Sample of assignment: A Full Marketing plan of Yishion 

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Executive summary………………………………………………………………………………………….. 1

  1.      Introduction of Yishion……………………………………………………………………………… 4
  2.      Market audit……………………………………………………………………………………………… 4

2.1      Market size……………………………………………………………………………………… 4

2.2      SLEPT analysis………………………………………………………………………………… 5

2.3      SWOT analysis………………………………………………………………………………… 5

  1.      Segmentation and positioning……………………………………………………………………… 5

3.1      Segmentation…………………………………………………………………………………… 5

3.2      Positioning………………………………………………………………………………………. 5

  1.      Mission and objectives……………………………………………………………………………….. 5

4.1      Corporate objectives…………………………………………………………………………. 5

4.2      Marketing objectives………………………………………………………………………… 5

  1.      Marketing plan………………………………………………………………………………………….. 5

5.1      Product decisions…………………………………………………………………………….. 6

5.1.1     Product width and product length…………………………………………….. 6

5.2      Pricing decisions………………………………………………………………………………. 6

5.3      Distribution decisions……………………………………………………………………….. 6

5.4      Promotion decisions…………………………………………………………………………. 6

  1.      Budgets and action programs for 2010, 2011 and 2012………………………………….. 6
  2.      Conclusion……………………………………………………………………………………………….. 9

7.1      Market share analysis………………………………………………………………………… 9

7.2      Profitability by product…………………………………………………………………….. 9

Reference……………………………………………………………………………………………………… 10

1.      Introduction of Yishion

 

Yishion is a young Chinese clothing brand that bases in Dongguan city, south China’s Guandong province. There are four major product series which include Yishion casual, Yishion sports collection, Yishion kids, Yishion urban (focuses on smart business clothing) that are currently manufactured by more than 20,000 employees and sold to in the over 3000 franchised stores globally of which the most are located in mainland China, making it one of the most famous Chinese clothing brand. With only 13 years history in business since the establishment as a wholesaler in 1997, Yishion managed to expand its network in Southeast Asia and middle ease as shown in the figure below. And United States is one of the most profitable market for clothing industry and in this marketing plan a focus will be given to the plan to expand Yishion’s business into the US market.

Figure 1 The business network of Yishion (Source: Yishion.com.cn 2009)

 

2.      Market audit

 

2.1    Market size

 

According to a recent report released by Research and Markets (2010), the clothing market size is expected to grow from USD 182 billion to USD 231 billion.

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Figure 2.0 China’s clothing export from 1997 to 2006 (USD $ billions)

Source: Global Trade Atlas

As shown in the figure above, the Chinese export of clothing products to the US kept a trend of steady increase since year 2001. So there are plenty of opportunities for the Chinese clothing manufactures to expand their business in the US market which witness a market value growth in the future.

 

2.2    SWOT analysis

 

SWOT, stands for strengths, weaknesses, opportunities and threats, is an useful tool for auditing the internal and external environment of an organization (Marketingteacher.com 2010). Strengths and weaknesses analysis could be used to examine a company internal factors while the opportunities and threats are the external factors faced by the company      in a particular business environment. A SWOT analysis could be used in the process of strategic planning to make an environmental examination.

 

2.2.1            Strengths

The most obvious strength that one may think about Chinese clothing products have for its expansion into the US market is its low cost advantage. China’s clothing industry is considered to own a unique position in the world clothing industry with its competitive advantages (Jing 2008) that mainly gained from the low price. The low cost advantage is sourced in two major ways. Firstly, there is a large pool of low cost labor forces in China in the product line. Since the clothing industry requires a large number of employees, the low salary in Guangdong could help Yishion achieve low cost and through the entry mode of exporting to the targeted US market. The second source that help control the production cost is the controlled Chinese currency RMB which keeps in a low value compared with US dollar by the Chinese government.

