Introduction Established in 1985, nichii (formerly known as Nichii Fashion City Sdn Bhd) traces its humble beginnings back to three boutiques located within Kuala Lumpur, the capital city of Malaysia. Since then, nichii has grown to become one of the major trendsetters and leads in exemplify Malaysian fast and purse-friendly fashion with its labels now sold at a over 30 outlets in Malaysia, Singapore and Saudi Arabia. The re-brand of the label, which is known as nichii, was established in 2005 after the decision was made to streamline all its retail offerings.
In 2006, there were six nichii outlets in Malaysia and in that same year the label set foot in Singapore with the opening of an outlet I the iconic mall, Vivocity. By the end of 2009, nichii’s merchandise are available at 21 locations- 18 outlets in Malaysia and three outlets in Singapore – with a total combined retail floor space of 190,000 square feet. Building on its strength in manufacturing, designing, planning and sourcing, August 2010 marked a huge milestone for nichii as the fast-fashion abel set foot in the Middle East region with the opening of a franchise outlet in Riyadh, the capital city of Saudi Arabia.
With the establishment of the first nichii outlet in the Middle East, the label continues to be driven in it aims to expand nichii’s fashion presence in Singapore, South East Asia and China via its franchising programme. Nichii is known by and far as a label that provides up-to-the minute and extensive range of apparel and accessories for women and men. Question Nichii, established in 1985 is a fashion retailer with 21 outles, 18 in Malaysia and 3 in Singapore.
They position themselves as a fast fashion label with the objective of becoming a major trendsetter and lead the fashion industry with their ‘fast and purse friendly fashion’ with fashion labels being sold at all their outlets in Malaysia and Singapore. In 2010, Nichii expanded to the Middle East with the opening of a franchise outlet in Riyadh, Saudi Arabia. With this expansion, Nichii continues to be driven in its aim to expand Nichii’s fashion presence in Singapore, South East Asia (Indonesia, Vietnam and Thailand) and China.
As a Marketing Manager for Nichii, you understand that it not enough for a business to have good products sold at attractive prices. To generate sales and profile, the benefits of products has to be communicated to customers. It is the 4th ‘P’ of the 4Ps of Marketing physical products. A business’ total marketing communications programme is called the ‘promotion mix’ and consists of a blend of advertising, personal selling, sales promotion and public relations tools. Your boss has asked you to give a proposal to your boss about the promotion mix. . Define in detail the four main elements of the promotional mix. 2. List out the advantages and disadvantages of each elements of the promotions mix. List at least 2 advantages and disadvantages of each of the elements. 3. Give your recommendation as to which element of the promotion mix that Nichii can use in it’s plan to expand into South East Asia, particularly in countries like Vietnam and Indonesia and give reasons for your choice of elements. Four elements of the promotional mix
Promotional mix is about subset of the marketing mix in which marketers attempt to achieve the optimal blending of the elements of personal and non-personal selling to achieve promotional objectives. A total marketing communication plan is known as the “promotional mix, including advertising, personal selling, sales promotion and public relations tool for mixing. The four key elements of a more detailed description of this revision, we describe the promotional mix. There are four main aspects of a promotional mix. Advertising – Any paid, non-personal communication through various media about a business firm, not-for-profit organization, professionals, social agencies, product, or idea by a sponsor identified in a message that is intended to inform or persuade members of a particular audience. Presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Newspaper, Magazines, Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails. Personal selling – Personal Presentations by a Firm’s Sales Force. Seller’s promotional presentation conducted on a person-to-person basis with the buyer. A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Involves an individual acting for a company by performing one or more of the activities included have prospecting, communicating, servicing and information gathering.
Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone. * Sales promotion – Marketing activities other than personal selling, advertising, and public relations that stimulate consumer purchasing and dealer effectiveness. Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability and short term incentives to encourage sales.
Examples: Coupons, sweepstakes, contests, product samples, product demonstrations, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. * Public relations – Firm’s communications and building good relationship with its various publics by obtaining favorable unpaid publicity, building up a good “corporate image” and handling or heading off unfavorable rumors, stories and events. Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media.
Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars. Advantages and Disadvantages each elements of the promotional mix Mix Element| Advantages| Disadvantages| Advertising| * Good for building awareness * Effective at reaching a wide audience * Repetition of main brand and product positioning helps build customer trust * Reaches a large group of potential consumers for a relatively low price per exposure. Allows strict control over the final message * Can be adapted to either mass audiences or specific audience segments| * Impersonal – cannot answer all a customer’s questions * Not good at getting customers to make a final purchasing decision * Does not permit totally accurate measurement of results * Usually cannot close sales| Personal Selling| * Highly interactive – lots of communication between the buyer and seller * Excellent for communicating complex / detailed product information and features * Relationships can be built up important if closing the sale make take a long time * Permits measurement of effectiveness * Elicits an immediate response * Tailors the message to fit the customer| * Costly – employing a sales force has many hidden costs in addition to wages * Not suitable if there are thousands of important buyers * Relies almost exclusively upon the ability of the salesperson * Involves high cost per contact| Sales Promotion| * Can stimulate quick increases in sales by targeting promotional incentives on particular products * Good short term tactical tool * Produces an immediate consumer response * Attracts attention and creates product awareness * Allows easy measurement of results * Provides short-term sales increases| * If used over the long-term, customers may get used to the effect * Too much promotion may damage the brand image * Is non-personal in nature * Is difficult to differentiate from competitors efforts| Public Relations| * Often seen as more “credible” – since the message seems to be coming from a third party (e. g. agazine, newspaper) * Cheap way of reaching many customers – if the publicity is achieved through the right media * Creates a positive attitude toward a product or company * Enhances credibility of a product or company| * Risk of losing control – cannot always control what other people write or say about your product * May not permit accurate measurement of effect on sales * Involves much effort directed toward non-marketing-oriented goals| Give recommendation element of the promotion mix that Nichii can use in it’s plan to expand into South East Asia, particularly in countries like Vietnam and Indonesia and give reasons for your choice of elements. My Recommendation is Personal Selling, Sales Promotion and Public Relations of the promotion mix that for Nichii can use in its plan to expand into South East Asia, particularly in countries like Vietnam and Indonesia. The Reason for 3 elements (Personal Selling, Sales Promotion, Public Relations) of the promotion mix is
Reason for Personal Selling effective because salespeople can probe customers therefore obtain a relatively high degree of personal attention that able to learn more about their problems, adjust the marketing offer to fit the special needs of each customer, negotiate terms of sale, face-to-face sales meeting gives the sales force chance to demonstrate the product for customer and build long-term personal relationships with key decision makers. Highly interactive that lots of communication between the buyer and seller. Relationships can be built up to important and frequent meetings between sales force and customer provide an opportunity to build good long-term relationships but if closing the sale make take a long time.
Reason for Sales Promotion is Rapid growth in the industry has been achieved because Product managers are facing more pressure to increase their current sales, Companies face more competition, Advertising efficiency has declined, Consumers have become more deal oriented. Sales Promotion also can stimulate quick increases in sales by targeting promotional incentives on particular products and also a good short term tactical tool. Reason for Public Relations is The Major functions of Public Relations are Press Relations or Press Agency, Product Publicity, Public Affairs, Lobbying, Investor Relations and Development. The Public Relations of the advantage are believable. Often seen as more “reliance” since the message seems to be coming from a third party (e. g. agazine, newspaper) and the cheap way of reaching many customers if the publicity is achieved through the right media of different kind of ways. Conclusion Throughout this Nichii is a brand fashion retailer that let me more understand and learned the procedure of analyze the fourth type elements of a firm’s promotional mix – personal selling, advertising, sales promotion and public relations. Besides that also learned for characteristics that determine the success of the promotional mix and identifies the objective of promotion and describes the importance of developing promotional budget and measuring the effectiveness of promotion with the business, economic, and social aspects of promotion with differ country.
References Internet 1. http://www. nichiifashioncity. com. my/ 2. http://tutor2u. net/business/marketing/promotion_mix. asp 3. http://en. wikipedia. org/wiki/File:Promotional_Mix. jpg 4. http://en. wikipedia. org/wiki/Promotional_mix 5. http://www. cengage. com/asiahed/productlist. do? disciplinenumber=3070&courseid=MK12&sortBy=copyrightYear&sortByShow=all&codeFlag=true Books Contemporary Marketing 2005 by Louis E. Boone and David L. Kurtz. Appendix 4 elements of Promotional Mix group with Marketing Communication Mix. Sample of Sales Promotion. Nichii Advertisement of official website. Nichii Banner Ads in Bukit Jalil LRT Station.
