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Individual; worth up to 25% of module marks
As you were told on Monday, 4th March, your second assessed coursework is to write a 3 year strategic marketing plan for Cole Haan UK, to take their turnover (i.e. sales[1]) from $1m (£760,000) in 2019 to $7m (£5.5m) by the end of 2022.
Your plan should include:
- An Executive Summary
- A brief situational analysis, including SWOT, and key issues
- Marketing objectives for the 3 year period
- The broad marketing strategy to be followed for the 3 years, in terms of targeting and positioning and an outline of the marketing mix.
- A detailed plan for Y1
- A rough financial forecast for the 3 years down to contribution[2]
You may assume their gross profit margin is 60%, and that A&P[3] budgets in this industry are typically 3% of sales.
Whilst there is no strict word limit, it is hoped that most students will answer the question in 1,500 – 2,000 words (excluding any appendices, executive summary, ToC and references).
Submit via Blackboard by 13:00 (1pm) on Wednesday 3rd April.
NB: The assignment will be marked anonymously, so do not put your name or student registration number on it!
[1] These are their sales figures, not retail sales
[2] Contribution is gross profit minus A&P spend.
[3] Advertising and Promotion – all money spent on marketing communications
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| Subject | Business | Pages | 5 | Style | APA |
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Answer
EXECUTIVE SUMMARY
BRAND DESCRIPTION
Cole Haan is a global brand that specializes in the sale of men’s and women’s footwear and accessories (). It was founded in Chicago USA and has been in existence since 1928. Trafton Cole and Eddie Haan founded the brand and their main resolve was to make good goods. The brand’s slogan is; an elegant collusion of tradition and modernity. Essentially, the brand boasts of the culture of expressing an appreciation for the authentic traditional approaches to fashion while also incorporation the modern concepts of fashion so as to come up with elegant and competitive items that can be appreciated in the current age. Cole Haan has several stores in the UK and as at 2019; the brand started utilizing its online platforms for varied purposes including the making of sales.
SITUATIONAL ANALYSIS
Cole Haan is faced with overwhelming opportunities as illustrated by the fact that the brand has been recording significant fiscal growth over the past three years. For instance, the actual sales in 2018 increased by slightly over 100%. The brand has also been presented with a number of challenges thus it must have a proper mitigation plan.
Even as Cole Haan seeks sustainability in terms of growth, it has also been keen on advocating for sustainable means of production so as to discourage actions that are harmful to the environment. In 2008, for instance, the brand made an announcement to the effect that it will no longer be using real animal fur in its products (). The following is the outline of Cole Haan’s SWOT analysis;
Strengths;
- From the time it was founded, the brand has had an understanding of its target market and products. It essentially follows that Cole Haan has been successful in ensuring that the products and the customers meet.
- Cole Haan has a stable and formidable brand image.
- The fashion style presented by Cole Haan (a fusion of tradition and modernity) is unique in scope and it strongly appeals to the current generation.
- Cole Haan has set shop in various parts of the UK with great success.
- The brand has a very limited pool of manufacturers which makes it easier for it to monitor the quality aspects of the brand.
Weaknesses;
- The fashion sense presented by Cole Haan (fusion of tradition and modernity) is unconventional and may not be embraced by certain groups of customers.
Opportunities;
- Cole Haan has been recoding significant increase in sales over the past three years. This means that it is foreseeable that the growth rate can be stabilized.
- Conducting sales and marketing through the online platforms has opened the brand up to a wider scope of clientele base across the globe.
Threats;
- The brand’s ‘fusion’ concept may be tiring for consumers thus there is need to ensure that it remains fresh.
- Competitive brands may take up the ‘fusion’ concept and utilize it to the detriment of Cole Haan.
- If retailers believe that there is stiff competition in the wake of online sales, Cole Haan’s relationship with retailers may face deterioration.
