Charles & Keith

Strategic Marketing
Final Report Instructor: Vannaseng Ounalom

Prepared by:
Alilath Detvongsone ID: 110260
Thipphachanh Phachanhsily ID: 110272
Soudalath Sivilay ID: 120087
Phonemany Phothisane ID: 100045
Mekkhala Lim ID: 110008
Executive Summary
CHARLES and KEITH is one of the most famous women bags and shoes in Asia,
European and other continent. Founded by two brothers Charles and Keith Wong in 1996.
Recently, Charles and Keith has more than 500 stores worldwide. The product of Charles and
Keith stores are women shoes, bag and accessories.

Fashion has influence on people in Vientiane through media channel. Famous

celebrities from neighboring counties have much impact on Lao people’s trends. Friends and
family also have an impact on their decision before buying. Charles and Keith, the mid-price
brand, will fulfill the fashion market in Vientiane, aiming at middle income segment in the
age group of 25 to 35 years. In addition, we can expand to the high income group (in the age
of 36-45) because Charles and Keith brand image conveys a modern and luxurious look to
people owning it.

The fashion market has been increasingly growing along with economic growth in
Vientiane Capital and wider penetration of electronic media such as Internet, TV, Radio and
print media. The advertisement of products and the fashion style of celebrities in Thailand,
Korea and the Western countries are the main factors that influence Lao fashion. Therefore,
people now are caring more about their image in the society and they try to be up to date with
the fashion. In recent times, the number of foreign investments in Lao has increased, and this
led to increase in jobs and improved living condition of people and this led to an increase in
buying power of people and ability to buy luxurious products.

To fulfill the gap in Lao market and to bring Lao fashion trend to the new level,
Charles and Keith is the best choice, as its affordable price and its variety of designs make us
want to import Charles and Keith and be the first official brand name in Laos, also make Laos
be one of those international countries that have this fashionable brand. As its popularity in
22countries around the world especially Singapore, Thailand, and Indonesia, it will make Lao
people trust and value in this brand name and products.

For the implementation plan CHARLE & KEITH will emphases on promotion and
advertise for it first start. For the target goal of it first year is to put CHARLE & KEITH well-
known and create a brand value in Lao market. This could be done by focusing on customer
communication and activities in social media such as face book and Instragram.

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Contents

1. Introduction.................................................................................................................................3
2. Product Description.....................................................................................................................3
2.2 Shoes.....................................................................................................................................3
2.3 Bags.......................................................................................................................................4
2.4 Accessories............................................................................................................................5
3. Current Market Assessment.......................................................................................................5
3.1. Market Definition................................................................................................................5
3.2. Consumer Analysis..............................................................................................................6
3.3. Macro Environment Scanning (PESTLE).........................................................................6
3.4. Micro Environment Scanning (SWOT).............................................................................8
3.5. Competitor Analysis............................................................................................................9
3.6 Market Forecast.......................................................................................................................10
4. Marketing Strategy (STP).........................................................................................................10
4.1. Market Segment.................................................................................................................10
4.2. Market Positioning............................................................................................................11
4.3. Pricing Strategy.................................................................................................................12
4.4. Distribution Strategy.........................................................................................................12
4.5. Promotional and Marketing Communication Activities.................................................14
5. Budget Requirement & Action Plan.........................................................................................15
6. Sales and Revenue.....................................................................................................................16
7. Key Success and Factor of Business.........................................................................................16
7.1. Key Success........................................................................................................................16
7.2. Control, Evaluation and Contingency Plan.....................................................................16
8. Conclusion..................................................................................................................................16
References..........................................................................................................................................17

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1. Introduction
CHARLES & KEITH is a Singaporean brand that was established in 1996 by brothers
Charles and Keith Wong. Charles opened his first women footwear store at the Amara Hotel
arcade in the financial district. After two years, Keith joined the business and they opened
their first international venture in Ratu Plaze, Jakarta, Indonesia and opened 6 factories to
produce women shoes for their brand. Now, after a successful expansion in international
market, CHARLES & KEITH own more than 500 stores in 35 countries worldwide including
Japan, Cyprus, Brunei and Indonesia. (Nur, R. 2010)

The products of Charles & Keith are focused on everyday wear of women. Their
product lines are shoes, bags and accessories such as sunglasses, belts, bracelets and
necklaces. Charles & Keith target market are women in age group of 20-45, from the status
range of middle to high-class consumers.

