1. Marketing Plan for the fashion brands Lecturer: Ms Isabel
Mut & Mr Alberga |Word Count: 10,640| May 7, 2009, Barcelona,
Spain Hiva Ghiri, Fredrik Gunnarsson and Tom Jonk, Romy Hesp,
Rachel Cladder, Gabriella Norberg Ivo Deumens and Harold
Reitsma
2. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market E XECUTIVE S UMMARY The Dutch leather and handbag
company Ignoor was founded by Noor Wentholt and Mike Alberga. The
brand stands for style and comfort, and it targets the less
price-sensitive businesswoman. The company has an office in the
Red-Light district, Amsterdam, and sells their products to 16
retail-stores in the Netherlands. Ignoors promotion strategy is
currently to receive free publicity through various channels.
However, they are also open for other suggestions regarding their
general marketing strategy. The unique products are differentiated
from its competitors, with a price-range from 200 to 600 Euros. The
company could increase focus on smaller, less expensive bags and
accessories in order to generate a larger customer base and a
stronger brand. Furthermore it is recommended to find more
distribution channels and retailers within the Netherlands in order
to boost sales. Additionally, Ignoor is well set to successfully
expand in the European market and should focus on the UK, London.
The Spanish brand Caorta designs haute couture clothes for both the
Colombian and European market. The company is relatively new and
has approximately 30 customers. The designer and founder of the
company, Camila Orozco, is Colombian and successfully presented a
collection during Bogota fashion week. Caorta has had limited
resources, and does not have an organized marketing strategy. The
products are sold through direct contact with the customers, as
well as through intermediaries. Although Caorta has a solid
distribution method, the company needs to improve its general brand
awareness. Emphasize should be put on promotion, as Caorta needs to
increase the communication channels in order to get valuable
information about the customers. Both Amsterdam and Barcelona are
well known fashion cities in Europe. Amsterdam is known for the Red
Light district and Barcelona for its creative environment. The
fashion weeks in both cities are well established, visited by
fashion-interested people from all over the world. Together with
government-initiatives, Amsterdam and Barcelona are developing as
fashion cities in the competitive European market. 2
3. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market T ABLE OF C ONTENTS 1.Terms of
Reference...........................................................................................................................................
4 2. Procedures &
Methodology..........................................................................................................................
4 4. Introduction
.......................................................................................................................................................
6 4.1 IGNOOR, Amsterdam
................................................................................................................................
6 4.2 Caorta,
Barcelona.......................................................................................................................................
6 5. IGNOOR,
Amsterdam.......................................................................................................................................
9 5.1 STP
Stratergy...............................................................................................................................................
9 5.2 Marketing Mix
..........................................................................................................................................
10 5.3 SWOT Analysis of the IGNOOR bags
................................................................................................
12 5.4 Competitive Analysis of European
Cities.......................................................................................
13 5.5 Analysis of Market
Competitors........................................................................................................
17 5.6 Conclusion
.................................................................................................................................................
20 5.7
Recommendations..................................................................................................................................
21 6. CAORTA, Barcelona
......................................................................................................................................
28 6.1 STP
Stratergy............................................................................................................................................
28 6.2 Marketing Mix
..........................................................................................................................................
29 6.3 Competitive Analysis of European
Cities.......................................................................................
32 6.4 Conclusion
.................................................................................................................................................
32 6.5
Recommendations..................................................................................................................................
33 7. European Fashion Market Questions - Joint Assignment
.............................................................. 37
8. Bibliography
....................................................................................................................................................
53 9.
Appendices.......................................................................................................................................................
59 3
4. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 1.T ERMS OF R EFERENCE The following paper contains
two marketing plans for the brands IGNOOR and Caorta, and a written
work on the European fashion market. The Marketing Plan for the
leather brand IGNOOR was one of the four proposals that will be
presented to Ms Noor Wentholt and Mr Mike Alberga and in connection
with the IVCF challenge. This part of the report was compiled by
Tom Jonk, Romy Hesp, Rachel Cladder, Ivo Deumens and Harold
Reitsma. The aim of this report is to analyze the marketing aspect
of the leather bag industry in Europe, as well as giving critiques
and recommendations to the brand IGNOOR. Following the IGNOOR
proposal a Marketing Plan for Caorta, which will be presented to Ms
Camilla Orozco and Isabel Mut, in connection with the IVCF
challenge. This report was compiled by Hiva Ghiri, Fredrik
Gunnarsson and Gabriella Norberg. The aim of this report is to
analyze the marketing aspect of the haute couture industry in
Europe, as well as giving critiques and recommendations to the
brand Caorta. The written work on the European fashion market is a
joint project produced by the Amsterdam and Barcelona consultancy
teams. 2. P ROCEDURES & M ETHODOLOGY This report is based on
both primary and secondary research, such as questionnaires, web
based research and academic books covering various aspects of
Marketing. However, due to the duality of the sector the external
analysis does not only refer to clothing segment, but also other
types of textiles and products such as bed linen. Please refer to
the attached bibliography for further information. 4
5. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 3. O VERVIEW OF THE S ECTOR The Textile and Clothing
industry in Europe distinguish itself by being labor intensive; in
2007 the total employment level was almost 2.5 million in 175000
organizations. Please refer to Appendix 9.2.1 (TEXTILES and
CLOTHING, 2008). The sector is of importance to the European Union,
particularly for Eastern Europe and countries in the Mediterranean
zone. The majority of the sector consists of small enterprises
employing between 1 to 9 workers, representing 80 percent of the
manufacturers, whilst only 7 percent of the companies employ a
workforce of 250 or more. The average workforce consists of low
educated workers; primarily women (Trends and drivers of change,
2008). They also represents 8 percent of the total manufacturing
workforce, however they only signify 3.5 percent of value added to
total assets created. It could therefore be considered a
competitive advantage to produce goods in Asia, where the labor
costs are significantly lower. The primary supplier of clothing
goods to the EU is China, which has increased its supply with 90
percent since 2004, and represents about 25 percent of the total
import to the EU. Please refer to Appendix 9.2.2 (External Trade,
EU). The largest market for clothing from the EU is Switzerland,
closely followed by Russia. Please refer to Appendix 9.2.3
(European Foundation for the, 2009). The major distributors in the
industry primarily base their production operations in Asia, and
distribute their products from central warehouses in Europe due to
geographical advantages. The heute couture products represent
another segment of the T/C industry, where clients are willing to
pay a premium for quality control, skilled workforce and brand.
These garments are produced in various European locations, where
costs of production are higher. Trade patterns play an important
role in the sector, however they are diminishing over time as
methods of production are becoming increasing homogeneous (Trend
and drivers of change, p.22, 2008). Brand loyalty and trademarks,
such as Made in Italy, are famous around the world. European
products often represent quality and imply endurance. A recent
trend among young people is 5
6. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market significant increase in purchasing power, which may
have in some cases had a negative impact on the exclusivity of the
brand e.g. Mulberry (Trend and drivers of change, p.16, 2008).
Governments have imposed various agreements and barriers to trade,
limiting the amount of clothes and textiles imported from
competitive countries outside EU. Protection schemes such as the
Multi-Fiber Arrangement (MFA), which also is known as the Agreement
on Textile and Clothing (ATC), regulated the trade of textiles in
the European Union between 1974 and 2004 (Phase-out of the Multi,
2003). The EU China textile agreement, which preceded the ATC was
negotiated to manage the escalation of imports from China until
2008 by imposing restrictions on annual growth rates. However
should these safeguard measures be removed the industry might face
increased competition from low wage countries (EU China textile
agreement, 2005) 4. I NTRODUCTION 4.1 IGNOOR, A MSTERDAM The Dutch
brand and leather company IGNOOR, which designs handbags and
accessories was founded by Noor Wentholt and Mike Alberga. The
design and label stands for style and comfort, where the bags are
specially shaped to the sophisticated woman body. Ignoor loves to
work with leather and make things fit for custom use. Your body is
unique, an Ignoor bag is original, and the combination is
exceptional. These are the key functions of the company and
therefore their future elements. The brand IGNOOR has a its own
philosophy and history; Movement through form and comfortable fit.
