Executive Summary This five-year marketing plan for Tulip Clothing has been created to secure additional funding for growth and to inform employees of the company's current status and direction. Although Tulip was launched in the I-JAKE only three years ago, the firm has experienced greater-than-anticipated demand for its products, and research has shown that the target market of sport-minded consumers and sports retailers would like to buy more casual clothing than Tulip currently offers.
In addition, Tulip plans to explore opportunities for online sales. The marketing environment has been very exceptive to the firm's high-quality goods - casual clothing in trendy colors with logos and slogans that reflect the interests of outdoor enthusiasts around the country. Over the next five year, Tulip can increase its distribution, offer new products, and win new customers. 2. Company Description Tulip Clothing was founded three years ago by entrepreneurs Domain Thomas and Geoff Compton.
Tulip Clothing reflects Damson's and Geoff passion for the outdoors. The company's original cotton T-shirts, caps and denim Jackets bear logos of different sports such as kayaking, mountain climbing, bicycling, skating, surfing, and horseback r camel riding. But every item shows off the company's slogan "Let's Rock! ". Tulip sells clothing for both men and women, in the hottest colors with the coolest names - such as sunrise pink, sunset red, twilight purple, desert rose, cactus green, ocean blue, mountaintop white, and river rock grey (Thomas 2011).
Order custom essay A Five Year Marketing Plan For Tulip Clothing essay with free plagiarism report
Tulip attire is currently carried by small retail stores that specialize in outdoor clothing and gear. Most of these stores are concentrated in ABA Dhabi and malls in the northern Emirates. The high quality, trendy colors, and unique message of the clothing have gained Tulip a allowing among consumers between the ages of 25 and 45. Sales have tripled in the last year alone, and Tulip is currently working to expand its manufacturing capabilities. Tulip is also committed to giving back to the community by contributing to local conservation programs.
Ultimately, the company would like to develop and fund its own environmental programs. This plan will outline how Tulip intends to introduce new products, expand its distribution, enter new markets, and give back to the community. 3. Tulip's Mission and Objectives Tulip's mission is to be the leading producer and marketer of personalized, casual looting for consumers who love the outdoors. Tulip wants to inspire people to get outdoors more often and enjoy family and friends while doing so. In addition, Tulip strives to design programs for preserving the natural environment.
During the next five years, Tulip seeks to achieve the following financial and nonofficial goals: Financial Objectives: Obtain financing to expand manufacturing capabilities, increase distribution, and introduce two new product lines. Increase revenues by at least 50% each year. Donate at least ADD 25,000 a year to conservation organizations. Nonofficial Objectives: Introduce two new product lines-?customized logo clothing and lightweight luggage. Enter new geographic markets in neighboring ICC countries. A Five Year Marketing Plan For Tulip Clothing By instinct retailers.
Develop its own conservation program aimed at promoting environmental awareness in local communities. 4. Core Competencies Tulip seeks to use its core competencies to achieve a sustainable competitive advantage, in which competitors cannot provide the same value to consumers that Tulip does. Already, Tulip has developed core competencies in (1) offering a high- laity, branded product whose image is recognizable among consumers; (2) creating a sense of community among consumers who purchase the products; and (3) developing a reputation among retailers as a reliable manufacturer, delivering the requested number of products on schedule.
The firm intends to build on these competencies through marketing efforts that increase the number of products offered as well as distribution outlets. By forming strong relationships with consumers, retailers, and suppliers of fabric and other goods and services, Tulip believes it can create a sustainable competitive advantage over its rivals. No other looting company can say to its customers with as much conviction "Let's Rock! ". 5. Situation Analysis The marketing environment for Tulip represents overwhelming opportunities. It also contains some challenges that the firm believes it can meet successfully.
A SOOT analysis of the company highlights Tulip's strengths, weaknesses, opportunities, and threats. Drawing the right conclusions from a SOOT analysis is the most important purpose of performing the analysis (Kettle 2009). Strengths: Tulip's dedicated founders understand the target market and product. Tulip has achieved distribution in several markets with quick acceptance. Tulip has very little debts with great potential for growth. Tulip works with a single manufacturer, allowing high quality control levels. Weaknesses: Tulip's founders may lose sight of the potential scope of the business.
