Marketing plan of LOreal Melbourne Fashion Festival

market plan of LOreal Melbourne spurt FestivalListed as a not for profit disposal since 1996, the Melbourne mold Festival Ltd, today know as the LOreal Melbourne Fashion Festival, has always been at the forefront of the fashion world. Over the categorys, the LMFF has become one of Australias top fashion suits and focuses on get markets that argon fashion oriented, social oriented and a mixture of some(prenominal). The issuances success can be recognised by the efforts made by more individuals and businesses that have been with the organisation for many years.On March 14, 2011, the LMFF launched Fashion Full Stop Decades of Australian Fashion, an event that celebrated designers, along with many labels and styles that have shaped Australias history in fashion. With tickets ranging from $79 to $39, 4000 fans filled the Melbourne Convention and Exhibition Centres plenary auditorium. Due to this, the event has been deemed a big(p) priority in future come outs and an extremely important opportunity to raise the profile of the organisation (LOreal Melbourne Fashion Festival Pty Ltd, 2011) Therefore the main objective of this event is to be recognised both nationally and internationally as the leading event of its kind and stimulate activity across the retail, clothing, footwear, and creative sectors.The purpose of this marketing plan is to identify LMFFs many strengths, weaknesses, opportunities and threats and these must be apply in union with several marketing strategies, actions and a budget of $47 200 to eventually achieve the overall objective. Although the beau mondes strengths and opportunities outweigh the organisations weaknesses and threats, the growing competition at bottom the fashion industry and changes in the marketing environment need to be of focus. For the event to be a success, the organisation must modify or keep an eye on the strategies and actions to forthwith reflect these changes.Event InformationThe aim of the Fashion Full Stop Opening Runway event is to celebrate and promote iconic designers, labels, styles and moments from the sixties to today, stimulate sales and present Melbourne as a precinct full of design superiority.Assessment of the selling EnvironmentInternal EnvironmentStrengthsSince the LMFF initiated in 1996, the unique LOreal mark off image has flourished make upd firebrand aw areness, recognition and emotional value to its mark audiencesHas built a reputable media profileHas been able to grow and produce a diverse range of activitiesShowcases many strong brand names and sponsorsgross revenue within Melbourne and other parts of Australia have skyrocketedIncreased staff attitude towards the event, opinions about the event, and expertness and experience during the eventWeaknessesCertain markets are not focused, e.g. low income earners. This may be intentional as the event focuses on exclusivity.Due to the lack of circumstance about the event in regards to online advertising, telev ision advertizings and more, previous customers may have a perception that the event may be sympathetic to the previous year or be similar to competition.External Environment3.21 Micro-EnvironmentCompetitive analysis and Venn DiagramDirect competitors (offer similar, save somewhat differentiated events) allow inLocationPrices heading MarketOfferings and/or SalesDate and timeRosemount Australian Fashion WeekSydneySimilarSameSimilarDifferentMercedes Benz Fashion FestivalBrisbaneSimilar, just offer waive eventsSimilarAchieved an increase of 61% on ticket sales and 33% on attendance in 2008(Lindsay Bennett Marketing, 2010)DifferentMotorola Melbourne Spring Fashion WeekMelbourneNearly all events are freeSimilarVery similarDifferentPerth Fashion FestivalPerthSimilarSameVery similarDifferentNew Zealand Fashion WeekAuckland (outside Australia)Very similarSimilarVery similarSameSimilar offeringsPartyEclecticWell knownSOCIALHIGH PROFILEINTERNATIONALIndirect competitors (seek to provide t he same benefits to the consumers, but in a different form) includePort Fairy category FestivalFuture Music FestivalMoomba Festival3.22 Macro Environment PESTE AnalysisPolitical forces/legal and regulatory influencesThe LMFF is required to uphold and adhere to many political and legal regulatory practices and the most important includeDrinking laws all underage visitors must be accompanied by an adult in bars and dining rooms (LOreal Melbourne Fashion Festival Pty