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Marketing plan - PuLL&BEAR

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Pull & Bear was established in 1991 as a result of a market diversification initiated by the Inditex Group to provide a strategic response to its direct competitors.

The Brand initially catered to a younger generation between the age group of 15 to 30years, who demanded a fashion influenced by international trends that quickly adapted
to their needs, while maintaining the quality and price.
The fashion industry has traditionally met the growing demand of women’s fashion and has ignored men’s need of style and comfort. In early 2011, Pull&Bear launched the Heritage collection, a range which catered to men in thirties.

In order to gain market share in the mens wear segment and to maintain the increasing demand of men’s collection from our younger brand loyal customers, a two step medium
term marketing plan is formulated which focuses on:

The Marketing Audit, which analyses current organisation and marketing objectives,strategy, tactics, implementation targets. (The tool used in this step is SOSTAC to
give some structure to the plan).

The evaluation report, which details with the feasibility of the marketing plan in regards to segmentation, targeting, positioning (STP) and providing recommendation

Published in: Marketing
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Marketing plan - PuLL&BEAR

  1. 1. The Marketing Planning Process
  2. 2. HERITAGE - collection- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pull & Bear was established in 1991 as a result of a market diversification initiated by the Inditex Group to provide a strategic response to its direct competitors. The Brand initially catered to a younger generation between the age group of 15 to 30 years, who demanded a fashion influenced by international trends that quickly adapted to their needs, while maintaining the quality and price. The fashion industry has traditionally met the growing demand of women’s fashion and has ignored men’s need of style and comfort. In early 2011, Pull&Bear launched the Heritage collection, a range which catered to men in thirties. In order to gain market share in the mens wear segment and to maintain the increasing demand of men’s collection from our younger brand loyal customers, a two step medium term marketing plan is formulated which focuses on: The Marketing Audit, which analyses current organisation and marketing objectives, strategy, tactics, implementation targets. (The tool used in this step is SOSTAC to give some structure to the plan). The evaluation report, which details with the feasibility of the marketing plan in regards to segmentation, targeting, positioning (STP) and providing recommendation. Executive Summary
  3. 3. Task 1 Rationale & Medium Term Plan
  4. 4. Pull&Bear is a retail brand which was set up by the Inditex Group in 1991. Since its creation, its fashion concept has known to adapt to the needs of young people and is now a clear point of reference for casual, laid-back clothing. The chain offers special spaces in the stores in which the display fixtures are combined with recycled elements from the past, to create the kind of surroundings that young people love. Pull&Bear’s product line include clothes, shoes, complements, and cosmetics. Among all of Inditex brands, Pull&Bear is the one which has evolved the most. It began as a store for young men but 7 years later they introduced their first women’s collection. It has adapted very quickly to what the youth fashion demanded. Within its collection we can find XDYE and Sickonineteen lines which offer varieties of clothes having similar style. Pull&Bear has recently launched a menswear line focussing on men in their thirties, differentiating in style and design to that of XDYE and Sickonineteen. On September 6th 2011 they launched their online store pullandbear.com. Its available in Spain, Italy, Portugal, United Kingdom, France, Germany and Netherlands. 1.- Introduction:
  5. 5. 2.- Rationale for chosen scenario The fashion industry is very competitive. The companies are constantly launching new product lines or improving the existing ones. The reason for developing a marketing plan in the medium term is because it seeks to gain market share in existing markets. Pull&Bear does not escape competition even though its a part of the global Inditex Group and have to rethink its strategy constantly, and hence it launched the Heritage Collection which meets the demand for men’s collection for men in their thirties. Pull&Bear aims to increase sales of the Heritage Collection and its position in the existing market. Current marketing activities are not efficient enough and therefore necessitate a more aggressive promotion to increase market share and change customer’s perception of the brand. The Heritage collection although targetting a niche segment of the market, is currently associated with medium quality and cheap price suitable for younger generation.
