Marketing and merchandising Plan Stella McCartney by Christina Thordal Andreasen

#StellaStudio

STUDIO

STUDENT DATA COURSEWORK 1 Strategic Marketing and Merchandising Plan project with presentation (individual) 70% Christina Thordal Andreasen BA Fashion marketing & communication Level 6, 2018-2019 6FAMK004C Marketing Techniques and Strategy 3 CWK1 Alejandro Gonzรกlez, Teresa Buhigas Wordcount: 3317 words (Exclusive Appendix and models)

TABLE OF CONTENTS I EXECUTIVE SUMMARY......................................... .................................................................p.4 II METHODOLOGY........................................................................................................................p.7 III APPENDIX 1: FIRST PART. INTERNAL ANALYSIS 3.1 BRAND PERFORMANCE RESULTS ...............................................................................p.10 3.2 BRAND MILESTONES..........................................................................................................p.11 3.3 MISSION, VISION, VALUES..........................................................................................p.12-13 3.3.1 AAKERS BRAND IDENTITY MODEL............................................................p.14-15 3.3.2 KAPFERER BRAND PRISM.................................................................................p.16-17 3.4 TARGET DECLARED BY THE BRAND ..................................................................... ..p.18 3.5 COMPETITIVE STRATEGY AND MARKET POSITIONING...............................p.19 3.6 MARKETING MIX.............................................................................................................p.20-37 IIII APPENDIX 1: SECOND PART. EXTERNAL ANALYSIS 4.1 PEST........................................................................................................................................p.40-41 4.2 MARKET, SEGMENTATION & CONSUMER ANALYSIS........................................ p.42 4.2.1 ACTIVEWEAR MARKET OUTLOOK, SIZE AND GROWTH ..............p.42-45 4.2.2 CONSUMER SEGMENTATION.........................................................................p.46-51 4.3 COMPETITIVE ENVIRONMEN AND POSITIONING .......................................p.52-61 4.3 BENCHMARK OPPORTUNITIES ..............................................................................p.62-65 V RESULTS 5.1 SWOT...........................................................................................................................................p.66 VI PROPOSAL 6.1 OBEJCTIVES.............................................................................................................................p.70 6.2 TARGET..................................................................................................................................p.71-73 6.3 MARKETING STRATEGIES ...............................................................................................p.74 6.3.1 COMPETITIVE STRATEGY.....................................................................................p.74 6.3.2 GROWTH STRATEGY BY MARKET PENETRATION............................p.76-77 6.3.3 GROWTH STRATEGY BY PRODUCT DEVELOPMENT ......................p.78-79 6.4 POSITIONING PROPOSAL ................................................................................................p.80 6.5 KEY SUCCESS FACTORS ....................................................................................................p.81 6.6 MARKETING MIX ...........................................................................................................p.82-105 6.7 LAUNCH PLANNING ..................................................................................................p.106-111

VII MERCHANDISING PLAN 7.1 STORE ANALYSIS OF BARCELONA POS..........................................................p.116-119 7.1.1 NUMBER OF STORES..............................................................................................p.120 7.1.2 SWOT...............................................................................................................................p.121 7.1.3 STORE CLUSTERS PROPOSAL ..................................................................p.122-123 7.2 COLLECTION STRATEGY................................................................................................p.124 7.2.1 COLLECTION DEVELOPMENT AND ACTIONS PLAN ...........................p.124 7.2.2 COLLECTION LINES AND STYLES...........................................................p.125-131 7.2.3 COLLECTION AND ASSORTMEN FUNCTION ON POS ..................p.132-133 7.2.4 TARGET STRATEGY ........................................................................................p.134-135 7.2.5 STOCK ALLOCATION .....................................................................................p.136-140 7.2.6 DELIVERY CHART ....................................................................................................p.141 7.3 PRICING STRATEGY....................................................................................................p.143-145 7.4 BUDGET....................................................................................................................................p.148 7.5 SALES FORECAST...............................................................................................................p.149 VIIII COLLECTION BOOK.............................................................................................p.150-169 APPENDIX 2...........................................................................................................................p.170-180 BIBLIOGRPHY......................................................................................................................p.182-188