A limited number of consumers around AAU are aware of the Tulip brand. The firm has limited cash flow. Tulip relies on a single manufacturer which limits the production capacity if the firm wants to expand. Opportunities: Tulip's loyal customers are likely to buy more products. Gaps exist in the AAU market that can be filled with new products such as customized looting items and luggage. The key challenge in filling these gaps is in the shaping process that allows ideas to move forward; to be processed and refined in a way so that management can "pick the winners" (Floorn & Freshman 2012).
Tulip has a chance to expand across the ICC into new markets. The firm can reach more consumers via a website. Threats: Consumers may tire of the concept and the firm needs to keep it fresh. Larger competitors such as Marks & Spencer or Timberland may establish a similar product line. Clothing sales have generally been flat over the past few years, even though I-JAKE as the highest fashion spending in the developed world (Cambridge 2011). Relationships with retailers may deteriorate if they feel internal competition from the internet site. The SOOT analysis presents a thumbnail sketch of the company's position in the marketplace.
In Just three years, Tulip has built some impressive growing number of brand-loyal customers, and sound financial management place the company in a good position to grow. However, as Tulip considers expansion of its product line and entrance into new markets, the firm will have to guard against marketing myopia (the failure to recognize the scope of its business) and quality ellipses. As the company finalizes plans for new products and expanded Internet sales, its management will also have to guard against competitors who attempt to duplicate to products.
However, building strong relationships with consumers, retailers, and suppliers should help thwart competitors. 6. Competitors in the Outdoor Clothing Market The outdoor retail sales industry sells about ADD 50 million worth of goods in the AJAX annually, ranging from clothing to equipment. The outdoor apparel market has many entries. L. L. Bean, ERE, Timberland, Bass Pro Shops, Caballero's, and Patagonia are mongo the most recognizable companies that offer these products. The outlook for the industry in general and Tulip in particular is positive for several reasons.
First, consumers are participating in and investing in recreational activities that are near their homes. Second, consumers are looking for ways to enjoy their leisure time with friends and family without overspending. Third, consumers are gaining more confidence in the economy and are willing and able to spend more. Tulip's clothing is made of strictly the highest quality cotton, so it may also be worn around town. Finally, Tulip products are offered at moderate prices, making them affordable in multiple quantities. For instance, a Tulip T-shirt sells for ADD 99. 9, compared with a competing high-performance T-shirt that sells for ADD 149. 99. Consumers can easily replace a set of shirts from one season to the next, picking up the newest colors, without having to think about the purchase. Strategically assessing customer behavioral expectations is the focal point to understanding and improving service quality (Barber & Goodman 2011). A survey conducted by Tulip revealed that 67% of espousing consumers prefer to replace their casual and active war more often that other clothing, so they are attracted by the moderate pricing of Tulip products.
In addition, as the trend toward health-conscious activities and concerns about the natural environment continue, consumers increasingly relate to the Tulip philosophy as well as the firm's contributions to socially responsible programs. 7. The Target Market The target market for Tulip products is active consumers between the ages of 25 and 45 - people who like to hike, bicycle, kite surf, indoor ice skate, ride horses or camels, and other such activities. They might not be experts at the sports they engage in, but they enjoy themselves outdoors.
These active consumers represent a demographic group of well-educated and successful individuals; they are single or married and raising families. Household incomes generally range between ADD 200,000 and ADD 600,000 annually. Despite their comfortable incomes, these consumers are price conscious and consistently seek value in their purchases. Regardless of their age (whether they fall at the upper or lower end of the target range), they lead active lifestyles. They are somewhat status oriented but not overly so.
They like to be associated with high-quality products but are not willing to pay a premium price for a certain brand. Current Tulip customers tend to live in ABA Dhabi and the northern Bahrain, Kuwait and Saudi Arabia as well. 8. The Marketing Mix The following discussion outlines some of the details of the proposed marketing mix for Tulip products. A. Product Strategy Tulip currently offers a line of high-quality outdoor apparel items including cotton T- shirts, caps, and denim Jackets. All bear the company logo and slogan, "Let's Rock! ".
The firm has researched the most popular colors for its items and given them Ames that consumers enjoy - sunset red, sunrise pink, cactus green, desert rise, and river rock grey, among others. Over the next five years, Tulip plans to expand the product line to include customized clothing items. Customers may select a logo that represents their sport - say hiking. Then they can add a slogan to match the logo. A cap with a bicyclist might bear the slogan, "Take a Spin. " At the beginning, there would be ten new logos and five new slogans; more would be added later.