 

2.2.2            Weaknesses

 

Yishion, as a Chinese brand that has not been known to the US consumers may have weaknesses coming from its branding. On one hand, the brand name of Yishion which could only be understood in Chinese may be rejected from the consideration of the US customers as they could not understand the meaning of the brand name in a simple way. On the other hand, in a long time, the image of Chinese products have been considered as low cost and in low quality. Though Yishion has advance technology and process to ensure that its products are controlled in high quality but the unknown branding of Chinese origin could stop the purchase behaviors of the potential customers.

 

2.2.3            Opportunities

 

As mentioned above one of the major opportunities comes from the anticipated growth of market demand in the US in the next years. With the growing market demand and importing of Chinese clothing products in US, it is a good opportunities for Yishion to expand its business in the US. Another opportunity for Yishion’s expansion is economy recession in the major industrialized countries particularly in United Stated where the economy bubble broke up. With the expected decline in salaries, people tend to choose the Chinese clothing brands that are of lower prices. Even though this anti-dumping case is not against the clothing products but it also make the future worrying to the Chinese exporters in the textile industry about the possible further anti-dumping and other trade protective behaviors.

 

2.2.4            Threats

 

Even though according to the China’s WTO accession agreement, on 31st December of 2008 the quota restriction on the import of Chinese textile products had expired (Jones 2006) and logically speaking the export of Chinese clothing products into US market should come to a spring but it is never this smooth for the export of Chinese clothing industry. Restrictions still exist but conceal in other covers such as anti dumping. In July this year, the US Department of Ecommerce had set the anti-dumping duties from 77.75% to 174.85% on the electric blankets from China which worth about USD 60 million (En.21cbh.com 2010).

 

3.        Segmentation and positioning

 

3.1    Segmentation

 

Defined by Robinson (1938), market segmentation involves viewing a heterogeneous market as a number of smaller homogeneous markets, in response to differing preferences, attributable to the desires of consumers for more precise satisfaction of their varying wants. The basis of market segmentation could be sex, social classes, age groups and so on. According to a social classification, consumers can be divided into six classes: upper middle class, middle class, lower middle class, skilled working class and semiskilled and unskilled working class (Monk 1978). The segmentation according to the consumers’ economic status could be helpful to making the pricing decisions targeting the end users who shared similar income levels. And for the classification according to age group, the consumers of clothing products could be divided into four categories: Kid’s clothing, Youth clothing, Adult clothing and aged people’ clothing.

 

3.2    Positioning

 

As back in China, Yishion’s major effort is put in the promotion of an energetic and young brand that provides casual fashionable clothing to the middle class consumers, then the products exporting to US market should in consistence with its marketing positioning but should with a little modification which is to change the targeting middle class consumers to third class: the lower middle class as low pricing could help Yishion in penetrating the market and what’s more is more appropriate for Yishion as a Chinese cloth brand to begin its business in US.

 

4.        Mission and objectives

 

4.1    Corporate objectives

 

Yishion’s corporate mission is to provide the quality and fashionable clothing product with best value to the customers through its integrated business system (Yishion.com 2009).

 

4.2    Marketing objectives

 

The marketing goal for the expansion plan into the US market will be exporting clothing products to the US market which worth more than 20 million at the first year through the establishment of about 50 of its new franchise stores in the US market in the first year and then grows in an annual growth rate of 200% in next two years.

 

5.        Marketing plan

 

5.1    Product decisions

 

In term of product width, the four major product line which include Yishion casual, Yishion sports collection, Yishion kids, Yishion urban would still be on the shelves on Yishion franchise store in US. The Yishion casual is the major product line that the company would promote in the US market which means that even though in a Yishion store various products in the four product lines would all be released for sale but the major product line belongs to the Yishion casual clothing. And in term of product depth, it is important to diversify the product in each of the product line especially in the major product line, the Yishion casual clothing as shown in the figure below. And Yishion should provide abundant choices for each individual customer’ different clothing preferences as people who pursue the fashion tend to have strong personality.

