CX664801 Market Planning and Control: Excelsior Clothing Report

This report provides a comprehensive analysis of Excelsior Clothing's market planning and control strategies. It begins with an introduction to the company, which focuses on retail operations and its expansion into online operations. The report then delves into target market analysis, identifying the customer segment and the importance of understanding fashion trends in the New Zealand market. It explores product strategy and brand positioning, including product selection, pricing, and promotional activities. The report further examines the product life cycle, financial plans, distribution strategy, and promotional strategies for the business, including the schedule for the marketing plan and monitoring strategies. The marketing plan focuses on targeting teenagers with stylish brands and also considering the demographic and geographic factors for product development. The report also includes the marketing mix, including the product, price, place, and promotion strategies. It also discusses the product life cycle and financial plans, distribution strategy, and promotional strategy for the business.

Running head: MARKET PLANNING AND CONTROL
Market Planning and Control
Name of the Student:
Name of the University:
Author’s Note

1
MARKET PLANNING AND CONTROL
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Target Market Analysis...............................................................................................................2
Product Strategy and Brand Positioning......................................................................................5
Product.............................................................................................................................................6
Price.................................................................................................................................................6
Place.................................................................................................................................................7
Brand Promotion..............................................................................................................................7
Product Life Cycle...........................................................................................................................7
Financial Plan..............................................................................................................................8
Distribution Strategy..................................................................................................................10
Promotional Strategy for the Business......................................................................................10
Schedule for Marketing Plan.....................................................................................................10
Monitoring the Strategies..........................................................................................................11
Reference.......................................................................................................................................12

2
MARKET PLANNING AND CONTROL
Introduction
The main purpose of the assessment is to analyse the business of Excelsior Clothing
which is a company based in New Zealand. The company provides latest fashion-based clothes
and the focus of the company is on retail operations so that the business is able to generate more
revenues from the operations. The business is looking to expand its range by entering online
operations domain which would enable the business to reach out to more customers. The
discussion would be covering the target market for the company and strategies which can be
applied for making the business more effective in the operations of the business. The strategies
which would be formulated by the business would be focusing on promoting the product and
also for the purpose of setting the prices of the products of the business. The assessment would
also be identifying the trends of clothing industry existing in New Zealand.
Discussion
Target Market Analysis
The target market refers to the customer segment on which the business would be
focusing to make the maximum of the sales of the business. It is also to be noted that the needs
of target market are the criteria on the basis of which the produces (Molloy & Larner, 2013). The
management of Excelsior Clothing is engaged in providing appropriate quality of clothes to the
customers and therefore targeting strategies is important so that the business is able to identify
the fashion trends and on the basis of which decision regarding the product which is to be offered
is made. The business would be required to identify the trends in the current market and thereby
decide which strategies are to be implemented so that the business is able to derive the maximum
benefits associated with the same.

3
MARKET PLANNING AND CONTROL
The demand for good quality clothes is on the rise in the market of New Zealand which is
possible even though the business is facing tough competitions in terms of clothing industry. It is
also to be noted that most of the existing businesses in the industry is trying to follow price-
based strategies so that the management is able to attract the customers as per the targets which
is set by the management of the company (Fabling & Sanderson, 2014). The market trends also
reveal that the online sales for the clothes is continuously on the rise. The management of
Excelsior Clothing needs to use the online medium for making more sales and enhancing the
revenue of the business. It is anticipated that more and more customers would be browsing
online sale site for the purpose of shopping which would be effectively contributing to the
revenue of the business (Dos Santos, Svensson & Padin, 2013). Therefore, it can be said that
there is an opportunity for the business of Excelsior Clothing to enhance the sales of the business
and thereby generate more revenue from operations of the business. The strategies which are
formulated by the management of the company needs to be appropriate.
The management of Excelsior Clothing aims to target teenagers with their stylish brands
of Jackets Trousers, T-shirts and other types of dressing items. The company also intends to keep
some item of clothing for everyone so that the business is able to generate maximum sales from
operations and thereby also increase the brand name for the products which is offered by the
business. The business of Excelsior Clothing would also be paying attention to current marketing
trends so that appropriate clothes are made for meeting the demands of the customers. The
fashion and trends are important aspect which needs to be considered while making the product.
The product would be prepared on the basis of demographic as well as Geographic factors. The
demographic factors which needs to be considered are the gender, age and income level of the
people who will be targeted. The business of Excelsior Clothing will be making men’s outfits

