Marketing plan of LOreal Melbourne Fashion Festival

Marketing plan of LOreal Melbourne Fashion Festival Listed as a not for profit organisation since 1996, the Melbourne Fashion Festival Ltd, now known as the LOreal Melbourne Fashion Festival, has always been at the forefront of the fashion world. Over the years, the LMFF has become one of Australias top fashion events and focuses on target markets that are fashion oriented, social oriented and a mixture of both. The events success can be recognised by the efforts made by many individuals and businesses that have been with the organisation for many years. On March 14, 2011, the LMFF launched Fashion Full Stop: Decades of Australian Fashion, an event that celebrated designers, along with many labels and styles that have shaped Australias history in fashion. With tickets ranging from $79 to $39, 4000 fans filled the Melbourne Convention and Exhibition Centres plenary auditorium. Due to this, the event has been deemed a large priority in future shows and an extremely important opportunity to raise the profile of the organisation (LOreal Melbourne Fashion Festival Pty Ltd, 2011) Therefore the main objective of this event is to be recognised both nationally and internationally as the leading event of its kind and stimulate activity across the retail, clothing, footwear, and creative sectors. The purpose of this marketing plan is to identify LMFFs many strengths, weaknesses, opportunities and threats ; and these must be used in union with several marketing strategies, actions and a budget of $47 200 to eventually achieve the overall objective. Although the companys strengths and opportunities outweigh the organisations weaknesses and threats, the growing competition within the fashion industry and changes in the marketing environment need to be of focus. For the event to be a success, the organisation must modify or maintain the strategies and actions to directly reflect these changes. Event Information The aim of the Fashion Full Stop Opening Runway event is to celebrate and promote iconic designers, labels, styles and moments from the 1960s to today, stimulate sales and present Melbourne as a precinct full of design superiority. Assessment of the Marketing Environment Internal Environment Strengths: Since the LMFF initiated in 1996, the unique LOreal brand image has flourished Created brand awareness, recognition and emotional value to its target audiences Has built a reputable media profile Has been able to grow and produce a diverse range of activities Showcases many strong brand names and sponsors Sales within Melbourne and other parts of Australia have skyrocketed Increased staff attitude towards the event, opinions about the event, and expertise and experience during the event Weaknesses: Certain markets are not focused, e.g. low income earners. This may be intentional as the event focuses on exclusivity. Due to the lack of detail about the event in regards to online advertising, television advertisements and more, previous customers may have a perception that the event may be similar to the previous year or be similar to competition. External Environment 3.21 Micro-Environment Competitive analysis and Venn Diagram Direct competitors (offer similar, but somewhat differentiated events) include: Location Prices Target Market Offerings and/or Sales Date and time Rosemount Australian Fashion Week Sydney Similar Same Similar Different Mercedes Benz Fashion Festival Brisbane Similar, but offer free events Similar Achieved an increase of 61% on ticket sales and 33% on attendance in 2008 (Lindsay Bennett Marketing, 2010) Different Motorola Melbourne Spring Fashion Week Melbourne Nearly all events are free Similar Very similar Different Perth Fashion Festival Perth Similar Same Very similar Different New Zealand Fashion Week Auckland (outside Australia) Very similar Similar Very similar Same Similar offerings Party Eclectic Well known SOCIAL HIGH PROFILE INTERNATIONAL Indirect competitors (seek to provide the same benefits to the consumers, but in a different form) include: Port Fairy Folk Festival Future Music Festival Moomba Festival 3.22 Macro Environment PESTE Analysis Political forces/legal and regulatory influences The LMFF is required to uphold and adhere to many political and legal regulatory practices and the most important include: Drinking laws: all underage visitors must be accompanied by an adult in bars and dining rooms (LOreal Melbourne Fashion Festival Pty Ltd, 2011). Entry: refused entry is given to any person that is affected