Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott

Electronic Submission Coversheet

Please complete and insert this form as the first page of your electronic submission.
Submit the assignment with attached coversheet electronically through the Wolf E-submission
gateway
Please make sure you keep a copy of your assignment.

Student Details
Student Number

1331907

Email

Marketing
Management

Module Code

e.a.weerawardana@wlv.ac.uk

Assignment Details
Module name

7MK002

For the attention of William Mott

Due date

01-12-2014

Assignment title

Big Skinny case study

All forms of plagiarism, cheating and unauthorized collusion are regarded seriously by the University
and could result in penalties including failure in the unit and possible exclusion from the University. If
you are in doubt, please read the following web page.
Students Declaration
By submitting this assignment I SIGNAL & DECLARE my knowledge and agreement to the following: Except where I have indicated, the work I am submitting in this assignment is my own work and has not
been submitted for assessment in another unit or for any other purpose. This work conforms to the
instructions and submission guidelines as contained in the assessment briefing and the module guide
respectively.
This submission complies with University of Wolverhampton policies regarding plagiarism, cheating and
collusion.
I acknowledge and agree that the assessor of this assignment may, for the purpose of assessing this
assignment:

Reproduce this assignment and provide a copy to another academic staff member; and/or
Communicate a copy of this assignment to a plagiarism-checking service. This web-based service
will retain a copy of this work for subsequent plagiarism checking, but has a legal agreement with the
University that it will not share or reproduce it in any form.

I have retained all assignment drafts, papers, materials and a copy of this assignment for my own
records.
I will retain a copy of the notification of receipt of this assignment.

Contents
1. Executive Summary
.................................................................................................................................. 4
2. Marketing
Audit...............................................................................................................................
......... 5
3. PESTLE analysis and the Macro-Environment
........................................................................................ 5
3.1 Political Factors
......................................................................................................................................
5
3.2 Economic
Factors.............................................................................................................................
....... 6
3.3 Social
Factors.............................................................................................................................
............. 7
3.4 Legal
Factors.............................................................................................................................
.............. 8
3.5 Technological Factors
............................................................................................................................. 9
3.6 Environmental Factors
.......................................................................................................................... 10
4. Porters 5 forces
......................................................................................................................................
10
4.1 Threat of new entrants
.......................................................................................................................... 11
4.2 Determinants of buying
power.............................................................................................................. 11
4.3 Determinants of substitution threats
..................................................................................................... 11
4.4 Determinants of supplier power
............................................................................................................ 11
5.
Competitors.......................................................................................................................
...................... 12

6. Internal Analysis
.....................................................................................................................................
13
6.1 The
Company..........................................................................................................................
.............. 13
6.2 SWOT Analysis
...................................................................................................................................
13
6.3 SWOT / TOWS Analysis for Big-Skinny
............................................................................................. 14
6.4 Fixing SWOT issues
............................................................................................................................. 15
7.
Mission............................................................................................................................
........................ 15
8. Vision
.......................................................................................................................................
............... 15
9. Segmentation, Targeting and Positioning
............................................................................................... 15
9.1
Segmentation.....................................................................................................................
.................... 15
9.2 Targeting
.......................................................................................................................................
........ 17
9.3 Positioning
.......................................................................................................................................
..... 18
9.4 Perceptual Map
.....................................................................................................................................
19

Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott

10. Strategic Objectives

.............................................................................................................................. 20
10.1 Big Skinny Strategy
............................................................................................................................ 20
10.2 Market Objectives and Strategies implementation
............................................................................. 21
10.3 Market Development Strategy
............................................................................................................ 21
11. Marketing mix with 4
Ps...................................................................................................................... 22
11.1 Product
.......................................................................................................................................
......... 22
11.2 Product Attractiveness
........................................................................................................................ 23
11.3 Price
.......................................................................................................................................
............. 24
11.4 Place
.......................................................................................................................................
............. 24
11.5
Promotion.........................................................................................................................
................... 25
11.6 Online
Advertising........................................................................................................................
...... 25
12. Budgeting and Financial Planning
.................................................................................................... 29
13. Sales Forecast for 2015
......................................................................................................................... 31
14. Evaluation Of Success
.......................................................................................................................... 33
15. Conclusion
.......................................................................................................................................
..... 34
Bibliography .....................................................................................................................
.......................... 35
Appendix..........................................................................................................................
........................... 37

