Marketing Plan

2011-2012

Stoneage Jeans Co.

40 - A, Off Zafar Ali Rd. Gulberg 5
Lahore, Pakistan.
+92 42 111 245 245
+92 42 111 222 245
info@stoneagejeans.com

Table of Contents

Contents
1.
2.

3.

4.

5.

6.

Executive Summary ............................................................................................................1

Situation Analysis................................................................................................................1
2.1.
BCG Portfolio ...............................................................................................................2
2.2.
Market Needs ..............................................................................................................2
2.3.
The Market ..................................................................................................................3
2.3.1.
Market Trends ......................................................................................................3
2.3.2.
Market Growth......................................................................................................4
2.3.3.
Supply Chain Channels and Logistics ................................................................... 4
2.4.
The Company ..............................................................................................................4
2.4.1.
Mission.................................................................................................................4
2.4.2.
Product Offering ...................................................................................................5
2.4.3.
Differentiation and Positioning .............................................................................. 5
2.4.4.
SWOT Summary ..................................................................................................6
2.5.
Competition..................................................................................................................7
Marketing Strategy ..............................................................................................................9
3.1.
Value Proposition .........................................................................................................9
3.2.
Critical Issues ............................................................................................................ 10
3.3.
Financial Objectives ................................................................................................... 10
3.4.
Marketing Objectives.................................................................................................. 10
3.5.
Target Market Strategy............................................................................................... 10
3.6.
Messaging ................................................................................................................. 11
3.6.1.
Branding ............................................................................................................ 11
Marketing Mix ................................................................................................................... 11
4.1.
Product Marketing ...................................................................................................... 11
4.1.1.
Product Life Cycle .............................................................................................. 11
4.2.
Pricing ....................................................................................................................... 12
4.3.
Promotion .................................................................................................................. 12
4.3.1.
Advertising ......................................................................................................... 12
4.3.2.
Public Relations ................................................................................................. 13
4.3.3.
Direct Marketing ................................................................................................. 13
4.4.
Service ...................................................................................................................... 13
4.5.
Implementation Schedule (Action Plan/Budgets) ........................................................ 13
Controls ............................................................................................................................ 14
5.1.
Implementation .......................................................................................................... 14
5.2.
Keys to Success ........................................................................................................ 14
5.3.
Market Research........................................................................................................ 14
5.4.
Contingency Planning ................................................................................................ 15
Appendix .......................................................................................................................... 16
Sales Forecast ........................................................................................................... 16
6.1.
6.2.
Marketing Expense Budget (Expanded) ..................................................................... 17
6.3.
Contribution Margin (Expanded) ................................................................................. 18
6.4.
Marketing Expense Budget ........................................................................................ 19
6.5.
Contribution Magins ................................................................................................... 20
6.6.
Milestones ................................................................................................................. 21
6.7.
ROI ............................................................................................................................ 22
6.8.
Customers Lifetime Value .......................................................................................... 22

Stoneage Marketing Plan 2011-2012

1. Executive Summary
Stone Age is a brand identified by its progressive, cutting edge borderline funk that has been
inspired by the growing need for an urban youth trend movement. The marketing mix
includes the unique, trendy and attractive products which are produces to meet specific
design philosophy, the pricing strategy, promotions. The analysis of internal and external
strength of the organisation, competitive environment enables the team to propose dynamic
and constructive strategies for the successful compliance of companys objectives and
strategic mission. The marketing strategies are outlined to gain major market share across
Pakistan with distinguished products of apparel and other accessories for young male and
female. It focuses on the Organizational Objectives and Market Proposition.
The forecasted revenues range from a dramatic low of PKR13,425,000 in March 2012 as its
the time when the target market is engaged in their curriculum assessments, to a high of PKR
25,295,000 in June 2012 with they are engaged in extracurricular. This variation is due to the
seasonality of the Product sales
The accomplishment and success of Stoneage will be measured with the capture of market
share in terms of economic value and the increase in the brand value.

2. Situation Analysis
The needs for youth denim is validated and magnified by information that attributes long-term
value to their self confidence. Numerous studies document the direct value of youth
participation in fashion trends. These studies indicate a direct correlation demonstrating
that desire of warring jeans has been completely revolutionized from just jeans to the
statement of freedom. Increasing involvement in social activities, Youth in Pakistan has
developed brand conscious behaviors. Research indicates the economic, social and personal
value of "investing" in the desires of children in a positive and constructive manner avoids the
social and penal system costs that may later result. To meet this need, Stoneage offers an
experience that serves as a personal "Freedom" for Customers through their Products. These
important benefits continue to validate the Stoneage concept of design Philosophy.
Whereas the fast changing customer taste and fashion trends, competition from both low and
high end brands and the development in modern selling and distribution techniques are
building up difficulties and reducing competitive advantages. Therefore, a new range of
appeal and accessories has been launched with the label "Bloodline.

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Stoneage Marketing Plan 2011-2012

2.1. BCG Portfolio
The two products Ranges of Stoneage lies in the respective quadrants as shown in the
matrix below.

STAR

Stoneage Denim

Stoneage
Bloodline

COW

DOG

2.2. Market Needs

Stoneage Jeans Co. is serving their customers with progressive, cutting edge borderline
funk that has been inspired by the growing need for an urban youth trend movement.
We design with an edgy creativity while focusing on modern lines and sleek fits. Each
and every item out of our denim/casual-wear collection has been designed and tailored
with the confident sassy young men and women of today in mind, bringing out their inner
freedom:

TrendyExpressiveHigh qualityConsistencyCustomer Service-

Customers usually have a very high involvement when shopping for clothes. Customers
can but they do not usually perceive significant differences between brands. Their
decisions are based on promotions or word of mouth this is because they are familiar
with that particular brand which in our case is Stoneage. Dissonance Buying
Behavior.

