Piper’s Denim Mission Statement“It is our promise to supply quality designer denim to the greater Seattle Area. We offer a one stop shopping experience with trained denim experts and onsite tailoring. Denim is a staple in wardrobes of all ages. Our focus is to ensure quality denim pierces that will turn into an investment. We are committed to providing each individual with the perfect fit, quality, materials, and style.� ProductsPD specializes in specific premium denim brands. Each brand that we carry is in the maturity stage and already obtains a strong presence of brand loyalty. PD offers denim for men, women, and children. Select apparel and accessories from the chosen brands are also available for men and women. PD will be carrying 5 premium denim brands listed below during the first 12 months of opening.
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Piper’s Denim Location & MarketThe location of the proposed business will be located on 6th Avenue in Downtown Seattle. Right in the center of The Retail Core of Seattle provides a variety of upscale restaurants and retailers. There are a variety of shopping environments
to
choose
from
such
as
department stores, boutiques, or shopping centers. Seattle is home to one of the largest shopping centers in the region. Placing Piper’s Denim next to existing retail locations and competitors means that our client base is already present. This could lower advertising costs, and ensure an established target market. PD will also be in walking distance of several hotels and tourist attractions. Visitors from locations outside the Seattle area generally make downtown a necessary stop. PD will be surrounded by a large number of businesses and office buildings that bring in a number of commuters Mon-Fri. The proposed location of PD is an attractive one and can be viewed as an asset to our company. Opening DateThe proposed opening to be advertised by PD will be the first weekend of September 2012. The grand opening event will be the counterpart of PD’s quiet, non-advertised soft opening that will be held prior during the third week of August. FundingPD will be receiving a 30% startup loan from Bank of America. PD will be using 40% of personal funds and 30% will be received from an investment offering. Place Bank of America startup loan Personal Funds Offering
Amount 30% 40% 30%
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Piper’s Denim Success FactorsLocation
The chosen location is on 6th Avenue in Downtown Seattle, the retail core of the city. Currently there is not a store in Downtown Seattle strictly geared towards denim with more than one brand available.
Research shows that Downtown Seattle is a prime location for opening a business such as PD. Seattle is one of the top cities for starting a new business. Consumers in the Seattle are further educated compared to the United States as a whole. Residents fall into the middle to upper middle class bracket. Meaning they obtain the median household income of our target market.
Research shows that Downtown Seattle attracts a large portion of pedestrian traffic. The retail core location is already positioned in the market and currently attracts PD’s clientele.
By opening a business in this location PD will find it easier to build clientele based on established customers and passers. Downtown Seattle also attracts a large amount of tourists that will be beneficial to PD’s success.
Products
PD will offer brands that already have brand loyalty. PD has chosen to offer designer denim brands such as 7 for all Mankind, True Religion, Hudson, Naked and Famous, and Joes Jeans because they attract an upscale clientele. They are also brands that have proven to be successful in the market place.
PD offers premium brands that customers already expect paying higher amounts for, high profit margins will drive our business.
Unlike department stores PD will be able to carry classic styles of certain items while marketing new designs and items that larger department stores may not carry. PD will have more leeway providing customers with a unique merchandise selection
PD will offer a kids section providing customers with designer denim for kids in more styles than surrounding retailers. This aspect supports PD’s image as a family one stop denim shop
PD will offer onsite tailoring. Although many premium denim brands are offered in short length (also offered at PD) they are still too long for many customers. This is to be expected with designer denim. Therefore PD will offer onsite tailoring for customers so they can get all their shopping needs done in one place. This is a large selling point for PD
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Piper’s Denim Timing
PD is planning to open in September. This is around the time students are purchasing back to school clothes for the fall and winter. To compete with back to school sales PD will be having our “After School Special Sale”. “Afterschool Special” will be one of our first promotional events. If successful we plan to make it a yearly happening. This event will take place in late September. The idea of this promotion is to offer a sale after the back to school rush. PD will provide a week of marked down denim for back to school or fall reasons, but at promotional prices. The end of September is when the weather starts getting colder and denim is no longer an option but a need. We feel this event will attract many students all the way through college level to invest in this year’s premium denim.
PD’s main attraction is our denim selection. Denim is a fashion item that remains a staple in today’s wardrobe. Men, women, and children all wear denim.
Seattle’s climate averages to be 50 degrees annually, and has a high precipitation rate. Denim jeans are perfect for these conditions. Seattle’s climate creates a high demand for merchandise sold at PD.
Strategy
The simple one stop shop method and brand selection will be an attractive strategy for PD.
PD has a strict policy on maintaining good vendor relationships. This will ensure that all of our client’s needs are met when promised.
PD will ensure that all employees are trained properly to ensure quality customer service. PD will also work together as a team with clear communication between employees. This is an important strategy because it eliminates individual competition. Both employees and customers will benefit from a comfortable environment.
PD offers rewards and benefits for our frequent shoppers. They are referred to as our exclusive clients. Because of the high price point our merchandise holds we feel it is important to provide special benefits to our loyal customers. By advertising an exclusive sections and creating select promotions will cause interest for other clients to join the club as well.
PD will use a premium pricing strategy with generous advantages to loyal clients in order to achieve customer satisfaction and to match competitor prices. Together our premium priced denim, quality merchandise, and customer benefits will be an effective pricing strategy that works well with this business model.
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Piper’s Denim
PD will use line pricing to increase the stores sales volume and the number of registered transactions per day. By utilizing line pricing to increase the stores sales volume and registered transactions per day will be an effective pricing strategy that works well with our business volume.
Achievable Milestones
Establish ourselves as the go to denim retailer. This is important because PD is based around denim and we want to offer our clients with expert denim knowledge. We also want to be known in the Seattle area as the go to denim retailer so customers come to us first when shopping for denim.
Brand expansion; PD knows there are many premium denim brands available, and many that are fresh to the market utilizing new fabrics and technological finishes. After the opening of PD we will work on providing more brands and a larger selection to clients. This is important because it will help our client base grow as well as our business. It will also add to our reputable image as a denim expert and one stop shop. Based on market research conducted, and supporting evidence, opening a boutique like Piper’s
Denim in the retail core of Downtown Seattle will be an asset to the Seattle community. The opening of PD proves to be a profitable business move and opportunity for an entrepreneur and investor. Piper should be synonymous with denim after establishing a solid image in the Downtown Seattle market place.
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Piper’s Denim Section SummariesThe Company Overview
The basic business concept of Pipers Denim is explained. As well as the hierarchy between employee positions, and a detailed list of tasks performed by each.
A strategic plan and chart prior to the grand opening of PD is illustrated.
Company objectives including long term and short term goals are discussed along with methods and actions to follow.
Expected problems that business could potentially run into are explored along with actions and solutions.
Market Analysis
A complete analysis of Piper’s Denim target consumer is depicted through their demographic and psychographic traits.
A commercial snap shot of PD’s consumer profile is illustrated through brand examples correlating with brands sold at PD.
Competition, Location, climate, history, tourism, political, economic, cultural, and legal factors surround or may directly affect the business are researched and analyzed.
Marketing Strategy Plan
The marketing mix including brand and product descriptions are described.
Product charts showcasing the brands life cycle ad price ranges are illustrated.
Promotional planning is discussed. Marketing, advertising, and PR options are described as well as budget sheets.
Vendor contact info and methods of shipment can also be found in this section.
Operations Plan
Methods of merchandise planning, forecasting, and inventory control are explained.
Human Resources and general employee information is described.
Facility maintenance such as opening/closing duties, POS equipment, security options, and janitorial serviced are all elucidated.
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Piper’s Denim Financial Plan
Start- up Budget.
Projected Income Statement, including best case and worst case.
Opening and closing inventory.
Opening and closing balance sheet including best and worst case.
Supporting charts and graphs
AppendicesA. Personal Resume B. Sources C. Product Photos, Floor Plan
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Piper’s Denim Business ConceptPiper’s denim is a premium denim one stop shop. We offer quality brands and a personalized experience with onsite tailoring. This factor alone separates us from our competitors. Our consumers are brand conscious and fashion savvy. They value quality over price. We adhere to middle and upper class families, along with young adults managing a disposable income. Our goal is to become a common household name. Piper’s denim should be the place to go for your individual denim needs. Designer jeans will continue to be a staple in the fashion industry. It’s important that our clients understand Designer jeans are investment pieces, not just denim to wear. At Piper’s denim we offer an exclusive selection of brands, styles, and fits available for men, women merchandised on the first floor. Located on the second floor of our store is a selection of designer denim for kids, clearance items, and fitting rooms. PD carries merchandise and styles that may not be available at competing department stores. Our selection and client attention is the focal point of our sales and defines our customer service. PD offers customer benefits and will continue to remain active within the local community. With a specific focus on the local fashion scene and long term goals of company and brand expansion as the business matures. It is vital that our image represents the quality and passion we share for the perfect pair of jeans. The proposed location, Downtown Seattle, provides a climate for the need of denim. PD’s product mix, location, premium image, and attentive customer service provides PD with numerous competitive advantages over the current market. Piper should be synonymous with denim after establishing a solid image in the market place.
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Piper’s Denim OwnershipPiper’s Denim will start out as a Sole Proprietorship. PD falls under the category of a small business. The business will be owned by one person whom will take on the responsibilities of running a business. The owner will own all assets and profits generated by the business. The owner will also be responsible for any liabilities or debts the business may incur. The advantages of categorizing PD as a Sole Proprietorship outweigh the disadvantages due to the current business size and concept. Below is a bulleted list of the advantages of a Sole Proprietorship that endorse this form of ownership for PD. Advantages of a Sole Proprietorship:
Easiest and least expensive form of ownership to organize.
Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit
1
Sole proprietors receive all income generated by the business to keep or reinvest.
Profits from the business flow directly to the owner's personal tax return.
The business is easy to dissolve, if desired.1
http://www.themoneyalert.com/businesstypesofownership.html
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Piper’s Denim Organization ChartPiper’s Denim is a small business with a manageable amount of employees for our stores size. Chart A illustrates an organizational flow chart separating PD employees by hierarchy. The store manager works closely with Sales Leads and PD’s seamstress. The Assistant manager obtains the task of managing PD’s sales associates which remain at the bottom of the hierarchy. At PD it is important that all members of the team are involved. We provide each position with the task of working together with management for marketing and promotional ideas. Chart B, below A, goes into more depth highlighting important responsibilities each position represents.
A.
Store Owner
Caitlin Scully
Attorney
Accounting
Boutique Financial
Legal
Assistant Manager
Store Manager
Caitlin Scully
Sales Lead
B.
PD Employee
PD Employee
Seamstress
Sales Lead
PD Employee
PD Employee
Store Manager
Assistant Manager
Sales Leads
•Owns business •Hiring process •Accounting/payroll •Vendor relationships •Managing staff •Conducts meetings •Marketing and promotions •Visual merchandising •Inventory •Works closely with Sales Leads to train for higher positions
•Aids in managing staff •Works closely with Sales Associates to train for lead positions •Skilled and adept at completing store paper work and running store operations •Marketing and Promotions •Sales floor duties •Visual merchandising
•Efficient and trained to sell •Extensive product knowledge •Running store operations' •Sales floor duties •Some marketing and promotional work •Setting up displays •Inventory and stock control responsibilities
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Sales Associate
PD Employee
Sales Associates •Sales floor duties •POS •Recovery •Cleaning •Training opportunity for sales lead •Some marketing and promotional work •Some display work
Seamstress •Tailoring •Record keeping of clients and sizes •Knowledge of products and minor sales floor duties •Clean work section that represents PD's premium image
Piper’s Denim StrategyBelow is a timeline chart of scheduled tasks and deadlines to complete prior to the grand opening in September 2013.
Piper's Denim Timeline Chart September August Grand Opening Soft Opening Hire/Train Employees
July June May
Start Advertising/Create Website April Contact Vendors/Secure Merchandise
March
Electric and Plumbling February
Higher Interior Designer/Begin Building Secure Business Licsence Secure Location Plan Loan
January December November October September 0
2
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4
6
8
10
12
Piper’s Denim Below is a detailed list of the tasks illustrated above.
Plan Loan: Obtain a small business loan through Wells Fargo following their lending steps. PD will obtain the 7A loan. Most small businesses are familiar with this loan. For example PD will pay back month to month payments over a period of time, such as 25 years.
Secure Location: We will secure our location on 6th Avenue, the Retail Core, by contacting an agent and moving forward with payment agreements and paperwork; terms.
Secure Business License: PD will go through the proper national, state, and city processes that will allow PD to acquire a business license and run within the city of Seattle.
Hire Interior Designer/Begin Building: Image is of major importance to PD and the shopping experience as a whole. Customer service is major, but without a comfortable environment, customers won’t receive the best service, and experience possible. Therefore PD is planning to hire an interior designer to help execute the planned vision for our store. Our hired interior designer will design a floor plan and will design and purchase furniture accordingly to our inspiration provided. We will provide a budget for the interior designer to purchase fixtures and all other items necessary.
Electric and Plumbing: PD wants to have electric and plumbing throughout the building taken care of 4 months before opening. This will allow us to prepare our store thoroughly. This will also be major so we can hire employees and train them in the store earlier to allow a denim expert staff.
Hire Visual Team: PD will hire a visual team in March and they will continue perfecting our floor plan until April. Our hired visual team will work with the fixtures purchased by PD and chosen by our interior designer. We are allowing two months for the design to ensure the best possible results.
Contact Vendors/Secure Merchandise: Throughout the prior year PD will have traveled to all the showrooms for our chosen denim brands. Throughout April and June we will finalize purchase orders and secure merchandise for the fall and early winter seasons.
Start Advertising/Design Website: PD wants to start advertising in April. We will start subtly and progress advertising mediums to broader markets as we get closer to our grand opening. At the same time we want to hire a web designer and start our website. As the PD site is under construction, we will provide a promotional advertisement provoking curiosity to those who stumble upon our site until it is open for review.
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Piper’s Denim
Hire/Train Employees: PD has planned to start the employee hiring process in June and continue through August if necessary. We will start first by hiring managers and assistant managers and trickle down to sales associates, and fill our onsite tailoring position. The reason PD is starting the process so early is to ensure a fully trained sales staff that is comprehensively trained in every aspect of our company.
Soft Opening: During the third week of August PD will have a soft opening. The opening will be quiet and not advertised. This will allow us to see what kind of foot traffic clientele our store attracts on a daily bases. This will help PD understand what works for our store and what we need to change to ensure top business success.
Grand Opening: The grand opening will take place during the first weekend of September. The grand opening will be advertised throughout chosen mediums and special promotions and events for the day will be planned and performed accordingly.
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Piper’s Denim Company ObjectivesShort term (ST): 1. Denim Fashion Show: PD wants to position itself in Seattle’s fashion scene. Along with getting involved with Seattlefashions.com PD would like to host and sponsor a denim oriented fashion show to spread awareness about the store, and provide local and upcoming designers with a chance to showcase their designs. Methods and Actions:
Network with local businesses and clothing boutiques such as Sway and Cake, Deli, Vain Hair Salon, Ian etc.
Participate within Seattle’s local fashion scene to get Piper’s Denim name recognized and trusted through personal and online networking with businesses such as CRAVE. “CRAVE innovatively connects urban gals to the sassiest, gutsiest, most inspiring people they need to know. Our modern marketplace of soirees, gatherings and online networking serves as your ambassador to everything there is to CRAVE about Seattle.”2
Scout local designers through fashion shows, trade shows such as CAPSULE; an annual denim trade show. Scouting through local design schools such as the art institute during fashion shows.
Advertise idea and positions through websites, newspapers, social media etc. such as the magazine D-List, facebook.com, craigslist.com etc.
2. New Brand Introduction: The goal for PD is to grow and position ourselves as successful local retailer in Seattle. This also means expanding our brand selection. Right before September towards the end of August PD will introduce a new premium denim brand. PD will choose this selected brand based on trend reports and trade show exhibitions. Methods and Actions:
Began planning a year in advance for the introduction. Explore and answer questions regarding what brands we want to showcase, what lines, what season etc.
2
Analyze current denim trends to base answers off of to ensure successful profits
Research up and coming or profitable brands
http://thecravecompany.com/seattle/
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Piper’s Denim
Attend fashion oriented events such as MAGIC or CAPSULE
Choose new brands to be introduced based on researching and trend forecasting that clearly demonstrate profitability for Piper’s Denim
Advertise new brand introduction heavily offering promotions for loyal customers and place emphasis on a larger selection of merchandise
3. Established Premium Denim Image: PD’s goal is to be Seattleites go to one stop denim shop. After a year in business it is crucial that PD continues to create and maintain this image through a well thought about merchandise selection, customer service, promotions, advertisements, events et cetera. This goal can successfully be completed with constant focus and care on the business. Being attentive to all areas of the company such as appearance, staff, accounting, merchandise selection, tracking sales, inventory and stock control, successful advertising, networking, relationship building, utilizing all outlets offered in downtown Seattle, strong customer service, loyal customer benefits, onsite tailoring etc. All aspects create the whole of the business, the methods and actions to ensure a reputable image are quite clear, but the difference between saying and doing is the strong focus, determination, confidence, and strong management, such as me, will be the deciphering factor between saying and doing. Below are key points to utilize on the to PD’s success. Methods and Actions:
Stay true to PD’s premium denim image. A one stop premium denim shop with a stylish and personal atmosphere for the whole family
Ensure a trained staff familiar with Piper’s Denim mission statement, product knowledge, store operations, and sales techniques
High focus on customer service
Promotions, advertisements, events, sales, customer benefits etc.
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Piper’s Denim Long term (LT) 1. Showcase local designers and encourage the success of Piper’s Denim as a small business: Along with premium denim brands PD will work with local designers that that create merchandise congruent to the stores theme. Methods and Actions:
After establishing an image in the market place PD would like this fact to be one of the stores many known benefits for designers and customers. PD will utilize the assistance of SFI, Seattle Fashion Incubator. “SFI membership is for new designers and small home based businesses to give them the tools to plan or grow their existing businesses without costly trial and error mistakes.”3
2. Benefit the greater good: The location of Downtown Seattle is important to PD because it offers a beautiful location for our business. PD would like to return the favor by saying thanks to the city. Methods and Actions:
Charity events, donations to for nonprofit organizations, involvement with local business groups, donations and support for fashion programs. Activities such as these can be in done in partner with the help from groups such as Giving Corps. “Growth is driven by referrals, local, national and international marketing, strategic alliances and general business development, proprietary toolbars, editorial, coordinated non-profit press, grassroots promotion, fundraising initiatives and more. It's the marrying of these benefits that create true success.” 1
1. Expand business: Eventually PD will want to expand their business in the future to other locations in the Seattle area. This will add more employees and change the businesses organization internally. Methods and Actions:
Analyze current store data and profits to determine whether business expansion is a profitable investment
Research and look into finding a partner, and legalities.
Monitor employees, conduct monthly meetings, and recruit potential employees through visiting various retailers
Find a proposed location for expansion and research all elements such as demographics, psychographics, financial information etc. and create proposal.
