Preliminary

Marketing Report:

Blue Gorilla
Clothing Company

Air-Stream Jacket


23/10/2013

Mark Hannemann
Student Number: 4911040

Table of Contents

1.

Executive Summary.2

2.

Introduction..3

3.

Industry Definition...4

4.

Competitor overview5-6

5.

Macro-Environmental Analysis7-8

6.

Consumer Behaviour Analysis...9-10

7.

Recommended Marketing Research...11

8.

Justification for Choice of Segmentation Base..12

9.

Profile of Segments13

10.

Target Market Choice and Justification.14

11.

Proposed Positioning Strategy..15-16

12.

Marketing Objective...16

13.

Marketing Strategies.17-18

14.

Conclusion......19

15.

References..20

Executive Summary.

This report was commissioned to examine if Blue Gorilla Clothings revolutionary
new product the Air-Stream Jacket is a viable product that can be successfully
marketed.
The research draws attention to the fact that there are several other inferior products
already controlling a market that can be dominated by Blue Gorilla Clothings AirStream Jacket.
The Air-Stream Jacket, designed by Blue Gorilla Clothing, is an innovative product
capable of improving the wearers comfort levels in harsh climates. The report
explores these features in relation to both major and minor competitors and concludes
that the product is superior in quality and is capable of satisfying consumer demand to
a higher level.
It is recommended:
The Air-Stream Jacket is sold at a reasonable price, under $200.
The Air-Stream Jacket is made widely available for purchase, including local
adventure wear stores such as Rays Outdoors.
The Air-Stream Jacket is positioned as a fairly priced, highly adjustable,
equally casual and sporty jacket with high availability
Blue Gorilla Clothing sets marketing objectives to;
Gain a market share of 30% by June 2015.
Become 1 of the top 3 brands named in the industry by consumers.

Body.

1.Introduction.
The material below outlines background information about Blue Gorilla Clothing
Company, the Air-Stream Jacket in particular, and presents the purpose and main
areas of the report.
Blue Gorilla Clothing, established in 2012, is a relatively new company that
specialises in outdoors and adventure-wear. Blue Gorilla Clothing burst onto the
market in late 2012 when they launched their revolutionary range of lightweight
breathable thermal garments known for their patented ability to Let moisture out and
keep heat in.
Blue Gorilla Clothing now wants to build on this reputation for high quality,
revolutionary adventure clothing by releasing the Air-Stream Jacket, a jacket with
the ability to either instantly warm or cool the wearer according to their requirements.
The jacket uses a patented system of microscopic vents in the material of the jacket
that can be either closed or opened at the pull of a cord.
The purpose of this report is to analyse the Air-Stream Jacket, including; an
industry definition, a competitor overview, a macro-environmental analysis, a
consumer behaviour analysis, a recommended marketing research plan, a
recommended target market, a recommended product positioning strategy, and a key
marketing objective, and as a result of these provide a practical marketing strategy.

2.Industry Definition.
An Industry definition is used to define what business a company is in.
It is important to include an industry definition because companies are affected by
their chosen marketing environment, or industry, and this in term influences strategic
decisions made by management. (Greaney, S (2011)
This environment influences and shapes; the size of the market, who your competitors
are and your macro-environmental analysis. It therefore affects investment decisions
and strategies made by organisations and the behaviours, needs, wants and
expectations of customers. For this reason it is important for organisations to analyse
and respond to their marketing environment if they wish to achieve and maintain
success. (Kotler, P, Adam, S, Denize, S & Armstrong, G (2009)
As shown below, in the case of Blue Gorilla Clothings Air-Stream Jacket the
industry is defined as Unisex Specialty Outdoor Wear. - This definition will be used
to identify and assess competitors in the next section.

