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Inclutail: Inclusive Retailing Raven Jackson-Stone

04167018

Academy of Art University

Graduate School of Fashion Merchandising

Final Thesis Project

19 August 2018

16.00 PST


Raven Jackson-Stone 04167018 MFA Program- School of Fashion Fashion Merchandising August 2018


Welcome Table of Contents PA R T I : B U S I N E S S P R O P O S A L & RESEARCH

PA R T I I : I M P L E M E N TAT I O N

Executive Summary

Merchandising Plans

Resume ….213

Missions. ….6

Consulting Services List …. 111

Vision ….8

Sample Service ….116 Retail Assortment Line Sheets ….119

Market Research and Analysis

Sourcing Plan ….126

Management Consulting Industry ….11 Apparel & Footwear Industries ….17

Branding and Visuals

Cosmetics & Skincare Industry ….20

Branding Strategy ….130

Retail in the United States ….23

Branding Guidelines ….132

Diversity and Inclusion in US Retail ….30

Collateral ….138 Visual Merchandising Guidelines ….142

Location Analysis Geographic Targeting ….52

Marketing Strategy Marketing Goals ….162

Property Information ….54

Marketing Campaigns: Year One ….161

Competition Analysis Consulting Competitors ….59

Media Channels ….172

Retail Competitors ….70

Marketing Expenses ….183

SWOT ….84

Operations Plans

Competitive Advantage ….86

Organization Chart ….188

Differentiation ….90

Job Descriptions ….189 Hours of Operations ….195

Consumer Research and Analysis

Returns Policy ….196

Consulting Market Facts & Profiles ….93 Retail Market Facts & Profiles ….103

PA R T I I I : E X T E R N A L R E S O U R C E S

Financials Assortment Plan ….198 Cashflow ….201 Start Up Expenses ….205 Profit and Loss ….208 Growth Plan ….210

Work Cited ….214 Appendix I: Survey Results ….218


M I S S I O N A N D I N S P I R AT I O N

Welcome Personal Statement I N C L U TA I L AT A G L A N C E Inclutail began as a consulting agency and has expanded into a more engaging and comprehensive retail experience brand. I began this project for the frustrations and pains I felt as a shopper at brick and mortar stores. Whether it is the over-presence of being followed or the underwhelming lack of help offered by staff, shopping has failed to be an enjoyable experience for me as a Black-identified female. I wanted to conduct this research to determine how many others felt the way that I did, how many revenue dollars were lost to retailers as a consequence, and how we could transform shopping spaces so that this was not the norm. As a business focused on researching and designing retail for others, I conducted my own research on user experience, diversity and inclusion in fashion, and methods of implementing change in the industry. From advice given by my teaching staff I added to the initial consulting idea a retail boutique space that would be demonstrative of inclusive retail practices and promote diverse designers. For me, inclusive retailing means spaces that feel safe and welcoming to all manner of shopper, where any individual that enters the store can expect to be treated equally and with respect. This project explores the breadth of retailers that would benefit from an evolution to their retailing practices and the measurable gains to their business for engaging with our services and ideas.

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M I S S I O N A N D I N S P I R AT I O N

Inclusion Inclusion A D E F I N I T I O N O F O U R M O T I VAT I O N Current online sources define inclusion as the intention or policy of including people who might otherwise be excluded or marginalized.

In brick and mortar this is often towards shoppers’ visible identity traits, although not exclusively. When we discuss inclusive retail, we discuss a shopping environment in which their are guidelines on conduct and intention behind actions. Protocol is set and enforced by leaders in a business and holds true all the way from headquarters down to retail staff. The intention of an inclusive retailer is to craft a shopping environment that is non-threatening to shopping groups that have been traditionally marginalized from the fashion and beauty industry.

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W H AT I N C L U TA I L C A N D O

Executive Summ Inclutail is a women’s apparel and beauty retailer with the

It is simultaneously a consulting firm, providing landscape analysis and strategies for fashion and beauty retailers on their operations, merchandising, and customer experience

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dream to build connectivity and inclusion for all shoppers.

design for success in US markets.

Inclutail believes that we can create win-win opportunities. Our focus on diversity and inclusion allows retailers to

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diversify their target consumer groups, for increased profit and market shares. At the same time, we reduce the threat of conflict in brick and mortar environments for shoppers

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of marginalized identities. When inclusion matters in retail, more shoppers will feel welcomed and more shoppers will become brand loyal.

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THESIS ABSTRACT

Executive Summary


CENTRAL TO OUR PRACTICE I S O U R R E TA I L B O U T I Q U E Located in the Richmond District of San Francisco. The boutique sells apparel, beauty and footwear products. Each season we partner with six to eight designers or manufacturers to showcase trends from up and coming sources. While focused on a core consumer group, each season these trends, and correlated store design elements, explore the fashions for shoppers of different abilities, sizes, ethnicities, religions, etc, that may be under represented in broader retail selections.

For year one we will carry products from 9 suppliers, 26 different goods in total. We aim for $320,000 in revenue, with 70% of revenue generated by the boutique. Our target market is a young professional, living a liberal, independent, opportunity-rich lifestyle. She is a woman of color and a feminist. She shops at Inclutail for pieces that spark conversation and help her to stand out from her peers. The store is particularly attractive for its close knit connectivity and the regular calendar of community-engaging activities and events. 5


RESEARCHERS AND PRACTITIONERS At Inclutail, we stay up to date on the experiences and design specifications for marginalized shopping groups, to pass that knowledge on to our clients. Our sales floor is a daily demonstration of the benefits of inclusive retailing. Our staff are all trained in minimizing the risk and harm of microaggressions to shoppers. Our assortment changes focus seasonally, exploring trends for different marginalized shopping groups and integrating products to meet their needs for that season and after. We host frequent professional development programs for those in sales team management, visual merchandising, and buying.

FUTURE PLANS Inclutail got its start in consulting, and our plans remain focused on growing this aspect of our business. As an unproven firm, our priority is to build relationships with clients and establish our creditability through cases and public forums. In year one, consulting services are expected to generate just 25% of our total revenue. Our vision for the retail space is to maintain its earnest connectedness to the local community. We will search for diverse designers and manufacturers. We will provide goods for those who feel invisible to fashion. That takes time and energy. In order to provide well-curated goods, we do not plan to expand our assortment volume drastically in the first few years of operation.


CHANGEMAKERS

Our Mission Our Consulting Mission At Inclutail, we showcase and celebrate diverse product designers and consumers. We connect US fashion retailers to marginalized consumer markets, driving their brand effectiveness and business success through the practice of inclusion.

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CHANGEMAKERS

Our Mission Our Retail Mission Inclutail is the home and haven for women of color who wish to celebrate their individuality. We curate quality goods from lesser known designers and manufacturers representing diverse backgrounds and identities. We are a safe retail space where every shopper is welcome.

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REVOLUTIONARIES

Our Vision Our Vision Inclutail will revolutionize retail so that every shopper feels respected. We will be the trusted advisor for likeminded companies as they pioneer efforts to improve the shopping experience for diverse consumer audiences.

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E X P E R I E N C E A N D PA S S I O N

Meet the Team UPON REACHING FULL FUNDING GOALS The Inclutail consulting team will be comprised of one full time consultant with a background in retail operations, diversity education and training, and/or social science and social justice research. Consulting is also supported by an office

CEO & Founder

manager

The boutique will be operated by a team of sales associates, all enthusiastic about fashion’s diversity revolution, and lead by an assistant merchandiser and manager. 10


I N D U S T R I E S A N D I N D I C AT O R S

As a unique service and product provider, there are

feasibility of Inclutail’s brand. Being a niche retail consulting firm that simultaneously operates a boutique means that Inclutail is deeply affected by

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multiple industries that influence the success and

the retail industry for attainment of clients, and as a retailer affected by fashion consumer trends.

In market research we examine the following:

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• • • •

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Management Consulting Retail Consulting Consumer Economics Economics of Fashion Retail

• • • • •

US Politics US Trade Regulations Diversity and Inclusion Social Justice Movements US Population Diversification

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MARKET RESEARCH

Market Research Market Research


MARKET RESEARCH

Management Co Management Consulting GLOBAL FINDINGS Management consulting is a service industry field through which consultancy firms analyze, advise, and recommend practices or procedures to a client company’s operations. They may focus on the functionality of any one or multitude of business divisions within a company, from human resources to supply chain to business strategy. Businesses elect to hire on these teams when there is a perceivable weakness in their current procedure, which has a profit gain opportunity when resolved. Hiring a consultant can be the fastest and perhaps most accurate method of resolving a problem, as these firms have presumed experience resolving that same business issue with past clients.

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MARKET RESEARCH

G L O B A L PA R T I C I PA N T S On a global playing field there are a select number of notable

Within that list of powerhouse firms are those focused on strategy,

international management consulting firms: Deloitte Consulting,

accounting, and other specific business functions. It is worth noting that the

PricewaterhouseCoopers, Ernst & Young, KPMG, Accenture,

largest of these firms, PricewaterhouseCoopers, KPMG, Ernst & Young, and

McKinsey, Booz Allen Hamilton, The Boston Consulting Group, and

Deloitte mostly provide auditing services on top of business function

Bain & Company. Aside from these companies, few firms can

consulting. Perhaps it is the vitality and gravity of regulation that makes these

compete on an international scale. These consulting firms make up

companies so successful. Their auditing services are relevant on city,

more than 40% of the global market share, according to

national, and even international levels. In some countries they may be

Consultancy.uk. They set the standard for pricing, practices, and

responsible for 80% of industrial auditing that is conducted (Consultancy.uk).

implementation of consulting.

For smaller consulting agencies, it suggests that the most profitable focuses of consulting are on regulated practices or audit-able records.

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MARKET RESEARCH

EARNINGS AND GROWTH As of 2016, the industry earned $148 Billion globally. That sits within a rather stable 5% growth rate year on year. Industry reports suggest that the rate should continue into and beyond 2018. The reason for this is thanks in part to the ever-evolving and all-encompassing definition of management consulting. Essentially consulting firms look to be the accessible and for-hire source of knowledge for all new and relevant technologies and trends. At present, most growth within management consulting is expected to focus on digitalization of products, as our consumers and goods become increasingly a part of the Internet of Things. Simultaneously, cybersecurity consulting rises with the increased threat brought on by the IoT and feared via publicized hacker attacks. Growth within management consulting matches growth of other industries globally. This is partially due to the fact that growth permits one to spend on these services, although failing industries may also offer a bevy of clients desperate to repair the breaks in their operations.

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MARKET RESEARCH

Management Co Management Consulting U N I T E D S TAT E S F I N D I N G S

Globally the United State’s professional service industry is one of the most highly regarded and profitable, generating $257.6 billion in revenue in 2015. Top US schools are common recruiting grounds for the competitive and prestigious global firms that make up a majority share of the global industry. Through the 2015 management consulting industry boom, the four largest consulting agencies, aptly called The Big Four (PwC, KPMG, Deloitte and EY), expanded their share of the US market by 10.9%. In 2017 that equates to approximately 11% of the market all-together.

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MARKET RESEARCH

INDUSTRY PERFORMANCE Recent industry performance within the United States suggests a high likelihood of success for new and even small businesses in the field of management consulting, despite that dominance. In 2016, US companies alone spent $54.7 billion on management consulting services, up 7.7% from the previous year (Consultancy.uk). Comparing channels within that sector, there was growth in the revenue generation for financial, technical, and operational consulting, with the third rising to $14.1 billion that year.

Inclutail is situated within the realm of operational consulting, applying experience and analysis to processes surrounding marketing, merchandising, and operation of retail stores. Reportedly this sector represents 7% of the multi-billion dollar industry.

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MARKET RESEARCH

GROWTH OPPORTUNITIES Retail consulting growth is available to those firms that can advise on data mining and utilization practices. As shopping becomes increasingly digital, retailers understand that they can increase profits by gathering and analyzing data about their operations and customers that was once impossible to collect. Consulting firms that can either establish data gathering techniques, or perform the analysis for a client, will move the needle of profitability for the management consulting sub-sector. Inclutail is in a practice of gathering and analyzing data about consumers, although does not presently offer services for a client to mine data independently.

As was true on the global scale, digital consulting is a segment of management consulting expected to outpace other forms in its revenue growth percentage. This segment includes services surrounding e-commerce and mobile shopping. If Inclutail is able to consult for both brick and mortar and digital shopping platforms, the company can capture part of this growing market and become relevant to a broader retail client base.

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MARKET RESEARCH

Retail Apparel & Footwear GLOBAL FINDINGS

Across apparel and footwear, the fashion industry has an expected value of $2.5 trillion in 2019. While historically a Western-dominated field, emerging markets (as suppliers and consumers) have tipped the scales in 2018. In the coming years the industry expects revenue growth rates of 6.5-7.5% from consumers in Asia (China, Vietnam, Korea), with similar growth out of eastern Europe. In contrast North America and western Europe may have a revenue growth rate of just 1-3%.

This shift will not make western industry members completely irrelevant. In this same moment, individual company performances show top fashion performers (retailers, designers, manufacturers) improving at a more dramatic rate than smaller, lower performing businesses. The expanse between success and failure in terms of revenue generation is ever increasing.

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MARKET RESEARCH

GLOBAL TRENDS For the manufacturing and retail of fashion goods, there are business

Along with globalization, digitalization and technology advancements color

operations trends that indicate success and viability in today’s

the fashion industry. Most notably, retailers in particular will leverage methods

industry. First is a return to globalization (although the departure from

of data collection to gain and process reports and histories of their

may not have been perceptible to consumers). This is in part due to

consumers. This is used later to craft increasingly personalized shopping

the rise in manufacturing and consumption out of Asia. To remain

experiences. Artificial intelligence also supports customer experience and

profitable, fashion companies must appeal to this growing market,

other retail operations as this predictive technology replaces functions

modifying their operations for a new consumer. “In 2018, more than

currently susceptible to human error or fatigue.

half of revenues in the global fashion industry will come from new markets in the East than long established markets in Western Europe and North America,� said Imran Amed, founder and editor-in-chief of The Business of Fashion (BoF). This globalization comes despite individual country policies towards nationalism that would otherwise suggest a trend towards isolation in fashion.

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MARKET RESEARCH

GLOBAL TRENDS Mobile purchasing will yet increase as a retail channel in 2019. Also remaining relevant are initiatives in sustainability. These could be cultural responsibility protocol, regulations on environmental impact by manufacturers, or choices and opinions distributed by consumers about the real or perceived sustainability of end products in fashion. Perhaps linked to trending demands for sustainability is the growth of the off price sector in fashion. The segment gains traction under a “false notion� that selling off price goods helps to mitigate challenges brought on by excess inventory (Buras). In reality, sustainable practices would be to reduce the volume of manufacturing to avoid such levels of excess product.

Whether on a global level of competition, or operating in a smaller sphere, analysis of global fashion apparel retail trends recommends certain actions over others. Retailers should have navigable mobile platforms, so that there is ease in shopping through this channel. All distribution channels should collect and utilize personal shopping information for unique and individualistic brand experiences. Finally, all of the opportunities and functionality of technology for retail must apply to a more diverse shopping market. Namely that means shifting from Eurocentric structures of fashion operations to those that are equally inclusive of East Asian fashion communities. When it comes to brick and mortar shopping environments, Inclutail is well poised to advise upon this development. 20


MARKET RESEARCH

Retail Cosmetics & Skincare GLOBAL FINDINGS

This industry is comprised of any products made to enhance the physical appearance or smell of consumers. Products are non-medicinal and minimally invasive, under the categories of hair care, skin care, oral care, color cosmetic, fragrances, soaps and shower gels, and sun care products. Globally the beauty industry was worth 532 billion in 2017 (Costello). It should rise to 805 billion by 2023. Companies with the highest revenue generation and influence on the industry include L’oreal Group, Proctor & Gamble, Avon Products inc, Unilever, The Estee Lauder Companies Inc, Shiseido, Yves Rocher, Revlon Inc, and Alticor. Some focus on specific areas or product categories of beauty, but all are involved in more than one category, with breadth within each field.

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MARKET RESEARCH

GLOBAL TRENDS Similar trends in the apparel and footwear industry mark growth for the beauty industry. These same topics also appeared in discussion of growth opportunities for management consulting, specifically retail operations consulting. Individuals in retail of any product segment expect increased personalization through the attainment of consumer details. They expect technological integration with their shopping experience. For products within the beauty industry, this means user-tested and reliable information about product performance and variation. That performance should be tied to factors about the consumer that go deeper than just age, gender, sexuality, and body type.

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MARKET RESEARCH

GLOBAL TRENDS The cosmetic field is not characterized by the same trends towards globalization. Beauty trends and styles remain regional and topographical, so that marketing and product assortments are defined in their historic settings. Consumers across the globe do have a strong preference for sustainability, morality, and ethical production. A company’s use of natural products significantly sways consumers to select that brand over others. Similarly, a brand that is shown to give back in a corporate social responsibility platform garners more consumers. Overall assessment of the beauty industry indicates significant returns for companies that invest in biotechnology research to create more effective and low-environmentally impacting products.

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MARKET RESEARCH

Retail Fashion & Cosmetics U N I T E D S TAT E S F I N D I N G S

Inclutail's primary market for consulting are women’s fashion retail companies. In this circumstance, success of the retail industry in the United States is an important indicator of opportunity and demand for retail inclusivity consulting. It will have similar implications on the retail operation as a source of profit and brand dissemination.

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MARKET RESEARCH

ECONOMIC LANDSCAPE There are a range of factors that make up the retail industry landscape in 2018. Economically, retail consumption is tracked as an individual category in the Gross Domestic Product (GDP) for the United States each year. Looking at records from the Bureau of Economic Analysis, retail consumption has been a steady and positive contributor to the GDP over the past nine years.

Looking at the output by retail industry categories towards the GDP, we see a positive outlook for this category including fashion products. Compared to general merchandise and food & beverage categories, Other Retail makes up the largest portion of the overall retail industry GDP output. It also shows the steepest rate of growth, contributing more and more each year to the fiscal gains of this industry. For 2018, the market growth rate is expected to fall between 3.2-3.8% (U.S. Census Bureau News). 25


MARKET RESEARCH

US CONSUMER MARKET The United States as a consumer body is the largest in the world, followed by China. Retailers inside of the country have direct and advantageous access to many purchasers in and outside of their target market. Particular strategies trending in 2018 will set some retailers on a path towards increased profitability, despite media headline claims of a retail apocalypse.

The continued improvement of the US economy with regards to labor and unemployment suggests a healthy US retail economy. With 2018’s low unemployment rates and a strong stock market, consumers budget for a higher personal spending limit.

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MARKET RESEARCH

DISTRIBUTION CHANNELS The distribution channels for apparel, beauty and footwear in the United States are highly varied and cross-utilized. Continuously we see more consumers purchase online and via mobile app. The choice of channel varies across age, gender, and income level. Even seasonality changes the preferred format of buying. The most successful retailers operate on multiple channels, as demonstrated by the trend of e-commerce only companies opening up brick and mortar shops in major cities. Brick and mortar retail still offers sales advantages.

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MARKET RESEARCH

T E C H N O L O G Y I N R E TA I L Many technical improvements also encourage retail growth. Augmented and virtual reality tools change the digital shopping experience, making products feel more explorable while not physically present. As appears in global trends, collection and use of consumer data for personalized retail experiences promotes additional spending and brand loyalty. Digitalization of supply chain practices and new distribution tools makes online shopping and shipping ever faster and more efficient. Finally the Internet of things makes new, more up to date products, and allows for better collection and use of data in retail operations enhancements.

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MARKET RESEARCH

POLITICAL LANDSCAPE Of greatest concern in 2017 was the proposed Border Adjustment Tax, and subsequent tax code changes announced by the Trump administration. The Border Adjustment Tax is part of an economic plan to drive domestic job growth by affecting operations in sectors like retail. It would increase costs through taxation on goods or parts imported to the US and sold to US markets. The increase of raw material costs subsequently raises the retail price of many goods sold within the US.

By Q3 of 2018 the Trump administration has announced tariff changes for imports from Canada, Mexico, China, and the European Union that are expected to negatively impact the US retail industry. The tariffs are targeting items such as aluminum and steel. Retaliatory tariff changes by these countries reduce the likelihood that foreign apparel, beauty, and footwear manufacturers and retailers will import US goods, as the costs increase for their operations and consumers. An example of this retaliation is the tax on denim from the United States proposed by the European Union. Other than this example, most new tariffs affect goods from the US agricultural industry, rather than retail or raw fashion materials. Again considering the strength of the US consumer economy in 2018, these political changes should have minimal effect upon the retail industry specifically. 29


MARKET RESEARCH

DISTRIBUTION CHANNEL CHALLENGES Within the retail industry there are additional changes that may

Trends of e-commerce companies moving towards bricks and

negatively impact a prospective consulting business, depending

mortar suggests that a physical retail venue is possible to maintain,

upon the retailer’s sales channel structure. Due to technological

if sufficient digital branding and marketing can drive interest and

improvements and consumers’ increasing comfort with online and

engagement between target markets and the boutique. Inclutail

mobile devices, e-commerce has undoubtedly the most improved

having no e-commerce presence at its start makes it less likely to

sales performance in retail channels. Sales through e-commerce

build the kind of digital engagement that these companies

are expected to grow by 15% in 2017, staying on par with a

(example Bonobos and Warby Parker) are experiencing.

growth rate of 13% from 2016. By choosing to operate just by brick and mortar, Inclutail distances itself from the buying

It is important to note that, despite this statistic, e-commerce only

structure of its target market. however, there is vital information to

represented about 8.5% of sales revenue generated in the US as a

be gained through the practice of brick and mortar for our

whole in Q1 2017. In addition, a retail consulting business that can

consulting business, so we must drive consumers to visit physical

advise on both brick and mortar and e-commerce retailing will

locations.

remain relatively unaffected by any shifts towards online and mobile buying.

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MARKET RESEARCH

Diversity & Incl Diversity & Inclusion U N I T E D S TAT E S F I N D I N G S

Inclutail's specialization in diversity and inclusion consulting is in response to recent sociocultural events that have led to political, economic, legal, and even technological changes in the country, both positively and negatively. Through highly publicized events of discrimination, the country has become more polarized around issues of diversity and inclusion, from the validity or existence of discrimination to arguments on acceptable resolutions. At this moment, polarization has increased the market for inclusive products and services, as it becomes a more salient and critical factor in the consumer decision-making process. As a niche field of consulting, Inclutail is properly placed to meet the needs of retail companies, with less competition from other firms.

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MARKET RESEARCH

ACTIVISM The impetus and demand for inclusivity work begins often as an activist movement, until spreading into established social regulations through laws or widely adopted protocols. In response to the presidential Executive Order 13769 issued early 2017, referred to commonly as the Muslim Ban, large protests took place in most major airports across the country, the site where these considered injustices took place. In another fascinating moment, the American Civil Liberties Union received donations of $24M the weekend following the order’s signing. This amount is nearly six times the sum received by that organization in a typical year. Through monetary giving, a large population segment indicated both their demand for legal engagement in support of marginalized groups and their willingness to spend in support of such organizations.  

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MARKET RESEARCH

ACTIVISM On a smaller scale, government organizations are sharing their commitment to protect marginalized US populations and support diversity in their systems. In 2017 the New York City Department of Education sent a letter “describing a series of directions given to all [of] its staff to ensure a safe and nurturing environment”. Notably this included a guarantee for privacy and safety of the immigration records of children and their families, access to City services, and a declared commitment “to maintain safe and inclusive schools that are free from harassment, bullying, and discrimination on account of actual or perceived race, color, religion, age, creed, ethnicity, national origin, alienage, citizenship status, disability, sexual orientation, gender (sex), or weight”.

