The document provides a situational analysis and marketing communications plan for Lulu Feliz, a women's clothing boutique in Glasgow, Scotland. Lulu Feliz sells new and pre-loved designer clothing at affordable prices. It also allows customers to sell their pre-loved clothing in the store. The analysis finds Lulu Feliz has an unclear brand positioning and identity gap between how it sees itself and how customers perceive it. A new marketing strategy is proposed using advertising, sales promotions, and direct marketing over the month of June to increase awareness of Lulu Feliz's value proposition and reposition its brand identity among target audiences of female students and customers aged 20-50.
3. LIST OF FIGURES
Figure 1 CURRENT SITUATIONAL ANALYSIS ............................................................................................ 5
Figure 2 PRESENT BRAND ADVANTAGES ................................................................................................ 7
Figure 3 DIFFERENT BRAND IDENTITIES (Source: Davies et al. 2003) ..................................................... 8
Figure 4 BACKDROPS OF CURRENT MARKETING COMMUNICATION ..................................................... 9
Figure 5 COMPARISON OF LULU FELIZ WITH COMPETITORS ............................................................... 13
Figure 6 STRENGTHS & WEAKNESSES COMPARISON ........................................................................... 14
Figure 7 MARKETING OBJECTIVES FOR LULU FELIZ .............................................................................. 16
Figure 8 COMMUNICATION OBJECTIVE SUMMARY ............................................................................. 18
Figure 9 ADVERTISING ELEMENTS (O’Guinn et al., 2003). .................................................................... 19
Figure 10 MESSAGE STRATGEY GOALS AND METHODS (O’Guinn et al, 2003) ..................................... 21
Figure 11 ADVERTISING MEDIA TOOLS ................................................................................................. 22
Figure 12 ADVERTISING STRATEGY SUMMARY .................................................................................... 27
Figure 13 SALES PROMOTION STRATEGY ............................................................................................. 28
Figure 14 SALES PRMOTION STRATEGY SUMMARY.............................................................................. 30
Figure 15 DIRECT MARKETING STRATEGY OVERVIEW .......................................................................... 31
Figure 16 DATABASE MARKETING PROCESS (O’Guinn et al., 2003) ..................................................... 32
Figure 17 DIRECT MARKETING STRATEGY-SUMMARY .......................................................................... 33
Figure 18 CONTINUITY SCHEDULE ........................................................................................................ 34
Figure 19 MARKETING COMMUNICATION PLAN EVALUATION ............................................................ 37
Figure 20 PROPOSED BUDGETS FOR THE COMMUNICATION CAMPAIGN (Source: For poster-
Pwauk.com, carry bags-Amazon.co.uk; Flyers-eprinting.co.uk) ........................................................... 38
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4. EXECUTIVE SUMARY:
Lulu Feliz, a designer clothing boutique dealing in buying and selling of new and nearly new clothes,
located at Dumbarton road is selected to suggest a new marketing communication campaign. The
current communication strategies by the brand are posing an undesired brand image to the target
market. The brand currently is perceived as an expensive fashion boutique with limited range of
female dresses and accessories. While the desired brand identity is altogether different. The main
business model of Lulu Feliz is to buy pre loved or used, unusual and designer clothes, in a good
condition, from customers and sell them to new customers who wants to buy, out of the league
clothes but at cheap prices. But because its locational constraints and emergence of different related
business models nearby its shop, the business as got affected adversely.
The new communication campaign has been suggested to provide the brand a changeover and
reposition it with the desired brand identity. With the launch of its new summer collection in June-
2012, the campaign will be executed. The prime objective for the campaign has been to achieve 60%
awareness among the target audience and establish the new brand image. Three major
communication tool of advertising, sales promotion and direct marketing have been used to
implement the new communication strategy.
The campaign will be implemented during the whole month of June. Few weeks before the start of
June, some tools will be used so that to create a strong base for the actual launch of the campaign
on 1stJune. A media schedule has also been provided explaining the duration of each media tool
used. It is followed by the evaluation process and budgeting for the campaign.
The options used and suggestions made in the campaign have been done keeping in mind the
capabilities and limitations of the brand Lulu Feliz.
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5. SITUATIONAL ANALYSIS:
Lulu Feliz is a female’s fashion clothing shop on Dumbarton road in Glasgow, Scotland. The shop was
opened in April 2010 by the owner Audrey Proudfoot. Initially opened as a store to buy fashionable
& expensive clothes selected by the owner herself and bought from different fashion streets of
London and other cities of England, currently the brand is running with a different concept.
Along with selling the fashionable wear selected by the owner, the brand also provides an
opportunity to people to sell their pre loved or used clothes. The only condition is that the clothes
should be unusual. In a sense, the brand does not buy regular stuff from the people who want to sell
their clothes. Their clothes should be different. For example, clothes for a specific occasion, of a
designer brand, vintage clothing wear, etc. Lulu Feliz sets the price and once the cloth gets sold, it
pays the cloth owner 50% of the sale price, while keep the rest 50% as commission. Apart from
clothing, Lulu Feliz also sells accessories like bags, footwear and jewelleries, designed and selected
by the owner only. The information above is an outcome of a lengthy discussion with the owner. The
questionnaire used for the discussion with Lulu Feliz and its competitors is been provided (Appendix
1).
The concept which the brand is following broadens the scope of its target customers as well as
suppliers. In certain situations, its suppliers can be its customers as well and vice versa. Thus, a
common communication strategy has been suggested in this study, applicable on both the
segments, with exception at some places.
BRAND ELEMENTS LULU FELIZ
BRAND ANALYSIS
Brand as a product Designer clothes available at cheap prices. Also, people
can sell their expensive clothes they don’t use anymore
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6. Brand as a symbol An independent brand name signifies any outstanding
or remarkable thing. Also signifies a fashion range of
female clothing
Brand as a person Gives a feel of a sophisticated feminine personality
Brand Positioning Positioned as a fashion clothing boutique.