Retail

Mens

Clothing

Food

Unisex

Womens

Services

Speciality:
Outdoor
wear

General
Fashion

Tops

Shirts

Automotive

Bottoms

Jackets

Temperature
Adjusting
Jacket

3.Competitor Overview

Competitors are defined as companies which offer goods or services in the same
defined industry as your own, they are a key part of the Micro-Environment; factors
or elements that are in an organisations immediate area of operations and affect its
performance, decision making and freedom (Goldsmith, R. E., & Flynn, L. R. (2004),
and generally come under the heading of actors. Actors are forces that are close to an
organisation and affect its ability to serve its customers. (Kotler, P, Adam, S, Denize,
S & Armstrong, G (2009)
It is important to include a competitor analysis because it identifies weaknesses and
strengths that competitors may have, and then uses that information to improve
marketing strategies within the company. (Hughes, A, Chitty, B & Fripp G (2011)
Blue Gorilla Clothings Air-Stream Jackets competitors are listed below.
Main Competitors
ClimaWare Jackets. ClimaWare clothing is a relatively new product launched by
MIT graduate, and now CEO of Dhama Innovations, Kranthi Vistakula. The
ClimaWare jacket has the ability to maintain internal temperatures between 18 to 40
degrees Celsius, and can operate in environments between -30 and 50 degrees
Celsius. However, it is only available for purchase online and at $300 it is an
expensive product, another concerning aspect is that it works by using
thermoelectricity and for this reason can be interpreted as a dangerous product.
(ClimaWare Jacket).
Helly Hansen H2Flow Helly Hansen clothing was founded in 1877 by Norwegian
captain Helly-Juell Hansen. Their products became famous for their ability to keep
users dry and warm and they have continued to build on this by utilising the latest in
micro-fibre technology.
Their products are used by world-class sailors, skiers and adventurers who spend their
time at the mercy of nature, and demand full protection and performance when the
conditions are at their worst.
The H2Flow Jacket is relatively expensive at $250 and is only available for purchase
online. It combines insulation with air vents and the ability to make adjustments to the
garment in order to better regulate body temperature, for this reason the product is
very lightweight. However, due to the lightweight nature of the product its
temperature controlling abilities arent as detailed as other competitors.
(H2Flow Jacket).

Minor Competitors
Merrell Moab Spring Soft shell jacket. Merrell clothing, founded in 1981 by boot
maker Randy Merrell, quickly became renowned for their high quality boots and
moved onto the adventure wear market. These days they are constantly working on
new technologies and products to inspire people to get outside and brave the
elements.
The Moab Spring Soft shell jacket is lightweight product that provides high-level
wind resistance along with breathability in an affordable product ($180), it is also
readily available for purchase at Rays Outdoors. However, it is not as well insulating
as other products on the market and for this reason can leave users more often that
not, feeling the cold. (Mens Moab Spring Softshell)

Based on the above competitor analysis it is recommended that The Air-Stream Jacket
is marketed at a reasonable price, under $200, and is readily available for purchase at
local adventure wear stores such as Rays Outdoors.

4.Macro Environmental Analysis

A macro environmental analysis is a review and analysis of all the factors that a
company is unable to control. Macro Environmental Factors include; Demographic,
Economic, Natural Environment, Technological, Political and Cultural. However, it is
unlikely that all factors are applicable to every industry and product so in most cases
only the relevant ones are analysed. (Hughes, A, Chitty, B & Fripp G (2011) (Agins,
T. (2010)
It is important for companies to conduct Macro Environmental Analysis so they can
stay informed about an issue in their current business environment and therefore find
a way to stay ahead of it and use it as an advantage rather than a weakness. (Hughes,
A, Chitty, B & Fripp G (2011)
Blue Gorilla Clothings Air-Stream Jackets Macro Environmental Analysis is shown
on the next page.

MacroEnvironmental
Factors

Trend

Opportunity
or Threat

Strategic
Implications.

Demographic.

Geographic Shifts.
Recent trends show that
more people dont live
their entire lives in 1
country; they are moving
from one to another.

Opportunity.