Segment Needs & Corresponding Benefits of Stoneage

Target Market
Students Male

Customer Needs
Jeans that are Stylish

Corresponding Benefits

Stylish

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Stoneage Marketing Plan 2011-2012

(consumer market)

and Fashion Statement

Students Female
(consumer market)

Jeans that are Stylish

and Fashion Statement

Professionals
(consumer market)

Jeans
that
Comfortable
Exclusive

are
and

Rocky
Stylish
Comfortable
Stylish
Comfortable

2.3. The Market

Stoneage offers the perfect denim experiences for the increasing population of youth. It
offers young people the opportunity to express freedom through fashion. These
experiences provide Liberty. A source of increasing self confidence is just one of the
many intangible benefits Stoneage offers.
Stoneage targets the youth and startup professionals from Upper and Middle Class as
its market segment.
Geographic
Urban and Metropolitan cities
Karachi, Lahore, Islamabad, Peshawar, Quetta
Dubai
Demographics
Male, Female
15 35 years
Middle and Upper
More than Rs.60,000
Professional, students
Psychographic
Fashionable, outgoing, achievers
Brand Obsessive and ambitious

Density
Local
International
Gender
Age
Social class
Income
Occupation
Lifestyle
Personality

2.3.1. Market Trends

We stand to benefit from some specific market trends:

Fashion: Increasing awareness and demand for fashion is widening the

market in scope and accelerating growth.
Expression: The comprehension of Fashion industry has been
revolutionized. Now it is taken as a statement of Comfort, Style,
Expression and Freedom.
Demographics: The changing role of women in the society is fast, though
expanding market size fast.
Involvement vs. Differences: Customers usually have a very high
involvement when shopping for clothes and they dont perceive
significant differences between brands.

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Stoneage Marketing Plan 2011-2012

2.3.2. Market Growth
The growth rate of the target markets has been steady over the Last years. 26%
growth in the Men wear and 13.5% in the women wear. Overall growth 24.37%.

2.3.3. Channels and Logistics

Stoneage is a Brand label of Crescent Bahuman Ltd and its products are
channelized to end consumer via Direct Sales. Stoneage has its local outlets in
the major cities, while it is maintaining an international outlet as well, in Dubai.
This is to maintain its exclusiveness.

Supplier CBL

Stoneage
Manufacturing
Unit

Dubai Outlets

Karachi Outlets

Lahore Outlets

Islamabad
Outlets

Peshawar/Quetta
Outlet

2.4. The Company

Stone Age is a brand identified by its progressive, cutting edge borderline funk that has
been inspired by the growing need for an urban youth trend movement. We design with
an edgy creativity while focusing on modern lines and sleek fits. Each and every item out
of our denim/casual-wear collection has been designed and tailored with the confident
sassy young men and women of today in mind, bringing out their inner freedom.
Stone age is a part of Crescent Bahuman Ltd, one of the country's leading denim
exporters boasting a clientele as versatile as Levi's, Mustang, Bensherman and Xpress
Ltd. In less than two years (the first branch opened its doors in March, 2006), Stone Age
has become the leader in how denim trends are dictated in Lahore and Karachi (where
we have four outlets) and we are further venturing into Islamabad, Multan, Sialkot and
Faisalabad. Stone Age is a one-of-its-kind brand as it has recruited the very best denim
design talent in the country to lead the way in creating for the discerning masses, thus
ensuring quality, exclusivity and accredited style.

2.4.1. Mission
Whether inspired by punk rock, go-getting glam, funk or urban street culture,
Stoneage aims to empower the young with a fashion statement to emancipate
and liberate. Dressing up the cool and toning down the convention, Stoneage

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Stoneage Marketing Plan 2011-2012

enhances a trend culture honed in on what the rebels of today crave: street smart
threads on a whole new scale of attitude re-born.

2.4.2. Product Offering

Stoneage

Denim

Men

Bloodline

Women

Man

Jasper
(Straight Low)

Diamond (Slim
Low)

Zircon (Slim
Low)

Pearl (Boot
Low)

Tees

Grabble
(Straight)

Amber
(Straight Low)

Embrald
(Relaxed High)

Garnet (Skin
Fit Jeggings)

Tops

Bottoms

Chino

Women

Accessories

Tops

Bottoms

Glasses

Polos

Polos

Belts

Camisole

Shoes

Woven Shirts

Shoes

Tees

Belts

Caps

Poncho

Bags

Jewelry

Tunic

Glasses

Topaz (Boot
Low)

Tights

Accessories

Scarfs

Jewelry

Mainly Stoneage is a Brand label for denim products, while just to give the ease
of having entire high quality and exclusively designed outfit range under one roof,
Stoneage launched Bloodline last year, which is an auxiliary brand or sub label,
covering entire range of outfits and accessories.

2.4.3. Differentiation and Positioning

Stoneage focus on the design philosophy. Its Market Positioning is amongst the
niche brands in Pakistan. It stands as a Fashion statement expressing Freedom
and ruggedness.

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Stoneage Marketing Plan 2011-2012

Positioning MAP
Levi's
Price (Rs)

Stoneage
Outfitters
Crossroad
Bloodline
Unbranded
Levi Signature

Quality

Design

2.4.4. SWOT Summary

The following outlines the most significant strengths and weaknesses internal to
Stoneage, and the opportunities and threats that exist in our environment. Our
objective is to deploy our strengths to score benefits of the opportunities, develop
those areas that are weak, and devise plans to confront threats.