3
http://seattlefashionincubator.org/SFI/Services.html
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Piper’s Denim Expected Problems1. Shrinkage numbers grow Contingency Plan
Increase Security
Employee bag checks
Hire temporary personal shoppers
Rid store layout of blind spots
2. Poor economy Contingency Plan
Provide more promotional sales
Advertise an understanding of the poor economy and market PD as still a need
Buy cheaper merchandise during this time
Prepare savings and extra funds for problems such as stated above
3. Certain merchandise won’t sell based on trends Contingency Plan
Place merchandise on clearance
Display merchandise in appealing ways or near the cash wrap
Try and sell to a discounted retailer
Turn pieces not being sold into promotional opportunities
4. Employee turnover too high Contingency Plan
Background checks
Revaluation of management and training programs
Recruit sales associates personally from similar retailers
5. Failed advertising methods Contingency Plan
Analyze what went wrong, and how can we revamp or fix the problem
Utilize advertising agencies or outside help
Analyze and research our target more clearly and successful advertising strategies in the local area
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Piper’s Denim DemographicsThe following research provides facts about the proposed location and demographic of a PD (Piper’s Denim) customer. PD plans to conduct business in the retail core of Down Town Seattle. Surrounding the city are neighborhoods of potential clients. Seattle offers a large amount of tourist traffic as well. Along with a desirable client base Seattle also offers a premium location for a retail business. Retail investment is breaking out all over. Two prominent commercial Real estate brokerages placed the Puget Sound area in the top three regions expected to bring the greatest potential for retail growth and investment. The following facts are provided from an article in the Seattle Times. • Westfield South Center will swell by as many as 100 stores as part of a $220 million expansion adding 550,000 sq. ft.4 • Northgate Mall (Seattle), the nation’s first mall, is spending $100 million to add 100,000 sq. ft. of shopping, a library branch, a community center, a 16-screen cinema and 500 units of housing5 • The Bravern (Bellevue), a mixed-use development with hotel, office and living space, will house the country’s 40th Neiman Marcus location6 • Kent Station, a contemporary urban village replete with a community college branch campus, completed a new phase in October 2006 7 • Lincoln Square (Bellevue) opened at a cost of $500 million with its brand of high-end retail, residential and office space8 • The Landing (Renton) opens 2007 with the title of 10th largest shopping complex in the region and plans for a 14-screen theater, 1,000 residential units and a $390 million price tag 9 The facts stated above secure Seattle’s image as being a prime location for retail investment. This is important PD because in order to run a successful business, external factors, such as location, need to have positive success rates and business growth. Business growth also means an expanding customer base to build off of. There are 4,507,000 people residing in the Seattle-Tacoma DMA making it the 13th largest DMA in the United States, and 3,226,700 (72 percent) reside in the Seattle-Tacoma-Bellevue MSA (Metropolitan Statistical Area), making it the 15th largest MSA in the nation. Annual retail sales in the Seattle-Tacoma DMA are $74,243,858,000 ranking 12th among the nation’s other DMA markets, and 73
www.theseattletimes.com IBID 6 IBID 7 IBID 8 IBID 9 IBID 4 5
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Piper’s Denim percent ($53,865,825,000) of those retail sales are made in the MSA10 Annual retail sales in the SeattleTacoma area prove to be high compared to the rest of the country. Startups and Established CompaniesSeattle is among the most attractive locations to start a new business because it offers the “total package” (demographic, economic, financial, taxes, cultural) according to Expansion Management Magazine. Topping the list of reasons why so many companies – upstart and Fortune 500 alike – are choosing Seattle as the region’s educated workforce: • With more than half of adults older than 25 holding a bachelor’s degree, the U.S. Census Bureau ranks Seattle the smartest U.S. city • Seattle is the most literate city in the nation, based on factors including newspaper circulation and the number of area bookstores • Washington schools got an “A” for academic achievement, success of low-income and minority students, a 21st century teaching force and overall return on investment from the U.S. Chamber of Commerce • Four Bellevue schools made Newsweek’s 2007 list of best High Schools in the nation • Nearly one in five Seattleites has a graduate or professional degree 11 Information regarding successful business rates in Seattle is helpful in choosing the correct location for our store. The Puget Sound’s area is one of the top three regions expected to bring the greatest potential for retail growth and investment. This is a positive aspect for Piper’s Denim because we will be opening a store in a blossoming retail environment. Seattle also holds the title of an attractive location to start a business. This is due to a constructive demographic, economic, financial, and cultural environment. Also noted, more than half of adults older than 25 hold a bachelors degree, and nearly one in five local Seattleites has a graduate or professional degree. This is a positive aspect to our client base because the majority of this group tends to reside in the middle to upper class neighborhoods. This can also assure a knowledgeable employee base as well.
10 11
IBID www.seattletimes.com
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Piper’s Denim
The primary consumer for Pipers denim is Upper Middle Class families. Individual salaries ranging from $80,000 to $150, 000 or $300, 000 combined. Not only do Mom and Dad shop here but so do brother and sister. Mom and Dad both have secure jobs, and the financial ability to fulfill the needs and wants of their children and themselves. Our secondary consumer Young Achievers, are a single and younger crowd consisting of both male and female. They belong to an Urban Uptown social group. They live or shop in communities with clothing boutiques and casual restaurants. They have a Median house hold income of $88,728. As noted in the graph below Seattle and surrounding cities have the desired average household income of our target market. Wealthiest Zip Codes in Washington Based on IRS Figures for Adjusted Gross Income State
City
Zip
# of Returns
Adj. Gross Income
Inc. Per Return
Salary Per Return
Tax Paid Per Return
WASHINGTON
Medina
98039
1,514
827,810
$546,770
$373,653
$174,068
WASHINGTON
Seattle
98154
40
11,141
$278,525
$285,647
$80,947
WASHINGTON
Bellevue
98009
799
211,335
$264,499
$83,600
$151,234
WASHINGTON
Mercer Island
98040
11,614
1,818,661
$156,592
$111,075
$43,729
WASHINGTON
Preston
98050
317
47,268
$149,110
$114,152
$46,537
WASHINGTON
Redmond
98053
13,166
1,809,771
$137,458
$125,040
$39,231
WASHINGTON
Bellevue
98004
11,914
1,593,524
$133,752
$97,783
$38,050
WASHINGTON
Issaquah
98029
10,405
1,280,310
$123,048
$104,463
$31,897
WASHINGTON
Seattle
98112
11,748
1,402,987
$119,423
$85,054
$33,564
WASHINGTON
Woodinville
98072
16,386
1,891,576
$115,439
$93,376
$30,602
WASHINGTON
Bellevue
98006
16,811
1,805,611
$107,407
$88,551
$28,775
WASHINGTON
Bellevue
98005
8,769
922,932
$105,249
$86,531
$34,502
WASHINGTON
Seattle
98124
921
95,419
$103,604
$89,390
$20,940
WASHINGTON
Kirkland
98033
16,467
1,573,843
$95,576
$74,666
$23,999
WASHINGTON
Redmond
98052
24,485
2,271,255
$92,761
$84,288
$24,902
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Piper’s Denim
Seattle-98101 Household Income
Occupation
<$10,000
7.6%
(among employed persons over 16)
$10,000-$14,999
7.4%
Mgt./Professional
25.1%
$15,000-$24,999
12.9%
Service
16.8%
$25,000-$34,999
18%
Sales/Office
28.6%
$35,000-$49,999
18.9%
Farm/Fishing/Forestry
0.3%
$50,000-$74,999
19.4%
Construction/Extraction/Maint.
9.3%
$75,000-$99,999
7.3%
Production/Transportation
19.8%
$100,000-$149,999
6.4%
Unemployment/Poverty
$150,000-$199,999
1.1%
Unemployed
3.7%
$200,000+
1%
Below Poverty Line
10.6%
Although Seattleâ&#x20AC;&#x2122;s median household income as a whole does not fit our desired target market, subsections and surrounding cities do. We will be relying on most of our customer base to be coming in from surrounding suburban areas and tourism. Pipers Denim will be located on 6th Avenue in the retail core of Downtown Seattle, zip code 98101.
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Piper’s Denim TourismThe Seattle-King County area attracts more than 9.4 million overnight visitors annually who spend $4.75 billion and contribute more than $419 million in state and local tax revenues. There are 11,890 hotel rooms in downtown Seattle’s central business district and more than 32,000 hotel rooms in the Seattle/King County area.12 There are more Asian visitors here than average. This year, an estimated 35,000 people from China will visit Seattle, drawn by Alaskan cruises, as well as the opportunity to tour Boeing’s giant factory in Everett. That’s half the number of visitors from Japan. But tourism officials expect tourists from China to grow rapidly in numbers.13 Seattle is consistently ranked among the top U.S. tourist destinations. Many attractions are located in the pedestrian-scale downtown area or within easy access by bus and monorail.14 Major department stores and designer boutiques are located downtown within walking distance of hotels and in suburban shopping centers throughout the area.15
2009 VISITOR IMPACT TO SEATTLE/KING COUNTY Seattle-King Co. Visitor Volume Total Overnight Visitors 8.8 Million Visitor Expenditures Food Stores $71 Million Food Service $553 Million Lodging $533 Million Retail Sales $257 Million Local Transportation and Gas $498 Million Arts/Recreation/Entertainment $206 Million Visitor Air Transportation $376 Million Total Visitor Expenditures
$6.9 Billion
Source: Dean Runyan Associates for Seattle’s Convention and Visitors Bureau
Visitor Profile Median Age 40 yrs. Median Household Income $74,300 Average Travel Party Size 2.1 people www.seattle.gov The Insider | Puget Sound Business Journal 14 www.city-data.com 15 IBID 12 13
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Piperâ&#x20AC;&#x2122;s Denim Per Day Travel Party Expenditures $204 Average # of Nights Stayed 5.7 Source: CIC Research, Inc., compiled over most recent four-year survey period via visit intercept surveys
Purpose of Trip Visiting Friends/Relatives 37% Pleasure/Vacation/Special Events 43% Business 10% Convention/Conference/Meetings 5% Other 5%Source: CIC Research, Inc., compiled over most recent four-year survey period The highlighted sections show the potential client base that comes from tourism each year. Retail sales average $275 million a year, the average income is roughly close to our desired target and the majority of travelers are here for pleasure or vacation. Shopping fits into this category.
[23]
Piper’s Denim PsychographicConsumer Preferences and Free Time ActivitiesPiper’s primary consumer is brand loyal and fashion savvy. They’re knowledgeable about quality brands and designers. Favorite brands will always remain a staple in this consumer’s life, but trending items also attract their eyes. The preferred stores they shop at are tantamount to their favored brands. A disposable income allows them to eat out often and favor certain establishments over others. Whether it’s fine dining or a quick smoothie; taste, quality, and experience are more important than price. Piper’s consumer sees all the box office hits and is up to date on the top TV shows. Since our consumer has more financial freedom their leisure activities allows a variety of actions such as weekend vacations to resorts, or playing with that new Ipad. Clothing Brands True Religion Joes Jeans Citizen’s of Humanity Hudson 7 for all mankind AG Jeans DIESEL Rock and Republic Mavi Jeans J Brand Paige Denim Coach Bailey 44 Williams Rast James Perse The North Face
Stores Nordstrom Barneys Lord and Taylor Neiman Marcus J Crew True Religion Lucky Lulu Lemon Atheletica Sternavants Tiffany & Co. Microsoft Store Apple Bose Pottery Barn Williams-Sonoma
Movies TV Source Code American Idol Sucker Punch The Bachelor Iron Man 2 NCIS Easy A Glee Despicable Me Dancing with the Stars Harry Potter and the Deathly The Game Hallows- Part 1 House Kick Ass Bones The Social Network Criminal Minds Toy Story-3 Grey’s Anatomy Inception Keeping Up with the Kardashians
[24]
Restaurants The Cheesecake Factory Wild Ginger P.F Changs Blue C Sushi Ruth’s Chris Steakhouse Gordon Biersch Pagliacci Jamba Juice Red Mango Starbucks Coffee Tully’s Coffee
Leisurely Activities Weekend Family Vacations Snowboarding Skiing Camping Boating Movies Eating Out Shopping Working Out Grooming Technology; video games, computer’s, I-pods etc. School or work related events
Piper’s Denim A Day in the LifeA Piper’s Denim FamilyA typical Monday morning in the life of the Waylon family starts at 6:30 am. The Waylon family consists of Dad, Mom, Sister, Brother, and 2 dogs. They live more than comfortably in a trendy upper middle class neighborhood. Style is of the essence. The whole family takes pride in their image and remains brand loyal to fashionable, quality brands. Dad is in his late thirties and he gets ready first because he works full time as an Engineering manager for an Architecture firm. Dad awakes out of bed in his Ralph Lauren Lounge pants. He quickly runs through his morning routine and changes into his Calvin Klein undershirt and underwear which are worn under his Hugo Boss suit. This is a professional look for work, on the weekends he usually throws on his favorite pair of True Religion Jeans and 7 for all Mankind Flannel. Dad’s job requires him to be there early so he stops by the nearest Starbucks for coffee and breakfast on his way to the firm. Mom, who is also in her late thirties, has a different job than Dad in the mornings. She runs a trendy website from home, and does personal styling on the side. In the morning Mom comes downstairs in her Burberry Checkered Lounge Pants, matching Burberry Henley and starts breakfast. At this time Joe and Sarah, brother and sister, are getting ready for school. Joe is 15 and Sarah is almost 17. Image, appearance, and clothing brands are of major importance to them at this time in their lives. Sarah comes down to breakfast in an Ella Moss sweater, her favorite pair of Joes Jeans, and her Tory Burch Flats. Brother Joe comes down to breakfast in his Nudie Slacker Cut Boot Cut Jeans, Alternative ‘game’ V Neck Tee, and his True Religion Brand Stitch it Sneaker. After a homemade breakfast the kids are off to school and Mom has a styling appointment at noon. Her client is laid back so a nice pair of jeans and blouse will be the perfect outfit. She finally decides on her J Brand ‘babe’ Flare Leg Stretch Jeans in a dark wash and a Bailey 44 ‘green thumb’ ruffle front blouse. Weekend outfits depend on the family’s whereabouts. Outerwear such as the North Face or Helly Hansen may be appropriate for the mountains, casual wear for family dinners, or perhaps a BCBG floral party dress for Sarah as she goes out on the town. Maybe Joe puts on a nice pair of rare and raw Japanese denim, Naked and Famous designer jeans for a date. While Mom and Dad dress in their favorite brands such as James Perse for her and DIESEL for him as they go out to the Gordon Beirche Brewing company to spend some quality time alone.
[25]
Piper’s Denim Consumer Motivation-
VALS offers us a specific set of psychological traits and key demographics.
Two critical concepts for understanding
consumers are primary motivation and resources. This combination determines how a person will express him or herself in the marketplace. Our primary consumer is narrowed down into two types Achievers, Strivers and Experiencers.
16
Knowing these two details can aid in brainstorming ways to attract customers to our clothing. We can tailor appealing features regarding our merchandise molded for specific personalities. PD’s consumer motivation traits are split up into three categories listed in the paragraphs below.
AchieversMotivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep commitment to career and family. Their social lives reflect this focus and are structured around family, their place of worship, and work. Achievers live conventional lives, are politically conservative, and respect authority and the status quo. They value consensus, predictability, and stability over risk, intimacy, and self-discovery. With many wants and needs, Achievers are active in the consumer marketplace. Image is important to Achievers; they favor established, prestige products and services that demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of time-saving devices.17 PD appeals to clients demonstrating personalities with “achiever” motivation because important characteristics to them are image, premium items, and exclusive services. PD offers an upscale image by displaying premium denim brands. Our onsite tailoring service and exclusive client perks clearly illustrates a sought after appearance to peers.
16 17
www.strategicbusinessinsights.com IBID
[26]
Piper’s Denim StriversStrivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead. Strivers are active consumers because shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As consumers, they are as impulsive as their financial circumstance will allow.18 PD appeals to clients demonstrating personalities with “striver” motivation because important characteristics to them peer approval, stylish items emulating wealth, and shopping appears an activity to them. Owning designer denim demonstrates an upscale image to society. Obtaining a wealthy image clearly helps a “striver” define their image. Shopping is an activity to this type of individual. Therefore PD provides an atmosphere with an entertaining shopping experience leaving room for impulse purchases, another important trait of a “striver”.
ExperiencersExperiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff. 19 PD appeals to clients demonstrating personalities with “experience” motivations because important characteristics to them are looking good, obtaining “cool” merchandise, and favoring exciting social activities. Most of PD’s customers that fall under this category will be our younger clientele. PD’s younger consumers have a disposable income because they rely on family for their purchases, or an after school job. Owning an expensive pair of jeans illustrates a cool appearance to peers that also doubles as 18 19
www.strategicbusinessinsights.com IBID
[27]
Piper’s Denim an attractive feature for the owner. Fashionable items are a main concern of “experiencers”. This youthful group strives in an exciting atmosphere and feeds off of social interaction. PD will provide an entertaining shopping experience with a sociable staff. This provides an environment that that can easily be turned into a social activity whether with a group of peers or solo. PrizmPrizm is a snapshot of consumer market segments. This includes demographic traits, lifestyle preferences, and consumer behaviors. PD’s consumers have been divided into three separate market segments. Below is a description of the categories. Winners Circle- At Piper’s denim our audience also prefers jewelry and luxury goods, fragrances/cosmetics, and home furnishing.
20
This customer also shops at retailers like Nordstrom or
Barney’s as well as boutiques and specialty stores. They belong to an elite suburbs social group. They exist at stage in life where they have an accumulated wealth that can be spent personally or on the whole family. A customer in the winner’s circle group is typically older and has an established family. This client is one of our driving forces at PD. They have a disposable income of 18%-27%. This is a large portion of earnings that can be spent on shopping. Young Digerati- Our young single consumer deals with a disposable income. This group usually goes out on the weekends and shops for trendy and stylish items. Their lifestyle traits involve reading The Economist, watching the Independent Film Channel, and driving Audi A4’s.
21
This group of clientele
has a disposable income of 8%-15%. This consumer is generally apart of PD’s young adult audience. They may recently be college graduates supporting themselves therefore having extra spending cash. Or they may be in college and still being supported by mom and dad who are a part of the winner’s circle. Tween/Teen- This group and children has significant spending power because all of their income is disposable. Teens account for one of the largest growing spending segments. They are the Key Shoppers in dual income or single parent families. Our younger client base that shops here will most likely have parents that are brand loyal to our merchandise as well. The disposable income for a tween is between
20 21
www.quantcast.com www.claritas.com
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Piper’s Denim 8% and 15%.22 A PD tween consumer belongs to a wealthy family that has the funds to support their shopping habits.
Maslow’s
Hierarchy
of needs
consists of five different types of motivation to purchase products which can be seen in the right hand image.
