Amador Hermosilllo Introduction to Marketing the Arts/Fashion Spring 2010
Untitled Marketing Plan
Table of Contents Company Overview……….……………………………………………….2 Situation Analysis…………………………………………………………..4 SWOT Analysis………………………………………………………….4 Competitive Analysis………………………………………………..…5 Customer Analysis………..……………………………………………..5 Marketing Program…………………………………………………..…….7 Budget & Implementation……………..……………………………….11 Evaluation Criteria………………………………………………………..12 Conclusion……………………………………………………………….….13
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Company Overview What It Is
Untitled is a specialty boutique offering an eclectic selection of apparel goods. In 1990, the first Untitled shop was opened by cofounders Luke and Candise Cho who had ambitions of bringing something fresh to Chicago. Currently there are three Untitled shops, the first in Lincoln Park, second in Wicker Park and third in Schaumburg’s Woodfield Mall. The shops fuse fashion, music, art, and street culture; often times featuring DJ sets and transforming the stores into art galleries. Throughout the years, Untitled has been involved in various community events, fashion shows, music shows and fundraisers. The Untitled shops offer a unique collection of products and bring the newest and freshest looks to their customers. The Present
By highlighting the latest trends and staying true to their roots, Untitled continues to offer the latest styles, hard to find limited edition pieces and sponsor innovative designers. Many successful and widely recognized brands have launched their first season and marketing campaign at Untitled. The shops have expanded their space to house a Shoe Gallery and Denim Loft. Some of the brands Untitled carries are 7 For All Mankind, Diesel, True Religion Jeans, Nudie Jeans, Incase, Obey, RVCA, Freed Perry, Cheap Monday, Stussy and more. Untitled carries women’s and men’s clothing, footwear and accessories. Mission Statement
To highlight and offer fashion’s latest styles and trends with a focus on quality. To celebrate and support music, art and street culture. Company Goals
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For the coming years Untitled seeks to achieve the following goals:
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To be immediately recognized as the premiere shopping destination for fashionistas and trendsetters alike
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Establish a strong online presence
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Begin an aggressive advertising and promotional program
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Introduce a new line
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Strategic Business Unites
The Untitled shops do not have Strategic Business Units. The company’s three stores operate in a similar manner and are managed the same. The store’s differences are the amount of merchandise and staff needed to operate. Management Structure
The Untitled shops are managed by the cofounders, Luke and Candise Cho. Two assistant managers help supervise and lead the staff. And a team of eight sales staff work the floor, registers and handle customer queries. Company Culture
The environment at Untitled is relaxed and laid back. The small team of employees builds a strong support system and everyone is happy to help out. The company culture is one of a family working together, loving what they do, having a passion for the industry and are able to give input in store decisions. Customer Profile
Geographic - Chicagoland - Urban, North Suburbs Demographic - Age: 21-32 - Sex: Female & Male - Family: None, single - Income: 18,000+ - Education: Student, bachelors degree - Occupation: Creative industries, i.e. music, fashion, film, art - Religion: None - Ethnic Background: Caucasian, Asian, African American, European, Latin Psychographic - Social Class: Middle - Personality: Extrovert, energetic, fun, full of life, outgoing - Lifestyle: Active lifestyle, enjoys activities such as going to dinner, getting drinks, dancing, hanging out with friends, traveling, dating, buying stuff
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Situation Analysis
This situation analysis starts with a snapshot of the current environment in which Untitled
finds itself by providing a brief SWOT (strengths, weaknesses, opportunities, threats) analysis. After this overview, the analysis probes even-finer levels of detail: competitors and customers. SWOT Analysis
This SWOT analysis shows the internal and external factors affecting the market opportunities for Untitled. Internal Factors Customer Product Mix
Pricing Strategies
Strengths Products are highly attractive to customer Excellent acceptance of lines Fashionable, trendy items Quality Ability to markup items
Promotion
Host in-‐store events Sponsor other events
Distribution
Three points of distribution Ability to create a unique store environment
Employees / Management Structure Experienced management team Small number of employees is easier to manage Knowledgeable about products External Factors Opportunity Competition The market is there, Untitled needs to tap into it.