Each Ignoor bag is ergonomically designed towards the body,
respecting the classical bag shape. The female curves are an
endless inspiration for the strong, feminine and serene Ignoor
line. Dutch designer Noor Wentholt continues a legacy of leather
design and craftsmanship descending from the Wentholt family,
6
7. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market producing durable leather goods since 1766.Linked by
the sign of infinity, Ignoor joins heritage quality values with
contemporary leather design (IGNOOR, 2009). Ms Wentholt is in
charge of the design and creation process, while Mr Alberga handles
the sales and marketing for the company. The two work closely
together in the realization of the products. The sales and
marketing that comes with Mr Alberga depending on Ms Wentholt who
has the responsibility of the product. On the other hand the
marketing and sales give the company much information about the
market and demands that come within. So Ms Wentholt has to adapt to
these demands to make the whole thing work. The two things cant
depend on their own. Its a two way working system that has to be
combined. Due to the red light districts reputation, the government
has recently implemented a scheme where they have made it possible
for fashion companies to locate and run their business in the area.
IGNOOR has its own building there, where the office and gallery is
positioned. The combination of these two give a sense of the
business, as the cultural difference between an office and a (art)
gallery crosses each other. Strategy: The leather gives the bag a
tough image but the shape makes it more elegant. Two
characteristics that have been compared with a business woman
between 30 and 50 years old. Ignoor is willing to adapt to market
segments, so its not only bags that they are willing to make.
Profit is something that give them opportunities for the future and
more important its necessary to exist in the future. Marketing: As
earlier mentioned Mike is leading the marketing interests. One of
his main functions is visiting potential retailers. These retailers
are existing shops were leather baggs may fit in 7
8. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market the collection. For example clouting, lifestyle and
off course bag stores. Ignoor dont have an own store so they depend
on the other stores who are willing to sell their product and even
as much as important, their brand. We are now going to take a
closer look at the marketing mix. 4.2 C AO RTA , B ARCELONA The
clothing brand Caorta was launched in Milan two years ago by Ms
Camila Orozco, as part of her graduation collection from the
Marangoni Institute. After graduation Ms Orozco returned to
Colombia, where she successfully participated in a fashion contest
in Bogota. Through the competition she established a customer base
in Colombia, since then she has further expanded her customer base
to the European market through a trade fair in Barcelona. The
companys customer base is small, and tailors to 20 individuals in
Colombia and 10 in Europe. Today the company employs two assistants
in Colombia, who supports the production of the clothing items
(Orozco, Camila, 2009). The company has two production lines;
commercial clothing products and photography. The clothing line
consists of products such as blouses, coats, dresses, leggings,
jackets and skirts, and is viewed as the primary line. Every piece
is unique and is produced in a limited quantity of two to three
items per city, however the majority of the production consists of
dresses; 40 percent. The exclusivity is accentuated by the quality
fabrics from France and Italy, as well as the manufacturing process
where each piece is carefully handmade. The fabrics used are priced
at 9 35 per m2, and each garment is priced at production cost with
a 30% mark up. The sizes and quantities are always decided in
advance for each collection, the capacity is 15 orders per week and
the time of delivery is approximately one month. Caorta only
produces one collection every year; however there is capacity for
tailor made pieces. The photography line is seen as a complement to
the clothing segment of the business (Orozco, C, 2009). 8
9. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 5. IGNOOR, A MSTERDAM 5.1 STP S TRATEGY The segment
in which IGNOOR is positioned in, targets sophisticated
businesswoman, who prefer quality and luxury goods. This is one
point were Ignoor is focusing on. Ignoor is willing to adapt to
market segments, so its not only bags that they are willing to
make. Profit is something that gives them opportunities for the
future and more important itsnecessary to exist in the future.
Segments Demographics Age Income Occupation Social class Family
status Psychographics Personality Interest Lifestyle Values Buying
Behavior Location Frequently Loyalty IGNOOR 30-50 Middle, high
Lawyer, Bank employee, Business people Middle, high Single, married
Elegant, sophisticated Fitness, Cooking, Running, Shopping, Tennis
Business woman Liberal, independent Bijenkorf, non specific stores
Average Not loyal to the brand 9
10. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 5.2 M ARKETING M I X PR OD UCT Ignoors collection
consists of nine different commercial products, e.g. shoulder bags
and lipstick cases. The products have common features and are all
made of high quality leather. These features are important
characteristics of the product and philosophy of IGNOOR; 1.
Craftsmanship 2. Relationship to the female body 3. Quality &
Luxury 4. Feminine, strong and serene 5. Dutch design. Ignoor has
one accessory, a lipstick case, which is less expensive and it
sometimes comes along with the bag as a gift. This is one of the
best selling products if we look at volume. It is an important fact
that this accessory attracts attention. BCG-Matrix Ignoor High Star
Question Mark Carme Market Grow Rate Low Cash cow Dog Lipstick case
High Low Relative Market Share 10
11. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market IGNOORs cash cow is the lipstick cases, this because
they have a high market share in a slow growing industry. The
lipstick cases generate cash in excess of the amount of cash needed
to maintain the business. The productions costs are not very high
and the profit on the cases is very high. They need to be "milked"
continuously with as little investment as possible. The star of
Ignoor is the Carme, it is a bag with a high market share in a
fast-growing industry. Our hope is that the clutch Carme will
become the next cash cow. Sustaining the business unit's market
leadership may require extra cash, but this is worthwhile if that's
what it takes for the unit (Carme) to remain a leader. When growth
slows, stars become cash cows if they have been able to maintain
their category leadership, or they move from brief stardom to
dogdom. PLACE IGNOOR has an office in Amsterdam from where it
operates, as well as 16 different retailers through out the
Netherlands. At this point IGNOOR is approaching the retailers to
attract their attention and have more awareness. IGNOOR selects the
shops they want to sell in, but they are not in the financial
position to refuse any offers from retailers who want to sell their
bag. Because of this situation IGNOOR cannot be very precise in
their image positioning on this point (Wentholt, N, Alberga, M,
2009). P R OM O T I ON Ignoors budget for promotion is small due to
the companys limited resources. There is therefore no large
promotion campaigns used at this stage. Mr. Alberga does the
promotion by demonstrating and informing about the products to
potential retailers. Their vision how they want to represent their
product is clear but they are open for 11
12. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market new market opportunities and willing to change, if
this is more profitable for their label. So what image do they want
to promote? All the facets that have a link with the bag or company
but above all the unique selling point. That would be the body
shape of the bag. Ms Wentholt has to be creative when it comes to
promotion due to her weaknesses and threats, and take advantage of
her strengths and opportunities, these will appear later on. P R IC
E The price of the product is a very important factor in their
selling proposition. IGNOOR products have a price-range from 200 to
600 euros. Premium pricing is used and based on various factors,
such as product, customer and place (IGNOOR, 2009). One might
consider the price to be too high, however an IGNOOR bag is much
more than just a functional bag. An IGNOOR bag is made of luxury
leather and quality materials that can justify the price tag. Price
is very important in combination with other marketing strategies.
