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    Ivivva AthleticaFall Quarter 2014

    Professor HartleySection 1

    Danielle Guyette Amy Haberman ac!en"ie Se#la! 

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    I. Introduction

    Ivivva is an athletic $ear com%any that caters to youn& &irls bet$een the a&es of '(12)*hey carry a broa# ran&e of %ro#ucts+ inclu#in& %ants+ to%s+ ,ac!ets+ leotar#s+ s!irts+ an#accessories) *hey offer %ro#ucts at a hi&her %rice %oint than com%etitors+ but they em%hasi"e

    -uality above all) *heir clear -uality stan#ar# #is%lays their commitment to %uttin& -uality at theheart of everythin& they #o+ #o$n to the final #etails) *heir mission statement is as follo$s./reatin& com%onents for %eo%le to live lon&er+ healthier+ fun lives)

    Ivivva %laces a lar&e em%hasis on community en&a&ement) *hey offer com%limentaryyo&a+ fitness+ an# #ance classes in(store for customers) *hey have clubs+ such as the Ivivvaunnin& /lub+ that encoura&e youn& &irls to &et outsi#e an# stay active) Ivivva hi&hly values ahealthy lifestyle+ an# they create clothin& that motivates youn& &irls to %artici%ate in s%orts an#activities) *hey also em%hasi"e fee#bac! from consumers $hen they manufacture ne$ items)*hey $elcome i#eas an# su&&estions for $hat their sho%%ers $ant to see net+ an# ta!e theseinto consi#eration $hen #esi&nin& their clothes)

    *hey create %ro#ucts for a variety of activities+ althou&h they are %rimarily focuse# onyo&a $ear) Ivivva manufactures clothin& for runnin&+ #ancin&+ s!atin&+ &ymnastics+ an# tennis+as $ell) Ivivva o$ns an assortment of tra#emar!s an# %atents on fabrics that they use to %ro#ucetheir &arments) *hey ma!e their items out of hi&h(tech fabrics that ma!e the consumerse%erience comfortable an# functional+ but fashionable at the same time)

    Ivivva currently o%erates an# has full control of all their stores) /ustomers $ho areloo!in& to %urchase Ivivva must either buy #irectly from the stores or can choose to buy the %ro#ucts online) *he %ro#ucts offere#+ as mentione#+ cater to youn& &irls $ho are involve# in avariety of athletics+ but also have o%tions for every #ay 3athleisure $ear) 5verall+ Ivivva focusestoo narro$ly on its eistin& %ro#ucts an# mar!ets+ limitin& its %otential for revenue &ro$th) 6ehave #evelo%e# t$o mar!etin& %lans to tac!le this issue an# ultimately hel% Ivivva e%an# an#maimi"e revenue %otential) In or#er for this to ha%%en $e believe that Ivivva can e%an# theirau#ience to youn& boys+ as $ell as sell their %ro#ucts in fitness facilities) 6e have come u% $itht$o mar!etin& strate&ies7 the first is a mar!et %enetration strate&y to ca%ture youn& boys toe%an# our customer base an# the secon# strate&y is to further #evelo% our %ro#uct line bysellin& bathin& suits to fitness centers to then be sol# to the en# consumer)

    *he re(#esi&n of Ivivvas current 3Perfect 8our Practice ,ac!et to be sol# to youn& boys$ill ho%efully allo$ Ivivva to ca%ture a $hole ne$ se&ment) 6ith a sales %rice of 9:;+ the &oalsof our mar!etin& %lan are to increase sales by = after a si(month %erio# as

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    $ell as e%an#in& #istribution of these boys ,ac!ets to 1> #ifferent stores by December 201> an# by December 201' the ,ac!ets $ill be sol# at every Ivivva location)

    *he #evelo%ment of a ne$ s$imsuit %ro#uct line $ill increase the #iversity of Ivivvas %ro#uct line) Ivivva is &oin& to use a %ro#uct #evelo%ment strate&y that $ill brin& the ne$ items

    into an eistin& mar!et) 6e %lan to have this line carrie# in in eachre&ion of the ?nite# States+ by @anuary of 201') y the en# of 201:+ $e %lan to ta!e this lineinternational an# enter about

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    Ho$ever+ these e%ansion %ro,ects &o far beyon# ,ust athletic a%%arel com%anies)Accor#in& to an article $ritten in loomber& a&a"ine+ athletic a%%arel is &ro$in& t$ice as fastcom%are# to tra#itional $omens a%%arel Eloomber&) Bon&(stan#in& tra#itional a%%arelcom%anies+ such as Ga%+ are #ivin& into the athletic a%%arel mar!et to !ee% u% $ith these tren#s)For instance+ in 200; Ga% ac-uire# active $ear com%any Athleta+ $hich offers $or!out+ surfin&

    an# sno$boar#in& clothes for $omen Eusiness Insi#er) From an entirely #ifferent si#e of themar!et+ ictorias Secret+ $hich %rimarily sells hosiery for $omen+ has a##e# athletic a%%arel toits re%ertoire as $ell)

    /lothin& stores are not the only factors influencin& the &ro$th of the 3athleisure mar!et)*he increase# %o%ularity of a variety of fitness classes is also fuelin& the &ro$th of this mar!et)/rossFit+ Soul /ycle an# Pure arre are ,ust three of the many #ifferent ty%es of fitness o%tionsthat $omen no$ have access to) 6omen are no lon&er confine# to a sin&le ty%e of eercise an#more $omen are fin#in& their niche in fitness) Cot only are these active $omen $earin& athleticclothin& $hile they $or!out+ but they are choosin& athletic a%%arel over tra#itional a%%arel) As %reviously mentione#+ active $ear is $orn for a variety of activities far beyon# the &ym)

    3Athletic a%%arel is not ,ust a reflection of consumers fitness activities) ore than

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    correlation bet$een the #is%osable income an# sales) *herefore+ $e $ere able to conclu#e that#is%osable income is a vali# %re#ictor of Ivivvas sales) y runnin& the re&ression $e $ere ableto come u% $ith a linear e-uation+ $hich $e use# to forecast the sales of Bululemon for the netfive years ESee &ra%h belo$) 6hile these numbers may not be com%letely accurate+ an# #o notaccount for une%ecte# occurrences that coul# cause sales to #ecrease+ they are a &oo#

    re%resentation of $hat sales $oul# be if the com%any continue# to &ro$ at a stea#y rate)

    Deman# for Ivivvas offerin&s is &enerally consistent throu&hout the year+ a%art from the boost in sales that eists #urin& the fourth -uarter of each year) As mentione# above+ Ivivvascustomers are lar&ely unaffecte# by economic u%s an# #o$ns+ as their #is%osable income is hi&henou&h to continue consistent s%en#in& habits re&ar#less of economic #o$nturns) Ho$ever+ li!eany other retail clothin& business+ holi#ay sho%%in& lea#s to a &reat sur&e in sales) As one of thecom%any eecutives state# in the Bululemon 10(Q #ocument+ 35ur business is affecte# by the&eneral seasonal tren#s common to the retail a%%arel in#ustry) 5ur annual net sales are $ei&hte#more heavily to$ar# our fourth fiscal -uarter+ reflectin& our historical stren&th in sales #urin& theholi#ay season+ $hile our o%eratin& e%enses are more e-ually #istribute# throu&hout the year)As a result+ a substantial %ortion of our o%eratin& %rofit is &enerate# in the fourth -uarter of our

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    fiscal year) Deman# is hi&her #urin& holi#ay time+ as a lar&e %ortion of consumers are sho%%in&#urin& this time+ but throu&hout the year consistency is ehibite#)

    Gone are the #ays of ,eans for #ay(to(#ay activities+ as it is a%%arent that yo&a %ants an#3athleisure tren#s are here to stay) *hey are consistently &ainin& %o%ularity+ movin& into

    mar!ets that continue to %ro%el its success) As #is%osable income continually increases+ so $illIvivvas sales+ %rovin& it to be a viable+ hi&h(#eman# business)

    B. Buyer Behavior

    *he line bet$een stylish clothin& an# active $ear is continuin& to blur) Co lon&er areathletic clothes+ %articularly yo&a clothin&+ ,ust $orn for %hysical activity) From the house to thestore+ yo&a clothin& has become a sta%le of $omens fashion) Bi!e any tren#+ the yo&a(fa# hasma#e its $ay #o$n to youn& &irls) *he stu#y of consumer behavior allo$s us to %in%oint %recisely the choices that in#ivi#ual+ househol# an# or&ani"ational buyers ma!e) *he buyin& %rocess is consistent of %roblem reco&nition+ information search+ alternative evaluation+ %urchase

    #ecision an# %ost(%urchase behavior+ all of $hich $e $ill #iscuss in the follo$in& memo) *ofurther e%lain the behavior behin# yo&a clothin& consumers+ $e $ill also #iscuss the variousfactors that influence buyers into ma!in& a #ecision)

    The Buying Process

    ?n#erstan#in& consumer behavior ma!es it easier to un#erstan# $hat #ecisions thein#ivi#ual+ househol# an# or&ani"ational consumers ma!e #urin& the buyin& %rocess) As earliermentione#+ there are > %hases that a consumer $ill &o throu&h $hen ma!in& the #ecision of$hich athletic a%%arel to buy. %roblem reco&nition+ information search+ alternative evaluation+ %urchase #ecision an# %ost(%urchase behavior) (For greater detail and specifics on phases, seecharts below)

    6hen evaluatin& the %roblem reco&nition at the in#ivi#ual+ househol# an# or&ani"ationallevels+ many similarities bet$een these #ifferent buyers $ere foun#) *here are en#less %ossibilities of %roblems that may cause someone to buy athletic a%%arel) Ho$ever+ bran#loyaltyJreco&nition+ socialJstatus nee#s+ chan&in& tren#s to$ar#s athletic clothes+ style+ an#comfort are all !ey reasons $hy %eo%le feel the nee# to start the buyin& %rocess)

    *he net ste% in the buyin& %rocess+ information search+ is almost i#entical for both thein#ivi#ual an# the househol# buyers) oth loo! for information in ma&a"ines+ a#vertisements+social me#ia+ at the store+ online Evarious $ebsites+ revie$s an# o%inion lea#ers) *he main#ifference bein& that the o%inion lea#ers for the in#ivi#uals E!i#s an# the househol# buyers $ill be res%ective to their a&e &rou% an# %eers) Information search for the or&ani"ations $ill mostlyta!e %lace at tra#e sho$s+ in catalo&ues+ an# online $ebsites) De%en#in& on $hat the %roblem$as that starte# the buyin& %rocess+ the amount of search $ill vary)

    After information is &athere# on Ivivvas %ro#ucts an# %otential alternatives+ the buyer$ill com%are an# evaluate many attributes of the alternatives before ma!in& a final #ecision) *hemain criteria for evaluation of athletic a%%arel are. %rice+ color+ function+ si"eJfit+ -uality+ bran#

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    re%utation+ #esi&n+ an# status associate# $ith %ro#uct) valuation of alternative $ill be #iscusse#in &reater #etail later on in this memo)

