STRATEGIC BRAND EXPANSION BUSINESS PLAN
TA BLE OF C ON T EN T S 1. Part I- Brand Set Up
4-15
2. Part II- International Expansion
16-35
3. Part III- Market Entry
36-61
4. Part IV- Integrated Marketing Plan
64-79
5. Sources
80-81
PA RT I B RA N D S E T- U P
C OM PA N Y OV E RV I E W
COMPANY HISTORY Nammos was created in 2003, “in an effort to amalgamate all the charisma and appeal of the fascinating beach of Psarou in a venue that would eventually redefine opulent beach life. For the past decade, Nammos has made headlines around the world, making it an extremely luxurious destination with numerous celebrity appearances.” In 2016, Nammos expanded to the French Alps, and launched Nammos Courchevel 1850, a luxurious ski destination. In June 2018, Nammos Mykonos expanded their space to create ‘Nammos Village’ which features multiple luxury brand pop-ups and launches such as Gucci, Louis Vuitton, Dior, and many more.
CORE MISSION Nammos’ core mission is to provide a unique experience for a luxurious clientele; jet setters, celebrities, influencers etc. To provide customers with extremely upscale services and facilities. “Nammos offers the perfect option when you are thinking of relaxation, invigoration, unspoiled beauty and charms.” To Nammos, “You are not just another customer. You are part of a big family, where every single member is treasured and treated uniquely.” Nammos provides a “place where entertainment never stops and gets blended with amazing natural beauty. This is by far the trendiest destination for rejuvenating dives, laid-back moments by the beach on the comfy sun loungers and is ideal for those of you wishing to reach Mykonos on your private yacht! A real gem in one of the most spectacular places on earth.”
BRAND POSITIONING Nammos is known for being the #1 hot spot destination for partying, relaxing, luxury retail shopping and exceptional dining, creating an experience like no other. Nammos is known for attracting luxury clientele, celebrities and high-end individuals. “When you think Mykonos, think Nammos.�
Psychographics • High end retail consumer • Sustainability focus/Eco Friendly • Luxurious experience • Relaxing getaway • Flying in to the location with ease • Security is a major concern • Lives an “Insta Goals” life • Yacht/Boat Owners Behavioral • Party goer • Quality over quality • Picky customer • Expects the best of the best
TA RGE T CUSTOMER Demographics • 24-45 yrs old • 60% Men + 40% Women • $100,000+ per year income • Currently caters to a high - end customer • Celebrities, influencers, VIP business personnel, old + new money consumers • U.S. & Europe
COMPETITIVE A D VA N TA G E • The “Nammos” name brand • Association with various celebrities, socialities, extremely high end clientele • “Village” retail concept with high-end retail • Known around the world as a celebrity “hot spot” • In Mykonos, the space takes up its own private cove in the island where yachts & seaplanes can arrive right on the property • Exclusivity factor • Known as one of the top rated beach clubs in the world • Aesthetically pleasing environment • Specific to a high end clientele • Greek theme • Top rated restaurant & service
PRICING S T RAT EG Y • Our business goals are to increase profitability, which will be done through our strategic pricing strategy • Our pricing strategy will be based on our current prices we charge in Mykonos, along with aligning our prices compared to our competition • Our market and products have a very large range and will vary anywhere from 15 € to 50,000 € • The majority of our prices will align almost exactly with our Mykonos location • Our prices will be higher compared to local competition in St. Barths due to Nammos’ reputation and location as a part of Eden Rock
MACRO TRENDS • Global economy is expected to grow by 3.1% in 2019, making this a good time for expansion • Plant based menus have become more mainstream • Differs per reigon, but democratization of plantled and plant-based diets (less talk on health and ethics, more of a focus on everyday indulgences being meat free) • Sustainability in packaging of goods, electricity etc. • Semi-automated restaurants becoming increasingly popular • Devaluing and de-socializing of dining out; rise of Postmates, UberEats etc. • Trendy food flavor is Korean, Filipino & Persian style cuisines • Personalized customer experience; digital innovation • Increase of integration of health & wellness experiences; spa treatments, promoting healthy lifestyle, innovative wellness options- CBD, vitamin infused showers, infrared saunas etc. • Rise of Airbnb; this clientele may prefer staying in their own space with similar beach-side amentities