5.3 SWOT A N ALYSIS OF THE IGNOOR Strengths The ergonomic concept
of the bag The material, good quality leather Luxurious appearance
Opportunities Extending the brand Adding other products with
ergonomic influences More high educated women BAGS Weakness Price
Availability Low financial position Little brand awareness Threats
Financial crisis Saturated market Much competitors 12
13. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 5.4 C OMPETITIVE A NALYSIS OF E UROPEAN C ITIES One
of the goals of Ignoor is to be an international Haute Couture
brand. Beside the Netherlands and Spain, Ignoor also wants to
export to a third country. In order to select the right country a
County Selection Model has been used. C O U N T RY S E LE C T I ON
Because of the organizational structure of Ignoor we only make an
analysis of the European countries. The information of the
following countries is seen in the figure below. Germany Denmark
Lithuania France Ireland Azerbaijan United Kingdom Finland Latvia
Italy Portugal Cyprus Spain Romania Bulgaria Estonia Russia Czech
Republic Iceland Netherlands Ukraine Bosnia and Herzegovina Turkey
Hungary Albania Sweden Slovakia Georgia Belgium Greece Croatia
Armenia Switzerland Luxembourg Macedonia Poland Slovenia Malta
Norway Belarus Moldova Austria Serbia Montenegro 1) Pre-Filter
Cross Domestic Product Population Density 13
14. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market Remaining countries: Germany Denmark Sweden France
Ireland Belgium United Kingdom Finland Switzerland Italy Portugal
Montenegro Spain Cyprus Norway Iceland Czech Republic Austria
Netherlands Luxembourg Greece Turkey Slovenia 2) First-Filter
Economic growth National income Purchasing Power Remaining
countries Germany Luxembourg France Norway United Kingdom Sweden
Italy Belgium Spain Switzerland Denmark Austria 3) Final-filter
Expenditures in clothing and leather industry Clothing prices
Number of highly educated women Vision Ignoor 14
15. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market Remaining countries: United Kingdom, Italy, Austria
and Belgium Based on the Vendor rating analysis, the country
Austria is the most suitable option for an expansion. However if we
consider the location of Ignoor, the name, the philosophy of the
brand and its products, Austria is not the best option. This
because Austria is not been recognized as a real fashion country,
and is not ready for a new label like Ignoor. We recommend the UK
instead of Austria because London is one of the largest fashion
cities in the world, and it is known for its many innovators and
trendsetters. Ignoors unique selling point is the products
innovative designs and shapes, which could appeal to the consumers
in London. That is why this is a perfect combination. 15
16. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market DESTEP OF THE D UT C H F AS H I ON M A R KE T
Demographically The number of visitors to the expensive shopping
street the Pc Hoofdstraat is decreased with 32 percent.
Ecologically An upcoming trend in Haute Couture branch is making
products from ecological materials. Technology The Internet selling
of clothing, shoes and accessories are increasing rapidly. Socially
Trend- and fashion sensibility is growing, fashion cycles are
getting shorter and the share of fast fashion is growing. The
consumer is getting more brand and quality sensitive. Economically
In November 2008 the turnover of the leather industry of the
Netherlands was decreased with twenty percent. The prices of the
raw materials of the leather industry were increased with 2 percent
in comparison with November 2007. Because of these developments the
prices of the products were also increased with two percent. From
calculations of the NIBUD it is showing that in 2009 de prices will
hardly increase and that the net income will rise. Also everybodys
purchasing power will increase with 1 to 4 percent. (NIBUD, 2009;
Clean Chic, 2006; CBS, 2009; Rabobank, 2009.) DESTEP OF THE
Demographically There are more women than men in Spain at the
moment, which is an interesting aspect for the fashion trade
industry Men 7.144.406 Women: 7.787.800 S P AN IS H F A S H I O N M
A R K ET Socially Barcelona has every season one of the most famous
fashion trade fairs, Bread and Butter. Spanish people are very
sensitive for the style of famous people Ecologically
Technologically Most of the Spain has a large number of Spanish
companies companies operating in the leather are not yet familiar
goods sector who are using different with ecologically kinds of
technology. Many have made friendly materials. a firm commitment to
international markets, including Lupo, Puntotres, Fun & Basic,
Myriam Gallego, Olimpo and El Caballo, not forgetting the luxury
Loewe brand, which is also of Spanish origin. All using the most
innovative technology, made their name through first-rate quality
and design. Economically Spanish leather goods have an
international reputation for quality raw materials and excellent
finish. The Spanish industry comprises some 1,752 companies, many
of which are tiny craft businesses. More than 83% have fewer than
10 employees and generate direct jobs for 15,929 people. In 2008,
production rose to 1,883 bn, up almost 3.9% on the previous year.
Production distribution by region confirms Andalusias leadership in
terms of numbers of businesses in this field, with a share of 29%.
These are concentrated in locations like Ubrique in Cdiz. It is
followed by the Valencian Community with 26.7%, Catalonia with 18%
and finally Madrid, with 13.2%. 16
17. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market DESTEP OF THE U N IT E D K IN G D OM F A S H IO N M
A R KE T Demographically In 2006 57% of al the students in England
where woman. Economically The expenditure on clothing was in 2005
5.3 % over the total expenditures. Net income of the residents of
the UK where the highest of Europe Ecologically More and more
designers are using ecological material in their products.
Technologically Also in the UK the selling of clothing and
accessories with the Internet is growing 5.5 A NALYSI S OF Socially
The capital of England is London and this is one of fashion cities
of the world. A lot of different fashion communities. Many
open-minded consumers Many innovators and trendsetter. London
fashion Week M ARKET C O MPETITORS The group has analyzed the
competitors of the potential markets to give a better view on the
activities in the market. N E T HE RL A N D S Ignoor makes body
shaped bags. According to Ms Wentholt there are o competitors at
this point. They are very unique in their concept. If we look to
other Dutch designer who makes qualitative good, leather bags then
there are a few competitors. Two of them are Zomoy and Philine.
Zomoy is started to make bags that actually wear our selves. The
bag has to have it all; space for daily necessaries including PDAs
and laptops in various sizes, held safely in a very stylish
disguise. Based in Amsterdam, Zomoy stands for fair trade and does
not deal with any vendors practicing child labor or any other kind
of (human) exploitation. The animals that gave us their beautiful
skin are raised to provide the people of their country with 17
18. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market food and not solely for leather purposes. Each Zomoy
is made with care, passion and high quality leather and fabrics
(Zomoy, 2009). Zomoy sells their products in the Netherlands,
Germany, United Kingdom and Belgium. The products are workbags
especially laptop bags. The prices of the laptop bags vary from 120
till 330. The PDA bag is 49. Strengths: Bags that have it all; for
daily use including PDAs and laptops They stand for fair trade
Zomoy is based in four different countries Weakness: They are very
unknown by the larger public Zomoy has style that not everybody
likes Philine is a Dutch designer. She makes innovative designs and
creative quality for those with individual taste. Philine is
inspired by the natural world and driven to create a style, which
defines love of personal expression. Philine designs for those that
shine by what sets them apart from others. Smart, fun cool, theyre
the ones with a defined sense of style and ultimately those who
find joy in things unique and have passion for their own
individuality. Philine translates her fascination with that what
isnt into tangible objects: fashion statement meets object dart.
Philine makes handbags en clutches. Philine is located in seven
different shops in the Netherlands and three shops in France. She
was also a participant of the trade exhibition de Modefabriek in
Amsterdam (Philine Online, 2009). Strengths: Focus at customers
with their own individuality Attention from press Weakness: Site is
not that impressive 18
19. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market S PA IN Pepe Alba European Design, Inc. is a premium
leather design company based in Spain. They have been creating high
quality purses, wallets, handbags, and other accessories for over 5
years. They take pride in their workmanship and it is important to
them that their products are top of the line! The philosophy from
Pepe Alba is: The single most important idea, which we embrace, is
"QUALITY and PRIDE in one's work!" This means that we stand behind
all of our purses and products 100%, because we know that they are
made with premium materials by some of the most talented and
experienced hands in all of Europe. (Pepe Alba, 2009) Strengths:
Online shopping opportunities Different products like; wallets,
belts, purses, handbags Lupo is a brand that exists of leather
bags. To maintain their high quality standards, every stage of the
manufacturing process employs state-of-the-art technology and
undergoes exhaustive controls. Lupo use genuine leather therefore
the texture of the pieces that make up your article may vary
slightly. This characteristic feature makes your Lupo item unique
and unrepeatable. They not only make handbags they also make belts
and key chains of leather. Lupo has several shops in Spain. Lupo is
located in cities like Granada, Madrid, Barcelona and Valencia.
