Reef Girl’s Fashion Line

Adriana Acosta| Zahra Bajgiran| Nayan Doshi| Alvina Jumani |Mikhail Karasik|

Rui Ma | Sherwin Sulit

December 5th, 2011

Agenda• Industry Overview/Trends• Product Offering/Market Research• Marketing Objectives/Financial Objectives• Keys to Success/Critical Issues/Marketing

Programs• S.W.O.T. Analysis• Marketing Suggestions

Market Summary

• Overstimulated consumers; especially millennials (Gen Y)

• Significant decline in demand for high-price-point products

• US retail sales for clothing and clothing accessories increased 5.9% relative to 2010

Footwear Industry

• Demand is driven by fashion and demographics• Branding is an important differentiator

– Influences market credibility– Brand names are the most valuable asset of

shoe companies

Product Offering

1. Sophisticated design and quality materials

Price Range $42-$54

Product Offering

2. Sophisticated design and synthetic materials

Price Range $28-$42

Product Offering

3. Simple design and synthetic materials

Price Range $24-$27

Market research

• The market size for flip flops in US is 200 million pairs per year ($2 Billion)

• “Girls Fashion” age group market is estimated at $200 million

• Current Reef’s market share is less than 3% – Growth opportunities

Market research

• Survey results

Where do you buy your sandals? Department stores – 65% Specialty stores – 28% Online – 5%

• Girls Fashion collection is not present at department stores

Mission

• Reef is the exotic beach brand with its roots in an authentic surf heritage and a mysterious sensual spirit.

• Reef’s purpose is to create innovative, comfortable products through a free-thinking, inspirational and soulful culture.

Reef’s sandal is a brand that I…

When shopping for sandals I generally look for…

How much do you normally pay for your sandals?

Market Objectives

• The main marketing objective is to expand Reef’s brand awareness.– 14-18 year old females (High school

students)– Stronger relationships– Brand images

Financial Objectives

• Increase profits– Increasing volume– Squeezing product profit margins

Target Markets• Girl’s fashion line-current target consumers:

16 to 24 years old, Gen Y.

Keys to Success

• Effective strategy starts with market research• Strong brand image• Deliver the right massage to the right customer

at the right place• Building and maintaining relationships • Maximizing customers’ life time value

Critical Issues• Communicating the brand message to target

market

i. Redefine the product line

ii. Increase awareness

iii. Selling proposition

iv. Stimulate the demand

v. Effective point of sale strategy

vi. Control and monitor the performance of each strategy

Marketing Program

• A coordinated, thoughtfully designed set of activities that help companies achieve their marketing goals

• Product• Price• Place

• Promotion

S.W.O.T. Analysis

• Strengths—Quality, trendy, diversification, brand, image, socially responsible, well-known

• Weaknesses—Awareness, price, variety, marketing

• Opportunities—Expand marketing in Brazil• Threats—Depressed global economy,

competition

Marketing Suggestions

• Reef's Sandal is the brand that I ...o Always wear: 8%o Sometimes wear: 12%o Know of and like to try: 25%o Only heard of: 12%o Never heard of: 43%

Lack of Awareness• Fashion Magazines: Teen Vogue, InStyle.• Sponsor fashion events: Fashions Night Out

LA• More Online Awareness:

– Fashion Bloggers• Facebook

• ‘Go to the beach in style’

Pricing & Competition

• Lower Prices.• Promote its product as better quality and

more comfortable (insert Picture)• Outsource to department stores: Nordstrom

& Macy’s

New Brand/Co-brand• Spin-off the fashion line under a new brand

name.– Will bring a new image– More costly now, but beneficial in the long

run• Co Branding

– Seen a lot within the industry due to economic reasons

Drop The Line• If Reef, after looking at its financials, feels as if the product is not

meeting its goal should consider dropping the line.

• Would be the last recommendation we would suggest, because this line has the potential to do well if the suggestions are implemented correctly.

Plan of Action

• Dynamic Pricing

• Advertise your product within high schools and colleges.

• Beach Clean Ups & Beach Fashion Shows.

• Co-Brandingo Joint-venture co-branding strategy with a haute couture

designer, such as the Japanese brand and designer Hanae Mori.

o Butterfly Perfume by Hanae Mori

Thank you.