Economics
Technology
Social
Customers seeking quality over quantity Limited amount of money = innovate ways to stretch financials Small computer system is easier to maintain No need to hire IT professionals
Indie customer is growing and so is the interest in music, art and fashion
Weaknesses Indie customer is limited to disposable income Higher price points Some brands are not known Limited amount of markdowns and sales Bigger competitors can offer wider and bigger promotions Marketing isn’t as strong as it should be Limited to three points of distribution Chain stores have a higher number of stores Limited to skills and abilities of small staff Small staff have habit of forming arguments and disagreements Threats Not very well known throughout the city Competitors have more stores and better known Competitors are able to invest and take risks on business decisions Competitors have more resources and assets Competitors have sophisticated systems of inventory and accounting No complete website Competitors offer online shopping Due to bad economy customers can’t afford higher price points
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In the Company’s favor internally are its strengths of an experience management team, knowledgeable staff, excellent acceptance of lines, unique store environment and promotional events. Favorable external factors (opportunities) include a strong target market with a high interest in fashion, music and art, and with the economy down customers are seeking quality over quantity. Among unfavorable factors, the main weakness is the higher price points and only three points of distribution. Competitors offer cheaper apparel and have more points of distribution. The main threat is Untitled is not well known throughout the city. Competitive Analysis
Specialty boutiques in Chicago continue to emerge and grow. While some make it and gain success for many years to come, others dwindle and fail in their first few years. At this moment Untitled has much competition, not only in the neighborhoods the Untitled shops are located but throughout all of Chicagoland. One of the biggest competitors is Akira, a specialty boutique in Chicago. Akira first opened in 2002 as a single women’s clothing store in Chicago’s Wicker Park neighborhood. Today, Akira has expanded to six stores and an online shopping website. Akira offers wellknown labels and Akira’s own line of women’s and men’s clothing, footwear, and accessories. Akira is well known for their fashion shows and parties. Akira’s success does not come from the quality of their clothing, but from the affordable prices and aggressive marketing strategy. Other various competitors include Urban Outfitters and H&M. Urban Outfitters has many stores throughout the country and caters to the same indie customer at a cheaper price. H&M is a fast fashion giant with locations throughout the world offering trendy apparel at a budget price point. The main difference between Untitled and these listed competitors is marketing. While Untitled’s product selection is of better quality, its competitors have an aggressive marketing strategy aimed at getting their name known and customers in the stores. Many of these competitors have been around for quite some time and are well known, while it may take some time for Untitled to reach these greats, it is certainly possible.
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Customer Analysis
Untitled’s customers represent a broad range of socioeconomic backgrounds. The
products are purchased chiefly by consumers who have achieved higher levels of education and whose income is higher than average. These customers are not on a budget and seek quality apparel that is trendy and fashionable. Untitled’s other customers are individuals with limited extra cash, have strong interests in fashion, are quality conscious and save up to buy one or two pieces. In addition, Untitled’s customers shop at Untitled because of the store’s relaxed and comfortable environment and connection with the music, art and street culture the shops represent.
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Marketing Program While there are many things Untitled had done right, there are also many improvements that could be made in order to make the shops more successful. These improvements include establishing a strong online presence, introducing a lower priced product line, and implementing an aggressive advertising and promotional program. Online Presence
-‐ Objective One of the largest aspects Untitled needs to work on is their online presence. Their current online standing is vague, outdated, amateurish, and does not give a clear representation of the products, the customer and store environment. Currently, Untitled has a website, a blog, social networking sites (Facebook, Twitter and Myspace), and sends emails blasts. All of their sites fail and do the opposite of attracting customers and promoting the store. The first objective is establishing a strong online presence. The World Wide Web is one of the best marketing avenues while being cost effective. Today’s modern world is constantly online and technologically advanced. Information is plentiful and to the minute with people constantly on their iPhones and Blackberries. There are hundreds of fashion blogs, online retail stores, and social networking sites. -‐ Strategy Launching an innovative website, preparing an interesting blog, revamping email blasts, and maintaining social networking sites (Facebook, Twitter and MySpace). -‐ Tactics •
Hiring a website designer to develop and launch an innovative website that gives a proper depiction of Untitled through art, music, design and graphics. The website will be user friendly, fashion forward and simple. A section of the website will focus on label profiles so visitors can become acquainted the labels and designers carried in the store. The website will not include online shopping but rather used as an advertising venue, promote designers, events and the store.
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Preparing an interesting blog to be updated with postings weekly. Outline of the blog will be simple to give focus on the postings. The postings will focus on art, music and fashion.
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The emails will offer discounts, promote sales, events and new products. The look and feel of the emails will also evoke the store environment with artsy graphics and attractive pictures.
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The social networking sites will be updated regularly to promote the blog postings, events, sales, new products, designers, art and music.
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Maintenance of website will be handled by website designer while maintenance of the blog, emails and social networking sites will be handled by the Untitled managers and staff.