Ltd, 2011).Entry refused entry is given to any person that is affected by alcohol/drugs, behaves aggressively or visits the account of the LMFF or any organisation associated with the LMFF (LOreal Melbourne Fashion Festival Pty Ltd, 2011).Intellectual property in the interest of all the stakeholders, registered designs, trademarks, patents, and copyrights all need to be view by apply intellectual property laws. It encourages technological innovation and artistic expression in industries (Commonwealth of Australia , 2 010).Economic trendsIn economic troubles, fashion, the arts and entertainment a great deal get sacrificed because of a decrease in disposable income. However, the slowdown within worldwide expenditure referable to the impact of the global economic crisis has had a junior-grade effect on the LMFF. In fact, consumers are still spending a large amount of income, see the festival on an annual basis, and sponsorship is still passing strong.Socio-cultural trendsAccording to Easey (2008), fashion is ultimately about change.many of these changes are brought about by designers trying to create something new to satisfy customers, but others are because of influences beyond the harbour of designers or manufacturers.some are within a companys control and others are way beyond it. Therefore, the LMFF opening runway show will have to focus on the stream needs and wants of the target market and visualize a way to satisfy them.Technological trendsIn several industries, the development and ut ilisation of new engine room gives the opportunity of improving a consumers experience. Recently, designers such as Alexander McQueen and Alexander Wang used technology to stream their fashion shows live online (Moore, 2010). The brand DKNY has also started using a barcode technology for invitations and seating arrangements for its fashion show (Moore, 2010). This type of technology could be developed for use in the LMFF opening runway show.Environmental trendsRecently, an honorable fashion forum has developed a mission to supportandpromotesustainable practices, facilitatecollaboration, raiseawarenessand provide thetoolsandresourcesneeded to reduce poverty, reduce environmental damage and raise standards in the fashion industry (Ethical Fashion Forum, 2011). Therefore, the push to become green is fairly large on fashion shows and designers. nerd AnalysisSTRENGTHSWEAKNESSESEstablished in 1996Unique LOreal brand imageNot for profit organisationStimulates sales within Melbourne and se veral brandsPresents Melbourne as a concenter of design superiorityDiverse range of activitiesUniqueStrong brand namesGood reputationPopular shows created annually/positive track indicateStaff attitude and opinionsStaff expertise and experienceExisting media profile/reputable media partners or sponsorsLocationCelebrity attractionAlthough variety of offerings, certain markets are not focused onPerception that customers may already know whats of offerLack of detailCurrent marketing campaigns are shallow and not environmentally friendlyOPPORTUNITIESTHREATSIncrease visitors and attract touristsBoost retail sales and economyExposure for sponsors/volunteersUpcoming designers and existing designers to showcase talentBuild reputation of MelbourneOpportunities for the LMFF to create something differentCompetition/growth of other tourism areas in MelbourneLimited financeInfrastructure renewal due to increase of visitorsSafety and gageMajor events throughout the year that target market pref er to spend time and money onHard to create niche products/services due to continuously changing environmentIncrease in push to become greenTarget MarketConsumer InformationThere are three types of target markets primary feather approximately 50% of attendees, require a small amount of marketing costs, go for the fashion and are loyal to the event.Secondary approximately 30% of attendees, require a slightly larger amount of marketing costs, use the fashion event as a social experience.Tertiary approximately 20% of attendees require a large amount of marketing costs go as its an event close to home.Target Markets and Market SegmentationMarket queryFor the purpose of improving the LMFF event and in order to determine the characteristics of the primary, secondary and tertiary target markets, secondary research has been used. This instruction has not been directly extracted from the audience, but instead from a variety of sources. A useful way in identifying the