  6. 6. Chapter 01 Situation Analysis INNOVATION/ADAPTATION CURVE VALUE CHAIN ANALYSISTHE PRODUCT LIFE CYCLE (PLC) PESTEL DIAGRAM SPICC ANALYSIS PORTER’S FIVE FORCES
  7. 7. HERITAGE - collection- CompetitionMonopoly sales Stage 1 Stage 2 Stage 3 Stage 4 First competitors Mass production Obsolescence Idea Promotion competitors Introduction Growth Maturity Decline Heritage Collection is in the early maturity stage of its life cycle. The product is already on the stores shelves and customers can purchase it. Therefore this product is accepted in the market and sales are growing. (PLC) Based on the data obtained from PCL (Product Life Cycle), it shows us that the product is currently at the maturity stage. The brand is accepted and can be purchased in store or online. There are many competitors in the market with very little difference between them. This requires an injection, by injecting new life into the product, it will hopefully increase sales and start to sell more. It will also have an affect on the brand name of Pull&Bear, which too will reflect on the company sales. A readjustment of the marketing mix might include: - The brand awareness can be increased by further improving product strategies and attracting new customers. (Suggestions provided in Corporate Objectives ) - Provide a more suitable place for the consumer to make purchases. - Considering carefully the style of promotion. 3.- Situation Analysis (I) Product Life Cycle
  8. 8. The Innovation and adaptation Curve serves to remind us that it is less effective trying to convice people about a new idea. Heritage Collection has been recently launched on the market, it has already reached a maturity stage. The majority of new customers are considered to be in between the early adopters and early majority stage. Early Adopters: They are attracted to most innovative and stylish brand before the decide to purchase. They are influenced by the communication media. Its very important for a good appearance and be accepted by the rest of the people. Early Majority: They need time to be convinced that the product is in the market. Innovation is accepted by society 2.5% 13.5% 34% 34% 16% HERITAGE - collection- INNOVATION/ADAPTATION CURVE Customers who bought this product may be considered among early adopters and early majority. This will help us as a guide to know what type of communication we have to manage with customers. LaggartInnovator Early Adapter Early Majority Late Majority Types of customers 3.- Situation Analysis (II)
  9. 9. Value Chain Analysis Pull & Bear is a vertically integrated brand which allows control over the whole value chain and reacts more quickly to customers demand. The value chain is totally orientated to its customer. Its advantage is that it (the brand) is highly flexible, does not compromise on speed and innovation, but we also see that given the economic crisis that this may affect production costs. The challenge here is to provide Pull&Bear’s recently developed range, Heritage Collection with cost effective marketing solutions in this current An assessment of the internal environment allows us to determine the strengths and weaknesses of Heritage Collection and the purpose is to keep their audience that has grown up with the brand while also acquiring new customers. The value chain model is an excellent framework that identifies and analyzes all value creating activities within the company. The objective is to analyze the feasibility of its operational model and identify its internal strengths and weaknesses. 3.- Situation Analysis (III) Technology development Innovation process developed through IT integration enables store managers to restock quickly and in smaller batches. Good Communciation between headquarter and store Vertica Integration structure Control over all key posts Efficiency in all value chain Marketing &Sales Expensive stores locations Customer value, cost to consumer, communication Sales efectiveness After sales service Process Operations fashionable garment production close to headquarters every week Communication with stores and market experts Outbound Logistics Efficient distribution system Focus on flexibilty and quick response Inbound Logistics Inventory control Services for loyal members Developing and compensating all personnel Recruiting, hiring, training new personnel Human Resource Infrastucture: Head office in Spain, office overseas Employs 700 people Is a part of Inditex Group Customer Service Warrantee Post-Service PRIMARY ACTIVITIES SUPPORT ACTIVITIES The analysis of the external audit allows us to evaluate the external environment to understand opportunities available to the company and the threats the company might have to face.
  10. 10. The PESTEL diagram shows us that the company may experience a number of threats which can affect to Heritage Collection in performance or value of the product. It is vital to analyse the macro environment because these are exterior factors that can affect the product and the organisation. The economic situation particularly may affect the decrease in consumption, however it also enhances the exploitation of new market opportunities such as the Asian market.
  11. 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PESTEL analysis Opportunities Threats - Global economic crisis, which affects consumption. The high rate of unemployment and lower per capita income makes the purchasing power of consumers be limited. - Pull&Bear is exploiting opportunities for a new markets that are constantly growing (Asiatic market). - New contries gain entrance to EEUU: force movement of products. - Threats of the countries with lower production cost. PESTEL analysis Political Economic Legal Opportunities Threats - Political factors may influence Pull&Bear and the fashion apparel industry, such as posible export regulation as well as political stability within the regions that Pull&Bear operates in. It is exposed to minimal political risk because of its global position. - It supported by *Promotion of the fashion from Spanish Institution. - It is corporately responsible company and demands the same social responsibility from its partners and suppliers. Social + Cultural Opportunities Threats - Demographic, cultural and technological changes involve: changes in the product demand. - Progressive standardisation of clothing tastes. - More concerned for fashion and image above all men's sector - Religious rules in other countries are very restrictive with dressing styles. Ecological Opportunities Threats - The eco-friendly stores: to reduce energy consumption by 20%, introducing sustainability and efficiency criteria. - They produced less waste and recycle. Recycling hangers and alarms. - The used ecological fabrics. Organic cotton (100% cotton, completely free of pesticides, chemicals and bleach) - The regulations and standards in force in the according each country are becoming more and more important for the reputation and image of companies and their brands Opportunities Threats - The company has to consider the jurisdiction system of each country because the national law have a strong impact of the textil industry - Processes of internal and external audit, to ensure regulatory compliance preset standards Threats Opportunities Threats -Telecommunications and information technology make easy global logistic firms. - It has always been a pioneer in technological processes, especially in developing a communication platform between its headquarters and regional stores. - Implementing new technologies into all parts in the supply chain, whether it is design, distribution, or marketing. - Market demand changes very quickly. - Changes in customers tastes Technological Threats
  12. 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Suppliers Intermediaries Publics Opportunities Threats Customers Opportunities Threats Competitors - Pull&Bear is very active in creating social projects in poorer countries and providing aid to emergency areas - The eco-efficient stores is a significant project within the environmental. Bad customers perception Negative information through the press Opportunities Threats - It does not use intermediaries. Deal directly with their suppliers. - Pull&Bear evolves at the same pace as its customer, always watching out for new technologies, social movements and the latest artistic or musical trends. All of this can be seen reflected not only in its designs but also in stores - The customer service team is key in the company. - Men’s fashion is growing in volume - Customers are increasingly demanding and less loyal. - The client has reduced their purchases because of the economic recession Opportunities Threats - The apparel industry is highly competitive - The customer service team is key in the company. - Price are higher - Low price levels - Its factories could have created bad publicity for the company. The company was accused of acquiring child labor in one of Inditex´s subcontractors. - Considerable decision control and better bargaining position in terms of prices considerable decision. Opportunities Threats Threats -Pull&Bear has many suppliers therefore increases bargain power and minimizes risk. -Pull&Bear has around 40 to 50 % stake in the important printing, dyeing, and sewing companies, which gives them competitive advantage. Threats Laws different in each market could be a conflict for the company labor in one of Inditex subcontractors. .- SPICC Analysis SPICC Analysis
  13. 13. Porter’s five forces Analysis Potential entrants Buyers Substitutes Supplier Bargaining power Threat of substitutes Bargaining power Threat of entrants Porter’s five forces Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The following analysis allows us to see Pull&Bear´s profitability. We can analyse the potential substitutes and the impact this can have in the company and also who are the suppliers and who is the buyers. This analyse is very important as it would guide us in the posistion of our product as will help us to act if there is any problem. The Marketing Planning Process New Entrants High entry barriers, many barriers to entry competitors due to brand, network, size and unique resources. Threath depends of current state of economy. Suppliers Relatively low due to the large amount. Pull&Bear can change of supplier if there is disagreement. Its partly owns important suppliers to strengthen its bargain position. Substitutes There is not a threat of substitutes. It has a wide product portfolio from clothing to gadgets and cover almost the whole fashion industry: earring, sunglasses... Buyers The power of the buyer is low because they are usually less faithful Customer is looking for low prices and quality Competitive Rivalry Competition on price, quality, design, innovation as well as marketing has intensified across a wide range of markets. Strong market position. Pull& Bear is confronting the international, national companies as well as small stores.