Another example that has raised social activism participation nationwide is the #BlackLivesMatter campaign. The organization began in response to the highly publicized, racially-motivated killing of a seventeen year old black male, Trayvon Martin, by an older, white male civilian in 2012. Subsequent cases of racially-motivated violence or discrimination against black-identified people have gained media coverage and attention. Highlighting an important factor in diversity and inclusion work, #BlackLivesMatter also demonstrates the intersectional demands for today’s population. On their home page you can read how its campaigns and actions are meant to improve not just the black cis-male life experience, but that of women, queer, and trans black-identified people as a whole, acknowledging that additional and/or unique negative experiences afflict those with multiple marginalized identities. 33


MARKET RESEARCH

ACTIVISM Given the manner in which identifying categories like gender, country of origin, or religion are systemically used to categorize and process individuals in the United States, it is sensible that efforts to create diverse and inclusive organizations will have rippling affects outside of the original realm of motivation. What starts as a social campaign becomes political and economic. Efforts and campaigns such as those detailed above demand partnership and integration in industries like consulting and retail. To ignore the demands of a socially active US population is to decline their buying power, social network influence, and demonstrate alliance with their opposing viewpoints. For retailers whose target market includes individuals that participate in social and/or political activist campaigns, nonresponse by the brand could result in significant brand loyalty losses in the coming year as compared to competitors that implement new diversity and inclusion practices.

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MARKET RESEARCH

W I T H I N U S R E TA I L I N D U S T RY In the US media, diversity and inclusion slowly began affecting retail through advertising and product representation. By 2016, consumer researchers were finding statistics that indicated a changing mindset in the preferences of their audience.

The concepts took continued leaps into relevancy and practice for business, moving beyond social statements and public-facing offices. In 2017, US media sources were shocked and excited by the story of 175 CEOs and senior executives who signed pledges to establish diversity goals for their companies. They may not be the first, but their collective action is indicative of the new value that diversity and inclusion brings to business. Their signatures were trusted to represent more than figurative brand advancement. Their proposal included transparency of goals and accountability through annual committee reviews. Included in that list of signatures were the leaders of JC Penney, Levi Strauss and Co., Macy’s, Target Corporation, and Under Armour. Given the size of these retailers and specific range of consumers they target, we have a clear image of which consumers care about diversity and inclusion. It is not longer exclusively a matter for marginalized communities.

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MARKET RESEARCH

A C T I O N A B L E S T R AT E G I E S Considering diversity and inclusion for retailers of apparel and beauty products, there are a variety of actions a company can employee, at times internal and at others external, that keep them participating in this business trend. What is atypical about these approaches is how they branch beyond the corporate office to affect the brick and mortar sites themselves. While diversity of retail executives is indicative of positive change, consumers are more likely to recognize and then positively reward a brand whose inclusivity practices affect them in the spaces where they interact with the brand, namely the shopping space.

1 . TA R G E T M A R K E T D I V E R S I F I C AT I O N Perhaps the most obvious inclusivity strategies involve diversifying the target market. Using traditional market research and marketing tactics, a diversification program makes a company more accessible by increasing the range of consumers that feel invited to shop. For example, astute market researchers have identified the untapped potential of muslim shoppers. In 2014, it was determined that 800 million muslim shoppers (about 43% of the demographic’s world population) were below the age of 25. They were found to be fashion-conscious and willing to contribute to the industry through consumer spending and sharing brands via their social networks. Unlike their consumer predecessors, young female muslim shoppers seek modest products that express their individuality through aesthetics of the apparel materials. From luxury brands to fast-fashion retailers, many have begun actively marketing towards shoppers in muslim communities and countries such as Saudi Arabia. Representing part of an ethnic demographic that spent $2.2 trillion in the global market in 2015, the retail sector can certainly expect to see profit gains by being inclusive of these consumers. 36


MARKET RESEARCH

TA R G E T M A R K E T D I V E R S I F I C AT I O N Across various forms of identity, new movements, social

There is a significant profit opportunity for retailers that expand

campaigns, or organizations have emerged in order to disrupt

their marketing and merchandising practices to include plus-size

systemic practices or beliefs that isolate or disadvantage a

shoppers. According to a report by IBISWorld, the plus size

segment of the US population. Closely related to fashion and

women’s apparel category has outperformed the revenue growth

merchandising, body positive campaigns arose in response to

rate of stores carrying only traditional women’s sizes. Where

media portrayals of ideal body shapes and age discrimination that

traditional sizes for women’s retailers have declined at 1.8% from

have entrenched stigmatization of unideal figures. Of particular

2013 to 2018, the plus-sized retail industry has grown at 0.5% in

note are the experiences for women with overweight bodies. In

that time. It is important to note that one segment represents a

western cultures, they may experience verbal abuse, negative

high volume of retailers, while plus-size apparel is still a low-

psychological development towards the self, and even economic

competition field. Regardless, for those retailers looking to improve

impacts as a 2016 British Medical Journal research project found

their revenue opportunities in US women’s fashion, plus-size is an

that “women who weigh as little as 15 pounds more than their

obvious target market expansion plan.

peers saw an average annual income drop of $1,600, and were less likely to own cars or homes, or be employed”.

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MARKET RESEARCH

M A R K E T D I V E R S I F I C AT I O N A successful campaign of market diversification examines the new target market for its demographics and behaviors and then provides products to suit their needs, finding balance between the cultural regulations of the adopted market and the retailer’s existing brand identity. While it is thrilling to access a new market, these projects can also be the most difficult. A company may be restrained by merchandising or brand strategy limits, such as mark up percentage or location of stores. While the purpose of inclusivity in retail is to reduce the number of shoppers the are disadvantaged from purchasing goods, some aspects of responsibility are driven by economic changes instead of societal. While a brand may seek to bring new customers in, their target market demographics can only evolve within so many degrees before necessitating a complete redesign.

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MARKET RESEARCH

2 . M E R C H A N D I S E D I V E R S I F I C AT I O N That challenge makes it clear that merchandising should be assessed as a completely separate project and practice of inclusion from diversification of target markets, which focuses on branding, marketing, and visual merchandising principles. Nordstrom has long been a success story in inclusive merchandising, targeting their efforts early in the product pipeline. In a 1997 profile by Black Enterprise, the company is highlighted for its product sourcing practice. Coined the Supplier Diversity program, it stipulates that sources for their retail products be intentionally varied to model the communities where their stores and offices exist. In some instances, raw products are designed or created to be more suitable to one specific group than another. By diversifying the product makers, they increase the likelihood that products will appeal or be appropriate for more consumers or niche consumers.

39


MARKET RESEARCH

M E R C H A N D I S E D I V E R S I F I C AT I O N This principle inspired Inclutail’s designer directory service. To expand product assortment appropriately means finding responsible and informed designers for the newly included goods. Our designer directory houses information and samples from international apparel, beauty, and footwear designers or manufacturers that design for niche or minority shopping groups. By purchasing from these companies, retail clients are more likely to see a successful merchandise diversification project unfold.

40


MARKET RESEARCH

M E R C H A N D I S E D I V E R S I F I C AT I O N In another interesting method towards merchandise inclusion, nimble businesses may employ crowd sourcing for the product design segment. More traditionally accomplished through consumer interviews, the premise is to bring a variety of consumers into the design process. The action empowers the consumer and offers opportunities for products to be redeveloped to accommodate the needs of minority shoppers or, in the case of crowd sourcing newly emerging majorities. Fitting farther down the merchandising process, it shows the responsibility of merchandisers to identify emerging markets and take what may seem large risks to cater to their consumption needs, advancing the overall inclusivity of the brand.

41


MARKET RESEARCH

3. INCLUSIVE SHOPPING ENVIRONMENTS Finally, the acts and environment of shopping is a crucial aspect of retail inclusion that has changed since diversity became a valued business practice in the 2010s. Shopping, either online or in person, is a process that must nurture the consumer from their entrance to the store, through the browsing and decision-making process, and finally in the purchasing stage. With a diverse range of consumers, the factors that can positively or negatively affect the shopping experience vary more greatly. In redeveloping stores, it is important to have the new target market’s behaviors and cultural needs in mind. Determine if the store should be changed to accommodate gender non-conforming shoppers by offering private changing rooms or non-gender-specific changing areas. Represent a more vast array of mannequins or models by race, size and physical ability to acknowledge the diversity of shoppers and validate their appearance as belonging to the brand. Take advantage of new advancements in natural language processing to communicate with shoppers from different countries and provide consistent service. As these practices become more widely adopted, their absence becomes a greater hurdle to positive brand maintenance. In instances where the needs of consumers come in contrast with one another, further process or product development is necessary to find commonality or consolation between the two. 42


MARKET RESEARCH

Diversity & Inc Diversity & Inclusion U S C O N S U M E R S U R V E Y R E S U LT S

Direct research through survey builds upon the projections collected by consumer research groups. For this report I surveyed a total of 92 American shoppers online to gain a sense of the current climate of demand for inclusive retailing. Respondents were primarily female (85%) from 31 different states across the country and cities of varied sizes. About 80% of the respondents fell within the age brackets of 18-34, so answers given as a whole are considered closely related to the target client’s target market and can be contrasted with the market research hypothesis. Broadly, respondents were asked two questions: what parts of their identity they found most salient while shopping and to what degree an identity group should be targeted positively for a retail to seem inclusive.

43


MARKET RESEARCH

U S C O N S U M E R S U R V E Y R E S U LT S Graph 1 provides full group responses to a matrix question. Every respondent was asked how frequently each of the identity groups on the x-axis was a noticeable part of their experience. They were also asked to indicate if, typically, those moments where they noticed their identity trait were negative experiences. For all cases, most often a consumer rarely felt aware of a trait. When contrasting the sum of responses where customers thought of an identity more than half the time versus less than half of the time, more often than not, an identity doesn’t come into play for most consumers. In the 92 responses, usually less than 10 even note that the awareness was a negative experience. Most often the experience is negative when it has to deal with class/household income or weight.

The greatest counts for "rarely" came from age and sexual

Source: Jackson-Stone Market Landscape Analysis

orientation, meaning that these identities are the least salient while shopping. As a recommendation to retailers, these characteristics require the least attention in developing the diversity of store operations. 44


MARKET RESEARCH

U S C O N S U M E R S U R V E Y R E S U LT S Weight and household income were the two identity traits that most often caused negative experiences. The majority of respondents weighed 140 pounds or more.

Considering the Adult BMI Index definition of overweight, almost any respondent 5’3� or higher with that weight may be considered overweight. In a shopping setting, many might consider themselves undesirable in terms of clothing fit or size, given a likely status as overweight or even obese. This stands out as one of the potential areas of inclusivity for retailers to focus their attentions.

45 Source: Jackson-Stone Market Landscape Analysis


MARKET RESEARCH

U S C O N S U M E R S U R V E Y R E S U LT S Graph 3 makes it easier to compare the sum of votes for different rates of saliency in each of the categories examined. Looking at the height of the columns for “regularly” and “most of the time” we consider this the count for people who usually (more than half of the time) feel an identity is salient. That saliency may be negative or positive, but it is at least a part of their identity that stands out or is highlighted while in a shopping environment. Gender identity, race, and household income may be considered leaders in notice, in that a greater proportion of respondents were aware of these identities as compared to something like nationality. For retailers in search of a starting point, they may examine how and in what way these identities are made salient in a shopping setting. Household income seems primed when engaged in an activity that involves spending money. For any of the traits examined further, a vote of positive experiences versus negative experiences will be helpful, as will conversations about the exact triggers of those moments, especially when they are negative experiences. Unfortunately for this study, the data was not recorded in a manner to distinguish what frequency of saliency was chosen by respondents that stated they had a negative experience. In the fourth graph we go into details to determine what action consumers want most from their retailers to accomplish “being inclusive”.

46 Source: Jackson-Stone Market Landscape Analysis


MARKET RESEARCH

U S C O N S U M E R S U R V E Y R E S U LT S Qualities or characteristics of the retailer that are most important toward inclusivity receive responses of agree or strongly agree. As a likely correlation to the identity groups feeling most ostracized in the previous series of questions, consumers felt most strongly that a retailer needed to have a range of prices, have a range of sizes, and offer products that complimented a range of skin tones (highest votes of strongly agree). Of the individuals that voted range of prices as agree or strongly agree, 75% self-identified as low-income. Those finding a range of sizes as necessary (agree or strongly agree) had a similar weight distribution to the full data set. Those finding skin tone variation important had a similar racial distribution as to the full set of respondents. Interestingly, range of skin tones was voted highly influential while offering products that celebrated the respondent’s Source: Jackson-Stone Market Landscape Analysis

47

race/ethnicity/cultural heritage was one of the most neutral options.


MARKET RESEARCH

TA R G E T R E S P O N D E N T A N A LY S I S Finally, as the brand intends to target certain regions in the United States, it is important for us to review the responses from clients in those spaces specifically. We selected for respondents from cities listed in our top 24 most diverse cities assessment from the Location Analysis section, along with neighboring cities considered sister markets. At a count of twenty respondents, they accounted for just over 20% of the response rate. They were also a young group, with only three respondents self-identifying as 35-54 years of age.

We pulled their responses separately to look for trends in our target group. Looking at their responses in percentages and comparing to percentages of the full dataset, these individuals had more frequent awareness experiences for the following characteristics.

Household Income- percent of respondents selecting a given frequency

Rarely

Occasionally, less than half of the time

Regularly, more the half of the time

Most of the time

Negative Experience

Total

34%

18%

26%

9%

12%

Large City

29%

24%

12%

24%

12%

Source: Jackson-Stone Market Landscape Analysis

48


MARKET RESEARCH

TA R G E T R E S P O N D E N T A N A LY S I S Given the structure of cities to intermix populations of varying household incomes together, this may be a more salient identity as retailers targeting different markets provide their services in proximity to one another. As compared to a more suburban setting where the household income tends to be more universally set, there is a greater likelihood that a consumer may visit a store designed for a more wealthy shopper.

There likely are other factors leading to the significantly higher percentage of large city respondents that voted household income as something that was salient to them most of the time while shopping. We should also note that, while a higher portion feel it is salient most of the time, a higher portion also find household income is something they only occasionally consider while shopping. Adding this tally into consideration, there is a greater polarization of this characteristic for large city dwellers. Projects with retailers will initially determine whether their target markets fall within the category of frequent or infrequent consideration of household income.

49


MARKET RESEARCH

TA R G E T R E S P O N D E N T A N A LY S I S Race- percent of respondents selecting a given frequency

Rarely

Occasionally, less than half of the time

Regularly, more the half of the time

Most of the time

Negative Experience

Total

31%

21%

20%

11%

7%

Large City

35%

15%

25%

20%

5%

Source: Jackson-Stone Market Landscape Analysis

When considering their race, more city dwellers say that the identity was salient for their shopping experience regularly or most of the time, than do all respondents across the country. This suggests a slightly stronger rate of racialized shopping experiences in large cities over suburban settings.

For most other characteristics, large city dwellers voted in similar ratios as the whole for how strongly they agreed or disagreed that an action by a retailer made them more inclusive. This indicates that, while a large city and more diverse city has a stronger likelihood of compelling retailers to engage in diversity consulting, relatively similar value trends on retail inclusivity exist across the country. City size or diversity is not the driving factor towards how, what, or why a consumer perceives a brand to be inclusive. The requests made by all consumers who responded may be accomplished in a range of projects, personalized to the retailer and their target markets. 50


MARKET RESEARCH

TA R G E T R E S P O N D E N T A N A LY S I S

NEXT STEPS We also asked respondents if there were any values or identities that we had forgotten to take into consideration. This would highlight for us areas in which a retailer may need to consider redesigning their practices and retail environments, that we had not yet predicted. The item that stands out because it appears in multiple free responses is shopping environments as it relates to sales employees. Respondents asked for a diverse staff and a friendly staff. It seems logical that, alongside the other factors listed, it it the personnel in the store that make a consumer feel that they are welcome to shop there and that the brand cares for them as a consumer.

51


W H E R E S U C C E S S I S C E R TA I N

As a company focused on diversity of product

diversity and inclusion are in highest demand.

Our boutique as a research facility benefits from

03

and markets, Inclutail must be accessible where

a high volume of diverse and outspoken visitors. Educational programming taking place on site must be accessible for our target clients.

04 Success happens when a majority of retail headquarters are located in the same region as our consulting office, and when that area boasts

05

a high populations of marginalized identity groups.

06 52

L O C AT I O N A N A LY S I S

Location Analysi Location Analysis


Steps of Analysis

CHOOSING FOR SUCCESS

Ideal locations for Inclutail are population-dense cities within the United States that have higher than average diverse demographic counts. Beyond race, gender, and nation of origin, we consider populations of minority religions, sexual identities, economic status, and ages. These locations are often the birthplaces of sociocultural or social activist movements. Engagement in these programs is evidentiary of a local market for whom diversity is appealing, and increases the likelihood that proximate retailers have a brand strategy with this element.

S T E P I : D E M O G R A P H I C A L LY DIVERSE CITIES

From a 2017 survey conducted by WalletHub ranking major US cities by thirteen diversity indicators including occupation, educationalattainment, and household-type, we found the top 25 most diverse 53

and populated cities in the United States, highlighted to the left.


WALLET HUB’S DIVERSE CITY RANKINGS 2017 Rank

City

Rank

City

Rank

City

1

New York, NY (71.73)

9

San Diego, CA (70.20)

17

Denver, CO (69.21)

2

Houston, TX (71.51)

10

Austin, TX (69.91)

18

Boston, MA (68.96)

3

Dallas, TX (71.25)

11

Anaheim, CA (69.57)

19

Bakersfield, CA (68.68)

4

Los Angeles, CA (70.84)

12

Charlotte, NC (69.56)

20

San Antonio, TX (68.42)

5

Long Beach, CA (70.71)

13

Washington, DC (69.44)

21

Honolulu, HI (68.40)

6

Chicago, IL (70.57)

14

Fresno, CA (69.33)

22

San Francisco, CA(68.36)

7

Arlington, TX (70.48)

15

Sacramento, CA (69.32)

23

Nashville, TN (68.23)

8

San Jose, CA (70.39)

16

Oakland, CA (69.22)

24

Minneapolis, MN (68.13)

54


Steps of Analysis

CHOOSING FOR SUCCESS

STEP II: REGIONAL COMPETITION

Looking at the top 24 locations from WalletHub, we secondarily sort by each city’s density of retail businesses and competitor retail consulting agencies. Optimal would be low competition and a high volume of retail business offices as potential clients. Of note along this thread of analysis are Chicago, Los Angeles, New York City, and San Francisco. The Texas locations proved unpopular in their count of apparel retail companies for headquarters, save for a financially suffering JCPenney in Plano, TX. Similarly, few corporate retail offices are located in Washington D.C. or the nearby Mid-Atlantic region that could not be sufficiently influenced via an office in New York City. Both San Francisco and New York City provide most viable when considering retailers from those regions appearing because of their inclusion on the Stores Top Retailers of 2016 assessment, beating our 55

food service and general merchandise retailers.


Steps of Analysis

CHOOSING FOR SUCCESS

STEP III: PROPENSITY FOR DIVERSITY

Lastly we examined each location’s propensity for diversity and inclusion work, seeking public statements and corporate profiles that indicated diversity as a company value. Despite fair evidence for all three regions, Chicago was deselected for the distance from the city to the midwest retailers’ actual addresses. New York City was deselected given that it boasts nearly five times the number of retail consulting firms as in San Francisco. Of final mention is that the founder of Inclutail is most familiar and networked in the San Francisco area. This improves the odds for success from proper decision making, having an awareness of local costs, regulations, and social structure. As a known hub for diverse and active marginalized shopping groups, San Francisco is a safe choice for the first consulting office and boutique. 56


L O C AT I O N A N A LY S I S

2010 Balboa Str 2010 Balboa Street SELECTED PROPERTY

Source: Starboard TCN, 2010 Balboa St

57

Source: Google Maps


L O C AT I O N A N A LY S I S

2010 BALBOA STREET…

Is the selected retail and office space for our first year of operations. It is located in the center of the peninsula, offers large front windows for display, a widely open floor plan, and even an outdoor patio for events. As brick and mortar only, we will ship all products to San Francisco and store onsite or nearby. Pending success in our first year, we would hope to expand into the second story level which is also for lease.

• $3200/mo • 1400 square foot of rental space • Kitchenette • Nearest public transport: MUNI bus #31, #5

Source: Starboard TCN, 2010 Balboa St

58


C O M PA R E T O G E T A H E A D

As a unique service and product provider, there are multiple

customers. This section will analyze the most relevant competitors of our consulting services first, and then provide a similar analysis of our retail competitors.

04

branches of consulting and retail that cross-compete for our

We compared our consulting services with three other firms, one focused on diversity and inclusion, one on retail operations, and one of the globally influential firms. For retail

05

we looked at retailers who operated brick and mortar or had a major e-commerce following in our region. They shared similar merchandising practices to target our primary and

06

secondary market groups.

From there we devised our strengths, weaknesses, and competitive advantage within the intersecting industries. 59

07

C O M P E T I T I O N A N A LY S I S

Competition Ana Competition Analysis


C O M P E T I T I O N A N A LY S I S

P R I M A RY C O M P E T I T O R S - R E TA I L Inclutail’s direct competitors are those retailers similarly attracting liberal, independent women of color in the 25 to 40 year age range. They are most often boutiques or start up vertical fashion retailers with one to five locations, given how our target market enjoys finding unique pieces outside of the fast fashion assortment. The majority will operate both e-commerce and brick and mortar. Most have been in operations for less than ten years.

Because footwear and beauty comprise about 40% of our product selection, direct competitors are those that also carry accessories or add-on items alongside apparel. Inclutail does not seek to compete with beauty or footwearexclusive retailers.

60


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Gravel & Gold

Gravel & Gold operates a brick and mortar shop in the San Francisco Mission District. The brand is ten years old in 2018. The store sells women’s apparel, accessories, jewelry, beauty and home goods both through that channel, and through e-commerce. Most items are designed by the shop owners and sold on site. Some products are also distributed through partner retailers, although this is for a fraction of their total assortment volume. Gravel & Gold will sell other local artists’ products as well, using the significant drawing point of feminist entrepreneurship and design.

61

Source: gravelandgold.com


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Gravel & Gold

Products range in unit price from $100-$350 for apparel. For that range, and the relaxed and easy style aesthetic, their primary market is older and of a higher income than that of Inclutail. They are more directly in competition for Inclutail’s secondary market. Gravel & Gold is not exclusively focused on attracting minority shoppers, but their web and brand presence demonstrates great diversity in the shoppers, designers, and employees. Their customers are typically professionals residing in San Francisco’s dense city core.

The store will host certain sales for marketing purposes, like sample sales or pop-ups for selected designers. Products will also see regular markdown strategies so that they are offered online even as los as 40-50% off the original price.

Source: gravelandgold.com

62


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Gravel & Gold

The brand has a great sense of certainty that is easily conveyed in their customer-facing materials. Being a vertical retailer, they have significant control over product quality, design, volume, and pricing. They distribute through a few partnerships, which increases the channel volume with limited additional resources required on the company’s behalf. While residing in a popular part of town, it seems the brand relies upon a combination of foot traďŹƒc, word of mouth, and online review sites to bring in new customers. Their page notes that they host events and workshops. These activities are another method of marketing that can increase their awareness by the target market. The brand could certainly advance with a stronger marketing strategy. Another notable improvement to their process could come with increasing their order volume for production. By distributing through additional partnerships, the brand could increase the amount produced, presumably lowering the unit cost for goods that they are presently designing themselves. 63

Source: Instagram @gravelandgoldsf


C O M P E T I T I O N A N A LY S I S

S E C O N D A RY C O M P E T I T O R S - R E TA I L Our secondary group of direct competitors are retail consulting firms. With a more obvious industry correlation between apparel retailing and apparel consulting, these businesses are often the first sought out by our potential clients when in need of a retail operations or merchandising resolution. There are also more firms with this area of focus in the San Francisco area. Global companies such as Accenture, Booz Allen, and Boston Consulting Group all have offices in the city and often a second in Silicon Valley. Despite their significant market share, these corporations are not direct competitors for Inclutail, because their vast resources and target clients are greater than what our small business can support at this time.

