Business Plan by annajanehall

Sequoia Business Plan Anna Hall FAS6129 1

Contents

List of Figures

List of Tables

Executive Summary

Concept

Overview Key Drivers Mission Vision Values Brand Objectives Stakeholders

Consumer

Core Consumer Tribe One Tribe Two

Competitors

Market Sector Direct Competitors Indirect Competitors SWOT Market Map USP

09 11 13 15 17 19 21 23

Operations

27 31 35

41 45 51 57 59 63

Production Process Production Costs Packaging and Distribution Sales Forecast Company Structure External Parties Other Costs Legal Obligations Policies

67 79 81 83 87 91 95 97 99 99

Marketing Strategy

103 111 113 119 123

Social Media Charity partnership Shoulders Back Campaign PR strategy 12-month timeline

Financial Forecast

Start up finance 12-month cash flow forecast Future Strategy

127 131 135

List of Figures

Figure 1: Rogers Diffusion of Innovation Theory Figure 2: Maslow’s Hierarchy of Needs Figure 3: Maslow’s Hierarchy of Needs Figure 4: Market map of direct competitors of Sequoia Figure 5: Market map of indirect competitors of Sequoia Figure 6: Porter’s model of competitive advantage

List of Tables

Table 1: Key drivers Table 2: Values Table 3: Sequoia’s stakeholders based on Grunig’s Organizational Linkage Model (Saylor Academy, 2012)

Table 4: Core consumer Table 5: Direct competitors - UK tall retailers Table 6: Direct competitors - International tall retailers Table 7: Indirect competitors - high street fashion retailers with some tall offering and/or a similar brand aesthetic/values

Table 8: Indirect competitors - other brands that have a similar ethos of empowerment Table 9: SWOT analysis Table 10: Production costs of individual garments and total order quantities Table 11: Total costs of production for each launch, including samples and transportation Table 12: Packaging considerations and costs Table 13: Predicted sales by product volume for the first year of operation Table 14: Predicted sales by revenue for the first year of operation Table 15: Staffing considerations and costs Table 16: Costs of website development Table 17: Costs of additional office equipment Table 18: Legal obligations for Sequoia to consider Table 19: Costs of Instagram paid promotions Table 20: Costs of Instagram influencer promotions Table 21: Costs of Instagram influencer paid promotion for Shoulders Back campaign Table 22: Shoulders Back campaign event costs Table 23: PR launch event costs Table 24: Details of the Instagram influencers selected for gifting Table 25: Sources of start-up finance Table 26: Cash flow forecast for the three months prior to product launch Table 27: 12-month cash flow forecast

Executive Summary

Sequoia is a sustainable clothing brand catered to tall females over 5’8”. The brand was created with the aim to provide tall young women with ethically made clothing that fits well, and the confidence to be proud of their height. Research identified that the current offering within the tall market is limited and inconsistent, causing significant challenges for females of above average height in finding clothes that fit. Sequoia focus on designing each garment with the taller build in mind, taking account of a variety of factors that affect the fit of each individual style. The brand was created with the intention to be more than just a retailer, using online platforms to address difficulties associated with clothing fit, issues of self-confidence and insecurities, and positively influence and empower tall young women. Sequoia’s brand values focus on minimising impact, and therefore materials are sourced sustainably, and ethical production and biodegradable packaging are used. The brand aims to discourage overconsumption and inspire consumers to buy less but better, selecting timeless, good quality pieces to build a more longlasting wardrobe where items are worn again and again. The business plan details the key drivers of the concept and consumer tribes: conscious learners and the tall and troubled. Analysis of the market sector and competitors is also included alongside operational, financial, and marketing considerations. The founder, Anna Hall, will act as CEO and take on the majority of operational responsibilities while Sequoia becomes established within the market and grows a consumer base. Marketing activities will be undertaken to facilitate this, including an extensive social media strategy, PR launch event, and postureimprovement campaign towards the end of the first year.

Concept.

Overview

Sequoia is a brand that has been developed to cater for and empower tall young women age 16 - 26. The brand will produce fashion collections that have been designed specifically for a taller build, taking account of factors beyond just adding a few inches to the bottom of trousers. The designs will consider a range of factors including longer sleeve lengths, trouser proportions, longer skirts and bodysuits in order for them to fit correctly. Sequoia aims to strike a balance between producing timeless, long lasting garments that can be worn season after season, while also fulfilling the desire for trend-driven clothing. An initial collection of 5 pieces will be developed to launch in August for A/W 2022, with a further three pieces added in November, and another three in February. A further 5-piece activewear collection will launch in May. The brand aesthetic is inspired by minimalistic, Scandinavian influences which allows trend-driven styles to be executed in a simplistic and neutral way, producing versatile and timeless collections. Over time the brand will be developed to offer a wide range of styles to create variety and choice for taller women. Alongside the physical clothing items, the aim is to build a brand that stands for empowerment and creates a community for tall girls and women to feel belonging. Being tall comes with insecurities for lots of young people and they can often find it difficult to feel confident about the way they look and their height, in addition to the difficulties and stresses associated with clothes shopping. Sequoia will operate via online platforms, using a website to sell their product. Social media platforms, in particular Instagram, will be the focus for the communication of empowerment and inspiration. Video content will be a prominent feature in order to successfully reach and engage the consumer.

Key Drivers

Growth in height of population

Over the last 150 years, the average height worldwide has increased, particularly in industrialised countries. Some nations have seen increases of up to 10cm (Hadhazy, 2015). This growth has been attributed to developments in the overall standard of living, particularly in terms of diet and disease among children (Hadhazy, 2015). The gradually increasing height of the population means action will be required be the apparel industry to respond to this change and cater for the needs of the population. The data suggests there is a growing market of people above average height, and the provisions by brands should reflect this.

Desire to feel represented

Representation has become incredibly important across all industries in recent years, arguably most predominantly in the fashion sector. A quarter of UK consumers say they want brands to make them feel special and valued (Attest, 2020). There is a desire for a level of personalisation by brands to focus on the individuality of their consumers and respond accordingly. Consumers want to feel that brands care about them and their needs as an individual, therefore creating an opportunity for brands to focus on an experience of individuality for a specific consumer audience.

Increasing demand for considered fashion

It is becoming a growing expectation for fashion retailers to take considered and circular approaches (Afterpay, 2020). 56% of consumers report that sustainable considerations when purchasing clothing are either very or somewhat important, and 30% say they would pay more for products made using sustainable materials (Baram, 2020). This shows that consumers are becoming more conscious of their purchases and seeking out brands they believe gold the same values. The market for environmentally considerate fashion is growing, providing a place of opportunity for a brand like Sequoia.

Table 1: Key drivers that underpin the concept of Sequoia

Mission

To provide tall young women with not only the clothes to fit them, but the confidence to wear them and the knowledge to make good choices.

Vision

Create a brand where innovation inspires confidence, and empowerment is at the core.

Values

Minimal Impact

Sequoia acknowledge that full circularity and total sustainability is difficult to achieve, particularly for a new brand aiming to be affordable. However, making every effort to minimise our impact on the environment where possible is important.

Empowerment

Ensuring every tall girl and woman feels confident and good about themselves is at the heart of the Sequoia brand, and underpins every endeavour.

Equity

Honesty

While Sequoia believes totally in equality, it is important to acknowledge that equity underpins the brand in terms of providing a focus on tall women exclusively and offering something just for them that cannot be found elsewhere in the market. Sequoia believes in building a relationship with its consumers based on trust and loyalty, therefore providing a transparent approach to business practices.

Table 2: An outline of the core values of the Sequoia brand that shape operations and influence decision making

Brand

The brand will launch with a collection of 6 pieces in August 2022, then releasing a further 3 styles every three months for the rest of the first year and a 5-piece activewear range in May. Key considerations: - The designs will be simple and create a range of basic items that provides the foundation for the brand - The simplicity of the garments will also allow the consumer to build a wardrobe of staple pieces that are versatile and can be easily styled in a number of different ways. -The overall aesthetic of the collection will be quite casual and effortless, with some pieces that can be used to create outfits for more formal occasions -The sizing and measurements of the garments will be carefully considered and suitable for a taller body shape

Objectives

Reduce overconsumption producing high quality products that are timeless and versatile, to encourage more considered purchasing and a mindset of longevity among consumers.

Empower and inspire tall young women to feel confident within themselves through having a positive approach to being taller than average and creating a brand where they feel represented and understood.

Create a community through online platforms such as Instagram and connect with consumers using visual tools and video content.

Stakeholders

Enabling Functional

Functional

Enabling stakeholders have a level of control and authority over the business and decision making. Sequoia’s founder/ CEO is their most significant enabling stakeholder as they control the day-to-day running of the business. The government would also be an enabling stakeholder due to the influence that legislations can have on business operations.

Functional stakeholders are essential in the operation of the business. They can be separated into input and output. For Sequoia, their manufacturers would be a key input functional stakeholder as their product is the core of the brand. Other external parties such as packaging suppliers and Authentic Style (website development and maintenance) would also be functional stakeholders, as well as other employees. The main output functinoal stakeholder would be customers.

Normative Functional

Diffused Functional Diffused stakeholders generally have infrequent interaction with the business, and are usually more likely to become involved in times of crisis. Sequoia’s most significant diffused stakeholder is likely to be the media and the way they respond to the actions of the brand.

Normative stakeholders are groups or associations that share a common interest or have similar values/goals. Direct competitors of Sequoia will be normative stakeholders as they are working to achieve a similar goal and meet similar consumer needs. The social media influencers that are part of the marketing campaign are also normative stakeholders who share a common problem of finding tall clothing. The charity that Sequoia are partnering with also share values of sustainability.

