Marketing plan to launch a clothing brand in danang market

STATEMENT OF ORIGINALITY This work has not been submitted for a degree or diploma in any university To the best of my knowledge and belief, the project contains no materials previously published or written by another person except where due reference is made in the project itself Le Quang Truong February 15th, 2011 ACKNOWLEDGEMENT Firstly, I would like to express my appreciation to Dr Bui Thanh Trang, my project tutor, for all his valued guidance and expert advice in the preparation of this project Special thanks to my mentor for his personal encouragement and and unlimited support in sharing marketing experience which motivated me to work harder on this project Last but not least I would like to send my deepest appreciation to my family and my company for their emotional support and spiritual encouragement throughout my MBA study TUTORS COMMENTS (anh attached trang co chu ky cua thay Trang vao) TABLE OF CONTENTS EXECUTIVE SUMMARY .1 CHAPTER 1: INTRODUCTION 1.1. Reasons to Research 1.2. Objectives of Research 1.3. Methodology 1.4. Scope of Research 1.5. Structure of Research CHAPTER 2: LITERATURE REVIEW .6 2.1 Process to launch a new product 2.1.1 Concept Development 2.1.2 Concept Testing .7 2.1.3 Prototype and Product Development 2.1.4 Pilot Launch .7 2.1.5 Commercialization 2.2 Target consumer 2.3 Positioning 2.4 Marketing Activities To Build And Develop A New Product .9 2.4.1 Product 2.4.2 Price .13 2.4.3 Distribution 15 2.4.4 Promotion 17 CHAPTER 3: RESEARCH DESIGN 19 3.1 Framework of Research 19 3.2 Methodology and Sampling composition 20 3.2.1 Qualitative Research .20 3.2.2 Quantitative Research 21 CHAPTER 4: MARKET ANALYSIS, RESULT OF RESEARCH & MARKETING ACTIVITIES 23 4.1 Market Analysis 24 4.1.1 Market situation .24 4.1.2 Introduction of Garment Resource Company .26 4.2 Result of Research .27 4.3 SWOT Analysis 33 4.3.1 Strengths 33 4.3.2 Weaknesses 33 4.3.3 Opportunities 34 4.3.4 Threats 34 4.4 Target Consumers 35 4.5 Positioning 36 4.6 Marketing Activities to launch ZIK ZAK 37 4.6.1 ZIK ZAK 37 4.6.2 Pricing of ZIK ZAK 38 4.6.3 Distribution of ZIK ZAK 39 4.6.4 Communication Strategy of ZIK ZAK 40 4.7 PROFIT/LOST in YEARS 43 CHAPTER 5: CONCLUSION 44 REFERENCE A BOOKS 46 B DOCUMENT OF MBMM-4 COURSE .46 APPENDIX 47 Appendix 01: Discussion Guidelines 47 1) CONSUMERS LIFESTYLE 47 2) APPEARANCE & U&A OF FASHION/CLOTHING 47 3) IF RESPONDENTS DONT MENTION CLOTHING, PROBE: 48 4) For BRANDED CLOTHES WEARER 48 5) PURCHASE HABIT: .48 6) BRAND ASSESSMENT 49 Appendix 02: Quantitative Questionnaire 49 ABBREVIATIONS GRC Garment Resource Company US United State EU Europe VND Vietnam Dong LIST OF TABLE Table III.1 Sample of Qualitative Research 20 Table III.2 Sample of Quantitative Research 22 LIST OF DIAGRAM Diagram II.1 The process of launching a new product Diagram III.1 Research framework 19 Diagram IV.1 Zik Zak distribution roadmap 39 Diagram IV.2 Stages of communication 40 LIST OF CHART Chart IV.1 Vietnam clothing market value 23 Chart IV.2 Brand awareness (without support) 26 Chart IV.3 Chosen stores of teenagers 27 Chart IV.4 Occasions that respondents purchased new clothes 28 Chart IV.5 Number of clothes purchased per year 29 Chart IV.6 Teenagers preferred product performance 29 Chart IV.7 Desired characteristics of clothing brands 30 Chart IV.8 Affordable prices for teens 31 Chart IV.9 Comparative Pricing analysis of Zik Zak 38 Page 40 Production Sales Operation Zik Zak Flagship Shops Zik Zak Shops in Big retailers Diagram IV.1 Zik Zak distribution Roadmap ZIK ZAK Shops: ZIK ZAK will open flagship shops in ward Hai Chau and Lien Chieu where majority of high school student gathers Flagship shops are in the overall marketing strategy to build the ZIK ZAK image to the target customers This is the place to optimize the brand exposure to appeal the target consumers 4.6.4 Communication Strategy of ZIK ZAK Communication Objectives - Build ZIK ZAK awareness among target audiences - Build ZIK ZAK as an image for teens to identify herself/himself as a INDEPENDENT person when they wear ZIK ZAK Brand - Position ZIK ZAK as an affordable clothing