LU X URY FA S H ION TRENDS • Convenience: luxury brand pop-up shops within retail spaces (ex: Dior) • The continuous rise of social media & new technologies impacting consumer spending and their shopping experience • Economic tensions impacting businesses; tariffs on consumer goods etc. • Ethics & transparency of where goods are coming from & being made; consumers are wanting to know where their products are coming from & who is making them • Rearranging of retail landscapes; downsizing of retail stores • The rise of loyalty programs; customer loyalty is more relavant than ever
PA RT I I I N T ERNAT IONA L E X PA N S ION
SAINT BARTHELEMY
SAINT BARTHELEMY ALSO KNOWN AS ST. BARTHS OR ST. BARTS
St. Barths is a Carribbean island, east of the U.S. Virgin Islands. The island is part of North America, except is primarily a French-speaking territory. The capital of St. Barths is Gustavia and is known for its beautiful beaches, high-end hotels and restaurants, and an essential vacation spot for the rich and famous. St Barths is a small island, part of four French territories including the French West Indies, Guadeloupe and Martinique. The climate is tropical all year round with temperatures averaging from 72 degrees to 86 degrees, making it the perfect location for a luxury beach club. The capital, Gustavia, offers a small area of urban life, while the rest of the island is more rural, perfect for enjoying natural landscape beauty. These are all advantages of our chosen location. It is an extremely popular tourist destination for those looking to get away from the mainstream tourist islands in the Carribbean.
lo c at ion
PESTS A N A LY S I S LO C AT ION POLITICAL • Legal system is French Civil Law • Similar to France (Executive Branch)
• Chief of State - President Emmanuel Macron • Head of Government -President of Territorial Council- Bruno Magras • Executive council (territorial,advisory, economic, social & cultural)
ECONOMICAL • The economy of Saint Barthelemy is based upon high-end tourism and duty-free luxury commerce, serving visitors primarly from North America • The luxury hotels and villas host 70,000 visitors each year with another 130,000 arriving by boat • Relative isolation & high cost of living inhibits mass tourism • Limited fresh water resources, all food must be imported & most manufactured goods • Tourism sector creates a strong employment demand and attracts labor from Brazil and Portugal • Currency = Euros
SOCIAL • Population: 7,160 • Ethnic groups: white, Creole, black, Guadeloupe Mestizo (French-East Asia) • Languages: French (primary), and English • Religions: Roman Catholic, Protestant, Jehovah’s Witnesses • Most of the populace are contentrated in and around the capital of Gustavia, but scattered settlements exist around the island periphery
TECHNOLOGICAL • Not as technologically savvy • More transportation will be needed as the importation of goods will be neccessary due to lack of materials on the island of St. Barths.
SUSTAINABILITY • Sustainability efforts • Ocean conservation • Energy conservation (electricity etc.) • Increase of paper straws, no plastic bags etc.
COMPETITOR A N A LY S I S
MYKONOS (current)
• Lack of updated social
STRENGTHS
• Well known luxury beach clubs in Mykonos, Greece • Unique setting in a luxury environment
media platforms • Does not provide a full “customer experience, like Nammos does” • Not as exclusive or well
WEAKNESSES
• Top location in the world
known as Nammos
experience within their settings • Updating social media platforms and using them to its fullest extent • Large increase of travel & tourism within Greece
• The unstable political & economic climate within Greece • Government rules & regulations frequenty change
THREATS
OPPORTUNITIES
• To provide more of an
st barths (future)
• Extremely well known
Barths • Exclusive • Provides a unique customer experience in an upscale destination
natural disasters (hurricanes etc.) • Difficult to travel to • Lack of social media presence
WEAKNESSES
STRENGTHS
luxurious beach clubs in St.