COLE HAAN’S MISSION AND GOALS
The brand’s mission within the next three years is to achieve stability and become the most sought out for brand “for people who are ingenious, resourceful, and want to make a difference” (p. 1). One of the financial objectives that Cole Haan seeks to attain within the next three years is the achievement of significant sustainable growth. Within the past three years, the brand has recorded significant growth. For instance, the spring sales for 2019 were 42% higher than the sales that were recorded at the same period of the year in 2018. The brand, therefore, seeks to ensure that this growth rate remains stable. Cole Haan also seeks to drive deeper market penetration (). This will mainly be done by exploring the online market so as to ensure that clients from any part of the world can enjoy the taste of quality and elegance. Another financial objective that the brand has is to successfully penetrate the women’s FW market (). This is indeed in recognition of the fact that women shop more than men (). Cole Haan has another goal of introducing new product categories (). It also seeks to attain a higher profit margin and return-on-investment (). In this regard, the brand will be working with a gross profit 60%.
THE TARGET MARKET
The target market for the Cole Haan products is agile customers. These are consumers who are aged between 25-45 years (). This is inclusive of individuals who work in offices, who enjoy skate-boarding, biking, hiking, and generally leading active lives. They are individuals who prefer city life as opposed to country life. These agile consumers in this regard are successful, well-educated individuals who could either be single or married (and raising families). The average household income for these individuals ranges from about $70,000 to $150,000 (). Whereas these individuals can be said to have good incomes, they are also price conscious and often seek value for money. To an extent, these individuals are status oriented thus they like to be associated with quality products. Essentially, Cole Haan creates “shoes, bags, and finishing touches for people who are ingenious, resourceful, and want to make a difference” (Cole Haan, 2019, p. 1).
THE MARKETING MIX
A number of marketing strategies will be utilized by Cole Haan in order to ensure that the brand meets the set targets. These marketing strategies include; product strategy, pricing strategy, and distribution strategy.
- Product strategy
Cole Haan offers high quality footwear and accessories for men, women, and kids. It particularly has a focus on the sale of shoes and bags. The product designs of Cole Haan’s brand are very versatile and they are deliberately tilted towards meeting the needs of its target market. The unique shoe design of the product line fronted by the brand (such as the boat shoes that feel like sneakers, shoes that are designed as oxford on the top and sneakers on the bottom, and the ZERØGRAND All-Day Trainer with Stitchlite), for instance, is effective in ensuring that the intended target market get the privilege of acquiring shoes that set them free to achieve the lifestyle that they desire. Essentially, the shoes are suitable for both indoor and outdoor activities. As a buildup on these gains, Cole Haan will in the next three years introduce new designs and product categories in consistency with its ‘fusion’ concept. This will ensure that the consumers do not get bored of the concept. Cole Haan will also design unique bags for kids with the traditional back-pack concept and a fusion of modernity.
- Pricing Strategy
As illustrated above, whereas the individuals within the target market can be said to be at a comfortable place financially speaking, they are still conscious of pricing. Our pricing strategy will, therefore, have competition in mind. Efforts will be placed towards ensuring that the pricing for our products is standardized. There will also be a “10% off” marker on products that are sold online, as well as, those that are sold in particular retail shops in the UK. This strategy will ensure that there are bulk sales. When sales are made in bulk, there is an assurance that the targeted gross profit margin of 60% will be achieved. The pricing strategy will ensure that as many individuals (within the ‘target market’ specifications) as possible across the globe purchase the Cole Haan products. Emphasis will be placed on the fact that individuals can get quality products at a fair price.
- Distribution Strategy
Within the next three years, Cole Haan will expand its distribution to retail shops across the UK. By 2022, Cole Haan seeks to have presence in at least 70% of the cities in the UK. Similarly, in recognition of the fact that there is likely to be an increase in online purchases over the next three years, Cole Haan will be establishing internet kiosks within the most profitable store outlets (). In this regard, the brand will also be advertising through sponsored ads so as to reach out to the target audience and consequently ensure that consumers are fully aware of the option of making their purchases through the internet kiosks.
PLAN FOR Y1
FINANCIAL FORECAST OF THE THREE YEARS
CONCLUSION
References
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Appendix
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