Marketing Plan 1

Marketing Plan

Nicolas Raggi

Basic Marketing

Dr. Cristina D. Reinhart

University of South Florida

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Executive Summary

This paper consists of a Cause-Related Marketing Plan involving the not-for-profit organization

the Save the Children organization which is a charity that targets children in need and creates a

good foundation for life for them, providing them with anything they need as well empowering

and creating strong young people. Bulgari is a world-renowned luxury brand, which specializes

in jewelry, clothing, watches, and leather goods. These two companies already have a long-

standing relationship with each other, with Bulgari having a Save the Children organization line

of jewelry that helps to raise funds for not for profit. The plan that involves this company and

organization is a one month promotion during the month of August, which is youth

empowerment month, that will consist of a portion of the revenue made during the month to go

to the Save the Children foundation. Eleven-point three six percent of the revenue from the

month of August will be going to the Save the Children organization, which mathematically will

roughly equal up to at least ten million dollars. This promotions product will consist of all

Bulgari products that are not already a collaboration, for example the Save the Children

organization line of jewelry. That means that the mass amount of products produced by Bulgari

will be included, allowing for revenue to be generated either in a Bulgari store, licensed

department store retailer, or online. This promotion will continue the strong relationship between

the companies, generate funds for the not for profit organization to continue to save children, as

well as potentially generate more than the average amount made by Bulgari in a month, because

of the good cause behind the promotion the emotional appeal will be stronger, potentially

providing new customers and long term clientele. The money raised will exponentially help the

Save the Children organization and provide them with the funds they need to continue branching

out all over the world and allow for more children to be given new starts to life.
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Marketing Plan

The not-for-profit charity I have just been hired to create a Cause-Related Marketing Plan

for is Save the Children. The goal is to expand this specific charity and raise money for their

cause. Save the Children will be starting a new promotion with Bulgari a company they have

had a longstanding successful partnership with. Bulgari is an Italian luxury fashion house known

for its jewelry, watches, fragrances, accessories, and leather goods (Wikipedia). The

collaboration between the two companies has been strong since 2009. Bulgari has raised over

eighty-five million dollars for the Save the Children foundation. The partnership between
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Bulgari and the Save the Children foundation has a particular focus on education and youth

empowerment, but still also raises money for the other aspects of charity that the Save the

Children foundation provides.

Since the Save the Children foundation and Bulgari and such large national staple brands

all over the world the target audiences of the Cause-Related Marketing Plan will be people all

over the world who purchase any Bulgari products, either online or in-person at the Bulgari

stores. Although Bulgari is a mor expensive brand compared to other large worldwide brands

that are also partnered with not-for-profit charities, this could be seen as a partnership just for

show and not to actually benefit people in need, but the Cause-Related Marketing Plan that has

been created uses the higher prices of the products as an advantage.

Bulgari’s first and still ongoing collaboration with the Save the Children foundation is a

custom designed jewelry collection that consists of a ring, a pendant, and a bracelet, with the

design being trademarked by the unique silver and black customized design. The collection is

still available in stores worldwide as well as select department stores and online. Not only has

Bulgari partnered with Save the Children with a product line but has also collaborated with

renowned Italian photographer Fabrizio Ferri. Ferri’s portrait collection of nearly two hundred

fifty celebrities from all over the world wearing the Save the Children Bulgari collection. The

Cause-Related Marketing Plan that has been constructed involving both Bulgari and the Save the

Kids foundation specifically includes youth development and empowerment, which is the main

specific cause that the Bulgari collaborations. August is widely known as youth empowerment
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month, and the plan is during the month of August a percentage of all sales of any and all Bulgari

products will go to the Save the Children foundation excluding the already ongoing Save the

Children collection.

Company and Charity Overview

Not-For-Profit Charity Description

Founded over one hundred years ago, the Save the Children organization was the first

global organization that was solely devoted to serving children’s needs and securing their rights

(Save the Children). Save the Children was founded by Eglantyne Jebb after the end of the first

world war. Jebb founded the organization after witnessing all of the starving and sick children

after the war, so he launched the Save the Children fund, raising enough funds to help in the fight

to end children’s suffering across war-torn Europe. The Save the Children organization’s main

office is located in Fairfield Connecticut. The main aspects of The Save the Children foundation

are saving the lives of children and helping them by targeting their unique needs. The Save the

Children organization’s goal is to give children a healthy start in life, and the opportunity to learn

and to give children protection from harm. Not only in the United States but all around the world

the work that the Save the Children organization does creates long lasting change for not only

children but their families and communities (Save the Children).

