Integrated Marketing Communication Plan for Folli Follie

M.Sc in Marketing Management

INTEGRATED MARKETING

COMMUNICATIONS

Integrated Marketing Communication

Plan for FF Group of Companies

SPYROS LANGKOS

ID: 100285557

Tutor: Mrs. Margarita Gamaletsou

Athens, January 2013

Academic Year 2012 – 2013

IMC Plan of FF Group. | 2

....As Gabrielle Coco Chanel once mentioned:

“Luxury is a necessity that begins where necessity ends”

This study concentrates on the integrated marketing

communications plan of the Greek company Folli

Follie (personal luxury products retailer) and how it

is implemented across international culture:

the expansion in China.


1. TABLE OF CONTENTS

Pages

1. Contents ........................................................................................ 3

2. Acknowledgements ..................................................................... 4

3. Executive Summary .................................................................... 5

4. Introduction ............................................................................... 6

5. Situation Analysis ...................................................................... .8

6. Segmentation and Positioning ................................................... .12

7. Branding and Identity .............................................................. .14

8. Competitive Positioning ............................................................ .15

9. Marketing - Communications Objectives .................................... .16

10. Marketing - Communications Strategies .................................... .18

11. Integrated Promotional Mix ...................................................... .19

12. Timescale and Resources ......................................................... .22

13. Evaluation and Control ............................................................ .23

14. Appendix ............................................................................... .24

15. Bibliography .......................................................................... .31


2. ACKNOWLEDGEMENTS

The development and the implementation of this plan are made possible

by the appreciation of my family and friends and also to the help of

Andrew, the library bookkeeper. I would like to thank, our module teacher

Mrs. Margarita Gamaletsou for her guidance so that we can bring closure

to our assignment work.

Still, I would like to thank Mrs. Mandalena Kasidiaropoulou, Head of

Investor Relations at Folli Follie Group of Companies, for her time and the

interesting conversation that we had, over company related matters.

Without the help of these people, my research could not have taken place.


3. EXECUTIVE SUMMARY

This report was created to point out the mixed marketing communications

plan for Folli Follie, in order to strengthen the FF Group reputation and

motivate the end-user confidence.

Key factors for this communication are International Culture and Access

to Global Market. We choose to focus on these two topics, because international employees and customers need more guidelines on these

specifics.

International Culture: raise awareness upon cultural differences and

increase diversification rates.

Access to Global Market: to expand the awareness of the impact of

the Global Environment in new emerging markets.

The guidelines include:

- Branding: create & use consistent message and image - Efficiency: create re-usable content & high impact channels,

such as a multimedia website and social media

- Data metrics: plan activity measurements & future decision making data.

The Goals of this plan form from three levels:

1) Strengthen the reputation of Folli Follie

2) Attract new customers and enhance satisfaction

3) Create engagement and positive industry buzz (word of mouth)

The purpose of this plan is to support the practices, policies and the action

plan of the Folly Follies Group and relate them with the business goals and vision, in order to raise awareness, loyalty and customer relationship.

This report strongly recommends the enhance of the company’s recent global campaign theme “ What are you crazy for? ”, based on the results

of the situation analysis (see below). The primary targets of this

communications are the Chinese youth, the international employees of the group and the Chinese post-modern woman & man. Secondary targets are

China’s major cities, fashion shows, local agencies.

We have investigated the possible launch of the Folli Follie in China, where

we will try to combine the Folli Follie’s “way of doing” with the local Chinese market.

Our mission therefore, is to successfully introduce the brand, while paying attention to the Chinese needs and expectations.


4. INTRODUCTION

In his book (Fill, 2010), addresses IMC as an on the go process of

establishment and development by organizations. Recent technological advances and the benefits of the Internet and its related technologies

have given new meaning in marketing communications and gave

managers a new reason to re-consider . As my Professor Mrs. Gamaletsou notes “ International marketing communications is still

nowadays an area of importance to organizations operating in national

and international markets.” Of course that is a statement of great

significance and truth, but the real meaning of what is IMC and for what is needed is argued by Delozier (1967). Delozier (1967), defined IMC as, “

the process of presenting an integrate set of stimuli to a market with

intent of evoking a desired set of responses within that market set and setting up channels to receive, interpret and act upon messages from the

market for the purpose of modifying present company messages and

identifying communication opportunities”.

4.1 History and achievements of the company

Folli Follie is a Greek company which designs, manufactures and distributes jewelry, watches and fashion accessories. The company offers

assortments in fashion accessories such as handbags, small leather goods,

belts and sunglasses. Following a philosophy of affordable, fashionable luxury, the exclusively designed pieces add breadth to the company’s

identity and are now globally recognized amongst accessories brands. Folli

Follie established itself as a pioneer in the market when it introduced, amongst its first collections jewelry creations made of silver combined

with murano glass.

Depending on the materials used (sterling silver, bronze, precious and

semi-precious stones) the company offers a wide variety of styles. Folli Follie is a company, which designs, manufactures and distributes jewelry,

watches and fashion accessories was founded in Greece in 1982 by

Dimitris and Ketty Koutsolioutsos, to become today an international brand and one of the most powerful Groups in Greece in the field of retail and

wholesale with brands that either owns or represents.