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Stoneage Marketing Plan 2011-2012

Strengths

Weaknesses

Well defined and Realistic Brand Image

Motivated Leadership
Adaptable to changing times
The Goodwill in the Market of the Company
Efficiently managed resources
Prime locations within the city
Proper planning in the placement of the Brand
Increasing frequency of customers
Producing for Key competitors

Improper forecasting of demand

High infrastructure expenditure
Limited Outlets
High Price
Frequent shifts in the fashion and trends

SWOT
Encourage Innovation
Development of employees by providing training
Reduction in the time between manufacturing the
product
Setting up of new stores in new locations
Providing seating facilities in the store
More emphasis on women apparel

Opportunities

Economic Slowdown due to varied factors

Unexpected Events
Clowning of process by competitors
Emergence of new fashion trends which could result
in loss of present stock
Shift in the customer preferences
Emergence of new Brands

Threats

2.5. Competition
Stoneage has a market share of 12 % of its targeted market. A number of local and
foreign Brands offering Denim experiences are in the Pakistan Market. Every brand has
its respective positioning strategy. None of these Brands offers the extensive range
of Jeans with experience of Freedom. Some brands do, however, offer specific attributes
which customers find attractive. This is particularly true for those who seek a higher level
of competition. Some of the competitor brands are Levi's, Outfitter, Crossroad, etc. Most
of Stoneage competitors are the clients of Crescent Bahuman Ltd., as it designs and
produces their products as well.

Levis Levis is a foreign Brand and has 32% market share in our target market. It positions
itself as a Brand with a product line that is Comfortable and with Adventurous Attitude.

Crossroads Crossroads is a local brand and has approx. 8% market share in our target
market. It is positioning itself as a product line which lies somewhere between the image of
Attitude and Fun.

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Stoneage Marketing Plan 2011-2012

Outfitters It is a Local brand with 7% market share in our target market. It is positioning
itself as a Fun product.
A Quality Comfort/Brand Image matrix of potential competitors is as follows.

Comfort
Levi's 32%

Stoneage 12%

Fun

Attitude
Outfitters
7%

Crossroads
8%

Quality
Following is the Target Market share Distribution Chart.

Targeted Market
12%
41%

Stoneage
32%

Levi's
Outfitters
Crossroads

8%

7%

Others

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Stoneage Marketing Plan 2011-2012

3. Marketing Strategy
Stoneage strives to be the premier and stylized provider of denim experiences for youth in
the areas covered.
The marketing strategy efforts to successfully converse the unique value and philosophy of
the brand. This strategy redefines the focus from the "cost" problem to the benefits of
exclusive products. The marketing strategy will carry on to recognize the requirements of the
market and communicate with them in the most positive and effective manner possible.
Current efforts continually endeavor to understand how Stoneage can maintain the quality
and integrity of the Brand within the finite financial resources. This challenge is everincreasing. As costs carry on increasing in a number of areas, the expectations and demands
of our customers do as well. Stoneage is constantly working to improve the products through
enhancements and changes in its arrangement and implementation. Excellence in Quality
and efficiency are just two goals of these transformations.
The growth stratagem is based on constant attention to the quality of the products in
combination with identifying opportunities to develop the distribution wherever possible.
Recent penetration in key areas, such as Islamabad and Rawalpindi, present complex
challenges for the entire business.

3.1. Value Proposition

Stoneage does much more than simply provide apparel with quality and style to the
youth, it provides the significant benefits of expressing, with distinguished
appearance, liberating inner self and empowering youth with the confidence to take
initiative, that are associated with individuals involvement in economic, social and
professional activities. These benefits value higher as the value we ask for the
brand. Stoneage keeps itself amongst the high end brands with similar products, in the
market, keeping itself a bit different by its design philosophy. Primarily, the marketing
strategy made and implemented in the past few years, have raised the brand value
amongst the top brand. But now Stoneage needs to distinguish itself and exploit the
uniqueness of the brand.

Benefits

Price
More for More

More for Same

STONEAGE

More for Less

Same

Less for Less

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Stoneage Marketing Plan 2011-2012

The whole marketing mix of Stoneage is designed in away to set high quality and style
standards in the mind, customers are convinced that what they get is more then what
they pay.
The new endeavor should be to set an image in the minds of the customers about the
importance of Being Pakistani and Buying Pakistani and that our brands can outshine
internationals ones.

3.2. Critical Issues

Our strengths are impressive. Our weaknesses are identified and have potential
solutions. Stoneage could be described as in a "speculative" situation. We are presented
with numerous opportunities and also have threats that present a level of risk. However,
we have a chance to experience large returns on our efforts if we can continue to
capture the entire market share of the targeted segment and are not negatively impacted
by the alternative products in our market. We are well positioned in the market. We have
the ability to continue to offer the greatest value and we take advantage of our
economies of scale.
The critical issues include the following:

Continuing to offer products that are perceived to be positive, enriching, and

affordable as compared to the alternatives.
Comprehending customers rapidly changing preferences.
Portraying the acceptable brand image and the design philosophy.

3.3. Financial Objectives

1. Raise Contribution Margin to a minimum level of $45,000,000 within the next
fiscal year.
2. Double the Brand Value within next two years.
3. 15% reducing in Production and Direct Sales Costs.

3.4. Marketing Objectives

The objective is to provide quality and stylish products with this valuable experience of
exclusiveness, liberty and inner freedom to the youth. The design philosophy of
Stoneage is unique and requires stimulated exploitations.
1.
2.
3.
4.

We need to expand and penetrate into the market in major cities of Pakistan.
We need to establish the brand as trend setters.
We need to position the brand in the youth mind as the exclusive, liberators.
We need to understand the changing preferences and tastes of the market.

3.5. Target Market Strategy

Youth are the major consumers of Denim Products, therefore, the target market
for Stoneage continues to be youth, who are involved in educational, social and startup
professional activates and located in major Metro Cities. To increase the share Target
Market Stoneage need to focus on their needs and the positioning they have for the
brand. Stoneage is at the growth stage; therefore it requires a huge promotion, to get
lime light. This promotion will not be persuasive at all. On the other hand it will exploit
the brands exclusiveness.

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Stoneage Marketing Plan 2011-2012

3.6. Messaging
The core message of Stoneage is one of value:
Stoneage design philosophy is to empower the young with a fashion statement to
emancipate and liberate.