Big Skinny Marketing Plan

1. Executive Summary
Year 2010 Big Skinny CEO Kiril Alexandrov wanted to change from retail distribution
and print advertising to the world of online marketing to achieve maximum growth. The retail
sales pitch was an easy one, as Alexandrov focused on the value of the wallet and the
impulsiveness of consumers (Edelman & Kominers, 2011) . Converting this type of sales type
was much harder to do in the world of cyberspace. Bid Skinny centered their online marketing
efforts around display ads, keyword searches, social media and relationships with online
distributers and deep discounted sites such as Amazon and Groupon respectively.
The expansion caused much hardship, as Bid Skinny received negative feedback on the review
website Yelp that stemmed from their Group on experiment. They also faced a glitch in their
online promotion that allowed 4,000 people to order free wallets from their online store. Big
Skinny needs to refocus their online marketing strategy by getting rid of display Ads, refining
keywords searches and severing ties with deep discounted sites. Big Skinny can create value for
their product and manage their orders better by being more selective with who distributes their
product and by keeping the price steady. A more seasonal approach surrounding keyword
searches can create new revenue from those who are looking to make quick and impulsive
purchases. Lastly, by being responsible for who distributes their products, Big Skinny can deliver
their product in prompt and timely manner, which will resolve the majority of customer
complaints against Big Skinny.
To perform a business in a successful manner, marketing plan plays a vital role.
Marketing plan also a part of a bigger business plan. The marketing plan helps the Big-Skinny to
focus its goal and objectives. Prior to design a marketing plan, marketing consultant need to
understand and accumulate enough information about the competitors and the customers so that
marketing consultant can target the right market segment with appropriate strategy. (Nijssen &
Frambach, 2001).

2. Marketing Audit
Marketing audit provides analysis on current position and opportunities of Big-Skinny,
Marketing mix analysis, PESTAL, SWOT and TOWS analysis. Kotler (1977) define marketing
audit as an instrument to judge an organizations overall commitment to a market orientation.
Marketing audit helps in increasing the profitability of the company (Kotler, 1999).

3. PESTLE analysis and the Macro-Environment

PESTLE analysis helps in evaluating and managing more precisely the external factors
that affect the Big Skinny business and describe the environment of a specific market by defining
the influence factors at political, economic, social, technical, legal and environmental levels. And
also this will get greater understanding of the external environment and the market place. The
micro environment for Big Skinny is done through PESTLE analysis.

3.1 Political Factors

Big-Skinny is operating in a globalized environment. The UK market for leather
accessories like wallets, registering an average annual increase of 3.2% since 2003, just below
the EU average of 3.4% over the same period (Mintel, 2008). UK government is very strict on
labeling, identification codes.

Factors

Implication

Probability

Impact

A&B

Stable Government
Increase in taxes

Stability in policy
Selling price of
wallets to increase

3
6

4
-4

12
-24

Import and export

restrictions

Decrease in sales

Change in international
legislations

Impact on company
external operations

Government recognition

Enhances integrity
and customer trust

-5
-3

-35
-18
9

3.2 Economic Factors

Economic factors are of concern to Tesco, because they are likely to influence demand,
costs, prices and profits. One of the most influential factors on the economy is high
unemployment levels, which decreases the effective demand for many goods, adversely affecting
the demand required to produce such goods. These economic factors are largely outside the
control of the company, but their effects on performance and the marketing mix can be profound.
Falling exchange rate
Economic down turn
Purchasing power reduced
Unemployment rate of 6% in October 2014.
Inflation at 1.2% Sep. 14
British GDP growth key services drivers are banking, insurance, and business services.

Factors

Implication

Probability

Impact

A&B

Income distribution in the

country (per capita)

Higher income,
higher buying power

Unfavorable fluctuation in
exchange rates

Price fluctuations

-4

- 24

Global economic turm

Decline in purchasing
power

-6

Extreme competition in the

leather accessory mkt

Decrease in sales

Manufacturing, meanwhile, has declined in importance but still accounts for about 10%
of economic output. Facing burgeoning public deficits and debt levels, in 2010 the
CAMERON-led coalition government (between Conservatives and Liberal Democrats) initiated
a five- year austerity programme, which aimed to lower Londons budget deficit from about 11%

Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott

of GDP in 2010 to nearly 1% by 2015. In November 2011, Chancellor of the Exchequer George
OSBORNE announced additional austerity measures through 2017 largely due to the euro-zone
debt crisis. The CAMERON government raised the value added tax from 17.5% to 20% in 2011.
It has pledged to reduce the corporation tax rate to 21% by 2014. The Bank of England (BoE)
implemented as asset purchase program of 375 billion (approximately $605 billion) as of
December 2013. European Central Bank, but Britain remains outside the European Economic
and Monetary Union (EMU). In economy, however, in 2013 GDP grew 1.4%, accelerating
unexpectedly in the second half of the year because of greater consumer spending and a
recovering housing market. The budget deficit is falling but remains high at nearly 7% and
public debt has continued to increase (T he W o rl d F a ctboo k, 2 014 )