    5nce the in#ivi#ual an# househol# buyers have ma#e a #ecision they have the o%tion to %urchase in the Ivivva stores+ on their online store+ or to borro$ the %ro#uct from someone) *he

    or&ani"ational buyers have the a##e# o%tions of bein& s%onsore# by the %ro#uct or #istributin&the %ro#uct to their stores an# customers)

    *he last an# final ste% to the buyin& %rocess is $here Ivivva consumers #etermine if they$ere satisfie# or #issatisfie#) ost buyers $ho are satisfie# fin# that they receive# %ositivefee#bac! from others+ foun# the %ro#uct to be lon& lastin& an# #urable+ e%erience# an increasein their self(esteem+ an# felt that their money $as 3$ell s%ent) From an or&ani"ationalstan#%oint+ their e%ectations of the %ro#uct $ere met+ customers $ere ha%%y $ith the %ro#uctan# hi&h sales all leave the buyers feelin& confi#ent in their %urchases) Dissatisfaction often $illoccur if buyers fin# the %ro#uct #oes not fit ri&ht+ buyers reali"e# there $ere better alternatives+the %ro#uct %rice #oes not match the %ro#uct -uality+ an# if %eers en# u% buyin& a #ifferent

     bran#)

     Information Search & Processing

    Ivivvas tar&et mar!et is 3&irls from a&es ' to 12 years ol#7 an a&e ran&e $here bran#s+tren#s+ o%inion lea#ers an# other social factors are very influential to ones self(esteem an# socialstatus) *he %urchase #ecisions ma#e by Ivivvas customers are base# on the in#ivi#uals social( %sycholo&ical nee#s) Girls at a&es '(12 are #es%erately tryin& to fin# their i#entities yet oftenrely on their social environments to hel% them form these i#entities) *eens are E$hether they!no$ it or not focuse# on achievin& four emotional &oals K acce%tance+ belon&in&+ confi#encean# in#ivi#uality an# many feel li!e they accom%lish these &oals by buyin& certain bran#s an#styles of clothin& Eri#&e Strate&y Grou%) Ivivvas tar&et mar!et $ill most li!ely turn toreference &rou%s an# influencers in their social environments $hen ma!in& %urchasin& #ecisions)6hether it is the &irls %arents+ %o%ular %eer &rou%s+ or %eo%le in the me#ia+ many &irls areloo!in& to these reference &rou%s as a $ay to com%are an# evaluate their behaviors an# %urchasin& #ecisions) *he social(%sycholo&ical factors that are influencin& these &irls %urchasin& #ecisions are etremely %resent $hen buyin& a %ro#uct li!e yo&a %ants) 8o&a %antsare a hu&e style tren# ri&ht no$ an# have even le# to the creation of the term 3athleisure+ theyreflect fitness+ &oo# bo#y ima&es+ an# healthy lifestyles+ an# the %o$er of the bran# is verystron& in the athletic a%%arel in#ustry) From a mar!etin& stan#%oint+ Ivivva nee#s to un#erstan#the attitu#es of their consumers+ an# to ta!e into account the main emotional &oals of teena&ersan# their buyin& motives in or#er to enhance their bran# %ositionin& Eri#&e Strate&y Grou%)

    6ith the sales of ,eans #ecreasin& by '= in the last year+ an# the sales of active $earincreasin& by :=+ there is no$ an abun#ance of %ro#uct o%tions in the 3athleisure in#ustryE/S Ce$s) Co$+ more than ever+ the im%ortance that the consumer %laces on the informationsearch ste% in the buyin& %rocess is hi&her than ever) Ivivvas in#ivi#ual an# househol# buyersare most li!ely to &ather information online an# in the stores in a##ition to %rint a#vertisements+an# o%inion lea#ersJ$or# of mouth) 6ith the #e%th of information no$ available at the ti%s ofyour fin&ers than!s to the internet+ consumers are s%en#in& more time online #oin& research

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     %rior to ma!in& a #ecision) any buyers are turnin& to the internet for the follo$in& reasons tohel% them $ith their %urchasin& #ecisions. %rice trans%arency+ savin& time+ better matchin& ofnee#s+ %eo%le matchin& an# lon&(tail offerin&s Ec!insey L /om%any) As of ri&ht no$+ Ivivvahas a very fe$ stores o%en for %eo%le to sho% at+ so havin& their %otential buyers mainly usin&the internet to search for information $ill ho%efully mean that their %urchase choice $ill also be

    online an# $ith Ivivva)

     ttribute Selection

    In a $orl# of abun#ance+ consumers are &iven more %o$er over retailers to select a %ro#uct of their choice) 6ith multi%le bran#s+ colors+ styles an# %rice %oints for each %ro#uct onthe mar!et+ consumers must i#entify %articular attributes that $ill hel% #istin&uish bet$een %ro#ucts) In the $omens active $ear mar!et+ there are four attributes that are most commonlyuse# to evaluate #ifferent bran#s ( styleJ#esi&n+ si"eJfit+ bran# re%utation an# -uality) *hese fourcharacteristics are commonly use# by the in#ivi#ual buyer Eyoun& chil#+ the househol# buyerE%arent an# chil# an# the or&ani"ation buyer) For each attribute #iscusse#+ the bran#s an#

     %ro#uct eam%les $ill focus %rimarily on yo&a(theme# clothin&+ as it relates to the %ro,ectresearch at han#)

    *he first+ styleJ#esi&n+ is one of the most im%ortant) From len&th to sha%e to fabric+ eachan# every bran# has #esi&ne# their active $ear in a uni-ue $ay) 8o&a %ants are the %erfecteam%le) ran#s li!e Ci!e an# ?n#er Armour use an entirely #ifferent fabric than com%aniesli!e Bululemon an# Soybu Eusiness Insi#er) ?n#er Armour is %rimarily !no$n for itsmoisture($ic!in& fabric+ $hile Bululemon ta!e a comfort an# stretch a%%roach) A##itionally+each %air of yo&a %ants loo!s #ifferent) 6hen tal!in& about the style an# #esi&n of the %ro#uct+$e are &oin& beyon# ,ust the colors an# %atterns an# actually eaminin& the $ay the %ants loo!)ach bran# #esi&ns their yo&a &ear in a #ifferent $ay an# some even have multi%le styles $ithinthe bran#) Strai&ht(fit+ flare(bottoms+ tie(u%s ( the list of styles &oes on an# on) De%en#in& on theconsumer+ a %articular style $ill be more a%%ealin& than others) A secon# factor is the si"e an# fitof the %ants) efore buyin& a tan! to% or a %air of yo&a %ants+ most consumers $ill try the %ro#uct on) 6hyM A si"e ' in one bran#Jstyle mi&ht fit li!e the si"e 4 of another bran#Jstyle) Foream%le+ Ci!e is !no$n for havin& a looser(fit to their clothes+ inclu#in& their yo&a an# runnin& %ants) 5ther bran#s+ li!e Bululemon+ ty%ically have 3form(to(bo#y fits for their clothin&Eusiness Insi#er) /ertain consumers %refer one fit over another an# can fin# a bran# or stylethat fits their bo#y best) ase# on that attribute+ certain choices may be eliminate# if the clothin&#oes not fit %ro%erly) *he thir# characteristic use# to #istin&uish active $ear is the bran#re%utation) Bi!e %eo%le+ bran#s have both %ositive an# ne&ative re%utations $ithin theirin#ustries) *a!e Ci!e for eam%le) Several years a&o+ Ci!e $as fi&htin& a very #ifficult bran#re%utation battle) After bein& sin&le#(out in the in#ustry for mal(%ro#uction %ractices+ Ci!e ha#to #o #ama&e control Eeturnonre%utation) 5ther bran#s are !no$n for usin& sustainablematerials or bein& involve# in the community) Soybu is one of those bran#s) 3Its clothes arema#e from soy+ or&anic cotton+ bamboo an# other recycle# materials Eusiness Insi#er) ran#re%utation &oes beyon# ho$ the mar!et %erceives an in#ivi#ual bran#) /onsumers also consi#erho$ other in#ivi#uals evaluate their clothin& selection+ as a reflection of the bran#s re%utation)uch li!e o$nin& Porsche is %erceive# #ifferently than o$nin& a *oyota7 consumers #evelo%im%ressions of fello$ consumers base# on the bran#s they are $earin&) If a bran#s re%utation is

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    associate# $ith social status+ certain consumers $ill use that as a #rivin& factor in their %urchase#ecision) *he final attribute that many active $ear consumers consi#er is -uality) ecause active$ear an# yo&a clothin& are becomin& multi(functional+ the clothin& is also ,u#&e# base# on its-uality an# lon&evity) 6hen -uality is %erceive# as %oor+ there are ne&ative im%lications for thecom%any) Bululemon e%erience# an inci#ent li!e this in 201

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    • As! other !i#s

    • *al! to %arents

    • A#vertisements

    • Go to store to bro$se

    Alternative valuation • StyleJ#esi&n

    • /olor

    • Function

    • Si"eJfit

    • ran# re%utation

    • Status associate# $J %ro#uct

    Purchase Decision • 5nline

    • In(store

    • orro$

    Post(%urchase ehavior Satisfaction.

    Fits $ell• Basts lon&

    • Positive

    fee#bac! from %eers

    • Social status

    &aine#

    Dissonance.

    S%ent toomuch money

    • Stretche# out

    -uic!ly

    • Different color 

    than e%ecte#

    • Frien# bou&ht

    #ifferent bran#

    HOUSEHOLDS: EParent O /hil#

    Sta&e of uyin& Decision. Descri%tion for.Problem eco&nition • Gift for chil#

    • /hil# as!s for it

    • /hil# si&ns u% for an athleticJclub event

    • /hil# is &ro$in& fast

    • 5ther %arents are buyin& it

    • /hil# nee#s ne$ clothes

    • /hil# is active

    • 5ther clothin& is uncomfortable

    • 6ant chil# to loo! &oo#

    • ran# loyalty to Bululemon

    Information Search   • 5nline Evarious $ebsites

    • /atalo&ues

    • *al! to other %arents

    • 5%inion lea#ers

    • Go to store to bro$se

    • *al! to em%loyees

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    • evie$s

    • A#vertisements

    • Social me#ia

    Alternative valuation • Price

    • StyleJ#esi&n

    • /olor

    • Function

    • Si"eJfit

    • Quality

    • ran# re%utation

    • Status associate# $J %ro#uct

    • /hil#s o%inion

    Purchase Decision • 5nline

    • In(store

    orro$Post(%urchase ehavior Satisfaction.

    • Fits chil# $ell

    • Goo# -uality N 

    3chil# %roof

    • Positive

    fee#bac! fromother %arents

    • 5verall family

    social status&aine#

    • /hil# is %lease# $J %ro#uct

    • oney $ell

    s%ent

    Dissonance.

    • Pro#uct

    over%rice#

    • Stretche# out

    -uic!ly

    • Different color 

    than e%ecte#

    • Different

     bran# has better revie$s

    • Quality is %oor  N ruine#-uic!ly

    O!ANI"A#IONS: /orePo$er 8o&a+ Pure arre+ Soul /ycle

    Sta&e of uyin& Decision. Descri%tion for.

