Detailed Five-Year Marketing Plan for AffordMore Clothing Company

This document presents a comprehensive five-year marketing plan for AffordMore Clothing, a new company aiming to sell affordable, high-quality, and fashionable clothing, particularly targeting the student demographic. The plan begins with an executive summary and table of contents, followed by a detailed company description, strategic plan encompassing mission, vision, and organizational goals. It then delves into a thorough situation analysis, including SWOT analysis, industry analysis, company analysis, and customer analysis. The report outlines the product-market focus, specifying marketing objectives, target market identification, and competitive advantages. The core of the plan lies in the marketing program/marketing mix, detailing product, pricing, promotion, and distribution strategies. Financial data and projections are included, along with an implementation plan and a section on evaluation and control. The report concludes with a list of references. The plan's goal is to establish AffordMore as a national and eventually global brand, emphasizing affordability without compromising quality and fashion, and aims to achieve specific market share and profit targets within defined timeframes. The plan emphasizes the importance of understanding the target market and implementing strategies to achieve the company's goals.

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TABLE OF CONTENTS
Executive Summary………………………………………..………..1
Five Year Marketing Plan – AffordMore Clothing……………….....2 – 14
I. Company Description…………………………………....2
II. Strategic Plan…………………………………………….2 – 3
 Mission Statement
 Vision Statement
 Organizational Goals
III. Situation Analysis…………………………………………4 – 7
 SWOT Analysis
 Industry Analysis
 Company Analysis
 Customer Analysis
IV. Product – Market Focus……………………......………..…7 – 8
 Marketing Objectives
 Target Market
 Competitive Advantage and Strategy
 Points of Difference
V. Marketing Program/Marketing Mix……………….………..8 – 11
 Product Strategy
 Pricing Strategy
 Promotion Strategy
 Distribution Strategy
VI. Financial Data and Projections……………………….……....11
VII. Implementation Plan……………………………......………...11 – 12
VIII. Evaluation and Control……………………………………….12 – 13
References……………………………………………………..14 - 16

Executive Summary
A marketing plan is a document which gives an in depth analysis of the overall marketing
strategy of the company for a given period of time. It helps the company in analyzing the efforts
to be undertaken to achieve the goals of the firm in reference to a given time – frame. The
purpose of this essay is to give an outline of the marketing plan of AffordMore Clothing. The
strategic plan has been included which explains the vision, the mission and the organizational
goals of the company. A situation analysis has then been done to understand the strengths,
weaknesses, opportunities and threats faced by AffordMore as well as the industry and customer
analysis has been explained. The marketing objectives, the target market and the competitive
advantage to AffordMore have been given. No marketing plan is complete without the marketing
mix program. This one is not either. The product, pricing, promotion and distribution strategies
have been explained in detail. The five-year projections have been mentioned and how to
evaluate and control these aspects have also been given.
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Five Year Marketing Plan - AffordMore Clothing
A marketing plan is a report which is created for the purpose of developing a marketing strategy
for the next few weeks, months or years (McGuire, 2019). It is basically an outline of the
marketing goals of the organization and a timeline for achieving these goals. A marketing plan
helps to keep the performance on track.
I. Company Description
The company whose five-year marketing plan I intend to describe is a new company the
focus of which is to sell affordable yet high quality and fashionable clothing items. One thing
I have noticed is the lack of apparel stores in the locality catering to the student demographic.
High end clothing stores are more commonly found with items that cannot be afforded by the
student class. This is the reason why as a new business founder, I aim to cater to this demand.
The reason for this name spells out very clearly in the name itself. By spending less, you can
afford to buy more clothes. The purpose of this report is to develop a marketing plan and to
outline how the company plans on launching itself and focusses on the revenue and profits
earned in the next five years.
II. Strategic Plan
A strategic plan is a document in writing that matches the needs of the market with the
objectives of the organization (Scott, n.d.). It helps in determining where the focus of the
company’s management will be. The strategic plan of AffordMore includes the following
aspects:
 Mission Statement
The mission statement of a company can be defined as the fundamental goals or
mission of the company. A mission statement helps to broadly define the current
capabilities of a company (Ward, 2018). The mission statement of AffordMore
Clothing is:
‘Our mission is to give the customers a high quality yet affordable shopping
experience.’
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The reason for choosing this mission statement is to explain what AffordMore does.
Simply put, it provides the customers with clothes that are affordable but at the same
time does not compromise with quality.
 Vision Statement
A vision statement is called as the future picture of the company but it actually
includes much more than that. It can be defined as the framework for the strategic
planning of the company. It helps in defining the hopes for the future of the company
(Ward, 2018). The vision statement of AffordMore Clothing is:
‘To create a global brand that offers affordable, quality and high on fashion clothes’.
The reason for selecting this statement as the vision statement is because it is compact
yet provides enough information about AffordMore Clothing. Firstly, it says that its
aim is not to remain in one place but to go global and serve customers worldwide.
Secondly, affordable – which is the true essence of the brand and mentioned in its
name as well. AffordMore aims to provide quality in every step. Lastly, being
affordable does not mean it has to compromise on fashion.
 Organizational Goals
The goals of an organization should be SMART. SMART stands for specific,
measurable, achievable, realistic and time bound, as based on the concept given by
Doran in 1981 in his paper titled “There’s a S.M.A.R.T. way to write management
goals and objectives.” (Morrison, 2011). The SMART goals of AffordMore Clothing
are:
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Gain Market Share
Pay off Start - Up Loans
Specialization