3.3 Social Factors

Various cultural studies noted that the culture has significant impact on the buying
behaviour of the consumers. The culture is the driving force that influences their decisions,
acceptability of technology and adoption of technology (Hofsted, 1991). This has brought
significant social and cultural change in not only United Kingdom but also in other developed
economies.
More interested in products which are less damaging to the environment.
Hand bags and wallets are seen as an expensive to update a style or new look.
Ethical Products
Increase Pollution through Co2 emission by cattle
Lobby groups for animal slaughter in leather manufacturing
Shortages of raw materials for manufacturing leather products

Factors

Implication

Probability

Impact

A&B

Constant change in
social/cultural
environment

Different strategies
should be practise

-5

-30

Change in life styles

innovative product range

Depending on raw
material locally

Lack of raw material

Market leader in wallet

market

Increase in social
demand and
dependability on the
brand

Influence through major

events and media

Increase in sales

12
3

3.4 Legal Factors

Improve the protection of human health and the environment and the enhancement of the
competitiveness i the chemical industry. Various government legislations and policies have a
direct impact on the performance of Big Skinny. For instance, government suggested as
enforceable Code of Practice should be set up banning many of the current practices, such as
demanding payments from suppliers and changing agreed prices retrospectively or without
notice (Mintel Report, 2004). The presence of powerful competitors with established brands
crates a threat of intense price wars and strong requirements for buyers power can limit entry to
this sector with such controls as license requirements and limits on access to raw materials
(Myers, 2004).

15

3.5 Technological Factors

Data Safe Wallets
Increasing role of the internet
Recycled material
Clear travel goods
Design elements
New materials
Due to improving of manufacturing techniques and process could lead to lower prices
and innovation within the market and new products could be a big blow to the industry. And also
the current technological innovations are not important enough to negatively impact on Big
Skinny leather industry. Moreover, the industry requires that the brand has a real presence in
social media due to the young-ness of its consumers.

Factors

Implication

Probability

Impact

A&B

Develop & implement online

social media

Increase in awareness and

sales

49

Continuous technology
developments

Reduce cost and enhance

quality

Multiple product innovations

Caters to the needs and

preferences to UK market

28

Technology level in the

industry

High competitive advantage

36

3.6 Environmental Factors

In 2003, there has been increased pressure on many companies and managers to
acknowledge their responsibility to society, and act in a way which benefits society overall
(Lindgreen & Hingley, 2003). In 2003 the government has intended to launch a new strategy for
sustainable consumption and production to cut waste reduce consumption of resources and
minimise environmental damage (Graiser & Scott, 2004).

4. Porters 5 forces

The above diagram developed by Porter as, Techniques for Analyzing industries and
Competitors (Porter, 1998).

4.1 Threat of new entrants

Factor

Magnitude

Threat of no of new entrants

Very high

Easily copied

High

Low investment to enter

Very high

Wallets with basic features

Low

4.2 Determinants of buying power

Factor

Magnitude

Many players in the market to choose from

High

Various prices to choose from

High

Consider as a basic impulse product

Very high

4.3 Determinants of substitution threats

Factor

Magnitude

Many cheap substitutes available

Very high

4.4 Determinants of supplier power

Factor

Magnitude

Since there are more players in the market, bargaining power is low

Very high

5. Competitors
Arnold Wills Accessories Average wallet price 70. Established in 1946, and claims to
be the United Kingdoms leading manufacturer of accessories, having its own design
team

and

working

closely

with

designer

stores

and

high

street

retailers

( http://www.arnoldwills.co.uk , n.d.).

Dewhurst Dent Average wallet price 30. Company based in Bolton. Its
subsidiary Dents is based in Wilshire and manufactures hand bags, belts and other small
accessories. It also has its own retail outlets (http://www.dents.co.uk , n.d.).

Marlborough Gift Ware Average wallet price 40. manufactures small leather
goods and other related products for the giftware and premium market

Launer Average wallet price 154. Manufactures handbags, wallets and small
leather goods in a factory near Birmingham, the traditional center of leather
goods manufacturing in the UK
( http://www.launer.com , n.d.).

Marks and Spencer (M&S) Average wallet price 19. With 330 non-food outlets is
one of the most popular destinations for bags and leather goods although it has come
under intense competition from discount clothing retailers. Many department stores stock
their

own

brand

of

items

as

well

as

selling

leading

brands

(http://www.marksandspencer.com , n.d.).

