Strategic Pop-Up Shop Retail Business Plan by Chantelle Fandino

BY: CHANTELLE FANDINO + SAM THORPE Professor Kevin Knaus Retail Management

Table of Contents Cover Letter .

Executive Summary .

Management Plan

Merchandise & Product Plan . . . . . . 14 Brick + Mortar Location Plan . . . . . . 28 Web Plan Summary . . . . . . . . 36 Marketing Plan . . . . . . . . . 43 Financial Plan . . . . . . . . . Retail Operation . . . . . . . . .

48 54

COVER LETTER Friday, February 21, 2014 716 Ponce de Leon Place N.E. Atlanta, GA 30306 USA

Dear Paris On Ponce Team, We are proposing to open a 300 square foot pop-up shop in your store in Atlanta, Georgia. We are well-prepared and entirely committed to this project, and we hope you can see the same exciting possibilities that uniting our stores will bring.

Our goals for this shop are to showcase our brand, as well as allow our aesthetic and lifestyle image to spread beyond our roots in New York City. Your store features the same kind of curated, passionate goods that we value at Catbird. As such, our products would do very well in your store, and we believe that working with you would be very enjoyable as well as profitable. We believe your store would receive numerous benefits by having us in your store. Our brand is popular in New York City and online, and yours is well known in Atlanta. By combining brands, awareness for both will increase drastically. Your store’s vendor layout is a perfect fit for our pop up shop, and we hope you will give it serious consideration. Please review our attached proposal for a pop up shop inside your store. We believe that Catbird and Paris on Ponce are a perfect match, and we’re sure you’ll agree. Thank you for your consideration of our proposal. Sincerely,

Sam Thorpe

Chantelle Fandino

EXECUTIVE SUMMARY We are proposing to open a pop-up shop selling Catbird Jewelry and Home products inside of a double vendor space in Paris On Ponce Antique and Oddity Mall. We will be in the space for six weeks, however we will only be open for four weeks. We will require the week before opening, and the week after closing, to prepare and clean the space. We want the booth to provoke a lifestyle. We will fill our space with antique cabinets, couches, and furniture. There is also a coffee + tea bar in our space where customers can get self serve tea and coffee while they shop and browse. We want our space to make our customers see themselves as a part of the brand while they are in the space. We want to create a place where people feel welcomed, and relaxed. We think that this is the best frame of mind to be in while shopping. When a customer is relaxed, and enjoying their experience, they are more likely to purchase than if they feel uncomfortable and intimidated. Our inventory will not take up a lot of space because we are selling rings. With this as our main product, we are able to have mass quantities of our products in a small area. We will store our inventory in the cabinets in our space in addition to the rings that we have on display. All of our home goods will be on the floor at all times. Our rings will be on consignment from Catbird NYC, as will our home goods. By having our space in Paris On Ponce we will have many things included in our lease such as parking, utilities, and security. We will also have two employees in the space at all times. We expect there to be anywhere from 0-15 customers in the booth at anytime. One reason that Catbird for Paris on Ponce will be a success is because Catbrid is a very successful company. They have a wide range of customers that live all over the country and live for the treasures of local artists. Atlanta is a good location for this particular pop up shop for Catbird because it attracts a variety of people in the city. Atlanta has really expanded as a city, and many young adults love nothing more than a walk down Peachtree or making a visit to the High Museam. Our target market are young adults who are creative, and have a love for vintage things. People who love vintage things in Atlanta go to Paris on Ponce, and that is why Catbird for Paris on Ponce is the perfect combination. Another reason that we think that Catbird will be a success in Atlanta is because of the amount of creative individuals and artists that have moved to the city. The city has a thriving music, movie and television industry that has brought many young and creative people to the city who would be an excellent target customers for our pop up shop. We think that our unique business, coming to the city of Atlanta would be a perfect combination and would be a success for Catbrid, and for Paris on Ponce. Sincerly, Sam Thorpe and Chantelle Fandino 6

MANAGEMENT PLAN The Market

We are in the Jewelry, gift and home market. We are selling a lifestyle brand to our customers. Our products are made of quality materials and are constructed by local New York artisans. At Catbird, we created the art of ring stacking and in turn we created our own market. Now many other jewelry makers are beginning to make stackable rings and knuckle rings.

