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The Marketing Planning Process
HERITAGE- collection-
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Pull & Bear was established in 1991 as a result of a market diversification initiated by theInditex 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 adaptedto their needs, while maintaining the quality and price.
The fashion industry has traditionally met the growing demand of women’s fashion andhas ignored men’s need of style and comfort. In early 2011, Pull&Bear launched theHeritage collection, a range which catered to men in thirties.
In order to gain market share in the mens wear segment and to maintain the increasingdemand of men’s collection from our younger brand loyal customers, a two step mediumterm 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
Task 1
Rationale & Medium Term Plan
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 clearpoint of reference for casual, laid-back clothing. The chain offers special spaces in thestores 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 beganas 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 wecan 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 inSpain, Italy, Portugal, United Kingdom, France, Germany and Netherlands.
1.- Introduction:
2.- Rationale for chosen scenario
The fashion industry is very competitive. The companies are constantly launching new productlines or improving the existing ones. The reason for developing a marketing plan in the mediumterm is because it seeks to gain market share in existing markets. Pull&Bear does not escapecompetition even though its a part of the global Inditex Group and have to rethink its strategyconstantly, and hence it launched the Heritage Collection which meets the demand for men’scollection 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 aggressivepromotion to increase market share and change customer’s perception of the brand. The Heritagecollection although targetting a niche segment of the market, is currently associated with mediumquality and cheap price suitable for younger generation.
Chapter 01 Situation Analysis
INNOVATION/ADAPTATION CURVE VALUE CHAIN ANALYSISTHE PRODUCT LIFE CYCLE (PLC) PESTEL DIAGRAM SPICC ANALYSIS PORTER’S FIVE FORCES
HERITAGE- collection-
CompetitionMonopoly
sa
les
Stage 1 Stage 2 Stage 3 Stage 4
First competitors Mass production Obsolescence
Idea
Promotion
compe
titors
Introduction Growth Maturity Decline
Heritage Collection is in the earlymaturity stage of its life cycle.The product is already on the storesshelves and customers can purchaseit. Therefore this product is acceptedin the market and sales are growing.
(PLC)
Based on the data obtained from PCL (Product Life Cycle), it shows us that the productis currently at the maturity stage. The brand is accepted and can be purchased in storeor online.
There are many competitors in the market with very little difference between them. Thisrequires an injection, by injecting new life into the product, it will hopefully increase salesand start to sell more.It will also have an affect on the brand name of Pull&Bear, which too will reflect on thecompany 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
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 recentlylaunched on the market, it has alreadyreached a maturity stage. The majorityof new customers are considered tobe in between the early adopters andearly majority stage.
Early Adopters:They are attracted to most innovativeand stylish brand before the decide topurchase. They are influenced by thecommunication media. Its veryimportant for a good appearance andbe accepted by the rest of the people.
Early Majority:They need time to be convinced thatthe product is in the market. Innovationis 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 EarlyAdapter
EarlyMajority
LateMajority
Types of
customers
3.- Situation Analysis (II)
Value Chain Analysis
Pull & Bear is a vertically integrated brand which allows control over thewhole value chain and reacts more quickly to customers demand. Thevalue chain is totally orientated to its customer. Its advantage is that it (thebrand) is highly flexible, does not compromise on speed and innovation,but we also see that given the economic crisis that this may affect productioncosts.
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 thestrengths and weaknesses of Heritage Collection and the purpose is tokeep their audience that has grown up with the brand while also acquiringnew customers.
The value chain model is an excellent framework that identifies andanalyzes all value creating activities within the company.The objective is to analyze the feasibility of its operational modeland identify its internal strengths and weaknesses.
3.- Situation Analysis (III)
Technologydevelopment
Innovation process developed through IT integrationenables store managers to restock quickly and in smaller batches.Good Communciation between headquarter and store
Vertica Integrationstructure
Control over all key postsEfficiency in all value chain
Marketing&Sales
Expensivestores locations
Customer value,cost to consumer,communication
Sales efectiveness
After salesservice
ProcessOperations
fashionable garmentproduction closeto headquartersevery week
Communicationwith stores andmarket experts
OutboundLogistics
Efficientdistribution system
Focus on flexibiltyand quick response
InboundLogistics
Inventory control
Services forloyal members
Developing and compensating all personnel
Recruiting, hiring, training new personnel
HumanResource
Infrastucture: Head office in Spain, office overseasEmploys 700 people Is a part of Inditex Group
Customer ServiceWarranteePost-Service
PRIMARYACTIVITIES
SU
PP
OR
TA
CT
IVIT
IES
The analysis of the external audit allows us to evaluate the externalenvironment to understand opportunities available to the company andthe threats the company might have to face.
