By: Gillian Ware, Emily Eckard, Darby Simkins
Table of Contents
Executive Summary Company Summary Corporate Information Market Analysis Brand Identity Matrix Key Competitors Market Strategy Current Distribution SWOT Analysis Location Analysis PESTLE Target Customer Store Location Store Design Product Plan Promotional Plan Financial Plan
Company Summary Nasty Gal is an online retail store allowing a wide range of customers to access their products. We as a company are wanting to open the first ever retail store for Nasty Gal by opening a pop up shop on Melrose Avenue. Our goal for this pop up shop is to allow consumers to have the hands-on shopping experience at one of their favorite clothing retailers. We are using this pop up shop as a way to see if opening Brick and Mortar would be successful or not.
Nasty Gal was started ten years ago by Sophia Amoruso in San Francisco. The company started in a small apartment with vintage items and an eBay account. Today the company is is out of Los Angeles. Nasty Gal carries clothing, shoes, accessories, and they are all under the Nasty Gal label with few items under other labels.
Nasty Gal is a privately-owned company. They were acquired by BooHoo and has a new CEO, Carol Mary Kane who started in February 2017. BooHoo acquired Nasty Gal after the company filed for bankruptcy. They have a volume of 382.5 Million Dollars
The state of the fashion retail industry right now is strong after last yearâ€™s terrorist attacks in France, the Brexit vote in the United Kingdom and the volatility of Chinas stock exchange. Nasty Gal is strictly online right now which only allows the consumers to see the clothing not touch the clothing. With retail experiences being so prevalent in todayâ€™s day in age, the opening of the pop up shop will only increase the sales for Nasty Gal but also allow other online only retail stores to see the success of this store. This will allow more competitors to find a natural niche in Brick and Mortar retailing only increase the state of the fashion retail industry.
Person: Brand Analysis: Key features in products -each piece is named a cool fun name -unique, fun, edgy look Womenâ€™s: apparel, outerwear, shoes, handbags, swimwear, lingerie Sunglasses, belts, hats, jewelry Brand Logo: -Edgy -Easy -Memorable
Brand identity matrix
-A girl who is edgy, loves to stand out and prides on good deals within high end fashion -Not afraid of taking fashion risks -Embraces sensuality and confidence in themselves -Fashion forward free-thinking girl -Sexy rock and roll Organization -Strong -Independent -Private label -California based -Vintage brand
Direct competitors -E-commerce -Celebrity collaboration -Based out of the UK -They have good promotions going on, along with a student discount -Sells womens wear along with girls clothing -U.K. Size guide -They bring killer, affordable style to female fashion breakers and makers. -They have +5,000 products across numerous categories with updates of over 100 styles dropping weekly.
-E-commerce -Strong brand identity and social media presence -Celebrity collaboration -Based out of the UK -The shop updates its selections daily, and maintains active social media feeds. -Student discount -Ships to 9 different countries -Sells womens wear: apparel, accessories, lingerie and sleep wear, outerwear, and shoes. -U.K. Size guide
-E-commerce -Trendy and fashion forward -Wide selection of designers and brands -For women and men -Student discount -They sell clothing shoes and accessories for both men and women and beauty and goods. -Prices range from ASOS inexpensive private labels to expensive designer labels -Strong global presence and efficient delivery service offering free delivery and returns around the world -Celebrity collaboration -U.K. Size guide
-No pop up shops -E-commerce -Online fast fashion retailer based in California with customers in over 100 countries and 300 workers -They have good promotions with 50% off your first purchase -Great customer service -Clothing fits to size -Sells womenswear: apparel, accessories, lingerie and sleep wear, outerwear, and shoes.
marketing strategy Heavy social media -Great experience website -Easy to look at online -Heavy lifestyle campaign -Look books -They do not do that much traditional media which would be a good intro for the pop-up shop.
