ASHLEY LO, BRITTANY TALIAFERRO, CHRISTINA RIPLEY, ERIN KELLEY
EXECUTIVE SUMMARY
UPON EVALUATING EMPORIO ARMANI’S POSITION WITHIN THE MARKETPLACE , IT IS CLEAR THERE IS A DISCONNECT BETWEEN EMPORIO ARMANI’S ESTABLISHED IMAGE AND THEIR IDEAL TARGET CONSUMER. MEANWHILE, THEIR DIRECT COMPETITORS ARE SPECIFICALLY CREATING INITIATIVES TO ENCOMPASS THE MILLENNIAL CONSUMER . THIS HAS HINDERED GROWTH WITHIN THE US MARKET THROUGHOUT THE RECENT YEARS. SOME KEY INITIATIVES TO SUCCESSFULLY RECONNECT WITH THE MILLENNIAL CONSUMER INCLUDE ADVANCEMENT IN THE USE OF TECHNOLOGY, CONTINUATION OF SYNERGY WITHIN THE BRAND, AND THE MODERNIZATION IN PRODUCT DEVELOPMENT. IMPROVING THESE KEY FACTORS WILL HELP THE BRAND CONNECT, RESONATE, AND APPEAL TO THEIR TARGET CONSUMER. IN RESPONSE, A POP-UP SHOP THAT IMPLEMENTS THESE KEY SUCCESS FACTORS IS PROPOSED TO RECONNECT WITH OUR TARGET CONSUMER. THE PRESENCE OF THIS POP-UP SHOP IN NEW YORK CITY DURING SEPTEMBER 2015 WILL KEEP ARMANI RELEVANT IN THE US AT A TIME WHERE FASHION IS SIGNIFICANT. THIS POP-UP SHOP IS A PLATFORM FOR EMPORIO TO EDUCATE CONSUMERS OF THE BRAND IDENTITY; BY INTRODUCING MUSIC AND INTERACTIVE TECHNOLOGY, WITH THE FAMILIAR EXCLUSIVITY OF THE ARMANI LIFESTYLE. THIS WILL BE THE OPPORTUNE TIME TO CONNECT AFFLUENT FASHION MILLENNIAL WITH THE PRODUCTS IN AN ENGAGING, EXCLUSIVE EMPORIO ARMANI EXPERIENCE.
STRATEGIC PROCESS OUTLINE GOAL TO RECONNECT EMPORIO ARMANI WITH THE TARGET U.S.. MILLENNIAL CONSUMER. STRATEGY • HOSTING AN OPENING EVENT FOR THE POP-UP SHOP • GIFTING OF NEWLY DEVELOPED PRODUCTS EXCLUSIVE TO THE POP-UP SHOP, WITH SPECIAL EDITION PACKAGING, TO EDITORS, BLOGGERS,AND SELECT CELEBRITIES REPRESENTING THE BRAND. • CAPSULE COLLECTION GEARED TOWARDS THE U.S. MILLENNIAL CONSUMER, INSPIRED BY THE EXISTING COLLECTION , TO BE SOLD IN THE EMPORIO ARMANI SOHO STORE. OBJECTIVES • 60% OF SALES TO THE TARGET CONSUMER • 5,000 DOWNLOADS OF THE NEW EMPORIO ARMANI POP-UP SHOP APP. • THE NUMBER OF ARTICLES WRITTEN ABOUT THE OPENING • THE NUMBER OF BLOGGERS POSTING ABOUT THE OPENING • THE IMPROVEMENT OF FOLLOWERS AND LIKES ON SOCIAL MEDIA AFTER THE FIRST WEEK OF THE POP-UP SHOP.
“ELIMINATE THE SUPERFLUOUS” “EMPHASIZE COMFORT WITHOUT COMPROMISE” “ACKNOWLEDGE THE ELEGANCE OF SIMPLICITY” - GIORGIO ARMANI
HERITAGE GIORGIO ARMANI ISN’T JUST A BRAND, IT REPRESENTS A LUXURIOUS ITALIAN LIFESTYLE, THAT APPEALS TO SUCCESSFUL, SOPHISTICATED CONSUMERS, CLASSIFIED IN AN UPSCALE NICHE. THEY HAVE A CULTIVATED TASTE THAT ATTRACTS THEM TO THE ELEGANCE , QUALITY, & EXCLUSIVITY OFFERED BY ARMANI PRODUCTS.