    Problem eco&nition •  Cee# a##itional forms of revenue

    /ustomers are as!in& for it• 6ant to brin& more customers into

    store

    • *ryin& to buil# stu#io store

    • /onnection to bran# $ith &oo#

    re%utation

    Information Search   • Similar or&ani"ations

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    • /atalo&ues

    • 5nline Evarious $ebsites

    • /ustomer fee#bac!

    Alternative valuation • PriceJ%ac!a&e #eals

    • StyleJ#esi&n

    • /olor

    • Function

    • Si"eJfit

    • QualityJlon&evity of %ro#uct

    • ran# re%utation

    • Status associate# $J %ro#uct

    Purchase Decision • 5nline

    • In(store

    • orro$

    S%onsor• Distributors

    Post(%urchase ehavior Satisfaction.

    • Fit a variety of 

    customers

    • Goo# -uality N 

    lon&evity

    • Positive

    fee#bac! fromcustomers

    • Hel% to

    achieve initial&oal

    Dissonance.

    • 5ut of

    com%any bu#&et

    • Dis%lease#

    $ith %ro#uctor#er

    • Different

    colors than

    e%ecte#• Poor customer

    fee#bac!

     Influences on !onsumer !hoice"

    Several factors influence the $ay consumers move to$ar# a choice $hen %urchasin&yo&a clothin&) Income %lays a lar&e role in the %urchase #ecision %rocess because yo&a %ants can be foun# at nearly any %rice %oint) As mentione# %reviously+ Bululemon customers have hi&h#is%osable incomes allo$in& them to affor# the hi&h %rice %oint offere# at Ivivva) Ho$ever+ each bran# has its o$n %rice %oint that a%%eals to nearly any familys income) *hese ran&e from as

    lo$ as 91>)00 for a %air of /ham%ion bran# yo&a %ants at *ar&et to 92)00 for a %air ofBululemons styles) *he yo&a clothin& tren# is s!yroc!etin&+ so nearly all athletic bran#s an#stores have a line of active $ear clothin&+ allo$in& consumers lar&e %urchasin& %o$er in thismar!et) *here are offerin&s an# nearly every %rice %oint+ an# Ivivva caters to those $ho areunaffecte# by economic u%s an# #o$ns)

    As $ith most clothin&+ social influences %lay a lar&e role in the %urchase #ecision) 8o&aculture %romotes a healthy lifestyle ma#e u% by eercisin& often an# eatin& healthy) *his ty%e of

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    lifestyle &oes han# in han# $ith a lar&e #is%osable income+ as yo&a classes avera&e about 91>0for a series) Bululemons clothin& reflects this $ith their small si"es an# bo#y hu&&in& styles)*he bran# reco&nition that Bululemon has built an# their eye(catchin& lo&o on their clothin&screams 3I have enou&h money to s%en# on a 9100 %air of yo&a %ants) *he status associate#$ith Ivivvas clothin& allo$ %arents to outfit their !i#s in hi&h(en# clothin& an# sho$ others that

    it is somethin& that they can affor#+ rather than turnin& to 5l# Cavy or *ar&et for similar styles)6ith a hi&h %rice comes hi&h -uality+ an# Bululemon has been %raise# for its hi&h -ualitymaterials an# the #urability of their clothin&) Parents $ill be more $illin& to %ay a hi&h %rice!no$in& that they are not %urchasin& clothin& for their chil#ren that $ill be ri%%e# or lose theirfit after a fe$ $ears) Parents #o $ant to !ee% their !i#s loo!in& $ell #resse#+ an# Ivivvas statussymbol an# -uality materials cater to this)

    Althou&h it is a touchy sub,ect for most+ $ei&ht an# bo#y ty%e %lay a lar&e role in theyo&a clothin& %urchase #ecision) Bululemon has been hi&hly critici"e# for their lac! ofaccommo#ation for %lus(si"e $omen) *heir si"es sto% at a si"e 12+ but $hen the avera&e clothin&si"e for $omen in America is a si"e 14+ the ma,ority of consumers cannot choose Bululemon an#

    Ivivva for their yo&a nee#s E?SA *ourist) ven $hen bro$sin& aroun# on Bululemons $ebsite+$hen filterin& by si"e an# choosin& a si"e 12+ the styles that came u% $ere etremely limite#)ery fe$ of their styles even &o u% to their maimum si"e+ an# most sto% at aroun# a si"e ;EBululemon) For $omen an# chil#ren $ho have a %lus(si"e bo#y sha%e+ Bululemon an# Ivivvacannot accommo#ate them) Some of Ivivvas styles sto% at si"e 12+ #es%ite the fact that the si"esof &irls a&es '(12 EIvivvas tar&et mar!et ty%ically &o u% to a si"e 1;) Ho$ever+ t$o of Ga%s bran#s+ Athleta an# 5l# Cavy+ #o cater to this mar!et+ offerin& eten#e# si"es for all bo#y ty%es) Cor#stroms bran# ella ma!es yo&a %ants for $omen u% to a si"e 24 an# chil#ren u% to si"e 1'+steerin& $omen an# chil#ren in nee# of a si"e lar&er than 12 to choose other yo&a bran#s thanBululemon an# its subsi#iaries EHuffin&ton Post)

    e#ia has ha# a ne&ative effect on Bululemons bran# re%utation+ as their co(foun#er/hi% 6ilson has release# hurtful statements re&ar#in& the reasonin& behin# Bululemons lac! ofclothin& for %lus si"e $omen) He state#+ 3Quite fran!ly+ some $omens bo#ies ,ust #ont $or!for the %ants) Its really about the rubbin& throu&h the thi&hs+ ho$ much %ressure is there over a %erio# of time) Bululemon &ot a lot of heat from consumers nation$i#e re&ar#in& 6ilsons fatshamin& $or#s) *his has resulte# in consumers choosin& alternative com%anies+ s%ecificallyAthleta an# ella for their yo&a clothin& nee#s E*ime) any $omen have chosen not to su%%ortBululemon as a result+ $hich has &reatly affecte# the %urchase #ecisions of consumers $hen itcomes to yo&a clothin&)

     Co matter $hat the %ro#uct+ consumers $ill &o throu&h a similar buyin& %rocess beforeultimately ma!in& their %urchase #ecision) *a!in& the time to i#entify the ste%s consumers ta!ean# the factors that influence choices $ill &ive a business the !ey to un#erstan#in& the behaviorof their s%ecific consumers) *his un#erstan#in& $ill im%rove sales+ mar!etin& outreach an#ultimately bran# re%utation)

    $. Se%mentation

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    6hen #evelo%in& a mar!etin& %lan+ the first t$o %ieces that must be eamine# are#eman# for the %ro#uct an# consumer behavior of the buyers of that %ro#uct) *he thir# %iece isse&mentation) Se&mentation is use# as a $ay to #ifferentiate bet$een %otential consumers interms of their buyin& behaviors) 5ften+ mar!eters ma!e the mista!e of treatin& all consumerse-ually+ $hen in reality+ each se&ment has a #ifferent mar!etin& nee#) y en&a&in& in

    se&mentation+ consumers are a&&re&ate# into se&ments $ith buyers $ho have similarcharacteristics an# each se&ment is treate# #ifferently) If enou&h time an# consi#eration are&iven to the se&mentation %rocess+ com%anies can achieve im%rove# allocation of mar!etin&resources+ better i#entification of mar!etin& o%%ortunities+ %ro%er %ositionin& of %ro#ucts relativeto com%etition+ an# even ne$ %ro#uct #evelo%ment) 

    Ivivva has been eamine# on the first t$o %reliminary levels N #eman# an# consumer behavior) In or#er to continue the %rocess an# #evelo% a com%lete mar!etin& %lan+ the mar!etmust be se&mente#) arious se&ments $ill be #etermine# on the in#ivi#ual+ househol# an#or&ani"ation level) Due to the com%leity of some of the se&ments+ the Ivivva &rou% has #eci#e#to i#entify multi%ly basis variables by brea!in& the %rimary se&ments into subsets !no$n as

    nestin&)

     Indi#idual Segments"

    *he first se&ments to be i#entifie# $ere on the in#ivi#ual level) As state# in the consumer  behavior memo+ #ue to the style an# si"es of Ivivvas clothin&+ the in#ivi#ual consumer is youn&&irls a&es '(12) Ho$ever+ s%ecific variables of the most %rominent in#ivi#ual consumers must bei#entifie#) *he variable use# to cate&ori"e the in#ivi#ual consumers $as state of min#+ mores%ecifically+ lifestyle) Active vs) non(active $ere the first cate&ories) mbe##e# $ithin thosecate&ories $ere four a##itional subsets relatin& to s%ecific s%orts or activities) *hree subsets $erecreate# to further cate&ori"e the active in#ivi#ual an# one subset $as create# for the non(activein#ivi#ual) Active youn& &irls $ere further #ivi#e# by %artici%ation in a %articular ty%e of s%ort N  %erformance s%orts+ out#oor s%orts an# in#oor s%orts) Performance s%orts inclu#e# #ance an#&ymnastics+ out#oor s%orts inclu#e# soccer+ softball an# lacrosse+ an# in#oor s%orts inclu#e# bas!etball+ volleyball an# s$immin&) *here $ere -uite notable #ifferences amon& the fourse&ments in terms of %roblem reco&nition) For eam%le+ &irls involve# in %erformance s%orts aretri&&ere# by the nee# to fin# form(fittin& clothin& that is stylish+ $hile out#oor an# in#oor s%orts %layers are motivate# by the nee# to re%lace ol# or $orn(out clothin&) Con(active &irls reco&ni"ea %roblem aroun# the #esire to be stylish an# fit(in amon& the tren#y %o%ulation) *he net ste% inthe buyin& %rocess+ information search+ $as not as varie# amon& the se&ments) ach of theactive se&ments searches for information from the same three outlets N teammates+ social me#iaan# %hysically &oin& to the store) Con(active &irls also use social me#ia an# the o%inion ofothers+ but they #o not travel to the store) Instea#+ they ten# to com%lete the search online) 6hileinformation search may have been relatively similar for each &rou%+ the attributes that areevaluate# bet$een alternative choices $ere very #ifferent base# on the se&ment) For eam%le+&irls $ho %lay out#oor s%orts evaluate the alternatives %rimarily on functionality+ -uality an#then lastly the fit of the clothin&) Girls $ho %lay in#oor s%orts also evaluate the functionality an#fit of the clothin&+ but they loo! at the style an# #esi&n of each o%tion) @ust li!e volleyball %layers an# s$immers+ #ancers an# &ymnasts loo! at the style an# #esi&n of their o%tions as$ell) Ho$ever+ they #istin&uish bet$een alternatives %rimarily on the si"e an# fit) ?nli!e the