by alcohol/drugs, behaves aggressively or reduces the reputation of the LMFF or any organisation associated with the LMFF (LOreal Melbourne Fashion Festival Pty Ltd, 2011). Intellectual property: in the interest of all the stakeholders, registered designs, trademarks, patents, and copyrights all need to be respected by using intellectual property laws. It encourages technological innovation and artistic expression in industries (Commonwealth of Australia , 2010). Economic trends In economic troubles, fashion, the arts and entertainment often get sacrificed because of a decrease in disposable income. However, the slowdown within worldwide expenditure due to the impact of the global economic crisis has had a little effect on the LMFF. In fact, consumers are still spending a large amount of income, visiting the festival on an annual basis, and sponsorship is still going strong. Socio-cultural trends According to Easey (2008), fashion is ultimately about change.many of these changes are brought about by designers trying to create something new to satisfy customers, but others are because of influences beyond the control of designers or manufacturers.some are within a companys control and others are way beyond it. Therefore, the LMFF opening runway show will have to focus on the current needs and wants of the target market and find a way to satisfy them. Technological trends In several industries, the development and utilisation of new technology gives the opportunity of improving a consumers experience. Recently, designers such as Alexander McQueen and Alexander Wang used technology to stream their fashion shows live online (Moore, 2010). The brand DKNY has also started using a barcode technology for invitations and seating arrangements for its fashion show (Moore, 2010). This type of technology could be developed for use in the LMFF opening runway show. Environmental trends Recently, an ethical fashion forum has developed a mission to support  and  promote  sustainable practices, facilitate  collaboration, raise  awareness  and provide the  tools  and  resources  needed to reduce poverty, reduce environmental damage and raise standards in the fashion industry (Ethical Fashion Forum, 2011). Therefore, the push to become green is fairly large on fashion shows and designers. SWOT Analysis STRENGTHS WEAKNESSES Established in 1996 Unique LOreal brand image Not for profit organisation Stimulates sales within Melbourne and several brands Presents Melbourne as a centre of design superiority Diverse range of activities Unique Strong brand names Good reputation Popular shows created annually/positive track record Staff attitude and opinions Staff expertise and experience Existing media profile/reputable media partners or sponsors Location Celebrity attraction Although variety of offerings, certain markets are not focused on Perception that customers may already know whats of offer Lack of detail Current marketing campaigns are shallow and not environmentally friendly OPPORTUNITIES THREATS Increase visitors and attract tourists Boost retail sales and economy Exposure for sponsors/volunteers Upcoming designers and existing designers to showcase talent Build reputation of Melbourne Opportunities for the LMFF to create something different Competition/growth of other tourism areas in Melbourne Limited finance Infrastructure renewal due to increase of visitors Safety and security Major events throughout the year that target market prefer to spend time and money on Hard to create niche products/services due to continuously changing environment Increase in push to become green Target Market Consumer Information There are three types of target markets: Primary: approximately 50% of attendees, require a small amount of marketing costs, go for the fashion and are loyal to the event. Secondary: approximately 30% of attendees, require a slightly larger amount of marketing costs, use the fashion event as a social experience. Tertiary: approximately 20% of attendees require a large amount of marketing costs; go as its an event close to home. Target Markets and Market Segmentation Market Research For the purpose of improving the LMFF event and in order to determine the characteristics of the primary, secondary and tertiary target markets, secondary research has been used. This information has not been directly extracted from the audience, but instead from a variety of sources. A useful way in identifying the reasons why several target markets visited LMFF was to create a brand bullseye, which takes into account a