• Location is susceptible to
• Integration of lifestyle activities like Nammos provides (spa, luxury retail etc.) • St. Barths’ growing market potential • Influx of luxury tourism
• Natural disasters frequently destroying properties • Intense competion with other beach clubs in the area
THREATS
OPPORTUNITIES
• Global brand extension
nammos POSITIONING
Our Mykonos competition include three main businesses; Scorpios, SantAnna and Jackie O’. These are all luxury beach clubs located in close proximity to Nammos, however, the target customers differ. The Nammos customer is more exclusive compared to the customers of these other locations. While our competitors do attract luxury clientele, they are not considered as exlusive as Nammos. At Nammos you can expect to see celebrities in their ‘safe place’. If celebrities went to these other locations, they would most likely get bombarded with tourists and feel uncomfortable. This is what makes Nammos different. We want to offer Nammos as a safe place for celebrities and high-profile clientele, where they can feel comfortable in our elite location.
Market Share= 0.001%
Nammos’ beach club competition in St. Barths is comprised of three main competitors; Nikki Beach (being the largest competitor) to Bagatelle and Shellona. Our target customer is extremely similar to these competitors. However, Nammos is different since it can be considered a more exclusive, less mid-market, extremely well-known location. Nikki Beach and Bagatelle are enormous brands with various locations worldwide. This accessibility is what makes our competition differ greatly from Nammos. Nammos can be viewed as a more upscale verion of these beach clubs, which is an advantage since it feels much more exclusive because of its small scale. Nikki Beach, Bagatelle and Shellona’s target customer differs from Nammos, because Nammos customers are seeking a unique, exclusive experience, which includes every aspect of lifestyle; beach, party, shopping, spa, restaurant and wellness all in one place. Our customers will be the ones who are seeking a unique, high-end experience, unlike no other in the world.
TA RGE T M A RK E T ALIGNMENT CURRENT TARGET MARKET MYKONOS
Demographics • 24-45 yrs old • Greece has no minimum age of Alcohol Consumption but you cant legally buy it until 16 • Men + Women • $100,000 per yr income • Currently caters to a higher - end customer • Celebrities, influencers, VIP business personnel, old + new money consumers Psychographics • High end retail consumer • Sustainability focus/Eco Friendly • Luxurious experience • Relaxing getaway • Flying in to the location with ease • Security is a major concern • Lives an “Insta Goals” life • Yacht/Boat Owners Behavioral • Party goer • Quality over quality • Picky consumer
FUTURE TARGET MARKET ST BARTHS Demographics
• 18-50 yrs old • Legal drinking age in St. Barths is 18 • Men + Women • $100,000 per yr income • Currently caters to a higher - end customer • Celebrities, influencers, VIP business personnel, old + new money consumers • Appeals now to a younger customer because it’s closer, making it more affordable for American demographic Psychographics • Looking for a luxurious experience, relaxing getaway • High end retail consumer • Security is a major concern for this customer • Looking for a beach club atmosphere in close proximity to Eden Rock • Similar customer base • Doesn’t mind a more intricate method of travel for an exclusive destination • Nearest airport requires a couple additional transportation methods in order to get there • Yacht/Boat owners Behavioral • Quality over quanity, Party goer, picky consumer
NAMMOS OVERALL STRATEGYLOCATION -Our overall strategy for Nammos is to expand our brand into a new location, while sticking to the brands core values and appealing to a similar, luxury clientele -Our new location, St Barths fits into our overall expansion strategy in a way that is nautral and consistent with our brand & island theme -Our new Nammos location has been strategically selected to keep the Nammos brand appeal -St. Barths is an exclusive luxury destination, extremely similar to Mykonos. -Our expansion into this new location allows clientele to see our concept from a new perspective and allows for an exclusive destination for the 1% of the world to experience.
E X PA N S ION objectives • To expand the Nammos brand and have a yearround location • To provide luxury consumers with a personalized, unique experience that incorporates all aspects of lifestyle and wellness • To introduce amazing luxury retail and shopping experience • To provide our target customers with memorable experiences and events in order to create customer relationships and loyalty. • To increase revenue and brand awareness, whil sticking to our exclusive reputation.