Marketing Efforts Limited to using branded carry bags.
Brand Image Limited to a fashion clothing seller restricted to limited
customers.
Country of Origin Scottish origin with an authentic and fashionable feel
CUSTOMER ANALYSIS
Target Market Female Customers and other businesses that can help in
reaching and thus improve the number of customers at
Lulu Feliz.
Target Audience Female Students and ladies who like to buy their used
clothes and also, like to buy designer clothing at cheap
prices.
COMPETITOR ANALYSIS
Charity Shops More in number. An emotional aspect linked with them.
Cash for Clothes An upcoming concept. Not much big in terms of size.
Recycling and charity donations done after collection.
Love My Clothes Same communication, price range. Offers male clothing
as well
Eye candy Boutique New Fashionable wear. Targeting female customers
only
Figure 1CURRENT SITUATIONAL ANALYSIS
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7. COMPANY, BRAND & PRODUCT ANALYSIS
Defined by Brown (1992), a Brand is the sum of all the mental connections people have around it.
Lulu Feliz as a brand name depicts the image of a fashion clothing range. The brand name as a
symbol is easy to identify and likeable. Though not transferable as the clothes sold in the shop are
not of the Lulu Feliz brand name. The clothes provided by different customers to sell are also sold
under their own brand name. It is a registered trademark by the owner, which makes it protectable
as well. Hence, the brand as a symbol has some positive elements in it, which can be proven as
useful inputs towards the proposed communication strategy.
A product is anything which the target market potentially value due to the benefits provided by it,
including different elements of it like services, place, people and ideas (Cravens & Piercy, 2006). Lulu
Feliz offers an innovative idea to a customer to sell their pre-loved clothes which they bought after
paying a huge amount of money, but currently is hanged ideal in their wardrobe. It allows the
customer to earn some money though an unused piece of cloth. Donating it in a charity would have
got them nothing and using online retailers like eBay or Amazon to sell them, would have been a
hectic option, which usually middle aged ladies are not comfortable with. It also helps customers in
making some money for their next shopping or some other expenditure.
On the other hand, it makes designer clothes available at a reasonably cheap price. The price range
of the offerings here starts from £5 and goes till a reasonable £50. Apart from the pricing, it also sells
clothes of size 8-24 which is not that easy to get in a regular fashion boutique. The shop also has a
marginally big trial room, which allow customers to try clothes with ease and comfort. By not selling
a pile of same type of clothes, Lulu Feliz,also gives the customer an option to buy clothes for
different occasion at once and at a single place, within the same price range.
Brand personification of Lulu Feliz would be the combination of a sophisticated and smart lady, who
is active towards the fashion trends, while also being cautious towards the price she pays. The
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8. product selection process at the shop is quite strict as the clothes are selected on the basis of not
only their finishing, but the unusualness they have. Regular clothes like t-shirt, jeans, funky tops, etc.
won’t be available in the boutique. The ambience in the shop gives a sophisticated image of it. Use
of bright colours and soft patterns inside the shop creates a suitable environment a female customer
prefers to shop in.
Brand as Symbol Easy identification and likeable. Easy to relate
with a fashion product
Brand as Product A new and creative concept. Mutual benefits for
all the related parties.
Brand as Person Sophisticated and price conscious female.
Figure 2PRESENT BRAND ADVANTAGES
Lulu Feliz, however, has an unclear brand positioning. The brand Lulu Feliz wants to be perceived as
a seller of new and nearly new unusual or designer clothing rail and a shop where people can sell
their pre loved clothes. Also, to its customers, it wants to get communicated as a shop to buy nearly
new designer clothes at cheap prices, whereas, the image that the brand currently has in its external
environment is of an expensive fashion boutique. Most of the target customers are not even aware
about this service provided by the brand. The brand is perceived as the seller of expensive designer
clothing range for women.
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9. IDENTITY
Company sees itself as a channel
to sell and buy expensive used
clothes
DESIRED IDENTITY
IMAGE
An oferrer to customers to sell
a fashion clothing boutique
their unusual designer pre
for women, selling expensive
loved clothes and buy these at
designer clothes
cheap prices
Figure 3 DIFFERENT BRAND IDENTITIES (Source: Davies et al. 2003)
The reason behind Lulu Feliz’s unclear brand positioning is that it does not do any marketing
communication to communicate the desired brand image. Except the carry bags with brand names
on it and stickers mentioning the brand name, it does not employ any other communication tool by
itself. Though, whatever customer base the brand has, it helps in spreading the word of mouth. Also
mentioned by the owner, Audrey, most of the new customers that she receives, have got to know
about them from an existing customer of hers. It also has a website, but it is not used intensively
and is not maintained on a regular basis.
The brand promise can also be a problem for the communication strategy. The brand may be
perceived by the target customer as a range of expensive designer female clothing. While, on the
other hand, when they would enter the shop they may get dissatisfied with the kind of clothing
available, since the stock of new clothes is quite limited and the main focus of the brand is on the
pre loved clothes dropped by customers to be get sold.
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10. BRAND ELEMENTS LULU FELIZ
Brand Positioning Unclear
Brand Identity Gap between the desired identity and brand
image
Marketing Communication Almost none to communicate the desired brand
image
Brand Promise Distant brand name and brand promise
Figure 4BACKDROPS OF CURRENT MARKETING COMMUNICATION
CUSTOMER ANALYSIS
Lulu Feliz currently have a very limited customer base which it can refer to as its regular customer.
Again the two types of customers that the brand has are the one who wants to sell their designer
clothes and the other who wants to buy designer clothes at low prices. Since both the categories are
considered as customer segments, the new marketing communication strategy would target both of
them, with different tools in some cases. Female customers aged 25-55 years are currently serviced
by the brand in the first category. While in the second category, it has female customers of age
range of 28-60 years.