Lupo has also shop-in-shop in Spain, Belgium and Portugal. Lupo has
also one shop in Tokyo. (Lupo, 2009) Strengths: - Located in many
shops in Spain 19
20. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market U N IT E D K I N G D O M Alison van der Lande
appreciates colors and luxurious leathers and combines this passion
to produce beautifully crafted bags for all occasions including
clutches, handbags, weekend bags and hand luggage, tennis bags and
so much more. The leather is Italian and all the bags are
handcrafted in Italy. Alison van der Lande was a member of the
London Fashion Week. The collection from Alison van der Lande is
located in London, New York, Denmark and Egypt. Alison van der
Lande was also a member of the trade show in London and the Natural
History Museum. Because Alison van der Lande has also a tennis bag
and a golf bag. You can see on these two items that the target
group of Alison van der Lande is similar as Ignoor. Because the
women who buy Ignoor are higher educated and will also play tennis
or golf (Alison van der Lande, 2009). 5.6 C ONCLUSION The smaller
bag designers have their own philosophy and their unique selling
point. Those smaller designers are closely related with their
brand, just as Ignoor. It is very clear that there is a heavy
competition between the small designers. Ignoor has to stand out
from the small designers. Therefore Ignoor has to work on their
collection, promotion and selling points. 20
21. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 5.7 R ECOMMENDATIONS After all of our research we
now will give recommendations to Ignoor, how they can gain more
brand awareness in the future. We will make the recommendations
through a desired marketing mix for Ignoor. The marketing mix is
based on the information Ms. Wentholt and Mr. Alberga gave us
during the meeting at their office. We also can make a few
conclusions from our field research. We made a survey with the most
important issues and contacted Mr. Alberga if it was possible to
use a bag for our survey, so we could give a better image to the
people we questioned. Mr. Alberga agreed and gave us the Cleone and
Carme bag to promote. Now we will show the most important results.
PR OD UCT We can conclude from our field research that the bag Iris
is the most popular one. On the second place the Doris and the
third place the Danae. The Luna and the Freyja were the most
unpopular bags through our rating. The main argument of the people
we questioned was that a bag has to be practical. If we look at our
top three of the bags, we see that they are easy to carry because
they all have a long handle that you can use as a shoulder bag.
This is an aspect where Ignoor should focus on with her future
bags. An other conclusion from the survey, was that the people
liked the Carme bag very much because of the size of the bag. That
is why we also suggest to Ignoor to make more smaller items,
because they are less expensive then a bag and popular within the
target group. This will be also with less risk for the retailers
who want to sell Ignoor products. We also asked the respondents
what kind of other leather items they would like to see next to a
bag. We advice Ignoor to add the following accessories: an agenda,
belt and a purse. An other advice to Ignoor concerning the product
is to stick with the concept of the body shaped bag. Because the
shape of the bags was a popular 21
22. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market concept for a lot of the respondents. NEW B RA ND
After the interview with Ms. Wentholt and Mr. Alberga they told
that they were thinking of starting a new brand. We advice Ignoor
not to launch a second brand because we think that they should
focus on the existing brand first. Ignoor has a good quality
product and they have to enter the market with the collection they
already have. If Ignoor is doing well with its first collection
they can consider starting a second brand. With the launch of a new
brand there are various risks associated. Such as: o Developing an
understanding of the market the new product is intended to address.
With questions like: Who will buy the product, what is the profile
of these people, what appeals to this people, etc. Answering these
questions will take a lot of time and money. o Extensions can
weaken a brand and it can make confusions about what the brand
means. o Extra costs, which Ignoor can not miss at the moment. o
The more things you try to become and the more you lose focus, the
more difficult it is to differentiate your product. o The current
brand Ignoor will not help the possible new product. 22
23. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market P R IC E The people that we interviewed found it
difficult to see the difference between an Ignoor bag (Cleone) and
a regular leather bag from a less expensive brand such as Mexx or
Esprit. Due to this, the people estimate the value much lower. The
people want to spend between 50 and 200 for a bag. The brand Ignoor
is not well known among the people so even if they want to spend
400 they wouldnt spend it on an Ignoor bag. This is due to the
brand awareness; there is no reference, feeling or experience with
Ignoor. Our conclusion is that Ignoor has to sell smaller items for
a lower price. The consumer buys these items easier. The more
accessories Ignoor sells, they get a better brand awareness.
Because of these items the consumers will experience the brand, the
quality and the exclusivity. Finally the consumer is convinced to
pay the price for an Ignoor bag. PLACE We believe that the Ignoor
collection will sell better if the collection is presented in a
well-known department store like the Bijenkorf. Its very difficult
to get in the collection of the department stores. But we hope
after the implementation of the above the demand will grow and the
position is stronger so they have a better chance. This should be
one of the sales targets. The website of Ignoor is still in
development, they are adding a web shop so consumers can buy the
bags online. We advice Ignoor to show their collection in 3D, so
you can see the curves of the bags much better and you will
understand their concept. 23
24. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market At this point the Ignoor collection is presented in
16 stores in the Netherlands. It is necessary to increase the
number of stores. We think this is made possible by the expansion
of the collection P R OM O T I ON Because the budget for promotion
is very low we want to promote the collection by free publicity. We
have found five solutions to enlarge the brand awareness. RTL
Boulevard RTL Boulevard is a Dutch tv program about lifestyle,
fashion, daily news about everything whats going on in Holland. One
of the members of the tv show is Fiona Hering, she is a famous
fashion journalist. We want to give her a bag so she can talk about
it in de show. She can also tell the philosophy of the bags from
Ignoor. Daily the show is watched by 700.000 people. To realize
this, Ms Wenholt must get in contact with the editors of RTL
Boulevard. She can send an email to [email protected] or she must
contact Jaap Paulsen because he is the contact person of the show.
His telephone number is 035-671 88 79 and his email-address is
[email protected]. Through the completion of this process it is
possible for Ignoor to make it on the show, and give more awareness
to the brand. B U DG E T : The cost of the promotion by RTL
Boulevard will be the bag that is send as a gift to the show. The
price depends on the bag that will be chosen. It will be between
the 200 and 400. The bag will be the only cost for Ignoor, its an
also an option that Ignoor sends the Carme as a second 24
25. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market product, because thats a different kind of bag
compared to the other models. The costs of the RTL boulevard
promotion will eventually not exceed 1000. Press releases to
fashion magazines Ignoor has to be more in the publicity thats why
we suggest that Ignoor or the PR agency of Ignoor makes a press
release for the fashion magazines and the other magazines that the
target group will read, like Linda. In the press releases Ignoor
has to make clear what their philosophy is, what so special is
about the bags, where they are available and why the customer
should buy their bag. B U DG E T : The press releases will be made
by the PR-agency from Ignoor. This PRagency is the only cost for
this promotion, and will be around 1000. Bag parties The bag
parties has to be given by the target group who are already
interested by the Ignoor bag or already have a bag from Ignoor. By
this way of promotion the target group should be enthusiastic
already so that the word-of-mouth advertising is positive and that
the social groups of the target group are be informed. Flyers If
the customer buys an Ignoor bag, there is a bag included to protect
the bag. Several promotion cards like a flyer or a company
information card, what Ignoor already have in use, will be included
with each sell. So the customer can see the rest of the 25
26. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market collection and get in contact for a bag party. When
Ignoor promotes itself to the client if they already bought a bag
then they are in a more enthusiastic mood, because they are already
familiar with the product. When they are at home, they can see the
flyer with the collection and the company information card. In this
way there could be a creation of word-of-mouth advertising. The
customer will be encouraged to buy a bag again from Ignoor. The
flyers will be given to each retailer of Ignoor bags, and with each
sell of an Ignoor bag the retailer will put the flyer in the
protection bag. B U DG E T : The costs of bag parties are very low.
The only thing that have to be taken into account is the cost of a
car, as a transport to the parties. The printing of the flyers and
the visit cards are the other cost. 500 company information cards:
150 500 flyers: 500 The total cost for the flyers and the company
information cards will be around 650. This amount can vary. It is
possible that there will be more or less than 500 flyers and visit
cards be ordered. This depends on what Ms. Wentholt and Mr. Alberga
wants. The distribution of the flyers to the retailers is also a
cost. We think that it is handy that Mr. Alberga drop them by the
retailer. At this way he can tell something more about the idea and
he maintains the relationship with the retailer. The cost that are
involved are the car cost. 26
27. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market Famous Dutch person We want to promote the Ignoor
bag by given it to a famous Dutch person. Which famous person it
will become should be decided together with Ms. Wentholt and Mr.
Alberga. T O T AL B U D GE T : The total budget for the promotion
will be around 2650. Long term: If the accessories are doing well
and the money supply is increasing, Ignoor should be using this
money to promote the bag collection. 27
28. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 6. CAORTA, B ARCELONA 6.1 STP S TRATEGY S E GM E NT
AT I O N AN D T A R GE T IN G Caortas target market is the fashion,
culture -interested segment. Due to the price range Caorta should
focus on the consumers who are not very price sensitive
(Questionnaire, 2009). Since the targeted group enjoys fashion,
they purchase clothing items for a larger sum than the average
consumer. The consumers in this segment are not normally interested
in buying clothes in major retailers. It is more common for these
types of buyers to purchase their clothing items in designer
stores, boutiques and haute couture shops (Questionnaire, 2009).