64


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Wildfang

Wildfang is an apparel, jewelry, footwear, and accessories company catering towards LGBTQ women dressing under the Tomboy style trend. In the media they are commonly referred to as a feminist fashion brand. They operate three brick and mortar shops in Oregon (2) and New York City (1). They also have a robust e-commerce site that includes international shipping. The retailer, which designs many of its core products, has been in operation since 2010. Presently they do not do distribution of their products through partnerships, however their product assortment includes pieces sourced from outside manufacturers and designers.

65 Source: Racked.com


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Wildfang

Of our competitors, Wildfang has perhaps the largest product category assortment. In apparel they oer tops, bottoms, and suits (vests, blazers, and trousers). Their additional items include casual footwear, and menswear dress shoes. Also available are apparel accessories, jewelry, bags, intimates, and novelty gift items. For apparel their prices range from $20-$150. Like Inclutail, their target market is a member of the gay community and seeks apparel that expresses that membership through the style trends indicative of the identity group. With similar pricing and origins in the Pacific Northwest, the hobbies, income, and social dynamics of the two companies are closely aligned as well. Perhaps the

Source: Wildfang.com

strongest variance is Inclutail’s simultaneous desire to attract an intersectional target market of LGBTQ female shoppers of color. 66


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Wildfang

Wildfang uses a standard markdown calendar practice, having sales and discounted items available on their webpage across all categories. They also host sales as part of their marketing campaign strategy and to encourage rapid sell through. The company has an international presence online with creditable interviews and links driving up their search engine ranking. They of course operate social media channels and, with such. Vast category assortment, have proven strengths in merchandising operations as well. As the strongest competitor to Inclutail at this moment, perhaps their only weakness will in time be the lack of a physical presence in the San Francisco area. When Inclutail raises its store visitor volume, or is able to engage in e-commerce as well, they will become the more convenient and obvious choice to convert current Wildfang shoppers. 67

Source: Pinterest.com


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Taylor Jay

Located in Oakland, CA , Taylor Jay is a black-owned apparel brand operating brick and mortar as well as e-commerce. It has been in operation since 2015. They sell casual to semi-dressy women’s apparel and swimwear. Most come in soft, neutral fabrics that are sourced, rather than designed, by the designer. At a similar price point, aesthetic, and with a vertically integrated retail process, the brand attracts Inclutail’s African-American shoppers. The pricing and target market for Taylor Jay Collections is a slightly higher income and older shopper than the average for Inclutail’s primary market, more akin to our secondary customer market. Apparel ranges from a unit price of $70-200. These individuals are single or parents of older children, living in two income households. Most of their entertainment is in culinary activities or the arts.

68 Source: taylorjaycollection.com


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Taylor Jay

As a branding strength, Taylor Jay offers a unique customer experience tool where shoppers can book appointments via the website to have a private shopping session with the designer, Taylor Jay. There is certainly strong brand loyalty cultivated with this sort of treatment. With all products designed by the owner, the assortment is cohesive, but limited and with slower turnover than our multi-brand platform. Products from past seasons appears online alongside recently introduced pieces. Perhaps it is this limited selection and aesthetic that slows turnover. Additionally Taylor Jay does not employ any discount strategy on their merchandise to speed up the sell-through rate. With no sales, she must constantly source new clients to earn a profit on purchased supplies.

Source: facebook.com Taylor Jay Collection

69


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Bulletin

Bulletin is a feminist product retail company that specifically sources and sells products from female-led brands. The company has been in operation since 2015 with its e-commerce platform and two brick and mortar stores in New York City. As the retailer is specifically a site for other products and does not design its own merchandise, there are no additional channels of distribution. Products in apparel, jewelry, accessories, novelty gifts, home goods and beauty are all available through both channels of distribution. Apparel products range from a unit price of $20 to $200. The platform does not host regular markdown schedules, perhaps by agreement with their partner suppliers. Many of the goods are without a specific season or deadline to sell. With designs of a rather pro-feminist aesthetic, many goods can stay available at full price for an extended period of time without going out of style. While this may be true, it does give Bulletin the same weakness of operations as befalls Taylor Jay. They must carry a tremendous amount of stock when sell through rates decline, and they need to constantly receive new visits to the shop if exciting customers

Source: quiet-creature.com

cannot be given the opportunity to purchase as a discount. 70


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Bulletin

Otherwise Bulletin has a strong range of products.Holding the debt as a retailer that does not design in-house is a risk and a weakness. However the company has proven able to reach profitability through investor funding and sales. Their products seem well-tailored to their target market such that they should expect easy conversion and brand loyalty when their target market is introduced to the retailer. That target market as women in large liberal urban centers, usually those with high LGBTQ populations. Their usual customer is caucasian woman aged 18-35 who is either in college or has an undergraduate degree, most often in the social sciences. They are employed with moderate wages for their living location. Certainly the presence and awareness of Bulletin is stronger on the east coast where the shops and funding were put into place, and has only an online presence in our San Francisco/Bay Area market.

71

Source: bulletin.co


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Product

Women’s Apparel, Beauty and Accessories

Women’s Apparel, Home goods, Beauty, and Jewelry

Women’s Apparel

Women’s Apparel, Footwear, Jewelry, and Accessories

Price Range

$50-250

$150-400

$70-200

$20-150

Location

South San Francisco CA

San Francisco CA

Oakland CA

Portland OR

Channels of Distribution

Brick and Mortar

Brick and Mortar, Ecommerce, Brick and Mortar, Brick and Mortar, Ecommerce Partner Retailers Ecommerce

Target Market

LGBTQ women of asian or SF professionals or married hispanic descent in SF/Bay Area, women age 30-40, Caucasian Age 27-35, $90-130,000 income or African American

Strengths

Weaknesses

Few direct competitors for primary market.

Limited distribution channel

East Bay single or married women age 30-40, African American

Brand loyalty through Breadth of distribution personal shopping program; channels and marketing tactics Quality of materials

High COGS

No promotional strategy to sell through merchandise, Limited aesthetic variation

Tomboy women in liberal urban cities, Age 20-35 Wide assortment, International online brand presence, Practiced operations No physical presence in San Francisco/Bay Area CA 72


C O M P E T I T I O N A N A LY S I S

R E TA I L C O M P E T I T O R S

Indirect Compe Indirect Competitors Our indirect competitors are apparel companies targeting our same gender and age group. They may be brick and mortar or e-commerce. However, they are primarily focused on serving a caucasian, traditionally sized shopper.

Their limitations on inclusive assortment, visual merchandising, or advertising make them ideal candidates for our diversity and inclusion services, but their brand strategy shows no interest in minority group shoppers visiting their stores or sites. We expect to convert brand loyalty from these indirect competitors easily, for our primary target market.

73


C O M P E T I T I O N A N A LY S I S

P R I M A RY C O M P E T I T O R S - C O N S U LT I N G The primary cohort of competitors for Inclutail are consulting firms of a similar size that are focused on diversity and inclusion work. More often than retail consulting, these businesses are sought out when the client needs to address diversity.

In the San Francisco area, the standout consulting firm in competition with Inclutail is Paradigm. Paradigm has perhaps the strongest brand recognition for diversity consulting in the region, boasting Asana, Spotify, Twitter and the The New York Times as some of its clients.

In order to compete with this firm, Inclutail’s advantage comes from its expertise in retail merchandising. Our competitor addresses diversity for the workplace environment, rather than towards customer experience. It is vital to highlight this trait for potential clients. Additionally, Inclutail must focus on optimizing its search relevancy through the various channels (search engines, business directories, professional conference appearances) that clients use to find firms to resolve their diversity and inclusion needs. Paradigm has an insecure search engine ranking, landing below companies advising in different industries or geographic regions. This is a week point where Inclutail marketing can make significant gains 74


C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Paradigm

L O C AT I O N A N D S I Z E

SERVICES OFFERED

Located in San Francisco, the office for Paradigm houses

Paradigm cites itself as a diversity and inclusion leader

approximately 20 employees. While this size limits the

through three branches of services: assessment, consulting

size of project teams, the company does offer offset

and advising, and workshops and trainings. They are

services to business in the neighboring Bay Area and

primarily focused on workplace diversity. Assessments

west coast of the United States. Paradigm was founded in

generate data-driven landscapes of the culture of inclusion

2014.

in the workplace. Consulting may build solutions based upon the data found, towards the goals of the client. Workshops and trainings are offered as educational opportunities to strengthen or ensure the results of the consulting work.

75


C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Paradigm

PA S T P R O J E C T S

MARKETING

Paradigm has conducted assessments and advising

Paradigm is very specific in their advertising strategy,

projects for a range of companies not limited to Airbnb,

submitting imagery that promotes their services and directs

Asana, Box, Instacart, Pinterest, Quantcast, Slack, Stripe,

interested businesses to their site mostly through digital and

and Udacity. These are primarily fast-growing consumer-

print business industry publications. As a niche consulting

facing tech companies located in the San Francisco/Bay

topic, they are reliant upon word of mouth and industry

Area. The thread of similarity that these companies all

recommendations from past and interested clients.

provide consumer services or products makes Paradigm’s services most closely aligned and in competition with Inclutail’s. 76


C O M P E T I T I O N A N A LY S I S

S E C O N D A RY C O M P E T I T O R S - C O N S U LT I N G Our secondary group of direct competitors are retail consulting firms. With a more obvious industry correlation between apparel retailing and apparel consulting, these businesses are often the first sought out by our potential clients when in need of a retail operations or merchandising resolution. There are also more firms with this area of focus in the San Francisco area. Global companies such as Accenture, Booz Allen, and Boston Consulting Group all have offices in the city and often a second in Silicon Valley. Despite their significant market share, these corporations are not primary competitors for Inclutail, because their vast resources and target clients are greater than what our small business can support at this time.

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C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Accenture

L O C AT I O N A N D S I Z E

SERVICES OFFERED

Global consulting company with offices in San Francisco

They consult retail companies (food, service and fashion

and Silicon Valley. Teams are able to operate offsite for

industries) to answer specific questions that will enhance

clients not immediately in those locations. The company

their business practices. Given the high cost per project, this

has been in operation since 1989.

company is typically hired by successful retailers with national or international locations or operations. Accenture’s services range from consumer insight research, to structural corporate office changes, and on to product and sales development and improvement.

78


C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Accenture

PA S T P R O J E C T S

MARKETING

Recent projects by Accenture include a study for

Accenture affords a broad marketing and advertising

Specsavers on the transition into e-commerce and

strategy with great consistency in their branding. Their brand

implementation of a digital system. A similar project was

and product advantages can be clearly communicated

completed to establish e-commerce at a maternity clothing

through their advertisements which appear in printed and

retailer.

digital business publications, public area billboards, and even video commercial ads through social media shares and

Projects go beyond retail operations as one European fashion company is cited as hiring the consultancy to advise upon their leadership team’s structure and skill 79

building strategy.

television advertisements.


C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Point B

L O C AT I O N A N D S I Z E

SERVICES OFFERED

Point B has ten locations in major cities across the

They offer technology, marketing, product management,

country, the closest in competition with Inclutail being their

mergers and acquisitions, organizational effectiveness,

Bay Area branch. As with many consulting companies,

operations, and project leadership services to multiple

their teams are mobile and able to provide direction for

industries. Some of their past clients have included Fortune

clients located outside of this immediate geographic area

50 retailers and Expedia, in industries like energy,

as well. Point B was founded in 1995.

healthcare, retail and consumer products, media and entertainment, and technology and communications.

80


C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Point B

PA S T P R O J E C T S

MARKETING

Already they have a proven record of success with projects like

Similar to Accenture, Point B is able to afford print and digital

customer experience training for consumer products store, market

ads, although most of their focus stays in business-centric

testing new restaurant ideas, retail inventory process redesign, and

circulations. Compared to the global firm, they still benefit

integrating new technological systems into existing businesses for

significantly from search engine returns and industry word of

greater performance. Compared to The Wright Consultants, Point B

mouth.

is the more active competitor, with more projects completed with more recognizable brand across the country. Their ability to do system integration for their clients onto new programs opens up a world of project opportunities with the only requirement being an 81

ability to teach and install a system.


C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Product

Inclusive Retailing

Diversity and Inclusion for Human Resources

Management Consulting for Retail Companies

Management Consulting for Retail Companies

Price Range

MidRange

MidRange

High-Cost

MidRange

Place

San Francisco

San Francisco

Global (incl. San Francisco)

San Francisco, Other US Cities

Marketing Channels

Facebook, Industry Industry conferences, Twitter publications, Billboards, Print

Television, print, online publications, Facebook

Facebook, Industry publications, Online publications

Target Market

MidSize retail firms with brick and mortar in San Francisco/ Silicon Valley Tech Companies Bay Area

Global or High-Profit Corporations

Growing, Moderate-Profit Retailers

Seemingly without competition in niche field of diversity and inclusion with stellar brand penetration into local market; Depth of team for multiple simultaneous projects

Large consulting teams with impressive pedigree, vast wealth towards research and rate of return; Depth of team for multiple simultaneous projects

Penetration into multiple markets gives strength to operations towards retail consulting projects.

Limit public focus on diversity and inclusion in corporate structure slows demand for service.

Any new services or consulting tactics must be able to scale up to global. Slower pace of innovation or evolution.

Small sites across the US feel disjointed and some weakness in individual unit operations.

Strengths

Weaknesses

Connectivity of inclusion to market diversification

Services and theories not frequently sought out by clients. Low capitol to fund extensive research projects.

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C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Past Projects Past Projects PA R A D I G M

ACCENTURE

Provide Unconscious Bias Training

Transition to E-commerce

Customer Experience Training

Create Corporate D&I Strategy

Implementing Digital Systems

Market Testing for Food Industry

Research Business Culture Shortcomings

Consumer Research on Retail Operations

New Tech System Integration

Attracting and Retaining Diverse Hires

Data Collection and Utilization

Mergers and Acquisitions, IPO Preparation

Merchandise and Supply Chain Effectiveness

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POINT B


C O M P E T I T I O N A N A LY S I S

C O N S U LT I N G C O M P E T I T O R S

Indirect Compe Indirect Competitors While global consulting firms are not in the realm of competition yet, they do stand as direct competitors to Inclutail's future business. The most common indirect competitors to consulting are choices that make outside help unnecessary. In some instances, a business may recognize their lack of inclusive retailing and find a method to remove the need for diversity development. They may be able to pivot their target market to a group that has similar buying power, but does not place high value upon inclusivity in shopping. In our assessment of the macro and micro environments around diversity and inclusion in the United States, it is our belief that these alternative markets will begin to diminish and this option will be chosen infrequently. Instead, many businesses, particularly small companies with less overhead to spend on consulting, may look to educate themselves to resolve their issues of diversity and inclusion. In the San Francisco area alone there are many companies offering diversity training programs and even university courses available for public enrollment on the subject matter. These may be two day sessions or month long educational endeavors. Retail entrepreneurs may choose to become self-taught so that they can address their own needs for diversity development over time. We see activities-based workplace culture sessions as popular alternatives similar to the above indirect competitor. With positive intentions, these programs and services can be helpful to spark interest in igniting change, and gather together many employees for team building activities and interactive sessions regarding diversity and inclusion. Typically these are effective towards organizational change, as opposed to retail operations. These products can seem to offer a succinct educational course in diversity and inclusion, for a fraction of the cost. Inclutail will have to challenge this competition by highlighting the degree of research necessary for companies like ours to recommend the correct course of action for broad effective change to the business and culture

84


Strengths •

Low competition for diversity and inclusion consulting applied specifically towards retail operations

• • • •

Unique branding through retail operations

Breadth of research opportunities via boutique

Connectivity of employees to local minority communities

Opportunity to conduct projects for full organizations as well as individual brick and mortar locations multiples the potential volume of work for each client attained

Weaknesses •

Ability of other diversity and inclusion firms to expand into retail through strategic hiring

Currently low financial incentive/affordability to diversity and inclusivity development in retail businesses

Low bandwidth for multiple client projects run simultaneously with small staff

85

Advising on a broad range of minority market traits simultaneously can lead to errors


Opportunities •

Increased US population diversity in age and race/ethnicity drives value of multiculturalism in social and business systems

Increased media coverage and public relations events demonstrating value of diversity to large US corporations

New sexual orientation and gender identity classifications for Millennials and Generation Z isolate retailers and require diversity-focused expertise to remain up to date on growing identity categories

Threats •

Proposed and existing restrictions on foreign immigration and tourism decrease predicted rate of population diversification

Institutionalized threats to minority identities (transgender, nation of origin) may reduce public presence and financial incentive towards inclusivity. 86


C O M P E T I T I O N A N A LY S I S 87

I N C L U TA I L W I L L B E M O S T S U C C E S S F U L W H E N P R O M O T I N G T H E F O L L O W I N G

Competitive Ad Competitive Advantages


C O M P E T I T I O N A N A LY S I S

C O M P E T I T I V E A D VA N TA G E S

1

The D&I staffing perspective Lead by a CEO who comes from diversity and inclusion training for community builders and college campus leaders, we have a strong sense of how identity connects people with each other through the spaces that they share. We believe that empathy and impact are the most important elements for the shopping experience. Our store will be designed with all sensory elements in mind. We seek to make the marginalized feel centered through positive representation and to create accommodations for shoppers’ needs before being asked. So that shopping here feels natural and anticipatory for a diverse shopping body. 88


C O M P E T I T I O N A N A LY S I S

C O M P E T I T I V E A D VA N TA G E S

2

Low-barrier to consultation Our professional development programs offer target clients a low-cost and low-commitment introduction to our services. Professionals in visual merchandising, retail staff management, and product merchandising may attend our educational events either as a public or private event. In this manner, retail company influencers witness some of the valuable insights and actions recommended by our knowledgeable staff, even if unable to yet commit to a full-cost project.

89


C O M P E T I T I O N A N A LY S I S

C O M P E T I T I V E A D VA N TA G E S

3

Connection to fashion Sage advice comes from experience. Inclutail knows fashion retail to the degree of empathy required by our clients. As participants in the industry, we are attending similar events and reacting to similar market and economic trends to predict the upcoming needs of our clients. Our inclusive sales floor is a testing ground and proof for our recommended strategies.

90


C O M P E T I T I O N A N A LY S I S

Differentiation Business Differentiation Inclutail differs from its competitors in the plethora of hands-on activities and connections to up and coming brands that are distributed in our shop. The boutique is a fully-operational space providing goods from a steady rotation of suppliers, all touted for their designs which cater towards niche or minority consumer groups. The presence of unique designer goods attracts our target retail market to the space.

In that same retail space we conduct events for client companies. This is a unique opportunity for interaction between the consultants and retail staff looking for professional development. They may attend our educational programs or visit the shop for us to facilitate connections to our directory of designers as they learn about diversifying their product assortment.

91


C O M P E T I T I O N A N A LY S I S

D I F F E R E N T I AT I O N

The CEO background in diversity and inclusion education and leadership training offers a unique and experienced lens towards diversity and inclusion work in retail, when paired with the MFA in Fashion Merchandising. Unlike traditional retail consultants, we are able to provide onsite microaggressions trainings and tools towards inclusivity that goes beyond superficial statements of intent. Having trained young adults in inclusive leadership, we can use similar training ideas and conversations with retail staff to help them gain a deeper sense of empathy when working with customers in stores. Empathy, paired with researching about customers who are different from you, can go a long way in reducing the risk of conflict in a brick and mortar setting.

We will use the consumer data collected for our clients to recognize larger trends in the retail industry and predict new strategies for retail clients. Customers are often telling us what they want and need. Simple changes to an assortment or a physical store layout could make a retailer newly accessible and desirable to a market segment that was once unattainable.

Our boutique operations lets us practice finding products and visual merchandising elements based upon trends of demand from consumers. As trends and minority groups evolve, so does our store. Customers return to witness the adaptations in our shop as we regularly test out new visual merchandising and store design elements to show inclusivity and positivity towards different minority shopping groups. Visitors will find a new store containing new products, with an ever-present sense of welcome and connectivity from our staff. 92


KNOWING OUR CUSTOMERS

CONSULTING

The target market for Inclutail is willing to take risks to increase their

own brand, or of competitors, and are ready to push their operations further. Secondary and tertiary clients are driven but consumer demand for inclusive action, ignited by negative public events in their own or

05

market share. They have seen success from the diversity work of their

competitor stores. In either market, Inclutail can move the needle a bit further, making the industry ever more inclusive by enhancing the protocol and practices of another client.

RETAIL

06

Because Inclutail has a diligence towards diversity and inclusion, our target market is broad, but primarily two traits are true for them. First, they identify with one or more US minority group statuses. Second, that minority trait is negatively perceived by the consumer while in a brick

07

and mortar shopping environment (as determined by landscape surveying of individuals about shopping experiences who have the same or similar demographic traits). We target consumers who feel either physical or psychological distress during their shopping 93

experience.

08

CONSUMER RESEARCH

Consumer Resea Consumer Research & Analysis


CONSUMER RESEARCH

C O N S U LT I N G S E R V I C E S

Primary Market Primary Market Facts •Owners of small retail stores •Operating in mid-sized cities within the Bay Area suburbs and MidWest major cities •Operate 1-5 stores within the region or e-commerce only •Revenue ranges from $250,000- 400,000 annually

Our target market during the first year of operations are small retail owners willing to try out low-cost and low-commitment consulting projects to improve their operations and brand perception. Many are e-commerce based, and need a strategy to expand their product assortment and inclusivity of visual elements on their platform and marketing campaigns. This is expected to increase revenue potential by reaching untapped markets. Brick and mortar clients seek inclusivity consulting as the demographics around their local area and market change. They need assistance as their original target market population has moved farther from their store(s) and a new audience is in proximity. These groups will be a most realistic first choice for a company with a small staff and low-cost projects. Target brick and mortar clients are sourced through news sources discussing social migration and demographic data indicating a significant shift from the previous population. We found our e-commerce options by looking for keyword bids in specific regional areas

94


CONSUMER RESEARCH 95

PRIMARY

Target Clients Target Clients Name

Location (HQ and Projects)

Product Category

URL

Show Me Your Mumu

Los Angeles CA

Young Women’s and Maternity Apparel

www.showmeyourmumu.com

Mikarose

Provo UT

Young Women’s Modest Apparel

www.mikarose.com

Shabby Apple

Salt Lake City UT

Young Women’s Modest Apparel

www.shabbyapple.com

Ella

San Jose CA

Young Women’s Apparel and Accessories

www.ellasanjose.com

Stock Mfg Co

Los Angeles CA

Men’s Apparel

www.stockmfgco.com

Catherines

Indianapolis IN

Women’s Plus Size Apparel and Intimates

www.stores.catherines.com


CONSUMER RESEARCH

C O N S U LT I N G S E R V I C E S

Secondary Mar Secondary Market Facts •Directors of Retail Operations •E-commerce retailers, with 4 or more years of operation •Their earning potential falls within a range of $450,000- 800,000 in annual revenue •Operational headquarters in major cities within California. •Transitioning into brick and mortar

Secondary target clients have consulting budgets that align to Inclutail’s low to mid cost and small team structure of Inclutail. Primarily they seek sales staff training services as the e-commerce start-ups plan to introduce brick and mortar distribution to their business structure. Sales team training in a city as critical of diversity as San Francisco can impact early media reports about the stores. If not transitioning to brick and mortar, secondary clients request our services in order to diversify their target market during a secondary wave of brand and revenue growth. Given their youth, 50% of customers order within California, and the rest are dispersed across the country in varying secondary hubs. Again referencing our consumer data demanding more size inclusive clothing and pricing expansion, these companies would value from expansion based upon direct customer market research. Attaining these clients is best achieved via electronic communication and networking with retail operations decision makers for those moving into brick and mortar, and merchandising department leaders for those retailers looking to remain e-commerce and expand their target market.