Financial Plan

Compensation $9 per hour x 7 hours a day =$63 $63 x 6 days a week =$378 $9 per hour x 6 hours a day = $45 $378 + $45 = $423 per week $423 per week x 7 weeks = $2,961

Training Plan

We will have three part time associates in addition to Sam and Chantelle, who will be full time staff. At any given time there will be a minimum of two employees in the space. Sam or Chantelle will always be at the shop when it is is open along with one employee. On days when there is expected to be more traffic in the shop, both Sam and Chantelle will be working in the shop to help with customers, jewelry fittings and customizations. Each of our employees will go through a rigorous training process. They will be educated on the inventory that we carry, the designer profiles of our artists, and taught to find the perfect fit for anyone. Charisma is a huge factor that we are looking for in our employees, we want them to be representing our brand and satisfying our customer. We are also looking to hire someone that is relatable to our customer, someone who is creative and passionate about the product. Since we are locating our pop-up shop in Atlanta, but carrying New York based designers, our staff must be completely knowledgeable on the products seeing as how the designers cannot speak about them themselves. Hiring and training of our employees will start a month before the shop is set to launch, and they will be trained thoroughly through the month. At the launch party our associates will be working the party and answering any questions that party goers may have. 10

Employee Perks

Employees will recieve a 50% discount on one ring, every two weeks, during a 7 week period. Each employee will also need to have a good knowledge of social media, so during their shifts they will be able to update our various platforms.

Key Advisors

Catbird Team: Rony Vardi, Leigh Plesser, and Corey Law We selected these 3 key advisors because they currently run the Catbird NYC store + website. We will be reporting to them weekly to discuss our profits and losses, as well as discussing how Catbird fits into the Atlanta Market. We will also keep them updated on which pieces are selling, as well as cool stories we have to tell!

MERCHANDISE + PRODUCT PLAN Product:

Rings, Home & Gifts

Unique Characteristics:

Bringing New York based Jewelry designers to Atlanta! All jewelry uses quality materials, along with custom sizing on all rings. Products are uniquely crafted and are vintage inspired. Each designer showcases their individual style through their jewelry.

Selling Features:

It has become popular to wear Catbird rings in stacks or in combinations on the hands. Rings may be worn starting at the first knuckle, all the way to the base of the finger. Trinkets, candles, and pillows are all unique to the catbird store, and are constructed of good quality materials. Employees are knowledgable about sizing, fit, product and designers.

Featuring Designers/ Proposed Lines: • CATBIRD • Digby + Iona • Yayoi Forest • Claire Kinder Studio • Bittersweets NY

Markdown Policies We don’t take markdowns but we offer promotions biweekly. 14

CATBIRD Designer Description: In house line, hand made in Brooklyn, NYC studio. Pieces are tried and tested by customers + employees. Catbird collection showcases signature stacking rings and first knuckle rings.Jewelry has been worn by taste makers, stylists, fashion editors, and celebrities. Catbird has been spotted on Lena Dunham, Michelle Williams, Olivia Wilde, and Leighton Meester.

BITTERSWEETS NYC Designer Description: Designer is a Catbird farvorite, and showcases designs that are the perfect combo of evil and sweet. All jewelry is handmade in Brooklyn, NYC.

DIGBY + IONA Designer Description: All jewelry handmade in Brooklyn, NYC. Pieces incorporate historic and “nautical” themes. Jewelry is unisex, and seen as very iconic. Truly a one of a kind line!

CLAIRE KINDER Designer Description: Designer is originally from Vermont, but now resides in Brooklyn, NYC. She is extremely passionate about creating pieces that are of great quality and will last generations. She loves playing with the way various materials and planes interact with each other.

YAYOI FOREST Designer Description: Yayoi individually crafts all pieces BY HAND in Brooklyn, NYC. Valuing natural and irregular beauty she specializes in hand etching techniques and detailed wax carving. Her goal is to make her pieces look like theyâ&#x20AC;&#x2122;ve been a part of someones history, even if itâ&#x20AC;&#x2122;s their first time trying a particular piece on.