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    active in#ivi#uals+ non(active &irls are not focuse# on functionality+ style or #esi&n+ but rather$ith the bran# re%utation an# the status associate# $ith %urchasin& a %articular %ro#uct) *he netste% in the buyin& %rocess that $as eamine# $as the %urchase #ecision) ecause there are onlythree me#iums throu&h $hich clothin& is ty%ically %urchase#+ each se&ment use# a combinationof those variables) Dancers an# &ymnasts ten# to ma!e their %urchase #ecision in(store after

    tryin& on the %ro#uct+ $hile &irls %layin& in#oor an# out#oor s%orts ten# to ma!e their final#ecision online) Con(active &irls use in(store %urchases as a last resort an# ty%ically borro$clothin& first before then buyin& online) *he last ste% in the buyin& %rocess is %ost(%urchase behavior) *he feels associate# %ost(%urchase are &enerally relate# to the attributes evaluate# bet$een alternatives an# the me#ium throu&h $hich the %urchase #ecision $as ma#e) Foream%le+ non(active &irls are satisfie# $ith a %urchase if they feel a certain level of social statushas been obtaine# an# %ositive fee#bac! is receive# from their %eers) Dissatisfaction ho$ever+$oul# result from the rise of a ne$ an# #ifferent tren#+ as $ell as ne&ative fee#bac! fromfrien#s) Girls involve# in %erformance an# in#oor s%orts e%erience satisfaction %ost(%urchase ifthe %ro#uct fits $ell+ an# are #issatisfie# if the %ro#uct stretches out -uic!ly) Girls $ho %layout#oor s%orts+ such as soccer %layers an# lacrosse %layers are &enerally satisfie# if the %ro#uct

    lasts lon& an# are #issatisfie# if the %ro#uct is not as #urable as $as e%ecte#) After i#entifyin& the buyin& %rocess utili"e# by each se&ment+ it is then im%ortant to

    eamine the %rimary #ifferences that #efine the four se&ments) *he most evi#ent #ifferences in buyin& behavior can be seen bet$een the &eneral classification of active or non(active) Con(active &irls are focuse# on social status+ bran# re%utation an# %eer fee#bac! on a clothin& %urchase) *hese &irls also ten# to follo$ the most %o%ular tren#s) Due to the increase in themulti(functional 3athleisure mar!et+ non(athletic &irls are a viable se&ment for Ivivva toconsi#er) 6hile the consumer behavior of active in#ivi#uals contrasts %rimarily $ith non(activein#ivi#uals+ there are subtle #ifferences in the buyin& %rocess amon& active in#ivi#uals as $ell)5ut#oor(s%ort %layers+ for eam%le+ have a nee# to re%lace ol# clothin& an# loo! for clothes thatfulfill a certain function an# have a hi&h -uality) 5n the other han#+ &irls $ho %artici%ate inin#oor s%orts+ such as bas!etball+ volleyball or s$immin&+ a%%roach the buyin& %rocess $ith anee# to re%lace ol# an# $orn clothin&+ an# evaluate the alternatives an# the %urchase base# on$hether or not the clothin& fits an# if it has a suitable #esi&n) *his a%%roach is similar to that ofthe #ancer an# &ymnast) *hese &irls see! form(fittin& clothin& an# evaluate the %ro#ucts base#on the si"e+ fit an# style) After analy"in& the motivation an# &oal behin# each in#ivi#ualse&ment+ com%anies can initiate s%ecific mar!etin& tactics an# treat each se&ment in#ivi#ually) In#oin& so+ mar!eters are able to mar!et a %ro#uct more effectively an# more efficiently)

    Given Ivivvas %ro#uct ran&e+ $e reco&ni"e that the %rimary focus $ill be on activechil#ren+ %articularly those involve# in %erformance s%orts) *hat bein& sai#+ it is al$ays crucialto i#entify other %otential se&ments) *his same %rocess $ill no$ be com%lete# for the househol#consumer)

     INDIVIDUALS:

     Basis $ariable" Bifestyle N Active L Con(Active $J neste# sub(lifestyles

    Active C

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    Se&ment 1 NPerformance s%ortsEDanceJ&ymnastics

    Se&ment 2 N 5ut#oors%orts ESoccer+ Softball

    Se&ment < N In#oors%orts Eas!etball+olleyball+ S$immin&

    Se&menathletic

    Problemeco&nition

    1) Cee# form(fittin&clothin&

    2) Desire to bestylish

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    teammates

     %ousehold Segments"

    5n the househol# level+ four #istinct se&ments have been i#entifie# to further focus our

    se&mentation %rocess) *hey $ere constructe# from the basis variable of the income of thehousehol#+ $ith a subset variable of bein& a househol# $ith or $ithout chil#ren) As a result+these four se&ments inclu#e E1 hi&h(income househol#s $ith chil#ren+ E2 hi&h(incomehousehol#s $ithout chil#ren+ E

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    Alternative evaluation is %retty similar amon& se&ments $ith ,ust a fe$ variations) Hi&h(income househol#s $ith chil#ren $ill be less li!ely to %lace hi&h value on %rice+ unli!e the otherthree se&ments that are either on a bu#&et constraint or are buyin& a &ift) Hi&h(incomehousehol#s $ith chil#ren $ill be most concerne# $ith the loo!s an# status the %ro#uct brin&s+

    $hile hi&h(income an# mi##le(income househol#s $ithout chil#ren $ill %lace em%hasis on %ricean# the styleJ#esi&n as%ects+ since it $ill most li!ely be a &ift) Price $ill %lace the &reatest$ei&ht on mi##le(income househol# #ecisions+ follo$e# by function an# -uality in or#er for thefamily to feel they are ma!in& a smart buyin& #ecision) *o buy the %ro#uct+ buyers $ill either &oto the %hysical bric! an# mortar Ivivva location to %ic! out their clothin& items+ or use the onlinestore for convenience) *he %urchase #ecision is %retty stan#ar# across all se&ments+ as $hen buyin& clothin& from a retail location+ these are the main $ays to %hysically ma!e a %urchase)orro$in& $ill come into %lay for each se&ment+ but $ill be the least im%ortant for hi&h(incomehousehol#s that #o not have a %roblem %urchasin& clothes at this %rice %oint) *heir chil#ren may+ho$ever+ on occasion borro$ Ivivva %ro#ucts from a frien#) i##le(income househol#s $ithchil#ren $ill most li!ely be more %rone to borro$in&+ $hile mi##le(income househol#s $ithout

    chil#ren $ill be less focuse# on borro$in& since it is %robably a &ift item for a relative or frien#)

    Satisfaction an# #issatisfaction %ost(%urchase behavior for all se&ments $ill be focuse#on $hether or not the chil# is ha%%y an# it fits the chil# $ell) 6hether it be a %urchase for a chil#or a &ift+ each se&ment $ill $ant the actual %erson $earin& the clothin& Emost li!ely the chil# to be satisfie#) All se&ments besi#es hi&h(income families $ith chil#ren $ill %lace &reat satisfactionem%hasis on $hether or not they feel it $as money $ell s%ent+ $hile hi&h(income families $ithchil#ren $ill most li!ely be concerne# $ith ho$ it a##s to the overall ima&e of the family)i##le(income families $ill fin# satisfaction from feelin& that they bou&ht a hi&h(-ualityclothin& item that $as $orth the money+ an# that $ill maintain this hi&h -uality for years tocome) As $ith most clothin& %urchases+ #issatisfaction $ill result from the clothin& bein& seen aslo$ -uality+ or has %oor #esi&nJstyle elements) Post(%urchase behavior is relatively similar acrossse&ments)

    After i#entifyin& the buyin& %rocess utili"e# by each se&ment+ it is then im%ortant toeamine the %rimary #ifferences that #efine the four se&ments) *he main #ifference amon& these&ments is the %riority they %lace on -uality versus styleJ#esi&n $hen ma!in& a chil#rensclothin& %urchase) Hi&h(income househol#s are less li!ely to be concerne# $ith the -ualityas%ect an# more concerne# $ith ho$ the item loo!s+ focusin& on the style an# #esi&n %ro%ertiesof the item) i##le(income househol#s+ ho$ever+ tailor their buyin& %rocess aroun# the %ricean# -uality of the %ro#uct) *hey are more li!ely to em%hasi"e the #urability of the clothin& item+as they $ill not be ma!in& routine %urchases of athletic $ear for their chil#ren) *hey are mostconcerne# $ith fin#in& clothin& that $ill stretch to fit chil#ren for years to come) *he other %rimary #ifference bet$een se&ments can be seen in the %roblem reco&nition sta&e) Families$ith chil#ren have very #ifferent nee#s than families $ithout chil#ren) Househol#s $ith chil#renhave a #irect nee# for the %ro#uct resultin& from a chil# as!in& for the %ro#uct or nee#in& the %ro#uct as a result of a recent s%orts en#eavor) Househol#s $ithout chil#ren are focusin& on the&ift as%ect of the %urchase or toy $ith the i#ea of buyin& the clothin& item for themselves Ethea#ult rather than a chil#) Given Ivivvas %ro#uct ran&e+ $e reco&ni"e that the %rimary focus $ill

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     be on hi&h(income househol#s $ith chil#ren because the %ro#uct offerin&s are catere# to families$ho are $illin& to %ay hi&h %rices for their chil#rens athletic $ear)

     HOUSEHOLDS:

     Basis $ariable" Bevel of Income of Househol#7 subset. $ L $Jo chil#ren

    Hi&h Income Househol#s i##le Income HousehSe&ment 1 N 6ith/hil#ren

    Se&ment 2 N6ithout /hil#ren

    Se&ment < N 6ith/hil#ren

    Se&men/hil#ren

    Problemeco&nition 1. Brand loyalty to

    Lululemon2. Child asks for it3. Child signs up foran athleticteam/event

    1) Gift for a familymemberJa frien#schil#2) *a!in& a familymemberJa frien#schil# sho%%in&

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    Descri%torariables

    6ealthy family $ith oneor multi%le chil#ren livin&in a hi&h(incomesuburban nei&hborhoo#)ost li!ely to be

    unaffecte# by economicu%s an# #o$ns $ith %arents $ho are fre-uentsho%%ers at Bululemon)

    6ealthy househol#$ithout chil#renlivin& in an urbannei&hborhoo#) Haverelatives or close

    frien#s $ithchil#ren) ost li!elyto be unaffecte# byeconomic u%s an##o$ns) Fre-uentsho%%ers atBululemon)

    Financially stablehousehol# that is stilllimite# by some financialconstraints) Have chil#renin the house an# live in a

    suburban area) Bess li!elyto ma!e fre-uent s%lur&e %urchases an# loo! to buy-uality clothin& for theirchil#ren that $ill last formany years to come)

    Financiahousehochil#renlimite# financia

    Bivin& isettin& arelativesfrien#s $Focuse#financia %urchasfeelin& os%ent) B#urabiliclothin&

    rgani'ation Segments"

    *he last se&ments to be i#entifie# $ere on the or&ani"ational level) *he variable use# tocate&ori"e the or&ani"ational consumers $as the ty%e of or&ani"ation+ s%ecifically athleticstu#ios that sell athletic clothin&) *he three se&ments that $e creatin& usin& this variable $ereyo&a stu#io E/ore Po$er+ other ty%e of fitness stu#io EPure arre N allet ins%ire# fitness+ an#lastly+ cyclin& stu#ios ESoul/ycle) et$een these three se&ments there $ere notable #ifferences

     bet$een all ste%s of the buyin& %rocess meanin& that each of these se&ments is &reat for %otentialtar&etin&)

