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Lorna Jane

  • Lorna Jane
  • Table of content
  • Executive summary. 4
  • Introduction. 4
  • Situation analysis. 5
  • Firm internal environment5
  • External environment6
  • SWOT analysis of Lorna Jane. 7
  • 2. E-marketing strategic planning. 9
  • Segmentation and target positioning. 9
  • Differentiation strategies. 10
  • Position strategies. 12
  • 3 e marketing objective. 12
  • 4. E-marketing strategies. 14
  • Products strategies. 14
  • Pricing strategies. 16
  • Distribution strategies. 17
  • Communication strategies. 17
  • Relationship management strategies. 18
  • Budget of website hosting. 19
  • Evaluation plan. 21
  • Conclusion. 22
  • Reference
  • Executive Summary . 23
  • Lorna Jane is one of the Australia leading companies in the sale of women clothing. Situation analysis of the company indicates that the company has great opportunity of venturing in the unutilized men clothing market. The company also faces some stiff competition from some of the large companies that already operate in the market such Hugo Boss. In this case therefore the management of the company needs to implement some of e marketing strategies to help improve its performance. Development of a strong corporate website is one of the ways that the business can be able to increase their online visibility. Moreover proper implementation of the communication strategies can help to ensure that the business is able to provide the customer with adequate information regarding the good and services it is offering. In addition it is important to note that the presence of an evaluation plan can help to assess the effectiveness of the e marketing strategies implemented.
  • Introduction
  • The e marketing strategies refers to the various marketing strategies that can help the business to use the information technology in order for the organization to achieve its objectives. Application of e marketing in an organization also helps in ensuring that an organization is able to reach a wider audience. This report uses Lorna Jane as case study to show how the business can use the e marketing in order to achieve their objective. In this case the report first analysis the firm internal and external environment, in order to establish the various e marketing strategies can help to improve organization performance. This report also outlines some of the e marketing strategies that can help to improve the organizational performance. One of the importance strategies that the report proposes is the adoption of a strong corporate website. In relation to this the report outlines the possible cost budget of implementing the corporate website. Moreover, this report outlines some of the possible mechanism that can be used to evaluate the performance of the e marketing strategies implemented.
  • Situation analysis
  • Firm internal environment
  • History
  • Lorna Jane Clarkson was the core founder of the company where she first opened the store in 1963. She first created the company while working as a dental therapist; this was after becoming frustrated with the limited range of fashion that was available. Through her innovative and creative spirit she has managed to upgrade the company brand and become a multimillion-dollar business in only after two decade. Due to her desire toward body fitness she decided to include gym and sportswear, yoga and various lifestyle clothing as well as other accessories. She has therefore continued to design clothes that make people look good but most importantly allow people to feel great.
  • Lorna Jane has remained to be one of the Australia award winning active wear label for women in the last two decade. One of the major reasons that have enabled the company to grow is the fact that clothing fashion is designed by women and for women. The company aims to inspire women through active living. The company a brand has been pillared on three philosophy of move, nourishes, and believes. These philosophies have helped in encouraging the women globally to be the best they can. In relation to this the company has revolved from a simple clothing label to a way of life. The companies have committed effort to deliver active, innovative and inspiration garments to their customers. Lorna Jane has a strong believe that the women can look sexy, sporty and stylish after wearing fashionable clothes. In addition the company believes that if a woman looks goods then she is likely to feel good and hence she will be motivated to get an active lifestyle.
  • Products
  • The company has been dedicated in creating and investing in hi tech fabrication. The company has managed to produce approximately 100 new active styles each month. Product from the company mainly target women from the age of 25-45. One of the Lorna Jane fabric trademark is the LJExel, which is a variety of the fabrics that are perfect for either wearing in the morning. One of the best selling LJExel is the classic model, which is specially designed to create a more supportive and flattening fit. In addition the LJExel mesh model is also another fabric that has been designed by the company that allows a person to work out in comfort and style. Other product models produced by the company include the compression, power mesh, and honeycomb among others. Before a product is produced into the market the management of the company first ensures that the product withstands knocks and spills. This has helped the company produced high quality products that fetch good market price.
