Kingsize Big & Tall - Marketing Activities Associated with the Product and Promotional Strategy - Case Study Example

New product Executive summary Kingsize Big & Tall is a company that majors on the sale of men wears. The company not only develops the clothing line but also supports the marketing activities associated with the product. The company intends to strengthen the partnership that exists between it and the retailers of their products. The company has a diverse promotional strategy and they include a range of marketing communications. Contents Executive summary 1 1.0 Introduction 4 2.0 Situation analysis 4 2.1Pestle Analysis 4 2.1.1 Political Factors 5 2.1.2 Economic Factors 5 2.1.3 Socio cultural Forces 5 2.1.4 Legal Factors 5 2.1.5 Technological Factors 6 2.2 Competitor analysis 6 2.3 Customer/client analysis 7 3.0 SWOT analysis 7 4.0 Financial and marketing objectives 9 5.0 Overall marketing strategy 9 6.0 Segmentation, target market 10 7.0 Positioning 10 8.0 Marketing mix strategy 11 8.1 Product strategy 11 8.2 Pricing strategy 11 8.3 Distribution strategy 12 8.4 Promotional strategy 12 9.0 Budget 12 10.0 Strategy Implementation 13 10.1 Product Development 14 10.3 Marketing Strategy 14 10.4 Sales Strategy 14 11.0 Evaluation and control 14 New York: Free press. 16 1.0 Introduction Kingsize Big and tall opened its door back in the year 1972, the company started with opening a big store for men’s clothes in Inglewood Western Australia. The founders of the company are Don and Jen Blair. Through their strong and excellent leadership the company has gone from one strength to another and currently it operates 12 stores which extend all across Australia. The stores stretch from Western Australia, Queensland and Victoria with one branch in ACT (The Kingsize Big & Tall Australia website 2012). The company has a website and they use it to offer the men’s wear online. The company has long working staff members who have the necessary skills that are needed to understand the complexities of the market. Orders are made using various methods for example by the use of mail as well as telephone. As a company, Kingsize Big & Tall prides itself in offering the latest brands for the big men this can also be done to the executive lady product. 2.0 Situation analysis 2.1Pestle Analysis Before launching any new product it is important for any company to analyze the external environment the product will be operating in. A Pestle analysis is an important tool for carrying out this analysis (Jain, Trehan & Trehan 2009, pp. 40). 2.1.1 Political Factors The Australian government system is liberal and encourages free enterprise. Australia holds regular free and fair elections and thus the system of government is very stable. Other than through the legislative framework the government is unlikely to interfere with businesses. 2.1.2 Economic Factors High interest rates in the Australian economy may affect KBF’s introduction of the new products may become expensive because of high borrowing rates. The cost of doing business in Australia is also on the rise. However, unemployment rates in March have reduced to 4.2%. Availability of credit in Australia is constrained by the lack of confidence by banks in their lending practices. 2.1.3 Socio cultural Forces The Australian public opinion is highly influenced by materials from the media thus KBT can use the mass media to effectively advertise Executive Lady suits The Australia population is majority Christian with a small minority being of other religions. In designing the new Executive suits KBT must make sure they are not to revealing. Australia has a total population of 2.1 million with 67.9% between the ages of 15-64 years the target groups for Executive Lady. Australian earn an 2.1.4 Legal Factors Kingsize Big and Tall (KBT) new product must comply with Australian laws regarding the minimum quality a clothing product can have. The Competition and Consumer Act 2010 (CCA) will limit the number of ways KBT can compete and ensure they provide they produce safe apparels in the “Executive lady product mix”. The Trade and Practices act is also one of the factors that will affect the introduction of the executive lady suits. The Australian Competition and consumer commission regulations to protect disadvantaged and/or vulnerable from unethical advertising will also affect the new products. 2.1.5 Technological Factors Australia has a well developed telecommunication infrastructure consisting of mobile phone networks, Landline telephony. The communication Network consists of Fiber-optic connectivity and satellite connectivity. 9.37 million Australians have a landline telephone number, while 9.37 million have mobile phones. Thus, KBT is assured that its communication is effective in advertising and for other internal communication. Environmental Factors Australia is concerned about global warming and other environmental degrading human activities. KBT should make sure every aspect of the production and marketing of the product should not have negative effects on the environment 2.2 Competitor analysis The Women swear market has no single dominant player in the market but numerous firms have a small customer base with each concentrating on a particular niche. The market grossed an estimated $8.2 billion in 2011 recording a growth of 3.8%. The market is expected to have a compounded growth rate of 6.9% for the period 2011-2016. The demand for extra large clothing has increased by 70% over the last two years. The major retail clothing companies reacted to this increase by offering larger clothes but in trendier designs. Target is to expand its size range for Women to 20. While Amanda McCabe says they will offer stylish and affordable fashions to their customers no matter their size. Big W already has clothes of up to size 26 in its big sized women clothing range (Porter 1998, pp. 57). 