PRICING S T RAT EGI E S ALIGNMENT MYKONOS
&
ST. BARTHS
(CURRENT)
(FUTURE)
-Both use the Euro, which makes understanding of economy easier -Limited resources on the island so alterations to menu and an increase of prices is expected -Mainly imported goods for building & consutuction purposes on St. Barths -Entering the St. Barths market allows us to align with our target market and pricing within the location -Similar clientele vacations in both Mykonos and St. Barths -Both extremely expensive locations -Will offer essentially the same prices in St. Barths as our Mykonos location
CUSTOMER PREFERENCES • “The airport on St Barts is famous for its steep decline and short runway… this can make some air travelers a little nervous so flying might be a concern.” • “There are several ferry departures from St. Maarten daily so this can make things a little more convenient based on your schedule.” • “There are a number of ATMs on the island. Withdrawing money from your US bank account at an ATM is usually the cheapest way to buy Euros.” • “Many establishments do not accept AMEX or Discover so bring your Visa or Master Card.” • “When traveling to SBH from the United States, you will need to account for both a different electrical socket and a different voltage level.” • “Almost every hotel maintains a WiFi account for guests, and offer the passwords on a temporary basis” • “St Barts uses the Euro € as it’s official currency.” • “Bank hours are generally open Monday through Friday, 8am – 12p (noon) And 2pm to 3:30pm” • “Most St Barts restaurants do accept credit cards. There are a few places on the island that do not “Le Select – no credit cards” • “To Fly to St Barth’s you will have to first get a flight to either St Martin (SXM) airport, or San Juan Puerto Rico (SJU)” “From there you will take connector flights to St Barth’s (SBH). The flight to St Barth’s from San Juan Puerto Rico takes about one-hour. The flight to St Barth’s from St Martin takes about 15 minutes. Scheduled Flights leave regularly for St Barts with these providers: St Barth Commuter, Tradewind Aviation, WINAIR, Air Caraibes” • “French is the official language of St Barts, and you will hear a lot of French spoken on your trip. You may also hear some of the locals speaking Créole.” • “Most of the places you will go people will also speak English” • “Service is included by law. Tipping etc.” • “Drive on the right like the US” • Many hotels and companies offer rates based on high, low, and peak seasons. Below are the approximate dates for the seasons. High Season January 7th through April 1. Low Season - April 2nd through December 14th. Peak Season - Dec 15th through Jan 7th” (https://www.sbhonline.com/st-barts-guide/faq/)
LAWS IMPACTING OUR LOCATION & BUSINESS • “A valid passport is required to enter St. Bart’s. This policy has been in place for some time (see State Department Information Sheet – FWI. A visa is not required for US citizens unless you plan to stay for more than 90 days. No visa needed for citizens of the European Union, Canada, Mexico, Brazil, and Israel.” • “You can take pets to St Barts but there is a pet policy; A micro chip is mandatory (after 2011), The animal must be minimum 3 months old, The animal must have received anti rabies vaccine 21 days to 1 year before travel and anti parasitic treatment must have been given by a vet before travel” • St Barts has a 5% tourism tax. Some villa owners include this in the price and some have the renter (You) pay. It is a standard fee but do check to see if it is included; “A new tourist tax was put in place, which was expected and probably the least surprising event of the evening. If you’re coming to stay for a visit, expect to pay 5% per night in tourist tax.” (https://www.saintbarth.com/st-barts-island-new-taxes-approved-989/) • There is no income tax for St Barth residents • “The construction cost for a new home is around 8, 000 euros/m2.” (https://www.caribjournal.com/2016/03/04/how-to-move-to-st-barth/) • Legal drinking age is 18 years old • “A new regulation (October 14, 2016) allows you to bring back Cuban origin cigars or rum purchased while in a third country (St Barthélemy) for personal consumption.”
(https://www.sbhonline.com/st-barts-guide/faq/)
PA RT i i i market entry
EDEN ROCK S T. B A RT H S
entry mode • Nammos initial entry mode into St Barths will be by a partnership with luxury resort, Eden Roc • Nammos and Eden Roc will partner in order to bring Greece to the island of St. Barths • Our target consumer in St. Barths aligns perfectly with the current Mykonos consumer, making the entry into St. Barths a seamless, natural process • Market penetration attracting current non-customers - entering an established industry • Improve loyalty of existing customers in Greece so they come to new location in St. Barths and view it as a destination
LAUNCH TIMING -Construction and building process will begin early January 2020 -Launch date: Early November 2020 -Launch is strategically placed to be right before the peak tourist season in St. Barths (December-January) -Since St. Barths has warm weather all year round, we expect guests throughout all seasons
PROJECT CALENDAR
FLOORPLAN & L AY O U T
The basic floorplan and layout of our space includes a valet drop off and pick up at the entrance, with easy access from the street. Our area will include a large retail space around 2,000 sq ft. along with a spa, restaurant, and 3 luxurious cabanas for daily rent. In between cabana #3 and the restaurant will be sunbeds/beach chairs and umbrellas for rent as well. Our whole space will be around 40,000 sq ft.