Target Market for the brand under the new marketing communication strategy would be female
college students, working and household ladies, most of whom resides within the west part of
Glasgow. These target customers should be within the age range of 20-50 years, follow an active life
style towards fashion, shopping for clothes and price conscious as well. The new communication
strategy would however target unaware/uninformed customer. But aware customers would be also
being a prime target of the new strategy.
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11. Target audience for the brand as per the new communication strategy would be again divided in the
two categories. Target audience in the first category would comprise of college students, working
females and females in their early old age. Describing the age range of the segment would be 20-55
years. College students make a huge contribution to this segment because they have a tendency to
buy new clothes on a regular basis. This phenomenon has a two way implications for the brand.
First, these students always have a pile of clothes lying unused in their wardrobes, and capture space
as well. So they would like to get rid of it. Second, to buy new clothes, students would require
money, which they won’t get by either keeping the ideal clothes with them, or by donating them in
charity.College students nowadays are not shopping less, but shopping smart (Money Management
Works, 2012).Working females and ladies in their early old age would also have range of unused
clothes with them. So if they can make some money out of these, it would be lucrative for them.
The second category would target college students and working females in their early 50s. College
students make a majority of the target audience, in this category as well. 72% of college going girls
are spending more on their clothing (Money Management Works, 2012).A female college student
spends on an average $500-$1000 every month on clothes and need a separate clothing
allowance(Lovetoknow, 2012).Thus, even during a period of recession, shopping clothes is on the
prime list for college girls. Working females on the other hand have a similar tendency of shopping,
with clothes on top of their spending list. But simultaneously, they like to save more while shopping
for themselves (Dailydeal media, 2011). They are also pretty optimistic about using online vouchers
for shopping, within which, 83% likes to use vouchers related to clothing and apparels (Dailydeal
media, 2011).
An additional component of target audience would be the customers at the nearby adjacent shops
of Lulu Feliz. Since the boutique is surrounded by some female beauty salons, dry cleaning shop and
some stylish household materials shops. Due to their clientele, it would be beneficial to target these
shops as well. Though targeting these shops will be restricted to some form of print advertising only.
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12. When talking about buying clothes, it is preferred to do that in person. The owner of the brand,
Audrey Proudfoot, also prefers to buy pre loved clothes in person by asking the seller to come to the
shop. It allows her to choose the right type of clothes suitable for the brand image. Also, the owner
maintains a card-book system to make records of the people who have offered their clothes to be
sold. These cards can be used as a base for an existing customer database.
Thus, the proposed marketing communication strategy would be devised in a way that would bring
customers into the shop. Online means of marketing would also be used, but to a limit of
communicating the brand image and brand concept.
COMPETITOR ANALYSIS
Lulu Feliz, at present, has majorly four competitors, which are, Charity Donation Shops, e.g.,
Emmaus, British heart Foundation, Cancer Research UK; Cash-4-Clothes, Eye Candy Boutique and
Love My Clothes Shop. The biggest competitor for Lulu Feliz, in terms of the brand idea, is Love My
Clothes. To mention here, since all of the charity donation shops have similar brand idea running
behind them and there are also similarities in terms of their marketing strategies and product
portfolio, these shops are categorised under a single name, to avoid complexity.
A 4 stage screening process, proposed by Belch & Belch (2010), will be followed to analyse key
competitors. It starts from identifying competitors, follows through identifying competitor’s strategic
objectives, their strengths and weaknesses and estimating their response patterns to our new
communication strategy.It would be better to mention here that since the new marketing
communication strategy for Lulu Feliz would be targeting its both types of customers, the
competitors are also identified on the basis of their target customers, e.g., seller or buyer of
clothesor both. This can be explained by the table provided below:
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13. ELEMENTS LULU FELIZ LOVE MY CASH 4 CLOTHES CHARITY SHOPS EYE CANDY
CLOTHES BOUTIQUE
Brand Idea Sale & purchase of Sale of new or Purchase of used Sale of donated Fashion clothing
new or nearly new nearly new clothes for items for charity boutique
designer clothes designer clothes recycling purpose purpose
Brand Image Expensive fashion Used Branded Earn money by Not for profit Medium to high
boutique clothes at cheap selling unused chain of stores priced fashion
price clothes and other street products
household things
Price Range £5-£50 £5-£70 Money paid on £2-£50 £10-£80
weighing basis,
price offered from
80p to £1/kg
maximum
Products New and Nearly New and nearly Used clothing and All used clothes New clothes and
new unusual new clothing household goods & accessories accessories
clothing &
accessories
Supply Source Mostly customers. Not disclosed Customers General Public Imported from
Few products from donating their Europe
fashion street stuff
Male/Female Female Both Both Both Female
Target customer
Collection No Not Disclosed Yes Yes No
Service
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14. Locational No. At the end of Nearby Partick Nearby shopping Spread across Outside Partick
Advantage Dumbarton road station complex at crow Dumbarton station & Morrison
road road
Target Seller & Buyer of Buyer Seller Buyer Buyer
Customer Type clothes
Marketing Branded carry Flyers Website, Banners Websites, Posters and sale
Communication bags, and flyers, story Banners, discounts
Effort Website line on website posters, flyers
(Appendices 4) (Appendices 2&3)
Figure 5COMPARISON OF LULU FELIZ WITH COMPETITORS
Based on the above identified competitors and their respective features and brand positioning, an
analysis of their strengths and weaknesses can be done, in the next step. The following table
provides the highlights of Lulu Feliz’s and its competitors strong and weak points:
ELEMENTS LULU FELIZ LOVE MY CLOTHES CASH 4 CLOTHES- CHARITY EYE CANDY
I SHOPS BOUTIQUE
Designer Brand √ X X X √
Image
Locational X √ √ √ √
Advantage
Capital X X √ √ √
Expected √ √ X X √
external
response
Strong Brand √ √ √ X √
idea
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15. Emotional X X √ √ X
Connect
Desired Identity X √ √ √ √
among target
customers
Figure 6STRENGTHS & WEAKNESSES COMPARISON
Last step would include estimating a competitor response pattern towards a change in the
marketing communication strategy of Lulu Feliz. Since the closest competitor for Lulu Feliz, in terms
of brand idea and concept, is Love My Clothes, it is expected that it may try to imply options to
improve its overall brand image. The already implied word of mouth strategy would be helpful in
promoting the new communication strategy further.