Company Description

Like previously stated Bulgari or BVLGARI is an Italian fashion house, known for its

high-quality expensive jewelry, watches, fragrances, and leather goods such as purses, bags, and

wallets. Bulgari was founded in eighteen eighty-four. Bulgari was founded in Epirus, Greece by

the silversmith Sotirios Boulgaris, or the Italian pronunciation Sotirio Bulgari. Bulgari started as
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a single jewelry shop in Greece, over the years because a worldwide known international brand,

also being a large player in the luxury market (Wikipedia). The most prominent and largest store

that Bulgari operates is a ten story tower in Tokyo called the Bulgari Ginza Tower. The main

aspects of the large worldwide luxury brand are holding the tradition of superior craftsmanship

and the painstaking minute details that are guaranteed of the prestige of the company. While that

is the main aspect of the company the Bulgari family is meant to embody the expression of the

Bulgari dream, “the refinement of the human touch” being the “ real essence of luxury”

(Bulgari).

Not-For-Profit Charity Mission Statement

The mission statement of the Save the Children has been a staple for over one hundred

years, “Save the Children is often told that it’s aims are impossible, that there has always been a

child suffering and there always will be. We know it’s impossible only if we make it so”.

Company Mission Statement

The mission state of Bulgari has been held as the main ideals of the company ever since

the foundation in eighteen eighty-four, “For Bvlgari, being a sustainable company means

creating a world in which everyone can thrive through social, environmental and economic

progress”. Bulgari’s vision statement is “Social commitment is a key part of the Bvlgari identity,

the company respects equality and diversity embracing the highest standards of ethical

behavior.”

Four Ps of Marketing

Product
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The Bulgari products that will be involved in this collaborative promotion will be all

products sold by Bulgari, in Bulgari brand stores, licensed department stores, and all online

Bulgari orders. The only products that will be excluded from this are any Bulgari products that

are already collaborations or the already long standing Save the Children collection. The

products that are included in this promotion are the quality items such as the Italian crafted

jewelry, such as rings, bracelets, necklaces, and earrings. Bulgari also carries an exquisite line of

watches that consist of gold, silver, platinum, and stainless steel watches and watch faces. The

fragrances that Bulgari sell are also part of the products involved in the promotion, consisting of

fragrances for men, women, and children. Bulgari has a mass collection of all sorts of leather

goods, for all types of people, men, women, children, and for all ages and kinds of people.

Bulgari carries wallets, backpacks, clothing, purses, bags, and footwear all crafted in the finest

Italian leather.

Pricing

The prices being charged for the Bulgari products during the promotional time are going

to remain stagnant and stay the same as they were before the promotional month. The target

market of Bulgari is upper class people who tend to lean towards purchasing and buying

extremely high end products and Bulgari is a part of the extreme high end market. Bulgari not

only targets people who are considered to be in the extreme high end market but also people who

are watch collectors and those who appreciate quality and design and can afford the premium

cost. The specific prices of the products produced by Bulgari are around the same price range

compared to their other high end competitors, excluding the prices of the fragrances. The prices

of the lines of watches that Bulgari produces are between seventeen hundred dollars for a base

three hand model watch and eleven thousand for a gold chronograph watch (Chrono24). The
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Bulgari jewelry selection is massive and arguably larger than most of their competitors. For

example a Bulgari ring can be found for as much as five hundred and thirty euros all the way up

to around thirty seven thousand dollars. A Bulgari leather bag can be bought for fifteen hundred

dollars to seven thousand dollars. It may seem as if the amount that the Bulgari products cost is

too high and would not reach enough consumers to sell a significant amount of products to raise

a large sum of money for the Save the Children organization but annual worldwide Bulgari

intakes roughly one billion sixty million euros, which comes out to one billion sixty five million

dollars. Since the promotion is only for the month of August, that means that the annual revenue

made by Bulgari would be divided by twelve and that number would be roughly the amount of

money made during the month, which would be almost eighty nine million dollars. The amount

from each purchase going towards the Save the Children foundation would be eleven point three

six percent, which would come out to ten million dollars towards the Save the Children

Foundation for the month of August from Bulgari.

Place

Bulgari owns and sells from more than three hundred stores, that are placed in strategic

locations that are either surrounded by upper class neighborhoods and located inside luxury

shopping malls and areas all over the world. Bulgari does not only have stores worldwide but

luxury resorts and hotels that are located in prime luxury vacation spots and some of the biggest

cities in the world. Bulgari doesn’t only rely on face to face in person sales but has a highly

visited and used online presence with multiple websites, one for each region of the world.

