Marketing Plan

Posted: December 22nd, 2022

Marketing Plan

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Executive Summary

One of the key functions undertaken by the CC brand consultancy is the marketing of luxury brands. It is committed to providing the much needed consultation necessary for firms, corporations and brands requiring marketing consultation. This report details a market penetration strategy for Richard James’s entry into the Canadian market. The first section is an introduction that highlights the definitive components observed in the targeted market that provides an attractive platform for the brand. Some of the highlighted features include the increased number of affluent Chinese residents, and the current popularity of Canada as a top market according to global rankings. This section allows the reader to understand the importance of this marketing plan for Richard James in terms of collecting the pertinent information necessary for setting up stores as well as for customer acquisition. The second section is the selected strategy plan, which is market penetration. Marketing strategy efficiency is crucial in introducing a new brand into a foreign market. In ensuring success of market entry, Richard James relies on product alignment to fashion trends, fair pricing and the brand’s niche specificity. The third section elaborates on the marketing plan. The situational analysis basically evaluates the merchandise category and its fit into the Canadian market. The competitive analysis evaluates the different competitors in the fashion industry with a similar niche as Richard James in order to highlight points of differentiation whose modification can streamline its penetration into the Canadian market and thereby promote sales and business growth. The SWOT analysis has been applied to assess the brand in terms of strengths, weaknesses, opportunities and threats. This evaluation is imperative in understanding components which can be leveraged to facilitate customer base expansion in Canada and stimulate higher revenue generation. The report is detailed and provides a clear outlook on the prospects of investing in the Canadian market in determining the proliferation of the brand as a bespoke tailoring powerhouse.

Marketing Plan

Introduction

This marketing plan has been developed with the primary purpose of evaluating the Canadian market as a prospective target for Richard James clothesline launched for the fall of 2019. Luxury brands experience distribution associated issues which have a crippling effect on market entry. Therefore, it is necessary to conduct extensive research in selecting a strategy effective in streamlining distribution channels in order to ensure ease in market entry through increased sales and customer acquisition. The second aspect considered in this marketing plan is the current attention directed toward Canada by a vast majority of luxury brands (Blevins, 2016). Currently, these companies are in a bid to set up new stores in this location based on its growth potential. The motivating factor associated with this perception is the increasing population of affluent residents who pose as prospective clients for luxury brands (Blevins, 2016). Additionally, the growing number of tourists, Chinese residents and students has aided the expansion of the apparel industry, in the process attracting national brands to invest in market infiltration. During the MAPIC retail conference held in November 2017, Savillis, a London-based brokerage, reinforced the importance of the Canadian market, given its identification as a global top market, with the Vancouver and Toronto markets cited as having the highest potential for brand growth. These considerations present the basis of this market plan, which is aimed at facilitating Richard James’ proliferation, as well as increasing profitability and upward mobility in Canada through effective marketing strategies applied in driving the Fall 2019 clothes line.

Strategy plan

            Market penetration is the selected strategy that will be effective for Richard James as a novel luxury brand in Canada. This action comprises a set of protocols necessary in assuring its success in implementation. Firstly, it is crucial to reach the client. Richard James, as a high end brand, aims to establish a high brand value and pricing power in Canada (Blevins, 2016). This feature is paramount as it gives a competitive edge to the company’s positioning, besides presenting a singularity of elements inclusive of exquisite craftsmanship and heritage, fundamental to the brand. Secondly, this strategy considers fashion-ability of a brand product in luring customers and aiding in market expansion (Blevins, 2016). In the apparel industry, particularly luxury brands, fashion sense is critical in determining product reception in the market, its longevity and the sales made. Seeing it is a perishable variable in the sales equation, high end brands are tasked with the obligation of conducting due diligence on product market penetration as a foresight and precautionary measure. The third component is benchmarking and comparative analysis protocol (Blevins, 2016). Richard James being a brand specifically tailored to meet the needs of male clients with a modern classic fashion sense, the importance of ensuring its luxury component in pricing is justified by providing the best product in the market to assure easy market penetration. Therefore, this strategy emphasizes the price/quality ratio as a driving variable in terms of comparativeness and competitiveness in the Canadian market.

