MARKETING PLAN
Contents
Market Segmentation & Targeting
Situation and Company Analysis
Ethics and Social Responsibility
Marketing Information and Research
Customer Decision-Making Profile
Positioning and Differentiation
Promotion: Integrated Marketing Communications Strategy
Skims have unique shape wear styles that competitive brands don’t offer. To include all customers, Skims offers different styles of shape wear with inclusive size range, and a variety of nude skin tones to make all women feel included and beautiful.
Skims have unique shape wear styles that competitive brands don’t offer. To include all customers Skims offers different styles of shape wear with inclusive size ranges, and a variety of nude skin tones. In addition to shape wear they also offer soft and affordable lounge and sleepwear.
Women between the ages of 17-40s or ages that are influenced by media marketing. Targeting these products to their customers Skims uses social media because their target segment uses this tool so often that advertisements can be reached easily.
Skims competitive advantage is that its shape wear line is the first of its kind to include such a wide range of sizes from XXS-5XL. Having a larger size range makes all women feel included when it comes to beauty. Skims also has a big advantage over its competitors because they have included nine different nude skin tone shades. Women of all shades can now feel they are actually being represented by a shape wear company that offers nude tones that matches their skin. I have seen in the past women who are very pale skin not being represented and women on the other side of the scale be very underrepresented. Skims has finally provided a product that all women can enjoy and feel beautiful in
To women, Skims is the only shape wear that smooths, enhances, lifts, and tones women’s bodies in a large assortment of sizes and nude shades, because of this Skims is an answer to a shape wear market that has left women out when shape wear is supposed to make women feel confident and strong in their bodies.
Skims main objective is to help women feel beautiful and comfortable in their own skin. Shape, lounge, and sleepwear isn’t a necessity, but it is an enjoyment. Women want to feel beautiful and represented in a market that sometimes forgets there are a lot of unique and diverse women out there. Skims are here to make everybody feel included and irresistible.
Company Name: Skims
Industry: Womens clothing
Headquarters (city, state, country): Culver City, California
Year founded: 2019
The number of employees: 25
Annual revenue (estimated): $400,000
Major products and/or services: solution wear, underwear, bras, loungewear, and accessories
Target customers: Women
Distribution channel(s): Website and Nordstroms
Key competitors: Sassybox, Spanx, Curvy Kate, Heist-studios
Link to website: www.skims.com
This product helps women feel comfortable and beautiful in their own skin
Women
Women aging between 17-40 yrs old, being affordable and comfortable, an online presence
Demographic-They definitely market towards women, income, and age range
Psychographic- There is a lifestyle and certain look that they present as a sleek and modern image that women want
Behavioral- Fans and loyal customers wait for launches of new items because they are so hyped and wanted by Kardashian-Jenner fan groups because they want what they are wearing or how they look
Psychographic- Kim Kardashian has always marketed her image as a brand. She now has made a product that she herself wears and that you will look and feel like her. Women are more drawn to that look now more than ever because of social media. Now you can have that look and it’s available in your skin tone, size and it’s affordable.
Right now with COVID-19 our economic environment has been tough for retail. Especially when shape wear and loungewear aren’t a necessary clothing item like new shoes or pants if you need them. I believe brands that have a loyal customer base will still be fine because people still want what they want especially when it’s someone you idolize. “Self care” clothing might not even be affected that much because people are finding happiness where they can.
Skims started with a strong online presence right away. Kim Kardashian has 188 million followers on Instagram. She has changed her whole social media platform as a way to connect and market her line right to her fans. She has also recruited her family members who also have a huge social media influence. Technology plays a large role in helping skims be so accessible
What are the trends in your industry? Are there new entrants in the market? Has a substitute product been introduced? Are there changes in industry practices or new benchmarks to use?
Skims being a smaller private company it does have competitors but that mostly comes from what was already out there. Companies like Spanx, Sassybox, and Curvy Kate are companies that Skims is up against. Most shape wear brands only come in two colors like tan or black or their size range is S-XL. Skims went in a different direction to make all women feel appreciated. They have an innovative style, accessible pricing, inclusive sizing and diverse shades. There is a large market for shape wear and feel good loungewear. I don’t think Skims is large enough to make that big of a difference in shape wear by Target or large corporations because Skims is smaller but it is a nice direction.