96


CONSUMER RESEARCH 97

SECONDARY

Target Clients Target Clients Name

Location (HQ and Projects)

Product Category

URL

Stitch Fix

San Francisco CA

Women’s Apparel (Styled Assortment)

www.stitchfix.com

Wilkes Bashford

San Francisco CA

Eight + Sand

Los Angeles CA

Men’s and Women’s Apparel and Accessories

www.eightsand.com

Le Tote

San Francisco CA

Women’s Apparel (Styled Assortment)

www.letote.com

Bungalow Clothing

San Francisco CA

Women’s Apparel (Styled Assortment)

www.bungalowclothing.com

Natalie Attired

San Francisco CA

Women’s Apparel (Styled Assortment)

www.natalieattired.com

American Giant

San Francisco CA

Men’s and Women’s Apparel and Accessories

www.american-giant.com

Vitamin A by Amahlia Stevens

Los Angeles CA

Women’s Swimwear Designer

www.vitaminaswim.com

wilkesbashford.mitchellstores.com


CONSUMER RESEARCH

C O N S U LT I N G S E R V I C E S

Tertiary Market Tertiary Market Facts •Directors of Human Resources •Mid-sized retail corporation •Yearly annual net profit between $5-20 million •Beginning their adoption process of more inclusive diversity acts after some product expansion success. •Operate 50 to 300 brick and mortar stores within the United States. •Headquarters in California, the MidWest, or the Mid-Atlantic.

Given the size of such an organization, the consulting firm is expected to provide a strategy for the practices of a single store or stores within a tight region of the country. However, in order to be elected for such projects, marketing must still be directed toward the headquarter locations. Human Resources at headquarters use these projects to maintain a positive public image of the company within HR and diversity and inclusion networks. Heads of merchandising see value in expanding their target market, and may have had some success with this on their own. Consulting services best target the performance of the client’s lowest performing sites, which presumably have inappropriate merchandise or retail experience designs that limits shoppers’ purchasing rate and brand loyalty. As researchers in diversity and inclusion for retail, we can offer a smooth transition for these retailers to again increase their market reach to groups less familiar to the client’s marketing staff.Considering our market research feedback on the need for size inclusive apparel, we looked for clients that lacked sufficient product ranges or plus size marketing representation to include in this target list. Other companies added are brick and mortar heavy companies that are showing poor sales performances in recent quarters.

98


CONSUMER RESEARCH 99

TERTIARY

Target Clients Target Clients Name

Location (HQ and Projects)

Product Category

URL

American Eagle Outfitters

Pittsburgh PA

Young Men’s and Women’s Apparel, Beauty, Footwear, Accessories

www.ae.com

Aritzia

SF/Bay Area, Chicago IL and Detroit MI

Women’s Apparel

www.aritzia.com

Abercrombie & Fitch

New Albany OH

Young Men’s and Women’s Apparel, Beauty, Footwear, Accessories

www.abercrombie.com

Wet Seal

Irvine CA

Women’s Apparel

wetseal.com

Urban Outfitters

Philadelphia PA

Young Men’s and Women’s Apparel, Beauty, Footwear, Accessories

urbn.com

Maidenform

Bayonne NJ

Women’s Intimate Apparel

www.onehanesplace.com

American Apparel

Los Angeles CA

Young Men’s and Women’s Apparel and Accessories

www.americanapparel.com

Brandy Melville

Los Angeles CA

Young Women's Apparel

ww.brandymelvilleusa.com

Everything But Water

Orlando FL

Women’s Swimwear

www.everythingbutwater.com

A’GACI

San Antonio TX

Young Women's Apparel, Footwear, and Accessories

www.agacistore.com


100

PRIMARY MARKET PROFILE


101

SECONDARY MARKET PROFILE


102

TERTIARY MARKET PROFILE


CONSUMER RESEARCH

Market Size Market Size C O N S U LT I N G S E R V I C E S

In the United States, boutique consulting firms report an average of $150-200,00 earned per year per consultant (GEP). This is for established companies with years of growth to acquire new clients. Within our first region of operations, San Francisco/Bay Area, there are fewer than 100 active management or boutique consulting firms that include retail operations projects in their service list. Given the technological hub that is San Francisco, and that low competition, we can expect it is a location that will attract many searches by target clients. Inclutail consulting expects an annual growth rate of 10% to reach the rate of $150,000 per consultant in five years. Given that rate of success, for our year one operations we anticipate our founding client to generate $90,000 in revenue for consulting. With a profit of about 70,000 when considering consulting operational costs and overhead, even a much less successful first year for our full-time consultant should prove profitable for the company.

103


CONSUMER RESEARCH

R E TA I L B O U T I Q U E

Primary Market Primary Market Facts •25-35 years of age •Female, Gender-nonconforming •East-Asian or Hispanic •Lives in urban city centers •Single or in a partnership with no children •LGBTQ •College educated •Annual income of $65,000-120,000 •Hold technical roles in small to mid-range companies that allow for greater personal expression and diversity in the workplace •Likes to discover new activities, bars, restaurants and stores to then share with her friends, colleagues, peers •Seeks out being and appearing busy given her youthful restlessness. Enjoys feeling in the know on current events and trends. •Enjoys active outdoor activities and cerebral games or activities. 104


CONSUMER RESEARCH

R E TA I L B O U T I Q U E

Secondary Mar Secondary Market Facts •35-45 years of age •Female •African American, Arabian Peninsula •Single or dating •Does not have children, but plans to start a family within 3-5 years. •Visits San Francisco for social activities, shopping, nightlife •Holds a bachelor degree, most hold or are pursuing graduate degrees •Annual income of $100,000-130,000 •Works in business development or marketing •In search of pieces that fit non-traditional body shapes/sizes or complex skin tones •A traditionalist in terms of social dynamics (nuclear families, gender norms) •Feels she should be on positive social terms with wide groups of people due to social alliances such as college, sorority, and ethnic background.

105

•Enjoys activities that allow for conversation and social connection. Examples include wine tastings, book clubs, card game tournaments.


CONSUMER RESEARCH

R E TA I L B O U T I Q U E

Tertiary Market Tertiary Market Facts •25-35 years of age •Female •Middle East or Southeast Asian •Single or dating with no plans for children in the near future •Public transportation commuter, Lives outside of urban city center in south peninsula or east bay •Holds a bachelors degree •On to second career position, transplanted to the United States for work. Typically works in recruiting or information technology. •Annual income of $70,000-110,000 •Connected to other expatriates from the same global region. •Visits San Francisco for social activities •Wants to feel adapted to new environment by knowing local people, places, and rituals. Regularly this causes feelings of dissociation from her home town. •Enjoys crafting and artisanal activities. To feel local she attends plenty of neighborhood festivals around food, music, art, or dance.

106


R E TA I L B O U T I Q U E

Primary Market Profile JESSICA Jessica is 27. She lives in San Francisco, having found great roommates for a place in Laurel Heights. She par=cipated in a computer science bootcamp and now works as a Front-End Developer for a start up. In that role se makes 98,000 annually, as she is just star=ng out She is new to the area, moving out there aJer the bootcamp. Aside from her roommates she is connected to few friends. Usually they will meet for drinks or a weekend event that someone finds and invites the group to aNend. Mostly Jessica busily splits her =me between work and da=ng. She shops for as a past =me or something to do with friends. Usually she buys pieces either appropriate for the office or for dates. She does not try to compete with the other women in her office as most fashionable. Her wardrobe is quite simple, so she likes structural pieces that are slightly understated, but make her feel unique. She takes pride in avoiding fast fashion. To stay connected Jessica uses Facebook, Instagram and listens to Podcasts geared towards Millenials in tech. 107


R E TA I L B O U T I Q U E

Secondary Market Profile VA L E R I E Valerie is 32 and has lived in the Bay Area her en=re life. She even aNended college close to home. From this, she feels close to the cultural mixing pot and social liberalism of the city. Currently she lives in Emeryville, not too far away from her family’s homes. Valerie earns 110,000 working as Manager of the community management department for the tech company where she has been for the past five years. Being a Bay Area na=ve, she has plenty of friends from college and childhood. Most oJen she spends =me with college friends and coworkers. They oJen plan to go to music fes=vals around California and Las Vegas. She enjoys shopping, choosing to get new items for the events and vaca=ons that she aNends. As a fes=val goer, Valerie likes bold statements that are on trend and make statements about her iden==es and values. For vaca=on goods she is usually going to the Caribbean where color and Afrocentric goods are applauded. To stay up to date, Valerie follows journalists and celebri=es on TwiNer, and watches news clips online from na=onal news channels. She enjoys reading, and tries to consumer a variety of nonfic=on and fic=on pieces.

108


R E TA I L B O U T I Q U E

Tertiary Market Profile AMARI Amari is 29 and lives in Daly City with two roommates, both of whom are also expats from India. She moved to California two years ago aJer finishing her undergraduate studies in Melbourne. Currently she is an AJercare Teacher Coordinator for a private school in the peninsula She makes 70,000 in that role and is eagerly seeking a higher paying role in team management for an educa=onal or childcare facility. Amari is mostly connected to other expatriates in the area, learning the local society slowly through meet ups and other par=es. She’s s=ll finding new ac=vi=es and hobbies here, although she has really taken to yoga. Amari shops just for special occasions or events when she does not have appropriate clothes, or feels she has worn the ou[it too frequently. Because her work is with kids and can be messy, most goods that she looks for are of a nicer quality to be worn out to par=es, and the worn pieces become her everyday wear. To stay connected with friends and family across the globe, Amari uses snapchat, twiNer, and Instagram. She uses Flipboard and browses the internet for local news stories to learn 109

about American current events.


CONSUMER RESEARCH

Market Size Market Size R E TA I L B O U T I Q U E

There is a 2017 estimated population of 8.8 million people in the San Jose-San Francisco-Oakland metropolitan area by the US Census.

Using San Francisco County’s demographic breakdown from 2016, the region is 52% non-white - - - 49% are between the age of 18 and 44 - - - 15.4% belong to same-sex households Those statistics suggest a demographically relevant market of 2.2 million shoppers for the boutique located in San Francisco, CA.

The average consumer spends about $1800 annually on apparel and services (Bureau of Labor Statistics Consumer Expenditures 2016). For the region this suggests an annual buying power of $4 billion for that narrowed population. Inclutail requires just 0.006% of that market share in order to reach its annual retail goals for profitability in year one.

With an average product cost of $150, that profitability status is achieved when we reach 1200 to 2400 single item transactions in the year. Assuming each buyer only purchases once, we must convert 0.001% of the narrowed consumer market in order to reach a profit. 110


PRODUCTS AND SERVICES

Merchandising Inclutail operates two different assortments between

Our consulting services are broken into three segments, with pricing differentiated by the number of sites, employees, or size of company under inspection. Our

06

fashion products and consulting services under one brand.

projects all include a quantitative landscape analysis, which will be accompanied by a strategy report or on site training in the case of sales staff projects. Due to our limited staffing resources, we do not regularly offer

07

oversight on implementation. The majority of costs for these services come from electronic surveying services.

08 Our boutique houses products in apparel, beauty and footwear from about 6-8 designers, changing merchandise twice each season. Our products range from $20-200 in unit cost. Margins on our retail goods are approximately 111

60%. A majority of our products come from US suppliers.

09

MERCHANDISING

Merchandising


C O N S U LT I N G P R O D U C T S Inclutail offers consulting services geared towards visual merchandising and user experience protocols for beauty, footwear, and fashion apparel retail stores. Starting with landscape analysis, we determine the most appropriate and profit-generating target market expansions for a specific brand. Often these projects involve redesign of store layouts and visual merchandising, updates on marketing protocol, and new training materials for retail staff to create non-triggering environments for shoppers.

Inclutail’s boutique is relevant to retailers as well as casual shoppers. We regularly host educational events and seminars, partnering with local advocacy groups and geared towards retail professionals. The boutique is also a platform to display work by niche and diverse designers. While only a portion of our full directory is on display at any given moment, retailers can view samples from past collections and be connected with new designers via support from our consulting office. 112


MERCHANDISING

Service List Service List All projects begin with research on existing or expanded target markets to help our c l i e n t s d e f i n e t h e s e n e w g r o u p s . T h i s i s o u r f i r s t s e r v i c e c a t e g o r y, o f f e r e d t o s m a l l , m e d i u m , a n d l a r g e c l i e n t s . I t m a y b e p u r c h a s e d i n d e p e n d e n t l y, o r a s a p a c k a g e w i t h subsequent projects focused on specific operations elements. 1. Electronic Customer Assessment- Simple

3. Onsite Observation and Survey: For clients specifically

2. Electronic Customer Assessment- Targeted: Some

interested in the physical interactions between customers

clients will elect for a more targeted landscape analysis

with shop elements or staff. We will conduct non-intrusive

project, which is again available to retails of all three

observations in real time or via footage. Additionally, we

sizes. These projects collect a higher volume of

employ text-based exit surveys with customers. This

responses, or conduct additional research to answer very

provides qualitative data to illuminate observed actions

specific questions about a consumer market or business

and responses.

practice. 113


MERCHANDISING

Service List Service List Specific project goals surrounding development of diversity and inclusion in retail operations functionality are selected based upon the client’s project goals. Following an initial landscape survey to advise a course of action, these services are as follows: 4. Visual Merchandising Development: Inclutail will review the graphic

5. Sales Floor Interaction Development: For customers visiting

and physical products in client-selected brick and mortar stores.

brick and mortar locations, the retail staff are vital conveyors of

Focused on conveying elements of inclusion, we will provide a strategy

the company’s brand and values. Positive interactions can help

to implement design changes that make spaces safer or more

to drive brand loyalty and public perception. These projects

welcoming to the desired expanded target customer. Past projects

provide training materials and Inclutail-led sessions to

have included outfitting gender neutral changing rooms and providing

empower retail staff to navigate complex customer interactions,

translations on printed material and handheld shopping translator

with a goal towards non-triggering customer experiences.

guides for stores in locations with a large non-English speaking population. Similar projects may also be conducted upon the ecommerce site.

114


MERCHANDISING

Service List Service List Ta r g e t e d p r o j e c t s c o n t i n u e d ‌ 6. Onsite Sales Interaction Training: A more engaging training for retail sales staff found to have significantly challenging consumer visits, as

these projects will advise on-trend product from designers

determined by landscape analysis or onsite observations. These

catering towards their new target customer. Past projects have

trainings include simulated customer shopping interactions with staff.

focused, for instance, on suppliers offering plus-size products

Most suitable for small retail sites seeing local population demographic

or beauty products for a wide range of skin tones.

shifts, such that the majority of store visitors differ greatly from their original target market demographics. This is predicted for suburban locations with newly increasing immigrant populations.

115

7. Merchandising Development: For buyers and merchandisers,


MERCHANDISING

Service List Service List Our final service are educational packets. These provide current and comprehensible introductions to a new identity group or consumer market. Clients will select based upon the target market diversification they are pursuing. The presented data informs merchandisers on the psychographics of this minority group. It expounds upon microaggressions highly relevant to this group and other methods through which sales teams can create safe and inclusive environments during customer interactions. 8. Identity Education Packet: Current stock available for the categories

9. Identity Education Packet Custom: Clients can determine a

of body weight, religious modesty, race/ethnicity in the United States,

specific category of shopper for whom they require additional

transgender, and sexual orientation.

research and insight from this frame. Our team will create a customized set of training materials following through research on this previously unspecified category. 116


SERVICES BROCHURE

Project Category

Deliverables

Visual Merchandising Development

Customer Assessments

Qualitative summary of target customer market’s perception of the client brand, specifically towards actions demonstrating inclusivity.

Quantitative summary of shopper visits as compared to self-reported identities through text-based exit surveys.

• •

Internal Costs • • Mark Up %

• Project Price •

Electronic Surveying $270

Store guest electronic surveying through Benchmark Intelligence $2000

Onsite observation contractors $900

Onsite observation recording equipment $140

Qualitative and Quantitative report form target customer focus groups on existing brand visual merchandising.

Strategy report for visual merchandising protocol enhancements, not including implementation or oversight by the Inclutail team.

50%

Electronic Surveying $390-$1635

Onsite observation and surveying $4,200-5,000

Focus group participants (3) $1800

Brick and Mortar Personnel Training

Quantitative summary of shopper visits as compared to self-reported identities through text-based exit surveys.

Training to sales team provided by Inclutail. Topics include micro aggressions and social identity interactions based upon trends of target or actual customer market.

• •

50%

Survey and resultant Visual Merchandising Strategy $3000- $5000

Merchandise Assortment Development

Store guest electronic surveying through Benchmark Intelligence $2000

Travel to store as training site $150

Electronic surveying of target customer target markets and related markets with respect to perception of product assortment

Strategy report for recommended assortment modifications and directory of potential vendors to meet those new demands.

50%

Landscape Analysis and Customized On Site Staff Training $3250 - $4800

Electronic Surveying $270

100%

Electronic Survey Report and Assortment Protocol Strategy $600


MERCHANDISING

Sample Servic Sample Services VISUAL MERCHANDISING DEVELOPMENT We partnered with American Eagle Outfitters to review the retail

As a starting point of the company’s practices and policies

brand and its secondary brand, Aerie, for effectiveness in

towards diversity and inclusion, American Eagle Outfitters has a

marketing and visuals towards a diverse audience. With a target

relatively healthy brand and corporate profile. It certainly pales

market ranging from age 16-30, and having 80% of sales take

in comparison to Aerie, so further research focused just on the

place through brick and mortar, the shopping environment

original brand. For their brand profile, the company has shown

needed to be inviting. As Generation Z enters their target market

an extensive commitment towards body positivity and size-

with strong buying power, the retailer needs to confirm it can

inclusivity. This is true in their visual merchandising by hiring

appeal to this most diverse generation yet.

traditional, moderate, and plus-size models for both AEO and Aerie. 118


MERCHANDISING

Source: AE.com 2018

L A N D S C A P E A N A LY S I S The AEO e-commerce site demonstrates racial diversity in the models selected for cover images, and some variation in garment/fit models. That racial diversity tends to carry over into advertisements and marketing campaigns with similar enactment. It should be noted that models rarely have dualalignment as plus-size and non-white. The lack of plus size models of color, particularly for in-store visual merchandising still creates a size or racial representational imbalance towards model-weight, caucasian, female models. 119


MERCHANDISING

RESEARCH TOPICS

PROPOSED ACTION

• Research Topic 1: we will show focus group participants

There is a significant break between the diversity in Aerie marketing and the

the visual and audio marketing materials from recent

representation of target customers in stores for Aerie and for American

campaigns for both brands. Feedback is focused around

Eagle. More diverse models, with intersectional identities, should be hired for

what resonates positively with the group, and whom or

future campaigns to be posted in stores.

what seems to be missing or ignored by the marketing

Of notable demand are male and female shoppers in a plus size, or non-

platform.

model weight class. Also under-represented were male and female models of East-Asian, Southern Asian, and Middle Eastern descent.

• Research Topic 2: We will determine the shopping experience for both online and in stores. Focus group

In store visuals should push towards the degree of inclusivity that Aerie

participants will review slides of store floor layouts and

shows in its 2018 campaign, sampled below. Visual merchandising must do

standardized visual merchandising elements. We will also

more to keep up with the success of brand marketing campaigns.

send shoppers into stores without notification to staff, to be video recorded. In this way focus groups can call out things that they might experience in real time as a shopper inside of the store. Video recordings must take place regionally to account for cultural differences.

• Research Topic 3: Focus group members will review current and past merchandise assortments available online or in their geographic zone.

Source: Aerie Campaigns 2018

120


MERCHANDISING

Sample Servic Sample Services B R I C K & M O R TA R P E R S O N N E L T R A I N I N G We were invited by Azalea (www.azaleasf.com) to conduct a

We started by collecting historic demographic data on their

targeted assessment of customers at their brick and mortar site.

location, and comparing that to the brand’s historic target

They had recently opened the new store in Berkeley, CA and

market from the two previous shops. Their proximity to UC

found that the year one revenue did not match projections from

Berkeley, a large state university should connect them to the

their two previous locations in Hayes Valley and The Mission.

young, female, semi-affluent shopping group that frequents

The study would determine if there was some variation in the

their SF sites. We placed two staff members inside, observing

local market, in demographics of their shoppers, or in the brick

guests coming into and out of the store‌

and mortar environment that was making it less successful than its predecessors. 121


ASSESSMENT CONTINUED MERCHANDISING

Their observations were meant to determine if there were specific questions to be asked in a later electronic study, but not to draw firm conclusions or hypothesis. Some initial findings included a slightly lower ratio of white to non-white visitors in this site, indicating a slight uptick in the ethnic diversity of visitors to the Berkeley shop. Additionally, we found that more shoppers entered in groups in this store, as compared to the other locations (where we collected comparative data). Finally, we saw more men enter in San Francisco, than in Berkeley. With the assessment completed, we wrote a short electronic exit survey that could be accessed by any shopper after their visit. Our questions explored their motivation to enter the shop, experience with the staff, and decision whether or not to make a purchase. An outlying trend indicated the significance of groups in the new site. When one member of the group feels conflict in the shop, most respondents said they would all choose to leave without purchasing. Staff in Azalea were underperforming when attending to groups, as determined by secondary onsite observations of these specific interactions. 122


MERCHANDISING

S TA F F I N G D Y N A M I C S

Individual Assessment

Staff in Azalea were underperforming when attending to groups, as determined by secondary onsite observations of these specific interactions. Our project, upon

Greetings

Individuals

Groups

Micro-aggressive Language

Implicit Bias

Body Language

Passive Aggressive Actions

Strengths to Sales Conversions

Weaknesses to Sales Conversions

identifying staff as a weak point, became to train sales associates to improve their selling rate. Given Azalea’s small team size, we had the resources still to do more observations of staff on the sales floor, recording their interactions with groups specifically. Our observation teams crafted individualized reports on how each sales associate interacted with groups and individual shoppers. The reports pointed out areas of success, points for improvements, and seeming biases from the staff member that could or did seem to negatively impact the customer. These assessments can be used as staff training and development materials over the next year.

123


MERCHANDISING

Sample Servic Sample Services MERCHANDISE ASSORTMENT DEVELOPMENT An e-commerce start up founder reached out to us for advise

As is our standard, we began with an electronic assessment.

regarding their social media feed. Her brand, ____ sends most

We reached out to the mailing list and posted to social media

of its orders to the Southwest. Comments on Instagram and

sites to ensure we heard from those who were engaging with

Facebook raised complaint about the product assortment being

the brand already. We also ran surveys of non-associated

too limited. Most often the threads turned to issues with sizing

consumers who matched most of the target demographics, for

and body shapes.

a statistically relevant sample size.

124


MERCHANDISING

Source: Jackson-Stone Market Landscape

R E A L W O M E N H AV E C U R V E S We heard a breadth of comments, with an undeniable trend demanding expansion into larger sizes on the site. As one respondent wrote in the comments “real women have curves�. Customers were looking not just for larger sizes, but specifically goods for pear-shaped figures and petite heights. Our client agreed that these would be suitable expansions for their lines. With a strategy in place, we provided recommendations on manufacturers and manufacturing guidelines for these expanded sizing options on their core set of products. 125


MERCHANDISING

Retail Products Retail Products BOUTIQUE ASSORTMENT Inclutail’s boutique is a space designed to attract minority

Designer collections will be introduced twice each year.

shoppers interested in trends that express their values and

Products from the current collection are available for purchase

identities. When shopping at Inclutail, our customers find

onsite. Goods from past collections are available for browsing

pieces made for them. They experience a safe, non-

upon request (typically by client merchandisers) although the

triggering environment crafted through careful visual

sample goods cannot be purchased. For operations year one,

merchandising and staff training.

