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1
The DiscoNinjas
CASE STUDY
Jamnalal Bajaj Institute of Management Studies
Hardik D. Shah Kaushal DedhiaVikram Joshi
2
Agenda
Situation Analysis
Understanding the Customer
Defining the Marketing Strategy
Strategic Roadmap
Need Gap Analysis and Brand Extension
IMC Campaign
Pre Purchase – ATL/BTL Activities
During Purchase – Improving In-Store Experience
Post Purchase – Improving Ownership Experience
Appendices
3
Situation Analysis
Value Same TG?
Com
petit
ors
FastrackLiviya
HidesignGiordano
Louis VuittonHermes
Eliza DonateinBurberry
Da Milano
0 0.5 1 1.5 2 2.5 3 3.5 4
?? YesTradition Yes
Corporate YesTradition YesHeritage Yes
Value YesContemporary Yes
Trendy NoYouth No
100% pure leather to gain the ‘Trust’ to build a sustainable brand
Source: euromonitor.com, primary research
Cons
umer
68%
20%
13%Shoulder and Tote BagsTop Handle BagsClutches and Wristlets
As per our primary research, customer segment starts above 25 and extends till
40
Target Group Correction
Existing 23 – 35 years
New 25 – 40 years
Most of the customers are SEC A, living in Metro cities
Own a Four wheeler Own a smart phone Use Laptops / Tablets
Current Composition of Handbag Sales
Mar
ket
2012 2013 2014 2015 2016 2017
2596.83
4258.74
Gro
wth
: 10.
4% C
AGR
Uno
rgan
ized
sec
t: 6
0-70
%
Key Growth Drivers: Increasing number of working women Rising incomes Increasing fashion consciousness and aspiration levels Growing influx of foreign brands Increasing number of malls and modern retailing outlets
Handbag Market Size
4
Understand The Customer
Repeat Purchase Inhibitors
Source: Primary research with store visitors, Da Milano’s feedback books
Occasions of Use: Meetings, Socializing, Going Out with Friends, Party Occasions of Purchase: General, Gift events, Sale Stimulus of Purchase: Occasions, Replacing worn/old productType of Stimulus: Emotional
Need: To look trendy, stylish Products: Handbags / Purses / Clutches /Wallets for all occasions; Belts, Shoes
Age: 27 – 40Gender: FemaleLocation: MetrosSec A
Brand Recall - TrustTop 3 key buying factors
Source: Mckinsey Insights 2011 – Luxury Consumer report and Primary
Research
Occasions of use: Meetings, Everyday Office, Socializing, Party , TravelOccasions of Purchase: General, Gift events, Sale Stimulus of Purchase: Occasions, Replacing worn/old product
Type of Stimulus: Rational, Emotional
Age: 27 – 40Gender: MaleLocation: MetrosSec A
Need: Utility while maintaining status quo ; To GiftProducts: Wallets, Belts, Shoes, Manbags, Folders
3. Good Material
2. Innovative Design1. Superior
Craftsmanship
1. Want to try and have a wardrobe of different brands
2. Need a separate product for every occasion
3. Do not have a connect with the brand
4. Lack knowledge about new arrivals / sale periods
5
Genuine Leather Craftsmanship Premium
Challenge : Marketing Strategy
Value Proposition: Premium designs handcrafted with 100% pure leather : Trust
Secondary Associations - CreatePrimary Brand Elements - Maintain Name : Da Milano Logo : Deer
Symbols: DM Packaging: Elegant
Personalities: In film / twitter female actors Events: Wine tasting, Fashion shows
Purchase Decision Influencers: 1. Celebrity Trends 2. Fashion Magazines 3. Internet Research
Distribution Channels: Own outlets to maintain exclusivity & counter counterfeits : FOCO / COCO
Strategies to Increase Repeat Purchase Know customer preferences and remind Brand extension for more categories of purchase Campaign on Changing Trends per season Complete your wardrobe with different products
Strategies to Increase Brand Recall Connect Da Milano to 100% pure leather Build on core value of “Trust us for leather” Gift leather products to celebrities Run features in fashion magazines
Pre Purchase During Purchase Post Purchase
Infuse Quality of Trust Top Of the Mind Recall :
DM = leather
Modernize experience Enrich experience Learn trends / likes
Maintain relations Inform new trends/ stock Bring back to store
Trust
Vision : To be first choice in Luxury Leather Goods
1. To ‘push’ repeat purchase across categories quarter-on-quarter2. To ‘pull’ repeat purchases on the same category year-on-year