 Gain 5% of the market share within 1 year: First SMART goal states that
AffordMore aims to gain at least 5% of the total apparel market share in
the locality.
 Pay off start – up loan within 2 years: This SMART goal gives an estimate
period within which the loan taken for initiating AffordMore has to be
paid off.
 Specialize in affordable yet quality products: As the vision and mission
statement of the company states, the SMART goal of AffordMore is to
create a niche for itself in terms of affordable yet quality products.
III. Situation Analysis
It can be defined as the in depth analysis of the factors which affect the business
whether the internal or the external factors (Lake, 2018). It helps to define the
strengths, weaknesses, opportunities, threats, business capabilities, customers and
potential customers, and the business environment of the company. When creating the
marketing plan of AffordMore, it is essential to understand the manner in which the
benefits of their products to the potential customers will be communicated. This is
understood with the help of a situation analysis (Bhasin, 2017). It includes the
following:
 SWOT Analysis
SWOT analysis, stands for Strengths, Weaknesses, Opportunities, and Threats
and is a concept that can be defined as the basic framework used by business
entities to analyze the internal and external environment of the business including
all the factors that might directly or indirectly have an impact on the organization
standing (Rouse, 2013). The SWOT analysis of AffordMore is as under:
Strengths:
(1) The store is located in a busy market area.
(2) The store managers and the salesmen selected have an expertise in their
area.
(3) Quality is a prime concern which is usually not seen in stores where
affordable items are sold.
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Weaknesses
(1) Lack of huge investment and dependent on personal savings and startup
loans from family.
(2) Lack of a proper marketing strategy currently.
(3) Lack of an existing goodwill due to a new business being setup.
Opportunities
(1) Substantial area growth of the locality and residences being set up within
a mile distance.
(2) Target market is feasible due to the growing number working families and
students in the locality.
(3) Expansion opportunity due to the opportunity of selling products through
online websites.
Threats
(1) Competition from existing sellers.
(2) Loss of capital cost due to low prices.
(3) Less profits especially in the founding years.
 Industry Analysis
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Competition.
Lack of profits in
founding years.
Growth of market.
Expansion
opportunity.
Lack of funds.
Lack of Goodwill.
Locality
Expertise
Quality
Strengths Weakness
ThreatsOpportunity