Inclutail will have only the brick and mortar distribution channel, with no e-commerce platform available. Online presence is for direct connection to consulting services, the designer directory, and marketing of upcoming events. 126


MERCHANDISING

YEAR ONE ASSORTMENT GOALS From our market research to consumers, it was obvious that weight

In beauty and footwear we were interested in providing for the

was a category of marginalization in women’s fashion that needed

breadth of skin tones and pigments that make up this world.

to be addressed. We started our search looking for designers and

Our beauty products complement or provide for many skin

manufacturers who offered goods in a wider range from extra small

tones, whether that be via pigment matching (like our

through extra large or plus size range, and fell in love with Louella.

foundation) or complementary enhancements (like blushes that

They are sourced for the fall/winter season.

have enough pigment for the deepest skin tones).. Our amazing footwear partner offers the selection of shoes seen

At the same time we wanted to learn more about the modest

here in a wide array of shades, so that everyone can have their

apparel industry, as many of our target clients were providing goods

heels in a true nude.

in this category. So we used the spring/summer season to look for goods that were fashion forward, able to stand alone or be paired with pieces for a modest look. 127


MERCHANDISING

S P R I N G / S U M M E R A P PA R E L

Sixty-Nine

JO-BLU-SN001

$275.00

Denim Bomber Jacket

Cotton

Sizes 0-14

Sixty-Nine

TP-BLU-SN001

$275.00

Denim Big Button Up Shirt

Cotton

Sizes 0-14

Gender Free World

TP-WHT-GF001

$65.95

Bike Print Shirt Sleeve Shirt

Cotton

Sizes US8-22

Lacausa

TP-WHT-L001

$685.00

Slip Tank

Rayon/Nylon

Sizes XS-L

Lacausa

PS-RD-L003

$180.00

Mechanics Jumpsuit

Cotton

Sizes S-L

Lacausa

PS-BLU-L002

$170.00

Pinstripe Wide Leg Jumpsuit

Viscose/Rayon

Sizes XS-L

Lacausa

PS-YLW-L001

$145.00

Copped Straight Leg Trousers

Tencel

Sizes S-L

128


MERCHANDISING

SPRING/SUMMER FOOTWEAR

Kahmune

HL-XXX-K001

$290.00

4.25” Pump

Calfskin

Sizes 6-12

129

Kahmune

SDL-BWN-K001

$290.00

4.25” Sandal

Calfskin

Sizes 6-12


MERCHANDISING

FA L L / W I N T E R A P PA R E L

Lacause

TP-BLU-L001

$106.00

Silky Blouse

Viscose/Rayon

Sizes XS-L

Louella

JO-BLK-LL001

$45.00

Sheer Maxi Cardigan

Polyester

Sizes XS-XXL

Louella

JO-MLT-LL002

$45.00

Striped Maxi Cardigan

Polyester

Sizes XS-XXL

Jill Alexander

JO-BWN-JA001

$128.00

Vegan Leather Moto-Jacket

Polyester/Spandex

Sizes 8-26

Sixty-Nine

JO-PK-SN001

$546.00

Poet Sleeve Linen Jacket

Linen

Sizes XS/S- M/L

130


MERCHANDISING

FA L L / W I N T E R A P PA R E L

Louella

TP-BLKLL001

$30.00

Long Tunic

Rayon/ Spandex

Sizes S-XL

131

Lacausa

DS-BLU-L001

$330.00

Velvet Wrap Dress

Rayon/Silk

Sizes XS-L

Louella

PS-GLD-LL001

$80.00

Metallic Wrap Jumpsuit

Polyester/ Spandex

Sizes XS-XXL

Artizara

PS-BLK-AZ001

$54.00

Tailored Cigarette Pants

Polyester

Sizes XS-XL

Artizara

PS-BLU-AZ001

$40.00

Wide Leg Trousers

Polyester/Spandex

Sizes S-L


MERCHANDISING

FA L L / W I N T E R F O O T W E A R

Kahmune

BT-BWN-K001

$323.00

Bootie

Calfskin

Sizes 6-12

Kahmune

HL-XXX-K001

$290.00

4.25” Pump

Suede

Sizes 6-12

Kahmune

FL-BWN-K001

$323.00

Mule

Suede

Sizes 6012

132


MERCHANDISING

ESSENTIALS BEAUTY

133

Black Up

EY-MLT-BU001

BU002

BU003

$53.00

Eyeshadow Palette

Australis

EY-BWN-A001

$9.95

Eyebrow Pencil and Gel

Black Up

FC-XXX-BU001

$26.50

Eyeshadow Pot

Alquemie Product Development Group

FC-LT-A001

A002

A003

A004

A005

A006

$18.00

Matte Liquid Pigment

Anastasia Beverly Hills

LP-XXX-AB001

$20.00

Liquid Lipstick


MERCHANDISING

Sourcing Plan Sourcing Plan Inclutail must source new fashion products biannually and ensure on-time purchasing and delivery of goods to steadily operate the boutique. Products for consulting services are sourced on an as-needed basis. As a retailer, we look for designers and manufacturers who are fully capable of manufacturing and shipping their own products. Our preference is for US-based companies. We will source suppliers and submit purchase plans 2.5 months before goods must be released for the new season. The range for our units at wholesale price is USD12-100 including freight and duty. To find new talent we will attend two large showcases

• •

Designers and Agents (Los Angeles) (October 8-10, 2018) LA Fashion Week (Los Angeles) (March 12-16, 2019)

We limit the number of events attended in year one due to a limited budget. Additional manufacturers may be sourced at local markets or via online introductions. 134


R E TA I L A C T I O N S

TIME & ACTION CALENDAR

Purchase Order Sent S.S. Products arrive VM Install

C O N S U LT I N G A C T I O N S

FEB

135

Purchase Order Sent LAFW MAR

Global Shop Conference on Retail and VM High Volume Training Period

F.W. F.W. Products Products shipping arrive

VM Install APR

MAY

D&A

Market

VM Install JUN

JUL

AUG

VM Install SEP

OCT

NOV

Review & Redesign Trainings

Independent Landscape Assessment Distributed Independent Landscape Assessment Analyzed and Posted Publicly

S.S. Products shipping

High Volume Training Period

DEC

Shop! Retail Design Collective and Market Week Retail and Consumer Insights Conference

JAN


S O U R C I N G M AT R I X Category

MERCHANDISING

Apparel

Apparel

Apparel

Apparel Apparel Apparel

Name/Brand Descrip4on Ar=zara

BeingU

Loca4on Phone Email 14286 Olde Highway Online wholesale manufacturer of streetwear for modest fashion consumers. 80, El Cajon CA 1 866 278 4927 Low unit costs 92921 USA Lingerie company delivering to US and UK, Low Farm Barn, Pug Street, Shimpling, products come in a wider ange of nude huespar=cularly geared towards women of Norfolk, IP21 4UU color. U.K.

UK based streetwear apparel company speciďŹ cally making short and long sleeve Gender Free buNon shirts for a genderneutral paleNe World and silhoueNe cut; targets transgender and gender-neutral dressers

Hove, UK

service@ar=zara.com

hNps:// www.ar=zara.com/

011 44 1379 741481

connect@beingu.me

beingu.me

+44 (0) 1273 284482

info@genderfreeworld.com

Lacausa

CA based women's apparel designer focused on ethical and sustainable design and manufaturing processes. Readytowear

Los Angeles, CA

Louella

CA based women's apparel designer focused on providing goods for modest fashion

Los Angeles, CA

wholesale@louellashop.com

UK based streetwear/readywear apparel design company focusing on an assortment of gender-neutral products.

Los Angeles, CA

jacob@valdagency.com

Los Angeles, CA

hNps:// www.anastasiabeverlyhills.com/ contact/

Sixty-Nine

Beauty

Independent cosme=cs designer and Anastasia manufacturer with highly pigmented Beverly Hills products and wide assortments for use by diverse consumer skin tone range

Beauty

BlackUp

Independent cosme=cs designer and manufacturer with highly pigmented products and wide assortments for use by diverse consumer skin tone range

USA

Kahmune

Footwear designer with limited styles and products oered in a wider ange of nude hues, par=cularly geared towards women of color.

London, UK

Footwear

Order Site

1-833-600-0833

sales@seamlessshowroom.com

MOQ

Lead Time

Credit Card

hNps:// www.lacausaclothing.c $1000- 3-4 mos Credit Card, COD, Net30 om/collec=ons/new- 2500 releases

hNps://sixty-nine.us/#

hNp:// hNp://www.blackupcosme=cs.com/ www.blackupcosme=cs contact-us .com/

preorders@kahmune.com

Payment Terms

kahmune.com

6-8 weeks


A M A Z I N G T O L O O K AT

As a company focused on diversity of product and

diversity and inclusion are in highest demand.

Our boutique, as a research facility, benefits from a

07

markets, Inclutail must be accessible where

high volume of diverse and outspoken visitors. Educational programming taking place on site must be accessible for our target clients.

08 Success happens when a majority of retail headquarters are located in the same region as our consulting office, and when that area boasts a high

09

population from marginalized identity groups.

10 137

BRANDING AND VISUALS

Branding and Vi Branding and Visuals


BRANDING AND VISUALS

Branding Strate Branding Strategy C O N S U LT I N G Our brand strategy demands that we be demonstrative of the work that we do creating safe and inclusive environments. In client proposition, during projects, and for those visiting our site on their own accord, we must be accessible to questions and to the varied ways in which users navigate consulting projects. Approachability means being a listener, rather than a critic of the client’s existing diversity and inclusion practices and shortcomings. We work diligently in our branding not to shame our clients, but to encourage them to dig deeper for answers to the questions and concerns that they might have.

In our branding we show that our employees are connected to local and niche communities, building the sense of assurance in our analysis and representation of minority shopping groups. We display the diversity of our staff and their backgrounds proudly, showing that success in that practice is possible. Finally we work to instill confidence in potential clients by showcasing past projects with positive outcomes.

138


BRANDING AND VISUALS

Branding Strate Branding Strategy R E TA I L Our retail customers are drawn to the sense of connectedness and realism presented in our branding. We are a feminist and intersectional persona who understands our shopper because we are or were them. We try to highlight our team and its diversity often in PR moments or candidly on our social media page. We believe in connection to the community, supporting others, upholding and celebrating differences. This comes through most of all in our marketing campaigns and breadth of events held in the store.

While embracing struggles and challenges, we still try our best to look good and have a positive and moral public presence. We care about sustainability and diversity. We are not isolated from society, although we may flow in a different rhythm. We value appearance, polished presentation, and operate within western social structures. 139


BRANDING AND VISUALS

Guidelines Guidelines Inclutail maintains the following guidelines or parameters in order to present a cohesive and strategic brand to its B2B and B2C clientele. While these two targets may be attracted to differing aspects of the Inclutail brand, its traits are the same for all users and interactions.

NAMES

SLOGANS

Inclutail

Shoppers Welcome Here All Shoppers Here

•For use in copy, written document, body paragraphs

Inclusive Retailing • To appear after or underneath the full name logo. •Only Inclusive Retailing may appear with IN logo 140


BRANDING AND VISUALS

LOGOS

•Full name should appear centered with other images or to right justification. •May appear in all brand colors. •May appear with underline definition, but not circled or boxed

•For use sparingly in small printing spaces where full brand name cannot appear. Examples include cards, badges, and icons. •May be paired with other brand text to spell words only beginning with In- and not where In- appears at end or middle of the word or phrase. •May appear in all brand colors. •Should appear centered or left justified.

141


SHAPES

•Copy to only to appear in colors 1,4, or white

•For use as framing of text or images, however never

•Logo, name and slogans permitted to appear in

through or around the full name logo

colors 1,2,3,4,5, and 6

•May appear in black, white, or brand color #4

PRIMARY

•Overlays permitted for colors 1, 4,5

SECONDARY

BRANDING AND VISUALS

COLORS

•Should appear at 89% opacity with variation accepted for cases of textile or color variance

1

2 Hex 000000, R0G0B0

3

Hex FFFFF, R255G255B255

4 Hex 18254C, R24G37B76

5

Hex 418FAB, R65G143B171

6 Hex FFDA4E, R255G218B77

Hex 9F3A36, R159G58B54

7 Hex F3E8D4, R243G232B212 142


BRANDING AND VISUALS

FONTS

WORDING AND COPY

Helvetica Neue- For use in copy, paragraphs, office

• •

stationary, advertising phrases, and slogans

Our voice is….detail-oriented, woke, assertive, and forward-thinking. Colloquial terms may be placed into quotations or italics to emphasis a shift in voice.

Impact- for use on singular impact words at

tab at most from left justification.

maximum three in copy

Frederika The Greatest- for use in logo only (source https://www.fontshop.comfamilies/

Copy is to appear in left justification or center. To be indented one (1)

• • •

All copy should have proper punctuation and not to include emojis. Words not to hyphenated, but moved to next line of paragraph. Brand keywords…woke, inclusive retailing, diversity, empathetic, close, understanding, guaranteed, connected

frederika-the-greatest/buy)

Brand excluded phrases: gender-specific pronouns unless confirmed by the subject

143

Continuous paragraphs to be spaced using one (1) hard return


BRANDING AND VISUALS

I M A G E R Y, G R A P H I C S , PHOTOGRAPHY


BRANDING AND VISUALS

F E E L I N G S & VA L U E S Direct- We are honest and to the point. We tell our clients the truth, and through a sort of tough love we help them to come out stronger in ways they hoped to

accomplish.

Connected- To the minority shoppers and communities we serve. We remain a listening ear to what marginalizes shoppers. We are risk-taking explorers of their lived experience. Active- We shake things up in constant search of what can be done next. We instill a sense of urgency and energy in our clients and put that energy towards their project. Engaged- We are engaged with our community and with our clients, showing each respect and value that they deserve. Professional- With experience and polish, we offer our clients thorough consultations with a proper professional relationship. Modern- For our apparel we are up to date, relevant, and serving attractive products to our consumers. For our clients we are in the know of current and upcoming industry trends. We take many opportunities to research and hone our knowledge and skill base so that we offer the most accurate of services. Edgy- Inclutail pushes the boundaries to proclaim that the retail industry can and should do more to be inclusive of marginalized identity groups.

145


BRANDING AND VISUALS

Branding Collateral C O N S U LT I N G For consulting purposes, our collateral is meant to have a utility function as well as distribute our name and branding phrases at key networking and public relations events.

146


BRANDING AND VISUALS 147

C O N S U LT I N G C O L L AT E R A L


BRANDING AND VISUALS

Branding Collateral R E TA I L Our retail collateral aims to become recognizable, although with subtle and clean lines and graphics. We are most excited by the Inclutail pin that will be worn by all of our staff. By having this identifying pin, we can allow our staff to dress comfortably in the shop, but there is no worry of microagressions from non-staffers being asked questions as if they were on staff. There is still an identifying market for those who are and are not working in the store.

148


BRANDING AND VISUALS

R E TA I L C O L L AT E R A L

LAPEL PIN

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BRANDING AND VISUALS

Visual Merchan Visual Merchandising YEAR ONE OBJECTIVES For the first year of operations, Inclutail has the following goals set for prologued stability and effectiveness of its visual plan. 1. Increase awareness of brand: The visuals we design and assign to our brand are appropriately connected to the brand. Reuse visuals, icons, and subject matter more frequently to create that connection of repetition. All items need to include the full brand name logo. Do not us the IN and I initial alone unless absolutely constrained by space. 2. Differentiate your brand from your competitors' brand: Our strongest differentiator is the combined operations elements of consulting services and retail boutique. We must highlight that difference in our materials. Our consulting materials must come with a fashion editorial lens and subject matter. Our boutique visuals must use a diverse range of models and include textual or visual cues towards industry innovation.

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BRANDING AND VISUALS

BRAND WEBSITE Inclutail’s online presence will be anchored by a website. Primarily this is a source for connection to the consulting brand and secondarily to the retail operations. For continuity, both will be located at the same domain name. The company does not plan to operate e-commerce, as the visual merchandising and inhouse experience of shopping is what Inclutail is trying to promote and revive with US shoppers. The landing page of the site will be the face of the consulting business. It will hold relevant news, PR, and events notices. Closely linked pages provide contact information, details about our team and services, and links to past projects and white papers. A visitor will primarily know us for our consulting services. 151


BRANDING AND VISUALS

BRAND WEBSITE Connected through footers and on secondary pages will be the retail site. It is of course vital that some signature of the retail site appear on the landing page, or else we risk having many users bounce under the assumption that they’ve reached the incorrect page for a company sharing the same name. On the retail pages we’ll house information (visually engaging) about our current and past designers. We'll also use this space to promote upcoming B2C events, campaigns, and other information that should go out to that market.

To build research engine relevancy and fill out the space on our web page, Inclutail will have a presence elsewhere as well. We will submit articles, researching finds, and case studies to other highly ranked and reputable sites to link back to our own. It will drive more traďŹƒc to our page to find product reviews for our consulting and retail businesses. We will have social media accounts for web-relevancy like Instagram, Google+, Facebook, Quora, and Twitter. As new apps and sites emerge, we will determine if their use fits with our brand appropriately.

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BRANDING AND VISUALS

BRAND WEBSITE The expenses to be incurred over the first twelve months are as listed:

1. Domain Name - $1.99/mo via www.ipage.com - $24 2. Domain Linked Email address- Inclusive in iPage package

3. Site Hosting Fee - $6.03 monthly via http://www.mrsite.com/uk - $73

4. Web Design Service - Minim version 2 via http://www.themeforest.net -$59

Annual total is $160 for the first year. To renew domain name and maintain site design with limited e-commerce capability increases to $240 when promotional deals expire. We can increase storage if necessary for increased annual cost on hosting site which would mean a second year annual expense of $292. 153


BRANDING AND VISUALS

PROPERTY EXTERIOR From the outside, Inclutail should look inviting and unique. Its

A muted color palette with pops of color is preferred. Pale

facade should have elements that spark comment or remark. As

stucco and recycled wood panelling will add unique and

an office and a retail space, we search for a balance that is not

environmentally friendly touches and textures.

overtly retail, so that consulting clients are not mistaken or offset upon entering. Large windows will help to make the space feel

Signage should be backlit or lit by can lights from above. We will

inclusive and inviting, and connect the back consulting office to

have a white font and have selected the below halogen light

and through the retail floor.

from www.ernestus.no in style Lysreklame.

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BRANDING AND VISUALS

PROPERTY EXTERIOR Doors/Entrances

Exterior Lighting

- Doors should be clear to increase open natural light and a

- Preference is for down lighting from fixtures with metal

sense of invitation

- Easy open, preferably swing both in and out, preferably double doors

- Flat crossing from walkway onto threshold so is wheelchair accessible

Display windows - Preference is to have windows on one or both side

- Cast a warm glow rather than stark, bright lighting

- Should used halogen or energy eďŹƒcient bulbs

Awnings

- Low preference for awning unless at a standalone shop with angular facade and shark coloring

- Used only in instances where facade needs to become

- Single continuous panels of glass to create a sleek facade

softened or when recess exists to make space able to be

- Exposed framing permitted

utilized for display or seating

- Not overly lit, minimalist backing, not completely enclosed

Planters

Signage

- Only for use in a space contain recess from walkway to

- black and cream with preference for overhead or glow lighting as opposed to back lighting

- Letters will be made and fixed individually, not a solid plastic backlit sign or something of that sort

- Unable to attain in logo font, so secondary font from brand collection or ability of manufacturer is permitted. A sans 155

lampshades

serif font.

entry door, in order to fill space

- Multiple heights and tones of green only

- Helps to soften angular facade and make to feel more natural


BRANDING AND VISUALS

C O N S U LT I N G O F F I C E I N T E R I O R Our consulting office must be the most efficient with space and avoid a sense of clutter. To this point we similarly utilize vertical space with cabinets and shelves. A light grey color theme keeps the space from feeling cold and impersonally corporate, but with light colors to assist the space in feeling expansive. There is steady foot traffic in and out of the retail and consulting spaces as staff from both share restroom and break room facilities. In a similar vein, our consulting clients are asked to wait in the more visually stimulating retail showroom, with its comfortable furniture, instead of being seen directly to the conference room. At all times our clients must feel that there is a space for them, and not brushed aside in the rush of retail.

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BRANDING AND VISUALS

R E TA I L I N T E R I O R The majority of the property is taken up by the retail floor. It is purposefully open in order to make the space navigable by individuals of varied mobility levels. We include soft, textured fabrics and seating areas to encourage guests to stay for longer than it takes to browse, or to rest if they are not able to stay standing for long bouts. The interior style is west coast modern. We look for recycled or recyclable materials. Our imagery has a female gaze, and figures come in a range of shapes and colors, so as not to show a limited ideal of beauty or appearance. Regularly the artwork and display materials will change form to keep the shopping space interesting, and to ensure that a bevy of identity groups gets 157

their moment as model.


BRANDING AND VISUALS

DESIGN INTENTIONALITY Guidelines and specific design elements are planned to draw a correlation between our product offering, inclusive retail practices, and developmental exploration of a target minority shopping group, which will change each season. For each season’s focus, the following measures are in place for the exterior visual merchandising elements and carried into the store interior:

Mannequins: We heard form our survey that too often the models and figures used don’t represent the true range of shoppers in the United States. When using mannequins, we will purchase ones designed in varying heights and weights, to be size inclusive. Our mannequins are all race-neutral by coming in hues like green, blue, multicolored, and purple. We want to create a blank palette onto which consumers can picture themselves in the apparel, and stop reenforcing a limited image of the ideal apparel wearer.

Transgender: It is important for the brand’s imagery to be inclusive of transgender female models when showcasing our products and promotions.

Soft Auditory: For shoppers that may be overly stimulated by high volumes and lights, we will have soft lighting and sounds. Music will play at a low volume and low to mid-tempo, choosing pieces from international selections.

Price Posting: Another item that stood out to us in our survey were respondents who felt uncomfortable by the price range. While the range is set by the business strategy, there are some measures that we can take to make visitors feel less conflict with viewing pricing. Hangtags will include prices. However there will also be discreet category labels placed on stands and tables. The intention is for customers to not seem to be digging for tags throughout their browsing journey. The posts are small, so as to avoid the opposing sense that prices are posted to exclude them from a range. Sales racks with be clearly identified for those who seek that markdown option.

Security: Finally, we seek a resolution for the familiar conflict between shoppers and sales staff attempting to prevent theft. These situations can often lead to demonstrations of prejudice. Instead of allowing bias to interfere, we will purchase a new model of EAS tags to be applied to our clothing. Our store will also include just one of each size of a garment, to deter theft when the removal of an item is quite obvious in this small space. Staff will receive conflict training if they must act despite these measures.

1


BRANDING AND VISUALS

MOCKUPS

Source: Over The Moon

Source: Main Line Today Source: Proportion London

Source: Mannequin Mart

Source: Hayley-Eszti

Neutral and plus size mannequins

Source: Pinterest, Brandon Weidman

Small price labels on shelves

The second season focuses on apparel sizing, offering goods for smaller, taller, larger and shorter shoppers. For our interior assortment we are hiring models all with proportions and body shapes typically excluded from castings. We are looking for local fashion icons/influencers first and foremost. We want to give voice to the models. A rented screen will be hung over the apparel shelves running on loop a video in which we interview all of the models on what they love about their bodies, their lives, and their sense of style. The style icons will be given a chance to review our Fall/Winter collection. Accompanying quotes and still images from their reviews will be posted around the showroom near the items for which they offer styling tips. 159


BRANDING AND VISUALS

MOCKUPS

INCLUTAIL HOT SPRINGS & SUMMER

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BRANDING AND VISUALS 161

MOCKUPS

INCLUTAIL ALL BUNDLED UP!


