POP-UP SHOP
Bogota, Colombia Winter Holiday - 2014 Camila Rengifo Tsz Kwan Yang Andrea McCarrel
TABLE OF CONTENTS EXECUTIVE SUMMARY ..........................................................................01 COMPANY SUMMARY .......................................................................02-12 MARKET POSITIONING ......................................................................13-14 CURRENT DISTRIBUTION ..................................................................15-16 COMMUNICATION & PROMOTION ........................................................17-21 MARKET ANALYSIS ..........................................................................22-41 TARGET CONSUMER ........................................................................42-45 STORE LOCATION ...........................................................................46-48 STORE DESIGN ...............................................................................49-58 PRODUCT PLAN ..............................................................................59-67
TABLE OF CONTENTS FIXTURE PLAN................................................................................68-72 COMMUNICATION PLAN ........................................................................73 MARKETING PLAN ...........................................................................74-78 FINANCIAL PLAN.............................................................................79-84 CONCLUSION ................................................................................85-86 APPENDIX & SOURCES ....................................................................87-101
EXECUTIVE SUMMARY Projected in Bogota, Colombia, this initiative is aimed to continue the Prada Group’s expansion of distribution into South America. Currently, there is no Prada Group presence in Colombia. However, the brand is in high demand in the area. Also, the Prada Group has spent the last year entering South American markets such as Brazil and Mexico. According to CPP Business of Luxury, Colombia is set to overtake Brazil in terms of growth rate in its luxury market by 2014. This makes colombia the next This pop-up shop will serve as a revenue -driver, a promotional tool, and a test of Miu Miu’s place in Bogota’s retail market. The pop-up shop will take place in the outdoor square around Andino, a fashion mall in Bogota’s premiere shopping district. The initiative will run through the holiday season of 2014. The aims of this project include increased sales, gained market data for Colombia, and increased brand awareness. We will measure success by sales in comparison to sales projections and in comparison to that of local competitors.
COMPANY SUMMARY history
“For Prada, fashion, luxury and style have always been core aspects of a project that goes beyond production of clothes, footwear and handbags. Careful observation and interest in the world, society, and culture are at the core of Prada’s creativity and modernity. This has pushed Prada beyond the physical limitations of boutiques and showrooms, leading us to interact with diverse, seemingly distant worlds,and introducing, very naturally, a new way of creating fashion”. -Miuccia Prada and Patrizio Bertelli.
COMPANY SUMMARY The PRADA Group is one of global luxury retail Company own four significant international brands, Prada, Miu Miu, Car shoe and Church’s. Miu Miu was named after our president, Ms. Miuccia Prada and created a brand with individual identity from Prada in 1993. Since then, Miu Miu has played a major roles in the high fashion market from design, manufacture to delivery products such as handbags, leather goods, footwear, ready-to-wear apparel, accessories, eyewear and fragrances. “Miu Miu is characterized by its avant-garde, sensual and provocative style, which seeks to evoke a luxurious sense of freedom and intimacy with attention to detail and high quality. Miu Miu targets women driven by a modern spirit of exploration and experimentation in their fashion choices. Our Group has made major efforts since 2005 to enhance Miu Miu brand’s independent identity.” Miu Miu currently ranks number 2 as brands that have a higher net sale that is close to Euro 2 million after Prada (near
COMPANY SUMMARY Euro 1 billion) in the whole group. According to top 100 Italian brand, Miu Miu ranked number 51 with USD $ 374 millions. 2013 interim financial report shown, Miu Miu had six franchises store and owned 102 stores. A year later, the brand gains one franchises store and 31 shops. Global expansion is the main strategy to accomplish the revenue growth in the past and to improve brand’s mass media in the future. Last year, Miu Miu brand had 16.3% change ended in twelve months with total net sale of Euro 512.8 million which is USD 685.3 million and total net revenues of Euro 514 million which is USD 686.9 million. PRADA group continued to maintain the brand with 32 new open DOS worldwide including 8 in Europe and Asia, 7 in Americas, 3 in japan and middle east, 2 in Italy and one in Africa.
COMPANY SUMMARY SWOT ANALYSIS
STRENGTHS
•International luxury brand •Established quality/price acceptance •Good customer service •High brand recognition •Strong distribution •Strong retail concept •Recognizable logo •Exclusive product in certain area •Attracts millennial •Wide product assortment •Demand for Miu Miu in Colombia -Colombian consumers have travelled to obtain the brand -obvious high demand
WEAKNESSES
•Minimum knowledge of Colombia’s market •Competitors established already in Colombia such as -Louis Vuitton, Valentino,Loewe, Hugo Boss, Dolce & Gabbana, Bvulgari •Very selected target audience
COMPANY SUMMARY SWOT ANALYSIS
OPPORTUNITIES
THREATS
•Extend global expansion in South America •Social media expansion: Twitter, Facebook, Instagram, YouTube, Vine, Google+, LinkedIn, Tumblr -Luxury industry to connect with consumer •Emerging markets •Take advantage of brand awareness early in emerging markets
•Targeting a new consumer •Colombia’s consumer shops differently •Trademarks and intellectual property •Impacted consumer market •Economic downturn
COMPANY SUMMARY
COMPANY SUMMARY BRAND AS A PERSON
Miu Miu personified would identify a young, eclectic individual. She is very quirky, yet still ultra-femninine and playful. She is a has a downtowner soul with a wealthy background of old money. She has a glamorous western European sense of style. Her lifestyle is spontaneous and creative; but appreciates high-quality luxury products, status pieces, and exclusivity with her purchases.