  • External environment
  • Various external business environmental factors affect the performance of Lorna Jane in several ways. The political factor is one of the factors that affect the performance of the company. In this case some of the political factors include the taxation policies, environmental laws and trade restriction. The management of the company has therefore been forced to comply with some of the regulations from the government. Economic factor such as the level of inflation and the exchange rates also affect the various decision made by the management. In this case the increase in the exchange rates affects the firm cost of capital and hence may force the management of the company to adopt new measures to increase the organization performance. Social factors also form another range of external factors that influence the organizational performance. In this case the management of the company has been forced to move with the current trend in fashion.
  • Changes in the technology have also affected the performance of the business. In relation to this the management of Lorna Jane has also been forced to integrate the current technology into the business. In this case the company has adopted the use of the internet to advertise their goods and make online sales. The company also faces stiff competition other fashion companies such Hugo boss, bulrush clothing company among others. Finally the various changes in the in the environmental factors has also affected the sales of different products produced by the company. Due to the changes in the environmental condition the management of company has been forced to design products that are in line with the current climatic condition.
  • SWOT analysis of Lorna Jane
  • Strength
  • One of the major strength of the company is the fact the company has managed to establish a strong company brand. In relation to this, the management of the company has developed a unique inspiring brand image in the market sector. The company has therefore managed to convince the women that their products make them look and feel good. The introductions of online sales have also helped to increase product sales in the company. Moreover, the company also has a strong supply chains that allows faster delivery of the product into the market. Another major strength of the company is the fact that it sells sportswear categories of clothes which are major choice of people who advocating for health lifestyle. In addition, the company also has large customer base, which allow it to enjoy economies of scales.
  • Weakness
  • Despite the company having a strong brand in the Australian market, it is also evident that the company has low brand awareness against the world established heavy weight brands such as Hugo boss. Another major weakness of the companies is fact that it mainly offers women clothing. This implies that the company is not able to enjoy the sale of men sportswear. The company also uses low budget with regard to product advertisement compared to large companies in the sector. It is also evident that the company also suffers from reduced sales due to the changes in the lifestyle and purchasing behavior of customers. Another weakness experienced by the company is the fact that there is low desire of the product from the customers. This implies that the company must ensure that they effectively communicate the product information to potential customers.
  • Opportunities
  • There exists a largely utilized men sportswear market in Australia. This is because very few companies sell men sportswear in Australia. This therefore implies that the management of the Lorna Jane needs to develop strategies in order to utilize this untapped market potential. There also exist opportunity for the company to utilize the e marketing in order to reach a large consumer base.
  • Threat
  • The company faces possible threat from new firms that are entering the market since most of them uses modern technology in the production and marketing of their products. Another major threat of the company faces is the fact that most of the men associate the company product with the owner. This therefore implies that the company may not be able to reach the male consumer market since their products are perceived to be largely feminine.
  • 2. E-marketing strategic planning
  • Segmentation and target positioning
  • Lorna Jane product market is segmented into different segment. The company has used the needs and response toward a product as the main basis of their market segmentation. In this case the company has used the following market segment, which shall also be used in the e-marketing planning.
  • Demography
  • Demographic segmentation refers to the segmentation of the market on the basis of age and household composition. This type of segmentation is the most important form of segment with respect to the Lorna Jane products. In this case the company mainly offers clothes targeting customer from age 25-45. However, it is important to note that the company also makes clothes that target customer at their respective age group. In this case the company makes products that take the teen from ages 13- 19 as well as products for young adult in their early 20s.
  • Psychographic
  • Psychographic market segmentation is based on aspects such as the social class and personal preference. This is also an important segmentation with regard to the product offered by the Lorna Jane. In this case the company has categorized their clothes depending on the different social class where it sells clothes for both rich and middle-income earners. In addition, the company has also segmented the market depending on an individual personal trait
  • Geographic segmentation
  • Lorna Jane has also segmented their market segmented depending on the geographic location. In this case the company has segmented the basis of whether the market is located in the rural areas or the urban areas. This is because the buying behavior of the rural people is different from those of the urban areas.
  • Behavioral segmentation
  • Lorna Jane has also segmented the market on the basis of the consumer behavior. The usage rate is one of the most significant types of segmentation. In this type of market segmentation the consumers are grouped on the rate at which they use the company products. Under this segmentation there exist medium users, light users and the non-users. The company has also segmented their market on the buying motives of the consumers. In relation to the buying motive the company has grouped their products on the buying intentions of the consumers such prestige, convenience and economy.