23
A shopper at Piper’s Denim is motivated by Self-actualization, Esteem, and Love/Belonging. Self-actualization- PD has classified a customer who is motivated by self actualization as follows. This shopper typically has an established family and is more concerned with personal preference rather than the influence of others. They are brand loyal and have a clear image of their merchandise needs. Esteem- PD has classified a customer who is motivated by esteem as follows. This shopper can be from all different types of consumers. They are satisfied by the approval of others and strive towards a confident image. They are motivated by brand image and search for popular styles. Consumer’s from the Tween/Teen group fall largely into this category. Love/Belonging- PD has classified a customer who is motivated by love and belonging as follows. Shoppers from this category are motivated by family and relationship needs. For example parents
22 23
A Buyers Life http://meediastudies.blogspot.com/2010/10/maslows-hierarchy-of-needs.html
[29]
Piper’s Denim shopping for their toddlers first pair of designer jeans. They are doing this from the intention of supplying their family with what they deem to be safe and socially acceptable. The motivations listed above relate directly to the psychological motivations that fuel a PD consumer, and the lifestyle traits that support their habits. A commonality shared between our target market regardless of age, sex, or race is an income for our products, knowledge of brands and the market place, and a desire for quality fashion. Regardless of classification all PD clients as a whole possess the need to acquire an elite, attractive image. Socializing and defining themselves as currently hip strives both lifestyle habits and purchasing drive. At Piper’s Denim it is important for us to learn, recognize, and understand the traits of our consumer. Learning about each individual’s lifestyle and personality traits can help employees better connect with customers. Motivating factors which prompt our clients to buy are important in regards to the layout and floor set of the store, selling styles, chosen promotions, advertisements, and the overall appeal of the business. Understanding these defining descriptions Sales Associates can build a strong client base founded on a genuine and knowledgeable connection between employee and customer. Customer service is our number 1 concern and gaining a profit is our number 1 goal. Memorizing consumer motivation and audience characteristics is valuable and beneficial to the success of Piper’s Denim.
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Piper’s Denim Target MarketMarket LocationThe location of the proposed business will be located on 6th Avenue in Downtown Seattle. Right in the center of The Retail Core of Seattle provides a variety of upscale restaurants and retailers. There are a variety of shopping environments to choose from such as department stores, boutiques, or shopping centers. Seattle is home to one of the largest shopping centers in the region. “Here you can enjoy a variety of public events including the Holiday Carousel in the winter, and the Out to Lunch concert series in the summer.” 24 “As of 2010, Seattle (zip 98101)'s population is 11,010 people. Since 2000, it has had a population growth of 18.78 percent. Compared to the rest of the country, Seattle (zip 98101)'s cost of living is 76.80% Higher than the U.S. average.”
25
Placing Piper’s Denim next to existing retail locations and competitors means that our client base is already present. This could lower advertising costs, and ensure an established target market. PD will also be in walking distance of several hotels and tourist attractions. Visitors from locations outside the Seattle area generally make downtown a necessary stop. PD will be surrounded by a large number of businesses and office buildings that bring in a number of commuters Mon-Fri. The proposed location of PD is an attractive one and can be viewed as an asset to our company.
24 25
www.downtownseattle.com/content/visitors/DTNhoods.cfm bestplaces.net/zip-code/Washington/Seattle-/98101
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Piper’s Denim Market History“Seattle’s spectacular growth from 3,533 in 1880 to 237,194 by 1910 created the modern metropolis. Not even a devastating fire in 1889, which turned most of downtown into what Rudyard Kipling called “horrible black smudge,” slowed Seattle’s growth. The Klondike Gold Rush of 1897-1899 accelerated the process. Rapid growth also created the first distinctive neighborhoods. New streetcar and cable railway systems spurred annexation of outlying communities, bringing the various areas together under
a
single
political
administration.”
26
“Downtown Seattle began to take shape in the early twentieth century, after the University of Washington relocated from the site of the present-day Fairmont Olympic Hotel (built in 1924) to its land-grant campus in northeast Seattle. City Engineer R. H. Thomson launched an aggressive program of regrades that flattened the area’s hills, including Denny Hill (near the present site of the Westin Hotel), which blocked downtown’s northward expansion.” 27
“The Seattle World's Fair in 1962 brought new economic dimensions to the region, establishing Seattle as a tourist and entertainment center. As a result of the reduction of federal support for aerospace projects in the 1970s, the city's reliance on the aircraft industry shifted to development of its position as a transportation hub in the international market. Since 1975 Seattle has undergone renewed economic expansion to become the financial, industrial, and trade center for the Pacific Northwest. Seattle made international headlines in 1999 when the city played host to the World Trade Organization meeting. Forty thousand demonstrators gathered to protest globalization; city leaders had hoped that the summit would showcase Seattle as a world-class friend to free trade. The event highlighted the tension between those who liked 26 27
www.historylink.org/index.cfm?DisplayPage=output.cfm&file_id=7196 IBID
[32]
Piperâ&#x20AC;&#x2122;s Denim the new high-tech, high-wealth Seattle and those who believed that Seattle is losing its small-town charm.â&#x20AC;? 28 Seattleâ&#x20AC;&#x2122;s history illustrates the story of a diverse and growing city. Seattle provides home to various individuals belonging to a vast range of social groups. Through questioning times Seattle has managed to find logical solutions to problems while enhancing their image as an intelligent US city. Seattle offers much opportunity to new businesses through innovative technology and strategies. The promotion of business and appearance is equally important. Seattle offers PD a desirable target market, location, and promising history of flourishing endeavors.
28
city-data.com
[33]
Piper’s Denim Geographic AnalysisLand Area: 84 Sq Mi Population: 612,000 as of April 1st 2010 Population Density: 7826 people per sq mi
PD will rely heavily on foot traffic and volume for store sales. Below is a chart describing the pedestrian counts by neighborhood throughout August 2010, and December 2010. The proposed location of 6th Ave also receives the highest amount of pedestrian traffic. This is a positive aspect for PD because it will attract a customer base. “Downtown pedestrian traffic is generally higher in the summer than in the holiday season. Retail Core locations at 6th & Pine and 4th & Pine tend to be the busiest sites, especially during the holiday (December) wave. The site seeing the greatest difference between summer and holiday is the Waterfront (Alaska and Seneca) with an average traffic 74 percent higher in the summer.”29
The pedestrian count chart gives PD an expected number of expected foot traffic throughout the summer and winter season. With this information we can be prepared to encounter this volume of passers. Pedestrian Counts Neighborhood Uptown South Lake Union Denny Triangle Denny Triangle Belltown Retail Core Retail Core Retail Core Retail Core Waterfront First Hill Capitol Hill Pioneer Square International District
Location 1st Ave & Mercer ST Westlake Ave & Harrison ST 7th Ave & Stewart ST 9th Ave & Westlake Ave Western Ave & Broad ST 4th Ave & Pine ST 2nd Ave & University ST 4th Ave & Pike ST 6th Ave & Pine ST Alaskan Way & Seneca ST Madison ST & Minor Ave Broadway & Olive Way 1st Ave & Yesler Way 5th Ave and Weller ST
August 2010 1,320 1679
December 2010 1032 1741
2235 2664 1219 5891 2650 2976 7081 5408 1797 982 3597 2608
2299 1895 908 5425 2605 3472 6505 1288 1730 925 1963 2671
http://downtownseattle.com/content/download/NHoodProfile/DowntownSeattleProfile.pdf
Aside from foot traffic and local residents PD’s location can be accessed through automobile, carpool, railroad, bus service, harbor facilities, Fishermen’s Terminal, and Seattle-Tacoma International Airport.
29
http://downtownseattle.com/content/download/NHoodProfile/DowntownSeattleProfile.pdf
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Piperâ&#x20AC;&#x2122;s Denim
ClimateTemperature by: Fahrenheit / Centigrade Seattle C.O. Temperature Jan Feb Mar Apr May
Jun Jul Aug Sep
Oct
Nov Dec Annual
Avg. Temperature
41.3 44.3 46.6 50.4 56.1 61.4 65.3 65.7 60.8 53.5 46.3 41.6
52.8
Avg. Max Temperature
46.1 50.6 53.7 58.1 64.2 69.6 74.1 74.1 68.8 60.0 51.5 46.2
59.8
Avg. Min Temperature
36.4 38.0 39.5 42.7 47.9 53.2 56.4 57.2 52.9 46.9 41.0 37.0
45.8
0.0 0.0 0.0 0.0 < 0.5 < 0.5 1.0 < 0.5 < 0.5
0.0 0.0
1.0
< 0.5 2.0 5.0
19.0
Days with Max Temp of 90 F or Higher Days with Min Temp Below Freezing
Seattle C.O. Heating and
7.0 4.0 1.0 0.0
0.0
0.0
0.0
0.0
0.0
0.0
Jan Feb Mar Apr May
Jun Jul Aug Sep
Oct
Nov Dec Annual
Heating Degree Days
735 580 570 438
276
123 44.0 58.0 144
357
561 725
4611
Cooling Degree Days
0.0 0.0 0.0 0.0
0.0
15.0 54.0 80.0 18.0
0.0
0.0 0.0
167
Seattle C.O. Precipitation Jan Feb Mar Apr May
Jun Jul Aug Sep
Oct
Nov Dec Annual
Precipitation (inches)
1.8
1.6
0.8
1.2
1.9
3.2
5.7 6.0
38.0
18.0 15.0 17.0 14.0 11.0
9.0
5.0
6.0
8.0
11.0 18.0 18.0
151
2.9 0.9 0.6 0.0 < 0.05 0.0
0.0
0.0
0.0 < 0.05 0.7 2.2
7.3
Cooling
Days
with
5.3 4.0 3.8 2.5
Precipitation
0.01 inch or More Monthly Snowfall (inches)
Other
Seattle
C.O.
Jan Feb Mar Apr May
Jun Jul Aug Sep
Oct
Nov Dec Annual
Clear Days
3.0 3.0 4.0 5.0
7.0
7.0 12.0 10.0 9.0
5.0
3.0 3.0
71.0
Partly Cloudy Days
5.0 6.0 8.0 9.0
10.0
8.0 10.0 10.0 8.0
8.0
6.0 5.0
93.0
Cloudy Days
23.0 19.0 19.0 16.0 14.0 15.0 9.0 11.0 13.0 18.0 21.0 23.0
201
28.0 34.0 42.0 47.0 52.0 49.0 63.0 56.0 53.0 37.0 28.0 23.0
43.0
Weather Indicators
Percent Sunshine
of
Possible
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Piper’s Denim climate-zone.com
“Seattle (zip 98101), WA, gets 36 inches of rain per year. The US average is 37. Snowfall is 11 inches. The average US city gets 25 inches of snow per year. The number of days with any measurable precipitation is 155. On average, there are 164 sunny days per year in Seattle (zip 98101), WA. The July high is around 75 degrees. The January low is 37. Our comfort index, which is based on humidity during the hot months, is a 71 out of 100, where higher is more comfortable. The US average on the comfort index is 44.” 30 Seattle’s climate is generally average with a temperature of 50 degrees. Seattle’s average rainfall is in par with the United States recorded average rainfall. The climate that Seattle emits is perfect walking weather for locals and tourists alike. A portion of PD business will rely solely on foot traffic.
30
http://bestplaces.net/zip-code/washington/seattle-/98101
[36]
Piperâ&#x20AC;&#x2122;s Denim Market ScopeMedian Family Income by State 2010 New York
$103,600
San Francisco
$99,400
Los Angeles
$63,000
Boston
$91,800
Seattle
$85,600
Chicago
$75,100
Minneapolis
$84,000
Denver
$75,900
Atlanta
$71,800
Houston
$44,500
HUD FY 2010 / Metro Areahttp://www.huduser.org/portal/datasets/il/il10/index.html
Education of Persons Over 25, Comparisons of US Cities, Percentage Completed BA or Higher Seattle San Francisco Washington, DC Boston Denver New York Chicago Los Angeles Miami Detroit
High School
English Not Spoken at Home
56.0 52.0 48.5 44.7 40.3 34.0 33.1 30.3 22.3 12.4
92.5 85.9 87.1 85.5 84.3 79.2 80.3 73.6 68.6 77.0
20.8 44.2 12.6 33.6 25.6 47.5 34.3 60.5 77.1 11.3
Source: U.S. Census Bureau, 2009 American Community Survey
Seattle and the surrounding area has a higher medium income than the the countries average. Residents of the Seattle area are highly educated compared to the rest of the US. These facts provide our company with statistical information about our demographic. Research shows that placing PD in Seattle would be profitable because residents of the area have our desired income bracket, and educational level that provides high paying jobs.
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Piperâ&#x20AC;&#x2122;s Denim Below is a compiled list of PDâ&#x20AC;&#x2122;s surrounding zips and their economic indicators. This segment focuses on the median household income of each area. The median household income in each can be identitfied through its highlighted blue color that emphasizes the sums. Each individual graph should be looked at as a whole for research purposes. After analyzing the highlighted numbers in the following 5 graphs below an analysis and summary of the surrounding zipcodes and their median household incomes will be discussed 1. (Seattle, WA 98148) Economic Indicators Household Income Occupation (among employed persons over 16) <$10,000 7.6% $10,000-$14,999 7.4% Mgt./Professional 25.1% $15,000-$24,999 12.9% Service 16.8% $25,000-$34,999 18% Sales/Office 28.6% $35,000-$49,999 18.9% Farm/Fishing/Forestry 0.3% $50,000-$74,999 19.4% Construction/Extraction/Maint. 9.3% $75,000-$99,999 7.3% Production/Transportation 19.8% Unemployment/Poverty $100,000-$149,999 6.4% $150,000-$199,999 1.1% Unemployed 3.7% $200,000+ 1% Below Poverty Line 10.6% Median Household Income: $37,411
2. (Mercer Island, WA 98040)
Economic Indicators Household Income Occupation (among employed persons over 16) <$10,000 2.4% $10,000-$14,999 2.8% Mgt./Professional 65.3% $15,000-$24,999 4.5% Service 5.4% $25,000-$34,999 5.6% Sales/Office 23.5% $35,000-$49,999 10.5% Farm/Fishing/Forestry 0.1% $50,000-$74,999 14.1% Construction/Extraction/Maint. 2.3% $75,000-$99,999 13.5% Production/Transportation 3.4% Unemployment/Poverty $100,000-$149,999 19.9% $150,000-$199,999 8.3% Unemployed 1.9% $200,000+ 18.4% Below Poverty Line 3.2% Median Household Income: $91,90431
3.
(Bellevue, WA 98006) Economic Indicators Household Income Occupation (among employed persons over 16) <$10,000 1.9% $10,000-$14,999 1.6% Mgt./Professional 58.9% $15,000-$24,999 4.3% Service 7.4% $25,000-$34,999 5.2% Sales/Office 25.4% $35,000-$49,999 11.7% Farm/Fishing/Forestry 0.1% $50,000-$74,999 20.2% Construction/Extraction/Maint. 2.8% $75,000-$99,999 15.6% Production/Transportation 5.4% Unemployment/Poverty $100,000-$149,999 20.9% $150,000-$199,999 8.6% Unemployed 2.3% $200,000+ 10% Below Poverty Line 3.2% Median Household Income: $81,929 32
31
zipskinny.com
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Piper’s Denim
4. (Kirkland, WA 98034) Economic Indicators Household Income Occupation (among employed persons over 16) <$10,000 4.2% $10,000-$14,999 2.3% Mgt./Professional 45% $15,000-$24,999 7.2% Service 11.3% $25,000-$34,999 9.6% Sales/Office 28% $35,000-$49,999 16.2% Farm/Fishing/Forestry 0.1% $50,000-$74,999 25.5% Construction/Extraction/Maint. 6.7% $75,000-$99,999 16.4% Production/Transportation 8.8% Unemployment/Poverty $100,000-$149,999 12.7% $150,000-$199,999 3.1% Unemployed 2.4% $200,000+ 2.9% Below Poverty Line 5.6% Median Household Income: $60,043 33
5. (Issaquah, WA 98029) Economic Indicators Household Income Occupation (among employed persons over 16) <$10,000 2.1% $10,000-$14,999 1.4% Mgt./Professional 59.7% $15,000-$24,999 3.9% Service 7.6% $25,000-$34,999 5% Sales/Office 24.9% $35,000-$49,999 8.4% Farm/Fishing/Forestry 0.2% $50,000-$74,999 16.5% Construction/Extraction/Maint. 3% $75,000-$99,999 18.7% Production/Transportation 4.7% Unemployment/Poverty $100,000-$149,999 20.8% $150,000-$199,999 10.9% Unemployed 1.4% $200,000+ 12.4% Below Poverty Line 2.5% Median Household Income: $91,146 34
It can be noted that 4 out of 5 zipcodes relevant to the home of a PD shopper and chosen for research meet or exceed the expected household income of our target market. Seattle’s median household income falls into the lowest bracket. This should not have a negative impact on business in the Downtown Seattle location due to other appealing factors the area has to offer such as its significant impact of tourists and foot traffic that Seattle attracts on a local, national, and international level. The importance of knowing economic indicators in surrounding neighborhoods is imperative because our target consumer resides in Seattle’s surrounding suberbs.
zipskinny.com zipskinny.com 34 zipskinny.com 32 33
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Piper’s Denim Market Size and Growth RatePopulation Growth in the Northwest 1970-2010 Year
Seattle, Greater Seattle Area*,
1970 1980 1990 2000 2010 (estimate)
Cascadia Region**
530,831 493,846 516,259 563,374 612,000
1,939,000 2,240,000 2,748,867 3,275,847 3,707,400
7,738,635 9,508,809 11,000,384 13,379,320 15,069,765
Sources: WA State OFM; BC Stats; & U.S. Census Quick Facts. *King, Snohomish, Pierce and Kitsap counties. **Washington, Oregon and British Columbia
Population by Race 2010 Race/Ethnic Group
Seattle
TOTAL population White
King County
563,374 1,884,200 394,889 1,428,353 (70.1%) (75.8%) 47,541 114,619 Black or African American (8.4%) (6.1%) 17,987 American Indian & Alaska 5,659 Native (1.0%) (1.0%) 76,714 257,932 Asian & Pacific Islander (13.6%) (13.7%) Hawaiian/Pac. Islander 2,804 Chinese 19,415 Filipino 15,867 Japanese 8,979 Korean 4,863 Vietnamese 11,943 Other Asian 12,843 Pop Hispanic/Latino ethnicity (any 29,719 127,933 race) (5.3%) (6.8%) 25,148 65,309 Two or More Races (4.5%) (3.5%) 13,423 Other race (2.5%)
Washington State 6,587,600 5,566,607 (84.5%) 237,917 (3.6%) 109,792 (1.7%) 470,361 (7.1%) 613,929 (9.3%) 202,922 (3.1%) -
Source: U.S. Census 2000; Washington State OFM 2008 Population Estimates
Seattle’s population has been on a steady rise minus a dip in the 1980’s. A steady rise means a constantly growing market. As Seattle’s population raises so does opportunities to expand to other markets and create a bigger clientele.
[40]
Piper’s Denim Attractive Features
First store of its kind
Currently there is not a store in Seattle that offers the services and products that Piper’s Denim will such as a one stop premium denim shopping experience for a wide age group.
On site tailoring
Onsite tailoring will appeal to customers who always need to get their denim altered. On site tailoring will also appeal to the customer with a busy lifestyle who can buy their jeans and take care of the details all in one experience.
Kids section is offered
PD will make it easy for families to find premium denim for their children in styles not offered at department stores. Parents can buy for their children as well as themselves while shopping here.
Prime location- The Retail Core of Seattle
The Retail Core of Seattle already offers the city with booming businesses, repeat clientele, and tourist traffic. All of which are positive features regarding location of the proposed business.
Seattle is a growing market and one of the top ten cities for entrepreneurs
Many residents in Seattle its surrounding area are college educated with respected careers. Seattle was listed as one of the top ten cities for starting a business and is number one for the use of innovative technology.
Events and Holidays
Events and holidays in Seattle will provide a window of opportunity for increased monthly sales and opportunity for advertising. Difficulties
Parking
Unfortunately Seattle does not offer a large selection of parking without paying money. There are also no parking lots or garages directly located near Piper’s Denim. All are within 2-3 blocks away.
Establishing a strong customer base due to tourism
An important factor at our store is establishing a loyal, repeat, client base. This may be hard to achieve with clients who are tourists, or visitors from an outside suburb.
