marketing
...ward jeans for people between the ages of 15 – 29. Their jeans are trendy and directed to people who care about their appearance. Weaknesses = their prices are more expensive and people between the ages of 15- 29 might not make enough income to spend on these jeans. Market share = because Guess targets from ages 15- 29 with trendy jeans that are highly priced they will only own 3 % of the market. Position Strategy = Assuming that regular people from ages 15- 29 do not make a high income, Guess jeans are positioned as Less for More. Their jeans are not affordable for the regular consumer. Atlantic Jeans Market share = Assuming that Atlantic Jeans modified their style to suit 15- 19 year old they would own 3 % of the markets. They properly targeted an age group, but still do not know their wants. Profit = revenue – costs Assuming that expenses (including cost of goods sold) are 90% of total revenue then the net profit would be 10 % of sales. 3 % of market = 6,629,700 0.9 x 6,629,700 = 5966730 6629700- 5966730 = $662,970 = Profit The goal of Atlantic Jeans is to now produce a new line of jeans directed to teens of ages 15- 19 in a low price range. This may conflict with what the teen wants. These teens or their parents may be willing to spend more money on pricey brand names then a cheaper line of jeans. Also this segment is very small and may not be able to keep up, due to the small range of target. If these teens are not looking for this type of jean, their segment is not directed to any other group and will fail. Geographic Segmenting Urban Areas -Quebec -Ontario -All Ages In Urban areas in large cities, with large populations’ people are more fashion conscious and fashion forward. The media is more recognized in industrialized cities, which is a reason why people are much more concerned with fashion. Attitude/Lifestyle/Wants Girls From ages 10- 15 - Fashion forward - Self conscious - Very influenced by media - shopping, movies, school, music… - Income received from parents - Money received goes to entertainment, clothing, snacks, and unnecessary goods - Magazines, books about fashion, media… From Ages 15- 25 - Fashion forward - Influenced by media and brands - Begin to get jobs and make income - More conscious about school and career - After 18 become legal: drink, go to clubs, drive… From Ages 25-45 - Marriage -Career, jobs - Entertainment, movies, theatre - Families - Money goes to personal expenses, taxes, living expenses - Money on child education - Exercise - Household issues - Vacations From ages 45 + - Entertainment – movies, theatre - More money on health - Life insurance - Families - plan education for children, wedding for children - Household issues - Vacation – Retirement Guys From ages 10- 15 - Into comfort - Easy going - Influenced by media - Sports, music, movies - Income received from parents - Money received goes to entertainment, clothes, snacks, arcades, sports oriented activities, unnecessary goods - Magazines, books about sports, sci-fi… From ages 15- 25 - For some fashion forward - Begin to care more about clothing and image - Influenced by Media and Brands - Begin to get jobs and make their own income - More conscious about school and careers - 18 or 19 + become legal and can now drink, go to clubs, drive… From ages 25- 45 - Marriage - Career, jobs - Entertainment, movies, theatre - Families - Money goes to personal expenses, taxes, living expenses - Money on children education - Exercise - Household issues - Vacation From ages 45 + - Entertainment, movies, theatre… - Life insurance - Families - Education for children - Household issues - Wedding for children - Vacation - Retirement Q = n x q x p n = 6,786,000 + 9,627,000 = 16,413,000 = population of Quebec and Ontario q = 2 pairs of jeans per year p = 35.00$ Q= 16,413,000 x 2x 35 = 1,148,910,000 Homogeneity = urban areas, Quebec and Ontario, all ages Heterogeneity = all ages Accessibility = easily accessible due to trendy images for the urban lifestyle. It is situated in populated areas and therefore will be recognized. Actionability = Can develop a marketing mix. Average price for the urban workers. Situated in trendy shops where city life people like to shop. Product is trendy and media based. Wide promotions on billboards, buses, posters and television where people of all ages in all urban areas will recognize the jeans. Targeting Blue Bell Canada Strengths = Directed to Urban market, which want more trendy jeans Weaknesses = N/A in geographic segment Market share = seeing that Blue Bell targets to major Urban areas, their market share is 5 %. They properly directed their tight fitting jeans in urban areas where people want that trendier style. Position Strategy = Assuming that the price is low they used a positioning strategy of More for Less, because they’ve properly targeted to major urban areas where their jeans benefit the consumers. I.e.: Urban areas want trendier clothing. Pantorama Strengths = N/A for geographic segment Weaknesses = Directed all across Canada to rural and urban areas where they don’t all want trendy jeans. They are impersonal towards geographic area unlike smaller jean manufacturers. Market Share = seeing that Pantorama poorly directed their jeans geographically, they would own 2 % of the market. They made a trendy image jean and directed it all across Canada, which may not benefit both urban an rural areas. Position Strategy = They targeted to a wide geographic range and assuming that the price is low they’ve used a position strategy of Less for Much Less; because they’ve