Mission statement Our mission is to embody luxury in the most opulent, irresistible way possible, making each and every shopping experience unforgettable for every style-savvy woman who walks through the door. Offering the epitome of luxury goods is not an option; we make it into a necessity. We believe in the upmost level of customer service, making sure every shopping excursion is an upbeat, unforgettable experience, in an effort to make lasting, positive relationships with each and every single one of our customers. When the world thinks of a destination for luxury accessories, they think of us.
LAIRD BORELLI, SENIOR FEATURES EDITOR, STYLE.COM
ACCESSORY TREND REPORT FALL 2009
COMPANY VALUES Our company thrives on a positive environment, focusing on the areas of providing unrivalled customer service, benefits and an optimistic environment to work within for our employees, and providing the world’s finest luxury goods to our consumer. We make it a necessity to continually work to our greatest potential, making ourselves an industry leader in luxury accessories.
STYLETIP Take inspiration from Christophe Decarnin’s Fall 2009 collection and pick up one of Balmain’s new effortlessly sleek, exquisitely detailed bags for any rocker chic wardrobe
ACCESSORY TREND REPORT FALL 2009
Made with Italian leather, the Mat was handcrafted by Balmain handbag experts in France The Punk bag was made with 1,200 individual studs and takes one day to make each piece
Inspired by a leopard-print Motif, the Leo is handcrafted with Swarovski Strass crystals
CUSTOMERPROFILE GEOGRAPHICSEGMENTATION: REGION: TORONTO, CANADA CITY SIZE: 2.5 MILLION URBAN/RURAL: PRIMARILY URBAN CLIMATE: MODERATE DEMOGRAPHICSEGMENTATION: AGE: 22-45 SEX: FEMALE FAMILY LIFE CYCLE: PRIMARILY INDEPENDENTLY, SINGLE WEALTHY WOMEN INCOME: $100,000+ EDUCATION: COLLEGE GRADUATE OCCUPATION: PROFESSIONAL RELIGION: ALL ETHNIC BACKGROUND: ALL PSYCHOGRAPHICS: SOCIAL CLASS: UPPER CLASS/ ACHIEVERS PERSONALITY: SUCCESSFUL, FASHION-CONSCIOUS LIFESTYLE: LIFE OF LUXURY: TRUST FUNDS, JETSETTING TO EUROPE FOR THE WEEKEND, LAVISH GALAS & SOCIETY EVENTS DEGREE OF KNOWLEDGE: EXPERT BENEFITS SOUGHT: PRESTIGE ATTITUDE: POSITIVE/NEUTRAL CONSUMERBEHAVIOR: BENEFITS DESIRED: QUALITY LUXURY MERCHANDISE & OUTSTANDING CUSTOMER SERVICE USAGE RATE: ONE VISIT PER 1-2 MONTHS BEHAVIORALSEGMENTATION: BRAND LOYALTY: UNDIVIDED LOYALTY STORE LOYALTY: DIVIDED/UNDIVIDED LOYALTY USAGE RATE: MODERATE USER STATUS: CURRENT USER PAYMENT METHOD: CREDIT CARD/PERSONAL CHECK/CASH USAGE SITUATION: VACATION, WORK, SOCIAL EVENTS, HOME, AND EXERCISE
STORE COMPETITION Our company competes closely with Cusp, Neiman Marcusâ€™ store for a younger, hipper demographic, and Holt Renfrew, the Canadian luxury retail powerhouse. Since both are underneath a corporate rule, we will be able to provide a more personal level of customer service, primarily since we will have a smaller client base. While Cusp offers product for the younger, trendier demographic, we will offer product for the mid-range, trendy demographic, and to a demographic who falls into a higher market level. While Holt Renfrew caters to a wide variety of tastes, we believe our retail location will be a destination for all luxury accessory merchandise within the area due to our exceptional level of customer service.
Store strategy Once opening our store, we hope to attract a large amount of traffic with publicity, mailers, magazine advertisements, etc., and generate enough sales within the first few months to get our boutique in a stable place. We hope to make enough profit within our first month of business to put us on track to be able to pay our vendors, our landlord, our taxes, etc. We will buy enough merchandise to fill the store and the backrooms, but hold off on larger amounts until we have established ourselves within the Toronto Fashion District as a reputable retailer. We will define ourselves with our first purchases from market as a trendy retailer with unusual designer merchandise, but also include the basics in order attract a wide variety of tastes. During the first week or two of business, we will also have our entire staff working every day we are open in order to get a feel for the store and for clients to get the chance to know every employee. We will also invite every new client we create that initial week of business to a private grand opening party at the close of that week, with champagnge, hor dâ€™heurves, music, and our personal stylist and sales associates there to answer any inquiries about merchandise, the store, etc.
