CHANCE THE RAPPER
POP POP UP UP SHOP SHOP EVENT EVENT ANASTASIA TUCKER + SAM SMAGALA + ELIZABETH FUCCI
VAN’S HISTORY Founded by Paul Van Doren, his son Jim, and their two partners Serge Delia & Gorden Lee, the Van Doren Rubber Company began shoe production and opened its first store in 1966 with about a dozens more stores opening that same year. The company’s shoes gained a foothold among skateboarders in the 1970s when Sean Penn slapped himself in the head with checkered Vans in Fast Times at Ridgemont High, sales took off. In 1980 Jim took over the firm. However, the operation over expanded, and in 1984 Van Doren Rubber entered Chapter 11. Paul took charge again the next year. McCown De Leeuw & Co. acquired the company in 1988 and took it public in 1991, changing the name to Vans. Sales slowed in 1993, and inventory stockpiled as the company started to import shoes made in South Korea. In 1995 Britannia jeans founder Walter Schoenfeld got Vans more involved in sponsorship of sporting and music events beginning there long term relationship with both. Vans began marketing its own clothing line in 1996 after that. Sales growth slowed in 1998 as Vans’ Japanese distribution system fell apart, and the company closed its only US plant, cutting nearly 300 employees. Vans redefined vertical integration in 1998 by opening a 46,000-sq.ft. skate park -- including an 80-ft. vent ramp -- in Orange, California. It also purchased Switch, a maker of snowboard boot-binding systems, and it opened its first European stores in Liverpool and Barcelona. Vans formed joint ventures with Sunglass Hut International to make and sell Vans and Vans Triple Crown sunglasses and teen apparel retailer Pacific Sunwear of California to make and sell Vans apparel in 1999. Vans also launched its Triple Crown store concept and opened two more skate parks in California that year. In 2000 Vans built skate parks in Texas and Virginia and by 2001 had expanded its number of skate parks to nine. The company delved further into the music business in 2002 with the formation of its own music label, Vans Records. Also in 2002 Vans added protective gear to its product list when it bought Mosa Extreme Sports, maker of Pro-Tec helmets and pads. The next year Vans retooled its women’s line and launched a new line called the Vault Collection that is based on styles popular in the 1960s and 1970s. In 2004, Vans announced it would merge into North Carolina based VF Corporation.
CORPORATE INFORMATION - Private subsidiary - Annual sales - $760M - 2.2K employees - 585+ stores worldwide
STRATEGY
While the company is known for its footwear, it is working to grow the Vans apparel business and its market share among female customers. Launching a Hello Kitty line of Vans has helped to pique the interest of women. As a way to market itself nationwide, its parent company owns 70% of the Vans Warped Tour, a music festival that showcases some 40 punk rock bands that perform in more than 40 North American cities each summer. Internationally, Vans has begun to tap the huge market in China, where it boasts about half a dozen in-store shops in department stores in Beijing and Shanghai, and its own Vans store in Shanghai. Elsewhere, the retailer operates an outlet on Carnaby Street in London as its flagship retail store in Europe.
MARKET ANALYSIS
The market is expected to see healthy growth over the forecast period. The apparel and footwear market is expected to grow, albeit at a slow pace, over the next five years. Donald Trump’s unexpected victory in the US election has rapidly increased uncertainties surrounding future economic policies and the market. In addition, players in apparel and footwear will continue to face the challenges of changing in consumer behavior and dealing with the faster pace of the fashion cycle. The retail landscape will continuously change and increasingly become a tech-driven marketplace. Retailers will need to improve the seamless omni-channel shopping experience to accommodate rapidly changing consumer needs.
DIRECT
COMPETITORS Nike
Timberlands
Dr Martens
Adidas
Jordans
DC
Uggs
Emerica
Toms
INDIRECT
Converse
POSITIONING MAP
Vans Sales Revenue 2016: $12 Billion 2017 Q3 Revenue: $3.5 Billion
BRAND ANALYSIS - Product - - Symbol - - Organization Sneakers + Apparel Logo: Mens Womens Kids Skate Surf Snow
Events Triple Crown Series House of Vans
- Person -
Vans is a shoe for the alternative crowd. The shoe is worn by skateboarders, surfers, and other alternative professionals.
