Marketing Principles | Western Technical College | Fall 2021
#BuhiMom Tote Campaign
The “Marketing Mix”
Product
Price
Place
Promotion
By participating in Mimic Marketing Principles, I was able to experience the content we learn in class in the context of of a digital marketing professional. Key concepts I learned were how to develop a “marketing mix” using the four Ps of marketing: product, price, promotion, and place.
Executive Summary
Buhi Supply Co. is an e-commerce and retail bag supplier. It specializes in backpack, purse, wallet, satchel, and duffel products. Basically, if it’s a bag of any sort, Buhi makes it.
Buhi’s business goals are to find bags that resonate with a design-conscious audience, manufacture them at affordable costs, and sell them for a profit at competitive prices.
Buhi aims to design functional bags that evoke nostalgia, bags with enough personality for even the choosiest of Millennials. This goal has been a driving factor that has helped Buhi’s sales grow significantly since it was founded in 2009.
Buhi bags offers organizational tote-bags with customizable compartments to fit your family’s needs. Our high-end modern aesthetic looks like it came straight off the runway.
Positioning Statement: This tote is perfect for 30-39-year-old moms who are interested in looking stylish and family activities. It’s affordable and functional, making it ideal for staying on trend and keeping organized.
Marketing Objective
- Increase brand authority
- Grow visibility in search engine rankings and social media platforms
- Increase conversion rates
Business Objectives
- Reduce operational costs
- Grow market share
- Increase Revenue and ROI
Competitive Advantage
We provide moms with a chic organizational companion to carry all her family’s essential to-go items.
Competitive Set:
| Karen Conrad | a.m.a. | Liz Mayborne | Flossi | Herschey |
| Ned Laker | Kate Shade | Mike Korz | Buggy | L&M|
A model’s bag on the outside, a mom’s bag on the inside.
Vogue Magazine
- Industry: Handbag
- Major products/ services: Tote bag, backpack, purse, wallet, satchel, and duffel products.
- Product of focus: Women’s organizational tote bag
- Target customers: Fashion-conscious Millennial moms
- Distribution channel(s): Jenny & June, City Bags, Fashion House, Buhi website
- Headquarters: Los Angeles, CA
- Year founded: 2009
- Number of employees: 310
- Annual revenue (estimated): $183,000.00
Segmentation and Targeting
Buyer Persona: “Soccer Mom Sam”
- Age 30-39
- Heterosexual
- Married
- Job in professional environment
- Kids aged 8-16
- Upper-middle class
- College degree
- Social Media user
The target customer for our Buhi tote bag is Soccer mom Sam. She’s fun, fashion-forward, and the whole family depends on her to keep them organized. Sam needs to invest in a quality handbag that will help her manage her family’s busy agenda. Sam takes pride in being a mom and wants to do it effectively, while still looking fashionable.
Marketing Information and Research
Before developing strategies for my marketing mix it was essential to do primary and secondary market research to really understand my target customer. This included researching attitudes, behaviors, preferences, lifestyle and needs. The research also gave many insights on the handbag industry in general, including trends and advertisement spending.
Primary Research
Secondary Research
Global high-end handbags | Reynolds Research
Handbag Advertising rends in North America | Reynolds Research
Insights on Tote Bags in North America | Reynolds Research
Research Questions
- Which problems should we be solving for our customers?
- What is the max/min price our target customer is willing to pay for product?
- What improvements can we make to our handbag to make them more attractive to our target?
- What types of promotions would influence a purchase decision?
- How can we make it easier for customers to find our product?
Research Recommendations
- Conduct quarterly surveys about preferences and attitudes toward handbags, and our brand in order to stay up-to-date with shifting trends.
- Continue running promotions to support children’s charities.
- Encourage buyers to post reviews to monitor product feedback.
- Compile internal data into a share database and conduct marketing analytics to understand patterns in customer behavior, market trends, and other insights.
- Collect data from the U.S. Census bureau to find out which neighborhoods our target lives in, and apply geographic segmentation strategies.
- Explore syndicated market options to gain insight into how our target is influenced by society.
- Adjust questionnaires to include a greater mix of open and closed ended questions about target’s daily routine.
- Conduct research on tote bag ergonomics to ensure max comfort.
Product Strategy
- Color: Black
- Size: 18 x 20
- Material: Faux Leather
- Cost per unit: $36
Our target customer wants aesthetic features that resemble high-end handbags, but inside the bag is ample space and organizational pockets. Preferred material is faux leather. High-end handbags are predominantly leather, so faux leather offers a similar look at a cheaper cost. It is also durable and spill resistant which is every mom’s dream.
Pricing Strategy
Final Price: $159.99
The final price I decided on was 159.99 in order to meet my target revenue range. It is a mid-way point between $100-$200 and utilizes the psychology of the number nine. The cost per unit is only $36 to make.$100-$200 is a high enough price to indicate a quality product. It is also high enough to foster a brand following.
Place
Distribution Channels
Fashion House
Units: 370
Revenue:$27,750.00
Margin: $14,430.00
City Bags
Units: 320
Revenue: $25,600.00
Margin: $14,080.00
Jenny & June
Units: 310
Revenue: $21,700.00
Margin: $10,540.00
Promotion
Buhi’s highest performing social media channels include Facebook and Instagram. These are the channels most utilized by our target audience. Other successful channels are magazine ads, influencer marketing, and affiliate marketing.