    Amon& these three se&ments Eyo&a+ arre+ L cyclin& the %roblem reco&nition factors$ere -uite #ifferent) For eam%le+ the number one %roblem reco&nition $as #ifferent for each ofthe se&ments7 8o&a stu#ios li!e /ore Po$er are more li!ely to focus on buil#in& their stu#iostore $ith ne$ bran# Ecurrently have lar&e sho%s at the stu#io sellin& > or so bran#s of clothin&+arre stu#ios are most li!ely loo!in& for athletic a%%arel ins%ire# by #ance because it is a balletins%ire# eercise+ an# because the style of yo&a clothes #ont match 100= to that of cyclin&clothes+ cyclin& stores are most li!ely &oin& to thin! about buyin& a yo&a base# bran# ifcustomers are as!in& about it) *he net ste% in the buyin& %rocess+ information search+ $as also

    varie# amon& se&ments) 8o&a stu#ios main source of information search $oul# be other stu#ios7their com%etitors) Its im%ortant that these $ell(!no$n yo&a stu#ios carry the same bran#s oftheir com%etitors an# if their com%etitors arent carryin& certain bran#s+ it may be a $ay to#ifferentiate) arre stu#ios are %robably &oin& to loo! an# &et information base# on com%anycatalo&ues that are sent to their store) /yclin& stu#ios are most li!ely &oin& to loo! online forinformation because they are such a niche mar!et $here yo&a clothes may not necessarily be %referre# but+ $ill $or! an# are a &oo# alternative to bi!e s%ecific clothes) *he attributes that areevaluate# by each or&ani"ation $ere also #ifferent) 8o&a stu#ios hol# %rice+ bran# re%utation+

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    an# -uality very hi&hly) Price is im%ortant because yo&a is not the most e%ensive ty%e of fitnessclass Ecom%are# to arre+ an# soul cyclin& therefore there is a $i#er ran&e of consumers that$oul# sho% at their stores base# on economic status) *hey #ont $ant a %ro#uct that is too %ricyfor their consumers) *he arre stu#io se&ment %laces hi&h im%ortance on the style+ function an#-uality of the athletic a%%arel) Style is the most im%ortant because #ance ins%ire# fitness often

    means bein& e%ressive+ as #oes fashion an# style) *he cyclin& stu#ios ran! function+ si"eJfit+an# -uality to be their to% attributes in athletic a%%arel) Function an# si"eJfit are very im%ortant because li!e mention earlier+ yo&a %ants are not ma#e s%ecifically for a bi!er so+ as lon& as theclothes fit $ell an# function similarly to cyclin& clothes+ the %ro#ucts $oul# be $orthy) Cetcomes %urchase #ecision+ $here the se&ments #eci#e on hat %ro#uct to buy an# $here) 8o&astu#ios li!e /ore Po$er are most li!ely to ma!e %urchase throu&h a sales re%resentative) /ore %o$er has a %retty lar&e stu#io store $ith an# etensive %ro#uctJbran# ran&e) ecause they areestablishe# stores most li!ely re%s are sent to the stu#ios $here the %ro#uct lines are sho$n an#then later the buyer $ill contact the re% $ith the #ecision) arre stu#ios #ont have establishe#stores so they have to $or! a little har#er to &et the %ro#ucts in their han#s) ost li!ely thesefitness stu#ios $ill ho%e to be s%onsore# by the bran# Esay BululemonJIvivva but if not+ this

    se&ment $ill use catalo&ues to %urchase E$here they loo!e# for information) Bastly+ the cyclin&stu#ios are most li!ely &oin& to %urchase online because they have little connection $ith yo&afitnessJmar!etin& so they resort to %urchasin& online) *he last an# final ste% in the buyin& %rocess is $here these or&ani"ational se&ments evaluate their #ecisions7 $ere they satisfie# or#issatisfie#M ainly the satisfaction level of each se&ment $ill be relate# if the %roblemreco&ni"e# $as solve#+ an# to $hether or not the #esire# attributes $ere met) For yo&a+satisfaction can be foun# if the %urchase# %ro#uct increase# sales an# hel%e# the overall business because the main %roblem $as buil#in& a stu#io as a means of more income) Dissatisfaction$oul# occur if sales #i#nt increase+ or if customers $ere not satisfie# $ith the %urchase# %ro#ucts) For the arre stu#io+ satisfaction $oul# be met if colors+ #esi&n+ an# style matche#e%ectations because the main %roblem $as obtainin& more #ance ins%ire# clothin&)Dissatisfaction $oul# mostly result from unmet e%ectations of colorJ#esi&n an# if theor&ani"ation #i#nt thin! they or#er the ri&ht ty%e of %ro#uct) /yclin& stu#ios main source ofsatisfaction $oul# be if the customer &ave &oo# fee#bac!+ if the %ro#uct fit $ell an# $as of hi&h-uality) *he bi&&est reason for #issatisfaction for cyclin& stu#ios $oul# be a lar&e co&nitive#issonance7 if customers arent satisfie# this leaves a heavy feelin& of re&ret an# feelin& that theyma#e the $ron& choice) 

    After i#entifyin& the buyin& %rocess utili"e# by each se&ment at the or&ani"ational level+it is then im%ortant to eamine the %rimary #ifferences that #efine the three se&ments) *he mostevi#ent #ifferences in buyin& behavior an# -uite %ossibly the most im%ortant sta&e for #efinin&the se&ments can be seen in the %roblem reco&nition) *his sta&e sho$s that the three se&ments allhave very #ifferent reasons $hy they are enterin& themselves into the buyin& %rocess) *hese %roblems that have been reco&ni"e# then set the tone an# affect the as%ects of each of thefollo$in& sta&es ma!in& for very #ifferent se&ments $ith s%eciali"e# nee#s) After analy"in& themotivation an# &oal behin# each in#ivi#ual se&ment+ com%anies can initiate s%ecific mar!etin&tactics an# treat each se&ment in#ivi#ually) In #oin& so+ mar!eters are able to mar!et a %ro#uctmore effectively an# more efficiently) Given Ivivvas %ro#uct ran&e+ $e reco&ni"e that the %rimary focus $ill be on yo&a stu#ios an# arre stu#ios because the %ro#ucts are more fittin& for these ty%es of fitness classes than others)

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      In conclusion , the se&mentation %rocess %rovi#es tremen#ous insi&ht into the min#s of a %ro#ucts consumers) leven se%arate se&ments $ere i#entifie# in the Ivivva se&mentation %rocess) 6hile that may seem li!e a hi&h number of se&ments+ it is im%ortant to i#entify all the %otential se&ments before narro$in& #o$n to one or more tar&et mar!ets) Havin& multi%le

    se&ments to choose bet$een allo$s mar!eters to select consumers $ith very similar buyin&characteristics an# treat their tar&et mar!ets in#ivi#ually)

    ORGANIZATIONS:

     Basis $ariable" *y%e of Store

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    Se&ment 1 N 8o&aStu#io E/orePo$er

    Se&ment 2 N 5therFitness EPurearre

    Se&ment < N /yclin&Stu#io ESoul/ycle

    Problemeco&nition

    1) *ryin& to buil# astu#io store2) Cee# more forms of

    income

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    D. $om&etitive Analysis

    /om%etition is a crucial as%ect to analy"e $ithin an in#ustry) no$in& an# un#erstan#in&the behavior of your com%etitors an# the res%onses of your com%etitors to your behavior &ivesyour com%any an e#&e in the mar!et %lace) *hat is $hy after analy"in& the consumer behavior+

    se&mentation an# #eman# as%ects of our com%any an# mar!et+ it is only fittin& to eamine thecom%etition) /om%etition in the $omens athletic $ear in#ustry consists of eistin& com%etitors+ %otential com%etitors an# further %re#ictin& the behavior of these com%etitors)

    !urrent !ompetitors

    *he %rimary ste% of com%etition analysis is i#entifyin& the current com%etitors) Ivivvahas an etensive list of com%etitors+ varyin& from yo&a clothin& to non(athletic $ear an# evennon(tra#itional clothin& o%tions) In or#er to #iscern the stron&est com%etitors for Ivivva+ a %yrami# $as create# base# on %ro#uct offerin& an# substitute %ro#ucts)

    *he stron&est of Ivivvas current com%etitors in terms of this com%arison are com%aniesli!e Soybu an# Bucy) uch li!e Ivivva an# its %arent com%any Bululemon+ Soybu an# Bucyoffer %rimarily yo&a clothin&) *his se&ment $oul# %rimarily be concerne# $ith the si"eJfit of the %ro#ucts+ follo$e# then by style an# #esi&n) In terms of chil#rens yo&a clothin&+ Soybu an#Bucy have yet to eten# their %ro#uct offerin& to chil#ren) *his leaves Ivivva as the sole currentyo&a(retail com%etitor $ith a chil#rens line) 6hile it $oul# seem that Soybu an# Bucy are thestron&est com%etitors for Ivivva+ the non(yo&a athletic $ear %resents a stron&er set ofcom%etitors) *his se&ment falls one level belo$ the to% of the %yrami#) Such com%anies in thisse&ment of com%etitors are ?n#er Armour+ Ci!e an# A#i#as) *hese com%anies offer a variety of$or!out clothin& from out#oor runnin& &ear to in#oor trainin&) *ra#itional athletic clothin& has been the norm for many &enerations an# is only no$ bein& re%lace# by ti&hter+ yo&a(styleclothin&) It is because of this slo$+ yet stea#y+ tren# that causes tra#itional athletic clothin&com%anies to be a &reat com%etitor to Ivivva an# other yo&a(clothin& retailers) Ivivva is fi&htin&

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    $ith these stores for a lar&er share of the mar!et) /onsumers of Ci!e+ ?n#er Armour an# A#i#asli!ely belon& to se&ments t$o an# three from the 3In#ivi#ual Bifestyle se&ment table) *heset$o se&ments consist of in#ivi#uals $ho %lay out#oor or in#oor s%orts such as bas!etball+ socceran# lacrosse) *hese retailers cater to the #esires of consumers by %rovi#in& %rimarily functionalclothin& but have also mana&e# to #o it $ith style) Ivivva+ as their com%etitor+ nee#s to continue

    to attract consumers base# on the style+ #esi&n an# fit of their clothin&+ $hile further #evelo%in&the functionality of their %ro#ucts)

    *he bottom t$o %ortions of the %yrami# re%resent more etreme alternatives to yo&a an#athletic clothin&) In the %ast+ non(athletic a%%arel occu%ie# an entirely #ifferent se&ment of theclothin& mar!et) Ho$ever+ as athletic clothin& has transitione# to 3athleisure clothin&+ theseretailers are no$ com%etin& $ith athletic $ear bran#s) For the ol#er &eneration or for those $ho#esire a classier an# %erha%s stylish loo!+ com%anies li!e @ustice+ 5l# Cavy+ /hil#rens Place an#Ga% offer a viable alternative to comfortable yo&a %ants of athletic shorts) e&ular buyers ofthese items %rimarily fall into se&ment number four on the 3In#ivi#ual Bifestyle se&ment table)*his se&ment is non(athletic an# evaluates bran# re%utation an# status over function an# fit) A