Table 3: Sequoia’s stakeholders based on Grunig’s Organizational Linkage Model (Saylor Academy, 2012)

Consumer. 26

Core consumer

Generation

Late Millennials and Older Gen Z

Age

16 - 26

Acorn Classification

2.D.14 Townhouse cosmopolitans 2.D.15 Younger professionals in smaller flats 2.D.17 Socialising young renters 4.K.34 student flats and halls of residence 4.K.36 Educated young people in flats and tenements (CACI, 2020)

Terminal Values

Ambitious, Imaginative, Independent, Honest

Instrumental Values

Equality, Happiness, An exciting life, Selfrespect

Table 4: The core consumer, broken down by their demographics and values

The target consumer for Sequoia will be females age 16-25, specifically those who are taller than average, approximately 5ft 8 and taller. The percentage of females classified ‘tall’ is highest among the 16-24s (Dover, 2019) making them the most significant consumer group in this market and a suitable target audience for Sequoia. ‘Cuspers’ is a term used to collectively describe the oldest members of generation z, and the youngest millennials (approximately age 19-25). They are a significant age group as they are at a transitional point in their life, moving from education into the world of work. They have been described as having a unique perspective on life, money and the future that is incredibly enlightening, as they place a premium on creativity and creating content,” (Business Wire, 2019) Despite having significantly lower incomes than millennials as a whole, and 30% stating finances as a main form of stress, spending by Cuspers is not far off that of millennials across all categories ($417 vs $470 on fashion) (Media Group Online, 2019). They also tend to make impulse purchases (Goldsmith, 2019) Under 25s were 2.5 times more likely to have been working in a sector adversely affected by the lockdown (Afterpay, 2020). Additionally, university graduates have been impacted by the lack of jobs and work opportunities available currently. There were 50% more new businesses registered in June 2020 compared to June 2019 mainly as a result of Covid-19 (Shaw, 2020). . Many young people have been responsible for these new businesses, taking matters into their own hands when struggling to find employment. This consumer age group have proved to be resilient, proactive and creative, using an innovative way of thinking to overcome challenges. As a result, they will expect the brands they buy from to be doing the same.

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Figure 1: Rogers Diffusion of Innovation Theory

Rogers diffusion of innovation theory addresses the way consumers adopt new trends and ideas at different rates. The target audience of Sequoia fall between the early adopters and early majority. This is because these consumers seek to be trend driven in their purchases and they will be early adopters in some aspects of life such as technology and social media. However when it comes to fashion, the lack of availability in clothing for them as tall females means they often have to wait a bit longer for brands to pick up the latest trends within their tall ranges, therefore meaning they may fall more into the early majority in this respect.

Tribe one

The tall and troubled The females that make up this consumer tribe have grown up with insecurities surrounding the way they look, specifically with regards to their height. They may have felt a sense of segregation from other people their age and been subject to stereotypes about what sport they play or what job they will end up doing. They are likely to be at the lower age bracket of Sequoia’s target audience as these confidence issues are generally more common in the teenage population, and therefore will display more typical generation Z qualities. These consumers shop predominantly online due to the limited availability of clothing in stores, and although they wish to be more trend-driven and innovative, their fashion purchases are more dictated by the availability of tall clothing provided by retailers, which is often not up to date with the most current trends

self actualisation esteem

love and belonging

safety needs physiological needs

Figure 2: Maslow’s Hierarchy of Needs

Maslow’s hierarchy of needs looks at the progression of fulfilment of an individuals needs, focusing on the idea that a new level cannot be reached until the previous one is fulfilled. This tribe strive for ‘belongingness and love needs’. Having felt insecure and under-represented due to their height, they aspire to feel like they fit in and belong.

Sensitive: Stereotypes often associated with tall young females and comments that are frequently thrown about have created insecurities for the individuals in this tribe and caused them to develop more cautious personalities in certain situations. The opinions of other people can be quite influential for this tribe as they seek validation from their friends, family and even strangers. It is important for them to feel accepted by others, and they can be easily affected by things people say. Growing up with such a strong presence of social media in their lives has potentially heightened the issues of confidence and comparing themselves to others, however many are now beginning to discover the benefits of being able to seek out and follow people they can relate to on social media.

Sociable: Despite the insecurities of this tribe, they are generally very sociable individuals, both online and offline, and as previously discussed, friends and family provide an important influence . 57% of 16-23 year olds said spending time with friends in person is the activity they enjoy the most (Emmanuel, 2020. As a result, technology is important as a means of communication, during the Covid-19 lockdown when face-to-face interaction was so limited. Connecting with others is the main purpose of using social media as it fulfils the desire of this group to feel in touch with the people that are important to them. According to Statista, 79% of 15-25 year olds use WhatsApp, and 76% use Instagram (Statista, 2021) highlighting the significance of platforms that allow communication with existing friends and family, as well as avenues to meet and interact with new people across the world.

Individuality: This tribe value individualism and the importance of feeling valued, accepted and represented. Brands that celebrate self-expression and empowerment will appeal to this group. They value individualism over inclusion in the sense that they don’t want brands to cater for everyone, they want brands to cater for the individual (Owen, 2019). This is particularly important for tall women who feel that their needs as a group, and an individual are not being taken into consideration. In a survey of tall women, 51% of people felt that no effort at all is being made at accommodating taller consumers, and a further 48% felt only minimal attempt Is being made by the average retailer (Hillsborough, 2014). This creates a focus on the importance of individuality for them.

Respect: Respect is an important value for this tribe in many different aspects. Many of these individuals have suffered from derogatory comments about their height so feeling as though they are being treated in a respectful way has become even more important to them. They are open-minded individuals who are accepting of the diverse range of people that make up the generation they are a part of, and therefore the expect to be treated in the same way. This respect from other people will enable them to further develop their self respect and ultimately build greater confidence within themselves.

Tribe two

Concious learners The individuals within this tribe may be more likely to be at the upper end of Sequoia’s target audience age bracket. As they get older, they are becoming more aware of environmental concerns and are becoming more conscious of their own individual impact on the environment. They are generally welleducated people who are motivated to learn more about themselves and the world. As a result, they often have strong opinions but are non-judgemental and open-minded. They like to listen to others and hear different opinions as they know this will help broaden their horizons. As consumers, this group are in a transitional period where they are in the process of making changes to their consumption as they are becoming more educated on the impacts of their purchases. 60% of younger millennials agree that recent news stories have made them begin to question shopping from lowpriced online retailers (Sender, 2020). They are focusing on small, gradual steps to a more consumption-conscious lifestyle.

self actualisation esteem

love and belonging

safety needs physiological needs

Figure 3: Maslow’s Hierarchy of Needs

This tribe strive for ‘self actualisation’. They are ambitious and motivated individuals who aspire to better themselves and have a positive impact.

Ambitious: This group is made up of individuals that are always aiming to do more. They have high aspirations for themselves and their future careers and lives. 76% of Gen Z believe they are the drivers of their career and will work for their own professional advancement and 49% want to start their own business (Owen, 2019). In terms of purchasing behaviours their ambition manifests itself in their consumption patterns. These consumers strive to make decisions that are good for the planet, however they have found this difficult to do with fashion due to the limited options available. They also seek to be brand loyal, but sometimes struggle to implement this into their purchasing.

Passionate: Technology and education have driven these individuals to be highly driven and passionate. They are being influenced by individuals such as Greta Thunberg who inspire desire for change and positive action. The presence of individuals such as this encourage a passionate reaction towards current issues in the world. These individuals are likely to be part of ‘Gen We’ who are shifting the focus from ‘me’ to ‘we’ (Owen, 2019). They portray activist qualities and use their time to educate themselves on issues they feel strongly about, such as inclusivity, diversity and the environment.

Minimalism: This tribe have previously been quite consumption heavy, particularly when trying to figure out their style, what suits their body and what fits the best. Now they are becoming more impact-conscious and therefore want to buy less, but buy better. 35% of women reported an intention to buy fewer clothes in the future (Elan, 2020) highlighting the shift in mindset of these consumers from endless consumption to more considered purchases. One third of younger millennials also agree they have become less interested in fashion trends since the Covid-19 outbreak (Sender, 2020). These consumers are developing a deeper appreciation for quality and sustainability in timeless fashion that they can wear season after season, and adopting a ‘less is more’ attitude.

Authenticity: These consumers want to have a positive impact and therefore strive to make good choices. They value honesty and transparency from brands, where information is provided about the manufacturing process of the products. 68% of online fashion shoppers say they would like to have more information about where products are made (Sender, 2020). Brands that express values associated with sustainable considerations will appeal to these consumers. Marketing to these individuals can sometimes be difficult due to the value they place on personal recommendations and genuine and honest consumer feedback that they value over communications from brands that are used in many traditional paid marketing methods.

Competitors. 40

Market Sector

Tall market Over the last 150 years, the average height worldwide has increased, particularly in industrialised countries. This increase in average height means there is a growing market for tall fashion. Research showed that google searches related to tall clothing increasing in 2020 (Marci, 2021). The release of new tall products rose 9% in 2020 compared to 2019 however this category remained at 4% of total newness in mass market brands in 2019 and 2020 (Marci, 2021). This data suggests there is opportunity for brands to invest in this growing market, particularly where there is a focus on trend-driven fashion aimed at a younger audience due to the fact that the percentage of women 5’10” and over is highest in the 16-24 category (Dover, 2019). According to Mintel, ‘standard’ height for women is usually considered to be between 5’3” and 5’9”, yet many retailers that do offer tall ranges market these as being aimed towards women 5’7” or 5’8” and taller (Dover, 2019). This suggest there is a level of confusion within the market and a lack of clarity between brands in terms of sizing, making it difficult for taller-than-average women to know where to shop to find the most appropriate clothes. This also highlights issues of inconsistency within the sector that makes shopping for clothes difficult for the consumers within the tall fashion market. Inclusion and empowerment are still relevant issues within the market of tall women. As the body positivity movement continues to grow, it is now being noted that while brands are quick to capitalise on diversity, this seems to focus around size and ethnicity, but often omits height (Ell, 2019). As a result, the growth in Instagram influencers has been significant within this sector, as more tall young women are using the platform to promote positivity towards being tall, help tall girls feel part of a community and offer fashion inspiration and advice.

