CONTENTS

EMARKETING PLAN SUMMARY .......................................................................................... 2

SITUATIONAL ANALYSIS ..................................................................................................... 2

TARGET MARKET ..........................................................................................................2-3

CHANGING MARKET FACTORS ..........................................................................................3-4
CHANGE OF MEN ............................................................................................................... 4
DEMOGRAPHICS .............................................................................................................. 4
NEEDS ............................................................................................................................... 5
TRENDS ............................................................................................................................. 5
SWOT ..........................................................................................................................5-7
KEY TO SUCCESS............................................................................................................. 7
CRITICAL ISSUES ............................................................................................................. 7
INTERNAL FACTORS .......................................................................................................... 7
EXTERNAL FACTORS .......................................................................................................7-8

MARKETING STRATEGY ...................................................................................................... 8

MISSION ............................................................................................................................ 8
MARKETING OBJECTIVES ............................................................................................8-9
FIANACIAL OBJECTIVES ............................................................................................9-10
TARGET MARKET ........................................................................................................... 10
POSITIONING .............................................................................................................10-11
STRATEGY PYRAMID ..................................................................................................... 11
MARKETING MIX ........................................................................................................11-12

FINANCIALS ........................................................................................................................ 12

EXPENSE FORECAST ...............................................................................................12-13

CONTINGENCY PLANNING .......................................................................................13-14

REFERENCE LIST ..........................................................................................................15-16

YOUJIN JU

EMARKETING PLAN SUMMARY

The company is a menswear firm. It provides simple and classic menswear with
variety colours for its clients through both the online shop and offline shop. The
company newly seeks to enter the Korean fashion market. It mainly focuses on all
about casual menswear including accessories. The company is targeting the age
group 18 to 30 Korean male. Due to five-day workweek, men have been able to wear
clothing more casual (Lee, H, 2015). Nowadays, as the higher interest of the men in
fashion, Men’s fashion industry also began to attract attention. The specific target of
the brand is 657,180 of Korean men who live in the metropolitan area
(Indexmundi.com, 2015). The company is targeting the people who need a classic
and a basic design that they can wear clothes in any situations. Street markets were
chosen as the best shopping places by many Koreans. Thus, the company targets to
open its chains stores in the places where the mobility of population is high. There
are several e-marketing strategies. These can help to enter the Korean fashion
market more easily. The first strategy is utilizing social media. This will help to reduce
the costs of advertising with a tremendous propaganda effect (Okazaki & Taylor,
2013). Secondly, the company can present a good image to clients through viral
marketing (Lekhanya, 2014). It can also reduce the advertising costs. Lastly, the
company should be prepared to advanced solutions in case of a sudden situation.

SITUATIONAL ANAYSIS

TARGET MARKET (MENSWEAR MARKET)

Interest in male fashion in Korea is increasing but, menswear sales are decreasing.
Depending on the interests, fashion increased to young casual, men in the early 20s
and 30s, upgraded the unisex line of casual brand transforming it into a male line
(Oh,K, 2013). Casual wear, previously regarded as exclusive clothing to teenagers, it
was due to the uniform liberalisation main customer target young people. However,
these days the casual wear market is becoming a lifestyle, subdivided in accordance
with the classification of age. Furthermore, changes in the lifestyles of consumers,
that is, the increase of leisure time utilisation, the pursuit of comfort. Work in clothing

1
YOUJIN JU

due to preferences of the natural relaxed atmosphere compared to the previous,

casual wear has become more and more what people prefer to wear (Lee, H, 2014).
Thus, casual wear became appropriate clothing to those who want to emphasise the
uniqueness of their own and with the desire for relaxation of the body and the pursuit
of comfort. This can be concretely seen in the form of work clothing. In all men work
clothing wear survey analysed separately from the subjects in a formal suit and
casual, it can be seen that formal suit is gradually reduced and a causal uniform is
spreading. In 2013 ‘Samsung design net’ survey, this trend accelerated more and
more, so it is indicated that 41.4% of commuters wear formal suit and 58.6% of
commuters wear casual clothing (Kim, M, 2013). In particular, it showed that when
they go to work on weekends, 76.2% of them wear casual clothing. This is
interpreted as affecting the spread of the dressdown in companies and the
introduction of the five-day workweek.