     %air of ,eans from HL or %atterne# shorts from 5l# Cavy is a common %urchase for thesein#ivi#uals) Ivivva lac!s this tra#itional %ro#uct offerin&+ $hich ma!es such retailers a stron&com%etitive threat for the yo&a com%any) 6hile Ivivva #oes not %rovi#e ,eans or fancy blouses+ itoffers the a%%eal of bran# re%utation) Its %arent com%any Bululemon has lai# a re%utablefoun#ation for Ivivva to act as a status($orthy %ro#uct) *he final tier of the %yrami# re%resentsnon(tra#itional a%%arel) *hese alternatives coul# be classifie# as 3out there or bi"arre o%tions+ but still ta!e u% a certain share of the mar!et) For eam%le+ s%ray(on yo&a %ants+ if #evelo%e#+are a com%etitor to Ivivva+ alon& $ith hosiery com%anies that sell ti&hts an# fishnet stoc!in&s)uch li!e yo&a clothin& can be use# for leisure+ ti&hts can serve the same %ur%ose) ost of theseconsumers %robably fall into se&ment four of the 3In#ivi#ual Bifestyle se&ment table) *heseconsumers re%resent a s%ecial niche of the mar!et an# coul# be one of the most challen&in&consumers for Ivivva to convert)

    From other yo&a a%%arel com%anies to non(tra#itional alternatives+ Ivivva has a stron&an# stea#y list of current com%etitors) ecause Ivivva focuses %rimarily on one in#ivi#uallifestyle se&ment+ there are %otential o%%ortunities for Ivivva to %enetrate the mar!et) *o #o so+the #esi&ners at Ivivva must evaluate the other se&ments an# cater some %ro#ucts to the #ifferent#esires of consumers)

     Potential !ompetitors

    'ar(et Leaders   • Ivivva)Lululemon

    • Under Armour

    • Ni(e

    'ar(et

    $hallen%ers

    • A#i#as

    • ella

    • 5l# Cavy

    'ar(et

    *ollo+ers

    • Bucy

    • Athleta

    • ella

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    'ar(et Nichers   • Soybu Eclothes are ma#e from soy+ or&anic cotton+

     bamboo+ an# recycle# material

    Ivivva has set the bar hi&h for com%etitors+ follo$in& its mar!et lea#er %arent com%any

    Bululemon) Bululemons current com%etitors $ill be Ivivvas future com%etitors+ as thesecom%anies are tryin& to move into the chil#rens mar!et in or#er to #irectly com%ete $ith Ivivva)Ivivva has several %otential com%etitors+ inclu#in& Athleta+ Soybu+ an# 5l# Cavy) Athleta iscomin& u% -uic! on the heels of Ivivva) *hey #o not yet have a chil#rens line of clothin&+ butthey are one of the main com%etitors of Bululemon) Athleta has a broa#er offerin& of &oo#s+inclu#in& yo&aJstu#io+ runJhi!e+ #anceJbarre+ surfJ%a##le+ cycleJs%in+ tennisJ&olf+ an#s!iJsno$boar#) *hey a%%eal to more consumer athletic activities+ an# have 40= lar&er storesthan Ivivva) *hey are %re#ictin& 40 to >0 ne$ store o%enin&s in the net year+ an# it $oul# be nosur%rise if they brea! into the chil#rens athletic $ear mar!et to com%ete hea# to hea# $ithIvivva an# Bululemon simultaneously EBevisohn) ar!et an# %ro#uct e%ansion are strate&iesthat Athleta $ill be usin& in the near future to ta!e on Ivivva as a to% com%etitor+ ,ust as they

    have Bululemon) Athleta $ill &reatly a%%eal to all in#ivi#ual se&ments from emo

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     Predicting !ompetitor Beha#ior 

    8o&a %ants are the ne$ 3&o(to %ant for many &irls an# $omen that are ho%%in& on the ban#$a&on for the ne$ an# &ro$in& tren# of 3soft #ressin&) It has been state# that sales ofactive $ear li!e yo&a %ants climbe# : %ercent+ more than #oublin& the 91' billion %eo%le s%ent

    on ,eans E6*A) 6ith &ro$th tren#s li!e this+ the yo&a %ant an# active $ear mar!ets are only&oin& to continue to increase in %o%ularity $hich also means that more an# more com%etitors are&oin& to enter this 3athleisure mar!et) 6ith the &reat ris! of increase# com%etition+ it is veryim%ortant that Ivivva has soli# %re#ictions on $hat these com%etitors net moves mi&ht be)Pre#ictin& com%etitor behavior is essential for a mar!et lea#er to maintain their %osition an# tore#uce mar!et share ris!)

    /urrently Ivivva is not bein& overly threatene# by bi& athletic $ear bran# names becausemany #ont have chil#rens yo&a $ear lines) As mentione# earlier+ Ivivva faces %otentialcom%etition from com%anies such as Athleta+ 5l# Cavy+ Soybu+ $ho #o not yet have !i#s athletic$ear lines+ an# even bi&&er names li!e Ci!e an# ?n#er Armor an# ella $ho have &irl athletic

    $ear lines currently) ven thou&h not all of these com%anies currently have athletic $ear linesfor chil#ren+ this $ill li!ely chan&e as the #eman# for yo&a clothin& seems to !ee% risin&+vali#atin& the %re#iction that these com%anies $ill most li!ely create ne$ mar!et se&ments to#irectly com%ete $ith Ivivva) no$in& that these com%anies %ose as ma,or threats to Ivivvasfuture &ro$th an# success+ it is very im%ortant to %re#ict the behavior of these %otentialcom%etitors) 6e $ill loo! at an# %re#ict the behaviors of t$o com%anies+ one that is #oin& anama"in& ,ob in the yo&a s%ecific mar!et but #oesnt have a !i#s se&ment+ an# one that is auniversal bran# $ith a &reat re%utation that #oes have a !i#s se&ment. Athleta an# Ci!e)

    Bululemon is !no$n as 3the %ioneer of yo&a %ants an# has #one an ama"in& ,ob atcreatin& athletic $ear for $omen that is tren#y+ #ifferent+ an# attracts a hu&e loyal follo$in&)6hile Bululemon is one of the mar!et lea#ers+ many com%etitors have emer&e# an# arecom%etin& $ith force) In res%onse to the ne$ national tren# of 3athleisure+ com%anies li!e Ga%has create# their o$n line of yo&a clothin& for $omen+ Athleta) Athletas %ro#ucts are rou&hlythe same %rice as Bululemon an# tar&et the same %eo%le that Bululemon tar&ets) Athleta isres%on#in& very $ell an# is a ma,or threat to Bululemon) *hey are %lannin& on o%enin& thirtyne$ stores in the ?S in 2014 an# are %artnerin& $ith fitness bran#s to host free classes forcommunities+ $hich are be&innin& to $in over %ast Bululemon customers) 6hen Bululemon ha#ma,or %roblems $ith -uality of their %ro#ucts+ Athleta $as the number one retailer to %rofit fromBululemons mess(u% E/C/) So+ ho$ is Athleta a threat to IvivvaM 6hile Athleta #oes not yethave a chil#rens line+ it $oul# be smart to %re#ict that they $ill in the future) An# if they #o+ it$ill be a very serious com%etitor to Ivivva) Athleta has the finances+ the follo$in&+ they havelar&er %ro#uct lines+ more lenient return %olicies+ offers a lar&er ran&e of si"es+ an# has betterinventory mana&ement that Bululemon all of $hich are threatenin& factors to Ivivvas successEusiness Insi#er) If Athleta #oes start a chil#rens se&ment+ it is im%ortant that Bululemon isrea#y to res%on#)

    /om%anies li!e Ci!e an# ?n#er Armor+ $hich alrea#y have establishe# chil#rens lines+ %ose as stron& com%etitors in the athletic $ear mar!et for &irls) 6hile the &irls athletic $ear linefor Ci!e an# ?n#er Armor are more &eare# to$ar#s runnin& rather than the yo&a an# #ance

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    theme# clothin& sol# by Ivivva+ these com%anies have the resources to e%an#) Ci!es sales thisyear ,um%e# 1>= to 9; billion in the three months that en#e# Au&)

    StyleJDesi&n 10 : <

    Status Associate# $ith Pro#uct 10 ' 4 10

    ran# e%utation ; 4 10

    ase# off of the %ricin& from each com%anys $ebsite+ $e ran!e# each com%etitor base#on this variable) Ivivva came in at the hi&hest %rice %oint at 9'4)00 for a %air of %ants+ follo$e# by Cor#stroms ella at 94;)00+ ?n#er Armour at 9)00)

    In terms of -uality+ Ivivvas consumers #i# not have much to say $hen it came tocom%laints about their %ro#ucts+ ece%t that they e%erience# %illin& $ith certain #esi&ns) ?n#erArmours customers $ere less than thrille# $ith the material an# felt that they $ere lo$ -ualityfabrics) Ci!es revie$s $ere the lo$est as customers felt that the %ro#uct $as nearly ruine# afterseveral $ashes+ as the material #i# not u%hol# the $ear an# tear of $ashin& machines) ella ha#the hi&hest revie$s+ an# base# off of Cor#stroms $ebsite+ customers $ere rarely #isa%%ointe#$ith the %ro#uct an# almost al$ays &ave a >(star revie$)

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    For style an# #esi&n of the %ro#ucts+ Ivivva lea#s this cate&ory) *hey have very uni-ue#esi&ns that have been s%un off from Bululemons a#ult #esi&ns) *hey incor%orate colors that thecom%etitors havent+ an# have uni-ue %atterns an# $aistban# #esi&ns that set them a%art) *heyhave more variety in their colors an# %atterns than the other three com%anies) ?n#er Armour hasa more &eneric style $hen it comes to their #esi&ns an# fe$ color choices for each item) *he

    hi&hest amount of color choices a consumer at ?n#er Armour is &iven is bet$een < o%tions+$hile Ivivva offers u% to 10 %attern an# color choices for a sin&le item) ?n#er Armours #esi&nsare not as fashion for$ar# an# youn& &iven the chil#rens a&e &rou% they are a%%ealin& to) *hestyle an# #esi&n of Ci!es chil#rens athletic clothin& items is very similar to ?n#er Armours)Ho$ever+ there is even less color an# #esi&n choice for clothin& items) ella is com%arable toIvivva in that they offer a $i#e variety of uni-ue #esi&ns an# colors+ but ,ust less of a varietythan $hat is seen at Ivivva) *hey are the most similar to Ivivva in their style an# #esi&n as%ects)

    *hat status that consumers receive as a result of buyin& a %ro#uct is very im%ortant) Inthis case+ both Ivivva an# ella have score# a 10 on this variable) As mentione# in %ast memos+Ivivva has a customer base com%rise# of %eo%le $ho are not affecte# by economic #o$nturns)