  14. 14. (DCs) (DsFs) The SPICC analysis and the Five Forces Analysis, has shown that it is a company with a strong position in the market and that it is very involved with various social projects. We have identified the following Distinctive Competencies and Critical Success Factors: - Pull & Bear is a known brand with a strong financial investment to make a strong campaign marketing. - It has very competitive prices in the market. compared with other brands. - Quick response to changes in the consumer and has a vertical structure that covers the entire production process: design, manufacturing, logistic and distribution. Just in time - Using the latest technologies medium such as social media websites. - Improve the quality and design of clothing. - Develop new campaigns and strategies also promotions. - Maintianing customer loyalty. - Stores located on main roads and most commercial centres. Offering the customers the opportunities to shop online and offline. DISTINCTIVE COMPETENCIES CRITICAL SUCCES FACTORS
  15. 15. From the SWOT analysisthe following was determined: - Well known brand and strong financial system. - International coverage. - Stores in the best areas - Robust online store - Use of the latest technologies - Vertical Integration Weaknesses - Repositioning from 'middle' to 'premium' segment can lead to distortions. - In the minds of consumers regarding Pull&Bear's attributes of quality and design are considerably lower than other brands - Increase in interest for fashion among male consumers. - Use of advances technologies to share information. - The target population is more mature with a greater purchasing power. -Competitive market. -Most demanding clients -Low fidelity levels Threats Strengths Opportunities The third is to explore the possibilities of new technology and social media. Through this analysis we can provide step by step recommendations to Pull&Bear to achieve its objectives and strategies: The first is to perform a positioning strategy and enhance consumer appreciation of the brand design and quality, with the intention of occupying more space in the new market segments. The second is to respond to competition in its traditional market through loyalty strategies.
  16. 16. Marketing Audit Internal External Influences 11.-The process of the marketing audit The external environment can be audited in more detail using other approaches such as SWOT Analysis, Michael Porter’s Five Forces Analysis or PEST Analysis. The marketing audit is a vital part of the marketing planning process. It is performed not only at the beginning of the process, but also during the implementation of the plan. The marketing audit considers both internal and external influences on marketing planning, as well as a review of the plan itself. The organization operates within a framework of external and internal environment that shapes opportunities and poses threats to the organization. McDonald (2008) explains, “by providing an understanding of how the organization relates to the environment in which it operates, the marketing audit enables management to select a position within that environment based on known factors.” The external environment is a set of complex, rapidly changing and significant interacting institutions and forces such a political or legal factors that affect the organization's ability to serve its customers. External factors are not controlled by an organisation, but they may be influenced or affected by that organisation hence it is necessary to understand the environmental conditions because they interact with strategy decisions. The external environment has a major impact on the determination of marketing decisions. We must scan the external environment so that they can respond profitably to unmet needs and trends in the targeted markets.
  17. 17. Conclusion Marketing Audit Internal External Influences 19 All of these factors are easier to control and in order to determine how the product is situated within the market. In this case, we used different sources to carry out the internal analysis such as articles, social media, Pull&Bear' website, Annual Reports, etc. The internal environment is as important for managing change as is the external. The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. In conclusion we can say that marketing audit is essential to establish a correctly marketing plan. It is provides us a clear understanding of the company's current performance internally and externally. Company will be able to collect information through this analysis in order to analyse possible threats and prevents potential problems arising hence the organisation has to do a regular monitoring and control this process in order to avoid early issues that can be resolved initially.
