Marketing AGOG Makeup WAC “Victor’ Ion Casual launched Victor Jeans in the early sass as the first custom-made designer jeans in the Philippines. Ion, who used to work for the creative department of an advertising agency, was inspired by European and American premium jeans. Victor jeans are sleek, edgy, comfortable and fashionable. With a knack for branding, Ion developed a “V” logo to identify his brand. This “V” is predominantly seen throughout the jeans: the belt loop, the back pocket stitching, the buttons and the rivets.
The jeans are well made inside and out, with clean (no loose threads) and precise tailoring, custom- dad for the consumer. Thus, the fit is impeccable. In terms of design, Victor regularly comes out with new styles, all limited editions. Ion has a good design aesthetic, embellishing his jeans with a variety of materials leather, rubber, metal, etc. Consumers can also choose among dozens of denim materials and colors, local and imported alike. Furthermore, a consumer has the option to One’s some of the design elements to further personalize the jeans.
In the end, a basic design can be modified by the consumer to his own liking. Thus, Victor Jeans are not only comfortable; they are very stylish and unique. Victor Jeans’ prices are high compared to average off-the-rack jeans like Levies, but affordable compared to premium and imported jeans like Diesel, 7 For All Mankind and Lucky Brand (refer to the price chart below). Victor stores are well designed: sleek, trendy and modern. To bring people into his stores (which are located in top malls like Podium, Greenbelt & Trainman), Victor relies on word-of-mouth and below-the-line marketing (I. . Press releases, interviews, parties, etc). Ion Casual also made himself a local celebrity and society figure frequenting parties, events and top party establishments in the country. His clientele of celebrities, socialites, and prominent personalities also help in developing the brand. Ion’s advertising background is evident in his command of the marketing mix. Needless to say, for the first 5 years of Visitors existence, it enjoyed rapidly growing brand awareness, sales and repeat purchases. However, two years ago, a new brand of personalized designer jeans entered the market.
Founded by a bunch of fresh grads from Atone, Defaced Jeans was launched. Offering the same customizable and stylish features of Victor, Defaced competes on price. Their signs are more basic, compared to the edgy style of Victor. Defaced, which also has its own edgy logo, offers a wide array of mostly local materials to choose from, albeit lower in quality, compared to Victor Jeans. Instead of high-end malls, Defaced chose a more affordable location to house its store, inside an old building in Mile-Long Magmata. The store is amidst several advertising agencies and video production houses.
The store, unlike Visitor’s sleek and modern design, is more rock-and-roll. Music videos are played, robot-toys are displayed, and music and art coffee table books are littered round the store. The staff is composed of fresh-out-of-college, Indies-type “kids”. True enough, Defaced markets itself more to the “GUI” & “Cuba X” (counter) culture, aligning with local bands, filmmakers and artists. Like Victor, Defaced has caught the eye of the local press, being featured in magazines, newspapers and television. All these have made Defaced successful.
You, being the marketing manager of Victor, notice that Defaced had been eating from your market share. Customers who were once loyal to Victor, buying 2-3 pairs of jeans per year, have stopped buying. One day, you see one of your pop customers wearing a pair of Defaced Jeans. You corner him and ask why he has switched brands. Reluctantly, he tells you that Defector’s price is just too attractive compared to Victor Jeans’. You answer with an impassioned speech about your jeans, its high quality materials, impeccable tailoring and limited-edition designs.
Your customer just shrugs his shoulders and tells you “Oh well, guess I’m fine with Defaced. “You head back to the office realizing tattoo need to do something to arrest this frightening trend. What would you do? Some additional information: http://viktordenimrepublik. Bloodspot. Com/ l. Problem: The appearance of a competitor brand, “Defaced”, is eating away at the market share of Victor. Defaced also offers personalized designer jeans, but they are doing so at a lower price. Defaced offers customizable and stylish features for jeans, though their designs are more basic than the edgy style offered by Victor.