  • Differentiation strategies
  • Lorna Jane can use the following strategies in order to differentiate their products from their competitors.
  • Products features
  • The management of the company needs to ensure that their product has unique features. This can help to ensure that the customers are able to recognize the product of the company. In this case the company needs to continue investing producing LJExe fabrics since they are widely recognized as the one the main product produced by the company.
  • Performance
  • The company performance is another important attribute that can help to ensure that the company sets their brand at a higher level than their competitors do (Abrhiem, 2012, p.37). In this case the management of Lorna Jane needs to motivate their workforce to ensure that they continue working toward achieving the set organization objectives. In order to improve the company performance the organization also need to adopt the new technology on the production. This can help to ensure that the company continues produce quality products in the market that fetch good market prices.
  • Manufacturing process
  • The various methods used in the production can also facilitate product differentiation in the market. In this case the company needs to ensure that they adopt new technologies in the production. This can help to ensure that the company produces quality products and in a considerable low cost.
  • Improving the customer value
  • Lorna Jane can also be able to differentiate their products from their competitors in providing the highest customer value. In this case the company needs to offer products of high features at a considerable low price than the price offered by their competitors (Alvi, & Samdariya, 2012, p.88). In addition, the company can also use other tactics such as offering free samples in order to attract customer by the company’s products
  • Position strategies
  • Market positioning refers to the various ways that an organization wants the customer to perceive their products or services in relation to their competitors. For effective e marketing positioning strategies the first steps involves identification of the available market segment used by the organization. This help in making the necessary positioning strategies for each segment. After indentifying the company market segment the next step involves indentifying the segmentation used by the company biggest competitors. This can help in making positioning strategies that can enable the company to position their products above their competitors. In this case the company can make use the available internet technology to increase their online sale. The company can also try to indentify some of the unhappy customers from their competitor and hence make strategies to capture such customers. Moreover the company needs to ensure that they use the social media to relay the information that wearing clothes from the company gives one a unique experience. Using such information the company can be able to rise above their competitors without necessarily lowering the prices of their products. Engaging in community-based project can also help to position the company as one of the caring companies. Most importantly the company needs to ensure that they out-innovate their fellow competitors. This can help to ensure that the company becomes one of the leading companies in offering quality products to their customers.
  • 3 e marketing objective
  • The following are some of the marketing objectives that can be adopted by Lorna Jane
  • Increase sale
  • Increase in the sales volume is one of the prime objectives of any business. In this case the business can use the e marketing to increase their sales (Chailom, 2012, p.76). In order to ensure that the business increases their sales they first need to ensure that they evaluate their site usability. This can help to determine the effectiveness of their online sales. The management of Lorna Jane also to make sure that the information offered in their web page is well organized so that the customers can get all the information they need regarding the product and services. In relation to this the management also needs to ensure that they optimize the search engine to enable the customer to search any product information they may require. Moreover, the company also need to use the respond to any complain raised by the customer regarding the products they are offering (Gay, Charlesworth, & Esen, 2006, p.130).
  • Acquire authority in the industry
  • Lorna Jane also needs to use the e marketing in order to increase their authority in the industry. In this case the company needs to upgrade their website and ensure that it has more advance features than those offered by other companies. Building a strong website can help to increase the trust that the people have towards the business and hence increase the customer loyalty.
  • Increase online visibility through creation of strong company website
  • Increasing the online visibility can also help to improve the performance of business (Internet Access Industry Profile: Australia, 2011). One of the ways of increase the online visibility is through ensuring that they provide links of company website in social site. In addition the company also needs to ensure that they provide their website address information. This can help to ensure that the customers are able to access the company main website.
  • Establish the company brand
  • The company can also use the e marketing strategies to establish their brand. In this case the company needs to use clear graphics that reflect the business target. Establishing the company brand can also help to ensure that the business is able to pass a strong emotional message regarding the products and service. Proper message delivery using the company website and social media will help to ensure that the customers receive adequate information regarding the products and services offered by the company. It is also evident that building a powerful brand can help to provide motivation and direction to the employee and hence ensure that the organization achieves its objectives. Some of the ways of increasing the organizational e marketing include the use of blogs and videos.
  • Reduce the marketing cost
  • E marketing can also help to reduce the cost of advertising the company products and services. In this case, the use of e marketing can help to reduce the number of people required to promote the company products. In addition use of e marketing will help to ensure that the company is able to reach a large number of customers.