brands amongst teenagers - Loyal customers are the ambassadors of ZIK ZAK through worth of mouth through verbal or internet spreading Page 41 Communication Messages COMMUNICATION MESSAGES roll-out: we develop the progress of delivering message into different stages: Stage 01: Reality of Clothing Stage 02: Foreign brands and Unwell-know brands Stage 04: ZIK ZAK a friend will help you to be the one Diagram IV.2 - Stage 03: Does the current clothing satisfy Stages of Communication Stage : Reality of Clothing In this stage, we deliver the message to audiences that Clothing is not simple as they think We deliver the meanings of clothing in terms of helping them to improve their appearance and make them more confident - Stage : Foreign brands and Unwell-know brands We will let them aware one thing that both premium foreign clothing brands or un-wellknown brands are not suitable to them They dont have to pay too much money for expensive foreign brands because they are still dependent in income And they should be aware of unwell-known brands because low quality clothing are not able to deliver the functional benefits of Color, Design, Fiber Content or product performance of comfort Page 42 - Stage 3: Does the current clothing satisfy you? All the current clothing brands are positioning In unclear They dont give teens a specific perception when teens wear those brands If yes, the perceptions are still blur and unclear It somehow gives the perception of Friendliness or Active They dont help teens to achieve the feeling of Independent that they desire to be acknowledged by friends - Stage 4: ZIK ZAK a friend will help you to be the one you want to be ZIK ZAK is beyond a clothing ZIK ZAK will provide a self-expressive benefit by providing a vehicle by which a person can express him or herself as a independent people - When I buy or wear ZIK ZAK, I am independent from School and family ZIK ZAK is the drive to have more friends and to join groups with common interests of independence ZIK ZAK is the connection between ZIK ZAK consumers, ZIK ZAK is the common language among target consumers - When I buy or wear ZIK ZAK, the type of people I relate to are Independent Summary : With the above messages rolls out, we change the thinking of target groups about the current clothing brands, change their behaviors in using the current clothing brands in the market Through that, we will shift their demand into ZIK ZAK and build ZIK ZAK as a social symbol amongst the teenagers Page 43 Communication Tools Bellows are the communication tools to express the messages which we want to roll out through the communication campaign: Communications Mix Press Online Press release Website Weekly Radio Program Social network e-Mail, newsletter Advertising Public Relations Print ad on Teens Magazine Event at High-school Radio Celebrity 4.7 PROFIT/LOST in YEARS Page 44 CHAPTER 5: CONCLUSION With the market value of US$ 2.6 billion and growing rate of 16% for the year 2010, Vietnam clothing market is becoming the lucrative market for local clothing players In order to launch a local clothing brand to target teens from 14 -18 years old, this thesis did a research to find out that this segment is not well marketed because existing local brands have not satisfied them well The thesis proposes to launch a clothing brand ZIK ZAK which is based on the findings of insights of its consumers primary research The psychographic benefits which help target consumer to deliver his/her Independence characteristic It makes ZIK ZAK be unique from other players And this is the positioning strategy which GRC is pursuing The product is marketed with the affordable price thanks to the initiatives in raw materials and in-house production From the insights of research, thesis found out that beside the specialty stores, Flagship Shops and Modern Trade channels (supermarket, Hypermarket) with contribution of 55% were the main channels which target consumers visited to purchase their clothes Therefore, distribution channel should be focused on these channels Price is one of the most influenced factors followed by Function to influence target consumers