BRANDING AND VISUALS

28ft

FLOOR PLANS

48ft

As the current space selected does not have sufficient walls and rooms for the conference space, we will need to install non-load bearing walls to put a quiet pair of office in the back of the long rectangular shop.

Excitingly, there is a backyard patio area for this property that will be suitable for hosting events when the venue would otherwise be overcrowded.

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BRANDING AND VISUALS

EQUIPMENT & FIXTURES The following fixtures have been sourced and added to start up expanses in the order volume needed o fully furnish all areas of the boutique and office.

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BRANDING AND VISUALS

EQUIPMENT & FIXTURES

164


BRANDING AND VISUALS 165

EQUIPMENT & FIXTURES


BRANDING AND VISUALS

EQUIPMENT & FIXTURES

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BRANDING AND VISUALS 167

EQUIPMENT & FIXTURES


REACHING OUR CUSTOMERS

For the first year of operations, marketing must be

successful paths are to our two sectors of target clients.

08

effective and varied to determine where the most

In this section we will review

• • •

Marketing Goals Marketing Campaigns & Budgets Media Channels

09

10

11 168

M A R K E T I N G S T R AT E G Y

Marketing Strate Marketing Strategy


M A R K E T I N G S T R AT E G Y

Goals Marketing Goals Sales and Revenue •Showroom sales and revenue will be a predecessor to the

•Traffic to the brick and mortar store is driven via traditional

success and start up of consulting revenue. Annual revenue

advertising on relevant social media sites, email marketing, and

goal is set at $164,730.00 for the retail portion.

SEO strategy. Given the primary market, it is important to connect

•Marketing campaigns for showroom sales will be structured as

with influencers to get direct buy-in and promotion to their

launches of new designers, occurring seasonally. The goal for

followers via their accounts. Annual revenue goal set at

each campaign is to reach a sell through sum of 80% for the

$164,730.00 to come wholly through brick and mortar sales.

marked down products relevant to that campaign. •Marketing campaigns for consulting services will focus on building connection between the Inclutail targeting markets and financial incentive for retailers. The company will disseminate case studies as well as present at retailing conferences. The goal 169

Brick and Mortar Traffic

is to acquire 8 new clients in first year of operation.


M A R K E T I N G S T R AT E G Y

Goals Marketing Goals Brand Awareness and Presentation- Consulting •Early awareness of our consulting services comes through

Brand Awareness and Presentation- Showroom •Key connections are made through influencers (social icons, style

presentation and networking at local retailing events or retailing

icons, social and political activists) on the influencer’s social

events attracting retailers with west coast urban target markets.

media accounts. In first year of operation we will partner with 25

•Submission to two American retailing publications in the first year.

influencers to have a sponsored post on their page. •Live feed shopping events or testimonials for others to virtually experience the brick and mortar store. These events will showcase our customer experience and satisfaction.

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M A R K E T I N G S T R AT E G Y

Goals Marketing Goals Customer Experience, Loyalty, and Satisfaction

Key Campaigns, Events, Launches

•Follow-up communication to customers is structured in an easy

•The launch of new designers will be moments to drive consumers

manner and requests feedback on how the store can improve.

to the store and offer a point of interest for merchandising teams

We will conduct 3 user studies during first calendar year of

as well to spotlight new product sources, however out of season

operation. Regular communication out to existing customers

cycle. Sales generated during this period should generate

about focus group opportunities and demonstration that their

$35,000 in revenue as a goal.

feedback is heard and adopted in the store for future testing

•Consulting services will have key training seasons twice annually

iterations. Three electronic submission surveys will be sent to

(end of spring and again before the holiday shopping season)

our existing consumer base during the first year of operation.

where they offer training on inclusive sales techniques to retail staff. As a goal, each training season will bring on three new brands for a private consultation.

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M A R K E T I N G S T R AT E G Y

Campaigns Marketing Campaigns SHOPPERS Our retail campaigns are a way to solidify our brand identity in the minds of our consumers. Just as our store is always exploring new ideas and groups for inclusivity, so shall our campaigns turn the spotlight on a breadth of marginalized identities. Many of the programs are event based, to attract our primary and secondary markets along with their influencers. We will generate more honest public conversation this way from guests’ content.

C O N S U LT I N G C L I E N T S We will have a marketing scheme that places us amongst the thought-leaders and conversation starters for our target retail clients. We will appear in retail publications to post advertisements and articles. In this manner, Inclutail will make its name common place for those plugged into diversity and inclusion as it pertains to retail. While the primary target of our marketing are heads of small retail companies or human resources directors, we think education is an important part of promoting our mission. Our professional development and educational courses, built into our B2B marketing events, help to convey the strength of our brand and build buzz at headquarters.

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M A R K E T I N G S T R AT E G Y

ABLE IN ALL ITS FORMS

We’re Teaming Up! We’re Teaming Up! & & Because Because shopping shopping belongs belongs to to every every new-designer-following, new-designer-following, makeupmakeuptutorial-watching, tutorial-watching, cut-images-out-and-paste-them-to-your-wall cut-images-out-and-paste-them-to-your-wall fanatic fanatic Find out more at inclutail.com/donate

Target: B2C Shoppers, PR campaign with United Cerebral Palsy focused on the support and advocacy for individuals with cerebral palsy and other physical disabilities. As a major portion of Inclutail’s visual merchandising consultation is to make their space physically inviting and navigable, they team up with an organization to learn how make more spaces safe and inviting for disabled individuals, with hidden and visible disabilities. Educational programming will be advised by UCP staff and presented to our B2B clients on topics like visual merchandising best practices and sales staff etiquette for visibly disabled shoppers. There will be a fund drive for B2C, with Inclutail donating 30% of sales to UCP as determined to be tax deductible.

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M A R K E T I N G S T R AT E G Y

ABLE IN ALL ITS FORMS Marketing tactics (during May) 1. Social media advertisements (Facebook, Twitter) 2. Email marketing to B2C mailing list 3. Email invitation to existing and target B2B employees 4. PR summaries sent to local journalists, event promotion shared on partner site to UCP followers and affiliates

Media Channel Budget

Media Channel

Expense Type

Total Anticipated Cost

Email Lists

Invitation Emails

$0.00

Influencer and PR

Educational Program

$1700.00

Journalism

Branded Article Proposals and Invitations

$100.00

Social Media

Paid Event Advertisements (feed and side pane, still images)

$165.00

Total

$1965.00

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M A R K E T I N G S T R AT E G Y

ALL MY SISTERS Target: B2C Shoppers, B2B Clients (Retail Operations Directors) A sales and discount event celebrating International Women’s Day, explicitly inclusive of femininity and female identity across a spectrum. The event will include product sales discounts of 20% as well as some sort of grand prize give-away in relation to a notable transgender advocacy celebrity/activist (something like private dinner and discussion with the author and group of invitees. Each receiving a copy of their latest publication/work). Educational seminar for existing and targeted clients (B2B) regarding merchandising, training, and visual merchandising protocol for gender nonconforming and transgender shoppers. Will partner with a willing gender advocacy group to provide detailed and accurate information. Networking and mingling event will follow the seminar.

INTERNA TIONAL WOMEN’S MONTH SALE 15-30% OFF select designer collections | Mar 8 & 9

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M A R K E T I N G S T R AT E G Y

ALL MY SISTERS Marketing tactics (running in February to March 8) 1. Social media advertisements highlighting notable figures in women’s rights, transgender rights, and information regard gender identity and fluidity/activism 2. Printed fliers using the same graphics as for social media distributed in store

All My Sisters

3. Email invitations to target B2B employees for educational seminar. 4. In-house: print advertisements in relevant magazines and periodicals disseminated on a city or state-wide area. 5. Podcast advertisements

This International Women’s Month let’s learn to do more for our female-identified customers Inclutail Afternoon Lecture Series: Designing for Transgender and Non-Gender Conforming Shoppers

Mar 6 2:30-4pm: Visual Merchandising Theory Mar 7 2:30-4pm: Training the Sales Team RSVP at inclutail.com/lectureseries

Media Channel Budget Media Channel

Expense Type

Total Anticipated Cost

Email

Subscriber Email Campaigns

$0.00

Printed Fliers

Printing

$180.00

Social Media

Paid Advertisements (side panel and feed, still image)

$260.00

Influencers and PR

Educational Seminar

$1600.00

Influencers and PR

Dinner Guest Contract

$3000.00

Influencers and PR

Dinner Event

$1700.00

Radio

Podcast Advertisements

$275.00

Total

$7015.00 176


M A R K E T I N G S T R AT E G Y

ALL SHOPPERS WELCOME

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Target: B2C Shoppers A branding campaign of simple design. Conveys the brand persona in some visual or auditory presentation along with branded text such as the company name and slogan. Meant to simply make brand specifics familiar to B2C consumer market.


M A R K E T I N G S T R AT E G Y

ALL SHOPPERS WELCOME Marketing tactics (during January) 1.

Social Media (instagram, facebook)

2.

B2C influencer sites (blogs, instagram, page advertisements)

3.

Inclutail website

4.

Periodical/circulation printing (paid advertisement space in B2C targeted periodicals to local area)

Media Channel Budget

Media Channel

Expense Type

Total Anticipated Cost

Social Media

Paid Feed Posts

$195.00

Influencer

Paid Influencer Site Posts

$105.00

Periodicals/Circulations

Paid Advertisements Space

$450.00

Total

$750.00

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M A R K E T I N G S T R AT E G Y

B O Y C O T T B L A C K F R I D AY Target: B2C Shoppers An event campaign leading up to the Black Friday holiday (Friday following Thanksgiving) that acts in protest of the capitalist nature of the event. In both 2016, 2017, and presumably 2018 there have been demonstrations by social activist groups fighting the practice of Black Friday as connected to its propulsion of environmentally-unsafe massconsumerism, and abuse upon families and workers in traditionally underpaid roles. Instead of hosting sales and encouraging spending, Inclutail will host indie gift-making sessions, for individuals to make their own products instead of buying in build up to holiday season. There will be light refreshments and live performances to make it a fun and attractive event to attend.

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join Inclutail for an afternoon of gift handcrafting and community RSVP at inclutail.com/boycott

Boycott Black Friday Friday, November 30 Kicks off at 1pm


M A R K E T I N G S T R AT E G Y

B O Y C O T T B L A C K F R I D AY Marketing Tactics (running all of November) 1. Social media advertisements to B2C (Facebook, Twitter)

Media Channel Budget Media Channel

Expense Type

Total Anticipated Cost

Influencers

Influencer Invitations with Collateral

$220.00

Periodicals/ Circulations

Event Advertisements to Calendars

$0.00

Social Media

Paid Event Advertisements (feed and side pane, still images)

$195.00

Influencers

Advertisements on Influencer Sites

$100.00

Out of Home

Printed Posters

$170.00

Emailing

Email Lists

$0.00

2. Printed fliers included in bags of shoppers in month leading up to the campaign event 3. Email marketing/invitations to B2C mailing list 4. Advertisements on sites of social influencers (if permitted by site), bloggers. Invitations to bloggers for reviews and article submissions following, announcement of the event to their followers beforehand. 5. San Francisco/Bay Area local periodical events posting 6. Event coverage/reporting by consumer topic journalists, family topic, or arts & events topic journalists.

Total

$685.00

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M A R K E T I N G S T R AT E G Y

CUSTOMER EXPERIENCE CONFERENCES Target: B2B Clients (Retail Operations Directors, Brand Strategists, CSR Strategists) For purpose of B2B branding, we will prepare a presentation on Inclutail’s showroom/research structure and what newly developed insights we have cultivated for brick and mortar around customer experience through visual merchandising and sales staff training. This presentation will be given at one or more conferences for retail and customer experience professionals across the United States. By doing so we build our creditability, reputation for professionalism, and can extend our brand recognition. Conferences that we aim to attend include the Category Management Association’s Retail conference, as well as any from the list found at this site (https:// www.ngdata.com/customer-experience-conferences/) who will approve our proposed slide deck.

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M A R K E T I N G S T R AT E G Y

CUSTOMER EXPERIENCE CONFERENCES Marketing tactics

Media Channel Budget

1. Brand promotional advertisement in conference handbook or individually printed fliers distributed to conference attendees

Media Channel

Expense Type

Total Anticipated Cost

Periodical/ Circulation

Advertisement and Booth Posters Printing

$400.00

PR

Travel

$675.00

2. White paper shared in relevant retail news source, sent as PR package

Total

$1075.00

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M A R K E T I N G S T R AT E G Y

LABORERS SALUTE! Target: B2C Shoppers A sales and discounts campaign for Labor Day holiday that’s focused on and celebrates laborers in the United States. Discounted prices on that day for shoppers in store, ranging from 15-30% off.

Laborers Unite! hard workers, you deserve a sale

enjoy 15-30% off all collections September 1st - 3rd

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M A R K E T I N G S T R AT E G Y

LABORERS SALUTE! Marketing Tactics (running September) 1. Social media advertisements (Instagram, Facebook, Twitter) that specifically highlight notable figures in US and international Labor movements. 2. Printed fliers using same graphics distributed in store that specifically highlight notable figures in US and international Labor movements. 3. Email marketing/invitations to B2C mailing list 4. Print advertisements in local circulating magazines or papers regarding arts and entertainment in San Francisco 5. San Francisco/Bay Area local radio advertisements Media Channel Budget Media Channel

Expense Type

Total Anticipated Cost

Periodicals/Circulations

Event Advertisements Printing

$375.00

Radio

Local Radio Advertisement

$400.00

Social Media

Paid Event Advertisements (feed and side pane, still images)

$130.00

Total

$505.00

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M A R K E T I N G S T R AT E G Y

N AT I O N A L P R I D E D AY S A L E

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Target: B2C Shoppers A sales and discount campaigning also serving public relations purpose for brand. Celebrating and promoting participation in SF Pride. Designers presently in for the S/S season will be asked to create or approve of a specific special garment/product added to a Pride Collection. The Inclutail team will register as a group to march in the parade. In a donation matching program, the company will be requesting donations from shoppers at check out and matching the amount given, all to go to this organization (SF Pride).


M A R K E T I N G S T R AT E G Y

N AT I O N A L P R I D E D AY S A L E Marketing Tactics (during June) 1. Social Media advertising (Facebook, Instagram) 2. Spotify desktop advertising 3. Reviews by bloggers about the Pride parade collection 4. Print advertisements in relevant periodical and circulations to San Francisco area. 5. Apparel worn by marchers (staff of Inclutail and those that join) promoting the brand’s participation 6. Distribution of rainbow stickers bearing promotional code for 15% off at Inclutail store for month following the parade

Media Channel Budget Media Channel

Expense Type

Total Anticipated Cost

Social Media

Paid Event Advertisements (feed and side pane, still images)

$424.00

Periodical Printing

Events Circulation Advertisements

$100.00

Out of Home

Event Branded Collateral

$425.00

Radio

Spotify Basic Ads

$500.00

Total

$1449.00

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M A R K E T I N G S T R AT E G Y

NEW DESIGNER LAUNCH Target: B2C Shoppers An event campaign celebrating the launch of new designers. Takes place at start of the S/S and F/W seasons. Designers are invited to attend so they can present their work to retailers (B2B). Merchandising and Buying department representatives will be the target of the invitations and marketing. It is intended to feel an exclusive and chic atmosphere for shoppers, as consumers are also permitted to attend with limited availability. Some influencers will be invited to write fashion review pieces on the upcoming collections. The event will not offer product discounts, so much as an anticipated opportunity to connect with the artists and fashions on for the upcoming season. Consumers can make purchases.

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M A R K E T I N G S T R AT E G Y

NEW DESIGNER LAUNCH Marketing Tactics (running February and August) 1. Physical and email invitations sent to retail representatives, specifically focused on our contacts in the Merchandising/Buying departments. 2. Physical and email marketing/invitations to B2C mailing list 3. Instagram event advertisement 4. Print handouts distributed during operating hours to store guests 5. Invitations to targeted B2C influencer list to encourage attendance and promote to their existing followers (Fashion news media, events)

Media Channel Budget Media Channel

Expense Type

Total Anticipated Cost

Print Fliers

Printing and Postage

$370.00

Email Lists

Event Invitations to Subscribers and Influencers

$0.00

Social Media

Paid Event Advertisements (feed and side pane, still images)

$195.00

PR

Launch Event

$4300.00

Out of Home

Print Posters

$540.00

Total

$5405.00

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M A R K E T I N G S T R AT E G Y

NEW DESIGNER QUEST Target: B2C Shoppers A B2C promotional campaign to receive submissions for the best designers catering to some subcultural or minority shopping group. After submissions are received, a top ten list will be promoted via video campaigns out to all of Inclutail’s B2C followers/subscribers. The B2C community is permitted to vote on these collections to indicate a best new designer who will have either a pop-up shop or inclusion in next season’s line, based upon the operations they are able to support. Those who submit campaigns will receive 40% off a purchase in store. Those who vote will receive a discount code for 10% off a purchase in store. Campaign is meant to generate indication from consumers themselves on the newest styles as related to diverse apparel or footwear. It reinforces the idea that Inclutail is a connected retailer and advocate of sustainable or local merchandising as opposed to relying wholly upon mass-manufactured goods (hearkens back to the Black Friday campaign),

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M A R K E T I N G S T R AT E G Y

NEW DESIGNER QUEST Marketing Tactics (during October) 1. Still advertisements and videos distributed across social media (Instagram, Facebook, Twitter) 2. Still advertisements and videos distributed through B2C emailing list 3. Still advertisements and videos distributed across online periodicals via purchasing of advertisement space on those sites. 4. Inclutail website to host all videos and voting portal 5. Print announcements in store and distributed to shoppers. 6. Spotify advertisements

Media Channel Budget Media Channel

Expense Type

Total Anticipated Cost

Email Marketing

Email Marketing Campaigns

$0.00

Radio

Spotify Basic Ads

$1100.00

Out of Home

Print Posters

$180.00

Periodicals/Circualtions

Print Advertisements

$600.00

Out of Home

Videographer

$240.00

Social Media

Paid Event Advertisements (feed and side pane, still images)

$260.00

Website

Voter Portal

$60.00

Total

$2440.00

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M A R K E T I N G S T R AT E G Y

W H AT R E TA I L C O U L D B E Target: B2B Human Resources and CSR Directors A video and still imagery campaign in industry circulations for those in human resources and corporate social responsibility. Inclutail offers a fundamental shift to the wary email companies do business and demonstrate diversity and inclusion. Through video campaigns and still imagery we will make our brand and mission known to those in decision making power for companies with forward-looking diversity and inclusion strategies. We will include emotionally compelling stories from retailers who believe in supporting diversity, and shoppers who have felt the impact of either exclusive or inclusive shopping environments. The campaign will run twice annually ahead of our key staff training period (July) and at the start of the fiscal year (January).

Be a part

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of what retail could mean

All Shoppers Welcome


M A R K E T I N G S T R AT E G Y

W H AT R E TA I L C O U L D B E Marketing Tactics (during July and January) 1. Still advertisements and videos distributed across online periodicals via purchasing of advertisement space on those sites. 2. Email marketing campaigns to subscribed members. 3. Still advertisements and videos distributed across online and print influencer publications and sites.

Media Channel Budget

Media Channel

Expense Type

Total Anticipated Cost

Email Marketing

Email Marketing Campaigns

$0.00

Periodicals/Circualtions

Print and Web Advertisements

$750.00

Out of Home

Videographer

$240.00

Influencer/PR

Paid Advertising Space on Influencer Sites

$360.00

Total

$1350.00

192


193

M A R K E T I N G S T R AT E G Y

Media Channel Media Channels


M A R K E T I N G S T R AT E G Y

P U B L I C R E L AT I O N S M A R K E T I N G C H A N N E L S 1. Influencer reviews •We will offer incentives for local influencers or fashion journalists to cover pieces regarding our brand. These could be B2B or B2C journalists, depending upon the nature of their topic and publication site. Reviews should cover educational programs, customer experience, and product assortment. As a voice that the reader trusts, these hidden advertisements are a compelling way to increase awareness and engagement with our services or brick and mortar shop. In a less subtle manner, we would be willing to pay for advertising space on their digital platform. •Costs: journalists/influencers will be offered either payment of approximately $30-100 for placement of story on their site, or free attendance to an event for an unpaid and unbiased review of the event to be written subsequently. •Miscellaneous costs include payment to designer for any still advertising images •Some influencers we will approach: •B2B: @triketora, @RackedSF •B2C: @berkleyside, @RackedSF, Refinery29

2. News Media and Events •Public relations events, news media coverage, and special events will help to give interactive and thorough representations of the brand and its capabilities (both B2B and B2C). In most instances of our campaign schedule these sources will be invited to attend events. Journalists, bloggers, and other reporters will share their experience and impressions. This helps to validate company-generated brand representations as they come from an unbiased source. Public relations campaigns serve to promote an humanitarian aspect of the company. By partnering with other reputable firms, we gain their promotion of the brand through collaborative marketing and in what ways they vouch their approval of our company to their followers or users. •Miscellaneous costs: payments to designers for any visual pieces in promotion of events •News sources and PR writers should not be paid outright in order to have an unbiased piece. However, they may be invited au gratis to events or given free merchandise in order to have close material to use for their stories. This cost comes to the per head or wholesale unit price of the item given in exchange for the news coverage. •Some sources we will target: •B2B: San Francisco Business Times, Berkeleyside •B2C: South Bay Accent, Time Out SF, Mission Local, @TheYardSF, Refinery29 194


M A R K E T I N G S T R AT E G Y

IN-HOUSE MARKETING CHANNELS 1. Direct Mailing •Direct Mailing of invitations and advertisements is a personalized method of reaching customers. It helps to navigate towards those who do not view emails due to filters or personal habits. Because our target B2C consumer rents their space, this channel will be most beneficial for contact with B2B clients •VistaPrint $152.50 for design and mailing service of 500 promotional postcards sent First Class Mail •Districts we will target: •Embarcadero/Financial District [B2B] •Castro/Noe Valley [B2C] •Mission [B2B, B2C] •Bayview [B2C]

195


M A R K E T I N G S T R AT E G Y

IN-HOUSE MARKETING CHANNELS 2. Email Lists •This is a free and direct way to message those who have opted into our mailing list and want to stay abreast of Inclutail news. •For B2C, we will ask for this information at check out. On our social media pages there will be links to sign onto the mailing list, most effectively tagged to event notice posts. The assumption is that individuals will want to be on the mailing list to know about upcoming sales and events, after seeing a post for a recent event. Because the business does consumer interviews regularly, we will target community centers or colleges to attain the email addresses of individuals that wish to be interviewed for future retail design ideas. They'll join our regular mailing list is well, for a continued perspective and to see the result of their work with us. This group is least likely to remain on the list long term. For B2C I intend to collet 600 email addresses by the end of the first twelve months. •B2B- will similarly be targeted through the Twitter account page, and on the company website. We will have a regular periodical that shares changes in the store, in the designer directory, or ideas we have discovered from recent research projects. At networking events and events we host for B2B clients, we'll eagerly collect contact information in case there are any new attendees. We will offer incentives in exchange such as free estimates/assessments or free products, depending upon the setting of the networking event. •Costs: Using an application like MailChimp, marketing emails can be planned in advance. Inclutail can receive some useful statistics like open rate and click through rate to develop more effective emailing campaigns in the future. This is a targeted recipient group. MailChimp free service for mailing list 2000 or less, with limit of six campaigns per month.