Undesirable weather conditions may reduce foot traffic
PD will rely on foot traffic for a majority of customers. Rainy, windy, or dark weather conditions may divert foot traffic that would normally be encountered with accommodating weather conditions.
[41]
Piper’s Denim
“Eco-friendly” is a large aspect of Seattle culture and there is a large market that are against numerous features of high fashion and retail
Large portions of Seattle’s population are independent individuals who resist corporations, fashion/beauty markets, and overall consumerism. Placing a premium denim store in a city with individuals motivated to resist such businesses may prove challenging due to non interest.
Availability of Cotton
Uncertainty in the cotton market causes fluctuating denim prices. This may prove unfavorable to customers expecting the usual fixed price. Existing Demand for Product/Service
Weather creates a need for warmer clothes such as denim
Weather conditions in Seattle provide a need for clothes that can endure conditions such as denim, especially premium denim that provides greater warmth due to quality materials and manufacturing.
Denim, especially in the men’s market is a growing trend.
Trends in the denim market prove to be growing. New styles and designs are being created, such as the denim shirt for men which will be a hot item for the upcoming A/W 11/12 season.
New technology in the creation of denim
New technological advances are being tested in the creation of denim. New materials and finishing processes are being discovered. Laser innovation will soon replace denim washing, this technique will aid in saving large amounts of water being wasted from current practices. If the denim market can advertise sustainability, then PD will have a better chance at appealing to unreachable existing markets.
Denim continues to be a classic and a staple in wardrobes of all ages
The need for denim has never dissipated. Denim has turned into a staple item.
Premium denim brands such as True Religion maintain a strong position in branding and success as a business
Established denim brands continue to be successful in the market place, capturing a loyal customer base. PD will offer brands that clients already know, love, and trust. PD will offer styles not found in department stores and classic fits.
[42]
Piper’s Denim Composite SWOTPiper’s Denim has compiled, condensed and co-related charting of non-redundant areas of strategic interest and implication with our business venture. The emphasis resides in how Piper’s Denim compares to our major competitors and illustrates the strategies to overcome obstacles as well as those to better leverage our company growth. Our top three competitors are Nordstrom (N), True Religion
(T), and Deli Boutique (D). All three companies share similar competition characteristics. They are all within less than a mile of PD; all serve the same target market as PD, each offer a unique shopping experience related to their store. The chart below gives a brief company description of each. Company
Description
Nordstrom 6th & Pine Seattle, WA 98101
True Religion 6th & Pine Seattle, WA 98101
Deli Boutique 1st & University Way Seattle, WA 98101
One of the nation’s largest upscale retailers Sells clothes, shoes, and accessories through 110 locations and 70 outlet stores Easy Return Policy Reputable customer service Markets upscale denim wear Also sells other merchandise Merchandise also offered in Nordstrom as well Operates in about 900 high end US boutiques Houses independent designers contemporary lifestyle brands Sought after brands Top quality clothing Large men’s selection
and
On the next page is a chart explaining the strengths, weaknesses, opportunities, and threats between PD and its competitors.
[43]
Nordstrom (N), True Religion (T), Deli (D) Piper’s Denim Strengths Competitors
Weaknesses Competitors
Located in the shopping center, retail core, otherwise known as Downtown Seattle (All
Store in an established location or mall; currently obtains exclusive image in the market (T) (N) Offers a large selection of merchandise in a wide price range (N) Location brings through a significant amount of foot traffic (D)
three)
Piper’s Denim
Piper’s Denim
Strength of our premium denim selections obtain a strong brand image and international presence PD offers a more diverse selection of merchandise and more personalized shopping experience Offers a family friendly environment with children’s merchandise, while remaining tasteful and fashionable Location offers PD an established target market Opportunities Competitors
Increase online sales (N) (T) Expand customer base (D) Brand presence may increase foot traffic (N) (T) Attract tourism (All three)
“Shopping in Seattle can be a unique experience where high fashion merchandise and recreational gear coexist on shop counters”35, creates opportunity for future trends Opportunity to create a solid employee base Opportunity to create a new need/demand in the market Opportunity to market PD as a tourism attraction by advertising in Seattle travel oriented material
Competition from surrounding luxury retailers
Threat from discounted sister store, Nordstrom Rack (N) Threat from cheaper brands/fast fashion retailers
Brands are sold at nearby competitors (All three)
(N) (T)
(All three)
Piper’s Denim
35
Deli, our growing competitor offers a larger selection in men’s premium denim and alternative brands PD carries only high priced denim Statistics point out an overall decrease in women’s denim sales Consumers may choose to spend their money at other retail establishments, or on other activities such as fine dining or tourist attractions
Threats Competitors
Piper’s Denim
Styles are limited to certain brands (N) (T) Large retail environment results in less customer service (N) Merchandise geared towards a specific style or gender (T) (D) Weak advertising strategies (D)
www.city-data.com
[44]
Local boutiques promoting a premium image such as Sway and Cake, Deli, All Saints, True Religion, etc. Threats from larger department stores with an established and trusting image such as Nordstrom or Barneys Threats from imitation; counterfeits could take away a portion of sales Threats from ordinary or medium brands that can ultimately expand their product lines to premium denim brands in the future
Piper’s Denim Indirect CompetitionOur indirect competition would be Moritn’s Steak House located on 6th & Pine. Moritn’s Steak House appeals to all ages and most importantly families. PD offers merchandise for upper middle class families. Instead of choosing to buy denim at PD our consumer may choose to spend their money on other activities such as fine dining. Moritn’s is PD’s indirect competition because they are located across the street from PD’s proposed location and their menu prices and bill total may equal or exceed the price of merchandise offered in our store.
[45]
Piper’s Denim Economic IssuesPD has evaluated economic issues at a National, State, County, City, and Sub City level. Each section is split up into its own category and discusses economic indicators that are of importance to the business of Piper’s Denim. National-
http://www.russell.com/HelpingAdvisors/Markets/BusinessCycleIndex.asp
Current reading and trend The projected cyclical peak would be the lowest in the 45-year sample period. Our forecast of real GDP growth in the second quarter of 2011 is now 3.6%, down from 4.0% in January 2011. 36 This chart is of importance to PD because it clearly illustrates the nation’s steady economic rise out of
the current recession. Although the projected peak is at its lowest in over 40 years it is clearly better than
36
http://www.russell.com/Helping-Advisors/Markets/BusinessCycleIndex.asp
[46]
Piper’s Denim what the US has been experiencing. Improvements with the economy could mean a secure cash flow for retail businesses alike.
http://www.russell.com/HelpingAdvisors/Markets/BusinessCycleIndex.asp
Current reading and trend Monthly gains in nonfarm payroll employment are expected to remain at a modest plateau level at about 215,000 jobs per month through the autumn of 2011, although isolated spikes above that level are possible. With these job gains, the unemployment rate is expected to average 8.4% in the fourth quarter of 2011. 37
The unemployment rate still stands at 10% and the housing market is on a steady decline. Rod Kurtz, writer for smallbusiness.aol.com suggests that with more people out of work, individuals are more prompted to put their recreational business plan into action. He states “Perhaps more importantly, companies tend to hunker down during a recession -- meaning that entrepreneurs who know how to seize opportunity find themselves with cheaper real estate, an abundance of available talent and
37
http://www.russell.com/Helping-Advisors/Markets/BusinessCycleIndex.asp
[47]
Piper’s Denim weakened competition.”
38
Less competition means an easy way to profitability. Having a weakened
market means people are more willing to accept new business models resulting in a quick startup growth. The Forbes Global 2000 are public companies with the top composite scores based on their rankings for sales, profits, assets and market value.
39
The list below focuses on the largest retail
companies. This is of importance to PD because it is important to know which successful brands are which and what ones have a higher success rate in different areas of the US and world. Fashion is a trend shared by many nations. This knowledge provides awareness towards the merchandise and brand selection sold in our store. The United States owns four retail companies on the list all of which are in the top ten. This is a positive aspect. Many retail companies own the same brands. A majority of denim brands are made in the US and owned by the same company. It is a positive fact for PD that our merchandise selection is already available in a satisfactory market. The World’s 10 Top Retail Companies
1. Christian Dior, France 2. Nike, United States 3. Swatch Group, Switzerland 4. Luxottica, Italy 5. Toray Industries, Japan 6. VF, United States 7. Coach, United States 8. Polo Ralph Lauren, United States 9. Hermes International, France 10. Pou Chen, Taiwan
38 39
http://smallbusiness.aol.com/2010/09/05/is-now-a-good-time-to-start-a-business/ http://www.forbes.com/2011/04/20/biggest-sales-global-2000-11-top-25_slide.html
[48]
Piperâ&#x20AC;&#x2122;s Denim WashingtonBelow lists the top ten jobs in Washington State by Sector, Retail falls into 5th place. Construction- 7,754 Finance/Insurance/Real estate- 25,497 Manufacturing- 5,762 Retail- 11,894 Services- 128,900 Wholesale Trade & Utilities- 15,500 Government- 35,293 Education- 1,691 Small-business owners are seeing opportunities in the soft commercial real-estate market, trying to renegotiate their office, retail and industrial leases for less money.40 As of March 4th 2011 The Washington State Revenue and Forecast Council state that job growth, housing, and inflation is neutral. Charts available by WSRFC state that gross domestic product growth is picking up after a large dip in 2008 through 2009, with real consumer spending still higher. Credit card debt increased by 3.5% (seasonally adjusted annual rate) in December after 27 consecutive months of decline.
41
Consumer
confidence also showed improvement. A negative impact to businesses is the consistent rise of food prices and spiking gas prices. According to the economic review of WSRFC, the analysis credit conditions for small businesses are improving, but remain tight. PD will start out as a small business, as a company we need to be aware of all financial aspects that affect the success rate of our business. Tourism migration fell below average during the recession but is picking up. In the US, Washington State, and Seattle rental vacancy rates are declining. This could be due to the housing market. An increase of more tenants in Seattle creates opportunity for more clients. Seattle is known as being technologically advanced and his home to Microsoft, one of the top employers in the area. WSRFC explains that software publishing employment is expected to grow at about 5% per year, improving the job market for generation Y. Washington will recover faster than the US regarding employment recovery as will personal income.
42
In conclusion, for Washington State 2011 will prove to be a year of transition to
stronger growth and it is predicted that Washington is still likely to outperform the nation.
43
Data such
as the information obtained from WSRFC is valuable to the planning of our business. Statistics and data
http://smallbusinesswa.blogspot.com/2011/03/commercial-real-estate-negotiation-good.html http://www.erfc.wa.gov/forecast/documents/ec20110304color.pdf 42 IBID 43 IBID 40 41
[49]
Piperâ&#x20AC;&#x2122;s Denim point out and provide pleasing evidence that supports valid reasons for why PD should exist in Washington State. PD will obtain the advantage of lower retail prices and or cheaper options for preparation, while rising successfully as a business, with a population rising successfully out of a recession.
[50]
Piper’s Denim King County-
http://washington.reaproject.org/reap-report.php
“The job ratios shown above for the King County, Pierce County, Washington and the nation not only portray a number of important trends, they also serves as a thumbnail guide to evaluating an economy's capacity to generate enough jobs fast enough to absorb the increasing number of workers attendant to a growing population. The job ratio is the number of full-time and part-time jobs by place of work, divided by population.”44 The graph above illustrates King County has a better success rate at generating enough jobs to support population growth in its area. This is an important factor to Washington’s economy because they are generating enough cash to support employment. By opening PD in a largely employed area provides a financially stable environment. PD would also benefit from the circulating employee experience and provide jobs for the growing population.
44
http://washington.reaproject.org/reap-report.php
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Piper’s Denim
http://washington.reaproject.org/reapreport.p
“The graph above compares the decade average growth rates for King County noted in the previous graph with the corresponding decade averages for Pierce County, Washington and the nation. As the chart reveals, King County's average annual employment growth outpaced Pierce County's average during the 1970s (3.11% vs. 0.65%), surpassed Pierce County's average during the 1980s (3.55% vs. 2.75%), topped Pierce County's average during the 1990s (2.28% vs. 1.78%), and amounted to less than Pierce County's average over the 10 year period for this decade, 2000-2009 (0.62% vs. 1.79%).”45
Rank
County of Residence
County of Work
Worker Flow
1
Snohomish, WA
King, WA
103,334
2
Pierce, WA
King, WA
80,78
3
Kitsap, WA
King, WA
14,960
http://www.ofm.wa.gov/economy/co2co/
*Snohomish, Pierce, and Kitsap County provide the largest amount of worker flow into King County.
45
http://washington.reaproject.org/reap-report.php
[52]
Piper’s Denim
Income (2011 est.)
Per Capita
Average Household
Median Household
Regional*
$31,684
$79,119
$62,250
King County
$35,339
$84,862
$64,764
City of Seattle
$36,285
$76,734
$55,832
Downtown Seattle
$36,437
$56,446
$34,966
http://downtownseattle.org/content/businesses/Demographics.cfm
*King County obtains the Average household income PD is looking for. SeattleHighlights from 2010 Seattle is the primary economic driver in the region, which ranked as the strongest economy in the nation in 2010, up from #12 in 2009. 46
Seattle ranked #2 for growth potential in the next decade. 47
Seattle is the economic hub of Washington State, which recently ranked #2 in the nation for state economic structure that personifies the New Economy. 48
Eighth-best retail investment outlook based on supply and demand indicators.
Seventh-lowest retail vacancy rate in the U.S. retail market.
Among three cities projected to be the “first markets to stabilize, with fundamentals buoyed by low vacancy and Above-average job additions49
2010 Economic Strength Ratings by Policom, a independent economic research firm Kiplinger Personal Finance, July 2010 48 2010 State New Economy Index, Information Technology and Innovation Foundation 49 http://downtownseattle.org/content/download/transient/SOD2011EconomicReport.pdf 46 47
[53]
Piperâ&#x20AC;&#x2122;s Denim In 2010, numerous companies made news when they located or announced plans to open their U.S. headquarters or regional office in Downtown Seattle. This information supports facts affirming the Metropolitan Seattle area as a prime location for start up business growth. This is important to PD because we will be a start up business. A successful company will have a better chance at a growing in a location surrounded by growing companies. The list below first describes the name and directly across the type of business announcing new locations. Amazon.com ______________________________ Online Retail Banyan Branch __________________Social Media Consultants Blue Nile _________________________________ Online Retail Bracewell & Giuliani LLP _______________________Law Firm Cognera___________________________________ Accounting Facebook_____________________________ Interactive Media First Tech Credit Union_________________________ Financial Hulu_________________________________ Interactive Media Institute for Systems Biology _______________ Biotechnology Isilon Systems_________________________Business Services LiveMocha ____________________________ Interactive Media NewBay Software Inc ___________________ Interactive Media PATH ___________________________________ Global Health Russell Investments ___________________________ Financial Salesforce.com ________________________Business Services TechStars ______________________________ Venture Capital Weber Shandwick _________________Public Relations Agency Zynga________________________________ Interactive Media50
50
http://downtownseattle.org/content/download/transient/SOD2011EconomicReport.pdf
[54]
Piperâ&#x20AC;&#x2122;s Denim Seattleâ&#x20AC;&#x2122;s Top Ten Employers 1. Boeing- about 70,000 employees 2. Microsoft- about 40,000 employees 3. University of Washington- about 25,000 employees 4. Amazon- about 15,000 employees 5. Weyerhaeuser- about 10,000 employees 6. Group Health Cooperative- about 9,000 employees 7. Fred Meyer- about 8.7000 employees 8. Bank of America- about 7,300 employees 9. Quest Communications- about 7,000 employees 10. Nordstrom- about 6,000 employees 51 Nordstrom is a recognized high end retailer that specializes specifically on customer service. They offer merchandise for the upper middle to wealthy class. The importance of Nordstrom being one of the top employers in Seattle, Washington is the measurable amount of trained associates that are available for recruiting to PD. Nordstrom will be located 1 block away from PD. This could ease the process of hiring and training. The benefits of reducing training days and inexperienced associates could save PD money and image. These associates are already knowledgeable of the brand, familiar with high end retail, and specialized customer service.
51
http://seattle.about.com/od/largecompanies/a/topseattleemployers.htm
[55]
Piperâ&#x20AC;&#x2122;s Denim Employment by Neighborhood Census Tract 81 & 82 93 72 & 73
Neighborhood % of Total Employees Central Business District 36.1 SODO 17.3 Denny Triangle & South Lake 15.4 Union 85 First Hill 8.9 80.01 & 80.02 Belltown & Waterfront 7.4 74, 83, & 84 Capitol Hill 6.4 71 Uptown 5.1 91 & 92 Pioneer Square and International 3.4 District * Central Business District is comprised of the Retail Core and West Edge neighborhoods and a portion of the Waterfront neighborhood. 52 Retail Core locations at 6th & Pine and 4th & Pine tend to be the busiest sites, especially during the holiday (December) wave.53 The proposed location for PD is in Downtown Seattle, the retail core. According to the chart above the highlighted section represents Downtown, and more specifically the Retail Core shows that the majority of Seattle employees by neighborhood prove to be in this locality. This is a major beneficial factor for PD in two ways. One being finding and seeking employees for our store. This location provides us with a variety of individuals. Also the second factor is the amount of already qualified and trained professionals seeking employment who have experience working in Downtown Seattle. Not only are they experienced working largely with the public, the chances of individuals with credible retail experience is higher in the Retail Core of Downtown Seattle. This ensures a trusting, trained, and personable staff for PD. Customer service that represents our anticipated image is our number one focus and Downtown Seattle offers beneficial factors that reinforce this vision.
52 53
http://downtownseattle.com/content/download/NHoodProfile/DowntownSeattleProfile.pdf IBID
[56]
Piper’s Denim Downtown Seattle/Retail CoreDowntown Seattle consists of only 5% land mass but within this core lays 50% of jobs. As of 2010 there are 4,663 street level businesses, 1,163 are a mix of recognized and independent retailers. According to Marcus & Millichap 2010 National Retail Report, Downtown Seattle has 8th-best retail investment outlook based on supply and demand indicators, the 7th-lowest retail vacancy rate in the U.S. retail market, and is among three cities projected to be the "first markets to stabilize, with fundamentals buoyed by low vacancy and above-average job additions. At the end of 2010, Seattle’s Downtown Seattle had approximately 5.5 million square feet of retail space with a vacancy rate of 10.7%.
54
From 2009 to
2010 retail vacancy rates increased from 10.0% to 10.7% and lease rates decreased from $30.63 to $30.59.
55
In the Central Business District, the end of 2010 saw the vacancy rate at 3.9% and average
lease rates $46.44.
