Home > Free Essays > Business > Marketing Project > Ralph Lauren & Bose Special Edition: Marketing Plan

Ralph Lauren & Bose Special Edition: Marketing Plan Essay

Exclusively available on IvyPanda Available only on IvyPanda
Updated: Sep 19th, 2020

Marketing Mix Strategy

Marketing Promotional Strategy

The marketing promotional strategy of Ralph Lauren & Bose Special Edition should focus on spreading the worth and importance of the two brands and their products to the targeted consumers. The marketing promotional strategies should be applied by using different promotional techniques.

Budget Allocation and Expected ROI

Total Marketing Budget $200,000 per month
Total Marketing Budget $2,400,000 per year
Marketing Activities
Advertisement – TV 35% 70,000
Digital Marketing 18% 36,000
Internet Marketing 10% 20,000
Print Material 5% 10,000
In-shop Display 2% 4,000
Public Relations 25% 50,000
Free Gift Promotions 5% 10,000
Total Marketing Expense (per month) 100% 200,000
Total Marketing Expense (per year) 2,400,000
Return on Investment
Total Marketing Expense (per year) 2,400,000
Net Income 13,258,007
ROI 552.42%

Marketing Promotional Mix

The marketing promotional mix of Ralph Lauren & Bose Special Edition will include public relation, advertising, traditional marketing, web marketing, and events. Ralph Lauren has to adopt the latest technologies and equipment to endorse its product. The advertising techniques should be based on traditional and digitalized marketing methods to promote the special edition product effectively. Public relations events will be organized to launch the product and to strengthen relationships with the general public.

Advertising

The use of the state-of-the-art technology will be productive for Ralph Lauren & Bose Special Edition products. It is perceptible that the utilization of latest technologies helps in creating a competitive advantage. The latest technologies bring dissimilar parties together to build a strong business relationship. The use of the latest system and equipment will help to achieve the marketing objectives of the proposed business.

Traditional Marketing Technique

The conventional advertising techniques make use of newspapers and magazines. Ralph Lauren will publish editorial shoots of their products to promote their brand. The company will cast celebrities for editorial shoots.

Digital and Online Media

Digital media has been termed as the latest form of advertising that makes use of the latest digital technologies to promote the brand and its products (Ess 77). Ralph Lauren plans to develop digital ads for the electronic media. These ads will feature a well-known celebrity as the brand ambassador of the new products.

Moreover, Ralph Lauren & Bose Special Edition products will be advertised on social media websites. Ralph Lauren already has verified promotional pages on different social media websites. Therefore, it can easily promote its products online and can obtain feedback from its customers as well.

Promotions

Promotion plays a vital role in making a product or a brand more appealing and profitable (Yeshin 47). Ralph Lauren could promote its special edition products by making use of four different promotional strategies.

Sales Promotion

Sales promotion assists in convincing a potential consumer to buy the product. Ralph Lauren will use sales promotion by providing a promotional discount on different occasions to attract and enthrall the targeted customers.

Personal Selling

Ralph Lauren will use personal selling technique to entice its customers to buy the new product. The company will hire well-mannered sales persons who will actively take part in promoting the brand by interacting with customers on a regular basis to inform them about the latest edition.

Direct Marketing

Directly selling products to customers is referred to as direct marketing. Ralph Lauren will have calling agents who will promote the special edition products by making calls to its loyal customers. The company will also prepare printed material for customers to inform them about the new products.

Publicity

Ralph Lauren will publicize its special edition products by making use of the traditional and digital media. The companies will place advertisement billboards to attract customers. The companies will also publicize its brand by advertising its products on electronic and press media (Kennedy 77).

Public Relation

Public relations referred to the planned communication process that establishes and manages beneficial relations between the company and the general public (Smith 22). Ralph Lauren will develop its public relations by holding various social events that will help it to interact with customers and also build close relationships with third parties. Similarly, Ralph Lauren will work on developing public relations as a part of its marketing campaign.

Sponsorships and Events

Ralph Lauren must understand the importance of making the promotional campaign stronger and appealing. It would need to find supportive sponsors for this purpose. Sponsorships help a company to attain the marketing objectives as they provide the needed marketing support (Cornwell 101).

Ralph Lauren is a well-reputed brand. Therefore, it will not be an issue for the company to find sponsorships for its products. It can select the best company to sponsor its product’s promotional campaign.

