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BRAND BEYOND

Country Manager Challlenge
by

Dmitriy Tretyakov

on 24 March 2014

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Transcript of BRAND BEYOND

Option 4:
Window Decorations
Advantages:
Window decorations in malls attracts large foot traffic
Useful for in-store decision making
English- and Arabic-friendly
High brand exposure to consumers and end-users
Disadvantages:
Static message
Low audience focus
4% Awareness = $200,000
Partnering Incentives for Faces
Promotion during national holidays (e.g. Eid) exclusively at Faces

Faces logo will be included in print advertising, at sampling events, and in our Youtube campaign.

These two strategies combined will indicate to consumers that Faces is the optimal place to buy our product.
BRAND BEYOND
Country Manager Challenge
Leena Asfour
Ruey-Ting Chien
Dmitriy Tretyakov
Connie Trinh
Customer Business
Development
Negotiation
with Faces
A Better Fit for Faces
The HUGO energise brand message aligns with and enhances the Faces brand message.
HUGO energise marketing message stands independently of the clothing line, and its message of "energy" applies to a wider audience than other brands.

The Eau de Lacoste Rouge message is too closely tied to the clothing chain.
"Lacoste polo shirt in a fragrance collection."

The Ferrari Red Power is designed for "the authentic Ferrari man" and closely targets people interested in Ferrari vehicles.
Option 1:
Joint Mailing
Advantages:
High consumer penetration
Developing a long-term relationship with consumer
Disadvantages:
Mailing in the UAE is complicated
Inconvenient for 18-28 year olds due to frequent changing apartments
Does not target tourists
Option 3:
Secondary Placement Strategy
Option 2:
Co-marketing Events
Advantages:
Attract top-class shoppers
Great for image-building
Disadvantages:
Doesn’t target tourists
Low penetration to college students and young professionals
High cost

1% Awareness = $100,000
Advantages:
Strategic locations stimulate impulse purchase
Highlights new product launch
Opportunity for eye-catching shelf design
Positive impact on brand image
Disadvantages:
Additional warehouse cost

3% Awareness = $225,000
3% Awareness = $375,000
In-store
Activities
Options
Second Placement Strategy (Option 3) and Window Decorations (Option 4)

Best fit the brand message of HUGO energise
Target purchase decisions made in-store
Best combination for highest awareness rate
7% Awareness
Promotional Items
Moreover, we will be providing the following promotional items to make selling our item easier.

trendy

energy

independent

$425,000 of $500,000 budget
Preferred In-store Activities
"up-and-coming trendy brands"

"on the pulse of contemporary offerings"

"vibrant store"

"for independent
shopping"
Total Cost
$425,000 In-store Activities
$50,000 Negotiation Tools Costs
$475,000 Total Costs
+
Total cost fits given budget of $500,000
Secondary Placement
Strategy Creative Example
Racing Simulator
Installing a racing simulator in the department stores will have a large appeal to men aged 18 to 28 years old
The unit price is up to $15k and fits our budget of $225k
The area surrounding the simulator will be Hugo energise branded
Draws many viewers - high focus and brand building
Merchandise available near the stimulator
Shipment into UAE
75ml
August
January
May
March
October
June
FPLC
75ml
125ml
Haulier
Tax
Warehouse
Cases shipped
FPLC
$18,144
$2,864,376
$959,400
$39.720
$96.73/case
$13,769
$2,451,661
$682,350
$28,400
$110/case
Our Goal
20% shelf share in the
primary category
and
secondary placements
in the male section of all of their stores.
In their paper
Effects of pricing and promotion on consumer perceptions
, Darke and Chung demonstrated that "free gift frames maintained quality perceptions and increased deal value."
Gift with
Purchase
Therefore, we can offer Faces shoppers a free gift with purchase of the 125 ml bottle.

Relevant gifts for the 18-28 year old men - laptop case.
$12.1/bottle
$13.75/bottle
June

July ~ Dec

Jan ~ May
Products enter on the third week of each month

Monthly Demand and Shipping Volume
Costs
Global production plan
Even at maximum capacity of 2 factories in Seaton and Nenagh, we
cannot
produce 4 million bottles per year.
Initial assumptions:
Based on the price index from Sales and Marketing department, we are aiming for 4 million bottles
60% purchase 75ml = 2400K
40% purchase 125ml = 1600K
Assuming constant demand per month.
Current situation
Monthly Stock Level
New assumptions:
Global demand in 1 year = 3 million bottles
60% purchase 75ml
40% purchase 125ml
We sell 60% of annual sales demand in the first half of the year, and we sell 40% in the second half of the year.
UAE sales share is 18% of global demand
We will produce in both factories Seaton and Nenagh.
We only ship from Nenagh to Dubai ONCE in June. The rest of the year, we will only ship from Seaton. We will save on tax and haulier costs
The first order in Nenagh is in April 2014
The first order in Seaton is in May 2014
One container from Nenagh
Two containers from Seaton per month
One container from Seaton per month
Shipment into UAE
125ml
June

July, Nov

Dec ~ Apr
Products enter on the third week of each month
Monthly Stock Level
One container from Nenagh two
from Seaton
One container from Seaton
One container from Seaton per month
Seaton
Nenagh
First 6 months
Second 6 months
$10,500
$5,250
$2,394
Haulier Cost
Tax
First 6 months
Second 6 months
$1,730,625
$865,312
$268,438
Warehouse
$959,400
May, June
No shipments coming
Conclusion
Global demand in 1 year = 3 million bottles
60% purchase 75ml = 1.8 million bottles
40% purchase 125ml = 1.2 million bottles

We sell 60% of annual sales demand in the first half of the year, and we sell 40% in the second half of the year

UAE sales share is 18% of global demand

We will produce in both factories Seaton and Nenagh

We only ship from Nenagh to Dubai ONCE in June. The rest of the year, we will only ship from Seaton. We will save on tax and haulier costs

The first order in Nenagh is in April 2014

The first order in Seaton is in May 2014
Global Production Plan
Initial assumptions:
Based on the price index from the Sales and Marketing department, we are aiming for 4 million bottles.
60% purchase 75ml = 2,400,000 bottles
40% purchase 125ml = 1,600,000 bottles
Assuming constant demand per month
Current situation
August
January
May
March
October
June
Costs
Seaton
Nenagh
First 6 months
Second 6 months
$7,546
$3,828
$2,394
Haulier Cost
Tax
First 6 months
Second 6 months
$1,459,968
$811,093
$180,598
Warehouse
$682,350
Breakdown of the UAE Demand

For Seaton, use Power Move

For Nenagh, use Excelion
April
Start production
in Nenagh
May
Start production
in Seaton
June
week 1
week 2
Import Logistics
75ml
125ml
week 3
week 4
1st shipment from
Nenagh arrives
1st shipment from
Seaton arrives
Production Timeline
Manufacturing
In-store sampling (as described in the marketing plan)
Display stands
Signage
Shipping Carrier
New assumptions
Annual Stock Levels
Annual Stock Levels
Monthly Demand and Shipping Volume
Thank You
Full transcript