1. CHANGING MARKET FACTORS

1) Social Factors

- Five-day workweek diffusion and development of IT industry (Lee, H, 2015)

- Companies allow the dressdown (Lee, H, 2014)

- Increased interest in fashion for men (Kim, M. O., & Kim, I., 2015).

2) Economic Factors

- The rise of venture businesses and the creation of related professions

- After the national financial crisis (IMF-International Monetary Fund), a steady

increase in income

- Diversification of sales method

3) Technical Factors

- Orient ergonomic clothing

- Advanced and practical clothing pursuit

2
YOUJIN JU

- Diversification into functional lines followed in the premium line

2. CHANGE OF MEN

The men who are interested in fashion are increasing. Below are the words that refer
to such men.

 Grooming – Men generously investing in fashion and beauty

(Terms.naver.com, 2008).
 NOMU – No More Uncle (Park, 2013).
 LOEL – Short for Life of Open-mind, Entertainment and Luxury, the age group
30 to 50 men who are active in investment for themselves and very interested
in their appearances (Terms.naver.com, 2015).

DEMOGRAPHICS

According to statistics, the number of economically not working Korean males aged
between 15 and 29 reached 2.565 million in May, 2014. In contrast, the number of
economically working Korean males aged between 15 and 29 are about 2,184,500
(KOSIS, 2014). As a result, we can know that more than 50 % of Korean males aged
between 15 and 29 do not have a job. Considering these circumstances, the
company is required to measure an appropriate design and prices.

In addition, nearly 3,515,271 the age group 15 to 24 males live in South Korea.
Among them, total 9.736 million people live in Seoul, Korean capital city. Considering
the sex ratio, it is estimated that about 4.865 million men live in Seoul and I could
know approximately 657,180 of the age group 18 to 30 male live in Seoul
(Indexmundi.com, 2015). Thus, we know that the people of this population are our
targets.

3
YOUJIN JU

NEEDS

The company targets the age group 18 to 30 male students and males who have a
job. This means the customers need clothing that workers can wear clothes in their
company. It must satisfy both of them. Furthermore, it is necessary accessories
(bags, neckties, shoes etc.) which are appropriate to their clothing. The appropriate
clothing is classic and simple design with a pattern in several colours. This is
because classic and simple design can satisfy most people to wear in their lifestyle
and its design clothing has a long lifecycle regardless of fashion trends (Aryatum,
Holland, Harrison & Kazi, 2005).

TRENDS

Usually when people buy their clothes, after a great deal of considering, they decide
to purchase. For example, they compare the price, quality and necessity between
clothing and other clothing. When people buy clothes, they even compare shopping
places. This is because they want to compare the prices of same clothing if
somewhere more affordable. For such a reason, a shopping place is one of the
things that affect when people purchase clothes. According to statistics in 2013,
shopping place trend is that street markets were chosen as the best shopping places
by many Koreans (41.4%). It was followed by duty free shops in downtown (32.9%),
department stores (26.2%) and discount stores (12.5%) (KOSIS, 2013). Thus, the
company can sell its clothing through these stores. If the company uses stores where
visited by many people, the effect of marketing will grow gradually.