KARA BY KARA ROSS
EXTERNAL SWOT ANAYLSIS
ANALYSIS OSCAR DE LA RENTA
When thinking of who one of our potential direct competitors would be, the Henri Bendel accessory stores were the first thing to come to mind. Featuring not only luxury accessories from the world’s most covetable designers, but also pieces from their own private line, the Bendel accessory stores are the perfect competition, giving us the drive to push our luxury accessory store to its fullest and highest potential possible. EXTERNAL SWOT ANAYLSIS
COMPETITION: Cusp OPPORTUNITY: Ability to appeal to a new demographic THREAT: Cusp is a one stop shop: apparel & shoes; cut into Bendel’s main consumer demographic ECONOMICS: OPPORTUNITY: Neiman Marcus suffered a recent $168.6 million net loss and is struggling to make ends meet. THREAT: Those who are able to purchase luxury merchandise are not likely affected to a great extent by the recession and will continue to purchase from stores who they are loyal to. TECHNOLOGY: OPPORTUNITY: Cusp is virtually unadvertised THREAT: No separate website for Henri Bendel accessory stores SOCIETY: OPPORTUNITY: Younger demographic, lower income level, not as exclusive; lower price-point merchandise THREAT: Affiliated with the Neiman Marcus Group, which is well known as one of the top luxury retailers in the world; consumers are the upper crust of American society
LUXURIOUS ACCESSORIES STYLETIP Take a hint from Oscar de la Renta and wear a chunky statement piece to glam up any outfit.
ANALYSIS INTERNAL SWOT ANAYLSIS
CUSTOMER DEMOGRAPHICS: Strength: Caters to a wide variety of tastes Weakness: Merchandise offered solely at higher price points (ex. Bridge, Designer markets); only cater to women PSYCHOGRAPHICS: Strength: Extremely exclusive clientele; consumers are upper class of America Weakness: Excluding other potentially profitable demographics GEOGRAPHICS: Strength: Located in some of the most influential fashion capitals of the world and in areas where their primary demographic is dominate Weakness: Exclusive to only a very few select states and areas of the United States BEHAVIORAL BUYING TRAITS: Strength: Consistent in the purchasing of only some of the world’s most coveted merchandise; explore and experiment with new designers Weakness: Only purchases merchandise at the Bridge/Designer level markets and ignores the menswear market entirely PRODUCT MIX STRENGTH: Offers a variety of designers and their products, including candles, handbags, jewelry, small leather goods, etc. WEAKNESS: Don’t offer apparel, which is the largest and most profitable market in retail PRICING STRATEGIES STRENGTH: Retains a sense of exclusivity by keeping prices at Bridge/Designer levels; want to remain a retailer of the elite WEAKNESS: Most items offered in the store are only accessible by upper class, wealthy fashionistas who are able to purchase designer market merchandise; upper class is an extremely small portion of the American population Promotion STRENGTH: Remains elite and exclusive with minimal/no advertising WEAKNESS: Very little advertising, including a weekly book/e-mail updates sent out to members only, and a website Distribution STRENGTH: Some merchandise offered online, mainly private Henri Bendel brand WEAKNESS: Complaints on shipping and accuracy of orders from Bendel’s is rather common; unreliable Employees/Management Structure STRENGTH: Few employees who work under store manager; allows more personal relationships with customers and between employees WEAKNESS: Estimated yearly pay is under $30,000/benefits unknown
STYLETIP Embrace classic uptown style with Lanvin’s wrinkled lambskin shoulder bag
Our VISION To be a chic shopping environment, a girlâ€™s playground, where customers can come to find the latest in accessories, anywhere from gorgeous prominent designer leather handbags to the most covetable home goods. We are the epitome of luxury accessories, a retail icon, wanting the women who walk through our front doors to lose themselves in each and every single irresistible piece, lying perfectly on each polished shelf. We want women to feel as gorgeous as any one of the sumptuous accessories they purchase, and to make us into their premiere shopping destination for everything fabulous. We ARE luxury. ACCESSORY TREND REPORT FALL 2009
STORE LOCATION After extensively researching the up and coming areas for luxury retail around the world, we feel we have chosen the prime location: Toronto, Canada, in their fashion district, off of Bloor Street. We have found that this area houses some of the industry’s most covetable brands, including Prada, Chanel, and the Canadian luxury retailer powerhouse, Holt Renfrew. After researching locations suitable for the luxury retailer we’ve dreamed up, we have decided on the crossroads of Queen Street West and Portland. M5V 2B7 QUEENS STREET WEST
DIMENSIONS The location we have found is 2000 sq. ft. on the main level, with the possibility of expanding into a second floor, or a basement area. Location of entrances/exits The customer & employee entrance/exit resides in the front of the store. An additional entrance/exit resides within the back storage room, for receiving shipments only.