  18. 18. 4.- OBJECTIVES 4.1 CORPORATE OBJECTIVES 4.2 PROPOSED MARKETING OBJECTIVES 4.3 THE PLANNING GAP
  19. 19. By addressing marketing communication requirements of the organization, Pull&Bear aims to increase its market share in the men fashion market specially with Heritage Collection. Main objective:Increase sales by 15% over the next 3 years. Increasing market share by 20% in men’s fashion industry Set by: Pull&Bear. To achieve the mission and vision of the company. As long term objectives (3 to 5 years). From Marketing objectives and are short tactical objectives. Short time (3 to 6 month) Set by:Head of Marketing. Based on the objectives of the business organization. They are medium term plan. CORPORATE OBJECTIVES FUNCTIONAL OBJECTIVES OPERATIONAL OBJECTIVES
  20. 20. 2014 2015 2013 TIME IN CREASEm arketshare sales custom ers Therefore, marketing communication objectives can be formulated as follows: 1.- Corporate Objectives Pull&Bear’s corporate objectives Increase in sales of Pull&Bear by 15% over the next 3 years. Increase the awareness pertaining to brand positioning pertaining to Pull&Bear within next one year. Develop and maintain the website to increase the visits by 20% and to maintain customer loyalty. 2.- Marketing Objectives: Marketing objectives are established to exploit the strengths of Pull & Bear to overcome the weaknesses and threats that have been identified (Appendix B). Increase market share by 20% in men’s fashion industry. Increase the sale of Heritage Collection products by 15%, keeping the old customers and gain new customers. Increase customer’s loyalty by 15% within the first year. Increase brand recall levels of Heritage Collection by 40% within the next one year.
  21. 21. 15% Over the years there has been a constant growth in sales of Pull & Bear due to the strong structure and company systems. A gap analysis has been carried out to know the process to achieve the marketing objectives. The customer loyalty, increasing brand presence and an improvement in the design and quality will result in the increase in sales of Heritage Collection. Through the analysis of DCs and CSFs we realize that the company has sufficient resources to achieve increase in sales of the Heritage Collection. The Planning Gap: 2009 2010 2011 2012 2013 100 200 300 400 500 sales Time Differentiate Planning Figure 2 - Planning Gap millionen¤ The Planning Gap Analysis THE PLANNING GAP WILL NEED TO WORK TO IMPROVE SALES BY APPROXIMATELY 15% WITHIN 3 YEARS - THE FIGURES ARE AN ESTIMATE COLLECTED THROUGH RELATION/ANNUAL REPORTS WWW.INDITEX.COM
  22. 22. 5.1 GROWTH STRATEGIES 5.2 COMPETITIVE STRATEGY 5.- MARKETING STRATEGIES:
  23. 23. Ansoff’s Growth Matrix MARKET PENETRATION Organisation aims to sell its existing products to more people within the market it already operates in. PRODUCT DEVELOPMENT The new product is develop in the existing market. Organisation seeks to sell its existing products to new markets MARKET DEVELOPMENT DIVERSIFICATION It seeks to increase profitability through greater sales volume obtained from new products and new markets Low Risk Market Penetration: This is the strategy is going to implement. Pull&Bear moves fast. The company says it can take a new design to store shelf in just two weeks which keeps customers coming back again and again to check out the latest styles. In order to achieve the goals we have mentioned above we have to put in place a set of strategies and focus our efforts on the opportunities in the market. Ansoff's Matrix strategy provides a link between the product and market. It is one of the most well known frameworks to decide on strategies for growth. This offers strategic choices to achieving the objectives. Market Penetration: is the most appropriate strategy to generate the goals that have been proposed. The main objective is that customers use more products and services offered by the company. Thus, we can say that Pull & Bear has to taken certain measures to increase market share, such as improving the distribution network and increase sales of an existing product by penetrating the market further. On the other hand, also has to take actions to increase the frequency of consumption, reducing cycles and creation of affordable design.
  24. 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Competitive Strategy: PULL & BEAR APPLIES THE STRATEGY THAT HAS ENABLED THE SUCCESS AND RAPID GROWTH OF THE INDITEX GROUP. THEREBY ACHIEVING ITS SECTOR LEADERSHIP USING POLICIES TO REDUCE COSTS BUT ALSO DEFINES ITS DIFFERENTIATION-ORIENTED STRATEGY: They also remodel items if they are not sold, by changing the design or colour thereby reducing the inventory level to minimum. Applying ‘Just in Time’ process, new collection every week, great logistics system. Control whole manufacturing process from creation to sale, thereby avoiding intermediaries's like suppliers and designers opinion. The headquarters of Spain collects the information and the main decisions aremade by top management. Adjusting the price of clothing for each market. Production process is adjusted to the sales price to achieve the benefit. Raw materials are acquired abroad. There are Purchasing delegations in many countries.
  25. 25. 6. - Segmentation,Targeting and Positioning
  26. 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Establishing STP will help us to identify the specific attributes and needs of a narrowly defined marketing strategy. Targeting involves prioritizing your segments based on marketing potential and profitability. Positioning fashion quality value for money personality useful heritage practical potential market Targeting men who are interested in fashion with accessible clothes within price range as well as easily to purchase through using new technology. more adult and masculine public that it is accustomed to and that has grown with brand. men that look for modernness without shrillness. Geographic: UK Behavioural: Behavioural: Know the product but not all product range Bohemian, educated, urban and comtemporany, sensitive, demanding with himself Segmentation Demographic: Age 30 to 40 years old Gender: Males Demographic: Income:£18,000 - £30,000 Population density: Urban
  27. 27. PositioningSegmentation The STP Process Targeting 6.1-Segmentation The segmentation process involves segmentation by population density and classified as urban. The client profile is demographically situated between 28 and 35 years old. According to Erik Erikson is classified by Young Adult stage in human development. They belong to a middle class and have a good fashion taste, breaking with the austerity of the masculine fashion of previous years. They are the men who buy the clothes for themselves and brands are launching more collections for them. Pull&Bear previous segmentation was targeted a larger scope of individuals Female and Male - (Age 15 to 35 years old ). Nevertheless by segmentation the groups Pull&Bear concentrates on a narrow market segment of its existing customer base. The concentrated strategy is used to maintain and expand our market share and focus on the ‘know how’ to respond effectively to changes and trends in menswear. 6.2-Targeting This is where the company sees business opportunity within the possibilities offered. It has a better understanding of our consumers, greater loyalty and greater participation although we exist in a more limited market. Our main competitive advantage is based on further focusing on a particular segment of the market: the male retail.