The brand is well known mainly in ASEAN countries such as: Singapore, Thailand,
Malaysia, and Indonesia. By bringing Charles and Keith to Vientiane Capital, it will make the
brand become the first official international fashion label in Lao that will fulfill the gap in the
fashion market by its present popularity all over the ASEAN countries, its fashionable design,
its affordable price that are suitable for middle to high income groups, and its good quality of
material compared to other brand in Laos.

2. Product Description
Founded as a brand of ladies footwear in Singapore, CHARLES & KEITH has since
then developed other products in their offering such as bags and accessories including belts,
sunglasses, bracelets and tech accessories. Its brand symbol as a trendy and contemporary
wear has a strong image in the international market. Charles & Keith have a strong fashion
development team. They believe in the fundamental differences and constantly create new
trend to the market. Over 750 designs for footwear and more than 300 designs for accessories
are launched annually. (Shu Hui. 2014)

2.2 Shoes
- Design: CHARLES & KEITH shoes can be categorized as boots, flats, heels and
wedges. The designs are created to suit all occasions, seasons and to match different
lifestyles of women. Each product is designed while keeping consideration on color,
size, and material in use, shape and style. CHARLES & KEITH now have more than
450 designs of foot wear in their outlet.
- Color: Charles and Keith products come out in different colors, offering more choice to
the customer. The most common colors that CHARLES & KEITH use for their shoes
are black, bronze, brown, burgundy, chalk, cream, dark brown, dark grey, fuchsia,
gold, grey, multi, pewter, pink, red, rose gold, silver, white, and yellow.
- Size: CHARLES & KEITH is currently using Asian sizes for its footwear collection.
The sizes are in a range between 34 – 41 (21.9 cm – 26.3 cm).

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 LENGTH OF
ASIA EUROPE ITALY USA UK JAPAN KOREA
FOOT (CM)

34 35 34 4.5 2 22 220 21.9

35 36 35 5 3 22.5 225 22.3

36 37 36 6 4 23 230 23

37 38 37 7 5 23.5 235 23.7

38 39 38 7.5 5.5 24 240 24.3

39 40 39 8.5 6.5 24.5 245 25

40 41 40 9 7 25 250 25.7

41 42 41 10 8 25.5 255 26.3

- Material in use: Charles & Keith produce comfortable and durable shoes for the
customer by using the highest quality materials to manufacture their products. The
materials commonly in use are natural PU, cow suede PU, calf leather, calf suede,
boxed PU, metallic PU, embossed PU, embossed fabric, faux suede, patent PU, and
mirror metallic PU. (CHARLES & KEITH wedsite. n.d)

2.3 Bags
- Design: CHARLES & KEITH bags can be categorized as bowling, clutch, hand bag,
hobo, satchel, shoulder bag, satchel, tote, wallet, and sling bag. Each product is
designed to match all lifestyles and fashion preferences of women. In recently,
CHARLES & KEITH has more than 500 design of bags in their outlet.
- Color: CHARLES & KEITH bags come out in variety of colors to attract the
customers. The most common colors are beige, black suede, black, blue, burgundy,
brown, cream, fuchsia, gold, multicolor, mustard, navy, nude, orange, pink, silver, red,
white and yellow.
- Size: The sizes of CHARLES & KEITH bags are divided into 4 categories: extra small,
small, medium, large.
 Extra small: At minimum holds a bank note or credit card. Dimensions
approximately from 150mm to 210mm large, 33mm to 120mn weight and 30 mm to
120 mm height.
 Small: At minimum holds an iPhone or pocket size makeup kit. Dimensions
approximately from 130mm to 300mm large, 45mm to 220mn weight and 45mm to
200mm height.