-E-Commerce -200 employees -Sells to 60 countries -Nasty Gal relies solely on social media and word of mouth to attract new customers -Nasty gal has 2.2 million followers, 200,000 twitter followers and 1.2 million Facebook followers. -300 million in 2015 Over 550,000 customers Boohoo bought for 20 million
-Clear brand image -Up to date on the latest trends -Has its own Nasty Gal fashion blogs that introduce new arrivals on the website. -Provide frequent fashion lookbooks that shows Nasty Galâ€™s new arrivals -Easy to use online store -Innovative and technology strong -Owned by boohoo -New CEO -Very strong fan following and customer loyalty -Popular blog and many social media outlets -The Netflix show Girl Boss and book
Weaknesses -No stores, only limited to online market -Little growth for new customers due to being online -Returns are higher due to not being able to try on the clothes -Going bankrupt and scandal -Having to rebrand themselves and make a comeback -Unclear sizing options and lack of review and comment section -Limited sizing for available for XS and XL -Share brands and products with competitors
-More discounts, sales, and promotion opportunities to reach and attract new customers -Collaborations with more designers and celebrities -Increase social media presence -Print catalogs -Offering more sizes for more women and more descriptive sizing guide -Marketing to older markets -International expansion -Opening up brick and mortar stores -Rewards and benefits for loyal customers -New Markets -Growth rates and profitability
Threats -Strong established competitors with online brick and mortar stores -Lack of customer confidence - Product demand relies strongly on economies position which influences pricing power -Substitutes for similar products at cheaper prices -Increase in labor cost -Smaller market and following than competitors -Cash flow
political The city government is headed by a five-member city council, including a mayor and a mayor pro team who serve one-year terms. West Hollywood was the first city in the country to have a city council with a majority of gay members Mayor and Council member John Heilman is the city's current mayor and longest-serving council member (having served continuously since 1984). John Heilman is the current mayor in 2017.
economical The unemployment rate in West Hollywood, California, is 4.30%, with job growth of 1.37%. Future job growth over the next ten years is predicted to be 38.45%.
social West Hollywood has many ongoing programs to celebrate the vibrant arts and unique culture of the city. The literary community is acknowledged with the year-round author series WeHo Reads, featuring new and noteworthy authors at the West Hollywood Library with a full day literary event each fall. An annual PowPow is Presented by AIDS Project Los Angeles Red Circle Project and the City of West Hollywood. This event, held at Plummer Park promotes HIV awareness and prevention among the Native communities and features dance, music, food, and educational resources.
legal Legislation prohibiting discrimination in the workplace on the basis of sexual orientation is widely recognized as the toughest in the nation. The city is also one of 92 jurisdictions in the country where it is illegal to discriminate on the basis of gender identity or expression. City legislation also bans the sale of handguns, prohibits smoking in public places, and restricts the city from doing business directly or indirectly (via vendors) with any country known to violate human rights. In 2011, West Hollywood became the first city in the United States to ban the sale of clothing with real animal fur; the ban took effect on September 21, 2013
technology The state of California is the home of the Silicon Valley where so many technological innovations occur. The City Of West Hollywood stays plugged in with a sophisticated information technology network with support services for businesses and individuals.
environmental The state of California is very progressive on environmental issues. West Hollywood has a "reduce and reuse" motto for their citywide recycling programs. Water conservation is a huge issue for the state, with laws restricting wasteful water use. Air quality standards are strict. California is committed to following the Paris Climate Treaty despite the lack of leadership from our President.
Melrose Avenue is a hodgepodge of all that encompasses L.A. This diverse district manages to be eccentric and mainstream, affordable and upscale, and grungy and glamorous all at once. The one constant about this vibrant, lively block is that its shopping, dining and people-watching are second to none. The eastern end of Melrose Avenue became a go-to destination in the 80s for its grunge culture. It has continued its reign of all things vintage and alternative since then, although today is also lined with several mass-market stores like American Apparel and Urban Outfitters. Heading west of Fairfax, Melrose Avenue assumes a far more upscale feel. Slightly north of this area, Melrose Place is a three-block offshoot of Melrose Avenue that is a haven for fashion hounds.