reasons why several ta rget markets visited LMFF was to create a brand bullseye, which takes into account a variety of emotional and functional perceptions, opinions and hot buttons (Skildum-Reid et al, 2007), see appendix 1.Consumer SegmentationThe primary target market are associated with the fashion world and are visiting the event to connect with designers, musicians, consumers, and retailers. In other words they are high profile guests who have been actively engaged with the festival throughout its history and put out to support LMFF into its future (LOreal Melbourne Fashion Festival Pty Ltd, 2011). The secondary target market enjoys socialising, spending a large amount of disposable income and are easily influenced by peers and the media. The tertiary are people that are interested in the arts, but use location and convenience to satisfy their needs and wants.DemographicsVariablesTarget MarketPrimarySecondaryAge21 5018 30GenderFemale and MaleFemale and MaleMarital StatusNoNoEducationYesYesChildre n living at homeNoNoIncomeMiddle to upper class, large amount of income, between $50 000 $110 000Lower class, large amount of disposable income, equal to or less than $30 000Internet use/ typeHigh/BroadbandHigh/BroadbandOnline get habits strong pointHigh and know how to buy online tickets, etcTelevision viewing preferencesPay televisionPay television and free to air televisionTransport usebuck privatePublic and PrivateBeverage and food preferencesExpensive and prefer alcohol and tea/coffeeCheap and prefer alcohol and sweet drinksEmployment lieu/occupationEmployed, usually in the fashion industryStudent, unemployed or new workerLocationBoth domestic and internationalDomestic and urban/metropolitan areas(Information collected from EIT Inc, 2005 Frankie, 2011 Fashion TV, 2011)PsychographicsVariablesTarget MarketPrimarySecondaryLifestyleCity weddedEnjoys shoppingQuality orientedFrequent buying behaviorInterested in the arts music, dance etcUpscale and well-offTrendyGlobetrottersVal ue-for-money orientedSocial status activitiesNo major responsibilitiesCity proneBig spendersPersonalityIndependent/Opinion leaderBrand and fashion consciousVery sensitive to advertisingCompetitiveAlways searching for the newest trends and products typical of their social imageInfluenced by peersOutgoingOpinion formersStreet-smart(Information collected from EIT Inc, 2005 Frankie, 2011 Fashion TV, 2011)ObjectivesOverall Business ObjectiveThe overall business objective of this event is to be recognised both nationally and internationally as the leading event of its kind and to stimulate activity across the retail, clothing, footwear, and creative sectors.SMART marketing objectivesThe objectives down the stairs conform to marketing standards of setting objectives which are Specific, Measurable, Achievable, Results oriented, and Time bound (Skildum-Reid et al, 2007).To obtain international and national prime time stories on channel FTV, dissimilar advertisements on national radio stat ion NOVA, and a major advertising campaign with a burnish photo in the magazine Frankie, one month sooner the event.To increase ticket sales domestically and internationally by 10% compared to the previous years opening runway event.To increase awareness and recognition of the brand LOreal in Australia from 20% to 35% by February 2012.To obtain five more sponsors prior to the event in order to increase funds by $cl 000.Marketing StrategiesLink to objectiveRationaleStrategiesMeasurement mechanism1This will achieve a large market penetration in the target markets and will encourage ticket sales beforehand the event1.1 Provide digital footage of highlights of last years event to various television and radio displace bod of televised stories that use the material1.2 grow opportunities for video and audio interviews with designers of the eventNumber of interviews1.3 Create and distribute press kits to local and international mediaQuality and credenza of media kit2This will achieve market growth and showcase the event as being popular and well-known2.1 Release early madam tickets at a discounted price to loyal customersAdvance ticket sales and/or revenue, customer database2.2 Provide online ticket purchases through connection of event website and ticketing company tag end sales and/or revenue, customer database of event and ticketing company2.3 Cross-promote with the event designers, singers and dancers through various advertising campaignsNumber and quality