Defaced is able to sell at a lower rate because they have a lower quality of jeans and offer mostly local materials. Defaced has a different target market compared to Victor Jeans; Defaced caters to the “GUI” & “Cue boo X” (counter) culture or the “Indies” consumer, while Victor Jeans sells to he high-end modern and stylish consumer. Despite this, Defaced has eaten away at Visitor’s market share, with top customers of Victor Jeans moving away from the brand and patronizing Defaced Jeans instead.
When asked, a top consumer said that the lower price of Defaced Jeans was the main reason why he switched brands. II. Strategic Alternative Course of Action and Analysis: 1 Change the marketing mix currently being employed by Victor Jeans. As of now, Victor Jeans relies on below-the-line marketing which makes use of press releases, interviews, parties, etc. This has been effective because of Ion Callus’s Status as a celebrity and society figure, which brings awareness to the brand. With the appearance of a competing brand, Defaced Jeans, Victor Jeans cannot rely on its old marketing anymore.
Defaced Jeans makes use of print and TV advertising; Victor Jeans, which caters to the higher-end consumer can advertise in fashion magazines and create TV ads as well. This is to increase brand awareness and capture more consumers. 2. ) Change the brand – offer a cheaper line, as well as an off-the-rack option. Will capture another market segment Victor Jeans can opt to expand its clothing line. Aside from offering just high-end customizable jeans, they can also offer a cheaper line of customizable jeans, which uses local materials.
In addition to this, Victor can also expand to include an off-the-rack line of jeans, which will also be sold at a cheaper price. With the different variety of jeans offered at different price ranges, Victor Jeans can capture new market segments and boost its sales. With the new released lines, Victor Jeans can also open its stores in other places aside from high-end malls to be able to reach its new target markets, which are the consumers who buy off-the-rack jeans, as well s consumers who buy pricier customizable jeans. 3. Buy Defaced Jeans out Since Defaced Jeans is just a new brand, run by Atone students, Victor Jeans can offer to buy the brand from them. In this way, the company will no longer be threatened by the shifting of the market to the other brand. The downside to this strategy would be that perhaps Defaced Jeans is just a trend; eventually, sales will dwindle and buying Defaced Jeans might turn out to be a bad investment in the long run. Ill. Recommendation/Justification: The action to be taken should incorporate both numbers 1 and 2, which are: hanger the marketing mix and change the brand.
Changing the brand by expanding the clothing line or variety of jeans being offered is a good strategy because the brand will capture other market segments and boost its sales. Creating a cheaper line of customizable jeans in the same price range as Defaced Jeans will place that certain line of Victor Jeans on a level playing field against the competitor. The main reason given by consumers who are switching to the Defaced Jeans brand is because it is cheaper; they do not mind the lower quality offered by Defaced Jeans. With this new line, Victor Jeans will capture its old consumers back and gain new consumers as well.
Needless to say, creating another line of off-the-rack jeans will cater to a whole new different market segment, which will be good for the company. Changing the marketing mix employed by the company is also a good strategy because they may have saturated the avenues that they have been using for the past five years. With the use of print and TV advertising it will capture other consumers who make use of those types of media and increase brand awareness. With the new lines of jeans being released by Victor, print ND TV advertising will also help get the word out that there are such things being offered.
The third strategy, buying out Defaced Jeans, was not chosen because of its risky nature. Defaced Jeans may just be a trend; therefore, it may be a bad investment for the company. IV. Implementation strategy: To implement the first two strategies successfully, Victor Jeans should focus on preparing to release the new lines of jeans before it makes use of its new marketing strategy. Victor Jeans can also opt to name the different varieties of jeans with different names to differentiate them from each other, but they loud all still be under the Victor Jeans brand.
Upon releasing the new lines of jeans, the company should also release advertising in fashion magazines and in TV commercials to spread the awareness of the brand and the new varieties of jeans being offered by the company. The next step would be to start opening stores in different locations. Perhaps if the location is not a high-end mall, that certain branch would only offer the cheaper lines of off- the-rack jeans, as well as the cheaper customizable jeans line. In this way, Victor Jeans can capture a larger market share and compete better with Defaced Jeans.