The targeted consumer in this segment could be illustrated by this
table: Segments Caorta Demographics Age 20-40 Income Middle, high
Occupation Middle, high paid jobs- Social class Middle class Family
status Single, married Psychographics Personality Creative, liberal
open minded, pro-active, energetic, elegant Interest Art, modern
art, culture, food, wine, fashion interested Lifestyle Travelling-
culture awareness Values Liberal, independent 28
29. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market Buyer Behavior Location Grcia, - in house (studio,
art galleries) Frequently Once a month Loyalty Some sense of brand
loyalty, brand loyal Caorta uses concentrated marketing and it
offers one single product line that appeal to a certain target
group only. There is a certain amount of risk involved for the
company, since it is concentrating on having a strong position in
only one segment of the market. P OS IT I ON I N G Caorta is
positioned in the less price sensitive/Exclusive part on the
fashion market. This represents designer clothes, haute couture,
and high quality designs with premium pricing. Caorta is not trying
to attract customers from other parts of the market, such as people
from the more price-sensitive segment or those who value
functionality rather than image. Caorta does however not position
itself next to the highest set of luxury brands, such as Gucci,
Prada, Chloe etc. 6.2 M ARKETING M I X P R O D U CT Caorta sells a
specialty product, which is of interest to a narrow segment in the
fashion market. The product line is fairly slim, but with a certain
depth. Caortas core product satisfies the customer needs of
decoration, self-actualization, sensuality, and expression of
personal style/personality and of being unique. The needs of
protection, ease of care, versatility, are already fulfilled by
other brands at a cheaper price. 29
30. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market The actual products produced are jackets, blouses,
leggings, dresses, skirts and coats, which form one product line.
All pieces are designed and handmade using high quality fabrics
from France and Italy, and there are only 2-3 units of each piece
created for each city. As mentioned before one collection is made
each year and it reflects the brand and its philosophy. A second
product line could be identified as tailor made clothing, which so
far consists of one wedding dress. Caorta has to some extent also
been able to focus on its augmented product by offering its
customers a possibility to directly contact the designer, Camila
Orozco, through e.g. telephone contact (Orozco, Camila, 2009).
Branding Caorta as a brand by its own could be considered
relatively strong, as its customers have shown a demand for the
products by returning to the designer (Orozco, Camila, 2009).
However the brand itself at this moment has a limited impact on the
buyer behavior, since the customer base and size of the brand is
still small (Questionnaire, 2009). Although in the case of tailor
made wedding dress, the brand and design was of a high importance.
The same brand is used for both the clothing line and also for the
complementary photographing. P L AC E Caorta sells its products
directly to its customers, as well as using intermediaries such as
Art Galleries. Caorta does not have its own store and is a
non-store retailing activity, apart from the exception of the multi
brand store (Orozco, Camila, 2009). The direct contact with Caorta
has mainly been established through various events and trade fairs,
where customers have been able to receive contact information so
that they can place an order later on. In Barcelona the products
were also exposed and sold in an Art Gallery in Grcia (Orozco,
Camila, 2009). 30
31. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market P R O M OT I ON Caorta has so far not been
emphasizing any particular marketing method/strategy to further
reach new customers, and the budged so far has been around 500
Euros. However the designer has as mentioned before been able to
successfully use personal selling through different events e.g. the
fashion show in Bogota and trade fair in Barcelona, as well as
using social forum such as Facebook. P R I CE Caortas products are
in a wide price range, where dresses cost 180 400 Euros, skirts 80
200 Euros, coats 300 - 480 Euros, jackets 250 - 320 Euros, blouses
80 - 120 Euros and leggings 25 - 35 Euros. There is a mark-up
charge of 30% to the production cost (Orozco, C, 2009). The
following table illustrates the profitability of the business,
based on Caortas own estimations on price range and the
distribution of the items: Supplement charge Number of items Item
Leggings Skirt Dresses Coats Jackets Blouses Sweaters Total Price
range 25-35 80-200 180400 300480 250320 80120 ??? 30% 30 Avg. Price
Profit/item 30 7 140 32 % of total sales 2% 18% Pieces 0,6 5,4 290
67 40% 12 390 90 10% 3 Sales 18 756 348 0 117 0 Profit 4 174 285 66
10% 3 855 197 100 150 23 35 10% 10% 3 3 300 450 7029 69 104 1622
803 270 31
32. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 6.3 C OMPETITIVE A NALYSIS OF E UROPEAN C ITIES
Barcelona, London, Paris and Amsterdam are all in their way
interesting markets for Caorta to enter. The cultural sense and the
liberal fashion attitude in these cities represent various segments
of the fashion market; Haute couture, ready to wear and Mass market
(Types of fashion, 2008). There are also many already established
cultural environments such as: museums, modern contemporary art
exhibitions, music events, and culinary food in the cities.
Indicators such as Gross national product per capita, economic
growth, consumer behavior, distribution of income and unemployment
could not be valid points to take into consideration in Caortas
case because of the relative small difference between the cities.
The important aspect for the expansion of Caorta is that the cities
provide a forum for artistic performances and thereby interest and
demand. However indicators such as Gross national product per
capita, economic growth, consumer behavior, distribution of income
and unemployment are not valid points to take into consideration in
Caortas case, since Caorta is not attracting the mass market.
Caorta attracts as mentioned before a narrow and specified segment
in the market (please see section Segment, targeting and
positioning). Based on this assumption, Caorta should focus on
identifying the target groups and forums in the various cities,
e.g. art galleries and fashion events. 6.4 C ONCLUSION The European
fashion industry is competitive and many European brands are well
known around the world. The fashion market consists mostly of small
companies and some larger fashion houses. Caorta and its designer
Camila managed to successfully enter the market two years ago.
Although Caorta has established a customer base in Europe, it still
requires a more distinct marketing strategy. Due to the companys
limited resources, aspects such as promotions have partially been
left out. There is also still room for improvement on the 32
33. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market strategies for price and product. However the
current distribution approach is sufficient, since it is cost
efficient and reaches its customers. 6.5 R ECOMMENDATIONS P R O D U
CT Caorta could focus more on the actual aspects of the product.
For the actual part Caorta should offer the clients an improved
shopping experience. The experience should revolve around a
stronger personal relationship with the products. To reach this
objective we suggest a letter, which describes the idea with the
collection - the design, fabric, vision etc. The designers
philosophy should also come across in the letter, together with
information about the brand. Giving each piece a stronger identity
will encourage brand loyalty. Another aspect is the packaging,
where we suggest a consistent, identifiable and personal style to
wrapping of the products. This will also increase the shopping
experience for the customers. Caorta has the capacity to add
another product, by introducing a tailor made line. This line
should however not be compared with the main product line, since
that might cause confusion for the customers and decrease brand
loyalty. However it is vital that the new line goes under the brand
Caorta, as the promotion becomes increasingly cost effective. The
benefits of this developed line are less business risk and another
source of income. P R O M OT I ON Due to the lack of monetary
resources only 500 Euros have been allocated to the marketing
strategies. Caorta is in the introduction phase and needs cost
efficient ways to promote the brand. We believe that a blog and
website (forum), which represents the brand, should be created, in
order to reach and inform existing and potential buyers. An
advantage of the 33
34. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market blog is that it easily reaches its target group and
it is a good way of networking with other people in the business.
Other ways of communicating with the broader public is through
uploading the already existing clip on YouTube. Facebook is a
networking tool already used by the company, and we suggest a more
interactive networking site; Asmallworld. Asmallworld differs
itself from Facebook by facilitating the creation of new contacts
with various business people. There is for example a
well-established section for only fashion and designers. A critical
recommendation to Caorta is to create a CRM system, which makes it
easier for the company to keep track of the activity of its
customers. This will increase the relationship with the customers
and it will provide Caorta with sufficient information. Thereby
Caorta will be able to use more efficient promotion strategies -
promoting the right product to the right people at the right place.