Kim Kardashian’s political stance could affect Skims business because their main target is younger women aging from 20-30 but also women with some financial stability. So to have a stance on politics in such a heated time could be damaging to her business. Her husband Kanye West’s actions on politics could also contribute to fans not supporting her anymore. In the beginning she wanted to name her brand “Kimono” which really angered a lot of people because she was once again culture appropriating. She was able to fix that issue but I don’t see these kinds of conflicts going away anytime soon.
Instruction: Complete the table below with descriptive responses and explanation as you answer the questions below, remembering that Strengths and Weakness are INTERNAL to the organization and Opportunities and Threats are EXTERNAL (i.e., C-PEST <competitive, political, economic, social, technological> that are not in their direct control).
HELPFUL Ideas
HARMFUL Concerns
Internal
Strengths
Strong brand presence
Identifiable
Big social media presence
Variety of products
Always coming out with new items
Inclusive in size and nude tones
Soft well made products
Weaknesses
Low stock of items
Sold out a lot of the time
Shape wear is only sold at Nordstrom
Everything is online
External
Opportunities
Inclusive sizes
Inclusive nude tones
Target audience understands and encourage online presences
Large social media influence
Social media advertising
New items often
Shipping all over
Easy communication with online presences
Celebrity can do collaborations
Kardashian/ Jenner family opportunities
Threats
Large companies as competition
In store appeal
Prices $
Not well known among older audiences
Owner Kim Kardashian
Kardashian/ Jenner presences
Skims is offering a new approach to shape-enhancing undergarments. The pieces in the collection are designed to support, lift, and flatter the natural shape of the body.
We strive to make customers look and feel their best. Having garments that are inclusive in shape and diverse in color for every woman.
Kim Kardashian teamed up with Nordstroms in 2019 and Nordstroms said net sales came in at $4.54 billion versus forecasts for $4.56 billion. Full year 2020 earnings are seen in a range of $3.25 to $3.50. Analysts had expected $3.49 a share. So, with the up and coming year and the new ideas and products coming out we think everything looks promising.
Skims if working on sustainable business practices but using all recyclable materials when it comes to packaging. Social responsibility Skims has decided to tackle its inclusive size ranges and nude skin tones. Companies need to consider all women are beautiful and need to be represented.
A problem Skims is facing is about how the solution wear actually fits. After researching a few reviews I noticed a lot of women have commented that even though the shape wear was great, it rolled down when they sat. I think shape wear has this problem because of where the garment started and ends. I do think Skims could work on finding better solutions to fix complaints from customers about fit. Finding better solutions to issues customers have will help with the company's goal to provide great solution wear with happy customers.
Skims store is online so all of her clothing and shape wear has reviews right under the garment. To make effective decisions about complaints is hearing right from the customer on how to fix the problem they are facing. They also have email customer service and any suggestions or help needed by a customer Skims will reach out in 1-2 business days.
One way Skims has done research is using the problem solving approach. Understanding the problems customers have faced with shape wear in the past helps Skims change those views with new designs and styles. Kim Kardashian West was a great voice to use when convincing women her shape wear is different. Looking at reviews straight from the customers helps know where to exactly change what women don’t like. Kim Kardashian also tested all of her shape wear before it came out on her friends, employees and sisters. Having a focus group try everything before it came out also helped understand what needs to be better.
One way Skims has done research is using the problem solving approach. Understanding the problems customers have faced with shape wear in the past helps Skims change those views with new designs and styles. Kim Kardashian West was a great voice to use when convincing women her shape wear is different. Looking at reviews straight from the customers helps know where to exactly change what women don’t like. Kim Kardashian also tested all of her shape wear before it came out on her friends, employees and sisters. Having a focus group try everything before it came out also helped understand what needs to be better.