CEOs: very simple, the word Paul Van Doren, Vans with the end of Gordon C. Lee, James the V going over the Van Doren rest of the letter. The Owner: V going across the VF Corporation rest of the letters Headquarters: makes is look like a Costa Mesa, skate ramp. California, U.S. Slogan: Website: the slogan “Off The www.vans.com Wall” came about because “Off the wall was a saying that the skaters back in the mid 70s used to say when riding pools. Checkered Rubber sole Vans Sidestripe
TARGET MARKET Vans targets a younger demographic of people ages 18-27 who enjoy participating in outdoor extreme sports like skateboarding, surfing, biking, or snowboarding. These customers are usually extremely loyal to the brand and fit the fast paced lifestyle Vans embodies.
RICKI AGE: 25
MICHELLE AGE: 20
- Works as a graphic designer and makes $60,000 a year - Graduated from the ArtCenter College of Design in California - Lives in downtown Seattle - Goes to the skatepark on the weekends with his amigos - Is a fan of the cheap beers found in most gas stations - Has a dog that he spoils with outdoor adventures and car rides - He’s a khaki man, no jeans to his name (“he is the most basic man”) - His favorite band is The Orwells - Has a very large record collection that just keeps on growing
- Graduated from San Clementa High School - Dreams of traveling the world - Lives in California and has her whole life - Has a partime job at a pizza shop making $11.00 an hour - Favorite activity is surfing and you can always find her at the beach - Her toes and fingernails are always painted bright blue - Favorite bathing suit brand is Roxy - Loves getting chocolate milkshakes from her favorite diner - She never leaves the house without headphones
Concept: Vans X Chance the Rapper Vans designers and artist Chance the Rapper have come together in creative collaboration to produce an exclusive product mix for Vans and Chance the Rapper fans alike. These products will be first sold in a 14 day long pop-up shop in Chicago before becoming available in stores and online. As part of the grand opening of are pop-up shop we will have a performance from Chance the Rapper himself happening only on the first night of the shop opening. Date of pop-up event: September 21st - October 5th, 2018 College students back in town, still warm but starting to get a little colder
ware house location rent date justification
1522 W Hubbard St Chicago, IL 60622
Chicago is full of college and artistic people. Skating is very popular within the area. Within the artsy side of Chicago, they have a sizable theatre scene. They are known for their music scene as well. They have several music festivals including Lollapalooza. It is the home of a lot of rap music including the home of Chance the Rapper.
FLOOR PLAN
Skate Lessons: $20/half an hour General Admissions Charge to skate: $5.00
LAUNCH PARTY
Overview: One night performance by Chance the Rapper, will be recorded on drones to be played back for the diration of the shop
TICKET
S
General Admission: 4,000 - $50 Early Admission: 600 - $70 Includes early entertain for sound check
VIP: 200 - $100 Total Includes photo op with Chance 5,000 = $280,750 VIP Package: 150 - $125 Includes photo op with Chance, free t-shirt, free signed CD
Contest VIP Tickets: 50 Competitions for best vans customization, best skate tricks
BUDGE
Warehouse Rental/Construction: $250,278
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Stage Rental: $2,400 Skate Park: $5,186 half pipe ramp, 2 rails, step ledge, quarter pipe ramp, speed bump
Film Crew: $3,000 Graffiti Artist: $15,000 Radio Marketing: $20,000 Social Media/Email Blasts: $10,000 Poster Marketing: $10,000 Drinks: $5,000
PR KIT
Press Release: For Immediate Release Chicago, IL - Vans is taking on another collaboration for their apparel and skateboards. Vans is teaming up with Chance the Rapper. Together they will release shoes, skateboards, and apparel. There will be exclusive overalls for the die hard fans of Chance the Rapper. There will be an exclusive pop up shop that will sell the collection starting September 21st. The collection will be released worldwide on October 10th. About Vans: Vans was founded in 1966 by Paul and James Van Doren, Serge Delia, and Gordon Lee. It has stood for authenticity in youth lifestyle, music and action sports since day one. The Vans brand is all about living “Off The Wall.” About Chance the Rapper: Chance the Rapper is an American rapper, singer, philanthropist, and record producer from the West Chatham neighborhood of Chicago. He began to gain recognition following the release of his second mixtape, Acid Rap. He has been known through his collaboration with artists such as Kanye West, Justin Bieber, 2 Chainz, Kirk Franklin, and the Chicago Children’s Choir.
Ambience: The ambience is going to be very industrial. The main feature of the store will be a skate park.