variety of emotional and functional perceptions, opinions and hot buttons (Skildum-Reid et al, 2007), see appendix 1. Consumer Segmentation The primary target market are associated with the fashion world and are visiting the event to connect with designers, musicians, consumers, and retailers. In other words they are high profile guests who have been actively engaged with the festival throughout its history and continue to support LMFF into its future (LOreal Melbourne Fashion Festival Pty Ltd, 2011). The secondary target market enjoys socialising, spending a large amount of disposable income and are easily influenced by peers and the media. The tertiary are people that are interested in the arts, but use location and convenience to satisfy their needs and wants. Demographics Variables Target Market Primary Secondary Age 21 50 18 30 Gender Female and Male Female and Male Marital Status No No Education Yes Yes Children living at home No No Income Middle to upper class, large amount of income, between $50 000 $110 000 Lower class, large amount of disposable income, equal to or less than $30 000 Internet use/ type High/Broadband High/Broadband Online buying habits Medium High and know how to buy online tickets, etc Television viewing preferences Pay television Pay television and free to air television Transport use Private Public and Private Beverage and food preferences Expensive and prefer alcohol and tea/coffee Cheap and prefer alcohol and sweet drinks Employment status/occupation Employed, usually in the fashion industry Student, unemployed or new worker Location Both domestic and international Domestic and urban/metropolitan areas (Information collected from EIT Inc, 2005; Frankie, 2011; Fashion TV, 2011) Psychographics Variables Target Market Primary Secondary Lifestyle City prone Enjoys shopping Quality oriented Frequent buying behavior Interested in the arts music, dance etc Upscale and well-off Trendy Globetrotters Value-for-money oriented Social status activities No major responsibilities City prone Big spenders Personality Independent/Opinion leader Brand and fashion conscious Very sensitive to advertising Competitive Always searching for the newest trends and products representative of their social image Influenced by peers Outgoing Opinion formers Street-smart (Information collected from EIT Inc, 2005; Frankie, 2011; Fashion TV, 2011) Objectives Overall Business Objective The overall business objective of this event is to be recognised both nationally and internationally as the leading event of its kind and to stimulate activity across the retail, clothing, footwear, and creative sectors. SMART marketing objectives The objectives below conform to marketing standards of setting objectives which are Specific, Measurable, Achievable, Results oriented, and Time bound (Skildum-Reid et al, 2007). To obtain international and national prime time stories on channel FTV, various advertisements on national radio station NOVA, and a major advertising campaign with a colour photo in the magazine Frankie, one month before the event. To increase ticket sales domestically and internationally by 10% compared to the previous years opening runway event. To increase awareness and recognition of the brand LOreal in Australia from 20% to 35% by February 2012. To obtain five more sponsors prior to the event in order to increase funds by $150 000. Marketing Strategies Link to objective Rationale Strategies Measurement mechanism 1 This will achieve a large market penetration in the target markets and will encourage ticket sales before the event 1.1 Provide digital footage of highlights of last years event to various television and radio stations Number of televised stories that use the material 1.2 Create opportunities for video and audio interviews with designers of the event Number of interviews 1.3 Create and distribute press kits to local and international media Quality and acceptance of media kit 2 This will achieve market growth and showcase the event as being popular and well-known 2.1 Release early bird tickets at a discounted price to loyal customers Advance ticket sales and/or revenue, customer database 2.2 Provide online ticket purchases through connection of event website and ticketing company Ticket sales and/or revenue, customer database of event and ticketing company 2.3 Cross-promote with the event designers, singers and dancers through various advertising campaigns Number and quality of cross promotions 3 This will boost ticket sales and product sales before the event due to brand loyalty