(TIỂU LUẬN) MARKETING PLAN FOR THE WOMENS FASHION COLLECTION TRE MADE FROM BAMBOO FIBER MATERIAL BY KILOMET 109

2.1 Achievable Objective Launched a new fashion line collection: Tre Colection; With materials made from bamboo fibers, because this is a relatively new product line, we set the followi

UNIVERSITY OF FINANCE MARKETING –

FACULTY OF MARKETING

MANAGEMENT MARKETING

2021702006005 FINAL EXAM ASSIGNMENT

MARKETING PLAN FOR THE WOMEN'S FASHION COLLECTION "TRE" MADE FROM BAMBOO FIBER MATERIAL

BY KILOMET 109

Student:

Class: CLC_19DMA05

Ho Chi Minh City, 2021

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TALBE OF CONTENTS

EXECUTIVE SUMMARY 1

INTRODUCTION 1

2.1 Achievable Objective 2

2.2 Specific Goals (1 year) 2

SWOT & MACRO - ENVIRONMENT ANALYSIS 2

3.1 SWOT 2

3.2 Macro - Environment Analysis 4

SEGMENTATION AND POSITIONING STRATEGY 5

4.1 Segmentation 5

4.2 Targeting 6

4.3 Positioning 6

MARKETING MIX STRATEGIES 7

5.1 Product strategy 7

Product’s attributes 7

Value propositions 7

Features 7

Style design of products 8

Branding 8

Packaging 8

Labeling (stamp) 8

Product Support Service 8

5.2 Pricing strategies 9

5.3 Distribution strategy 10

5.4 Marketing communications strategy 10

Advertisement 10

Public Relations (PR) 10

Personal selling 10

Direct marketing 11

ACTION PLAN 11

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CONCLUSION 12

APPENDIX 13

LIST OF REFERENCES & ORIGINALITY 15

TALBE OF PICTURES, GRAPHS, TA BLES Picture 1.1 Kilomet 109’s Logo 1

Picture 6.1 Marketing plan timeline 11

Graph 4.1 Sustainable fashion brand positioning map 6

Table 4.1 Segments that are relevant to Kilomet 109 5

Table 5.1: Price list of competitors and of Kilomet109 9

Table 8.1: Built-in web into the Kilomet109 website 13

Table 8.2: Making advertising 13

Table 8.3: Introduction of products to the press 14

Table 8.4: Organizing a press conference to introduce products 14

Table 8.5: Cost of purchasing machinery used for production 14

Table 8.6: The total cost of marketing activities 14

Table 8.7: Sales Forecast 15

Table 8.8: Break even– 15

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Executive summary

Sustainable fashion is a movement and a process that aims to improve the ecological integrity and social justice of fashion goods and the fashion sector It looks at the entire system of how clothing is made, who makes it, and how long a product lasts before it ends up in a landfill The benefits of product level initiatives, such as replacing one fiber type with a less environmentally harmful choice, are a fundamental example of the necessity for systems thinking in fashion

Kilomet 109 brand have been the first names acknowledged in the field of sustainable fashion in Vietnam ras a result of their diligent study and creative process After conducting research from the macro environment, analyzing competitors, influencing factors, analyzing STP strategies, our team proceeded to design a Marketing plan for new fashion collection “Tre” includes product strategy, pricing stategy, distribution strategy, and promotion strategy; action plan and appendix The plan will be organized and conducted in 2022

The market in which the company wishes to participate is still relatively new, with few competitors This gives Kilomet 109 a fantastic opportunity to expand its market Although there are a number of companies that have launched similar sustainable fashion products with bamboo fibers, we still can effectively compete with them as our products offer a combination of eco-friendly materials and unique natural dyeing techniques from local artisans throughout Vietnam throughout the world production chain Using sustainable fashion products is a trendy lifestyle in modern society We are targeting specific segments in the customer market, taking advantage of the growing interest in environmentally friendly products Kilomet 109 will use a variety of communication channels to achieve communication goals The first year, Kilomet109 with the main marketing goal is to build a brand to reach more customers and stimulate existing customers to buy new products and attract more new customers The key financial targets are 15% year-over-year revenue growth

