Baighlen & Co. GridIron Hoods

Yajing Zhu, Wanting Liu, Jingtao Ji, Wan Xu

Apr.28 2009

Contents

Strategic Market Plan

Target Segment and Value Proposition

Market Mix (4P)

Financial Performance Statement

Strategic Market Plan

“Invest to Grow” : Grow market share

Market Share Potential Product Awareness Product Preference Purchase Intention Product Availability Purchase Rate

Target Segment and Value Proposition

Target Segment

MSU students who needs well designed hoods with high quality

Express passion and MSU pride

Target Segment

Demographic: 22760, 86%, 20

Needs: passion, MSU pride

Purchase Behavior: once, 1 or 2, WOM

Value Proposition

Built up emotional connection

Focus on high quality and unique design

MSU relevant events

Marketing Mix-Brand

Promotion

Brand

Price

Place

Market Mix Analysis

Brand Pyramid

1 Basic Characteristics

2 Benefits

3 Psychological or Emotional Rewards

4 Core Values

5 Brand’s Personality

• Website• On-line customer service• Washing instruction

Training

Sports Events

Passion and Confidence

Self-expression Model

Communication Objective

Brand with message

Emphasize the emotional connection

Provide more information

E-MARKPLAN

$2000 = 1.04 million brand impressions

Provide more product information to target customers

Let customers be our marketers (WOME)

Facebook Gift Shop

Gift shop campaign

“Choose you Favorite” and “My Design”

E-coupon (collect WOME data)

“Baighlen & Co”.

“Baighlen & Co.”

“Baighlen & Co.”

Keywords

Google keyword tools

Balance relevant and search frequency

Example: msu store: 4400 / msu shop: 590

Recommendation keywords:

Msu store, msu shirt, msu hap, msu gear

Price

Customer value perceptions

Competitor’s price

Place

Existing channels 5 local retailers and 5 online

stores

Analyze customer value through 5 aspects:

Products Benefits Service Benefits Image Benefits Consumer Price Cost Non-price Cost

Product Benefits Product quality, assortment and form No difference

Service Benefits After-sale services, availability and delivery, and transaction

services Local retailers do better in three perspectives: Payment,

Shipping time, Additional fees

5 Local Stores Return Policies

Spartan Bookstore

Return as soon as possible with receipt

Including clearances

Student Bookstore ( Same above )

Ned’s Bookstore Return in 2 weeks with receipt

Excluding clearances

College Store ( Same Above )

Matthews STAT Medical Bookstore

( Same Above)

Place 5 Online Stores Service Benefits

MSU Intercollegiate Athletics

3-day shipping for any size order at $4.99

90-Day Money Back Guarantee

Big Ten Conference ( Same above)

MSU Bookstore

check and money orders use

pick up your online order at the stores

MSU Campus pick up your online order at the stores

MSU Forest Akers Golf Course No special feature

Place Image Benefits

Local stores are same Online stores are different

5 Online Stores Image Benefits

MSU Intercollegiate Athletics

Spartan Sports Spirit

Game news

Ticket Information

Big Ten Conference Spartan Spirit

MSU Bookstore Spartan Spirit

MSU Campus Spartan Spirit

MSU Forest Akers Golf Course Golf focus

Place Consumer Price: Local retailers do better

Product price is same Shipping fees and tax E-coupon for in-store

Consumer Non-price Cost Acquisition cost Ownership cost Ownership, maintenance, disposal costs are same

We recommend the 5 local retailer and 1 online store

Store Name Unit Percentage

Spartan Bookstore 30%

Student Bookstore 30%

The College Store 10%

Matthews STAT Medical Bookstore 10%

Ned’s Bookstore 10%

MSU Intercollegiate Athletics 10%

Financial Statement PerformanceGridIron Brands’ Forecasted Performance

2009 2010 2011

Unit volume sold (sweatshirts, t-shirts, hats)

500/500/100 625/625/125 782/782/156

Average retail price 50/16.99/12.99 50/16.99/12.99 50/16.99/12.99

Average selling price 25/8.495/6.495 25/8.495/6.495 25/8.495/6.495

Channel discount 10% 10% 10%

Net selling price 22.5/7.6455/5.8455 22.5/7.6455/5.8455 22.5/7.6455/5.8455

Sales revenue 31314 39142.5 48928.1

Percent margin 25% 25% 25%

Gross profit 7828.5 9785.6 12232.0

Marketing expenses 4000 4000 4000

Net Marketing Contribution 3828.5 5785.6 8232.0

Profitability MetricsMarketing Return on Sales

12.2% 14.8% 16.8%

Marketing Return on Investment 95.7% 144.6% 205.8%

Any Questions ?Thanks !