3.6.1. Branding
The Stoneage brand communicates the complete design philosophy, building up
an outstanding fashion statement. The brand embodies the values that we
believe and focuses on bringing out the Inner freedom and self confidence in the
youth.
The Stoneage branding ranges from glossy images in Fashion magazines,
Branding Ramp walks and gigs to OOH. Traditionally almost all fashion labels do
this. To outstand and position Stoneage above all, a campaign in different
educational institutions must be launched, in a distinctive way.
Target Market Messaging
Market Segments
Men
Women

Messaging
Dare to Wear
Wear Freedom Statement

4. Marketing Mix
Stoneage premium quality and style designs market itself as one of the leading fashion
statement. Costs of the production has been reduced, despite of the fact that the brand equity
increases the retail price. Stoneage developed a complete distinctive method of Fashion
Brand Marketing.

4.1. Product Marketing

The product itself is a key component to our marketing mix. Our product should be our
best advertisement. In this case even more, because our specialization in denim and
quality can't alone make the brand grow. The style of Stoneage product must be a trend
setter, meet the product philosophy and the design of the products must meet the
changing taste of the youth. The Product Life Cycle is in the Growth stage.

4.1.1. Product Life Cycle

Stoneage sits in the region where it is still growing. This is because it is a new brand
launched in 2004. It is still gaining relative market share. It has few competitors. It has
untouched potential markets that it needs to penetrate. Investments are higher as
Stoneage products are at growth.

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Stoneage Marketing Plan 2011-2012

4.2. Pricing
Stoneage strives to minimize costs on the entire range of products, so that everyone can
afford it.
Stoneage is also maintaining a Factory outlet in Karachi to facilitate those youth who
can't afford latest products.

Our pricing strategy will be based on competitive parity guidelines. We will not
exceed competitors' prices by more than 10%.
Price says a lot about a product. The products that are exclusive and not
available elsewhere in the region will be marked up to meet the demand curve.
We are not afraid of premium pricing a premium product.

4.3. Promotion
Stoneage' promotion strategy is a three-pronged approach of advertising, public
relations and direct marketing to the youth specifically.
Because Stoneage has a limited marketing budget, Stoneage will take a more grassroots approach and leverage PR and volunteers to assist with marketing to our target
audiences.

4.3.1. Advertising
Stoneage will do some traditional promotions, like Photoshoots in Fashion
Magazine, Ramp Walks and OOH in Karachi and Lahore.

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Stoneage Marketing Plan 2011-2012

4.3.2. Public Relations
Stoneage does not have excess advertising budget and will not be advertising
through TVCs. Instead, Stoneage will focus on most distinct and highly-targeted
campaigns to reach Youth where they are most: Educational Institutes. This
campaign will hit the market with the Summer Launch.
Stoneage will organize a series of talent Shows at major Institutions in Karachi,
Lahore, Islamabad, Peshawar and Quetta and a mega final event in Lahore, with
a media partner. The theme of the series of these events, is "Express your
Freedom". Stoneage believes that every individual bares distinctive
characteristics, so the participants are incomparable. The most distinctive
individuals or groups will be selected, to participate in the Mega event. The
judgments will be done by the brand ambassadors respective to their industries.
All events to be organized at the institution will be with the cooperation of the
student societies, who will volunteer entire event management sponsored by
Stoneage and Media Partner. The society managed the best event in relationship
(50/50) with minimum budget will get a chance to organize the Mega event.
Selections at institutions will be done by Student Votes through Mobile
Messaging and Stoneage Website with their personal information and identified
through their institution name and IDs.
These events will seek Musical and Rampwalks talents.

4.3.3. Direct Marketing

The Data that will be gathered through Votes during "Express your Freedom", will
serve as relative research data. This Data will be used for direct marketing
through, e-mails and sms marketing.
Stoneage will start a customer loyalty card programs. The sign-ups will be
done during "Express your Freedom", on the bases of the data collected through
voting procedure.

4.4. Service
Service is important to our mix. We have an obligation to provide quality products and
cheerful service, effectively and efficiently. Our service goals are simple and easy to
maintain.
We will make plain our policy that we do not accept returns or exchanges without receipt
and proof of product failure. We are in this to make money, as a business, and cannot
afford to give our value to free riders or people with 'buyer's remorse', who choose not to
take responsibility for their purchase(s).

4.5. Implementation Schedule (Action Plan/Budgets)

The table 6.5. identify the key marketing programs. Milestones for Dates and budgets
are specified. We will track plan-vs.-actual results for each of these programs and
evaluate them at our quarterly Board of Directors meetings. If we discover they are not
accomplishing the intended goals necessary, the programs will be revised. For monthly
details see table 6.2.

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Stoneage Marketing Plan 2011-2012

5. Controls
The purpose of the Stoneage marketing plan is to serve as a guide to the staff, the Board of
Directors, and the volunteers to continue to improve the organization and its ability to provide
denim to the youth of the Country. We must take action to accomplish our goals. Failing to
implement even one of the programs could be devastating to our success.

5.1. Implementation
Stoneage marketing team will conduct weekly Milestones Meetings with the
Stakeholders, to review current milestone status, funding status, and status of the actual
programs.
For Stoneage, it's critical that there is consistent focuses on implementation in order to
not only maintain strong programs, but to maintain strong relationships with customers.
The Customers' Lifetime Value table 6.8 shows the long-term value of our average
customers which is testament to the need for focus on implementation of both
milestones and program quality.

5.2. Keys to Success

Expand into new areas within Pakistan, by opening outlet and launching
campaigns.
Leverage the growth offered by the increasing brand awareness.
Identify additional Market segment to support future growth and offer wider
range of Products.
Continue to develop.

5.3. Market Research

An effective Market Research can be developed by gathering Data through Sign Ups
and Blotting during the Event series Express your Freedom proposed for promotion.
Loyalty card subscription is a research method which will be adopted to gain customers
life time value. Whereas previous researches were conducted by following methods.