  • 4. E-marketing strategies
  • Products strategies

Executive summary

  1. Getting celebrity
  • Celebrity endorsement can help to increase the sale of the products. In this case the company needs to indentify some of the local celebrities. While choosing the celebrity it is important to use the celebrities who are doing something positive for the community. In relation to this, the management can post the photo of the celebrities endorsing the products.
  1. Creating video for you tube
  • The You Tube also forms another platform that the company can use in order to promote the products sold by the company. Video chosen in the You Tube should include a keyword researched that can help to capture the attention of the customers. Messages posted in the internet should also have a clear editorial message that helps to advertise the product.
  1. Creating a LinkedIn group
  • The business also needs to create a linkedld group, which can help to offer a professionals network that can facilitate exchange of information. Using these groups the business can be able to create a forum where they can be able to explain to the customer the benefit of their products.
  1. Creating blogs
  • Lorna Jane can also use the niche blogs to advertise their products. In this case the company needs to indentify some of the popular blogs that are used to advertise the products. However, it is important for the company to contact the blog owner and provide them with small amount of product, which they can give away to their audience.
  1. Writing an e book
  • The e-books can also be used to promote the various products offered by Lorna Jane. In this case the company needs to write an e-book on the various products and services offered by the company. Main goal of writing such an e book is to encourage the customer to visit the company website and hence ensure that the get the various products details (Pride & Ferrell, 2012, p.285).
  • Pricing strategies
  • The following are some of the pricing strategies that can be used by Lorna Jane
  • Price skimming
  • Price skimming involves setting of high price before other competitor comes into the market (Hong, 2012, p.101).). Lorna Jane can therefore use the strategy to introduce new fashion in the industry and therefore ensure that it sets high price for the product. This can allow the company to realize an increase in the profit through selling their products to the early adopters.
  • Psychological pricing
  • The management of Lorna Jane can also use the psychological pricing strategies in order to capture the attention of prospect customer. Psychological selling involves using strategies to enable the customers to think in terms of the whole number and hence assure the customer that the product is cheaper than it really is. This type of strategy can help to attract the customers who are looking for the value of the product (Rohani, & Nazari, 2012, p.101).
  • Competitor based advertisement
  • Due the increase in the levels of competition in the market the company can adopt competitor based pricing. This type of pricing first involves finding the prices of products that are offered by other competitors in the industry. After determining the price products from other competitor the company can then be able to set price that is in line with the price charged by the direct competitors. In this case the Lorna Jane needs to evaluate the prices of the products offered by companies such as Hugo boss.
  • Loss leader
  • Loss leader is another pricing strategy that Lorna Jane can adopt in order to market their products. In relation to this the company can advertise a product priced below the cost price in order to attract the customer to purchase the products from the company.
  • Distribution strategies
  • The management of Lorna Jane needs to adopt distribution channel that takes the good directly to the customer. This is to help and eliminate the intermediaries that are involved in the distribution of the company products. Using the producer-consumer distribution channels the company will be able to have a full control of the market and hence ensure that they respond to the various issues raised by the customers. In addition the use of this, method will allow the firm to cut the distribution cost sell their products at a high price.
  • Communication strategies
  • Proper adoption of the various communication strategies can help Lorna Jane to develop brand awareness. The following are some of the communication strategies that can be used by the business.
  • Advertisement
  • The main objective of advertisement is to give the potential customers information that about the products and services offered by the organization. In this case the advertisement can take in the form of print cards, billboard among others. The advertisement can help to promote product awareness where it can allow the company to educate the consumers on the various benefit of purchasing the company’s products. In relation to this proper advertisement can help the customer to compare the prices of products offered by different companies. Moreover, proper advertisement will help to assure the customer that the business is still around and hence ensure that the business retains their customer. Most importantly proper advertisement will help to promote image of the company and hence boost the morale of the employee.
  • Email
  • Use of email is one of the fastest and in expensive ways of communicating with the business customers. In this case the business only requires using the available email address to send information to the customers about new products that they wish to introduce to the market (Maric & Stojanovic, 2008, p.3).   The precise targeting available in this media plus the personalized nature of the message presented in this case makes this method effective. The customer can also use the method to raise concern about the company products
  • Website
  • Lorna Jane can also use their website to communicate with their customer regarding the products or services they want to introduce into the market (Rita, Lages & Lages, 2003, p.3). Posting the price and feature of new product in the company will therefore help to ensure that the customers are able to make an informed decision.