DIMENSIONS SEPARATE SPACES
A majority of the floor space will be used for selling space, with approximately 400 sq. ft. of the available space used for storage, employee restrooms, and management offices TERMS OF LEASE We have decided for a short-term, one-year lease at the opening of the store, in order to decide if the location is prime for a luxury accessories boutique, we are doing the business we have anticipated, etc.
Location of WINDOWS The only windows within the space are the two front display windows, on either side of the main entrance.
MONTHLY RENT The rent for the location is $4,000/month, meaning that we will be paying $2.00 per square foot
Shape OF STORE The location we have chosen is in a simple, rectangular shape, with a square protrusion from the back of the store for storage, etc. COMMON AREA FEES All maintenance and utility fees are included within our rental agreement. Any marketing or promotional activity that we wish to involve the store in will be paid through the store’s funds.
We have developed our store plan to have all brown objects to be shelving and tables, white to be lamps, maroon to be the cash register, yellow as floor rugs, and green as furniture. The tables in front of the front entrance are meant as a point of interest, drawing customers into our latest merchandise. MAIN TRAFFIC FLOW Enter through the front door, hit the point of interest, then proceed towards the right side of the store where a majority of the merchandise has been strategically placed.
storeatmosphere We want our store to create a positive atmosphere that stimulates all five senses, in order to create a total shopping experience. Upbeat, tasteful music will be played in the background, in order to put those that enter the store in a positive shopping mindset. Spotlights on merchandise and burning essential oils will be used to trigger feeling within the customer. Taste will be satisfied by beverages and hor dâ€™ourves offered when the customer enters the store. Visual merchandising, dĂŠcor, and store layout will offer an image that is pleasing to the eye, while a sense of touch will be satisfied through the merchandise and a comfortable seating area.
monthly SALESPLAN Our sales plan gives a detailed plan on our projected total sales for each month over the course of August-January. We expect sales to decline after August, through the months of September and October in virtually every item, picking back up again in time for Holiday in November. Our largest sales will occur during the month of December, and then gradually decline during the month of January. AUGUST-JANUARY TOTAL SALES $360,000
STYLETIP Get tough this fall with Philip Limâ€™s new studded leather gloves
monthly SALESPLAN Our sales plan gives a detailed plan on our projected total sales for each month over the course of February-July.. We expect sales to decline after January, through the month of April in virtually every item, picking back up again in May.. Our largest sales will occur during the month of May, and then gradually decline during the months of June and July $360,000 FEBRUARY-JULY TOTAL SALES
STYLETIP Get tough this fall with Philip Limâ€™s new studded leather gloves
STYLETIP Update any signature style with Lanvin’s Happy Sac Partage Leather Bag
Our largest category of sales is planned in luxury handbags, at an estimated 60% of our total yearly sales, or $360,000, and will be our claim as a destination as a retailer. Luggage, wallets, bangle bracelets, and rings are all estimated to be 5% of total annual sales, being highticket items for every season. Rings and bangle bracelets will be another category classified as ‘destination merchandise’. The remaining merchandise, earrings, necklaces, clutches, scarves, sunglasses, novelty/seasonal, and pet products, all fall beneath 5% of our profit margin.
ANNUAL TOTAL SALES $600,000
60% or $360,000 of Total Yearly Sales
what we love this
CLUTCHES 3% or $18,000 of Total Yearly Sales Clutches will be more readily available during certain seasons
5% or $30,000 of Total Yearly Sales Wallets will be carried year-round as a complement to our clients’ must-have designer bag
Handbags will be our highest-ticket product; this department will be the claim to our destination.