Initial Question Results -- The staff notes customer responses to the "How did
you hear about us?" question.
76% Answers: from Peers
12% Answers: Fashion Magazine
12% Answers: Rampwalks

We attempt to correlate that with our advertising and promotional activities and referralgeneration programs.

Store Suggestions -- The store suggestion box is another method to gain

additional information from customers. Some of the most productive questions
are:
o What suggestion do you have to improve the store?
o Why did you visit the store today?
o What other products or services would you like to have available in the
store?
Competitive Shopping -- We continually shop other stores. This is to gain
Customers Insight. We visit each store in our market at least once each quarter

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Stoneage Marketing Plan 2011-2012

for competitive information, we visit stores in the Karachi and Lahore markets for
merchandising and buying insight, and we subscribe to every catalog we know
that has alternatives as any part of their product line.

5.4. Contingency Planning

The following lists, in order of probability beginning with the highest potential for change
that will impact this marketing plan, the future of Stoneage:

Major philosophy shift regarding the use changing customer choices.

The rapid growth of one of the alternative brand that significantly reduces our
market share and our ability to operate.

Page 15

Appendix
6. Appendix
6.1. Sales Forecast
Sales Forecast
Sales
Stoneage
Denim Men
Collection
Stoneage
Denim
Women
Collection
Bloodline
Men
Collection
Bloodline
Women
Collection
Total Sales

Direct Cost of
Sales
Stoneage
Denim Men
Collection
Stoneage
Denim
Women
Collection
Bloodline
Men
Collection
Bloodline
Women
Collection
Subtotal
Direct Cost of
Sales

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

2
6
%
7
2
%

PKR17,500,00
0

PKR16,600,00
0

PKR14,600,00
0

PKR12,200,00
0

PKR11,900,00
0

PKR12,200,00
0

PKR14,300,00
0

PKR12,200,00
0

PKR10,000,00
0

PKR9,500,000

PKR18,000,00
0

PKR19,000,00
0

PKR1,250,000

PKR1,200,000

PKR1,150,000

PKR1,200,000

PKR1,400,000

PKR1,600,000

PKR1,800,000

PKR2,500,000

PKR3,200,000

PKR4,000,000

PKR4,500,000

PKR4,200,000

0
%

PKR1,500,000

PKR1,400,000

PKR750,000

PKR600,000

PKR500,000

PKR150,000

PKR100,000

PKR55,000

PKR25,000

PKR20,000

PKR200,000

PKR1,700,000

7
6
%

PKR75,000

PKR50,000

PKR45,000

PKR65,000

PKR95,000

PKR150,000

PKR185,000

PKR220,000

PKR200,000

PKR300,000

PKR320,000

PKR395,000

PKR20,325,00
0

PKR19,250,00
0

PKR16,545,00
0

PKR14,065,00
0

PKR13,895,00
0

PKR14,100,00
0

PKR16,385,00
0

PKR14,975,00
0

PKR13,425,00
0

PKR13,820,00
0

PKR23,020,00
0

PKR25,295,00
0

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

PKR5,600,000

PKR5,000,000

PKR5,000,000

PKR4,500,000

PKR4,400,000

PKR4,500,000

PKR5,000,000

PKR4,500,000

PKR3,900,000

PKR2,500,000

PKR7,000,000

PKR8,000,000

PKR1,040,000

PKR1,040,000

PKR1,040,000

PKR1,040,000

PKR1,040,000

PKR1,040,000

PKR1,540,000

PKR1,040,000

PKR2,090,000

PKR2,900,000

PKR2,600,000

PKR2,700,000

PKR1,200,000

PKR1,200,000

PKR700,000

PKR500,000

PKR450,000

PKR135,000

PKR95,000

PKR54,000

PKR24,700

PKR19,500

PKR185,000

PKR900,000

PKR55,000

PKR45,000

PKR45,000

PKR50,000

PKR57,000

PKR85,000

PKR95,000

PKR120,000

PKR120,000

PKR145,000

PKR150,000

PKR175,000

PKR7,895,000

PKR7,285,000

PKR6,785,000

PKR6,090,000

PKR5,947,000

PKR5,760,000

PKR6,730,000

PKR5,714,000

PKR6,134,700

PKR5,564,500

PKR9,935,000

PKR11,775,00
0

Page 16

Appendix
6.2. Marketing Expense Budget (Expanded)
Marketing Expense Budget
Jul
Pay-PerPKR43,500
Click
Direct
PKR1,300,000
Marketing
Public
PKR29,000,000
Relations
Photoshoots
PKR400,000
Monthly
PKR0
Fashion
Magazine
OOH
PKR500,000
Summer
Campaign
OOH Winter
PKR0
Campaign
-----------Total Sales
$31,243,500
and
Marketing
Expenses
Percent of
153.72%
Sales

Aug
PKR43,500

Sep
PKR43,500

Oct
PKR43,500

Nov
PKR43,500

Dec
PKR43,500

Jan
PKR43,500

Feb
PKR43,500

Mar
PKR43,500

Apr
PKR43,500

May
PKR43,500

Jun
PKR43,500

PKR1,200,000

PKR1,200,000

PKR1,200,000

PKR1,200,000

PKR1,200,000

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0
PKR0

PKR0
PKR0

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR1,400,000

PKR500,000

PKR500,000

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR500,000

PKR500,000

PKR500,000

PKR0

PKR0

PKR500,000

PKR500,000

PKR500,000

PKR500,000

PKR500,000

PKR500,000

PKR0

PKR0

PKR0

-----------$1,743,500

-----------PKR1,743,500

-----------PKR2,443,500

-----------PKR2,443,500

-----------PKR2,443,500

-----------PKR1,243,500

-----------PKR1,243,500

-----------PKR1,243,500

-----------PKR1,243,500

-----------PKR1,243,500

-----------PKR1,943,500

9.06%

10.54%

17.37%

17.59%

17.33%

7.59%

8.30%

9.26%

9.00%

5.40%

7.68%

Page 17

Appendix
6.3. Contribution Margin (Expanded)
Contribution Margin
Jul
$20,325,000
$7,895,000

