TABLE OF CONTENTS

I. INTRODUCTION ........................................................................................................................... 3
I.1. Rationale ........................................................................................................................................... 3
I.2. Aims and objectives......................................................................................................................... 3
II. BACKGROUND ............................................................................................................................. 4
II.1. Companys Performance Overview............................................................................................. 4
MARKET SHARE............................................................................................................................... 4
FINANCIAL RESULT ....................................................................................................................... 5
SALE WITHIN TARGET GROUP ................................................................................................... 6
SCORECARD ...................................................................................................................................... 7
II.2. Mission ............................................................................................................................................. 7
II.3 Slogan ................................................................................................................................................ 7
II.4 Positioning ........................................................................................................................................ 7
II.5. Company objectives and goals ..................................................................................................... 8
III. MARKETING OBJECTIVES AND STRATEGIES...................................................................... 8
III.1 MARKETING OBJECTIVES ......................................................................................................... 8
III.2 INDUSTRY ANALYSIS................................................................................................................. 8
III.2.1. PESTEL ANALYSIS ............................................................................................................... 8
Political and legal ............................................................................................................................... 9
Economic ............................................................................................................................................. 9
Social .................................................................................................................................................... 9
Technology .......................................................................................................................................... 9
Ecological ............................................................................................................................................ 9
III.2.2. MARKET AND CUSTOMER ANALYSIS ........................................................................ 10
III.2.3. COMPETITOR ANALYSIS ................................................................................................. 11
III.2.4. SWOT ANALYSIS ................................................................................................................ 11
III.3. OVERALL STRATEGIC DIRECTION- SHORT TERM OBJECTIVES ................................. 12
PREFERRED POSITIONING.............................................................................................................. 12
JUSTIFICATION PREFERRED POSITIONING............................................................................... 12
JUSTIFICATION TARGET MARKET ............................................................................................... 13
IV. MARKETING MIX....................................................................................................................... 14
IV.1. Product ......................................................................................................................................... 15
IV.2. Price .............................................................................................................................................. 15
IV.3. Place .............................................................................................................................................. 15
IV.4. Promotion .................................................................................................................................... 15
IV.5. People and Process ..................................................................................................................... 15
IV.6. Physical environment ................................................................................................................. 15
V. CONCLUSION ............................................................................................................................ 15
VI. REFERENCES ............................................................................................................................... 15
VII. APPENDIX .................................................................................................................................... 16
Market Information ............................................................................................................................. 16
I. INTRODUCTION

I.1. Rationale

As the intense branding battle within the jeans fashion market, many top global jeans

brands are conducting expensive advertising campaigns to over other competitors

(Marketing Now, Q1 2017). In the latest research of Marketing Now, it is announced

that creating and showing the brand differentiation is likely to become a struggle for

marketers. A3L Jeans is one of the international jeans brand facing to this issue and

suffering from this negative impact.

I.2. Aims and objectives

This current report is undertaken to have a glance at A3L Jeans overview, to analyse

company and industry in the EU market, and to justify how these decisions have been

determined. This output information included marketing tools and techniques

applied will demonstrate the role of marketing, the impact of changing market, trends

and consumer preferences in organisation, investigate how these strategies affect to

branding and profit of organisation and this will serve for future Marketing plan of

the company.
II. BACKGROUND

II.1. Companys Performance Overview

MARKET SHARE

Men

26% 27% Jeanies

JeaNation
A3L Jeans
Arrow Denim
15% LaMont jeans
25%
7%

Women

25% Jeanies
34%
JeaNation
A3L Jeans
Arrow Denim
21% LaMont jeans
13%
7%
 It could be seen from the pie chart that A3L Jeans Company accounts for a 7-

percentage of men and women market share, while these figures were expected to

be 35%.

FINANCIAL RESULT

Sale Revenues Product

SALE REVENUES TOTAL MEN WOMEN

339.348 162.170 177.178

Cost of sales

Materials 112.500 50.000 62.500

Manufacturing 52.125 19.000 33.125

Labelling/ supply 4.500 2.000 2.500

COST OF SALES 169.125 71.000 98.125

GROSS PROFIT 170.223 91.170 79.053

Operating expenses

Promotion 71.600

Advertising 13.500

Training 5.000

Service & Technology 41.000

Rent 15.000

Online shop 12.000

Warehousing 679
Market research 0

Overheads 35.000

OPERATING 193.779

EXPENSES

OPERATING -23.557

PROFIT

SALE WITHIN TARGET GROUP

Sales within target group

Sales Target group

Women

Men

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
SCORECARD

SCORECARD
SALE REVENUE
GROSS MARGIN
OPERATING PROFIT
MARKET SHARE MEN
MARKET SHARE WOMEN
BRAND AWERENESS MEN
Gained
BRAND AWERENESS WOMEN
Total
BRAND IMAGE MEN
BRAND IMAGE WOMEN
BRAND LOYALTY MEN
BRAND LOYALTY WOMEN
STOCK MANAGEMENT

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

II.2. Mission

Offering the perfect balance of quality and value, A3L Jeans are made for the born

survivor, giving our customers a durable, versatile and fashionable jean able to

withstand anything life throws at them.

II.3 Slogan

Slogan for Men: "A3L Jeans: For the Thrill Seekers"

Slogan for Women: "A3L Jeans: Thrill Everyday"

II.4 Positioning

After 8 quarters, A3L Jeans defined itself as a brand with Medium Price Medium

Quality.
II.5. Company objectives and goals

A3L Jeans set a goal to maintain positive operating profit during 8 quarters and

minimum gross margin was expected to be 25% for healthy business.