Online retail market Sequoia will operate online only initially, and therefore the online retail market sector is importan to consider. From 2013 to 2018, online retail overall in the UK grew 54.9% (Sabanoglu, 2020a). Online fashion retailing in particular grew 26% in 2020, reaching a sales value of £28 billion (Sender, 2020). In 2020, more than half of the UK population are reported to have purchased clothes, footwear or accessories online, with women making up the most significant proportion (Sabanoglu, 2020b). Of the 16-24 consumer group, 86% are said to have purchased clothing online (Sender, 2020). Although the shift from in-store shopping to online had begun to occur in advance of Covid-19, the pandemic highlighted the benefits of e-commerce for fashion brands, drawing attention to the flexibility of selling online. Initially the total closure of physical stores meant that shopping online was the only option for consumers. As stores began to re-open, the concerns and anxieties around the virus and being in public spaces continued to impact in-store retailing, meaning the focus remained largely on online purchasing (Sender, 2020). Online sales accounted for 56% of total fashion sales in 2020, as consumers turned to online-only retailers such as Asos and Amazon, as well as the websites of high street retailers such as Zara (Sender, 2020). It is predicted that this accelerated shift towards an e-commerce focussed retail industry will continue to grow as consumers have become more accustomed to the convenience of online shopping (Passport, 2021). In 2022 alone, it is thought that fashion e-commerce revenue growth will be 4.6% (Sabanoglu, 2020b) The shift towards online retail can be seen in the growth of fashion e-commerce users, from 34.5 million in the UK in 2017, to 41.1 in 2020, and a prediction of 48.6 by 2024 (Statista Research Department, 2020). It is clear that the benefits of online retailing are being realised by an increasing percentage of the population. Next has the largest share of the online fashion sector, and Asos is reported to be the most trusted brand (Sender, 2020). It is important to consider strategies and innovations being used by these successful brands to allow Sequoia to enter a competitive market sector with a strong brand image and strategies in place to compete. It has been suggested that issues with fit and sizing are holding back even further growth of online fashion retailing, as 49% of female online shoppers age 16-34 say they struggle to find clothes that fit online (Sender, 2020). It has become increasingly important for online brands to be aware of this and work to find solutions to improve sizing consistency, providing garment details and utilise technology to develop additional sizing tools.

Mobile retail market While computers/laptops are still the most popular device to make fashion purchases online, their popularity has decreased over the last 3 years in favour of smartphone usage. In 2020, 41% of people were reported to have made an online fashion purchase via a smartphone, compared to only 32% in 2017 (Sender, 2020). This is particularly significant for Sequoia as a brand due to the fact that this increase in smartphone usage is being driven by young people, with 68% of 16-24s purchasing fashion via their smartphones (Sender, 2020). Consumers appear to prefer shopping via a retailers website rather than an app (Sender, 2020) which is likely to be a result of the desire for consumers to browse a range of options from different retailers, rather than being loyal to one specific brand. Research has shown that 42% of Gen Z and 38% of younger millennials have purchased clothing directly from social media. A focus has been placed on small independent retailers operating from social media platforms such as Instagram, which is providing them with a platform to grow successfully (Sender, 2020). Fashion retailing via smartphones is predicted to significantly grow as younger generations who have been brought up with smartphone technology become more independent and begin making their own purchases through their phones (Sender, 2020). As social media usage has increased throughout the pandemic, it is thought that the integration of social media with e-commerce will be significant, and the buying journey via smartphone will involve social media platforms (Sender, 2020). There are significant growth opportunities within the mobile retailing market, particularly when considering the younger generations, to create a sociable shopping experience (Sender, 2020). this could involve screen sharing technologies for consumers to feel as though they are shopping with their friends, which would contribute to the omni-channel operation of a brand and appeal to younger consumers.

Direct Competitors

The following brands have been identified as direct competitors of Sequoia because they operate as a tall-specific clothing retailer, offering garments for women that are designed for a taller build.

These competitors are direct competitors of Sequoia, operating within the UK marketplace. All three brands were founded by tall women, to try and fulfil their own needs as well as other tall consumers. This helps build a stronger brand image and will be well received by consumers as they value brands with a clear and genuine purpose. Long Tall Sally is the most prominent player in the tall UK clothing market, yet has a similar Instagram following as TTYA who are generally less well-known. This would suggest that Long Tall Sally are either not making effective use of their social media channels, or perhaps are targeting an audience that do not use social media as much. The product offering of both Belle Grande and TTYA is very limited and both their websites are quite basic and not very user friendly. Overall Long Tall Sally are the biggest competitor of Sequoia in terms of the prominence within the tall market, however their product appears to target a different consumer demographic.

Long Tall Sally

Belle Grande

TTYA (taller than your average)

Summary

Long Tall Sally is a clothing and shoe retailer that has been operating in the UK since 1976, selling apparel for tall women 5’8” and over. They previously sold through physical stores and catalogue but not operate solely online. They announced their closure in June 2020 but were acquired by AK retail in August

Belle Grande was created with the aim to create the perfect tall collection for tall women. Their products are designed in the UK and produced in Italy in limited quantities. They have recently restructured to assemble a collection of luxury tights for tall women

TTYA offer accessible, modern and functional clothing for tall women. Its founder believes all women deserve to feel style conscious not self conscious. They aim to operate as a brand that encourages confidence and in 2015 they launched TTYA talks - which encourages women to share stories.

Country of origin

Founded

Judy Rich, 6 ft tall since she was 13 years old.

Ekene Pruce, a 6’2.5” designer

Irene Agbontaen (5’11”) - London based fashion stylist

Product

Main focus on their own line of products but also sell other brands Claim to sell ‘everything from fashionable trend-led pieces to classic wardrobe staples,’ (LongTallSally, 2021) Focus on footwear as well as clothing

very limited selection of knitted clothing items Focus on tights aimed at women 5’8” to 6’9”

Not based on trend or seasons, focus instead on staple, timeless essential pieces Pieces cover a variety of cultural influences

Price

£4 - £200

£5.99 - £204

£10 - £120

Distribution Channels

Online only since closing all stores in 2018

Online website

Online website Launched in Selfridges in 2013, has also been stocked in Barney’s (NYC) and stocked on ASOS

Consumer

women 5’8” and over

tall women

women 5’9” and over

Social media

Instagram: 38.4k Twitter: 7092 followers

Instagram: 678 followers Twitter: 533 followers

Instagram: 39.6k followers

Strengths

•only tall specific brand operating in the UK •different leg lengths available for some items and inside seam length stated

• USP focusing on tights for longer legs • ship worldwide •blog on website

• cultural / urban feel •ASOS edit contribute to brand growth

Weaknesses

•unclear brand image – promote themselves as a trend driven brand but are not reaching that audience •recent poor performance – future of brand is uncertain

• extremely limited range of clothing and lack of clarity on style/overall image of brand • difficult to navigate website

• inactive social media since April 2020 • some products seem quite trend-driven despite brand ethos being timeless fashion • basic website functions (filters etc)

Table 5: Direct competitors - UK tall retailers

These brands are also direct competitors of Sequoia, but operating in international markets. Under normal circumstances, all of these brands do ship to the UK, but their main country of operation is elsewhere in the world. During Covid-19, Amalli Talli have suspended deliveries outside the USA. Height of fashion and I love tall market their brands at women 5’10” and over which is taller than the UK competitors. This could be as a result of the average height in different countries and the provisions by other brands in these international markets. Amalli Talli have a significant social media following on both Instagram and Facebook in comparison to the other brands. They are very active on these platforms and the way they engage with their consumers is similar to the aspirations of Sequoia. Each brand presents different qualities that contribute to their competitiveness against Sequoia within the tall market. The sustainability focus of Tall Frenchies could be significant, and the age group Height of Fashion are targeting could be an area of competition.

Height of Fashion Amalli Talli

Tall Frenchies

I love tall

Summary

A trend driven brand operating in Australia to provide tall apparel. Has a young and informal aesthetic with a similar vibe to Missguided on their website. The brand is inspired by confidence, uniqueness and versatility.

Founded by two tall sisters who believe when style and fit come together, it is truly life changing. They focus on the importance of different proportions at different heights and improving self confidence of tall girls.

Tall Frenchies launched two collections several years ago but they are now in the process of relaunching as a sustainable brand for tall women. They aim to focus on timeless pieces and high-quality.

I love tall is a brand that caters for both tall men and women. They have always sold other labels through their website but have more recently started manufacturing their own designs to more closely meet customer requirements.

Country of origin

Australia

USA

France

Switzerland

Founded

Natalie Matthews - 6’3” Founded based on a personal need, having seen a gap in the market, wanted to be more fashionable, flattering and edgier.

Amy and Alli, two sisters (6’4” and 5’10” respectively) had been frustrated by the lack of options in the general market.

Camille in 2017 6 ft tall and was fed up of sleeves and trousers being too short so decided to fix the problem herself

Annemarie Sickeler originally wasn’t interested in fashion due to clothing not fitting but has now grown to love fashion and her height

Product

wide product range that includes accessories/ jewellery 34 and 36 inch leg lengths in jeans

focus on different proportions of taller girls aim to create stylish pieces range of 82 products on website

Currently in the process of re-launching with new management and bigger focus on sustainability Basic items that will last to reduce waste combined with some limited collections that are more trend-driven

Stock their own like of product as well as others product for men and women Up to 38inch jeans in some style

Price

£11 - £183

$36 -$130 (£25.87 -£93.42)

Not currently available due €9.95 - €169.95 to re-launch (£8.76 - £158.36)

Distribution Channels

Online only - ship worldwide but based in Australia

Online website Currently only ship within North America due to Covid-19 but have shipped internationally in the past

Online website

Online and stores in Hamburg and Zurich

Consumer

women over 5’10”

tall girls and women

women over 5’8”

women over 1.8m and men over 1.95m

Social media

Instagram: 15.5k followers Facebook: 1901 likes Twitter 387 followers

Instagram: 35k followers Instagram: 561 followers Facebook: 13,171 likes Facebook: 966 likes Twitter: 586 followers

Instagram: 1036 followers Facebook: 1051 likes

Strengths

• clear brand image that seems to cater towards a younger consumer • interaction on social media

•consider proportions of clothing • fit on a wide range of heights, up to 6’4” •passionate founders

• base products directly on what consumers want - using website to gather information from potential consumers • sustainable considerations

• caters for both men and women • have stores so customers can try on

Weaknesses

• quite limited sizing range - models are not very diverse or representative

• limited market reach currently

• difficult to get a full picture of the brand due to re-launch - therefore unable to see any collections or prices

• weak social media platforms • unclear target audience age • poor website translation

Table 6: Direct competitors - international tall retailers

Indirect Competitors

The following brands have been identified as indirect competitors of Sequoia, for a variety of reasons.