New Product Line
-‐ Objective Untitled will greatly benefit from a new product line that’s at a lower price point. The shops house a denim loft with designer jeans such as Diesel and True Religion, but unfortunately these jeans have high price points and are not affordable to customers. With the economy as it is customers are not looking to spend $200 on a pair of jeans. Introducing a line of jeans that is well known and at a lower price point will certainly generate sales. -‐ Strategy Introducing Levi’s Premium line that retails under $100. With the economy down Levi’s have gained popularity as being a quality jean at an affordable price. The Levi’s Premium line will blend perfectly with the other designer jeans in the denim loft. -‐ Tactics •
Buying the product
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Introducing the jeans in the denim lofts
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Advertising and promoting Levi’s Premium line (website, blog, Facebook, Twitter, MySpace and emails)
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Advertising Program
-‐ Objective Start an advertising program. Untitled does not have an advertising program and implementing one will give the shops exposure. -‐ Strategy
Design, develop and begin an advertising program. The advertisements are aimed for the
customer’s lifestyle, conveying the store environment and targeting where the customer is likely to be. -‐ Tactics •
Hire a graphic designer to design advertisements
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Advertisements to convey store environment and aesthetic
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CTA advertising on train and bus routs near the Untitled shops §
Red Line
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Brown Line
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Blue line
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Bus 56 – Milwaukee Ave.
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Bus 72 – North Ave.
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Bus 22 – Clark St.
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Bus 36 – Broadway Ave.
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CTA advertisements three a year (Spring & Fall)
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Advertising in newspapers (seasonally and major holidays)
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The Red Eye
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The Columbia Chronicle
Hand out flyer on local restaurants and businesses
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Promotional Program
-‐ Objective Develop and implement a promotional program. Currently Untitled does not have promotional activities to get customers in the store. -‐ Strategy
Offer promotions
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Offer 10% to students with valid photo ID
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Offer e-mail coupons seasonally (4 times a year)
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Hold a contest for design students to design advertisements and graphics for website and store. Winner receives $300 cash and $200 store credit. Flyers in design and art schools such as Columbia, Chicago Art Institute, and Illinois Institute of Art (Chicago & Schaumburg).
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Sponsor events at music venues
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Showcase artists work in stores and celebrate with an event
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Offering free music downloads
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Budget & Implementation Budget
The budget for this marketing plan will be 20% of 2010’s total revenue. 9% will go towards the advertising program, as it will be the most expensive. 5% will go towards the promotional programs. 4% will go to the online presence, mostly the website. And 3% will go to the new product line.
Implementation
The marketing plan will begin in January 2011. The second half of 2010 will focus on developing the website and initial advertisements. The anticipated rollout schedule for the marketing objectives appears below: Rollout Schedule for 2011 January -‐ Launch website and blog, update social networking sites. -‐ Email in-‐store coupons -‐ Host an event at a music venue to celebrate new website May -‐ Offer free music downloads
February -‐ Announce student discount on website, blog, email and social networking sites
March -‐ CTA advertisements -‐ Red Eye advertisements for one week
April -‐ Announce new Levi’s Premium line -‐ Host an event from new product line
June -‐ Email coupons
July -‐ Sponsor an event at a music venue
August -‐ CTA advertisements -‐ Red Eye advertisements for one week
September -‐ Email coupons -‐ Start student design contest
October -‐ Showcase a local artists work
November -‐ CTA advertisements -‐ Red Eye advertisements for one week -‐ Email coupons
December -‐ End student design contest -‐ Host an event to the design contest
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Evaluation Criteria There are a number of ways in which one could judge the success of the Untitled shops. The evaluation will start at the beginning of 2012. The first and most obvious would be retail sales. Increase in sales in 2011 from 2010 means that more customers know about the stores and are buying products. The amount of store traffic, website traffic, blog comments, Twitter followers and Facebook and Myspace friends is also an indicator of consumer awareness. The amount of sales coupons being used indicates customers are viewing their emails. Finally, an increase in attendees at the events indicates customers are interested in the events and follow what Untitled is doing. Depending on the success of the marketing program Untitled can decide to continue or modify the marketing program for 2012.
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Conclusion The Untitled shops have the potential to reach great heights. With a few changes Untitled can gain the publicity that larger boutiques have. An aggressive advertising and promotional program combined with an innovative online presence will surely increase sales for the shops. And certainly the new Levi’s Premium line will be well received the Untitled’s customers. The success of this marketing plan can open new doors for Untitled in new neighborhoods. Untitled mill be immediately recognized as the premiere shopping destination for fashionistas and trendsetters alike Lincoln Park: 2707 N. Clark St. Wicker Park: 1543 N. Milwaukee Ave. Schaumburg: Woodfield Mall
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