196


M A R K E T I N G S T R AT E G Y

IN-HOUSE MARKETING CHANNELS 3. Periodical/Circulation printing •As with influencer reviews, these pieces have already earned a readership and audience that Inclutail may not possess in its first year when emailing list registration is low, as is foot traffic into the shop. Print advertisements in such papers or on their websites are best geared towards fashion or retail industry circulations for use in our B2B marketing. B2C readership is predicted as low in our target market. By being included in relevant industry publications, Inclutail can gain a sense of belonging in those industry connections and brand or name recognition following additional marketing tactics. •Some publications we will target: •SF/ARTS: free to post events to their app and online periodical •SF Weekly: paid advertisement on website and printed periodical •SF Station: free to post events to their app and online site •PureWow San Francisco: $3000 paid advertising through cityspecific mailing at CPM rate •Berkleyside: paid advertisement on website

197


M A R K E T I N G S T R AT E G Y

IN-HOUSE MARKETING CHANNELS 4. Social Media Accounts •Social media is the main source of information for Inclutail’s target B2C demographic. They interact with these apps near daily. As demonstrated in the showroom target personas, there are a breadth of applications they use and that Inclutail can operate in order to connect with shoppers. We intend to operate pages on Facebook, Instagram, and Twitter. •By placing content on social media, we are able to do demographically specific targeting of advertisements. We may reach consumers who have yet to visit the physical shop. It is possible also that our target business clients engage with social media for business purposes, as well as in their personal life. Thus we will set both B2B and B2C targeting actions into place. •Costs: •Social media sites using cost per click or monthly limits make it possible to set and keep to a spending budget by time or campaign. This allows our marketing team to track the effectiveness of their work and fine tune our strategy to the most costeffective structure. •Miscellaneous costs for include payment to designer for advertisement file •Facebook: average CPC set to $0.20 • right-hand rail ads for cost saving used for ads targeting B2B link ads, carousel ads, and lead ads used for ads targeting B2C •Instagram: average CPC set to $0.70 •photo ads targeting B2C predominately, occasional B2B •Twitter:average CPC set to $0.40 •lead generation card, product card, summery cards targeting B2C website cards, summary cards targeting B2B 198


M A R K E T I N G S T R AT E G Y

IN-HOUSE MARKETING CHANNELS Uses: •The social media pages offer different advantages based upon the time typically visited, the medium for information, and the devices typically used. •Facebook is the most traditional form of social media and one where our B2B clients are most likely to interact with us. We are also most likely to be able to target viewers by profession or their typical browsing habits. Facebook is often accessed on a desktop, so large advertisements that link to our website, or dissemination of new articles or videos is quite possible. •Twitter is a crossover application between B2B and B2C. Because of its text-based, link-sharing format, we will use this app primarily as the face of the B2B business. Our voice will be firm, knowledgeable, connected, and intelligent. As on Facebook, we will share links to articles or pieces we have written and contributed to our site or other sites, to drive traffic to our page and build search engine ranking. We will also promote upcoming events (both B2B and B2C) through this page. Items like sales notices will attract showroom visitors to connect to the site. •As a visually-rich social media application, Instagram is best suited towards our B2C customers. On these pages we can post summaries and views from events, of existing or upcoming collections, and sales or marketing visuals. Instagram is a space best suited for asking others to interact with the imagery of our brand. There is little linking capabilities, and photographs vastly outweigh the value of text. We will post photographs of behind the scenes for our showroom and consulting staffs, to make these individuals feel more accessible to any visitors of our page.

199


M A R K E T I N G S T R AT E G Y

IN-HOUSE MARKETING CHANNELS

FA C E B O O K S A M P L E

TWITTER SAMPLE

I N S TA G R A M S A M P L E 200


M A R K E T I N G S T R AT E G Y

O U T- O F - H O M E M A R K E T I N G C H A N N E L S 1. Bus Shelter posters •Print advertisements help to reach the secondary or tertiary markets for Inclutail, those who actively avoid or inadvertently miss digital advertising. As opposed to posters, these pieces are better able to withstand weathering. If placed at strategic geographic locations, they can be in the daily line site of our target consumers. At the same time, specific geographic locations put them at potential daily notice by our target clients and retailers, whose offices may be clustered in specific business districts. •Miscellaneous costs include payment to designer for print file •SFMTA for advertising on one bus shelter/kiosk is $1500-3900 for a 4 week period. It is best if such. Campaign is posted on at least five kiosks.

201


M A R K E T I N G S T R AT E G Y

O U T- O F - H O M E M A R K E T I N G C H A N N E L S 2. Radio •For those that do not engage in social media, audio is the next most popular

Sample Script

method of gathering information on a regular basis. For those that listen primary on mobile devices, we can partner with podcasts that have a local

Hey bay area, don’t forget! SF Pride is coming up on June 23rd and 24th. Are you ready to show love and show out?

Shop Inclutail from now until June 24th to pick up something from our new pride collection. With pieces made exclusively for pride by all of our current season designers, you’re sure to find something incredibly on point to wear.

To make things doubly nice, all profits from the collection will be donated to SF Pride through the Inclutail team. So come into the store or find our team at the parade to receive discount goodies and a chance to donate.

following to insert paid advertisements into their segments. Most podcasts have national followings, so local radio advertising helps to ensure the add targets that proper geographic region in case we do not find sufficient local podcasters. Radio advertising has some market targeting, but could beneficially broadcast to tertiary or tangential markets as station categories are broad. Spotify offers paid accounts that allow one to navigate around advertisements. However, desktop users will still see still advertisements which may be just as effective because, as mentioned, these users might miss other social media ads. •Spotify: $200-$1000 for a limited audio and visual ad campaign •San Francisco/Bay Area Radio Channels: $900 for 30 second advertisement over unlisted campaign period and frequency •Some sites we will target: •KQED, KALW- public radio station for B2B marketing •KRZZ, KREV, KMEL - music radio stations for B2C •Podcasts: cost offered or set by podcast staff to range from $100-500 dependent upon length and repetition of advertisement

202


M A R K E T I N G S T R AT E G Y

O U T- O F - H O M E M A R K E T I N G C H A N N E L S

3. Print Flyers •Printed materials are planned for distribution to those visiting the shop. A vital facet of these products is that they are interactive, containing interesting URLs or cost savings opportunities so that customers keep them for a longer period of time. The company will have strong control over costs for this sort of media channel. By planning, printing, and distributing our own advertisements to customers as they enter or pass the store, we ensure promotion of the upcoming campaign is passed to our most likely attendees. •Miscellaneous costs include payment to designer for print file •VistaPrint $180 for 500 printed 5x7in flyers on recycled paper

203


GETTING IT ALL DONE

Operations Operations

proprietorship. Its consulting and retail sectors have dissimilar operational needs given the variations between their customers, distribution channels, and

09

business. Early establishment will be as a sole

traditional employee organizational structures. Some roles listed will not be hired for in the first year of operation. The following expounds upon how the two branches will function as individual units, at times with

10

obvious and advantageous overlap.

Within the consulting realm we anticipate an annual

11

sales generation of $50,000 per full time employee. With retail operations, each full time staff member should represent $75,000 in revenue over the year. 204

O P E R AT I O N S

Inclutail is a minority, female-owned small


O P E R AT I O N S

Organization Organization Chart CEO

Sales Associate 205

Sales Team Manager

Marketing

Sales Associate

SEO


O P E R AT I O N S

CEO Roles & Responsibilities CEO & FOUNDER Oversees the operational maintenance and business growth of both sectors of Inclutail

• • • • • • •

Investment Sourcing and Investment Relations Consulting Project Manager or Lead Consultant Human Resources and Payroll Manager Buyer/Merchandise Planner Manage Vendor Relationships Lead trainer at client training programs Research and design educational materials for consoling purchase

SALARY: $80,000 annually *no salary in first year 206


O P E R AT I O N S

Consulting Roles & Responsibilities C O N S U LTA N T

OFFICE MANAGER

• •

Maintain positive and trusting relationships with clients

• •

Maintain a proper and pleasant work environment for staff and visiting clients

Devise inclusive retailing strategy and present implementation to client

Assist CEO with scheduling of meetings, events, and travel

Conduct research, sometimes managing a team, for client projects

(occasionally) retail supplies in office

Attain new clients through networking events and opportunities

Maintain adequate stock of consulting and

• •

Assist in designer directory showcase meetings Lead event planning for marketing campaigns

SALARY: $68,000-70,000 annually SALARY: $38,000-42,000 annually 207


O P E R AT I O N S

Retail Roles & Responsibilities ASST MERCHANDISER & SALES TEAM MANAGER

S A L E S A S S O C I AT E

Oversee the scheduling and proper performance

goods in store

of sales team while on duty.

• •

Escalate any HR issues to CEO

• •

• •

arrivals

SALARY: $58,000-60,000 annually

Create a branded retail experience for customers and clients

Assist customers on the sales floor Oversee safe unloading and stocking of new

Unload new goods and ensure sales floor is appropriately stocked to visual guidelines

Assist CEO in sourcing new trends and suppliers for upcoming seasons

Assist customers with sales and purchasing of

Maintain cleanliness and care of sales floor and merchandise

SALARY: $15 hourly 208


O P E R AT I O N S

Contract Roles & Responsibilities A select few functions happen on an irregular basis or at a lower operational cost if outsourced to trusted contracted employees. MARKETING

SEO

VISUAL MERCHANDISING

Ensure both brand sectors have regular and

An important part of any business, even

diverse presence through marketing

those not in e-commerce is their public web

• •

Daily posts to social media

presence.

Oversee design of visuals and collateral

• •

Review the health of current SEO

for upcoming marketing campaigns

strategy and implement changes to

Set and monitor email marketing

improve standings.

Report on measurable marketing impact SALARY: $15 per billable hour

SALARY: $1200 monthly 209

Design quarterly interior and window displays, aligned with brand guidelines

Lead visual merchandising installation process with help from Inclutail retail staff

SALARY: $15 per billable hour


O P E R AT I O N S

Dress Code Dress Code Our dress code for both spaces is something that makes the individual feel comfortable and authentic. It must not be distracting in the amount of skin shown in the workplace, and should not be ripped or contain holes.Business casual is the minimum for consulting staff when meeting with clients. The trends and color theme pictured are especially critical for our sales associates, who will also wear the Inclutail pin on their chest or lapel.

210


O P E R AT I O N S

Dress Code Dress Code Source: Pinterest.com

211


O P E R AT I O N S

Hours of Opera Hours of Operation C O N S U LT I N G

BOUTIQUE

D A I LY H O U R S

H O L I D AY S

D A I LY H O U R S

H O L I D AY S

Monday: 9AM-6PM

New Years Day

Monday: 10AM -7pm

New Years Day

Tuesday: 9AM-6PM

MLK Day

Tuesday: closed

Easter Sunday

Wednesday: 9AM-6PM

President’s Day

Wednesday: 10AM -7pm

Memorial Day

Thursday: 9AM-6PM

Cesar Chavez Day

Thursday: 10AM -7pm

Independence Day

Friday: 9AM-6PM

Memorial Day

Friday: 10AM -7pm

Labor Day

Saturday: closed

Independence Day

Saturday: 9AM -7pm

Thanksgiving and Day After

Sunday: closed

Labor Day

Sunday: 10AM -5pm

Christmas Day

Veteran’s Day Thanksgiving and Day After Christmas Day

212


O P E R AT I O N S

Payments Purchasing & Returns PURCHASING

RETURNS & EXCHANGES

Inclutail will accept sales at the boutique via cash,

A full refund may be received for goods returned within 14

debit card, or credit card (VISA, MasterCard)

days of the purchase date.

Inclutail bills for all consulting services with Net 21

Past 14 days you may received store credit.

payment terms. Goods can be exchanged within 21 days of the purchase date.

There is no return or exchange permitted on beauty or jewelry products, 213


COSTS, SALES, AND PLANNING

Financials Financials business.

In this section we will review

• • • • • • • •

10

a revenue of $410,000 through our two sectors of

Start-Up Expenses Assortment Planning Costs Sales and Inventory Flow Three Year Inventory Flow

11

Cash and Sales Progressions Profits and Losses Loans Marketing Expenses

214

FINANCIALS

For its first year of operations, Inclutail anticipates


FINANCIALS

Start Up Expen Start Up Expenses Operating out of one venue, many of the expenses

The start up expenses are itemized in the following

and products purchases have dual utility for the

subsection. Additionally the loan repayment

consulting and for the retail segment of the

scheme is listed, indicating the amount requested

business.

at the start of this venture.

Of note is that the retail space acquired is lacking

Startup costs account for 45% of the total of

adequate walls for hosting clients and an office

expenses contributed towards the loan.

environment conducive for that style of work. Additional non-load bearing walls must be built as part of the leasehold improvements.

215


S TA R T U P E X P E N S E S

Category

FINANCIALS

Salary

Technology

Item

Improvements

Annual Cost

CEO Sales Team Manager Sales Associate Marke=ng Contrator SEO Contractor

1 1 2 1 1

$ 20,000 $ 60,000.00 $ 50,040.00 $ 12,000.00 $ 2,160.00

Computers Conference Room Display POS

3 1 1 1

$ 540.00 $ 85.00 $ 180.00 $2300

Observation Film Equipment

Selling Floor & Stock Fixtures

Units

Mannequins Hangers Fabrics Sea=ng Office Furniture Stock Shelving Rolling Racks Display Fixtures Wall Installa=on Pain=ng Fixture Installa=on Plumbing

4 60 2 14 4 2 2 8

$ 1,440.00 $ 222.00 $ 39.98 $ 1,642.00 $ 997.97 $ 400.00 $ 70.00 $ 2,332.29

1 1 1 1

$ 8,500.00 $ 350.00 $ 45.00 $ 1,200.00

Total

$ 18,550.24

216


FINANCIALS

Assortment Pla Assortment Plans In year one, retail should account for 70% of our

Markups sit around 60% for retail products and higher

total revenue. It simultaneously is responsible for

based upon the hours needed for a consulting project to be

98% of our total COGS for the year. Through this

completed.

imbalance we can see how vital the consulting aspect is for reaching financial stability.

For retail, the average unit price for an item is $137. For

The boutique plays a major part in driving brand

consulting, a completed project costs, on average, $840

awareness and interest in the company to generate

for the client, with our anticipated timeline of 35 hrs per

initial revenue.

team member. For the total 37 projects projected for year one, we anticipate connecting with 13 clients for projects

217

For year one, our retail aspirations are aggressive,

and 10 specifically purchasing our educational packets.

while we expect a low volume (but higher return) on

Most educational packets are distributed at retail industry

our consulting projects.

conferences following our presentations to the most relevant audience.


A P PA R E L EY-MLT-BU001

Eyeshadow Palette

Colorful, Neutral, Smokey

OS

Target Whls $21.20

FC-XXX-BU001

Blush Pot

Fire Engine, Peach, Esmerelda, Warm Chocolate, Nude

OS

EY-BWN-A001

Eyebrow Pencil and Gel

Blonde, Light Brown, Dark Brown, Black

FC-LT-A001

Matte Liquid Pigment

LP-XXX-AB000

$53.00

3

Opening Units 22

$10.80

$27.00

5

22

$235

$589

80

$2,160.00

OS

$4.00

$10.00

4

39

$156

$390

140

$1,400.00

Ivory, Satin, Mousse, Mocha, Hazelnut, Dutch Chocolate

OS

$7.20

$18.00

12

46

$331

$828

164

$2,952.00

Liquid Lipstick

Dark Yellow Taupe, Mauve Nude, Redwood, Milk Peach, Rio, Lilac, Plum Magenta, Brick, Strawberry, Sarafine, Dusty Aubergine

OS

$8.00

$20.00

11

63

$504

$1,260

230

$4,600.00

JO-PK-SN001

Poet Sleeve Linen Jacket

Pink

$218.40

$546.00

3

0

$0

$0

48

$26,208.00

PS-GLD-LL001

Metallic Wrap Jumpsuit

Gold

$32.00

$80.00

6

0

$0

$0

65

$5,200.00

PS-BLU-AZ001

Wide Leg Trousers

Blue

$20.00

$50.00

4

0

$0

$0

60

$3,000.00

TP-BLK-LL001

Long Tunic

Black

$20.00

$50.00

5

0

$0

$0

65

$3,250.00

JO-BWN-JA001

Vegan Leather Moto-Jacket

Brown

$52.00

$130.00

5

0

$0

$0

67

$8,710.00

JO-MLT-LL002

Striped Maxi Cardigan

Multi

2/4, 6/8. 10/12 00/0, 2/4, 6/8. 10/12, 14/18, 20+ 00/0, 2/4, 6/8. 10/12 2/4, 6/8. 10/12, 14/18, 20+ 2/4, 6/8. 10/12, 14/18, 20+ 00/0, 2/4, 6/8. 10/12, 14/18

$18.00

$45.00

5

0

$0

$0

67

$3,015.00

PS-BLK-AZ002

Tailored Cigarette Pants

Black

00/0, 2/4, 6/8. 10/12

$22.00

$55.00

4

0

$0

$0

70

$3,850.00

JO-BLK-LL001

Sheer Maxi Cardigan

Black

$18.00

$45.00

6

0

$0

$0

78

$3,510.00

DS-BLU-L001

Velvet Wrap Dress

Blue

00/0, 2/4, 6/8. 10/12, 14/18, 20+ 00/0, 2/4, 6/8. 10/12, 14/18, 20+

$132.00

$330.00

6

0

$0

$0

93

$30,690.00

FL-BWN-K001

Suede Mule

Brown

6, 7, 8, 9, 10, 11, 12

$128.00

$320.00

7

0

$0

$0

94

$30,080.00

BT-BWN-K001

Calfskin Bootie

Brown

6, 7, 8, 9, 10, 11, 12

$128.00

$320.00

7

0

$0

$0

103

$32,960.00

PS-RD-L003

Mechanics Jumpsuit

Red

$72.00

$180.00

5

30

$2,143

$5,357

62

$11,160.00

PS-BLU-L002

Pinstripe Wide Leg Jumpsuit

Blue

00/0, 2/4, 6/8. 10/12, 14/18 00/0, 2/4, 6/8. 10/12, 14/18

$68.00

$170.00

5

27

$1,828

$4,570

56

$9,520.00

PS-YLW-L001

Copped Straight Leg Trousers Yellow

00/0, 2/4, 6/8

$58.00

$145.00

3

31

$1,810

$4,524

65

$9,425.00

TP-BLU-SN001

Denim Big Button Up Shirt

Blue

00/0, 2/4, 6/8. 10/12, 14/18

$40.00

$100.00

5

27

$1,075

$2,688

56

$5,600.00

TP-WHT-L001

Slip Tank

White

00/0, 2/4, 6/8. 10/12

$22.00

$55.00

4

32

$708

$1,769

67

$3,685.00

JO-BLU-SN001

Denim Bomber Jacket

Blue

00/0, 2/4, 6/8. 10/12, 14/18

$108.00

$270.00

5

34

$3,629

$9,072

70

$18,900.00

HL-BWN-K001

4.25” Suede Pump

Brown

6, 7, 8, 9, 10, 11, 12

$116.00

$290.00

7

37

$4,287

$10,718

77

$22,330.00

TP-WHT-GF001

Bike Print Shirt Sleeve Shirt

White

00/0, 2/4, 6/8. 10/12, 14/18, 20+

$26.00

$65.00

6

37

$973

$2,434

78

$5,070.00

HL-BWN-K001

4.25” Calfskin Pump

Brown

6, 7, 8, 9, 10, 11, 12

$116.00

$290.00

7

43

$4,956

$12,389

89

$25,810.00

SDL-BWN-K001

4.25” Calfskin Sandle

Brown

6, 7, 8, 9, 10, 11, 12

$116.00

$290.00

7

46

$5,290

$13,224

95

$27,550.00

144

514

$27925

$69812

2139

$300,635.00

FINANCIALS

SKU

Item

Colors

Sizes

Target Retail

Min Units

Opening Projected Opening Retail SEASON Unit COG $469 $1,171 85

Projected Annual Sales $4,505.00


In dollars of revenue anticipated, apparel contributes about 50%. The same can be said about the total units to be sold over the year in the apparel category. Beauty products make up a much more significant portion of the units, while only generating a smaller amount of revenue. This is due to the low average cost we selected for beauty. In order to stock a broad range of skin tones, we chose low-cost items to reduce the risk of carrying until we knew more about the shade preferences of our region. Footwear, as the antithesis to beauty has a high unit cost, which makes it a major contributor to the annual revenue projection. It is vital that our sales team turn shoes. They do not have a much higher margin than apparel, and were purchased in non-season specific colors in order to have a slower mark down rate. Many promotional deals will not apply to footwear given the high wholesale price. 219


C O N S U LT I N G SKU

Item

Hours

Client Bus. Size

Target Whls

Target Retail

Min Units Opening Units

Opening COGS

Projected SEASON Unit Sales

Opening Retail

Projected Annual Sales

1001 Electronic Customer Assessment- Simple

10 S

$0.00

$390.00

0

2

$0

$655

4

$1,560.00

1001 Electronic Customer Assessment- Simple

13 M

$0.00

$1,635.00

0

1

$0

$1,635

2

$3,270.00

1001 Electronic Customer Assessment- Simple

17 L

$0.00

$6,500.00

0

1

$0

$6,500

2

$13,000.00

1002 Electronic Customer Assessment- Targeted

11 S

$0.00

$585.00

0

1

$0

$456

3

$1,755.00

1002 Electronic Customer Assessment- Targeted

14 M

$0.00

$2,438.00

0

2

$0

$3,681

3

$7,314.00

1002 Electronic Customer Assessment- Targeted

18 L

$0.00

$9,750.00

0

2

$0

$14,723

3

$29,250.00

1003 Onsite Observation and Survey

80 S

$0.00

$4,200

0

3

2300

$7,848

3

$12600

1003 Onsite Observation and Survey

100 M

$0.00

$5,000

0

1

2300

$1,560

2

$10000

2001 Visual Merchandising Development

25 S

$1800

$2880

0

1

$0

$182

2

$5760

2001 Visual Merchandising Development

28 M

$2400

$3840

0

1

$0

$286

2

$7680

2001 Visual Merchandising Development

34 L

$3000

$4800

0

1

$0

$416

2

$9600

2002 Sales Floor Interaction Development

35 S

$2000

$3000

0

1

$0

$273

3

$1,050.00

2002 Sales Floor Interaction Development

40 M

$2000

$3000

0

3

$0

$1,414

3

$9000

2002 Sales Floor Interaction Development

45 L

$2000

$3000

0

1

$0

$416

2

$6000

2003 Merchandising Development

20 S

$270

$600.00

0

1

$0

$804

2

$1200.00

3001 Onsite Sales Interaction Training

45 S

$150

$600.00

0

1

$0

$468

3

$1800.00

3001 Onsite Sales Interaction Training

50 M

$150

$1,250.00

0

1

$0

$650

2

$2,500.00

3001 Onsite Sales Interaction Training

55 L

$150

$1,800.00

0

1

$0

$936

2

$3,600.00

3002 Identity Education Packet- Weight

10 O/S

$75.00

$125.00

0

3

$198

$330

4

$500.00

3003 Identity Education Packet- Religious Modesty

10 O/S

$75.00

$125.00

0

3

$210

$350

5

$625.00

3004 Identity Education Packet- Race (United States)

10 O/S

$75.00

$125.00

0

1

$104

$173

2

$250.00

3005 Identity Education Packet- Transgender

10 O/S

$75.00

$125.00

0

3

$251

$419

5

$625.00

3006 Identity Education Packet- Sexual Orientation

10 O/S

$75.00

$125.00

0

1

$39

$65

2

$250.00

3007 Identity Education Packet- Custom

10 O/S

$75.00

$200.00

0

1

$39

$104

2

$400.00

1 O/S

$0.00

$50.00

0

0

0

0

65

$3,250.00

0

37

$5441.00

$44344.00

130

$132,839.00

4001 Expanded Project Billing Hours


Our customer assessments skew in the assortment plan as a high portion of our earnings given that an assessment is billed to every project, whether the company chooses to take that data and develop their own strategy, or to hire on for a specific strategy devised for us within Merchandising, Visual Merchandising, or Sales Team Interactions.