SWOT

Strengths Weaknesses
 The company can raise the price of  Mass production – more risky
clothing because the company is (difficult to predict exactly what
targeting the age group 18 to 30 product will be sold)
males. And most of them do not have  Due to the sale on the internet, a
a spouse and a child, so the direct feedback of consumers can

4
YOUJIN JU

company sells clothing easily to the be difficult.

target consumers (Stat.seoul.go.kr,  When consumers buy clothing, they
2014). cannot check clothing with their own
 Pursue classic and simple design eyes. Thus, systematic refund policy
which can be worn every people. is required.
 Interest in menswear has steadily  Low-cost clothing preference
increased. phenomenon of teenagers
 Online shop has lower initial cost  Imported clothing preference
than offline shop. phenomenon of young people in
 Smart phones are becoming more their twenties.
and more widespread so, online  The company based on basic
shopping with smart phones is design however, the design of the
increasing. products can be felt uniformly to
consumers.
Opportunities Threats
 The introduction of the five-day  Due to the recession, the decline in
workweek and as interest in consumer sentiment (reduced
wellbeing and leisure increases, the consumption of mid-priced brand)
casual wear market is expected to (Doms & Morin, 2004).
continue growing.  Excessive competition in the
 The spread of the dressdown system apparel market (KOFOTI, 2013).
at companies  Competition with SPA (Specialty
 Steadily growing fashion market of store retailer Private label Apparel)
South Korea. brands which mainly sell basic
 Potential inherent to the Korean design products such as UNIQLO,
market divided into high-cost of GAP, H&M (foreign brands) and
imported apparel and low-cost eight seconds, basic house (local
clothing market (be able to target a brands)
niche market).  Due to the activation of the Internet,
 Internet is becoming more and more useful information can also be
widespread so, entry barriers are exposed to competitive companies.
lowered (available for everyone)  Market saturation due to similar
(Chinn & Fairlie, 2006). apparel brands.

5
YOUJIN JU

 Since the company is a budding

brand, the brand concept is not yet
firmly set. Thus, there is growth
potential in a variety of ways.

KEY TO SUCCESS

 Advertise the brand using social media such as Facebook, Twitter and
Instagram. Large amount of young people use social media (our target group
is young males) (O’Keeffe & Clarke-Pearson, 2011). Thus, it can help our
company’s marketing.
 Use the integrated supply chain and manufactured in cheaper labour countries
such as China and Bangladesh for reducing the price and increasing the
quality of products.
 Based on the basic design, but produced in limited quantities of unique design
through creating the new line of the brand (give prominence to premium image
of the brand).

CRITICAL ISSUES

1. Internal Factors
1) Penetration into the target market
- The company should use promotional tools such as social media. The
company are going to use social media on our marketing. In case of Facebook,
we will make our own pages and will post the way of being best dresser (how
to mix and match clothing well) and suitable accessories utilisation ways with
clothing.
2) Customer management
- It is vital to manage a good relationship with the clients. In order to maintain a
good relationship with clients, the company should feedback as often as

6
YOUJIN JU

possible. Moreover, the company has to hire employees for only this part and
it should have our employees training regularly about customer service.

2. External Factors
1) Competitors: due to the rise of menswear in the fashion industry, there is a lot
of competition in the domestic market (Kim, 2013).
2) Customers: Clients love good quality apparels and are never satisfied with
commonplace products because a lot of fashion brands have sprung up (Kim,
2013).

MARKETING STRATEGY

MISSION

The company mission is to provide customised apparel solution integrated customer

service.

MARKETING OBJECTIVES

The company needs to build awareness of its brand by positioning itself as the brand
which is interacting with clients within the fashion industry. Clients should be sought
in both the online shop and offline shop. These industry contacts can lead to multiple
additional contacts. The online shop selling and social media strategies have already
previously been proven within the fashion industry. Other activities should include
being seen in major fashion industry, opening a chain store and gaining recognition
of customers. Some measurable and specific objectives are that opening chain
stores in large store locations such as department stores and the company delivers
our apparels to select shops.

7
YOUJIN JU

 Specifics large stores:

Lotte department stores (20 stores in the metropolitan area and online shop)
(Ehyundai.com, 2015)

Hyundai department stores (10 stores in the metropolitan area and online shop)
(Store.lotteshopping.com, 2015).

Shinsegae department stores (6 stores in the metropolitan area and online shop)
(English.shinsegae.com, 2015)

A-land (20 stores in the metropolitan area and online shop) (En.alandglobal.com,
2015)

Hiphoper (online shop only)

Musinsa (online shop only)

By achieving these objectives, the company should be able to lower the barrier to
entry.

