Logistics, Costs and Shipping - Brand Karlota - Case Study Example

KARLOTA BRAND Student’s name Code & Course Professor’s Name University City Date Logistics The products design will be developed in Australia, where specific designing approaches will be incorporated for the brand. This will be instrumental so that it can assume the desired design for the product. The entire design aspects for the product will be addressed in divergent aspects while specific considerations will be placed on quality of the design. The designs will be sent to the manufacturing company in china for implementation. The outsourcing strategy is attuned to divergent advantages realized in China. This approach will ensure that the products are received and dispatched effectively. The shipments will be delivered to Australia through Australia Post Delivery Post. When the products are received in Australia, they will be stored in the company’s warehouses awaiting distribution to potential consumers. i. Manufacturing Production and manufacturing is an important aspect when bringing new fashion products and collections to the market. Each brand has its own strategy that meets their customers need and distinguishes it from its competitors. Therefore, the brand Karlota will have its own business plan that includes manufacturer location and methods of sending the products. Taking the advantages of the development of global trade to the business in different ways the brand will have the products manufactured in a factory in China. This will bring many benefits to it such as being close to Australia to reduce shipping costs, guarantee a good quality products, and being able to visit the facility in person regularly to check the execution of the fitting on test or bulk units. Because Karlota is targeting a certain group of people who wants to look fashionable and wear things that suite their age a specialist designers will design the products and send it to the manufacturer to make. This will help the brand to be more flexible with changing the styles, colours, designs, and fabric according to the upcoming teenager trends. Offering fashionable and trendy products that are appropriate to this specific target group is main goal for the brand Karlota. New stocks will be shipped back to the Australia to Karlota Brand every two weeks. ii. Costs and Shipping: (from manufacturer to warehouse) The brand will be responsible for handling the cost incurred in shipping the products from China and to the consumers. The cost of shipment will be determined by different factors –weight, freight, size, delicate items and distance. Storage cost, on the other hand will be covered on the rents paid to the warehouses. The following is a comprehensive cost incurred when shipping the products to Australia from China. Reserve cost will be included when distributing the product to the Australian consumers. The brand has found two options to deliver the goods from the manufacturer to the warehouse. The manufacturer can be paid in advance to cover the shipping from China to the brand’s warehouse in Australia. This will reduce the costs of having an additional deliver services to get the goods to the warehouse. A logistic services company is another option to transfer the containers from the manufacturer to the warehouse but that will increase the total cost for shipping. However, freight estimated time and price depends on the shipping method and date of shipping. This means that there are different prices for each type of shipping either by sea or air. The cheaper way is by sea that will take about 2-3 weeks and the more expensive is by air that will take about 8-16 days to get the containers from China to Australia. The company will have both choices to either arrange the stock regularly to be delivered every two weeks, or get an express delivery for extra cost. In order to avoid any extra charges for late port pick up and storage fees, the company will have a private truck to get the goods to the warehouse. Orders will be in small containers because of the limited stock that the brand will have according to its business strategy. iii. Costs and shipping: (from warehouse to customers) In terms of customers shipping and delivery, it will be only within Australia as a beginning of the business. Australia post is the best available option currently because they provide good services including tracking, delivering to 11.2 million delivery points in Australia, having an easy online payment method, offering speeds choices, offering pick up from post office option and optional features at an affordable prices. They have some shipping solutions for local shipping that save time and money for both the company and customer. It is well known and trusted network. The company will charge customers an extra fee for express shipping if they want it in a shorter time, whereas, free shipping will be offered for all orders over 50$. A free returns policy is also offered to customers in case of returning the products to Australia post-Reply Paid service. They will send the customers envelopes, postcards, coupons or self- mailer with all orders to allow customers to use the envelopes to reply to the brand. Although the brand will pay extra charges for this service, it will give the customers the convenience to respond faster in an easy way with no fees. Each