The launch of Folli Follie in the Greek jewelry market was followed by an

unprecedented success that convinced the owners to steer the brand towards additional categories of fashion accessories and led the way

towards the brands international expansion through strategic shop

locations.

Folli Follie has a direct control of the company’s international distribution network by vertically integrating the operations from

production to retail.


Today Folli Follie has presence in 25 countries with more than 380 points

of sale world-wide , including shops in the fashionable streets of London Tokyo Paris Hong Kong, New York, Dubai, Athens, Beijing, Seoul and

Honolulu. In addition, Folli Follie has a strong presence in the travel retail

market with points of sale in numerous airports duty free shops around

the world whereas Folli Follie products are also available in flight in major international airline. As far as Greece is concerned, Folli Follie has more

than 60 points of sale, amongst which stores in Athens and the

prefecture.

4.2 Mission

The company will mainly focus on entering and developing a

communication for entering and later establishing in a new foreign

market. This primary derives from Follie Folie’s corporate goal: “to identify

potential business development opportunities in the Asian markets and specifically in the Chinese area”.

4.3 Objectives

To earn a profit of 15 % in the second operational year in the Chinese market

To have a first year market share of 25 %

Attract-Identify best local distributor/agents

Introduce to local & regional trade-shows, events Recognize a potential database of customer buyers

To be recognized in the next 5-10 years as a global brand and be in

every country that we can

4.4 Philosophy

The Greek fashion icon, with mainstream and affordable products. Created in special places for special shoppers, who shop for themselves

4.5 Design

A stainless steel base jewels and accessories, surrounded by gold or silver

layer.


5. SITUATION ANALYSIS

It well-known that, a company is surrounded by an immediate

microenvironment of customers, suppliers, distributors, agencies and competitors. It is also surrounded by a macro-environment of major

forces such as consumer trends, technological development, social,

political, and legal forces. These forces affect and moderate the behaviour of all the actors in the market. Scholars often organise these forces in 5

overall categories (Kotler, 2012). In the 1980s, several other authors

including Fahey, Narayanan, Morrison, Renfro, Boucher, Mecca and Porter

included variations of the taxonomy classifications in a variety of orders: PEST, PESTLE, STEEPLE etc (see Appendix A).

5.1 Luxury market insight

The Guardian, the UK newspaper noted that,” the outlook for the luxury goods market has improved significantly in recent months, boosted by a

stronger-than-expected US and Europe rebound and surging demand

in China” (Business, Retail Industry, Tuesday, 3 May,2011). The article

claimed that “luxury sales rose 8% last year at constant currencies, up from a previous 6% estimate. In nominal terms, global luxury goods sales

grew 12% last year, against a previous 10%.”, as stated by consultancy

group Bain & Co. The consultancy estimated luxury sales would grow 5-6% in 2012 and 2013, led by emerging markets buyers and resilient

demand in Europe and the United States.

These data fact seem to have been verified by the KPMG Research , Department of Germany (resurgence-in-demand-for-luxury-goods, 2010).

Moreover, the demand is being driven by emerging classes of affluent

consumers, such as working women and financially stable youngsters.

(KPMG, 2010)

http://www.guardian.co.uk/world/china


5.2 Chinese Luxury Market

With a booming economy and a middle class with growing spending

power, China is a prime destination for luxury goods companies. In 2009,

the Chinese luxury goods market was worth 7.1 billion EUR (US$ 9.4

billion). Even during the economic downturn in 2009, the country’s luxury sales grew 20 %, and are further estimated to have grown 30 % in 2010,

to reach 9.2 billion EUR (US$ 12.2 billion), as per Bain & Co statements.

Moreover, by 2020, China is expected to be the world’s largest luxury goods market, according to a forecast by Asia Pacific-based brokerage

firm CLSA (KPMG.com, 2012).

5.4 Competitors

Swarovski

In 1895, Swarovski financier Armand Kosman and Franz Weis founded the

Swarovski company, originally known as A. Kosmann, Daniel Swartz &

Co., which was later shortened to K.S. & CoThe Swarovski Crystal range includes crystal glass sculptures and miniatures, jewelry and couture,

home decor, and chandeliers.

Li-La-Lo

H Li-LA-LO is a Greek company that opened its first store on June 7, 2001 in Glyfada. Following the success of the first store followed by another 13

stores.

Loisir Loisir is a brand of Perideo S.A., The main headquarters are in

Thessaloniki, Greece.

Loisir is a young, joyfull and glamorous brand, friendly and fashionable.

OXETTE

Was founded in 1998 and quickly became one of the most popular brands

in the global market of jewelry, watches and accessories.

AGATHA

Iconic French fashion jewellery brand, with over 300 AGATHA Paris boutiques worldwide. It was founded by Michel Quiniou, just over 36

years ago in 1974.