            For each high end brand, a core aspect is positioning specification. This necessitates alignment with the marketing strategy selected in stimulating its business growth within its markets. Market penetration, as a strategy, focuses on services or products in the existing and new markets with the primary objective of gaining market share (Blevins, 2016). Therefore, it motivates the alignment of the specificity of a company’s brand positioning through market evaluation in order to identify features required for product improvement, the detection of competitors’ strengths and weaknesses, and the use of these deductions in product development with the incorporated necessary modifications implemented as leverage and selling points. Hence, for Richard James to infiltrate the Canadian market, this strategy is elemental in introducing the Fall 2019 products to fit the targeted high end clientele in terms of brand specificity and unique to serve a competitive purpose.  The uniqueness of an apparel product relies heavily on quality and pricing (Scholz, 2014). In some cases, brands choose competitive prices in winning over customers from their competitors and gaining more client loyalty. From this evaluation, it is clear that, for the Richard James Fall 2019 clothesline, brand penetration would be the best suited marketing strategy for stimulating growth and driving sales in Canada.

Brand Positioning

In developing an efficacious brand positioning, any corporate, company or enterprise is mindful of the niche it services in its respective industry, and considers the consumer’s perception relating to the benefits associated with the products/service offered by the brand. Moreover, the expected outcome should be indicative of competitive distinctiveness as well as maximization of customer relevancy and brand value. Numerous brands fail to understand their positioning – a phenomenon that deters their growth (Equibrand Consulting, 2019). Understanding the product category associated with the brand is crucial to limiting consumer confusion and promoting competitiveness. Secondly, the target ought to be defined, which requires the brand to be knowledgeable of its type of customers. In addition, it should have a primary difference statement that outlines the product benefits delivered to the client. Lastly, proofs of points require a demonstration. Cumulatively, the success of brand positioning is reliant on three core components, namely, credibility, differentiation and relevance (Equibrand Consulting, 2019). This framework is applied in analyzing a brand position to deduce whether it is delivering on these positioning goals to avoid commoditization, and becoming niche providers.

The Richard James brand positions itself as a menswear company specializing in bespoke tailoring. Enhancing the company’s credibility is the fact that it has been in existence for 27 years and therefore has extensive experience in the high end apparel industry. Its founder, Richard James, has established his reputation in the field by being the recipient of various awards, including the Bespoke Designer of the Year and the British Fashion Council’s Menswear Designer of the Year. The brand’s celebrity following also enhances its credibility. Personalities associated with the brand include Daniel Craig, P Diddy, Pierce Brosnan, Tinie Tempah, David Cameron, Sir Elton John, and Manolo Blahnik. In differentiation, the unique luxury component is the traditional technique used in apparel production. This aspect is a high end service as it constitutes traditional tailoring where experience, crafting and style are merged and integrated into each cloth produced.

Richard James customers are particularly intrigued with the quality and detail and which goes into cloth production (Gentleman’s Gazette, 2017). This intrigue has been the main motivator in front lining bespoke tailoring as a directional fashion. With the inclusion of time as a factor in the production of each garment, its product pricing is justified as it is demarcated from other competitors as a differentiation point. Its target market is the “dapper man’ belonging to the affluent social class, which has a deep appreciation of quality and craftsmanship as well as the traditions that are espoused by the tailoring trade (Gentleman’s Gazette, 2017). Currently, the appeal for handmade tailored suits is rising due to its heritage component. From this analysis, it is evident that the company is well positioned as a global brand. With a well-structured market penetration framework, it will be more empowered to infiltrate new markets and experience exponential growth based on its clear understanding of its brand, customers and product relevance.

1. Situational analysis

The Canadian apparel industry accrued $2 billion in revenue as of 2019. It comprises 1472 businesses and has a 2.7% annual growth rate. The menswear clothing stores in this country are majorly retail stores. The main products sold are exclusively men’s footwear and apparel, with additional services such as shortening and lengthening of sleeves, and the undertaking of basic alterations. A major problem in this industry has been the increasing external competition facing local operators. This mounting competitiveness in Canada’s fashion industry is attributed to the price differentiation and the increase of online retailers. This pressure has led to a projected decline that has been estimated at 1.6%. Owing to more American-based deal gender retailers entering the market, the industry is facing a substantive reduction in its revenue generation. In terms of market share, Moores Clothing for men and Harry Rosen have the highest shares. Lastly, the industry consists of five product categories, including formal wear, casual wear, footwear, accessories, and others.