FINANCIAL OBJECTIVES

In order to reduce the cost, the company can use the viral marketing. How to use the
viral marketing is that the company provides apparel free of charge to Korean power
bloggers such as ‘Park & Cube’ and ‘Aimee Song’ (Korean but live in the U.K and the
U.S). Then, the company can pay less money to promote the brand to many people
through the power bloggers post the article about the brand’s apparel on their blogs.
Moreover, in order to reduce the cost of customer service, first of all it is important to
improve the quality of apparels. If the company increases customer satisfaction by
increasing the quality of apparels, because the company does not need to provide
services such as refund and warranty service to their customers. As mentioned
earlier, owing to reduce marketing costs, utilizing social media of the company is the
most important factor. These days are some people regardless of gender or age, use
computers or smartphones and those users are rapidly increasing (Webster, 2014).
Users of social media are also considerably increased. Whereby, the influence of

8
YOUJIN JU

social media has become significant (Okazaki & Taylor, 2013). Obviously, these
methods will have an effect its cost reduction.

TARGET MARKET

The company is targeting male students and office workers, namely those who make
money. A research showed that the average salary of male in their 20s who has a job
is about 2400 dollars per month (Biz.chosun.com, 2015). Thus, the company will
target the male who has a job and earns an average monthly salary. It is also
targeting the age group 18 to 30 male who lives in South Korea. Especially, the
company targets the people who live in the metropolitan area, including Seoul,
Korean capital city, a first priority. The next target is the people who live in small
cities.

POSITIONING

 Mid-high quality apparels with affordable prices (T-shirts - from $20 to $50,
Shirts - $30 to $60, Trousers - $40 to $70, Jackets and Coats – from $50 to
$100)
 The classic and basic design that is not constrained in any situation such as
Normcore style (normal + hardcore)

9
YOUJIN JU

 Scarcity through limited production

 Creating new lines for trendy apparels

STRATEGY PYRAMIDS

The company utilises social media marketing strategy. It is promoted the brand
through using Facebook, Twiitter, blogs and Instagram. Below there are several tools.

 After sharing the brand’s post to own friends on social media, screenshot a
shared post and send through it to the company’s social media. Then after the
company checks it, the company send through discount code to the client.
 In order to know in what ways customers entered the brand’s website, the
company conducts a survey. The customers who participated in the survey
present a discount code.

MARKET MIX

1) Product
- Classic and simple design with variety colours.

(UNIQLO, 2015)
- Creating new lines for trendy apparels

(Burberry, 2015)

10
YOUJIN JU

2) Price
- Affordable prices (basic design) (T-shirts - from $20 to $50, Shirts - $30 to $60,
Trousers - $40 to $70, Jackets and Coats – from $50 to $120)
- Mid-high prices (new lines) (T-shirts - from $40 to $60, Shirts - $60 to $100,
Trousers - $70 to $150, Jackets and Coats – from $100 to $300)
3) Place
- The primary entry: department stores in the metropolitan area (build young
and sophisticated image) – Seoul (capital city) Gyeonggi Province and
Incheon (lent - approximately $36,386 per month / deposit – approximately
$242,577)
- Second entry: select shops in the metropolitan area (build accessible and
trendy image) – Busan, Daegu, Gwangju and Daejeon (lent – approximately
$24,257 / deposit – approximately $121,288)
4) Promotion
- The primary promotion strategy: advertising the brand using a social media
(usually young people use social media (Duggan, 2015). Therefore, it is
possible to improve the marketing effects)
- Secondary promotion strategy: when purchasing apparels from a mobile
website, discount code presented (there is increasing purchase cases using
mobile phones)