Tomas Sabo

The story of the company started in the 1980s: in 1984, the jewelry

enthusiast and self-made man Thomas Sabo set up his own jewelry

company with its headquarters in the historical town on Lauf an der Pegnitz in Bavaria.

http://en.wikipedia.org/wiki/Figurine

http://en.wikipedia.org/wiki/Haute_couture

http://en.wikipedia.org/wiki/Chandelier


5.5 Chinese domestic luxury brands

Local Chinese brands have been evolving rapidly. In the past few years

they have been able to pick up successful retail strategies from foreign

entrants, establishing themselves in good location. Although they do not

yet possess global visibility, within China itself, home-grown brands are becoming a source of “pride” and a badge on the country’s emerging self-

confidence.

There are some brands, which are perceived as being luxury on a local scale. Such brands include Goldlion (a once exclusive brand that was

made more accessible in recent years), other jewelry brands like Chow Tai

Fook and Tse Sui Luen. Furthermore, some international brands are also located in China, like Ports International. Ports had won publicity in

fashion magazines such as Elle and In Style in 2005. TIME magazine

included it in “ best products for 2005”, alongside with well-known names

such as Tod’s, Louis Vuitton and Channel. Similarly a few truly domestic luxury brands have emerged as being

“luxurious”. These two are LaVie and ShanghaiTang.

5.6 Cultural and Social Background

Culture, subculture and social class are particularly important influences

on consumer buying behavior. It is a fundamental determinant and can be

conceptualized as “the meanings that are shared by (most) people in a

social group and can be though as the blueprint of human behavior (Kotler, 2012). Furthermore, the Hofstede model aims to offer a

substantial help towards the above understanding. Mooij and Hoftede

note in their research ( Mooij, Hofstede, 2010), that cultural values should be viewed as an integrated part of the consumer’s self and not as an

environmental factor.

Life style and Values

People from the same subculture, social class and occupation may live quite different lifestyles. In that sense core values, are trans-situational

goals that serve the interests of individuals or groups that act as guiding

principles in consumer’s lives (Kotler, 2012). As an example of observation, we could say that Chinese are more sensitive to social

values, in comparison to the Greek that tend to estimate personal values.

Moreover, in the luxury section Chinese and Greek women have more

similarities rather than differences. Greek women though prefer larger sizes and more extravagant because of their silhouette and mentality, in

contrast to Chinese women who prefer smaller size accessories due to

their taste and analogies. In China they value more gold and strass, as a material.

In Greece, handmade and traditional combinations with impressive mixes

are wanted, for example the K Collection of Folli Follie is very famous in Greece.


Cultural differences and similarities

Societal characteristics of China & Greece based on Hostede model:

Power

distance Individualism/ Collectivism

Masculinity/ Femininity

Uncertain avoidance

Short/long orientation

China large Collectivistic persons

Feminine society

strong long

Greece small Individualistic

persons

Masculine

society

low short

Type of personalities:

Easterners – “believe in the continuous shaping of personality traits by situational influences” (Hofstede,2005)

Westerners – “describe oneself and others in terms of abstract characteristics” (Hofstede,2005)

Personality and attributes:

Based on the commercial cross-cultural brand study of [Grocus (2004), in

De Mooij (2010)], which found that “companies that own global brands want to be consistent in their messages worldwide, but consumers

attribute personalities so such brands that fit their own cultural values, not

the values of the producer of the brand”, I have created the table below, for the sake of measuring the similarities on global brand perceptions on a

national level scale – demonstrating the cultural impact on brand

perception.

A number of Brand Perceptions of Global brands

Friendly Prestigious Trustworthy Innovative

& different

Power distance

high China China

low Greece

Uncertainty avoidance

high China

low Greece Greece

The above preferences are modified in time by the effects of

advertisement, therefore the most widely acceptable model would be

Fishbein behavioral intentions model.


6. SEGMENTATION AND POSITIONING

The positioning decision often means selecting those associations which

are to be built upon and emphasized and those associations which are to be removed or de-emphasized (David D, Aaker, 2001).

Aaker notes that, there are six positioning placements: by attribute, by

price/quality, by respect to the use or application by product user, with respect to a competitor and respect to a product class.

Kotler (2012), argues that a market segment consists of a group who

share a similar set of needs and wants.

6.2 Folli Follie Target Audience

The firm’s focus is at a defined target group, as the 80 % of their target group are women aged between 20 and 40 years old. It’s the woman that

does not have the money and the financial background to buy for example

“the bag which costs 2000 euro”, or the watch which it is priced with 5000 euro”. She is the medium-class woman, who works hard in order to make

her money and want to own her money in order to spend it as she

prefers. She’ s the woman who offers her cut in the family budget, but

also wants to be trendy, without being forced or needed to spend “a little fortune” on gift or a renewal of her-self. They attend the modern woman’s

characteristics. They do not try to fit their audience to closed-social, class

and status attributes, but they maintain a broader picture.

For example, a female customer of Folli Follie, could also be a lady who

has money and wants to do a trending down. This case of customer is

often seen in Greece these last years, due to the economic downturn. However, a girl who wants to make a gift to her boyfriend in a logical

price is also considered to fulfill their audience characteristics

(Kasidiaropoulou, 2012).

