Marketing Communication for Kathmandu Holdings Limited

This article discusses the marketing communication strategies of Kathmandu Holdings Limited, a New Zealand-based company that designs and retails clothing and gear for tourism and outdoor usage. It covers the company's inventive marketing, empowered business thinking, data and technology-led method, fostering the capability of people, creativity, SWOT analysis, marketing mix, and target segments.

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MARKETING COMMUNICATION
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Introduction
Marketing communication
A Kathmandu holding limited is a company based in New Zealand that grows its income
from promoting, designing and retailing of clothing and gear for tourism and outdoor usage. The
business hires over 1,900 individuals operating Australia, New Zealand and United Kingdom,
with its management head office in Christchurch, New Zealand. Kathmandu runs a retail chain of
apparel and equipment stores for travel and outdoors. The company currently operates 163
outlets, 47 in New Zealand, and 115 in Australia and one in United Kingdom. Kathmandu also
manufacturers its house-branded merchandise, with its product range including the apparel such
as “down jackets, waterproof jacket, thermals, fleece, shirts and pants, Merino apparel and
thermals, and footwear and socks. Some of the equipment includes packs, bags, sleeping bags,
tents, travel accessories and camping accessories”. The firm is listed on the both Australia and
New Zealand stock exchange. It was found in 1987 and established to become a leading
speciality vendor in apparel and gear for travel and escapade in Australia and New Zealand, with
small commercial unit in UK (Grant 2015)
Inventive marketing
One of the main tasks for Kathmandu is that it is chiefly seen as a winter product
(Hastings & Saperstein 2014). So when it approaches summer launch epoch, at the start of
October, the product is not reflected a natural target by users. To fight the above, the company
built a predominant summer and travel theme tune that could link into summer invention
promotions. For instance, the following product winter 2015 drive, “embrace the cold”, a
summer movement established concentrating on rejoicing the delight of exploration and travel

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(Kathmandu Holdings Limited 2015). It was conducted in seasonal photo-shoot through an
grand five-day climb and presented summit club participants the chance to visit similar place by
sharing their highest picks for a vacation destination. This was trailed up by a trans-Tasman yard
social swap, asking its clients to upload of their preferred spot in their own republic backyard.
The above advertising got more than one million individuals and generated 36,000 social
activities. It also caused loss turnaround from previous year, amplified transactions, enhanced
margins and lowered the overheads including the lowering marketing expenditure (Parente &
Strausbaugh-Hutchinson 2014).
Empowered business thinking
In Australia and New Zealand, the company is predominately a vertical trade, where it
designs its own merchandises and sells them through their physical outlets and online networks.
Increasing a global wholesale, virtual, and franchise side to the trade, it needs an important
modification the manner in which people operates. The medium-term goals of the company are
to work towards 10% from the business coming from an international market, and by so, it will
reduce reliance on the home markets (APP Securities 2016).
Data and technology-led method
A key progress in an universal outdoor marketplace where company compete in, has been
on upsurge in partaking of active sporting such as yoga, biking, trail running, adventure racing,
and triathlon. comprehending that the company active product variety was not attaining its
target, and there was a substantial occasion for the summer period, it embarked on an
evaluation of its summit club to better comprehend who active yields, when are they being
purchased, which supplies were widespread and what other merchandises did customers buy in