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  Medium: At minimum holds wallet, clutches or B5 organizer. Dimensions
approximately from 150mm to 350mm large, 100 mm to 355mn weight and 70 mm
to 300 mm height.
 Large: at minimum holds A4 size magazine. Dimensions approximately 250 mm to
350mm large, 140 mm to 400 mn weight and 240 mm to 350 mm height.
- Material in use: CHARLES & KEITH bags are produced using high quality materials.

The material that are commonly in use are natural PU, cow suede PU, boxed PU,
metallic PU, embossed PU, patent PU, and mirror metallic PU. (CHARLES & KEITH
wedsite. n.d)

2.4 Accessories
- Design: CHARLES & KEITH accessories can be categorized as sunglasses, belts,
bracelets, and necklaces. Its focus is on creating innovation and unique designs to match
with their collection of shoes and bags.
- Color: The most common colors that CHARLES & KEITH use for their accessories are
black, brown, gold, silver, gray, pink and yellow.
- Material in use: The material that are common in use are leather, pony hair, and metal.
(CHARLES & KEITH wedsite. n.d)

To sum it up, CHARLES & KEITH is dedicated towards bringing trends to fashion-
forward consumers, the brand sees about 20-30 designs being added to their stores weekly.
The products of CHARLES & KEITH come out as a collection. Each collection includes
variety of size and color of bags, shoes and accessories which are designed to match with the
concept. The company later started the Pedro and CHARLES & KEITH Signature Label to
offer a more luxurious range of products to target the higher-end market and diversify its
market share.

Charles & Keith Laos will focusing on 2 product lines such as bags and shoes, since
these two products have a strong potential to fit in the Lao Market. Most of Charles & Keith
designs are based on Asian fashion which makes it unique and different from other western
brand. This differences will make a solid advantage for Charles & Keith to grow in the Lao
market.

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3. Current Market Assessment
3.1. Market Definition
There is a high potential to import Charles and Keith products to the middle of Laos,
Vientiane Capital, which is the center of communication and commerce. People in this area
have middle to high income with a strong buying power to respond to their needs in luxury
products. The fashion of clothes, bags, shoes and other accessories has been increasingly
growing and developing day to day along with the growth of the country. Nowadays, the
media such as music, movie, social network and looking at celebrities etc. has an important
influence in Lao fashion. Therefore, people care more about their image in society that makes
the number of fashionable people gradually increasing. Trendy and stylish products are
always attracting the customer attention. Lao people, especially young adults, like to follow
the trend and buy products that can respond to their desire.

3.2. Consumer Analysis

There is no official brand name fashion store available in Laos; so Lao people don’t
usually buy expensive brand name fashion products because there are a lot of cheaper
copycat products that exist in the market since a long time. People don’t care if it is the real
one or not because they got used to it. They buy shoes and bags when they have important
occasions, wedding, birthday, important holidays, and when they get their salary. Famous
celebrities from neighboring countries have much impact on Lao people trend, but they only
get the copycat products. Friends and family also have as impact on their decision before
buying.

On average, women prefer to have high heel shoes, at least 2 or 3 pairs for party and for
office - flip-flop, casual shoes, and sneaker shoes. They buy new shoes every 3-6 months.
Middle income group will buy classy and brand name product that are not too expensive from
neighboring countries, high income people will buy luxury product from abroad. People
between the age group of 18-45 years purchase shoes for college and workplace. If it is
beautiful, cheap and their friends like it, they will buy it.

3.3. Macro Environment Scanning (PESTLE)

PESTLE Description
Political  Politically stable: Laos has a stable government and laws
and policies rarely change, this presents a good environment
to the investors.
 Low Support for this business area (general business,
Fashion): Government divided investment supporting into 3
level, Level 1 High support in rural area (agriculture), Level
2 Medium support, and level 3 low support, our business
(fashion) is set in level 3, which is in the urban area. Each
accounting for each area is different and set in the law.