2.3 Customer/client analysis Australian women are bigger-boned than other women in the world. They are also putting on a lot of weight but they still want to look smart. A large number of Australian women have set up businesses and have to wear executive suits when attending formal meetings. The demand for large-clothing sizes in Australia will grow especially in the suit segment. 3.0 SWOT analysis SWOT analysis is basically carried out so as to offer an outline of how the company is performing in the market. Over time Kingsize big and tall has been able to build some strength under which they currently operate and are also utilizing the available opportunities so as to continue been successful in their business undertakings. The experience as well as knowledge is seen as the major contributing factors to the success of the company. Another aspect that helps the company in achieving its goal is a large customer base with a considerable number of the m been loyal. With the loyal customers and the experience and knowledge the company seems to be in a more better position as compared to their competitors also offers them the diversity they may need so as to introduce new product lines into their line of products. Despite all these, king size big and tall contemplates on their expansion and inclusion of new products, the organization must ensure that they at all times recognize the scope of their business and operations and the quality of goods they offer to the customers (Fine 2008, pp. 45). As the company endeavors on the implementation of the new product it must guard itself from the existing as well as potential customers who may attempt to offer the same products. The strategy of establishing better relationships with the customers, suppliers and the retailers will assist a lot with dealing with the competitors. The industry in which king size operates in offers overwhelming opportunities for the company. The marketing opportunities also offer a number of challenges that over time the company can be able to solve and tackle them successfully. The table below shows a SWOT analysis of Blue Sky clothing company. The table will present the strengths, opportunities, threats as well as the weaknesses that the company faces. Strengths Loyal customers High level of experience and knowledge Strong leadership High number of skilled employees Weaknesses Loss of sight of the main goal of the organization Reliance on a single manufacturer which may hinder the development of new products into the company. Threats Large number of competitors like the Relationship with retailers may at times deteriorate in the retailers feel that they are been faced with internal sales if the company adopts internet sales for their products. Opportunities Loyal customers are more likely to buy new products that they may introduce Existence of gaps in the market which can be filled with new products The company can expand to international markets. 4.0 Financial and marketing objectives The mission of Kingsize Big & Tall is .in addition to this Kingsize Big & Tall aim at creating products that meats both style and sizes for all customers. During the next few years, Kingsize seeks to attain the following non financial and financial goals Financial objectives Expand their manufacturing capabilities Increase the distribution of their products Introduce new products into the company line of products. Increase the company’s revenue Non-financial objectives Introduce excellent lady products into the company Venture into new markets that is in terms of geographic locations Maintain healthy relationships with the retailers and at the same time introduce online selling of products 5.0 Overall marketing strategy Different companies apply different marketing strategies when marketing their products to the customers and at the same time trying to gain a competitive advantage. The company can adopt the differentiation strategy so as to be able to compete successfully. This is because the marketing strategy is appropriate for a target market where the customers are not sensitive of the price. Proper brand management leads to uniqueness of the product even though in most cases the final product is the same as that of the competitors in the industry. Thus the company will find it easy to brand their new product (Elliot, Rundle-Thiele & Waller 2010, pp. 60). 6.0 Segmentation, target market In marketing the new products KBT can use age-based segmentation to divide their markets into the following groups of plus size women: 18-32 year old career women market segment- this segment consists of young educated women who want to keep up with recent Clothing trends in the market. Most are independent and are looking more for trendiness rather than decency. KBT can target this market by making suits that are cut above the knee and reveal some cleavage. This segment considers style very important meaning even in the colder months their suits still have to fit well though they have to be lesser revealing. 32-45 year career women Old segment- Consists of mature working women and entrepreneurs who have already established themselves in themselves as respectable members of society. These segment want the clothes they wear to reflect respect and dignity. The suits targeting this segment must be of superior quality to identify with the sophistication of this group of women. 45-80 year career women old segment- consists of retired or retiring women who want simplicity in their clothing. The retired are likely to use their suits when they are travelling or attending formal occasions. Urban non-working women- This group consists of women who spend most of their time at home tending to domestic chores. On occasion they travel to meet the teachers of their children and they also need their suits on other special occasions. 