Capture The Opportunity in Jeans Market - Presentation for Simulation Games
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The document discusses Drive Denim's plan to capture more of the growing jeans market. It summarizes that the jeans market, especially premium segments, is growing due to economic recovery and rising incomes. While Drive Denim is achieving its targets for men, it is struggling to gain share for women. The strategy is to move the women's line from economy to premium, leveraging the marketing approach used for the successful men's premium line, including product innovation, pricing, distribution, advertising, and a "couple concept" campaign to fuel growth.
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Capture The Opportunity in Jeans Market - Presentation for Simulation Games
- 1. MARKETING PLANNING & STRATEGY CAPTURE THE OPPORTUNITY IN JEANS MARKET Giang Phung 15845113 | Asiya Mahmoud 14418400 | Henna Karim 14285080 | Martina Perlasca 14445875 | Lucrezia Leali 14266911
- 2. TABLE OF CONTENT Jeans Market Overview Drive Denim vs. Competitors Strategy for future growth
- 4. 4 JEANS MARKET IS GROWING… • Companies are putting efforts to target the right segments. • Increase in demand thanks to higher purchasing power of consumers: Europe’s economy recovery UK unemployment rate drops • Rise of online shopping (convenience) - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Q1 Q2 Q3 Q4 Jeans market size (million euro) by gender segments Men Women Total *Note: market size was estimated by internal sales, market share and price *Source: Metrics and Analysis (Pearson. 2016)
- 5. 5 … ESPECIALLY THE PREMIUM SEGMENT • Customers are less concerned about finding the cheapest deal • Companies ‘with very strong brand recognition will survive’ • The increase in spending power for the young (16-24 years old) 48% 54% 65% 76% 25% 22% 20% 13% 27% 24% 15% 12% Q1 Q2 Q3 Q4 Price Segment Contribution Premium Mainstream Economy *Note: Premium includes Drive Denim Men and Venetus Men & women/ Mainstream includes LAB’L Men and Women/ Economy includes Drive Women and Petrol Men& Women *Source: Metrics and Analysis (Pearson. 2016)
- 6. 6 THE GROWTH WILL CONTINUE NEXT YEAR? SALES TIME Introduction Growth Mature Decline JEANS The Industry Life Cycle *Source: Industry Life Cycle (Sam, T. 2015)
- 7. DRIVE DENIM VS. COMPETITORS
- 8. 8 Drive LAB'L Petrol Venetus THE KEY PLAYERS ARE TRYING HARD TO POSITION AND DIFFERENTIATE THEIR BRANDS Drive LAB'L Petrol Venetus MEN High Price High Quality High Price High Quality WOMEN *Source: Metrics and Analysis (Pearson. 2016)
- 9. 9 30% 43% 43% 48% 25% 22% 17% 20% 27% 29% 25% 29% 28% 25% 28% 19% 30% 29% 27% 21% 29% 28% 27% 20% 22% 18% 14% 11% 24% 21% 15% 12% 23% 20% 15% 12% 20% 14% 15% 22% 20% 28% 41% 47% 20% 24% 33% 39% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Key Players Volume Share across Segments Drive LAB'L Petrol Venetus WITH SOME REMARKABLE RESULTS FOR THOSE WHO CAPTURED THE RIGHT TRENDS Men Segment Women Segment Total Jeans Volume contribution 33% 67% 100% *Source: Metrics and Analysis (Pearson. 2016)
- 10. 10 DRIVE DENIM IS ALSO ON THE MOVE… By setting our mission, objectives and product strategy • MISSION STATEMENT: Our mission is to deliver unique and different ‘fashion- experience’ for denim lovers. We aim to create a strong emotional connection via our products , which drives in long lasting brand loyalty. • PRODUCT STRATEGY: • Men: High price, high quality with sporty fashionable design and medium level of innovation • Women: Low price, low quality with fashionable design and high level of innovation • KPIs: • Brand Loyalty for Men • Brand Image for Men • Volume Share for Women
- 11. 11 DRIVE DENIM IS ALSO ON THE MOVE… By defining our target market – MEN • 49-60 years old male with middle to high annual income (25k and above), which accounts for 22.2% of jeans wear users • Regular users with high sense of fashion • Love sporty or premium designs with different fits and eco-friendly materials. • Loyalty status: medium to high Drive it extraordinarily!
- 12. 12 DRIVE DENIM IS ALSO ON THE MOVE… By defining our target market – WOMEN • Women from 49 to 60 years old, which accounts for 24.6% of the jeans wear users. • Low to medium annual income (15k – 45k), • Want fashionable designer jeans with acceptable price for daily use. • Loyalty status: low to medium Live in it!