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  Investment Protection: Government protect all investors,
they receive an equality in investment, receive a protection
on their rights and benefit under Lao P.D.R law and
international agreement in the council of Lao P.D.R ( The
National Assembly of the Lao PDR. 2011)
Economical  Constant growth of GDP: The economy of Lao PDR
(GDP) is rapidly growing as the government began to
decentralize control and encourage private enterprise in 1986
(Laos Economy Profile, 2014). Since then the GDP of Lao
PDR steadily increased at 8% per year (Laos Economy
Profile, 2014). A steadily growth in GDP means people have
higher income and more purchasing power on luxury goods
in year to year.
 Will be a part of ASEAN Economic Community (AEC)
in 2015: The Asean free trade expands the potential of more
trade among the member countries making business easier in
Lao PDR.
 Single Window Investment Policy: This policy was issued
to support the investment in Laos. It makes it more
convenient for the investors to find information, advice and
statistic about the investment in each sector of business in
the country.
Legal  Corporate income tax: Comparing corporate income tax
rate in Asian countries, Laos still has higher rate of tax than
Brunei, Cambodia, Singapore and Thailand. It means that
our investors have to pay more for the tax and it will make
them enjoy less profit. On the other hand, if corporate
income tax is reduced, it will lead to more profit, and a more
favorable investment environment. (KPMG Asean Tax
Guide, 2013)
 Cost, Insurance and Freight: Cost, Insurance and Freight
are determined in the on the basis of excise tax. Since the
products are directly ordered from headquarter in Singapore,
it will make cost more in shipping fee and other fees that
will be incurred during importing. Therefore Charles and
Keith will encounter more expenses that will affect the price
of our products sold in market. (Tax Law, 2012)
Technological  Charles and Keith can use the internet and media
channels to sell market and sell their products, based on a
research suggesting about 500 thousand Laos’s citizen are
using Facebook.
 The Internet access in Laos nowadays is very easy,
although the speed is not very fast, but it still reasonable
because everyone can access the Internet using their mobile
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 or computer. The company can sell the products online in
Laos. The best media for advertising is television in order to
promote the product and direct channel to connect with
customer.
Sociological  Poor quality of domestic products is the main reason that
persuades people to buy international brands: As our
country still has large number of unskilled workforce and
low use of technology, we can produce only a small range of
products such as consumable products like salt, sugar,
agricultural products like rice, coffee beans; and there are
still a lot of products that we cannot produce yet. Also our
quantity and quality production is not standard. Therefore,
many people like to buy products from international
countries because they are of higher quality. Charles and
Keith could benefit from this situation because apparel is a
fashion necessity for women and there are only a few
competitors right now. Although, due to import duties,
prices will be higher and this purchasing power limited.
 Lao citizen prefer to buy cheap products: According to
the World Bank survey in 2013, they estimated the GDP per
capita of Lao citizens was 1,661 USD/year, so the income of
Lao people is about 130 USD/month in average. This shows
that the income of Lao people is still low, and prices are
high. Not many people can purchase the extravagant
products like top brand of shoes, bags and other accessories.
But Lao citizen can afford Charles and Keith over other
brands like Gucci, Coach etc. because the price is softer and
the quality is almost the same.
Environmental  In Laos PDR there are two seasons - rainy and summer
season. During rainy season, people don’t like to go out, so
the number of customers will decrease in this time. More
products will be sold in the market during summer.
 Summer in Lao is a little bit hot. The temperature is between
34-41 degrees Celsius. Boots category of Charles & Keith
cannot sale in this season.

3.4. Micro Environment Scanning (SWOT)

SWOT Description
Strengths  Unique style with affordable price: Charles & Keith is a
brand that provides luxury and classy products but in lower
prices, so customers can get into their brand easier.
 Size advantage: Charles & Keith have advantage of the size