  28. 28. ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ........................................................................................................... ................................................... 6.3-Positioning Having segmented the market and have determined the target market, we must decide how to position ourselves to encourage customers to choose the product over the competition. Fashion Pro Price + Price - Fashion + Fashion + Perceptual map Positioning is not what is done to the product, it is what is created in the minds of these customers and given an image. Through the positioning map, We realized that the position of Pull & Bear in relation to its competition is that still remains in the minds of consumers as a brand with good price but with less quality.
  29. 29. Identify potential customer and understand needs The segments should be relatively stable to minimise the cost o most frequent changes. On the other hand, their customer has grown older and has stopped to use Pull&Bear because it is associated more for younger generation and it is not adapting to awareness of the new client who prefer to wear comfortable, elegant and simply clothes. It is carry out loyalty programmes in order to retain customers. ( See Task 1-Shedule 1) The essence of marketing is to understand the customers' needs and develop a plan that surrounds those needs. Through the analysis of the SPT, the potential market has been identified hence the company can make informed decisions as to strategy used to target the market. In the case of Pull&Bear cultural changes have taken place, to make a consumer more interested in their look. This new consumer wants to feel attractive and the comfort is valued. Also, they pay attention in another attributes like quality and design. Pull&Bear’s new market has been segmented based on following the criteria of: According to the report offering by Experian 'A segmentation of UK consumers fashion purchasing behaviour ' Its demonstrates us male sector (range 28-35) can be the most lucrative to sell clothes and sales increase of company. Measurable: Its important to see that the chosen segment is large and stable enough to be served Sustainable: Accessible: Pull&Bear must be able to reachable the segment through communication and distribution channels. Durable:
  30. 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Analysis of the 7 Ps process (PRODUCT, PRICE, PLACE, PROMOTION, PEOPLE, PROCESS AND PHYSICAL EVIDENCE) 7. -Tactics
  31. 31. IN THIS PART, EACH OF THE MAIN COMPONENTS IN A BUSINESS MARKETING MIX IS EXAMINED. IT WILL HELP US TO KNOW THE PEOPLE INVOLVED IN THE BUYING PROCESS AND THE NATURE OF THE BENEFITS THE CUSTOMERS WANTS AND WILL HELP TO TARGET MARKET. It is a tangible product that is in the maturity stage of Product Life Cycle and for such purpose it has to take into account a number of aspects to its client keeping in mind their demand for quality and price thereby retaining the existing client and attracting new customers. The product must be differentiated from other lines of Pull & Bear through the following factors, such as image quality, finishes, etc. This is in order to make it a more 'premium' focus for a more demanding public who has been growing with the brand and maintaining a reasonable price. It is brand provides with 'wardrobe essential' without artifice and colours but current and contemporary. The following diagram shows us the features for the product with the purpose to properly position the product in the minds of customers and give them reasons to pay a price for it. 7.1-Product HERITAGE - collection- Customer Warrantee Post-Service Technology Installations Just inTime benefit: Tangible Quality Style Fashion Design Comfortable an up- to- the Restraine Affordable prices CORE PRODUCT ACTUAL AUGNMENTED PRODUCT It is recommended for the product to keep the additional services provided by the company that made this a successful company with a rapid growth. Level 1: Core Product. What does the core benefit of our product offer? Level 2: Actual Product: The aim is to ensure that our potential customers purchase atleast one product. The strategy at this level involves the features and benefits to ensure that the product offers a differential advantage from our competitors. Level 3: Augmented product: What additional non-tangible benefits could we offer? Competition at this level is based around after sales service, warranties, delivery and so on. Our product should be viewed in three levels, This is done by asking the following questions:
  32. 32. Breakeven Point 7.2-Price In this case, all that is produced is sold and does not accumulate inventory. Is a company that can be expanded without increasing the prices of factors of production used. It is an industry cost 0. We can use this concept to determine whether the product will achieve at least a break -even volume. Cost Units Sales Total Cost Break Even Point Loss Break-even analysis is a simple tool that defines the minimum quantity of sales that will cover both variable and fixed costs. Such analysis gives managers a quantity to compare to the forecast of demand. Relative Elasticity Cost Units Relative Elasticity: quantity is very responsive to price. PRICE PLAYS BOTH AN ECONOMIC AND PSYCHOLOGICAL ROLE IN THE PRODUCT. THROUGH THE PRICING STRATEGY ARE MARKED GUIDELINES FOR INITIAL PRICING AND THROUGHOUT THE PRODUCT LIFE CYCLE. It set a pricing strategy for a product line: Prices for Heritage Collection has to be different in order to maximize the benefits of the whole line and the customer associate this difference in prices at a higher quality and exclusivity compared to other products of Pull & Bear. However, the company has to keep competitive prices thanks to a speedy logistic system that lets us create clothing every two weeks. This allows us to be up to date with fashion trends, maintaining low inventories and sell much of our product at regular prices. The product will be given an USP. At the moment there is a relative elasticity in the pricing. Costumers can easily replace to substitutes if the price is changed. The goal of Pull&Bear is to reduce fixed costs to lower the break-even point.
