Marketing Plan

Target Setting› Lorna Jane’s current business model is reliant

on expansion of retail outlets to drive increase in turnover

› Market dynamics dictate alternate revenue streams will need to be found for the business to grow

› Current Lorna Jane online store is an opportunity to increase product availability & distribution but still limited to its target audience of active women

Business Plan Objectives› Over the next five years Lorna Jane intends to

increase revenue 50%

› In the next 12 months in pursuit of that goal our marketing plan is designed to;

› increase revenue by 10%› Create a new revenue stream› Increase SKU profit margin in the new revenue

stream over current COG model

Brand Audit : Lorna Jane Brand Position› To women aged 25 – 45 years Lorna Jane is an

active clothing Brand that offers an alternative to traditional sportswear brands.

› It is a brand that everyday women relate to and feel inspired by. In a world where women are often made to feel inadequate this is a refreshing point of difference

Brand Audit : Business Analysis› Growth will eventually slow using retail

expansion model› Online store growth potential › Any NPD must be consistent with pricing

position to maintain brand authenticity › Intelligent & practical design is integral to

current product range, adopt underlying design principles from Lorna Jane to NPD

› Any cost driven re-engineering of the current or proposed product range would be considered high risk if the performance of the clothing suffered.

Strengths of the LJ Brand› can leverage existing Lorna Jane brand advocates &

strong core brand idea› unique inspiring brand image in market sector› healthy lifestyle segment is the largest segment in the

sportswear category› full control of NPD using existing capabilities› own brand retailer, no dictation from 3rd party on

launch times/pricing › can utilise existing manufacturing model and supply

chain, speed to market is high› trust in the parent brand already established with core

consumers › online shopping a preference among male consumers

and delivers higher profit margins – fewer operational overheads

Weaknesses of the LJ Brand› low brand awareness against established

heavyweight brands› low budget compared to large players in

sportswear› Lorna Jane is very female centric, LJ needs to

have its own independent masculine identity that men can 'own'

› Reduced sales opportunities due to lifestyle and reluctance to purchase at traditional retail outlets for male target market

› Low desire for product unless communicated effectively

Opportunities for the LJ brand› Largely untargeted/untapped segment within men’s

sportswear market, competitive advantage there for taking

› No brand history of LJ, can start with clean page and be ‘owned’ by early adopters

› Leverage of core customers - women as disciples of the brand and traditionally primary shoppers in relationships

› Promotion of online for convenience to male audience› As per Lorna Jane strategy, positive brand cross-

promotion within lifestyle sector an available vehicle for LJ in raising profile

› Brand sensory qualities ignored by competition, for example scent, touch, sound. Either could be considered and owned by a new brand, for example a scent infused on clothing and print media.

Threats to LJ and Parent Brand› Men connecting it too closely with 'Lorna

Jane' - too girly (likely if independent LJ ethos not communicated effectively)

› competitors entering the same space (likely if message is weak and allows others in)

› backlash of parent brand, rejection from core consumers of Lorna Jane as not in line with brand mission (unlikely but needs to be managed)

The Six P’s› Product – range of ‘basics’ using underlying design

principles of Lorna Jane parent brand› Place – current retail outlets, strong emphasis to

online environment in communications strategy› Proposition – the LJ brand is about celebrating

everyday achievements› Pack – use existing retail models, for online delivery

partner with reputable logistics team, pack has LJ branding

› Promotion – heavy viral content with communication strategy, interactive and experiential delivery of message

› Price – in line with current Lorna Jane model to retain brand authenticity

Trends: Consumer Insight

› As identified in the AFA Advertising Effectiveness Award case study of ‘SKINS’ – an athletic undergarment, people have become cynical about celebrity endorsement from the sporting world;

› Sports stars as a group are not our heroes. We love some individuals and even adopt the media’s names for them as if they were part of our close circle of friends…However as a group sports stars get quite a bad rap – we often regard them as spoilt, misbehaving, over paid, over sexed and slightly disconnected from real life

› We’ve become a little cynical about celebrity endorsements. Everyone knows that sports stars are paid huge sums of money to endorse the brands they use – this devalues the linkage between their expertise and their dependence on choosing the right brands to earn a crust through superior performance. They also seem willing to lend their faces to almost anything if there’s a few dollars in it.

Issue Identification› Develop communications strategy that delivers relevant message

– Identify how brand is currently seen by target audience and determine brand’s vision – how we want it to be seen.

› NPD of LJ range – Project milestones to be established within supply chain deliverables

› Determine the ratio of Lorna Jane stores that will carry some of the men’s range. Direction has to be moved away from the traditional fixed retail outlet to the online purchasing environment

– Creation of LJ online store, using existing capabilities › Training of staff for LJ range. Create excitement among retail staff of Lorna

Jane outlets for brand launch, distribute prototype and first run clothes to these brand champions to spread message

– Scheduling of LJ promotions in retail outlets. Concentrate on Brisbane, Sydney and Melbourne

› Launch date TBD. Based on supply chain commitments to project deliverables

– Identify tangible measurables for brand awareness in target audience, to gauge effectiveness of communications strategy

› Identification of effective measurement tools & frequency of auditing these results

Scorecard Tracking, Measurement› How do we know how we are tracking?› We intend to model a brand tracking survey

to monitor awareness via online questionnaires as found in Keller’s Building, Measuring and Managing Brand Equity, concentrating on;

› Brand Awareness and Usage › Brand Judgements › Brand Performance › Brand Imagery› Brand Feelings › Brand Resonance

Communications

“A truly great idea spans 360 degrees. It is like a rallying cry that lives across every piece of communication, from

offline to online, from in-store to trade.”