1% or $6,000 of Total Yearly Sales Scarves and gloves will be available during certain seasons, and will be present in the store at regular price only when the current season supports it
4% or $24,000 of Total Yearly Sales
We will only carry necklaces as the current trends support them
RINGS Rings will be our second largest jewelry inventory and will be a part of our destination category
5% or $30,000 of Total Yearly Sales
Bracelets 5% or $30,000 of Total Yearly Sales We will carry the largest jewelry inventory in bangles; this will also be one of our destination categories
3.1 PHILIP LIM
5% or $30,000 of Total Yearly Sales Luggage will sell throughout any season, and will be a highticket item
LINDA FARROW LUXE
EARRINGS 4% or $24,000 of Total Yearly Sales
Earrings will be sold as complements to our exclusive bangle collection
SUNGLASSES 4% or $24,000 of Total Yearly Sales Sunglasses will be available yearround, but will peak during certain appropriate seasons
HENRI BENDEL ACCESSORIES
2% or $12,000 of Total Yearly Sales This category will include holiday merchandise, look books, candles, and any other item that we may carry for a trial period prior to adding this category to our collection
PET 2% or $12,000 of Total Yearly Sales Pet products will be sold year-round and become a loyalty product to our clients
We believe a combination of directing/coaching management is the best for our retail setting. Directing combines the managerial aspects of setting goals, identifying problems, coming up with solutions, and giving specific directions to employees, while coaching combines the managerial aspects of developing plans to solve problems, consulting with employees for feedback/opinions, praising employees, and evaluating the work of employees. While we want to maintain full control over our business setting, we find it extremely important to maintain positive relationships with our employees in order to create a positive, thriving company environment. LEADERSHIP STYLE In order to coincide with our management strategy, we have chosen the ‘Paternalistic’ and ‘Democratic’ leadership styles. Given that the paternalistic style is dictatorial, making decisions at the best interests of employees and ensuring their social and leisure needs are met, it is the best style to coincide with the directing management style. However, we also found the democratic side of leadership appealing and found it to be a good match for the coaching style of management: encouraging employees to take part in decision making using delegation, using two-way communication with senior and junior employees, and running the entire business on a basis of majority decisions. We find this strategy to be best in order to allow employees to thrive in our company environment, while still passing the majority of decisions through the owners. It is the best way for us to maintain a strong control over our business, and create a positive environment for our customers.
loss prevention Being a retailer of a small size and with limited, high-ticket merchandise, we cannot afford for shoplifting to occur at any cost. In order to prevent employee theft, every new potential employee will undergo pre-hiring screenings, background investigations, new employee orientation, and employee conduct policies. In doing so, employees will be instructed of our no-tolerance policy for shoplifting, and interviewers will be able to identify potential candidates who are at a high-risk for shoplifting. An average of 3-4 employees will be working in the store every day, and will be trained in employee orientation on how to identify the suspicious signals of shoplifting, how shoplifters work, etc. Cameras will be installed throughout the store: two in the front, watching the cash register and the front door, five placed at strategic points throughout the store on key areas of merchandise, and one in the back storage room, fixated on the back entrance. Employees will only be allowed to enter and exit through the front entrance; only the owners are allowed to receive shipments at the back door. A security system will be installed within the store and will be controlled by a password that is set at the end of each day, to avoid break-in. Two security system panels with buttons that call the police, fire department, and EMT to the store on contact will be located behind the cash register and in the back storage room.
In order to focus more time on business tactics, buying strategies, and selling, we have decided to hire a PEO (Professional Employer Organization) to deal with the responsibilities of human resources. In such, they will cover the paychecks of employees, full benefits and health insurance for full-time employees, tax withholdings, retirement programs, unemployment insurance, and workersâ€™ compensation. Though most PEOs also deal with the handling of personal issues, we have decided that it is far more important for the owners of the business to deal with those issues themselves whether it be among each other, or with employees. We want to create a close-knit environment where we can effectively deal with the issues within our business. Employees will be required to wear all black, preferably black business suits with black flats or heels, and minimal jewelry. Sales associates are required to treat all customers in a fair manner, with no discrimination against any client. Each employee is required to help clients to their best ability, and if unable to provide help, must find another employee MARC JACOBS to provide service to the customer.
COMPANY ETHICS Embellish clean tailoring with Oscar de la Rentaâ€™s chunky gold plated metal chain necklace with delicate interwoven ribbon and silver-tone chain.