6.3 Profiling the Chinese consumer

Though luxury consumption is growing, for most the still dominant social

idea is still prudent consumption and undertaking no more than you can perform. Emerging Chinese middle-class will continue to save more than

they spend. On the contrary Chinas younger generation of teenagers, the

twenty-something show less caution on saving than their parents and

grandparents and far more inclination to spend than to save. Chinese consumers tend to buy luxury goods, as a way to reward themselves for

their success, or as a token advertising their wealth. Chinese women

seek a more accessible, inclusive form of beauty. Chinese seek Chinese faces and admire status, power and expertise. Features that stick out are

not generally perceived as attractive and attainable. They want authentic

products, but still are price-conscious. The “mall-culture” is adopted as a

leisure activity. They have a strong preference on purchasing products overseas (KPMG, Consumer Markets, 2012).


China’s unique characteristics

Brand awareness

Perception of Beauty

Abandoning Counterfeit goods

Shopping for pleasure

Traveling enthusiasts

6.4 Key International segments

New luxury shopper:

Represent a range of different customers including celebrities,

entrepreneurs and business people. They are newly rich – very

often first generation in their family and tend to be younger than traditional luxury shoppers. Aged between 20 to 40 and younger

than those in Europe and U.S. Willing to spend greater proportions

of their income to luxury goods. Are optimistic about the future and

less concerned about saving for their old age, can afford to suit their lifestyle.

Empowered women:

Until recently 90 % of luxury spending in China was dictated by

men. Today, women in China are starting to gain economic

independence and are reaching a point where they have money of

their own for spending on luxury products. The modern female luxury shopper includes the business woman, the celebrity and the

newly independent wife. A research of global trends by the Luxury

Institute, identified a move to more women purchasing luxury goods.

Little emperors:

The most conscious consumers on China. They are the children now

entering their teen years and early adulthood (the generation resulted from the one-child policy) is evidenced in the larger urban

centers were the policy was strictly enforced. Their difference with

Westerner’s children is that they have six sources of disposable income, with parents and grandparents all contributing to meet this

one child’s every need. Bangkok Post Business studies in 2006, had

estimated that half of the typical urban Chinese Family’s disposable

income was spent on, or by its youngest members.


7. BRANDING AND IDENTITY

Baumgarth. C (2010), notes that “The Brand” is not an internal concept.

He claims that the results of branding do not derive from accumulated brand awareness and personal brand images stored in consumers’ minds.

“Brand identity” he says may belong to the company, but “brand image”

does not. He conceptualizes the general concept of the branding process and brand orientation, as a specific type of marketing orientation, which

is” distinguished by high relevance accorded to branding by top

management”.

The brand image:

- logo used only for limited and official communication.

- orange as color, is a positive color commonly associated with

amusement, the unconventional, extroverts, activity, taste and aroma,

the autumn season. In Asia, it is an important symbolic color

of Buddhism and Hinduism. - typography: the calligraphy letters used in the logo, represent the

cultural similarities of Greek and Chinese language and culture, but also

the letters design patterns on both languages, portraying the same style and esthetics.

Brand facets, source: Fill (2011)

7.2 Positioning statement

The Foli Follie brand is for modern trendy women between the age 20-40 , who are independent and want to look beautiful without spending a

fortune for her style. The competiveness of the brand stands for

affordable luxury, it is in the middle of the luxury impression map, offering

fashionable, stylish products in excellent quality and prices.

7.3 Value preposition

Folli Follie is unique, because it offers to today’s women the chance to be

beautiful, desired, chic and trendy. Unlike what other companies offer,

except Swarovski, they do not have the international distribution network of Folli Follie, which makes the company’s products more accessible and

easy to find.

Physique Control brand building and distribution(example jewelry)

Personality Outgoing, fancy, crazy, chic

Culture Global, exclusive quality, trendy

Relationship Affordable, fashionable

Customer reflection For young people and stylish women

Self image Strong connected, attached to the brand

http://en.wikipedia.org/wiki/Autumn

http://en.wikipedia.org/wiki/Buddhism

http://en.wikipedia.org/wiki/Hinduism


8. COMPETITIVE POSITIONING

8.1 Mass luxury positioning

They place themselves in the middle as Mrs. Kassidiaropoulou reveled to

the interview, and by this they mean that they are not perceived neither as an accessorise nor at the level of Cartier. The vast majority of their

products, nearly 80 %, has a medium price from 100 euro up to 200 euro.

A key factor to this element, is the company’s correspondence to the customer needs, due to the economic difficulties. In this positioning they

can have a short to long term fluxuating price policy, without losing

neither customers nor brand perception attributes. This happens mainly

because when you are not a high-end branded product, like L.Vuiton for example, the price variation does not affect so much the perceived quality

of your customers immediately, something that cannot be said in the case

of LV.

8.2 Distribution and Manufacturing network

Folli Follie has established a large international distribution network in

many countries and constantly tries to expand it. It has a vast number of

retail stores in upscale areas worldwide, which are designed by the company.

All Folli Follie products are only found in their shopping network.

An exception to this are bags that can be also found elsewhere, due to their high seasonality to be maintained in their stock.

Every detail in the stores from the floor, lights, sofas, etch are designed to

meet the needs and comfort of the consumer. Their sales personnel is nicely dressed to the company colors, in order to meet up with brand

perception, wearing all the same clothing.