When developing the marketing plan of AffordMore, industry analysis means the
business function to be completed by the owners of the business in order to
understand and assess the current business environment (Vitez, n.d.). There are
various elements to be included in the industry analysis of AffordMore Clothing –
number of competitors either in the local market (those selling similar clothing
items at similar prices), availability of substitutes (whether there are any items
which can take the place of the apparel offered by AffordMore), alternative
sources of purchase of similar products (for instances, online shopping sites
selling low priced similar clothes as AffordMore), etc. Industry Analysis is done
with the help of various tools including Michael Porter’s Five Force Model of
Competition, PEST analysis, etc.
 Company Analysis
The company analysis is the description of the goals, objectives and strengths of
the company (Christ, n.d.). The marketing plan of AffordMore includes the
company analysis. The owner of the company has 21 years of experience in the
retail industry working for Zara and Nike. The company has products which are
of high quality and cost less as compared to its competitors. There are no
middlemen involved which helps to reduce the cost of production and distribution
and also to increase the profit.
 Customer Analysis
The customer analysis is the most critical part of the marketing plan of a
company. It helps to identify the target customers of AffordMore Clothing, the
needs of these target customers and how the company will fulfill these needs in
order to satisfy them (Smith, 2016). The characteristics of the customers of
AffordMore are:
(1) Demographics: The student population residing in the locality between the
ages of 16 – 30.
(2) Background: Those belonging to the financially lower segment of the society
– the main aim of these customers is to buy products valuable and quality at
lower prices.
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(3) Spending habits: Customers are willing to spend the amount that is worth the
value they get in return.
(4) Gender: AffordMore aims at both male and female population.
(5) Need: Quality, affordable yet high on fashion clothing items.
IV. Product – Market Focus
This section describes the five-year product market focus of AffordMore Clothing:
 Marketing objectives
The marketing objective and product objectives of AffordMore Clothing is to
develop a brand from scratch and to establish a national brand within the next five
years. Its focus is to build stores across all major metropolitan cities of the
country and have an estimated profit of at least 12 percent annually. Further, it
aims to develop a global brand within a period of twenty years from the date of
commencement of the business. It aims to spread the brand across the United
States of America, South America, Asia and Europe with a minimum annual
profit rate of 25 percent. After a successful foray into the ladies apparel and
accessories, AffordMore has a wish to enter into the menswear category as well.
 Target Market
A target market is a group of customers at which the product or service is being
aimed at. The marketing efforts and the resources of a company are aimed
keeping a particular segment of the market in mind. Targeting a specific market
does not mean that people who do not fit the criteria are being excluded. Rather, it
allows the marketers to focus the brand message on a particular target (Leboff,
n.d.). Selecting the target market of AffordMore involves first analyzing the
product i.e. in this case it include first determining the quality of the products and
then deciding its price. Next understanding the customer base. AffordMore aims
to sell to students and working class people. It aims to sell to them by
understanding their attitude, values and beliefs.
 Competitive Advantage and Strategy
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It is defined as the ability to stay ahead of the current or the potential competition
in the market. It is that something which helps give an advantage to the business
and helps keep it ahead of the competition. This happens when companies
produce attributes that give them an edge to outperform their competitors
(Garfinkle, 2011). The competitive advantage and strategy of AffordMore:
(1). Differentiation: This means providing something distinctive to the company.
With this, AffordMore automatically assumes the status of being different to its
competitors.
(2). Cost Leadership Strategy: AffordMore places itself at a distinctive strategy by
being a cost leader in the market and providing products at affordable prices.
(3). Operational Effectiveness Strategy: AffordMore aims to differentiate itself on
its operational capabilities and by providing quick service at an affordable price.
 Points of Difference
The points of difference are the features or benefits that help to distinguish the
brand or the product from its competitors (Daye, 2012). It forms an essential item
of the brand positioning strategy of the firm. The points of difference in case of
AffordMore Clothing is that it sells clothing items that are low priced but do not
compromise on the quality. Unlike other low priced apparel store, AffordMore is
right on top of current trends and does not compromise on the fashion aspect of
the retail line.
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Differentiation
Cost Leadership
Operational Effectiveness

V. Marketing Program/Marketing Mix
The marketing program or the marketing mix elements comprises and integrates the
various elements of marketing in such a manner so as to achieve the desired
marketing objectives (Chand, n.d.). The marketing program of AffordMore focusses
on the following strategies:
 Product Strategy
It is the basic backbone of a new product. The product strategy helps in defining
the vision of where the company wants the product to reach (Bhasin, 2018). It
helps in determining the exact steps to be taken towards the competitors and to
ensure the success of a product or brand. The product strategy of AffordMore
Clothing includes the following aspects:
(1) Product line: It is the group of related items all sold under a single brand name
by a single company. The product line of AffordMore includes top wear
(halter tops, t – shirts, formal shirts, crop tops, ethnic and traditional tops,
etc.), lowers (jeans, trousers, jogging bottoms, capris, shorts, skirts, etc.),
winter wear (sweaters, jackets, formal coats, trench coats, shrugs, etc.) and
under garments.
(2) Unique Product Quality: As mentioned in its vision and mission statement,
AffordMore aims at selling products that are high on quality but at the same
time not compromising on the latest trends.
(3) Display and packaging: The products at AffordMore are displayed in clearly
indicated rows and mannequins are being used to display the different types of
clothing items. When the customers buy the product, these are packaged in a
good quality paper carry bag with the details of the store mentioned on it.
 Price Strategy
The pricing strategy means the way a product is priced such that it includes the
cost as well as the profit for the product but not in a manner that leads to unjust
costs aimed at the final consumers. This strategy is perhaps the most important
one for the company. As the name suggests, the company is focused on selling
clothes priced at affordable rates. The pricing strategy that will be used by
AffordMore Clothing is economy pricing. Economy pricing is the practice of
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charging low prices from the customers as a result of the reduced cost of
production. AffordMore counts on the fact that their low price compared to their
competitors’ products will increase the sales (Prestholdt, 2017). The low cost is
covered as a way of increased sales. This type of strategy is useful for
AffordMore because it aims to keep its overheads low. Economy pricing does
extremely well with the particular demographics towards which the brand is
focused at.
 Promotion Strategy
The promotion strategy of a company is the tactic used by the company to drive
its sales (Claudia, 2018). Some of the ways to promote AffordMore Clothing are:
(1) Proper use of all social media platforms including Facebook, Twitter,
Instagram, Pinterest, and YouTube.
(2) Use content marketing to increase the traffic on the social media websites of
AffordMore.
(3) Running referrals for building trust.
(4) Sponsoring events in local colleges and universities.
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Social Media
Marketing
Content
Marketing
Referrals Sponsoring
Events
Coupons and
Discount
Cards