Buaya Marketing Plan

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EXECUTIVE SUMMARY

Owned by B.S Holdings, the BUAYA Brand produces a collection of formal and business apparel for both menswear and

womenswear. With good geographic locations of stores in the heart of city and business districts, the brand has immersed into

hearts of the targeted market group. It has five boutiques in Singapore with the largest flagship store located in Takashimaya. The

brand has also successfully branched into China market.


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Expansion of provision of products and services among the competitors and new entrants in the market had badly affected our

business, noticing a significant drop of 12% in sales based on third quarter of 2009. We believed that the media propaganda of the

recent recession could have played an important part to the decrease in the revenue. Based on analysis of the surveys done by our

loyal customers, we brainstormed and proposed this marketing plan to increase sales and to cease any further declination in sales.

Hence, our aim is to achieve 15% annual increase in sales by re-creating a new look and re-branding Buaya and to launch

sportswear line- BUAYA GREEN. The line will present sportswear for men and women that pairs classic cuts with designs in

new perspective. It aims to bridge the gap between fashionable sports apparel and sportswear fashions.


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With the new pricing, sales, promotions, branding and servicing strategies, we believe that B.S Holdings can embark as one of the

top five leading companies in the fashion empire.

Product Identification, Repeat Sales and New Production was strongly emphasised by Lamb, et al (2004 p 297) as the main

purposes of branding. It will be one of my main objectives in achieving the increment the sales revenue for Buaya.


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SITUATION ANALYSIS

Mr. Buaya Surynato started out as the owner and a fashion designer in 1981 and has since turned into a prominent figure in the

fashion industry. His fashion empire is well represented by the BUAYA brand. These brand collections and fashion lines are

aimed at various target groups. It aims to create a brand world of fashion diversity at a constantly high level of quality.


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BUAYA brand has its roots in the production a collection of sleeve-units and trousers for men since its inception in 1981 and was

well received with instantaneous success, primarily due to the reliability of fabrics and artisanship. Gradually, BUAYA

progressed into the production of womenswear that offered versatile fashion ranges with a rich array of classics in business and

formal wear. Buaya serves to create the perfect look that satisfy the most demanding tastes and accentuate the wearers

personality.

To formulate a new marketing strategy, a SWOT Analysis must be performed. Kolter (2006, p50) states, that the overall

evaluation of a companys strengths, weaknesses, opportunities, and threats is called SWOT analysis. It involves monitoring the


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external and internal marketing environment. As such, it is important to identify the (1) strengths, (2) Weaknesses, (3)

Opportunities and (4) Threats of BUAYA Brand in order to have a clearer understanding of the business positions and accurately

recommend the strategies to reach its aim in increasing the annual sales and launch of new line.

1. Strengths Buaya can build on five important strengths:

Large database of loyal customers Since the beginning of Buaya, customer relationship is strongly emphasised.

Service staffs will always ensure that buyer will have their particulars taken down for future references and for

points reward system. Most of the consumers of Buaya belong to the middle- and upper-income professionals.


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Quality The exquisite craftsmanship and tailoring of the clothing place the brand in the top place of producing

quality clothing in the fashion industry. The reliability and the durability of the material have hence played an

important role in securing the favour of the targeted market group.

Strong marketing experience Marketing and Communications department ensure that the brand has enough

advertisings and promotions to compete with the market.


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PricingOur product is slightly cheaper than market competitors- all of which lack of durability, quality and after

sales service-, which gives us an edge with, price conscious customers.

Strong capitalBuaya, which has been operating for twenty over years, had reported 50 million dollars revenue in

Year 2008 financial report.

2. Weaknesses The marketing department had done a market research by conducting surveys in the boutiques. Kolter

(2006, p95) explained, that marketing research is the systematic design, collection, analysis, and reporting of data and


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findings relevant to a specific marketing situation facing the company. Hence such research was performed by Buaya

and from the analysis of information, we have a few weaknesses:

Designs 80% of the customers have find Buaya designs monotonous and dull. However, good quality was

mentioned, but there is high emphasis in lack of creativity, designs and choice.