Rest of the identified competitors are not expected to respond actively towards the new
communication strategy. The prime reason for that would their business idea and brand image in
their target market. Cash for clothes are known only for buying clothes for recycling purpose in
exchange of money, whereas charity shops have the “doing-good” image connected with their brand
image. Lastly, Eye Candy boutique may be assumed to getaffected by the change in marketing
strategy of Lulu Feliz as they may compete on the basis of designer clothing available.
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16. OBJECTIVES:
The main problem faced by Lulu Feliz is currently the wrong and unclear brand image that it has
within its target market. There is a severe need of a brand repositioning strategy so as to
communicate the desired brand identity to its target audience. The new marketing communication
strategy would be implemented during the launch of summer collection by the brand in June-2012.
The media implementation would be done before, during and after the launch of new collection.
This would be discussed in detail in the following sections.
The marketing and communication objectives would be designed keeping brand repositioning as the
ultimate goal. Moreover, separate marketing and communication objectives would be set to achieve
this goal.
MARKETING OBJECTIVES
As discussed above, Lulu Feliz has some established as well as upcoming businesses as its
competitors. Within a very small geographical area, the brand has a strong cluster of competitors.
For a brand who is aiming for repositioning itself, it really gets important to identify and
communicate its strong points in terms of its unique selling propositions. For Lulu Feliz, its USP
would be the concept of Unusual Designer clothing at cheap price.
Marketing objectives for any brand could be interpreted in terms of market share, sales and
profitability (Belch, 2009). The new marketing communication strategy would set objectives to be
achieved in two different time periods. The first would be those which could be measured and
evaluated right after the campaign get over, say after 2-3 months. Second would be objectives which
should be monitored at the end of the financial year. This would help in analysing the effectiveness
of the campaign against the results achieved at the end of the year.
15
17. MARKETING OBJECTIVE EXPECTED RESULT MEASURING TOOL
Sales growth A growth of an approximate 20- The accounting figures of the
25% in monthly sales revenue firm can be analysed at the
end
Increase in market share The brand should capture 25- Industry sales figures along
30% of the market share in the with the category sales figures
used clothes segment in the region can be used to
measure the market share
captured by the brand
Growth in profitability By the year end, the brand Accounting books of the
should be able to score a business can provide this
growth in profits by 30%, information
approximately.
Database management Post campaign, Lulu Feliz Database management
should have an extended & techniques will be adopted.
organised customer database. The marketing database at the
This will help the brand in end will be used to for further
smooth achievement of its long communication strategies.
terms goal of profitability
growth
Figure 7MARKETING OBJECTIVES FOR LULU FELIZ
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18. COMMUNICATION OBJECTIVE
Lulu Feliz, because of the new communication strategy, would undergo a complete brand
repositioning. The prime communication objectives for the new campaign would be to inform the
target audiences about the new brand image and persuade them with the objective of generating
trials. The communication tools to be used in the campaign would aim at spreading the awareness
about the brand and thus, one of the results to be measured by the end of the campaign would be
the change in the number of informed customers. The second objective of persuasion can be
measured by monitoring the number of enquiries, change in the footfall amount and trials
generated within the campaign period.
The communication tools to be used for the campaign, their duration and their respective
communication objectives are being provided through the following table:
COMMUNICATION COMMUNICATION DURATION EXPECTED RESULT
OBJECTIVE TACTICS
Advertising - Posters By the end of second
- Flyers week of June,
- Printed Carry 10th may – 30thJune awareness about the
bags campaign should reach
- Internet to 60-65% target
Advertising consumers
Sale Promotion - Coupons A growth in sales
15th may – 30thJune
- Daily Deal revenue by 30-35% by
Websites end of June
Direct Marketing - Database 1stJune- post campaign To convert 40% of total
development period target customers into
- E-mail loyal customers after 3
17
19. marketing months of the
campaign period
Figure 8COMMUNICATION OBJECTIVE SUMMARY
MARKETING COMMUNICATIONS STRATEGY & ACTION PLAN
This section will include a detailed discussion of the different communication tools to be used for the
new communication campaign. All the tools will be analysed and summarised in a way to point out
the objective, key message and media vehicles to be used, for respective communication tool. The
evaluation process and detailed budgeting for the campaign would be discussed in the following
sections.
ADVERTISING STRATEGY
Advertising as a communication process is a tool for mass mediated communication. It’s a process
where people, institute and messages interact (O’Guinn et al., 2003).And this happens through a
medium, not face-to-face. Advertising is also an effective tool while it comes to informing and
persuading the target audience about a brand or a product.
The strategy implemented for advertising for this campaign will include the discussion of a creative
strategy, a message strategy and media strategy for this tool, apart from the objectives. An
overview of the above mentioned elements can be found in the following figure:
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20. ADVERTISING
OBJECTIVE MESSAGE MEDIA
•to inform potential customers •the message would be tagreting •Print
about the campaign or the the two categories of potential •Flyers
launch of new summer customers of Lulu feliz •Carry bags
collection •the central message behind the •Internet advertising
•by the end of second week of different media to be used
june, atleast 60%-65% of target would be positioning Lulu Feliz
audience should be aware of as the only place to buy and sell
the new campaign unusaul designer clothings for
summers
Figure9 ADVERTISING ELEMENTS (O’Guinn et al., 2003).