Promotion
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The promotion that Bulgari will be running with the Save the Children organization will

be run all through the month of August, which is children empowerment month, the specific

target of the Save the Children charity that Bulgari mainly donates funding to. The promotion

will consist of eleven-point thirty six percent of all non-collaboration product sales that Bulgari

will incur during the month of August. Eleven percent seems like a large amount of each sale

that Bulgari makes, but considering the amount of revenue that Bulgari makes annually, plus the

collaboration products still making Bulgari the same amount of revenue, one month of running

the promotion after careful inspection does not put the company into any sort of financial

jeopardy and could arguably raise sales because of people wanting to purchase Bulgari products

to support a good cause. Bulgari annually makes one billion sixty-five million dollars and

monthly Bulgari roughly makes eighty-eight million dollars. Eleven point three six percent of the

monthly revenue of Bulgari will come out to exactly ten million dollars, allowing for the

advertisement of the promotion to be a large round number allowing for consumers to simply see

what good cause their money is going towards. Although ten million is the estimated calculated

amount, this promotion could potentially raise even more than ten million dollars for the Save

the Children organization and could make even more of a difference in the fight against child

suffering and children’s empowerment.

SWOT Analysis

To restate the goal, we are creating a marketing plan for the month of August, which is children

empowerment month, to raise at a minimum ten million dollars. These funds will assist Save the

Children in achieving their goal to give children a healthy start in life, the opportunity to learn

and protection from harm.

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Strengths / Competitive Advantage

1. A long standing and strong relationship between Bulgari and Save the Children

2. Bulgari’s high end brand recognition which will bring in wealthy clientele that have

means to support such a charity.

3. Bulgari’s worldwide demographic reach over 230 retail locations

4. Bulgari’s diverse product portfolio – not dependent on just one product line

5. Save the Children’s nonprofit reputation – over 100 years. This is a known quantity that

has been run at the highest level.

6. Save the Children’s experienced staff

7. Save the Children’s clear mission and passion for children

Weaknesses

1. Promotion is a very short time frame to achieve results – only 1 month

2. Ability of the staff in both organizations to focus heavily on the promotion

3. Potential supply chain issues for Bulgari for raw materials – due to potential recession

4. Rigid structure of two large organizations.

Opportunities

1. Possibility to focus funds and advertising on the children in Ukraine as this is all over the

news right now

2. Possibility of other competitors of Bulgari wanting to participate in the promotion as part

of Children Empowerment Month.

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3. Have store events and event volunteers to drive more customers. For example,

champagne shopping or a raffle for a free smaller gift if a purchase is made

4. Social perception of both Bulgari and Save the Children is very strong. This will enable

marketing campaigns to reach other markets through social media.

Threats

1. Threat of a possible recession with rising inflation, could cause clientele to not make such

large purchases

2. Potential for competitors of Bulgari to take part in their own separate campaign

SMART Goals

The goals of this promotion are generally to spread awareness for a specific cause as well

as to raise funding the cause too. The first specific goal of the promotion is to raise at least ten

million dollars in the month of August for the Save the Children organization, which should not
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be an issue because mathematically Bulgari is estimated to make eighty-eight million dollars

during the month and the eleven-point three six percent of the gross revenue made should at least

equal up to ten million dollars. Another goal of this collaborative promotion for the month of

August is to extend and continue to improve the strong relationship already standing between

Bulgari and the Save the Children organization. The continuance of the strong relationship

between the company and not-for-profit organization will result in more collaborations down the

line leading to more funds being raised for the organization as a whole, but more specifically

children’s education and youth empowerment. An addition on top of the base goal of raising the

minimum ten million dollars is to potentially increase monthly sales above the eighty-eight

million that is mathematically projected. Since the promotion is only going to be active for a

singular month, pushing the collaboration and maximizing not only fundraising potential but

potential revenue as well. Specificity is crucial regarding these goals because of the short time

frame, all aspects of the promotion and collaboration must be up to and exceed the projected

number of product sales and projected amount of money raised. All of these goals can be

measured if not quantitatively, then qualitatively. The goals involving monetary value and

collection are measurable obviously quantitatively, by calculating how many products have been

sold, the percentage of revenue made sectioned off for the Save the Children foundation, and the

revenue left over that all goes to Bulgari. The goal regarding the relationship between the

company Bulgari, and the not for profit organization Save the Children will be measured

qualitatively, not measuring how much money is raised but by measuring the relationship and

potential for future and more long-term collaboration projects like the Save the Children line of

jewelry. On paper these goals seem more than achievable and will arguably be achieved by more

than the projected numbers. Mathematically all of the target amounts are to be hit, with the
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promotions details not being overstated, but also not shooting too low for safety. Considering the

already standing relationship between the company and organization, and not just a solely

corporate and monetary focused relationship, but a relationship based on morals and supporting

an important cause by saving and protecting children all over the world. These goals and

objectives that have been set by both the company and not for profit organization align with each

of the values of the company and not for profit organization separately as well as the long-term

objectives that are beginning to be intertwined. The values of Bulgari consist of producing the

highest of quality products and upholding integrity, refining the human touch. The values of the

