Executive summary
EF9 is a Saudi handbag brand. This marketing plan has been written to propose a first Saudi handbag brand. EF9’s vision is to be the top brand managing the assembling of value female satchels in Saudi Arabia and different pieces of the world. It is high quality brand with the price is affordable. I am lover of handbags, it is wealth , it is mean to me more than handbags, it is describe your personality and attitude. EF9 aims to be the leader in the market in terms of coming up with new handbag designs. The company is an established handbag brand that targets women aged between 20 and 35 years. The handbags are elegant and classy and cost between $500 and $3000, and we aspire to be global and competing the most important international companies.
Introduction
EF9 is a Saudi Arabian company that focuses on making handbags for women. The company produces handbags meant for women aged between 20 and 35 years. EF9’s vision is to be the top company dealing with the manufacture of quality female handbags in Saudi Arabia and other parts of the world. The company wants to provide its clients with classy handbags that help to express their personality to other people. The mission of EF9 is to provide handbags that satisfy the needs of the customers by providing high-quality products and affordable prices. Additionally, the company intends to continue manufacturing and trading in a manner that meets the ethical standards of Saudi Arabian society. Last but not least, EF9 expects to be the pioneer in the market as far as thinking of new satchel plans. The organization is a built up purse brand that objectives ladies matured somewhere in the range of 20 and 35 years. The totes are exquisite and tasteful and cost somewhere in the range of $500 and $3000. An effective marketing plan is essential for EF9 to meet its financial goals and objectives.
Problem Definition
EF9 needs to address different problems that can hinder the success of its products in Saudi Arabia and other countries in the world. Industry and factories, it is hard to found a great industry in Saudi Arabia. Saudi dependent on imports. Other problem associated to industry is convince customers of the national brand. We expected others problem that is widespread in the manufacture of handbags like, we should work on the zipper of its handbags. many customers have complain that applying force to pull the chain results in the generation of a biting failure. This problem will caused some of them to stop using their handbags for quite a while as they look for a place to repair them. Also, the space of the handbags we should focus on suitable size not to be small preventing the women from carrying all their accessories in one bag. It becomes a challenge for the clients because they have to take more than one bag when on a journey. Cracking leather is another problem that is associated with the products of the firm. The peeling of the handbags’ leather finish is another problem that the company must address. This problem will make some clients doubt if the prices of the handbags are justified.
Lastly, finish failure will be another issue that EF9 must address to strengthen its market position and maintain a good reputation. Some of the ways to solve these problems are to change its manufacturing procedures or the supplier of leather.
Situation Analysis
a) Current market
The Saudi Arabian market offers a real growth opportunity for EF9. In 2019, the revenue generated in the handbags and accessories segment of its market amounted to $487 million. Saudi women are known to be great lovers of handbags whenever they go out of the house. The revenue has been estimated to grow at 12.8% per annum for the next four years. Therefore, the market volume, by 2023, is expected to stand at $789 million (Statista 1). User penetration at the moment is 21.8% while the figure is expected to rise to 26.3% by 2023. The average revenue per client at the moment is $65.39. The average revenue shows that the customers will be able to purchase the handbags because it is more than their price.
b) The need for new products
Women like to purchase handbags that are not similar to those worn by their family members or friends. As a result, it is critical for EF9 to offer an alternative to its female clients who want to look different. New products are also essential because it helps the customers to expresses their personalities and lifestyles based on what they purchase.
EF9 handbags will enable the customers to reveal their classy lifestyles and outspoken celebrities. The new handbags will offer an alternative to Saudi women who like to buy bags that are made of leather. These are some of the reasons why new products are essential in the market.
c) Target market
The target market for EF9 handbags is Saudi women aged between 20 and 35 years. These women tend to like classy and elegant bags. Those in their early twenties are attending university and will have to use bags to carry their books and accessories. A majority of them may be having jobs meaning they will have to possess handbags as they commute daily. Women in this age bracket like to go shopping and they prefer to visit the malls with their purses. The target market is seeking singularity, as well as, uniqueness and can afford the price of the handbags.
d) My product
The product is handbags that are designed for women between 20 and 35 years of age. The handbags will come in different designs and colors to meet the needs of the tastes and preferences of different clients. The handbags will be classy and elegant due to its target market.
e) Market analysis
The company will use strategic group mapping to evaluate its position in the market. The tool will also enable EF9 to understand the scope of its competitors. The target customers are Saudi women aged between 20 and 35 years. The handbags will cost between $500 and $3000.