As mentioned above, the key objective of the advertising strategy would be to spread the word
about the new campaign and it should make 60%-65% of the potential customers aware. The
advertising campaign would start from the third week of May and should be able to achieve the
desired numbers by second week of June. Also, the schedule for the message execution for the two
types of target audience would be different. The message for the customers interested in selling
their clothes will start from the third week of May. On the other hand, communication actions for
customers who want to buy clothes from Lulu Feliz will start from last week of May. Although, some
media tools for advertising would continue even after the campaign gets over.
CREATIVE STRATEGY & EXECUTION
The key objective behind most of the marketing efforts is to establish a brand relationship and
creating and maintaining a brand image. Advertising helps in building brand relationships and image.
Creativity in this becomes important as it makes advertising strong enough to communicate the
desired brand image, in a different way, though effective (O’Guinn et al, 2003). For Lulu Feliz, as a
19
21. part of the creative strategy, a tag line can be “Looking for a designer wardrobe changeover this
summer without paying much??? Hop into LULU FELIZ now and we’ll give you the money for
that!!!!”Taglines and words emphasising around this tagline will be used in the different
communication media to be used. Different taglines can also be made while designing advertising
message for the two types of customers.
BRAND DETAILS
ELEMENTS
Styles USP Ladies do want to shop and save money at
the same time. College students are more
frequent in terms of shopping since they
attend lots of events like parties, etc.
Brand image The tagline reflects all the different
communication the brand wants to tell its
audience about
Emotional Not emotional but it strikes on the
communicating message of buying designer
clothes along with saving money
Pre-emptive Customer reception is based on the quality
of the final products and services.
Resonance The tone of the tagline is both sophisticated
yet casual. So that to connect with the
target audience of different age-groups
Figure 10 CREATIVE STRATEGY ANALYSES
MESSAGE STRATEGY
Another important part of the advertising strategy is the message strategy. It defines the goals which
are expected to be achieved through the advertising strategy and the methods which will be helpful
in doing so (O’Guinn et al, 2003).The following figure discusses the goal this advertising strategy
wants to achieve and the method used for that:
20
22. ADVERTISING MESSAGE GOAL METHOD USED
Link a key attribute to the brand name- the - USP
brand name LULU FELIZ has to be associated
with the seller of unusual designer clothes at
cheap prices
Persuade the potential consumer- to convince - Reason-why Ads
potential customer to sell through or buy pre
loved designer clothes from Lulu Feliz
Instil brand preference- make potential - Feel good ads
customers prefer Lulu Feliz over its
competitorswhen planning to shop for used
clothing
Figure 11MESSAGE STRATGEY GOALS AND METHODS (O’Guinn et al, 2003)
MEDIA STRATEGY
Media strategy is one of the most important components of any communication plan. The objective
of every communication strategy is to reach most of its target audience as strongly as possible. To do
so, it becomes a basic requirement to use a combination of most of the media tools available. But
along with considering the key objectives that the campaign wants to achieve, while selecting media
tools to be used, it is also important to keep in mind the limitations of the brand or rather the firm
for whom the campaign is to designed and executed.
For Lulu Feliz as well, the case is not different. It has its own financial and other internal limitations.
Hence it becomes necessary to screen out those tools which are best suitable for Lulu Feliz. The
following table depicts the tools selected in the advertising strategy, along with listing the reasons:
21
23. MEDIA TYPE REASON FREQUENCY
POSTERS - Low cost - From 15th may to end of June. If found effective,
- Easily visible to by it can be continued even after the campaign as
passers well
FLYERS - Low cost - Flyers distribution to be start from 15th may and
- Customised reach continue till 14thJune, thrice a week
CARRY BAGS - Medium cost - New printed bags to be supplied during the
- Longer life cycle month of June
- If found economical, can be continued after the
campaign as well
INTERNET - Low cost - Updating website in early may
ADVERTISING - Maximum reach, - Profile creation on social networking websites in
if used effectively early may
- Integrating the above options
Figure 12ADVERTISING MEDIA TOOLS
POSTERS
Lulu Feliz has used the posters for advertising purposes in the past as well which proved to be quite
effective for the business. The 2 large glass windows are the optimum space for putting the posters.
One thing to note here would be that 2 different posters will be designed for the 2 types of
customers the brand is targeting. Being on the main Dumbarton Street, although on the dark side,
proves some good for the boutique. Posters on the windows would be easily visible to the by
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24. passers. It’s a low cost option as much quantity of posters won’t be required and per unit cost of the
posters is very low as well.
Things to be taken care of while using this tool as advertising strategy is that posters should be of
suitable size, i.e., not too big and not too small. The print should be taken on a high quality photo
paper which has a high a colour reflecting features and longer life. The poster for customers who
wants to sell their pre loved clothes should be put between 15th may-14thJune. After that, posters for
customers wanting to buy pre loved clothes should be put on both the windows. Once the campaign
gets over, these posters can be used alternatively as per the need of the business situation.Their
effectiveness can be monitored though observing the stop rates and hopping in the shop by people
after watching the posters.
FLYERS
Flyers are one of the cheapest modes of spreading the word about any business. For Lulu Feliz, a
both side printed flyer will be used and distributed in different area of west end and nearby city
centre. One side of the flyer will have information about the customers planning to sell their pre
loved clothes and the other side will target the customers planning to buy preloved designer clothes
at cheap prices. The distribution will be done thrice a week starting from 15th may and will end in the
week starting from 14thJune. Part time resources will be hired for this,which will be paid on the basis
of number of flyers distributed, for example, £25 for 1000 flyers. Also, different regions will be
selected for each day so that maximum coverage can be achieved during these 4 weeks.
Again, the thing to be kept in mind while using flyers as a communication tool is the quality of the
flyer. Good quality flyers would be required as they will have to face the transportation wear & tear.