Sales Team Interactions and Educational Materials follow in revenue sources as these pieces require crafted diversity and inclusion products coming from experience not readily found in a retail industry office. These projects are our most niche and direct diversity and inclusion offerings. Most often in a brick and mortar setting it is the customer’s interaction with a staff member that affects the dynamics of inclusion. 221


FINANCIALS

Sales & Invento Sales & Inventory Flow In its first year of operations, Inclutail does not expect to reach full

Looking ahead to years two and three, we expect to grow sales by

profitability. Looking at year one, we may hit a negative cashflow

at least 2% , to keep expectations moderate towards the average

in September.

for operations consulting and women’s fashion retail. At this rate, we will recover year one losses in year three and should do the

While this is overall an undesirable event, it is possible for a new

same for year two expenses in the fourth year, steadily reaching

company to suffer losses at its start. Given the eight months of

profitability as we streamline operations and remove expenses

operations that we have proceeding, we will have opportunities to

start up costs from the equation.

improve our marketing expenditure and assortment prediction practices before ordering for the second season, in an effort to mitigate for these losses.

222


SALES BY MONTH: YEAR ONE

$45,000 $40,000 $35,000 $30,000 $25,000

Net Sales

$20,000

COGS

$15,000 $10,000 $5,000

$60,000

$50,000

$50,000

$40,000

$40,000

$30,000 $20,000

COGS

$30,000

$10,000

$0

$0

Fe bM Yr1 ar -Y Ap r1 rM Yr1 ay -Y Ju r1 nYr 1 Ju l Au -Yr gY Se r1 pY Oc r1 tNo Yr1 vY De r1 cY Ja r1 nYr 1

Year 2 Monthly Markdown Dollar Amount

$10,000.00 $8,000.00 "Year 2" "Year 3" "Year 1"

$4,000.00 $2,000.00 $- Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

COGS

Year 3

$12,000.00

$6,000.00

Net Sales

$20,000

$10,000

Year 1

223

Net Sales

Fe bM Yr2 ar -Y Ap r2 rM Yr2 ay -Y Ju r2 nYr Ju 2 l-Y Au r2 gY Se r2 pY Oc r2 t-Y No r2 vY De r2 cY Ja r2 nYr 2

$0

$60,000

Fe bM Yr3 ar -Y Ap r3 rM Yr3 ay -Y Ju r3 nYr Ju 3 l-Y Au r3 gY Se r3 pY Oc r3 t-Y No r3 vY De r3 cY Ja r3 nYr 3

Monthly Sales Patterns

$50,000


SALES BY QUARTER: YEAR ONE-THREE

Q1-Yr1

Q2-Yr1

Q3-Yr1

Q4-Yr1

BOM Inventory

$76,701

$66,189

$76,484

$95,315

Total Net Sales

$78,084

$67,572

$77,867

$96,698

COGS

$23,576

$22,511

$21,391

GM$

$54,386

$44,939

GM%

69.7%

Purchases -Retail

Yr1 Total

Q1-Yr2

Q2-Yr2

Q3-Yr2

Q4-Yr2

$78,263

$62,010

$68,339

$81,483

$320,221

$79,646

$68,923

$79,424

$98,632

$35,180

$102,658

$24,452

$22,575

$25,003

$56,354

$61,397

$217,076

$55,068

$46,222

66.5%

72.4%

63.5%

67.8%

69.1%

$152,046

$86,045

$104,966

$94,151

$437,207

Purchases -Cost

$50,070

$27,222

$41,074

$34,793

$153,160

EOM Inventory

$66,189

$76,484

$95,315

$78,263

BOM/Avg Inventory

$78,433

$67,564

$82,293

$87,141

Turn

1.00

1.00

0.95

1.11

Yr2 Total

Q1-Yr3

Q2-Yr3

Q3-Yr3

Q4-Yr3

Yr3 Total

$69,606

$57,852

$60,118

$67,551

$326,625

$83,628

$72,369

$83,395

$103,564

$342,956

$32,637

$104,668

$25,675

$22,665

$25,403

$34,639

$108,382

$54,296

$65,869

$221,456

$57,825

$49,576

$57,864

$68,796

$234,061

67.1%

68.4%

66.8%

67.8%

69.1%

68.5%

69.4%

66.4%

68.2%

$71,321

$87,043

$102,629

$104,781

$365,775

$80,198

$83,394

$98,431

$111,814

$373,837

$50,848

$62,057

$73,169

$74,704

$260,779

$57,177

$59,456

$70,176

$79,718

$266,527

$62,010

$68,339

$81,483

$69,606

$57,852

$60,118

$67,551

$55,585

$78,590

$72,105

$58,670

$70,249

$76,689

$71,940

$63,885

$49,364

$57,907

$64,104

$62,142

4.07

1.10

1.17

1.13

1.29

4.54

1.31

1.47

1.44

1.62

5.52 224


FINANCIALS

Cash & Sales Cashflow In its first year of operations, Inclutail does not expect to reach full

Looking ahead to years two and three, we expect to grow sales by

profitability. Looking at year one, we may hit a negative cashflow

at least 2% , to keep expectations moderate towards the average

in September.

for operations consulting and women’s fashion retail. At this rate, we will recover year one losses in year three and should do the

While this is overall an undesirable event, it is possible for a new

same for year two expenses in the fourth year, steadily reaching

company to suffer losses at its start. Given the eight months of

profitability as we streamline operations and remove expenses

operations that we have proceeding, we will have opportunities to

start up costs from the equation.

improve our marketing expenditure and assortment prediction practices before ordering for the second season, in an effort to mitigate for these losses.

225


CASHFLOW: YEAR ONE

Startup Loan/Personal $$

Jan - Yr 0 $144,207

Feb - Yr 1

Mar - Yr 1

Less: Start-up Capital Expenditures

$25,400

Equals: Available Start-up $$

$118,807

-$6,421

$7,098

-$2,522

$6,643

$8,810

-$7,270

-$4,801

Less: Shrink and MDs (cost)

$1,025

$2,658

Plus: Depreciation Expense

$343

Less: Principal Payments

Profit or <Loss> (GM$-Expenses)

Less: Monthly Incr. of Inv (at Cost)

$28,393

Apr - Yr 1 May - Yr 1 Jun - Yr 1

Jul - Yr 1

Aug - Yr Sep - Yr 1 Oct - Yr 1 Nov - Yr 1 Dec - Yr Jan - Yr 1 1 1

-$2,938

-$9,314

-$9,705

$317

-$179

$2,637

$5,003

-$517

-$9,899

-$11,150

$3,219

$7,351

$6,376

$4,251

$435

-$3,835

$161

-$2,755

$29,185

$1,512

$3,339

$1,427

$1,177

$787

$2,273

$2,268

$2,916

$3,785

$2,988

$26,156

$343

$343

$343

$343

$343

$343

$343

$343

$343

$343

$343

$4,120

$721

$721

$721

$721

$721

$721

$721

$721

$721

$721

$721

$721

$8,652

-$69,772

Equals: Monthly Working Cash

-$28,393

-$16,634

$11,331

$390

$14,077

-$7,963

-$18,219 -$17,245

-$6,585

-$3,259

$3,178

$679

-$1,128

Equals: Monthly Net Cash

$90,414

-$16,634

$11,331

$390

$14,077

-$7,963

-$18,219 -$17,245

-$6,585

-$3,259

$3,178

$679

-$1,128

Cumulative Net Cash

$90,414

$73,780

$85,111

$85,501

$99,578

$91,615

$73,396

$49,566

$46,306

$49,484

$50,163

$49,035

$56,151

Yr 1

226


FINANCIALS

Profits & Losse Profits & Losses As alluded to previously, the first year for Inclutail will not reach profitability. Given the sum of expenses as compared to our anticipated revenue generation, there is a deficit of 20%.

This can be resolved by reducing the extent of our leasehold improvements, reducing the number of staff in the retail shop, and increasing our sell through rate. That final figure would lend itself towards keeping additional sales staff, as they may assist in upsetting and selling more products with a lower markdown percent. 227


PROFIT & LOSS Feb-Yr1

Mar-Yr1

Apr-Yr1

May-Yr1

Jun-Yr1

Jul-Yr1

Aug-Yr1

Sep-Yr1

Oct-Yr1

Nov-Yr1

Dec-Yr1

Jan-Yr1

Yr1 Total

%/Sls

$25,133 $9,381

$45,209 $11,564

$28,628 $10,574

$47,158 $14,777

$27,035 $8,336

$16,625 $6,491

$19,283 $5,453

$35,083 $13,361

$35,002 $11,541

$35,223 $10,729

$45,710 $19,784

$36,089 $16,154

$396,177 $138,144

100.0% 34.9%

Merchandise GM$

$15,471

$33,298

$17,737

$31,938

$18,449

$9,939

$13,665

$21,321

$23,115

$24,172

$25,332

$19,450

$253,888

64.1%

Research & Development

$80

$80

$80

$80

$80

$80

$80

$80

$80

$80

$80

$80

$960

Merch. GM w/ R&D expense

$15,391

$33,218

$17,657

$31,858

$18,369

$9,859

$13,585

$21,241

$23,035

$24,092

$25,252

$19,370

$252,928

63.8%

Total Wages

$12,537

$12,537

$12,537

$12,537

$12,537

$12,537

$12,537

$12,537

$12,537

$12,537

$12,537

$12,537

$150,440

38.0%

Rent Marketing Expense

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$3,200

$38,400

9.4%

$3800.00

$4300.00

$350.00

$1225.00

$1200.00

$680.00

$2700.00

$505.00

$2440.00

$685

$0.00

$680.00

18,565

4.7%

Operational Expenses

$5,060

$9,552

$3,789

$8,226

$4,935

$2,913

$6,602

$4,465

$6,756

$4,594

$3,676

$3,418

$63,988

6.3%

Interest Expense

$130

$128

$125

$123

$121

$119

$117

$115

$112

$110

$108

$106

$1,415

0.4%

Depreciation Shrinkage Total Expense

$343 $271 $21,812

$343 $488 $26,121

$343 $309 $20,178

$343 $509 $25,215

$343 $292 $21,307

$343 $180 $19,173

$343 $208 $23,290

$343 $379 $20,924

$343 $378 $23,214

$343 $380 $21,455

$343 $494 $20,250

$343 $390 $19,888

$4,120 $4,279 $262,827

1.0% 1.1% 66.3%

Profit/Loss

-$6,421

$7,098

-$2,522

$6,643

-$2,938

-$9,314

-$9,705

$317

-$179

$2,637

$5,003

-$517

-$9,899

-2.5%

Fixed Expenses

$17,026

$17,326

$17,026

$17,026

$17,026

$17,026

$17,026

$17,026

$17,026

$17,026

$17,026

$17,026

$204,610

51.6%

Total Variable exp + COG $

$13,896

$19,871

$13,417

$22,457

$12,326

$8,458

$11,510

$16,880

$17,350

$14,777

$22,514

$18,626

$192,082

48.5%

Contribution Margin $

$11,238

$25,339

$15,211

$24,701

$14,709

$8,166

$7,773

$18,202

$17,651

$20,445

$23,196

$17,463

$0.52

Contribution Margin %

44.71%

56.05%

53.13%

52.38%

54.41%

49.12%

40.31%

51.88%

50.43%

58.05%

50.75%

48.39%

0.00%

BreakEven$ Volume

$38,079

$30,913

$32,044

$32,505

$31,292

$34,661

$42,236

$32,815

$33,761

$29,332

$33,552

$35,186

$406,375

BreakEven Sales per day

$1,644

$1,030

$1,068

$1,083

$1,043

$1,155

$1,408

$1,094

$1,125

$978

$1,118

$1,173

$13,920

BreakEven Sales per hour

$164

$103

$107

$108

$104

$116

$141

$109

$113

$98

$112

$117

$1,392

FINANCIALS

Net Sales COGS

0.2%


3.6% Interest Rate

FINANCIALS

L O A N R E PAY M E N T Month

Balance of Loan

Principal

Interest

Total Payment Due

Month

Balance of Loan

Principal

Interest

Total Payment Due

Month

Balance of Loan

Principal

Interest

Total Payment Due

1

$43,262.03

$721

$130

$851

21

$28,841.35

$721

$87

$808

41

$14,420.68

$721

$43

$764

2

$42,540.99

$721

$128

$849

22

$28,120.32

$721

$84

$805

42

$13,699.64

$721

$41

$762

3

$41,819.96

$721

$125

$846

23

$27,399.28

$721

$82

$803

43

$12,978.61

$721

$39

$760

4

$41,098.93

$721

$123

$844

24

$26,678.25

$721

$80

$801

44

$12,257.57

$721

$37

$758

5

$40,377.89

$721

$121

$842

25

$25,957.22

$721

$78

$799

45

$11,536.54

$721

$35

$756

6

$39,656.86

$721

$119

$840

26

$25,236.18

$721

$76

$797

46

$10,815.51

$721

$32

$753

7

$38,935.83

$721

$117

$838

27

$24,515.15

$721

$74

$795

47

$10,094.47

$721

$30

$751

8

$38,214.79

$721

$115

$836

28

$23,794.12

$721

$71

$792

48

$9,373.44

$721

$28

$749

9

$37,493.76

$721

$112

$834

29

$23,073.08

$721

$69

$790

49

$8,652.41

$721

$26

$747

10

$36,772.72

$721

$110

$831

30

$22,352.05

$721

$67

$788

50

$7,931.37

$721

$24

$745

11

$36,051.69

$721

$108

$829

31

$21,631.01

$721

$65

$786

51

$7,210.34

$721

$22

$743

12

$35,330.66

$721

$106

$827

32

$20,909.98

$721

$63

$784

52

$6,489.30

$721

$19

$741

13

$34,609.62

$721

$104

$825

33

$20,188.95

$721

$61

$782

53

$5,768.27

$721

$17

$738

14

$33,888.59

$721

$102

$823

34

$19,467.91

$721

$58

$779

54

$5,047.24

$721

$15

$736

15

$33,167.55

$721

$100

$821

35

$18,746.88

$721

$56

$777

55

$4,326.20

$721

$13

$734

16

$32,446.52

$721

$97

$818

36

$18,025.85

$721

$54

$775

56

$3,605.17

$721

$11

$732

17

$31,725.49

$721

$95

$816

37

$17,304.81

$721

$52

$773

57

$2,884.14

$721

$9

$730

18

$31,004.45

$721

$93

$814

38

$16,583.78

$721

$50

$771

58

$2,163.10

$721

$6

$728

19

$30,283.42

$721

$91

$812

39

$15,862.74

$721

$48

$769

59

$1,442.07

$721

$4

$725

20

$29,562.39

$721

$89

$810

40

$15,141.71

$721

$45

$766

60

$721.03

$721

$-

$-


FINANCIALS

Budget Marketing R E TA I L As noted briefly in each campaign summary, the first calendar year will see implementation of twelve campaigns running from February through December with slow activity for operations and finances in July and January.

While still remaining relevant to the event and other retail operations, the campaigns are intended to be distributed across the calendar year to maintain a brand presence and ease of marketing project management across time. Our campaigns cross from discounts to events, branding, and educational. We target HR and retail staff operations directors from our target client companies in campaigns separate from those for our retail target market. Educational programming is a way to spread brand recognition, although indirectly towards the consulting client decision-makers. The following chart shows a summary of the expenses for the first calendar year to complete the twelve campaigns as presently planned.

230


M O N T H LY M A R K E T I N G E X P E N S E S

FINANCIALS

Active Campaigns

Feb

Mar

All My Sisters, New Designer Launch #1

All My Sisters, New Designer Launch #1

Campaign Discounts Monthly Campaign Spending % of Total Net Sales Expected % of Total Markdown $ Markdown %

Campaign Discounts Monthly Campaign Spending % of Total Net Sales Expected % of Total Markdown $ 231

Markdown %

May

Jun

Jul

Able In All Its Forms

Able In All Its Forms, Consulting Conference, Pride Parade Pride Parade

What Retail Could Be

0%

20%

0%

30%

0%

0%

$3800.00

$4300.00

$350.00

$1225.00

$1200.00

$680.00

54%

23%

2%

7%

6%

4%

$25,671

$46,937

$33,069

$49,732

$27,570

$16,937

12%

11%

8%

12%

7%

4%

$1,283.53

$3,754.95

$2,314.84

$9,946.49

$1,929.87

$1,693.69

5.0%

8.0%

7.0%

20.0%

7.0%

10.0%

Aug Active Campaigns

Apr

Sep

New Designer Launch #2, Labor Day Sale Labor Day Sale

Oct

Nov

Dec

Jan- Y2

New Designer Quest

Boycott Black Friday

All My Sisters

What Retail Could Be

0%

20%

10%

0%

$2700.00

$505.00

$2440.00

15%

3%

13%

4%

0%

4%

$28,707

$35,467

$36,591

$35,665

$45,053

$36,694

7%

8%

9%

9%

11%

9%

$1,435.35

$3,546.65

$5,488.67

$8,916.23

$5,406.35

$4,403.31

5.0%

10.0%

15.0%

25.0%

12.0%

12.0%

$685 $

0% -

0% $680.00


EXPENSE CHARTS

sit e

W eb

B e ld

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$14,400 $16,000 $14,000 $12,000 $10,000 $8,000 $5,745 $6,000 $3,440 $3,345 $2,760 $2,549 $2,475 $4,000 $1,360 $696 $1,195 $800 $2,000 $-

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FINANCIALS

Expense Total By Campaign

$1,000 $- Feb Mar Apr May Jun

Jul Aug Sep Oct Nov Dec Jan

Expense amounts should be demonstrative of a campaignâ&#x20AC;&#x2122;s believed effect upon the branding strategy. To have a broad branding representation, Inclutail will invest in varied campaign styles and channels.

The most significant events by cost are the All My Sisters campaign and the New Designer launch. Both campaigns target B2C clientele and offer networking or educational programs for retail industry professionals. One includes merchandise discounts to draw consumers into the store. Both have a strong brand and PR focus with the educational topics or merchandise display events. Both are interactive and include many touch points between the Inclutail brand, inclutail staff, and their target retail market. They should be effective campaigns worth this cost investment.

It is concerning that there are significant costs in February when retail expenses will have recently been incurred to stock spring/summer season merchandise. To manage this high volume of expenses requires a combination of saving and negotiating to displace some payments with vendors until March or even April to manage the debt.

232


MARKETING CHANNELS Aside from the high amount of expenses incurred putting on events (which are central to four of the FINANCIALS

campaigns) the remaining expenses are relatively evenly distributed, with audio and social media having the next highest portions. Audio as a media channel can easily be removed from planned projects in or to consolidate expenses if deemed ineffective after the first or second campaign attempt.

In summary we will operate the first year marketing scheme with the apparent balance across media channels, with merchandise discounting and sales rates projected across time in balance.

233


A C C E L E R AT I N G I N T O T H E F U T U R E

Growth Plan Moving forward, Inclutail seeks two outcomes for

â&#x20AC;˘ â&#x20AC;˘

Stabilize Boutique Operations Expand Consulting Volume

11

its business

Our keys to success are in positive cashflow from a multifaceted business and unique marketing for our consulting business. To stabilize our boutique operations we will expand marketing and fine tune our assortment in an attempt to increase the turn rate so that fewer goods sell at a mark down. For consulting, we will similarly focus on marketing to develop unique events and highlight our individuality to target clients. 234

GROWTH PLAN

Growth Plan


GROWTH PLAN 235

Stabilize & Exp Stabilize & Expand R E TA I L

C O N S U LT I N G S E R V I C E S

Our retail boutique is meant to inspire and reassure our

Through aggressive networking and self-promotion, our growth plan looks

consulting strategies and use as a demonstration space for

to increase our client portfolio by 70% each year. When this is

clients. For that purpose, it does not need to grow year on

achieved, we will afford to expand the consulting team so that more

year.

individuals can fulfill more projects simultaneously.

Each season we want approximately the same volume of

In searching for new clients, we will steadily seek more companies from

designers or products. We will increase or decrease that

our Tertiary Market Group, when originally we focus on our Primary

volume in response to previous season sales rates. The goal

Market. Those tertiary clients represent larger, wealthier companies that

for retail is for operations to stabilize so that we enter

should hire for larger projects with greater profit, but only after Inclutail

profitability. This is achieved by improving the effectiveness

has proven it has the experience and resources to dedicate to such a

and reach of our marketing so that we also increase our sell

project. In this theme we are looking for annual revenue growth at a

through rate at non-marked down prices.

rate of 8% year on year.


GROWTH PLAN

Milestones Milestones Markers for success in both the consulting and retail segments. These are basic indicators and goals to meet for a profitable future. 1. Attend and present at two industry conferences in three months 2. Acquire 30 partner designers to showcase in directory in six months 3. Consulting business revenue will account for 50% of revenue by year four of the business 4. The entire operations will reach a positive profit percentage by year three of the business

236


Tel: +1-817-707-7932

Resume

ravenj1@alumni.stanford.edu Singapore 217820

Resume

Skills Data Analytics/

Visualization: Microsoft Excel, Google Analytics, Tableau, SQL

Visual Design Software: Adobe Illustrator, InDesign, and Photoshop, SolidWorks SEO and Content Strategy Languages Spanish

Personal Summary A graduate student completing thesis for retail merchandising program. Previous academic and professional work in medical device design, operations, and higher education development and training. Raven brings efficiency, empathy and high personal standards into every project to innovate and resolve service design and customer experience needs for clients. With humility, a strong work ethic, and the ability to remain calm under pressure, she is a great manager or contributor to any team. Education Academy of Art University; San Francisco, CA — MFA Retail Merchandising, 2018 Stanford University; Stanford, CA — B.S. Biomechanical Engineering, 2013 Career History Director of Operations and CRM, A Better Florist; Singapore — 2017-Present Product management and assortment expansion based upon retail merchandising principles. Build and develop a customer service team and protocol from the ground up. Improve upon KPIs for daily order fulfillment. Program Associate, Stanford University; Stanford, CA — 2015-2017 Conduct user research, data analysis and assessment for cyclical training and education processes. Design curriculum and facilitate credit-bearing courses and educational programs. Manage fiscal and operational processes for residential faculty and student staff. Point of contact for technical developers of in-house software system. Lead technical troubleshooter and trainer for internal hiring software. Sales Associate, Shinola Detroit; Palo Alto, CA — 2016-2016 Serve as brand representative to all incoming customers to brick and mortar store through positive interactions. Provide services in sales assistance and custom product engravings on leather goods. Ensure upkeep and adherence to visual merchandising structure and escalate merchandising feedback for improved performance at stores.

237

Front Desk Supervisor, Stanford University; Stanford, CA — 2012-2014 Maintained daily operational procedures for student housing including billing, maintenance and inventory. Served as point of contact for housing policies and operations with customer service training and focus. Hired, trained and managed student and temporary staff teams.


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Appendix I Appendix I

Survey results from FSH 850 project assessing

market size and landscape analysis for inclusivity in apparel brick and mortar stores. Taken by a broad assortment of US shoppers.

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Inclutail: Inclusive Retailing  

Business research and proposal created for MFA final thesis project in 2018. Inclutail is a fashion retail store sand retail consulting grou...

Inclutail: Inclusive Retailing  

Business research and proposal created for MFA final thesis project in 2018. Inclutail is a fashion retail store sand retail consulting grou...

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