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the same purchase (Podnar & Balmer 2013). After the study, the old people were the potential
buyer of the company’s product. The company was able to translate new business opportunity to
process more fashionable and on trend collection, with the concentration on trial running, which
came out as a robust link with the trademark.
Fostering the capability of people: when it comes to constructing the team competence,
the company’s first primacy is hiring worthy persons with a mixture of creative and strategic
thinking, logical and detail-focused skillsets. A recent enterprise is functioning with HR to
conduct a 360-degree assessment course for the top marketing squad. The resolve was to give
group associates understand into how the own direct report and peers outlook their organization.
The company has been able to build an in-house inventive studio. As a result, the company has
been capable to minimise the needs for external innovative organizations which create
consistency and acquaintance.
Creativity
Marketing strategy and programs play an important role by assisting the group to tell
disorderly and distinguished product and merchandise stories that are important (Kaplan &
Atkinson 2015). The company develops a promotion that droves brand deliberation and
preferences across both the associates and the generally active populace.
The merchandise team started the undertaking, by delivering a brilliant range of product
from the winter period. The marketing recognized key stories and put them under the winter
movement theme tune of the “gear that adapts”. This theme lined up with the product positioning
of adaptive kit for enthused travel and escapade" the creative method taken with the wintertime
drive has been a key component in the accomplishment of both trademark and social mass media

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KPIs, offering confidence to continue to push the course in the coming summer season
(Kathmandu.com 2016).
The successful retail brand has to develop to remain relevant to their user. The company
as briefed to revive the product, aligns it across the trade, and deliberates the design viewpoint
and arrest the spirit of stimulating the escapade. Because 95% of the firm’s transactions are of
the Kathmandu-branded produce, building an emblem that could sit well on the produce was
important.
SWOT analysis
SWOT analysis is a planned technique that can be utilised by the company leaders to do
situation study of the organisation. It is a hard method to map out the current strengths,
weaknesses, opportunities and threats the company is encountering in its present trade
surrounding. The company is one of the leading organisations in the sector. Kathmandu
Holding limited upholds its main rank in the market by sensibly assessing and revising the
SWOT examination. The tools are an immensely interactive procedure and require effective
collaboration among section with the firm such as management information system, market,
operation, finance and strategic planning (Gibbs 2012).
The central drive of SWOT analysis is to pinpoint the plans that firm can use to exploit
external opportunism, counter pressures and construct on and defend Kathmandu holding limited
strength and eradicate its weaknesses.
Strengths: as one of the leading company, Kathmandu has a various strengths that assist it
to flourish in the market arena; these strengths only assist it to guard the market share in present
market and also aid in novel market penetration.

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First, the corporation has made proficiency in joining new marketplaces and making a
achievement. The growth has assisted the company to create a novel income stream and expand
the financial cycle peril in the marketplaces it is operating.
Computerization of actions has brought the uniformity of quality to the company and also
assisted the firm to scale up and down grounded on the demanding state of the marketplace.
The business is comparatively successful at an implementation of a novel project and
built a decent return on capital spending by creating new income streams.
Its positive track record of incorporating successful firms through the merger and
acquisition is one of the strengths. It has positively combined a number of a expertise firm in the
past few years to restructure its operation and to create a good supply chain.
Also, fruitful track record of creating new merchandise is good in the firm. Strong
delivery grid over the years has enabled the corporation to build a dependable distribution system
that can reach main potential clients in the market. The company has a strong cash flow that
offers possessions in the hand of the enterprise to advance into novel projects. The company has
made a culture among merchants and distributors where the traders not only support the firm’s
merchandises but also capitalize in drilling the sales personnel to define to the client how they
can extract the full gain out of the products.
Weakness: the venture in the research and development is underneath the fastest rising
player in the business. Even if the company’s expenditure is above the average on research and
development, it has not been gifted to contest with the leading rivals in the business in terms of
the invention. The company requires more venture in novel expertise. Given the gauge of
progression the firm is forecasting to grow into, they need to put more cash in know-how to