COMPANY SUMMARY BRAND AS A PRODUCT
Miu Miu carries a wide range of merchandise. Miu Miu consists strictly of womenswear merchandise. We offer ready-to-wear, handbags, accessories, shoes, eyewear, and jewels. Miu Miu’s product consists of high-quality, luxury goods.
COMPANY SUMMARY BRAND AS A SYMBOL
Aside from the obvious symbol of Miu Miu’s logo, there are plenty of visuals that are derived from or associated with Miu Miu’s style. For example, the patterned or embellished socks worn with colorful or printed heels occurs almost every season for Miu Miu. Prada and Miu Miu are both known for using Madras leather for handbags and accessories. Matelasse textured nappa leather is also commonly used on Miu Miu’s handbags. Miu Miu has introduced many recent trends; the decorative removable collar being one of the most memorable.
COMPANY SUMMARY BRAND AS A ORGANIZATION
•Publicly Traded •European -Miu Miu, Prada, and Carshoe •Italian -Church’s Shoes •English •100 years old •Experienced •Detail-Oriented •Growing •Female Power -After founder Mario Prada; Luisia Prada and now Miuccia Prada
COMPANY SUMMARY BRAND IDENTITY MATRIX
The brand identity matrix shows many things about Miu Miu. First, the personification of Miu Miu helps to inspire the product assortment, visual merchandising, and the color story. If Miu Miu embodies a spontaneous, girly, and quirky individual; a basic color assortment with fun pops of color is most appropriate. The “brand as a product” and “brand as a symbol” categories are important because they act as a justification for the product assortment. The staples and iconic styles will always be huge drivers of sale. If Miu Miu is known for specific types of leather and texture on handbags, those specific items should be included in the pop-up shop. Otherwise, the consumer will enter the pop-up shop and see merchandise that seems foreign to the brand. Consumers want to leave pop-up shops with something that embodies the brand’s aesthetic. Examining the brand as an organization is integral to understanding how to plan and act within the standards of Prada Group. Understanding the history and roots of the group is necessary to understanding the basics and staples of the Prada Group.
MARKET POSITIONING PRICE/ACCESSIBILITY MATRIX
MARKET POSITIONING PRICE/ACCESSIBILITY MATRIX COMMENTARY
Eleven luxury brands that listed in the chart are general competitors Miu Miu had. They are Louis Vuitton, Chanel, Gucci, Fendi, Hermes, Prada, Burberry, Alexander McQueen, Dolce & Gabbana, Versace and Giorgio Armani. As we seen, the luxury market in Bogota, Columbia is continue growing. It will be an opportunity for the brand, Miu Miu to expand their business in South America after Brazil. Currently, Miu Miu had 133 direct operation stores and only ship to 20 countries. They have total average price point of USD$1,680 which is pretty low compare to other competitors as well as accessibility. Out of the 11 general players, Louis Vuitton, Versace, and Giorgio Armani are the only three main rival. Louis Vuitton clearly have a higher price point but they only have 464 store compare to Armani. Versace’s average price point are little bit expensive than Miu Miu. For the accessibility, Versace only have 123 stores compare to Miu Miu’s 133 stores.
CURRENT DISTRIBUTION
CURRENT DISTRIBUTION The table (left) shows the distribution for Miu Miu and its volume of sales for each channel. Dos means directly operated stores. We can see that DOS makes the most sales and money with 80.3% of sales. By January 31 2013 Miu Miu’s directly operated stores had made $421,067 (amount in thousands of euro). As for independent customers and franchises it constitutes of 19.7% and by January 31 2013 Miu Miu’s wholesale and franchises made $91,695 (amount in thousands of euro). Prada group over the years has developed a strong network of directly operated stores alongside franchise stores and a significant presence in selected high end multi brand stores and luxury department stores. The wholesale channel (department and multi-brand) guarantees a number of points of sales in prestigious locations on key markets. This sales channel has been recently reviewed with the aim of being more selective in order to achieve synergy with the retail network expansion and to maintain the positioning and internal image of the brand. As a consequence the number of points of sale has decreased considerably.
COMMUNICATION & PROMOTION “Effective communication is key to building and maintaining a unique and powerful brand image. From impeccably executed fashion shows to award-winning advertising campaigns, Prada group continues to successfully create an appealing and cutting-edge image that attracts an international customer base. Strong editorial coverage of Prada and Miu Miu, featured prominently on hundreds of covers of the most important fashion magazines worldwide, contributes to the visibility of both brands’ products.”
COMMUNICATION & PROMOTION ADVERTISING
Above is the ad campaign of Miu Miu eyewear collection/ Spring-Summer 2013.