56
In 2010, more than 60 retailers opened stores or announced plans to locate
Downtown including AllSaints Spitalfields, Forever 21, Harry & David, Hipcooks, Michael Kors, Mud Bay, Omega Watch, Paper Hammer, Target, University of Washington Husky Central Store and Weldon Barber. 57 The present outlook for The Retail Core of Seattle seems to be a promising and growing one. Opening PD in an area with a growing audience will have more success in capturing a target already searching for new shopping experiences. Changes in this location are creating a retail friendly environment that was significantly smaller years ago. New and desired brands/stores locating to Seattle brings in target customers to the location of PD, thus building a customer base. The overall position of Seattle’s retail market presents itself as a successful environment for retail investments correlated to recognized and independent retailers alike.
http://downtownseattle.org/content/businesses/Retail.cfm IBID 56 IBID 57 IBID 54 55
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Piper’s Denim Political IssuesNationalOn May 18th the National Retail Federation lunched a 60 day advocacy campaign to preserve swipe fee reform. It was estimated that this law would save customers and retailers $1 billion a month by lowering swipe costs. “A provision in last year’s Wall Street reform bill will reduce the fees by an estimated 70 percent, saving about $14 billion a year that retailers plan to pass along to their customers through discounts or other benefits, but the credit card industry is spending millions to delay the reform.” 58 “The banking industry has engaged in a massive multimillion-dollar campaign of misinformation and threats intended to deprive consumers of the savings they are entitled to under reform,” said NRF Senior Vice President and General Counsel Mallory Duncan. “We'll work aggressively to set the record straight and keep banks from taking this landmark reform away from the Main Street retailers who are the lifeblood of our economy.”59 Piper’s Denim would benefit from lawful advances such as the issues stated above. By saving us money, the retailer, we can spend that extra savings investing in marketing campaigns and customer benefits. “Aside from concerns over gasoline prices and worries over jobs, apparel prices are having an impact too. Apparel stores have already started passing on raw material price rises for goods made of cotton and for underwear and the month-on-month figures could turn negative during the summer as more price raises filter through to the shop floor. Analysts also expect price rises to impact the autumn season with reports that department stores are ordering more cautiously on concerns over consumer resistance to higher-priced clothes and accessories.”60 This quote was taken from an article analyzing potential global issues that could affect the economic condition of the retail industry. This could affect PD projected denim sales, and cause reliance on major shopping holidays to meet goal. Price rises and harder attainable materials will affect price points.
http://www.pymnts.com/national-retail-federation-launches-major-60-day-advocacy-campaign-to-preserve-swipe-feereform-20110518006516/ 59 IBID 60 http://www.wgsn.com/content/report/News/2011/May_Stories/May_06/News_Story_May_061.html 58
[58]
Piper’s Denim Washington“Washington's jobless rate is down to 9.1 percent after the state added an estimated 5,800 jobs in April. Employment Security Commissioner Paul Trause said Wednesday that Washington is starting to see real momentum in job growth and that it's tough not to feel optimistic about the progress. The jobless rate in March was 9.2 percent. The construction industry led the way in April, adding about 2,400 new jobs. State officials say about 2,500 government jobs were lost. About 308,000 people were unemployed and looking for work in April. Washington has added an estimated 41,500 jobs over the past year. The unemployment rate in April 2010 was 9.8 percent.” 61 This is a very encouraging sign for entrepreneurs. Growth and numbers such as the ones stated above provide constructive facts supporting the start up of PD in Seattle, WA. A better economy will help Washington and Seattle improve, providing tremendous room for new business growth, and clients with earnings that can be spent on leisurely activities such as shopping. King County“One of the biggest municipal annexations in King County in years will take place just after midnight Tuesday, adding 31,000 people to the Eastside city of 48,000. Property taxes on a $495,000 home in the annexation area will drop from $5,788 to $4,763 next year, according to the city. When the city's utility tax, cable-franchise fee and surfacewater fee are taken into account, the net household tax burden is expected to fall by $539. King County Executive Dow Constantine said in a statement that annexation "brings local services closer to local residents — from police to permits to roads." 62 63
This annexation will bring more residents to Kirkland, WA. Kirkland is one of the surrounding zip codes that contain PD’s target market. This is positive for PD because our potential client base is growing. Another positive factor about the conduction of the municipal annexation is the amount of money that potential client will be saving on property taxes, and household taxes. This is income that can be set aside as disposable and spent on other items, such as denim.
http://seattletimes.nwsource.com/html/localnews/2015084893_apwawashjobless.html http://seattletimes.nwsource.com/html/localnews/2015183918_kirkland30m.html 63 http://seattletimes.nwsource.com/ABPub/zoom/html/2015184837.html 61 62
[59]
Piper’s Denim Downtown Seattle/Retail Core“As of July 5, vehicles with four or more unpaid parking tickets in the collections process could be immobilized and impounded even if they are parked legally at the time. The City Council's Public Safety Committee got a briefing on the parking scofflaw program Wednesday morning. As of May 15, there were 34,283 vehicle license plates in "scofflaw status," committee members were told. Of that number, the Municipal Court estimates about 23,000 are eligible to be "booted," immobilized with a special device. The cash-strapped City is implementing the scofflaw program to bring in needed revenue. Nearly $26 million is owed to the City for outstanding parking citations, officials say.”64 “The agency is hiking fares for express buses and link light rail starting Wednesday, June 1: -King County will become one zone. -Trips that start and end in the same county will have a one-zone fare. -Adult trips that cross a county (zone) line will cost $3.50. -One-zone youth fares will be $1.25.” Public transportation seems to be not so public anymore. The cost of one trip to Seattle is almost $4.00 not including round trip. Parking already deters many Washington residents to post pone Seattle trips until free parking times. Unfortunately free parking times down town are anytime after 7pm, closing hours for PD, and Sundays, shorter business days. With the fresh rise in public transportation prices and a constant trend of new parking laws and fees being put in place could have a negative impact on visitors outside of the Seattle area who depend on automobile. This could lower sales make building a clientele
64
difficult.
http://www.seattlepi.com/local/article/Seattle-pay-your-tickets-or-your-car-will-get-1404738.php
[60]
Piper’s Denim
Legal CriteriaWashingtonThe first step to starting a business in Washington State is to obtain information. This can be found through the Small business association. The SBA resource guide provided includes information and issues related to starting a business and can be narrowed down to the specific county and chosen city for PD. Before taking any further steps PD must chose the legal structure of our business which is a sole proprietorship. After deciding on a legal name PD can begin issues regarding financing. Loans can be obtained from Community Capital Development or the SBA. “CCD provides small business loans and technical assistance for small businesses through the Business Assistance Center”. 65 The SBA also offers small loans. “The Washington Secretary of State is the chief corporations officer in Washington state. Prior to obtaining any license, an entrepreneur should register with the corporate division of the Secretary of State’s office. Corporate organizing documents must be approved before the organization’s legal existence may begin”66 By completing this step PD can register as a business. “Businesses incorporating in Washington State are required to obtain a state business license, issued by the Washington State Department of Licensing (DOL). Obtaining a Washington state business license requires filing a Master Business Application with DOL. The Master Business Application can be used to obtain a Unified Business Identifier (UBI) number and to register trade name.”67 A trade name will provide records of all business owners. After these steps are completed PD must register locally through county and city levels. Steps and regulations vary between locations. Tax Regulations: “Washington State does not impose a corporate, unitary, or personal income tax. However, most businesses will be subject to a business and occupations (B & O) tax, a retail sales/use tax, and state property taxes. The state also imposes taxes on such activities as public utilities, carbonated beverages, fish, timber, tobacco products, litter, refuse collections, petroleum products, and hazardous materials. However, some industries may be able to benefit from one of several state tax incentives” 68
http://www.seattle.gov/economicdevelopment/pdf_files/10-steps-biz-startup.pdf IBID 67 IBID 68 IBID 65 66
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Piper’s Denim
King County“King County does not require a general business license. Any business operating within the city limits of any of the major cities within King County is required to have a city business license. However, if a business is located in unincorporated King County – an area outside of city limits – and engages in a regulated activity, a King County regulatory license must be obtained for each regulated activity. The King County Department of Development and Environmental Services (DDES) issues most licenses to businesses engaged in regulated activities.”69 PD will be operating within city limits therefore legal issues in King County regarding business start up must be done at state and city levels. Seattle
“Business License. Each business engaging in business activities in Seattle must obtain and annually renew a city business license unless the business activity is specifically exempted from licensing and taxes. Anyone engaging in business activities within Seattle is required to obtain a Seattle business license whether or not a place of business is maintained within city limits. A branch business license is required for each additional venue doing business. The Revenue and Consumer Affairs (RCA) Division of the Department of Executive Administration is responsible for business licensing.” 70
“Regulatory License. The city of Seattle further regulates specific business activities and requires entrepreneurs to obtain a City of Seattle regulatory license for each regulated activity. Unless the business activity is specifically exempted, the entrepreneur must obtain a city business license in addition to the City of Seattle regulatory license(s). RCA is responsible for issuing regulatory licenses.”71
In order to open a business in Seattle PD must obtain a business license and a regulatory license. PD will renew our business license annually and register for a regulatory license for each regulated activity. Tax Regulations: “All businesses in King County are required to file a personal property tax affidavit. The King County Assessor’s Office is responsible for assessing personal property used by a business. Personal property typically includes items used by a company to conduct business, and generally does not include property attached to a building or the land. Once a Master Business License is obtained from the state, an account is established for your business and personal property tax affidavits are mailed at the end of each year requesting information about business asset.”72
IBID IBID 71 IBID 72 IBID 69 70
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Piper’s Denim
Downtown Seattle/Retail Core“Most commercial related permits are issued by the Department of Planning and Development (DPD), which is responsible for developing, administering, and enforcing standards for land use, design, construction, and housing within city limits. However, depending on the industry and intended business activities, entrepreneurs may need to obtain permits from other city agencies, such as the Department of Transportation (SDOT), Seattle Public Utilities (SPU), or the Seattle Fire Department (SFD). DPD provides entrepreneurs with comprehensive information on how to obtain permits from various City departments and it is essential that entrepreneurs consult with DPD early in the process.” 73 Types of Permits
Use- Seattle land use regulates business activities based on the use of real property. Seattle land use is in compliance with city zoning.
Construction- The Seattle Building Code regulates business activities based on the intended use of a physical structure. This ensures projects comply with structural and fire/life safety regulations.
Over the Counter (OTC) Permits- “DPD issues thousands of over-the-counter permits annually, including electrical permits, fire alarms, boiler permits, pressure vessel permits, refrigeration permits, single family/duplex mechanical permits, and side sewer/drainage/sewer capping.”74
Plumbing Permits- Required installing, relocating, or changing a plumbing system.
Street Use Permits- Over 60 different types of permits are available from the SDOT for work and use in the public rights of way.
Tax Regulations: “Every person or entity doing business within the city limits is subject to the business license tax unless specifically exempted by the Seattle Municipal Code. Seattle maintains a general gross receipts business license tax and a gross receipts utility tax.”75
IBID IBID 75 IBID 73 74
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Piper’s Denim
Seattle Good Business Network is a non-profit venture that promotes, connects, and empowers Seattlearea businesses that care about the future of our place. Our members are locally owned, independently operated businesses of all kinds... breweries and banks, restaurants and retailers, producers and professional services.76 At PD we will be selling already established, recognizable name brands. It is also important to us as a company that we grow, adapt to new trends, and appeal to customers especially locals. In order to keep up with trends such as alternative and underground brands, which play a large part in the Pacific Northwest Scene, we will want to expand our contacts and sources to better position ourselves in the market. PD wants to keep its trendy image, established customer base, and pursue attraction to other markets. We want to keep our quality promise and offer an environment that demonstrates respect for our customer and neighbors. Requesting a membership to places such as Seattle Good Business Network helps in creating these opportunities. “OED supports current and forming Business Improvement Areas (BIAs). A BIA provides an annual budget to fund services and improvements in neighborhood business districts by assessing property and/or business owners who benefit from the improvements. BIA funds can be used for services such as parking, joint marketing, cleanup and maintenance, security, special events, beautification, and professional management. The City contracts with each BIA, and each BIA is governed by a ratepayer's advisory board. The City collects the assessments and reimburses BIA expenses. Current neighborhoods with BIAs are Broadway, Chinatown/International District, Columbia City, Downtown, Pioneer Square, University District, and West Seattle77” Seattle is booming with associations that help businesses in this sub city of Seattle succeed, survive, and benefit the community. Notable groups include the Downtown Seattle Association (DSA). DSA has created a variety of programs. Their programs are made possible through partnerships public and private organizations in the community. The DSA created the Metropolitan Improvement District (MID). “(MID) to enhance the urban environment of Downtown Seattle. The DSA has developed and managed the MID’s maintenance, safety, marketing and business development programs.”78 Commute to Seattle is a program that shows DSA concern about transportation. “DSA partnered with the City of Seattle and King County Metro to form the Commute Seattle. This new organization develops resources for Downtown employers and commuters to encourage transit use and reduce the volume of single mode drivers.”79 Commute to Seattle can be a very important topic to support and become involved in as a business because potential PD employers may rely on transportation to get to work. The most http://www.seattlenetwork.org/ http://www.seattle.gov/economicdevelopment/support_tools.htm 78 http://downtownseattle.org/content/programs/Overview.cfm 79 IBID 76 77
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Piperâ&#x20AC;&#x2122;s Denim relevant program to PD that DSA has created is their marketing and communication program. â&#x20AC;&#x153;This program helps to improve the vitality and attractiveness of Downtown to visitors, businesses and residents. DSA implements a comprehensive marketing plan that includes multi-media advertising, public relations and a series of events throughout the year.â&#x20AC;?80 Downtown Seattle places major focus on how their businesses are represented and perceived. PD will become involved with the support of DSA marketing plan, multi media advertising, and public relations to enhance our overall business, marketing, and sales techniques. Working with associations that better the city only help better out company, and demonstrates are respect and appreciation for Downtown Seattle.
80
IBID
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Piper’s Denim Social IssuesEducational Level“Seattle public schools spend $5,072 per student. The average school expenditure in the U.S. is $5,678. There are about 18.9 students per teacher in Seattle.”81 The two graphs below demonstrate the Seattle area as a highly educated location. This is important to the business of PD because higher paying jobs are obtained from secondary education. Higher paying jobs offer higher salaries which in turn offer the opportunity of a disposable income that can be spent on leisurely activities, and quality merchandise such as denim.
Seattle San Francisco Washington, DC Boston Denver New York Chicago Los Angeles Miami Detroit
BA or Higher
High School
English Not Spoken at Home
56.0 52.0 48.5 44.7 40.3 34.0 33.1 30.3 22.3 12.4
92.5 85.9 87.1 85.5 84.3 79.2 80.3 73.6 68.6 77.0
20.8 44.2 12.6 33.6 25.6 47.5 34.3 60.5 77.1 11.3
Source: U.S. Census Bureau, 2009 American Community Survey http://www.seattle.gov/oir/datasheet/education.htm
Major Universities and Colleges # of Students Internet Home Page University of Washington (public) 46,653 www.washington.edu Seattle University (Jesuit) 6,616 www.seattleu.edu Seattle Pacific University 4,000 www.spu.edu (Wesleyan, Evangelical Christian) Art Institute of Seattle (design, 2,300 www.ais.edu media arts, fashion, culinary) DigiPen Institute of Technology 883 www.digipen.edu (production animation; game design, interactive simulation, computer engineering/science) Cornish College of the Arts 800 www.cornish.edu Seattle Community Colleges, four 50,000 www.seattlecolleges.com campuses Enrollment figures for Fall 2008-2009. 81
Bestplaces.net
[66]
Piper’s Denim Family Size and StructureThere are 60,000 individuals that live in the Downtown area, 38% of these residents work downtown. That leaves a large selection of potential employees for PD. Some common facts regarding population in Downtown Seattle are as follows:
Downtown Seattle’s population has grown 76 percent since 1990, compared to 19 percent citywide for the same period, and 26 percent since 2000 – accounting for more than one quarter of the city’s population growth 2000-2010.
Two-thirds are between the ages of 25 and 54 (compared to half city-wide).
The number of families living Downtown has increased more than 30 percent in the past 10 years, and that number is expected to grow 7.6 percent in the next five years. Families currently comprise approximately 17 percent of Downtown households.
Of those age 25+, 45 percent have a bachelor’s degree or higher (compared to 36 percent for the region). The Downtown population is more racially diverse than that of the city, county and the nation as a whole, another factor that makes Downtown living desirable for both residents and the businesses who serve them.82
Among the fastest-growing groups:
Those with advanced academic degrees – master's degrees and doctorates.
People age 55 and older.
Children between the ages of 10 and 14.
Hispanics.83 The information above shows population growth throughout Seattle. Because of the rising
population growth PD can expect our target market to have growth. The diverse population creates a diverse target market creating new marketing opportunities. It is beneficial that among the fastest growing groups are children between the ages of 10 and 14 because PD can acquire this group as new clientele that can expand our loyal customer base and grow as the business grows.
82 83
http://downtownseattle.org/content/businesses/Demographics.cfm IBID
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Piperâ&#x20AC;&#x2122;s Denim
Gender Ratio (2011 est.)
Male
Female
Regional*
50%
50%
King County
50%
50%
City of Seattle
50%
50%
Downtown Seattle
59%
41%
http://downtownseattle.org/content/businesses/Demographics.cfm
Downtown Seattle has more male residents. Denim is a large item for the male gender group. Therefore PD will offer staple merchandise that is attractive to local residents.
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Piperâ&#x20AC;&#x2122;s Denim Birth Rates-
Residence
Occurrence
Total
Rate2
Male
Female
Total
89,242
13.4
45,692
43,549
89,200
Adams
456
25.3
234
222
650
Asotin
233
10.8
116
117
1
2,485
14.7
1,272
1,213
4,244
1,293
19.2
654
639
1,487
583
12.3
291
292
2,398
1,046
14.4
530
516
1,568
601
19.4
298
303
1,458
655
9.4
370
285
608
County and City State Total
Benton Kennewick Richland Chelan Wenatchee Clallam Port Angeles
239
12.4
107
132
483
5,578
12.9
2,893
2,685
5,515
Battle Ground
332
19.4
179
153
6
Camas
265
15.6
130
135
0
3,593
21.8
1,858
1,735
5,472
Clark
Vancouver Columbia
32
7.8
17
15
0
1,299
13.0
642
657
1,183
576
16.0
274
302
1,178
537
14.3
300
237
1
60
7.7
27
33
2
Franklin
1,687
23.2
893
794
381
Pasco
1,433
26.3
758
675
379
Garfield
18
8.0
7
11
0
Cowlitz Longview Douglas Ferry
Grant
1,630
18.9
819
811
1,239
Moses Lake
500
26.4
252
248
1,161
Grays Harbor
839
11.8
425
414
623
Aberdeen
274
16.7
146
128
613
901
11.2
459
442
606
531
22.7
265
266
390
194
6.7
94
100
153
25,057
13.1
12,792
12,264
29,668
Auburn
1,149
18.9
577
572
973
Bellevue
1,480
12.3
746
733
4,307
Bothell part
327
18.9
161
166
3
Burien
468
14.7
234
234
969
Covington
248
14.1
122
126
0
Island Oak Harbor Jefferson King
Des Moines Federal Way Issaquah Kenmore
359
12.3
186
173
0
1,370
15.5
693
677
1,384
656
24.4
323
333
4
245
12.0
129
116
3
1,850
20.9
984
866
2
Kirkland
903
18.4
464
439
4,730
Maple Valley
348
16.7
172
176
3
Kent
[69]
Piper’s Denim Mercer Island
128
5.6
70
58
Redmond
1,014
19.5
548
466
9
Renton
1,809
21.6
914
895
3,988
Sammamish
452
11.1
224
228
4 1
SeaTac
422
16.4
218
204
8,041
13.4
4,057
3,984
Seattle
1
12,946
King County and more specifically Seattle have the largest populations which is a benefit to our store because it is located around potential clients. This is important because PD will have a larger population of potential clients to market to and bring into the store. “As of 2010, Seattle's population is 602,560 people. Since 2000, it has had a population growth of 6.87 percent.”84
Measures of Maternal-Child Health - Total Population Births3
Number
Rate per 1,000
Rate per 100,000
13
�
4,021,726 / 13.9
�
445,944 / 43
79,028 4
Teen Births
3
7,517
33
Teen Birth Rate of Change12
-35
�
�
-26.2
Preterm Births (% of live births)3
9.6
�
�
12.1
4,604
�
�
314,077
Low Birth Weight (% of live births)3
5.9
�
�
7.8
Infant Deaths2
�
27,568 / 6.8
Low Birth Weight
3
459
5.8
5
Child Death Rate
�
�
18
22
Teen Death Rate5
�
�
43
50
83.4
�
�
83.7
73
�
�
78
% Mothers 1st Trimester Care3 6
% Children Immunized
http://www.ehd.org/health_state_data.php?stateno=48
84
United States
Bestplaces.net
[70]
Piperâ&#x20AC;&#x2122;s Denim HousingOccupied Housing Units (2011 est.)