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incorporate the process across the board. Therefore, the current technology is not per the
company’s image. Though the product is successful in terms of the sales volume, unique selling
and positioning are not well defined which can cause an attack in this portion from the
competitors.
The company is not highly prosperous at incorporating companies with various work
philosophy. As stated earlier, the Kathmandu holding limited is fruitful by incorporating small
firm. It had its share of letdown to merge businesses that have had a diverse work ethos. The
corporation has also portrayed lack of product demand forecasting that makes it miss many
opportunities to the rival. Economic planning is not done efficiently and appropriately. The
present asset ratio and liquid asset ratios propose that the firm can use the money more
effectively than what it is doing at current. The organisation structure is only compatible with the
present business model this limits the expansion in neighbouring adjacent (Orzan, Platon,
Stefănescu & Orzan 2016).
Opportunities: novel technology offers the business with a chance to practices segregated
pricing approach in the new market. The market growth will lead to reduction of rival’s benefit
and permit the company to upsurge its effectiveness compared to other players. New ecological
guidelines will build level playing ground for the companies in the segment. This signifies a
great chance for the company to motivate home its advantage in novel knowledge and gain
market share in the novel product class (Naeem, Bilal & Naz 2013).
New client from the online channel has been a big focus for the company by investing in
the online platform. The venture has undone a new sales network for the company. In the

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subsequent years, the business can influence this change by knowing its user well and serving
their desires utilising big data analytics.
Threats: stability in profitability has increased an intense competition over the past years
which have put pressure on the profitability and sales. Simulation of the fake and low-quality
merchandise is also a peril to a firm's merchandise, particularly, in the developing markets and
lower incomes marketplaces.
Changing the user buying behaviour from the online could pose a danger to an prevailing
physical infrastructure.
Lack of skilled staff in certain international markets poses a risk to the continued
evolution of profits for the company. The novel technologies advanced by the rival in the
marketplace could pose a severe danger to the sector in the medium to the long-term is
imminent.
Marketing mix
Pricing
The company sells outdoor related gears like hiking gears camping equipment, backpacks
and outdoor apparel. The company positions its merchandises as higher valued and costs are
relative to this position. The company regularly holds sales, campaigns and clearance actions.
These comprise online-only pacts, promo offer, and summit club exclusives. Given the above,
the company’s rates and deals can differ relying on the promotion or event presented. The
summit club members obtain 20% of the regular process of company branded gears and 10% off
all other gears. The company issues steady summit club exclusives, giving extra discounts on the

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fixed price of chosen substances. Summit club associates also get a $20 compensation coupon
for each $500 used up.
Place
From a strategic perspective, one is concerned with the company. Especially in Australia,
have been offering heavily discounted products for many months. People no longer associate the
company with quality rather than discounting. The company merchandise is only vended in the
company store, on its website and on the chosen global online networks such as Amazon UK,
Trade Me, eBay Australia, and eBay UK.
Promotions
The company has undone the online and mail-order operation since 2008. The business
platforms have grown steadily. Consolidating the uniqueness of brands can also open up chances
to be relevant in the global market and also in social, digital and online channel. Online deals are
only exclusive offers to their online users. Prices presented in the deals do not relate to in-store
acquisitions.
Products
The company’s brand cognizance and acknowledgment have been rooted profoundly
making it become leading specialized outdoor attire and gear vendor according to set growth
store and emphasis on worldwide client policy (Shrestha 2013). Kathmandu has an widespread
product choice covering outdoor and tourism wear and gear. The company product collection
has been planned to suit an array of client wants from the specialist explorer to the entry level

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traveler. The business's in-house scheme process draws a significant knowledge, industry
patterns and user insight to build technically planned innovative produces. Either performance or
quality is dominant to the company’s new proposal, practical growth, merchandising, quality and
dealer management tasks. A steady concentration from the produce team is the skill to offer a
huge variety of precisely trustworthy attire and gear products that appeal to the requirement of a
broad client base. The company outlooks invention as important in motivating continued
advancement. For instance, retreat compass shelter which utilised a highly inventive design. It
permits users to link their retreat tents to the compass, with the compass offering crucial living
zones, or extra room. Apparel includes down jackets, waterproof jackets, thermal, shirt and
pants, fleece jackets, footwear and socks, and merino apparel and thermals. The equipment
includes camping and travel accessories, tents, packs, bags, and sleeping bags.
Target segments
The three comprehensive target consumer segment of Kathmandu are young go-getters,
adventurous and grown-up outdoor fanatics. The Kathmandu’s development approaches
comprise; conclusion of the store linkage in New Zealand and Australia, refining brand
positioning in the global and online marketplace. More efficient advertising promotions for
summit club members. Finally, the company continuously advances its online and worldwide
abilities through network and websites.
Different marketing communication strategies
1. Emerging online and digital network capability is one of the crucial advertising
strategies specially for the retailer as the purchasing has changed (Farhana 2014).
The Kathmandu has an almost fully functional digital presence through the entire

