EJeans

EJeans Marketing Plan

EJeans Marketing Plan

Raymond Whitney, Pamela Stanback, Jessica Sturkie, Amanda Tate, Cayambritt Small, latrice Singleton, Mahasin Showers & Christine Smallman Group Lead

Strayer University Online Campus

MKT100006016*201003

Principless of Marketing Professor Mark McMullen March 27, 2010

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Abstract

Still need this to be done. Anyone can do it and it only needs to be about one paragraph. Look in the DocSharing tab for the CCI Marketing Plan at the bottom of the list. There is an example there.

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EJeans Marketing Plan Table of Contents The following is an outline of elements to be addressed in CCIs marketing plan. Section o Executive Summary o Situational Analysis o Company Background o Industry background o Mission Statement o New Product Description o Competitive Analysis o Environmental Factors Analysis o Scope of market o SWOT Analysis o Target Markets o Organizational Stakeholder Analysis o Marketing Objectives o Sources of Value 4P Strategy Recommendations o Marketing Communications Plan o Advertising Strategies o Direct Marketing Strategies o Public Relations Strategies Page Number

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o Internet Strategies o Sales Promotion Strategies o Direct Selling Strategies o Challenges Impacting Goal Accomplishment o Research Recommendations o Budget Proposal o Promotional Timetable o Keys to Winning o Barriers to Success o Measurement and Controls Factors and Processes o Feedback mechanism to monitor progress o Evaluation process Concluding Comments

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Executive Summary Founded in 2010 in Washington, DC, E Jeans Company is a designer, manufacturer, and seller of affordable, durable, functional, and stylish denim jeans. E Jeans Companys product line includes sizes and styles to accommodate men, women and children of all sizes and ages. E Jeans Companys products also include accessories such as belts and wallets as well as t-shirts and sweatshirts. E Jeans Company has strong competition in the denim jeans industry through competitors with established names such as Levi and Wrangler as well as designer brands such as Diesel and Calvin Klein. In addition to this competition, stores such as the Gap and Old Navy carry in house product lines, which can accommodate an entire family as well as people of different interests and fashionable tastes. E Jeans Companys mission is to provide a hybrid of designer and economically favorable jeans to an upcoming generation on young adults and students beginning to have footing in the marketplace, as they become parents and future leaders in business and the country as a whole. By targeting a market that is growing (young adults entering into the workplace and secondary education) and will inevitably expand as families are created, E Jeans Company hopes to expand with their customers as they provide an affordable and stylish clothing product that will provide utility, durability and fashion for the whole family.

To obtain and retain success in the industry, E Jeans Company will:

Provide high quality through testing and the use of high quality production materials Keep affordability in the foreground recognizing that selling in quantity and gaining a family based customer will lead to future expansion

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Continue to expand the product line but keep focus on the quality of consistency of our founding and base products

Obtain contracts with department stores and shopping malls to sell our product and have guaranteed retail opportunities.

Continuously change and adapt our product to fit the latest styles and fashions.

Within 3 year E Jeans Company will hold the top position in sales of jeans to the target market among primary jean producing companies. Sales will continue to grow and the product will expand to see a 10% rise in profits yearly with no sacrifice to quality or affordability. The integrated marketing plan enclosed in this report will explain and identify the objectives, focuses, goals, risks, and future successes of the E Jeans company over the following year. The marketing plan will address all levels of marketing including __this needs something_ with primary goal of becoming a leader in the denim jeans market.

Situational Analysis Company Background The E Jeans Company upstart was founded on the minds of college students on the notion of affordable fashion. Entered into a market where stylish, form fitting, and comfortable jeans may be difficult to find and even more difficult to afford, E Jeans Company introduced a product line with superior comfort and fashion at an affordable price, even to todays college students. Being created by individuals of their own target market, E Jeans Company understands the needs and wants of todays 20-30 year old market, as well as the importance of functionality. E Jeans Company strives to maintain success in the industry by giving their

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customers the product they long for at a price they can afford, allowing their customers to move forward with confidence in style.

