Developing a New Range of Clothes for Kids: A Marketing Strategy

The report discusses the development of a new range of clothes for kids by Karen Millen. The company aims to attract new customers and gain profit through this venture, as the market for kid's products is growing rapidly. To achieve this goal, the firm will adopt penetration pricing to attract customers with low-priced products. Additionally, personal selling, discounted offers, and advertisements on various media platforms will be used to promote the new product range. The report concludes that developing a new product range will help Karen Millen gain profit and attract new customers.

Portfolio

Table of Contents
Executive Summery.........................................................................................................................1
INTRODUCTION...........................................................................................................................2
3. Current situation of Karen Millen................................................................................................2
a. Characteristics of market level...........................................................................................2
b. Macro environment(PEST)................................................................................................2
c. Competitors.........................................................................................................................3
d. STP and detailed customer profile.....................................................................................3
e. Current marketing mix........................................................................................................4
f. SWOT.................................................................................................................................4
4. Proposed collection......................................................................................................................4
a. Brand...................................................................................................................................4
b. STP & detailed customer profile........................................................................................5
c. Visual range plan................................................................................................................5
d. Justification of collection...................................................................................................6
e. Pricing strategies and margins............................................................................................7
f. Promotional ideas................................................................................................................7
5. CONCLUSION............................................................................................................................7
b. Timeline(Gantt chat)..........................................................................................................7
REFERENCES................................................................................................................................8

Executive Summery
Present report is about Karen Millen which provides all types of clothing for women.
They conduct market research and survey with the help of which they come up with innovative
design and focus on providing comfortable cloths. Cites firm focuses only on women clothing,
but they are now focusing on including kids wear also for the age group from 4 to 12 and for
both the boys and girls. They will provide all types of garments which are required for kids.
Further, this report will include the time span in which business entity will be able to achieve
their desired goals of introducing kid’s products.
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INTRODUCTION
Karen Millen is a fashion retail company which provides fashionable and creative crafts
for women. It was founded in 1981 by Karen Millen and Kevin Stanford which is headquartered
in London. They provide all types of fashionable clothes, bags and dresses to its female
customers. Each of the pieces is designed individually, crafted with hands and then perfected by
designers (Karen Millen, 2014). They focus on understanding their customers for providing them
high quality services. It has its stores in almost around the world and has covered all the major
countries like United States, Italy, China, Denmark, Australia, etc. Karen Millen provides their
customers with quality products and fulfils all the needs and requirements. Moreover, products
delivered to service users are provided at affordable price and with high quality. This has
developed brand image, trust and confidence among the customers.
3. Current situation of Karen Millen
a. Characteristics of market level
As it was said above, Karen Millen focuses only on women clothing. In this context,
following are the characteristics for market level:
Quality: They provide their customers with high quality services because of which they are able
to develop brand image among the service users (Pyo, 2015).
Designs: They frequently develop innovative designs according to seasons or during any
occasions. Customers enjoy their products as these are new and innovative.
b. Macro environment (PEST) Political: There are many cases wherein government imposed new duty or tax because of
which organization was affected. It has many store in all around the world, so changes in
tax rate and fiscal policy of different countries affect firm to a great context. Economic: It determines inflation rate, foreign exchange rate, etc. This affects buying
behaviour of consumers and inversely affects the organization (Hollensen, 2015). Social: Trends and preferences of customers in different countries differ and accordingly,
it is important for the firm to make changes.
 Technology: Changes in technology take place frequently and it is important for the
organization to make change accordingly so that they could satisfy their customers
effectively.
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c. Competitors
There are many other firms which provide similar products to the customers. Major
competitors for Karen Millen are Zara, H&M, Topshop, etc.
d. STP and detailed customer profile
STP: This is very helpful in dividing customers according to their needs and
requirements. It includes three steps which are as follows:
Market segmentation: According to this, customers are divided into different groups as
per their common needs or characteristics. It helps to meet the needs of cost effectiveness and
also provides advantage over competitors (Diamantopoulos, Ring and Doberer, 2014).
Commonly, the division is done on the basis of demographic, geographic, psycho-graphic and
behavioural. In this context, Karen Millen has divided its customers into three groups. First one
includes young marriage couples, second is for middle class, and third is for customers who look
for luxurious and fashionable products with high level of varieties.
Targeting customers: In this step, the best segment is selected which provides high
profit. Karen Millen mainly targets on their third segmentation as there are many customers who
prefer new innovations and designs (Gbadamosi, Bathgate and Nwankwo, 2013).
Positioning: It is the distribution of products to the customers. Karen Millen has about 23
store around the world and they provide all the products and services through these stores.
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Illustration 1: Detail of customer profile

