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Marketing Plan - NRG

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Marketing Plan New Revolutionary Green Table of Contents 1.0 Executive Summary ii 2.0 Market Trend Analysis 1 3.0 Environmental Analysis 2 4.0 Competitive Analysis 3 5.0 Segmentation Analysis and Consumer Buying Behaviour 6 5.1 Objectives 6 5.2 Target Market 7 5.3 Why this Target Segment? 7 5.4 Target Market Profile 7 5.5 Consumer Buying Behaviour 9 6.0 Positioning Statement 9 7.0 Marketing Mix 9 7.1 Product 10 7.2 Price 11 7.3 Place 12 7.4 Promotion 12 8.0 Financial Analysis 14 9.0 Exhibits 16 9.1 Exhibit A - Weekly Schedule of Classes Offered at NRG 16 9.2 Exhibit B - Selective Product Comparison (in CAD) 16 9.3 Exhibit C - NRG Floor Plan 17 9.4 Exhibit D - Consumer Buying Behaviour Collage 18 9.5 Exhibit E - Perceptual Map of Competitors 18 9.6 Exhibit F - Bulls Eye Diagram 19 9.7 Exhibit G - Forecasted Income Statement 19 9.8 Exhibit H - Total Units Sold 20 9.9 Exhibit I - Revenue Calculations 20 9.10 Exhibit J - Break-Even Analysis 20 10.0 Bibliography & Citations 21 1.0 Executive Summary With Aritzia founded in 1984 and growing at a steady rate in the retail sector, consumers today are now demanding a new line of apparel. Yoga and other forms of physical and mental disciplines has been an ongoing trend in the past few years, stimulating demand for fitness apparel. Furthermore, functionality adds value to active-wear and provides an opportunity for retailers to understand and satisfy that need. To meet the needs of our potential customers, New Revolutionary Green (NRG) is a new fashion line that integrates technology with style and comfort while maintaining an eco-friendly image. NRG is a standalone label under Aritzia focusing on "Green", innovative, and fashion-forward athletic apparel. This report provides an overview of our product in addition to an in-depth analysis of the several factors that can affect our brand and a detailed marketing plan to reach our target audience. ...read more.


This district contains the headquarters of many Canadian companies as well as a large residential population. Lots of high-rise condominiums are also located nearby. NRG athletic apparel has one key market segment. This target market is female only, 23- 35 years of age, who are high-income individuals having an annual income of $50,000 or more, according to Statistics Canada. 5.3 Why this Target Segment? We have targeted our sales towards this specific market segment as our store is located in an up-scale shopping district where it is also a financial district. There are all sorts of designer fashion and upscale stores located in this area, since it is also a financial district; the majority of customers to these stores will generally have high income and will be able to afford the premium priced apparel we have. Young consumers, aged 23-35, tend to have more disposable income than the older generation, they are willing to spend more money on clothing and are more conscious of the fashion trends. According to the Women's Clothing Stores article, women between the ages of 17 and 24 increased spending on clothing by 1 percent, whereas purchases by women between the ages of 35 and 44 fell by 10 percent, and purchases by women over the age of 55 dropped off 13 percent. 5.4 Target Market Profile: FashForward Greenies - Refer to Exhibit D Gender: Female Age: 23- 35 Education: University Degree Holders Income: $50,000+ Type: fashion forward, trend followers, environmentally friendly, healthy lifestyle New Revolution Green focuses its business with individuals who earn an annual income of $50,000 or more, these individuals are high-income Canadians who account for 25% of total income in Canada, according to Statistics Canada. We grouped this market according to where they lived- Toronto, Canada, a larger urban area where 31% of the 5.5 million Canadians who earn $50,000+ annually live. High Income Canadians: who they are / where they live (according to Statistics Canada) ...read more.


lululemon athletic Yoga Pants (Solid) 95 98 Top Quality Yoga Pants* 189 108 Shorts (Groove) 50 48 Hoodie (Solid Zip-Up) 75 98 Tanktop (Racerback) 35 42 *Note: NRG prices certain products at a premium to create perceived value for customers 9.3 Exhibit C - NRG Floor Plan 9.4 Exhibit D - Consumer Buying Behaviour Collage 9.5 Exhibit E - Perceptual Map of Competitors 9.6 Exhibit F - Bulls Eye Diagram 9.7 Exhibit G - Forecasted Income Statement NRG Annual Income Statement (in millions $CDN) For year ended Dec 31, 2012 For year ended Dec 31, 2013 For year ended Dec 31, 2014 Year 1 Year 2 Year 3 Sales 1.2500 2.0750 3.4445 Sales Returns and Allowances 0.0625 0.1038 0.1722 Net Sales 1.1875 1.9713 3.2723 Cost of Goods Sold 0.5875 0.9753 1.6189 Gross Income 0.6000 0.9960 1.6534 Expenses Sales and Administrative Expenses 0.3875 0.6433 1.0678 Advertising Expense 0.3800 0.3800 0.3800 Rent Expense 0.1200 0.1200 0.1200 EBITDA -0.2875 -0.1473 0.0856 9.8 Exhibit H - Total Units Sold Population of women who did Yoga 1,300,000 Income over $50,000 (Percentage) 22.7% Living in Toronto, Ontario (Percentage) 14.26% Positive Reaction to ads (Percentage) 75% Customers who buy (Percentage) 40% Total units sold 12625 units 9.9 Exhibit I - Revenue Calculations Assuming consumers purchase 1 unit from the high quality clothing line per 10 purchases from the regular clothing line: First year revenue: 10x + x = 12625 11x = 12625 x = 1148 high quality purchases Therefore, 11477 purchases from the regular clothing line 1148 * $139 + 11477 * 95 = $1,249,887 9.10 Exhibit J - Break-Even Analysis From the numbers based on the first year, Cost of goods sold: 47% of revenue Selling and Administrative Expenses: 31% of revenue Average revenue per product: 1,249,887/12,625 = $99/unit Average cost of goods sold: (1,249,887*0.47)/12,625 = $46.5/unit Average Selling and Administrative Expenses: (1,249,887*0.31)/12,625 = $30.7/unit Contributed Surplus: 99 - 46.5 - 30.7 = $12.8/unit Fixed Costs: Rent + Advertising = $380000 + $120000 = $500000 Units to breakeven: $500,000/12. ...read more.

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