HOME + GIFTS Designer Description: We carry some awesome home & gifts- from candles, to pillows, to beauty, we have the perfect assortmant. Our Home + Gifts lines features designers CATBIRD, Royal Botanicals, Coral + Tusk and ILIA. These designers are local and live in Brooklyn, NYC.

BRICK + MORTAR PLAN

INSPIRATION

Physical Location:

716 Ponce de Leon Place N.E. Atlanta, GA 30306 USA

Store Hours:

Monday-Saturday 11:00a.m.-6:00p.m. Sunday 12:00p.m.-6:00p.m.

Location Features:

• 46,000 square feet of furnishings, and antiques • The Moulin Rouge Lounge inside • Located in Midtown, by the “new” Ponce City Market, and old Ford Factory Lofts • “Hip” Area • Close to the Belt Line 28

LAYOUT

300 Square Feet

TARGET MARKET Men: • Income: $40,000-$100,000 • Lifestyle: Hip & trendy, not afraid to be different and unique, and are involved in creative careers. • Favorite Stores: Topman, American Apparel, Steven Alan. • Favorite Music: The Strokes, The Rolling Stores, Grizzly Bear.

Women:

Interior Entrance Wall

• Income: $40,000-$100,000 • Lifestyle: Fashion forward, embraces vintage products, and are involved in creative careers. • Favorite Stores: Anthropologie, Free People, Madewell • Favorite Music: Naked & Famous, The Colorist, Crystal Castles.

(towards back of booth)

SIGNAGE

Insurance

Lease Rental Agreement

Total Rent: $2,100 for 2 months Utitilites Included

36 37

Sunday

E-‐mail Blast x1 Twitter x5 Instagram x1

Twitter x5 Instagram x1

Twitter x5 Instagram x1 E-‐mail Blast x1

Twitter x5 Instagram x1

Facebook x1 Twitter x5 Instagram x2

Facebook Twitter & Instagram

Facebook x1 Twitter x5 Instagram x2

Monday

Tuesday

Twitter, Instagram & E-‐ mail Blast: 10% OFF Tuesday Promotion

E-‐mail Blast x1 Twitter x5 Instagram x2

Catbird for Paris on Ponce

October

Twitter x5 Instagram x2 Tumblr x2

E-‐mail Blast x1 Facebook x1 Twitter x5 Instagram x2

Wednesday

Facebook x1 Twitter x5 Instagram x2

Twitter x5 Instagram x2 Tumblr x2

Thursday

Facebook, Instagram, Twitter & Email Blast: 15% OFF Students (with valid ID) HALLOWEEN!

Facebook, Instagram, Twitter & Email Blast: 15% OFF Students (with valid ID)

E-‐mail Blast x1 Twitter x5 Instagram x3

Twitter x5 Instagram x2

Friday

Saturday

Twitter x5 Instagram x3

Twitter x5 Instagram x3 E-‐mail Blast x1

Pop-‐ Up Launch! ALL Social Platforms

E-‐mail Blast x1 Facebook x1 Instagram x3 Twitter x5

Web/ Social Media Calendar

2014

INTERNET STRATEGIES FACEBOOK

• Social interaction with customers • “Like” button • Customer service support • Posting promotions + events • Status updates • Social following

TUMBLR

INSTAGRAM

• Most utilized • Creative outlet • Captures imagery of brand + merchandise • Allows brand to build a social following • Allow customers to interact with brand • Showcases merchandise in a visual way • Videos

TWITTER • • • • • •

Social interaction Utilization of #hashtags Posting promotions + events Mobile + Desktop Customer support Signal Boost (Retweet, Favorite, Trending) • Tweet a picture 38

• • • • • •

Creative outlet Blogging GIFS Videos + Music Signal Trend Visually enriching media