to purchase a clothing brand Therefore, ZIK ZAK should take advantage of this factor to integrate it into the commitment to consumers This will help to put ZIK ZAK at the edge of competition New-year was the big chance for teenagers to shop clothing However, Female spread occasions in year to purchase clothing Other occasions such as new school year or Joining a party of friends significantly influenced their purchases of new clothing Page 45 Therefore, the separated campaign for male teens and female teens are crucial for ZIK ZAK success The tactical campaign for female teens need to be considered to slash the chances of sales Then mass campaign should be launched by before the new years Page 46 REFERENCE A BOOKS Alexander Chernev and Philip Kotler (2009): Strategic Marketing Management Charles D Schewe and Alexander Hiam (1998): The Portable MBA in Marketing Paul Christ (2008): KnowThis: Marketing Basics Nguyeón ẹỡnh Thoù - Nguyeón Th Mai Trang(2009), Nghieõn cửựu thũ trửụứng (Market Research) B DOCUMENT OF MBMM-4 COURSE Pierre Baeyens (2009), Strategic Marketing Management Christian Blumelhuber (2010), Building & Managing Brand Claire Gruslin (2010), Market Research, BIS & Competitive Intelligence Claude Boffa(2010): Domestic & international distribution & retailing Jean Stephane Paulus (2009), Management Accounting & Control Systems Page 47 APPENDIX Appendix 01: Discussion Guidelines 1) CONSUMERS LIFESTYLE - Can you tell me about your typical day? How does it look like? Which are your favorite activities in a day? - How are they different on weekends? - What are your dreams and aspirations? - What are your key entertainment activities? Which are your favorite ones? Who you usually share your entertainment moments with? 2) APPEARANCE & U&A OF FASHION/CLOTHING Lets talk about your opinion about Appearance: IF Respondents dont mention Appearance, probe: - If I mention the word APPEARANCE, what comes to your mind? - In your opinion, how much is appearance important to your life at this age? - Which aspects of appearance you care most? Why? - Do you have any problem with your appearance now? What are they? - How come you have such problems with your appearance? - Do you any thing to improve/ fix these problems? Who told you? - Do you have any solutions/ methods/ action in order to address these problems? - What are they? What can it help for your appearance, for which aspect of your appearance? What makes you think so? - How come you knew these solutions? Page 48 3) IF RESPONDENTS DONT MENTION CLOTHING, PROBE: - What are the roles of Clothing in building Appearance? How you feel about its roles? Are they important to you? What makes you think so? - Is it essential to pay attention to Clothing? Why/ why not? - How much is it important to practice it? - Which activities/ actions/ solutions you think that it can contribute to better taste for clothing - From what source of information you know about this? 4) For BRANDED CLOTHES WEARER - Which branded clothes are you wearing? - What makes you try them on? Who told you? What did they tell you? - How you wear them? On what occasions? Who often joins you on those occasions? - What you think about branded clothes after wearing them? - What are your likes/ dislikes about them? - What you think about their benefits? How they compare to non-branded ones? 5) PURCHASE HABIT: - How often you buy a new clothes? - Why you need to buy the new clothes? When you need to buy the new clothes? - How you choose the new clothes? - Who/what influences you to choose a new clothe? - Where you usually buy the new close? Not usually.