These brands are indirect competitors of Sequoia. Asos and Boohoo are online clothing retailers that have a limited tall offering, but this is not the focus of the brand. H&M provide a competitiveness in their brand aesthetic and sustainable business considerations. The tall ranges provided by Asos and Boohoo provide competition for Sequoia due to their commerciality and brand awareness. They also share a consumer audience in terms of age, but Sequoia will differentiate themselves based on individuality, specialism and sustainability that these brands don’t offer. H&M shares a similar brand aesthetic and minimalist approach to Sequoia, however they do not directly compete due to the lack of sizing catering by H&M. The price range of Sequoia will be similar to some collections by Asos and H&M, but will be at the higher end due to sustainable considerations and the higher production costs incurred as a small business.

Asos

Boohoo

H&M

Summary

Asos (As Seen on Screen) is one of the leading online fashion retailers. They sell both their own brand collections as well as styles by a large variety of other brands from high street retailers to luxury brands. They stock tall apparel of their own label and other brands.

Boohoo is an online only fast fashion retailer who sell fashion items at low prices. They are considered one of the lower priced online retailers and have a reputation for heavy promotional activity. Their target audience of a young consumer means they are very active on social media.

H&M is an originally Swedish brand who operate online and offline worldwide selling womenswear, menswear, childrenswear and home furnishings. The brand has a neutral aesthetic and is working towards more sustainable practices.

Vision

The world’s number one fashion destination for twenty-somethings

lead the fashion e-commerce market globally, in a way that delivers for our customers, people, suppliers and stakeholders

Our vision is to lead the change towards circular and climate positive fashion while being a fair and equal company (H&M, 2021)

Product

Sell a combination of their own brands (ASOS design, ASOS edition, ASOS white, ASOS Made In, ASOS 4505, ASOS collabs) and other brands and designers. Newness is important – between 2,500 and 7000 new styles arrive every week (Smith, 2017) Stock 2,800 tall styles

Take inspiration from trends worldwide Drop over 500 new products every week (Boohoo, 2021) Tall offering grew 12% YoY in 2020 (Marci, 2021)

Women focussed fashion Good range of basics and neutrals Wide offering from cheap basics to more premium items to suit a wide customer base Sizes XS-XL

Price

wide price range from around £5 up to £400

£2 - £70

£3-£200 (pricier items are part of a premium range)

Consumer

20-something fashion lovers (5’9” + for tall section)

mid teens to early twenties (5’7” + for tall section

Younger women in lower and middle working class

Distribution Channels

Online and mobile app

4429 physical stores, and operates in 52 online markets

Promotion

Instagram: 11.2M followers Twitter: 1M TikTok: 535.7K

Instagram: 7.1M Twitter: 539.3K TikTok: 485.8K

Instagram: 36.7M Twitter: 8.1M TikTok: 689

Strengths

•Offers one of the biggest ranges of tall clothing •Wide range of price points • Stocking a range of brands allows for a huge variety of styles to suit the different fashion tastes of lots of consumers

•affordable •growing their catering for tall women • keep up with trends and always offering something new to customers

• sustainable considerations • mix of basic, wardrobe staples and fashion items • clear neutral aesthetic

Weaknesses

•different brands could result in sizing inconsistencies •only 30% of women’s shoes are available in bigger than size 8

•issues around sustainability •doesn’t always give models height which makes it difficult to predict fit before ordering •recently faced a scandal in the media over ethical claims that could negatively impact their brand image

• potentially confusing brand positioning - some collections value/high-street and some much more luxury • inconsistent sizing sometimes difficult to navigate and not always inclusive

Table 7: Indirect competitors - high street fashion retailers with some tall offering and/or a similar brand aesthetic/ values

These brands represent different markets that Sequoia will be operating within. The Tall Exchange and The Tall Society are both online communities that promote confidence and create a platform to celebrate tall women. Both also have product based elements alongside the community. The Sequoia brand aims to create a similar community space alongside the clothing collections, which makes these two organisations competitors. Glossier and Moons and Junes have been identified as brands that aim to represent more than just the product they sell, holiding values of empowerment and using a retailing brands as a platform to address important issues and open conversations. They are competitors because the Sequoia brand will aim to operate in a similar way, building up a brand that stands for more than just the physical product. The Tall Exchange and The Tall Society both aim to build up the marketplace for tall women through their activities. The Tall Exchange is more product focused with the resale of tall clothing whereas the Tall Society focuses more on the community and encouraging tall women to unite. Glossier and Moons and Junes provide examples of how brands can successfully create a community and involve their consumers in their products to create a brand- consumer relationship. Although the product content of these brands is not competitive to that of Sequoia, they way they operate as an overall brand sets a benchmark for consumer-centred practices and female empowerment.

The Tall Exchange The Tall Society

Glossier

Moons and Junes

Summary

The Tall Exchange is an online resale platform for tall men’s and women’s fashion. It is currently more established in the US than the UK. The website also has a blog with stories from tall women that aim to inspire both buyers and sellers.

The Tall Society is an online community that has been created to unite and empower tall women and encourage positive attitudes towards height. They hold virtual and physical events for networking and to open conversations

Glossier is a beauty brand that began as a beauty recommendations website. Now they sell their own products, with their consumers at the core, aiming to enable conversations and develop relationships with customers, building a brand that is more than just the product.

Moons and Junes is a Copenhagen based, inclusive underwear brand. They are consumer centred, focusing on creating products that people actually want, and creating an inclusive community with a safe space to have conversations about body image.

Vision

Be an online community to allow sales and resale of new and preloved tall fashion (The Tall Exchange, 2020)

Create a community for tall women to unite

To give voice through beauty and to help democratize an industry that has forever been top-down

Empower women to feel comfortable and beautiful in their own skin by providing them with high quality, well-designed underwear.

Product

Reselling women’s and men’s fashion and accessories targeted at tall consumers Range of brands including high street and luxury Development of UK website is quite limited

Service based - using online platforms to create a positive community and inspire and empower women Also sell ‘merch’ style products including hoodies, hats, mugs and phone cases with tall society branding/slogans

Focus on skincare, makeup, body care and fragrance Design and select products based on what consumers tell them they wish existed Relatively narrow product range of 40 SKUs Offer bundles/sets of some products

Products go through a series of focus groups and fittings with 50 people Currently available in 4 sizes, but bras are designed to fit different body styles and shapes Clear representation of each size product on different body types, stating measurements

Price Distribution Channels

Varied

$20- $62

£8 - £70

£22.86 - £53.35

Online website, different areas for different countries/markets

Have a website and Operate mainly online Instagram page - products via their website, and also sold through website have three stores: New York, Los Angeles and London

Own website and sell via 7 other online marketplaces across Europe, and in 6 physical locations across Europe and the US.

Consumer

Tall men and women

Tall girls and women who potentially feel insecure about their height

Originally millennials demographic but now more based on psychographic factors of someone who understands the role beauty plays in their life (Danziger, 2018)

Women of all sizes and ages

Promotion

Instagram: 2382 Facebook: 1059 likes

Instagram: 34.2k Facebook: 18.8k likes

Instagram: 2.7M Twitter: 108.4k

Instagram: 28.6k Facebook: 1890 likes

Strengths

• sustainability focus encouraging resale of products • specific service focucs

• good engagement on social media platforms •use hashtags to create unity

•clear brand aesthetic •consumer-centred approach

• encourage body positivity • good representation on website and social media

Weaknesses

• limited product availability particularly within the UK •could do more to build community

•scope to develop a clearer brand aesthetic

•some products are quite a high price point for target consumer •very few stores limits ability to test products and use in store experiences

•could further expand sizing range so all styles can be suitable fo different body types

Table 8: Indirect competitors - other brands that have a similar ethos of empowerment

SWOT

Strengths

Weaknesses

Developing a place of community to positive influence young females

Some elements of sustainable operation sacrificed in order to find a balance between price and sustainability

Offers trend-driven pieces that will appeal to a younger female audience

It can take time to build recognition and credibility within the fashion sector

Creating a focus on tall women who feel under-catered for in the current market

Narrow target audience in terms of age, gender and height

Utilising social media as a platform for positivity Engaging with followers/consumers using video as this is the media they respond best to (Baron, 2019)

Difficult to predict initial demand which could result in stock issues – products not being available to customers at an early stage which could have a longer-term negative impact on the brand

Opportunities

Threats

The height of the humanity worldwide is gradually increasing over time (Baird, 2015) so the market for tall fashion will continue to increase as a greater proportion of women fall into the 5’8” and over category.

The ongoing coronavirus pandemic has cause economic uncertainty and reduced disposable income, particularly for the target audience of Sequoia, which could result in reduced sales as people are being more careful with their spending

Could expand into the male market in the future

Consumers may stick to what they know with existing, established brands that do offer some tall clothing

Develop and app to support the website and create a more omnichannel experience

Potential increase in competition as other brands increase their tall offering- e.g. Boohoo increased their tall range by 12% YoY in 2020 (Marci, 2021)

Longer term expansion into other European countries that are also seeing significant overall height growth Collaboration with other retailers to stock product in store so consumers feel they can actually try clothing that fits them in a physical environment

Tall brands based in international markets could expand into the UK resulting in further competition

Table 9: Analysis of the strengths and weaknesses of Sequoia, and acknowledgement of potential opportunities and threats of the brand

Market Map

High Price

Limited product offering

Wide product offering

Low Price

Figure 4: Market map of direct competitors of Sequoia

High sustainable focus

Weak brand identity

Strong brand identity

Low sustainable focus Figure 5: Market map of indirect competitors of Sequoia

The market maps show a visual comparison of the brands that have been identified as both direct and indirect competitors of Sequoia. It identifies a gap in the market for a tall brand that has a diverse product offering at an affordable price. It can also be observed that there is an established and growing market of brands with a strong identity, meaning Sequoia will have to focus on clear communication of their USP in order to be successful within this area of the market. The SWOT analysis also acknowledged threats Sequoia may face from more established brands with a highly developed brand identity, further reinforcing the importance of a clear USP for Sequoia. Additionally, the SWOT identified potential issues with stock and product availability. To overcome this, Sequoia will need to ensure sales are tracked, recorded and analysed on a weekly basis in order to gain a better understanding of demand and react appropriately.