Miu Miu engages in all types of traditional advertising activities •Print and magazines: Miu Miu advertises in many important magazines such as Vogue, Harpers Bazaar, Elle, Glamour, etc. •Television campaigns: Famous for always being engaging and different. This seasonal campaigns can be found not only in television but you tube and their website. •Movies: They generally launch in the Venice film festival. They are producing short films that make an entire story called Woman’s tails. They have produced 6 short films they are called The powder room, Muta, The woman dress, Its getting late, the door and the last one they produces this year was Le donne della Vucciria.
COMMUNICATION & PROMOTION ADVERTISING
•YouTube: Miu Miu has their own channel in you tube were you can find all of the television advertising campaigns, the short films and behind the scenes, fashion shows, and a great Gatsby video were they show the trailer emphasizing that they collaborated with the costumes for the movie. •Social Media: They participate in Instragram, Facebook and Twitter. •They also participate in events and sponsorships that enhance the brands stylistics image. •Fashion shows every fashion week take place in Paris. •Miu Miu actively participates in parties and after parties as promotional activities. They closed Paris fashion week with an after party. In every important event that they are present they do after parties or promotional parties.
COMMUNICATION & PROMOTION DIRECT MARKETING
Personal email is the direct marketing initiative for the brand. Miu Miu reaches out to their customers by alerting them of new campaigns online.
COMMUNICATION & PROMOTION PROMOTIONAL SALES
Miu Miu does not participate in promotional sales themselves, as the brand is concentrated on keeping the price offering within the exclusive, luxury category. The only way shoppers can obtain a Miu Miu product at a lower price would be through department store sales, resellers like eBay, or off-season websites like The Outnet.
MARKET ANALYSIS LOCATION OVERVIEW
In growth-rate terms, Latin America’s luxury sector should expand 10-15% annually by 2017, slightly slower than the 15-20% average growth chalked up in the20072012 period, but a robust result nonetheless. By 2022, Latin America should account for 7% of luxury brands’ total sales (including apparel), up from 3-4% now. The number of Latin American “buyers” (to distinguish those who buy abroad instead of locally), should double to around 8%. (bain & company) Latin America has a growing class of highly educated professionals that is aware of global brands and trends and is becoming part of the global elite - high-earning educated professionals that in developed markets account for some 20% of the population. In Latin America, this new group of well-heeled consumers makes up for 12-15% of the population. They are mainly in Brazil, which is said to be generating 100 millionaires a day (in US dollars), but increasingly in Mexico, Argentina, Chile and even countries like Peru, Colombia
MARKET ANALYSIS LOCATION OVERVIEW
and Uruguay. Pedraza notes these consumers buy luxury in the same way others do around the world. “They like more vibrancy and colors but they still buy the Gucci’s, Burberry and Louis Vuitton’s of the world,” Pedraza says, adding that there is a uniformity (as related to other global elite consumers) when it comes to wearing the trendiest brands. (ccp) As for Colombia the luxury market has seen a 30% growth in the last 5 years. An actual proper size of the luxury market was unavailable but here is the growth and estimate of what it represents. Many luxury brands have opened their first store in Bogota between years 2011 and 2013. CPP luxury industry management and consultants Ltd estimates the current value of the luxury fashion sector is of $250 million dollars with a potential to be USD 400 million, including brands which are not yet present as well as shopping abroad.
MARKET ANALYSIS LOCATION OVERVIEW
The following graph represents the retail sales in Colombia from January 2012 to July 2013.
MARKET ANALYSIS The chart (left) shows the Global retail development index. The index shows the top 30 emerging markets. It shows the market attractiveness, country risk, market saturation, time pressure and changed in rank compared to 2012. Latin America has taken a dominating position in the GRDI, occupying the top three positions and seven of the top 30 overall. A strong and growing middle class, controlled inflation, sustained economic growth, and continued economic and political stability have increased consumer and investor confidence and created a favorable environment for retail development. The expanding middle class continues to offer important growth opportunities, particularly as the retail footprint expands beyond main cities into the second and third tiers, where consumers increasingly prefer modern retail. And many local and regional retailers are providing strong competition for many of the international leaders. For example, Chile’s Cencosud has expanded
MARKET ANALYSIS into neighboring countries, gaining strength in markets such as Peru and Colombia. This year we also see important shopping mall activity. Brazil’s Village Mall and JK Iguatemi and Chile’s Costanera Center have served as platforms for the launch and expansion of international brands in Latin America. Colombia (18th) reaches its highest GRDI ranking since the first Index in 2002. Long-term growth prospects appear strong, and strengthening domestic capital markets could reduce the economy’s vulnerability to external forces, particularly the U.S. economy. Steady GDP growth (about 4.2 percent per year since 2001), low inflation rates (3.2 percent in 2012), moderate deficits, a floating exchange rate, and a strong political consensus on major economic policies give ample reason for optimism in coming years. Portuguese retailer Jerónimo Martins began operating in Colombia at the start of 2013, with plans to open 30 to 40 new stores and invest $523 million in Colombia through 2015. When analyzing the GRDI (global retail development index) in the gain of points since 2012. Colombia shows a +5. The only countries that grew at the same rate were Mexico, Turkey and Kazakhstan.
