Reiss Three Year Marketing Plan
1. INTRODUCTION
Created in 1979 by David Reiss, Reiss is has developed into a powerful brand offering stylish clothes at affordable prices. 2006 proved to be a successful year for the organization, where it achieved £6.8 million in operating profit and sales of £44.5 million. Currently, it has 39 stores worldwide and is expanding rapidly. The following 3 year strategic marketing plan will demonstrate the steps Reiss need to take in order to become a dominant force in the UK and a strong international brand. Keys to success:
• E-business development
• International expansion
• Domestic market growth
• Product development
• Brand awareness
• Organization flexibility
2. SITUATION ANALYSIS
2. 1 MACRO ENVIRONMENT
• ECONOMIC
o In order to tackle interest rates, The Bank of England has increased interest rates to 5.25%, which will subsequently decrease consumer expenditure. o The recent rise of inflation to 3% has made it more expensive and left less disposable income for consumers. o The key Consumer Price Index to a decade high of 2.7%. o Although, unemployment decreased by 7,000 from August to October, leaving it to 5.5% in the UK o General consumer expenditure (GMID 2006) has increased to £742,977,000,000, which can be demonstrated in figure 1.
• SOCIAL
o The UK populations is ageing o The birth rate is declining.
2.2 MARKET ANALYSIS
o Overview
• There is still a strong interest in fashion.
• UK spending on clothing has increased, which can be demonstrated in figure 2.
• Demand is doing well, but the industry is expected to fluctuate due increasing costs in borrowing. 2006 is projected to be a tougher year.
• Although costs are increasing, prices of clothing are decreasing due to a very competitive market.
o Opportunities
• Although lowers price have increased demand, consumers are not mainly influenced by price when making sales. Fashion is one of the main elements.
• Celebrities and fashion media
Created in 1979 by David Reiss, Reiss is has developed into a powerful brand offering stylish clothes at affordable prices. 2006 proved to be a successful year for the organization, where it achieved £6.8 million in operating profit and sales of £44.5 million. Currently, it has 39 stores worldwide and is expanding rapidly. The following 3 year strategic marketing plan will demonstrate the steps Reiss need to take in order to become a dominant force in the UK and a strong international brand. Keys to success:
• E-business development
• International expansion
• Domestic market growth
• Product development
• Brand awareness
• Organization flexibility
2. SITUATION ANALYSIS
2. 1 MACRO ENVIRONMENT
• ECONOMIC
o In order to tackle interest rates, The Bank of England has increased interest rates to 5.25%, which will subsequently decrease consumer expenditure. o The recent rise of inflation to 3% has made it more expensive and left less disposable income for consumers. o The key Consumer Price Index to a decade high of 2.7%. o Although, unemployment decreased by 7,000 from August to October, leaving it to 5.5% in the UK o General consumer expenditure (GMID 2006) has increased to £742,977,000,000, which can be demonstrated in figure 1.
• SOCIAL
o The UK populations is ageing o The birth rate is declining.
2.2 MARKET ANALYSIS
o Overview
• There is still a strong interest in fashion.
• UK spending on clothing has increased, which can be demonstrated in figure 2.
• Demand is doing well, but the industry is expected to fluctuate due increasing costs in borrowing. 2006 is projected to be a tougher year.
• Although costs are increasing, prices of clothing are decreasing due to a very competitive market.
o Opportunities
• Although lowers price have increased demand, consumers are not mainly influenced by price when making sales. Fashion is one of the main elements.
• Celebrities and fashion media
References: • BBC NEWS, 2006. M&S tops high street web ranking. UK: BBC NEWS. Available at: http://news.bbc.co.uk/1/hi/business/6180362.stm • BBC NEWS, 2007 • BRADLEY, F. 2005. International Marketing Strategy 5th Edition. Essex: Pearson Education Limited • CIA, 2006 • GLOBAL MARKET INFORMATION DATABASE, 2006. Consumer Expenditure, UK. Euromonitor International. • GLOBAL MARKET INFORMATION DATABASE, 2006 • MINTEL, 2006. Clothing Retailing – UK – September 2006. UK: Retail Intelligence. • MINTEL, 2006. Fashion Accessories Retailing – March 2006. UK: Retail Intelligence. • MINTEL, 2006 • NET MBA, 2007. Pert Chart. NetMBA.com. Available at: http://www.netmba.com/operations/project/pert/ • TERPSTRA, V • THE ECONOMIST. 2006. Country Profile. The Economic Intelligence Unit. Available from: http://www.economist.com/countries/Turkey/ • TRADING SAFETLY, 2006 • TURKISH DAILY NEWS, 2007. 2006 Inflation in single digits. TDN. Available at: http://www.turkishdailynews.com.tr/article.php?enewsid=63216 • USUNIER, J • VALUE BASED MANAGEMENT, 2007. Clarifying and communicating vision and strategy into action: the BSC Framework. Available at: www.valuebasedmanagement.net/methods_balancedscorecard.html • WETZEL, H., Dec • ZAMAN, 2006. Unemployment rate down to 9.1 in Sept. Zaman. Available at: http://www.todayszaman.com/tz-web/detaylar.do?load=detay&link=39395