USP

The brand will be the first UK based brand catering specifically and exclusively for tall women that is trend driven and aimed at an audience of 16-24 year olds. The brand is also unique in the way it acts as more than just a clothing retailer, providing a platform for empowerment and inclusion.

broad

cost leadership

differentiation

narrow

Porters model of competitive advantage provides a framework for the different ways a brand can ensure they achieve an advantage over other brands within their market of operation. Based on this model, Sequoia will achieve competitive advantage via differentiation focus as the brand provides a specialist product that sits within a narrow market, with a specific audience of tall females.

cost focus

differentiation focus

differentiation

cost Figure 6: Porter’s model of competitive advantage

Operations. 66

Production Process

The successful operation of Sequoia will rely on a number of different individuals and companies to facilitate an efficient production process. The stages of production have been identified and the associated costs estimated using figures provided by Rag Sourcing, and further insight from Annette Clarke (industry expert - buying) and Bex Howie (Founder of Esme). The total lead time for the whole production process is predicted to be 21 weeks. Based on this, these timelines have been calculated to plan when each production stage would need to be completed by in order for stock to be ready for each launch throughout the year.

n i g l p m

is gn

The design of the products will be based upon research carried out by the founder to ensure they communicate the aesthetic of the brand and fulfil consumer demands. Following research, product CADs will be drawn up, and once approved, tech packs can be made ready for production.

An initial sample is created as the first visual representation of the garment. This will be charged at a fixed price and can be found under production costs. Once the initial sample has been approved, an agreement of production will be made. Following this, a number of pre-production samples will be made to finalise the design before bulk production commences. The cost of pre-production samples is included in the cost of production for each garment. Sample takes 4 weeks plus 1 week for shipment (5 weeks total) Allow for 3 rounds of sampling (5 weeks x 3 rounds = 15 weeks sampling) Lead time: 15 weeks

t i o c u d n

Shi

Pro

nt e m p

Production will take place at a sustainable factory in Turkey, sourced by fashion manufacture company ‘Rag Sourcing’. This will include all fabric sourcing, manufacture and labels and trims. Organic cotton, recycled polyester and bamboo will be used for a large majority of the garments. Quality control checks will be completed during and after production to ensure the quality of the garments is high and consistent

Once quality control checks have been completed, the garments will be transported by road from Turkey to the UK where they will be stored in the rented storage unit, close to the founders house. Lead time: 2 weeks

Lead time: 4 weeks

Joggers Total units: 400 Colourways: 3 Units per colourway: 150, 150, 100 Sizes: XS-XL each in long and extra long Ratios: XS:1 S:3 M:3 L:2 XL:1 Cost price: £17 Margin: 57.5% Retail selling price: £40 Hoodie: Total units: 300 Colourways: 3 Units per colourway: 100 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £40

Jeans Total units: 500 Colourways: 2 Units per colourway: 400, 100 Sizes: Waist 24, 26, 28, 30, 32, 34, 36. Leg: 36, 38 Ratios: Retail selling price: £45

Long Sleeve Bodysuit: Total units: 275 Colourways: 2 Units per colourway: 100, 75 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £25

Shacket: Total units: 150 Colourways: 1 Units per colourway: 150 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £55

Sampling process begins: 4th March 2022

Production begins: 17th June 2022

Shipment: 15th July 2022

Arrive two weeks prior to launch: 29th July 2022

Launch: 12th August 2022

12 Aug

Knit Jumper: Total units: 175 Colourways: 1 Units per colourway: 175 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £35

Ribbed trouser: Total units: 200 Colourways: 2 Units per colourway: 100 Sizes: XS-XL each in long and extra long Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £35

Blazer: Total units: 100 Colourways: 1 Units per colourway: 100 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £48

Sampling process begins: 27th May 2022

Production begins: 9th September 2022

Shipment: 7th October 2022

Arrive two weeks prior to launch: 21st October 2022

Launch: 4th November 2022

4 Nov

Shirt Dress: Total units: 200 Colourways: 2 Units per colourway: 200 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £45

Cropped sweater: Total units: 150 Colourways: 1 Units per colourway: 150 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £32

Short sleeve bodysuit: Total units: 175 Colourways: 2 Units per colourway: 100, 75 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £18

Sampling process begins: 26th August 2022

Production begins: 9th December 2022

Shipment: 6th January 2023

Arrive two weeks prior to launch: 20th January 2023

Launch: 3rd February 2023

3 Feb

Shorts: Total units: 150 Colourways: 1 Units per colourway: 150 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £25

Sports bra: Total units: 150 Colourways: 2 Units per colourway: 75 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £18

Top: Total units: 100 Colourways: 1 Units per colourway: 100 Sizes: XS-XL Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £25

Cropped leggings: Total units: 200 Colourways: 2 Units per colourway: 100 Sizes: XS-XL each in long and extra long Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £28

Full length leggings: Total units: 150 Colourways: 2 Units per colourway: 75 Sizes: XS-XL each in long and extra long Ratios: XS:1 S:3 M:3 L:2 XL:1 Retail selling price: £35

Sampling process begins: 23rd December 2022

Production begins: 10th April 2023

Shipment: 7th April 2023

Arrive two weeks prior to launch: 23rd April 2023

Launch: 5th May 2023

5 May

Production Costs

Sample Cost

Production Cost per unit

Units

Total cost (excl sample)

Joggers

£150

£17.00

400

£6800

Hoodie

£100

£19.50

300

£5850

Jeans

£150

£19.00

500

£9500

L-sleeve bodysuit Shacket

£100

£10.00

275

£2750

£150

£22.50

150

£3375

Blazer

£150

£22.50

100

£2250

Ribbed trouser

£150

£17.00

250

£4250

Knit jumper

£100

£17.00

200

£3400

Shirt Dress

£100

£21.00

200

£4200

S- sleeve bodysuit Sweater

£100

£9.00

175

£1575

£100

£17.00

150

£2550

Shorts

£100

£14.00

150

£2100

Sports bra

£100

£10.00

150

£1500

Top

£100

£10.00

100

£1000

Full length leggings Cropped leggings

£100

£14.00

150

£2100

£100

£12.00

200

£2400

Table 10: Production costs of individual garments and total order quantities

Order value

Samples

Transportation

Total

August launch

28275

650

1696.5

30621.5

November launch

9900

400

594

10894

February launch

8325

300

499.5

9124.5

May launch

9100

500

546

10146

(6% of order value)

Table 11: Total costs of production for each launch, including samples and transportation

Packaging & Distribution

Royal Mail will be used to send items to customers. Customers will be required to pay a £3.99 delivery fee on all orders to cover the cost of postage. Orders will be sent by Royal Mail second class which arrives in 2-3 business days at a cost of £3.00 per parcel (Royal Mail, 2021)

Resource

Source

Quantity

Price

Notes

Mailing bags

Kite packaging

500

£73.75

Eco-mailing bags, 40x50cm (re-ordered every other month)

Tissue Paper

Kite Packaging

960

£20.60

Off white tissue paper 508 x 762mm (re-ordered every other month)

Brand Stickers

Banana Print

288

£19.95

Circle, 64mm (re-ordered monthly)

Swing tag

Banana Print

500

£31.95

85x55mm, 350gsm recycled (re-ordered every other month)

Postcards

Banana Print

300

£34.95

148x105mm, 350gsm recycled (re-ordered monthly)

Shipping labels

Amazon

500

£17.99

4” x 6” Fanfold Direct Thermal Labels (reordered every other month)

Table 12: Packaging considerations and costs

Sales Forecast

This table details Sequoia’s predicted sales for the first year of operation, by product volume Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Joggers

400

Hoodie

300

Jeans

500

L-sleeve bodysuit

275

Shacket

150

Blazer

100

Ribbed trouser

250

Knit jumper

200

Shirt Dress

200

S- sleeve bodysuit

175

Sweater

150

Shorts

150

Sports Bra

150

Top

100

Cropped leggings

200

Full length leggings

150

539

371

306

Total

122

177

282

317

253

371

358

Table 13: Predicted sales by product volume for the first year of operation

293

Total

3450

This table details Sequoia’s predicted sales revenue for the first year of operation. Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Total

Joggers

720

1080

1720

1920

2240

1920

2160

1760

1200

880

240

160

16000

Hoodie

480

1120

1360

1480

1680

1240

1440

1240

1040

480

320

120

12000

Jeans

900

1800

2295

2835

2790

2025

2385

2520

2205

1530

810

405

22500

L-sleeve bodysuit

175

375

600

800

900

850

925

950

650

325

225

150

6925

Shacket

220

660

1375

1815

1650

1155

770

330

165

110

8250

Blazer

480

816

720

1056

768

528

288

4800

Wide sweatpants

1190

1470

1155

1225

1085

945

770

525

385

8750

Knit jumper

875

1120

980

1155

875

805

560

350

280

7000

Shirt Dress

1665

1935

1755

1440

1215

990

9000

S- sleeve bodysuit

396

558

468

540

612

576

3150

Sweater

896

1184

1056

832

512

320

4800

Shorts

1550

1125

1075

3750

Sports bra

1044

882

774

2700

Top

1225

700

575

2500

Cropped leggings

2464

1680

1456

5600

Full length leggings

2345

1540

1365

5250

16383

10832

8679

122975

Total

2495

5035

7350

11395

12666

10045

14073

Table 14: Predicted sales by revenue for the first year of operation

13205

10817

Sales are predicted to steadily increase for the first few months following the release, with a gradual decline of some pieces further through the year due to seasonality. A slight drop in revenue is forecasted for January due to financial restrictions many people face around this time of year following Christmas. February will see sales bounce back, partly due to a sales promotion of 20% off that will be held for a period of 2 days (11th - 12th February) to celebrate national hug a tall person day. The success of the activewear collection towards the end of the year is predicted to be high due to the campaign be held around its launch. Additionally, the brand will be more established and have an existing customer base by May when the activewear release takes place.

