Marketing proposal for a new product Essay
Marketing proposal for a new product
Antwerpen Imporor Co., Ltd, a leading import company in Belgium, received the sales license of a new high-class make of shoes named Lightfoot recently. The Lightfoot was developed to significantly improve the way of today’s life style.
Lightfoot will be positioned as a high-end product both in fashion style and comfort. The product will be sold via company website, and 5 stores located in Brussels, Antwerp, Ghent, Brugge and Leuven. The product will be launched to market by August 2003.
The potential market for Lightfoot is very promising in Belgium. Belgium has the 6th highest per capita income in the world. In 2002, Belgium had a per capita rate of approximately $22,941. As a result, Belgians enjoy a high level of disposable income and have the financial means to consider life style, the strongest growth sector in the Belgian expenditure. Future consumption market should still continue to increase.
The financial projection for year 1 is a net margin of 2,825,000.00 EURO.
The management and sales force team members have a strong background in the fashion industry. The General Manager was former the former business development manager for Shoeslock, the Director of Sales and Marketing was formerly chief sales manager for Nike Belgium.
Mission: To lead the market of quality shoes/fashion industry in Belgium with an aim of achievement in both brand names and profit.
In the first fiscal year
lto reach the medium selling price at an average of 225.00 Euro for ladies, and 265.00 Euro for Gentlemen respectively
lto reach the total sales of 8,675,000.00 Euro as the turnover
lto reach a 75.00 Euro of net margin for Ladies, and 85.00 Euro for Gentlemen respectively
lto occupy a 30% of the market share
lto build the public brand awareness in the fashion industry of Belgium
In the second fiscal year
lto reach a 20% increasing of the sales
lto reach a 20% of the net margin
lto occupy a 35% of the market share
The product is definitely out to address the needs of the high-end consumer, who is willing to pay more for quality. In the particular market,
the Lightfoot provides consumer, who cares about design and quality of life style, a combination of highest quality product and excellence of design, at a relatively high price.
Measure of Success
The minimum price of sale will be at 225.00 Euro for Ladies and 265 Euro for Gentlemen. The turnover for the first year will be 15,000 pairs of lady shoes and 20,000 pairs of man shoes with a net margin for 75 Euro per pair of ladies and 85 Euro per pair of gentlemen.
Our sales strategy is based mainly on making the right information available to the right target customers. We can’t afford to sell people on our expensive product, because most do not have budget. What we really do is to make sure that those who have budget and appreciate the product know that it exits, and know where to find it.
The marketing has to convey the sense of quality and fashion in every picture, every promotion, and every publication. We can’t afford to appear in second-rate catalog with poor illustrations that make the product look less than it is.
The product will be promoted heavily at the 2003 Fall fashion Show in October, to begin to build brand awareness in the overall fashion market. A special open invitation session and cocktail reception will be held at the end of day of the fashion show to introduce and demonstrate the product, focusing on its design and value.
A direct mail campaign will begin immediately following the fashion show with special limited pricing discounts for those on the mailing list who also attend the special demo session.