Also, once distributed, a longer life can be expected from them and so will be the communication
effect.
23
25. CARRY BAGS
The carry bags currently used have only the brand name on it. The owner also uses stickers with the
Lulu Feliz brand name on it. But this option has a shorter life cycle and this does not match the
desired brand image as well. While the new bags to be used during the campaign will have the key
message of the brand. Again, different messages will be printed on either side so that to be useful
for both types of target customers. The message used on the bags will be in consistence with those
on the posters. A significant amount of carry bags will be printed and purchased in bulk. This will
provide a dual benefit. One, it will cost low and second, the leftover bags, if any, can be used after
the campaign gets over.
The purpose of using carry bags is an advertising tool is that these bags travel a lot once they go out
of the shop and reach potential customers in a way unknown to the brand itself. Therefore, even
after being a tool of promoting the brand, it can be used as an effective tool for advertising as well.
The effectiveness of this media can be monitored through the number of customers coming again to
the boutique. New customers coming with previous ones can also be due to the message carried out
through these bags. Thus, if any such instance happens, that can also be referred to as an effective
use of carry bags.
INTERNET ADVERTISING
This tool is one of the most important ones as it has the most effective reach in terms of both quality
and quantity. Lulu Feliz should update its website by early may. Different element from the
campaign should be updated on the website and if possible, product information and pictures
24
26. should also be put on the website. Although, no transaction opportunity to be provided on the
website.
Moving further in the World Wide Web, social networking websites should be used to create the
business profile for the brand and connecting with its target audience, mainly college students,
through this media. Facebook and twitter only should be used for this purpose initially. Some group
selling websites will also be used, which will be discussed in the following sections.
Internet will be a cost effective tool for the brand. Also, it can be measured by using cheap
software’s to monitor the number of total and unique visits on the website. Also, the numbers of
posts, tweets, likes, subscribers, followers, etc. aresome of the ways to measure this tool’s
effectiveness. Not to miss out, the above mentioned webpages will be linked to each other so that
to imply an integrated effect. This monitoring will be done on weekly basis and analyses will be
made every week. Suggestive actions will be taken in terms to modify next week’s strategy
depending on last 2 week’s result. On Lulu Feliz’s website, links to its social networking profile pages
will also be added.
A summary of the different advertising tools to be used is provided below:
Advertisin Flow Resources Scheduling Monitoring
g Media Involved
Posters - To be put - Can be - 15th may - People
on the done by to 30thJune stopping
shop the owner outside to
windows herself read the
poster and
popping in to
enquire or
25
27. shop
Flyers - to be - Part time - 15thmay to - Customers
distributed resources 20thJune arriving from
thrice a can be the areas
week hired where flyer
distribution
has been
done
Carry Bags - New brand - Matter to - 1stJune to - Customer
message be 30thJune repetition
to be provided - old
printed on to the customers
the carry carry bag bringing in
bags used suppliers new
customers
- new
customers
coming with
reference of
existing
customers
Internet - website - external - 10th may to - Click rates
updating technical 30thJune and page
- social support visits
networkin will be - Posts,
26
28. g profile required comments
creation and followers
on social
networking
profiles
Figure 13 ADVERTISING STRATEGY SUMMARY
SALES PROMOTION STRATEGY
Sales promotion techniques are also an important part of a marketing communication strategy for
any brand. While mass media advertising aims at building a brand image, sales promotion have a
straightforward objective of inducing purchase behaviour. Sales promotion is the use of incentive
techniques to persuade potential customer to make a trial. These can result in repeat purchases if
found effective (O’Guinn et al., 2003).
For Lulu Feliz, consumer sales promotion techniques of coupons and sales promotion using daily
deals websites like groupon, living social, etc. will be used. Before discussing the tools in details, the
following figure provides an overview of the sales promotion strategy:
27
29. SALES PROMOTION
OBJECTIVE MESSAGE MEDIA
• to generate trials and • message behind • Coupon
create a hype using this would be • daily deal websites
• to increase sale by to make the
30%-35% by the end customers coming
of june during the campaign
some extra benefits
Figure 14 SALES PROMOTION STRATEGY
COUPONS
Coupons will be used in a twofold manner for Lulu Feliz. The flyers to be used in the advertising
strategy will have price-off coupon information printed on it. The customers bringing these flyers
with them will be eligible to use the offer. For the customer planning to sell their used clothes will be
provided an extra amount of money once their clothes get sold and those planning to buy clothes
from Lulu Feliz will be provided extra 10% discount on their purchase.
The duration of these coupons will be the same as of that of the flyers. By doing it this way, it won’t
cost anything extra for Lulu Feliz as well. It will also be easy to monitor the effectiveness of these
coupons.
DAILY DEAL WEBSITES
28
30. Daily deal market has grown at an enormous rate in the past six months. According to CBRonline
(2012),UK consumers have spent over £290m through daily deal websites. In a daily deal summit in
Europe, it was revealed that between July-December 2011, consumers saved an average of £375m
by shopping through daily deal websites.
In the new marketing communication strategy, daily deal websites will be used as a sales promotion
strategy for Lulu Feliz. Consumers bringing their daily deal vouchers with them will be provided the
offer. This strategy is aimed at those female who are using daily deal websites on regularly basis.
Lulu Feliz will be using Groupon and Living Social, for this campaign. These are the top 2 ranked daily
deal websites in terms of the number of daily visitors these websites receive(dailydealmedia,
2011).Also, both of these websites have college and working females as their majority audience
(Alexa, 2012). This strategy will be used for the month of June 2012. Number of deals reimbursed at
the shop will be used for monitoring its effectiveness.
