MARKETING PLANNING & STRATEGYCAPTURE THE OPPORTUNITY IN JEANS MARKET

Giang Phung15845113 | Asiya Mahmoud 14418400 |Henna Karim 14285080 | Martina Perlasca14445875 |Lucrezia Leali 14266911

TABLE OF CONTENT

Jeans Market Overview

Drive Denim vs. Competitors

Strategy for future growth

JEANS MARKET OVERVIEW

4

JEANS MARKET IS GROWING…

• Companies are putting efforts to target the right segments.

• Increase in demand thanks to higher purchasing power of consumers:

Europe’s economy recovery

UK unemployment rate drops

• Rise of online shopping (convenience)

Q1 Q2 Q3 Q4 -

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Jeans market size (million euro) by gender segments

Men Women Total

*Note: market size was estimated by internal sales, market share and price

*Source: Metrics and Analysis (Pearson. 2016)

5

… ESPECIALLY THE PREMIUM SEGMENT

• Customers are less concerned about finding the cheapest deal

• Companies ‘with very strong brand recognition will survive’

• The increase in spending power for the young (16-24 years old)

Q1 Q2 Q3 Q4

48% 54%65%

76%

25%22%

20%13%

27% 24%15% 12%

Price Segment Contribution

Premium Mainstream Economy

*Note: Premium includes Drive Denim Men and Venetus Men & women/ Mainstream includes LAB’L Men and Women/ Economy includes Drive Women and Petrol Men& Women

*Source: Metrics and Analysis (Pearson. 2016)

6

THE GROWTH WILL CONTINUE NEXT YEAR?

SALES

TIME

Intr

oduc

tion

Grow

th

Mat

ure

Decl

ine

JEANS

The Industry Life Cycle

*Source: Industry Life Cycle (Sam, T. 2015)

DRIVE DENIM VS. COMPETITORS

8

Drive LAB'L Petrol Venetus

THE KEY PLAYERS ARE TRYING HARD TO POSITION AND DIFFERENTIATE THEIR BRANDS

Drive LAB'L Petrol Venetus

MEN

High Price

High Quality

High Price

High Quality WOMEN

*Source: Metrics and Analysis (Pearson. 2016)

9

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

30%43% 43% 48%

25% 22% 17% 20%27% 29% 25% 29%

28%

25% 28% 19%

30%29%

27% 21%

29% 28%27% 20%

22%

18% 14%11%

24%21%

15%12%

23% 20%15%

12%

20% 14% 15%22% 20%

28%41% 47%

20% 24%33% 39%

Key Players Volume Share across Segments

Drive LAB'L Petrol Venetus

WITH SOME REMARKABLE RESULTS FOR THOSE WHO CAPTURED THE RIGHT TRENDS

Men Segment Women Segment Total Jeans

Volume contribution 33% 67% 100%

*Source: Metrics and Analysis (Pearson. 2016)

10

DRIVE DENIM IS ALSO ON THE MOVE…By setting our mission, objectives and product strategy

• MISSION STATEMENT: Our mission is to deliver unique and different ‘fashion-experience’ for denim lovers. We aim to create a strong emotional connection via our products , which drives in long lasting brand loyalty.

• PRODUCT STRATEGY:• Men: High price, high quality with sporty fashionable design and medium level of

innovation• Women: Low price, low quality with fashionable design and high level of

innovation

• KPIs:• Brand Loyalty for Men• Brand Image for Men• Volume Share for Women

11

DRIVE DENIM IS ALSO ON THE MOVE…

By defining our target market – MEN

• 49-60 years old male with middle to high annual income (25k and above), which accounts for 22.2% of jeans wear users

• Regular users with high sense of fashion

• Love sporty or premium designs with different fits and eco-friendly materials.

• Loyalty status: medium to high

Drive it extraordinarily!

12

DRIVE DENIM IS ALSO ON THE MOVE…

By defining our target market – WOMEN

• Women from 49 to 60 years old, which accounts for 24.6% of the jeans wear users.

• Low to medium annual income (15k – 45k),

• Want fashionable designer jeans with acceptable price for daily use.

• Loyalty status: low to medium

Live in it!

13

AND ACHIEVED OUR TARGET FOR MEN

*Source: Metrics and Analysis (Pearson. 2016)

14

YET, STRUGGLING TO GAIN SHARE FOR WOMEN

*Source: Metrics and Analysis (Pearson. 2016)

STRATEGY FOR FUTURE GROWTH

16

ECONOMY SEGMENT IS NO LONGER ATTRACTIVEECONOMY

*Source: Metrics and Analysis (Pearson. 2016)*Note: Economy includes Drive and Petrol

Q1 Q2 Q3 Q4 -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Volume sales of Women economy segment

Drive Denim Women Petrol Denim Women Total Women Economy

17

ALTHOUGH WE HAVE TRIED OUR BEST IN… Innovating the products:

• Eco-friendly materials with variety of customization and designer

Setting competitive price

Having mass distribution:• Physical distribution: across Urban, Sub-urban and Rural areas• Medium Online Retail

Putting effort in building brand image:• Worth-of mouth marketing• Social Media and Internet communication• TV commercial and catalogue marketing

ECONOMY

18

WHAT WOULD BE THE FUTURE PLAN?

Relative Market Share

Mar

ket G

row

thHi

ghLo

w

Low High

MEN PREMIUM

*Source: BCG Matrix (Martin, R. 2014).

WOMEN PREMIUM

WOMEN ECONOMY

19

IT’S TIME TO GO PREMIUM…

Product: Eco-friendly and sustainable products with variety of colours and fits.

Economy of scope as the competitive advantage

PREMIUM

20

INTEGRATED MARKETING STRATEGY

Price: Value Pricing Strategy

Place: Selected premium stores and commercial centres, focus on Urban areas. Distribute the new women premium products into men’s current stores.

Process: High level of personal service & train staff about new women premium products.

People: Development and retention program for our staff to create great working environment and loyalty.

PREMIUM

21

INTEGRATED MARKETING STRATEGYPhysical Environment: Medium design and decoration, consistent in shop layout and style.

PREMIUM

22

INTEGRATED MARKETING STRATEGY• Advertising: Fashion show events, Catalogue marketing, high-end fashion

magazine

PREMIUM

23

INTEGRATED MARKETING STRATEGY• PR and Communication:

• “Couple concept” communication and marketing activities• Invite David and Victoria Beckham as our brand ambassadors

PREMIUM

24

PREMIUM WOMEN BRAND LAUNCHING PLAN

Q5 Q6 Q7 Q8Action Plan- Call for investment from shareholders

- New product development and testing

- Marketing concept testing

- Teasers for product launch

- Product launch in key cities

- ‘Couple concept’ PR and communication campaign

- Nationwide product launch (rolling)

PREMIUM

25

SUMMARY• Jeans market is growing driven by the increase of premium segments

• All companies are trying hard to achieve better positions in the market

• Drive Denim is doing quite well in men segment but quite struggling with the women segment

• Economy segment is no longer attractive so it’s time to launch the premium segment for women

• Utilise the current marketing strategy of men for women premium Follow the same strategy for product, price, distribution, store design and

advertising

Launch “couple concept” marketing campaign to fuel the growth

THANK YOU!