Company Structure

Due to the high costs of employing staff, the team of people will be kept as small as possible during the first year to minimise fixed costs. The founder will take on a large variety of tasks within the business, employing an admin assistant part way through the year to help with the general running of the business and management of orders. Freelance staff will be used for other roles so they can be employed on a more flexible basis when required, and other specialist services providing operational support will be outsourced rather than employing further staff members within the company.

Founder/ CEO

Admin Assistant

Photographer/ models

Social media interns

Role

Salary and Hours

Notes

Founder/CEO

Full-time, internal £18,000 per annum 40hrs per week

The founder and CEO will take on a large variety of tasks within the business, particularly within the first year to save of costs while the brand becomes more established.

Admin Assistant

Part-time, internal £10 per hour 24 hrs per week https://www.glassdoor.co.uk/ Salaries/part-time-assistantmanager-salary-SRCH_KO0,27. htm

Employed to help with administrative tasks and processing orders. Could work flexible hours, with an average of 24 per week.

Photographer (Freelance)

Freelance, external £50 per hour

Employed on a freelance basis to photograph new collections (4 times in the first year) one 6 hour day each time https://easyaccountancy.co.uk/resources/howto/ rates-of-pay-for-freelance-photographer/

Models (Freelance)

Freelance, External £45 per hour

Employed on a freelance basis for photoshoots of new collections (4 times in the first year) 2 models, one 6-hour day each time https://freelancerclub.net/resources/blog/post/ freelance-rates-for-models-2021#:~:text=On%20 average%2C%20the%20hourly%20rate,at%20 %C2%A345%20an%20hour.

Social Media Interns

Part-time, external £8 per hour

Interns will be utilised during busy periods, such as in the run-up to a launch. They will predominantly focus on managing social media platforms and also helping with other administrative tasks.

Table 15: Staffing considerations and costs

External Parties

Accountancy An external agency will be used to provide accountancy support at a cost of £24.50 per month. The service provided is designed specifically to support small businesses. This will be cheaper than hiring an accountant part-time, but still provide the business with expert knowledge and assistance for the finances (The Accountancy Partnership, 2021) The support provided by the external agency includes a dedicated individual accountant, completion of end of year accounts, checks of bookkeeping records, access to online bookkeeping software and unlimited phone and email support.

Website Development A website will be Sequoia’s only channel of distribution in the first year of operation. It will be developed and managed externally by a small agency. The initial design will be bespoke, and contain standard e-commerce functions, costing approximately £5000. The agency will manage the ongoing maintenance of the website to ensure it is running securely, for a fee of £49 per month as well as annual hosting and domain name fees. Outsourcing the website development and management to a small external agency will ensure it’s smooth running and help reduce the risk of problems arising, which will be important as it is the only channel of distribution.

Cost

Amount

Initial development

£5000

Hosting fee

£150 (annually)

Domain Name

£10 (annually)

Monthly maintenance

£49 (monthly)

Table 16: Costs of website development (Figures provided by Will Smith at Authentic Style)

Other Costs

Insurance Employers liability insurance will be required as a minimum as this is a legal requirement. In order to further protect the business, the insurance policy will also include public liability insurance, to cover against any claims made against the business by customers, and contents and equipment insurance and theft. Direct line will be used as the insurance provider, at a quoted cost of £332.71 for the first year.

Premises The business would operate predominantly from the owners home for the first year. The admin assistant and social media interns would also work from home. Meetings could be held in public spaces such as coffee shops or c if required, in order to keep costs to a minimum. In the future the business may look to rent a small office space as and when the staffing team and business grows. A storage unit will be required to store stock as it will be ordered in bulk to reduce cost per unit. The storage unit will be rented from July when the stock arrives. It will be a Safestore unit, 50 sq ft, at a cost of £15.52 per week (Safe Store, 2021).

Equipment Item

Cost

Notes

Laptop

£1555

Macbook Pro

Hard Drive

£42.99

1TB external hard drive

Office furniture (desk and chair)

Desk - £60 Chair - £100

https://www.ikea.com/gb/en/p/micke-desk-white-80213074/ https://www.ikea.com/gb/en/p/langfjaell-conference-chairgunnared-dark-grey-black-s39175065/

Label printer

£129.99

https://www.amazon.co.uk/Phomemo-Thermal-Shipping-Printer-Compatible/dp/B089KBM42F/ref=sr_1_11?dchild=1&keywords=Shipping+Label+Printer&qid=1616530392&sr=8-11

Stationary

£25

https://www.ryman.co.uk/

Total

£1912.98

https://www.currys.co.uk/gbuk/computing/laptops/laptops/apple-macbook-pro-13-3-2020-intel-core-i5-512-gb-ssd-spacegrey-10207153-pdt.html https://www.currys.co.uk/gbuk/computing-accessories/data-storage/external-hard-drives/wd-elements-se-portablehard-drive-1-tb-black-10172481-pdt.html

Table 17: Costs of additional office equipment

Legal Obligations

Law

Requirements

The E-Commerce Regulations 2002

Details legal rules that dictate information that online retailers must provide to customers including terms and conditions, pricing and company registration details. Sequoia will ensure their website provides all required details and information.

Consumer Rights Act

Protects consumers against purchases they make. The product must be of satisfactory quality, fit for purpose and as described. Quality control will be thoroughly completed as part of the production process to ensure all garments are of a high quality.

Consumer Protection from Unfair Trading Regulations 2008

Protects consumers for unfair or misleading trading practices. This is particularly significant within marketing and promotional activities. Sequoia will not make any false claims about their products and all marketing material will be honest and transparent.

The GDPR and Data Protection Act 2018

Controls the use of data by a business, to ensure it is used transparently and only for specified purposes. It is important that any customer data from sales and payment transactions is stored and handled securely. Customers using the website will be asked for data permissions

The Textile Products (Labelling and Fibre Composition) Regulations 2012

Requires apparel to be labelled with full details of material and fibre composition. Product labelling will be completed as part of the production process and will contain a full breakdown of material compositions as required by law.

Table 18: Legal obligations for Sequoia to consider

Policies

Delivery Policy Sequoia aim to dispatch orders within 2-4 working days so they arrive with the customer within 5-7 working days from the point of order. UK orders will incur a delivery fee of £3.99 if under the value of £75, or delivery will be free for orders over £75.

Returns Policy Sequoia accept returns or exchanges within 30 days of receipt. Please ensure returned items are unworn and unwashed, with original tags and packaging or we are unable to guarantee that your return will be accepted. If your item is faulty please make us aware immediately. Refunds or exchanges are not accepted on sale items. To begin the returns process please email us at customerservices@sequoia. com and one of our team will be in touch to assist you with your return. Please do not send products back without first requesting a return as they will not be accepted. We will notify you when you return has been received and accepted. You will then be refunded via your original payment method. If you have any further queries regarding our returns policy, please email us at customerservices@sequoia.com.

100

101

Marketing Strategy. 102

Social Media

103

As a small start-up business, social media campaigns will form the basis of Sequoia’s marketing strategy due to lack of finances and initial scale of the brand. The niche nature of the Sequoia consumer also means that online marketing methods allow for the most direct targeting. The use of different strategies across social media platforms will be thoroughly considered to ensure Sequoia maximise their reach to develop their customer base. The strategy will combine no-cost activities with some paid elements. Establishing and growing the social media platforms for a number of weeks before the launch will important to build up a following and begin to engage potential customers (Bex Howie - founder of Esme).

104

Facebook Despite the assumptions that Facebook is being pushed out by new social media platforms, it is still the most-used and engaged with social platform, and its biggest age group is 25-34, closely followed by 18-24 (Barnhart, 2021b). Facebook will be used as a supporting platform to the Instagram and TikTok strategies. Having an active Facebook page will help develop the overall brand cohesion and ensure maximum possible engagement with a variety of potential consumers. Promoting posts through Facebook can be successful due to the high levels of targeting that can be placed on the post to push it out to a very specific type of consumer. Therefore some investment will be made into promoting the Facebook page around the first launch to build up initial brand awareness (£200 will be spent over a period of one week, and a further £150 over two weeks around the activewear launch in May).

105

TikTok The growth of TikTok is forecasted to continue over the next three years and it is estimated that video will account for 82% of internet traffic by 2022 (Baron, 2019). Research suggests younger audiences engage with and respond to video content due to its more diverse nature (Baron, 2019), however it is also growing in popularity among older age groups as 18-24 year olds make up the biggest proportion of TikTok users (Tankovska, 2021). TikTok is a heavily trend-driven platform, so using trending sounds, hashtags and dances will make videos more likely to go viral and achieve a bigger reach (Warren, 2020). Sequoia will post on TikTok with the aim to generate brand awareness and gain recognition, rather than to directly increase sales. Therefore the content Sequoia create for their TikTok may not always be focussed on product, but instead on sharing fun and creative videos that will engage with users and reach a wider audience. Compared to Instagram, TikTok is good to reach new audiences due to the ‘for you page’ which is more widely used than the Instagram equivalent of the ‘explore’ page, where new content is shown to users from accounts they do not follow. It is also easier for smaller accounts with lower followers to reach big audiences due to the algorithms of the ‘for you’ page (Bradley, 2021). It has been identified that posting 1-3 times per day will achieve maximum reach and engagement (Bradley, 2021). Sequoia will aim to upload as consistently as possible, with the staff/resources available, and in the run up to each launch the additional support of interns will enable more content to be made. It will also be important to take advantage of the in-depth analytics available to TikTok users, to understand the audience they are engaging with to ensure the content being produced is appropriate and relevant.