Figure 3.0 Yishion casual clothing

What’s more the product styles should also be differentiating with the those for sale in the Chinese market because different consumer groups may have different definition for fashion in different times. For example, American women may prefer casual clothes that could show their sexuality rather than a more conservative clothing stylish that is said to be more preferable in the domestic market in China. Despite the differentiating product strategy that is used in the marketing plan in the US, product consistency is also very important which require different products could exhibit similar level of quality and value perceive by the customers to demonstrate a total brand image.

 

5.2    Pricing decisions

 

5.3    Distribution decisions

 

5.4    Promotion decisions

 

 

6.        Budgets and action programs for 2010, 2011 and 2012

 

Subject Jan Feb Mar Apr

 

May Jun Jul Aug Sep Oct Nov Dec Budget
Outdoor and internet Advertisement × × × × × × × × × 100,000
Campus promotional activities × × × × 50,000
Online promotional activities × × × 20,100
Partnership maintenance with cooperative websites × × × 1,250
Public relations × × × × 20,500
R&D × × × × × × × 200,000
Total 391,805

In thousands (CNY)

Figure 3.0 2010 marketing program and budget

 

Subject Jan Feb Mar Apr

 

May Jun Jul Aug Sep Oct Nov Dec Budget
Outdoor and internet Advertisement × × × × × × × × 130,000
Campus promotional activities × × × × 55,000
Online promotional activities × × × 30,100
Partnership maintenance with cooperative websites × × × 2,250
Public relations × × × × 25,500
R&D × × × × × × × 280,000
Total 522,850

In thousands (CNY)

 

Figure 4.0 2011 marketing program and budget

 

Subject Jan Feb Mar Apr

 

May Jun Jul Aug Sep Oct Nov Dec Budget
Outdoor and internet Advertisement × × × × × × × × 190,000
Campus promotional activities × × × × 65,000
Online promotional activities × × × 35,100
Partnership maintenance with cooperative websites × × × 4,250
Public relations × × × × 35,500
R&D × × × × × × 360,000
Total 689,850

In thousands (CNY)

Figure 5.0 2012 marketing program and budget

 

 

2009 2010 2011 2012
Sale revenue 12,439,960 21,147,932 35,951,484 61,117,523
Cost 3,889,468 7,894,669 15,408,927 29,276,560
Profit 8,550,492 13,253,263 20,542,557 31,840,963

Figure 6.0 Projected profit and loss statement

 

7.        Conclusion

 

7.1    Market share analysis

 

Brand name

7.2    Profitability by product

 

 

 

Reference

 

En.21cbh.com 2010, Chinese Textile Firms Fear Further U.S. Anti-Dumping Duties, accessed on 28th sep 2010 [online] available: http://en.21cbh.com/HTML/2010-7-2/5NMDAwMDE4NDg5NQ.html

 

Jones 2006, CRS report for congress: safeguards on textile and apparel imports from China, accessed on 28th sep 2010 [online] available: http://italy.usembassy.gov/pdf/other/RL32168.pdf

 

Jing, X. 2008, A study on the development strategy of China’s clothing industry at the after-quota age, International Business Research, Vol. 1, No.3, July 2008

 

Marketingteacher.com 2010, SWOT Analysis, accessed on 28th sep 2010 [online] available: http://marketingteacher.com/lesson-store/lesson-swot.html

 

Monk, D. 1978, Social grading on the national readership survey, Joint Industry Committee for National Readership Survey, London

 

Research and Markets 2010, Global Apparel Markets: Business Update, 2nd Quarter 2010, accessed on 28th sep 2010 [online] available: http://www.researchandmarkets.com/research/83a0be/global_apparel_mar

 

Robinson, J. 1938, The economics of imperfect competition, Mac Millan, London

 

Yishion.com.cn 2009, Our network, accessed on 28th sep 2010 [online] available: http://www.yishion.com.cn/#network

 

Yishion.com 2009, Company background, accessed on 28th sep 2010 [online] available: http://www.yishion.com/International/#aboutus