New Jean Company Marketing Plan.

I. Business Analysis

Current Situation. Sacred Brand Jeans (SBJ) is a premium lifestyle brand that offers every woman the freedom to feel sexy, stylish, and edgy. We believe in the notion that every woman regardless of size deserves to dress like a diva. The SBJ collection is cut from the highest quality fabrics and tailored with perfected cuts to fit all the curves of a woman. Never before has there been an upscale premium lifestyle brand of denim that caters to such a wide variety of consumer in one market. SBJ is designed to fit not just one kind of woman, but every woman.

Market research indicated that an estimated $14.6 billion dollars was spent on jeans last year and the jeans market saw a 14% increase in growth. The recent increases correlate to the influence of the premium segment, product innovation, and consumer demand. According to research women between the ages 18-35 spend more than $100 on jeans. The most intriguing research indicates that the plus-size clothing market is the most under-served market in the fashion industry. While women’s plus-size apparel market comprises nearly 30% of all women’s apparel sales, supply is still not on track to keep up with demand. Perhaps the biggest issue within the plus-size market is the lack of accurate sizes and style. With the average size of American women being between sizes 12-14, sacred brand jeans is ready to supply the demand of this ignored segment.

SBJ has captured good information regarding our target markets and know a great deal about the common attributes of our most prized customers. SBJ will leverage this information to better understand who should be served, their specific needs, and how SBJ can better communicate with them.

Purpose. SBJ prides itself as a lifestyle brand that appeals to women. The purpose of the business analysis is to identify strengths, opportunities, and profitability of SBJ.

Marketing Mix - See Appendix A. Comparison is made with three jean companies: Sacred Brand Jeans, True Religion, and 7 Jeans for All Mankind. SBJ will leverage this information to better understand the consumers, their specific needs and how the company can better communicate with them. The marketing mix of SBJ is comparable with its competitors. The marketing mix indicates very high similarities with competitors.

S.W.O.T Analysis вЂ" See Appendix B. The SWOT analysis for Sacred Brand Jeans provided information that is helpful in the strategic planning process and in matching the companies resources and capabilities to the competitive environment in which it operates. SBJ strengths will keep them in the running with the competition in the denim sector. The company has a strong relationship with the distributors and excellent staff who are well trained in measuring and sizing customers with jeans. The channels of distribution to carry the line are superior and they offer quality and stylish jeans to the plus-size market that is being ignored by the other brands. Because Sacred is a new brand, SBJ will have to build brand equity. Forecasting fashion trend is difficult but necessary if the company wants to gain profitability. The plus-size sector is one of the most under-served markets in the fashion industry. Sacred will tap into this very strong market and build a relationship with. The fashion industry is forever changing and SBJ has to be prepared for the new and current competitors who builds similar business model.

Value Chain вЂ" See Appendix C. In analyzing the specific company activities, Sacred Brand Jean can create a competitive advantage. The key elements in the value chain are brought by Marketing, Sales and Services. It is through strong marketing communications, promotions mix and after sales services. The company’s products are marketed to our customers primarily through sales promotions, customer events and advertising through national television ads, print, direct mailings, as well as Internet advertising.

Porter’s Five Forces вЂ" See Appendix D. In determining industry attractiveness, a comparison analysis and Porter’s Five Forces was done. SBJ was compared to True Religion and 7 Jeans for All Mankind. The results in all three companies were the same: Bargaining Power of Customer вЂ" High, Bargaining Power of Supplier вЂ" Low, Threats of New Entrants вЂ"High, Threat of Substitute вЂ" High, and the Intensity of Competitive Rivalry вЂ"High. Overall, there is high threat of entry from competitors. SBJ differentiates itself from competitors by the adjustment of market focus that can cause a shift in market segmentation.

Environmental Forces Model вЂ" See Appendix E. Upon evaluation of the environmental forces model, competitors and customers stand out in the task environment, while socio-cultural and economic forces stand out in the general environment. There is a high competitive environment and customers have a high bargaining power. Since SBJ is in the premium jeans market, there is a possibility that the company may not be able to profit if there is an economic downturn. The socio-cultural forces come into play considering fashion is unpredictable.

Financial Analysis вЂ" See Appendix F. SBJ will be launched in Fall 2007. Variable cost per unit includes material cost, labor cost, packaging, shipping cost, and so on. Variable costs are those that change depending upon the amount of product produced and sold. The variable cost for out Basic line is $45.00 and for Premium line is $55.00. Fixed cost remains at given level regardless of the amount of the product produced and sold. Fixed Costs include the campaign ads and promotions.

II. Strategic Marketing Plan

Core Competencies. SBJ designs, develops, markets and sells high quality fashion denim jeans that fit every woman. SBJ emphasize innovation and distinctive product designs that reflects our consumers’ fashion preferences and tastes. The company identifies global fashion trend and interprets them for our consumers.

Vision. To provide creatively designed, distinct, exceptional and quality jeans and other apparel that is made to fit every woman.

Overall Marketing Strategy. SBJ’s overall marketing strategy is to allow the contemporary women the right to express her futuristic side and sensual taste when wearing the Sacred Brand Jeans name. Also, it provides an alluring passionate style while portraying images the consumer can easily relate to.

Positioning and Positioning Concept. “Where style is religion”

3 Year Annual Objectives, Strategies and Tactics вЂ" See