Introduction

Kilomet 109, launched in 2012 by designer Vu Thao, is a high-end fashion line for both men and women But what makes Kilomet109 unique in today’s fashion world is the story behind the garments Thao collaborates with several teams of local craft artisans around Vietnam to grow, spin, weave, print and naturally dye Kilomet109 fabrics Only locally sourced materials and homegrown eco-friendly colors are used in the whole production chain, which is self-contained inside the creative communities This hyper-localized method places a premium on environmental sustainability and material support for the craftspeople

The fashion of Kilomet 109 has an environmental and social responsibility objective Wishing to introduce innovative and eco-friendly clothing to the market This is couture from the ground up, and

it defines a new kind of ready- -wear couture: handcrafted, hand-stitched clothes created by a to

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designer who collaborates directly with local craftspeople on every detail And since these practical, affordable garments are made by human artisans rather than mass-produced by machines, each is like

a work of art - hand-crafted, visionary, unique

2.1 Achievable Objective

Launched a new fashion line collection: Tre Colection; With materials made from bamboo fibers, because this is a relatively new product line, we set the following goal: to capture 30% of the market share of sustainable fashion in 1 year

2.2 Specific Goals (1 year)

Build and increase brand awareness in the middle-class customer segment, from 10% to 50% in the first year of product launch

Achieve a high level of customer satisfaction, approximately 95% of the target customers

Since the Brand has new products entering the market, it can be expected that sales will grow by 15% compared to last year This is the goal to try to achieve to increase the profit guarantee and product market share in the market

Maintain quarterly positive and high growth and encourage current customers to purchase the new product Set a goal to sell 150 products per week in the first 3 months and sell 3000 products in 1 year

of the plan

SWOT & Macro- Environment Analysis

3.1 SWOT

STRENGTHS

• The brand has been at the forefront of sustainable

fashion, created a lot of buzz when it was first launched,

won the award: Young Creative Entrepreneur 2014

champion by the British Council; on a prestigious fashion

magazine in Vietnam: style-republik; fashion forum

ELLE Vietnam ; to the New York Times; introduced on

CNN's "Iconic Hanoi" Series and other famous fashion

magazines This firmly establishes the prestige and

quality of the brand, which will surely be trusted by

consumers for the product

• Headquartered and factory located in Hanoi with a team

of experienced, creative workers, professional design

team, able to grasp fashion trends very well, many years

of working experience

• The brand's production process brings together local

artisans and craftsmen both in Hanoi and ethnic

minorities in the highlands of Hoa Binh, Cao Bang, Lao

Cai

WEAKNESSES

• This product line is picky, especially in the middle and lower-middle class because the price is quite high, so it will lose a certain part of market share as well

as profit

• The value of a shirt can be up to 4 or 5 million VND It is this value factor that has created the "conservative" mentality

of customers with products of "Kilomet 109"

• High cost of the production process and

a relatively long time to complete the product

• During the time of the covid epidemic, which severely affected businesses, especially fashion brands The store was forced to close because of social

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• Collaborate with typical art spaces in the country such

as Manzi Art Space, Work Room Four and London

College for Fashion Studies, with a new creative learning

channel in New York, USA VAWAA (Vacation with –

an artist), organization British Council, as well as local

and international freelance artists

• In particular, for this newly launched product, our

strong point is that the product is made from bamboo

fiber and the design is a combination of the two famous

previous collections, Phieu and Mien

distancing, leading to a sharp drop in sales

• Currently there is only one store in Hanoi, which leads to a disadvantage when customers want to visit the store in another location

• Marketing activities have not been diversified and popularized much Therefore, this is a weak point that needs

to be improved if you want to have a successful product launch campaign

OPPORTUNITY

• This is a new product with a unique idea, the company

will have the advantage of being a leader in this potential

field

• During the period of social distancing due to the

epidemic, customers are spending more time online than

ever before For sustainable fashion brands, this is a great

opportunity to experiment and connect with customers on

a wide range of online channels such as Facebook,

Instagram, Pinterest… and use it to increase customer

sentiment towards the brand with its brand

• Currently, customers tend to spend more on sustainable

and high-quality products even though the products are

expensive Brands with stories - visions - ethical values

are preferred by consumers

• Sustainable brands like Kilomet109 always share

stories behind them as the brand's founder took the time

to research how the product is made, the ingredients that

make up the product are grown by local farmers and how

they are paid fairly, how the process of making products

is handmade… This creates trust and love of customers

for the products that the company makes At the same

time, it also promotes customers' purchasing decisions,

making them feel that spending on a useful and

environmentally friendly product is completely worth it

THREATS

• The sustainable fashion market is gradually getting more attention, with strong competitive brands emerging, including the two biggest competing brands of Kilomet109, Moi Dien, and Metiseko, which requires kilomet 109 to always innovate strategies marketing to maintain its leading position