Visual Display: The pop up experience is going to be an indoor skate park that will feature places for skaters from beginners to pros. The retail space will be featured in a loft with a lounge for the skaters to rest. Winners of the skating competition will be featured on the walls of the retail shop. There will be pedestals to display the shoes.
Objectives: The goal is bring brand awareness and build the relationship of the consumers to the brand. We want to bring more foot traffic through providing a place to hang out and relax as well as skate. This pop up helps show what it means to live “Off the Wall.”
ADVERTISEMENTS
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STREET ART
SOCIAL MEDIA
-Press Preview -Live recordings of event, using Chance/social media influencers/bloggers -Hashtags -Facebook Event Page -Document the building of the pop-up shop on Instagram, promo videos -Contest
#cha
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Custom Vans Contest: What do you think Vans/Chance The Rapper shoes will look like? Local email contest to get the chance to have your custom Vans + Chance sneackers displayed in the pop up shop AND win VIP tickets to the launch party concert
Skate Tricks Radio Contest: Submit your best skate tricks to iheart radio for a chance to win VIP tickets to the Vans + Chance The Rapper launch party concert. You and 4 friends will be flown out from anywhere in the US for the real VIP concert experience with Vans and Chance.
Contest to be released 3 months before the event
Unit Breakdown Description % to total Total Units Shirt One 10 2,000 Shirt Two 10 2,000 Shirt Three 10 2,000 Hoodie 5 1,000 High Top Shoes 7 1,500 Low Top Shoes 6 1,300 Low Top Shoes 6 1,300 Slip On 6 1,300 Overalls (Male) 5 800 Overalls (Female) 5 800 Long-Sleeve Shirt 5 1,000 Skateboard Deck 1 5 750 Skateboard Deck 2 5 750 Skate Board Deck 3 5 750 Skateboard Deck 4 5 750 Black Wheels 3 60 Trucks 2 55 100 18,115
Retail Per Unit Total Retail $30) $60,000.00 $30 $60,000.00 $30) $60,000.00 $55 $55,000.00 $70 $105,000.00 $65 $84,500.00 $65 $84,500.00 $60 $78,000.00 $80 $64,000.00 $80 $64,000.00 $35 $35,000.00 $65 $48,750.00 $65 $48,750.00 $65 $48,750.00 $65 $48,750.00 $20 $1,200.00 $15 $825.00 Total $947,025.00
UNIT BREAKDOWN
Style Nbr. 5555 5556 5557 5558 5559 5560 5561 5562 5563 5564 5565 5566 5567 5568 5569 5570 5571 Total
SALES FORCAST
PROMOTIONAL PLAN
1 Store Manager -$25/hr - Over sees Everything - Customer Service - Training and Coaching the team - Ensures that everything is running smoothly
10 Sales Associates- $12/hr - Customer Service - Operate Cash Registers - Ensuring the cleanliness of the store - Ensures product is always kept up to visual standers
1 Security Manager - $20/hr - Manages the security - Ensures everyone’s safety - Trains and Coaches the team - Ensures that everything is running smoothly
1 Sales Manger - $20/hr - Customer Service - Training and Coaching the team - Ensures that everything is running smoothly - Balancing Cash Registers
4 Assistant Sales Managers- $15/hr 1 Skating Park Manger - $20/hr - Customer Services - Manages the workers - Balancing Cash Registers - Training and Coaching the team - Ensure the visual merchandising standards are met - Ensures compliance and adherence to policies and procedures, standards and practices, and company directives. - Fills in where is needed 14 Bouncers/Security - $15/hr - Regulate amount of people in building - Check people in at the door during launch event - Monitor building for theft 9 Skating Park Workers/Trainers -$12/hr - Teaching new skaters - Ensures the skaters are following the regulations
Store Manager
Sales Manager
Skate Manager
Assistant Sales Manager
Sales Associates
OPERATIONAL PLAN
Security Manager
Bouncers
Skate Workers
INCOME
Sales: $12,507 + Ticket Sales: $280,750 + Skate Lessons: $1,800 + Skatepark Admissions: $5,500 =
EXPENSES
$300,557 HR Payroll: $32,990 + Rent/Construction: $250,278 + Launch Party: $5,400 + Marketing: $55,000 + Refreshments: $5,000 =
$34,668
Profit = - $48,111
THANK YOU!