Caorta needs to know its customers more in detail compared to the
current situation. P R I CE Caorta should further develop a price
strategy to increase its revenues, and therefore the following
steps are suggested: Caortas current price strategy has its
limitations, since the quantity of the produced goods and the
profits are biased. The revenues from leggings contribute with only
54 Euro, while the dresses contribute with more than 10.000 Euro.
It could be more suitable with a price strategy that relates to the
actual demand. We suggest that for example leggings are to be
promoted with a specialty-reduced price to lure the customers into
buying other products such as dresses. Furthermore we suggest that
the dresses could be sold with an increased margin, which also
could increase the exclusivity through the premium pricing. 34
35. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market If Caorta wants to survive on its own finances, with
the already implemented strategies the quantity produced must
increase from 30 to 300 units. This would raise profits and give
Camila an income around the average Spanish salary. At that point
it must be decided whether it is reasonable to restrict the
production to 2-3 pieces per item for each city. The following
table illustrates the profitability of the business, based on
adjustments in the quantity produced: Supplement charge Number of
items 60% 300 Price Avg. Item range Price 37 Leggings ? Skirt ? 172
357 Dresses ? Coats ? 480 Jackets ? 351 123 Blouses ? Sweaters ?
185 Total % of total Profit/item sales 14 2% 65 18% 134 40% 180 10%
132 10% 46 10% 69 10% Pieces 6 54 120 30 30 30 30 Sales 222 9305
42831 14400 10523 3692 5538 86511 Profit 83 3489 16062 5400 3946
1385 2077 32442 Seasonal discount or promotional discount could be
used in order to sell out-dated pieces. Due the current financial
crises and the change in peoples buying habits Caorta should adapt
its prices. However in order to protect the brand, the pricing
strategy should not involve discount on up-to-date pieces. In the
long term it will be beneficial for the company to increase its
supplement charge to a figure around 60%, resulting in an increased
profit and a stronger position for the brand/ image. 35
36. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market B U D GE TI NG B A S E D O N R E C OM M E N DA T I
ON S The mentioned letter that should be given to the customer at
every purchase should not cost more than 0.70 /letter (paper and
ink included). The packaging should have a price around 1, since
the packaging does not have to be expensive, it should only have a
personal touch. Furthermore the necessary webpage could cost from
200- 5000 depending on the supplier and the quality of the product.
Caorta needs a simple, easy webpage that also includes the various
elements and philosophy of the brand. Therefore the price could be
around 300-400 for the actual webpage and an added annual expense
around 50 . The blog, Facebook and Asmallworld do not have any
direct expenses, but Ms Orozco will have to put labor hours in
order to maintain the different networks. The CRM system will also
demand labor hours, approximately 15 minutes per customer and year.
36
37. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7. E UROPEAN F ASHION M ARKET Q UESTIONS 7.1 W HAT
ARE THE MAIN CHARACTERISTICS OF THE MOMEN T ( MARKET DEVELOPMENT
AND TRENDS )? CREATIVE INDU STRY AT THIS The Global Financial
Crisis The financial crisis has negatively affected he fashion
industry through the growing concern regarding consumer confidence
and spending. Several major retailers have faced severe drops in
earnings, and some have been forced to restrict expansion ambitions
(Prada lays foundations, 2009). When examining the drop in S&P
Retail Index compared to the drop in Dow Jones Industrial average,
it can be identified that the retail index did not plunge to the
same levels as the industrial average. (Financial crisis could be
fashion, 2008). It is likely that a consolidation in an industry
that is still fragmented will occur, as a market recovery is
doubtful. As changes in consumer buyer behavior has changed,
resulting in a fall in demand, the well-established brands are
still safe, however the weaker ones may go under if the market
pressure continues (Luxury groups eye retail, 2009). Some providers
are reducing their work force and fighting to service debt taken on
during the years of market expansion (Prada lays foundation, 2009).
One of the consequences of the decrease in consumer spending has
been that many retailers have put up discount prices in order to
increase sales. Many other smaller fashion entrepreneurs have also
been affected by the decreased demand, and have therefore not been
able to show their collections in different locations (Orozco, C,
2009). Fair Trade and Organic fabrics Developments such as Organic
fabrics and Fair Trade products are currently trends in the fashion
industry, as some people are demanding ethically produced garments.
The idea of 37
38. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market Fair Trade goods is to increase exports from
developing countries and provide the workers the standards for
international labor (reasonable work hours, no child labor, fair
living wage etc), environmentalism and social policy in areas
related to production of goods. Many designers and retail stores,
such as Stella McCartney and ZARA have also increased the usage of
Organic fabrics in their lines and collections (A Stella Turnout,
2008). As environmental concerns are increasingly affecting
consumer choices, the organic cotton industry is also witnessing an
increased demand in Europe (Europe's Fashionistas Go Organic,
2007). High street retailers collaborating with high-end designer
There has been a trend going on for the last couple of years where
retails stores such as Mango, Top Shop, H&M have been using
high fashion designers such as Stella McCartney, Victor & Rolf,
Karl Lagerfeld, and celebrities such as Penelope Cruz and Kate Moss
in order to attract more customers (High end designers in low,
2009). The most recent collaboration was the British high fashion
designer Matthew Williamson and the Swedish retail store H&M
(Matthew Williamson brings, 2009. 38
39. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7.2 W HICH ARE TH E ECONOMIC OPPORTUNITIES A
MSTERDAM AND B ARCELONA IN THE NEXT FI VE FOR THE FASHION INDUSTRY
IN YEARS ? There are many economic opportunities in the two
mentioned fashion markets; one way that existing brands can
increase awareness is through re-branding their labels, which
basically means re-launching an active product. The lingerie brand
Hunkemoller is planning to change the name of the brand to Bodique.
The idea is to target a wide range of people and to position
themselves in the European market by using tactical re-branding.
The warehouse V&D re-organized their entire collection, in
order to become more competitive in the fashion industry.
E-commerce is also becoming more important in the fashion business,
since it enables consumers to have easy access to different labels
and shops. An example is the website, www.asos.com from the UK,
which has been successful in online selling. The extension of the
online fashion stores could be an economic opportunity for
Amsterdam and Barcelona. Although the increased usage of Internet
has influenced the fashion business positively, it has also
contributed negatively to many brands. The reason is that many of
the brands intangible elements such as the design of their retail
stores have diminished. 39
40. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7.3 W HICH CITI ES ARE COMPETITO RS FOR B ARCELONA
AN D A MSTERDAM IN THE FASHIO N - INDUSTRY ? H OW STRONG IS THI S
COMPETI TION ? W H AT ARE THEIR MAIN STRENG THS AND WEAKN ESSES ?
The Global Language Monitor, who monitors the media for information
regarding the fashion industry, annually compiles a list of the top
25 fashion cities in the world. In this ranking New York is ranked
as the most prominent city in the fashion world, followed by Rome
and Paris. Barcelona is ranked as No. 13, whilst Amsterdam is not
included (New York Tops List, 2007). The fashion industry in Paris
has a rich history, and is famous for its exclusive fashion market.