MARKET ANALYSIS
After analyzing all of the data above there is no doubt that the economical growth in Latin America is high and all the luxury brands have it on their radar. As for Colombia we can say that the country has a high retail development and a steady economic growth. The middle class is growing giving a lot more space for luxury items to expand. The potential Colombia has is huge CCP gave an estimate that it could grow to USD 400 million. In the last 5 years the luxury market has grown a 30%. I am sure that by 2014 their GRDI will increase positioning them into “on the radar” ranking. Luxury brands are starting to make their moves to Bogota, Colombia’s capital. If this economy keeps growing and the estimates are right Miu Miu needs to start making a presence in this emerging market because some of the competitors such as Loewe, Carolina Herrera and the few others we will mention in the key players section already have a competitor advantage.
PESTEL ANALYSIS POLITICAL
-Democratic - Undertaken wide-ranging reforms to address structural weaknesses and improve competitiveness, notably in the context of various free trade agreements - Management of public finance has been relatively prudent, and debt has been kept under control -Anti-corruption laws have had little impact, and the judicial system remains vulnerable to political interference - Insecurity is still an issue
PESTEL ANALYSIS ECONOMIC
- Colombia’s economic freedom score is 69.6, making its economy the 37th freest in the 2013 Index - Colombia is ranked 5th out of 29 countries in the South and Central America/Caribbean region - Unemployment 9.2% - GDP 4.4% 5-year compound annual growth - The investment regime can be cumbersome but is generally transparent. Foreign investment receives national treatment, and 100 percent foreign ownership is allowed in most sectors. - Private institutions dominate the growing and wellcapitalizedfinancial sector - Exchange rate is 1 Colombian peso = 0.0053 dollars -The top income and corporate tax rates are 33%
PESTEL ANALYSIS SOCIAL
The social status in Colombia is divided as followed • Stratum 1 : Lowest income. • Stratum 2 : Low-Middle class. • Stratum 3 : Middle class. • Stratum 4 : Upper middle class. • Stratum 5 : Upper class. • Stratum 6 : Wealthy. Only the 5% of Colombians fit this category •Mostly young people /15 -19 and 20 - 24 years old •90.4% of the population is literate •The population growth rate for 2012 was 1.128%
PESTEL ANALYSIS TECHNOLOGICAL
•Colombia -third world country - a little behind in technology •1 of 8 Latin American countries with a satellite •Medicine in Colombia- one of the most advanced in the world •Per capita IT spend is projected to rise by 47% by 2016 this means that Colombians really are into technology and buying upcoming technologies •22.538 million internet users in 2009 •Newspapers – Online newspapers are frequented by 50% of Colombian Internet users, which is higher than the world, average which is 40.8% •Searches – Colombians ranked #1 in the world for searches per user with an average of 233 •Social Media – 96% of all Internet users in Colombia use some sort of social media. •Colombia is in the top 10 countries in the world in terms of time spent on social network sites at 7.9 hours a month. -Facebook and Twitter are the top social networking sites but other popular sites include Badoo and slideshare •Mobile – For every 2 cell phones replaced, 1 of them is a smart phone. -- As of 2011 tablets account for 41% of all web traffic in Colombia -- Colombia ranked 3rd among Latin American countries in noncomputer traffic •Entertainment Sites – 96% of Internet users used an entertainment site in January of 2012 -Multimedia are the most popular -->Youtube, iTunes software, Daily Motion, Real.com, and Cuevana.tv
PESTEL ANALYSIS ENVIRONMENTAL
•Electricity production is of 51.01 billion kWh (2008 est.) •Electricity consumption is of 38.82 billion kWh (2008 est.) •Carbon dioxide emissions from consumption of energy: 72.31 million Mt (2010 est.) •Colombia -regional leader in take-back laws for end-of-life products - focus on e-wastes for some time •Logistical barriers to implementation including recycling capacity -Recycling is not as easy as the USA •Colombia’s environmental ministry, MinAmbiente, -closer to adopting and implementing standards to measure and enforce its air quality standards
PESTEL ANALYSIS LEGAL
•In Colombia is illegal to advertise showing your competition. -an ad showing Pepsi vs Coca Cola is illegal •ordinary working hours are those agreed upon by the parties, or in absence thereof, the legal maximum of eight hours a day and 48 hours week • Minimum wage is $589.500 this is $314.49 dollars (monthly) •The companies are required to pay health insurance for their workers
PORTERS FIVE FORCES
Bargaining Power of Suppliers •Eyewear - High -2003-Prada Group entered into a licensing agreement with Luxottica -->80% of the world’s eyewear brands •Other Accessories and Products - Medium/Low -Samples produced and checked in-house -->Third party manufacturers -Contractually
PORTERS FIVE FORCES Bargaining Power of Customers •Medium/Low -Prada Group has opened Directly Operated Stores -January 2013: 81.8% of net sales from DOS/18.2% from customers -January 2012: 77.9% of net sales from DOS/22.1% from customers -Highly sought brand