Similarly, organizing events for brand promotion plays a vital role in making customers excited about the upcoming product. Ralph Lauren will organize different events at public places such as shopping malls to promote its products. It will also organize different private events to display its special edition products. Ralph Lauren will invite different celebrities to these events. They will also invite the press media to cover these events and the company’s new products.

Networking

Networking refers to the marketing technique that will require Ralph Lauren to appoint independent agents to sell and promote its products in different regions. It will also employ online marketing agents and bloggers to promote their special edition products. Ralph Lauren will use social media websites to promote its products and form a network of marketers.

Marketing Promotional Calendar

Date Marketing Event Task Description
1stDecember 2017 The special edition product will be launched in an event. A special event will be organized to launch the new products.
3rdJanuary 2018 Public promotional shows will be held at different shopping malls. The products will be showcased at different shopping malls to attract the general public.
6thJune 2018 An online promotional show will be launched. The company will make use of online promotional shows to attract online users.
18thOctober 2018 The direct and personal selling campaign will be launched. The company will appoint selling agents to promote the brand.

Advertising and Promotional Draft

Ralph Lauren will have an effective marketing plan to promote its products. It will start its promotional campaign by organizing high-profile fashion events in different cities to attract customers. The company must strengthen its public relations by initiating a promotional program targeting the general public. The companies will draft print and digital advertisements for promoting their products.

Advertisement Draft

Possible Advertisement Example.
Figure 1. Possible Advertisement Example.

Experience the world between your ears

Ralph – Bose® Headphones

Public Relation Event

Public Relations Event.
Figure 2. Public Relations Event.

Service Strategy

The customers are always searching for a brand that offers valuable services (Gibson 121). For this reason, Ralph Lauren will fulfill the customer requirements by ensuring that their after-sales service is highly supportive. Ralph Lauren will ensure that its service pricing and promotion strategies are effective to achieve customer satisfaction.

The customer analysis has acknowledged the following requirements for effective service strategies

  • Ralph Lauren and Bose should offer helpful after-sales service.
  • Ralph Lauren and Bose should increase the efficiency of their services.

Financial Plan

The financial plan includes cost analysis, sales budgets, income statement, contribution margin, and break-even analysis.

Cost Analysis

Table 2 indicates the number of units to be produced to meet the marketing objective related to sales of each product category. The marketing objective is to achieve sales of 120,000 units in the first year. The cost analysis is based on the competitor’s costing of its product (i.e. Beats Headphones) (Einstein). The table provides details of all components that will be used for manufacturing earphones, headphones, and speakers. The figures are adjusted for Ralph-Bose.

Table 2. Estimate of Cost. Source: (Einstein).

Ralph Lauren & Bose Special Edition headphone
Per Unit Retail price of product:
$699, $599, and $399
Total Monthly Units Produced: 120,000/12 = 10,000
Direct Labor
Engineering Staff $45,000
Designer Staff $30,000
Machine Staff $10,000
Direct Labor Expenses $75,000
Direct Materials
Per Unit Quantity Per Unit
Form Ear-pad $0.07 2 $1,400
Ear-pad Holders $0.10 2 $2,000
Speaker Grill $0.18 2 $3,600
Ear-cup Shell $0.05 2 $1,000
Brand Sticker $0.02 2 $400
Headband – Outer $0.18 1 $1,800
Headband – Inner $0.10 2 $2,000
Headband – Cushion $0.15 4 $6,000
Outer Plastics $0.25 4 $10,000
Inner Plastics $0.15 2 $3,000
Stamped Metal $0.40 2 $8,000
Springs $0.09 2 $1,800
Screws $0.10 2 $2,000
Support Metal $1.80 2 $36,000
Stereo Jack $0.11 1 $1,100
Headphone Jack $0.16 1 $1,600
Wire $0.08 1 $800
Speaker $1.20 2 $24,000
Cable $1.15 1 $11,500
Soft Case $0.70 1 $7,000
Manual $0.50 1 $5,000
Hard Box $1.00 1 $10,000
Direct Materials Expenses $140,000
Manufacturing Overhead
Delivery Truck Lease $12,000
Utilities $3,500
Insurance $1,500
Manufacturing Overhead Expenses $17,000
Period Costs
Administrative Utilities $2,000
Admin customer service telephone $2,500
Shipping costs $35,000
Administrative Salaries $30,000
Marketing $200,000
Period Costs Expenses $286,500
TOTAL OPERATING EXPENSES $518,500
VARIABLE COST PER UNIT $21.50

Table 2 Indicates that the total operating expenses of manufacturing and selling Ralph-Bose products will be $518,500. The variable cost per unit is estimated to be $21.50. The low variable cost implies that the product will have a high contribution margin.