Heading west of Fairfax, Melrose Avenue assumes a far more upscale feel. Slightly north of this area, Melrose Place is a three-block offshoot of Melrose Avenue that is a haven for fashion hounds. Should shoppers go hungry, there are numerous high-end eateries on this section of the street, such as Comme Ca, Mortons, Lucques, Cecconiâ€™s and Ago Restaurant. At the corner of Melrose and La Cienega is the Pacific Design Center, home to approximately 130 design showrooms, two Wolfgang Puck-operated restaurants and a branch of the Museum of Contemporary Art; not surprisingly, many interior design shops are located near it.
Among an ethnically diverse Los Angeles population, cultural consumers are 70% Caucasian. Hispanic persons represent nearly half of the Los Angeles population and just 12% of cultural consumers. The study also showed that far greater numbers of Los Angeles households identify their ethnicity as multiple or other races; very few among the cultural community were found to have that demographic attribute. 56% are male, and 43% are female. The median age is 39, and 54.37% has a college degree. There are 26,388 in the labor force, while 15% work in the office, and 63% are white collar. Thereâ€™s an average 65,000 income, and most families have kids.
Loves photography, shopping at vintage stores, has traveled to multiple big cities like San Francisco, New York, and Chicago. Loves to read non-fiction books and goes to Alfred’s coffee shops at Trader Joe’s.
Webrooming or reverse showrooming is a shopping pattern in which a shopper researches a purchase online or via phone, then comes into the store to make the purchase.
People who would be shopping in the Melrose shopping center are more than likely to leave buying something. They are either well off enough to afford it, or they’re a tourist doing some shopping. They look or the most value in the price.
Nasty Gal has great sales potential, because it is located in such an area that constantly has shoppers. Those shoppers are going to be right up their alley, because they’re always on the next trend, and they’re more then likely to buy something. The location calls for many tourists, so there won’t be any problems getting foot traffic through the door. Them being surrounded by their retailers will also help bring in a crowd due to similar styles.
Address: 8407 Melrose Place, Los Angeles, CA 90069 Parking: Street Parking with limited parking spots in a lot behind the store We picked this specific location due to the surrounding shopping location due the competitors that are surrounding us and the customers match the aesthetic that shop in LA. There is street parking as well as a small parking lot behind the store which allows for the customers to have easy access to our location. This street is a main shopping street in this area of LA so that allows for our store to be successful for the two months that we are open.
Area attractions -Melrose Trading Post -The Grove -Hollywood Farmers Market -CBS Television City- “Price is Right” filming -Beverly Center -Sunset Plaza -Dylan’s Candy Bar
Fire extinguishers, first aid kit, panic buttons, emergency exits, emergency safe meeting location, clear walkways in the building, equipment and shelving mounted to the wall properly, racial and sexual harassment training and hotlines, violence in the workplace training and hotlines.
health & safety
infrastructure The hierarchy of reporting throughout the chain of command. -Sales associates report to sales lead responsible for selling -Sales Leads report to Store manager-responsible for sales associates and operations -Store manager reports to District manager responsible for the entire team and operations -District manager reports to regional manager responsible for overseeing total district and facilitating questions and answers. -Regional manager reports to corporate office responsible for overseeing entire region and making sure everything is up to standard in the company to make sure it is smooth sailing.