The PESTEL diagram shows us that the companymay experience a number of threats which canaffect to Heritage Collection in performanceor 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 affectthe decrease in consumption, however it alsoenhances the exploitation of new marketopportunities such as the Asian market.
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PESTEL analysis
Opportunities
Threats- Global economic crisis, which affectsconsumption. The high rate of unemploymentand lower per capita income makes thepurchasing power of consumers be limited.
- Pull&Bear is exploiting opportunities for anew 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&Bearand the fashion apparel industry, such asposible export regulation as well as politicalstability within the regions that Pull&Bearoperates 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 anddemands the same social responsibility fromits 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 jurisdictionsystem of each country because the nationallaw have a strong impact of the textil industry
- Processes of internal and external audit, toensure 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
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Suppliers
Intermediaries
Publics
Opportunities
Threats
Customers
Opportunities
Threats
Competitors
- Pull&Bear is very active in creating socialprojects in poorer countries and providingaid 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 itscustomer, always watching out for newtechnologies, social movements and thelatest artistic or musical trends. All of this canbe seen reflected not only in its designs butalso in stores
- The customer service team is key in thecompany.
- Men’s fashion is growing in volume
- Customers are increasingly demandingand less loyal.
- The client has reduced their purchasesbecause 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 thereforeincreases bargain power and minimizes risk.
-Pull&Bear has around 40 to 50 % stake inthe important printing, dyeing, and sewingcompanies, which gives them competitiveadvantage.
Threats
Laws different in each market could be a conflict for the company labor in one of Inditex subcontractors.
.- SPICC Analysis
SPICC Analysis
Porter’s five forces Analysis
Potentialentrants
Buyers
Substitutes
SupplierBargaining
power
Threat ofsubstitutes
Bargainingpower
Threat ofentrants
Porter’s five forces Analysis
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The following analysis allows us to see Pull&Bear´s profitability.
We can analyse the potential substitutes and the impact this can have inthe 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 ourproduct as will help us to act if there is any problem.
The Marketing Planning Process
New Entrants
High entry barriers,many barriers toentry competitorsdue to brand,network, size andunique resources.
Threath depends ofcurrent state ofeconomy.
Suppliers
Relatively low dueto the large amount.Pull&Bear canchange of supplierif there isdisagreement.
Its partly ownsimportant suppliersto strengthen itsbargain position.
Substitutes
There is not a threatof substitutes.It has a wideproduct portfoliofrom clothing togadgets and coveralmost the wholefashion industry:earring,sunglasses...
Buyers
The power of thebuyer is lowbecause they areusually less faithful
Customer is lookingfor low prices andquality
CompetitiveRivalry
Competition on price,quality, design,innovation as well asmarketing hasintensified across awide range of markets.Strong market position.
Pull& Bear isconfronting theinternational,national companies aswell as small stores.
(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 financialinvestment to make a strong campaign marketing.
- It has very competitive prices in the market. comparedwith other brands.
- Quick response to changes in the consumerand has a vertical structure that covers the entireproduction process: design, manufacturing, logisticand distribution. Just in time
- Using the latest technologies medium such as socialmedia 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 commercialcentres. Offering the customers the opportunities toshop online and offline.
DISTINCTIVE COMPETENCIES CRITICAL SUCCES FACTORS
From the SWOT analysis the 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.
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.
Conclusion
Marketing Audit
Internal External
Influences19
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.
4.- OBJECTIVES4.1 CORPORATE OBJECTIVES
4.2 PROPOSED MARKETING OBJECTIVES
4.3 THE PLANNING GAP
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 missionand vision of the company.As long term objectives (3 to 5 years).
From Marketing objectives and are shorttactical objectives.Short time (3 to 6 month)
Set by:Head of Marketing. Based on theobjectives of the business organization.They are medium term plan.