It is advised that the

product is marketed
worldwide as there is
a demand from
customers who may
be having difficulty
adjusting to new
climate.

Economic.

Changes in consumer
spending patterns.
After the Global Financial
Crisis in 2008 consumers
became more aware of
their spending and have
limited spending on nonessential and expensive
products.

Threat.

It is advised that the

product is marketed
as attractive and
practical.
It should also be
marketed at a
reasonable and
affordable price.

Natural
Environment

Energy Costs.
The cost of energy,
electricity in particular, is
increasing every year and
will soon be too expensive
for people in lower
socioeconomic classes.

Opportunity.

It is advised that the

product is marketed
as a cheaper
alternative to
contemporary
climate control
(heating and air
conditioning.)

Technology

Fast Change of Pace.

Opportunity/
New technology and
Threat.
products are constantly
being launched and
updated. Consumers are
attracted to this and always
want to have the latest
and best product.

It is advised that the

product is marketed
as the latest and best
technology available
on the specialty
outdoor wear market.

Sub-Cultural

Increase in outdoor living. Opportunity.

There is an ever-increasing
trend for healthy
outdoor living and dining
in the contemporary
western lifestyle.

It is advised that the

product is marketed
as a must have for
the contemporary
outdoor living
consumer.

5.Consumer Behaviour Analysis.

A Consumer Behaviour Analysis is an overview of the typical consumers process
by which they select from several choices, products, brands or ideas. The process may
involve complex mental activity, a simple learned response, or an uninvolved choice,
which may even seem random.
The process moves through five stages; Need recognition, Information search,
Evaluation of alternatives, Purchase and Post-purchase analysis.
Each of these stages is influenced by internal and external factors. Internal factors are
mainly associated with psychological and personal influences, whilst External factors
are generally concerned with social and cultural influences. (Kotler, P, Adam, S,
Denize, S & Armstrong, G (2009)
It is important for companies to conduct Consumer Behaviour Analysis so they can
learn more about; what consumers buy, who buys it, how they buy it, when they buy
it, where they buy it, and most importantly, why they buy it.
This information is then used to find out how consumers respond to various marketing
techniques/stimuli and which ones they should use. (Hughes, A, Chitty, B & Fripp G
(2011)
Blue Gorilla Clothings Air-Stream Jackets typical Consumer Behaviour Analysis is
shown on the next page.

Decision Making
Stage.

Internal Factor.

External Factor.

Strategic
Implications.

Need recognition.

Dissatisfied with
current clothing
comfort/warmth.

Friend/family
member mentions
how
comfortable/warm
their clothing is.

Encourage
consumers to see
that their current
clothing isnt
comfortable/warm
enough.
Eg. Advertising.

Information
search.

Reflecting on the
product they
noticed last time
they were in an
outdoor specialty
store.

Search the internet

for products that
can provide
warmth/comfort.

Provide
information where
customers are
likely to search.
Eg. Sales Training,
Brochures, Easy to
Navigate Websites.

Evaluation of
alternatives.

Self-evaluation on
the features
(comfort/warmth)
and price of current
products.

Reading online
reviews on
available products
and taking those
opinions into
account.

Identify most
important
evaluative criteria
and provide data
the consumer can
relate to.
Eg. Warms and
cools up to 20C.

Purchase.

Decision to buy the

product based on
past evaluation of
features.

Sales person
informs consumer
of an offer on a
product.

Provide
communication that
encourages brand
decision.
Eg. Tried and
tested in Australia.

Post-purchase
Evaluation.

Comparing the
physical product to
the previous
expectations.

Friends/Family
mention how
cool or trendy
the product is.

Encourage accurate
consumer
expectations.
Eg. Honest
advertising and
sales techniques.

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6.Recommended marketing research.