Owners
Renters
Total
Regional*
925,594
546,898
1,472,492
King County
484,674
316,198
800,872
City of Seattle
137,279
149,215
286,494
5,862
30,841
36,703
Downtown Seattle
http://downtownseattle.org/content/businesses/Demographics.cfm
http://downtownseattle.org/content/businesses/Demographics.cfm
[71]
Piper’s Denim “In 2005-2009, Seattle city had a total of 297,000 housing units, 7 percent of which were vacant. Of the total housing units, 50 percent was in single-unit structures, 49 percent was in multi-unit structures, and less than 0.5 percent was mobile homes. Eighteen percent of the housing units were built since 1990. The median monthly housing costs for mortgaged owners was $2,200, nonmortgage owners $618, and renters $923. Forty-two percent of owners with mortgages, 18 percent of owners without mortgages, and 46 percent of renters in Seattle city spent 30 percent or more of household income on housing.” 85 “The median home cost in Seattle is $361,940. Home appreciation the last year has been -8.83 percent. Compared to the rest of the country, Seattle's cost of living is 42.60% Higher than the U.S. average.” 86 According to the information above more residents rent in Seattle and the cost of living is higher. Therefore PD can expect local clients to have a fast paced and higher expectation of living. PD can appeal to those clients by offering premium merchandise in an upscale environment.
85 86
Bestplaces.net
[72]
Piper’s Denim PovertyBelow lists the percentages of racial and ethnic differences evident in poverty circa Seattle 2000. White- 8.5% Black or African American 23.0% Asian-16.2% Native Hawaiian & Other Pacific Islander- 25.3% American Indian & Alaska Native- 29.1% Hispanic- 21.6% Multi Race-18.9% Some Other Race- 20.7%87 The data below compares Washington State and US poverty statsics via 2009. “For people reporting one race alone, 72 percent was White; 8 percent was Black or African American; 1 percent was American Indian and Alaska Native; 13 percent was Asian; less than 0.5 percent was Native Hawaiian and Other Pacific Islander and 2 percent was some other race. Four percent reported two or more races. Six percent of the people in Seattle city were Hispanic. Sixty-nine percent of the people in Seattle city was White non-Hispanic. People of Hispanic origin may be of any race.”88 Seattle is hub to a homeless population. The city provides access to low income housing options and food services. This could be a negative aspect to opening a business in Seattle because it could dilute PD’s target market which is upper middle class markets.
http://www.seattle.gov/dpd/cms/groups/pan/@pan/documents/web_informational/dpds_006763.pdf http://factfinder.census.gov/servlet/NPTable?_bm=y&-geo_id=16000US5363000&qr_name=ACS_2009_5YR_G00_NP01&-ds_name=&-redoLog=false 87 88
[73]
Piperâ&#x20AC;&#x2122;s Denim Crime RatesBelow is compiled data and charts regarding crime rates in Seattle. The charts compare statistics between Seattle, Tacoma, and National averages.
http://seattle.areaconnect.com/crime/compare.htm?c1=Seattle&s1=WA&c2=Tacoma&s2=W A
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Piperâ&#x20AC;&#x2122;s Denim Latest 2006 Crimes per 100,000 People: Seattle, WA
Tacoma, WA
National
Murder:
5.1
10.5
7
Forcible Rape:
22.1
71.26
32.2
Robbery:
285.6
341.3
205.8
Aggravated Assault:
398.4
618.8
336.5
Burglary:
1285.6
1644.1
813.2
Larceny Theft:
4090.6
4849.3
2601.7
Vehicle Theft:
1395.6
1807.2
501.5
According to the data above crime resulting in the theft of valuable property is higher in Seattle than the national average. This means that it is important for PD to make customers feel safe and secure about their purchase. It is also important for PD to ensure a safe work environment to ensure our employees, and valuable property is safe.
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Piperâ&#x20AC;&#x2122;s Denim Cultural IssuesEthnicity and Ethnic Mix-
Population by Race in 2010 Race/Ethnic Group
Seattle
King County
TOTAL population White
563,374 1,884,200 394,889 1,428,353 (70.1%) (75.8%) 47,541 114,619 Black or African American (8.4%) (6.1%) 17,987 American Indian & Alaska 5,659 Native (1.0%) (1.0%) 76,714 257,932 Asian & Pacific Islander (13.6%) (13.7%) Hawaiian/Pac. Islander 2,804 Chinese 19,415 Filipino 15,867 Japanese 8,979 Korean 4,863 Vietnamese 11,943 Other Asian 12,843 Pop Hispanic/Latino ethnicity (any 29,719 127,933 race) (5.3%) (6.8%) 25,148 65,309 Two or More Races (4.5%) (3.5%) 13,423 Other race (2.5%)
Washington State 6,587,600 5,566,607 (84.5%) 237,917 (3.6%) 109,792 (1.7%) 470,361 (7.1%) 613,929 (9.3%) 202,922 (3.1%) -
Source: U.S. Census 2000; Washington State OFM 2008 Population Estimates http://www.seattle.gov/oir/datasheet/demographics.htm
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Piper’s Denim
Overall, Seattle is separated by neighborhoods with distinct cultural differences. These differences are not just subject to race but by lifestyle, history, industries, colleges, and geographical differences. Below is a list of Seattle’s neighborhoods and their cultural and ethnical influences. Towns with art, retail, and colleges dominate the market heavily. PD is targeted towards these personalities. PD’s goal is to target people who express themselves through art and culture. This broadens our target all across Seattle. Neighborhoods Ballard Bellevue & Eastside Capitol Hill Columbia City Downtown Seattle Freemont Georgetown and SODO China Town/International District Lake Union Area Madison Park Pioneer Square Queen Anne Southside Seattle Southeast Seattle University District (U District) West Seattle
Cultural Appeals Historic appeal Dining, retail, parks Hip, urban, unique retail Historic Appeal Key attractions, dining, retail, historical appeal Bohemian offbeat lifestyle Industrial bohemian chic, music and sport venues, industrial district Ethnic and cultural diversity Stylish, unique businesses and homes Residential enclave Historical, waterfront appeal Museums, historical, and elite appeal Diverse neighborhoods Museums, retail, and outdoor appeal Dining, retail, youthful, relaxed appeal Founding point heritage, recreational activities, ethnic farmers market
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Piper’s Denim
NightlifeDowntown Seattle has 600 restaurants to pick from Belltown to Pioneer Square. Seattle prides itself on its music scene, which is heavily impressive compared to other US cities. Every weekend local shows and larger shows are available to attend in all genres of music. Tickets can range from $5 to $ 35. Many bars double as music venues. Shows are a popular activity that applies to both males and females in ages ranging from 14-40; therefore PD fashion will be an important aspect concerning apparel worn to these shows. We have the opportunity to market ourselves as a destination spot for denim choices chosen for nightlife apparel, especially in young males. “Seattle has no shortage of local bars that are sure to make any visitor feel like a real Seattleite. Blues clubs, British bars, Irish pubs, lounges, dive bars and college bars are just a few of the varieties of drinkeries that Seattle has to offer. Seattle also has a number of different locations in the city to imbibe. From Belltown’s posh lounges to the University District’s college bars to Capitol Hill’s gay friendly atmosphere, Seattle has something for everyone. The Pike Pub & Brewery is a great place to start getting to know Seattle nightlife. Pike Place Market is a Seattle landmark that attracts throngs of tourists, but don’t let this discourage you—there’s good reason for this. For a smaller, less touristy bar, Honeyhole Sandwiches is a great Seattle pick. They serve up unnaturally strong drinks alongside delicious sandwiches. Seattle bars are simply the best starting point for those of age to begin getting to know the city and the people who love to call it home.” 89 Because the Seattle nightlife, food, and music scene, are closely related PD can expect to appeal to an infused population and generalized target market.
89
http://www.seattle.com/nightlife/
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Piper’s Denim
SportsBelow is a list of professional sports teams and stadium names that are local to the Seattle area. Locals are supportive of Seattle’s sports teams. Sporting events are something a PD client might attend. By understanding this PD can explore customer benefits, advertising, and marketing strategies involving an interesting hobby that appeals to our clients. Because of Seattle’s high population density PD can expect to attract a number of sports fans as clients. PD can appeal to this market with promotions during sports events.
Seattle Mariners (Safeco Field)
Seattle Storm (Key Arena)
Seattle Thunderbirds (Key Arena)
Seahawks (Qwest Field)
Seattle Sounders (Quest Field)
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Piperâ&#x20AC;&#x2122;s Denim
Civic Center, Parks and EventsThe first Thursday of every month brings in the most traffic to Seattle. This is due to the art walk that Pioneer Square holds, where art surrounds streets/local businesses, and all museums in Seattle are free. Seattle holds other free festivals such as The North West Folklife Festival, The Bite of Seattle, or Hempfest. These are just examples of many attractions that bring copious amounts of foot traffic to Seattle that had the potential to strengthen our sales and customer base. Certain festivals will also go along with PD image; this will be an attractive aspect to the innovative, shopping Seattleite. Washington State has a strong visual appeal, and landscape that creates many attractions involving nature. Parks are a very important attraction to Seattle. Most parks in Seattle are free and display a lot of art work. Seattle Center is home of the Space Needle, fountain, Pacific Northwest Ballet, Experience Music Project etc. Seattle Center is a common place to visit when touring the city. Its placement is outside of the retail core, but amenities and event calendar located here should be noted in case they interfere with customer traffic and overall sales. PD can expect people who are from out of town to have visited or who are expected to visit one of these attractions. PD can appeal to this crowd by advertising tourist attractions in our store through images and promotions to give our visiting customers a more immersive experience in Seattle.
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Piper’s Denim
MuseumsBelow is a chart listing the categories and names of museums in the Seattle area. Highlighted are the museums that are most likely to attract the same target audience as Piper’s Denim. Understanding information such as this will help in understanding our indirect competition and creating the opportunity for new advertising and marketing ventures in these locations. There will be no threat from museums and parks with free admission.
Art Galleries
Aviation and History Transportation and Heritage Seattle Art Museum of Suquamish Museum Flight Museum
Maritime and Military Klondike Gold Rush National Historic Park Henry Art Future of Flight Wing Luke The Center Gallery, and Boeing Asian for Tour Museum of Wooden the Asian Boats. Pacific American Experience Frye Art Flying Heritage Nordic Museum Museum. Heritage Museum Bellevue Northwest Arts Railway Museum Museum Seattle Asian Art Museum
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Science and Nature
Pop Culture
The Burke Experience Museum Music Project
Kid Friendly The Seattle Children’s Museum
Washington Science The Burke Park Fiction Museum Arboretum Museum & Hall of Fame Pacific Science Center, Seattle Metropolitan Police Museum
Piperâ&#x20AC;&#x2122;s Denim
Religious Issues-
35.07% of King Countyâ&#x20AC;&#x2122;s population is linked to a religious congregation. The US average is 48.34%. Washington is below the countries average. Seattle has several religions that are practiced here, with Catholic being the largest. Religious issues that may impact our business are recognized holidays, not specific to just one religion, but are practiced by large amounts of the populations throughout the nation and state. Such as Christmas, Hanukkah, Easter etc. Religion
Seattle, WA
United States
Percent Religious
35.07%
48.34%
Catholic
15.35%
21.76%
Protestant
0.00%
0.00%
LDS
2.58%
1.66%
Baptist
1.98%
8.38%
Episcopalian
0.67%
0.53%
Pentecostal
2.79%
1.78%
Lutheran
2.28%
2.49%
Methodist
0.91%
2.98%
Presbyterian
1.29%
1.07%
Other Christian
4.93%
5.20%
Jewish
1.60%
1.81%
Eastern
0.11%
0.05%
Islam
0.56%
0.64%
http://www.bestplaces.net/city/washington/seattle#
Because most of the population belong to Christianity PD should appeal to more Christian holidays such as Christmas and Easter. Even though PD is aware of the religious demographics we do not plan to put our focus into religious denominations.
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Piper’s Denim
Technological Advances“The clean technology industry in Seattle/Washington State accounted for 61,775 jobs in 2009 in the sectors of energy efficiency, renewable energy, reducing pollution and pollution cleanup. The sectors of wind, solar, biomass, wave/tidal and geothermal energy employ 17,000 people in an estimated 2,008 companies that received $635 million in venture capital investments in the 2006 to 2008 period. Washington State has the largest coordinated hydro-electric system in the world, providing 73% of the state’s electrical power.” 90 According to the Seattle Times, Seattle is a very innovative city, utilizing some of the world’s newest technology. Seattle obtains a large population with higher education, top literary skills, and leading companies like Microsoft. The Seattle Times stated that downtown is a prime location for entrepreneurs due to these factors. Because of Seattle’s trend for new technology and energy advances, PD plans to use innovative textiles and market clothing production that utilizes clean energy and technological advances.
90
IBID
[83]
Piper’s Denim
Environmental Issues LEED CompliancePD will achieve LEED certification to practice sustainable business and building procedures. “LEED provides building owners and operators with a framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions.”91 “The benefits of using LEED as approach to sustainability will result in measurements of PD’s;
Water efficiency
Energy and atmosphere
Materials and resources
Indoor environmental quality
Innovation in design
Awareness & education regarding green practices
“Participation in LEED gives building owners and operators the tools they need to have an immediate and measurable impact on their buildings' performance. There are both environmental and financial benefits to earning LEED certification.”92 To achieve LEED certification PD must strategically plan out green functions within the interior of our store. “LEED points are awarded on a 100-point scale, and credits are weighted to reflect their potential environmental impacts”.
93Going
green is a trending lifestyle in the Northwest.
Residents are conscious of environmental issues such as recycling and using organic items. As a business in an environmentally conscious neighborhood PD will to keep this trend going in respect to our city and clients. PD will utilize all resources that we can to better serve the planet.
http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1988 IBID 93 IBID 91 92
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Piper’s Denim Promotional PlanImage StatementIndigo Denim The first word that comes to mind when walking into Piper’s denim is indigo. The walls will be painted an indigo throughout. The floors will be a dark hardwood, very rustic looking. Fixtures will correspond with this image. The shelving units will be white and the surfaces throughout will play with different types of wood. All upholstery and linen will be made out of leather. T-stands will be the only metal fixture in the store. This image will add to the uniqueness and quality expected from brands sold at Piper’s Denim. Merchandise will be assorted by gender, then by brands, then by sizes. The main entrance is on the first floor of the building and will bring you into both men and women’s. There will be feature areas in both the men and women’s section displaying trending items. Along the walls will be shelves and face outs with classic denim styles and fits. Tops and accessories will be incorporated into the chosen floor set for a specific time period. The second floor holds Children’s merchandise, all clearance, and a fitting room area. It is smaller than the first floor and overlooks the store resembling a loft style. I have chosen to place kids and clearance up stairs because our children’s section is smaller and contains fewer brands. Our clearance section is also small because the majority of our items do not get marked down. Merchandise that would get marked down will consist of seasonal tops, sweaters, shorts, a specific denim wash trending for a season etc. The clearance section is by the fitting rooms so clients will notice it before trying on their full price items, and add on more to their sale. By placing the fitting rooms in top of the store customers will be inclined to spend more time browsing as they make their way to the fitting area. The merchandise will be presented in an appealing way with easy navigation. Part of our sales associate’s job requires personalizing the shopping experience and showing customers items they may have missed. Our team will be trained to know where all merchandise is. All merchandise will be presented in an attractive and organized way. The most productive areas in the store will take place on the first floor; right when you walk in through the entrance both men and women’s feature areas trending new merchandise can be sighted. Piper’s denim is located on 6th Avenue in down town Seattle. This is the retail core of the city. It is surrounded by all types of businesses consisting of food, retail, and specialty shops. In store signage depends on promotions, seasons, and brand advertisements. Clearance always stays up stairs. Men, women, and our kids sections will remain in their designated areas along with brand sections. Temporary signage will be used on feature areas and windows for promotional events. Signage attracting impulse purchases will come from brand appeal.
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Piperâ&#x20AC;&#x2122;s Denim Inspiration-
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Piper’s Denim Marketing MixProductPD will be start out carrying 5 premium denim brands and expand after the first 12 months in business. Below is a brief description of each brand and merchandise selection carried in our store.
1. 7 For All Mankind: 7 for all Mankind can be considered leaders in the Premium Denim industry. In a sense they were the start of the denim crazy. Twelve years since their launch in 2000 and they are still going strong. They are an established and trusted denim brand. *Darker dyes and classic fits such as boot-cut are the most likely to stay in style.94 * Seven for All Mankind is taking advantage of the multi-channel strategy by utilizing distribution to boutiques and department stores along with a new retail chain of their own.95 *Companies that have a strong consumer base, like Seven for all Mankind, can extend Their product lines to create a lifestyle brand. 96 We will be carrying men and women’s premium denim. This consists of classic styles and fits in petite and long lengths, and trending styles. We will also be carrying a smaller selection of blouses, sweater, jackets, and accessories for women, and a smaller selection of shirts, sweaters, jackets, and accessories for men.
2. True Religion: True Religion’s commitment to perfect fit, timeless style and that hippie bohemian chic flair have solidified True Religion’s brand position as a leader in premium denim. True religion jeans are guaranteed impeccable. Although this seems hard to believe, it is the company still standard jeans true religion to make a perfect pair of jeans. They have done something right, because they are generally accepted at stores across the country, being suitable for the perfectionist. 97 We will be carrying classic fits and styles from True Religion. We will also be carrying trending denim and tops for both men and women. True Religion will also be the highlighted brand for kid’s premium denim. 94
What to Buy Before Cotton Prices Rise - Spending Deals - SmartMoney.com http://www.smartmoney.com/spending/deals/whatto-buy-before-cotton-prices-rise/#ixzz1GWmZ6nqi
http://www.nctextileconnect.com/documents/Premium%20Denim%20Edited.pdf IBID 97 http://hubpages.com/hub/Fashion-True-Religion-Jeans-Outlet-2011 95 96
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Piper’s Denim
3. Hudson: The source of Hudson Jeans quality comes in the way of pride and consistency. Hudson Jeans are produced and manufactured in countries like Japan and Italy, countries which have always been known for the quality and pride they infuse in their products. The detailing adds to this quality. Through double-seam stitching and the addition of designer rivet buttons, Hudson Jeans transform even the most mundane cuts into high-quality jeans that appeal to a person’s sense of style and aesthetics. The future challenge of Hudson Jeans is to continue to appeal to its main demographic (the teen) while reaching out to adults in search of a subtler, more down-to-earth style. With such a heterogeneous mixture of potential clients, the powers behind Hudson Jeans have their work cut out for them as they try to address each customer’s wishes with an open mind. 98 We will be offering classic styles and fits for both men and women along with trending style.
