The brand hasn’t be able to have reputation out of the UK -No web-shop Market Overview & Situational Analysis
Internal Analysis: strengths, weaknesses and measures of capability REISS UK REISS INTERNATIONAL
The preliminary assessment of strengths and weaknesses and their implications REISS Strengths Weaknesses TO REACH THE OBJECTIVE -25% increase of international sales -8% internal rate return -Bridging brand -Store experience -Unique lifestyle -Clothes quality -Marketing -Unefficient website -International Branding -International mngt skills -Facing with economic crisis -Defeating the competitors -Attract middle class -Fashionable people -Business people -Exploiting the communication network ..to solve for.. ..to exploit for..
External Analysis and the market audit SLEPT ANALYSIS Social: The lifestyle is similar to the British one and there is style-fashion consciousness. Fashion is important in the Dutch culture. Legal: The Netherlands’ trade policy is the same as that of other members of the European Union that means free movement of people, goods, services and capital with the U.K. Economic:
COMPETITOR ANALYSIS The competitors - HUGO BOSS: 23 shops in the NL, online web store, most dangerous competitor of Reiss, target group and prices are almost the same, the brand is internationally known and profitable - ZARA: More than 15 stores in the NL, worldwide brand awareness - DKNY: 6 shops in the Netherlands COMPETITIVE WEAKNESSES
The preliminary assessment of the opportunities and threats: the issues that emerge from the analysis including the critical succes factors REISS Cri.Succ.Factors Key issues TO REACH THE OBJECTIVE -25% increase of international sales -8% internal rate return
-Middle class -Fashionable people -Business people -Wide communication network Threats Opportunities
Critical Issues Analysis STRATEGIC PRIORITIES -Creation of a webshop to have a bigger platform -Adoption of strategies with an high level of control such as Wholly Owned Subsidiaries MARKETING PRIORITIES -High customer service level -Hiring staff experienced in the dutch market -Promotion -Focusing on early adopters HOW TO SOLVE THIS ISSUES?
The principal assumption underpinning the plan THE SCOPE FOR LEVERAGING CAPABILITY CRITICAL SUCCESS FACTORS
BRIDGING BRAND: Reiss is a unique brand for its position
STORE ENVIRONMENT : The store environment is carefully considered with staffing, merchandising, music and seasonal graphics.
CLOTHES QUALITY: These are crucial factors for our fashionable customer and for our main target group of business people.
UNIQUE LIFESTYLE: r a unique style to differentiate themselves from the others that only REISS is able to offer.
MARKETING: Marketingis an important key activity of REISS that places the emphasis on the statement brand.
PROBABLE CUSTOMER The probable customers of Reiss will be EARLY ADOPTERS and INNOVATORS, because Reiss has no reputation . For this reason only the trendsetter will be willing in buying it. REISS
The Target Market & its characteristics CONSUMER ISSUES Be successful, Be stylish, Be Reiss....for people want to be stylish in the office with colleagues and in the terrace with friends, because Reiss is not only a style...it is lifestyle !! STRATEGIC GROUP: The customer of Reiss is a power-hungry person, with good taste and sensible about art and culture. He is an innovator about fashion and loves being trendsetter and distinguishing himself from the others; for him individualism is a must. Matthew is an ambitious 25 years old guy and he has just graduated in International Management. Now he is working in a multinational company and when he is at work he likes wearing fashionable clothes to be noticed and distinguished from the colleagues, but always respecting the business dress-code. After work he usually meets his friend to have a drink on a terrace, having high-culture conversation about art and culture; when he is with his friends he loves being the most glamorous, but wearing casual and comfortable clothes. BE STILISH BE SUCCESSFUL BEREISS SEGMENTATION: People from middle to high middle class TARGET: Business people and fashionable people looking for innovation POSITIONING: High quality and design for affordable price (Cheap-Chic)
The preliminary marketing objective The AnsoffMatrix Competitive advantages: -Cheap-Chic, Reiss is an affordable luxury -Innovations such as Augmented shopping Experience Profit Forecasts Why Market Penetration? We penetrate an existing market with an existing product. For gaining competitors’ customers REISS will sell the products, the clothes, inside a better box, the Augmented Shopping Experience. The objective will be completely reached with three shops. Increase of International Sales (27,3%) , Return on Investment (11,7%).
The positioning statement The Needs and wants Circle of the REISS Customer
The marketing & competitive strategy & the competitive stance STRATEGY -3 Wholly owned Subsidiaries (Amsterdam, Rotterdam, The Hague) -After 3 years starting with the Franchising and the Webshop. THE BIG IDEA Be successfull, Be stylish, Be REISS. Not o buy a style, but a lifestyle COMPETITIVE TARGETS A competitive target is the early adopters. They are usually young men and women, ambitious and willing of uniqueness APPROACHES TO LAVARAGE CAPABILITIES -PROMOTION: Amsterdam Fashion Week, Sponsorship KLM Golf open, Mag. Advertising -LOYALTY MARKETING: membership -EXCELLENT CUSTOMER SERVICES: new shopping formula THE COMPETITIVE STANCE REISS bridges the gap between low and high price fashion brands SEGMENTATION: People from middle to high middle class TARGET: Business people and fashionable people looking for innovation POSITIONING: High quality and design for affordable price (Cheap-Chic) BREAKING POINT AUGMENTED SHOPPING EXPERIENCE:this new concept of shopping formula consist in three main innovations: Personal Shopper, Reiss Bar, Reiss Meets Art.