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Product Knowledge The results showed that the sales consultants are weak in their product knowledge. They are not

able to able to educate the clients on the products.

Incentive The incentive package or commission is low as compared to the market. This might results in the

unwillingness of service staffs to commit and work towards the monthly sales target

Service Based on the surveys, about 35% commented that the level of service in the boutique was poor and results in

poor customer satisfaction.


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3. OpportunitiesBuaya can take advantage of three major market opportunities:

New Shopping Malls With opening of new shopping malls in the heart of the city, Buaya can open up more stores to

compete with the market and to maximise it market share.

Increasing demands The market for formal apparels is projected to grow faster as there are more business buildings

being built in Singapore. Given Singapores good geographical location, more foreign companies have the foresight

to diversify and invest in Singapore.


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New line With the government emphasis on healthy living and urging Singaporeans to do more exercises, Buaya can

survey the market and look into the possibility of launching a new line of clothing for sportswear.

4. ThreatsWe faced two main threats:

Increased competition In the 1980s and 1990s, we can usually see only apparels mainly from America and United

Kingdom. More companies are entering Singapore but not all competitors have the durability and quality of apparel


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Buaya produces. With more upcoming malls, veteran and new entrants competitors are vying to maximise their

market share. It is seen that most of the competitors are diversifying their products to sell every kind of apparels.

Downward pressure on pricing Increased competition and market-share strategies are pushing the apparel prices

down. Still, we should not be intimidated given the fact that we have better quality than others can offer. We want

the consumers to remember our brand because of our quality and reasonable pricing.

MARKETING STRATEGY


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1. Mission

BUAYA will maintain and attract existing customers by providing them with better service and new range of products.

We aim to target the growing population of working adults market and provide them with more choice of designs and

colours.

2. Objectives

15% increment in sales for the first year

Launching of new sportswear- BUAYA GREEN


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To create a closer bond between customers and service staffs

3. Target Market

Our primary consumer target is middle- to upper-income professionals who need a quality and comfortable apparel. Our

secondary target is college and graduate student who need at least a few formal apparels for functions and presentations.

This segment can be described by age and education.


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Our primary business target is mid- to large-sized corporations that want to look presentable during office hours and

stylish after work. This segment consists of people who have dinner appointments with business associates and functions

to attend after work. They range from 25 to 65, with an annual income of S$30,000 to S$60,000. This market group

usually has a certain level of social status to maintain. Hence Buaya can offer a product the combines quality and the

comfortability, together with better promotion packages and after-sales services.

4. Marketing Mix

Product and Place


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In order to re-capture and attract customers, Buaya will recreate a new BUAYA look. Firstly, we will hold a series

of competition among the Arts schools in Singapore. The winner will collaborate with the newly engaged creative

fashion director to produce a collection.

We will instil the new designs with the skilful tailoring and quality material to give birth to a new range of products.

On top of the new range of designs, we work with a famous local artiste to design a series of limited collections to be

preview exclusively to the loyal customers before selling to public.


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The new look for formal wear will come in more colours and designs. The designs will be more bold and daring. We

decided to name the new look DOUBLE as it will able to make one look smart and presentable during office

hours, functions or presentations and yet able to look stylish and chic at dinners or outings with friends after work.

The fashion director will lead a team to launch a new line- BUAYA GREEN in January 2010. Its first concept store

will be in ION Orchard, Orchard Road. You can access to the malls from Lido Shopping centre, CK Tangs, and

Wheelock Place through the underpass and it is located above MRT station. The line will concentrate in creating

series of collection for sportswear for men and women who enjoy dressing in style and sporting surprising looks

when doing sports. It aims to appeal to savvy clientele that delights in experimentation.