area factors Foot traffic -MelRose/Flores 40,000 over 12hrs -Car traffic 20,000+ a day -Public access - Lyft, Uber, & Ride Yellow -Metro Bus and Rail Line #10
Local trade laws -Commercial retail stores-10 ft front min space from doorway -Three parking spot in parking lot if have one connected to the building. -90% of net area of lot 10% of net area must be landscaped -Must meet minimum wage critics -Local trading laws at least once a year the city clerk shall create a loose leaf page booklet of the codes with the new changes and when they will change. It also showcases the codes for local trading laws and regulations that must be followed. Taxes 9.5%
Since we are a special location for only a short period of time we have to get approval from the city to open the pop-up with this conditions of approval in approving a temporary use permit or special event permit, the review authority may impose reasonable and necessary specific design, locational, and operational conditions to ensure that: A. The use or event is limited to a duration that is less than the maximum allowed duration, as determined appropriate by the review authority; B. The site is physically adequate for the type, density, and intensity of use being proposed, including provision of services (e.g., sanitation and water), public access, and the absence of physical constraints; C. The design, location, size, and operating characteristics of the proposed use are compatible with the existing and future land uses on-site and in the vicinity of the subject propertyâ€? (Ord. 01-594 Â§ 2 (Exh. A), 2001)
restrictions and taxes
Concept Justification The pop up shop for Nasty Gal is an important concept because it allows a brand that is strictly online to have a physical store, so consumers have the ability to experience an in-store experience as well as the touch and feeling of hands on merchandise.
We are opening our pop up shop for Nasty Gal for two months, which are August and September of 2018. We chose this date due the time of year with it being a time with high tourism and high traffic due to the tourism. Also, the aesthetic of our brand matches the summer time in general so that is why we chose this time of year and location.
Organizational Chart -Manager - hourly $21-23 -Sales Lead - $12-14 -Sales Associate $10.50-12 -Benefits - 40% discount - 2 days off a week A manager is responsible for performing excellent leadership skills to help keep their employees motivated, to resolve conflicts, and to be able to make hard decisions for their employees and the company. They are also responsible for time management, analytical skills, along with being able to make the best decisions. Managers should also have great speaking and writing skills, and to be able to have the skills to provide the best customer service possible. A sales lead is in charge of performing excellent leadership skills, and to also provide excellent customer service. The sales lead is also incharge of opening and closing the store. A sales associate is in charge of providing the best customer service along with being able to work a POS system, and to make sure the areas and fitting rooms are always kept clean and neat, along with the rest of the store.
target market Household Income - +$150,000 -Mostly no children -Household contains 1-2 people -Age 25-45 -Mix - diversified
-iPads -iPods -Touch screen mirrors in the fitting rooms that charge phone and allow customers to ask for a different color and size. -Touch screen small computers to show how to put outfits together thought out the entire store.
rent Price: $9.63 USD/SF/Mo Property Type: General Retail Sub-Type: Storefront Retail/Office Spaces: 1 Space Space Available: 4,984 SF Building Size: 4,986 S
-Marc Jacobs -APC -Chloe -Theory -Alfred Coffee -The Row -Balmain -Dash
Lily Income $80,000 -24 years old -Blogger from Hollywood California She jams out to Indy music all day long. She orders her clothes from online, so she doesn't have to waste her free time. She loves pieces that POP in photos. She spends her spare time finding cool places to take awesome Insta Shots. She soul cycles and loves longboarding in Venice Beach.
riley Income- parents trust fund -17 years old -Student from Beverly Hills, California She rocks the latest trends and always pushes to be bold. Wants to be a buyer for Nasty Girl in the future She is not afraid to try anything and thrives on the thrill of different. She loves to party and enjoys life. She is always down for a party and wants to stand out among a crowd. She loves to go shopping in Melrose avenue, and is excited to see a pop up shop show up on melrose avenue.
pr kit Within the PR kit it will summarize the reason behind the pop up shop. This will go out to promote event and launch of the pop up shop. This will be release to the public as well as on social media platforms.
Nasty Gal pop up shop will be open for two months: August and September. The promotional plan will have a total of four and a half months of promotion. Two months while the pop up shop is open, two months before the opening of the shop and two weeks after the pop up shop closes to continue to promote the company. The plan includes a press kit, social media outlets, and the launch party a week before the store actually opens.