4
MARKET PLANNING AND CONTROL
more such as Shirts, Jackets, trousers and other accessories. The business would also be targeting
the age group of 14 years to 50 years people and in this case, the business would be covering a
wide range of clothes which would provide the management appropriate range to generate more
revenues. It is also to be noted that the management of the company would also be considering
the target market on the basis of the income groups so that appropriate prices can be set for the
products which is offered by the business. The targeting for the customer segment would also be
done on the basis of the Geographical features such as the location of the business. The business
of Excelsior Clothing would be operating from Auckland and therefore it would be targeting the
local customers (Hinton & Hamilton, 2013). The business would also be looking to establish the
operational store in a region where it has access to most of the population in the area so that
maximum customers can be attracted to the products. In this manner, the management of the
company intends to target the customers of the business, so that the revenue and profits can be
enhanced.
The business also needs to market the product properly so that appropriate demand is
created in the market for the product while at the same time managing the competitive pressure
in the market. The business intends to follow a proper marketing campaign which would be
involving advertisement and promotions so that the product is well known in the market. The
focus of the management of the company would be on advertisement and promotion and would
be using all media of advertisement so that the people are aware of the product which is being
offered (Casey & Hamilton, 2014). The business has opted for online operations as well which is
the current trend in the market of New Zealand and it is expected that the same would be
generate results for the business. The target market strategy would be focusing on identification

5
MARKET PLANNING AND CONTROL
of the market segment which will be targeted and what strategies will be applied by the business
for promotion and advertisement.
Product Strategy and Brand Positioning
Marketing is defined as the process where all forms of activity constitute to putting the
right product in the right price and at the right time. Usually it is termed as one of the easies task,
however, this is one of the most complicated and complex process, which requires lot of research
and hard work. Therefore, while putting forward the marketing plan of Excelsior clothing for
their online collection they had to research a lot and had to identify which types of clothing they
are going to start for their new ventures (Mokhtar, 2013). They have started their business on the
retails, apart from his they wanted to expand their business, and hence they are looking forward
to the online business. The online business is nowadays the trend but Excelsior also wanted to
have maintain a bit differences between their clothing options available to the retailers and now,
when they are thinking of having an online venture. They do not want to offend their retail
customers and this is a reason for their customization. Therefore, they have decided to come up
with the clothing apparels, which is basically the specialist apparel that is used for the purpose of
trekking, different kinds of travel clothing and other outdoor clothing (Vyshnevska,2019).
It has to be noted that in order to carve out the marketing plan it is required to carve out
the marketing mix, which ultimately helps in meeting the requirements of the objectives as well
as the goals of the company. Usually four P’s are the determinant of the marketing mix namely,
product, price, place, promotion (Sadiku-Dushi, Dana, & Ramadani,2019). Digitization has led
to the transformation of the current standards into usage of new method, it is applicable to any
kind of industry, and marketing is surely not an exception. It has to be noted that marketing has

6
MARKET PLANNING AND CONTROL
been one such industry, which was immensely benefitted by the digitization. Therefore, the four
P’s that has been utilized by the Excelsior clothing includes-
Product
The products that Excelsior clothing has selected are the specialist apparel used for
trekking, extreme outdoor clothing and travel clothing. They had done research and have
concluded to bring these special apparels for their online expansion. As they already dealing with
jackets, jumpers, cardigans, jerseys and other knit wear from the usage of merino wools and
merino possum fur blend, which is generally termed to have competition with cashmere and
alpaca products that already exist in the market.( Kemper & Ballantine,2019)
While researching for product lines for their own offerings, they have come to the
conclusion that there are around more than 400000 people per year coming to the New Zealand,
who engage themselves in the trekking and other activities which requires outdoor clothing,
which they usually do not carry ( Bethel,2019). Therefore, the company is developing a range of
a New Zealand merino fiber-based clothing, which will be technically not only suitable to alpine
adventure clothing but also appropriate as fashionable wear when people are not engaged in
adventure activities. The product range includes both thermal under garments and outer
garments, which can be layered depending on environment and conditions.
Price
The price of the product is negotiable and since it will be based on online delivery,
therefore the price will have a breakdown of 50% during the confirmation of the product and
since it will take around three months to deliver the product. Therefore, the remaining money
will spread over the three months of delivery (Paton et al., 2014). The company to earn a profit