OSCAR DE LA RENTA
ales associate requirements Overview: Located in the center of the Fashion District of Toronto, our luxury accessory boutique offers a variety of exclusive designer merchandise for the trendy, fashion-forward woman in a positive setting. Exceptional customer service from our sales associates and a personal stylist will find the perfect accessory for any outfit, and for any occasion.
•Greet customers and understand exactly what each customer wants or needs •Maintain knowledge of current sales and promotions, and return/exchange policies •Open and close cash registers, count money, balancing the cash drawer, etc. •Compute sales prices, total purchases, and receive cash, credit payment, or check from the customer •Maintain records related to sales •Recognize the threats of potential theft and security risk •Recommend and help locate merchandise based on the customers wants and needs •Answer customers inquiries regarding merchandise and the store •Aid in ticketing and merchandising of product; help design interior and window displays •Complete sales transactions through Point of Sale •Clean shelves, counters, tables, floors, bathroom, etc. •Exchange merchandise and accept returns •Package purchases and wrap gifts •Participate in inventory count held every 6 months •Prepare new merchandise for the sales floor •Requirements oAbility to stand and move around the store for up to 5 hours at a time oAbility to compute basic math oAbility to lift moderately heavy boxes, display tables, etc.
Weekly schedule We have decided to hire three additional employees, besides ourselves, and have them work four days, 32 hours a week each, while we will work a total of 5 days, 37 hours a week. Since it is our own business, we believe in the importance of getting to know our customer and develop personal relationships with them. We want to be able to see first hand what our customers are buying, to be able to in turn, make better buying decisions at market. WEEKLY SCHEDULE
Emily Bertino, Melissa O’Connell, Jacqui Petrusevski 14-Dec 15-Dec 16-Dec 17-Dec 18-Dec 19-Dec 20-Dec TOTAL MON TUES WED THURS FRI SAT SUN 3 3 3 3 3 3 3 3 3 3 9 -5 9 -5 9 -5 9 -5 11 -4 37 93-53 93-53 93-53 93-53 113-43 37 3 3 3 3 3 3 3 3 3 3 9 -5 9 -5 9 -5 9 -5 11 -4 37 93-53 93-53 93-53 93-53 32 3 3 3 3 3 3 3 3 9 -5 9 -5 9 -5 9 -5 32 93-53 93-53 93-53 93-53 32
WEEK OF December 14-20 NAME Emily Jacqui Melissa Employee 1 Employee 2 Employee 3
STYLETIP Update your wardrobe with Chloe’s black stamped-leather Hedda tote. With Rive Gauche attitude, it’s a perfect standout accessory.
Levels •Customer service is of extreme importance to any business that hopes to succeed in the fashion industry. Being a small boutique, it is important for us to distinguish ourselves from the major department store in Canada, Holt Renfrew, offering above and beyond what mass retailers can offer. •We will only accept Visa, MasterCard, and American Express credit cards, given that Visa and MasterCard charge 0.05 percent for each transaction, and American Express charges 0.15 percent for each transaction. Personal checks and cash will also be accepted. •Upon entering our luxury accessories boutique, customers will be greeted and offered a beverage: lemon water, sparkling water, champagne, or wine. Children will be directed to an area filled with toys and coloring books to occupy them while their guardians look around the store. The seating area near the back of the store will offer a variety of magazines, flat screen TV, and a comfortable place for those to sit who are accompanying the shopper. A sales associate will then individually work with each customer, offering fashion advice and showing the customer new merchandise. •New merchandise will be limited to an order of three or four individual pieces, in order to retain a level of exclusivity and assure that every shopper that walks out the door with a purchase will not see the item anywhere else. For those who spend at least $400 on their visit to our luxury accessories boutique, the associate who has assisted them will be required to write a handwritten thank-you note in order to let the customer know how much their business is appreciated. For those who spend over $1,500, a small bouquet of flowers with a thank-you note will be sent from a designated florist. By writing handwritten notes, it is our aim to build customer loyalty and create personal relationships with our customers. •We will also offer an in-house accessory stylist that can work with customers both inside and outside of the store, helping them pick accessories for events, or everyday outfits. Customers in the store will receive complimentary stylist assistance, while assistance extended outside of the store will be charged a small fee. Consultations outside of the store will include streamlining of their closet to eliminate old accessory trends and suggest needed pieces, along with organization of their closet, and taking Polaroid pictures of outfits with certain accessories for the client, creating a ‘look book’. To bring attention to this service, we will have a sample look book on the round table towards the right of the store.