Eventually, some slogans and logos would be retired, and new ones introduced. This tragedy will keep the concept fresh and prevent it from becoming diluted with too many variations. The second way in which Tulip plans to expand its product line is to offer items of lightweight luggage-?two sizes of duffel bags, two sizes of tote bags, and a daypack. These items would also come in trendy and basic colors, with a choice of logos and slogans. In addition, every product would bear the Tulip logo. B.
Distribution Strategy Currently, Tulip is marketed through regional and local specialty shops scattered across malls in ABA Dhabi and in the northern Emirates. So far, Tulip has not been strutted through national sporting goods and apparel chains. Climate and season tend to dictate the sales at specialty shops, which sell more T-shirts and caps during warm weather and more denim Jackets during colder months. Over the next three years, Tulip seeks to expand distribution to retail specialty shops throughout the ICC, focusing next on neighboring countries to the AJAX.
The firm has not yet determined whether it would be beneficial to sell through a major national chain such as ERE or Bass Pro Shops, as these outlets could be considered competitors. In addition, Tulip Lana to expand online sales by offering the customized product line via Internet only, thus distinguishing between Internet offerings and specialty ship offerings. Regardless of its expansion plans, Tulip fully intends to monitor and maintain strong relationships with distribution channel members. C.
Promotional Strategy Tulip communicates with consumers and retailers about its products in a variety of ways. Information about Tulip-?the company as well as its products-?is available via the Internet, direct mailings, and in person. The firms' promotional efforts also seek to differentiate its products from those of its competitors. The company relies on personal contact with retailers to establish the products in their stores. This contact, whether in-person or by phone, helps convey the Tulip message, demonstrate the products' unique qualities, and build relationships.
Tulip sales representatives visit each store two or three times a year and offer in-store training on the features of the products for new retailers or for those who want a refresher. As distribution expands, Tulip will adjust to meet greater demand by increasing sales staff to make sure it stores are visited more frequently. Sales promotions and public relations currently sake up the bulk of Tulip's promotional strategy. Tulip staff works with retailers to marketing methods that require little cash and a lot of creativity also lend themselves perfectly to Tulip.
Because Tulip is a small, flexible organization, the firm can easily implement ideas such as distributing free water and discount coupons at outdoor sporting events. During the next year, the company plans to engage in the following marketing efforts: Attend bicycling events and camel races with our Tulip truck to distribute free water, stickers, and discount coupons for Tulip shirts or caps. Hold a Tulip design contest, selecting a winning slogan and logo to be added to the customized line. D.
Pricing Strategy As discussed earlier in this plan, Tulip products are priced with the competition in mind. The firm is not concerned with setting high prices to signal luxury or prestige, nor is it attempting to achieve the goals of offsetting low prices by selling high quantities of products. Instead value pricing is practiced so that customers feel comfortable purchasing new clothing to replace the old, even if it is Just because they like the new colors. The pricing strategy also makes Tulip products good gifts - for airheads, graduations, or "Just because".
The customized clothing will sell for ADD 10 to ADD 20 more than the regular Tulip logo clothing. The luggage will be priced competitively, offering a good value against it competition. 9. Budget, Schedule and Monitoring Though its history is short, Tulip has enjoyed a steady increase in sales since its introduction three years ago. Sales have more than doubled every six months from inception (Thomas 2013). The timeline for expansion of outlets and introduction of the two new product lines is as follows: Year 1: New outlets added: 20 Customized items: 5 slogans / 10 logos
Luggage items: O Year 2: New outlets added: 50 Customized items: 10 slogans / 10 logos Luggage items: 2 (duffel and totes) Year 3: New outlets added: 100 Customized items: 5 slogans / 5 logos Luggage items: 1 (backpack) The implementation of each of these tasks will be monitored closely and evaluated for their performance. Tulip anticipates continuing operations into the foreseeable future, with no plans to exit this market. Instead, as discussed throughout this plan, the firm plans to increase its presence in the market. At present, there are no plans to merge with another company.
Cite this Page
A Five Year Marketing Plan For Tulip Clothing essay. (2018, Nov 07). Retrieved from https://phdessay.com/a-five-year-marketing-plan-for-tulip-clothing-2/
Run a free check or have your essay done for you