Marketing plan of L’Oreal Melbourne Fashion Festival

Listed as a not for profit organisation since 1996, the Melbourne Fashion Festival Ltd, now known as the LOreal Melbourne Fashion Festival, has always been at the forefront of the fashion world. Over the years, the LMFF has become one of Australias top fashion events and focuses on target markets that are fashion oriented, social oriented and a mixture of both. The events success can be recognised by the efforts made by many individuals and businesses that have been with the organisation for many years.

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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 Australia’s history in fashion. With tickets ranging from $79 to $39, 4000 fans filled the Melbourne Convention and Exhibition Centre’s plenary auditorium. Due to this, the event has been deemed a large priority in future shows and an extremely important opportunity to raise the profile of the organisation (L’Oreal 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 LMFF’s many strengths, weaknesses, opportunities and threats ; and these must be used in union with several marketing strategies, actions and a budget of $47 200 to eventually achieve the overall objective. Although the company’s strengths and opportunities outweigh the organisation’s weaknesses and threats, the growing competition within 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 maintain the strategies and actions to directly reflect these changes.
Event Information
The aim of the Fashion Full Stop Opening Runway event is to celebrate and promote iconic designers, labels, styles and moments from the 1960s to today, stimulate sales and present Melbourne as a precinct full of design superiority.
Assessment of the Marketing Environment
Internal Environment
Strengths:
Since the LMFF initiated in 1996, the unique ‘L’Oreal’ brand image has flourished
Created brand awareness, recognition and emotional value to its target audiences
Has built a reputable media profile
Has been able to grow and produce a diverse range of activities
Showcases many strong brand names and sponsors
Sales within Melbourne and other parts of Australia have skyrocketed
Increased staff attitude towards the event, opinions about the event, and expertise and experience during the event
Weaknesses:
Certain markets are not focused, e.g. low income earners. This may be intentional as the event focuses on exclusivity.
Due to the lack of detail about the event in regards to online advertising, television advertisements and more, previous customers may have a perception that the event may be similar to the previous year or be similar to competition.
External Environment
3.21 Micro-Environment
Competitive analysis and Venn Diagram
Direct competitors (offer similar, but somewhat differentiated events) include:
Location
Prices
Target Market
Offerings and/or Sales
Date and time
Rosemount Australian Fashion Week
Sydney
Similar
Same
Similar
Different
Mercedes Benz Fashion Festival
Brisbane
Similar, but offer free events
Similar
Achieved an increase of 61% on ticket sales and 33% on attendance in 2008
(Lindsay Bennett Marketing, 2010)
Different
Motorola Melbourne Spring Fashion Week
Melbourne
Nearly all events are free
Similar
Very similar
Different
Perth Fashion Festival
Perth
Similar
Same
Very similar
Different
New Zealand Fashion Week
Auckland (outside Australia)
Very similar
Similar
Very similar
Same
Similar offerings
Party
Eclectic
Well known
SOCIAL
HIGH PROFILE
INTERNATIONAL
Indirect competitors (seek to provide the same benefits to the consumers, but in a different form) include:
Port Fairy Folk Festival
Future Music Festival
Moomba Festival
3.22 Macro Environment – PESTE Analysis
Political forces/legal and regulatory influences
The LMFF is required to uphold and adhere to many political and legal regulatory practices and the most important include:
Drinking laws: all underage visitors must be accompanied by an adult in bars and dining rooms (L’Oreal Melbourne Fashion Festival Pty Ltd, 2011).
Entry: refused entry is given to any person that is affected by alcohol/drugs, behaves aggressively or reduces the reputation of the LMFF or any organisation associated with the LMFF (L’Oreal 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 respected by using intellectual property laws. It “encourages technological innovation and artistic expression in industries” (Commonwealth of Australia , 2010).
Economic trends
In economic troubles, fashion, the arts and entertainment often get sacrificed because of a decrease in disposable income. However, the slowdown within worldwide expenditure due to the impact of the global economic crisis has had a little effect on the LMFF. In fact, consumers are still spending a large amount of income, visiting the festival on an annual basis, and sponsorship is still going strong.
Socio-cultural trends
According 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 control of designers or manufacturers….some are within a company’s control and others are way beyond it”. Therefore, the LMFF opening runway show will have to focus on the current needs and wants of the target market and find a way to satisfy them.