=> why? Page 49 6) BRAND ASSESSMENT - Which brand are you currently wearing? - How long have you been wearing this brand? - Why you choose this brand? - What make you loyal to this brand? - Are you satisfied with the brand? How much? Are there areas where this brand should improve? - When I say brand ? [PT2000, Blue Exchange, NinoMax, Nike, Adidas], what comes to your mind first? - Have you ever tried on its clothes? Why and why not? - What you think about this brand? - What are the strengths and weakness of this brand? From what source of information you know about these strengths and weaknesses? - What are the marketing activities of this brands that you remember? What you think about these activities? Does it make you like/ dislike more about this brand? Page 50 Appendix 02: Quantitative Questionnaire Full-name _ Gender Male Female Grade 10 11 12 High School BRAND METRICS Tick [ X] on the lank that you choose Q1 When talking about clothing brands for teens, which brands you know? [MA] Q1 PT2000 Blue Exchange Viet Thy Foci Nino Maxx N&M Maxx style T-up Trendy Lime Orange Others (Specific): Q2 Recently, did you see or hear any advertisements of the clothing brands that you know? [MA] Q2 PT2000 Blue Exchange Viet Thy Foci Nino Maxx N&M Maxx style T-up Trendy Lime Orange Others (Specific): Page 51 How did you see or hear those advertisements of that brand? Q3 Outdoor billboard Newspaper/Magazine POSM: Leaflet/Catalog TV [ Fashion shows, News Breaks, Advertisement, Game show Internet [website, Forum] Exhibition/Event Introduction from relatives/friends/collegueas Direct introduction from company Other (Specific _ ) PT2000 Blue Exchange Viet Thy Foci Nino Maxx N&M Maxx style T-up Trendy Lime Orange Others (Specific): USAGE and ATTITUDE Q4 Which brands did you purchase in last 04 months? Q4 [MA] PT2000 Blue Exchange Viet Thy Foci Nino Maxx N&M Maxx style 10 Other 02(Specific _ Other (Specific _ Direct introduction from company Introduction from relatives/friends/collegueas Exhibition/Event POSM: Leaflet/Catalog Newspaper/Magazine Outdoor billboard Q2 TV [ Fashion shows, News Breaks, Advertisement, Game show Internet [website, Forum] Q3 Page 52 Q4 Which brands did you purchase in last 04 months? Q4 [MA] T-up Trendy Lime Orange Others (Specific) Q5 Where did you purchase those clothes? [MA] Q5 [MA] Market Hypermarket (Metro) Suppermarket (Coop, Fivimart, Bai Tho) Flagship Shop (PT2000, Blue Exchange, Nino) Specialty Stores (X70, Phuong, Tuoi Hong) Department Store (Big C) Other (Specific) Q6 On which occasion you purchase the new clothes? [MA] Chrismast New year Join party of friends (Birthdays, special occasion) Current Clothes needs to be replaced because of outdatedness/old fashion Dating New school years Other (Specific) Q7 How many pants/trousers did you purchase per year? [SA] Q7 [SA] 1-3 4-5 6-8 9-11 More than 11 Q6 [MA] Page 53 Q8 How many T-shirt/Shirt did you purchase per year? Q8 [SA] 1-3 4-5 6-8 9-11 More than 11 CHOICE CRITERIA Q9 Which personal characteristics you really want to express in public? Q9 [SA] PASSIONATE INDEPENDENT FRIENDLY SMART ACTIVE IN FASHION Others (Specific) Q10 Which element infuences you most when you purchase a clothing brand? Q10 [SA] Price Brand [Image, Country of Origin, Store Image] Function [Style, Color/Design, Fibre content] Coordination with wardrobe Store near my house Salespersons Friendliness Approval of others [parents/school, etc] Others (Specific) Page 54 Q11 Which performace of product infuences you most when you purchase a clothing brand? Q14 [SA] Care of body Fit / Sizing Durability Colourfastness Safety Comfort Others (Specific) Q12 How much is price of T-shirt/Shirt did you think that it is the most reasonale to you? Q12 [SA] Less than VND 50,000 VND 50,000 ~ 99,999 VND 100,000 ~ 149,999 VND 150,000 ~ 199,999 More than VND 200,000 Q13 How much is price pants or trousers did you think that it is the most reasonale to you? Q13 [SA] Less than VND 200,000 VND 200,000 ~ 249,999 VND 250,000 ~ 299,999 VND 300,000 ~ 349,999 More than VND 350,000 Thank you for your co-operation! ... schools in Da Nang As a result, this thesis proposed a marketing plan to launch a clothing brand ZIK ZAK in Da Nang market The success of ZIK ZAK is the foundation to expand the brand into the nationwide... approaches includes: - Individual Product Branding - Family Branding - Private Label or Store Branding - Co – Branding Page 12 - Brand Licensing o Advantages of brands: A strong brand offers many advantages... segment to initiate its own clothing brand With the advantage of labour cost, GRC chose Da Nang as a strategic geo -market to launch a new brand The success of the new brand in Da Nang is the initial