Our location has been strategically chosen to fit in with our overall brand strategy and goals. We have partnered with Eden Roc and will lease a plot of land next to ther hotel location. This will increase our brand awareness by partnering with an extremely well known hotel chain. The resort, Eden Roc fills in the missing gap we are missing at Nammos, a hotel aspect. While we are discussing hotel expansion, for now the easiest mode of entry for us into St. Barths is the luxury resort of Eden Rock. Nammos will be located on a plot of land to the left of Eden Rock, located on Baie de St-Jean beach.
• Payment; depending on employees. Minimum wage is around $10 and employees on St. Barths do not have to pay income tax. • We are looking for extremely friendly and outgoing staff members who have the personality, training and experience to suit the needs of high-profile clients
TA LEN T & hiring • # of expected employees = 40-65 • There is enough of the skill set we are looking for within the location. We know this because of the high volume of beach clubs and luxury resorts within the area • Our employees will mostly be French based, since the West Indies is primarily French speaking • We plan to bring in most of our talent from France, and go through the hiring process through Eden Rock’s hospitality group; Oetker Collection • We will hire the employees in either France or St. Barths and go through employee training on St. Barth’s island.
FINANCIALS
BUILDING & PRODUCTION COSTS
EMPLOYEE COSTS
SALES PROJECTIONS BUDGET
I N V EN TORY : ASSORTMENT PLANS
NAMMOS DAILY AMENITIES
LUXURY RETAIL
RETAIL FLOORPLAN & LAYOUT
LUISAVIAROMA:
DIOR GUCCI
-CELINE -FENDI -SAINT LAURENT -DOLCE & GABBANA
CHECK OUT
-LORO PIANA
LINDA FARROW
CHRISTIAN LOUBOUTIN
VILEBREQUIN
ENTRANCE
LOUIS VUITTON
RETAIL RENT COSTS & PROFIT
RESTAURANT
NAMMOS SPA
PA RT I V : I N T EGRAT ED MARKETING PLAN
MARKETING TAC T IC S -Opening/launch event -Interactive emails promoting opening and launch event -Digital Ad Campaigns on Social Media -Cohesive branding across all platforms -Brand/Influencer partnerships and events -Personalized experiences -Daily content posting on all social media platforms -Nammos loyalty program with exclusive benefits and discounts for returning elite clientele -Interactive App creation for while on and off of Nammos locations (map, digital payment/wallet etc.) -Press Release -Media release -Monthly newsletter
customer profile
MARKETING COSTS & BUGET
MARKETING OBJECTIVES
6 month pre launch production
POST 30 DAY LAUNCH
ST BARTHS
X
REVOLVE
Nammos
x
r e v o lv e
weekend event schedule
PERFORMANCE
NAMMOS X REVOLVE MENU APPETIZER Greek Sal ad To m a toe s , s l i ce d cu cu m be rs , o ni on, f eta cheese & Ka l ama ta ol i v e s. S er ved wi th y ou r choi ce of d ress i n g or ol i v e oi l . OR Sp ic y Tu n a & Avocado Mini Tacos Avo cado , r oas ted t oma to, s hred ded roma i n e l ettuce , ve gan che e se , mi l d ch i p otl e sa l sa , cor n torti l l a
ENTRÉE G rilled Sw ord fish L e mo n -o li ve mar in ade , s erved w ith t ahini sauce and a c hoi ce o f e ither g ri lled seas o n a l v eg etab les or greek olive oil french frie s OR Stu ffed Chic ken Fill et S pi nach , f eta a nd pi ne n uts
DESSERT Baklava S w e e t a n d ri c h p a st r y w i th l a ye r s o f f i l o , n u t s a nd h o ne y OR Gelato S e as o na l a ss o r tm e nt *vegetarian & vegan options available
Launch event objectives