Sales Budget – Monthly

Table 3 indicates the monthly sales budget for Year 1. The distribution of sales per month is based on the marketing objective. It is expected that 50,000 units, 40,000 units, and 30,000 units of earphones, headphones, and speakers respectively will be sold in Year 1 through Ralph’s flagship stores and its online website. It could also be noted that the highest proportion of monthly sales will be of earphones.

Table 3. Sales Budget – Monthly.

Retail Price Sales Proportion Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
Monthly Sales 10,000 10,000 10,000 10,000 10,000 10,000
Headphones 699 33% 3,333 3,333 3,333 3,333 3,333 3,333
Speakers 599 25% 2,500 2,500 2,500 2,500 2,500 2,500
Earphones 399 42% 4,167 4,167 4,167 4,167 4,167 4,167
Sales Revenue 100% 5,489,990 5,489,990 5,489,990 5,489,990 5,489,990 5,489,990
Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Total
Monthly Sales 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Headphones 3,333 3,333 3,333 3,333 3,333 3,333 40,000
Speakers 2,500 2,500 2,500 2,500 2,500 2,500 30,000
Earphones 4,167 4,167 4,167 4,167 4,167 4,167 50,000
Sales Revenue 5,489,990 5,489,990 5,489,990 5,489,990 5,489,990 5,489,990 65,879,880

Sales Budget – Yearly

Table 4 indicates that yearly sales of the new business are based on the growth rate estimation, which is discussed in the growth plan. The business can expect increasing sales in the next two years as the market conditions are favorable and the demand for music accessories is also likely to increase in the next few years that will support the business to achieve its marketing objectives.

Table 4. Sales Budget – Yearly.

Year 1 Year 2 Year 3
Sales (Units) 120,000 132,000 147,840
Sales Revenue 65,879,880 72,467,868 81,164,012

Income Statement

Table 5 provides the income statement of the business for Year 1. The effective tax rate of Ralph Lauren is 33.87% (Ralph Lauren’s Effective Tax Rate by Quarter), which is used for calculating the tax payable amount. It could be noted that the proposed business is expected to have a high-profit margin. The budgeted income statement is prepared on the basis of the analysis of the company’s competitor that is currently selling its products at a high-profit margin.

Table 5. Income Statement – First year.

Income Statement
Ralph Lauren & Bose Special Edition Headphone
For the period ending Year 1
$
Sales Revenue 65,879,880
Less:
Direct Material Expenses 1,680,000
Direct Labor Expenses 900,000
Manufacturing Overhead 204,000
Selling and Administrative Expenses 3,438,000
Earnings before Interest and Tax 59,657,880
Tax 20,206,124
Earnings After Tax 39,451,756

Contribution Margin and Break-Even Level

Table 6 calculates the contribution margin of the new products. The contribution margin is very high because of low variable costs. The contribution margin per unit is calculated by dividing the total contribution margin by the number of units that are expected to be sold in Year 1.

Table 6. Contribution Margin and Break-Even Level.

Year 1
Sales Revenue 65,879,880
Less: Variable Costs
Direct Labor 900,000
Direct Materials Expenses 1,680,000
Contribution Margin 63,299,880
CM per Unit 527
Break-Even Level
Fixed Costs 3,642,000
CM per Unit 527
Break-Even Level 6,904

The break-even analysis provided in Table 6 indicates that the company will have to sell 6,904 units to break even. The break-even level is very low, and it could be indicated that the proposed business is likely to be highly profitable.

Measurement and Evaluation

The financial plan indicates that the company’s marketing objectives will be achieved in Year 1. The company needs to ensure that the marketing strategy assists the company to generate greater demand for its products. The growth in the company’s sales is predicted on the basis of the current market conditions and forecasts. The demand for music accessories is likely to grow in the future as customers are increasingly using portable music devices.