6
Deliverable : Strategic Roadmap
IMC Campaign
Q1- 14
Brand Extension
Advertising ATL / BTL
Q2 -14 Q3-14 Q4-14 Q1-15 Q2-15 Q4-15 FutureQ3-15
Repeat Purchase
QoQ
]755025
Launch of new product
Integrated Marketing Campaign
On Going BTL
Quarterly Trigger for
Repeat Purchases
QoQ repeat
purchase rate > 60
Extend brand according to consumer needs
Implement IMC on core values based on Brand Recall
parameters
Implement tactics to repeatQoQ purchases Use ATL/ BTL to pull/push sales
Stock Clearance
Sale
1 2 3 4 5 6 7 80.005.00
10.0015.0020.00
Cost / Benefit
Goals
Stock Clearance
Sale
7
Need Gap & Brand Extension
Launch of new products, to suit occasions of use and occasions of purchase unaddressed by existing portfolio
Conjoint Analysis Suggests following brand extensions Watches, Jackets, Hats & Gloves
Based on primary research, we found most consumers would want Watches
Challenge : Economies of Scale1. Watch straps will utilize the small side strips remains2. Jackets, Gloves etc. will be produced in parallel with more RM order
quantity at EOQ
Launch of New Products
1. Recycle Da Milano leather for corporate gifts 2. Reduce RM costs and import costs over RM
Recycle
1. Order RM so as holding cost does not exceed 50% of net profits2. RM types should be kept at minimum to reduce overhead costs in import
Procurement
Watch
Jackets
Hats
Gloves
0 2 4 6 8 10 12 14 16 18
New Products that customers want
8
Customer Touchpoints
• 25-40 years, Metro, Sec AIdentify the Target Audiences
• Style and elegance, Handcrafted from 100% pure leatherDesigning a Message
• INR 2 CrEstablish Marketing
Communications Budget
• Billboards• Magazine Ads, Airport Luggage tags
Marketing Communication
Channels
• Ask the customers to associate a brand with Leather GoodsMeasure results
Work FriendsFamily Family
E-mails, Travel exposure
Gifts, Word of Mouth
Social Media
Magazine
Deliverable : IMC Campaign
To increase top of the mind brand recall and associate DA MILANO with 100% pure handcrafted leather
Objective
0 1 2 3 4 5 6 70
2
4
6
8
10
12
14
Series1; 11
4
98
10
13Brand Recall Scatter Map: Leather Goods
9
Challenge, Deliverable : ATL/BTL Activities : Pre Purchase
ATL Cost BTL CostHoardings 3.0 In film advertising 1.00
Print Media 1.0 Sponsorships in Fashion events 1.00Advertising in 5-Star Hotels 0.50
Airport Baggage tags 0.52Sponsorships in Wine Tasting
Festivals 0.20
Android, iOS Application 0.02Social Media campaigns and
contests 0.06
Total 4.0 3.3
Cost Approximations
All figures in Rs. Crores
Print ads in fashion magazine Billboards in upmarket locations
ATL
Advertising in 5-star hotels Airport Baggage tags In film advertising Sponsorships
Art / Fashion Shows Wine Tasting Festivals
BTL
ActivitiesAdvertising Strategy
Advertise
Build Trust Increase Repeat Purchases
100% Leather
Associate with stars / films
Replace : Give old bags back / to NGO and get
20% off
Discounts
Show change in trends
Remind need / occasions
10
In-Store Experience : During Purchase
Product SelectorDigital Catalogue
Provide tablets to customers to browse through the catalogue in detail, search and sort
Tablets will also contain 100% pure leather posters
1. Digitizing the Shopping Experience
2. Making the customer feel warm
Serve beverages on arrival Offer candies to kids Greet the customers on arrival and departure
3. Wishlist Section
Dedicate a rack to the most ‘aspired’ products across WISHLISTs
Enable customers to choose product via a app App results will be based upon:
Product type Occasion
Price Range Color preference
Colour
Texture
Occasion
Size
Price
Product AttributesConsumer Behavior :
Tag WISHLIST products with customer info Save common attributes of shortlisted products and tag to
customer Each quarter and purchase occasion, send customer SMS/mail :
Offering products : from his WISHLIST / with similar attributes
SHORTLIST 2 to 3 products
BUY one from the shortlist
Put the remaining products in WISHLIST
11
Incremental Benefit Loyalty Program10% off on first 5 purchases >> 50% off on very 6th purchase
Birthday and Anniversary GiftsBag KeychainsBag Car Plushies : Hanging from car mirror and can hold cellphones etc.