Marketing research refers to the process of collecting, analysing and interpreting data
about customers, competitors and the business environment in order to improve
marketing effectiveness. In order for a company to succeed it requires information on;
what customers want, when they want it, where they want it, and what other
competing companies are doing about it. The better a company is at conducting high
quality marketing research the more successful it will be. (Kotler, P, Adam, S, Denize,
S & Armstrong, G (2009)
When conducting marketing research it is recommended that the company follow the
four steps of the Marketing Research Process. The first two steps of this process will
be outlined below with specific reference to The Air Stream jacket.
The first step of the marketing research process is to define the problem. In the case of
The Air Stream jacket the problem is a new product and unfamiliar brand with very
little following and exposure. After defining the problem it is important to determine
the correct research design, with The Air Stream jacket the chosen design is
primary research that focuses on exploratory research. (Marzo-Navarro, M., PedrajaIglesias, M., & Rivera-Torres, M. P. (2004) Primary research is usually the preferred
option because it is current and reliable. Exploratory research has been selected
because it focuses on the customers and their attitudes and opinions about products
and competing products, as well as their awareness, knowledge and beliefs about a
product. (Kotler, P, Adam, S, Denize, S & Armstrong, G (2009)
The second step of the marketing research process is to develop a research plan.
Having selected exploratory research the next step is to choose which methods of
research to use.
It is recommended that Blue Gorilla Clothing conduct consumer interviews and focus
groups so they can gain a formal understanding of how they respond to certain
variables, in this case the features and character of The Air Stream jacket.
It is also recommended that Blue Gorilla Clothing conduct ethnographic research by
immersing themselves in a hiking or other outdoor recreational group to understand
exactly what the consumers wants and needs are.

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7.Justification for choice of segmentation base.

Market segmentation is the process of dividing a larger market into smaller pieces
bases on more meaningful, shared characteristics. Segmentation is used because it is
impossible to please all people all the time, its easier to divide customers into
segments and market to then according to shared characteristics. The four basic
market segment bases are; Geographics, demographics, psychographics and
behaviour. (Hughes, A, Chitty, B & Fripp G (2011)
In the case of The Air Stream jacket the market has been segmented according to
demographics. The possible segments that come under demographics include; Age,
gender, family structure, income and ethnicity.
The product wasnt segmented under age because consumers from multiple age
groups could use the product, it wasnt segmented according to gender because the
product could be used by either gender, it wasnt segmented according to family
structure because people from all stages of life can use it, and it wasnt segmented by
ethnicity because the product can be used by all people from different countries and
climates according to their specific climates needs.
The market was segmented according to income because the product isnt a cheap
one, nor is it a necessity. It is a comfort item that is designed to improve comfort
levels in harsh climates. Although the product will be widely available it wont be
within the budget of lower income consumers.

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8. Profile of segments.
A segment profile is an analysis of a segmentation base, including multiple
characteristics, which are used to develop several possible consumer profiles. These
profiles are then analysed to identify a specific segment that the product is to be
targeted at. (Hughes, A, Chitty, B & Fripp G (2011)
Blue Gorilla Clothings Air-Stream Jackets Profile of Segments is shown below.

Segment

Build a Profile

Income Level
(PA)

Usage Rate

Affordability

Psychographic

Low
(<$20,000)

Very Rare

Not affordable

-No disposable income.

-Can only afford necessities.

Lower Average
($35,000)

Rare

Unlikely to be
Affordable

-Little disposable income.

-Need to make wise product
choices.

Average
($55,000)

Common

Affordable

-Average disposable income.

-Seeking good value for
money in a product.

Upper Average
($80,000)

High

Very
Affordable

-Higher than average

disposable income.
-Seeking quality products
that last.

High
($120,000+)

Occasional

Easily
Affordable

-Lots of disposable income.

-Want the best of the best.

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9. Target market choice and justification.