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 of shoes because it they produce based on Asian sizes.
Hence they will be suitable for customers in Laos.
Weaknesses  Still a new brand in the Lao market. Charles & Keith is a
new brand in the Lao market, and learning on the go from its
actions and mistakes.
 Unskilled employees: some of our front staff still poor in
giving advices of our product to customers so it may not
persuade them to easily make the decision to purchase and
sometimes they also make some mistake that could make
customer dissatisfy in our services.
Opportunities  Few Competitors: There are only a few brands that have
opened a branch or franchise in Laos right now. Customers
looking to buy quality products shop online or buy from
other countries, which makes them pay more. If we have a
branch of an international brand here, people will reach out,
know more and purchase the brand easily.
 Lao economy is developing and it is a good time for Charles
& Keith to introduce fashion models to the new market
targets. The product will be sold more when compared to
installing a shop in Thailand and waiting for customers to
the cross border to buy their product.
 The cost of setting up operations in Lao is cheaper than
opening a shop in Singapore or other foreign countries.
 Expanding New Store in Lao Market: Charles & Keith
Laos must consider expanding their store to other location in
Vientaine. This is to widen Charles & Keith market to reach
the new target customers. The
Threats  Substitute & look-alike products: Cheap and popular
substitute & look-alike products in Lao market will pose a
threat to Charles & Keith in budget-conscious customer
segment. It will be difficult maintaining a trendy and quality
assortment while keeping the prices competitive to tackle the
substitute products.
 Volatile Currencies & Revenue: Lao PDR uses Lao Kip as
their currency, Charles & Keith will face a volatile exchange
rate which will impact the overall company earnings revenue
and its profit.
 Changes in Taste: Laos’s customers change their taste very
quickly. If Charles and Keith want to be successful in the
Lao market, it need to always stay alert to trend and come up
with new products to attract the customers.

3.5. Competitor Analysis

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 Bag & Shoes
Competitors Strategic Competitors
- Aldo - Aldo
- Nine west - Nine west
- Clarks
- Rotelli
- LYN
- VNC
- Bata

Competitor 1: Aldo, first ALDO store opened its doors in downtown Montreal, Canada
in 1972, this pioneering company has gone from one strength to another, consistently striving
to be the best it can be for its customers, Aldo is targeted at mostly female consumers
between 20-40 years old. At the moment, the male segment seems neglected. Consumers
perceive Aldo to be chic classy, young, and smart casual. By the end of 2013, the ALDO
Group had more than 1,750 stores around the globe, operating on all continents except
Antarctica. (Aldo Group)

Competitor 2: Nine West, founded in 1983 in White Plains, New York, is a sub-brand
of the American clothing, accessories designer brand, The Jones Group, whose vision is to
“ignite desire, instill confidence and stimulate compliments”. Stemming from its 30 year
presence in the industry, 800 global locations in 57 countries. They claim to be recognized as
a complete lifestyle brand that translates looks from the runway to “real life fashion”. The
product range offers shoes and accessories for men and women, and in other parts of the
world, it also has some clothing as well as a selection for children. (Mat, B.)

Compared to Charles and Keith, whose average price is not too expensive and which is
popular in Asia; Aldo and Nine West are well known in United States and Europe, but they
are still unknown and too expensive for Lao people. And if we have the first official Charles
and Keith store in Laos, our brand will be well known and unique in the Lao market,
competitors will have to try harder to beat us.

3.6 Market Forecast

Vientiane is the most developed area in Lao economy compared to others provinces in
Laos, with a population of approximately 800,000 people in which the highest group is
between 15-24 years old. This group is starting their teenager life and freshly graduated, and
women cover a high percentage in Vientiane. It is this time that are fashion conscious. It is a
good opportunity if Charles and Keith make an entry and improve their brand image. The
fashion market in Laos is predicted to continuously enhance and expand in next few years.
People will catch up with mid-range and luxury range products. Laos will be a part of AEC
(Asean Economic Committee) in December 2015 which focuses on free trade in the region
and Asian countries particularly in private section. This gives a good opportunity for Charles

10
and Keith to enjoy rebates in taxes and relaxed norms to make in entry into Lao market and
import their products (Asean Economic Community Overview, 2013).