Some of the worlds renowned silk is produced in France, and is used
together with carded wool to create complex designs characterized
by clarity of silhouettes (Jones, S. J, p. 35, 2005). France has a
well-established fabric industry that works in perfect harmony with
its fashion designers (Fashion capitals of the, 2009) As will be
mentioned later in this assignment, one of the efficient ways of
marketing your city as a fashion capital is by hosting a fashion
week. This is an industry event, where designers are able to
showcase their collects and for buyers and press to examine the
latest trends that wont hit the stores for several months. The most
well established fashion weeks are hosted in Milan, Paris, London
and New York City. Whilst Milan mainly focuses on the big brands,
New York is the stage for labels designed by socialites for
socialites, Paris focuses primarily on avant-garde and ladylike
chic, and London is the source of new fashion talent (The Big
Question, 2007). Isolated from the fashion industry in France
during the World Wars, New York had to develop their own identity
and products. The new strategy was based on national resources and
fabric development. Previously mainly derived from French fashion,
New York was left by its own during the world wars. Rich of
homegrown cotton and prominent in fabric development, they pursued
their own strategy. The style differs from the exclusive 40
41. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market European fashion, since New York is mainly famous
for its sportswear and denim (Jones, S. J, p. 47, 2005). One of the
largest exporters of textiles and clothing in the world is Milan,
Italy. Distinguished by excellent craftsmanship, its famous for
labels like Armani, Prada and Versace. Apart from the suits, the
strengths of Italian fashion industry are in general footwear and
knitwear. As Italians in general spend a lot of money on clothing,
there exist few street style brands (Jones, S. J, p. 38, 2005). All
of the three mentioned cities are heavily backed-up by government
councils that contribute with resources in order to hold fashion
weeks and promote designers. London does also enjoy government
support but not to the same extent, and they do face problems with
brain drain to other prominent fashion cities. Another issue is
their poor network of craftspeople. There are however, many
successful brands such as Burberry, Jaeger, Paul Smith and Stella
McCartney representing London fashion. Another style related to
London is anarchic and eccentric fashion where many designers can
find inspiration (Jones, S. J, p. 40, 2005). 41
42. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7.4 W HICH MUNI CIPAL AN D PRIVATE SECTOR COLLECTIVE
INITIATIVES EXIST IN A MSTERDAM AND B ARCELONA TO STIMULATE THE
FASHION INDUSTRY ? W H AT ARE THE MAIN CHARACTERISTICS , STREN GTH
S AND WEAKNESSES OF THESE INITI ATI VES ? Red Light Fashion,
Amsterdam High-level fashion design located in the Red Light
district of Amsterdam gives the top Dutch fashion talent the
opportunity to display their work at a location that attracts
international attention for its provocative business. From
Australia to the United States and Japan, articles appeared all
over the world about this intriguing mix in the historic area of
Amsterdam; one is able to admire Dutch couture next to the
well-known girls of pleasure. The list of high-level fashion
designers varies from couture talent Jan Taminiau, shoedesigner
Roswitha van Rijn to underground street wear designer Bas Kosters.
Red Light Fashion Amsterdam embroiders on Turning Talent Into
Business, in which 16 Dutch fashion talents spend two years being
mentored towards professional entrepreneurship. The designers get
business advice and take part in workshops together covering
aspects such as production, marketing, financial and juridical
management. By working, living, exposing and inspiring each other
the designers contribute towards putting Amsterdam on the
international fashion map. IGNOOR is also a part of this project
and it helped IGNOOR in the early stages to create more brand
awareness. Strengths: The Red Light district has become an
international hotspot for design tourists. Red Light Fashion
Amsterdam gives an impression of the diversity and the strength of
the Dutch fashion identity. Weakness: The Red Light district will
become a temporary fashion hotspot. The temporary aspect of this
project makes it less desirable to participate as a designer.
42
43. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market World Fashion Centre, Amsterdam The meeting point of
fashion: The World Fashion Center in Amsterdam is the largest
fashion trade centre in the world, with more than 400 showrooms and
many national and international brands. The World Fashion Center
has its own internal management organization, which is responsible
for the overall management of the center (D ontmoetingsplaats voor,
2009). It is possible to rent a showroom, tailored to your needs
and budget, which is why the showrooms are a great opportunity for
young entrepreneurs to show their collections and to raise brand
awareness. Strengths: The WFC gives Amsterdam and fashion a lot of
attention and awareness, what is very optimistic for the future of
both. The WFC supports young entrepreneurs in the early stages of
the development of their brand/label. Weakness: A lot of
competition for a starting company and high costs when you are not
supported by the WFC. Amsterdam Fashion Week Established in 2004 as
an initiative to put Amsterdam on the map as an international
destination for Fashion. Twice a year, Fashion Week forms the
centre-point of the Dutch fashion world, with a full schedule of
catwalk shows, trade fairs, presentations, lectures and parties
(About, 2009). The show is held at the former Gas Factories in
Amsterdams Westergas area, and caters to both you and established
designers. With the growing 43
44. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market interest in Dutch Design', Amsterdam International
Fashion Week attracts a growing audience of directional
international brands, buyers and press. Answering to immense
popular demand, Fashion Week DOWNTOWN consists of numerous public
catwalk shows, parties, shop launches, lectures and expositions,
all organized in collaboration with local museums, galleries, clubs
and shops. Focusing on Amsterdam's reputation as an inspiring city,
the AIFW program combines commerce with creativity. Amsterdam has a
lot to offer: a growing pool of talent, an inspiring place to visit
and a vibrant place to do business. Strength: The Fashion Week
raises international awareness of Amsterdam as a fashion hotspot.
Weakness: The fashion week does not have the international
recognition, such as the fashion weeks of Paris, Milan and NYC.
Catalan Fashion Action Plan, Barcelona The government may also take
part in increasing the exposure of the fashion market by providing
financial support to the development of the industry, such as
Catalua has made possible through the Catalan Fashion Action Plan.
This is a government incentive, which is to stimulate the market
during the years 2007 2010. It is a collaboration between the
Government of Catalua and Barcelona City, and intended to revive
the textile sector of Barcelona. As a major element of the Catalan
Fashion Action Plan, there will be hosted a fashion show called 080
Barcelona Fashion that aims to increase the awareness of Barcelona
as an international fashion capital. According to the official
website of 080 44
45. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market Barcelona Fashion, the main lines of action are as
follows; internationalization, linking creativity and industry,
financial support, support to emerging talent and the organization
of a fashion event in the city of Barcelona intended to launch the
Catalan capital onto the international stage in the field of design
and cutting-edge fashion. (080 Barcelona Fashion, 2009). Strengths:
The fashion action plan implies a relationship between the Spanish
Council, the strength is the government support Weakness: The
mentioned plan is only lasting until 2010, which indicates a tight
time frame. It is however likely that once the plan is fished
another government-supported scheme will begin. Bread & Butter,
Barcelona As a tradeshow for selected brands, BREAD & BUTTER
provided Barcelona with a concept of an innovative trade fair event
for the progressive, and contemporary clothing culture. As an
international specialist trade fair for Street and Urban Wear,
BREAD & BUTTER represented a marketing and communication
platform for brands, labels and designers from the areas of Denim,
Sportswear, Street Fashion, Function Wear and Casual Dressed Up, as
well as for suppliers from the preliminary stage of the textile
industry (Bread and Butter, 2009) 45
46. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market Strengths: With unique brand portfolio, BREAD &
BUTTER confirms its position as the leading international trade
fair and trademark it is the meeting point for buyers, traders and
representatives from the textile industry press. The tradeshow for
selected brands brings together both inspiration and business
according to the basic principle of Fun & Profit. Its early
date makes BREAD & BUTTER the kick-off event within the
industry. Weakness: Highly competitive and costly to organize such
an event. 46
47. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7.5 W HAT KIND OF ( INFRASTRUCTU RAL ) SUPPORT DO
YOUNG BEGINN ING ENTREPRENEURS NEED TO BECOME SUCCESSFUL IN TH E
FASHION INDUSTRY ? W H AT COU LD BE HELPFUL FOR THEIR CHANCES OF
SUCCESS THAT COULD BE PROVIDED BY ORGANIZATIONS LIKE TRADE -
INDUSTRY , CITY COUNCI L , CHAMBER OF COMMERCE , ETC ? For the
introduction of a collection is it required to have a good
alignment of all the goods. It is important to understand the
supply chain and the various processes involved. An entrepreneur
should also be aware of the duration of the production process, so
one knows when the products can be expected in the store. An
entrepreneur aims should to be as close as possible to the
consumer, in this way the company will get the right information to
meet the consumer requirements. To understand these issues it is
important to look at the turnovers and different styles in order to
create a database, which can track all the purchases. In this way
it is able to see what the key products are. This so-called
database development is used as the basis for an ERP system. In
this way, the management can make the important decisions regarding
the businesses. A just-in-time strategy is good way to start for a
young beginning entrepreneur, you have small inventories and you
can keep all the expenditures at a low point. Another option, which
can make a difference, is to have a good relationship with a
supplier. In Amsterdam you can make use of the TNT Fashion Group.
