1

Business Case Challenge

Pinnacle 2016

Launch of Van Heusen Athleisure Segment

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 Key Insights STP Solution Access Value Education2

Deliver more personalised shopping experiences, such as online fit/sizing specialists to increase sales and loyalty from
millennial shoppers

Expanded performance technologies, such as easy care and odour resistance, in cotton underwear to capitalise on
athleisure

The models depicted on websites are found to discourage some males who considered the image either too revealing
or out of their perceived age range

Millennials wish to buy from offline retail stores due to the following customer service options, Education on product
performance features, sizing facility and product care instructions. Thus, if these services can be replicated online
then we can shift users from offline to online channel.

% of consumers who say the following functional and performance features will influence their underwear
purchasing decisions

Functional Features
Performance Features
60%
5
50%
4
40%
30% 3

20% 2
10% 1
0%
0
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Easy Care Shrink Stain Stretch
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Odor Resistance Reserved. Anti Microbial
Resistance Resistance
Management
 Opportunities for scaling up in Inner Wear E- Commerce 3

Problem Recognition
Online shoppers are 15% more brand loyal than offline
shoppers and spend more on online as compared to
Sameer, Project Manager in Deloitte, realises
offline shopping
that he needs an inner wear which is modern
and stylish

Information Search
Online fashion retail has become a roaring success
due to increasing internet and smart phone
Sameer visit inner wear websites and talks to
penetration, convenience of in-home shopping,
aggressive promotion and pricing by online players friends to determine the best inner wear brand
and easy options (free return, Cash on Delivery) which will cater to his requirement

Evaluation of Alternatives

Sameer narrows down his choices to two

Reach un-represented markets where it is difficult models and reviews the advantages of each
to open and sustain exclusive brand outlets option

Product Choice

Sameer chooses VH over its competitors

Opportunity to become a Complete lifestyle because of its personalised user experience,
brand by offering both outer and innerwear unique packaging and distinguished values
garments and also leverage the established brand
equity Outcome

www.companyname.com Sameer places the online order with VH and is

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 Key Insights STP Solution Access Value Education4
Van Heusen + Inner Wear and Athleisure = VIA
1. Young Aspirers 1. Sports Oriented 1. 18-34 years 1. Tier 1 Cities

Lifestyle
Psychographic

Demographic

Geographic
2. Discerning 2. Outdoor 2. 35-44 years 2. Tier 2 Cities
Urbanities Oriented 3. 45-54 years 3. Tier 3 Cities
3. Optimistic 3. Travel Oriented 4. 55+ years
Pursuers 4. Culture Oriented
4. Corporate 5. Environmental
Climbers Enthusiasts
6. Fashion Oriented

Professionals Inside Out Easy Power Buyers

• Young Aspirers: Professionals • Optimistic Pursuers

• Age group from 25-34 years • Age group from 30-44 years
• Living in Tier 1 and Tier 2 cities • Living in Tier 2 and Tier 3 cities
• Outdoor, Travel and Sports oriented • Outdoor and Travel oriented

Power Inside Out

Extending the existing positioning of VH- Power Dressing, where in people feel powerful on using the outer garments, now
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with VIA, we want our target customers to feel the dual power of dressing, both “inner” and outer zeal.
 Key Insights STP Solution Access Value Education5

Market Upgradation Market Conversion

From Offline to Online From Brand Jockey to Van Heusen
• Existing VH customers
Given all the categories, Classic, Platinum, Signature, Active and Athleisure, Jockey too
• Professionals with similar requirements but display brand loyalty towards
has its products with the similar properties. Thus, we have made a calculated
other brands like Raymond’s, LP etc.
assumption that the benefits provided by both the brands under every category is
almost the same. Thus, now our target groups will be in the same segment of Mid
Reason: They are already the PREMIUM milieu and we can expect a premier buy
Premium and Premium.
in the inner segment too which will go with their style statement
Reason: They are the potential customers for VH as they are looking for a personalised
In line with what is the current positioning and targeting of Van Heusen, the inner
user experience. The remaining segments are more focused on Benefits and Price,
wear segment will focus on the overall personality of the professionals starting
thus, we have not chosen those.
with their “inner” style to outer finishing using the existing VH products.
In addition, Jockey targets mostly at young crowd who are looking for COOLNESS
This will go in line with the current marketing activities of Van Heusen as a brand.
factor. We, at VH, offering the same kind of products should focus on Jockey’s
customers with the age group 35 and above. Because, they will be the ones who are
more stable in their lives with a tinge of elegance and love for corporate dressing and
branding for which VH is known for.

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 Key Insights STP Solution Access Value Education6

Market Conversion
From Offline to Online (New Customers)
5 W Approach
Who Are your current customers, Are your prospective customers, Is your current marketing segment
What Is the background of customers, Do the customers buy
When Do they buy, Do consumers interact with your brand now
Where Do your customers live , Did they discover you online
Why Do they buy , Do they buy from competitors

Age Group: 25 to 50 years

Location: Metro as well as Non Metro Cities

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 Key Insights STP Solution Access Value Education7
Marketing Mix for Intelligent Clothing- Inner Wear Segment of Van Heusen
We will be using S.A.V.E. Framework. It is one of the relevant marketing mic models for today’s market place as these days selling is shifted from transactional to
collaborative

Success Factor Bench Marking

1. Reverse logistics solutions to make return and
No Sweat exchange policy easy
Focus on Temperature
Inner 2. Entertainment and education while shopping
Control
SOLUTION Garments 3. Filtered Search
4. Cash on Delivery and BOPS

Benchmarking
5. Roll In view of the product on the website

Focus on Moisture Anti Microbial

ACCESS Management Benefits Wider
Convenient
Assortment to
Buy
choose from

Key Success
Focus on

factors
VALUE Seamless
Silhouettes
Heat Transfer
Tags
Full Refund
Frequent
and Easy
discount
Exchange
offers
with No Fuss

Focus on
EDUCATION Hydrophobic Customizatio
Breathable Detailed View
Fibre n of the
of the Product
product
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 Key Insights STP Solution Access Value Education8
Focus on Access
Various ways to access the products will be Online Retail (Website and other E commerce Sites), Offline Outlets and Mobile Applications
Reason: To engage and stay connected with target customers to remain at the top of the mind recall when they shop
Very important factor under Accessibility is Inventory Planning and yes, it is very different than the offline channel. Below are the key insights for the same.