Technological trends
In several industries, the development and utilisation of new technology gives the opportunity of improving a consumer’s 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 trends
Recently, an ethical fashion forum has developed a mission to “support and promote sustainable practices, facilitate collaboration, raise awareness and provide the tools and resources needed 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.
SWOT Analysis
STRENGTHS
WEAKNESSES
Established in 1996
Unique ‘L’Oreal’ brand image
Not for profit organisation
Stimulates sales within Melbourne and several brands
Presents Melbourne as a centre of design superiority
Diverse range of activities
Unique
Strong brand names
Good reputation
Popular shows created annually/positive track record
Staff attitude and opinions
Staff expertise and experience
Existing media profile/reputable media partners or sponsors
Location
Celebrity attraction
Although variety of offerings, certain markets are not focused on
Perception that customers may already know what’s of offer
Lack of detail
Current marketing campaigns are shallow and not environmentally friendly
OPPORTUNITIES
THREATS
Increase visitors and attract tourists
Boost retail sales and economy
Exposure for sponsors/volunteers
Upcoming designers and existing designers to showcase talent
Build reputation of Melbourne
Opportunities for the LMFF to create something different
Competition/growth of other tourism areas in Melbourne
Limited finance
Infrastructure renewal due to increase of visitors
Safety and security
Major events throughout the year that target market prefer to spend time and money on
Hard to create niche products/services due to continuously changing environment
Increase in push to become ‘green’
Target Market
Consumer Information
There are three types of target markets:
Primary: 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 it’s an event close to home.
Target Markets and Market Segmentation
Market Research
For 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 information has not been directly extracted from the audience, but instead from a variety of sources. A useful way in identifying the reasons why several target 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 Segmentation
The 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 continue to support LMFF into its future” (L’Oreal 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.
Demographics
Variables
Target Market
Primary
Secondary
Age
21 – 50
18 – 30
Gender
Female and Male
Female and Male
Marital Status
No
No
Education
Yes
Yes
Children living at home
No
No
Income
Middle to upper class, large amount of income, between $50 000 – $110 000
Lower class, large amount of disposable income, equal to or less than $30 000
Internet use/ type
High/Broadband
High/Broadband
Online buying habits
Medium
High and know how to buy online tickets, etc
Television viewing preferences
Pay television
Pay television and free to air television
Transport use
Private
Public and Private
Beverage and food preferences
Expensive and prefer alcohol and tea/coffee
Cheap and prefer alcohol and sweet drinks
Employment status/occupation
Employed, usually in the fashion industry
Student, unemployed or new worker
Location
Both domestic and international
Domestic and urban/metropolitan areas
(Information collected from EIT Inc, 2005; Frankie, 2011; Fashion TV, 2011)
Psychographics
Variables
Target Market
Primary
Secondary
Lifestyle
City prone
Enjoys shopping
Quality oriented
Frequent buying behavior
Interested in the arts – music, dance etc
Upscale and well-off
Trendy
Globetrotters
Value-for-money oriented
Social status activities
No major responsibilities
City prone
Big spenders
Personality
Independent/Opinion leader
Brand and fashion conscious
Very sensitive to advertising
Competitive
Always searching for the newest trends and products representative of their social image
Influenced by peers
Outgoing
Opinion formers
Street-smart
(Information collected from EIT Inc, 2005; Frankie, 2011; Fashion TV, 2011)
Objectives
Overall Business Objective
The 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 objectives
The objectives below 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, various advertisements on national radio station NOVA, and a major advertising campaign with a colour photo in the magazine Frankie, one month before the event.
To increase ticket sales domestically and internationally by 10% compared to the previous year’s opening runway event.
To increase awareness and recognition of the brand L’Oreal in Australia from 20% to 35% by February 2012.
To obtain five more sponsors prior to the event in order to increase funds by $150 000.