The target market is the group (or groups) that a company selects to turn into
customers as a result of segmentation and targeting. The target market is important
because without it companies can waste valuable time and resources on marketing a
product to consumers who have no interest or need for it. (Kotler, P, Adam, S, Denize,
S & Armstrong, G (2009)
When selecting a target market from a list of segments it is important to evaluate them
by using a list of requirements.
The segment that has been selected as the target market for Blue Gorilla Clothings
Air-Stream Jacket is Upper average income.
This segment has been selected because it is possible to identify and measure it via
the use of readily available statistics such as abs.gov.au, it is large enough to earn a
profit, and is stable enough to grow via product line expansions, such as higher and
lower quality versions.
The upper average income segment has also been selected because it is homogeneous,
that is; customers in the segment all prefer the same quality of product quality
products that last. Whilst the remaining segments are heterogeneous, that is; they
have different quality preferences.
The upper average income segment also responds consistently to a given market
stimulus, can be reached by market intervention in a cost-effective manner and is
useful in deciding on the final marketing mix.

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10. Proposed Positioning strategy

A positioning strategy involves developing a marketing strategy aimed at influencing
how a particular market segment perceives a good or service in comparison to the
competition. It is important because it differentiates products from one another and
gives them unique characteristics and selling points. (Kotler, P, Adam, S, Denize, S &
Armstrong, G (2009)
Below are 2 perceptual maps for Unisex Specialty Outdoor Wear, featuring Blue
Gorilla Clothings Air-Stream Jacket and its competitors.

15

Blue Gorilla Clothings Air-Stream Jacket will be positioned as a fairly priced, highly
adjustable, equally casual and sporty jacket with high availability.
This position will be optimal for the upper average income target market because it
offers the best mix of factors in the unisex specialty outdoor wear jacket industry.

11. Marketing Objective
Marketing objectives define what a company wants to accomplish through their
marketing activities, they are generally less focused on the overall corporate
operations and more specific to the companys brands, sizes, and product features.
Marketing objectives are critical because they; highlight the importance of
marketing by showing how the organisation will benefit, emphasise goals that
encourage teamwork, and offer benchmarks to measure progress, helping to
determine future marketing efforts. (Hughes, A, Chitty, B & Fripp G (2011)
A marketing objective should be S.M.A.R.T, meaning;
Specific The objective should be clear and precise.
Measureable The success of the objective should be assessable.
Achievable The objective should be reachable; sights shouldnt be set too high.
Realistic The objective should be achievable according to company resources.
Time specific The objective has a timing plan for when it should be achieved.
(Kotler, P, Adam, S, Denize, S & Armstrong, G (2009)
The marketing objectives for Blue Gorilla Clothings Air-Stream Jacket are listed
below.
To gain a market share of 30% by June 2015.
To become 1 of the top 3 brands named in the industry by consumers.

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12. Marketing Strategies

A marketing strategy is a selection of what decisions a marketer should make about
what activities they must accomplish to achieve the marketing objectives that were
selected earlier. This generally involves deciding which markets to target and then
developing marketing mix strategies (product, price, promotion and distribution) to
support how the product is positioned in the market.
The marketing strategy is important because it is used to decide how a company
wants its consumers to think of their product in relation to other competing products.
(Hughes, A, Chitty, B & Fripp G (2011)
The marketing mix strategy for Blue Gorilla Clothings Air-Stream Jacket is shown
below.
The product strategy is the most fundamental part of the marketing mix; companies
cant make a profit without having something to sell. The three levels of a product
are; the core (Benefit or service), actual product or secondary service (quality, brand,
style, features, packaging), and the additional augmented aspects (Installation,
delivery and credit, warranty, after sales service).
The Air-Stream Jacket has a core benefit of providing consumers with comfort in
harsh climates; this is identified in the industry definition.
The aspects of the actual product include its brand name Air-Stream Jacket and the
patented, revolutionary ability to either instantly warm or cool the wearer according to
their requirements. This ability coupled with the positioning strategy of providing a
high quality product at an affordable price set the Air-Stream Jacket apart from its
competitors.
This is reflected in the fact that the Air-Stream jacket also comes with a full 5 year
warranty. Air-Stream Jacket positions itself as a superior product not only in the short
term, but also retains this after years of use.
The price mix strategy essentially determines what price a company will set for its
product; it is the most important aspect from the point of view of the consumer,
producer and seller. Without an effective pricing mix strategy many companies fail
and become bankrupt. (Hughes, A, Chitty, B & Fripp G (2011)
The Air-Stream Jacket is using competition based pricing, in particular Sealed-bid
pricing, meaning the Price is based on how competitors will price rather than on its
own costs or demand. This concept also crosses over with market penetration pricing,
meaning the price is set low in order to attract many consumers and control of a large
market share. These pricing strategies have been used in order to achieve the
marketing objective of gaining a market share of 30% by Jun 2015.