    *hey have a hi&h income+ so those that sho% at Ivivva are instantly associate# as bein& $ealthyan# of hi&her status) *he same &oes for Cor#strom+ as they are a luury store that a%%eals tou%%er(class sho%%ers) ella bein& a Cor#strom bran# has resulte# in a very hi&h status bein&associate# $ith the %ro#uct) *hose $ho can s%en# lar&e amounts on $or!out &ear are associate#this $ay) ?n#er Armour follo$s these t$o bran#s relatively closely) *hey are not the lo$est %rice %oint+ an# %eo%le $ho buy ?n#er Armour are usually u%%erJmi##le(class consumers+ $hohave that status that allo$s them to buy one of the more e%ensive alternatives) Ci!e comes in$ith the lo$est status associate# $ith the %ro#uct+ as it is not seen as an incre#ibly hi&h(en# bran#+ an# it can be one of the chea%er alternatives for %arents $ho #o not have the money tos%en# on chil#rens athletic $ear)

    ran# re%utation $as foun# from a combination of our o$n $or#(of(mouth %erce%tionsof the bran#+ as $ell as -uality revie$s) Ivivva has a %ositive bran# re%utation+ as they are asubsi#iary of the very successful an# $ell(li!e# Bululemon) 8o&is E%eo%le $ho %ractice yo&ahave ma#e Bululemon their &o(to for their a%%arel+ an# %arents $ho sho% at Bululemonautomatically trust Ivivva for their chil#rens clothin&) ?n#er Armours re%utation is similar toIvivvas+ an# consumers see ?n#er Armour as a re%utable bran# that %rovi#es -uality clothin&for the %rice) Ci!e has the lo$est bran# re%utation+ as they are notorious for runnin& s$eatsho%san# treatin& em%loyees %oorly) *his is often the association that consumers ma!e $ith Ci!e as a bran#+ causin& sho%%ers to choose alternatives) ella has the best bran# re%utation of all+ as theyhave the a#vanta&e of bein& a Cor#strom bran#) Cor#stroms customer loyalty is li!e none otheran# they have a bran# re%utation of sellin& -uality items $ith the best customer service aroun#)

    In conclusion+ by evaluatin& an# assessin& Ivivvas com%etitive lan#sca%e+ the com%any$ill be able to better formulate an effective mar!etin& %ro&ram) It is very crucial to not only loo! at the eistin& com%etitors but the %otential com%etitors as $ell) Pre#ictin& com%etitors behavior is $hat can ma!e or brea! a com%any) If ne&lecte#+ a com%any can face a very hi&h ris! ofmar!et share loss) If mastere#+ a com%any can incor%orate e%ecte# reactions by com%etitors intostrate&ic #ecisions+ %ossibly lea#in& to better mar!etin& %lannin&+ more sales revenue+ an# anincrease# mar!et share)

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    Strengths:

    1) Sole chil#rens(only yo&a clothin& retailer2) Stron& su%%ort from %arent com%any

    • ran# loyalty from the sole buyerEthe %arent is hi&h

    ) ?ni-ue %atente# fabrics

    • Buon+ lutreme+ silverescent+/55BAR

    ') /ommunity(centere# mar!etin& a%%roach:) Premium store locations;) Positive %ress

    • Girl em%o$erment) Stron& financial bac!in& from Bululemon

    10) Hi&h mar&ins on %ro#ucts11) ertical retail strate&y

    Weaknesses:

    1) Bo$ ?S a$areness• ar!etin& for Ivivva is not stron&

    2) Pricin& strate&y• o#ele# off %arent com%any• liminatin& a broa# mar!et

    ) Slo$ &ro$th strate&y #ue to lac! of massmar!etin&

    ') Stru&&lin& to e%an# %ast a yo&a bran#:) Fe$ retail outlets+ not reachin& all

     %otential customers;) Bimite# si"in& o%tions

    •  Co %lus(si"es offere#

    ) a,ority of %ro#ucts manufacture#outsi#e ?S

    10)Strict %ro#uct care re-uirements

    11)Strict return %olicy

    Opportunities:

    1) 5%%ortunity to create a ne$ se&ment for boys

    2) Further &ro$th in the ?S) Gro$th of the fitnessJhealth cra"e') Sur%assin& ,ean sales:) Gro$th of e(commerce

    • 6ebsite sho%%in& more %o%ularthan in(store %urchases

    ;) Gro$th of tar&et mar!et Ea&es '(11) Si&ns of economic im%rovement10) Partner $ith yo&aJ#anceJ&ymnastics

    stu#ios

    Threats:

    1) Boyalty to tra#itional athletic($ear2) Bo$ mar!et share) ver(chan&in& fashion tren#s') Hi&h buyer %o$er:) /urrent an# %otential com%etitors have

    hi&h bran# reco&nition• . Ci!e+ ?n#er Armour

    ;) /om%etitors a%%eal to the boys Ea&es '(11 active $ear mar!et

    ) Bo$ barriers to entry10)3Athleisure tren# is not yet &lobal

    E. Stren%ths, -ea(nesses, O&&ortunities, #hreats S-O#/

    *he analysis of Ivivva u% to this %oint has been etremely com%rehensive) From thecom%any %ers%ective an# its %osition $ithin the mar!et+ many critical as%ects to its success have been eamine#) *hat bein& sai#+ there is another ty%e of analysis that must be com%lete#+ $hichis con#uctin& a S65* analysis) S65*+ $hich is an acronym for Stren&ths+ 6ea!nesses+5%%ortunities an# *hreats+ eamines a com%anys current situation+ both internally an#eternally+ an# #etermines $hat strate&ic areas to harness an# $hich ones to avoi#) ?sin& theinformation that has been &athere# from the secon#ary research for each %rior memo+ aninclusive S65* analysis $ill be com%lete# for Ivivva)

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    ?%on com%letion+ a S65* analysis %rovi#es insi&ht into the !ey internal an# eternalfactors that are currently im%actin& a com%anys success) It is also an im%ortant ste% in

    #eterminin& the %osition of the com%any in the in#ustry) /om%any(s%ecific stren&ths+$ea!nesses+ o%%ortunities an# threats are critical as%ects that shoul# be use# to #evelo%mar!etin& %lans an# materials)

    III. Business *undamentals

    As %reviously mentione#+ one of Ivivvas &reatest assets is the su%%ort an# e%erience %rovi#e# by its %arent com%any+ Bululemon) 6hile there are many benefits to havin& the su%%ortfrom Bululemon as an establishe# or&ani"ation+ there are several constraints associate# $ithhavin& a cor%oration &overnin& Ivivvas actions) All of Ivivvas financial an# re&ulatoryinformation is re%orte# $ith Bululemons) As a result+ it is #ifficult to i#entify revenue+ e%enses+

     %ersonnel an# other investor information solely for Ivivva) Ho$ever+ $e have utili"e# theinformation %rovi#e# in Bululemons 10 to outline the eistin& business fun#amentals in %lacefor Bululemon an# conse-uently for Ivivva)

    • Personnel.

    o 2+;'1 em%loyees EBululemon

    • Si"eJBocation Ivivva

    o Si"e. '2 storesJsho$rooms across /ana#a L ?S

    o Bocations.

    o !anada"

    ritish /olumbia E< locations

    Alberta E2 locations

    anitoba E1 location

     Cova Scotia E1 location

    5ntario E4 locations

    o

    nited States

    Alabama E1 location

    Ari"ona E1 location

    /alifornia E locations

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    /olora#o E1 location

    D/ E1 location

    Flori#a E2 locations

    Geor&ia E1 location

    Ha$aii E1 location

    Illinois E2 locations

    In#iana E1 location

    ansas E1 location

    arylan# E1 location

    assachusetts E2 locations

    ichi&an E1 location

    innesota E1 location

    issouri E1 location

     Ceva#a E1 location

     Ce$ @ersey E< locations

     Ce$ 8or! E< locations

     Corth /arolina E1 location

    5hio E2 locations

    5re&on E1 location

    Pennsylvania E2 locations

    *ennessee E1 location

    *eas E4 locations

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    ?tah E1 location

    ir&inia E1 location

    6ashin&ton E1 location

    • Investment.

    o Stoc!

    5%ene# on @uly 2:+ 200: 912)>0Jshare

    Bululemon Athletica+ Inc N CASDAQ.B?B? E94

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     %ro#ucts) In or#er to visually com%are an# consi#er the various alternatives available for %ro#uctan#Jor mar!et e%ansion+ a %ro#uct(mar!et &ri# $as create#) In total+ >' #ifferent o%tions $ereconsi#ere# throu&h the %ro#uct(mar!et &ri# evaluation) Amon& those >' o%tions $ere the four#ifferent strate&ies that com%anies use to #evelo%) *hese strate&ies inclu#e 3Pro#uctDevelo%ment+ 3ar!et Develo%ment+ 3ar!et Penetration an# 3Diversification) In a##ition

    to strate&y+ factors such as si"e an# &ro$th of the mar!et an# brea!(even analysis for each %ro#uct $ere consi#ere# throu&hout the #ecision %rocess) After some #eliberation+ >'combinations $ere $hittle# #o$n to 14+ from $hich t$o $ere selecte# as the final %ro&rams to %ursue) ar!etin& %ro&rams $ere #evelo%e# for each of the final t$o %ro#uct(mar!et selections)

    !onsumer 

     Beha#ior"Segments" 0ants 1ac(ets S+im+ear Studios  

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    s com%etitors com%etitors

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    Studios 6irst year/ 91:+';0Jyear 

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    each shi%ment may be sli&htly hi&her $ith a lar&er loa# of merchan#ise+ an entirely ne$#istribution %lan #oes not have to be #evelo%e#) /urrently+ Ivivva is classifie# as havin&3eclusive covera&e) 6ith '2 stores across /ana#a an# the ?S+ customers still have some$hatlimite# access to the bric!(an#(mortar sho%%in& e%erience $ithin an Ivivva store) *hat bein&sai#+ Ivivva has a com%rehensive an# easy(to(use $ebsite that allo$s for online sho%%in&) 5nce

    intro#uce#+ the boys 3Perfect 8our Practice ,ac!ets $ill be available for %urchase online as$ell)

     Promotion"5ne of the &reatest challen&es Ivivva $ill have $ith intro#ucin& the boys line to the mar!et

    $ill be creatin& a$areness of the %ro#uct line an# enticin& the boys mar!et to the %ro#ucts) Atactical %lan of %romotion $ill hel% to boost a$areness+ s%rea# the $or# an# attract malecustomers to the store) A %articular form of a#vertisin& that has %roven effective for Ivivvaseistin& mar!ets is online vi#eo a#vertisin&) Ivivva has create# its o$n 8ou*ube channel+ $hichit %osts vi#eo u%#ates about %ro#ucts featurin& real(life users) *he first %lan of action $ill be to#evelo% a vi#eo monta&e of youn& males $earin& the ,ac!et in a variety of #ifferent settin&s)