The first targeted characteristic would be personal and demographic characteristics. Women between the ages of 17-40s or ages that are influenced by media marketing. Skims are not a needed product. The income necessary to purchase these products is upper to middle class. They make products affordable by only producing a limited amount of an item so it won’t be a splurge. The second characteristic would be social and psychological characteristics. Social media influencers market a lifestyle to brands they sell. Kim Kardashian, influencers and other celebrities using social media to target women in a new way. Skims also wants to have inclusivity for women of all different shapes and colors. The third and final characteristic would be situational characteristics. Women who have used Kardashian-Jenner products already have brand loyalty because of the name. But, Skims has opened a new market of loyal customers because women enjoy the unique high-quality of the products. Skims has so many different items customers can frequently use those products daily. From bras, underwear, shape wear and now they just came out with maternity and bridal, so women can find many ways to include skims products into many stages of life.
Two marketing strategies Skims uses to be successful would be urgency scarcity and social proof. Urgency scarcity has really helped make Skims become successful because their items are always sold out. On Kim Kardashian's social media she’s always posting about the next collection she is dropping. So you feel you should run out and buy it before it is gone. Skims also has an email sign up to help keep you in their marketing loop. You’re always the first to know when something new comes out and it's in your size. Another great marketing strategy is social proof. Social proof falls under the category of social media influencers.
Kim Kardashian and her family have made millions on their own marketing items this way. Kim Kardashian has over 180 million followers on Instagram, it was only time until they used that platform to market their own products. Celebrities and influencers have come up with a new marketing angle by showing off each other's products on their individual social media profiles. Beyonce used it in her new Adidas collaboration, Prada and Gucci use it to market their new lines, so now Kim Kardashian has used it to market her products the same way. She sells a lifestyle and look that women want to replicate.
Skims competitive advantage is that its shape wear line is the first of its kind to include such a wide range of sizes from XXS-5XL. Having a larger size range makes all women feel included when it comes to beauty. Skims also has a big advantage over its competitors because they have included nine different nude skin tone shades. Women of all shades can now feel they are actually being represented by a shape wear company that offers nude tones that matches their skin. I have seen in the past women who are very pale skin not being represented and women on the other side of the scale be very underrepresented. Skims has finally provided a product that all women can enjoy and feel beautiful in.
Skims marketing niche is providing high quality shape and loungewear in inclusive sizes and nude tone range. The positioning strategy I would recommend would have to be best fit for the customer and quality. Skims has stated the quality of their products being the highest quality they can be and presented themselves as the ideal fit for the customers personality, style, and approach to fashion. Skims has also said on their website, and I quote “Skims is Kim Kardashian West’s answer to shape wear that actually works. Designed to smooth, enhance, lift and tone- each piece has a solution for every body.” I think this is the correct approach to market to the customers they are trying to appeal to.
To women, Skims is the only shape wear that smooths, enhances, lifts, and tones women’s bodies in a large assortment of sizes and nude shades, because of this Skims is an answer to a shape wear market that has left women out when shape wear is supposed to make women feel confident and strong in their bodies.
Skims does not need to reposition its strategy because it already has its image based on Kim Kardashian West’s brand. Skims is already so identified by its target segment based on loyal fans and a product image.
Skims has created a loyal customer base as the company has grown. From the beginning Kim Kardashian West has created her own image and brand. She has created an image and style women thought was beautiful and wanted to replicate. When she created Skims she wanted to create it after her own image and style. Having Skims be inclusive for all body types helped expand her target customer base.
Customers are really loyal and love Skims. I personally didn’t understand Kim Kardashian West’s personal brand before but I love her Skims brand now. The quality, inclusivity, and wide range of high-end products help women go back for more. From Skims website to social media to just the great packaging. It all says a story of how women want to look and feel
Skims shape wear promise is a good fit that actually works for every body type.
Skims is: Strong, Inclusive, Flattering, Soft, Comfortable, Snatch
Skims is never: Uncomfortable, Ugly, Wild colors or patterns, Confining
As said in the reading Kim Kardashian West has created a personal brand. She has developed a brand image and has marketed her views and goals. Skims is a company based off of Kim’s personal brand, but I think Skims has used private labels as well. Skims has been able to compete against its strongest competitors even if they aren’t strongly branded. I think Skims could also use “No Brand” branding. It would contribute to Skims success. Using her all inclusive tone range as a way of showing her brand, but also anytime you would see another brand using those inclusive skin tones you would always think of Kim Kardashian West Skims nude range.
