Executive Summary
This marketing plan for Charles & Keith Group serves to analyse Charles & Keith’s success thus far and make recommendations on its future. The organisation has experienced greater-than-anticipated demand for its products, and research as shown that the target market of trend conscious consumers would like to buy more of Charles & Keith’s current offering. Charles & Keith group needs to extend their product line as well as adding new product lines to keep up with the expectations of this market so that they can grow with their consumers. The marketing environment has been very receptive to the firm’s high-quality goods— classy and sophisticated footwear and accessories with an affordable price tag. Over the next few years, Charles & Keith can increase its distribution, offer new products, and win new customers
Introduction
Charles and Keith (CK) founded by brothers Charles and Keith Wong in 1996. It is a fast fashion brand, with a key focus on footwear and accessories. Under the Charles and Keith group, there is also Charles and Keith Signature label and Pedro. Encapsulating modern luxury and contemporary style, by offering a “smart twist of timeless classics with international influence”. The brand emphasises its attention to detail, with the aim of creating “emblematic looks” for the elegant and sophisticated.
International luxury goods conglomerate of LVMH (Louis Vuitton Moet Hennessy, acquired 20% of Charles & Keith.
Products can be divided into three level, they are core product, actual product and augmented product. First level, core product is not the tangible, physical product, because core product is the basic benefit that Charles & Keith shoes can bring to user and it is also the main reason why user bought it. Basic benefit of shoes is having comfortable footwear to walk. Second level, actual product is the physical form of the Charles & Keith shoes. At this level, the marketer will set up the design, style, brand, quality and packaging of Charles & Keith shoes. This step is important because it differentiates their shoes from their competitor. Third level is augmented product. Augmented product is additional benefit of purchasing Charles& Keith shoes, for instance, good quality and unique design
Generally fashion products have shorter PLC. CK counters that by bringing in at least 15-20 new designs every 2-3 weeks. To continue to generate sales from outdated products they frequently hold 30% discount on selected items. Those items that are on discount are items from last season which they intend to clear its stock. This way, they create short-term sales therefore it will generate higher traffic. To further support that this successful retailer practices price lining, Charles & Keith’s Signature Label which portrays a woman as modern, fashionable and prestigious considering its exclusivity, thus is priced at a much higher price by 30% as compared to the rest. Charles & Keith’s Signature Label’s prices ranges from $69.90 to $99.90. Charles & Keith’s pricing also introduced an element of excitement into shopping and by implementing odd pricing strategy, as all of their products (footwear, bags and wallets) ends with a .90 which induces consumers to perceive it as “not very expensive”. Being unique in its own ways, Charles & Keith understand buyers’ mindset well therefore they implement this unique pricing strategy to entice more customers.
Micro Analysis (Internal)
Customers
18-45 years old, mid to high level of disposable income. Chic, trendy and bold fashion sense. Consumers don’t really have a high brand loyalty, due to saturated industry.
Employees
Usually females aged 18-40. Good product knowledge. Sent for extensive training. Staffing gaps are plugged by part timers although they do not have the level of product knowledge full timers do.
Suppliers
Owns 30 over factories in Malaysia and china. Prevents OEM sales. Tight control and regulations.
Shareholders
Louis Vuitton Moet Hennessy (LVMH) 20%.
Media
Generally good media front. Constantly and consistently winning awards and covered in ST, Men’s Folio and more. Sponsor of accessories at major magazines increases exposure and awareness.
Competitors
Aldo, target market comprises men and women aged 16 to 45, with a chic, trendy, bold fashion sense, medium to high purchasing power and willingness to spend on their appearance/ image.
NineWest a sub-brand of the American clothing, accessories designer brand, The Jones Group, whose vision is to “ignite desire, instill confidence and stimulate compliments”. Stemming from its 30 year presence in the industry and its ‘Hot 9’ selection of ‘must-haves’ of the current season, Nine West is positioned as a “trusted fashion advisor in every category”. They claim to be recognised as a complete lifestyle brand that translates looks from the runway to “real life fashion”. The product range offers shoes and accessories for men and women, and in other parts of the world, it also has some clothing as well as a selection for children.
Steve Madden American designer label by the “fashion footwear mogul” of the same name, whose vision is to give “young, fashion forward women a unique way to express their individuality through style”. This brand is also positioned as one that represents a lifestyle, but pivots around the central idea of “embracing fashion” while retaining the “funky independence” that originally defined the brand. The product offering includes shoes, bags, and accessories for men, women, and children.
Some of the other competitors in Singapore include Accessorize, Zara, Mango, Stradivarius, M)phosis, Topshop, H&M, Guess, Forever21, New Look, Pull & Bear, Bershka, Dorothy Perkins, River Island, DMK, Mitju, Rubi, Bata, and Pretty Fit. These competitors are not as big a threat to Aldo as the aforementioned four because some of them focus primarily on accessories and others on clothing. The shoe brands mentioned here also do not have similar price or style offerings as Aldo.