    From the bas!etball court to the soccer fiel# to the in#oor climbin& &ym+ other boys $ill be ableto see the style an# functionality of the ,ac!ets on their %eers) In a##ition to its 8ou*ube channel+Ivivva utili"es social me#ia as a $ay to tar&et a youn& au#ience) 5ne of its %rimary social me#iachannels is Faceboo!) Due to the &en#er sensitivity at youn& a&es+ Ivivva $ill create a Faceboo! %a&e solely for boys) *his %a&e $ill feature %ro#uct u%#ates an# %ersonal testimonies ,ust as thecurrent com%any %a&e #oes) ESee appendices for current Faceboo* page) y %ostin& an#connectin& $ith other users+ Ivivva $ill create a net$or! of youn& boys+ throu&h $hich $or#(of(mouth shoul# be im%actful) Similar to the Faceboo! %a&e+ Ivivva utili"es another social me#iachannel+ *$itter+ to reach its tar&et au#ience) A subse-uent *$itter %a&e $ill be create# for the boys line as $ell) After the $or# has s%rea# a bit via social me#iums an# $or#(of(mouth+ Ivivva$ill then utili"e #irect mar!etin& an# sales %romotions tactics to create hy%e for the release of the boys line) A%%roimately one month after the initial %ro#uct launch+ the Ivivva team $ill travelto several hub cities+ such as Ce$ 8or!+ Denver+ San Francisco an# /hica&o to s%onsor s%ortin&events an# set u% a booth $ith &ivea$ays) *his three($ee! tri% $ill be an o%%ortunity for youn& boys or their %arents to %urchase the %ro#uct as $ell at a #iscounte# %rice)

     -#aluation Plan"

    6ith every mar!etin& %lan it is essential to #evelo% a %lan for evaluatin& the success of the %lan an# its im%lementation) *he %ur%ose of the evaluation %lan is to fin# ne$ o%%ortunities+avoi# threats+ resolve %roblems that have #evelo%e# an# !ee% mar!etin& ali&ne# $ith &oals) *o#o this for the intro#uction of the boys 3Perfect 8our Practice ,ac!et+ a &oals(base# evaluation %lan $ill be create#) *he %rimary measures of this %lan $ill be sales #ollars+ mar!etin& s%en#an# 5I) *he first evaluation $ill ta!e imme#iately follo$in& the three($ee! hub city tri%) *he %rimary measure for this evaluation $ill be sales #ollars) *he intent is that there is a s%i!e insales of all Ivivva %ro#ucts+ but %rimarily the 3Perfect 8our Practice ,ac!ets) *he com%any $illthen com%lete an 5I analysis in $hich the sales #ollars $ill be com%are# to the amount s%enton mar!etin&) Given the results of this first evaluation+ Ivivva can ma!e subse-uent alterationsan# ne$ %lans for the follo$in& t$o months) For eam%le+ if 5I is etremely lo$+ meanin& themar!etin& #ollars are not bein& s%ent in effective $ays+ the mar!etin& team $ill nee# to thenevaluate the effectiveness of each mar!etin& tactic Esocial me#ia+ 8ou*ube+ #irect mar!etin&T

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    etc) *he secon# evaluation $ill ta!e %lace si months after the first one) *he &oals for this %erio# inclu#e a =) In terms of #istribution+ $e %lan to carry the boys ,ac!ets in 1> of our eistin& Ivivva locations by December 201>) *hefollo$in& year+ by December 201'+ $e %lan on sellin& the ,ac!ets from all of our eistin& Ivivvalocations) 5nce a&ain+ if these &oals have not been met+ the evaluation inclu#es a strict loo! at

    the effectiveness of the mar!etin& an# %ro#uct #istribution) Ivivva $ill create a fleiblemar!etin& %lan to allo$ for these necessary chan&es)

     ar*eting Program +."

    Strategy"

    *he secon# strate&y that Ivivva has chosen to %ursue is brin&in& a ne$ %ro#uct+ bathin&suits+ to an eistin& mar!et+ 35ther Fitness Stu#ios) *his is a %ro#uct #evelo%ment strate&y+ as ane$ %ro#uct $ill be create# for one of Ivivvas current mar!ets) Ivivva currently has a broa# %ro#uct line thats contains many successful items+ so in or#er to stay on the e#&e of innovation+ itis im%ortant for Ivivva to come out $ith ne$ #esi&ns an# styles that $ill &ive %rovi#e a

    com%etitive e#&e) 6ith fitness stu#io classes bein& a billion #ollar mar!et+ it is a &reat channelfor Ivivva to %lace their ne$ s$im$ear line that $ill create bu"" an# ecitement aroun# the %ro#uct) 5ne of the !eys of a %ro#uct #evelo%ment strate&y is ta!in& a#vanta&e of ne$technolo&y+ an# by usin& Bululemons %atente# fabrics an# materials+ Ivivva can #o ,ust that)?sin& technolo&ies that are not use# by com%etitors $ill hel% set Ivivva a%art) In a##ition+Ivivvas com%etitors+ inclu#in& Ci!e an# ?n#er Armour+ #o not currently offer chil#rens bathin&suits+ further settin& Ivivva ahea# of the curve)

     Product"

    *his %ro#uct $ill be a com%letely ne$ a##ition to Ivivvas %ro#uct line+ as they #o notcurrently manufacture s$imsuits) *heir %arent com%any+ Bululemon+ #oes create s$imsuits+ so$e $ill use the same materials an# technolo&y to create Ivivvas iteration of the %ro#uct) *hese bathin& suits are ma#e to stay on+ stay %ut+ an# su%%ort youn& &irls $hen they are %artici%atin& inactivities $ithout $orry of ties comin& un#one or the bathin& suit bein& too loose) *he style issimilar to a s%orts bra+ ma!in& the cut an# style a%%ro%riate for Ivivvas a&e cate&ory+ an# the bottom of the suit $ill be similar to $earin& volleyball s%an#e) 5ne(%iece suits $ill also beoffere# in or#er to ensure that all youn& &irls fin# a style they feel comfortable $earin&) *he fitof this suit $ill be ti&ht to the s!in+ %rovi#e a lot of covera&e+ an# come in a variety of fun %atterns an# #esi&ns in or#er to a%%eal to the youn&er au#ience) *he suits $ill also be reversible+ ,ust as Bululemons suits are+ %rovi#in& a #ifferent %attern in the same color scheme) Several %rints an# styles $ill be manufacture# allo$in& the consumer much choice in their %urchasin&#ecision)

     Place"

    *hese %ro#ucts $ill be %ro#uce# in the same factories that Bululemon %ro#uces their bathin& suit line an# other clothin& items) *he same materials that are use# to %ro#uceBululemons current suits $ill be use# to %ro#uce these s$imsuits as $ell+ but a variety of#ifferent %atterns an# colors $ill #ifferentiate the a#ult bathin& suits from the chil#rens bathin&suits) Sustainable %ractices $ill be a lar&e focus for Ivivva throu&hout the manufacturin& %rocess)*he material use# $ill be focuse# aroun# re#ucin& the carbon foot%rint that Ivivva leaves

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     behin#+ follo$in& the %ractices of Bululemon) Ivivva $ill $or! closely $ith their factory throu&hevery ste% of the %rocess to ensure efficiency an# trans%arency) ost %ro#ucts $ill be #elivere#to the fitness stu#io store locations via truc!+ as this is the most sustainable %ractice fortrans%ortation) *hey $ill %ractice Bululemons 3Shi%%e# $ith Bove conce%t to ensure that theyare shi%%in& their %ro#ucts in the most socially res%onsible $ay)

    Ivivvas ne$ s$imsuit line $ill ultimately be carrie# in fitness stu#ios !no$n as 35therFitness enues) *hese locations inclu#e $ater fitness centers $here activities such as $ateraerobics an# a-ua "umba are offere#) *his $ill inclu#e not only &ym an# fitness centers+ but alsocountry club %ools an# recreation centers) 6e %lan to start $ith these ty%es of locations+ analy"ethe success+ an# then continue our %lan from there) It is im%ortant to test the mar!et first beforeIvivva allocates too much money to im%lement this venture)

     Promotion"6e %lan to launch this %ro#uct line in Fall of 201> in or#er to %rovi#e enou&h time for

    #esi&n an# manufacturin& to ta!e %lace) *he main source of %romotion for this %ro#uct $ill be attra#e sho$s $here fitness centers buy items for their in(house stores) *hese &enerally ta!e %lacein Se%tember+ so that buyers can receive their or#ers by @anuary) Durin& the tra#e sho$+ Ivivvare%resentatives $ill be %resent at a booth in or#er to sell these fitness stu#ios on the %ro#ucts) Asseen in A%%en#i D, there $ill be a colorful an# informational boar# set u% on the tables in or#er to attract stu#io %ro#uct mana&ers+ as $ell as &ive them information on the %ro#uct an# the %otential benefits of sellin& it at their locations)

    Ivivvas social me#ia sites $ill also be a &reat $ay to s%rea# the $or# about the ne$ %ro#uct) *hey are very active on several sites+ inclu#in& Faceboo!+ Insta&ram+ 8ou*ube+ an#*$itter) *hey %rovi#e a &reat %latform for Ivivva to &et the $or# out to their follo$ers+ $hich aremost li!ely fitness stu#ios an# %eo%le $ho $or! at fitness stu#ios) *his is an ine%ensive an#effective $ay to communicate $ith buyers that $ill allo$ Ivivva to e%lain the %ro#uct+announce the launch+ an# sho$ creative %ictures of the s$imsuits in use) ?%beat vi#eos of youn&&irls usin& the suits $ill also be an innovative $ay for %otential buyers to see the %ro#uct) As$ith our s$eatshirt %romotion+ Ivivva $ill travel to lar&e s$immin& s%ortin& events+ such asnational cham%ionshi%s+ an# set u% a booth $ith a similar tri(fol# %resentation boar# to intro#uces$immers to Ivivvas bran# ne$ %ro#uct) 5ftentimes+ lar&e s$imsuits bran#s set u% sho% at theseevents to hel% increase sales+ an# Ivivva $ill be alon&si#e these com%anies in %romotin& their bran#) Havin& sam%les+ #iscount offers+ an# buyin& forms at the event $ill hel% Ivivva receive bul! or#ers from a-ua(fitness locations) Ivivva $ill eventually carry s$imsuits in their store forall sho%%ers+ so it $ill be im%ortant to intro#uce s$immers to a hi&h(-uality s$imsuit before ithits stores to buil# ecitement)

    *o motivate these fitness stu#ios to buy Ivivvas s$im line an# carry it in their in(stu#iostores+ Ivivva is &oin& to a&ree to a#vertise each business in their o$n stores) Flyers thatencoura&e Ivivva sho%%ers to visit the stu#ios $here the s$imsuits are carrie# $ill &ive thestu#ios more e%osure) *his creates an a#vanta&e for both Ivivva an# the fitness stu#ios+ as it$ill brin& more %atrons into the a-ua(fitness locations+ but also increase# business to thes$im$ear line)

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     Price"

    Bululemon currently %ro#uces s$imsuits for $omen that run aroun# 94>)00 %er %iece)*his %ricin& strate&y is a soli# in#icator for the %rices that Ivivva $ill im%lement for their ne$line) Since su%%lier an# manufacturin& costs


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