7.0 Positioning The new plus size suits will be positioned as the most sophisticated formal suits for big women. The positioning will involve them being won by top executives in Australia and will be promoted using the punch line “Big and Sophisticated”. The suits will be offered at premium prices and their attraction to customers will be their superior quality (Elliot, Rundle-Thiele & Waller 2010, pp. 47). 8.0 Marketing mix strategy The discussion below offers details of the proposed marketing mix that Kingsize Big & Tall is likely to adopt for the new product (executive lady). 8.1 Product strategy Kingsize Big & Tall offers a wide range of products to its customers who are mainly men. The firm offers their wide in various colors. Over the next few years, Kingsize Big & Tall intends to products so as to introduce a class of products for the ladies that will be termed as executive lady. The new products will be specifically for ladies with big body sizes and they will be offered in a wide range of colors so as to target a large customer base. The products will also have a Kingsize Big & Tall logo. 8.2 Pricing strategy The products of Kingsize Big & Tall are priced with the core concept been on competition. The firm is not really concerned with pricing their products so as to create a sense of prestige or lowering the prices so as to target a large customer’s base. The company practices value pricing so as to customers feel comfortable at all times to purchase new clothes. The new clothing (executive lady) will be charged at a higher cost than the other products. 8.3 Distribution strategy Currently, Kingsize is marketed through the internet and use of retailers and the retailers are scattered all over Australia. Over the next few years the company aims at expanding their distribution channels to retail specialty outlets in Australia so as to focus on a large group of customers. In addition, Kingsize can expand their sales through online sales. Despite the expansion plans the company plans to monitor as well as maintain strong connection with the distribution channel members since distribution plays an important role in the success of a product. The company is still contemplating on the idea of whether it would be of benefit to them to sell their products through a major national chain since company outlets are considered as been among the list of competitors in the market. 8.4 Promotional strategy Kingsize communicates with both the current and potential customers and the company retailers through a number of ways. Individuals who are in need of information relating to the company can get it through the internet. The company’s promotional efforts ought to differentiate the company from the competitors. Currently the company uses the internet to promote itself (Sandhusen 2008, pp. 77). 9.0 Budget KBT will set aside 128,500 Australian dollars for the Launch and promotional campaign for executive lady. Launch Budget For Executive Lady Q1 Q2 Q3 Q4 Public relations Developing the press release $5,000 Airing fee for press Release $8,000 $8,000 Review program $1,000 $1,000 $1,000 $1,000 Subscription for Analyst reports $1,000 $1,000 $1,000 $1,000 Press tour $12,000 $12,000 $12,000 $12,000 Total $26,000 $22,000 $14,000 $24,000 $74,000 Web Marketing Creative development of online advertisement $4,000 Google ad word program $2,000 $2,000 $2,000 $2,000 Search engine Optimization $1,000 $1,000 $1,000 $1,000 Website Development and update $20,000 $2,500 $2,500 $2,500 Total $27,000 $5,500 $5,500 $5,500 43,500 Other Advertising Developing print ad $4,000 Print ad placement $1,000 $1,000 $1,000 $1,000 $5,000 $1,000 $1,000 $1,000 $8,000 TOTAL LAUNCH BUDGET $128,500 10.0 Strategy Implementation 10.1 Product Development The design of the suits will be carried out by the management team together with three world class designers. The manufacturers will be sent the designs and those who produce the best quality will be selected (Porter 1998, pp. 60). 10.2 Internet Strategy The internet campaign will be incisive. The strategy will be led by King Size’s online community and will involve posting of videos of ordinary females looking gorgeous in the new executive lady suits (Hooley, Piercy & Nicoulaud 2008). The new suit line will also be sold on its own independent website where customers from anywhere in Australia can purchase the best extra large women suits. 10.3 Marketing Strategy The will engage top Australian executives and sports personalities who are plus size through endorsement programs. 10.4 Sales Strategy This strategy will be aimed at capturing 20% of the women plus size market and earning the company revenues of $750,000. The market is estimated to expand by 25% every year. 11.0 Evaluation and control Kingsize will use a customer survey to determine the success of the new products. Each customer will be asked to leave his contact detail and each month a survey will be sent out to determine levels of satisfaction. Additionally the Return on Capital Employed method will be adopted to compare the yearly revenues from the new products against the capital used in launching them. References Elliot, G. Rundle-Thiele, S. & Waller, D. 2010, Marketing. Australia: Wiley. Fine L, 2008, The SWOT Analysis: Using the Strength to Overcome Weakness, New York: Wiley & Sons, Inc. Hooley, G., Piercy, N. and Nicoulaud, B, 2008. Marketing strategy and competitive positioning. London: Prentice Hall. Jain, T., Trehan, M., & Trehan, R. 2009. Business Environment . New Delhi: V.K (India) Enterprises. New York: Free press. Porter, M. 1998, Competitive Strategy: Techniques for Analyzing Industries and Competitors. Porter, M. 1998, On competition. Boston: Harvard business review. Sandhusen, R. 2008, Marketing. New York: Barron’s Education series. The Kingsize Big & Tall Australia website 2012, http://www.kingsize.com.au/ Read More