4. Naked and Famous: Naked & Famous uses rare and raw Japanese denim to create premium jeans, using the highest quality fabrics and manufacturing techniques.
99
Top brand in denim
brand highlights at Capsule Tradeshow in Las Vegas. The concept of N&F is to strip down the product and company to its best core essentials, so they can offer the consumer these unique fabrics (i.e. cashmere denim, silk denim, a slew of vintage produced selvedge denim, a super-heavy 21oz selvedge denim, etc.) for ridiculously low prices. N&F jeans start at $125 at Barneys.
100
Every pair of Naked &
Famous Denim jeans are proudly and ethically made in Canada. They benefit from high quality machinery, well-trained staff and quick reorder schedules.101 We will be offering men and women’s denim
98
http://e-articles.info/e/a/title/HUDSON-JEANS/
99
http://www.wgsn.com/content/report/Trade_Shows/Full_Report/2011/February/a_w_11_12_capsule_las_vegas.ht ml 100 http://definitivetouch.com/features/lifestyles-naked-famous-denim/ 101 http://www.nakedandfamousdenim.com/about-us.html
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5. Joe’s Jeans: Joe’s Jeans is as attractive an investment as it is a fashion statement. Attention to design detail and a need for customer satisfaction has remained important through the success of the business. Their sales grew 15.8% to $80.1 million and their operating income grew 48% to $8.1million for 2009. Their fourth-quarter sales increased 42% and their 4th quarter operating income increased 164% to just under $3 million. Their 2009 sales surpassed those of 2008. The Joe’s Jean consumer is one who needs a designer brand jean as a wardrobe staple. 102 Joe's products are designed internally and sourced to specification from suppliers primarily located in the U.S., Mexico and Morocco. Finished goods are then distributed directly to Joe's customers from its distribution center in Los Angeles. Joe's maintains third party showrooms in New York and Los Angeles to showcase its Joe's® and Joe's Jeans™ products for its customers. 103 Men and women’s premium denim in classic styles, variety of fits, and trending designs. Kid’s premium denim in available styles. Also sold; small selection of tops for both men and women.
102 103
http://seekingalpha.com/article/189713-why-we-bought-joe-s-jeans http://phx.corporate-ir.net/phoenix.zhtml?c=84356&p=irol-homeProfile&t=&id=&
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Piper’s Denim Product ChartBelow is a product chart separated by product, brand, products life cycle stage, and price range. Products are separated by women’s denim, men’s denim, women’s apparel, men’s apparel, and kids wear. Almost all of PD’s merchandise is in its growth stage, maturity stage, or in between the two. This is because denim is a staple item. Each brand we carry has classic fits that continue to stay in the maturity stage. They are products that are constantly accepted by consumers. A competitive feature that PD has is the ability to offer new designs and exclusive fits that department stores may not carry. Therefore while carrying merchandise in the maturity stage we can also advertise new products that are growing in the market place. This is a positive aspect for PD because we can attract innovative consumers as well as appeal to our loyal client base. Product Women’s Denim
Women’s Apparel Men’s Denim
Men’s Apparel Kids
Brand 7 for all Mankind, True Religion, Hudson, Naked and Famous, Joes Jeans 7 for all Mankind, True Religion 7 for all Mankind, True Religion, Hudson, Naked and Famous, Joes Jeans 7 for all Mankind, True Religion True Religion, Joes Jeans
Stage Growth-Maturity
Price Range Retail- $165-$300
Growth-Maturity
Retail- $75-$225
Growth-Maturity
Retail- $155-$320
Growth-Maturity
Retail- $75- $225
Growth
Retail- $49- $150
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Piper’s Denim PriceThe graphs below describe the price range and volume trends. At PD denim is our focal point. The graphs are separated by women’s premium denim, men’s premium denim, kid’s premium denim, and women and men’s apparel combined.
Women's Premium Denim Price Range 12 10
Unit Sales
8
Promotional
6
Volume
4
Prestige
2 0 $98
$165
$200
Price in Dollars
Based on the data above women's denim sells higher at regular retail prices. More women are willing to splurge on prestige denim rather than promotional items. PD denim will focus firstly and largely on regular retail priced items in classic styles and fits for women. Our second focus is prestige items and seasonal merchandise. Promotions and markdowns will be implemented into the cycle as scheduled.
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Piperâ&#x20AC;&#x2122;s Denim
Men's Premium Denim Price Range 12 10
Unit Sales
8 Promotional
6
Volume
4
Prestige
2
0 $75
$178
$320
Price in Dollars
Based on the data above men's denim sells higher at regular retail prices. Men are willing to buy larger amounts of denim at promotional prices rather than prestige. PD will continue to focus largely on regular retail items and classic styles for men's denim with seasonal markdowns and an exclusive selection of prestige items.
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Piperâ&#x20AC;&#x2122;s Denim
Kid's Premium Denim Price Range 12 10
Unit Sales
8 Promotional
6
Volume
4
Prestige
2 0 $49
$120
$150
Price in Dollars
Based on the data above parents are willing to spend more promotional and regular retail prices rather than prestige items. Pipers Denim will provide select styles of prestige denim for kids but focus more on retail valued items.
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Piperâ&#x20AC;&#x2122;s Denim
Men and Women's Apparel (Combined) Price Range 12
Unit Sales
10 8 Promotional
6
Volume
4
Prestige 2 0 $75
$130
$225
Price in Dollars
Based on the data above at regular retail and prestige apparel sells in higher volumes. PD will focus more on regular retail and prestige items for our customers. Our apparel selection is smaller than our denim selection so it is important that we have higher priced merchandise in this department to reach our sales goal.
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Piperâ&#x20AC;&#x2122;s Denim PlaceAll of our brands with the exception of one, Naked and Famous, are manufactured in the United States. Naked and Famous is native to Canada. All merchandise can be obtained and shipped via ground. At PD we find that it is important to have more than one vendor contact for each brand in case there is an emergency. Below lists each brands vendor, showrooms, locations, manufacturer, and transportation methods. Brand 7 for all Mankind 7 for all Mankind 7 for all Mankind True Religion
True Religion
Hudson
Hudson
Vendor Los Angeles Showroom 213-622-1043 Linde Lee Inc. 214-631-4499 New York Showroom 646-839-5400 Los Angeles Showroom 110 E 9th St. #541 Los Angeles, CA 90079 (tel) 213-683-0050 (fax) 213-683-0080 New York Showroom 599 Broadway 9th Floor New York, NY 10012 (tel) 212-966-7150 (fax) 212-966-7152 LA Showroom 127 East 9th Street # 412 Los Angeles, CA 90015 Tel: 213-995-5550 Fax: 213-995-5551 NY Showroom 231 West 39th Street # 401 New York, NY 10018 Tel: 212-871-6636 Fax: 212-8716639
Location Los Angeles, CA
Manufacturer USA
Transportation Ground
Texas
USA
Ground
New York, NY
USA
Ground
West Coast (U.S) Los Angeles, CA
USA
Ground
East Coast (U.S) New York, NY
USA
Ground
West Coast (US) Los Angeles, CA
USA
Ground
East Coast (US) New York, NY
USA
Ground
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Piperâ&#x20AC;&#x2122;s Denim Naked Famous
Joes Jeans Joes Jeans
and Attend Varies Tradeshows such as Capsule in Las Vegas to make Purchase Orders Showroom 903 Los Angeles, CA th 127 E 9 ST #903 Los Angeles, CA Joes Jeans INC. Commerce, CA 2340 South Eastern Av. Commerce, CA 90040 USA
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Canada
Ground
USA
Ground
USA
Ground
Piper’s Denim Promotional PlanAdvertising StrategyAt PD we really want to focus on positioning ourselves firmly in the local market. PD will use a variety of local mediums to advertise these include seattlefashions.com, seattlemag.com, Seattle Magazine, The Seattle Metropolitan Magazine, The D-List, and flyers. All mediums use different methods such as web page ads, blogs, and print. Advertisements such as this will capture the attention of shoppers and tourists alike. Seattle Magazine distributes their issues to 20 luxury hotels which will provide PD with direct linkage to affluent visitor markets. The magazine is also provided at the Sea Tac airport. The Seattle Metropolitan Magazine is sold at 900 newsstands, specialty grocery stores, local retailers, the Sea-Tac airport, and prominent hotels in the Downtown area. The D-list is a trendy Seattle magazine that is free and offered throughout the city and in shopping areas such as Pacific Place, downtown luxury mall. This will capture the attention of tourists and shoppers alike. Aside from magazines and websites content such as business cards, flyers, and other promotional material will be distributed to local Seattle businesses and events. PD is also purchasing keywords from Google that will allow our business to pop up on the search engine when key words related to our company are searched for. Direct Marketing Strategy and MeansThe direct marketing channel that PD will focus on is member only coupon sites. This will obtain our exclusive image while bringing customers in and building a clientele through special limited deals. Websites such as Groupon and Living Social provide its members with exclusive coupons and deals within a specific city. This would be a very successful for PD to build a client base and get our name out there. PD could easily build a client base by bringing customers in with deals such as “free tailoring with purchase” or “50% off entire purchase”. These deals would attract customers into the store allowing PD as a company to sell ourselves as their new go to place for denim. Public Relations Strategy and MeansPublicly PD wants to get involved with local business associations, local Seattle art, fashion, and music events. One idea in getting involved is to host a local fashion show within the Seattle fashion scene. PD would host this denim oriented event and allow local designers to showcase their designs. Proceeds from tickets would be donated a local charity of PD's choice. It is events like these and chances to give back to the community that will give PD a respectable image as a business.
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Personal Selling and Sales PromotionPD prides itself in customer service and personal client relationships. PD will take the necessary steps to train our employees on in store selling, phone etiquette, and PR for employees who represent PD outside of the store at events. PD will hire staff early enough to provide denim expert training. PD believes working as a team really helps businesses succeed and boost customer service 100%. Therefore PD will focus on and provide individual and team focus to ensure all employees are educated on the same level. At the end of each year PD hosts a meeting with all staff members conducting individual conferences and yearly recap as a whole. Having a knowledgeable staff that are comfortable with each other, and have achievable goals will provide PD with positive an energy, and asset to customer service. Internet Strategy and MeansPD has chosen to take a subtle approach when it comes to internet advertising. Some internet advertisements take away from the tasteful image a store is trying to signify. PD will have a store website and select local sites to advertise on. In order to maintain our image we will also purchase a space on critique sites such yelp.com to ensure a positive impression. PD will create a website. There will be two sections, one for the general public. This will provide a basic overview of the store. The second section will require our exclusive clients to log in. Our exclusive section allows clients to schedule styling appointments, tailoring appointments; invite only events, and the option to receive emails about exclusive promotions. PD will not be selling any merchandise online as we encourage our customer to come into the store. If our company and merchandise selection expand than an online site will be reconsidered. PD wants to uphold its premium image. To us this means not bombarding the internet with our pictures. PD has chosen select sites to advertise on that are geared towards Downtown Seattle and local shopping. Critique websites that allow the public to review their experience at a particular business are very popular and largely important to the stores image. Personal review holds a greater importance than a magazine quote. Therefore PD will be purchasing their pages from sites such as yelp.com. This will be successful to the store because sites like yelp.com does not filter and allows more negative comments on pages that are not owned by the company. Any negative feedback PD receives we want to evaluate as a team and strive to create a better experience.
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Piperâ&#x20AC;&#x2122;s Denim
Tactical Plan Gantt ChartsPD has strategically planned major tasks and steps to take One year prior and post opening. The importance of highlighting these details to ensure an organized start up and progression. Examination of these actions must take place to develop the company. Twelve Months Prior to Opening 09/2013
Sep
Oct
Nov
Dec
Plan Loan
Secure Location
Secure Business License
Hire Interior Designer/Begin Building
Electric and Plumbing
Hire Visual Team
Contact Vendors/Secure Merchandise
Start Advertising/Create Website
Hire/Train Employees
Soft Opening
Grand Opening
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Jan
Feb
Mar
April
June
July
Aug
Sep
Piper’s Denim
Below is a detailed list of PD’s tasks twelve months prior to the opening of the store.
Plan Loan: Obtain a small business loan through Wells Fargo following their lending steps. PD will obtain the 7A loan. Most small businesses are familiar with this loan. For example PD will pay back month to month payments over a period of time, such as 25 years.
Secure Location: We will secure our location on 6th Avenue, the Retail Core, by contacting an agent and moving forward with payment agreements and paperwork; terms.
Secure Business License: PD will go through the proper national, state, and city processes that will allow PD to acquire a business license and run within the city of Seattle.
Hire Interior Designer/Begin Building: Image is of major importance to PD and the shopping experience as a whole. Customer service is major, but without a comfortable environment, customers won’t receive the best service, and experience possible. Therefore PD is planning to hire an interior designer to help execute the planned vision for our store. Our hired interior designer will design a floor plan and will design and purchase furniture accordingly to our inspiration provided. We will provide a budget for the interior designer to purchase fixtures and all other items necessary.
Electric and Plumbing: PD wants to have electric and plumbing throughout the building taken care of 4 months before opening. This will allow us to prepare our store thoroughly. This will also be major so we can hire employees and train them in the store earlier to allow a denim expert staff.
Hire Visual Team: PD will hire a visual team in March and they will continue perfecting our floor plan until April. Our hired visual team will work with the fixtures purchased by PD and chosen by our interior designer. We are allowing two months for the design to ensure the best possible results.
Contact Vendors/Secure Merchandise: Throughout the prior year PD will have traveled to all the showrooms for our chosen denim brands. Throughout April and June we will finalize purchase orders and secure merchandise for the fall and early winter seasons.
Start Advertising/Design Website: PD wants to start advertising in April. We will start subtly and progress advertising mediums to broader markets as we get closer to our grand opening. At the same time we want to hire a web designer and start our website. As the PD site is under construction, we will provide a promotional advertisement provoking curiosity to those who stumble upon our site until it is open for review.
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Hire/Train Employees: PD has planned to start the employee hiring process in June and continue through August if necessary. We will start first by hiring managers and assistant managers and trickle down to sales associates, and fill our onsite tailoring position. The reason PD is starting the process so early is to ensure a fully trained sales staff that is comprehensively trained in every aspect of our company.
Soft Opening: During the third week of August PD will have a soft opening. The opening will be quiet and not advertised. This will allow us to see what kind of foot traffic clientele our store attracts on a daily bases. This will help PD understand what works for our store and what we need to change to ensure top business success.
Grand Opening: The grand opening will take place during the first weekend of September. The grand opening will be advertised throughout chosen mediums and special promotions and events for the day will be planned and performed accordingly.
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Piperâ&#x20AC;&#x2122;s Denim Twelve Months 09/2014
After
Opening
Sep
Oct
Nov
Dec
Afterschool Special
Loyalty Program
Begin Holiday Training
Black Friday
Spring Advertisements
Inventory
Denim Fashion Show
Store Maintenance
New Brand Introduction
Yearly Recap
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Jan
Feb
Mar
April
June
July
Aug
Sep
Piper’s Denim Below is a detailed list PD’s store plans the twelve months after the store opening.
Afterschool Special: Besides the grand opening event PD’s “Afterschool Special” will be one of our first promotional events. This event will take place in late September. The idea of this promotion is to offer a sale after the back to school rush. PD will provide a week of marked down denim for back to school or fall reasons, but at promotional prices. The end of September is when the weather starts getting colder and denim is no longer an option but a need. We feel this event will attract many students all the way through college level to invest in this year’s premium denim.
Loyalty Program: PD’s loyalty program begins on opening day. PD’s loyalty program is invite only with the exception of opening week where clients will be allowed to sign up voluntarily. The idea of PD’s loyalty program is to provide our most frequent and loyal shoppers with exclusive sales and invitation only events. The loyalty program will also allow members to build points that result in free gifts. Clients will have the option to have this information emailed to them, or to their profile on our website. Exclusive clients will receive a username and password to obtain this information on our member’s only section online.
Begin Holiday Training: Holiday training will begin will begin in October. Downtown Seattle is a large tourist attraction during the holidays and attracts an increased number of foot traffic and business to the downtown area. Therefore we want to make sure our staff is fully trained and prepared for the holiday rush.
Black Friday: Black Friday is a noteworthy date; PD will have all sales staff scheduled. Prior to Black Friday promotional advertisements and exclusive client sales will be endorsed. Staff will be trained and educated on all promotions.
Spring Advertisements: Spring indicates a change in style, color, and denim washes. Towards the end of winter in February PD will start advertising for the spring season, and slowly bring new merchandise in and push old merchandise out through selling and promotions.
Inventory: Before PD receives all of our spring merchandise it is important that we do an entire inventory check of the store. This will allow PD to have a precise understanding of sale trends and shrinkage. These are valuable in understanding popular purchasing trends in order to plan our merchandise selection accordingly. It is also important for PD to know their shrinkage. If shrinkage is high PD will have to take stronger steps and security in preventing shoplifting. All items in the store will already be censored with a working alarm prior to inventory check.
Denim Fashion Show: PD wants to position itself in Seattle’s fashion scene. Along with getting involved with Seattlefashions.com PD would like to host a sponsor a denim oriented fashion
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Piper’s Denim show to spread awareness about the store, and provide local and upcoming designers with a chance to showcase their designs.
Store Maintenance: During the summer months of July and August PD will conduct daily store maintenance to prepare for another year in business. This means updating the POS system, repainting walls, repairing broken fixtures, and a deep cleaning of the entire store to ensure all systems are running efficiently.
New Brand Introduction: The goal for PD is to grow and position ourselves as successful local retailer in Seattle. This also means expanding our brand selection. Right before September towards the end of August PD will introduce a new premium denim brand. PD will choose this selected brand based on trend reports and trade show exhibitions.
Yearly Recap: After the first year PD will conduct a staff meeting and individual conferences with each employee. We will discuss successes and downfalls of the business as a whole, and focus on individual profiles as well. PD wants everyone to be on the same page when it comes to company knowledge. We want to constructively criticize and improve as a denim family. No one will be left behind, therefore individual conferences discussing strengths and weaknesses will also be held during the yearly recap. Being on the same page as a team obliterates competition which is unhealthy in the work place and does not provide a genuine experience for the customer.
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Piper’s Denim Reach and Frequency Plans and Advertising BudgetBelow is a breakdown of estimated advertising costs PD will encounter monthly and annually. The chart below is to be read across and is broken down into the type of medium used, how many viewers it reaches, frequency of the ad, size of the ad, monthly cost, and yearly cost. At the bottom of monthly and yearly costs column is the total expenses for each category. Medium Store Website
Reach 15,000+
Frequency Ongoing
Exclusive Member e-mails Yelp.com Seattlefashions.com Seattlemag.com Seattle Magazine The Seattle Metropolitan Magazine D-List Magazine Google.com Flyers
15,000+
Ongoing
Size/Duration Monthly Yearly Webpage No monthly $560 fee Webpage N/A N/A
1 Million + 50,000+ 124,000 124,000 219,472
Ongoing Ongoing Seasonal Seasonal 4 times a year
Webpage Video Side Ad 1 pg 1/4th pg
$300 Free $500 $1000 $600
$3,600 Free $3,000 $4,000 $2,400
300,000 4 Million + 100+
4 times a year Ongoing 8 times a year
1 pg Webpage 7” by 5”
$600 $90 $100 T=$3,190
$2,400 $1,080 $1,600 T=$18,640
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Piper’s Denim Pricing PlanPricing Strategy and Objective1. Use a premium pricing strategy with generous advantages to loyal clients in order to achieve customer satisfaction and to match competitor prices.