CORPORATEOBJECTIVES
FUNCTIONAL
OBJECTIVES
OPERATIONAL OBJECTIVES
2014
2015
2013
TIME
INCREASE
market share
sales
customers
T h e re f o re , m a r k e t i n g c o m m u n i c a t i o n o b j e c t i v e s c a n b e f o r m u l a t e d a s f o l l o w s :
1.- Corporate ObjectivesPull&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 withinnext one year.Develop and maintain the website to increase the visits by 20% and to maintaincustomer loyalty.
2.- Marketing Objectives:Marketing objectives are established to exploit the strengths of Pull & Bear to overcomethe 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 customersand 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.
15%
Over the years there has been a constant growth in sales of Pull & Bear due to the strongstructure 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 andquality will result in the increase in sales of Heritage Collection.
Through the analysis of DCs and CSFs we realize that the company has sufficient resourcesto 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
mill
ion
en ¤
The Planning Gap Analysis
THE PLANNING GAP WILL NEED TO WORKTO IMPROVE SALES BY APPROXIMATELY15% WITHIN 3 YEARS -THE FIGURES ARE AN ESTIMATE COLLECTED THROUGHRELATION/ANNUAL REPORTS WWW.INDITEX.COM
5.1 GROWTH STRATEGIES
5.2 COMPETITIVE STRATEGY
5.- MARKETING STRATEGIES:
Ansoff’s Growth Matrix
MARKETPENETRATION
Organisation aims to sell itsexisting products to morepeople within the marketit already operates in.
PRODUCTDEVELOPMENT
The new product is developin the existing market.
Organisation seeks to sellits existing products tonew markets
MARKETDEVELOPMENT
DIVERSIFICATION
It seeks to increase profitabilitythrough greater sales volumeobtained from new products andnew 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 setof 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 generatethe goals that have been proposed. The main objective is that customers usemore products and services offered by the company.
Thus, we can say that Pull & Bear has to taken certain measures to increasemarket share, such as improving the distribution network and increase sales ofan 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.
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Competitive Strategy:
PULL & BEAR APPLIES THE STRATEGY THAT HAS ENABLED THE SUCCESS AND RAPID GROWTH OF THE INDITEXGROUP. THEREBY ACHIEVING ITS SECTOR LEADERSHIP USING POLICIES TO REDUCE COSTS BUT ALSO DEFINESITS 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 anddesigners 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 achievethe benefit.
Raw materials are acquired abroad. There are Purchasing delegations in many countries.
6. - Segmentation, Targeting and
Positioning
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Establishing STP will help us to identify the specific attributes and needsof a narrowly defined marketing strategy. Targeting involves prioritizing yoursegments based on marketing potential and profitability.
Positioning
fashionquality
value for moneypersonality
usefulheritagepractical
potential market
Targetingmen who are interested infashion with accessible clotheswithin price range as well aseasily to purchase through usingnew technology.
more adult and masculine publicthat it is accustomed to and thathas grown with brand.
men that look for modernnesswithout shrillness.
Geographic: UK
Behavioural:
Behavioural:Know the product but not allproduct range
Bohemian, educated,urban and comtemporany,sensitive, demanding withhimself
Segmentation
Demographic:
Age 30 to 40 years old
Gender: Males
Demographic:Income:£18,000 - £30,000
Population density:Urban
PositioningSegmentation
The STP Process
Targeting
6.1-Segmentation
The segmentation process involves segmentation by population density and classified as urban.
The cl ient prof i le is demographical ly 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.
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6.3-Positioning
Having segmented the market and have determined the target market, we must decidehow to position ourselves to encourage customers to choose the product over thecompetition.
Fashion Pro
Price +
Price -
Fashion + Fashion +
Perceptualmap
Positioning is not what is done to the product, it is what is created in the minds of thesecustomers 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.
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 purchasingbehaviour ' Its demonstrates us male sector (range 28-35) can be the most lucrative to sellclothes 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:
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Analysis of the 7 Ps process(PRODUCT, PRICE, PLACE, PROMOTION, PEOPLE, PROCESS
AND PHYSICAL EVIDENCE)
7. -Tactics
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 in Time
benefit: Tangible
Quality Style
Fashion
Design
Comfortable
an up- to-the
Restraine
Affordableprices
COREPRODUCT
ACTUAL
AUGNMENTEDPRODUCT
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 customerspurchase atleast one product. The strategy at this level involves the featuresand benefits to ensure that the product offers a differential advantage fromour competitors.