4. Marketing Strategy (STP)

4.1. Market Segment
Group 1 Group 2 Group 3
Geographic - Customer: Chanthabouly District, Sikodthabong District, Saysetha
District, Siseattanak Village.
- Seller: Vientiane Center, Siseattanak Village, Chanthabouly
District, Vientaine Laos.
Demographic Gender: Female Gender: Female Gender: Female
Age: 18-24 (teenager) Age: 25-35 (adult) Age: 36-45 (middle
Career: Student, Fresh Career: Employee, age)
Graduated Business Owner Career: Employee,
Income: 1,500,000 – Income: 2,000,000 – Business Owner
2,000,000 4,000,000 Income: more than
5,000,000
Physical Trendy, fashionable, prefer a fashion design Prefer luxury design,
+ fresh color, prefer that suitable for their medium to large size
Behavior small size beg, work place, prefer a bags, earth tone, self-
realizing on friends for medium to large size decision, consider
making bag, consider about about the value of
decision/friends have quality, durability and brand, high purchasing
influence on making price before power and willingness
decision, mid purchasing, mid to to spend on their
purchasing power. high purchasing power appearance/ image.

We are targeting on group 2, women office workers and business owner with the age of
25 to 35 years old, who are in the average of middle income group, ranging from 2,500,000
LAK to 5,000,000 LAK and we mainly focus on the people who live in Vientiane Capital
who love fashionable designs and are looking for a high quality brand of products beside
affordable price which Charles and Keith can provide and cater to their needs. This group of
customers is independent and has capability to purchase products easily because of their
stability of income. (UNOCHA. 2014)

Charles and Keith should adopt Mass Marketing Strategy because they are targeting a
large group of consumers for marketing their products such as our bags, footwear and
accessories.

4.2. Market Positioning

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 Perceptual map of Charles & Keith’s positioning in the market (shoes and bags).
Comparison based on price and trendiness.

Brand promise: Dedicated to bringing trends to fashion-forward consumers and offer

high quality products and services, with a commitment to perfection and affordable prices.

Charles & Keith, though primarily a shoe brand, also sells bags and accessories. Its
competitors include other brands that sell a similar range of products in the market. Three of
its closest competitors are: LYN, Nine West, and Aldo.

 LYN is a Thai brand shoes and accessories. It first opened it store in September 2001.
The brand target young trendy woman with a love for fashion and quality products.
LYN aims to provide a full range of fashion shoes and accessories with value for
money. Value Proposition to Customer. (LYN website, n.d)
 ALDO is a Canada brand specializes in high-quality fashion footwear and accessories.
Aldo always stay alert up-to-date with the latest trends from the fashion capitals of the
world, and with an emphasis on quality and craftsmanship, Aldo is a brand for the
conscious, self-aware shopper. (Aldo website, n.d)
 Nine West is an American brand. It believes in dressing from the ground up, in shoes
with multiple personalities and in being the prettiest, smart and sexy girl in the room.
Nine West is dedicated to aspiring style at affordable prices, satisfying a passion for
what’s new, hot and next in fashion. (Ninewest website, n.d)

As we compare those three brand to Charles & Keith we could see that LYN is the
closest brand. Charles & Keith and LYN have the same target customers and similarity in
price and fashion style. However, Charles & Keith still have advantages on it well-known
brand compare to LYN which is a new brand in the market. For the other two brand are
focusing on the high fashion for the high class customer. Aldo and Nine West are a western

12
brand which their fashion are influence by western style. They target a specific group of
customers who have willingness to purchase luxury product.

Both perceptual value and physical value are providing to Charles and Keith consumers:

 Perceptual Value:

Charles & Keith use the highest quality materials to manufacture their products which
make their product comfort, durable and are showcase fine craftsmanship to the customer.
Their product are design to suit all occasions, seasons and to match different lifestyles of
women.

 Physical Value:

Charles & Keith give a luxurious feeling to the customer who owns their products. It
show out that the customers are in trend and in the high level of fashion. The products tell
who you are and show your style of fashion.

4.3. Pricing Strategy

Charles and Keith’s pricing introduces an element of excitement into shopping by
implementing an odd pricing strategy, such as setting prices of all of their products (footwear,
bags and wallets) to end with 9,000 LAK e.g. 299,000 LAK. With this strategy, they can
make the customer to perceive the prices as “not very expensive”, so they can entice more
customers.