In Canadian tailored suit trends, several features have been noted. Firstly, according to a CBC report, more men are purchasing trim fitting suits. This trend has been a suit aesthetic for many years, with trend watchers highlighting the importance of fit in attracting men who love wearing tailored suits. In particular, the shoulder padding and alignment of the knuckle with the jacket’s bottom are considered extremely important for a perfect fit. In terms of short sleeve length, most Canadian men prefer splaying their shirt cuffs. Therefore, shirt sleeves tend to  longer than jacket sleeves by half an inch. This allowance ensures that shirt cuffs are visible, in keeping with the current trends in suit fashion. The third trend is wearing slender ties with tailored suits.  These ties reach the trousers’ waist band or belt bucket. Of late, navy blue ties and ties with fine vertical stripes and dark floral prints have become an essential part of the kit of the fashionable suit-wearing man. Another trend has been the replacement of the tie with a bowtie. The allowed height of this accessory is 3 inches, which is bigger than the 1.5 standard measure (Gentleman’s Gazette, 2017). Social media Canadian fashion trends influencers are leaning more on butterfly bow ties to accessorize their tailored suits and add a touch of sophistication, personality and couture allure to them.

Lastly, more Canadian men are acquiring the “no belt” with suit trend, as belts are increasingly being perceived as archaic. This trend has seen more men having their belt loops removed. The perception supporting this trend is that, with a perfectly fitting tailored suit, a belt is an unnecessary accessory. Concerning pocket squares, the main fashion rule in Canada is that men should wear them ensuring that their colors complement the tie. The pocket square draws much of its present popularity from the fact that it is now often viewed as the perfect conversation starter.

The Canadian formal suit wear has changed with trendy fashionable features being incorporated in suit production. It is crucial for Richard James, as a formal menswear brand, to increase its awareness of these features in order to generate suit designs which match the ongoing trend preferences to better serve its prospective Canadian customers better.

Competitive Analysis

In the apparel industry, Richard James faces several competitors within its niche in tailoring classic suits. The main competitor is Austin Reed, which is headquartered in North Yorkshire. In terms of revenue, its yearly income is 1,250% higher than Richard James’s. The second competitor is Apsley Tailors (IBIS, 2019). Founded in 1900, it operates in the suit making category. Its competitive advantage is  its huge workforce. Hugo Boss, the third competitor (IBIS, 2019), is globally renowned in the apparel retail industry. It generates $3.3 billion more in revenue than Richard James and therefore enjoys a larger market share. In totality, the top ten competitors in the apparel industry in the tailored suit niche are Austin Reedm, Hugo Boss, Apsley Tailors, Austin Reed Group, Bonmarche, Chris Kerr Bespoke Tailor Edit Suits, Henry Herbert, and Moss $ Barnette (IBIS, 2019). Richard James is placed in 9^th position. These companies generate an estimated 2.3 billion yearly.

SWOT Analysis

1. Strengths

Richard James possesses several strengths that could propel its growth as a high end menswear apparel company. Firstly, in the modern setting, tailored and customized wear is receiving vast attention in the fashion industry. This is based on the perception that fashionable tailored garments are classic and timeless and are therefore naturally costly. With this view becoming dominant in fashion, it has limited the competitive advantage of the ready-to-wear category, which loses out to bespoke tailors in the matter of providing a superior fit and extensively detailed garments. The second feature is exclusiveness. The fashion industry is currently experiencing a deficiency in uniquely crafted products that maintain a fashionable allure (Gentleman’s Gazette, 2017). With the Richard James brand relying solely on bespoke tailoring as its tool of trade, it provides the high end client with an opportunity to acquire a truly unique garment that is exclusively designed to match his wardrobe. The reproduction of one of a kind patterns and styles is the key strength of bespoke tailoring and accounts for its longevity in the fashion industry, given that mass producers cannot possibly integrate these aspects into their production processes as they would be both costly and time consuming (Gentleman’s Gazette, 2017). Flexibility of style is another important feature of the brand. As a company founded on craftsmanship, Richard James provides the client with a variety of styles based on cultural heritage (Gentleman’s Gazette, 2017). For instance, a tailored suit made for a British gentleman would be considerably different from that tailored for a Naples resident. These differences constitute the different methods applied in bespoke tailoring. London tailoring is more inclined toward military features characterized by pronounced shoulders and waisted silhouette. On the other hand, Italian tailoring features soft tailoring methods and incorporates body flattering shapes in creating an attractive appearance. In this context, Richard James offers versatility in terms of style preferences, an exceptionally unique feature that can be leveraged for a higher competitive advantage.