Threat of New Entrants •Low -Expensive and difficult market to enter -Miu Miu covers a large assortment of merchandise -New entrants being competitive in every category- highly unlikely
PORTERS FIVE FORCES
Threat of Substitute Products •Medium High -Stores like Zara and H&M -> knockoffs -Produced rather quickly -Much lower price tag Low -Recognizable products -Logo, signature leather, iconic pieces
PORTERS FIVE FORCES
Competitive Rivalry within an Industry •Medium/High Low -Pop-up shop opened outside of Andino -a street full of designer brands High -Highly sought brand -One of the first pop-up shops in Colombia -Miu Miu customers already in place
MARKET ANALYSIS KEY PLAYERS
The data from atkearney.com shown,� Colombia GDP growth about 4.2 percent per year since 2001, low inflation rates was about3.2 percent in 2012, moderate deficits, a floating exchange rate, and a strong political consensus on major economic policies give ample reason for optimism in coming years.� By diminishing the weaknesses to external force in Colombia domestic market. Some others are already established in Bogota. Loewe, Louis Vuitton, Carolina Herrera, Dolce Gabbana, MaxMara, Versace collection, Hugo Boss, Adolfo Dominguez, Ermenegildo Zegna, Cartier, Bvgulari, Salvatore Ferragamo and Armani Exchange. Cartier, Bvuglari, Armani and Hugo Boss are franchised. The only multibrand distributors are Le Collezioni and Luxus. Le Collezioni has six locations in capital city, Bogota. One location in the city of Medellin and One recently opened in the city of Barranquilla. At Le Collezioni stores, merchandising and interior fittings fall short of a
MARKET ANALYSIS KEY PLAYERS
luxury concept, not to mention customer service. Most sales assistants speak no languages besides Spanish. Brands that are included in Le Collezioni are Prada, Balmain, Fendi, Salvatore Ferragamo, Zegna and Hugo Boss. Luxus is the second largest muti-brand operator, one at the airport and three in Bogota. Miu Miu opened two new stores in Sao Paolo and Rio de Janeiro, Brazil, first time reaching out Spanish speaking consumers and this will be the starter for our pop-up shop. Second, it will be easier for local consumer to visit the store instead of traveling to the state and purchase product. From the first quarter of last year, Miu Miu had increase 30% sales growth rate which is reaching total of 107,3 million euros. We believe this new location will have a high potential growth for the brand.
MARKET ANALYSIS DIRECT COMPETITION
• • • • • • • • • • • •
Loewe Louis Vuitton Carolina Herrera Dolce Gabbana MaxMara Versace Hugo Boss Adolfo Dominguez Ermenegildo Zenga Bvgulari Salvatore Ferragamo Armani Exchange
MARKET ANALYSIS INDIRECT COMPETITION
• Apple • Bang and Olufsen • La Riviera (high end beauty products) • Cartier • Joyeria Lievano (Local Jewelry)
TARGET CONSUMER CUSTOMER PROFILE
German Ospina and Gloria Pineda are a married couple. They have two daughters; Tatiana Ospina (15 years old) and Maria Ospina (21 years old). They live in the north of Bogota near Andino in a Stratum 6 building; they count with a maid that lives in their apartment. German is a CEO and owner of a chemical company. Gloria is a housewife, in her free time she goes to yoga, catches up with her friends, and goes shopping. Tatiana attends an English private school called Anglo Colombiano and Maria goes to college outside of Colombia. Every year around July the family takes a month trip somewhere they haven’t been. Gloria enjoys planning the trips, last year they went on a safari to South Africa. They are very familydriven; every Sunday they enjoy lunch around the area of Andino together and spend valuable family time. They are not religious but their grandparents are. In the weekends they enjoy going to their country house it’s a perfect getaway to relax and its just 2 hours away from the city. Gloria and the two girls go shopping at least once a month around the Andino area.
TARGET CONSUMER DEMOGRAPHICS
Gender: Female Age: 18 to 54 Income: $150,000 up Education: undergraduate and up Size of the family: 4 to 5 Stratums: 5 and 6 Occupation: college student of a privileged family, company owner, CEO of company, Housewife Religion: Catholic or none
TARGET CONSUMER LIFESTYLE/PSYCHOGRAPHIC/BEHAVIORAL
After analyzing the survey we can tell that our target market likes to go shopping at least once a month in a brick and mortar store. They go online shopping once every two months and they barely go shopping on an Ipad or smartphone. As for social media they have ranked which one they used the most and we can see they’ve ranked 1. Facebook 2. Instragam 3. Youtube 4. Twitter 5. Pinterest. In their free time 47.83% said they like to travel. Then there was a tie between shopping and playing a sport; the last one was watching movies.
TARGET CONSUMER LIFESTYLE/PSYCHOGRAPHIC/BEHAVIORAL
The word cloud above shows their favorite brands. The brands that appear to be bigger are the ones that were repeated the most. The female of a social stratum 5 and 6 in Bogota really likes Chanel, Carolina Herrera, Tory Burch, Louis Vuitton, Prada and Miu Miu. The only brands that are available in Bogota are Carolina Herrera and Louis Vuitton. Out of Dolce Gabanna, Louis Vuitton, Loewe and Miu Miu, (minding that the other 3 brands are already present in Bogota) they have ranked: 1. 2. 3. 4.