WWW.CATBIRDATL.COM

WWW.PARISONPONCE&CATBIRDNYC.COM

ABOUT OUR WEB PRESENCE Our website will have five pages in addition to a landing page. Our pages include the landing page, an “About” page, a page on our designers, a page on our rings, another on our “home and gifts” and lastly a page that links to our blog. On our landing page, you can find all of the basic information that you need to know about who, what, when, and where. Our website also has links to all of our social media outlets including instagram, Tumblr, Pinterest, Facebook, Blogspot, and Twitter. On our “About” page, you can find out information about who we are as a company, where we came from, how we started, and our general story as a company. Also on our about page, we have information about our store in Brooklyn, and also Paris on Ponce in Atlanta, Georgia. You can also find press releases for both stores, and career opportunities for both as well. On our “Designers” page you can read all about our featured designers, all of whom are from the New York area where our store originated. You can read their stories and see the process of how they make the jewelry that you can purchase in our store. On our page titled “Rings” you can see every ring that we currently have in stock at our Paris on Ponce location. This way, you can make sure that we have something you will like! You can even check colors and sizes that we offer. The next page on our website is dedicated to our “Home and Gifts.” Our home and gifts products are on display throughout the booth. There are pillows for sale on the couches, and trinkets decorate the counters. You can find everything that we have in the pop up shop on the website. This is a good way to show potential customers the wide variety of home and gift items in the booth, since they are spread throughout the store and some could possibly be overlooked. 42

MARKETING PLAN Industry Profile

Jewelry; Now that the recession is on its way out, the act of buying jewelry is increasing. People are more willing to spend than they have been in the past 5 years. We are seeing a large increase in the amount that people are spending on gold and silver jewelry. The consumers desire for fine jewelry is only expected to increase over the next few years.“ Small jewelers can effectively compete with large chains because price isn’t the main factor determining sales. The US industry is fragmented: the 50 largest companies generate about 40 percent of revenue.” - Jewelry Stores Industry Profile by First Research. There is a high markup on jewelry, so the profit margins are high even if a retailer needs to take markdowns to compete with other retailers.

Market Economics Factors

• Celebrity Weddings • Rise of Gold & Silver prices • Consumer Desire • Retro Jewelry Trend • Increase Costume Jewelry • Celebrity Events (Oscars, Golden Globes)

Market Analysis Summary

Value sales of jewelry are expected to increase by 14% in constant value terms between 2013 and 2018, to reach US $67.3 billion. As we stated in our industry profile, the jewelry market is steadily increasing, as America is coming out of its recession.

Customer Profile

Our customer is aged 20-40 with an average income of $40,000-$100,000 annually. They are fashion forward, free thinkers, who like vintage inspired items and jewelry. They are college graduates with a job that allows them to have disposable income. Our customer is hip, trendy, and young. They are involved with high end creative careers, Architect, painter, curator, designer etc.

Competitive Analysis

By offering Catbird Jewelry in a Brick-and-Mortar pop up shop, we are bringing Catbird products to a wider audience of consumers. Many people who want Catbird jewelry across the country can only purchase their merchandise online. The only Catbird store is in Williamsburg Brooklyn, and many potential consumers who desire Catbird jewelry, but are not located in New York are not able to try on their products. By bringing this pop up shop to Atlanta, people who have wanted Catbird jewelry in the Atlanta area can now try the merchandise on for the perfect fit. 44

OFFICIAL LAUNCH PARTY INVITE

Publicity

• Refinery 29 • Vogue.com • GQ • Jezebel • Atlanta Magazine • WWD • Catbird Website • Catbird Official Instagram • Catbird Official Twitter • Catbird Official Facebook Page • Catbird Tumblr • Catbird Pinterest • AJC Newspaper • Business Of Fashion • MARTA • High Museum & other art events • Official Launch Party (Vintage Postcard Format) • Collabs with Local ATL stores

Promotional Events

• 10% OFF Tuesdays • Every Friday 15% OFF Student Discounts (With Valid ID) • Self-Serve Coffee Bar • Official Launch Party

Price List + Merchandise Plan

FINANCIAL PLAN Pricing

Our prices range from $24 for candles in our home section, to $525 for our most expensive designer ring. As far as our jewelry goes, our rings range from $28 for our Classic Hammered Knuckle Ring in Silver to again $525 for one of our Yayoi Forest rings with four diamonds. We have a wide range of prices for several reasons. One main reason that we have such a range of prices is because we try to offer rings to a wide range of customers. Usually the rings that are less expensive are silver, and therefore cost less to make. Our yellow gold, rose gold, and white gold run much more than a silver ring does. Another reason that some of our Catbird brand rings are less expensive, (around $74) is because they are meant to be worn in groups or stacks. When you are wearing several rings on your hands (many people wear up to 10 or 12) that can get expensive, so we like to keep our price points affordable for the stacker. However for our most expensive designer rings, they are more expensive, and often times jewel encrusted.