Sale promotion strategy for Lulu Feliz can be summarised as follows:
COUPONS DAILY DEAL WEBSITES
Flow - To be used along with the flyers - To provide price off or
transaction based deals
through Groupon and
Livingsocial websites
Resources Involved - Common as in the flyer - An account with the two daily
distribution with no extra cost deal websites would be
needed
Scheduling - 15th may to 20thJune - 1stJune to 30thJune
Monitoring - Number of Customers bringing - Number of customers using
29
31. flyers and redeeming the offer groupon or living social to
transact at the shop
Figure 15SALES PRMOTION STRATEGY SUMMARY
DIRECT MARKETING
Direct marketing involves an attempt to create a dialogue between the marketer/firm and the
customer. The objective of a direct marketing strategy is to establish a communication process
between the concerned parties, in a way to build a long term relationship. The effectiveness of a
direct marketing strategy can be measure through the speed of availability of a measurable response
(O’Guinn et al., 2003).
The new campaign for Lulu Feliz will implement database marketing and e-mail marketing as its
direct marketing strategy. An overview of the direct marketing strategy for the brand can be found
in the following figure:
30
32. DIRECT MARKETING
OBJECTIVE MESSAGE MEDIA
• by the end of the • Motivating loyal • Database marketing
campaign, atleast 40% customers by providing • e-mail marketing
of customers should regular updates and
become loyal information on future
customers clothing collections and
• to increase the promotional offers
customer database
Figure 16 DIRECT MARKETING STRATEGY OVERVIEW
DATABASE MARKETING
The new campaign will develop a customer database for Lulu Feliz. Once developed, this database
can be updated and further modified in future. The database will be useful in starting and
maintaining a continues dialogue with its best customers. Though there are 4 different types of
databases which can be maintained by a firm. The campaign will start with the most basic one and
by the end of the campaign, a customised marketing database will be provided to Lulu Feliz. The
implementation of database marketing, as a process, can be explained by the following figure:
31
33. MAILING LIST
LIST ENHANCEMENT
- a file with names and
addresses of exisiting MARKETING DATABASE
customers will be developed - additional information will
be incorporated into the
- purchasing information - as the campaign will go
existing databse
databses can be a costly on, information rlelated to
option for the brand. - this information will include
customer's personal
hence, not used the demographic and preferences and behavioural
behavioural data about the patterns will be recorded
customers
- this can be done by
engaging customers in a
dialogue
Figure 17 DATABASE MARKETING PROCESS(O’Guinn et al., 2003)
E-MAIL MARKETING
Once the marketing database has been developed for Lulu Feliz, this can be used time by time to
contact customers with a purpose of receiving feedbacks, informing about upcoming collections and
events, and promotional techniques. This tool can be used even after the campaign gets over, as it
will be useful for the brand in keep those customers with itself, who shifted to Lulu Feliz during the
campaign, and thus can have long term implications
Although, the quality of response reception depends on the level of satisfaction a consumer have
gained after interacting with the brand. It gets important for Lulu Feliz to provide a world class range
of products and services to its customers, both during and after the campaign.
32
34. The summary of the direct marketing strategy can be presented as follows:
DATABASE MARKETING E-MAIL MARKETING
Flow - A customer database - The customer database
will be developed developed will be used
- Starting from the most to send informational
basic one of mailing list, and promotional e-
it will be organised into mails
a customised marketing - Feedback collection will
database also be done through
this
Resources Involved - External resource - No external resources
required till the required.
development of the
marketing database
Scheduling - Starts from the very - Post campaign
beginning of the - Should be pursued
campaign, i.e., 1stJune regularly
Monitoring - Involvement of - Quality and quantity of
customers response received
Figure 18DIRECT MARKETING STRATEGY-SUMMARY
33
35. CONTINUITY MEDIA SCHEDULE
CAMPAIGN MEDIA SCHEDULE
WEEK-1 WEEK-2 WEEK-3 WEEK-4 WEEK-1 WEEK-2 WEEK-3 WEEK-4 POST
MEDIA TOOL
MAY MAY MAY MAY JUNE JUNE JUNE JUNE CAMPAIGN
2012 2012 2012 2012 2012 2012 2012 2012 PERIOD
ADVERTISING
Poster
Flyers
Carry Bags
Internet Advertising
SALES PROMOTION
Coupons
Daily deal websites
DIRECT MARKETING
Database Marketing
E-mail marketing
Figure 19 CONTINUITY SCHEDULE
34
36. CAMPAIGN EVALUATION
A marketing communication campaign is very important for any firm in terms of mainly two things.
First, important objectives are linked with the campaign. If successfully launched and implemented,
a campaign can bring a turnaround for the firm. Second, significant amount of cost is involved in the
campaign, which captures a strong space in the company’s balance sheet in the liabilities side.
Hence, it becomes important for any campaign to help the brand generate sufficient amount of
money, not just to cover up the expenses, but earn a lucrative profit over it.
A communication campaign should be evaluated as it helps in improving future decision making. It
provides an opportunity to reduce risks for future strategies. If the same firm goes for a new
campaign with new objectives and media, it will be able to use its past experience and can work out
an improved campaign. In simple words, the basic objective behind evaluating a communication
campaign is to identify the mistakes and shortcomings, and to eliminate them in the future. If so
done,it will ultimately save costs(Belch & Belch, 2010).