- 13. 13 AND ACHIEVED OUR TARGET FOR MEN *Source: Metrics and Analysis (Pearson. 2016)
- 14. 14 YET, STRUGGLING TO GAIN SHARE FOR WOMEN *Source: Metrics and Analysis (Pearson. 2016)
- 15. STRATEGY FOR FUTURE GROWTH
- 16. 16 ECONOMY SEGMENT IS NO LONGER ATTRACTIVE ECONOMY *Source: Metrics and Analysis (Pearson. 2016) *Note: Economy includes Drive and Petrol - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q1 Q2 Q3 Q4 Volume sales of Women economy segment Drive Denim Women Petrol Denim Women Total Women Economy
- 17. 17 ALTHOUGH WE HAVE TRIED OUR BEST IN… Innovating the products: • Eco-friendly materials with variety of customization and designer Setting competitive price Having mass distribution: • Physical distribution: across Urban, Sub-urban and Rural areas • Medium Online Retail Putting effort in building brand image: • Worth-of mouth marketing • Social Media and Internet communication • TV commercial and catalogue marketing ECONOMY
- 18. 18 WHAT WOULD BE THE FUTURE PLAN? Relative Market Share MarketGrowthHighLow Low High MEN PREMIUM *Source: BCG Matrix (Martin, R. 2014). WOMEN PREMIUM WOMEN ECONOMY
- 19. 19 IT’S TIME TO GO PREMIUM… Product: Eco-friendly and sustainable products with variety of colours and fits. Economy of scope as the competitive advantage PREMIUM
- 20. 20 INTEGRATED MARKETING STRATEGY Price: Value Pricing Strategy Place: Selected premium stores and commercial centres, focus on Urban areas. Distribute the new women premium products into men’s current stores. Process: High level of personal service & train staff about new women premium products. People: Development and retention program for our staff to create great working environment and loyalty. PREMIUM
- 21. 21 INTEGRATED MARKETING STRATEGY Physical Environment: Medium design and decoration, consistent in shop layout and style. PREMIUM
- 22. 22 INTEGRATED MARKETING STRATEGY • Advertising: Fashion show events, Catalogue marketing, high-end fashion magazine PREMIUM
- 23. 23 INTEGRATED MARKETING STRATEGY • PR and Communication: • “Couple concept” communication and marketing activities • Invite David and Victoria Beckham as our brand ambassadors PREMIUM
- 24. 24 PREMIUM WOMEN BRAND LAUNCHING PLAN Q5 Q6 Q7 Q8Action Plan - Call for investment from shareholders - New product development and testing - Marketing concept testing - Teasers for product launch - Product launch in key cities - ‘Couple concept’ PR and communication campaign - Nationwide product launch (rolling) PREMIUM
- 25. 25 SUMMARY • Jeans market is growing driven by the increase of premium segments • All companies are trying hard to achieve better positions in the market • Drive Denim is doing quite well in men segment but quite struggling with the women segment • Economy segment is no longer attractive so it’s time to launch the premium segment for women • Utilise the current marketing strategy of men for women premium Follow the same strategy for product, price, distribution, store design and advertising Launch “couple concept” marketing campaign to fuel the growth
- 26. THANK YOU!
Editor's Notes
- Companies are investing more in customising their products to target the right segments. Increase in demand for consumer goods thanks to higher purchasing power of consumers: Europe’s economy is showing the first signs of recovery in two years: German and French consumer spending was boosted by a housing boom and Italy’s growth rate rose to 1.2 per cent from 0.8 per cent in the first quarter UK unemployment rate drops to lowest level in four years: Consumer spending records strongest monthly growth in four years. Demand for all types of consumer goods has gone up. Online shopping is on the rise: Convenience is the key influence
- With employment levels rising generally, especially among 16 to 24 year olds, the Chancellor said more spending by school-leavers is fuelling economic growth and helping all of us. The number of 16 to 24 year olds in work went up by 3 per cent in the last quarter, and the Chancellor told The Glass the government’s youth contract will help 500,000 young jobseekers into work in the next year.
- With the current growth rate of 20% (Q4 vs. Q3), we believe that Jeans market is in the stage of Growth and will continue to increase next year. However, the growth is slowing down and Jeans will start entering the Mature stage in 3 years.
- Company is trying to differentiate by positioning themselves with different product offers Our key competitors are quite consistent in delivering the brand image for both men & women: Venetus: high price, high quality LAB’L: low price, medium quality Petrol: low price, low quality We choose premium for men and economy for women because of the limited financial investment of the first stage. Thus, we just want to focus on men premium first.
- We are doing quite well in Men Segment but still struggling in gaining share for Women, which is the key segment in jeans market While our key competitor – Venetus is doing a very great job in developing premium segment for women and be the market leader in both Women and total jeans market We are the second one with the market share of 30%
- Economy is becoming a red ocean in which we can only grow by getting sales and share from competitors while the total economy segment cannot grow any further
- Lower investment in economy to focus on premium seems to be a right choice given the potentiality of this segment Therefore, we would like to launch another women brand in premium segment in order to capture the great demand there
- Economy of scope thanks to the utilisation of current production and marketing resources for Men. Product: Eco-friendly and sustainable products with variety of colours and fits to meet different needs.
- Price: Value Pricing Strategy – giving customers products that bring the values they requires. Place: Selected premium stores and commercial centres, focus on Urban areas. Distribute the new women premium products into men’s current stores. Process: High level of personal service to customers to deliver great shopping experience. Train staff about new women premium products. People: Development and retention program for our staff with the aim to create great working environment and loyalty.
- Still using high fashion magazines but with limited investment because print-ads are no longer the trend. Instead we will focus more on catalogue marketing and fashion show events to emphasize the luxury image.
- New marketing campaign with Couple concept to fuel the growth and support the launch of new premium women brand Reason to choose David and Victoria Beckham Happy couple enjoys life together David: sports icon Victoria: fashion icon