Louis Vuitton Miu Miu Loewe Dolce Gabanna.
We can see here how there is a high demand for the brand.
TARGET CONSUMER LIFESTYLE/PSYCHOGRAPHIC/BEHAVIORAL
Our target Market’s favorite magazines are Semana, Elle, Vogue, Hola and Dinero. Vogue was the most popular one as we can see it clearly is the biggest one in the word cloud.
TARGET CONSUMER LIFESTYLE/PSYCHOGRAPHIC/BEHAVIORAL
Their favorite websites are Semana, El tiempo, Bloomingdales, Pinterest and Asos. El tiempo is a news paper so this also tells us that our target market goes online a lot to check for the news and probably like it that way better than having the physical news paper.
STORE LOCATION We have chosen to do our pop up store in Bogota the capital of Colombia. There are 8,262 million people that live there. There birth rate is 17.23-births/1000 population and the population growth rate is of 1.128% (2012) The age and gender for 2012 is divided as follows 0-14 years: 26.2% (male 6,069,920/female 5,793,672) 15-24 years: 18.4% (male 4,229,436/female 4,093,638) 25-54 years: 41.4% (male 9,235,821/female 9,471,854) 55-64 years: 7.7% (male 1,615,175/female 1,875,025) 65 years and over: 6.3% (male 1,198,524/female 1,656,014) (2012 est.)
STORE LOCATION AREA ATTRACTIONS/FACTORS
We have decided to place our Miu Miu pop up store at a mall called Centro Comercial Andino. The address of the mall is Cra 11 # 82-71. In this location we can find the most expensive restaurants, stores and apartment buildings. Bogota’s society is divided into stratums. The different areas in Bogota have a number, this is the stratum. It is divided from 1 to 6. The area we have selected is a stratum 6 area and the target market of the restaurants, stores and malls is stratums 5 and 6. Generally a family of a social status of 5 and 6 is comprised by 4 or 5 members. The incomes can vary; stratum 5 can make a minimum of $150,000 a year and stratum 6 $300,000 a year. The area is always busy there is no season that is affected negatively. December is the busiest month since people are buying Christmas presents. The amount of people in the area in December can rise up to 25%. We would also argue that weather is a key player in stability of the area since Bogota is between 18 to 20 degrees Celsius every day of the year. The area is surrounded by 3 malls one of them being Andino, and busy streets full of stores. Inside the mall we can find Longchamp, Coach, Bvulgari, Loewe, Louis Vuitton, Frey Wille, Dolce and Gabbana, Zegna, Bcbg, Facconable and Burberry. In the other 2 malls and the streets we can find
STORE LOCATION AREA ATTRACTIONS/FACTORS
Carolina Herrera, Tous, Hugo Boss, Le collezioni, Versace, Max Mara and Cartier. The mentioned above are competitors already present in the area. The area not only has the best stores but restaurants, bars, clubs, and cinemas. Stratums 5 and 6 never use public transportation; this is why the area is full of parking lots. The 3 malls have 4 floors of underground parking and the neighborhood has at least 20 more parking lots. Public transportation such as taxis can get you to the area. Buses and Transmilenio (bus rapid transit system) drop you off near the area and you can walk a few blocks to get there. The exact location of our pop up store will be just outside the entrance of the mall. There is a “plaza� like area that looks like a hexagon. This part is the entrance to the mall and parallel of another mall and the important street. The mall has a foot traffic of 1.7 million people monthly.
STORE DESIGN Exterior Design Top View with roof
Entrance
Left Window
Top View without roof
Back
Right Window
STORE DESIGN
12.5 Square meters
25 Square meters
25 Square meters
40 Square meters
15 Square meters
12.5 Square meters
STORE DESIGN
Right side of Window Display
STORE DESIGN
Left side of Window Display
STORE DESIGN
The unique exterior design of Miu Miu pop-up shop is used as a strategy to attract shoppers and increase sales volume in a new location. Presenting the latest collection of womenswear, handbags, shoes and accessories will test the market. The store is a temporary building in a hexagon shape that includes floor-to-ceiling windows. Miu Miu freestanding pop-up shop is about 100 square meters. Decorated with bright golden repeat pattern of French baroque or damask and Miu Miu logo above the entrance. Two-corner windows appear between the entrances. The left store window will have a mannequin who is wearing pink wool jacquard form-fitting polka-dot coat and light grey Suede open-toe pump sitting down with aviator blue pebble-finish Madras goat leather flap bag. Display window in the left hand side will have two mannequins who are sitting on the gold fur couch. Mannequin in the left will wear black suede sandal that have a Grosgrain bow as a detail and wearing a black wool coat. For the accessories, she will wear blue lenses and noir round tortoiseshell brown frame and black leather shoulder bag with handle. Mannequin to the right will wear the same style of coat as the other two with light blue Persian lamb collar. She will also carry a Lotus flower pattern leather top-handle bag with pink glitter fabric-style frame that attached with dark brown gradient opal lenses. Once customer enters the store, there will be two security guards standing next to the corner of entrance. On the left side, there will be an eyewear wall next to the entrance and behind the wall
STORE DESIGN
of the display window. There will be a shelf of handbags on the wall between the eyewear wall and the footwear shelf. Two couches with glass tea tables will be placed at the corner of the eyewear wall and back wall (shoe display). High heels and flats are displayed on the see-through display table that is placed between the two couches. There will be a rack placed in the back wall of the store. A long gold signature pattern couch will be near the T-table lining the back wall. The Miu Miu pop-up shop will have warm, natural lighting and neutral colored cushioned carpet. The ceiling will display the same neutral color as the carpet, paired with warm lighting. The cashier will be in the center of the shop with a Nokia tablet. The Windows Nokia tablet is currently a direct competitor with the iPad, a device used for checkout by many retailers. The Prada Group has a fully developed reationship with Nokia. In the past, Prada and Nokia have produced products together, such as movile phones. Visual merchandise item include handbags, eyewear, shoes, small leather goods and three coats will be place on the shelf that surrounding the store.