• Weaknesses

One factor that globally impedes the popularity of bespoke tailoring is that a majority of apparel customers are more interested in quantity than quality. As a result, it is becoming harder for high end brands such as Richard James to compete with their fast fashion competitors with regard to the acquisition of larger customer markets (Gentleman’s Gazette, 2017). The second limitation is pricing. Tailored suits are costly and time consuming. For instance, one suit takes about three weeks to produce. Additionally, two fittings are required within this time span. In terms of pricing, the fabric is the determinant factor. Globally, the best fabrics for bespoke suits are Australian and Tasmanian wool. The most expensive fabric is from Peru, and is known as Vicuna wool (Gentleman’s Gazette, 2017). The fur is collected from an animal which resembles a Llama. While pricing and time consumption can have a negative effect on sales, these conditions are worsened by the existing attitudes of consumers, who prefer to purchase tailored suit products when attending a wedding or a funeral. Therefore, with an already minimal client base, bespoke tailoring companies are limited in terms of entering other fashion markets to increase the number of their customers as their niche is highly specific and restrictive in terms of fashion styles and trendiness.

• Opportunities

Various opportunities are available for Richard James Bespoke in terms of generating sales and stimulating its global growth as a luxury brand focused on meeting its clients’ needs in formal menswear. Firstly, it should be able to leverage the unique selling points synonymous with its trade (Gentleman’s Gazette, 2017). One of the unique features of bespoke tailoring is the customer-tailor relationship it establishes. Tailoring services, in most instances, are personalized. Customers become more acquainted with their tailors who, in turn, learn and master the client’s preferences and tastes over time. Many fashion companies have tried incorporating this element into their stores by having VIP rooms where the customers are given special treatment. However, this experience is quite different from that provided by bespoke tailoring because there is constant change in staff in the former (Gentleman’s Gazette, 2017). Therefore, Richard James can utilize this advantage by prioritizing consistency and the retention of its master tailors. This would further drive sales in the form of the return of customers and the placement of bulk orders on the basis of trust and confidence. The second opportunity is in choice selection. Richard James offers its customers a chance to select their preferred fabric, which is then cut and detailed according to their preference. This individualization and personalization of service is a unique feature which cannot be duplicated by the fast fashion and ready-to-wear industry (Scholz, 2014). Consequently, it presents an opportunity for the brand to offer exclusivity to its clientele. This feature should be leveraged in driving sales with companies such as world renowned Ralph Lauren demonstrating its viability as an USP.

• Threats

A main threat to the bespoke business is the high possibility of error in the design creation and tailoring process. Bespoke is a creatively open process. In all creations, the tailor starts the production from scratch, and there is always the possibility that the outfit may be either refined or that a step may be missed that may lead to the making of a bad suit (Gentleman’s Gazette, 2017). Additionally, the exclusion of automation processes in taking measurements often leads to mistakes for first time customers, as the cutter gains mastery with each consequent suit ordered by the same client. As it is often difficult to convince a customer that their second suit will be better, the first time mistakes often dissuade a client from returning to place another order (Gentleman’s Gazette, 2017). The second threat is the pricing. The tailoring that Richard James offers is quite expensive for the average customer. At the same time, there are companies which undercut their prices while delivering low quality products by cutting corners (Gentleman’s Gazette, 2017). These two restrictions often deter tailoring companies from achieving their sales targets. It is therefore necessary for Richard James to consider strategies that would effectively circumvent these conditions and further boost its growth as a powerhouse in bespoke suit tailoring.

Marketing Objectives and Strategies

Product Objectives

In line with the current trends in Canadian formal menswear, the clothes line will target the corporate gentleman (Blevins, 2016). The products included will be pearlescent white shirts and all-black tailored suits. The primary reason for selecting this theme is the ever persistent reception an all-black suit receives regardless of the weather or season. Secondly, it would be a perfect fit for market entry since the brand is yet to fully develop an understanding of the Canadian menswear market and this clothes line is not only a safe option but also one that is in line with the fashion the company intends to adopt, which is modern classic. Thirdly, black is always in style and has therefore been dubbed the color of the year. It does not clash with other colors, suits the male physique, and is easier to manage in terms of cleanliness. Additionally, its versatility is quite unique as an all-black suit can easily blend into any setting that is either corporate or casual. All these features should be considered in product development. The key consumer category targeted for this clothes line product is the affluent Canadian male in the 28-45 age group with a taste for modern classic style suits.