Pure Luxurious London Average wallet price 50. Company was conceived in 2009.
Over 50 years experience promoting luxury brands throughout the UK.

6. Internal Analysis
Its very important to do organizations internal analysis to take decisions.
6.1 The Company
Evaluating the companys objectives, strategy, and capabilities helps the company to
indicate the strength of its business model, whether there are areas for improvement and how
well the company fits the external environment.

6.2 SWOT Analysis

The SWOT analysis is the useful way of directing and managing the internal and external factors
that affect the organization. SWOT describes about what the company is at good at, what needs
to be improved, and the other things happening outside the company. SWOT stands for Strengths
(S), Weaknesses (W), Opportunities (O) and Threats (T).

6.3 SWOT / TOWS Analysis for Big-Skinny

Internal Strengths

Internal Weaknesses

Retail distribution experience

Minimum online experience

Thinness and lightness

Lack
of
techniques.

marketing

Machine washable
Water resistant
Differentiated products
External Opportunities

S/O

New fashions every year

Retail distribution experience

and online marketing will give
synergy effect.

Online Marketing
Ethical and green marketing

Thinness and lightness feature

will go with new fashion.

Not having proper business

strategy.
poor
advertising
expansion strategy
W/O

and

Professional to handle online

operation.
Expert to handle marketing
division.

UK small accessories 259

million
Machine washable will be
highlighted in ethical and green
marketing.
Less slipperiness interior will
be unique feature to reach 259
million market.

Recruit qualified person to

handle business and
advertising strategies.

External Threats

S/T

W/T

Exporters from China and India

with latest technology.

With innovative differentiated

products to compete against
Chinese and Indian products.

Create competencies to
overcome the poor online
experience.

Offer versatile product to meet

customer expectation.

Expert to challenge the

threats to overcome the
issues.

Changing behaviors of
customers.
Many manufacturers have their
own retail chains.
EU and developing counties
Switch country Manufacturing
sources.

Use Kirils distribution

experience to have a good retail Right resources to challenge
chain.
expansion and advertising.

6.4 Fixing SWOT issues

For the strengths/opportunities, Big Skinny can use word of mouth campaign to
promote the brand. In the case of the weakness/opportunities, the company can come out with
economical version of their products as well as coming out with new features.
And in order to deal with threat issues, Big Skinny can promote positive marketing
campaign against the environmental concerns and make sure competitors dont take over.

7. Mission
Bringing a creative, stylish and unique high quality wallet to the young and mature
through providing a superior customer satisfaction in a profitable and highly efficient manner by
getting 1% market share in 2017.

8. Vision
We believe in step by step progress and dream about a uncompromised modern
production house with creative and innovative products which eventually will become a one
wallet for any & all kind of synthetic leather products and accessories.

9. Segmentation, Targeting and Positioning

9.1 Segmentation
Segment 1: Age 18 25 male (Young Sporty)
Characteristics : This segment of men are very fashion conscious. Its very important to them
that they use the right brands and have the right look. They do not have huge amount of money
to spend on accessories like wallets and to get the right look. They want to look individual and
their selections to reflect who they are, but with their limited budget they have to choose
carefully. They believe that in order to look good its important to have an occasional item that
is more expensive and quality. Sometime they spend highly on a key item to get something that

look superior. They do not care about over spending on an item if it is something that they really
need. These men like to buy their clothes and accessories with cash and will shop in towns,
rather than out of town. They also heavily use internet (Fashion Segments Hand Book, n.d.).

Segment 2 : Age 35 50 Men ( Mature )

Characteristics : Most of the people who belongs to this category are not particular about
brand. At this stage most of the men may be fathers. Spend per purchase is slightly below
average reflecting the fact that quality is not high priority. They favour out of town shopping
canters and probably make trips to retail parks with their family. Purchases are likely to be made
by each family member during these trips. People belong to this type are not experimental in
their choices of their own clothes and accessories and they are not looking for individuality in the
clothes that wear. They do not rate brands or labels importantly when they are choosing what to
buy. Purchases are usually made by credit cards.
In this marketing plan, Big Skinnys market will be segregated in to two segments. They
are the people who are aged at 18 25 youth and people who are aged at 35 50 mature groups
(Fashion Segments Hand Book, n.d.).

9.2 Targeting
Segment 1: Age 18 25 Young male

Fashion Segments Hand Book

United Kingdom total population is 63 million.
Aged 18 25

: 4.3 million (6.77%) (as per the above data).