  • Relationship management strategies
  • The following are some of the strategies that can be used by Lorna Jane to manage their relationship.
  • Building organization capacity
  • In this case the management of Lorna Jane first needs to ensure that they strengthen the internal relationships (Kumar & Reinartz, 2011, p.16). This is to help ensure that the entire staffs in the organization support the goals of the organization. In addition, the management also needs to ensure that they develop and implement strategies that can help to motivate the organization employee to continue working for the organization.
  • Manage the specific relationships
  • After building the organization capacity the next step involves managing the various strategic relationships available in an organization. In this case it is important for the management of the company to manage some of the labor contact, key accounts, and various communication channels. This can help to ensure that the organization is able to maximize their production levels.
  • Developing skills in strategic relationship management
  • Lorna Jane also needs to sensitize their workers importance of relationship management in the organization. Through conducting a relationship management training the business can be able to explain to their employee the strength and challenges associated with relationship management. Most importantly through conducting the employee training the company can be able to introduce a comprehensive framework for diagnosing, managing and building strategic relationships within the company.
  • Budget of website hosting
  • In order to create a strong company website the Lorna Jane must take into consideration the following components of a good website.
  • Domain name
  • Creation the domain name is the first step in the development of a website. In this case the company can use the Australian domain (com.au) which costs $44.95 for period of two years.
  • Website hosting
  • Various web-hosting companies provide business with an opportunity to install their website on their server, which in turn allows the website to be viewed by customer on the World Wide Web. There are different levels that suit website hosting; however in this case Lorna Jane can use the business hosting which costs $300 per year.
  • Website design
  • The website design depends on factors such as the number of pages, content and complexity and design. It is important for the management of the Lorna Jane to ensure that they incorporate the best web design that can attract the customer to purchase their products. In this case a good website design cost $4000, which is one time cost.
  • Summary of the budget
  • Cost in $
  • Domain name (com.au)
  • 45.95
  • Web hosting
  • 300
  • Website design
  • 4000
  • Total cost
  • 4345.95
  • Available budget
  • 6000
  • Balance
  • 1654.05
  • Evaluation plan
  • The following are some of the evaluation strategies that can be used to investigate the effectiveness of the e marketing.
  • Company sales
  • One of the key objectives of implementing the various e marketing strategies is to increase the sales. In this case therefore in order to evaluate the effectiveness of the strategies the company can assess the changes in the sales volume. Increase in the sale volume in this case can hence indicate that the effectiveness of the e marketing strategies.
  • Interviewing the customer
  • Lorna Jane can also use the interview to assess the effectiveness of the e marketing strategies used. In this case the company can use the use the web-based survey to evaluate the customer response on the effectiveness of the new marketing measures. In relation to this it is also important to evaluate whether the new marketing tactics adopted makes it easier for the business to sell their products.
  • Checking on return on investment (ROI)
  • In order to investigate the effectiveness of the e marketing plan implemented it is important to assess the return on investment of the plan (Phillips, 2008, p.5). In relation to this it is important for the management of Lorna Jane to ensure that they evaluate the cost and benefit of each e marketing strategies. This can help to determine the most appropriate strategies that they need to invest heavily.
  • Conclusion
  • From the above it is evident that one of the strength of Lorna Jane is the fact that the company has managed to establish a strong brand. The company has therefore managed to convince the women that their products make them look and feel good. Some of the opportunities that the business needs to take advantage include the availability of unutilized men clothing market. However, it is also important to note that the company faces threat from the already established companies such as Hugo Boss. Considering the Australian fashion market, it is evident that the demographic market segmentation strategy is the most important segmentation strategy. Moreover, some of the e marketing strategies that can help Lorna Jane to increase on its performance include the development of strong company website. In this case the presence of strong company website can help to ensure that the customers to get information regarding the various products that are offered by company. Various e marketing strategies such as celebrity endorsement can also help to increase the product awareness in the market. In addition the relation management also plays an important role in the implementation of the e marketing strategies. Proper management of the internal and external relationship can help to ensure that the company achieves its various goals.
   
   
   
   
   
   
   
4842 Words  17 Pages
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