MARKETING PLAN

FOR STRATEGIC MARKETING

Case study : Musette









Authors :
Bechir Adriana (group 1)
Clenciu Irina (group 1)
Custura Ruxandra (group 1)
Imre Botond (group 2)




Bucharest
2013


ACADEMY OF ECONOMIC STUDIES BUCHAREST

FACULTY OF BUSINESS ADMINISTRATION IN FOREIGN
LANGUAGES
____________________________________________________________________________________________
Table of contents

1. Situation Analysis
A. Industry Analysis
B. Sales Analysis
C. Competitive Analysis
D. SWOT Analysis
E. Analysis of Marketing Activities

2. Marketing Objectives

3. Marketing Strategy
A. Market Segmentation Strategy
B. Targeting Strategy
C. Product Life Cycle

4. Marketing Programs
A. Marketing Mix
B. Loyalty Programs
C. Customer Service & Support
D. Market Research
E. Trust and credibility
F. Trade Promotions

5. Implementation Plan
A. Product Design and Development
B. Marketing & Sales
C. Distributors
D. Scheduling GANTT

6. Performance Evaluation and Monitoring
A. Monitoring AD Campaigns
B. Customer Profiling
C. Sales force Evaluation

7. Financial Information
A. Budgets
B. Sales Projection for 5 years








4. Marketing Programs

A marketing program is coordinated through a numerous sets of activities that help the
company to achieve its marketing objectives and therefore, build strong relationships and
maximize sale.

A. Marketing Mix

The marketing mix is probably the most famous marketing term. Its elements are the
basic, tactical components of a marketing plan. Also known as the Four P's, the marketing
mix elements are price, place, product, and promotion.
Pricing strategies is very important to a company refers to the methods by which a
business calculates how much it will charge for a product or service. There are many pricing
strategies that have to be taken into consideration when deciding a products price.
Cristina Batlan, the creator of Musette has chosen two pricing strategies: premium and
geographical pricing. Premium pricing basically means using a high price where there is a
uniqueness about the product or service. Since Mussete operates in the fashion industry which is
very dynamic and there are even some products that are created in limited editions only for the
Romanian stores or only for the U.S. stores, this company also falls into this category, as well as
most companies of its type. Geographical pricing is evident where there are variations in price in
different parts of the world. For example, prices are slightly higher in America, even if the
U.S. taxes are lower than our VAT.
The price is established by Musettes local partners reported to the market, the stores
position and purchasing power of Americans, which is far larger than the Romanians. In
addition, Musette has also adopted a promotional price strategy. Twice a year, the company
offers significant discounts.
Another element of Neil H.Borden's Marketing Mix is Place. Place is also known as
channel, distribution, or intermediary. It is the mechanism through which goods and/or services
are moved from the manufacturer/ service provider to the user or consumer. The Musette Exim
SRL has opted for a direct marketing strategy, i.e. they produce the products themselves, in their
own factories and then they sell them in their own shops. However, in the U.S., the Internet is
also used as a Channel Intermediary. The customers can therefore go online, on Musettes Web
page and buy the products they desire. This technology is not yet
available in other countries, although the owner has confessed this
is one of the companys future goals, because of the shift in
commerce and consumption which benefits distribution via
the Internet.
Concerning the third element of the Marketing Mix,
Product, we have to take into consideration the Three
Levels of a Product, the Customer Life Cycle and the
Product Life Cycle.
The three levels of a product, as they can be
depicted in the picture are: Core Product, Actual Product
and Augmented Product. The Core product is the benefit of
the product that makes it valuable to you. For example, if you
buy a car, the core product is the convenience or speed. When it
comes to fashion however, things are not so clear. Ask any man about the benefit of a shoe or a
bag and he will definitely tell you there is none. Ask a girl and you will get your answer: the core
products or benefits of Musette are fashion sense, beauty and quality. The owner of Musette
handpicks the materials for everything herself. She also tries every product first. If a show has a
defect, does not fit perfectly the shape of her leg, that shoe will not go into production. When she
created the flats, she gave the first products to her employees to test them for six months and
then report what bothered them. That is why when buying from Musette, you are confident that
every penny you spent is worth it. The actual product is the tangible, physical product, in this
case a pair of shoes or a bag. The augmented product is the non-physical part of the product, for
example the warranty or the possibility of returning the product if you are not pleased with it.
A product life cycle comprises of five stages: introduction, growth, maturity, decline,
withdrawal. Generally speaking, the Musette products life cycle is a season, because new
products are introduced seasonally. Also, new catalogues and advertisement are created when a
new collection is introduced in order to increase customer awareness. However, one cannot
really say that when a season end is close, the product enters the decline stage. Because of the
promotions, maybe more persons will buy the product than they have in the maturity stage.
Needless to say, the customer life cycle is related to the product life cycle. Essentially,
the customer life cycle is a summary of the key stages in a customer's relationship with an
organisation. Musette appeals to women who appreciate quality and comfort but also desires
pieces that are distinct and rare.
Another one of the 4P's is Promotion. This includes all of the tools available to the
marketer for 'marketing communication'. If we look to the promotion mix from Musettes point
of view, we can easily notice that Sales Promotions, Advertising and Public Relations are the
most used tools. Musette has discounts twice a year and by through its advertising campaigns, it
strives to create a long term relationship with the customer. Exhibitons have also been adopted
recently by the company, since it currently operating a showroom in Dusseldorf, Germany.
To sum up, the marketing mix is a crucial element a company has to pay attention
continuously to, since an appropriate marketing mix helps the organisation in ways that both
targeted consumer groups are reached, as well as organizational objectives are reached.