Kim Kardashian West has a shape and loungewear line called Skims. It’s Kim Kardashian West’s answer to shape wear that actually works. Designed to smooth, enhance, lift and tone- each piece has a solution for every body. Referring to the product development cycle, Skims would be in the Growth Stage of development. Public awareness is at an all time high thanks to advertisements and social media. Skims is coming out with new products every few weeks to offer new and exciting designs. They are also offering limited time collections to keep customers interested in what is next. Skims is always adding new content to their already existing and lengthy lists. Some items are limited features, but with adding new items so often customers always have something new to look forward too
I believe Skims has delivered on its design and services that their customers value. It portrays women should be treated all as equal beauty’s. Skims offers a lot of features but also slims down products by only offering some items until they sell out. Which also helps customers buy items right when they are available for purchase. Some improvements Skims could work on is having items be restocked when they are popular and have sold out quickly. They could also have items for men or expand to beyond shapewear, sleepwear and loungewear to all clothing. Expansion of product to other categories could help Skims become more known with other clothing targets.
Ways to help figure these problems out that every medium size business eventually comes to is figuring out pricing alternatives. I’m personally a customer of Skims and coming from a customer's point of view, if prices were to go up I would feel comfortable with that if it went to expanding products, convincing customers or not selling out of items so fast. I understand that is a way to help keep costs down and to keep customers coming back to check out the newest item, but listening to customers and using the value-based pricing strategy could help show where customers could be more hands on with the products they are purchasing. Having Skims be such a new company with Kim Kardashian West being the face and brand I think she could set those prices and see if customers accept them. Skims is creating new products all the time. They could incorporate it slowly and be able to offer more. It will be interesting to see where Skims goes after a few years and gets more popular and expands to new products.
Skim's current distribution strategy is a newer way of getting its content out there. Kim Kardashian West being owner and a social media influencer and celebrity herself she uses influencer marketing for contact distribution. Skims retailing is predominantly online. Unfortunately, using this way as your strongest promotion is sort of a missed opportunity. Women who don’t use social media are a missed target audience. Skims is advertising in small ways in other places but you miss the Skims initial launches, their email marketing, and Kim Kardashian herself promoting and showing products off on her social media platforms.
Skims just started a partnership with Nordstrom so they also have department store distribution. It’s great for people to try on Skims shape wear and see what nude tone fits you best. On the down side, Nordstrom only offers Skims shape wear line and not its loungewear or sleepwear because those products are exclusively online. It is beneficial to do it this way just because their target market is online. It being a new company I think they are seeing how they do online in the first few months/year to figure out what is next. Geographically distributing online is a great way to get products where it's needed because Skims products are used by any woman who is interested in them. I think Skims as a one year old company is figuring out what they would like to do next in distribution. Stay small and inclusive online and at Nordstrom, or expand the market and lose exclusive launches on products? It is going to be interesting seeing where it goes as it becomes more popular.
Target audience is women who use social media and are influenced by products being sold that way. Women ages 17-40
Skim's goal is to help make women feel beautiful and included.
Skims is Kim’s answer to shapewear that actually works. Designed to smooth, enhance, lift, and tone- each piece has a solution for everybody. Order online today
Primary Message: Skims is offering a new approach to shape-enhancing undergarments. The pieces in the collection are designed to support, lift, and flatter the natural shape of the body.
Message Pillar: Shapewear that makes women feel included and beautiful.
Proof Point: The solution focused approach to shape enhancing undergarments with inclusive sizes and nude tone shades.
Call to Action: swipe up to order online today (Instagram)
Promotional Mix and IMC Tools
Digital Marketing
Digital marketing is Skims number one way of reaching its customers. It is who Skims targets with advertising and promotions. It is a great tool to connect with customers personally.