7
MARKET PLANNING AND CONTROL
of at least 25% on sales after the base price and cost of sales are deducted. Therefore, on that
estimation the price is going to get decided.
Place
Usually they are going to target those places from where maximum visitors came up for
trekking and outdoor in the New Zealand’s walking tracks. Many of these visitors arrive in this
country without the necessary clothing that is required to be safe in the outdoors and particularly
the alpine outdoors, and thus represent a market for online selling. This is partially because they
research and book online their New Zealand travels but have little idea about the clothing that is
suitable for the conditions.
Brand Promotion
Excelsior clothing are planning to establish their brand among their competitors, who are
already selling the travel and adventure clothes, by trying to maintain the balance between the
quality as well as the looks. The apparels will be design in a way so that they look fashionable,
when the concerned people are not indulging in adventure activities. The apparels will be made
under contract in the countries of China, Malaysia and The Philippines along with the corporate
apparels that will be made in Fiji. New Zealand will source the merino wool of high quality. The
above planning has been done so that the Excelsior can be distinguished in front of the existing
brands that are selling the same stuffs in New Zealand.
Product Life Cycle
The product life cycle generally comprises the introduction of the product in the market,
which is shifted towards growing stages and maturity stages and may end up in the decline stages
where the substitutes take up the market and there are no more future left for the product.

8
MARKET PLANNING AND CONTROL
Here, the product is just going to get started and will be available in the e-market mode.
The product life cycle starts when Excelsior clothing thought of bringing in notice the new
outdoor clothing and apparels for the purpose of trek, with the twist of designing it in a way
which will be fashionable and can be used in the rough terrain even if they are not indulge in the
adventure activities (De Vries et al,2019). Therefore, there has been demand of this product
because lot of people came up for the adventure walks and extreme outdoor tourism activities,
where they do not have an idea of the type of clothing required in the rough terrain. Hence, this
product, which has a different look due to its fashionable presence have made a way in the
consumer hearts. The product thus can be safely termed as in the growing phrase and it can be
estimated that the demands and the rise of the sales are expected and the future of this online
investment is bright.
Financial Plan
The business of Excelsior clothing would also be formulating a financial plan which
would help the management of the company to make decisions on the basis of the estimates
which is available for a period of 6 months. The business would be mainly selling three kinds of
products which are Thermal under garments, light tops and heavy tops. The product would be
sold on the basis of demand in the market and considering the last year sales of the business. The
financial plan for the business would also be reveal the estimates of the number of units which is
considered by the business for the purpose of analysis. The number of Thermal under garments
which is anticipated to be sold is 1200 units and in case of light tops and heavy tops the number
of units which is estimated by the management is represented to be 1500 units and 1800 units
during the 6 months period which is considered.

9
MARKET PLANNING AND CONTROL
(4) PROFIT AND LOSS FORECAST & ROI
Preop
Year 0 1
Revenue 0 735,000
Cost of sales 0 339,000
Gross profit 0 396,000
Gross Margin 54%
Expenses/overheads
Fixed Costs 300,000
Total expenses/overheads 300,000
Profit before tax 96,000
Tax @ 19% 18,240
Before tax net margin 13%
Profit after tax 77,760
Transfer to reserves 77,760
Particulars Year 1
Return on Investment 52%
The table above represents the costs and revenue which can be anticipated from the
operations of the business. The management of the company in total anticipates that the fixed
costs for the business would be $ 300,000 during the period of 6 months. The business also
conducts a breakeven analysis so that the sales figure which needs to be achieved is clearly set in
the targets of the business. The breakeven analysis for the business which is computed is shown
in the table presented below:
Contribution Analysis for 6 months period
Particulars Amt $ Amt $
Revenue $ 735,000.00
Variable Costs $ 339,000.00
Contribution $ 396,000.00

10
MARKET PLANNING AND CONTROL
Contribution margin 53.88%
Fixed costs $ 300,000.00
Breakeven Point (sales) $ 556,818.18
Distribution Strategy
The distribution strat3egy which is formulated by the business would be aiming to ensure
that the product of the business is able to reach out to far and wide customers. The distribution
strategy for the business would be applying both online medium and retail shops for the purpose
of reaching out to more and more customers (Baker, 2014). In addition to this, the management
of the company has also decided to offer special offers such as discounts and guarantee offers so
that the management of the company is able to enhance the sales of the business and thereby
generate more profits from the operations of the business.
Promotional Strategy for the Business
The promotional strategy which is formulated by the business forms an important part of
the marketing strategies of the business. The business would be investing extensively on
advertisement and promotions so that the attention of the customers can be attracted. The
business would be looking to use the television media as well as social media so that the
management is able to maximise the sales and operations of the business (Gummesson, Kuusela
& Närvänen, 2014). The business would also be offering discounts and special weekly offers on
both online and offline medium so that the customers are attracted by such offers and thereby the
business is able to make more sales. The promotional strategy aims to establish a wide coverage
and reach out to as many customers as possible.