  33. 33. The Planning Gap Analysis PULL & BEAR IS ONE WHO PRODUCES THE PRODUCT AND SELLS CLOTHES IN BOTH THE RETAIL STORES AND THEIR ONLINE STORES AND TO REACH ITS FINAL CONSUMER. 7.3-Place The distribution strategy used in this case will be intensive. The product, the collection will be distributed to all outlets in all cities where the brand is. The advantage of this distribution will be to maximise product availability and be able to provide large share of the purchase but always making a difference in the range of the line in stores. We will find limited quantities about this collection on the store to maintain the 'Premium' Concept. Company responds more quickly to what customers demand. 2009 2010 2011 2012 2013 100 200 300 400 500 sales Time Differentiate Planning Planning Gap millionen¤ The planning gap will need to work to improve sales by approximately 15% within 3 years.
  34. 34. Supplier Company Wholesale Retailer Customer Vertical Backward Integratio Vertical Forward Integratio Vertical Integration model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . There is no need for any type of horizontal integration because it is controlled internally by the network. The only horizontal integration would be purely at the level of promotion. Pull & Bear has control nearly of every aspect of the supply chain, from design through its global distribution, so it used a vertical distribution system. Speed secures the business. This is even more expensive for the group but is saved in the absence of storage costs to operate with practically no stock. The company uses a vertical integration system (devised by Inditex) to fulfil demand for its wares. This business model covers all phases of the fashion process: design, manufacture, logistics and distribution to its own managed stores. The key is the ability to adapt product to customer demand in the shortest time possible, offering a significant advantage over customer.
  35. 35. Although from the inception, Pull&Bear prides itself to allocate very little money to promotional purposes (only spend 0.3% of their avenue on advertising) allowing more money to be spent on such issues as their fast turnover and quality of customer service promotion is necessary along with a combination of strategies to communicate the message to the customers: 7.4-Promotion It is important that Pull&Bear concentrate more on profile strategy to position their brand name in the top of their customer's mind. THE PROMOTIONAL MARKETING IS ESSENTIAL TO ACHIEVING THE SUCCESS OF THE MARKETING PLAN BECAUSE IT ENABLES COMPANY TO COMMUNICATE EFFECTIVELY AND EFFICIENTLY WITH THEIR TARGET MARKET. Through marketing communication, companies try to differentiate, remind, inform and persuade customers. Heritage Collection is at maturity stage. There are strong competitors in the market hence at this stage the company has to take persuasive tactics to encourage the consumers to purchase Heritage Collection over their rivals and remind customers about the line. Innovative activities should be used to develop a strong brand image with it cores values and informs to customers about the USP. Building awareness,perception, attitudes and reputation of the brand. Profile StrategyPull Strategy To persuade customers through marketing communications Push Strategy To push the sales
  36. 36. The collection can be identified with a range of brand value such a trendy, comfortable, urban, etc. In order to communicate the brand its important to invest in branding building activities. Thus, profile strategy will help to differentiate and position Heritage Collection with the expected uniqueness among target customers. As Heritage Collection seeks to enhance its image among the target audience, the company should be use print, online and offline mediums in the context of profile strategy. As most of the customers are educated and technologically adept, Pull & Bear has created a website to reach out to their target market, providing them with updates and events. Additionally, Pull & Bear has an application for Apple devices such as the iPhone, iPod Touch and iPad. In this way, our customers can keep up with our new releases and latest prices, as well as browse through their seasonal collections. Push Strategy, Its important to educate all sales people regarding Heritage Collection' values and brand personality as they help to form opinions about the brand. As marketing tools, Pull&Bear can use its websites to communicate. Also, to develop internal meetings between staff and head office can be used to create and enhance awareness of brand. Pull Strategy to be used in order to inform about the new products of Heritage Collection furthermore of the rest of collections such as XDYE or Sickonineteen. It helps to persuade to customers to acquire more products of Pull&Bear as accessories. Pull&Bear can use mass communication tools such as print, online, offline media (magazine for men).
  37. 37. modern appearance Pull&Bear’s physical facilities should be visually appealing. Pull&Bear’s employees are well dressed and appear neat. Pull&Bear provides its services at the time it promises to do so. When you have problems, Pull&Bear is sympathetic and reassuring. Employees get adequate support from these firms. Skills Workers Pull&Bear does not give you individual attention. Tangibles Reliability Responsiveness Assurance Empathy 7.5- People, Process and Psyhical Evidence Pull&Bear has to overcome limitations of tangibility, inseparability, variability and perishability posed by products to achieve main objectives. A good way to put the business in the position of getting repeating and loyal customers is to implement the use of the five Service Quality Dimensions. It serves us to reduce the gaps exist between the service provided and the service expected by customers. People are the most important element of any service or experience. They are vital for delivering high quality service. RRHH Pull&Bear has to recruit the right staff and training them appropriately cater to customers. Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for. IT REFERS TO THE SERVICE PROVIDED TO A CUSTOMER. IN TODAY'S COMPETITIVE ENVIRONMENT, GOOD CUSTOMER SERVICE CAN GO A LONG WAY TO HELPING BUILD A POSITIVE MARKETING MESSAGE IN ORDER TO KEEP LOYAL CUSTOMERS AND INCREASE THE SALES. Servqual dimensions People are the most important element of any service or experience. They are vital for delivering high quality service. RRHH Pull&Bear has to recruit the right staff and training them appropriately cater to customers. Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for.