Direct Marketing
Skims uses direct marketing because you can personally follow Skims or Kim’s instagrams and buy directly from those promotional posts. They also offer direct email notifications so loyal customers can be the first to know when something new arrives or items are restocked.
Personal Selling
Skims has used the owner and brand creator to develop relationships with its target market. Kim was one of the first celebrities to put a face to face interaction together so easily using social media.
Measurement (KPIs—Key Performance Indicators)
Impressions – views of content
Engagement – comments, likes, shares, page views
Followers – social media
Awareness
Impressions, Engagement, followers, and awareness are good indicators that Skims will be successful because of the company’s presence on social media. The owner and creator Kim Kardashian West has 190 million followers herself on just Instagram. Having so many followers, customers' impressions of products are available for view right away when promoted. Skims company itself has 2.1 million followers and Skims hashtag has over 47,000 posts. Allowing customers to be so aware of new lines dropping or when they are available right away is important for any company.
Sales Forecast
Sales
Intimate Apparel/Bras
$170,000
$225,000
$255,000
Shapewear
$48,000
$67,500
$85,000
Sleepwear/At Home wear
$95,000
$110,000
$130,000
Swimwear & Accessories
$71,000
$112,500
$135,000
Hosiery
$4,300
$5,200
$5,750
Other
$1,450
$15,000
$44,500
Total Sales
$389,750
$535,200
$655,250
Direct Cost of Sales
Year 1
Year 2
Year 3
Intimate Apparel/Bras
$76,500
$101,250
$114,750
Shapewear
$19,200
$27,000
$34,000
Sleepwear/At Home wear
$38,000
$44,000
$52,000
Swimwear & Accessories
$28,400
$45,000
$54,000
Hosiery
$2,150
$2,600
$2,875
Other
$0
$0
$0
Subtotal Direct Cost of Sales
$164,250
$219,850
$257,625
Milestone
Start Date
End Date
Budget
Manager
Department
Complete business plan
2/1/2019
4/30/2020
$100
Levine
Marketing
Secure financing
5/3/2019
6/18/2020
$0
Levine
Marketing
Logo & packaging design
5/3/2019
6/4/2020
$500
Levine
Web
Secure store location & lease
5/3/2019
5/28/2020
$6,000
Levine
Web
Hire designer & confirm build-out plan
5/7/2019
5/28/2020
$0
Levine
Department
Apply for business licenses, registration, etc.
5/31/2019
6/4/2020
$300
Levine
Department
Purchase QuickBooks hardware & software
5/31/2019
6/2/2020
$3,500
Levine
Department
Hire staff
5/31/2019
8/20/2020
$0
Levine
Department
Place inventory orders
6/12/2019
6/20/2020
$100,000
Levine
Department
Secure insurance
7/5/2019
7/9/2020
$2,500
Levine
Department
Order POS Supplies
7/5/2019
7/9/2020
$400
Levine
web
Order packaging
7/12/2019
7/12/2020
$2,500
Levine
Web
Design and place opening advertising
7/12/2019
7/30/2020
$3,000
Levine
Department
Contact utility companies
7/12/2019
7/16/220
$2,000
Levine
Department
Order business supplies & forms
8/2/2019
8/6/2020
$600
Levine
Web
Plan opening event
8/2/2019
9/2/2020
$3,000
Levine
Department
Bra fitting training
8/16/2019
8/20/2020
$0
Levine
Department
Store opening
9/7/2019
9/7/2020
$0
Levine
Department
Opening event
9/10/2019
9/10/2020
$0
Levine
Department
Totals: $131,800
Risk Factors
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Flinders Business School Marketing Plan Template. Authored by David Medlow-Smith. Located at: https://archive.org/details/FlindersBusinessSchoolMarketingPlan2. License: CC BY-SA.
ORIGINAL CONTENT
SWOT and Integrated Marketing Communications Templates. Authored by Melissa Barker. License: CC BY: Attribution.
Revision and adaptation. Authored by Lumen Learning. License: CC BY-SA.
Revision and adaptation. Authored by Waymon D. “Wade” Hyde, faculty, El Centro College/Dallas County Community College District. License: CC BY-SA.