Target in units : 1% of 4.3 million 43,000 units

Target value

: 43,000 units x 15 - 645,000 (per annum)

Segment 2 : Age 30 50 Mature male

Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott

Fashion Segments Hand Book

United Kingdom total population is 63 million.
Aged 30 - 50

: 3.8 million (6.10%) (as per the above data).

Target in units : 1% of 3.8 million 38,000 units

Target value

: 38,000 units x 25 - 950,000 (per annum)

9.3 Positioning
Segment 1 : Age 18 25 Young male
Less affordability, less electronic cards, change with the trend, less thickness
Ideal type of wallets - BI-FOLD Wallets
Branding : Brand name is Y-Fold ( Bi-Fold for Young)

Segment 2 : Age 35 50 Mature male

High affordability, Use lot of electronic cards, change with the trend, less thickness, sometime
like to keep mobile phone in same wallet.
Ideal type of wallets - TRI-FOLD Wallets, CELLPHONE Wallets
Branding : Brand name is M-Fold ( Tri-Fold for Mature)

9.4 Perceptual Map

High Price
Launer(154)
Arnold wills(70)
Pure luxurious(50)
Dewhurst Dent(30)
Low Qlty

High Qlty
Malborough(40)
M-Fold
M&S(19)
Y-Fold
Low Price

Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott

10. Strategic Objectives

Strategy is aligned with SMART theory.
To gain the market share by 1% in UK market within three years (2017) through penetrating
pricing and loss leader pricing strategy. This objective goes straight with Big Skinnys mission
statement.
1. To achieve a sale of 1.5million in 2015 and an incremental increase 10% year on year.
2. To achieve a sale of Y-Fold of 645,000 by end of 2015 and incremental increase of 10%
2016 and 2017.
3. To achieve a sale of M-Fold of 950,000 by end of 2015 and incremental increase of
10% in 2016 and 2017.
4. Create Brand awareness and execution through online and Bric and Motar promotions to
achieve the above objectives.

10.1 Big Skinny Strategy

In order to achieve above set objectives, market penetration and product differentiation
will be used with Big Skinnys significant competitive advantages.
Big Skinny can uses another strategy of differentiation, than it has to try to offer
products with unique features that customers value. Big Skinny will be able to create brand
loyalty through innovativeness for the products offerings, and thus, price inelasticity on the part
of buyers. Breadth of product offerings, technology, special features or customer service is
popular approaches to differentiation (Porter, 1980).

10.2 Market Objectives and Strategies implementation

Strategy frameworks and structuring tools are keys to assessing the business situation.
Risk and value trade-offs are made explicit, leading to concrete proposals to add value and
reduce risk. Explicit plans for action, including effective planning need to be developed by Big
Skinny as the strategy alternative. From strategy discussed above, big Skinny is likely to be
primary market objectives of focus on market development through partnerships and
diversification through new product development.

10.3 Market Development Strategy

As an expansion strategy entering to new market like UK can serve as a key growth
driver of the companys revenues. Big Skinnys interests in UK to continue growing in due
course, as European market is showing as increase in consumer spending. The UK market is also
demographically high opportunity market.
The success of the market development strategy will be related to three main success
criteria. They are sustainability, acceptability and feasibility. Sustainability will be concerned
with whether a strategy addresses the circumstances in which the company is operating. It is

about the rationale of this expansion of market development strategy. The acceptability relates to
the expected return from the strategy, the level of risk and the likely reaction of customers.
Feasibility will be regarded to whether Bid Skinny has the resources and competence to deliver
the strategy.

11. Marketing mix with 4 Ps

11.1 Product

Entering a new market with an existing product involves in market development (Ansoff,
1957). Big Skinny can highlight its various products with features to enter in to new market. This
diversification of products will show their innovative skills. Big Skinny should improve their
existing product and use market research, product adaptation analysis, and legal review to seek
expansion for the existing products (McDonald, 2007).

Brand name for segment 1 wallet : Y-Fold

Brand name for segment 2 wallet : M-Fold

Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott

As per the above figure its clearly shows that how the leather goods market being
distributed in 2009. Wallets belong to small accessories market and share was 17.6%.

