A Marketing plan for the Lorna Jane products
The SWOT
Lorna Jane is an Australian international stylish wear clothing company that provides sportswear to inspire women to achieve their best in life through active living. Founded in 1989, the company has flourished to be a multi-dollar active brand with store across Australia and overseas (Lorna Jane 2012). The brand is build around the concept of fashion meeting sport by largely banking on motivating women to aspire to achieve their best in life through active living such as working it out in the gym.
Building on the previous success the company now aspires to enter into the Korean market as part of its larger global expansion ambitions.
The Korean market overview
The decade ending in the year 2011 ushered in exponential changes and improvements in the Korean retail market all which served to prepare the ground for a sustained market growth projected to last for several year to come (Ajzen, 1980). The Korean economy is export oriented thus facing pressure occasioned by the debt crisis in the Europe. However, this has not slowed the growth of the Korean consumer segment which is showing signs of real growth especially on the luxury segment such as the Louis vuitton, channel and Gucci all which continue to grow at double digits.
This impressive growth coupled with domestic demand, vast increase in tourists from japan and china in addition to the Koreans’ propensity for branded items has serve to drive international retailers’ entry in to the Korean retail market as well as to aggressively push their brands trough out the Korean market (Pucik, 2007). Notably, international brands are recording expansion with more stores in high end locations and they are in addition building on this success to introduce their other brands in the Korean market such as the Massimo, Dutti, bershka, pull and bear while the Japanese owned Uniglo keeps their dominance in the fashion market which enables them to attract tens of thousands of customers daily (Myers, 2002). On the other hand, to boost their presence on this market, other operators such as the lacoste and the American retailer forever 21 have secured new premises in the fashion street Garosugil.
Encouragingly, the growth and expansion of business in the Korean market is not limited to the fast fashion industry or the already existing brands. New operators have also entered the market such as Charles and Keith from Singapore as well as Aldo for Canada (Batra, 2000). European brands have also not been left behind so the French connection and BEBE have long entered the market creating a competitive retail environment as well as enhancing the expansion of the existing firms. This has however, led to extreme high land prices in addition to making it hard to piece together a parcel of land that is big enough to accommodate a shopping mall. The success of these international brands show the Korean market has the potential especially in the focus on the high end customers especially the working class who fall under the age bracket of between 20 -40 year and who frequent the gym for occasional work outs.
Thus to enter and success fully penetrate this market to a significant market share, the Lorna Jane company needs to adapt a strategic market entry plan. First it is notable that the Korean population has a large segment of working class falling between the 20 -40 year age who live to work in the gym and who have the disposable income to spend on fashionable purchases. It also emerges that the lead pop idols and movie stars in the country spent a lot of time and money to glom their looks same as their followers. Thus the company should adapt a marketing plan that is strategically suited to the market.
Top among the strategy should be market segmentation. This strategy would allow the company to focus its original designs same as in Australia but with adjustments in terms of outfit length and sleeve to match the Asian market consumer body type (Graham 2009). This would also allow the company to avail the most suitable products for market target audience which includes running, yoga as well as dancing outwear. In addition, product segment would enable Lorna Jane to create a new product line for male fitness out wear thus creating a trend in the Korean gym wear market.
Another strategy would be the pricing regime which would enable the company to set a value based pricing model for product prices as well as value based approach focused on the consumer perceived value (Camps-Walsh 2009). This way, the company would avail a unique perception in the customer’s mind of fashion for their products by making the feel special about themselves. Another key market penetration strategy promotional objective to create awareness among the target audience thus build a relationship which would serve to reinforce their purchase behavior. This is best achieved through product placement such as working in partnerships with organizations that deal with similar or complementing products or services. For instance, it would be advisable for Lorna Jane to forge a working relationship with a popular hotel like the JW Marriot in Seoul which is a popular fitness center for the high end client in Korea. In addition the hotel is conveniently located and avails modern facilities and exclusive and quality service all which would serve the company well through free placement and exposure. Such cooperation also provides the Lorna Jane with a new and rich channel to communicate and tap in to the people visiting the gym and fitness center thus forming a direct selling approach strategy as well as building a good working relationship with the customers.
In addition, a close working corporation with high end entities like the J W Marriott Hotels would serve to position the Lorna Jane products as exclusive and distinct thus enabling the company to achieve distribution in specific areas as well as build a connection that would leave them feeling special. To further cap the penetration, the company should consider engaging great staff who are able to position its products as positively aimed at creating a new experience that comes with international brands for the Korean customer. However, considerations should be made for the possible cultural differences between the two countries and if need be a specific training program be adapted for the staff to equip them with a broader knowledge of the products in addition to learning product skills to enable them provide the best possible service to customers thus help in driving sales.
Future projection
In terms of future prospects the company looks well positioned to take advantage of the current expansion abilities of the Korean fashion market since it has a wide range of products for the prime and secure women market of the Korea.
Brand awareness
Lorna Jane aspires to keep a brand market awareness by setting a trend that works for each individual since it understands that all are creatures of habit thus by creating the right mindset its out fits would uplift the customers even when a work out feels impossible.
Market objectives
Lorna Jane has the objective of maintaining a market leader position thorough a system of customer feedback in addition to placing concept stores in all the high end shopping streets (Katz, 2008). This would enable the company to mirror the value of its customer’s by acting an advocate for their health and wellbeing. In the short term the company is bucking the market trends with a projected profits and new openings. Again, by use of use of face book, Lorna Jane intends to create brand awareness though making large investments such as celebrity endorsements as it is evident that both pop idols and movie stars spend a lot of their money glooming their appearance.
Financial objectives
The group aims to achieve a financial growth in the next few years by focusing on quality, stylish pieces to ware in the gym. However, at the moment, it has 122 stores with a combined turnover of over $100 million (Paul, 1997). Thus the projected opening of two stores in South Africa and expansion in the US would help the company in attaining at least a 10% financial growth.
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