of cross progressions3This will boost ticket sales and product sales before the event due to brand loyalty and recognition3.1 Offer and provide samples of LOreal products to customersNumber and absolute frequency of customer purchases, customer opinion and satisfaction3.2 Cross-promote event with LOreal advertisementsNumber, quality and success of cross promotions3.3 Start an online social summon e.g. facebook to discuss the brand/product/eventNumber of visits/hits/comments/likes/followers4This will al low the event to produce better offerings in regards to the exclusivity of the event and will increase the events profile4.1 Create a sponsorship marriage offer and press kit that stands out from competitorsAcceptance of proposal and number of responses, number of proposals from competitors do PlanActionsAction OfficerTime Frame (months before event)12111098765432 strategy 1.1Action 1.11Contact FTV and NOVA representatives to find out deadlinePublic relations/media groupAction 1.12Collect and compose footage of event and audio interviewsPublic relations/media teamAction 1.13Send to FTV and NOVA by deadlinePublic relations/media teamdodge 1.2Action 1.21Develop an interview scriptPublic relations/media teamAction 1.22Contact agents of designers or designers directly and set up a meeting to interviewPublic relations/media teamAction 1.23Collect and condense interview data into clear informationPublic relations/media teamAction 1.24Send to editor of magazine by deadline along with pre ss kitPublic relations/media teamStrategy 1.3Action 1.31Contact media representatives to find out deadlinePublic relations/media teamAction 1.32Write media release and informationPublic relations/media teamAction 1.33Develop press kits to send to magazinePublic relations/media teamAction 1.34Send to editor by deadlinePublic relations/media teamStrategy 2.1Action 2.11Contact ticketing company to inform them of intention to sell tickets to event, with prices and discharge informationMarketing team/Ticketing manager or assistantAction 2.12Create online flyer to advertise event and early bird discountMarketing teamAction 2.13Send flyer to ticketing company database and event database through both mail and e-mailAdministrationStrategy 2.2Action 2.21Liaise with marketing team of ticketing company about website linkMarketing teamAction 2.22Create link within current event website with information and prices of ticketsIT team, marketing team, ticketing manager or assistantStrategy 2.3Action 2.31Develop a partnership bargainPublic relations, marketing teamAction 2.32Contact agents and set up a meeting to propose potential partnershiparrangementPublic relations, marketing teamAction 2.33Create and edit advertisement/promotionMarketingAction 2.34Inject cross-promotion into publicMarketingStrategy 3.1Action 3.11Contact LOreals sales and marketing team and set up a way to receive an x amount of samplesSales and Marketing teamAction 3.12Contact various intermediaries such as makeup counters, hair salons, fashion magazines to inform about samplesMarketing teamAction 3.13Distribute samples to intermediaries to implement in marketing campaignsSales and distribution teamStrategy 3.2Action 3.21Develop a partnership agreementPublic Relations, marketing teamAction 3.22Contact LOreals marketing team and set up a meeting to propose potential partnershiparrangementPublic Relations, marketing teamAction 3.23Create and edit advertisement/promotionMarketingAction 3.24Inject cross-promo tion into publicMarketingStrategy 3.3Action 3.31Create a user login on facebook.comIT TeamAction 3.32 develop and disseminate information and media on profile page with links to several other pages and event websiteIT Team, media team, marketing teamStrategy 4.1Action 4.11Write a marketing planMarketing teamAction 4.12Identify competitors and sponsorsMarketing teamAction 4.13Write a sponsorship proposal and press kitMarketing teamAction 4.14Send sponsorship proposal and press kit to identified sponsorsPublic relations, marketing teamContact sponsors and decide on sponsorship fundsMarketing teamMarketing BudgetThe marketing budget was based on a calculation of 20% of the total price of 4000 tickets sold in 2011.Ticket costTotal$79 x 4000$316 000$59 x 4000$236 000$39 x 4000$156 000$708 000Average$236 000Total Marketing Budget after 20%$47 200ObjectivesNeedDescription/Calculation of CostsCost1Advertising/publicity costs for Frankie and NOVA and FTVFrankie 3 x Full Page, W 