Level 3: Augmented product: What additional non-tangible benefits couldwe 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 thefollowing questions:
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 CostBreak 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.
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
mill
ion
en ¤
The planning gap will need towork to improve sales byapproximately 15% within 3 years.
Supplier
Company
Wholesale
Retailer
Customer
VerticalBackwardIntegratio
VerticalForwardIntegratio
Vertical Integration model
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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.
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 maturitystage.
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 StrategyTo persuade customers throughmarketing communications
Push Strategy
To push the sales
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).
modern appearancePull&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 andreassuring.
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 dimensionsPeople 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.
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 del ivery 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
Physical evidence is 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.
8.- Implementation
9.- Control
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ACTIVITY RESPONSIBILITY REVIEW DATA
Review and developedmarketing objectives Marketing Manager
Monthly and annualreports
Develop staff TrainingProgramme
Marketing Executive/Human Resources
Establish OnlineAdvertising
Head of Advertisingand Marketing Manager
Monthly
Update/DevelopedWebsite maintenance
Design Departement/Marketing Executive
Weekley
Monthly
Manage the ServiceQuality Gap
Marketing Executive/Human Resources
Monthly reportsand diary reviews
Establish PrintAdvertising
Advertising Quarterly
Regular MarketingAudits
Marketing Manager Monthly
Update/DevelopedMass Media
MarketingDepartment/Advertising
Monthly and weeklyreviews
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
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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:
See a full communication plan, Gantt Chart in Schedule
Establish Online
Advertising,
banners, SEO, PPC
Update
/Developed
Mass Media
DevelopStaff training/Human ResourcesDepartment
MEDIAMIX
SEPT2012
OCTOBER2012
NOVEMBER2012
DECEMBER2012
JANUARY2013
FEBRUARY2013
MARCH2013
APRIL2013
OnlineAdverts
Budget %ObjectiveDRIP AIM
(RIP) 10%
PressAdvertising
May2013
Mobilephone
(DRIP)15%
(DRI) 5%
Pull&Bearwebsite
(RI) 5%
Sponshorshi (DP) 15%Collaborativemusic eventsand fashion
DirectMarketin
g
Regular e-mailson new productsversions
(DI)
Establish printadvertisingcampaignsmen’s magazines
SocialMedia
Facebook/Twitter, Join FBGroups, FB
(DIP)
5%
5%
StaffTrainin
g
Customer Relationship/
Brand Building
OnlineVideo advert
(I) 5%Viral campaign.Awareness totarget market
Vaucher,AffinityCard Postcard noticesthat are targetedspecifically to thecustomer
UpdateOnline content
(RP) 10%
(RIP) 12%
Task 2
Evaluation Report
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 theirposition, 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 diff icult 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 theseobjectives 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 andcreation 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:
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
Appendix
HistoryPull& 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 offerdesigned for young people.Pull & Bear company produces, as mentioned above, mostly youth clothing for womenand men: shirts, t-shirts, sweaters, outerwear, footwear and various accessories. Todaythe 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 philosophywhich merges creativity and quality design together with a swift response to marketdemands.
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.
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 modernand 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 “betheir own man.”Perhaps Boho style is the perfect opportunity for modern men to be creative and interestedin fashion without compromising their individuality.
The textile collection is enhanced byaccessory such as shoes, jewelry, fragrancesand sunglasses.
The information collected shows Pull&Bearhow the main companies take the marketconsumers between the ages and thepurchases power.
The use of these parameters to create aperceptual map provides Pull&Bear toidentify opportunities to increase customersatisfaction among young adults.
Pu
rch
ais
ing
po
we
r
+
-
Age
< 15 15 - 25 26-35 36-50 > 50
Figure 2 – Perceptual map
- Being responsible for understanding a specific brand or product. Having specific strategies based on the product or brand and have asolid understanding of how you can promote and market these products. I would look at the market, gain information on who wants tobuy 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 organizationwishes 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, targetmarkets, pricing, core messages, and products into one cohesive document known as the Marketing Strategy.
What can I contribute to the company?
Catiana arreroT