11
MARKET PLANNING AND CONTROL
Schedule for Marketing Plan
Marketing Strategy Established date Priority Strengths Weaknesses
Formulation
of Plan
12/12/2019 High The company has focus on
enhancing the revenue of
the business and the
marketing plan would help
in this respect.
The company
would be aiming to
reduce the costs of
operations and also
for marketing plan
Advertisement
and
Promotions
18/12/2019 Small The company experiences
a cost advantage in the
operations of the business
and more customers are
likely to get attracted in
such a case
The weakness of
the business is
high costs which
the business needs
to incur.
Monitoring the Strategies
The strategies and procedures which are followed or implemented needs to be followed
in an appropriate manner so that a level of efficiency is maintained in the operations of the
business. The strategies of the business need to be review and improvements needs to be made in
the marketing plan where ever it is possible to bring about more improvements. This would
ensure that the business is in the right tracks towards achieving the goals and objectives of the
business.

12
MARKET PLANNING AND CONTROL
Reference
Aghdaie, M. H., & Alimardani, M. (2015). Target market selection based on market segment
evaluation: a multiple attribute decision making approach. International Journal of
Operational Research, 24(3), 262-278.
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education.
Bethel, C. J. (2019). Active Activism: Leveraging Social Responsibility in Athletic
Brands (Doctoral dissertation, University of Oregon).
Casey, S. R., & Hamilton, R. T. (2014). Export performance of small firms from small countries:
The case of New Zealand. Journal of International Entrepreneurship, 12(3), 254-269.

13
MARKET PLANNING AND CONTROL
Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing
Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
De Vries, E. L., & Fennis, B. M. (2019). Go local or go global: how local brands promote buying
impulsivity. International Marketing Review.
Dos Santos, M. A., Svensson, G., & Padin, C. (2013). Indicators of sustainable business
practices: Woolworths in South Africa. Supply Chain Management: An International
Journal, 18(1), 104-108.
Fabling, R., & Sanderson, L. (2014). Productivity distributions in New Zealand: The dangers of
international comparison.
Gilani, S. R. M., Kazemi, M., Asadi, H., Samadzadeh, G. R., & Atashpanjeh, A. R. (2014).
Market segmentation of sport tourism in Iran for foreign tourists regarding culture and
modeling of target market. Asian Journal of Research in Marketing, 3(6), 192-200.
Gummesson, E., Kuusela, H., & Närvänen, E. (2014). Reinventing marketing strategy by
recasting supplier/customer roles. Journal of Service Management, 25(2), 228-240.
Hinton, M., & Hamilton, R. T. (2013). Characterizing high-growth firms in New Zealand. The
International Journal of Entrepreneurship and Innovation, 14(1), 39-48.
Kemper, J. A., & Ballantine, P. W. (2019). What do we mean by sustainability
marketing?. Journal of Marketing Management, 35(3-4), 277-309
Mokhtar, N. F. (2013). Choice of business aims and strategies by small business enterprises in
developing countries. International Journal of Business and Social Science, 4(9).
Molloy, M., & Larner, W. (2013). Fashioning globalisation: New Zealand design, working
women and the cultural economy. John Wiley & Sons.

14
MARKET PLANNING AND CONTROL
New Zealand designers carve out niche to take on fast fashion. (2019). Stuff. Retrieved 2
December 2019, from https://www.stuff.co.nz/business/91533767/new-zealand-
designers-carve-out-niche-to-take-on-fast-fashion
New Zealand: The Land of Rising Opportunities | Apparel Resources. (2019). Apparel
Resources. Retrieved 2 December 2019, from https://apparelresources.com/business-
news/sourcing/new-zealand-land-of-opportunities/
Paton, D., Johnston, D., Mamula-Seadon, L., & Kenney, C. M. (2014). Recovery and
development: perspectives from New Zealand and Australia. In Disaster and
development (pp. 255-272). Springer, Cham.
Sadiku-Dushi, N., Dana, L. P., & Ramadani, V. (2019). Entrepreneurial marketing dimensions
and SMEs performance. Journal of Business Research, 100, 86-99.
Vyshnevska, M. INNOVATIONS AND DIGITAL MARKETING: CURRENT TRENDS OF
DEVELOPMENT. EVROPSKÝ ČASOPIS EKONOMIKY, 21.