Transport TNT Fashion Group is a leading provider of integrated
supply chain solutions for the fashion and lifestyle industry. They
work with track & trace system, so you can see at which point
the products are located at any moment, in this way both parties
know when the goods are received. These networks are supported by
advanced technologies that TNT Fashion Group enables to establish a
reliable service to ensure real-time online information about the
status of the shipments. It is therefore important for a beginning
entrepreneur to know all the involving processes of a just-in-time
strategy, if you want to have a decent infrastructural basis.
47
48. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7.6 I DENTIFY THE KEY SU CCESS FACTORS FOR SMALL
START - UP FASH ION COMPANIES . W H AT ROLE , IF ANY , CAN OR SHOU
LD , THE CITY COUN CIL PLAY THIS MATTER . IN According to Robert G.
Cooper, one of the worlds foremost experts in product development,
the primary key success factor is a unique and superior product
(The first and most, 2004). It is a general concept, however it
could also be applied to start-up fashion companies. Such a product
should meet the customers needs better than the competition, at the
same time be innovative and have a high product qualityamong other
characteristics (Top ten factors, 2002). Another important key
success factor is a sharp and consistent product definition, which
should be in agreement with a strong market orientation (Jerry
& Lind, p. 40, 2007). In order to achieve a successful product
the supplier of the product needs a well-documented marketing plan,
which clearly defines the needs of the consumers, as well as having
control over the brand. Government supplied support schemes such as
consulting and entrepreneurial aid are vital to increase the
probability of success for new ventures. Many entrepreneurs may
lack basic knowledge in various administrative areas of business,
such as accounting and financing. Aid, such as insightful
management support and coaching, is useful to prepare and develop
the companys strategy (Top ten factors, 2002). 48
49. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7.7 H OW COU LD TH E CITY PROMOTE ITSELF BETTER AS A
HOT SPOT FOR FASH ION DESIGNERS AND ENTREPREN EURS ? FORUMS ARE KEY
IN THIS W HAT BUSINESS ? CHAN NELS SHOULD BE USED , WH ICH There
are various methods that may be used to efficiently promote and
thereby raise the awareness of the fashion market in a city,
however one of the key forums is events. Barcelona has several
programs in place to promote themselves as one of the fashion
capitals of Europe, some of them are: One of the prominent ways of
exposing a city to the fashion industry is by hosting a fashion
week or similar events, which enables designers to showcase their
collections. BREAD & BUTTER has for the last four years hosted
the semi-annual Barcelona Fashion Week, which has served as a
international platform for promoting the brands and designers from
the Denim, Sportswear, Street Fashion, Function Wear and Casual
Dressed Up segments of the market. The summer 2009 exhibition has
been cancelled, and returned to Berlin where it originated (BREAD
& BUTTER, 2009). In 2008 BREAD & BUTTER Barcelona was
visited by more than 90 000 people from over 100 countries, which
is an increase of 50% from the previous show (Canut, C, p.18-19,
2009). Another way of increasing the awareness of a city as a
fashion capital could be by linking the city with a brand, as the
Barcelona managed when they signed a branding agreement with MANGO
- the international clothing retailer. This agreement comes as a
part of the Catalan Fashion Action Plan, in an attempt to grow the
fashion retail market in the region. Through this agreement
Barcelona seeks to raise awareness of Barcelona as a fashion centre
in Europe by including their brand on some of the clothing items
(Mango and the Barcelona, 2008). One issue facing Amsterdam and
Barcelona compared to the key fashion cities in the world is money.
The fashion shows in NYC, Paris, Milan and London are larger in
scale than the 49
50. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market shows in Amsterdam and Barcelona. Big sponsors are
providing the money needed to organize a great event. Other
solutions are necessary to get a unique position in the world of
fashion. Using a different kind of strategy would help these
cities: Focus on Niche markets. The Dutch culture is very casual.
The Denim market is very big and they could differentiate
themselves by focus their strategy on this niche market. The
Spanish fashion market is very focused on upcoming designers.
Although London has a position in the market by supporting upcoming
designers, Barcelona could maybe do that for the Mediterranean
designers 50
51. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7.8 W HAT COULD A MSTERDAM AN D B ARCE LONA LEARN
FROM EACH OTHER ? There are two major differences between Barcelona
and Amsterdam support in Fashion. As mentioned before, Amsterdam
has the biggest trade centre in the world and Barcelona has a
leading international trade fair. Both companies/events are unique
and could provide very interesting knowledge for each party. The
WFC supports fashion designers in a different way than a trade fair
and the other way around. This information is very useful for both
parties to maybe apply in future projects. When working in a global
commercial environment, knowledge of the impact of cultural
differences is one of the keys to international business success.
Improving levels of cultural awareness can help companies build
international competencies and enable individuals to become more
globally sensitive (World Business Culture, 2009). Each city has
their own values and traditions. There are also significant
variations in the way societies organize themselves, in their
shared conception of morality and in the ways they interact with
their environment. That is an interesting point when you want to
make your company international successful. 51
52. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 7.9 G IVE 2 CONCRETE PRACTICAL AND PROFI TABLE IDEAS
HOW EACH CI TY COULD IMPROVE THEIR POSITION AS A H OT SPOT IN THE
FASHION INDUSTRY . In the fashion area of the city, an idea could
be to put up high-resolution cameras n order to capture the real
fashion on the streets. The cameras should automatically take
pictures of individuals every minute. The taken photos could later
be used and shown on a big screen at an appropriate location.
During special occasions or day, one could hire a fashion expert
or/and a visual artist to compose the screen. To make the whole
thing a bit more profitable you can implement some advertising in
the fashion pictures, e.g. were to buy particular items. A second
proposal could be to arrange a catwalk in centre of the city, with
local brands and designers who expose their collections together
with other artists. This arrangement could result in increased
goodwill, which in the long term can give the city a better
reputation as a fashion city. 52
53. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market 8. B IBLIOGRAPHY 8.1 A MSTERDAM Alison van der
Lande, 2009 Available URL:
http://www.alisonvanderlande.co.uk/index2.html Date Viewed: April
12th 2009 Clean Chic, 2006 Available URL:
http://www.peopleplanetprofit.be/beelden/riannedewitte.pdf Date
Viewed: April 28h 2009 CBS, 2009 Available URL: www.cbs.nl Date
Viewed: April 19th 2009 Lupo, 2009 Available URL:
http://www.lupo.es/lupoeng.htm Date Viewed: April 15th 2009 NIBUD,
2009 Available URL: www.NIBUD.nl Date Viewed: April 22th 2009 Pepe
Alba, 2009 Available URL: http://pepe-alba.com/about.htm Date
Viewed: April 10th 2009 53
54. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market PhilineOnline, 2009 Available URL:
http://www.philineonline.com/index.html Date Viewed: April 17th
2009 Rabobank, 2009 Available URL: www.rabobank.nl Date Viewed:
April 20th 2009 Zamoy, 2009 Available URL:
http://www.zomoy.com/zomoy.php?id=zomoy Date viewed: April 12th
2009 8.2 B ARCELONA EU China textile agreement10 June 2005; Memo,
2005 Available URL:
http://www.epp-ed.eu/wto/docs/eu-china-textile-en.pdf s Date
viewed: April 12th 2009 European Foundation for the Improvement of
Living and Working Conditions, 2008 Available URL:
www.eurofound.europa.eu Date viewed: April 12th 2009 Orozco, C.
(2009, April 17). About Caorta. (H. Ghiri, Interviewer) 54
55. Marketing Plan for Caorta and IGNOOR, and the European
Fashion Market Phase-out of the Multi Fiber Arrangement (MFA) and
its Implications for Workers Available URL:
http://www.iccr.org/issues/css/mfa_factsheet.htm Date viewed: April
17th 2009 Textiles, 2009 Available
URL:http://www.wto.org/english/tratop_e/texti_e/texti_e.htm Date
viewed: April 12th 2009 TEXTILES and CLOTHING, 2008 Available URL:
http://ec.europa.eu/enterprise/textile/statistics.htm Date viewed:
April 12th 2009 Trends and drivers of change in the European
textiles and clothing sector: Mapping report, 2008 Available URL:
http://www.eurofound.europa.eu/pubdocs/2008/46/en/1/ef0846en.pdf
Date viewed: April 14th 2009 Types of fashion, 2008 Available URL:
http://www.designed