Reply Paid respond will cost about 0.51 to 0.89$ depending on package size, weight and barcode availability. iv. Packaging: The products can be packed into bags, tags and boxes where the total cost of the package will be included. The packaging shall be done by the company’s logistics team. Simply put, the price of the package will be inclusive of the product and the package. The package will be obtained from a local company, Amcor. Promotional strategy This brand marketing strategy is based on social and more fun marketing methods. This is because of our target group who are young, energetic, alive, friendly and funny. We need to be close to them to attract them in order success the business. The type of fashion offered by this brand is quite different from other fashion brands because we are targeting both parents and their teenage daughters at the same time. Raising brand awareness requires powerful strategies to success. The current generation buyers are tech savvy and social media maniacs hence the brand needs to realign to the trend to build its personality through social networking (Harris 2011). The successfulness of Karlota is a balance of total acquisition cost and customer’s life value that should balanced (Stok 2014). Customer’s acquisition for the brand will employ divergent strategies in addressing key aspects that pertain to the brand. Given the proliferation of online purchase and its managed logistics online shopping will be the primary strategy used to present the products to the consumers. In this respect, consumers can be able to log into the websites and mobile apps, where they can be able to purchase selected goods given their divergent interest. Evidently, apps are easily downloadable, and it can enhance the shopping experience. The app will be tailored to the brand where specific pricing and discounts will be attached, and a variety of “check out” options will be available. The brand will come in divergent products where the consumers can choose from these varieties. As such, different consumer taste can be incorporated into the brand. Karlota brand will be branded on clothes as its initial strategy. Upon successful penetration into the market it will diversify into different product type. The brand’s value will be realized through segmenting the products in that different clothing accessories will be suited for different purposes: sportswear, casual wear, and official wear. Tentatively, the product’s quality will showcase a higher degree of lifestyle, hence directly competing with other brands. Promotional discounts will be used where, for instance when a consumer will be entitled to a 20 % discount on clothes after purchasing a specific type of clothes over AUD 30. When business level outcomes are of quality, the customers are likely to remain loyal to the company. Provisioning quality products are essential to retaining customers. Superior quality product implies that consumers will be willing to purchase the brand. The benefits of customer retention are to minimize the frustrations between the customers and customer care departments.Whereas awareness as a first step in augmenting consumer purchase; celebrities will accelerate the consumer’s purchase decision. Evidently, celebrities have a higher propensity of increasing awareness for new products, brand new ideas, product launches and the brand platforms. The celebrity’s propensity to be identified and recalled creates additional attention to the brand. As such, Kiernan Shipka, a 14-year-old actress will be well-suited t convey the brand’s value. This will enable Karlota gain awareness, contrary to traditional advertizing. Evidently , the success of such strategies has been realized by Mazda’s Multi-celebrity approach, Mila Kunis and Jim Bean, Ashton Kutcher and Nikon, Claire Danes and Audi, to name a few (Smartsights, 2014). Online promotional strategy Whereas brand marketers have relied Facebook and Twitter, the social media landscape has rapidly changed . Hence, Instagram, Vine, and Pinterest will be extensively exploited. Instagram will be effective given that over one billion photos are uploaded on the platform; thus facilitating easy share of pictures across all platforms. Creating of social media presences is very essential With the availability of media mix, going through social media reach customers effectively. The promotion indicates the product is cost effective, shows the diversity of the products and personalizes organization. The fashion brand company successfulness, need to integrate other media in its promotion, which include owned media, paid media, and earned media. Send stuff to other youtube users for it to be accepted by others Fashion hauls on the latest product (sponsor video) The creativity of the ads make the company outstand its competitors hence being successful using the system are also among vital social media sites for developing the brand awareness- the sentence doesn’t make sense. Advertisements and promotions will be mostly online through the social media because people of this age group keen to be online according to (Lenhart). The key to success in online retailing is to be active online to overcome the challenge of getting customers as much as possible without having a physical store in the market. Therefore, the online promotional strategies the brand will follow is