Ownership Experience : Post Purchase1. Use the Wishlist
2. Servicing
Every quarter, send SMS/mail suggesting products to customer based on his/her wishlist Send reminders for purchase occasions : birthdays, rakshbandhan, mother’s / daughter’s day, anniversary Whenever items in new stock arrive > Search for items that match attributes liked by the customer > Send
SMS / mail displaying product and inviting him/her to take a look Update about changing trends
Send SMS/mailer to the customers stating: “Your free service with Da Milano is due now. Visit any nearby store for
the same” “Get your Da Milano product serviced before Diwali / Christmas / any
other festival. Its absolutely free as per our lifetime warranty program”
3. Loyalty Programs
4. Replace Program : Return bag to NGO, get 20% Off*
12
Conclusion
Prob
lem
s
Economies of Scale
Increase Repeat Purchases
Increase Brand Loyalty & Recall
Solu
tions
EOQ Brand Extension
Push Across Categories QoQ
Pull Same Category YoY
Build core value of TRUST
Impl
emen
tatio
n
Recycle RM
Make Watches
100% Leather
Hand Crafted
Premium
Purchase Experience
Post In Pre
IMC
Adve
rtisi
ng
DigitizeEnrich
Wish list
ServiceRemindLoyalty
Pull Same Categories YoYPush Across Categories QoQ
Impa
ctRepeat Purchases > 60% QoQ
Increase Brand Recall form 7% to 15%
Reduction in Cost
13
14
Appendix – I
Gucci20%
Da Milano7%
Hidesign16%
DKNY15%
Louis Vuit-ton18%
Others24%
Leather Association
Watch40%
Jackets30%
Hats21%
Gloves9%
New Product
Design21%
Variety of Products
28%Quality23%
Price14%
Nice experience5%
Lifetime warranty9%
Most liked factor
Prim
ary
Rese
arch
Current Year Year 1 - forecast Year 2 - forecastRepeat Purchase Rate 20 20 20 20 20 25 35 40 45 50 60 65
New Customers 25.26 26.19 34.80 27.16 28.17 29.21 36.09 30.29 31.41 32.58 37.42 33.78Repeat Purchase 5.05 5.24 6.96 5.43 7.04 10.22 14.44 13.63 15.71 19.55 24.32
Sales forecast 29.80 31.25 40.04 34.12 33.60 36.25 46.31 44.73 45.04 48.28 56.97 58.11
Sales without increase in repeat purchase 29.80 31.25 40.04 34.12 33.60 34.84 41.93 37.51 37.47 38.86 43.94 41.26
Incremental Revenue 0.00 0.00 0.00 0.00 0.00 1.41 4.38 7.22 7.57 9.42 13.03 16.84
Financials
All figures in Rs. Crores
15
Appendix – II
Details Jet Air Spicejet IndiGo Go Air
Fleet size 82 30 59 12
Flights 357 257 361 160
Passengers (approximately) 12,00,000 10,00,000 16,00,000 6,00,000
Quantity / Month 18,50,000 11,70,000 25,00,000 5,75,000
Cost / Month Rs. 21,00,000 Rs. 13,00,000 Rs. 30,00,000 Rs. 6,50,000
Cost / Passenger Rs. 1.75 Rs. 1.3 Rs. 1.88 Rs. 1.08
In Flight advertising estimation
Source: www.themediaant.com
Page position Card rates
Full Page (Femina) Rs. 400,000
Back Cover (Elle India) Rs. 500,000
Area Lit / Rate per Sq. Ft.
Peddar Road Rs. 1000-1500
Monthly cost of 20*20 feet poster Rs. 4-6 lacs
Print & Billboard estimation