B. Loyalty Programs

Loyalty programs are structured marketing efforts that reward, and therefore, encourage
loyal buying behavior, which is beneficial to the firm.
Musette thought of giving fidelity cards for those that buy once for more than 1000 RON.
This card has several advantages. To begin with, the client has a discount of 10 % at each buy
and for her or his birthday it is added an extra-discount of 5%. Thus, all discounts are applied
only to products which do not benefit of other promotions.
In addition, possessors of those cards are invited to
presentations of future or exclusive collections and have the
possibility to buy them before coming into stores.
Musette also collaborates with the initiatives of other
companies. The firm is partner with a special concept
designed by AFI Palace Cotroceni Mall, which means a VIP
card. It offers a 10% discount, which can be cumulated with
other promotions, but not exceed 50%.
Musette has also had many collaborations with the media. An example is a popular
website among Romanian women, www.perfecte.ro, where women could post their special
outfits on the website and the one who received most of the votes, would win a full range of
leather accessories from Musette. The firm is also involved in campaigns. Glamour Stilleto
Run is a running contest on heels organized by Glamour Magazine and had as main prize a
1500 Euro Mussete voucher.
All these associations are explained as a strategic partnerships, designed for customer
loyalty, and also known as coalition programs.
Turning the clients loyalty into a game is a way of encouraging customers
to buy again and help solidify the brands image. Musette organizes a contest
each week, where the rules are that a product is nominated as the product of
the day and whoever buys it, will compete for the prize at the end of the week.
This contest takes place during the sales period, where the nominated products
are part from the previous collection and the prize is a new pair of shoes from
the new collection.


C. Customer service and support

Customer service and support (CSS) is the part of a company's customer relationship
management (CRM) department that interacts with a customer for their immediate benefit.
First of all, all the shop assistants from the shops are available to offer all the needed
information. They are the most reachable and capable to direct the clients how to solve the
issues.
Secondly, Musette is also available
on the most important social platforms, such
as Facebook, Instagram or Twitter, including
also a website, where questions can be
addressed and solved in a short time.
Moreover, the firm assures technical
help for the products. Tailoring belts or
change components of shoes are offered
within every Musette shop and it is often
solved on the spot. Also, if a specific size of
a product is not available in one shop but it is
in another one, the company will assure the transport to the closest shop to the client.
Adding to this, any product from a previous collection can be requested be the buyer and
bought at the usual price, even though it is not anymore present on the shelves.
If for any reason the client is not satisfied with the purchase, he or she may return it for
the exchange or refund of the purchase price, within 15 days from the day of the buy and with
the receipt and the original package. Any sign of wrong usage will cancel the right of refund.





D. Market research

It is important to test the shoes and purses in order to see how the audience will receive it.
The main method used by Musette is focus groups. The firm chose it because it is very good for
exploratory, qualitative research. These are formed by the employees and they test the products
in order to discover future flaws and improve them. This method has been introduced since the
beginning of the company and it has been proved to have very good results, since it has
conquered a large number of buyers.
Moreover, the company uses field trials. The stores receive different parts of the
collection and after a while, they switch products between them. Therefore, the firm can measure
which shoes and purses are more appealing for some regions and which are less successful. By
employing this simple market research, Musette performs better.
Observation is also used, more specifically in-store observation. Shoppers are watched
in action and notice how they go through stores and what they notice. Lately, all the shops have a
new design with the focus on the stars of the
collection. The correlation between cupcakes
and shoes seems to be attracting more and
more buyers.
So, through these market research
methods the company understands better the
customers, competitors and industry. Musette
has identified the products that the market
needs and how to be competitive, reduce
business risk, spot current and future
problems in the industry, and identify sales
opportunities.