Save the Children organization are to give children a healthy start to life and to ensure safety of

childhoods all over the world. The long term goals of the company and not for profit

organization is where their ideals and values begin to align, because of the long term goal of

sustainability, specifically sustaining the strong relationship between the two. The time-based

portion of these SMART goals is potentially the weakest area, only because of the short time

frame given to complete to these goals. The start date of the promotion is going to be August

first, and the promotion will end August thirty first at midnight, allowing for online orders to still

be processed, allowing funds to continue to be raised even after most stores will have been

closed. Although the time frame of this promotion is short, it allows for the focus and precision

of the promotion and all involved to be the sole focus for the month of August, maximizing all

potential profit and revenue for Bulgari, while simultaneously maximizing the money raised for

the Save the Children organization.

Segmentation

Segmentation of the market for Bulgari products such as jewelry, watches, clothing,

footwear, and leather goods will consist of two separate markets of buyers. The two separate
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segments that will be divided within the mass Bulgari market are high end watch collectors, and

consumers who appreciate quality and design and can afford premium costs for their preferred

products. The first segment profile that will be described is the high-end watch collectors, whose

segment will be named Crown, which is the knob on the side of the watch that allows for setting

of the watch’s functions. The second segment profile that will be described are the customers

who appreciate high quality goods and design and have the monetary prowess to afford such

premium products, this segment consist of much more people than the first and will be named

High End Luxury Consumers, or HELC. For the first segment Crown, some usual demographical

details that are shared by most of the high end watch collecting profile are generally mostly men,

with a few women participating in the hobby, with almost all watch collectors being over middle

aged due to the amount of money needed to begin high end watch collecting is large and younger

people tend to not have the funds to begin the hobby by collecting more expensive watches. The

income level is the most solidified demographic, with all Crowns being in the upper class in their

respective countries, which is needed because of the prices of the watches, especially Bulgari

watches. The second segment are the HELCs who can be any gender, with the gender split being

in the men’s favor. The age group of the HELCs is tricky because most of these people have

families and the children of these wealthy HELCs can also be consider HELCs because of the

financial freedom that they usually receive, being able to spend the large amounts on luxury

brands such as Bulgari. Virtually all of the HELCs are in the upper or high upper class with their

income level, because to be able to consistently afford these expensive high quality products they

need to be making enough money to not be put into financial jeopardy buying them.

Sales Forecast
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For the singular month of August that the promotion will be active for Bulgari is set to

make eighty-nine million dollars in revenue. Since the Save Children foundation will be

receiving the eleven point three six percent of revenue, the target goal for funds raised during the

month of August is at least ten million dollars. During the week not every day will be reap the

same rewards, some days being busier or slower than others, graph shows the estimate of daily

revenue made by Bulgari worldwide, and the amount each day that will be generated for the

Save the Children organization.

Marketing Strategy

The overall marketing strategy of this promotion will inevitably come to be very

simplistic but extremely effective. The ground layout of the plan will consist of the usual

marketing methods used by Bulgari such as television ads, social media, and advertisement
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online and in person in malls and high foot traffic locations. Instead of the regular Bulgari

advertisements only pushing Bulgari products the new set of advertisements will contain the

Save the World promotion for the month of August. The advertisements will contain information

about the promotion, like the projected ten million that will be raised for the not for profit

organization, as well as showcases the long standing partnership between the two. Since this

promotion isn’t based upon a sole product from Bulgari and contains all the non-collaborative

products that Bulgari sells the market positioning should not need to change much to

accommodate the promotion, besides the emotional appeal of a portion of every purchase going

towards a good cause. The Bulgari products will still be stalwarts in the market among their

other strong competitors, with such thought about and strong placement of strategic store

locations allows for immense competition involving each of Bulgari’s competitors. Bulgari is

just outside of the top fifteen most popular luxury brands in the world (LUXE). Like previously

stated the demographics that are going to be targeted the most are upper class shoppers who

prefer the most premium of products, and have no issue paying top dollar for them. These

consumers will frequent the luxury malls and high-end shopping centers that these stores are in

and will be swayed towards Bulgari even more because of the emotional appeal of such a good

cause. With these worldwide known products already being cemented in the market, the plan to

market these high end luxury products will be straight forward and not sway from the already

standing plans, except for the push of the not for profit organization.

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