product branding strategy proposal

7/27/2019 Product Branding Strategy Proposal

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A U G U S T | 2 0 1 3

PRODUCT BRANDIN G STRATEGYPROPOSAL


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CONTENTS

B R A N D S T R AT E G Y O V E R V I E W

T R AV E L R E TA I L

O V E R V I E W

S W O T A N A LY S E S

P R O P O S E D S T R AT E G Y

S W O T A N A LY S I S

F I N A L P R O P O S A L

P R O P O S E D S T R AT E G Y

N AT I O N A L A C C O U N T S


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BT FASHIONS BRAND EVOLUTION


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T R AV E L R E TA I L N AT IO N AL ACCO UN TS

P R E M I U M

$ 1 0 0

$ 9 0

$ 8 0

$ 7 0

$ 6 0

$ 5 0

$ 4 0

$ 3 0

$ 2 0

$ 1 0

$ 0

E X T E N D E D

R E T A I LP R I C E


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TRAVEL RETAIL


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BRAND AWARENESS

*Results polluted by Grupo Adixion a Mexican musical act

*

G F E D C

A/B


7/24

40 year history.

Strong brand awareness and presence in the travelretail industry.

Houses a wide portfolio of product categories.Trademark-protected in international markets.

Poor, and declining, brand awareness amongstconsumers.

Brand equity has been tarnished by decline in perceived

product value.

Wide presence in over 400 locations across 60countries.

Seen as a leader in affordable fashion in the travel retailsegment.

Renew the brand under new ownership.

Association with the $10 price point limits marginopportunities, and hurts product quality and limits

categories that we can provide as costs continuouslyincrease.

Entrance or development of stronger brands in thechannels we operate in.

OPPORTUNIT IES THREATS

WEAKNESSESSTRENGTHS


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Multi-price structure allows for greater margin.

Higher prices can support a wider breadth ofcategories.

Not directly associated with the Bijoux Terner brandfreeing it from the constraints of that brand.

No clear brand identity or definition.

No defined sourcing strategy or store rollout strategy.

Low brand awareness both in the travel retail industry

and amongst consumers.Inconsistent product mix.

Negative connotation.

Luxury segment of the travel retail industry is expectedto grow 25% between 2012 and 2014.1

Young brand with limited distribution that can betweaked and molded to maximize growth potential.

Existing customers have expressed an appetite forhigher margins.

Powerful brands are entering (Tiffany & Co., Hublot)and expanding (Este Lauder Cos, LVMH, etc.) their

presence in the higher-end luxury space in travel retailDirect competition from SNIs similar multi-pricedconcept B-Iconic.

Common brand name leading to brand confusion orpotential intellectual property disputes.

Trademark protected only in a handful of countries.

OPPORTUNITY THREATS

WEAKNESSESSTRENGTHS

1 Wealthy travelers boost airport sales of luxury brands - The Guardian


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M U L T I - P R I C E D B I J O U X T E R N E R O P T I O N ( E c o n o m y P r i c i n g T i e r )

Allows us to offer modestly higher margins, improve product quality, and maintaincategories.

H I G H E R E N D M U L T I - P R I C E D B R A N D ( M i d - T i e r B r a n d )

Targets a higher-end, more discriminate consumer allowing us to seize and offer largergross margins and to gain a foothold in the growing segment.

2 PR IMARY NEEDS


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DEF IN ING PR ICE T IERS

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$0.00 $20.00 $40.00 $60.00 $80.00 $100.00$120.00

S A L E S I N A D I X I O N S TO R E S( J & H ) B Y R E TA I L P R I C E

J E W E L R Y B A G S S C A R V E S

$25 - $35

$3.80 - $24.80 $10.80 - $32.80 $6.80 - $16.80

$5.99 - $19.99 $22.99 - $49.99 $7.99 - $10.99

$5.95 - $24.95 $24.95 - $49.95 $9.95 - $14.95

$29.95 - $54.95 $15.99 - $29.95

$10 - $98 $59.90 - $79.90 $29.90 - $34.90

$16.95 - $49.95 $29.90 - $79.95 $24.99 - $36.90

$10 - $44 $49 - $120 $34 - $39

$9.99 - $55 $20.99 - $198 $17.49 - $34.99

$16.90 - $59.90 $35.90 - $249 $19.90 - $59.90

$18 - $148 $78 - $448 $38 - $88

ECO

NO

M

Y

TIER

M

ID-TIER

PREM

IUM


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$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 43 44 47 50 59

NEW BRANDS WHOLESALE SALES BY PR ICEJANUARY 20 1 1 JUNE 20 1 3

Extended Premium

Price ($)

Sales (Thousands)


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WHOLESALE SALES | ADIX ION PREMIUM VS .EXTENDED

JANUARY 20 1 3 J U LY 20 1 3

Extended Premium

-$10,000

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

January-13 February-13 March-13 April-13 May-13 June-13 July-13


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ECONOMY PR IC ING T IER

Do we want toextend the life ofBIJOUX TERNER?