E. Trust and credibility

Every business wants to be perceived well by the people in its target market. Trust and
credibility are not new concepts, and marketing departments have tried to foster these qualities in
their brands for decades.
Traditionally, companies have tried hard to convey trust and credibility through
advertising. Musette does not use television advertising or billboards. The only commercials
advertisements, which are rare, can be seen only near some shops.
The virtual world is a huge opportunity and the company takes full advantage of it, by
building trust. It speaks directly to thousands of people through their Fabook, Twitter, Instagrams
accounts and the website. The information from the social networks is updated almost daily,
introducing well-crafted and targeted content.
The transparency of the company is obvious on any virtual platform. All the information
about its history, locations, founders, collaborations and so forth, can be found easily. This
honesty creates a connection with the actual and potential buyers. Also, the values of Musette are
comfort, quality and design. The newest trends are always adopted by the firm before their
competitors. The Facebook account is updated daily with photos of the shoes that will make the
difference in trend.
Credibility is earned through evidences. Beside the sustained
quality of the shoes that can be proved easily through the manage of the
products, the buyers are always informed about the latest news about the
company. Each collaboration with a famous designer is recorded and
showed to the people who enter the virtual platforms. Or articles in
newspapers that proves once more the value of Musette.
To conclude with, Musette chooses the virtual world because in this
way they can communicate better with their purchasers, becoming more
human. Any question can be addressed and opinions can be shared.


F. Trade Promotions

Launching trade promotions can impact positively the business. In-store displays are used
at every collection. The main products are advertised through the association with different
things, like cakes. Also, the windows usually have one or two products, making more them more
appealing to the consumers.
Temporary price reductions are used by the company. At the end of
each season, Musette has its sales. The percentages increase gradually, from
20% to 50% at shoes and from 20% to 30% at purses. They last for 2 months
and in the last month, both previous and new collections are present in the
shops. Beside the final season reduction, Musette also has mid-season sales.
These temporary reductions are just for some elements of the collection and the percentages do
not go over 20%.
In addition to this, promotions are another method. For Black Friday, Musette offered a
20% discount at all products. Collaborations with different companies are another way of
reducing the price of leather accessories. Different magazines gave coupons that meant the
reduction of the price with a specific amount or percentage.
Contests are organized often. As mentioned before, one item from the previous collection
was chosen as the product of the day and whoever buys it, gets the chance to win at the end of
the week a new pair of shoes belonging to the newest collection. Sweeptakes are also preferred
by Musette. Many magazines and websites collaborated with the company. One example is the
one organized by www.perfecte.ro, where it was required to post a photo wearing Musette items
and the one that received the highest number of votes would win a new pair of shoes.
Even though statistics show that trade promotions seem to have some issues, the chosen
ones by Musette seemed to have the desired result and they will be applied also in the future.

7. Financial Information

A. Budgets

The company started with only 700 $, when the founders Cristina Batlan and her husband
started the business. Everything was done by them, including the manufacturing of shoes, since
the a part of her family used to work in the shoe industry. Marketing and other departments were
performed empirical, but times have changed and the firm evolved.
Nowadays, the marketing department has other expenses in order to sustain the success.
Below is an example of the companys business development and marketing budget in
2011:


Business Development & Marketing Budget

Tactic Category Project Name Cost Components Project Costs

Business Development


Client Meetings/Lunches Meeting Costs 4,200

30 meetings/quarter = 120
meetings/year
Travel Costs 800

35/meeting = 4,200/year

5,000

Subtotal

5,000
Branding


Direct Mail Campaign Designer 500

Q = 1,000 mailers/quarter; 4,000
postcards
Printing

3,000

Postage

400

Unique URL

100

800 #

250

4,250

Subtotal 4,250
Public Relations


PR Tracking Service Bacon's Media
Services
1,200

Yearly Subscription

1,200

PR Clipping Service Bacon's Clipping
Services
100

1.00/clipping - Anticipated 100
clippings/year

100

Subtotal 1,300
Internal Communication & Events


Annual Meeting Room/AV Rental 500

Event logistics, food & rentals Catering 2,000
2,500

Subtotal

2,500
Marketing
Supplies


Paper, Pens, Misc. Supplies

2,000

InDesign Software

1,500

Camera Supplies

100

Shipping

1,500

Color Scanner

800

Binding Machine

1,200

7,100

Subtotal 7,100

Total Budget 20,150
The planning of the budget has helped the company in this time of financial crisis, when
conditions have changed and it had to adapt to the environment. Problems were also identified
before they arouse. Therefore, the resources were controlled and the performance of the firm was
visible.

B. Sales Projection for 5 years

A sales projection is the amount of revenue a company expects to earn at some point in
the future. It's a prediction that is synonymous with a sales forecast. Both help determine the
health of a company and whether sales will trend upward or downward.
In the last years, the financial crisis made it difficult for the company to have profit. The
cost of producing have increased in the last years, but Musette decided to adopt a different
strategy than other companies in the industries and in general keep the prices at the same level.
Despite the increase in cost of production, customers did not feel it. And it proved to have been
successful. Sales did not decrease. Therefore the company estimates that for the next 5 years to
keep the same strategy, maintaining the same level of quality. Moreover, in the next 5 years it is
estimated that the financial crisis will eventually end and the economic recovery will be felt by
every agent.
Turnover of Musette

In addition, there are no new entrants on the market announced; the last ones were
Humanic and Deichman, belonging to the same Austrian group. Also, the majority of present
clients of Musette are young, meaning between 20 and 30 years old, and in 5 years they will still
be included in the targeted range of clients.