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modern social mass media platform and owns an incorporated official website
which comprises of online spending task and brand advertising. Similarly, they
built a distinct official website for the New Zealand, Australia, and the UK due to
different ongoing events transmission and cultural divergence. This method is
planned for maximum client understanding and enhances gratification. The
company also offers universal shipping to other nations. The company
incorporated with the world nomads travel insurance firm to fulfil a convenient
and comprehensive service for the customer (Brunello 2013).
Sales report
Kathmandu Holdings, an outdoor adventure wear retailer reached a share price summit of
$3.50 fours years down the line in a volatile industry, where a cold snap can cause a quick sales,
but consistency is difficult to achieve. The company’s shares have risen up to 39% in the past
four months from $1.94 at the start of March to $2.69 (Simon 2018). Kathmandu which is dual-
listed on the Australia and New Zealand stock exchange has been intensely aligning in Australia
over the past few months. The sales in Australia were up to 13.8% which has easily surpassed
the 4% rise in the same-stores from the Kathmandu stores in New Zealand (Mihaela 2015).
Robust trading during the autumn period and the start of the winter had generated higher profits
than the firm projected. Robust trading performance has given the company’s management
confidence in the medium-term prospects of the retailer. Thus, enhanced inventory managing and
online penetration should assist the business to hold the margin expansion accomplished

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(Schröder, Falk & Schmitt 2015). The company has been making headway in its online channel.
Online sales have been reaching 8% of total sale in the first half profit announcement in March
with a project of up to 9% by August.
Sales of merchandises are recognised at some point of transaction for the company users
and when the produce is released to the users for onsite or online deals. The company’s tangible
resources comprise gear utilised in transactions, office fit-out, relative support events and the
elements that can create revenues. The company intangible asset comprises the software
development, brand license and goodwill for income generation. The company operates a
complete combined retail classical with about 95% of transactions comprising company-branded
merchandises, made to Kathmandu scheme specification, and dispersed to the store system
through the Kathmandu delivery chains: Christchurch and Melbourne. The online sales
increased from 23% up to 6.6% with total revenue of $13 million in 2016. Kathmandu marketing
framework basis has been to have key transactions initiatives in three different timeslots: Easter
days and winter, Christmas and New Year. An approximation of 60% of the revenue is created
in these three periods (Sthapit & Khadka 2016).
The company revenue division is 65% apparel and 35% gear. Most of the company
merchandise is intended in New Zealand and then assigned to numerous producers globally.
About 85% of the company’s products are made from China (Underhill 2016).
An important possession of the company is the summit club where the clients are
membership for a nominal fee, and appreciate promotions and discounts. The summit club is a
creativity that has been enormously fruitful and so far the company creates around two-thirds of
the set sales from the club associates. The summit club catalog of the company is a key basis of

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info aiding customer research and market examination. The record assists the company to better
comprehend its users, their interest, buying designs and communication preferences (Thorson &
Moore 2013).

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References
APP Securities, (2016). Kathmandu to further expand into international market in FY17.
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Farhana, M., 2014. Implication of brand identity facets on marketing communication of lifestyle
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Gibbs R. J. (2012). Principles of Urban Retail Planning and Development, 1st Edition, Wiley
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web-ready.pdf, [Accessed on 17 Oct 2018].

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