PRODUCT PLAN
The footwear product plan is designed to be versatile. Most women with various tastes or styles would be able to find a piece to suit their wardrobe. There are nine styles of flats, seven styles of heels, and three styles of boots. The color story consists of black, basic tan, soft pinks, midnight blues, a sky blue and a brighter
PRODUCT PLAN
pink as an accent. Metallics are used to embellish the styles as well; whether it be studded toes, rhinestone embellishment, or metallic straps and hardware. There are open-toe and closed-toe options, as well as seasonal colors and styles. For example, the tall boots would satisfy as different consumer than the bubblegum pink and gold open-toe heels.
PRODUCT PLAN
The eyewear product plan includes basic blacks and pops of pink and blue, per the theme of the assortment. Tortoise shell is included as well; but only when
PRODUCT PLAN
sporting a pink or blue acccent lens. There are eleven styles of eyewear, ranging from $335 - $390 at retail.
PRODUCT PLAN
Of the matelasse nappa leather, we have selected four styles. The color story consists of black, deep blues, soft pinks and tans, and brighter pinks with a pop. Sizes range from large handbags to small clutches, crossbodies, or wristlets.
PRODUCT PLAN
The signature Prada madras leather is displayed through four different styles of handbags in the assortment, as well. Brighter pops of pinks and blues are included along with neutral tans, soft pinks, and blacks.
PRODUCT PLAN
The small accessories are an integral portion of the product plan. This section also utilizes the black, tan, soft pink, bright pink, midnight blue, and brighter blue color story. These products are especially important to the plan because they
PRODUCT PLAN
represent quality leather products that consumers care about with a pricetag that is realistic for a larger audience. These products range from $470 -$530, a much more accessible price than the larger handbags.
PRODUCT PLAN
The coats represent the only ready-to-wear items included in the product plan. Since our pop-up shop is without a fitting room, we chose the items that customers can try on over their clothing. These coats also follow the blue and pink color story with a pop of yellow to match the golden hardware details of the accessories. They are priced at $3,500.
FIXTURE PLAN
Our pop up store will have 2 windows in the front, one each side. The window at the right will have a mannequin just like the one above.The mannequin will be wearing the pink polka dotted coat with light blue suede peep toes and a madras shoulder bag in the hand.
FIXTURE PLAN MANNEQUIN #1
FIXTURE PLAN MANNEQUIN #2
The left side window will have two mannequins posed as pictured. The mannequins will be sitting down just like the image above but the furry pink floor will be gold.
FIXTURE PLAN
The store will have two chairs like the ones above, one on each side. There will be one chair and table just like that. One in the left side and another to the right side. In between the two chairs there will be apiece just like the one below. It will be displaying high heels and flats.
FIXTURE PLAN On the store’s walls there will be racks like the one we can see in picture 1 (left). In the back of the store, there will be a setting of tables (picture 2) displaying more shoes and bags. There will be a long gold couch next to the tables. The couch will be decorated with their signature print and besides that a small clothing rack with the 3 jackets. On one of the walls, there will be an eyewear rack (right). The floor will be carpeted in their signature thick carpet.
COMMUNICATION PLAN
MARKETING PLAN
Miu Miu will employ an array of techniques in order to attract the most public possible. The promotional plan will start 6 weeks before the launch. The promotional activities will start with Print ads, Billboards and Social media. Print ads and billboards will be taking part in all the process-starting week 1 until our post launch. Print ads: in our target customer section we were able to see the magazines that our target market reads the most. In the word cloud that we produced can we can clearly see that we need to promote the launch of the Pop Up in magazines like Elle, Vogue and Semana. Since Semana comes in weekly, we will have one print ad in there every issue. Elle and Vogue of course will be Latin America edition, which are the ones they get there.