Industry Background Invented by Jacob Davis and made famous by Levi Strauss, blue jeans have been prevalent in the United States since the late 1800s. During World War II, denim blue jeans gained popularity overseas making them a worldwide product. From the 1950s through the 1980s, jeans in America were a staple of bad boys and rebels as a symbol of defiance and individuality against any authority. It was during this time that jeans became part of most peoples wardrobe and in the mid to late 1980s jeans began to take a turn towards styles and began being worn in people of all walks of society. Today, denim blue jeans are worn by the richest of the rich and the poorest of the poor. Their durability and comfort, as well as their flexibility and utility have become a standard in America being owned my nearly every individual in the country. Mission Statement The mission of the E Jeans Company: E Jeans Company is a clothing line which produces an affordable line of stylish and comfortable jeans aimed at the middle class 20-30 year old market. E Jeans Company will become the leading jean focused producer for their target market within 3 years while maintaining the attributes of function, quality, style, and affordability, which will ensure long lasting success. The Corporate Vision E Jeans Company is to provide students and middle class individuals who are working up the corporate ladder or pushing their way through school, an affordable means of being stylish and comfortable. The comfort and confidence our customers obtain

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will help in gaining the futures they desire by affordable and realistic means which giving them the durability and utility they need. New Product Description E Jeans Company has added childrens sizes of jeans to their product line. With a primary target market of 20-30 year olds, an overlap of young parents to young children is anticipated. Competitive Analysis Denim jean companies of both designer and economic brands are primary competition as E Jeans Company will be manufacturing and selling a product that walks the line between the two. Leading designated primary jean companies such as Levi, Wrangler, and Arizona Jean Company are all economically priced jeans, focused primarily on men. In the designer jean market, companies such as Guess?, Calvin Klein, and Diesel Jean Company lead the way with focuses on both men and women, depending on manufacturer.

Environmental Factors Analysis Social Growing number of young people seeking to be thrifty and remain stylish. Ever present need for stylish comfortable clothes to fit in with friends, co-

workers, co-students, and society as a whole.

Economic

Suffering economy leads to more frugal and functional spending

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Target market is generally lacking in expendable income. As competitors strive to hold market in a weak economy, their prices may reflect a

downward trend.

Technological

Functionality in our product including cell phone pockets will aid a currently

growing and expanding technology driven consumer. Compare shopping available through most search engines will show customer

reviews and price comparisons.

Competitive

Long-term customer retention by competitors with extensive history. Large brand names by competitors with contacts to department and retail chain

stores. Large retail stores and wholesalers in established marketplaces and malls.

Regulatory

Local regulations on importing of products and materials. Foreign regulations on the manufacturing of products. Government exceptions and tax credits for new business start-ups.

Potential government and tax consideration for local production with the creation and development of jobs.

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Scope of the market An affordable, durable, stylish denim jean is the scope of the market. E Jeans Company targets a younger generation on its way up who drive to be thrifty but still hold a stylish and sophisticated appearance. In addition, E Jeans Company strives to build customer loyalty and build a relationship with customers by providing sizes and styles to fit all ages and genders allowing an entire family to clothe themselves through our product line. While the manufacturing, promotion and selling of jeans is the primary objective, additional clothing products such as belts, t-shirts, and accessories will be available to remain competitive in an expanding market and allow a wardrobe to be built and based on E Jeans Company products.

SWOT Analysis Strengths Simple product with limited malfunctions or accidents Strong, young, and hip image to promote product Easily expandable and growing web presence to display and sell product line Country wide distribution Large potential for growth in the industry Large potential to expand product line Established market and successful marketing techniques for product

Weaknesses

Major competitors are strong and established

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Much startup capital needed to spread company name and image nationwide Limited available customer base. New brand to the industry.

Opportunities

Expand product line to include full range of clothing, shoes, and accessories Expand to an international market and begin sale and promotion overseas Open wholesale stores and storefronts Offer non-degree, high interest continuing education courses to appeal to more

adults and generate additional revenue Obtain endorsement by celebrities who fit out target market; especially with

children. Threats Large number of strong established competitors to close out and isolate

competition. Ever growing online marketplace allowing the consumer access to all brands and

styles at lowest possible prices. Difficulty in obtaining successful business in warm weather areas where jeans are

not commonly worn Very large market with similar start-up new jean companies to bring new

competition Change in fashion to limit sale of denim jeans

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Target Markets E Jeans has two target markets that are made up by males and females in their 20s and 30s. The primary target would be would be customers in their early 20s. More people in their early twenties would like the design and the style of the jeans. Our jeans are more appealing to younger generation because of the versatility of the jeans. The next target market would be customers in their middle twenties and early thirties. We have the jeans that are casual when then they want to be comfortable but dont want to wear sweats. There really needs to be another target market here. This market should coincide with the New Product Discription on page 8. Also we can target that wants to go out and look nice. For instance a female who doesnt want to dress up, she can put on our jeans, blouse and heels looks dressed to kill. The same thing can be done for men also he can wear our jeans with a hoodie or a nice button down shirt. Organizational Stakeholder Analysis Stakeholders In order for E Jeans to be successful, it has to gather intelligent feedback about stakeholder relations. This feedback will provide E Jeans with a framework that will help E Jeans to be successful and to be able to grow. E Jeans feels that it is important to make sure that we have loyalty, retention, identify any risk that may arise with our customers. Our company feels that with this researched based information and technology, it can gain critical insights into

