FASM 410 | Retail Management | Winter 2018 A project by Mariana Alvarez S, Christina Biller, Maddie Green and Arcelia Valencia
ABOUT D.E. Tiffany Masterson, our founder, was fascinated with the effects of toxic ingredients on skin health and their connection to the development of sensitive skin. It was with this fascination and passion that she decided that a company that rejects the use of those ingredients was necessary to the market. Her brand got its name from the intoxicating effect the marula fruit has on elephants when ingested. The oils from this fruit have great skincare beneďŹ ts for humans and thus, the name Drunk Elephant came into existence.
MISSION Tiffany Masterson started Drunk Elephant with the goal to provide simple and clean skincare that works hard. Every product is created to give customers clean, healthy, and balanced skin using only high functioning synthetic and natural ingredients because a product is only as good as its worst ingredient.
VISION Drunk Elephant products will give customers clean, healthy, and balanced skin, using only natural and high functioning synthetic ingredients while steering clear of the “suspicious six� that seem to cause more harm than good.
VALUES Natural Clinical Transparency Less is more Fragrance-free Made in USA
THE SUSPICIOUS SIX D.E is committed to using only clean ingredients that either directly benefit the skin’s health or support the integrity and effectiveness of our formulations. You won’t find what we call the “suspicious six” of any kind in our products. These ingredients are silicones, chemical screens sensitizing colorants/perfumes, sodium lauryl sulfate (SLS), essential oils, and drying alcohols.
OBJECTIVES Determine the future performance of a brick and mortar store, by showing us statistics like stock-sales ratio, sales growth, average sale per customer and sales per square foot. Increase brand awareness and get the word out there of our brand and its values, especially in our local hometown. Gathering feedback and data insights from customers, identifying our strengths and researching new product opportunities. Analyze our current target market, explore if it matches the customer visiting our pop-up shop and explore is any room for expanding in this area.
LOCATION We chose Denver, Colorado. This city is home to our brand and matches the demographics and psychographics of our target customers. SpeciďŹ cally, we chose Fillmore St. in Cherry Creek Shopping District, the main and upbeat retail neighborhood of the city. The city of Denver, which attracts over 16.4 million overnight visitors each year who spend $5 billion, is a major tourist and convention destination.
CHERRY CREEK Cherry Creek is the dominant fashion and dining destination that caters to the upper-moderate to luxury shoppers in the six-state Rocky Mountain region. Cherry Creek is anchored by the only Neiman Marcus in the Rocky Mountain region, Nordstrom, and Macy’s. As well as more than 35 unique-to-market stores and exclusive international retailers. Cherry Creek Shopping Center is located in one of the most affluent neighborhoods in the Denver area with an average household income within one mile of the center of $176,824. It also draws well beyond the center’s primary trade area, including surrounding states. Cherry Creek is annually recognized as one of the top tourist destinations in the city of Denver. Over 50% of Cherry Creek’s tourists are international and spend 2.3 times local shoppers.
TIMING Drunk Elephant's pop-up shop will be opened for one entire month, during May of 2019. This season is a great time of the year to talk about skincare, and the weather is suitable for a shopping afternoon outside. We want a long-standing pop-up shop to allow potential customers around the area to drive downtown on the weekends. This will allow us time to build up our community and will generate a better investment return. The hours of our store will be Monday through Saturday from 10am-8pm and Sunday from 11am-6pm. This were chosen in accordance with the local shopping schedule.
LAYOUT Our pop-up store is a 40ft container, we decided upon this because we believe it will be useful for the implementation of other future pop-up shops. Our main intention is to create an easy and clinical environment. We have our facial bar, where personalized sample trays will be built. We have some drawers for storage and a space for facial and skin diagnose. Checkout will be done through iPads and squares, so it could be versatile, easy and mobile.
40’-0” 25' - 0"
10’-0” 10' - 0"
FACIAL BAR
FLOOR PLAN
AMBIANCE We describe our mood as cheerful, vibrant and brightly colored. We are aiming to recreate a health-like interior design, almost clinical. We want a lot of white that creates contrast with the D.E. colorful color palette. Because of our small assortment of products we imagined our store very petite, a very intimate, personal environment.
***Special thanks to Nicolas Barrera, Architect.
***Special thanks to Nicolas Barrera, Architect.
***Special thanks to Nicolas Barrera, Architect.
EXPERIENCE With our pop-up shop, we want to transmit a spa-like experience that also includes a pleasant visit to your dermatologist. Overall we want to create a relaxing atmosphere, this is why we will offer short facials in our back room. Our main goal is to educate on skin problems and explain all D.E. product beneďŹ ts. For this we will use the Neutrogena 360 Scanner, to help our customers understand their skincare type. After this, we will create personalized trays of their ideal Drunk Elephant skincare routine. With this, we will guarantee a higher level of consumer satisfaction. Checkout will be done through an iPad+Square, this will make it easy and versatile.