  38. 38. Pull&Bear should continue to improve the following: - To set up customer service courses for the sales personnel more often. - Drawing up programs for staff, emphasizing on the product: training about knowledge of product, the concept of each collection and the client profile in order to provide a good service. - Increase the internal promotion in order to motivate the team avoiding staff turnover. (See The Mckinsey 7Ss Framework) - Create a corporate atmosphere where every employee has strong sense of responsability and satisfaction knowing that his or her actions directly contribute to well being of the company. Process: The way in which service is delivered to the end customer determines the service process. In the case of Pull&Bear, a customer can obtain the product either online o phsysical stores. The distribution takes place twice a week and each delivery always includes new models, so that the stores are constantly refreshing their offer. The process should be improved by the following measures: Having flexibility to resolve the last changes time are solicited by customers, keeping the same service quality. To improve and update the online website and the app by phone regularly in order to offer a quality service. Create a customer service department in each shop and create an online customer feedback
  39. 39. Physical evidenceis an essential ingredient of the service mix. Pull&Bear pays attention to the store interior. The company wants to communicate the product's message and emotions through its shops and websites. Everything is carefully studied in order to achieve more sales, type of lighting used, space layout, furniture, music, visuals and all materials to offer all the best to customers. The current store concept is inspired by the “lofts” of New York. The latest technological designs have also been introduced in the Pull&Bear establishments. In this regard, a series of touch screens, computers, etc. are available in order to share all the experiences with the brand through social networks. The following tangible are recommended to maintain a good aspect of the company: Vouchers can be given in the shops and online shop for futures sales and create special voucher for VIP customers in order to create loyalty. (See the Gannt Chart, page 18) Staff have to be clean, tidy, friendly and very helpful and well encouraged to push the new product, and to make more sales. Articles timing should be in line with promotional activities.
  40. 40. 8.- Implementation 9.- Control
  41. 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ACTIVITY RESPONSIBILITY REVIEW DATA Review and developed marketing objectives Marketing Manager Monthly and annual reports Develop staff Training Programme Marketing Executive/ Human Resources Establish Online Advertising Head of Advertising and Marketing Manager Monthly Update/Developed Website maintenance Design Departement/ Marketing Executive Weekley Monthly Manage the Service Quality Gap Marketing Executive/ Human Resources Monthly reports and diary reviews Establish Print Advertising Advertising Quarterly Regular Marketing Audits Marketing Manager Monthly Update/Developed Mass Media Marketing Department/Advertising Monthly and weekly reviews The company needs to have one designated person who would be following up on overdue activities. Reviewing progress will also help us learn from mistakes so that are can improve plans for the future. 8.- Implementation IMPLEMENTATION IS THE DAY-TO-DAY ACTIVITIES THAT WILL EFFECTIVELY PUT THE PLAN INTO ACTION. THIS IS THE PROCESS WE FOCUS ON THE who, where, when, AND how. PROPER IMPLEMENTATION CAN GIVE A COMPANY THE EDGE IN A MARKET WITH SIMILAR MARKET PLANS. EMPLOYEES NEED TO RECEIVE INFORMATION OF THE TASK
  42. 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MARKETING PLAN PROGRESS SHOULD BE MONITORED IN LINE WITH THE PROPOSED MARKETING OBJECTIVES AND ACTION OF THE PROMOTION PLAN. TO ASSESS ITS EFFECTIVENESS SO THAT ISSUES CAN BE DETECTED AT AN EARLY STAGE AND APPROPRIATE ACTION TAKEN. 9.- Control Budgets (short-term) - Staff training courses focusing on for product knowledge, 5% of budget. - Store managers also have higher incentives 2% of budget. - Promotional Activities, 10% of budget. - Communication Plan, 15% of budget - Promotional activities, 10% of budget Targets (short-term) - Increase monthly sales of products by 10%. - Brand awareness and customer loyalty by 90% - Customer satisfied with customer service levels by 90% - Web enquires to be answered instantly within 48 hours in order to satisfy Two options exist to monitor against marketing objectives; short-term targets and short-term budgets:
  43. 43. See a full communication plan, Gantt Chart in Schedule Establish Online Advertising, banners, SEO, PPC Update /Developed Mass Media Develop Staff training/ Human Resources Department MEDIA MIX SEPT 2012 OCTOBER 2012 NOVEMBER 2012 DECEMBER 2012 JANUARY 2013 FEBRUARY 2013 MARCH 2013 APRIL 2013 Online Adverts Budget % Objective DRIP AIM (RIP) 10% Press Advertising May 2013 Mobile phone (DRIP) 15% (DRI) 5% Pull&Bear website (RI) 5% Sponshorshi (DP) 15% Collaborative music events and fashion Direct Marketin g Regular e-mails on new products versions (DI) Establish print advertising campaigns men’s magazines Social Media Facebook/Twitt er, Join FB Groups, FB (DIP) 5% 5% Staff Trainin g Customer Relationship/ Brand Building Online Video advert (I) 5% Viral campaign. Awareness to target market Vaucher,AffinityCa rd Postcard notices that are targeted specifically to the customer Update Online content (RP) 10% (RIP) 12%
  44. 44. Task 2 Evaluation Report
  45. 45. Marketing plan is extremely important and useful to marketers. This allows Pull&Bear to identify and evaluate opportunities that might lead to achieve overall goals and also emerging the threats. The situation of the market where the brand is placed is stable, certain segment leaders have maintained their position, the products are relatively standardized and consumer are well aware of the products in the market. When any product is in this stage, to gain market share is really difficult and expensive. For this reason it is very important to identify the DsC and FsCs and their competitive advantages. In order to do this we have to identify strengths and weaknesses as well any external threats or opportunities. We need establish marketing objectives that would lead us to work in order to achieve them. The setting of these objectives is important in providing the organization a clear and defined direction in all of its workings. As McDonald (2008) states ‘the purpose of marketing planning and its principle focus are the identification and creation of competitive advantage’. In the case of Pull&Bear we will do this with coherence using standards tools and methods. Marketing orientation will contribute to the company: Understanding current situation: Provide your Organisation direction:
  46. 46. As we said above through the marketing plan is developed a strong understanding of the company’s strengths and weaknesses, goals and values and the opportunities and threats that provide. It establishes marketing objectives that we have to work in order to achieve them in order to provide and secure the future of the company in the market. Using SOSTAC frameworks will help us to work to a common set of goals. (See Task 1) The consequence of this analysis leads to defend that firstly Pull&Bear should first concentrate all their efforts toz run a growing number of consumers who are looking for an image benefits and social identification through clothes without leaving aside the interest for comfort and price. The essence of marketing is to understand the customers' needs and develop a plan that surrounds those needs. Through the analysis of the SPT, the potential market has been identified hence the company can make informed decisions as to strategy used to target the market. In the case of Pull&Bear cultural changes have taken place, to make a consumer more interested in their look. This new consumer wants to feel attractive and the comfort is valued. Also, they pay attention in another attributes like quality and design. On the other hand, their customer has grown older and has stopped to use Pull&Bear because it is associated more for younger generation and it is not adapting to awareness of the new client who prefer to wear comfortable, elegant and simply clothes. It is carry out loyalty programmes in order to retain customers. Strategy Development: Identify Potential Customer and understand needs
  47. 47. Appendix
  48. 48. History Pull& Bear is part of the one of the world’s largest fashion distributors, the Inditex Group. This Spanish Company started up in 1991 with a casual and laid-back commercial offer designed for young people. Pull & Bear company produces, as mentioned above, mostly youth clothing for women and men: shirts, t-shirts, sweaters, outerwear, footwear and various accessories. Today the brand Pull& Bear has more than 700 branded shops, which are in the 51 countries. Pull & Bear is enjoying rapid international expansion as a result of their fashion philosophy which merges creativity and quality design together with a swift response to market demands. Pull and Bear clothes are available at the Pull&Bear shop online, following e-commerce launches by Pull&Bear across the leading European markets, where Pull&Bear generates the bulk of its sales. In the same line, Sickonineteen: Also known as Sicko19. This line is perhaps something simpler but with the same tendency youth. The favourite of the girls with many t-shirts, dresses or shorts. 2.- The second line is directed at more adult consumers who have grown up with the brand. For them Pull&Bear creates garments that are inspired by the latest international trends for both daytime and evening wear, and that can be worn at work and during leisure time. This line adapts these trends to the needs of Pull&Bear customers, making them more relaxed and turning them into easy-to-wear garments. Pull&Bear has two completely different lines for both guys and girls: 1.- XYDC: On one hand, teenagers will find the more casual lines in stores in the form of sweatshirts, t-shirts, jeans, Bermuda shorts, plimsolls and hats, where cotton is the main fabric. This line set much of the street trends to develop that delight young.
  49. 49. Is in this line where recently launched a new collection Pull&Bear Heritage, focused mainly a demanding market It is an evolution of a part of the regular Pull&Bear collection to make it more “sober” and less “street”, always trying to keep the “vintage”. ‘The collection is aimed at people who want to dress well, without “fireworks”, people who want to feel good about their clothes and want to feel modern and contemporary’ Vicente Quintela, Designer of Collection Understand the Collection, Heritage style enthusiasts argue that Bohemian fashion is 20% clothing, 30% attitude and 50% freedom of thought. Men are taught from childhood to “be their own man.” Perhaps Boho style is the perfect opportunity for modern men to be creative and interested in fashion without compromising their individuality. The textile collection is enhanced by accessory such as shoes, jewelry, fragrances and sunglasses. The information collected shows Pull&Bear how the main companies take the market consumers between the ages and the purchases power. The use of these parameters to create a perceptual map provides Pull&Bear to identify opportunities to increase customer satisfaction among young adults. Purchaisingpower + - Age < 15 15 - 25 26-35 36-50 > 50 Figure 2 – Perceptual map
  50. 50. - Being responsible for understanding a specific brand or product. Having specific strategies based on the product or brand and have a solid understanding of how you can promote and market these products. I would look at the market, gain information on who wants to buy that specific product and what drives the product to sell.Product Manager or Brand Manager - To design the marketing strategies for the company to help expand business and grow. - Having a contact the day to day with a specific brand and is their point of contact for any and all issues. - Creating meaningful messages through words, ideas, images, and names that deliver upon the promises / benefits an organization wishes to make with its customers. Furthermore, being responsible for ensuring that messages and images are delivered consistently, by every member of the organization. - One of the key activities is to integrate an organization’s goals, strengths, channels of distribution, competitive environment, target markets, pricing, core messages, and products into one cohesive document known as the Marketing Strategy. What can I contribute to the company? Catiana arreroT

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