MARKETING PLAN Social Media: Our Facebook, Instragram, and Youtube channel will have a countdown. Every day, they will discuss the exciting launch of the first pop-up shop in Colombia. As we could see in our survey, our target market uses Facebook and Instagram the most. Their favorite websites in the survey and they mentioned a lot El tiempo. This is the Colombian daily newspaper. We will have a banner in the website with the number of the countdown. This way all the people that are going online daily, they can see when is the date. We are creating a lot of suspense and excitement when doing a countdown. It’s a very good tool to use to create anxiety. Billboards: There will be two billboards one in the airport and the other one just outside Centro Comcercial Andino were our pop up shop will be located. It will say “ coming soon Miu Miu pop store. For more information visit their Instragram and Facebook page”
MARKETING PLAN
Television: The Colombian news has every night an entertainment section. The 2 most watched channels for news are RCN and Caracol. In the entertainment section the Miu Miu pop up shop will start to be mentioned four weeks before the launch date. Cocktail: For the pre launch we will be hosting a cocktail. The cocktail will be located in the last floor of the Centro Commercial Andino. This is the newest addition to the mall. We will be offering champagne and showing our latest film “Le donne della vucciria� the film perfectly portrays our brands and shows the coats and shoes we will be offering in the pop up. We will also be giving invitations to everyone that comes to the cocktail.
MARKETING PLAN THE INVITATION
Translation: “Miu Miu has the pleasure to invite you to our Pop up shop. 1st of December 2014, centro comercial Andino. We hope to see you there. People that attend to the launch and purchase will receive a small coin purse.“ Launch: At the launch there will be champagne and the people that make a purchase will get a gift. The gift will be a small coin purse. This will be going on for the 1st week.
MARKETING PLAN POST-LAUNCH
In the middle of the third week, Miu Miu will host an after party. Prada group tends to always close important events with an after party. The party will be hosted a club called Club El Country. The club is very beautiful and high end. There will be a Dj and complementary drinks all night. The Dj will be Mario Ochoa #1 Dj in Colombia, he plays progressive music and Tech House.
FINANCIAL PLAN BUDGET FOR EXECUTION
FINANCIAL PLAN SALES FORECAST
FINANCIAL PLAN Centro commercial Andino has monthly foot traffic of 2.7 million people. Our pop up shop will be there for a month. We have divided this in order to get daily foot traffic and then multiply this number by 7 to get a weekly traffic. The conversion rate is 2% so we have multiplied this by the weekly foot traffic in order to get a number of units that we would have to carry. In total we are carrying 3500 items. We have divided each category and projected what percentage would we sell of each. We put those numbers because in the report we are able to see Miu Miu’s percentage in sales for each of these categories.
FINANCIAL PLAN In our projected sales, we have one week that we will be loosing money since it’s our set up week. After that we made an average of the prices by categories. The categories are Handbags high, Handbags low, Small leather, Shoes, Ready to wear and eyewear. Our projected revenue comes from the units we will carry weekly and how much do we think we are going to sell times the average price for category. Our total projected revenue is 12.196.800. As for our budget we will have a loss in week 1 since we said above will be the week to set up. The minimum monthly salary of a sales associate in Bogota is $600.00 . We will be paying them a full package that includes health insurance and performance fees. This will total to $1.200 per sales associate monthly. They will be working with for 5 weeks so the extra week is $300.00. We will have 2 sales associates working with us so staff service will be of $3.000. We have quoted with a full design service company in Bogota. They will charge us to build the pop up, design and furnish (with our own supplies) $4.000. In order to get our merchandise inside the country La dian (division de impuestos y aduanas nacionales) will charge us 15% of our total merchandise. The only permit we need is to sign up with them and its cost free.
FINANCIAL PLAN
•To rent the space in Andino they are going to charge us $250 meter squared. Our store will be 100 meters squared. The price to rent the space per month will be $25,000. •We are planning to also rent a storage place near by they will also charge $250.00 per meter squared. The space will be 10 meters squared so in total it will be $2.500. •Our costs of good sold has a margin of 70%. We found this number in the Annual report. •Promotion costs events we have a cocktail and the afterparty.
FINANCIAL PLAN
•Promotion costs advertising we have print, billboard and television. •A full page in Vogue Latino America cost $ 33,000 •Humos, organizacion de eventos empresariales will be the company responsible for all the parties and cocktails. They will charge us $150.000 for each Moet bottle. $150.000 for blue label whiskey and $100.000 for wine (red or white) •Renting the locations we want plus decoration and staff service will cost us around 30,000 a night.
CONCLUSION After analyzing the market in Colombia we can see how there is a big economical growth going on and with an expectation of growth higher. The country is a lot more stable and there is a huge potential for the luxury market. As CCP established there is a potential of $400 million. The middle class people are making more money moving towards status 5. The awareness of the brand is already present. We could see in the word cloud for favorite brands that there is a high demand for Miu Miu products. Some competitors are already established in the area and are doing really well. The location we have selected is perfect since it’s a high-end area and all the competitors have established themselves around the area. The mall has a 1.7 million foot traffic monthly with a conversion rate of 2%. All of these factors make the Pop up shop in Bogota a very promising project. Our projected sales are very high and our projected revenue will be of 13.960.800.
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