The campaign for Lulu Feliz involved three major communication tools to be used, i.e., advertising,
sales promotion and direct marketing. Out of the three, advertising has options for a pre-testing as
well. But due to the limitations of the owner, Audrey Proudfoot, all the tools will be evaluated in
terms of their post launch scenario. However, a brainstorming session with the owner will be held to
devise out a desired advertising message and action plan. A post launch evaluation plan for the
communication tools is provided below:
COMMUNICATION TOOL EVALUATION METHOD DETAILS
Thought Listing Random selection of customers
(O’Guinn et al., 2003) Recording the attitude and judgement of
Advertising customers towards a promotion or the
overall brand image
Comparison can be made between the
35
37. desired and the actual response received
Recognition Test Customers selected on a random basis to be
(O’Guinn et al., 2003) asked about an ad
Evaluation can be done on the basis of how
well the advertisement is recognised
Brand Website Number of visits Number of total and unique visits received
Number of enquiries during the campaign
Number of enquiries received through the
website
Social Networking Profiles Profile Analysis Number of followers at the beginning and at
the end of the campaign
Number of comments, tweets, posts and
shares at the beginning and the end of the
campaign
Sales Promotion Sales analysis A check can be made at the end of the
Cost Vs revenue campaign as well as the financial year, that
comparison whether the sales objectives set before the
campaign have been achieved or not
A cost analysis can also be done to analyse
the expenses incurred versus the revenue
generated by the campaign, at the end of
the campaign
Financial methods like break even analysis
can also be used to measure the time it took
to cover up the cost and it started making
profits for the brand (Hillier & Clacher,
2011)
36
38. Direct Marketing Cost per order The effectiveness of direct marketing can
Measuring Response evaluated by measuring the number of calls
generated by the advertisement
The quality and quantity of the responses
received through direct marketing can also
be helpful in evaluating its performance
Figure 20 MARKETING COMMUNICATION PLAN EVALUATION
BUDGETING
PER UNIT
COMMUNICATION MEDIA SERIVCE QUANTITY TOTAL COST
PRICE
ADVERTISING BUDGET
Poster - Shop window size £18.4 6 £110.4
poster
Flyers 13p 5000 £50
Carry Bags 14p 500 £67
INTERNET ADVERTISING
Website management & - 8 page website £75 1 £75
Social Networking development and
integration management
- Social networking
profile management
- SEO optimization
SALES PROMOTION BUDGET
Coupons Flyers include coupons.
Hence, no additional
budget required
Daily deal websites Depends on the deals
37
39. provided on daily basis
DIRECT MARKETING BUDGET
Database Marketing Developing and organising £500 £500
customer database
E-mail marketing Done by the owner.
Hence, no additional
budget required
Total Budget £802
Figure 21PROPOSED BUDGETS FOR THE COMMUNICATION CAMPAIGN (Source: For poster-Pwauk.com, carry bags-
Amazon.co.uk; Flyers-eprinting.co.uk)
38
40. REFERENCES:
Alexa.com (2012) groupon.co.uk - Information from Alexa Internet. [online] Available at:
http://www.alexa.com/search?q=groupon.co.uk&r=home_home&p=bigtop [Accessed: 20 Apr
2012].
Alexa.com (2012) livingsocial.co.uk - Information from Alexa Internet. [online] Available at:
http://www.alexa.com/search?q=livingsocial.co.uk&r=site_screener&p=bigtop [Accessed: 20
Apr 2012].
Belch, G. and Belch, M. (2010) Advertising and Promotion-An Integrated Marketing
Communications Perspective. 8th ed. Irwin McGraw-Hill.
Cbronline.com (2012) UK spends nearly £300m on daily deal websites - Computer Business
Review. [online] Available at: http://www.cbronline.com/news/uk-spends-nearly-300-million-
on-daily-deal-websites-080312 [Accessed: 18 Apr 2012].
Cravens, D. and Piercy, N. (2006) Strategic Marketing. 8th ed. McGraw Hill.
Davies, G. et al. (2003) Corporate Communication and Competitiveness. Routledge.
E-printing.co.uk (2011) Flyer Printing, full colour flyers printing, leaflets printing. [online]
Available at: http://e-printing.co.uk/flyer_printing/price.asp?hd=130&size=A6 [Accessed: 18 Apr
2012].
Frazier, K. (2006) Amount of Spending Money a College Student Needs. [online] Available at:
http://college.lovetoknow.com/Amount_of_Spending_Money_a_College_Student_Needs
[Accessed: 18 Apr 2012].
Hillier, D. and Clacher, I. (2011) Fundamentals of Corporate Finance: European Edition. McGraw
Hill.
39
41. Media, K. (2011) New Eversave Survey Reveals Women’s Shopping Habits – It’s Not Guilt Free |
Daily Deal Media. [online] Available at: http://www.dailydealmedia.com/278new-eversave-
survey-reveals-womens-shopping-habits-its-not-guilt-free/ [Accessed: 19 Apr 2012].
Media, K. (2011) Top Ten Daily Deal Sites | Daily Deal Media. [online] Available at:
http://www.dailydealmedia.com/top-ten-daily-deal-sites165/ [Accessed: 19 Apr 2012].
Money-management-works.com (2009) Teen Spending, Teen Spending Habits, Teen Consumer
Spending Habits. [online] Available at: http://www.money-management-works.com/teen-
spending.html [Accessed: 18 Apr 2012].
O’Guinn, T. et al. (2003) Advertising and Integrated Brand Promotion. 3rd ed. Thomson South-
Western.
40
42. APPENDICES:
1. QUESTIONNAIRE:
Q.1 Please tell us something about the background of Lulu Feliz.
Ans.
Q.2. What are the key products/services that you are offering?
Ans.
Q.3 Who are you target customers?
Ans.
Q.4 Currently, which all marketing tools are you using to promote Lulu Feliz?
Ans.
Q.5 According to you, what are your:
Strengths:
Weaknesses:
Opportunities:
Threats:
Q.6 Who are you key competitors that you think are a threat to your brand?
Ans.
41
43. Q.7 What do you think are the key strengths and weaknesses of your competitors against Lulu Feliz?
Ans.
Q.8 What are the key differentiating factors of your offerings?
Ans.
Q.9 Do you often introduce come up with new launches?
Ans.
Q.10 If yes, do you use any marketing tool to promote the launch?
Ans.
Q.11 What is the monthly budget that you set for marketing on a monthly or annual basis?
Ans.
42