e. Current marketing mix Product: Karen Millen provides all types of clothing for women. It includes cardigans,
coats, jackets, tops, skirts, etc. Price: It provides different range of products so that they can serve and satisfy all types
of customers. Place: There are overall 23 stores of Karen Millen around the world in different countries
and they focus on making product available to all their stores (Leonidou, Katsikeas and
Morgan, 2013).
 Promotion: They provide seasonal discounts and free gift cards so as to promote their
products. Further, they make the use of social media and also conduct personal selling in
order to convey their product to service users.
f. SWOT
Strength:
 It has business at 23 different countries.
 Provides all types of women clothing. High quality products at different ranges.
Weaknesses:
 Only provides products for females. Has not covered all the markets.
Opportunities:
 Business expansion by targeting other customer group instead of females. New range of products (Mintz and Currim, 2013).
Threats:
 High competition.
 Low market share.
4. Proposed collection
a. Brand
Karen Millen can focus on developing new product range and that will be for kids in
between the age group of 4 to 12. It will focus on providing different garments for both male and
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female kids. Following are the range of garments which will be provided to male and female
kids:
Female: Inner-wear, winter wear, jeans & Trousers, leggings & jeggings, shorts &
capris, tops & tees and night wear.
Male: Shirt, T-shirt, inner-wear, track pants, jeans & trousers, top & bottom sets and winter
wear.
b. STP & detailed customer profile
Market segmentation: According to the new product range, segmentation will be done
on the basis of age group. Kids of different age group have different height and size (Pyo, 2015).
Therefore, dividing customers according to age group will be helpful in developing product
accordingly. Following are the divisions that will be done according to demographic segment:
Demographic: According to age, four groups will be made which are 4-6, 6-8, 8-10 and 10-12.
Targeting customers: Targeting of the products will be done on the basis of demand on
which customers will be attracted.
Positioning: Products for kids will be place at all the stores of Karen Millen in all around
the world. Further, it will also be sold online on the official page of firm.
c. Visual range plan
Age group:
Girls
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Boys
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d. Justification of collection
Developing new range of clothes for kids will help firm to attract new customers and gain
huge profit. Growth of kids for 4 to 12 is very high and the market of kid’s products is also high.
This will help firm to attract customers and enhance the growth of organization.
e. Pricing strategies and margins
Karen Millen will adopt penetration pricing as it is the first time that this firm has entered
into new product range. Rendering their products in low price will help in attracting customers
along with developing trust and confidence among the service users (Hollensen, 2015). In this
context, products for kids will help in increasing the market share and achieving high margin.
f. Promotional ideas
In order to promote the product, firm will conduct personal selling so that information
related to kid’s product will be conveyed. In addition to this, products will be sold on discounted
offers so that customers could be attracted (Diamantopoulos, Ring and Doberer, 2014). Further,
advertisements on television, newspapers and various social media will be used so as to promote
new range of products for kids.
5. CONCLUSION
From this report, it can be articulated that by developing new product range, firm will be
able to gain profit and attract new customers for their kid’s products. One of the main objectives
of company is to become the best among competitors by serving customers with innovative
designs and comfortable cloths.
b. Timeline (Gantt chat)
Activities/weeks 1 2 3 4 5
Research
Market analysis
Contacting suppliers
Pricing
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Promotion
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