targeted all across Canada, which may not benefit everyone. Lee Canada Strengths = Well promoted their product, so that even though they’ve targeted to all of Canada, they will be recognized throughout the country. Weaknesses = they targeted to all of Canada and did not focus on either rural or urban areas. They also completely disregarded their old product and changed their jeans to a new fabricated jean, which may not please those in rural and urban areas. Market Share = seeing that Lee Canada did a market study to target their product demographically they ignored the geographic aspect of segmenting. Because they’ve directed their new trendy jean all across Canada without researching their wants, they own 3 % of the market. Position Strategy = Lee Canada uses the positioning strategy of Less for much Less, assuming that they lowered their price due to new risky jeans .All of Canada is not getting their benefits sought with these new jeans, they are only getting a cheap price. Levis Strengths = Levis have different types of jeans for different types of people: Urban, rural. Their fashion forward jeans yet also comfortable and easy to wear jeans. Weaknesses = Because Levis tend to set the trends people of different areas might not agree with their new styles Market Share = Because Levis is Canada wide with different types of jeans for each type of person they own 6 % of the market. Position Strategy = Levis uses a strategy of More for Less as the public is receiving jeans of all sort based on their style for a regular price. Urban and rural areas can be comfortable in their jeans and still afford them. Guess Jeans Strengths = Guess Jeans are directed to a specific area (Urban – Quebec, Ontario), which are fashion conscious and for the most part image conscious cause of the media. Weaknesses = N/A in geographic Market share = Because Guess is well directed to certain areas i.e: Quebec, Ontario and urban markets they own a large clientele of fashion forward consumers, hence they own 5 % of the market. Position Strategy = The customers buying Guess Jeans are style conscious people who do not have a problem spending more on a pair of stylish jeans, therefore the strategy used is More for More. Instead of receiving a pair of jeans that do not appeal to them for a small charge they are spending more on jeans which benefit their style. Atlantic Jeans Market Share = Assuming that Atlantic Jeans modified their style to suit all Urban Areas in Ontario and Quebec they would own 4 % of the Market. They properly targeted their location with large population, but still do not know their wants. Profit= revenue – costs Assuming that expenses (including cost of goods sold) are 90% of total revenue then the net profit would be 10 % of sales. 4 % = market share 0.04 x 1,148,910,000 = 45,956,400 0.9 x 45,956,400 = 41360760 45,956,400 – 41,360,760 = $4,595,640 = profit The goal of Atlantic Jeans is to now produce a new line of jeans directed to all aged population in urban areas in Quebec and Ontario, with low prices. This may conflict with what those people want. These people are of all ages and therefore it may not catch the eyes of teens if adults are buying these jeans. They may be a trendier line, which is more wanted in urban areas; however adults over 30 may not want this or even some younger kids, in which Atlantic jeans will lose some of their market. Psychographic Segmenting Social class – Urban middle and upper middle class, and working (lower middle) class. Their lifestyles are fashion forward, style conscious, trendy, media driven people. Between the ages of 15 -29. Girls - Fashion forward - Influenced by media and brands - Begin to get jobs and make income - More conscious about school and career - After 18 become legal: drink, go to clubs, drive Guys - For some fashion forward - Begin to care more about clothing and image - Influenced by Media and Brands - Begin to get jobs and make their own income - More conscious about school and careers - 18 or 19 + become legal and can now drink, go to clubs, drive… Q = n x q x p n = 16 households of middle and upper middle class + 15 households of working lower middle class. There are on average 4 people per household. n = 16 x 4 = 64 + 15 x 4 = 60 + 64 = 124 q = 2- 5 pairs of jeans per year = 3.5 p = $35.00 Q = 124 x 3.5 x 35 = 15,190 Homogeneity = ages 15- 29, urban areas Heterogeneity = upper middle class, working class Accessibility = Will be sold in fashion forward stores which are accessible to the consumers. May be situated in the downtown sector for the working class where the majority of jobs are located. Actionability = Can make a marketing mix. The product is trendy and targeted especially for the wants of the consumers. Price is affordable yet not too cheap because of middle class people. Situated mostly in downtown sector where more jobs are located as well as other stylish stores. Will be promoted on billboards, television, posters…etc for the working and upper middle class to constantly recognize that their wants are being given to them. Targeting Blue Bell Canada Strengths = Working class and middle class people can afford to buy trendy style jeans. Weaknesses = they are targeting to an age group that is to vast. The age group that tends to buy tight jeans are from 18- 29 blue bell is marketing their jeans from 18- 49. People 30 + are not as fashion conscious and do not care as much about trends as they do values. Men do not want tight jeans and did not research peoples wants and just assumed they wanted tighter jeans. Market share =...