106

Instagram Instagram will be the most important social media platform for Sequoia and will provide a place to communicate the brand message and ethos and create a place of positivity, as well as being a platform to reach potential consumers. Posting content daily will maintain follower engagement. Instagram stories will utilise features such as polls and question boxes for interactivity to create a more personal relationship and develop brand loyalty. Investment will be made into sponsored story posts on Instagram due to the increasing success of this type of content. In Q3 of 2020, Stories ads generated 35% of impressions (Barnhart, 2021a). According to Instagram, 50% of people have visited a brand website to buy a product/service after seeing it in Stories, and 58% of people have become more interested in a product or service (Instagram, 2021). £200 will be allocated across 5 days at the initial launch £100 will be allocated across three days of each subsequent launch

Month

Amount

Duration

Pre-launch

£300

August

£200

2 periods of 5 days (£150 each time) 5 days

November

£100

3 days

February

£100

3 days

May

£150

3 days

Table 19: Costs of Instagram paid promotions

107

Influencer Promotions As part of the promotional strategy, Sequoia will use influencer marketing as research shows that 87% of people say an influencer has driven them to make a purchase (Barnhart, 2021a). A focus will still be placed on building organic relationships, as consumers are likely to trust opinions of influencers where they have not been paid, however a small amount of paid influencer marketing will help Sequoia reach a wider consumer base in the initial stages of brand development. Micro influencers who focus on tall fashion will be used as their rates will be lower, but they will be strategically selected based on their audience. Although the following of these accounts is quite small, a high majority of followers will be potential consumers for Sequoia due to the specific focus of the content. Content will focus on standard image posts and stories as they are regarded as the most effective types of post (Barnhart, 2021a)

Lily Kilgour

Maya (what_ maya_ wears)

Followers Engagement rate

Type

Cost

When

5587

1 post

£90

August

8 stories

£120 (£15 each) £150

Aug, Nov, Feb, May (2 each) August

10.9k

3.85%

3.61%

1 post 8 stories

£200 (£25 Aug, Nov, Feb, each) May (2 each)

Table 20: Costs of Instagram influencer promotions (figures from https://inzpire.me/ instagram-pricing-calculator)

108

User-generated content Sequoia’s social media platforms, in particular their Instagram will utilise content created by their consumers and followers. This will involve re-posting images on Instagram stories and main feed that Sequoia’s followers have posted wearing items of the collection, where they have tagged the brand. Using this form of media will help engage their followers by creating a relatable online space where individuals feel represented and respected by the brand. User-generated content is also advantageous in building and maintaining brand reputation and developing trust with consumers. According to the Nielsen Consumer Trust Index, 92% of consumers trust organic, user-generated content more than they trust traditional advertising (Deshpande, 2017). This marketing method will be implemented early on after the initial launch, and then after each subsequent launch to create excitement around the new styles and support and broaden the reach of the brand.

109

Hashtags Fully utilising hashtags will be a simple and free way to reach a wider audience of people on Instagram. They will be strategically selected as being relevant to the content to ensure posts are reaching the right audience. They will generally include references to ‘small business’ ‘sustainable fashion’ ‘scandinavian’ ‘minimal’ ‘tall fashion’ and ‘tall girl’.

110

Charity Partnership

111

The brand name Sequoia originated from the tallest species of tree, and the environmental connotations this has which compliment the sustainable brand values. This marketing activity will help communicate this aspect of the brand further to consumers. One Life One Tree are a charity who run ‘The Sequoia Project’. They buy land in areas of optimum growth for Sequoia trees within the UK, and then plant saplings sponsored by patrons (Emson, 2021). Sequoia tress are believed to be incredibly effective in the fight against climate change (Emson, 2021) as they are the fastest growing coniferous species and capture higher levels of CO2 (Emson, 2021). By year 50, new native woodlands can typically capture 300-400 tonnes of CO2, whereas Sequoias can capture around 780 tonnes, rising to 6000 tonnes by year 100 (Emson, 2021). Due to the benefits of planting these trees, and as a way to acknowledge Sequoia’s brand identity, a partnership will be formed with the charity for the March and April in the lead up to World Earth Day takes place on April 22nd. During these two months, Sequoia will donate one pound from every purchase towards planting a Sequoia tree in partnership with the charity. This will encourage more purchasing as Sequoia consumers will value the ethical actions of the brand and value the positive impact of their purchase. One Life One Tree will also promote the partnership which will increase brand reach. The cost of planting a Sequoia tree is £395 (Emson, 2021) . Forecasts predict 358 sales during March and 293 sales in April, totalling 651. One pound from each purchase would mean Sequoia would have £651 to contribute to planting Sequoia trees. The cost of 2 trees is usually £780 however as a result of the partnership formed with the charity, 2 trees will be planted for the £651 donation. The charity encourage sponsors to go and plant their Sequoia tree themselves, so as part of the collaboration, Sequoia will host a social media competition where liking the post, tagging a friend and sharing it to your story will mean you are in with the chance of winning the opportunity to go and plant the trees, as well as a piece from the collection. This will increase the reach and help target new potential consumers.

112

Campaign

113

Primary research in the focus group identified that slouching and bad posture are common among tall young females, often due to feeling like they don’t want to stand out. Further research was conducted and identified that 63% of tall women slouch (Chalmers, 2017). Additionally, 76% report suffering with back pain, and 63% shoulder tightness (Chalmers, 2017). During an interview, fitness coach and Pilates instructor John Peacock explained that taller people are often more prone to back pain and posture problems due to the additional strain the longer levers from longer limbs place on the spine. Sequoia exist to empower tall young women, and encouraging them to stand tall, be proud of their height and improving their posture is really important in achieving this. In response to this research, Sequoia will run a campaign called ‘Shoulders back’ throughout the month of May, as this is national posture month (PostureMonth, 2021). Exercise has been identified as being beneficial to improving posture, in particular pilates. In the interview John explained that pilates helps strengthen the deeper core muscles, which supports the spine. The ‘Shoulders back’ campaign will aim to highlight the importance of having a good posture and raise awareness of the specific issues tall women face, as well as the benefits of exercise. The campaign will accompany the launch of a 5-piece activewear range, designed for tall women.

114

The Collection The campaign will be centred around the launch of a 5 piece activewear collection. Similarly to the rest of Sequoia’s product portfolio, the range will be specifically tailored to tall young females, using stretchy and breathable fabrics. The ‘Shoulder’s Back’ campaign will support sales of the range by highlighting the benefits of exercise for improving posture, therefore encouraging greater participation in physical activity, and consequently increasing purchases of activewear.

115

Social Media Sequoia’s social media platforms will be utilised throughout the campaign to communicate the benefits of exercise for posture, and focus on empowering younger consumers in particular to stand up tall and be proud of their height. The content will combine fitness related content such as engaging in current fitness challenges on TikTok, as well as inspiring messages of confidence. On top of the social media activity usually executed around a launch, an additional Instagram paid promotion will be used, with Zanna Van Dijk sharing an Instagram story about the products. Although this has a high cost due to her larger following, her focus on fitness content alongside her height makes her an appropriate choice and her post will reach a wide audience of potential customers for Sequoia.

Influencer

Post

Followers

Details

Zanna Van Dijk

Instagram Story (£475)

351.6k

Instagram account has large focus on fitness therefore providing a suitable link to the activewear collection and posture campaign. It is expected to reach 25k followers and create 29.5k story impressions (inzpire.me/ instagram-pricing-calculator)

2.6% engagement

Table 21: Costs of Instagram influencer paid promotion for Shoulders Back campaign

116

Pilates Events Two events will be held in London and Manchester, consisting of a pilates class, focusing on posture improvement and talks giving professional advice about maintaining a good posture. Tickets will cost £5 per person. Each event will have 30 attendees. They will pay £5 to attend the event, helping to cover some of the costs. A chiropractor will give a short talk discussing posture issues faced by tall people, explaining why they happen and offering advice. The pilates instructor will then talk about the benefits of pilates and other exercise for improving posture, before running a 45-60 minute pilates class. Each attendee will be given a Sequoia branded, sustainably made tote bag and reusable water bottle to take away. This will encourage both continued exercise and sustainable habits, as well as promoting the brand. Sequoia’s new activewear range will be available for attendees to view and purchase. Ticket sales revenue: £5 x 30 tickets = £150 per event (£300 total)

117

Venue Hire

London

Manchester

Roof Studio at Siobhan Davies Dance Studios £120 (£60 per hour)

Manchester Yoga Central £50 (£25 per hour) https://spaceatthemill.co.uk/

https://www.tagvenue.com/rooms/ london/5668/siobhan-davies-dance-studios/ roof-studio

Pilates instructor

£50 (£25 per hour - one hour class and £50 (£25 per hour - one hour class talk about benefits of exercise) and talk about benefits of exercise) https://www.payscale.com/research/UK/ Job=Pilates_Instructor/Hourly_Rate

https://www.payscale.com/research/UK/ Job=Pilates_Instructor/Hourly_Rate

Chiropractor

£60 (talk about posture/advice etc)

Tote Bag

£99 (99p each when ordering 100)

Leftover from London

Water Bottle

£197 (£1.97 each when purchasing 100)

Leftover from London

Marketing material (flyers)

£47.83 (100 custom long shaped flyers) Leftover from London

Travel expenses

£50

£100

Total cost

£623.83

£260

https://www.payscale.com/research/UK/ Job=Chiropractor/Salary

https://www.totalmerchandise.co.uk/brandedproducts/promotional-bags/cotton-tote-bags https://www.totalmerchandise.co.uk/ branded-products/promotional-mugs-anddrinkware/500ml-ace-sports-bottle

https://www.payscale.com/research/UK/ Job=Chiropractor/Salary

https://www.tradeprint.co.uk/flyer-printing/ custom-flyers?Material=170gsmGloss&Size=CU STOM&Quantity=100&Service=Standard

Table 22: Shoulders Back campaign event costs

118

119

PR activities have been considered to widen the brand reach and work on development of the brand image and gaining coverage during the significant growth period of the first year. In addition to the specific tactics explained on the following page, Sequoia would hope to earn further PR coverage through editorials in magazines, and features in blog posts, podcasts and YouTube videos of individuals that fulfil their target audience.