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Promotion and Advertising

Apart from participating in Great Singapore Sales, we will have our own seasonal sales promotion to draw in

customers. For instances, having a Spring-Summer (S/S) sales and Fall-Winter (F/A) sales will allow us to clear the

remaining stocks and generate more sales and clients.

Buaya will hold an exclusive 3 days pre-sales only for premium members of Buaya. It will show recognition to the

loyal customers. Prior to the ending of sales, selected collection new clothing from the next season will be on display

for sales. This method allows repeat customers to walk in the stores and see something new all the time. We need to


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understand how the consumer feels and wants. We must know why, how, when, what and where a consumer do and

do not buy a product. Kolter (2006, p172) explained, The importance of understanding the physchological mindset

and human behavioural variables of consumer. This will allow the marketers to strategize based on the the

consumer behaviour.

Besides studying consumer behaviour, we will create brand awareness by participating in Singapores Fashion Week

(SFW), Mercedes Fashion Week. Besides having celebrities to endorse the products, the new sports line will tender

to sponsor Charity Marathons and sports events like F1 and Youth Olympics 2010.


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In 3 August 2006, Singapore Tourism Board launched a set of initiatives to propel the growth of MICE (Meetings,

Incentive Travel, Conventions and Exhibitions) Industry to meet the targets envisioned for Business sector in the

Tourism 2015 Strategic blueprint and to establish Singapore as the Exchange Capital of the world. To increase

awareness of the product globally, we can bid to be the main apparel for the event.

We can segment our customers into different levels with a set benchmark. Per say, if one spends more than S$1,500

within 6 months can be our premium members, enjoying more discounts and privileges.

Service


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Kolter (2006, p376) suggest that, variability is one of distinctive characteristics of services that will greatly affect

the design of marketing programs. It is crucial to invest in good hiring and training procedures as they help to bring

in revenue to the company. If the morale of the staffs is dampening, we can improve the motivation level of staff by

giving them better incentives or commission packages. For instance, if they serve a repeat customer, their

commission will double. This method makes the staffs recognising their own clients and on the other hand, the

customers will happy being recognised.

Product training will be provided to the staffs once every 3 months. The training will allow them to educate

themselves and the customers. They will know the material used method of washing, ironing, etc. Besides the


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product training, the company will send two of its best sales staffs for upgrading courses, like fashion merchandising

or retail management.

Standardization of service-performance process throughout the organisation by preparing a service blueprint that

depicts events and processes in a flowchart with the objective of recognizing potential fail points. Rod D (2000,

p102) pointed out that, an organisation can distinguish from its competitors by providing customer care or going the

extra miles services.


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We will also engage mystery shoppers to test the product knowledge and the service level of the service staffs.

Customer satisfaction survey will also be conducted every 2 months to ensure that the level of service is maintained

at a satisfactory or better level.

Besides the above, Buaya will be launching its first ever online shopping services where the only valued customers

will have the pin and password to shop online and buy the items exclusively. This service differs from the

competitors, as the personal data of customers will be saved in database, like their waistline, bust line. They can buy

the size of the clothes online and have it altered based on the last alterations done. Every single alterations and

purchased made by premium customers will be saved in database.


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CONTROL AND IMPLEMENTATION

We are planning tight control measures to closely monitor quality and customer satisfaction in the new image. This will

enable us to react very quickly in correcting any problems that may occur. Other early warning signals will be monitored

for the signs of deviation from the plan, which include monthly sales and monthly expenses.


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The types of items sold will be closely recorded and analysed for next seasons production. Based on this analysis, the

team will know which type of apparels are top sellers. We can produce more of the type of apparels and in the mean

time; find out why the others do not sell as well.

Reference List:

1. Kolter P, Keller K. 2006.Marketing Management12th ed. United States of America: Pearson Prentice Hall


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2. Rod D, Anthony J. 2000.How to be better at Marketing. Great Britain: Clays Ltd, St Ives plc

3. Lamb, Hair, McDaniel. 2004.Marketing. 7th ed. Canada: Thomson South- Western

Documents

Buaya Marketing Plan