Marketing Strategies
Link to objective
Rationale
Strategies
Measurement mechanism
1
This will achieve a large market penetration in the target markets and will encourage ticket sales before the event
1.1 Provide digital footage of highlights of last year’s event to various television and radio stations
Number of televised stories that use the material
1.2 Create opportunities for video and audio interviews with designers of the event
Number of interviews
1.3 Create and distribute press kits to local and international media
Quality and acceptance of media kit
2
This will achieve market growth and showcase the event as being popular and well-known
2.1 Release ‘early bird’ tickets at a discounted price to loyal customers
Advance ticket sales and/or revenue, customer database
2.2 Provide online ticket purchases through connection of event website and ticketing company
Ticket sales and/or revenue, customer database of event and ticketing company
2.3 Cross-promote with the event designers, singers and dancers through various advertising campaigns
Number and quality of cross promotions
3
This will boost ticket sales and product sales before the event due to brand loyalty and recognition
3.1 Offer and provide samples of L’Oreal products to customers
Number and frequency of customer purchases, customer opinion and satisfaction
3.2 Cross-promote event with L’Oreal advertisements
Number, quality and success of cross promotions
3.3 Start an online social page e.g. facebook to discuss the brand/product/event
Number of visits/hits/comments/’likes’/followers
4
This will allow the event to produce better offerings in regards to the exclusivity of the event and will increase the events profile
4.1 Create a sponsorship proposal and press kit that stands out from competitors
Acceptance of proposal and number of responses, number of proposals from competitors
Action Plan
Actions
Action Officer
Time Frame (months before event)
12
11
10
9
8
7
6
5
4
3
2
Strategy 1.1
Action 1.11
Contact FTV and NOVA representatives to find out deadline
Public relations/media team
Action 1.12
Collect and compose footage of event and audio interviews
Public relations/media team
Action 1.13
Send to FTV and NOVA by deadline
Public relations/media team
Strategy 1.2
Action 1.21
Develop an interview script
Public relations/media team
Action 1.22
Contact agents of designers or designers directly and set up a meeting to interview
Public relations/media team
Action 1.23
Collect and condense interview data into clear information
Public relations/media team
Action 1.24
Send to editor of magazine by deadline along with press kit
Public relations/media team
Strategy 1.3
Action 1.31
Contact media representatives to find out deadline
Public relations/media team
Action 1.32
Write media release and information
Public relations/media team
Action 1.33
Develop press kits to send to magazine
Public relations/media team
Action 1.34
Send to editor by deadline
Public relations/media team
Strategy 2.1
Action 2.11
Contact ticketing company to inform them of intention to sell tickets to event, with prices and discharge information
Marketing team/Ticketing manager or assistant
Action 2.12
Create online flyer to advertise event and ‘early bird’ discount
Marketing team
Action 2.13
Send flyer to ticketing company database and event database through both mail and e-mail
Administration
Strategy 2.2
Action 2.21
Liaise with marketing team of ticketing company about website link
Marketing team
Action 2.22
Create link within current event website with information and prices of tickets
IT team, marketing team, ticketing manager or assistant
Strategy 2.3
Action 2.31
Develop a partnership agreement
Public relations, marketing team
Action 2.32
Contact agents and set up a meeting to propose potential partnership arrangement
Public relations, marketing team
Action 2.33
Create and edit advertisement/promotion
Marketing
Action 2.34
Inject cross-promotion into public
Marketing
Strategy 3.1
Action 3.11
Contact L’Oreal’s sales and marketing team and set up a way to receive an ‘x’ amount of samples
Sales and Marketing team
Action 3.12
Contact various intermediaries such as makeup counters, hair salons, fashion magazines to inform about samples
Marketing team
Action 3.13
Distribute samples to intermediaries to implement in marketing campaigns
Sales and distribution team
Strategy 3.2
Action 3.21
Develop a partnership agreement
Public Relations, marketing team
Action 3.22
Contact L’Oreal’s marketing team and set up a meeting to propose potential partnership arrangement
Public Relations, marketing team
Action 3.23
Create and edit advertisement/promotion
Marketing
Action 3.24
Inject cross-promotion into public
Marketing
Strategy 3.3
Action 3.31
Create a user login on facebook.com
IT Team
Action 3.32
Organise and disseminate information and media on ‘profile’ page with links to several other pages and event website
IT Team, media team, marketing team
Strategy 4.1
Action 4.11
Write a marketing plan
Marketing team
Action 4.12
Identify competitors and sponsors
Marketing team
Action 4.13
Write a sponsorship proposal and press kit
Marketing team
Action 4.14
Send sponsorship proposal and press kit to identified sponsors
Public relations, marketing team
Contact sponsors and decide on sponsorship funds
Marketing team
Marketing Budget
The marketing budget was based on a calculation of 20% of the total price of 4000 tickets sold in 2011.