STAFFING We will aim to always have 2 to 3 people on the oor. We plan on having one manager, two full-time sales associates, and one part-time sales associate. They will all be wearing white with lab coats to match the desire clinical environment. The staff job includes educating on the product, conducting checkout, analyzing customer skin type with Neutrogena 360 Scanner if desire, performing short facials and serving personalized trays of product samples.
We are looking for friendly, approachable, knowledgeable, upbeat, skincare followers
TIME 9:30AM 10:00AM 10:30AM 11:00AM 11:30AM 12:00PM 12:30PM 1:00PM 1:30PM 2:00PM 2:30PM 3:00PM 3:30PM 4:00PM 4:30PM 5:00PM 5:30PM 6:00PM 6:30PM 7:00PM 7:30PM 8:00PM 8:30PM
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
SUNDAY
MANAGER SALES ASSOCIATE A SALES ASSOCIATE B PART-TIME SALES ASSOCIATE
SALES FORECAST D.E. POP-UP ITEM LOCATION FOOT TRAFFIC PEOPLE IN STORE (0.5%/0.8%) PERCENT CONVERSION SALES COGS
MONDAY 4800 24 10.00% $115.54 $34.66
TUESDAY 4800 24 10.00% $115.54 $34.66
WEDNESDAY 5500 28 10.00% $132.39 $39.72
THURSDAY 5500 28 12.00% $158.87 $47.66
FRIDAY 6000 48 12.00% $277.30 $83.19
SATURDAY 7700 62 20.00% $593.12 $177.94
SUNDAY 6500 52 15.00% $375.51 $112.65
WEEKLY TOTAL 40800
--
89.00% $1,768.29 $530.49
D.E. POP-UP
OPERATIONAL/PROMOTIONAL COSTS TECHNOLOGY
INTERNET/PHONE DECOR/FIXTURES CONSTRUCTION METER PERMIT
STAFFING TOTAL OPERATIONAL COST LAUNCH PARTY PAID SOCIAL ADVERTISING FACEBOOK/INSTAGRAM PRINT WEBSITE BLOGGERS/INFLUENCERS
PRESS RELEASES TOTAL PROMOTIONAL COST
$1,244.00
$105.00
$19,200.00 $250,000.00 $4,650.00 $8,640.00
$285,083.00 $1,916.00 $718.50 $0.00
$0.00 $0.00 $1,437.00
$718.50 $4,970.00
$658.00 $98.00 $338.00
$150.00
2 IPADS 2 SQUARE READERS 2 SQUARE STANDS 3 360 SKIN SCANNER
PROFIT/LOSS STATEMENT D.E. POP-UP TOTAL REVENUE TOTALCOGS TOTAL OPERATIONAL COSTS
TOTAL PROMOTIONAL COSTS TOTAL COST TOTAL PROFIT/LOSS
$95,800.00 $28,740.00 $285,083.00 $4,790.00 $318,613.00
-$222,813.00
WAS IT SUCCESSFUL? To evaluate success we will base ourselves in metrics like foot trafďŹ c and sales conversion rate. We also plan to evaluate statistics like the ratio between samples given and product purchases. And of course, the real number of inventory sold. To evaluate brand awareness we will measure success through the increase of Instagram followers and website visit/purchases. To evaluate the success of our pop-up shop will also examine, analyze and study the feedback and data gathered from all customers and visitors. This will also beneďŹ t our CRM program.
WHAT COMES NEXT? Possibilities and analysis of opening a brick and mortar store. After this hopefully successful investment, the idea is moving the pop-up shop around the country to get a better return on investment and see what areas geographically would be strong contenders for brick and mortar locations. Adjusting target markets for the company based on the feedback received on this month and try to expand the target market we are reaching out to.
REFERENCES https://www.allure.com/story/neutrogena-skin360-skinscanner-fitskin https://issuu.com/frankiesessa/docs/veja_book_-_actual https://muckrack.com/blog/2017/10/24/how-much-does-a-press-release-cost https://www.denvergov.org/content/dam/denvergov/Portals/681/documents/inventory/Cherry-CreekArea-parking-traffic-conditions-inventory-2013.pdf https://cherrycreeknorth.com/_files/docs/2017-ccn-bid-pedestrian--bike-count-report-.pdf
FASM 410 | Retail Management | Winter 2018 A project by Mariana Alvarez Sierra, Christina Biller, Maddie Green and Arcelia Valencia