The management of the seven Ps of the marketing matrix ** Charged * For members
The development of the brand COMPETITIVE ADVANTAGE Reiss offers high quality fashionable clothes for an affordable price BRAND VALUES Being unique and adjust to the needs and wants of our customers. THE BIG IDEA AND BREAKPOINT THINKING OUR PROPOSITION: Be successful, be stylish, be Reiss. REISS’s clothes are not just clothes, it is a lifestyle. By buying Reiss you join the REISS entourage, that is made of successful and stylish people. The package in which the product will be sold is the AUGMENTED SHOPPING EXPERIENCE:this new concept of shopping formula consist in three main innovations. PERSONAL SHOPPER: it’s more than a simple shop assistant, it’s your own stylist and host who will take care of you in during your “augmented shopping experience”; you can also private consultation with him to understand which is the style that fits you the best. REISS BAR: a bar installed in the store will allow Reiss customers to network with people of the Reiss entourage REISS MEETS ART: this is a brand new store concept in which fashion and culture are combined. Weekly art exhibitions will be arranged in the shop with the collaboration of students at universities and art academies. -- ++ MARKET MAPPING ARMANI REISS HUGO BOSS DKNY FCUK BAKER ZARA DESIGN THE BASES FOR DIFFERENTIATION AND COMPETITIVE ADVANTAGES A new concept of product and shopping formula, that means selling a “lifestyle” through an “augmented shopping experience” SELLING PROPOSITION ‘Selling style as a way of living’ -- EXPERIENCE
Budgets – 5 years plan The total budget needed for the 5 years plan is 9.463.223£
Review & possible reformulation of the objective Objectives: - 25% increase of international sales - 8% internal rate return According to this forecasts REISS will be able to reach the objective within three years with the opening of three shops.
The Action Plan CURRENT SITUATION REISS is in the UK and Ireland with 28 wholly owned shops and 4 concessions. After a profitable year it want to develop internationally by starting from the Netherlands TACTICS HOW CAN REISS GET CONTACT WITH THE CUSTOMER? STRATEGY Opening ofthreestores in the main shopping streetsof the biggestcities in the Ranstad area. …afterthreeyears… Augmented Shopping Experience Reiss Bar Reiss meets Art Personal shopper ROTTERDAM STORE Lijnbaan AMSTERDAM STORE P.C. Hooftstraat THE HAGUE STORE Noordeinde Promotion FashionWeek Sponsorship Advertisement FRANCHISING WEBSHOP HOW CAN REISS KEEP THE CONTACT WITH THE CUSTOMER? Loyalty Marketing Gift and Loyalty card Promo-Newsletter from the website
Implementation & Control Issuesofresponsibility and accountability INTERNAL MARKETING -Trainings for internal staff (personal shopper, managers...) for the creation of a brand philosophy. -40% discount for the internal staff -Creation of company event to build a family climate (cultural event, company dinner...) -Practicing participative hiring: involving current employees in the process of hiring new employees. -Ensuring equitable recognition and reward: the company must exercise employee recognition with reward to what employee has achieved (sales bonus). -Demonstrating fairness during hard times: fair treatment of employees when faced with hard times and difficult moments like death of the near family members. REISSUK THE MANAGEMENT TEAM is responsible and accontable for: -The management and mainteinance of the webshop -Managing the training and recruiment of the Dutch management team -Managing the logistic and distribuition to the Netherlands REISS NETHERLANDS The McKinsey 7S THE DUTCH MANAGEMENT TEAM is responsible and accountable for: -Controlling the finacial trends of the dutch retailers network -Managing the training and recruiment of the Dutch human resources -Managing the logistic and distribution to the stores Reiss Franchising control Reiss stores control STORES MANAGERS are responsible and accountable for these issues: - Checking store staff performance - Checking the customers service is on the foreseen level - Checking the stores are on track with the financial objective of REISS - Managing stores inventories
FRANCHISING MANAGERS are responsible and accountable for these issues:
Controlling the franchisee respects the values of REISS
Controlling the franchisee obey the contract rules of franchising
- Controlling the financial performance of the franchisee Deadlines, intermediate targets and measures
Contingency thinking According to our forecast the chance of failure in the Dutch market are really low because of this assumptions: 1-High compatibility between UK and The Netherlands in fashion tastes 2-High compatibility between UK and The Netherlands (ex. Unilever, Shell) 3-Stable and wealthy economy According to us the only risky factor in reaching REISS objective could be: 4-Impossibility to gain a part of the market because of high quantity of competitors If the assumptions 1 or 2 prove not to be valid or the risky factor 4 istoo high, it means that The Netherlands is not compatible or the competitiveness is too high so the plan is... If the assumptions 3 proves not to be valid be reached, it means that The Netherlands is having an economic recession, so the new plan is... WHAT IF? Entering a new country adopting the same Marketing plan. The new country is POLAND; Poland is the 6th largest economy in the EU and is currently considered to have one of the fastest growing economies in Central Europe, so the growing polish middle class can be targeted by REISS We advise to stay still in the Netherlands, because is a very compatible market, in this way REISS can build a reputation and wait for an economic upturn. We advise a very cheap strategy: CONCESSION WITH DE BIJENKORF