Our Audience

Confident yet approachable Individuals looking for a healthy lifestyle,

balancing friends, family & work

They do good deeds, not just to just to help other. It’s in their personality.

They’re Nice Guys

Values and Aims

› Fit LJ and Lorna Jane Values› Inspiring› Realistic› Approachable› Holistic› Challenge the status quo and trends› Recognise their difference from the tribe› Let them decide on which race they’re running

The Idea

› To engage and relate our audience with the LJ brand we realised that our guys are already happy with their performance, and they're not interested in the latest trend. They're too busy just working on balancing their lives. They're happy, healthy and holistic individuals and we wanted to acknowledge that

› To bring this to life we want to challenge the notion that “Nice Guys finish last” and reward them for….well just being them!

Activating the Core Idea

Talk of Town

Online

Promotions

Loyalty Program

Sponsorship & Events

Knowledge & Insights Media Product Placement

Who says nice guys finish last?

Media - Magazines› Print Campaign promoting

the everyday nice guy

“I delivered a knock out.

It was a Fettuccini Boscaiola”

Who says nice guys finish last?

Media - Magazines› “Achieve outside sport”› Infiltrate men’s routines

outside of the sporting arena› Men’s Lifestyle Magazines –

i.e Alpha, Men’s Health, Rolling Stone, Empire

› Weekend newspaper inserts (i.e Good Weekend)

› These publications tend to be quite influential in this area – apparently men often tear out pages, take the page to a retailer and say “I want to buy this” – the whole outfit!

Online› Microsite

– www.niceguys.com.au› Facebook launching a

‘nice guy –ometer” application

› SMH & AFR magazine website banners

› “My Guy” blog on the Lorna Jane website

› Viral campaign (SWOT Team)

Talk of Town› Nice Guys Mobile + SWOT team› Rewards everyday achievements› Nice Guy Mobile› Storm Sunrise Show› Heavy Viral Content

Promotions› To leverage Lorna Jane’s existing female

purchasers, provide a bounce-back offer for their husbands, boyfriends, brothers etc

› With every purchase over $100 of the Lorna Jane female clothing range, receive a $10 voucher towards the men’s LJ range

Loyalty Program› Implementing a loyalty program to

reward purchasers of LJ clothing› For every $300 you spend, go into the

monthly draw to win a prize› Rewards could include personal

training sessions, MP3 players, Mens magazine subscriptions, mobile phones, Red Balloon vouchers to pick their own adventure!

Events› Nice Guy Awards

Tommy Manelli

Clapping other teams goal

Trent Downey

Giving up taxi

Jarrod Klein

Holding the Bus

Mark Haynes

Smiling at strangers

Lee Kwan

Giving Directions

VOTE NOW!

Events – LJ Wii Fest 2009› Set up a Wii Fest Challenge sponsored by LJ

› Wii Fest Roadshow event travelling to major cities

› Sport for the everyday guy

› Event designed to promote an active life for everyday positive living

› Where Nice Guys (or girls) can finish first

› Registrations for event used to generate an LJ database

Product Placement› Clothe everyday men in

active reality TV programs such as “The Amazing Race” in LJ and Lorna Jane gear

› Demonstrates the functional and fashion attributes of the clothing in practice

Measurement

How do we know how we are doing?› What are our Key Performance Indicators?

– Financial Indicator: Sales Revenue

– Brand Activity Indicators: Awareness, Brand Equity, Communication Tracking

Methodology› Qualitative – Focus Groups

› Sample = 200 across Sydney, Melbourne, Brisbane› Brand Judgements –What is most unique about the

brand? To what extent is LJ different from competitor brands? What do you like about the brand?

› Brand performance – what are your perceptions of the LJ Brand…stylish, of high quality, good value, offers exceptional comfort, is not overly branded?

› Brand imagery –- do you associate LJ with healthy active living? To what extent is LJ distanced from the branded sportswear of competitors?

› Brand feelings – does LJ give you feelings of; freedom, social approval, self respect, independence, fun, belonging??

Methodology› Quantitative Online

› Sample = 500 across Sydney, Melbourne, Brisbane› Brand awareness and Usage – what brands of

sportswear are you aware of? Which brands have you purchased recently? Which is your preferred brand? Have you ever heard of LJ? Have you ever purchased or had bought for you LJ? How likely are you to consider purchasing LJ?

› Brand resonance – agreement with the following; I consider myself loyal to LJ, I buy LJ whenever I can, I would miss LJ if it went away, I identify with people that wear LJ, I feel a connection to people that wear LJ

Methodology› Quantitative - Events

› Attendance levels, observe extent/length of engagement with Brand

› Quick Polls– Had you heard of the LJ Brand before today? If

you have, where did you see hear or read about LJ

– Gauge appeal, uncover other lifestyle activities that the target market engage in

Methodology› Quantitative - Online activity

› Click through rates› Cost per acquisition› # Entries into online promotion