Develop an

entirely newmulti-pricedbrand (Z)

Develop anentirely new multi-priced brand tiedto the BIJOUXTERNER name(BTX)

YES

NO

Sell-in BTX into new stores usingnew store design withexpanded product portfolio

Sell-in BTX categoriesno longer offered by

BT (handbags) toexisting BT stores

Sell-in Z into new stores usingnew store design withexpanded product portfolio

Replace store signagecontaining Luxury at

$10 as part of storeredesign

Offer to move moreBT categories into BTXpricing model to give

margin whilerenegotiating costs

BTX

Z

Remove all mentionsof $10 frombranding / marketing

MULTI-PRICE

MULTI-PRICE

$10 MULTI-PRICE

$10

Develop marketing campaign toincrease awareness of the new brand


Offer to remodel stores to newZ stores to offer higher margin.

Slowly decrease thencease branding activities

ZMULTI-PRICE


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MID-T IER

Develop marketingstrategy

Lower Price Points

P R E M I U M

E X T E N D E D

Develop productstrategy

E C O N O M Y T I E R

Higher Price Points

BTXMULTI-PRICE

ZMULTI-PRICE

Do we want to aseparate brand totarget Price Tier 2?

YES

NO

BTXMULTI-PRICE

ZMULTI-PRICE


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NATIONAL ACCOUNTS


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Multi-price structure allows for greater margin.

Higher prices can support a wider breadth ofcategories.

Awareness is building in the food and drug channel.Not directly associated with the Bijoux Terner brandfreeing it from the constraints of that brand.

Brand identity constructed with no research or marketfeedback.

Relies on a re-ticketing strategy leading to high supply

chain costs, and increased lead time.Low brand perception caused by association with foodand drug channel

No unique product, marketing, or merchandisingstrategy.

Has a presence albeit small in several large, mass-market national retailers.

Distribution can increase to several thousand storeswith successful tests and relationship building.

Trademark protection not secured and currently underdispute.

Common brand name leading to brand confusion orfurther intellectual property disputes.

OPPORTUNITY THREATS

WEAKNESSESSTRENGTHS


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BRAND AWARENESS

*

F

D

C

B

Bijoux Terner LLCLaunches BYou


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The BYou s

A lifestyle brandempowering girls andwomen to bethemselves.

Telecom company

Toy company

Singer in band

Have lines of fashionaccessories andapparel.


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ECONOMYT IER

MID-T IER

C O N V E N I E C EC H A N N E L

S P E C I A L T YC H A N N E L BTXMULTI-PRICE

MULTI-PRICE

ZMULTI-PRICE

or

NATIONAL ACCOUNTS


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F INAL PROPOSAL


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Develop anentirely new multi-priced brand tiedto the BIJOUXTERNER name(BTX)

Sell-in BTX into new stores using

new store design withexpanded product portfolio

Sell-in BTX categoriesno longer offered byBT (handbags) toexisting BT stores

Replace store signagecontaining Luxury at$10 as part of storeredesigns

Offer to move moreBT categories into BTXpricing model to givemargin whilerenegotiating costs

BTX

Remove all mentionsof $10 frombranding / marketing

MULTI-PRICE

$10 MULTI-PRICE


Develop marketingstrategy

Lower Price Points

P R E M I U M

E X T E N D E D

Develop productstrategy

Higher Price Points

MULTI-PRICE

E C O N O M Y T I E R

M I D - T I E R


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SHORT TERM PL AN

N AT IO N AL ACCO UN TS

$ 8 0

$ 7 0

$ 6 0

$ 5 0

$ 4 0

$ 3 0

$ 2 0

$ 1 0

$ 0

R E T A I L

P R I C E

BTX

T R AV E L R E TA I L


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LONG TERM PL AN

T R AV E L R E TA I L N AT IO N AL ACCO UN TS

$ 8 0

$ 7 0

$ 6 0

$ 5 0

$ 4 0

$ 3 0

$ 2 0

$ 1 0

$ 0

R E T A I L

P R I C E

product branding strategy proposal

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