11.2 Product Attractiveness

Big Skinny wallets are

- ultra-thin, flat, superior design and durable material
- special grip, lightweight, water resistant, flexible, Several colors and forms
- 01 year warranty

Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott

11.3 Price
Price for Segment 1wallet Y-Fold : 15
Price for Segment 2 wallet M-Fold: 25
Pricing in the leather and wallet accessories have fallen over the years. Import prices of
leather accessories also reduced since 2004, 3.6% in 2008 and 2% in 2009. In UK the era of
cheap fashion has gone as far as it can go. Retailers have no more scope to reduce prices further.
And other factors such as the weakness of the Pound and price increases from suppliers mean
that prices have been cut by almost as much as they can. The purchasing trend from discount
retailers and super markets will continue, but this will also result in a homogenization of the
market and reduction of choice (Mintel, 2008).
The penetrating pricing will be the suitable and appropriate strategy. It will help Big
Skinny to reach the customers. Since leading competitors are dominating market share with high
price, there will be a scope to get a share by entering with a low price. I have given 2 different
prices for the each segmented brands by considering the segment characteristics and market
behavior.

11.4 Place
Super markets, clothing stores
Agents or whole sale
www.thewholeseller.co.uk
www.fairtradewholesale.co.uk

Department stores

retail outlets (9764 out lets)

Through Internet, www.accessoriesstudio.com

11.5 Promotion
Booth Advertising
Print Advertising
In Personnel Sales
Postcards on restaurants
Departments stores
Retailers
Grocery Multiple stores

11.6 Online Advertising

Although there was an economic downturn in 2010, online advertising continued to
grow with new fashion based websites. Success stories have been dedicated with sites such
as http://www.mywardrobe.com, which only sells online and only sells the latest fashion
clothing and accessories. One reason for the success of this website is their use of wellknown brand names to attract consumers to visit them (CBI Market Survey, 2010). Hence
now UK economy is in upward trend, there are many more opportunities to attract
buyers.

Display Ads distract site users

Product Feeds-To search engines
SEO optimization Words at the bottom of the line
Search Ads Per click
Social Media
Interactive content
On line relationship selling
Social Media
11.7 Options To pursue in digital marketing
New Consumers through Search engines
Existing Customers, through social media and interactive media.
Retail Portals like Amazon and Buy .com
Hence most of the consumers do research products online before they buy; online
marketing has

become very important tool today. There are many ways

to build

business attractively online.

Jan

Feb

Mar

Apr

May

Local listings &

classifieds
Search engine
advertising
Contextual ads
Display ads
Geotargeting
Group buying
Mobile marketing
Social networking
sites
Affiliate marketing
Month wise online advertising plan for year 2015

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Local listings and classifieds Create business listing on listing sites such as City search
to ensure that consumers searching for nearby businesses find ours.

Search advertising Method of placing online ads on web pages, near search engine
results.

Contextual ads Display ads to the next level, by placing them on sites related to my
offerings.

Display ads Probably seen the dancing aliens. Thats a display or banner ad.

Geotargeting Simply means advertising to prospects in specific locations, which would

be very useful.

Group Buying Connect with new customers through programs that offer multiple
buyers, collective purchasing deals.

Mobile marketing Many smart phones and mobile devices provide web browsing,
cameras and video capabilities.

Social networking sites Cultivate new business through social networking sites where
members share their ideas.

Affiliate marketing To get other businesses to drive prospects to my own websites.

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Online PR
Online relationship
communication
Online sales
promotion
Offline Advertising
Outdoor
advertising (print)
PR and publicity
Personal selling

Outdoor advertising Prints, broadcast ads, brochures, posters, leaflets, billboards etc.

PR and publicity Press kits, speeches, seminars, annual reports, company magazines.

Personal selling Sales presentations, sales meetings, fairs, trade shows, events

Business Attractiveness

New fashions every year

Trends towards online sales
Trends towards ethical fashion
Trends towards innovative products
Cost effective manufacturing
Wide range of departmental stores (>800)
Wide range of Retail outlets (>9000)

A substantial risk of failure new business entries to UK market

As per the figure 2 shows above, failure rates are high within the first five years of
starting a business, typically around 40 50%, with the highest failure in the first year. Recent
studies in UK have shown higher survival rates for new ventures in innovative industries like Big
Skinny (Helmers & Rogers, 2010).
There are various reasons why new business fail and close.

12. Budgeting and Financial Planning

Budget planning is a continues process of directing and allocation financial resources to
meet strategic goals and objectives. The result as output from financial planning takes the form of
budgets. The most widely used from of budget is Budgeted Financial Statements. The foundation
for Budgeted Financial Statements is Detail Budgets. Detail Budgets include sales forecasts,
production forecasts, and other estimates in support of the Financial Plan. Collectively, all of
these budgets are referred as the Master Budget.
We can also break financial planning down into planning for operations and planning for
financing. Operating people focus on sales and production while financial planners are interested
in how to finance the operations. Therefore, we can have an Operating Plan and a Financial Plan.
However, to keep things simple and to make sure we integrate the process fully, we will consider
financial planning as one single process that encompasses both operations and financing.