CORPORATE STRUCTURE
GIORGIO ARMANI: MILAN GIORGIO ARMANI
Founder, Chairman, President, & CEO
JOHN HOOKS Vice Chairman
ROSANNA ARMANI
ROBERTA ARMANI
SILVANA ARMANI
PANTALEO DELL’ORCO
Board Member
GIORGIO ARMANI CORPORATION
Marketing
GIUSEPPE MARSOCCI CEO
CFO Marketing
Senior Vice President
Human Resources Management Merchandising Accounting Communications
Human Resources Management Merchandising Accounting Communications
BUSINESS MODEL GIORGIO ARMANI S.p.A. STARTED OFF AS A DESIGNER LABEL. OUTSOURCING MOST OF THE PRODUCTION OF CLOTHES, SHOES, AND HANDBAGS UNTIL THE EARLY 2000’S, WHEN THEY STARTED BUYING OUT THEIR OLD PARTNERS. TODAY ARMANI IS A VERTICALLY INTEGRATED COMPANY. THROUGHOUT THEIR 14 SUB-BRANDS THEY INTEGRATE DESIGNING, MANUFACTURING, DISTRIBUTING, AND RETAILING; OPERATING 13 FACTORIES AND 500 RETAIL STORES WORLDWIDE.
SWOT ANALYSIS STRENGTHS • • • •
VERTICALLY INTEGRATED STRONG BRAND IDENTITY DIVERSE COMPANY CULTURE MILLENNIAL INVESTING IN LUXURY
OPPORTUNITIES • TECHNOLOGY ADVANCEMENT • CO-CREATION
WEAKNESSES • DISCONNECT WITH MILLENNIAL CONSUMER • NOT UTILIZING TECHNOLOGY • OVER EXPANDING
THREATS • COMPETITORS USE OF TECHNOLOGY
GROWTH PLANS STRENGTHENING TIES WITH THE MUSIC INDUSTRY WITH EMPORIO ARMANI SOUNDS. CALVIN HARRIS WAS APPOINTED THE NEW FACE OF THE BRAND TO CAPTURE THE ATTENTION OF THE MILLENNIAL.
BRAND IDENTITY MATRIX MINIMALIST, CONTEMPORARY DESIGN TRENDY & SPORTY ELEMENTS UNDERSTATED ELEGANCE PHYSICAL
ENHANCEMENT OF PERSONALITY EXCLUSIVE
RELATIONSHIP
CASUAL SOPHISTICATION CONTEMPORARY VERSATILE PERSONALITY
CULTURE
TRADITIONAL INTEGRITY ITALIAN
REFLECTION SELF-PROJECTION I FEEL ... QUALITY MODERN EXCLUSIVE ...SOPHISTICATED ITALIAN ...CONFIDENT
DISTRIBUTION 60 COUNTRIES 395 LOCATIONS INCLUDING WHOLESALE SINCE 2010, ARMANI HAS QUADRUPLED THE NUMBER OF STORES TO 2,500 SHOPS
PROMOTION ACCORDING TO THE ANNUAL REPORT ARMANI SPENT $117,402 ,000 ON ADVERTISING IN 2008. IT WENT UP BY $18,159 FROM THE PREVIOUS YEAR. ARMANI SHOULD BE SPENDING AROUND $300,000,000 PRESENT DAY ON ADVERTISEMENTS.
#EMPORIOARMANISOUNDS
MARKET ANALYSIS
NEW YORK CITY FASHION RETAIL INDUSTRY EMPLOYS 180,000 PEOPLE - 6% OF THE CITY’S WORKFORCE TAX REVENUES OF $2 BILLION - 900 FASHION COMPANIES ARE HEADQUARTERED HERE - 13,800 FASHION ESTABLISHMENTS
FASHION LUXURY INDUSTRY WORLD WIDE 2014: $318 BILLION - IN THE UNITED STATES, SPENDING ON PERSONAL LUXURY GOODS ROSE A STEADY 5 % LAST YEAR TO ABOUT $73 BILLION LUXURY SPENDING
- NYC TOURISTS BOLSTERED
P.E.S.T.E.L MODEL
POLITICAL STRENGTHS • HISTORICALLY THE US HAS BEEN A POLITICAL LEADER IN THE WORLD • CHECKS & BALANCES IN U.S. POLITICS ALLOW FOR A RELATIVELY FAIR PASSING OF LAWS AND REGULATIONS