Charles and Keith products are priced based on a cost-based pricing, where their selling
price will consist of product price, import tariff, the cost of insurance and freight, and they
also add the infrastructure cost and a profit margin. Besides, Charles & Keith is positioned in
the middle-range of products, so the price wouldn’t be much higher compared to their
competitors. So, the pricing strategy of the product is dividing to 3 groups:

- Group 1 (wallet and clutch): from 259,000 LAK to 499,000 LAK.

- Group 2 (bowling, shoulder, sling and hand bag): from 479,000 LAK to 899,000 LAK.
- Group 3 (flats, heels and wedges shoes): from 249,000 LAK to 549,000 LAK.

4.4. Distribution Strategy

In order to get more customers, Charles & Keith need to concentrate on its distribution
channels. The company should use the following retail distribution channels:

 Department stores 

 Apparel specialty stores 

 Internet store

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 In recent years, several large retail chains-particularly in the fashion footwear sector-
have developed formats called superstores, which have more square footage dedicated to a
particular product category. They provide a huge assortment of products which the customers
can browse through and choose from. Charles and Keith must setup department stores in
uptown shopping areas at strategic locations which get maximum customer contact.

Catalogs are another important method of distribution. Consumers have less time to
shop, and for some, catalog shopping offers a more convenient and pleasant alternative.
Charles and Keith should set up a call center to cater to calls coming from catalog shoppers.

Product Consumer

The distribution channel that has received the most attention recently is the Internet.
Although it now represents only a small portion of apparel sales, this distribution channel has
the most potential for growth. Consumers like the convenience of being able to shop from
anywhere and at any time they wish. Charles and Keith can set up a website and use it for
marketing, sales, customer support and informational purposes.

14
 4.5. Promotional and Marketing Communication Activities
Since CHARLES & KEITH is a new brand in Lao market, it should heavily emphasize
its first year on promoting their products to reach the target customer and creating their brand
image in Lao fashion market. CHARLES & KEITH should stress their promotion strategy
based on advertising, organizing event, set promotions and discounted sales, using Lao
celebrities to influence the market and using all kind of media to communicate with the
customers.

Estimate
Month Catalog Detail Time Out Come
budget
Opening Charles & Keith
- Opening dance show
products to all customers.
Grand - Fashion show
Increasing it brand image
Opening of - Meet & greet with “Aum
by bring “Aum
Charles & Pacharapa” as special guest. 76
Pacharapa” famous Thai
Jan Keith at (Ang, O. 1999.) 1 day million
celebrity to endorse the
“Nong - Event organizer kip
product. Increasing sales
Chanh - Invite Lao celebrities
and making Charles &
Mall” - Invite all kind of media
Keith brand familiar in
(newspaper, magazine, etc.)
the market.
To attract the customer to
Grand Sale
- 15% discount test Charles & Keith
Opening in
- Advertise on front store, products, this sale
the 1 4 million
Jan social media (facebook, web strategy need to be used.
occasion of month kip
page, etc.) This is to get a high
opening
- Advertising in billboards number of customers
new store
with its launch.
- Bring your mom to shop at This promotion is created
Charles & Keith store, get an to attract and increase
Woman’s 2.4
discount for 20% 2 days Charles & Keith middle
March Day million
- Advertise on front store, 07-08 age customer.
Promotion kip
social media (facebook, web
page, etc.)
Jun- Rainy - Purchase Charles & Keith 3 80 Make the customer
Sep Season products above 240,000 LAK months million excited of what Charles
Promotion and get a chance to win a kip & Keith Lao could
(win trip to ticket or a gift voucher. provide to them. Make a
Singapore - First prize - Trip to Singapore clear sense of Charles &
and gift (4days-5nights) excusive visit Keith fashion to the
voucher) to Charles & Keith head customer. Visit Charles
quarter. 5 slots, 1 slot for a & Keith head quarter to
couple. see how the products are
- Second prize - 10 gift voucher created. Making video

