Marketing strategies

    Marketing strategies to launch Kora will be broken down into four different groups: product, pricing, place, and promotion. Product: Kora will offer several clothing styles with inclusive sizing, ranging from XS to XXL. The line will include clothing and accessories in styles and colors that are popular in the fitness sector. The collection will include a wide variety of: • Apparel: Shirts, shorts, leggings, sports bras, hoodies, sweatshirts, joggers, jackets • Accessories: Socks, gloves, baseball hats and visors, water bottles, towels, gym bags, small workout equipment (e.g., jump ropes, resistance bands, yoga mats) Besides the physical clothing items themselves, a key selling aspect of this brand is the overall high-end feeling it evokes. Customers are not only paying for the clothing but also the brand name. Kora will also have a few key pieces that we expect to be best sellers and will be considered the brand's core products. The first would be the PowerAir leggings and Airbrush crewneck sweater, which will be advertised as everyday staples that come in over ten different colors, such as pastel purple, olive green, and dusty pink. In addition, the PowerAir set, which is a matching sports bra and legging set sold in popular colors, will capitalize off of a popular trend to appeal to customers. A section of the store will be dedicated to Kora products, preferably next to the junior's and women's clothing departments, to attract shoppers from both markets. The in-store presentation will highlight the trendy designs of the clothing with mannequin displays that showcase the outfits and décor that is popular among the younger demographic, including white and pastel color schemes and greenery. Personal selling by a team of specially trained Nordstrom employees will provide personalized services to Kora's customers, such as finding the right size or recommending the best product for their needs. These employees will also wear Kora products to provide a real-life model for the clothing. All packaging for Kora products will showcase the Kora logo and be made from 100% recycled material to appeal to a more environmentally conscious consumer. Kora clothing items will also come with a Quality Guarantee, which allows customers to easily return or exchange clothing items with manufacturing defects or substantial performance issues. Additionally, there will be an in-store tailoring service that provides free hemming and low-cost alternations for all items in the clothing line. Pricing: Kora will be a moderately priced clothing line to provide a high-fashion feel while also fitting in the budget of younger shoppers. Tentative pricing is as follows: • Tops: $15 to $40 • Bottoms: $30 to $70 • Accessories: $15 to $45 For example, the Airbrush crewneck sweater will be priced at $40 and FreedomLift running shorts will be priced at $30. Overall, shoppers are willing to pay more, given that the price point in the athletic clothing market is higher than the market for other types of clothing. In terms of other firms in the fitness clothing market, Kora's pricing strategy will establish itself as the middle ground between higher-end brands, such as Alo and Lululemon, and generic budget brands, such as those found at Target and Walmart. Thus, Kora's price point will be higher than budget brands but lower than other luxury fitness brands. For example, Lululemon's best-selling leggings are priced at $98, while Old Navy prices their budget workout leggings at $35. Kora will sell their staple PowerAir leggings for $65. This middle ground pricing will be standard for most Kora products and is justified as it attracts customers who want a higher quality piece than what discount retailers offer but is less expensive than other high-end brands. By offering the best of both worlds, Kora hopes to gain a larger market share within the fitness sector by attracting customers that regularly shop at budget or high-end activewear companies. As market share grows over time, the brand's price points can increase to provide larger profit margins. In addition, given that we are targeting a younger demographic, we will offer a 10% student discount that can encourage students to purchase our products. Place (Distribution): The two main channels where Kora will be sold are physical Nordstrom stores and the Nordstrom website. The brand and designated section of the store dedicated to the brand will be made available in most Nordstrom stores nationwide, expanding to all 468 stores as market share grows. The line will also be made available on the Nordstrom website, with the added option for in-store pickup or free expedited shipping for the first two months following the initial launch to make the purchasing process as quick and simple for the customer as possible. The ability to extend the Nordstrom website onto social media sites such as Facebook and Instagram, where customers can directly buy the items, will also provide an accessible shopping channel. Promotion: Kora's promotional activities will be extensive upon initial launch to spread awareness of the brand. In-store promotion of stores in select larger markets such as New York and Los Angeles will include hosting a special event upon initial launch with a live DJ, free tshirts, and photo booths to attract customers to shop the new brand. This event will also leverage social media by encouraging customers to post content with the hashtag #KORAAthletics and tagging our pages. In addition, the free yoga sessions led by experienced yoga instructors will occur periodically in these larger stores after the initial launch. After the yoga session, participants will receive a coupon exclusive for Kora pieces to incentivize purchases. During the yoga sessions, photo booths and "Instagrammable" photo-ops will encourage visitors to post about the brand and increase social media exposure. Marketing communication outside of the store will primarily be on social media. The core message of these advertisements will be to promote Kora's brand name and its main selling points of high-quality athletic goods that follow the latest trends for a younger demographic. Kora will leverage the use of social media influencers and celebrity spokespersons, including well-known athletes such as Naomi Osaka, to make posts on other social media sites popular among a younger demographic such as Instagram, TikTok, and YouTube. Celebrities and influencers will post content of them wearing and showcasing Kora products on their social media platforms during the initial launch week to reach as many people as possible. The main Social Media Plan will take place on Facebook, where regular posts will advertise the products16. Facebook will also be a convenient forum for customers to chat with Nordstrom representatives to ask questions or submit comments they may have, providing a more personalized customer experience. Nordstrom's other social media accounts, such as Instagram and TikTok, will also heavily promote Kora through posts on their account and sponsored posts that appear on users' feeds. In addition, sponsored posts that appear on users' feeds as advertisements will inform customers about the brand and the different offered items. Customers will have the ability to buy directly from the social media platform or can be redirected to the Nordstrom website to browse the whole collection. Advertisements will also appear as commercials on television and streaming services, billboards, and side banners on different popular websites, such as YouTube. Customers will also be able to sign up for Kora's emailing list, which will deliver coupons, free workout tips and videos, and exclusive news about upcoming promotions straight to their inbox. 6.0 Financials Our financial analysis uses the average selling price of Kora clothing items which is $50. After an average cost per unit of $20, which includes the cost of labor, materials, quality testing, and distribution, the average gross profit per unit is $30. Of the 41,408 college students in the Fullerton area, 58.5% are female, which results in 24,224 individuals that are in our target market.17 With an average of 65% of college students that work out, the estimated number of purchases per year is 15,745.18 We predict consumers will buy an average of 15 pieces a year due to changing seasons and trends. Our estimated market share is based on the current market shares of other major athletic clothing companies. For example, Lululemon and Under Armor have market shares of 1.9% and 4.1%, respectively.19 As we expect to start with moderate success and grow over the years, we expect market shares of 1%, 1.5%, and 2% in the first three years of operation. Due to the major force of this marketing campaign being social media, most of our costs will be from advertising. Over the first three years of operation, Nordstrom will spend a cumulative