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CHALLENGES 7.1% CORPORATE TAX $110+ SUBJECT TO NY STATE SALES AND USE TAX (4%) NYC SALES TAX (4.5) DIVISION OF LABOR STANDARDS ENFORCE LAWS SUCH AS MINIMUM WAGE, HOURS OF WORK, & CHILD LABOR 2016 PRESIDENTIAL ELECTION UNSTABLE GOVERNMENT
SOCIAL
ECONOMIC • • • •
STRENGTHS HIGH ECONOMIC GROWTH IN AMERICA LOW INFLATION RATE LOW INTEREST RATES LOWER UNEMPLOYMENT RATE
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CHALLENGES • RELIANCE ON CURRENCY EXCHANGE DUE TO THE HEAVY RELIANCE OF INTERNATIONAL CONSUMERS IN SOHO, NEW YORK
STRENGTHS 67.5% OF THE SOHO POPULATION ARE UPPER MIDDLE CLASS OR ABOVE 50%+ OF THE POPULATION IN NYC HAS A COLLEGE DEGREE MEDIAN INCOME IN SOHO: $86,909 MEDIAN AGE RANGE IN SOHO: 25-44 YEARS OF AGE
CHALLENGES • EMPORIO ARMANI HAS YET TO CAPTURE THE MAJORITY MILLENNIAL POPULATION IN SOHO • THE CULTURE OF DISPOSABLE FASHION MAKES IT HARDER TO PENETRATE THE TARGET AUDIENCE WITH ARMAN’S TIMELESS, LUXURY PIECES
TECHNOLOGY
LEGAL
ENVIRONMENT
STRENGTHS • THE FASHION INDUSTRY UTILIZES TECHNOLOGY TO DEVELOP A STRONGER SHOPPING EXPERIENCE AND CAPTURE A WIDER TARGET AUDIENCE • THE MILLENNIAL CONSUMER LOOKS TO BLOGS AND SOCIAL MEDIA AS AN INFORMATION SOURCE THEY TRUST • WITH ADVANCEMENTS IN TECHNOLOGY INFORMATION HAS BECOME MORE ACCESSIBLE
STRENGTHS • EMPORIO ARMANI’S PRODUCTS HAVE A LONG LIFECYCLE, BEING MORE SUSTAINABLE THAN FAST FASHION TREND PRODUCTS. THIS LOWERS THE ENVIRONMENTAL IMPACT OF EMPORIO ARMANI.
STRENGTHS • THE LEGAL ENVIRONMENT IN THE U.S. STRESSES FAIRNESS, COPYRIGHT LAWS, TRADEMARKS, AND OTHER TOOLS TO PROTECT THE INTELLECTUAL PROPERTY OF DESIGNERS AND COMPANIES.
CHALLENGES • ARMANI HAS YET TO UTILIZE TECHNOLOGY FULLY IN THEIR STORES & THROUGHOUT THEIR BRANDS WHILE STAYING TRUE TO THEIR HERITAGE • ARMANI HASN’T SEPARATED THEIR SUB-BRANDS ON SOCIAL MEDIA, CONFUSING THEIR TARGET AUDIENCE ABOUT THE SPECIFIC IDENTITY OF EACH BRAND
CHALLENGES • DUE TO THE STRENGTH OF THE ENVIRONMENTAL ASPECT OF THE PESETL ANALYSIS, THERE ARE NO CURRENT CHALLENGES THAT EMPORIO ARMANI FACES.
CHALLENGES •
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REGULATIONS IN PROCEDURES FOR RETAIL CONSUMER PROTECTION LAW: PROHIBITS “DECEPTIVE OR UNCONSCIONABLE TRADE PRACTICES IN SALES” EVERY COMMERCIAL BUSINESS IN NYC IS REQUIRED TO DISPOSE OF WASTE THROUGH A PRIVATE CARTER. RECYCLING REGULATIONS NOISE CODE OF NYC: “COMMERCIAL ACTIVITIES MAY CONTINUE AT VOLUMES THAT ARE LESS INTRUSIVE TO RESIDENTS” CATERING SERVICES MUST HAVE AN ALCOHOL PERMIT.