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relationships with key stakeholder groups and continually work to keep these relationships strong. E Jeans product line must change to meet the ever-evolving employees, investors, vendors, and the customers that make the company prosper. Marketing Stakeholders A. Individuals or groups that will influence the direction of E Jeans Board Members Stockholders Investors Employers B. Individuals or groups who work for Creative Career Institute. Seamstress Vendors Designers Fabric Maker C. Individuals or groups who will be impacted by Creative Career Institutes Marketing Initiatives High school students College students Men and Women

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For E Jeans to build a strong clientele they must get feedback from the key stakeholders about products and marketing promotions. In order to get accurate information there would be a survey that would have the following questions: What do you feel we are doing right? What do you like about our product? How do we compare to the competitors? How do our prices compare to similar products? These questions would help us evaluate our products to our customers. E Jeans most important asset is their reputation of the company product and how we treat our customers. The reputation of a company can make or break a company. Usually when a company has a bad reputation they usually when a company has a bad reputation they usually stop purchasing their product and then go and tell other people not to buy from that company. This hurts the sells, profits, and performance. The main focus of E Jeans is to make sure the customers and employees are happy with the product and company because they are the ones who make the company a success. Marketing Objectives Increase product awareness among the target audience by 20% in one year Increase sells of all products offered by 10% in one year Decrease potential buyers resistance of buying our products by 15% in one year. Increase market share 5% Have a web presence by 1/1/2011 Offer a new product line in addition to our current product line that will appeal to an older market in 2 years. To make E Jeans the preferred brand of jeans by our target market by January 2015.

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To achieve 10% return capital employed by 2015. In four years receive 20% of sales through the Internet. Achieve an annual growth rate of at least 10% each year. 4P Strategy of Ejeans

The following outline is a detailed 4P Marketing Strategy analysis of Corporate Vision Ejeans to inform the stockholders and investors about the product, placement, pricing, and the promotion of Ejeans. Product Ejeans was established or incorporated in Washington, DC 2010 by marketing students from Howard University. Their main objective or goal was to create a pair of jeans that was affordable without losing its durability. Name Ejeans means jeans for everybody. Ejeans are geared toward the middle working class, college students, all gender types and sizes, plus they come in children sizes too. Ejeans are durable demin jeans made from 100% cotton. Some of the more stylish pairs are 90% cotton & 10% spandex for more comfortable and flexible fit. Ejeans also accommodate all sizes from small to big, short to tall and are made to last no matter how many washes. Ejeans come in demin and black. Tight leg, boot cut, straight or flare legs, regular of tall length. Plus Ejeans more fashionable jeans come in a ray of different designs on the pockets or coming down the leg. Ejeans most important quality is that they were made in the mind of affordability without sacrificing quality for the working middle class and college

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students. Ejeans satisfies needs of the working American people who can't spend a fortune on jeans, but like good quality. Place Ejeans headquarter is located in Washington, DC. Ejeans has 100 stores located across the Country. Ejeans are found in Department stores, like Belks, Macys, JcPenny and Dillards. People are also able to purchase Ejeans online with free shipping of 50 dollars of more. Ejeans are also found in discount stores such as TJ Max and Ross. Price the average price of Ejeans start at $19.99 up to $24.99 the more fashionable pair are $29.99 to $34.99 Ejeans for children in the age group of 5 and up start at $9.99 to $15.99 No matter what location or department stores Ejeans are found the prices remains the same. The prices only change if Ejeans are on sale. Even though the prices are cheap, Ejeans are made from good quality and stands by it name 100%. Promotion Ejeans advertise on local TV channels in viewing area across the country. The internet, newspapers and have a catalog. Ejeans also promote their jeans by setting up booths at local colleges and sponsering different organization. For instance Ejeans is a proud sponser of Read for success program and Ejeans also give away 10 $1,000.00 scholarships to graduating High school seniors who have kept a 3.5 average a show leadership in the community to help with college.

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Ejeans also have printable coupons on the internet and all you have to do is complete a short customer service satisfaction survey. Ejeans also offer a 10% discount to college students. Ejeans also gives back to the community by recycling and practicing going green.