FINANCIALS

EXPENSE FORECASTS

Usually when a brand makes clothes in Korea, the sewing cost varies depending on
the sewing technique. The company will entrust its clothing to the factory where good
at sewing to improve the quality of clothing. If so, the sewing prices of a T-shirt to a
coat are from $6 to $36 respectively in Korea. In addition, the cost of making clothing
is that fabric costs + sewing costs + subsidiary costs. Then, the company multiplies
the combined cost by 2.5 (usually in the process, the price of clothing sold in Korean
department stores are multiplied by 4. SPA (Specialty store retailer Private label

11
YOUJIN JU

Apparel) brand are multiplied by 2.5). That price becomes the selling price (Kim, J.,
2015). The fabric cost of a t-shirts is from $3 to $10 per 150cmX90cm and the fabric
cost of a coat is from $15 to 35 per 150cmX90cm. Other apparels’ fabric costs are in
the middle of the costs of a t-shirt and a coat. Apart from those costs, when clothing
is made, the company should consider label costs, packaging costs, transport costs
and storage costs.

CONTINGENCY PLANNING

This is the last stage of the emarketing plan, which is complementary and review
stages of the strategies. Below the table is a checklist for the inspection of this
emarketing plan.

If the company’s marketing is Although the company focuses on menswear,

contracted due to competitor’s advertising will be using a female model (by
aggressive marketing posting on social media, rapidly spreads the
commercials)
If the clients’ complaints are thriving The company will put out advertisements for
due to sudden loss image of the brand’s image restoration and the company
company should not avoid our responsibility for our
customers. Moreover, the company accept our
mistake and should resolve our problems
immediately. For example, Pepsi is one of big
company in the world. However, Pepsi was in
a deep crisis in 1993. Pepsi’s syringes case
was happened in June, 1993. Many people
said they found needles in Pepsi cans and this
case was broadcasted in the news. It tarnished
Pepsi’s image. Pepsi was responsive to
customers immediately and it opened its
production system through the media. After the
termination of critical situation, it tried to
restore its tarnished image. (Pepsi was having

12
YOUJIN JU

a major sale event.) As a result, Pepsi had a

successful image restoration and is loved by
customers so far.
If the planned promotional event of Depending on the situation, another
the company fails due to promotional event is lasted by using the
unavoidable reasons reason for the failure to the contrary. For
example, the company prepared the
advertisement of cheerful concept and is
planning to put on national advertisements.
However, if the big national disaster happened
in the middle of it, the company can convert
the concept of advertisement to donation or
something like that.

13
YOUJIN JU

REFERENCE LIST

 Ariyatum, B., Holland, R., Harrison, D., & Kazi, T. (2005). The future design direction of smart
clothing development. Journal of the Textile Institute, 96(4), 199-210.
 Biz.chosun.com,. (2015). 여성, 90 년대말 전문직 대거 진출… 30 代 연봉 40 代보다 많아.
Retrieved 3 October 2015, from http://biz.chosun.com/site/data/html_dir/2011/11/29/20111129
00279.html
 Burberry,. (2015). 2016 Summer/Spring in London. Retrieved from
http://www.vogue.com/fashion-shows/spring-2016-menswear/burberry-prorsum
 Chinn, M. D., & Fairlie, R. W. (2006). The determinants of the global digital divide: a cross-
country analysis of computer and internet penetration. Oxford Economic Papers.
 Doms, M. E., & Morin, N. J. (2004). Consumer sentiment, the economy, and the news
media. FRB of San Francisco Working Paper, (2004-09).
 Duggan, M. (2015). The Demographics of Social Media Users. Pew Research Center: Internet,
Science & Tech. Retrieved 19 August 2015, from http://www.pewinternet.org/2015/08/19/the-
demographics-of-social-media-users/
 Ehyundai.com,. (2015). 현대백화점. Retrieved 4 October 2015, from http://www.ehyundai.com
/newportal/index.do
 En.alandglobal.com,. (2015). ALAND | Multi-brand Fashion Store of Designer Pieces .
Retrieved 4 October 2015, from http://en.alandglobal.com
 English.shinsegae.com,. (2015).SHINSEGAE CORPORATION. Retrieved 4 October 2015,
from http://english.shinsegae.com/english/main.asp
 Indexmundi.com,. (2015). Korea, South Demographics Profile 2014. Retrieved 2 October
2015, from http://www.indexmundi.com/south_korea/demographics_profile.html
 Kim, Joohyeong. (2015). Interview with professor of RASARA fashion school. South Korea.
 Kim, M. (2013). Workers, take off suit and put on coloured jeans. Edaily.co.kr. Retrieved from
http://www.edaily.co.kr/news/realtime/realtime_NewsRead.asp?newsid=01308726602841720
 Kim, M. O., & Kim, I. (2015). Pants lining manufacturing survey of menswear brands in South
Korea. Fashion and Textiles, 2(1), 1-12.
 Kim,Y. (2013). Korean domestic market has entered a saturation stage. Ktnews.com.
Retrieved 19 July 2013, from http://www.ktnews.com/sub/view.php?PageNo=1&cd_cate=B01
1&cd_news=80286
 Korean Federation of Textile Industries. (2013). Korean Fashion Index Research. Presentation,
Textile Centre in Gangnam, Korea
 Kosis.kr,. (2015). 통계청::error. Retrieved 3 October 2015, from
http://kosis.kr/statHtml/statHtml.do
 Lee, H ,. (2015). 아저씨 정장은 가라 캐주얼 정장이 왔다. Yeongnam.com. Retrieved 8