Press starting in June 2018 with Instagram, Press Release, Website, Invites -Held at the store a week before store opening -Guest: Top Customers in location, Press, Bloggers, Celebrities -Food: Fig and Olive (10,000) -Drinks: Open Bar including bar tenders (6,000) -Music: DJ (5,000) -DĂŠcor: Invites, Linens, atmosphere dĂŠcor for store (4,000) -Roughly 50-70 Guest -Total Budget: 25,000
display details -Marble table up front displaying some accessories like sunglasses and belts along with the girlboss book. -The tables to the side display all the purses and shoes. -There are several racks throughout the store with the clothes. -There will be fixtures around the stores built into walls with clothes hanging from it -All of the fixtures are going to be silver -We will have in the back the cash register along with the dressing room. We will have an animated video wall playing behind the register. -There will be comfortable seating all throughout the store. The character and atmosphere of the store is going to be very clean with soft color walls. The clothes will be giving the store its major pops of colors.
special characteristics Nasty Gal is an online based company and do to that they want to incorporate a monthly box that you can have a personal stylist pick out three full outfits and send them to you via mail and if you like all of the items you can purchase them or return all. The customer would also be able to pick and choose items to keep from each outfit if they only like certain pieces from a particular outfit. We are also going to offer a loyalty program, which allows customers to shop and build up points and once they hit the different tears they will have so much money off their entire purchase. Within the shopping store there will be touch screen mirrors so they can see what outfits look like without even trying them on. Also, online they will have an option were the customer can upload a full body image and they have the option to see what an outfit or piece looks like on them while they are shopping online so they have a better understanding of what the piece looks like before purchasing.
Location Foot Traffic
Percentage of conversion
0.006 Day 140000
Location Foot Traffic Percentage of conversion
Footfall Conv %
Sales Volume Avr. Baskets COGS Sales Volume
0.07 Day 7
$150 300 tot rev 0.06
0.006 Day 750000
0.06 Day 6
$150 200 tot rev 0.06
0.007 Day 652000
0.06 Day 5
$150 200 tot rev 0.05
0.006 Day 50000 5
0.05 Day 4
$150 225 tot rev 0.05
0.005 Day 440000
0.05 Day 3
0.005 Day 40000 3
0.06 Day 2
tot rev 0.06
0.005 Day 45000 2
240 0.006 Day 1
Avr. Baskets Footfall
$150 364 tot rev 0.07
$150 300 tot rev 0.06
Day $675 2
Day $600 3
Day 5 $1,080
Day 7 $1,080
Profit and loss
Jackets Products Acc. Dress
Rent Decor Construction
$54,000 $7,000 $30,000
total CoGS total profit total loss
$1,080tot rev$1,529tot rev $1,080Total $6,548Two months $52,382.40 tot rev $864tot rev $675tot rev $600tot rev $720tot rev total
Two months total
$134,000 Day 1 AVR.PRICE REAL Dress
Jackets REAL $80.00 AVR.PRICE
10 Day 2
AVR.UNIT 8 Day 3
AVR.UNIT 7 Day 4
AVR.UNIT 8 Day 5
12 Day 6
Day 7 AVR.UNIT 17 Day 7
9116 total16units 3641 16
total units 3641
Work Cited https://www.fastcompany.com/3027023/the-secrets-of-a-nasty-gal https://growthhackers.com/growth-studies/nasty-gal-kills-it-ecommerce-how-they-did-it http://wwd.com/business-news/retail/ boohoo-ceo-on-the-reassembling-of-nastygal-10895374/ http://angelfreedman.weebly.com/uploads/1/8/6/8/18680406/marketing_plan_for_ nasty_gal_.pdf https://www.retail-week.com/analysis/analysis-why-etailer-nasty-gal-looks-sweet-toboohoo/7017264.article http://www.melroseavenue-shop.com
Project for my FASM 410 Retail Management class that we created a pop up shop for the online store, Nasty Gal.