Marketing Communications Plan Advertising Strategy Creative Strategy E Jeans Company Specializes in designer jeans for all shapes, sizes, and ages. This

company advertises their products on local TV. Commercials, popular radio stations WKYS (93.9) and WPGC (95.9) and other stations which mostly teens and young adults listen to. E jeans are posted in the Washington Post in the style section every Sunday, sales and promotions are advertised weekly on local commercials and newsletters to customers that purchase Jeans products often. Jeans Company advertises their billboards in most big cities.

Media Strategies

1.

Primary Vehicles Spot market Radio in 20 markets will be the primary media vehicle used to reach the

major audience of young adults & teenagers. College students can be reached more by radio and TV messaging. R&B and Pop stations will be targeted in each market as key media vehicles.

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2.

Spot market radio will be also used to reach the 20+ age group market in all 20

markets A.M. and P.M. drive traffics report sponsorship will be purchased in the fall, winter and spring seasons.

Secondary Vehicles

1.

Billboards (outdoor advertising) will be used to support TV and radio efforts.

Locations near universities and high schools and malls in each market will be targeted.

2.

Print Advertising- will be placed in four different publications that are highly

read by young adults and teenagers. Teen Vogue, Susie Magazine, Clean Horizon.

3. Print Advertising- newspaper advertising will be used to reach young adults and teenagers. Ads will be placed in local super markets in the style section.

Direct Selling Strategy E Jeans Company has a traditional direct market strategy in which was found to be more effective: Mailing flyers to frequent customers Direct letters for promotions Pre-stamped postcards

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Promotion expirations

Internet Strategy Our company E Jeans knows that the younger generation uses the internet more often so we know that our business sales will always be higher online. We also enhance branding in our company products. Our website is linking to www.makeyourownjeans.com check it out. Jeans company survey data is based on 300 respondents.

Email Marketing list of colleges high school, will be obtained and email marketing program targeting high school seniors, and college students will be implemented. Text Messaging- E Jeans will contract with Verizon Wireless to test a text messaging program targeting customers of Verizon Wireless. Verizon Wireless promotional materials as follows: send in information for enrollment and they will send back special offers to students and other potential customers through via electronic mail. Sales Promotion Strategy

Sales promotions are varied: Buy-one-get-one-half price Customer Relationship Management (CRM) New Media Merchandising

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Free gifts

Public Relation Strategies E Jeans public relations program will be executed and consist of the following elements: Event Marketing- strategy is to sponsor key events frequented by young adults and teenagers in local malls and concerts. E Jeans Company could sponsor at each mall for enrollment information. aspect. News Releases- E Jeans in the near future will have more stores across the map. Feature Articles- Local media will feature E Jeans Company products in every

Challenges Impacting Goal Accomplishments E Jeans Company has a great deal of competition in today society. Our goal is to always give the best service to our customers. Our competitors are Levi Jeans, Guess, and other popular designer jeans that usually the younger generation buys. E Jeans always keep up with the latest styles and designs. Pricing is the biggest factor while it comes to sales. We always try to offer promotions to our customers and other deals so that we can keep them happy. Research Recommendations To make sure that E Jeans is marketable and ready to compete against their competitors we will research the other competitors and see what our customers are wanting. The type of research that will be conducted will be surveys and controlled experiment. In doing the surveys we will conduct focus groups and online surveys, and also random surveys in the local shopping malls. In the random survey they look for when they go out and purchase a pair of jeans.

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The focus group will be conducted in four major cities such as Atlanta, New York, Los Angeles, and Houston. The groups will consist of 12 people ranging in age from 18 to 50. We will record the discussion about what type of jeans they buy. Some of the questions that will be asked will be: 1. Do they buy jeans depending on the price? 2. Do they buy jeans if they see other celebrities endorse the product? 3. Do you like designer names on your jeans? 4. Do you mind if you see a lot people wearing the same style of jeans that you are wearing? 5. Would you buy jeans if they are only sold in boutiques or do they have to be in mass retailers? The controlled experiment will be with men and women to see how the jeans fit on different sizes and shapes. We would also track the controlled group to see how the jeans wear and how long they last. We need to see if the jean material last a long time after several washes or just after two washes. We will have to see if the jeans are heavy duty or do they tear, snag or rip easy. By doing all this research it will determine what E Jeans has to be done or not done to make our company successful.