9. MARKETING – COMMUNICATIONS OBJECTIVES

Effective marketing communications should accomplish four things: establish a connection, promise a reward, inspire action and stick to the

memory (Kotler, 2012). Marketing communication objectives should be

set at any level of hierarchy. Kotler (2012), states that Rossiter and Percy identify four possible objectives:

Category need Brand awareness

Brand attitude

Brand purchase intention

Objectives, are important to clarify and set an objective set of targets, that ought to be achieved by our planned actions. They exist in three

main levels:

Corporate: shareholder wealth maximization achieved through higher profits and constantly increased sales.

Marketing: A successful introduction of a new brand in a new market. During the entrance to the new market of China, Folli Follie

is not expected to be a profit generating commercial brand. It must

first be presented to the Chinese crowd, so that they can acknowledge the brand’s capabilities and standards.

Marketing Communication activities are a vital part in achieving the

above and have to be coordinated with the company’s overall activities (production, sales, and purchase).

Strengthening the relationship with the Folli Follie brand

Increase consideration when planning new seasonal arrival,

enforcing the “what’ new?” mentality of Chinese people.

Reach target market as full as possible

Rise customer awareness for company’s new branded products

Being a new brand with new products in a new market, our prime

objective is to educate them in our quality standards reassuring

them with the fashionability, trendiness of our design.


Communications should motivate consumers to search more

information about the brand, via website-brochures-visit of local

partner and dealers-online order.

Folli Follie should be considered as full and valid alternative to high-

end traditional luxury goods

Targets should be enthusiastic and exited about the brand and

spread social buzz/ WoM.

Ultimately communications should lead to purchase, by turning a

higher percentage of store visitors into sales.

If all or some of the objectives can be met, it will be shown in post

campaign analysis and research. Considering the performance of

the company in other markets sales, the first year goal should be

set near 10 to 12 %, of the Asian regional sales, which are

estimated to be half of the overall sales (FF Group Presentation,

Investors Relation, 2012).


10. MARKETING – COMMUNICATIONS STRATEGIES

Formulating the communications to achieve the desired response will require three variables: what to say, how to say it, and who should say it.

(Kotler et al, 2012).

10.1 Message strategy

In determining the message strategy, management searches for appeal,

themes or ideas that will connect with the brand positioning and help to

establish points-of-parity or points-of-difference (Kotler, 2012).

The main message of Folli Follie is “ What are you crazy for? ” focuses on the needs and the desires of young modern independent women. The

women who know themselves and want to express their beauty in a social

or an ego-satisfactory manner.

10.2 Creative strategy

Unique selling points should be emphasized and barriers to purchase must

be weakened. In early promotion the focus should concentrate on

educational and awareness aspects, whereas later we can focus on creating excitement and underline certain benefits.

The tone of voice should be lust, modern, intelligent. It would be useful to

create different executions to target one of the three mindsets identified in the target market and emphasize their reason to buy.


11. INTEGRATED PROMOTIONAL MIX

11.1 Promotion - Brand Ambassador

By selecting geographical areas with good safety, reputation and

demographics we will promote the discounts.

By hiring the Asian top model-actress Gei Lai, the discounts and the crazy for program can be vastly spread through word of mouth to all Chinese

women and their social network. Luxury brands like Folli Follie are used to

celebrity endorsement for presenting their messages to the public. In her studies Amanda Spray et al, 2011, notes that celebrity endorsement

generates greater recall for both the endorsed brand and the

advertisement. Folli Follie uses as brand ambassador, for the international

campaigns the Asian top-model and actress Geli Lai, who is very popular and established figure not only in the region but also international. Geli

Lai is raise in America but her ancestors origins come from China and

Vietnam.

The ambassador will participate in at least 3 events/per year and a

philanthropic event by a Greek organization. She will also take part in

experience events such as fashion weeks, store shopping, etc.

11.2 Newspaper

Placement is a very important key here. Smaller ads that are run repeatedly perform better than larger ads run less often. Here, Familiarity

equals Trust. Our focus is on lifestyle and economic newspapers. A direct

response a will be written, so that it can grab attention, interest and desire to provoke immediate action. Copy-writers will focus the reader to

“get up, go to the store and experience the brand and product benefits.

The direct response should: 1) Create desire by offering benefits, to needs

and emotions, 2) Simulate interest by touching human emotion, 3) Capture attention through design, size, place and time, 4) Investigate

actions by making the “offered solution” highly desirable yet affordable

and easy. The highly read magazines of our target are STATUS, FREE, ΚΛΙΚ, VOGUE, MARIE CLAIRE, LIPSTICK, GLAMOUR, COSMOPOLITAN,

LUCKY, HELLO!, ΕΓΩ, LIFE & STYLE.


11.3 Television

We will increase the awareness of the “What are you crazy for?” campaign

through TV commercials also by showing our newly designed

website/web-store with emphasis on our social presence, allowing for the

interested visitors access to information. This will result in higher web traffic, more frequent store visits and sales. The highly watched channels

are to our target are Star, MTV, Alpha, Mega, Antenna, CCTV 4, Jiangsu

TV, Dragon TV, Hunan TV, Jiangsu TV. The global TV campaign of FF “crazy for you” is very influential and memorable being in the top of mind

positioning of consumers, as the message and design is remarkable and

easy remembered.