Target Market Objectives

            A retail store will be part of the retail supply chain. This channel will be important in attracting customers through display. As walk in sales are considered more impactful in securing sales than an online platform in the retail industry, it is important for Richard James Bespoke to set up a retail outlet where the clients will be getting direct services from the tailors such as fitting and cutting sessions as well as additional tailored products. The second retail chain that can be leveraged is catalog retail. In bespoke tailoring, word of mouth is an important tool for client acquisition.  For instance, a customer wearing a tailored suit can direct a prospective client to the store interested in the same design. Establishing a catalogue retailer provides information concerning the variety of products produced by the retailer through a website, physical portfolio or emailed catalog the customers use in placing their order. This form of market targeting can be crucial, especially for customers who prefer viewing the product outcome prior to placing their order of the same. Therefore, availing catalogues through different platforms will expand Richard James market reach.

Product/ Market Strategy

This stage involves the road map applied in ­­marketing the all-black bespoke suits clothes line. Firstly, the vision targeted in developing this product is gaining entry into the Canadian market and allowing the audience to familiarize themselves with the Richard James brand. A leader approach will be effective for this brand as it one of the kind in the Canadian market. Richard James, in leveraging this strategy, will endeavor to develop innovative, fashionable and trendy products in order to increase its market share and expand its customer base. Another focus will be on investing heavily on research and development with the aim of creating trends that feature distinct qualities that outcompete other tailored products in the market. Though it is a costly strategy, it will be effective in hindering smaller tailoring businesses from market entry, thereby ensuring that the payoffs remain substantive.

Marketing Plan

Product

            The introductory product will be the all-black bespoke tailored suits, along with pearlescent white, beige, mauve, mustard, navy blue, orange, gray, and rose pink ones. The color selection for this clothes line is fall inspired as it will be launched within this season. The product will target the classic gentleman consumer category from affluent backgrounds including expatriates, and international students as well as high income Canadian males in the 25-55 age bracket.

Price

The pricing strategy applied will be flexible. The product line prices will be strategically established in a way that it carries the quality and reputation of Richard James Bespoke Tailoring. The product will have a suggested price for retailers. Keystoning will also be applied in price setting.

Place

            Various platforms will be considered in facilitating product delivery into the Canadian market. Firstly, the company will provide a catalogue of the Fall 2019 all-black bespoke suits on its website, which should be accessible to all Canadian residents. This will be important in ensuring that the customers are updated on the launch. The second platform will be the establishment of a physical tailor luxury shop where customers can physically visit and get fitted in their customized suits. Walk in sales are essential if the brand seeks to create a long-lasting impact on its Canadian customers.

Promotion

In increasing product awareness of the all-black suit line, the company should embark on developing a creative promotional plan with its primary focus being the targeting of the high end customer within the Canadian market while still maintaining conservativeness in terms of expenditure to avoid any fiscal losses. Firstly, the press release kit will be dispersed to all the media outlets in Canada highlighting the introduction of the first bespoke luxury line in the country. The kit will be inclusive of color postcards, pictures of the clothes line and detailed descriptions of the same, a press release, business cards, and flyers. Additionally, an estimated 20,000 flyers will be disbursed in fashion events and to apparel retailers in major cities throughout Canada. Thirdly, it is necessary to develop a direct mail program. This will be used as an effective tool to target 50% of the customer base, and will include promotion and in house sales. Lastly, mass media will be used as well in promoting the all-black bespoke suits. This will be achieved by securing advertisement spots on at least four FM radio stations in Canada.

References

Blevins, S. (2016). Bespoke History. Living Cargo, 3(2), 34-67.

Equibrand Consulting. (2019). Brand Positioning Strategy. Retrieved from http://equibrandconsulting.com/services/brand-consultant/brand-positioning/strategy

Gentleman’s Gazette. (2017, November 15). The History of Bespoke Tailoring: Now and Then? Gentleman’s Gazette. Retrieved from https://www.gentlemansgazette.com/the-history-bespoke-tailoring/

IBIS. (2019, August). Industry Market Research, Reports, and Statistics. Retrieved from https://www.ibisworld.com/canada/market-research-reports/mens-clothing-stores-industry/