Aug
$19,250,000
$7,285,000

Sep
$16,545,000
$6,785,000

Oct
$14,065,000
$6,090,000

Nov
$13,895,000
$5,947,000

Dec
$14,100,000
$5,760,000

Jan
$16,385,000
$6,730,000

Feb
$14,975,000
$5,714,000

Mar
$13,425,000
$6,134,700

Apr
$13,820,000
$5,564,500

May
$23,020,000
$9,935,000

Jun
$25,295,000
$11,775,000

$250,000

$250,000

$250,000

$200,000

$200,000

$200,000

$250,000

$200,000

$175,000

$185,000

$250,000

$245,000

-----------$8,145,000

-----------$7,535,000

-----------$7,035,000

-----------$6,290,000

-----------$6,147,000

-----------$5,960,000

-----------$6,980,000

-----------$5,914,000

-----------$6,309,700

-----------$5,749,500

-----------$10,185,000

-----------$12,020,000

Gross
Margin
Gross
Margin %

$12,180,000

$11,715,000

$9,510,000

$7,775,000

$7,748,000

$8,140,000

$9,405,000

$9,061,000

$7,115,300

$8,070,500

$12,835,000

$13,275,000

59.93%

60.86%

57.48%

55.28%

55.76%

57.73%

57.40%

60.51%

53.00%

58.40%

55.76%

52.48%

Marketing
Expense
Budget
Pay-PerClick
Direct
Marketing
Public
Relations
Photoshoots
Monthly
Fashion
Magazine
OOH
Summer
Campaign
OOH Winter
Campaign

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR43,500

PKR1,300,000

PKR1,200,000

PKR1,200,000

PKR1,200,000

PKR1,200,000

PKR1,200,000

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR29,000,000

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR400,000
PKR0

PKR0
PKR0

PKR0
PKR0

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR700,000

PKR0
PKR1,400,000

PKR500,000

PKR500,000

PKR500,000

PKR0

PKR0

PKR0

PKR0

PKR0

PKR0

PKR500,000

PKR500,000

PKR500,000

PKR0

PKR0

PKR0

PKR500,000

PKR500,000

PKR500,000

PKR500,000

PKR500,000

PKR500,000

PKR0

PKR0

PKR0

-----------$31,243,500

-----------$1,743,500

-----------PKR1,743,500

-----------PKR2,443,500

-----------PKR2,443,500

-----------PKR2,443,500

-----------PKR1,243,500

-----------PKR1,243,500

-----------PKR1,243,500

-----------PKR1,243,500

-----------PKR1,243,500

-----------PKR1,943,500

153.72%

9.06%

10.54%

17.37%

17.59%

17.33%

7.59%

8.30%

9.26%

9.00%

5.40%

7.68%

($19,063,500)

$9,971,500

$7,766,500

$5,331,500

$5,304,500

$5,696,500

$8,161,500

$7,817,500

$5,871,800

$6,827,000

$11,591,500

$11,331,500

-93.79%

51.80%

46.94%

37.91%

38.18%

40.40%

49.81%

52.20%

43.74%

49.40%

50.35%

44.80%

Sales
Direct Costs
of Goods
Costs
of
Goods
Cost
of
Goods Sold

Total Sales
and
Marketing
Expenses
Percent of
Sales
Contribution
Margin
Contribution
Margin
/
Sales