17

The promotion mix strategy is used by marketers to communicate product benefits

and features with the target market, this process is called Integrated Marketing
Communications (IMC). The mediums used to communicate IMCs generally
include; advertising, sales promotions, public relations, direct marketing, sponsorship
and personal selling. (Kotler, P, Adam, S, Denize, S & Armstrong, G (2009)
The integrated marketing communications for the Air-Stream Jacket;
1. Identify target market. Upper Middle Class Income earners, as identified in
section 8 (Profile of segments).
2. Determine the response sought. Fairly priced, highly adjustable, equally casual
and sporty jacket with high availability. as identified in section 10 (Product
positioning strategy).
3. Select a message. It is recommended the Air-Stream Jacket is communicated as
identified in section 10 (Product positioning strategy).
4. Select the media The Air-Stream Jacket should be marketed in media which are
effective with the target consumers. This information would be acquired during the
research process.
5. Select the message source The message should be communicated by someone
trustworthy the target market can relate to. Eg. Bear Grylls.
6. Collecting feedback The IMC message should be tested on a select group of
target consumers to ensure it is effective.
7. Setting the budget The budget for the IMC is dependent on the resources of Blue
Gorilla Clothing. As it is a new company it is recommended it use a large campaign to
build target consumers brand awareness.

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Conclusion.

It can be seen that Blue Gorilla Clothings Air-Stream Jacket is a viable product that
can successfully be marketed. This can be seen in the competitor overview where
several other, ultimately inferior, products are already controlling the market.
The macro-environmental analysis reveals that although there are trends affecting the
market these can be used to Blue Gorilla Clothings advantage by targeting the right
consumers, positioning the product correctly in the market and using the correct
strategies to achieve specific marketing goals.

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References.
Agins, T. (2010). The End of Fashion: The Mass Marketing of the Clothing Business
Forever. HarperCollins.
ClimaWare Jacket, Dhamainnovations.com, Accessed 17th October 2013,
<http://www.dhamainnovations.com/personaljacket.html>
Goldsmith, R. E., & Flynn, L. R. (2004). Psychological and behavioral drivers of
online clothing purchase. Journal of Fashion Marketing and Management,8(1), 8495.
Greaney, S (2011), Marketing Case Study, Niche Media, South Melbourne.
H2Flow Jacket, HellyHansen.com.au, Accessed 17th October 2013,
<http://www.hellyhansen.com.au/products/detail/51008/226>
Hughes, A, Chitty, B & Fripp G (2011), Marketing 2 Real People, Real Choices,
Pearson Education, Sydney.
Kotler, P, Adam, S, Denize, S & Armstrong, G (2009), Principles of Marketing,
Pearson Education, Sydney.
Marzo-Navarro, M., Pedraja-Iglesias, M., & Rivera-Torres, M. P. (2004). The
benefits of relationship marketing for the consumer and for the fashion
retailers.Journal of Fashion Marketing and Management, 8(4), 425-436.
Mens Moab Spring Softshell, Merrell.com, Accessed 17th October 2013,
<http://www.merrell.com/US/en-US/Product.mvc.aspx/27033M/62644/Mens/MoabSpring-Softshell?dimensions=0>

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