Budget Proposal Creative Developement Advertising Production: $228,000 Broadcast Radio: 8 :60 spots: $16, 000 Broadcast TV: 6-:30 spots; $25,000 Outdoor Boards - 5, 30 sheet posters in 20 markets; $5000 Print Advertising Full page, 5 color ads; $20,000

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Print Advertising - Newspaper ads (6): $10,000 Direct Marketing postcard, 4 color mailers ($4000per market/20 markets): $1.25 per unit, $100,000 total

Newsletters Quarterly: $40,000 Sales Promotion Signage Banners, Signs for use at college events in 20 markets: $12000

Media: $882,000 Radio Advertising - :60 spots 10 week schedule in 20 key markets: 2 stations per market (R&B/Pop) $6500 per market: $130,000 total Drive Tim traffic report sponsorships: 20 markets: 15 weeks: $72,000

TV Advertising - :30 spots ABC Family 16 week schedule: $50,000 Prime Time National Networks: $200,000

Magazine Advertising Teen Vouge 3 ads/year target markets only; $15000 Suzie Magazine 3ads/year target markets only; $15000 Clean Horizon 3 ads/year target markets only; $15000 Cosmopolitan 3 ads/year - target markets only: $15000

Newspapaer Advertising

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Local market ads Major daily papers: 20 markets; 2 column x 12 ads; 6 week schedules: $40,000

Outdoor Advertising EJeans showing in 20 markets target around high traffic shopping areas, universities and highschools: $10,000 per market; $200,000 Internet Banner Advertising One year buy on AOL and Yahoo: $130,000 Text Messaging Sponsorship with Verizon Wireless: no cost/trade arrangement Sales Promotion: $200,000 o Event Sponsorship XXXIII Olympic Winter Games: $200,000 Direct Selling: $50,000 o College markets in 20 markets: $2500 per market Market Research: $70,000 o Surveys $50,000 Methodology: Questionaires: 20 markets: 500 sample size per market

o Qualitative Research: $20,000 Methodology: Online Surveys and Focus Groups

Total Budget: $1,430,000

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Estimated Return on Investment The following ROI scenarios are projected. Projections are based on the average cost per pair of EJeans sold. (Average cost of Adult Ejeans = $30, Average Cost of Childrens EJeans =$15.00) In order to break even based on a marketing budget of $1,430,000 the following number of jeans must be sold. 1. Scenario 1: 47,667 pairs of Adult Ejeans sold 2. Scenario 2: 95,334 pairs of Childrens EJeans sold 3. Scenario 3: 23,834 pairs of Adult Ejeans and 47,667 pairs of Childrens EJeans sold Promotional Timetable Media Advertising o Spot Market Radio: 10 weeks; March - May o Spot Market Traffic Report Sponsorships: 10 weeks: July-September o Cable TV: 16 weeks: January -May o Special Event Programming: February - June o Outdoor: October - December o Print Advertising:December/ May/ August ads in teen magazines o Print Advertising: Three Ads in Cosmopolitan Magazine: March, July, and October o Newspaper: weekly insertions October/November/February: 12x schedule o Newspaper:All markets: May/June and August/September

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Direct Mail o Monthly mailings: February, July, October o Newsletter mailings: March, June, September, December Public Relations o Events: College games in selected markets o News Releases: 4x yearly; March, June, September, December Internet Marketing o Web Site: ongoing o Internet Banner Ads: 1 year buys on AOL/Yahoo o E-mail Marketing: Spring/Fa;; o Text Messaging: February tied to XXXIII Olympic Winter Games sponsorship Sales Promotion o XXXIII Olympic Winter Games Promotion with Verison: February Direct Selling o College Visits: 2x annually: September/ March Keys to WinningTo be successful our organization must do to achieve our goals: Stay with all the new trends. Be the first to come out with a product that everyone wants.

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Attract different customers. Offer different products. Keep reasonable prices. A product that will last a long time. Barriers to Success:

E Jeans is a company that cares about how people feel when they buy jeans. Its important that each customer can find what they want in our jeans. We offer different shapes, sizes, and styles that everyone can be satisfied with. Economic Offers cheaper prices Safe materials for the jeans

Technological Website T.V. ads Radio ads

Competitive Other jean companies. The most popular jean companies that have been around for years. Different types of thrift stores.

Regulatory-

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Everything is complied by government regulations.

Measurement and Control-Factors and ProcessesThe following will help E Jeans succeed in the marketing field. Increase market shares. Increase different range of customers. Need to look at the example in the Sample Marketing Plan under the DropBox on Strayer website.

Concluding Comments We need something here. References

(No Author Given, 2010) Sales Promotion, retrived March 24, 2010. From http://tutor2u.net/business/marketing/promotion_sales_promotion.asp

2009 Levi Strauss & Co. (2009). Levis Strauss & Co. Retrieved March 25, 2010, from Levis Strauss & Co.: http://www.levistrauss.com/