marketing plan

Topics: Luxury good, Gucci, Renting Pages: 8 (2040 words) Published: November 10, 2013
V. Marketing Plan

In this chapter is marketing plan of the Company XY. It is a description of its competitors, the demand for the service, and the strengths and weaknesses from a market standpoint of both the business and its competitors. In more detail, the field of activity, potential customers, the location, the operating markets and the business level is clarified. After chapter five, the operational plan will be explained.

1. Market description

To start, the Company XY is doing business in the fashion branch. In more detail, the business acts in the online-renting sector for fashion accessories like handbags/ clutches, belts and sunglasses. Hungary is a landlocked country in central Europe with an estimated population of almost 10 million people. There are 6.2 million internet users in Hungary which represents 62% of the total population and 29% of the internet population have broadband connections with speeds equal to or better than broadband speeds in the UK. Internet Population: 6,176,400

GDP Per Capita: $18,815
Internet Market Potential (GDP*Users/million): $116,209 million Internet Advertising Market Size: $153 million
(Global Customer Acquision)
The Hungarian womenswear market is expected to generate total revenue of $592.3 million in 2012, representing a compound annual growth rate (CAGR) of 2.4% between 2008 and 2012. - (MarketLine Industry Profile|Womenswear in Hungary | February 2013) Clothing is an essential item, with consumer choice being influenced by factors such as fashion and a desire to signal social status. Demand patterns are susceptible to branding and advertising, which, despite the lack of significant switching costs, tends to weaken buyer power. Individual buyers’ demands change at a fast pace, meaning that, in an attempt to maintain market share in a highly competitive market, players aim to attract customers by creating strong brand consciousness and running intensive marketing campaigns.

Source:
Global Customer Acquision http://www.mvfglobal.com/hungary

2. SWOT

HelpfulHarmful
Internal
factorsStrengthsWeaknesses
Brand famous names of products
Unique alliances with other businesses (brand shops)
Online location (easy to remain in touch and build relationships with customers (Email, SMS, Facebook) •Doesn’t need heavy, sophisticated equipment
Low cost to maintain and enhance the site, social site page •Use existing distribution networks (DHL, FedEx)
All items have low delivery cost, because they are not heavy •Not mass production
Highly visible websiteNarrow product line
Insufficient financial resources to fund any changes we would like to make •Unrecognizable brand of company
Inexperienced managers
Possibility of theft or damage to items
No consumer base
External
factorsOpportunitiesThreats
Hungarian market has not been yet fulfilled
Can expand our product range (new items)
Can expand your customer base (Geographically, gender or through new products)
Consumers have a choice to use a substitute product (buy or use another service) •The needs of our consumers are changing
Competitors can offer similar service quickly
Tariff increase delivery
Insurance costs increasing
Income levels will rise and people could buy luxury

Source: http://www.whatmakesagoodleader.com/swot_analysis_examples.html

3. Positioning

Our company is a service of convenient and fast online rental luxury, designed items, which provides warm service for our customers. The way customer can make the order is to follow our web site, where everyone can find all up-to-date goods. Our company's core business strategy is to combine exceptional and knowledgeable customer service with quality stylish merchandise. And in turn, we'll provide an enjoyable, convenient online “shopping” experience for our customers. XY's mission is to offer women a wide selection of fashionable, figure-flattering items (handbags, belts and...
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