Total promotion budget allocation for the year 2015 - 90,000(6% of the sale)

Break down of the promotion budget is allocated as follows,

Budget split% for the three years (2015 2017)

Budget Category
Advertising

2015

2016

2017

25%

20%

25%

Public Relations

5%

5%

5%

Online promotions

25%

30%

30%

Sales Promotions

15%

25%

20%

Social Media

10%

10%

10%

Personal Selling

20%

10%

10%

Total

100%

100%

100%

Financial Planning is a continues process that flows with strategic decision making. The
Operating Plan and the Financial Plan will both support the Strategic Plan. The best place to start
in preparing a budget is with sales since this is a driving force behind much of our financial
activity. However, we have to take into account numerous factors before we can finalize our
budgets.
Budgeting should be flexible, allowing modification when something changes. For example-, the
following will impact budgeting:

Life cycle of the business

Financial conditions of the business

General economic conditions

Competitive situation

Technology trends

Availability of resources

Budgeting should be both top down and bottom up will work to finalize a budget. We can
streamline the budgeting process by developing a financial model. Financial models can
facilitate what if analysis so we can assess decisions before they are made. This can
dramatically improve the budgeting process.

Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott

One of the biggest challenges within financial planning and budgeting is how do we make it
value-added. Budgeting requires clear channels of communication, support from upper-level
management, participation from various personnel, and predictive characteristics, budgeting
should not strive for accuracy, but should strive to support the decision making process. If we
focus too much on accuracy, we will end-up with a budgeting process that incurs time and costs
in excess of the benefits derived. The challenge is to make financial planning a value-added
activity that helps the organization achieve its strategic goals and objectives.

13. Sales Forecast for 2015

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

43,000
YFold
5000
5000
3000
2000 2000 2000
3000
3000
2000 2000 4000
5000
38,000
MFold
Sales 9000 11000 5000 4000 4000 7000 8000 8000 4000 4000 9000 8000 81000
units
Sales 185000 215000 105000 80000 80000 125000 150000 150000 80000 80000 175000 170000 1595000
value
4000

6000

2000

2000

2000

5000

5000

5000

2000

2000

5000

3000

New year celebration in January.

From last week of January to February 14 wallets sales goes up with Valentines day
celebration.
Last week of June to August Summer sales in UK. People spend on gift items and others
due to half price and discounts offers. This period also summer holidays for university
students. They do part time jobs and spend lot on accessories and gift items.
There are no special events in September and October.
November in UK they celebrate Black-Friday. People do lot of purchases due to special
discount offers.
December Christmas celebration.

th

7000
6000
5000
400
0

Y Fold
M Fold

300
0

2000
1000
0
Jan
Dec

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Y Fold & M Fold sales in units

Above chart shows clearly that the projection forecast of Y-Fold and M-Fold for the
year 2015.
Total projected Y-Fold wallets for the year 2015 are 43,000 units, and value wise its
645,000. Highest forecast of 6000 units planned with Y-Fold for the month of February, align
with Valentines celebration. From end of June to August there are summer holidays in UK.
University students also get their vacation and they do part time jobs and spend on their fashion
and clothing. In November UK people highly celebrate Black-Friday, and they do shopping to
enjoy special discounts and other special offers. 4000 units of Y-Fold are planned in January
with New Year season. In March, April, May, September and October there are no special
events and projected 2000 units of Y-Fold in each month.

Total projected M-Fold wallets for the year 2015 are 38,000 units, and value wise its
950,000. As per the above chart I have projected special forecasts align with special events. In
month of January 5000 M-Folds projected with New Year season. It will be able to maintain the
same sale in month of February also with Valentines celebrations. December also highest sale of
5000 units of M-Folds expected with Christmas season and annual bonus. Next highest sales of
M-Fold 4000 units projected in month of November align with Black-Friday. In month of July
3000 units of M-Folds planned for the Fathers Day celebration. Maintain same sale of 3000
M-Folds in month of August with summer holiday shopping season. Since there are no special
events in March, April, September and October I have planned to maintain sale of 2000 units
each month.