SOURCES Beach club industry update: Three key market trends | tappit - the cashless experience. (n.d.). Retrieved from https://justtappit.com/beach-club-key-market-trends Careers. (n.d.). Retrieved from https://www.oetkercollection.com/careers/ Emmer, M. (2018, December 14). 19 Trends That Will Shape The World In 2019. Retrieved from https://www.forbes.com/sites/forbeslacouncil/2018/12/14/19-trends-that-wi ll-shape-the-world-in-2019/#49437d733b45 How to Move to St Barth. (2016, March 04). Retrieved from https://www.caribjournal. com/2016/03/04/how-to-move-to-st-barth/ Howland, D., Ruff, C., Salpini, C., Vembar, K., & Jansen, C. (2019, January 07). 10 retail trends to watch in 2019. Retrieved from https://www.retaildive.com/news/10-retailtrends-to-watch-in-2019/545314/ Huen, E. (2018, December 04). The Top 5 Food Trends To Watch In 2019. Retrieved from https://www.forbes.com/sites/eustaciahuen/2018/11/30/foodtrends/#2f1760ed507e Jourden, A. (2019, January 25). 4 trends likely to shape the global restaurant mar ket in 2019. Retrieved from https://www.restaurantbusinessonline.com/consu mer-trends/4-trends-likely-shape-global-restaurant-market-2019#page=4 Made, N. (2019, March 14). 11 Wellness Trends To Watch In 2019. Retrieved from https:// www.mindbodygreen.com/articles/wellness-trends-2019 Nammos Beach Club Mykonos. (n.d.). Retrieved from http://www.thestylejunkies.com/ portfolio/nammos-beach-club-mykonos/ Nammos Restaurant by the Sea | Mykonos, Greece. (n.d.). Retrieved from https://www. nammos.gr/ Nikki Beach Club. (n.d.). Retrieved from https://www.zoominfo.com/signup/eyJvcml naW5QYWdlIjoiU0VPQ29tcGFueSIsImFwcGlkIjoiNCIsImNvbXBhbnlJZHMiOl t7InZhbHVlIjo1NzMxMjczMCwiZGlzcGxheU5hbWUiOiJOaWtraSBC ZWFjaCBDbHViIn1dfQ==
Nikki Beach Competitors, Revenue and Employees - Owler Company Profile. (n.d.). Retrieved from https://www.owler.com/company/nikkibeach Nikki Beach Plans Significant Expansion of its Hotels and Resorts. (n.d.). Retrieved from https:// www.travelpulse.com/news/hotels-and-resorts/nikki-beach-plans-significant-expan sion-of-its-hotels-and-resorts.html Oceana Beach Club Hotel Competitors, Revenue and Employees - Owler Company Profile. (n.d.). Retrieved from https://www.owler.com/company/oceanabeachclubhotel Places To Know: Dolphin Capital Investors Annual Report(Rep.). (2017). ROAD TOWN, TORTOL A. Retrieved from http://www.annualreports.com/HostedData/AnnualReports/PDF/ LSE_ DCI_2017.pdf St Barts Island :: New Taxes Are Approved. (2015, December 17). Retrieved from https://www. saint barth.com/st-barts-island-new-taxes-approved-989/ Stuckey, B. (2019, January 08). 10 Macro Trends Impacting Food And Beverage Innovation In 2019. Retrieved from https://www.forbes.com/sites/barbstuckey/2019/01/08/10-macro-trends-im pacting-food-beverage-innovation-in-2019/#40e02e0d42f7 The World Factbook: Saint Barthelemy. (n.d.). Retrieved from https://www.cia.gov/library/publica tions/the-world-factbook/geos/print_tb.html Top 7 trends that will shape the fashion industry in 2019. (2019, February 18). Retrieved from https:// pixelpool.com/top-7-fashion-industry-trends-2019/ Why Opening a Pop-Up in a Hotel Should Be Your Next Move. (2019, March 16). Retrieved from https://www.thestorefront.com/mag/why-opening-a-pop-up-in-a-hotel-should-be-yournext- move/ Worldwide, N. B. (2018, June 27). Jack Penrod Announces Nikki Beach Worldwide Hotel Expan sion. Retrieved from https://www.prnewswire.com/news-releases/jack-penrod-announces-ni kki-beach-worldwide-hotel-expansion-300608451.html