11.4 Magazines

Advertisement in magazines offers a better reach of our targets, customer education about our products and services. It is the friendliest medium in

order to make a luxury purchase. The cost varies from vendor to vendor

(for example a page ad to the American Vogue costs approximately 200.000 USD, with a reach of 100m people, Kasidiaropoulou 2012).

11.4 Internet

Nowadays, the technological trends show that Facebook, Pinterest

Myspace, Google, Fashion blogs and Youtube are very popular among

female users. In these websites we focus on internet ads placement. Also luxury sites like luxist.com would be a useful tool since it attracts

consumers interested in purchasing.

Facebook: Due to it’s high traffic and active members w will reach a wider

audience. Ads on facebook allow easy targeting of users in our young age

of 25-35. The segments can be watched more closely and categorized by age, sex area, etc, making it easier to reach the preferred market

segment. It also offers a great feedback letting us narrow the future range

of market interests, something that would allow us future savings on

costs, research

Google: reaches the biggest percent of internet users and is the first ad

network. We gain more qualified leads at low cost boosting ROI and sales. We also gain ad feedback, in terms of placement.


YouTube: More than 300m users with international cover and

demographics. Its age range of users, covers our targets. We will get viewers and visitors categorized by what they watch or want to watch.

Creation of a video contest – users will upload video to a featured page of

our channel demonstrating their favorite FF accessories (watches/jewels/bags) saying why they like it and in what

situation/location/events would they put/bring it. The videos with the

most views would be chosen and one will win 10.000 euro check for company related products. This would create a video buzz surrounding our

main page and raising our product views and brand awareness (see

Appendix C).


12. TIMESCALE AND RESOURCES

One important notice that should be mentioned is that marketing

communications should start before the brand has entered or products are

launched, so that full potential is achieved. All the necessary Departments need to conduct regular meetings to tune in an integrated strategy.

Tactical Calendar – Communication mediums

Medium Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Brand ambassador

Newspaper

Television

Website

Magazines

Internet

12.1 Budget

Our budget will be allocated and the larger proportion, about 50 % will be

spent on promotions, due to the preference of our target, which likes word of mouth and events. The next 30 % is decide to go to TV and advertising

The other 10 % will be spent in Print Advertising (direct, mail, magazines,

flyers, etch). Finally, the last 10 % will go on Internet marketing.


13. EVALUATION AND CONTROL

Fill (2011), proposes that, “the role of marketing communications budget is the same weather is multinational, trading in numerous international

locations, or a small manufacturing unit on an industrial estate outside a

semi-rural community. Both, want to ensure that they achieve the greatest efficiency with each dollar/euro/pound they allocate to

communication activities. Neither, can afford to be profligate with scarce

resources, and each is accountable to the owners of the organization for

the decisions it makes”. As for the matter of Evaluation he says that, “All organizations review and

evaluate their performance of their various activities.

Considering the large target group of the brand, the high net deficit, the

increasing expenses of first year’s communication, and the medium-rate

projected sales figures, a budget of 7 million Euros, over a three year

campaign should be appropriate. Moreover it is proposed to reallocate the budget recommending, a 4m euro spent in the first year, 2m in the

second and 1m in the third. This way our launching period has more

chances of integrating and successes.


15. APPENDIX

A] PESTELE Analysis

Political Greece changed policy

about luxurious product categorization

Unstable governmental environment in Greece

Authoritarian government policies in

China IPR/Counterfeit policies

Legal European guidelines for

raw materials China: strict regulations

concerning advertising & language

Competition and quality assurance law

employment law Transfer pricing

Free transfer zones

Economic Recession led to less

available and disposable income

Greek wages drop

significant

Chinese people grasp economic power and

parity High Greek Taxes

International Vat taxonomies

Luxury goods surplus taxation

Good distribution channels

World trade agreements e.g.

further expansion of the EU Migration flows

Customs policy

Social

Cultural

Increased Chinese

awareness on thyself and beauty

Younger ages becomes more luxury

brand and design oriented

Western civilization mixes with eastern

typologies

Markets Community groups

Not affected by the crisis long-term

Consumers are more money spenders than savers

Many niche markets to focus Rapid change of Consumer

Behaviors

Competitors Absent of strong local

competing brands 4-5 International

competitors Many high-end

designer brands in the market

Ecological Increased concern in

recycling of damaged/end of use goods

Use of eco-friendly packaging Overall community action

upon environmental issues

Technological China has strict rules about the internet

Greek are

technology/gadget

oriented Both are Social media

active

Demographics Aging European Population Younger ages in China

Highly education rates in both

counties

Both population it is gathered mostly in 2 major areas/cities


B] Action Plan

Folli Follie Group Marketing Communication

Activities

YEAR 1

1 2 3 4 5 6

7 8 9 10 11 12

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Actu

al lunch in

C

hin

a

Internet

Microsite/Blog Integration to main site

Online advertising, bannner advertising on fashion blogs/sites, style/fashion

magazines, online meia sites (Guarddian.co.uk)