by promoting its products Source of new customers will be e-commerce Social Media Strategy Hence, the social media is an essential marketing tool Celebrities will be engaged in helping it gain larger audience and awareness. Pinning relevant and celebrity pictures will capture the audience’s attention and expand the audience (Smartsights, 2014). Free advertisement tool Brand awareness is an imperative aspect when it comes to the launch of new products. New media, notably social media has emerged as an important aspect of raising brand awareness. While it saves considerable marketing costs, its inclusion in raising karlota will enable it gain significant awareness. In this regard, the social media strategy will be employed as a primary awareness tool (Stok, 2014). Set up brand’s pages and accounts Facebook is among the powerful tool for marketing currently with its launch for creative, interested business organizations through a portal that marketers to do promotions and advert of the products. Advertising the brand Karlotta through Facebook, the product will reach at least 800 million daily users hence easily marketable (Facebook 2011). Using Twitter will also help to engage the target audience directly at a platform in a marketing technique hence raising brand awareness, which will improve the productivity (Twitter 2011; Frost, 2012). Most of the teenagers consumers meet on the mentioned social media cites to discuss their lives and include their purchase interest of the fashion trendy clothes, shoes, and accessories. When free photos of the company products are displayed among the consumers, the consumers are doing free advertisement for the company hence increasing the brand awareness. Sponsorships a. Cheaper advertisement tool b. To increase brand awareness and online presence, and increase sales for the products. c. Sponsor free items from our collections and send it to teenager celebrities. YouTubers and bloggers such as Chloe Moretz, Sarah Ellen, Miss Mae 144 on YT (15 k subscribers) will post the ads on different media channels (YouTube, Instagram, Twitter). They should provide our website link on their page and platforms as well including the brand logo on the ads. Coupon codes will be given to each celebrity for their audience ex: Code: Chloe10 hat is for Chloe’s fans who will receive 10% when shopping from our website. Links can be provided to popular people that most of the teenagers will like and follow it to make making the brand awareness. Teenagers are highly influenced by celebrities who make it important to collaborate with actors and actresses. They can be used for making ads, and perhaps choose one of the famous more loved celebrity by young girls to be the face of the brand to attract and inspire them. Online community: Name: The Korum Why: To increase brand awareness and online presence, and increase sales. The provisioning of post-purchase support will be facilitated by “The Korum”. Evidently, engaging with the consumers will be instrumental in facilitating consumer retention. How: using the e-commerce community, The Korum, provides customers with engagements. Arguably, these engagements through “the Korum” will facilitate consumer feedback on the brand. In this way, the brand can be able to address design flaws or attune the client’s needs to the product. The Korum will enable exchange of ideas between like-minded consumers hence create a robust interaction amongst them (Harris, 2011) Mobile application The online strategy will eventually transform and shift into a mobile application. Google Ads Google ads will be used since they are relatively inexpensive. Tentatively, they can reach out to a large number of audiences. Cost: The cost incurred per click in Google AdWords ranges between $ 1 and $2 on the search network. CPC on Display Network, on the other hand, cost under $ 1. Emails: Emails can be used to contact direct and eligible clients to purchase the products. In this way, the brand can be able to identify what is needed by the consumers. Print Media Print media will be frequently used two times a week. This is important since it is a relatively new brand; hence capturing the audience’s attention in various aspects will be instrumental. Ads size and design will not be relatively large, so as to reduce the cost. The brand's professionals will handle the design aspect for the brand. This will feature the inclusion of numerous colors and fonts that appeal to the readers. Its usage will be imperative since it will help create brand awareness for the products in various aspects. References Ran, Z. (2011)"Why could Vancl develop so fast. Research on the hints Vancl brought for online retailing apparel industry", Business Strategy Case Study, pp. 64-66, 2011. Smartsights. (2014) Leveraging content to drive awareness, permission and sale - Smart Insights Digital Marketing Advice. accessed on 17th May 2014. Retrieved from Stok, D. (2014) Start-up Killer: the Cost of Customer Acquisition. Start-up Help. Viewed on 17th May 2025. Retrieved athttp://www.forentrepreneurs.com/startup-killer/ Frost, S. (2012) The Rapid Growth of Online Shopping is Driving Structural Changes in Retail Model. Australian and New Zealand Online Shopping Market and Digital Insights Harris, L. (2011) Building a personal brand through social networking, Journal of Business Strategy Read More