PD offer’s premium denim brands only, clients expect a higher price point when dealing with these brands.
The price of PD’s merchandise is already positioned in the market place and matches our competitors.
PD will off exclusive customer benefits to frequent shoppers willing to pay often for our quality brands.
Together our premium priced denim, quality merchandise, and customer benefits will be an effective pricing strategy that works well with this business model.
2. Utilize line pricing to increase the stores sales volume and increase the number of registered transactions per day.
PD’s turnover is highest when merchandise is priced at regular retail price.
The majority of PD’s merchandise is always priced at regular retail with little markdowns.
By carrying a large selection of classic items from each brand PD can rely on this category to sell more frequently, and in more units.
By utilizing line pricing to increase the stores sales volume and registered transactions per day will be an effective pricing strategy that works well with our business volume.
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Piper’s Denim Markup, Markdown, Sales PlanThe chart below describes PD markup and markdown plans according to sales and season. PD carries high priced items so markdowns are minimal. The categories are separated by denim, apparel, and kid’s denim. Black Friday will be are largest sale of the year and has the highest number of markdowns. Fall and winter has the lowest markdown percentages because merchandise from this season is needed for Seattle’s climate year round. Product Category
MU% Retail
MD% Black Friday
Denim Men & Women’s Apparel Men & Women’s
500%
15%
MD% Spring/Summer Clearance 10%
500%
20%
15%
Kids Denim
100%
20%
15%
MD% Fall/Winter Clearance 5-10% (depending on style) 10-15% (depending on style) 15%
Stock TurnoverWe will be measuring out STR according to this formula: Inventory Turnover Ratio= Net Sales/ Average Inventory at Selling Price For example, if our ITR is $100,000, our opening stock is 10,000, and our closing stock is 20,000 then we would find the average of our opening and closing stock and apply the number to our ITR formula. In this case the average is 15,000. Inventory Turnover Ratio= 100,000/15,000=6.6 Based on the provided example the average 1 dollar invested in stock will turn into 7 times in sales.
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Piperâ&#x20AC;&#x2122;s Denim Terms of PaymentVendor Contacts Brand 7 for all Mankind 7 for all Mankind 7 for all Mankind True Religion
True Religion
Hudson
Hudson
Naked and Famous
Joes Jeans Joes Jeans
Vendor Los Angeles Showroom 213-622-1043 Linde Lee Inc. 214-631-4499 New York Showroom 646-839-5400 Los Angeles Showroom 110 E 9th St. #541 Los Angeles, CA 90079 (tel) 213-683-0050 (fax) 213-683-0080 New York Showroom 599 Broadway 9th Floor New York, NY 10012 (tel) 212-966-7150 (fax) 212-966-7152 LA Showroom 127 East 9th Street # 412 Los Angeles, CA 90015 Tel: 213-995-5550 Fax: 213-995-5551 NY Showroom 231 West 39th Street # 401 New York, NY 10018 Tel: 212-871-6636 Fax: 212-871-6639 Attend Tradeshows such as Capsule in Las Vegas to make Purchase Orders Showroom 903 127 E 9th ST #903 Los Angeles, CA Joes Jeans INC. 2340 South Eastern Av. Commerce, CA 90040 USA
Location Los Angeles, CA
Manufacturer USA
Transportation Ground
Texas
USA
Ground
New York, NY
USA
Ground
West Coast (U.S) Los Angeles, CA
USA
Ground
East Coast (U.S) New York, NY
USA
Ground
West Coast (US) Los Angeles, CA
USA
Ground
East Coast (US) New York, NY
USA
Ground
Varies
Canada
Ground
Los Angeles, CA
USA
Ground
Commerce, CA
USA
Ground
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Piper’s Denim PD understands the importance of maintaining a good relationship between buyer and vendor. We understand that this can only be achieved through being a punctual, truthful, and loyal customer. PD will pay all vendor bills on time. To ensure good pay we intend to pay within ten days of receiving the merchandise unless otherwise noted in the agreement. PD promises to not push the limits of these circumstances and will always be the first to initiate the payment, in other words PD will not wait for the vendor to request payment. As a business it is important to obtain good credit and remain current on all vendor relations incase background checks are initiated. PD will pay close attention to the individual requirements of each vendor. It is important that we are truthful about time limits. If PD feels that we must negotiate pay may inquire about lifting vendor discounts to extend payment terms, or postponing a shipments, leaving the vendor with collateral, to create trust. Creating a foundation for long and reliable vendor relations creates room for price negotiation in the future. Distribution PlanOff-Site SalesStarting out PD has chosen not to offer online sales. Our website gives information about our store, and exclusive members have a user name and password that provides them with special codes and promotions. PD has chosen to utilize over the phone sales, coupon codes, and annual promotions, and selective promotions for exclusive clients. Utilizing these methods of off-site sales will help increase business.
Phone Sales: PD will allow customers to make purchases over the phone and have items shipped to them if they are not able to come in. This service will mostly be used for returns, and exclusive clients that have been offered select promotions. PD will have special training for phone etiquette to positively represent our company over the phone, and provide outstanding customer service.
Coupon Codes: PD will be working with sites such as Groupon or Living Social that offer special promotions for out store. These sites will provide users with a special code pertaining to the promotion. PD will also provide select coupon codes to frequent shoppers (exclusive clients).
Annual Promotions: PD will offer annual sales such as our after school special, black Friday, and seasonal markdowns. Information will be distributed to the public off site.
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Piper’s Denim
Selective Promotions: PD will also host invite only events for our exclusive clients, and provide them with special promotions that are not offered to the general public as a whole. Information will be distributed off site.
Forms of PaymentCash Travelers Checks Visa MasterCard
Piper’s Denim Accepted Forms of Payment No fees, all income goes towards business No charge or contract from American express. Guaranteed payment from American express. Simple deposit into bank account. Nearly 1 in every 3 consumer purchases in the United States is made with a payment card— including credit, debit, and prepaid products. 104 MasterCard is widely accepted at used at most businesses.
Means of Shipping and Pricing ChartFor shipping orders PD will ship via ground with UPS. “UPS Supplier Management services provide the management and tools to help you manage the critical front end of your supply chain to ensure that you receive precisely the merchandise needed from your suppliers. You get access to vital order, item, and vendor fulfillment in formation right down to the SKU level before the order is scheduled to ship. With it you can prevent stock outs, shortages, delivery delays, and the need to hold higher levels of inventory to avoid these situations.”105 *Extra shipping fees are required from clients for all purchases made over the phone. 1 lb 4 lb 76lb 116lb
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Price Chart Based on Weight $7.47-$37.00 $17.97-$151.92 $30.17-$254.76 $71.85-$369.82
http://usa.visa.com/merchants/new_acceptance/benefits/index.html#anchor_5
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http://www.ups.com/bussol?loc=en_US&viewID=metaCategoryView&contentID=ct1_solg_met_industry&WT.svl=P NRO_L1
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Piperâ&#x20AC;&#x2122;s Denim Operations PlanPlanning and ForecastingPiperâ&#x20AC;&#x2122;s Denim recognizes that proper forecasting and planning requires proper financial planning as a foundation. Therefore PD will be working in collaboration with boutique financial. A charted accounting firm. Working with BF allows PD and business owner Caitlin Scully to ensure smooth store operations are done legally and correctly. Using this service will benefit PD most as it is a sole propietership. Services and software will be used in the areas of taxes, accounting, legality issues, and budgeting and forecasting, and small business guidance. BF will assist in the future needs of PD if not already listed. Below is an illustrated list from Boutique Financial displaying programs and key components of each that PD will utilize. .
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Piper’s Denim Utilizing these resources for the business of PD ensure that it has a sturdy foundation to obtain funding for other aspects of planning and forecasting such as:
Trend reports and agency memberships
Trade show, showroom, fashion show, trunk show funding for said events
Accurate market research and funds to hire reliable and trustworthy assistance At PD our merchandise reflects current trends in denim fashion. PD works 12 or more months
in advance working with a variety of mediums. Up and coming trends in denim, technology, and brands are all analyzed as well as focusing on seasonal and climate needs. PD will work in collaboration with the appropriate market research geared towards our client ensuring a profitable inventory. It is important to understand up and coming trends for merchandise through trend forecasting, reports, attending tradeshows, and group memberships that collaborate to offer current information. PD will use vendors, which can be found on page 108, in correspondence with our planning and forecasting methods. All of our brands with the exception of one, Naked and Famous, are manufactured in the United States. Naked and Famous is native to Canada. All merchandise can be obtained and shipped via ground. At PD we find that it is important to have more than one vendor contact for each brand in case there is an emergency. Inventory ControlPD will conduct quarterly hand counts of inventory. The process will be completed by a manager and assistant manager after business hours. Data results from quarterly hand counts will then be compared to the POS system stock on hand numbers for final results. Quality ControlPD will use an external company twice a year in January and July for inventory counts. PD will be using American Inventory. An inventory service conveniently located on 4th avenue in Downtown Seattle near Piper’s Denim. Services used by American Inventory are listed below.
SKU (barcoded or not) Inventories (data collection includes SKU, Price if desired, Qty, location and category).
Reports; a variety of report formats are offered. Reporting can be done on hard copy, electronically, or a combination of the two.
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Piper’s Denim Human ResourcesPD is a sole Proprietorship and is owned and operated by a single manager. The store manager deems the necessary requirements for hire in areas involving:
Hiring employees
Training employees
Developing innovative aptitudes
Staff recruiting
Planning and workforce analysis
Hiring and Training ProcessesAssistant Manager
Sales Leads
AA or BS in fashion marketing, merchandising, management, design etc. OR 5+years of retail experience 2 + years of retail management in a boutique setting Resume and references highlighting work experience Interest in premium denim and fashion trends Ability to confidently manage a team
Hiring Qualifications Sales Associates
AA in fashion marketing, merchandising, management, design etc. OR 2 + years of retail experience in a boutique setting Resume and references highlighting work experience Interest in fashion and trending Comfortable with leadership
1+ years of retail experience, preferably in a boutique setting College students are encouraged to apply for part time positions Interest in fashion Keeping up with current trends and styles Outgoing personality with a desire to learn
Seamstress
A degree in fashion or a trade school certificate is highly recommended but not required Attention to detail Organized Accounting knowledge to keep up with personal clientele books Visionary Attention to detail Reliability, orders get done in a timely fashion People skills to build customer relations
ProcedureTo be considered for employment at Piper’s Denim the following procedures must be completed.
Meets the appropriate qualifications of the position being applied for
(Number of years) experience based on position
Filled out application along with resume
2 to 3 part interview process depending on position
New hire paperwork
Training program corresponding with position
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Piperâ&#x20AC;&#x2122;s Denim Introductory PeriodThe first 90 days of continuous employment at PD will allow employees to learn job duties, familiarize themselves with merchandise, product knowledge, sales techniques, and become acquainted with managers and fellow team members. During the time all employees regardless of title are required to perform satisfactory. TrainingAfter being hired on and filling out the appropriate new hire paper work, future PD sales associates will participate in a three day on-the-job training process. Training is to be conducted by manager or assistant manager unless otherwise authorized. Considerable time and expense are spent on educating our new employees to effectively prepare each individual for their position. Employees hired on as sales leads will participate in a four day training process. The first three days will be the same for all employees. Training higher up employees such as sales lead or assistant manager will be similar to the three day process, but a fourth day will be added on for education regarding individual job specific duties. The training process should consist of educating employees on the following each specific day. Lessons and tasks vary based on position.
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Piperâ&#x20AC;&#x2122;s Denim General Training Program OutlineEach employee at PD obtains different ways of learning. PD takes the main principles/focal points of our basic training program and combines them with each new hires individual personality and learning methods. The smaller size of PD allows focus on creating a closer nit team of denim experts. This approach creates a relaxing atmosphere for customers and employees. Our staff is our most valuable asset and represent PDâ&#x20AC;&#x2122;s image. It is important each one feels comfortable and confident. Therefore our training program includes instilling the basics of store operations, sales techniques, and all other significant jobs and tasks individual to PD. By combining this with hands on experience our employees will be able to engage in lessons. PD requires 3, 8 hour shift days of training in which the employee will start out with store basics such as familiarizing themselves with the layout, merchandise, rules, and POS system. The second training day consists of job shadowing either a manger or assistant manager. On this day selling techniques and building client relationships will be the focus. The final 8 hour shift provides potential PD employees with the opportunity to try it on their own. We call this the audition day. Management will be by at all times for questions and suggestions. The next page provides a general outline of how training days are conducted and what areas need to be focused on.
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Piper’s Denim General Training Program Outline Day 1: Learning the store
Receive handbook, familiarize self with PD standards and policies.
Learn floor layout.
Learn POS system, this includes clocking on and off, practicing transactions such as purchases and exchanges.
Learn opening and closing duties.
Studying and getting to know the merchandise.
Day 2: Understanding your customer, merchandise, and selling techniques
Lesson on product knowledge, features and benefits.
Lesson on company history, facts to discuss during the selling process/building customer relationships.
Learn and practice selling techniques.
Practice learned techniques on customers.
Day 3: Audition Day
End of job shadowing.
Review of learned information through observation on-the job interaction such as selling, product knowledge, customer information, and employee duties performed throughout the work day.
Time for questions and suggestions before final training day.
Day 4: For sales lead or assistant manager position, individual training and education will vary between each position and will be conducted by the Manager as seen fit.
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Piper’s Denim Employees at Piper’s Denim are classified as full-time nonexempt, part-time nonexempt, or exempt. PaydaysAt PD are on Friday of every other week for work performed during the previous two-week pay period. If a scheduled pay day falls on a weekend or holiday, employees will be paid on the preceding workday. PaychecksPD employees have the option to pick up their paychecks at the store or have it deposited directly into their checking account. Paychecks will be available for pick up between 12:00 P M and 5:00 P M on payday. Each paycheck indicates earnings as well as state and federal deductions authorized by the employee. RecordsAll records and files maintained by PD are confidential and remain the property of the Company. Records and files are not to be disclosed to any outside party without permission of owner. Confidential information includes but is not limited to financial records, payroll records, information regarding customer transactions, customer account information, information regarding customers, vendors, suppliers, or any documents regarding Piper’s Denim company operations, procedures, and practices. Confidential information may not be removed from store premises without authorization. Employee BenefitsVacation PayPD employees are entitled to vacation pay after one full year of employment. Eligibility requirements include working a minimum of 20 hours a week or at least 960 hours annually. Vacation pay is for each team member’s hourly wage only and excludes commission. Prorated vacation pay is not available for partial years of service. Vacation pay benefit accrues at the rate of:
1 week of vacation pay after year 1
2 weeks of vacation pay after years 2,3, and 4
3 weeks of vacation pay after years 5,6,7,8, and 9
4 weeks of vacation pay after or plus year 10
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Piper’s Denim Medical, Dental, Vision, and Life InsuranceEmployees in sales leads or management positions are eligible to participate in PD’s medical, dental, vision, and life insurance plans after 90 days of service. An average of 20 hours per week or 960 hours annually is to be maintained to remain qualified.
PD pays $80.00 per month towards medical insurance.
Upon enrollment employees are automatically signed up for $25,000 of life insurance.
For dental coverage the entire premium is the employee’s responsibility.
Medical or dental premiums are the responsibility of the employee and will be deducted from the member’s paycheck on a bi-weekly basis.
DiscountsNew hires will receive a one -time 70% off discount when purchasing an entire outfit from PD. An outfit includes:
1 pair of regular priced denim jeans.
1 coordinating top.
1 matching accessory.
All other occasions entitle employees to a 40% discount on full priced merchandise, and a 20% discount on all sale items. TerminationVoluntaryA two week written notice is required if an employee chooses to leave Piper’s Denim. This allows time for necessary adjustments in the stores operation. Any property belonging to Piper’s Denim must be returned at this time. InvoluntaryCertain situations may call for termination of the employment relationship. As an at-will employer, Piper’s Denim reserves the right to end the employment relationship at any time, with or without cause or notice. In the event that employment is terminated any property belonging to Piper’s Denim must be returned at this time.
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Piper’s Denim Facilities MaintenanceOpening Procedures
Clock on through the POS system 1 hour prior to opening
Turn the lights on
Count the till
Fix store and merchandise, prepare for day
Follow any directions laid out on morning notes
Unlock doors at opening
Complete weekly cleaning tasks
Closing Procedures
Lock doors
Count till, print out paperwork, place cash and deposit (if any) in the safe
Vacuum, tidy up store
Complete assigned chore for specific day
Take garbage out
Make notes for opener
Clock out on the POS system after closing procedures are finished
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Piper’s Denim EquipmentComplete Point-Of-Sale System - Includes full setup support via phone - HP RP3000 Point of Sale System - 3 Year HP Warranty - Ruggedly designed for retail - Easy to install 106
SecurityRCB uses Sonitrol an external security company locally based in Washington State. Services provided are:
Access control system
Intrusion detection system
Sonitrol pacific security cameras and monitoring for both the entrance and exit of the store
Sonitrol pacific fire monitoring
JanitorialPD will work with a third party, Noble Janitorial Services, located in Seattle. Cleaning of the floors, windows, restrooms et cetera will be completed on a bi weekly basis and in conjunction with employee chores done during closing. PD will also take advantage of Noble’s Janitorial supplies replenishment program, allowing them to provide and stock PD with such items. A clean store will help enhance the customers shopping experience.
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http://www.cashierlive.com/hardware
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Piper’s Denim Customer ServiceComplaintsAll complaints that cannot be solved based on store policies or due to an employee’s position must then be communicated to management ASAP. From there all problems will be addressed and resolved based on the individual complaint. If management is not available sales associates must politely take a message or give the client the manager’s business card. It should be respectfully explained that although they do not have the authority to help any further, management does. Sales associates should explain that someone will be available for help ASAP.
Sample Care Instructions
A standard disclaimer will be attached to each garment. This will notify each customer about specific instructions that come directly from the manufacturer.
ReturnsRefunds in the same currency used for the original purchase must be returned within the first 15 days. Otherwise store credit will then be offered after the first 15 days, and will be available up to 90 days after the initial purchase. Tags must be attached and a receipt must be present. If tags are attached and there is no receipt customer store credit may be offered. All clearance and children items are final sale. Returns can be tracked through our computer system. Gift receipts will be handed out to increase customer satisfaction. Piper’s Denim return policy will be stated on the receipt and enforced during the POS.
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Piperâ&#x20AC;&#x2122;s Denim Referrals1. Business: Piperâ&#x20AC;&#x2122;s Denim is a large supporter of local businesses and friendly competition. PD will choose which businesses to communicate with and personally decide, or work together with another retailer when providing customers with referrals. Referrals should only be suggested if PD does not have the exact merchandise on stock or ready to be easily ordered. Referrals are also permitted when shoppers are looking for different types or styles of merchandise that PD offers. 2. Employee: PD loves publicity and advertising word of mouth and encourages employees to promote the business while off the clock; however there will be no discounts aloud for employee referrals, spouse, or family. Items may be purchased as a gift solely by an employee without the company of the recipient.
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