and recognition 3.1 Offer and provide samples of LOreal products to customers Number and frequency of customer purchases, customer opinion and satisfaction 3.2 Cross-promote event with LOreal advertisements Number, quality and success of cross promotions 3.3 Start an online social page e.g. facebook to discuss the brand/product/event Number of visits/hits/comments/likes/followers 4 This will allow the event to produce better offerings in regards to the exclusivity of the event and will increase the events profile 4.1 Create a sponsorship proposal and press kit that stands out from competitors Acceptance of proposal and number of responses, number of proposals from competitors Action Plan Actions Action Officer Time Frame (months before event) 12 11 10 9 8 7 6 5 4 3 2 Strategy 1.1 Action 1.11 Contact FTV and NOVA representatives to find out deadline Public relations/media team Action 1.12 Collect and compose footage of event and audio interviews Public relations/media team Action 1.13 Send to FTV and NOVA by deadline Public relations/media team Strategy 1.2 Action 1.21 Develop an interview script Public relations/media team Action 1.22 Contact agents of designers or designers directly and set up a meeting to interview Public relations/media team Action 1.23 Collect and condense interview data into clear information Public relations/media team Action 1.24 Send to editor of magazine by deadline along with press kit Public relations/media team Strategy 1.3 Action 1.31 Contact media representatives to find out deadline Public relations/media team Action 1.32 Write media release and information Public relations/media team Action 1.33 Develop press kits to send to magazine Public relations/media team Action 1.34 Send to editor by deadline Public relations/media team Strategy 2.1 Action 2.11 Contact ticketing company to inform them of intention to sell tickets to event, with prices and discharge information Marketing team/Ticketing manager or assistant Action 2.12 Create online flyer to advertise event and early bird discount Marketing team Action 2.13 Send flyer to ticketing company database and event database through both mail and e-mail Administration Strategy 2.2 Action 2.21 Liaise with marketing team of ticketing company about website link Marketing team Action 2.22 Create link within current event website with information and prices of tickets IT team, marketing team, ticketing manager or assistant Strategy 2.3 Action 2.31 Develop a partnership agreement Public relations, marketing team Action 2.32 Contact agents and set up a meeting to propose potential partnership  arrangement Public relations, marketing team Action 2.33 Create and edit advertisement/promotion Marketing Action 2.34 Inject cross-promotion into public Marketing Strategy 3.1 Action 3.11 Contact LOreals sales and marketing team and set up a way to receive an x amount of samples Sales and Marketing team Action 3.12 Contact various intermediaries such as makeup counters, hair salons, fashion magazines to inform about samples Marketing team Action 3.13 Distribute samples to intermediaries to implement in marketing campaigns Sales and distribution team Strategy 3.2 Action 3.21 Develop a partnership agreement Public Relations, marketing team Action 3.22 Contact LOreals marketing team and set up a meeting to propose potential partnership  arrangement Public Relations, marketing team Action 3.23 Create and edit advertisement/promotion Marketing Action 3.24 Inject cross-promotion into public Marketing Strategy 3.3 Action 3.31 Create a user login on facebook.com IT Team Action 3.32 Organise and disseminate information and media on profile page with links to several other pages and event website IT Team, media team, marketing team Strategy 4.1 Action 4.11 Write a marketing plan Marketing team Action 4.12 Identify competitors and sponsors Marketing team Action 4.13 Write a sponsorship proposal and press kit Marketing team Action 4.14 Send sponsorship proposal and press kit to identified sponsors Public relations, marketing team Contact sponsors and decide on sponsorship funds Marketing team Marketing Budget The marketing budget was based on a calculation of 20% of the total price of 4000 tickets sold in 2011. Ticket cost Total $79 x 4000 $316 000 $59 x 4000 $236 000 $39 x 4000 $156 000 $708 000 Average $236 000 Total Marketing Budget after 20% $47 200 Objectives Need Description/Calculation of Costs Cost 1 Advertising/publicity costs for Frankie and NOVA and FTV Frankie: 3 x Full Page, W: 210mm x H: 275mm @ $4670 each (Frankie, 