INVENTORY PLANNING PACKAGING IDEAS

Offline Inventory Planning
• The stock in the retail store must be sufficient to cater to the customers on a daily
basis
• There are localised inventories according to the demographics. E.g. Shoppers Stop
in east, west, north and south has different stock in their stores according to the
regional requirement
• They use metrics to analyse the SKU Profitability. One such metric is GMROI
(Gross Margin Return On Investment) which is calculated by taking the aggregate
gross margin achieved for a SKU and dividing it by its average inventory cost. This
gives the clear forecast of SKU demand. (Online can take this concept and use for
the better of products with more variety in that SKU or also offers some more
discounts on those items)
Online Inventory Planning
• Single pool of stock managed through Ring-Fencing
• Benefits – Minimize stock holding, ensure stock is equally distributed to all channels
and stock is sold at the best possible price
• Best warehouse replenishment forecast can then be built by adding the online
forecast to the combined store-order forecasts – the latter can be calculated using
store demand forecasts together with information on store stock levels, delivery
cycles, lead times and so forth
• Stock is held in a single storage location in the warehouse, but part of it is allocated to
online channels and the system treats it as reserved, so stores can’t draw upon it. It’s
easy and efficient to send more stock out to stores as the season progresses, but
recalling goods from the stores to the DC is always expensive and best avoided
whenever possible
• BOPS (Buy-on-line, Pick-up-in store) www.companyname.com
• Analytics: Since shopping takes place through internet, there©is2016 Motagua PowerPoint Multipurpose Theme. All Rights Reserved.
a tendency to register
more data. This can be used for forecasting demand and for Marketing Analytics
To cater to the Environmental Enthusiasts, recycled brown paper
packaging to be used along with branded tape with Van Heusen printed
on it
Quoted Packages
• Power is a way to say who you are without having to speak
#PowerInsideOut
• Being a man is a matter of age but being a gentleman is a
matter of choice #ChooseVIA
• Dress how you want to be addressed #PowerDressing
• Packing material to be transparent in the shape of a hangar so
that customers can conveniently hang the product in their
wardrobe
• Must be durable and robust for shipping
• Shape can be customized according to the product
Van Heusen branded bands with the quote “Power Band” to be
used while packing a product to prevent it from shaking while in
transit. This band can be re-used by the VIA customers especially
while traveling for the same
Note: According to West Rock Study, 20% of customers have purchased a product because the
online review mentioned the package.
 Key Insights STP Solution Access Value Education9
Focus on Value
Value, these days, is not only the price of the solution but also some non monetary expectations which customer desires.
1. Direct 2 Consumer Strategy
This includes discounts, E vouchers and other coupon codes available either on the website or to the customers purchasing
VH products from the offline stores
2. Virtual Fitting Room Helps
professionals
create their
best impact
at any
occasion

VIA Online Studio – A virtual fitting room where the users can create avatars by specifying their own
measurements, choosing from various colours, designs, sizes and shapes and then visualise themselves in different garments .
before buying the final product.
This will give a real time trial room experience to the online users to help them be sure of the right fit of the garment and thus,
adding value to the online shopping.
Range of
3. Online Retail must educate on product features to cater
Modern,
4. Online Support Chat Forum to the exact needs and requirements of the target group
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Rights Reserved. and care for the product so that it lasts long and
Garments target group gets value for money
 Key Insights STP Solution Access Value Education10

Focus On Education
Communicate Product features
1. Advertisements- YouTube Ads
Chosen You Tube as the medium for our advertisement and not TVs because, people are more involved
on Internet these days as compared to TV Commercials. Below is the data supporting the fact. Also, it
has been found out that people send their most of the time on below mentioned websites.

2. Sales Promotion - Promotional Gifts and Vouchers

Give a premium gift like a Wristband-“Power Band” made out of 100% Pima Cotton with every
purchase of the VH product with a brochure saying, “Join the exclusive Power Club of VH, VHBand and
avail discounts on the latest inner wear and athleisure garments” which will re-enforce the brand
positioning.

Encourage customers to click selfies and post it on social media with #FeelingThePower #VIA
#VanHeusen to gain positive word-of-mouth
3. Online

Company Using company’s website and blog to promote the features especially on the
Website home page banners. In addition, using Facebook, Instagram etc. to promote the
and Blog new segment and its feature.
Using company’s website and blog to promote the features especially on the
Emails home page banners. In addition, using Facebook, Instagram etc. to promote the
new segment and

AdWords To make people find out the brand on their browsing of keywords like “Dry”,
“Flexi”, and “Stat” which will help them to relate to the product feature.

4. Other Promotions
We can use Trial Rooms, Malls, and Elevators etc. for display advertisements. E.g. in Mall we can put a revolving palette where on one side there is an athlete wet with sweat and the
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moment it revolves after few seconds, the cloth is dried up. So,©it’s kind of visual representation of how
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Theme. AllVH garments
Rights dry. Similarly, we can do for other features also.
Reserved.
 11

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