January 2015, from

http://www.yeongnam.com/mnews/newsview.do?mode=newsView&newskey=20150108.0101
30712460001
 Lee, H. (2014). Owing to increasing the companies which allow dressdown, casual clothing
became more and more popular. Fnnews.com. Retrieved 28 October 2014, from
http://www.fnnews.com/news/201410281738508815
 Lekhanya, L. (2014). The Impact Of Viral Marketing On Corporate Brand
Reputation.Cluteinstitute.com. Retrieved 2014, from
http://www.cluteinstitute.com/ojs/index.php/IBER/article/viewFile/8437/8453

14
YOUJIN JU

 Oh, K. (2013). Casual, unisex clothing no solution. Apparelnews.co.kr. Retrieved 28 June

2013, from http://www.apparelnews.co.kr/naver/view.php?iid=47140
 Okazaki, S., & Taylor, C. R. (2013). Social media and international advertising: theoretical
challenges and future directions. International marketing review,30(1), 56-71.
 O'Keeffe, G. S., & Clarke-Pearson, K. (2011). The impact of social media on children,
adolescents, and families. Pediatrics, 127(4), 800-804.
 Park, C. (2013). For NOMU ( No More uncle). Korean Fashion News. Retrieved 18 July 2013,
from http://www.koreafashionnews.com/sub_read.html?uid=729&section=
 Stat.seoul.go.kr,. (2014). SEOUL STATISTICS. Retrieved from
http://stat.seoul.go.kr/octagonweb/jsp/WWS7/WWSDS7100.jsp
 Store.lotteshopping.com,. (2015). LOTTE - DEPARTMENT STORE 본점 . Retrieved 4
October 2015, from http://store.lotteshopping.com/handler/Main-Start
 Terms.naver.com,. (2008). Grooming. Retrieved 11 September 2008, from
http://terms.naver.com/entry.nhn?docId=2079563&cid=50305&categoryId=50305
 Terms.naver.com,. (2015). 로엘족. Retrieved from
http://terms.naver.com/entry.nhn?docId=931361&cid=43667&categoryId=43667
 UNIQLO,. (2015). Stretch cashmere v-neck knit. Retrieved from
http://www.uniqlo.kr/display/showDisplayCache.lecs?goodsNo=UQ31056587&displayNo=UQ1
A02A06A01&storeNo=22&siteNo=9#prodDetail
 Webster, T. (2014). 2014 Smartphone Ownership Demographics .Edison Research. Retrieved
25 April 2014, from http://www.edisonresearch.com/2014-smartphone-ownership-
demographics/

15