•In-store stylist will help customers while shopping: complimentary service; stylist paid same wage as sales associates while in-store •In-home styling consultations: $120 for a two-hour consultation, $50 per hour for all subsequent hours. Consultation includes a look book consisting of accessories with various outfits; closet consultation, and sorting through existing accessories and organizing the customer’s closet
YVES ST. LAURENT
Luxury Accssories Boutique
The following are employee sales goals for November 29, 2009 through January 2, 2010. We are estimating that the owners, Emily Bertino, Melissa O’Connell, and Jacqui Petrusevski, will be accountable for 2/3 of the profit. Our three employees will be responsible for the remaining 1/3 of the profit. We original goal to make $114,162.58 over this time period, but we have estimated that we will total out to $115,500 over the holidays.
GOALS FOR ASSOCIATES (IN THOUSANDS) November 29, 2009 - January 2, 2010
Actual Actual Goal Goal Actual Actual Goal Week Goal Week Week Actual Week Week Goal Week Goal Actual Week 1 1 Week 2 2 3 Week 3 4 4 Week 5 5 Total Total
4 25 25
5 25 25
5 25 25
ESTIMATED PROFIT $115,500
12. Employee 1 2.5 3 2.5 2.5 2.5 3 2.5 2 2.5 2 2.5 5
Employee 2 2.5 2 2.5 3 2.5 3 2.5 3 2.5 2 2.5 13
Employee 3 2.5 2.5 2.5 4 2.5 4 2.5 2.5 2.5 2 2.5 15
STYLETIP Carry this hardcore hardware to amp up your rocker-chic look day or night
22. 22. 22. 25. 22. 22. 21. 22. 82. 115 5 5 5 5 5 26 5 5 5 20 5 .5
TOTALS BY WEEK
YVES SAINT LAURENT
Employees will be paid on a salary with bonus basis. Each employee will be paid $12 an hour, and may earn rewards for certain acts, listed in the table below:
competitive shopping Employees will be sent out on a bimonthly basis to competitive shop the surrounding area and at other main competitors in the market for luxury retail (primarily Holt Renfrew). One employee will leave the store for a few hours during the selling day to do such, evaluating the types of merchandise and trends that similar retailers are currently offering, in order to allow us to compete at a more effective level.
Events And promotion We have implemented a number of events into our business plan to promote our business among the fashion-conscious of Toronto. •Champagne, Strawberries, and Style – A private, after-hours party for girlfriends with hor d’oeuvres, champagne, and fashion advice from our store’s personal stylists. Minimum of four individuals must be invited. $100 initial price, with $20 for each additional hour. •Multi-Store Fashion Show – A show with local, non-competing apparel boutiques, put on at the change of each fashion season. Top clients from each boutique will be invited to the show and cocktail after-party. Gift bags with coupons and merchandise from each store will be included for each guest. •Fundraiser Party – Each May, we will host a fundraiser party with cocktails and hor d’oeuvres for a local Toronto fashion student we believe has potential. Student will showcase their work at party, and will be available for sale if the student chooses. Clients must purchase a $15 ticket to attend. 30% of profits sold that night will go to the student. •Personal Stylist Assistance – One or more clients will come in for a private party with our personal stylist. Cocktails included, the stylist will provide assistance with filling in the clients wardrobe with the latest in accessories. Available either in store, or at the client’s home, the client will be charged an initial fee of $120, with a charge of $50 for all subsequent hours.
Markup/Markdown Strategies Overall store markup will be 55 percent, while our markdowns at end of season or sales will start at 20 percent off, and move on in increments of 15 percent. The markdown schedule will be as follows: 20%, 35%, 50%, 65%, 75% off. All store promotions will feature merchandise that is 20 percent off, as well as being the start of the markdowns for any given product. 65 and 75 percent markdowns will be saved for end-of-season clearances. Remaining items that are not sold at 75% off will then be sold to a liquidator. ACCESSORY TREND REPORT
STYLETIP Spice up your wardrobe with Mulberryâ€™s gorgeous coral crocodile print patent leather Bayswater bag.