Risk Analysis and Growth Plan

There are various risks associated with the launch of the new products that are listed in the following.

  • The product may fail to create demand for it in different markets.
  • The product may not satisfy the customers’ needs and requirements.
  • The marketing strategy of the company may become ineffective.
  • The management may fail to predict changes in the market.
  • The company’s costs may increase due to the rising cost of materials.

Based on the risks identified, the sensitivity analysis has been prepared by adjusting the company’s forecasted sales. The pessimistic scenario is created by reducing the company’s sales by 50%. The optimistic scenario considers an increase in the company’s sales by 50%.

Risk Analysis

Table 7. Sensitivity Analysis.

Scenario -50.00% Base 50.00%
$ $ $
Sales Revenue 34,673,962 69,347,923 104,021,885
Less:
Direct Material Expenses 1,680,000 1,680,000 1,680,000
Direct Labor Expenses 900,000 900,000 900,000
Manufacturing Overhead 204,000 204,000 204,000
Selling and Administrative Expenses 3,438,000 3,438,000 3,438,000
Earnings before Interest and Tax 31,235,962 63,125,923 100,583,885
Tax 10,579,620 21,380,750 34,067,762
Earnings After Tax 20,656,341 41,745,173 66,516,123
Net Profit Margin 59.6% 60.2% 63.9%

Table 8 indicates that the growth rate is estimated to be 10% and 12% in Year 2 and Year 3 based on the marketing objective. The aim of the marketing plan is to increase the number of customers every year through effective marketing strategies.

Table 8. Expected Growth Rate.

Growth Rate Year 2 Year 3
10% 12%

Long-term Strategy

The proposed business is expected to have a high net profit margin. It will generate positive cash flows for the company that could be reinvested in the business development and product development. The strategy will ensure that the business continues to remain profitable and customers continue to demand its products.

Works Cited

Cornwell, T. Bettina. Sponsorship in Marketing: Effective Communication through Sports, Arts and Events, London: Taylor & Francis Publiishers, 2014. Print.

Einstein, Ben. The Huffington Post, Web.

Ess, Charles. Digital Media Ethics, New York: John Wiley & Sons, 2013. Print.

Gibson, Pattie. The World of Customer Service. Mason: Cengage Learning, 2013. Print.

Kennedy, Dan. No B.S. Direct Marketing, New York: Entrepreneur Press, 2013. Print.

CSI Market , 2016, Web.

Smith, Ronald D. Strategic Planning for Public Relations. New York: Routledge Publishers, 2013. Print.

Yeshin, Tony. Sales Promotionm New York: Cengage Learning, 2005. Print.

This essay on Ralph Lauren & Bose Special Edition: Marketing Plan was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request
If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda.
Request the removal

Need a custom Essay sample written from scratch by
professional specifically for you?

801 certified writers online

Cite This paper
Select a referencing style:

Reference

IvyPanda. (2020, September 19). Ralph Lauren & Bose Special Edition: Marketing Plan. https://ivypanda.com/essays/ralph-lauren-amp-bose-special-edition-marketing-plan/

Reference

IvyPanda. (2020, September 19). Ralph Lauren & Bose Special Edition: Marketing Plan. Retrieved from https://ivypanda.com/essays/ralph-lauren-amp-bose-special-edition-marketing-plan/

Work Cited

"Ralph Lauren & Bose Special Edition: Marketing Plan." IvyPanda, 19 Sept. 2020, ivypanda.com/essays/ralph-lauren-amp-bose-special-edition-marketing-plan/.

1. IvyPanda. "Ralph Lauren & Bose Special Edition: Marketing Plan." September 19, 2020. https://ivypanda.com/essays/ralph-lauren-amp-bose-special-edition-marketing-plan/.


Bibliography


IvyPanda. "Ralph Lauren & Bose Special Edition: Marketing Plan." September 19, 2020. https://ivypanda.com/essays/ralph-lauren-amp-bose-special-edition-marketing-plan/.

References

IvyPanda. 2020. "Ralph Lauren & Bose Special Edition: Marketing Plan." September 19, 2020. https://ivypanda.com/essays/ralph-lauren-amp-bose-special-edition-marketing-plan/.

References

IvyPanda. (2020) 'Ralph Lauren & Bose Special Edition: Marketing Plan'. 19 September.

Powered by CiteTotal, online essay referencing tool
More related papers