210mm x H 275 mm $4670 each(Frankie, 2011)$14010NOVA 20 x 30 second ads over 7 days, 6am 6pm prime time $50 each(Australia Trade, 2010)$1000FTV 10 x 15 minute shows over 7 days, 7pm 715pm $20 cost per thousand (CPM) of 50, 000(Boone, 2009)$10 000Total$25 0102Mailing costs5,000 x letters $58c each (Australia Post, 2011)$2900Ticketing commission4000 tickets x 10% increase = (4400 x $79) x 0.01 commission$3476Printing costs2 colour copy flyers per A4 page = 2500 x A4 pages $38c each (Officeworks, 2011)$950Website developmentOverall cost (Cmather, 2011)$495Website maintenance30 hours $30 per hour(Cmather, 2011)$900Advertising and promotion for cross-promotion with designersBillboard 6m x 3m for 8 weeks $1500 per 4 weeks and a one off $300 installation cost 2 (halves with cross-promotion)(GOA Billboard, 2011)$1650Total$10 3713Samples cost20 000 samples $10c each$2000Advertising and promotion costs for cross-promotion with LOreal25 x national light weight bus stop advertising $690 each 2 ( halves with cross-promotion) (Adshel, 2011)$8 625Social WebsiteUsage is free$0Distribution costsCovered by LOreal$0Total$10 6254Printing costs20 pages x 100 booklets = 2000 colour pages 0.38c = $760 + 100 booklets x $1.95 each for binding = $195 (Officeworks, 2011)$955Mailing costs$1.20 x 100 booklets (Australia Post, 2011)$120Total$1175Overall total$47 181Monitoring and military ratingObjective 1 Measurement and evaluation mechanisms includeNumber of televised stories that use the materialNumber of gained interviewsQuality and acceptance of media kitContinuous partnerships with companiesObjective 2 Measurement and evaluation mechanisms includeThe difference in the number of ticket sales and/or revenue collected in prior year and current yearCustomer database increase and loyaltyNumber and quality of cross promotionsEmployee satisfactionLMFF annual review statisticsObjective 3 Measurement and evaluation mechanisms includeNumber and frequency of customer purchases/ LOreal annual rev iewNumber and frequency of sample intakeCustomer opinion, satisfaction, perception, and behaviours through surveysNumber, quality and success of cross promotionsNumber of visits/hits/comments/likes/followers on facebook pageIncrease in ticket sales for LMFF overall eventsObjective 4 Measurement and evaluation mechanisms includeAcceptance of proposalNumber of responses from sponsorshipsNumber of proposals from competitors to sponsorsNumber of contracts signed with sponsorships compared to previous years, see appendix 2Sponsorship funds increase and resource availabilitySponsor reliability, efforts made, and perception of eventConclusion and RecommendationsThe LMFF has repositioned one of its most recently popular events called Fashion Full Stop Decades of Australian Fashion. This popularity is proven by creative director, Grant Pearce, who stated in previous years, there hasnt been a show on opening night, theres just been a small presentation but this is a major theatrical show (Mer hab, 2011). This success has been assisted by creating numerous objectives, marketing strategies, and an action plan that concentrates on increasing advertising, sponsorship and sales.The LMFF needs to continuously check and track the success of their initial objectives and modify or maintain the strategies and actions accordingly. These changes need to directly reflect the target markets and their various needs, wants and demands.AppendixAppendix 1.Appendix 2.Principal and regime partners Loreal Paris, province Government VictoriaMajor Partners Herald Sun, David Jones, Sofitel Luxury Hotels, Pacific Brands, Centralpier Spirit of Docklands, SpecSavers, Paper Stone Scissors, Eye Media, Westfield, City of MelbourneEvent Partners Marie Claire, 565 Lasoo, City of Stonnington, Peroni Italy, Colonial First State Global Asset Management, Woolmark, SportsgirlOfficial Product Partners Champagne Devaux, Yering Station, Lavazza, Lexus, Raffaello, Chambord, Sanpellegrino, Toll Ipec, Nine west , kikki.K, Synergy, Steve MaddenPlatinum Partners Chadstone, Deloitte, Victoria Racing Club, Wilson ParkingGold Partners Middletons, Corrs Chambers Westgarth, Deutsche Bank, MyCatwalk.com, Melbournes GPO, Fashion Weekend Melbourne, Image Box, The Just Group, Collins 234, Nikon, QV Melbourne, KookaiMedia Partners Artichoke, WGSN, Frankie Magazine, Cosmopolitan, Vogue Australia, 3AW 693, FASHIONTREND, FashionTV, Harper Bazaar, Grazia, Nova 100.3FM, InStyle, Madison, Avant Card, Hoyts, Yen