• Reaching high-end customers and consumer trends change towards being more careful in purchasing products, requiring brands to know how to build effective "content", such as providing consumers with information practical, useful, and reliable information, convincing customers to buy the product

• Prices in the market today are very diverse, counterfeit goods on the market are born very quickly at very cheap prices, this is also a huge challenge for the company when trading this product

Competitors:

- Indirect competitors: fashion brands that are in line with current trends and are favored by many customers, using synthetic fibers, familiar and popular with customers

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- Direct competitors: brands dealing in sustainable fashion products, using environmentally friendly materials: Môi điên, Metiseko,

3.2 Macro - Environment Analysis

● DEMOGRAPHICS ENVIRONMENT: Vietnam has more than 90 million people, increasing to

about 1 million people every year, the highest population density is in big cities, the population structure is young, the number of people of working age is large, all factors The above makes Vietnam

a market with abundant labor resources, cheap labor and also a promising and fertile market for consumer goods and garments in particular Besides, the majority of the population lives in urban areas, so Kilomet109's products are aimed at the middle class, who prefer to use high-end products

● ECONOMIC ENVIRONMENT: According to a 2017 survey by Asia Plus market research

company, young Vietnamese are currently significantly increasing spending on clothing According

to the report, 26% of people surveyed said they shop for clothes 2-3 times per month, 52% said they usually shop for clothes once a month It is estimated that the value of Vietnam's textile and garment consumption per year is about 5-6 billion USD, equivalent to nearly 120,000-140,000 billion VND According to industry experts, the consumption value is much greater, because on the market today, goods of unknown origin, imitation goods, hand-carried goods are also strongly consumed, especially in rural areas that cannot be fully enumerated According to Nielsen's report in the second quarter of 2018, the Vietnamese fashion market will have a growth rate of 15-20% per year in the coming years

In particular, according to another survey, the women's fashion segment in Vietnam for the age group 20-45 is worth about 2 billion USD by 2022 and has an average growth rate of about 30%/year Grasping this, Kilomet109 has planned to launch a collection of Tre collection to serve this segment

● TECHNOLOGY ENVIRONMENT: Today's technological environment is changing rapidly It

includes research and development, the rapid pace of technological change, and unlimited innovation opportunities However, Kilometers still apply traditional weaving techniques because this is the difference and affirms the meticulousness in each quality with each product made

● POLITICAL LEGAL ENVIRONMENT: The country is now politically stable as the

government has taken steps to address security issues and is a good investment opportunity Current conditions also indicate the future stability of the country The internal affairs of Vietnam are always smooth and present good business opportunities

● SOCIAL-CULTURAL ENVIRONMENT: Kilomet109 is a company that is currently a leading

brand in the sustainable fashion market in terms of products made from environmentally friendly green materials Very good sales Day by day, the more the economy develops, the higher the life and income, the more people focus on consumer products, including clothing In addition, the current trends and aesthetic tastes of consumers towards apparel products also change, typically they will prefer to use products of high quality and especially useful for the environment and safety Kilomet109's upcoming Tre Collection is sure to match this trend and help customers satisfy their needs

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Segmentation and positioning strategy

4.1 Segmentation

Table 4.1 Segments that are relevant to Kilomet 109

Demographic  Female

 Age: 23-35

 Income: > 10 millions

 Having job, stable income

 Female

 Age: 20-30

 Income: > 7 millions

 Studying university, having job, stable income

 Female

 Age: 40-60

 Income: > 20 millions

 Having job, stable income

Psychographic  Lifestyle:

 Busy, usually dress

up and make.up;

interested in fashion and beauty

 Fashion style: chic, elegant

 Personality:

 Feminine, gentle

 Lifestyle:

 Freedom, love the health and fashion

 Have a sense of style

 Fashion style:

trendy

 Personality:

 Feminine, gentle

 Lifestyle:

 High requirements for product quality

 Fashion style: classic

 Personality:

 Sophisticated

Behavioral  Like promotional

items

 Price goes hand in hand with quality

 Usually pay for products from affordable to intermediate

 Like promotional items

 Price goes hand in hand with quality

 Requirements on the price of fashion products

 Pay much attention

to the quality of the products

 Use products according to habits

 Willing to buy a product of good quality but a bit high price

 Usually pay for mid to high-end products

Demand  Usually use and

necessary for working

 Products with reasonable prices

 Quite necessary because they are single, they want to become more confident in life and work

 Products with reasonable prices

 Very essential (Used in business like going to meet customers and partners Help yourself more confident in the relationships around)

 Not too concerned about the price just quality

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4.2 Targeting

 Demographic segmentation:

Gender: Female

Age: 25-45

Income: middle class, well-off, good income > 15 000 000 VND

Education: Highly educated, knowledgeable, have a stable job

 Psychographic segmentation:

Customers with aesthetics of fashion and interested in quality of life Pursuing a meaningful, balanced

and healthy lifestyle taking good care of health ;

Appreciating the sustainable values of the product

Loving the environment and willing to change shopping habits to reduce environmental impact Customers prefer brands that are sustainable and environmentally responsible and use eco friendly products

 Behavioral segmentation:

High requirements for price and product quality

Willing to buy a good quality product but a bit high price

4.3 Positioning

Positioning strategy is more product based in the sense that it has tried to emphasis individual product properties rather than a common brand image

Kilomet 109 still inherits and promotes traditional handicraft techniques of ethnic minorities in the Northern mountainous region Kilomet 109 using differentiation strategy to position “Tre Collection”

as a high-end sustainable fashion line for women, with eco-friendly materials such as bamboo fibers

High price

Less quality High quality

Less price

Graph 4.1 Sustainable fashion brand positioning map

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Marketing Mix Strategies

5.1 Product strategy

Product’s attributes

Kilomet 109's products are a closed design process, from planting cotton, hemp, silkworms, silkworms, weaving, and dyeing by hand from organic materials, flowers, and plants Especially this time using a new material which is high-quality bamboo fiber fabric with the following characteristics:

- It is a natural fabric synthesized from the wood pulp of the bamboo tree with the most advanced process

- Has extremely good hygroscopicity, superior to cotton fabric by 60%, and high colorfastness

- Bamboo fiber has anti-mildew and anti-bacterial properties According to the results of scientific tests, bamboo fibers have achieved a bactericidal rate of up to 75%

- The finished bamboo fabric does not contain any harmful chemicals According to the Oeko-Tex standard assertion Especially, it does not cause allergies or irritation to the user's skin, even those with sensitive skin, so it can be used for all ages

Value propositions

 Relevancy:

Tre Collection products are produced in line with the trend of using environmentally friendly and socially beneficial products, besides satisfying the need to buy high quality fashion clothes, good and safe Solve the problem of customers wondering if this product is worth the price

 Quantified value:

First, the product is made from bamboo fiber material, so it has extremely good features such as anti-ultraviolet rays, moisture absorption, softness, which will help consumers feel comfortable, protect their skin but also suit their needs The demand for using environmental protection products, fast self-degradation also meets the desire to limit environmental pollution In addition, this is also a high-end fashion collection with prestigious brands like Kilomet 109 that surely highlights the wearer's elegance and brings the benefit of satisfying customers' desire to be admired by others

 Unique differentiation:

Firstly, Kilomet 109 is a brand that is one of the famous sustainable fashion brands known Especially the success from the previous 2 collections, Mien and Phieu, is the basis for customers to be assured

of the quality and reliability of the products In addition, with a closed production process, traditional weaving techniques and skilled artisans to create each product are the special and different points of Kilomet 109 compared to other brands When holding the product in hand, customers will both feel the excitement in each shirt, dress or skirt and see how meticulous and delicate the product is

Features

- With bamboo fiber material meticulously woven by skilled artisans in the northern mountains

- Special design with the bold traditional culture of regions

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