14. Evaluation Of Success

There are various dimensions of success like productivity, profitability and growth.
Growth can be measured in terms of market share of the product or company Big Skinny. If there
is a growth in market share of the Big Skinny, its indicates the Big Skinny is growing as
compared to the competitors. A company only gaining market share does not indicates that the
company is doing well until and unless they are productive and profitable (Baldwin & Gellatly,
2003).
In this case Big Skinny should evaluate their performance every year with the forecasted
outcome and objective that they want to achieve. Behind the marketing plan the company has to
do significant amount of investment. And also the company has to measure the return on this
investment in order to see whether the investment is generating expected income. At the same
time company should also measure whether their market share is increasing as compared to the
market share of the competitors. The Big Skinny should evaluate their performance at regular
interval and change their strategies if the expected result is not achieved.

15. Conclusion
The success of the Big Skinny shows how far the branding can come in moving beyond
splashing ones logo on a billboard. It had fostered powerful identities by making their marketing
concept into a virus and spending it out into the culture via a variety of channels.
As entering to a mew market in a rapidly changing business environment with a high
competitors pressure Big Skinny have to adopt new expansion strategies or diversified the
existing, in order to enter to UK market. The company must constantly adapt to the fast changing

circumstances. Strategy formulation should therefore be regarded as a process of continuous

learning, which includes learning about the goals, the effect of possible actions towards these
goals and how to implement and execute these actions. The quality of a formulated strategy and
the speed of its implementation will therefore directly depend on the quality of Big Skinnys
cognitive and behavioural learning processes.
Big Skinny should analyse its strategies and implemented at various levels. These
different levels of strategy should be related and mutually supporting. Big Skinnys strategy at a
corporate level defines the businesses in which Big Skinny will compete, in a way that focuses
resources to convert distinctive competence into competitive advantage.

Bibliography
http://www.arnoldwills.co.uk

n.d.

[Online]

Available at: http://www.arnoldwills.co.uk

http://www.launer.com

n.d.

[Online]

Available at: http://www.launer.com Ansoff, I., 1957. Strategies for diversification. Harvard Business Review.
Baldwin, J. & Gellatly, G., 2003. Innovation Strategies and Performance in small firms.
Massachusetts: Edward Elgar.
CBI Market Survey, 2010. The Luggage and leather good market in UK. [Online]
Available

at:

http://www.cbi.eu/system/files/marketintel/201020-

20luggage20and20leather20goods20-20United20Kingdom2.pdf
Edelman, B. & Kominers, D., 2011. Online marketing at Big Skinny, s.l.: Harvard Business
School.
Fashion

Segments

Available

Hand

Book,

n.d.

Fashion

at:

Segments

Hand

Book.

[Online]

http://www.experian.co.uk/assets/business-

strategies/brochures/fashion_segments_handbook_males_small[1].pdf
Graiser, A. & Scott, T., 2004. Understanding the dynamics of the supermarket sector. The
Secured Lender, November/December, 60(6), pp. 10-14.
Helmers, C. & Rogers, M., 2010. Innovation and the survival of new firms in UK. Review of
industrial organization, Volume 36:3, pp. 227 - 248.
Hofsted, G., 1991. Cultural Dimensions. Human Resource.
http://www.dents.co.uk
Available at: http://www.dents.co.uk

n.d.

[Online]

Marketing Management 7MK002

University of Wolverhampton Business School
http://www.marksandspencer.com

Student Number : 1331907

Module Leader : William Mott
n.d.
[Online]

Available at: http://www.marksandspencer.com

Kotler, P., 1999. Marketing: How to create, win, and dominate markets. , New York: Simon and
schuster.
Lindgreen, A. & Hingley, M., 2003. The impact of food safety and animal welfare policies on
supply chain management.. British Food Journal, 105(6), pp. 328-349.
MarketLine, 2013. Luggage and leather goods in UK , s.l.: s.n.
McDonald, M., 2007. Marketing Plans. 6th ed. s.l.:Elsevier Ltd.
Mintel Report, 2004. Food Retailing, UK: Retail Intelegence .
Mintel, 2008. Keynote, s.l.: s.n.
Mintel, 2008. Keynote, s.l.: s.n.
Myers, H., 2004. Trends in the food retail sector across Europe. European Retail Digest, Issue
41, pp. 1-3.
Nijssen, E. & Frambach, R., 2001. Creating customer value through strategic marketing plan.,
Berlin: Spriger.
Porter, M., 1980. How competitive forces shape strategy. The McKinsey Quartely, pp. 34-50.
Porter, M., 1998. Techniques for analyzing industries and competitors. s.l.:The Free press.
The World Factbook, 2014. Economy over view of UK. s.l.:s.n.

Marketing Management 7MK002

University of Wolverhampton Business School

Appendix

Student Number : 1331907

Module Leader : William Mott

Marketing Management 7MK002

University of Wolverhampton Business School

Student Number : 1331907

Module Leader : William Mott