External Analysis
Economic
Founded in Singapore in 1996, Charles and Keith has expanded its presence internationally and has over 350 outlets in more than 30 cities. Situated in prominent shopping districts around the world, Charles and Keith has attained significant growth in its annual sales turnover. Charles and Keith has outlets in the South Africa, Japan, China and other countries. The economic conditions vary for the outlets. The success of a particular outlet can be greatly hindered if the economy in that country is contracting. However, if there is a worldwide phenomenon like The Great Depression of 1929, all outlets will suffer from a drastic fall in demand for the goods due to high unemployment rates and wage cuts which lower the purchasing power of people. The Gross Domestic Product (GDP) growth rate in Singapore as of the fourth quarter of 2014 has increased to 4.9 percent. (Trading Economics, n.d.) There could be a rise in personal income of Singaporeans due to the year-end bonus. Thus, personal consumption which includes retail sales may increase. However, this could result in Charles and Keith to experience a drop in sales. Consumers may turn to high end brands such as Aldo and Nine West that have better designs and follow up to date fashion trends. This is due to an increase in their purchasing power which makes them willing to spend more on their image and appearance.
Social
Charles and Keith’s target group is the women consumers who “buy shoes every month-recession or not”. (Forbes, n.d.) There is a general increasing trend in the population size of women in Singapore from the age of 18 to 45 as of 2014. (SingStat, n.d.) This can lead to an increase in demand for Charles and Keith products especially for those who fall under the ages of 18 to 24. There has been a significant increase in the female population size of that age from 123,248 to 131,016. (SingStat, n.d.) This age group generally are new to the working world and earn mid disposable income.
Technological
In order to remain competitive in their products and stay ahead of competitors such as Aldo and Nine West, Charles and Keith has to adapt to technological changes. Online shopping, mobile applications and social media are great platforms for retail outlets like Charles and Keith to connect and cater to their consumers’ needs. Charles and Keith has an online shopping webpage which allows customers to browse through their products at any time and also features online exclusives as well as items on sale. Their Facebook page and Twitter provides customers with an interactive platform where they can get the latest updates on the collections, fashion trends and Charles and Keith-related news. Charles and Keith has yet to create a mobile application that supports all mobile operating platforms for online shopping of its products. Zalora and Forever 21 are some fashion brands that have taken advantage of advancement in technology to enhance their customers’ shopping experience.
Marketing Strategy
Market segmentation is the process of dividing a market into distinct groups or buyers to cater customers who have different needs, characteristics and behaviours. By creating a segmentation it allows the company to classify people into groups with akin attributes. Charles and Keith uses demographic, behavioural and concentrated niche segmentation on women’s footwear.
Demographic Segmentation
Female Working Adults
In 1990s feminism and women liberation were active in the West spreading to major parts of Asia including Singapore. The launch of womenly products were timely and also opportunistic for Charles & Keith. In an article by Martha Rampton the third wave of feminism hits the globe in 1990s was informed by post-modern thinking. A liberation of the women through high heels and cleavages. In this era , women are more bold and dressy. (Rampton)
Metro-sexual males
Pedro, another brand by Charles & Keith to include men’s collection catered and designed for urban males was launched in 2005. Foreseeing the trend of demand of metro sexual men exercising aesthetical values in their daily grooming.
Income
More females seeks employment and was able to generate income hence it enhances and increases their buying power. When single mothers or working female adults are able to secure a job and income they do not find a need to seek approval for their spending.
Occupation
As the society becomes more educated and hold a prominent job status, the appearance becomes very important hence the need to look good and presentable for their daily outfits. Charles & Keith therefore chose to specialise in women’s footwear.
Behavourial Segmentation
Appearance
More and more working adults heeds more attention their looks and thus looking for more updated and trendy look.
Product Positioning
In the humble beginnings of Charles and Keith they began as seller from wholesale suppliers. Charles and Keith was considered a low end retailer as most of their products back then were imported from China and Malaysia. They began exploring the niche market of designing their own line of products. Having an edge over their competitors as their designs were exclusive in comparison. Prices were also made affordable hence gaining popularity in Singapore.
In 2005 Pedro was launched; another line of shoes and accessories to cater for men .
Charles & Keith is established at Amara Hotel in 1996. A year later designing their own shoes and venturing overseas in the span of another three years. In 2002 Australia opens its second franchise and thereafter in Brunei. Charles & Keith noticing the monotonous market designs begins designing their own shoes. The company with their arsenal of products proves successful. The company venture overseas for the first time. Then, opens a second franchise store in Australia. The first store in Middle east being Dubai and other stores open up in Greece, Turkey and New Zealand. An online store, charleskeith.com, is launched, as well as a retail outlet at Changi International Airport; the first ever ladies footwear retailer at the location. A handbag collection is subsequently introduced.
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A partial of this article has been cropped to retain privacy.
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Nelly Riana 