Direct mail Awareness

mail Launch mail

Newslleter

TV TV

Campaign

Print Print advertising in press and magazines

Outdoor Outdoor and billboard ads

Other: - Promotions

- Public Relations - Personal Selling - Sales promos

Fashion show and Exibitions 1000 euros discount off for the first 100

buyers Offer prouducts as prize to beauty contests and similar activities

Press releases and new product announcements

Launch of intensive PR activities

Staff training and Dealer launch pack

Dealer activity, Personall selling visits for corporate gifts

Evaluation Evaluation - Testing

Begin of post test

Cost 500.000 1.500.000 750.000 750.000 500.000 500.000 500.000

Year total: 5.000.000 Euro


C] Media Plan

Medium

Principals/Characteristics

Media channels

Type of media

Benefits

Disadvantages

Folli Follie target

group

TV broadcast: National

Cable Satellite

Regional

Large/mass audience, low cost, generate

awareness Highly visible, strong

impact All senses focused

Strong image brand Sponsorship/product

placement synergies

Time consuming/high cost

Channel hoping Limited info content

No good target selection

Short life-cycle of images

-ITV -BBC

-CNBC -mega

-Antenna -Fashion TV

Radio:

National Local

Low air time, high cost

Production flexibility Target selective audience

No visual stimuli

Luck of persuasiveness

Environment distraction

Poor signal Very limited

information

-Virgin FM

-MTV/mad

Press-Newspaper:

Regional National-daily/weekly

Weekend

Selective readers, broad

acceptance Direct response

Geographical selection

Small impact

Low image/printing layout

message noise environment

distraction Short life-cycle

-Times

-Guardian -New York post

Magazines:

National/International/weekend

Men’s/Women Monthly/Consumer

Highly selective (women

fashion magazines) High cots

Prestige/credibility Actively read

Good image quality

Too much colored

details Crowded messages

Only visual stimulation

- Vogue

-Elle -Madame Figaro

Posters:

Billboard Airports

Buses/taxis Outdoor/Shopping areas

Broad audience

High frequency Brand differentiation

Strong single messaged impact

Creative limitation

Low audience activity Short exposure time

Only simple messaging

-Xong Kong

/Athens airport -Congested traffic

zones

Internet: Web search

Web page E-mail

Social media

High interactivity Technology oriented

targets Large audience

24/7 Direct response/ low cost

High information cont

Too much relay on SEO

No segmented audiences

Many Imitations Limited visual effects

in terms of actual product

-Fashion web sites -Link to Amazon

fashion novels, Google ad-words,

fashion blogging


Source: FF Group Presentation Booklet – Investors relations, October 2012








16. BIBLIOGRAPHY

Academic Journals

1. Amanda Spry, Ravi Pappu, T.Benitta Cornwell (2009).

Celebrity endorsement, brand credibility and brand equity. European Journal of Marketing, Vol. 45 No. 6,2011, pp 882-909

2. Carsten Baumgarth (2007). “ Living the brand “:brand orientation

in the B2B sector. European Journal of Marketing, Vol. 44 No 5, 2010, pp 653-671

3. Marieke De Mooij (2003). Convergence and divergence in consumer behavior: implications for global advertising. International Journal

of Advertising, 22, pp 183-202

4. Michael Petromillini & Stepen Berman (2007). Emerald Backfiles.

5. Jeniffer L. Aaker (August 1997). Dimensions of Brand Personality.

Journal of Marketing Reseach. Vol XXXIV, 347-356

6. Marieke De Mooij & Geert Hoftede (2010). The Hofstede model.

Applications to global branding and advertising strategy and research. International Journal of Advertising, (29)1, pp.85-110

7. Annie Rindell & Tore Strandvik (2009). Corporate brand evolution:

corporate brand images evolving in cosumers’ everyday life. European Business Review. Vol 22 No 3, 2010

8. Tom Duncan & Sandra E. Moriarty (1998). A Communication-Bassed Marketing Model for Managing Relationships. Journal of

Marketing, Vol 62, 1-13

9. Annikka Ravald & Christian Gronroos (1996). The value concept and

relationship marketing. European Journal of Marketing, Vol. 30 No

2, pp. 19-30

10. David Aker & J.Gary Shansby (2001). Sophisticated analysis

of all the positioning alternatives can, and should, be done.

Business Horizons.

11. Thomas Foscht & Cesar Maloles, et al (2008). The impact of

culture on brand perceptions: a six-nation study. Journal of Product and Brand Management, 17/3, pp 131-142

12. William R.Davidson, Albert D. Bates and Stephen J. Bass. The

retail life cycle. Harvard Business Review.


13. Regis McKenna (1995). Real-Time Marketing.

Harvard Business Review.

14. Theodore Levitt (1960). Marketing Myopia.

Harvard Business Review.