Advertising plan Being a small store overshadowed by the Canadian retail powerhouse, Holt Renfrew, advertising is of great importance to our business. We have designed a website that houses photos of our newest merchandise, store information, a list of designers we carry, and sales information. We have determined that the website will cost us approximately $20 a month to maintain. We have found two reputable fashion publications that are circulated throughout the Toronto area: FASHION Magazine, and the Toronto Fashion Incubator. We have estimated that a small advertisement in each will be approximately $700 for FASHION Magazine, and $800 for the Toronto Fashion Incubator. We want to have advertisements in these magazines around key times, primarily in September, December, March, and June. We also will send out mailers to clients during major sales periods, primarily within the months of June and December. We have estimated that advertising costs will total around $7,000 per year. ESTIMATED ANNUAL COST$7,000
Marketing plan YEAR 1: SEPTEMBER 2010 to AUGUST 2011
In order to create and run the most successful store possible, we will implement a variety of tactics, including a Grand Opening cocktail party, fundraiser parties for up and coming student designers, fashion shows combined with other local apparel boutiques, flyers for special events, sales, etc. TABLE OF IDEAS
Event Method Multi-store fashion show Work with other noncompeting stores in the Toronto Fashion District to put on a fashion show in our location. Send out flyers to clientele to attract customers (cooperative advertising). Purpose is to attract women to come view next season's merchandise. Shopping Parties
Advertise for customers to be able to invite a certain number of friends to come and shop after-hours in the store with cocktails and hor d'ouerves.
Advertise for clientele to come in and shop, with help from our own stylist to help customers pick out accessories to add to their wardrobe. Cocktails and hor d'ouerves included
Support local design students with a fundraiser shopping party, where clientele are invited to come in and shop, with 30% of that day's profits going towards a particular student we have chosen that we feel has great potential. Some of the student designer's work will be featured in the store on this day for display/purchase, depending on the student's preference.
marketing tactics STYLETIP Deliver a luxe evening look with Judith Leiberâ€™s glistening hand-painted and silver and gold crystalpaved package clutch.
In order to create and run the most successful store possible, we will implement a variety of tactics, including a Grand Opening cocktail party, fundraiser parties for up and coming student designers, fashion shows combined with other local apparel boutiques, flyers for special events, sales, etc. MARKETING CALENDAR PROMOTIONAL EVENT
Creation of Web site Direct-mail postcards Ad in Toronto Fash. Incub. Ad in FASHION Mag. Grand-Opening Party
$400 $900 $800 $700 $800
August August September September September
$400 $900 $800 $700 $800
Flyers for opening party TOTAL OPENING COST
Ad in Toronto Fash. Incub. Ad in FASHION Mag. Direct-mail postcards Update of website Fundraiser for fash. Students Fashion shows Sales flyers Stylist parties Shopping parties TOTAL ANNUAL EXP.
Sept., Dec., March, June Sept., Dec., March, June Aug., Nov., Feb., May Monthly May March, September Feb., June, August Anytime Anytime
$4,000 $3,500 $3,600 $240 $400 $2,000 $1,200 $300 $500 $15,740
PUBLIC relations In order to gain a large amount of publicity in the Toronto community, we have decided to write a series of press releases to send out to all the major media sources in the area, including various websites/blogs, and adding ourselves to the Yellow Pages. We also hope to partner with nearby noncompeting stores to put on fashion shows, with our accessories featured in the show. We also hope to create gift bags to put together at these shows, with coupons or product featured in them. By partnering with local apparel boutiques, we hope to create â€œbounce-back businessâ€?, where we will send customers to their stores for apparel, and they will send theirs to us for accessories.
BY MALENE BIRGER
For release on: September 1st
Contact: Emily Bertino
Crème is a new luxury accessories boutique opening in the Toronto Fashion District on M5V 2B7 Queens Street West. Featuring luxury handbags, wallets, jewelry, luggage, sunglasses, pet and home goods from some of the most reputable designers in the industry such as 3.1 Philip Lim, Anya Hindmarch, Marc Jacobs, Miu Miu, and more, Crème offers the women of Toronto a truly unforgettable shopping experience. To help us celebrate our Grand Opening, we will host a cocktail party on Friday, September 17th. All new customers and friends are invited, and can shop the store while enjoying cocktails and hor d’oeuvres. This is an exciting event for fashionistas and shopaholics alike, giving them a wonderful opportunity to shop from our exclusive array of fabulous merchandise. For more information, please visit our website at www.creme.com, or call us at 220-555-5555.
Note: Color photography of select products enclosed.