Ticket cost
Total
$79 x 4000
$316 000
$59 x 4000
$236 000
$39 x 4000
$156 000
$708 000
Average
$236 000
Total Marketing Budget after 20%
$47 200
Objectives
Need
Description/Calculation of Costs
Cost
1
Advertising/publicity costs for Frankie and NOVA and FTV
Frankie: 3 x Full Page, W: 210mm x H: 275mm @ $4670 each
(Frankie, 2011)
$14010
NOVA: 20 x 30 second ads over 7 days, 6am – 6pm prime time @ $50 each
(Australia Trade, 2010)
$1000
FTV: 10 x 15 minute shows over 7 days, 7pm – 7:15pm @ $20 cost per thousand (CPM) of 50, 000
(Boone, 2009)
$10 000
Total
$25 010
2
Mailing costs
5,000 x letters @ $58c each (Australia Post, 2011)
$2900
Ticketing commission
4000 tickets x 10% increase = (4400 x $79) x 0.01 commission
$3476
Printing costs
2 colour copy flyers per A4 page = 2500 x A4 pages @ $38c each (Officeworks, 2011)
$950
Website development
Overall cost (Cmather, 2011)
$495
Website maintenance
30 hours @ $30 per hour
(Cmather, 2011)
$900
Advertising and promotion for cross-promotion with designers
Billboard 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)
$1650
Total
$10 371
3
Samples cost
20 000 samples @ $10c each
$2000
Advertising and promotion costs for cross-promotion with L’Oreal
25 x national light weight bus stop advertising @ $690 each ÷ 2 (halves with cross-promotion) (Adshel, 2011)
$8 625
Social Website
Usage is free
$0
Distribution costs
Covered by L’Oreal
$0
Total
$10 625
4
Printing costs
20 pages x 100 booklets = 2000 colour pages @ 0.38c = $760 + 100 booklets x $1.95 each for binding = $195 (Officeworks, 2011)
$955
Mailing costs
$1.20 x 100 booklets (Australia Post, 2011)
$120
Total
$1175
Overall total
$47 181
Monitoring and Evaluation
Objective 1: Measurement and evaluation mechanisms include:
Number of televised stories that use the material
Number of gained interviews
Quality and acceptance of media kit
Continuous partnerships with companies
Objective 2: Measurement and evaluation mechanisms include:
The difference in the number of ticket sales and/or revenue collected in prior year and current year
Customer database increase and loyalty
Number and quality of cross promotions
Employee satisfaction
LMFF annual review statistics
Objective 3: Measurement and evaluation mechanisms include:
Number and frequency of customer purchases/ L’Oreal annual review
Number and frequency of sample intake
Customer opinion, satisfaction, perception, and behaviours through surveys
Number, quality and success of cross promotions
Number of visits/hits/comments/’likes’/followers on facebook page
Increase in ticket sales for LMFF overall events
Objective 4: Measurement and evaluation mechanisms include:
Acceptance of proposal
Number of responses from sponsorships
Number of proposals from competitors to sponsors
Number of contracts signed with sponsorships compared to previous years, see appendix 2
Sponsorship funds increase and resource availability
Sponsor reliability, efforts made, and perception of event
Conclusion and Recommendations
The 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 hasn’t been a show on opening night, there’s just been a small presentation but this is a major theatrical show” (Merhab, 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.
Appendix
Appendix 1.
Appendix 2.
Principal and Government partners: L’oreal Paris, State Government Victoria
Major Partners: Herald Sun, David Jones, Sofitel Luxury Hotels, Pacific Brands, Centralpier Spirit of Docklands, SpecSavers, Paper Stone Scissors, Eye Media, Westfield, City of Melbourne
Event Partners: Marie Claire, 565 Lasoo, City of Stonnington, Peroni Italy, Colonial First State Global Asset Management, Woolmark, Sportsgirl
Official Product Partners: Champagne Devaux, Yering Station, Lavazza, Lexus, Raffaello, Chambord, Sanpellegrino, Toll Ipec, Nine west, kikki.K, Synergy, Steve Madden
Platinum Partners: Chadstone, Deloitte, Victoria Racing Club, Wilson Parking
Gold Partners: Middletons, Corrs Chambers Westgarth, Deutsche Bank, MyCatwalk.com, Melbourne’s GPO, Fashion Weekend Melbourne, Image Box, The Just Group, Collins 234, Nikon, QV Melbourne, Kookai
Media Partners: Artichoke, WGSN, Frankie Magazine, Cosmopolitan, Vogue Australia, 3AW 693, FASHIONTREND, FashionTV, Harper Bazaar, Grazia, Nova 100.3FM, InStyle, Madison, Avant Card, Hoyts, Yen