15. Karel Jan Alsem & Erik Kostelijk (2008). Identity based marketing:

a new balanced marketing paradigm. European Journal of

Marketing. Vol. 42 No 9/10

16. Evert Gummesson (1991). Marketing-orientation Revised: The

Crusial Role of the Part-time Marketer. European Journal of Marketing. Vol 25, No.2, pp 60-75

17. Macnamara, J.R (2004), The crucial role of research in multicultural and cross cultural communication. Journal of

Communication Management, Vol, 8, issue 2, pp 332-334

Academic Books

18. Chris Fill (2012). Essentials of Marketing Communications.

Prentice Hall

18. Dibb, Simkin, Pride, Ferrell. Marketing-concept and strategies.

3rd European Edition

19. Michael J. Baker. The Marketing Book. CIM 2nd Edition, pp 335-

347, 415-455

20. Isobel Doodle & Robin Lowe. International Marketing

Strategy.Analysis, Development and Implementation. 2nd Edition. Thomson Business Press. pp. 72-74, 78-104, 267-360, 414-430

21. Kotler et al (2012) . Marketing Management. 2nd Edition. Pearson

Internet

22.http://www.advertising.gr/Article/4477/Oi-korufaies-markes-tou-

planiti/?ArticlePage=2 [Accessed 19/12/12]

23.http://www.iabc.com/cwb/archive/2012/0312/CaseStudies.htm

[Accessed 19/12/12]

24.http://www.interacteu.net/downloads/3088/Communication_plan_and

_strategy.pdf [Accessed 19/12/12]

http://www.advertising.gr/Article/4477/Oi-korufaies-markes-tou-planiti/?ArticlePage=2

http://www.advertising.gr/Article/4477/Oi-korufaies-markes-tou-planiti/?ArticlePage=2

http://www.iabc.com/cwb/archive/2012/0312/CaseStudies.htm

http://www.interacteu.net/downloads/3088/Communication_plan_and_strategy.pdf




25.http://www.follifolliegroup.com/files/GR%20SUBs.pdf

[Accessed 19/12/12]

26.http://www.follifolliegroup.com/files/%CE%95%CE%94_SCI_FFGROU

P%20%CE%A4%CE%95%CE%9B%CE%99%CE%9A%CE%9F.pdf

[Accessed 10/12/12]

27. http://www.follifolliegroup.com/files/PR%20FY_2011_GR.pdf

[Accessed 10/12/12]

28.http://www.follifolliegroup.com/files/GR_Annual%202011_Web%20sel

ides.pdf [Accessed 16/12/12]

29. http://www.follifolliegroup.com/files/Dufry_Gr_10_10_2012.pdf

[Accessed 16/12/12]

30. http://www.follifolliegroup.com/files/katastatiko%2026.pdf

[Accessed 16/12/12]

31.http://www.dimensionsofculture.com/2010/10/traditional-asian-

health-beliefs-healing-practices/ [Accessed 16/12/12]

32.http://www.cedu.niu.edu/~shumow/itt/Asian_American_Cultural_Awar

eness.pdf [Acceessed 17/12/12]

33. http://library.thinkquest.org/20443/g_culture.html

[Accessed 17/12/12]

34. http://library.thinkquest.org/20443/g_way_of_life.html

[Accessed 20/12/12]

35. http://www.asianamericanalliance.com/index.html

[Accessed 20/12/12]

36. http://www.asian-nation.org/population.shtml

[Accessed 22/12/12]

37. http://www.kpmg.com/DK/da/nyheder-og-indsigt/nyhedsbreve-og-

publikationer/publikationer/brancher/consumer-

markets/Documents/resurgence-in-demand-for-luxury-goods.pdf

[Accessed 27/12/12]

http://www.follifolliegroup.com/files/GR%20SUBs.pdf

http://www.follifolliegroup.com/files/%CE%95%CE%94_SCI_FFGROUP%20%CE%A4%CE%95%CE%9B%CE%99%CE%9A%CE%9F.pdf

http://www.follifolliegroup.com/files/%CE%95%CE%94_SCI_FFGROUP%20%CE%A4%CE%95%CE%9B%CE%99%CE%9A%CE%9F.pdf

http://www.follifolliegroup.com/files/PR%20FY_2011_GR.pdf

http://www.follifolliegroup.com/files/GR_Annual%202011_Web%20selides.pdf



http://www.follifolliegroup.com/files/Dufry_Gr_10_10_2012.pdf

http://www.follifolliegroup.com/files/katastatiko%2026.pdf

http://www.dimensionsofculture.com/2010/10/traditional-asian-health-beliefs-healing-practices/

http://www.dimensionsofculture.com/2010/10/traditional-asian-health-beliefs-healing-practices/

http://www.cedu.niu.edu/~shumow/itt/Asian_American_Cultural_Awareness.pdf



http://library.thinkquest.org/20443/g_culture.html

http://library.thinkquest.org/20443/g_way_of_life.html

http://www.asianamericanalliance.com/index.html

http://www.asian-nation.org/population.shtml

http://www.kpmg.com/DK/da/nyheder-og-indsigt/nyhedsbreve-og-publikationer/publikationer/brancher/consumer-markets/Documents/resurgence-in-demand-for-luxury-goods.pdf



Education

Integrated Marketing Communication Plan for Folli Follie