10 step marketing plan oblego

10 STEP Marketing Plan for

SM Department Store

Farisha Joy C. OblegoFebruary 2012

http://farishajoyoblego.blogspot.com/

This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.

The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.

When appropriate, data are “masked” so as not to create unexpected conflicts.

The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

Disclaimer


1. SM Department Store PTM are graduating college students to Young Advocators Productive Integrated Services (YAPIS)

2. Who wants to stay fashionable but not too expensive or “pricey”

3. Can choose Robinsons, Rustans and Landmark4. Gap is no Department Store that is more

accessible with various range of merchandise products

5. Market size is 226.44B. SM Department Store niche is 101.90B

Steps 1 to 5

Summary headline of your PTM and market


6. SM Department Store offers fashionable products that are not too expensive but trendy

7. Affordable8. Uses sales promotions (e.g. 3-day sale,

SMAC 2-hr, BDO rebate), advertising & websites

9. It has 42 branches in the Philippines10. Uses low cost producer and niche at the

same time

Steps 6 to 10

Summary headline of the marketing mix & strategy


1. Describe the primary target market (PTM)*

19 – 28 years old Females & males who are looking for

conservative and/or trendy but affordable merchandise products (for own sake and/or family members)

College students to YAPIS who are too busy from school & work

Who wants a one-stop shop


2. My PTM’s NWD

Needs from Maslow’s hierarchyWants determine choiceDemands for them to buy the

productNote: There may be multiple answers for needs, wants demands. Of these answers, underline and use bold font for the best answers. See examples that follow


Describe your PTM needs

7Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

Self-Actualizati

on

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Need clothing to survive

Provide clothing to itself and the family members; Source of family bonding


2. PTM’s needs, wants & demands

Clothing is one of the necessities needed by anyone to help boost its self-esteem.

Young adults to YAPIS who are starting to earn money are keen in choosing their clothes to be affordable.

Good quality, trendy, accessible and complete merchandise are the demands of the customers.


3a. Direct and indirect products that address my PTM’s NWD

Direct – Robinsons, Rustans, Landmark

Indirect – direct-selling, sideline, night markets

Variables – Price, accessibility, fashionable / trendy


Competitive position map for Department Store

Price vs. Location Matrix

More Accessible Less Accessible

High Price

Low PriceLandmarkSM Robinsons

Rustans


Benefit positioning vs. brand map for Department Store

Benefit Positioning vs. Brand Matrix

as of 2011

Functional Benefit SM Robinsons Rustans Landmark

Discounts x x x x

Loyalty Promo x x

Credit Card Rebate x x x

Groupon x

Accessibility x x

Low cost products x x x

Variety of merchandise x x

Customer Service x x

Delivery x x x x

Forex x x

Bills Payment x x

Gift Cards x


4. Identify the gap between customers and competition

SM is the only department store that can:

provide discount on items + 10% SMAC discount for the 1st 2hour + 5% Rebate upon presentation of BDO credit card during 3-day sale

offer Purchase-with-Purchase promo (e.g. Pilates Ball, Cuddly Pillow etc.)

offer Gift-with-Purchase promo address the one-stop shop that the

customer needshttp://farishajoyoblego.blogspot.com/

4. Identify the gap between customers and competition

NWDs that are not being addressed

Competitors are trying to copy the wide range of merchandise and promotions that SM Department Store can offer.

Unique Selling Proposition Affordable prices and quality

products in a one-stop shop that can be easily accessed by anyone


4. Positioning: Brand identity from the maker

We’ve got it all for you!


5b. Estimate the market size using company data

1. 2011: Estimate SM sales is 101.90 Billion

SM – 45%Rustans – 25%Robinsons – 15%Landmark – 10%Others – 5%


5b. Estimate the market size using company data

1. 2011 Estimate SM sales: 101.90B2. 2009 Market Share: 40% of Retail

Industry3. 101.90B / 0.45 = 226.44B


5c. Estimate the market size using customer data

35M (Class B & C) Shop 2x a month (200/year) 100 per person spend 35M X 200 X 100 = 700B


5. Decide on market size in pesos, not in number of people1. Competitor data= 226.22B

2. Company data = 226.44B

3. Customer Usage data = 700B

Use instinct and best business judgment to finalize market size


6a. SM products


6a. Only SM Department Store offers many promotions


6b. What differentiates SM among others?

1. Wide range of merchandise products (e.g. price, designs etc.)

2. Uses loyalty cards to lower bargaining power of buyers (e.g. Thanksgiving, Philhealth members etc.)

3. Tie-up with credit cards to increase sales as well as promote credit card company/ies

4. Tie-up with government services (e.g. NSO) 5. Gift Registry6. Gift Cards (e.g. Birthday, Wedding etc.)


7. Price

Dress P1599.75Belt P699.75Ring 120.50 Dress

P4550.50Dress P1500.75


8a. SM uses the following:** Pls. rank most used, 1-highest use

1

2

4

5

3


8a. SM makes use of commercial…

http://www.youtube.com/watch?v=xlTZ9BChA5g&feature=related







8a. SM makes use of music..

http://www.youtube.com/watch?v=RwfkHZLuIvQ








8a. SM makes use of music..

http://www.youtube.com/watch?v=5_QQvgh0Lfw







8a. Known SM Promotions


8b. How the competitors play the game?


http://www.youtube.com/watch?v=q8W0CVu8lg8







8b. How the competitors play the game?


8b. Competitor promo


9. Place

SM Department Store has 42 branches nationwide

Accept a wide range of tenders (e.g. cash, credit card, debit card, coupons, Sodexo products, Gift Card, Personal Check, Sales Return Voucher/Customer Credit Memo etc.)

Only furniture items are allowed for delivery


10. SM Department Store Winning Strategy

Low Cost Producer Niche


34

SUMMARY


1. SM Department Store PTM are graduating college students to Young Advocators Productive Integrated Services (YAPIS)

2. Who wants to stay fashionable but not too expensive or “pricey”

3. Can choose Robinsons, Rustans and Landmark4. Gap is no Department Store that is more

accessible with various range of merchandise products

5. Market size is 226.44B. SM Department Store niche is 101.90B

Steps 1 to 5

Summary headline of your PTM and market


6. SM Department Store offers fashionable products that are not too expensive but trendy

7. Affordable8. Uses sales promotions (e.g. 3-day sale,

SMAC 2-hr, BDO rebate), advertising & websites

9. It has 42 branches in the Philippines10. Uses low cost producer and niche at the

same time

Steps 6 to 10

Summary headline of the marketing mix & strategy


10 step marketing plan oblego

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