2011) $14010 NOVA: 20 x 30 second ads over 7 days, 6am 6pm prime time @ $50 each (Australia Trade, 2010) $1000 FTV: 10 x 15 minute shows over 7 days, 7pm 7:15pm @ $20 cost per thousand (CPM) of 50, 000 (Boone, 2009) $10 000 Total $25 010 2 Mailing costs 5,000 x letters @ $58c each (Australia Post, 2011) $2900 Ticketing commission 4000 tickets x 10% increase = (4400 x $79) x 0.01 commission $3476 Printing costs 2 colour copy flyers per A4 page = 2500 x A4 pages @ $38c each (Officeworks, 2011) $950 Website development Overall cost (Cmather, 2011) $495 Website maintenance 30 hours @ $30 per hour (Cmather, 2011) $900 Advertising and promotion for cross-promotion with designers Billboard 6m x 3m for 8 weeks @ $1500 per 4 weeks and a one off $300 installation cost à · 2 (halves with cross-promotion) (GOA Billboard, 2011) $1650 Total $10 371 3 Samples cost 20 000 samples @ $10c each $2000 Advertising and promotion costs for cross-promotion with LOreal 25 x national light weight bus stop advertising @ $690 each à · 2 (halves with cross-promotion) (Adshel, 2011) $8 625 Social Website Usage is free $0 Distribution costs Covered by LOreal $0 Total $10 625 4 Printing costs 20 pages x 100 booklets = 2000 colour pages @ 0.38c = $760 + 100 booklets x $1.95 each for binding = $195 (Officeworks, 2011) $955 Mailing costs $1.20 x 100 booklets (Australia Post, 2011) $120 Total $1175 Overall total $47 181 Monitoring and Evaluation Objective 1: Measurement and evaluation mechanisms include: Number of televised stories that use the material Number of gained interviews Quality and acceptance of media kit Continuous partnerships with companies Objective 2: Measurement and evaluation mechanisms include: The difference in the number of ticket sales and/or revenue collected in prior year and current year Customer database increase and loyalty Number and quality of cross promotions Employee satisfaction LMFF annual review statistics Objective 3: Measurement and evaluation mechanisms include: Number and frequency of customer purchases/ LOreal annual review Number and frequency of sample intake Customer opinion, satisfaction, perception, and behaviours through surveys Number, quality and success of cross promotions Number of visits/hits/comments/likes/followers on facebook page Increase in ticket sales for LMFF overall events Objective 4: Measurement and evaluation mechanisms include: Acceptance of proposal Number of responses from sponsorships Number of proposals from competitors to sponsors Number of contracts signed with sponsorships compared to previous years, see appendix 2 Sponsorship funds increase and resource availability Sponsor reliability, efforts made, and perception of event Conclusion and Recommendations The LMFF has repositioned one of its most recently popular events called Fashion Full Stop: Decades of Australian Fashion. This popularity is proven by creative director, Grant Pearce, who stated in previous years, there hasnt been a show on opening night, theres just been a small presentation but this is a major theatrical show (Merhab, 2011). This success has been assisted by creating numerous objectives, marketing strategies, and an action plan that concentrates on increasing advertising, sponsorship and sales. The LMFF needs to continuously check and track the success of their initial objectives and modify or maintain the strategies and actions accordingly. These changes need to directly reflect the target markets and their various needs, wants and demands. Appendix Appendix 1. Appendix 2. Principal and Government partners: Loreal Paris, State Government Victoria Major Partners: Herald Sun, David Jones, Sofitel Luxury Hotels, Pacific Brands, Centralpier Spirit of Docklands, SpecSavers, Paper Stone Scissors, Eye Media, Westfield, City of Melbourne Event Partners: Marie Claire, 565 Lasoo, City of Stonnington, Peroni Italy, Colonial First State Global Asset Management, Woolmark, Sportsgirl Official Product Partners: Champagne Devaux, Yering Station, Lavazza, Lexus, Raffaello, Chambord, Sanpellegrino, Toll Ipec, Nine west, kikki.K, Synergy, Steve Madden Platinum Partners: Chadstone, Deloitte, Victoria Racing Club, Wilson Parking Gold Partners: Middletons, Corrs Chambers Westgarth, Deutsche Bank, MyCatwalk.com, Melbournes GPO, Fashion Weekend Melbourne, Image Box, The Just Group, Collins 234, Nikon, QV Melbourne, Kookai Media Partners: Artichoke, WGSN, Frankie Magazine, Cosmopolitan, Vogue Australia, 3AW 693, FASHIONTREND, FashionTV, Harper Bazaar, Grazia, Nova 100.3FM, InStyle, Madison, Avant Card, Hoyts, Yen