COMPETITORS
ACCESSIBILITY
PRICE
PRADA WAS FOUNDED IN 1913. THEY PRODUCE MEN’S AND WOMEN’S CLOTHES, LEATHER GOODS, FOOTWEAR, EYE-WEAR, AND FRAGRANCE. TARGETING AD CAMPAIGNS TOWARDS THE MILLENNIAL CONSUMER - ADS FEATURE YOUNG ACTORS LIKE ANSEL ELGORT AND MILES TELLER. INNOVATIVE WITH POP-UP SHOPS - CONCEPTUAL, MUSEUMS, ART INSTALLATIONS
HUGO BOSS GROUP FOUNDED IN 1924, “EPITOMIZES AUTHENTIC, UNDERSTATED LUXURY”. SIMILAR MODERN AESTHETIC WITH ARMANI POP-UP SHOP COLLABORATIONS WITH LONGSTANDING PARTNERS
CALVIN KLEIN STARTED IN 1970. TODAY IT HAS GROWN INTO A LIFESTYLE BRAND ENCOMPASSING MANY SUB BRANDS. LIMITED ACCESSIBILITY IN U.S. - CALVIN KLEIN DIRECTYL OPERATES 1 STORE IN THE US, WHICH IS THER FLAGSHIP STORE ON MADISON AVENUE. HOST POP-UP SHOPS AND EVENTS
INDIRECT COMPETITION
MARQUEE NYC THEY CURRENTLY HAVE AN APP TO LET PEOPLE KNOW WHEN UPCOMING EVENTS AND DJ’S ARE COMING INTO TOWN.
AVENUE NEW YORK DJ CONCERTS, LIVE MUSIC, IN-HOUSE MIXOLOGIST AND A SERVICE KITCHEN THAT PROVIDES A VARIETY OF FOOD AND DESSERTS.
BEAUTY & ESSEX THIS BAR AND RESTAURANT IS WELL KNOWN FOR CELEBRITY SPOTTING AND AMAZING DRINK AND FOOD SELECTIONS. PERPECT HANGOUT FOR A YOUNGER AUDIENCE.
SIXTY LES THE BOUTIQUE HOTEL OFFERS TO GUEST THE “ABOVE SIXTY LES”, A TERRACE LOUNGE, WITH THE OPTION OF SEEING THE SKYLINE AND ENJOYING GOOD MUSIC, FOOD AND DRINKS.
RAMIKEN CRUCIBLE THE RAMIKEN CRUCIBLE IS ONE OF THE TOP TEN ART GALLERIES THAT ARE POPULAR AMONG YOUNGER AUDIENCES. THIS ART GALLERY WAS CREATED BY A MUSICIAN AND ARTIST
TARGET MARKET
MILLENNIAL GRIFFIN AGE: 26 LOCATION: SOHO , MANHATTAN TITLE: CIVIL ENGINEER INCOME: $80,000 INTERESTS: TRAVELING, SPORTS, AND ART OPENINGS GRIFFIN IS A CONFIDENT AND CULTURED, YOUNG PROFESSIONAL HE LIKES TO BALANCE WORK AND PLAY, FREQUENTING MANHATTAN’S HOTTEST CLUBS ON THE WEEKENDS. HE MIXES HIGH AND LOW BRANDS, INVESTING IN KEY WARDROBE STAPLES.
MILLENNIAL
CHELSEA AGE: 28 LOCATION: WEST VILLAGE, MANHATTAN TITLE: DIGITAL MARKETING MANAGER INCOME: $83,000 EDUCATION: PARSONS NEW SCHOOL M.A. FASHION MARKETING
SHE IS AN AMBITIOUS, CONFIDENT WOMAN WHO IS NEWLY PROMOTED TO MANAGER. CHELSEA IS UP TO DATE WITH THE LATEST TECHNOLOGY, AND CONSTANTLY SEEKING OUT WHAT WILL BE THE NEXT BIG THING. SHE IS ECONOMICAL WITH SPENDING HABITS, THOUGH MONEY IS NOT A CONCERN. SHE TAKES PRIDE WHEN INVESTING IN CLASSIC ELEGANT PIECES BECAUSE SHE KNOWS THEY WILL LAST A LIFETIME.
INTERNATIONAL MAIKO AGE: 30 LOCATION: TOKYO, JAPAN TITLE: BEAUTY EDITOR, VOGUE JAPAN INCOME: $80,000 EDUCATION: CENTRAL SAINT MARTINS M.A. FASHION JOURNALISM MAIKO LOVES TO TRAVEL BECAUSE SHE IS INSPIRED BY CULTURES, STYLE, AND FOOD. HER BIGGEST INTEREST IN LIFE IS FASHION, WHICH INFLUENCES HER TO SHOP CONSTANLY TO KEEP UP WITH THE TRENDS SHE WRITES ABOUT. MAIKO VALUES BRAND HERITAGE AND QUALITY IN THE PIECES SHE INVESTS IN WHICH EMBODIES HER PERSONAL TIMELESS STYLE.