120

PR launch event An event will be held in London one week before the initial product launch, which will provide an opportunity to see the products in advance and generate social media activity and press coverage. Tall bloggers and press will be invited to attend, with some influencers selected to speak about their experiences being tall. This will help communicate the mission of the brand and begin to open up a conversation. The event will keep in line with the ‘tall’ focus of the brand, using decorative elements like extra tall glasses and long, thin shaped flyers.

Venue Hire Studio 4 at Arcola

£380 (4 hours @ £95 per hour)

https://www.tagvenue.com/ rooms/london/22022/arcolatheatre-bar/studio-4

Bartender

£100 (4 hours @ £25 per hour)

https://www.poptop.uk.com/ suppliers/eventstaff/barstaff/

Photographer

£75 (3 hours @£25 per hour)

Furniture

£442.40 (x2 sofas. x5 cube seats, x3 tables)

https://www.furniturehireuk. com/

Tall glass hire

£60.06 (£25.50 wine glasses, £18 tumblers, £16.56 flutes)

https://southwesteventhire. co.uk/request-quote/

Biscuits in the shape of prodcuts

£150 (for 50 biscuits)

https://www.bloombakers.co.uk/ product/personalised-icedbiscuits/

Other decorations

£100

Marketing material (flyers)

£47.83 (100 custom long shaped flyers)

Travel expenses

£50

Total cost

£1405.39

Table 23: PR launch event costs

121

https://www.tradeprint.co.uk/ flyer-printing/custom-flyers?M aterial=170gsmGloss&Size=CU STOM&Quantity=100&Service=S tandard

Gifting PR packages will be sent to three macro influencers on Instagram. They will contain a hoodie and joggers from the initial launch collection that will be gifted to the individuals in the hope that they will share the items on their social media platforms.

Height

Followers

Emily Canham (emilycanham)

5’11”

743k

Zanna Van Dijk (zannavandijk)

6’2”

349k

Katherine Bond (katherine_bondd)

5’8”

453k

Table 24: Details of the Instagram influencers selected for gifting

These influencers have been selected to receive the PR packages as they are tall females with follower audiences similar that fit Sequoia’s target demographic. The larger following of these individuals will help Sequoia reach a wider audience, providing they share the products with their followers. Although these individuals are tall, this is not the primary focus of their social media content. Primary research suggested that consumers do not always follow influencers with tall-specific content on Instagram. Focus group participants said they do follow well-know people on Instagram, but may not follow influencers whose content is specifically focussed on tall style. These bigger influencers will reach more potential consumers.

122

Pre- launch

Post-launch

Building up social media platforms using TikTok trends to reach new audiences and teasing collection on Instagram ahead of launch

July

PR packages of joggers and hoodies sent out to 3 strategicallly selected macro influencers - Emily Canham, Zanna Van Dijk and Katherine Bond

August

Product launch Initial product launch of 5-piece autumn/winter collection - hooded jumper, joggers, long sleeve bodysuit, shacket and jeans PR launch event in London Sponsored instagram stories Instagram influencer paid post and story

123

September

Product launch New product launch of a further 3 autumn/winter pieces added to original collection - flared trousers, knit jumper and blazer Sponsored instagram stories Instagram influencer paid story 20% off selected stock for Black Friday (not including new product launch)

October

November

December

Post-launch

Christmas content shared on soical media to encourage purchasing of products for Christmas presents

User-generated content shared on Instagram to engage with followers and begin to build community

124

Post-launch

Ongoing social media content

Partnership with One Life One Tree charity where £1 from each purchase goes towards planting a Sequoia tree

No January sales due to not wanting to encourage overconsumption

January

February

March

Product launch New product launch of spring pieces shirt dress, cropped sweater and bodysuit National hug a tall person day: 11th February 20% off sale for 48 hours over the weekend to celebrate Sponsored instagram stories Instagram influencer paid story

125

Product launch New product launch of activewear leggings, cropped leggings, shorts, sports bra and cropped top Posture month Shoulders back campaign: -pilates events - social media posts (sponsored instagram stories, influencer paid story)

April

May

Post-launch

June

Post launch

World Earth Day - 22nd April

Ongoing social media content with a focus of fitness following the campaign in May

Ongoing partnership with One Life One Tree charity where £1 from each purchase goes towards planting a Sequoia tree

126

127

Financial Background. 128

Start-up Finance

129

A total of £40,000 will be required to set up the business initially and cover start-up expenses prior to product launch. It will come from two sources, with one being a repayable loan, and the other being personal saved finance sources from family inheritance. Source

Amount

Notes

Virgin start-up loan

£25,000

Can be repayed over 5 years with a fixed interest rate of 6% (repayment will be £481.47 per month) Expert guidance provided and experienced mentor for the first six months No minimum trading requirement https://www.virginstartup.org/start-up-loans

Family inheritance

£15,000

No re-payment required due to being personal finance Could be considered risky to invest such a significant amount of personal finance

Table 25: Sources of start-up finance

130

Start-up costs

131

The table below shows a cash flow forecast for Sequoia in the three months ahead of launching, with details of the costs that will be payable in setting up the business ahead of selling any product to consumers.

Cash in

May

June

July

1000

2000

Expenses Website development Domain name

Hosting

150

Office furniture/ equipment Samples

1912.98 650

Stock for initial launch

29971.5

Storage unit

15.52

Packaging material

144.29

Freelance photographer

300

Freelance models

540

Social media marketing

150

Total expenses

1650

2310

35034.29

Net cash flow

-1650

-2310

-35034.29

Opening balance

40000

38350

36040

Closing balance

38350

36040

1005.71

Table 26: Cash flow forecast for the three months prior to product launch

Based on a start up finance of £40,000, the closing balance after the three month set up period and therefore the opening balance for the beginning of the first month of sales operation will be £1005.71 after all start-up costs have been paid.

132

12-month cash flow

133

134

720

1405.39

6442.49

-3947.49

1005.71

-2941.78

Social media

Marketing

Total expenses

Net cash flow

Opening balance

Closing balance

Table 27: 12-month cash flow forecast

481.47

-1410.46

-2941.78

1531.32

3503.68

481.47

54.9

Packaging stickers & postcards

Loan repayment

17.99

Address labels refill

Office supplies

126.3

Mailing bags, tissue paper & swing tags

54.9

400

Stock (incl transportation)

Samples

-8618.85

-1410.46

-7208.39

14558.39

481.47

54.9

10494

Website maintenance

24.5

120

2540

Accountancy

360

Interns

2540

15.52

540

2540

Salaries

15.52

300

15.52

Storage unit

Freelance models

332.71

Insurance

7350

Freelance photographer

Adobe license

Expenses

5035

-1447.53

-8618.85

7171.32

4223.68

180

481.47

54.9

17.99

126.3

300

24.5

360

2540

15.52

11395

7874.08

-1447.53

9321.61

3344.39

481.47

54.9

24.5

120

2540

15.52

12666

Dec

4264.39

180

481.47

54.9

500

24.5

360

2540

15.52

14073

Feb

4870.9

7874.08

14679.51

4870.9

-3003.18 9808.61

13048.18

481.47

54.9

17.99

126.3

8824.5

24.5

540

300

2540

15.52

10045

Jan

24380.83

14679.51

9701.32

3503.68

481.47

54.9

17.99

126.3

24.5

120

2540

15.52

13205

Mar

20836.44

24380.83

-3544.39

14361.39

651

481.47

54.9

9646

24.5

540

300

2540

15.52

10817

Apr

16383

May

32036.93

20836.44

11200.49

5482.51

1358.83

380

481.47

54.9

17.99

126.3

24.5

360

2540

15.52

16683

2495

7350

Nov

Total income

5035

Oct

300

2495

Sept

Event ticket sales

Product sales

Cash in

Aug

39524.54

32036.93

7487.61

3344.39

481.47

54.9

24.5

120

2540

15.52

10832

Jun

44837.86

39524.54

5313.32

3383.68

481.47

54.9

17.99

126.3

24.5

2540

15.52

8697

Jul

Cash flow analysis

135

An estimation of Sequoia’s break-even point has been calculated based on average fixed costs of £3491.56. Contribution margin has been calculated by taking an average of the margin across the different products being sold, equalling 0.572. The break-even point by revenue is therefore expected to be £6104.13. According to the forecasted sales, Sequoia would reach this revenue during the second month of trading (September). The net cash flow is positive for the first time during this month. It is important to note that the net cash flow does not increase in a linear way. This is due to the fact that stock is being purchased in bulk in an aim to reduce costs, and therefore is a large expense in each month prior to a new launch.

136

Future Strategy

137

The future growth strategy of Sequoia will involve releasing new styles regularly throughout the year, in order to build up the brand portfolio, offer existing customers newness to enable customer retention, and also attract new potential consumers. The initial goal within this would be to launch a denim range including jeans, and then further developing other product lines on an ongoing basis. As Sequoia grows as a brand, changes would be made to the staffing structure, expanding the team and employing more full time members of staff. This would likely include a social media manager due to the significance of the use of social media for the brand, as well as expanding the design and marketing team as operations grow. Alongside this, over time the brand would look to expand its physical premises, increasing the size of its rental storage space where appropriate, eventually building up to a small warehouse. Additionally, a small office space would be required as the staffing team grows. Longer-term, Sequoia would look to develop an app to support the website as another e-commerce channel to sell product. This would create a more omnichannel experience that customers value and potentially create a more use-friendly way to shop. This could also help attract customers by using it as a platform to offer exclusive discounts and other perks.

138

References

139

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All of the garment CAD drawings included within the business plan were drawn by Rebecca Clark.

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Business Plan

Articles inside

Production Process

Other Costs

SWOT

Indirect Competitors

Direct Competitors

Tribe Two

Market Sector

Stakeholders

Overview

Brand

Tribe One

Executive Summary