Page 18

Appendix

6.4. Marketing Expense Budget

Marketing Expense Budget
FY 2012
PKR522,000

Pay-Per-Click
Direct Marketing
Public Relations
Photoshoots

PKR7,300,000

Monthly Fashion Magazine

OOH Summer Campaign
OOH Winter Campaign

PKR7,000,000

PKR29,000,000
PKR400,000
PKR3,000,000
PKR3,000,000
-----------PKR50,222,000
24.49%

Total Sales and Marketing Expenses

Percent of Sales

Marketing Expense Budget

57.74%

14.54%

13.94%
5.97%

1.04%
Pay-Per-Click

5.97%

0.80%
Direct
Marketing

Public Relations

Photoshoots Monthly Fashion OOH Summer

Magazine
Campaign

Marketing Expense Budget

OOH Winter
Campaign

Appendix
6.5. Contribution Margins
Contribution Margin
FY 2012
Sales

$205,100,000

Direct Costs of Goods

$85,615,200

Costs of Goods

$2,655,000
------------

Cost of Goods Sold

$88,270,200

Gross Margin

$116,829,800

Gross Margin %

56.96%

Marketing Expense Budget

FY 2012

Pay-Per-Click

PKR522,000

Direct Marketing

PKR7,300,000

Public Relations

PKR29,000,000

Photoshoots

PKR400,000

Monthly Fashion Magazine

PKR7,000,000

OOH Summer Campaign

PKR3,000,000

OOH Winter Campaign

PKR3,000,000
------------

Total Sales and Marketing Expenses

PKR50,222,000

Percent of Sales

24.49%

Contribution Margin

PKR66,607,800

Contribution Margin / Sales

32.48%

Appendix
6.6. Milestones
Milestones
Advertising
Product Photoshoots

Start Date
1/1/2011

End Date
31/3/2011

Budget
PKR4,000,000

Monthly Fashion Magazine

1/4/2011

31/12/2011

PKR7,000,000

OOH Summer Campaign

1/3/2011

31/7/2011

PKR3,000,000

OOH Winter Campaign

1/9/2011

31/12/2011

PKR3,000,000

Total Advertising Budget

PR
Lahore Events

Start Date
1/2/2011

End Date
14/8/2011

PKR17,000,000
Budget
PKR11,000,000

Karachi Events

1/2/2011

31/5/2011

PKR5,500,000

Islamabad Events

1/2/2011

31/5/2011

PKR5,500,000

Peshawar Events

1/2/2011

31/5/2011

PKR3,500,000

Quetta Events

1/2/2011

31/5/2011

PKR3,500,000

Total PR Budget
Direct Marketing
SMS Marketing

Start Date
1/7/2011

End Date
31/12/2011

PKR29,000,000
Budget
PKR500,000

E-Mail Marketing

1/7/2011

31/12/2011

PKR300,000

Customer Loyalty Cards

1/7/2011

31/12/2011

PKR6,500,000

Total Direct Marketing Budget

Totals

PKR7,300,000
$54,050,000

Manager
Yasir
Saeed
Yasir
Saeed
Yasir
Saeed
Yasir
Saeed

Department
Marketing

Manager
Yasir
Saeed
Yasir
Saeed
Yasir
Saeed
Yasir
Saeed
Yasir
Saeed

Department
Marketing

Manager
Yasir
Saeed
Yasir
Saeed
Yasir
Saeed

Department
Marketing

Marketing
Marketing
Marketing

Marketing
Marketing
Marketing
Marketing

Marketing
Marketing

Appendix
6.7. ROI
Return On Investment (ROI)
Events
Campaign Details
Total Impressions
Total Program Cost
Response Rate
Conversion Rate
Average Customer Purchase

500,000
PKR67,500,000.00
95.00%
15.00%
PKR5,000.00

Response
Total Responders
Total Buyers
Revenue Generated

475,000
71,250
PKR356,250,000.00

Costs
Cost per Response
Cost per Sale
Total Campaign Profit

PKR142.11
PKR947.37
PKR288,750,000.00

Marketing ROI

27.78%

6.8. Customers Lifetime Value

Customer Lifetime Value

Customer Purchase Forecast:

Average Customer Lifetime (years):
Average number of purchases per year:
Average purchase value:
Average Gross Margin %:
Gross Margin per purchase

20
7
PKR45,000.00
57%
PKR25,632.00

Total Customer Purchases:

PKR3,588,480.00

Customer Acquisition Costs:

Cost of marketing to a potential customer:
Average conversion rate:
Subtotal Cost of attracting customer:
Other one-off costs for first-time customers:

PKR14.76
56%
PKR26.51
PKR25.63

Total Customer Acquisition Costs:

PKR52.14

Unadjusted Customer Lifetime Value:

PKR3,588,427.86

Adjusted Customer Lifetime Value:

Discount Rate:
Net Present Value of Customer Lifetime Value:

12%
PKR372,000.71

Appendix
Work Distribution
Name

Signatures

Adeel A. Siddiqui

Outline Structuring

Situations Analysis

Proof Reading
__________________________

Eruj Nazar Mehmood

Correspondence with Yasir Saeed

Marketing Strategy

Report Compilation (First Half)

__________________________

Mansoor Ahmed Khan

Marketing Research

Action Plan/Budgeting

Controls
__________________________

Rida Idrees

Marketing Mix

Report Compilations (Second Half)

Presentastions
__________________________

10/4/2012

Stoneage Marketing Plan

2011-2012
Submitted by:

About
Brand for Crescent Bahuman Ltd.
Denim and Accessories
12% Market Share of Targeted Market
Segment.
Market growth rate 24.37%

Adeel Amir Siddiqui

Eruj Nazar Mehmood
Mansoor Ahmed Khan
Rida Idrees

Section A (MBA R 2 Yrs)

Faculty:
Samra Shehzad

Mission

Market Needs
Urban Youth Trend
Style
Expression of Freedom
Comfort
High Quality
Consistency
Customer Service

Aims to empower the young with a fashion

statement to emancipate and liberate

Target Market

Direct Sales Channel

Geographic

Density

Urban and Metropolitan cities

Local

Karachi, Lahore, Islamabad, Peshawar, Quetta

International

Dubai

Gender

Male, Female

Age

15 35 years

Social class

Middle and Upper

Income

More than Rs.80,000

Occupation

Professional, students

Lifestyle

Fashionable, outgoing, achievers

Personality

Brand Obsessive and ambitious

Supplier CBL
Demographics

Stoneage
Manufacturing
Unit

Psychographic

Dubai Outlets

Karachi Outlets

Lahore Outlets

Islamabad Outlets

Peshawar/Quetta
Outlet

10/4/2012

Competitors

Competitors Brand Image Portfolio

Comfort

Levis
Outfitters
Crossroads

Levi's 32%

Stoneage
12%

Targeted Market

Fun

12%

Outfitters
7%

41%
Stoneage
32%

Attitude

Crossroads
8%

Levi's
Outfitters
Crossroads

8%

7%

Others

Quality

Differentiation and Positioning

Unique Design Philosophy
Amongst the to top brands in Pakistan
Stands as a fashion statement expressing
freedom and ruggedness
Providing the quality and design that
competes with any international brands at
an affordable price

Differentiation & Positioning

Positioning MAP

Levi's
Price (Rs)

Stoneage
Outfitters
Crossroad
Bloodline
Unbranded
Levi Signature

Quality

Design

Strengths

BCG Portfolio
STAR
Stoneage Denim

COW

Weaknesses

Well defined and Realistic Brand Image

Motivated Leadership
Adaptable to changing times
The Goodwill in the Market of the Company
Efficiently managed resources
Prime locations within the city
Proper planning in the placement of the Brand
Increasing frequency of customers
Producing for Key competitors

Improper forecasting of demand

High infrastructure expenditure
Limited Outlets
High Price
Frequent shifts in the fashion and trends

?
Stoneage Bloodline

DOG

SWOT
Encourage Innovation
Development of employees by providing training
Reduction in the time between manufacturing the product
Setting up of new stores in new locations
Providing seating facilities in the store
More emphasis on women apparel

Opportunities

Economic Slowdown due to varied factors

Unexpected Events
Clowning of process by competitors
Emergence of new fashion trends which could result in loss of
present stock
Shift in the customer preferences
Emergence of new Brands

Threats

10/4/2012

Marketing Strategy
Attempts to successfully communicate
the brands unique value and philosophy
Redirects the focus from the cost to the
benefits
Maintain the quality and integrity
Growth Strategy Identify opportunities
to diversify products and distribution

Eruj Nazar

MARKETING STRATEGY

Critical Issues

Value Proposition

Price
More for Same
STONEAGE

Benefits

More for
More

More for Less

Same

Less for Less

Marketing Objectives
We need to expand and penetrate into
the market in major cities of Pakistan.
We need to establish the brand as trend
setters.
We need to position the brand in the
youth mind as the exclusive, liberators.
We need to understand the changing
preferences and tastes of the market.

