discuss offline and online spend for women jeans according to Promotion Budget

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Requirements:

1.Decide offline and online spend for the women part of our hypothetical jeans company which is named TwenJeans – based on the budget (will be given in additional files uploaded), how much will be spent offline and online (provide details of your calculation)?

2.Remember to justify your choice with news reports, your segmentation and the theory presented in the lecture.

3.Communication objective – must be consistent with your KPIs and your choice of communications (Action).

***Simulation Login is in the files.

NEWS:
Steal their style: go bright or go home!

The fashion world has been turned upside down by bright denim and a quick look at celebs out and about proves it. Blue jeans are definitely not the way to go this season and the big trend is for stunning, wow-inducing, trophy trousers.

Good style is in the colour, just ask Pippa Middleton. Her hot pink jeans by SuperSuper are the perfect way to brighten up any outfit, while Katie Holmes is also on-trend with Capri cropped orange skinny jeans. Jessica Alba could be the queen of eye-catching denim, such as wearing Clementine AG jeans to off-set a teal top and denim jacket, or looking amazing in mint-hued jeans by Current/Elliott.

As fashion blogger Nikki Kennan, of Nikkis Closet, told us: Blue jeans arent finished, but especially for young women, its more exciting to try something different now.

Everyone needs at least two or three really colourful pairs in their wardrobe if they want to stand out and look good this summer.

Source: Glitz (glossy weekly fashion magazine)

These oil price rises will hit consumers hard

Rising oil costs will hit firms and consumers hard and lead to higher prices at the petrol pumps over the next year. Since early last month, Brent crude has surged to reach nearly $109 per barrel, while West Texas Intermediate, the US oil benchmark, hit $107.

Supply concerns have pushed up prices, with military unrest in Egypt calling into question shipments from the Middle East to Europe through the Egyptian-controlled Suez Canal. Sanctions on shipments in Libya, Iraq and Iran are also taking their toll on global prices, as is rampant demand from emerging markets.

The impact is being felt in nearly all industries, with rising fuel prices meaning more expensive consumer goods. Food prices have gone up because of oils importance in its growth and transportation, while clothing costs have also increased, with petroleum-based fibres used in rayon, nylon and polyester.

At the pumps, petrol prices are expected to rise by 6p per litre next month. George Dax, head of the European Petrol Retailers Association, said: This will hit businesses and households in their pockets and should Middle East tensions escalate further, crude oil prices will react accordingly.

Source: Comment by the Finance Editor, The Sunday Chronicle (Sunday broadsheet newspaper)

The rise of the ethical clothes shopper since Xintang

The collapse of a jeans factory in Xintang, China, last month, which killed 15 workers, was a massive wake-up call to consumers about the human cost that goes into producing their trousers. International manufacturers have since made promises of compensation to workers families and there is an industry-wide plan to increase safety across the countrys garment factories.

But it also served to strengthen the rise of the ethically conscious shopper in Europe. As environmental writer Nick Nightingale points out: Theres a hardcore segment of consumers who only shop ethically. But since Xintang, Im speaking to more and more shoppers who want to know that their jeans and other clothes arent produced in a way that flaunts safety norms or human rights.

The carbon footprint of their favourite denim is also a growing concern for consumers, according to Mr Nightingale. He said: People want to know their jeans are made in a sustainable way, that companies are thinking of how their production methods will impact the planet in 5, 10 and 15 years time.

The growing popularity of companies such as R.E.U.S.E Jeans, which makes trousers from 80 per cent recycled fabrics, is another sign that buyers care what the labels say, the writer added.

Source: Consumer Week (weekly industry magazine)

European online retail sales reaching plateau

The steady growth in online shopping is levelling off, according to research based on 55 million European customers transactions across 250 home shopping brands over the past year.

Online sales accounted for 18 per cent of the total retail market in the first quarter of the year, up to 22 per cent in the following three months, according to the Market European Shopping Index, compiled by analysts Centuron. But in the third quarter, it had dropped to a 20 per cent share, falling back to 18 per cent this quarter.

The index encompasses purchases of a vast range of goods, including clothing, home furnishings, food, gadgets, and DVDs and music.

John Jecchinis, Centurons director of insight, said: The latest evidence is surprising because internet shopping continued to show steady growth even during the worst months of the recession.

Its too early to say the online market has reached saturation point, especially when older demographic groups, particularly in the 65-plus market, tend to spend very little time on the Web.

But online merchandisers will hope this doesnt equate to a decline in their market share in the coming months.

Source: The Financial Post (daily financial broadsheet newspaper)
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