III. MARKETING OBJECTIVES AND STRATEGIES

III.1 MARKETING OBJECTIVES

Key Performance Indicators chosen are operating profit, market share women and

brand loyalty men.

In term of market share, A3L Jeans expected to increase market share in women to

35%. In branding loyalty section, this indicator was anticipated to increase to 50%.

A3L Jeans set a goal to maintain positive operating profit during 8 quarters and

minimum gross margin was expected to be 25% for healthy business.

III.2 INDUSTRY ANALYSIS

III.2.1. PESTEL ANALYSIS

According to Dcosta (2011), PESTEL analysis, which are considers as practical

strategic tool, is based on six parameters to examine marketing strategy and position.

Six elements are Political, Economic, Social, Technology, Legal and Ecological.
Political and legal

No information

Economic

For the first three quarters of the year, Europe witnessed the growth in economic.

Besides that, there was a decline in unemployment rate to the lowest point. Due to the

steady growth in economy of China, India and Pakistan, the raw material in apparel

industry fell in pricing that benefit for textiles and fashion industries.

Social

Apparel industry had been around with costumers who desire for trustworthiness

and high-quality standards (Marketing Now, Q1).

From Consumer Week (Q5), it is said that there is a growth in amount of the ethically

conscious shopper in Europe. In this customer group, they require a safety norms and

human rights during manufacture process.

Technology

Marketing Now (Q2) revealed that a European marketing experts announced social

media plays a crucial role in Marketing to allow organisations to approach massive

customers via mobile devices. Moreover, the Euro Marketing Agency (Q2)

highlighted that increased mobile phone usage among young people is going to be

a key advertising driver for current growth of online shopping.

Ecological

No Information
III.2.2. MARKET AND CUSTOMER ANALYSIS
III.2.3. COMPETITOR ANALYSIS

III.2.4. SWOT ANALYSIS

Strengths Weaknesses

High level of brand recognition Stock management ability

Market Differentiation Limited product lines

Fair and profitable financial position

 Opportunities Threats

Customisation of jeans Unstable in online shopping

Building online shopping Intense competition

Unstable economic affect business

III.3. OVERALL STRATEGIC DIRECTION- SHORT TERM OBJECTIVES

PREFERRED POSITIONING

Medium Price Medium Quality for Men and Women

JUSTIFICATION PREFERRED POSITIONING

Change price strategy

After launching trial price, A3L Jeans received positive feedback in market share

In Quarter 1, the low-price strategy was applied for men and women jeans then company

changed from low-price to medium-price strategy after Q2. Company benefits from

market share by the increase proportion from 18% and 15% (Q2) to 26% and 26% (Q3) for

men and women respectively.

Market news from experts and market research company

According to Brian Carruthers of trade group UK Business from The Herald, he

announced We are finding customers are less concerned about finding the cheapest

deal. This information gives company a hint that customers are more willing to spend

money than before.

From the market news and reflection of customers for price changing, A3L Jeans

company decides that company focus on the quality at the medium price

JUSTIFICATION TARGET MARKET

Market information of benefit derived from purchase statistics

From the market analysis section, it gives us the statistics of Benefit derived from

purchase. It could be included that customers tend to look for value and economy

element when purchasing.

The A3L Jeans segmentation

MALE AND FEMALE aged between 25 - 32 years; earning 5.000 - 1.000.000, single, in

a relationship or married, living in a urban area. This target market's psychographic

profile is thinker/believer, achiever/striver, experiencer/maker, innovator or survivor.

The target market perceives the main benefit as derived from purchase as value and they

are early adopter, follower or indifferent with regard to fashion.

The target market is regular user, their loyalty status is hard-core, split, shifting or

switcher and they are heavy users.

The target market perceives the main benefit as derived from purchase as economy, value

or quality and they are early adopter with regard to fashion.

The target market is regular user, their loyalty status is split and they are heavy users.

IV. MARKETING MIX

(include a detailed discussion of each element, with an evaluation of the decisions made

by the group for each element. In each of these sections you should demonstrate a

critical reflection on the

decisions taken on the selection of marketing mix tools and techniques.

The critical reflection should include a justification for your selection, supported by

reference to appropriate models, concepts and theory (MCT).

Some things to consider: What worked well, what did not? Were there

misalignments (for example were the promotional tactics appropriate to the target

market?). Did the decisions taken reflect and support the desired brand image?
IV.1. Product

IV.2. Price

IV.3. Place

IV.4. Promotion

IV.5. People and Process

IV.6. Physical environment

V. CONCLUSION

Reflection on the companys performance

Relate this section to the KPIs, and analyse the companys performance: if the company

performed well, why did it perform well? If performance was not as expected, explain

this. What were the key issues, and how could they be overcome in the future?

Individual reflection

Consider what you have learned from this simulation exercise. Reflect on the business

decisions you were involved in and how they contributed to your groups performance.

Also reflect on team working, and your role.

What want well, and what could be improved for your next group activity?

VI. REFERENCES

Dcosta, A. (2011). PESTLE analysis history and application. by Edwards G., http://www.

brighthubpm.com/project-planning/100279-pestle-analysis-history-

andapplication/(visited on 9.6. 2014 at 10.57 pm).

VII. APPENDIX

Market Information
Knowledge and understanding

a) Demonstrate a critical understanding of the role of marketing in helping an

organisation determine its overall strategic direction and achieve its short-term objectives

c) Explain and discuss the influences of changing market and consumer trends on the

choice of appropriate marketing tools and techniques.

Skills, qualities and attributes

e) Demonstrate the ability to analyse and apply knowledge and information, and utilise

key marketing theory and concepts, in different business

contexts

f) Demonstrate the ability to communicate marketing ideas, in both written and oral

format, to a professional standard