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 in the amount of 200,000 kip shows advertise in public
- Advertise on radio, social and media.
media, front shore and
magazine
- Clear Charles & Keith To clear the stock and to
product stock by applying increase the number of
End Year 6.4
Dec- discount strategy. sales in the end of the
Sales up to 15 days million
Jan - Advertise on front store, year.
50% kip
social media, leaf let and
brochure.
- Customer who purchase up to To make its regular
No Member $200 receive Charles & 16 customers to stick with
specific Privilege Keith member privilege card - million Charles & Keith brand.
time Card (10% discount on every kip
buying)
Take photo with Charles & Keith To make Charles & Keith
products and post it on social well-known and in trend
Monthly
media such as face book and in the market. The social
photo
No Instagram, hashtag 12 medias such as Facebook
contest
specific #charlesandkeithlaos to win - million and Instagram should be
with
time monthly prize (Charles & Keith kip used to promote and
Charles &
product) plus being Charles & make our product popular
Keith.
Keith special guest model (put in teenagers and young
poster in the front of the store) adults.
Wow fashion week is a fashion To make Charles & Keith
show organized by Lao-Thai product well-known in
organizers which attract the fashion market and
Sponsor
No celebrities and guests who love make Charles & Keith
Wow 8 million
specific fashion and follow new trends in - brand become a pioneer
fashion kip
time the two countries. Sponsoring the of fashion.
week
event will put Charles and Keith
in spotlight as a serious fashion
brand.

5. Budget Requirement & Action Plan

Budget and Action Plan of Charles and Keith in 2015
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Catalog Budget Catalog Budget Catalog Budget Catalog Budget
Grand Opening of
Charles and Keith 76,000,000 Monthly End 6,400,0
Raining
Grand Sale 3,000,0 80,000,0 Year Sales 00
Season
Opening 4,000,000 Photo 00 00
Promotion
Contest
Women's Day Monthly
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 Photo
Promotion 2,400,000 Contest 3,000,000
Member Privilege
Monthly
Card 16,000,000 3,000,0 Wow
Photo
Monthly Photo 00 Fashion 8,000,0
Contest
Contest 3,000,000 00

3,000,00
Total 101,400,000 total 0 total 83,000,000 total 17,400,000
Grand Total 204,800,000

6. Sales and Revenue

Sales and Revenue of Charles and Keith in 2015
  Price Quarter 1 Quarter 2 Quarter 3 Quarter 4
group
1 379,000 231 87,549,000 150 56,850,000 205 77,695,000 260 98,540,000
group
2 689,000 450 310,050,000 370 254,930,000 570 392,730,000 510 351,390,000
group
3 399,000 450 179,550,000 380 151,620,000 555 221,445,000 520 207,480,000
  tota tota tota tota
  l 577,149,000 l 463,400,000 l 691,870,000 l 657,410,000

Grand total 2,389,829,000

7. Key Success and Factor of Business

7.1. Key Success
The key success of CHARLES & KEITH is based on product strategy, the business
reportedly produces more than 1,000 new designs of footwear and bags each year. The strong
lineup of fresh new designs each season and reasonable prices are important but the real
potential lies in the fact that there are few competitors in the Lao market.

7.2. Control, Evaluation and Contingency Plan

Any things could happen in the business road. Our plan could run smoothly in every
period that we set up but sometime it doesn’t. If our promotions fail, we will look back to
what’ve planed and what happen during the promotion. Beside that we must look through the
threat and list out the risk that we are facing in order to know how effective and attractive
does our promotions. For example: making the sale promotion for the rainy season could
probably get risk because people are likely not come and do outdoor activities. This period
most colleges close that make people have plan to travel out from the capital rather stay in

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Vientiane. If sale promotion on rainy season couldn’t attractive people as much as it should,
we will add more the sale discount to attract people to buy in order to get more participants in
the promotion.

8. Conclusion
Laos PDR presents a unique opportunity and an unexplored market for Charles and
Keith, where in both the consumer and producer are bound to benefit. With little competition
in price-conscious segment of market, Charles and Keith can easily expand its operations in
various channels and reach out to the middle/high income segment of consumers and
establish itself as market leader in its category. Sailing in the friendly tides of Lao economy
and assisted by investor friendly government and policies, Charles and Keith can setup
operations at a modest price and reap benefits of being the first among the international
footwear and accessories brands to enter the Lao markets.

References

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