Assumptions of the Potential Market
The Saudi market provides a viable option for EF9 to explore to increase its global market share and to increase its sales revenue. The market has a vast potential in terms of the purchases made by clients in dollars. In 2019, the handbags and accessories segment of the Saudi Arabian market posted revenue of $487 million (Statista 1). Furthermore, the figure is expected to grow to $789 million by 2023. The statistics reveal a lucrative that will result in increased sales volume and profits by EF9. The number of Saudi female clients who are expected to offer the market base for handbag companies is expected to reach 9.6 million by 2023. In 2017, the number of clients between 18 and 24 years and 25 and 34 years made 28% and 40.9% of the market share.
Monthly cost:
$10 per hour x 8 hours (each day) = $80
$80 x 30 = $2400 per month
$2400 x 3 attendants = $7200 per month
Supplier:
EF9 sources its leather from one supplier.
5000 pieces x $5 = $25000 per month
Manufacturing tools:
$5000 x 2 sewing machines = $10000
Mark up price:
$2000 (average price for the handbags) x 50 orders per month = $100000
Final profit:
$100000- ($7200 + $25000 + $10000) = $57800 per month
Marketing Mix
a) Product
The product is handbags made for women aged between 20 and 35 years. The brand name is EF9, and the intention is to provide with a good reputation in the market. The package will enter the market as a classy and elegant product. It will come in different colors and designs based on the demand of the clients. The company will offer a three-month warranty for the handbags where the clients can return them if they find any fault. The warranty will help to increase the trust of the customers on the quality of the handbags.
b) Promotion
The handbags will be promoted as products that bring out the class and elegance of the customers who purchase them. It will be targeted at Saudi women aged between 20 and 35 years of age. The targeted clients are more likely to shift towards quality products being sold at affordable prices. The promotion of the handbags will be run on social media. These media platforms have a large fan base which will be beneficial to EF9. The promotion message will reach a large of potential clients thus translating to increased sales volume and profits.
c) Distribution
EF9 will employ two distribution channels to ensure its handbags reach the customers on time and there are no shortages at any time.
The first distribution channel is the zero level channel also referred to as a direct marketing channel (Agarwal 1). It has no intermediaries trying to act as the connection between the company and the customers. EF9 will open its retail stores in Saudi Arabia to sell its merchandise to the customers.
The other distribution channel will be a one level channel. In this case, the company will distribute its handbags to other retail outlets in Saudi Arabia for them to sell to their clients.
d) Price
The handbags will cost between $500 and $3000 based on several factors. The size, design, and quality will be the factors that will determine the price of the bags. The company has adopted this to ensure it caters for the different categories of its clients. The company will offer discounts to the clients on selected periods of the year to increase its sales volume. Customers who purchase handbags worth $5000 and above will be given an extra bag for free.
e) Place
EF9 will locate its retail stores in major towns and cities in Saudi Arabia Like capital city Riyadh. Also, Jeddah city in west Saudi Arabia and Dammam in East of country. Also, One of the important city on East is Dammam.The company is a Saudi brand, and it intends to venture into the global market. The company will focus on capturing the Saudi market by opening retail outlets in major cities and towns. The move to global markets will focus on capital cities to taste the waters before moving to other cities and towns.
SWOT Analysis
a) Strengths
EF9 is known to produce quality handbags that are sold at affordable prices. As a result, Saudi women will be able to afford them. The company has targeted a section of the market that is highly likely to buy its handbags (Bhasin 1). EF9 targets female customers aged between 20 and 35 years. The group of customers is likely to be employed meaning they can afford to purchase the bags. EF9 has focused on producing women handbags which means they have concentrated on a particular market niche. It will be easy for the firm to concentrate its efforts to capture the target market.
b) Weaknesses
The company produces handbags alone, and this puts it at a risk. The firm may not be able to capture a large share of the Saudi market. It would have been wise for EF9 to offer a variety of products such as apparel, perfumes, and footwear, among others. The absence of new styles may make the products of the business to a vintage feel about them. It may make its style to appear dull and repetitive. EF9 does not have a strong presence on social media platforms which reduces its visibility in the market.