LOCATION: JUSTIFICATION
PRIZM: SOHO POPULATION OF APPROXIMATELY 23,729 PEOPLE THE MEDIAN AGE IS 40 THE MEDIAN INCOME IS $77,500. C ONSUMERS SPEND AN AVERAGE OF $837 M/M TORE WILL ALSO ALLOW FOR US TO COMPARE THE ORIGINAL STORE TO AN UPDATED VERSION TO MEASURE THE SUCCESS OF THE
PRIZM: CUSTOMER “YOUNG DIGERATI” MEDIAN INCOME LEVEL OF $67,741. LIVES IN AN “URBAN UPTOWN” AREA SHOP AT EXCLUSIVE RETAILERS SPENDS HEAVILY ON TECHNOLOGY INTEREST IN THE NIGHTLIFE AND THE ARTS
SALES POTENTIAL POP-UP SHOP WILL BE ACTIVE DURING
NEW YORK FASHION WEEK FASHION WEEK BRINGS AWARENESS OF BRANDS SPECIAL GUEST DJ’S INSIDE THE STORE EXTENSION OF SHOPPING HOURS
ESTIMATING COMPETITION THERE ARE NO OTHER COMPETITORS THAT HAVE INITIATING A POP-UP SHOP DURING NEW YORK’S FASHION WEEK.
EMPORIO ARMANI WOULD BE THE FIRST TO TEST THE MARKET DURING THIS SEASON
AREA ATTRACTIONS SOHO THE OFFICIAL HISTORICAL DISTRICT TRENDY SHOPPING AND FAMOUS MOVIE LOCATIONS THE NEW MUSEUM OF CONTEMPORARY ART
AREA FACTORS TAXI FARES ARE A PRICEY THE BEST WAY TO TRAVEL AROUND SOHO IS BY FOOT SUBWAY LINES GO THROUGH THE AREA ON SPRING STREET, AND OTHER NEIGHBORING AREAS. VARIOUS WEATHER CONDITIONS HEAVY CONSTRUCTION
HUMAN RESOURCES
EXISTING EMPORIO ARMANI STORE ASSOCIATES AND EMPLOYEES IN NEARING LOCATIONS EXTENSIVE TRAINING NEEDS TO BE DONE ABOUT PRODUCT KNOWLEDGE AND SELLING STRATEGIES
LEGAL ISSUES EXISTING NOISE CODE REGULATIONS LABOR LAWS MUST BE FOLLOWED SECURITY MUST BE REGISTERED
ENTRANCE THROUGH THE LE BAIN AMBIANCE: PROGRESSIVE MUSIC TO DJ SOUNDS ON ROOF ARMANI AESTHETIC INTERVIEWS IN THESE ROOMS
STAIRS LOUNGE AREA
BATHROOMS
PLEXIGLASS COVERED POOL NEW EA COLLECTION
MAIN BAR
DESIGN OF THE EVENT SPACE
• FIRST FLOOR: STAGE OVER POOL WITH NEW EMPORIO COLLECTION
• CALVIN HARRIS • DJ STAGE
• LAUNCH PARTY: ROOFTOP UNVEILING CAPSULE COLLECTION UNVEILING: LIVE MODEL SET UP DJ BOOTH SET UP CALVIN HARRIS
LIVE DJ MUSIC UNVEILING OF CAPSULE COLLECTION @ EVENT MINI BAR WITH CATERERS CIRCLING LOUNGE FURNITURE AND SEATING AREAS
mini bar
DESIGN OF THE RETAIL SPACE
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POP-UP SHOP: IN THE EXISTING SOHO,NYC STORE. 5 CLOSE BACK WINDOWS ON SPRING STREET EMPORIO SOUNDS SITTING AREA, TO EMBODY LIFESTYLE NEW CAPSULE COLLECTION ON A DISPLAY, AND TWO RACKS MIRROR SCREEN WITH FOOTAGE FROM EVENT, FILM ON
ASSORTMENT PLAN
CAPSULE COLLECTION FOR THE MILLENNIAL CONSUMER
ASSORTMENT PLAN
COMMUNICATION/PROMOTION PLAN
PROMOTION:
PERSONAL INVITES HEADPHONE GIVEAWAYS
SOCIAL MEDIA CHANNELS TO CREATE AWARENESS MUSIC PLAYING X PHOTO EDITING APP TO BE INVOLVED
PROMOTIONAL PLAN
SOCIAL MEDIA: FACEBOOK, TWITTER, INSTAGRAM, YOUTUBE EMAIL, BLOGS, BILLBOARDS CELEBRITIES AND GIVEAWAYS
REVENUES FOR POP-UP SHOP 000’S
COSTS/PROFIT
ASHLEY LO, BRITTANY TALIAFERRO, CHRISTINA RIPLEY, ERIN KELLEY