Price Range: $24.00-$525.00

Cash Requirements

Break-Even-Analysis

For our cash requirements we added up all of our expenses and the cost of our entire consignment buy. This totaled to $280,235. This is the total amount we expect to spend setting up our space and filling it with inventory. Every expense we expect to encounter is outlined and listed in the chart above. We will break even at approx. 222 units. We expect to sell 70% of our inventory. If we sell 100% of our merchandise it would retail for $570,725. Our consignment cost of our buy from Catbird would be $264,628.90. Since we expect to sell 70% of our merchandise we expect to sell $399,507.50. Our profit would be $214,467.27. We expect to break even in the first half of our first week because of the expected success of our launch party and intial opening days. 50

Projected Financials

We reached our projected net profit by starting with our expected total sales and subtracting our consignment buy and expenses from it. We were left with a net profit of $119,276.60 for 4 weeks. We think this is a very successful number and our satisfied with the result.

RETAIL OPERATION Market Penetration

By offering a unique product that is not commonly offered in brickand-mortar stores, we are creating a new market. Currently the only place that Atlantans can get unique rings like this is online. By bringing Catbird to Atlanta, we are showcasing designers from New York, and if the pop up shop is a success, and we open an Atlanta brick-and-mortar store, then we can eventually stock local Atlanta artistâ&#x20AC;&#x2122;s work in the Catbird Atlanta store.

Brand Strategy

We want our customers to feel cozy, and inspired while browsing the merchandise at our store. At our Atlanta Pop-Up we want to give our customers an experience that is much like our New York location. Our 300 sq. foot location will have couches, places to sit and mingle, as well hot coffee and tea. We will burn some of our candles to create an ambiance. We will also have 2 associates to help customers select merchandise as well as answer any questions they might have. Our objective is to create a lifestyle brand that connects with our customers on an emotional level. We want our customers to love being in our store, and adore our merchandise. Our store will be a place to catch up with a close friends, a place where one can buy that meaningful gift for that special someone, or a place to be inspired by. We want to connect with a customers on more of meaningful level, and we want to be the place where they feel happy and special. Our store is relaxed, but also a place that is supposed to feel like home.

Advertising + Promotion Our advertising will capture our brand identity and style. We want ouradvertising to be simple, with a touch of vintage chic. We will be using social media as a major form of advertising, as well as on our website, and Parisonponce.com. We also hope that our advertising will be because of word of month as well. We offer two promotions a week with percentage off ones purchase.

Sales Strategy

Our strategy is to give individualized attention to every customer as well as try to make them inspired to visit again. We want to create a welcoming environment in our store and have friendly employees who love and represent the brand. We have very wknowledgable sales team who are more than able to assist any and every customer with issues ranging from sizing to designer profiles. We strive to make a personal connection with every customer in hopes they will think of us for future jewelry purchases.

RESULT EVALUATION Catbird for Paris on Ponce was an enormous success. We broke even in the first week of business, and our sales were through the roof. With a knowledgable and well trained sales team we were able to assist any and every customer in need. Our marketing and visuals were very well recieved. Our social media platforms were creatively updated, and helped drive sales and promote promotions and events. Promotional event days bought in herds of customers. We think that Catbird in Atlanta is a very viable market. A good location for our potential Catbird Atlanta store would be the new and upcoming Ponce City Market. The expected revitalization of the Ponce District will go perfectly with our new Catbird Atlanta Store. The products that sold best were the Catbird original designs, however our other designers did very well also. The Home & Gifts line was very well recieved, and provided a gift suitable for anyone. Customers commented on how much they loved the atmosphere of our space, and also our Coffee + Tea Bar!