Consistently offering products that are

perceived to be positive, enriching, and
affordable as compared to the
alternatives.
Comprehending customers rapidly
changing preferences.
Portraying the acceptable brand image
and the design philosophy.

Customer Buying Behavior

10/4/2012

Customer Buying Behavior

Customers usually have a very high involvement

when Shopping for clothes.
Customers can but they do not usually perceive
significant differences between brands.
Their decisions are based on promotions or
word of mouth this is because they are familiar
with that particular brands which in our case is
Stoneage.

Branding Messages

Target Market Strategy

Buying power
Targets the youth of different colleges and
universities
High income
educated

Design Philosophy
Exclusive
Stylish
Rocky
Liberating

Mens Wear Dare to ware

Womenss Wear Wear Freedom
Women
Statement

Product Offerings
Stoneage

Denim

Rida Idress

MARKETING MIX

Men

Bloodline

Women

Man

Jasper
(Straight Low)

Diamond (Slim
Low)

Zircon (Slim
Low)

Pearl (Boot
Low)

Tees

Grabble
(Straight)

Amber
(Straight Low)

Embrald
(Relaxed High)

Garnet (Skin
Fit Jeggings)

Topaz (Boot
Low)

Tops

Bottoms

Chino

Women

Accessories

Tops

Bottoms

Tights

Accessories

Glasses

Polos

Polos

Belts

Camisole

Scarfs

Shoes

Woven Shirts

Shoes

Tees

Belts

Caps

Poncho

Bags

Jewelry

Tunic

Glasses

Jewelry

10/4/2012

Product Life Cycle (PLC)

Pricing strategy
Our pricing strategy will be based on
competitive parity guidelines. We will not
exceed competitors' prices by more than
10%.
Price
P i says a lot
l about
b
a product.
d
The
Th
products that are exclusive and not
available elsewhere in the region will be
marked up to meet the demand curve.
We are not afraid of premium pricing a
premium product.

Promotions

Advertising
Photoshoots
Fashion Magazines
Ramp Walks
OOH

Advertising
Public Relations
Direct Marketing

Public Relations

Direct Marketing

Series of Events
Express your Freedom
Event Management, Musical and Ramp
Walk Talent Hunt in Educational
Institutions
No Competition
Grande Event on 14th August, 2011

E mails
SMS
Phone Call
Customers Loyalty Card

10/4/2012

Service
Obligation to provide quality products and
cheerful service, effectively and efficiently
Policy of not accepting returns or exchanges
without receipt and proof of product failure

Market Research Tool

Mansoor Ahmed Khan

RESEARCH &
CONTROLS

Milestones & Budgets

Milestones

Present Tools
Store Suggestion
Competitive Shopping

Future Tools
Signups
Event Voting
Customers Loyalty Card

Advertising

Start Date

End Date

Budget

Manager

Department

Product
Photoshoots
Monthly Fashion
Magazine
OOH
Summer
Campaign
OOH
Winter
Campaign
Total Advertising
Budget
PR

1/1/2011

31/3/2011

PKR4,000,000

Yasir Saeed

Marketing

1/4/2011

31/12/2011

PKR7,000,000

Yasir Saeed

Marketing

1/3/2011

31/7/2011

PKR3,000,000

Yasir Saeed

Marketing

1/9/2011

31/12/2011

PKR3,000,000

Yasir Saeed

Marketing

Start Date

End Date

Budget

Manager

Department

Lahore Events

1/2/2011

14/8/2011

PKR11,000,000

Yasir Saeed

Marketing

Karachi Events

1/2/2011

31/5/2011

PKR5,500,000

Yasir Saeed

Marketing

Islamabad Events

1/2/2011

31/5/2011

PKR5,500,000

Yasir Saeed

Marketing

Peshawar Events

1/2/2011

31/5/2011

PKR3,500,000

Yasir Saeed

Marketing

Quetta Events

1/2/2011

31/5/2011

PKR3,500,000

Yasir Saeed

Marketing

PKR17,000,000

Total PR Budget

PKR29,000,000

Direct Marketing

Start Date

End Date

Budget

Manager

Department

SMS Marketing

1/7/2011

31/12/2011

PKR500,000

Yasir Saeed

Marketing

E-Mail Marketing

1/7/2011

31/12/2011

PKR300,000

Yasir Saeed

Marketing

Customer Loyalty
Cards
Total
Direct
Marketing Budget

1/7/2011

31/12/2011

PKR6,500,000

Yasir Saeed

Marketing

Totals

Marketing Expenses Budget

PKR7,300,000

$54,050,000

Controls

Marketing Expense Budget

Implementations must meet Milestones

Marketing ROI 27.78%
Customer
Customerss Lifetime Value PKR375,000
PKR375 000
Competitive Shopping

57.74%

14.54%

13.94%

1.04%
Pay-Per-Click

5.97%

5.97%

OOH Summer
Campaign

OOH Winter
Campaign

0.80%
Direct Marketing

Public Relations

Photoshoots

Monthly Fashion
Magazine

Marketing Expense Budget

10/4/2012

Keys to Success
Expand into new areas within Pakistan, by
opening outlet and launching campaigns.
Leverage the growth offered by the
increasingg brand awareness.
Identify additional Market segment to
support future growth and offer wider
range of Products.
Continue to develop.