- EXECUTIVE SUMMARY Following report seeks to propose a consistent and coherent strategic marketing and merchandising plan for the British founded sustainable luxury fashion brand, Stella McCartney, in within the market of athleisure and activewear. As an industry leader, Stella McCartney, highly represents an increasing industry adoption of brands gradually embracing the strategic opportunity for growth within a more environmentally conscious market, and has assisted the German sportswear brand Adidas in achieving a further exclusive and fashionable market positioning through brand collaboration on creating a high-end activewear collection. From a financial viewpoint and this partnership has been a highly influential profit driver for both parties. For Adidas, the collaboration has assisted the brand in surpassing â&#x201A;Ź1 billion in Net profits in 2016, constant increasing growth and a five-year projection profit increase by an average of 22%24% per year through collaborations such as with Stella McCartney. For the sustainable luxury fashion brand, Stella McCartney, the collaboration offered a controlled and low risk entry strategy for the market of athleisure and-activewear and has been a financial staple for brand performance, especially post joint venture split with Kering Group.

However, in the collaborative process with Adidas of moving into the market of athleisure and activewear, the iconic British take on modern femininity and design direction of Stella McCartney got lost. This has left a collection mainly influenced by technical and performance related expressions of Adidas, to which Adhoc research proves an existing consumer want for further product influence from Stella McCartney design in athleisure and activewear. The challenge now exists in re-launching the pure Stella McCartney brand within the same market (Athlesire and activewear) in a competitive position in which it does not represent a product cannibalisation or threat to the collaboration with Adidas. Considering the current brand challenge, the proposal suggests solving this issue by launching a new project line, StellaStudio, in line with market consumer demands mainly identified from a primary qualitative AdHoc research. The product line consists of stylish, feminine and colourful complementary items for inners and further tech-related activewear (Adidas by Stella McCartney) to provide millennial women with premium transitional clothing that works from studio to street.

KEY WORDS Sustainability

Luxury

China

Marketing Ethics

Market Strategy

Expansion

Â© Saks Potts

- I METHODOLOGY -

Â© Valentino

- METHODOLOGY -

Based upon an extensive gathering of both primary qualitative AdHoc research of in-depth consumer interviews, and secondary qualitative and quantitative online material, following report analyses internal and external brand a market structures of Stella McCartney with the purpose of seizing business and market opportunities for the brand.

The interview content (See Appendix 2, Exhibit 1: Interview outline)gave emphasis to evaluating current consumer behaviour, wants and needs towards athleisure, sports-, and activewear and comparing that to the current Adidas by Stella McCartney collection. This approach was selected in order to identify strenghts, weaknesses, opportunities and threats to consider in outlining the current and future brand perThe Adhoc research has been collected from 20 in-de- formance within the market. pth consumer interviews from two segments; 1. Current Adidas by Stella McCartney (and Stella McCart- The primary research generally sought, how Stella ney Ready-To-Wear customers) and 2. Consumers McCartney may take further advantage of the athlewho have not bought from either, but who buy athleisure trend. isure, sports-, and activewear (Leads).

KEY FINDINGS & INSIGHTS FROM QUALITATIVE ADHOC RESEARCH TARGET • Three different female millennial target groups (1. current consumer: The style and sustainability conscious, 2 current consumer: Style and Fashion concerned consumer, 3: Lead; the social millennial woman who aspire to wear Stella McCartney.

RATED IMPORTANCE OF PRODUCT ATTRIBUTES (AVERAGE) 1. FEMININE

8,5/10

2. STYLISH/FASHION

9/10

3. EXCLUSIVE

8,2/10

CURRENT ISSUES • The collections suffer from a too strong influence 4. COLOURFUL from Adidas, leaving the style and femininity to 5. TECHNICAL/PERFORMANCE be prioritised as second. FUNCTIONALITY OPPORTUNITY (PRODUCT) • Further product femininity for atleisure, sports-, or activewear from Stella McCartney aligning with the brand style codes. • Full stylish outfits and products that can be used for

7/10 5,5/10

RATED PRODUCT ATTRIBUTES (AVERAGE) OF ADIDAS BY STELLA MCCARTNEY 1. FEMININE

3/10

• Refined wardrobe for an active woman - Performance inside, stylish outside • Usage: Everyday use, commuting, outdoors, travel and post-workout recovery.

2. STYLISH/FASHION

5/10

3. COLOURFUL

3/10

OPPORTUNITY (DISTRIBUTION) • Technological integration in POS • Exclusivity • Out-Of-Home distribution.

4. EXCLUSIVE

6,2/10

4. TECHNICAL/PERFORMANCE FUNCTIONALITY

9/10

streetstyle purposes.

OPPORTUNITY (PROMOTION) • Social and value oriented marketing • Exclusivity • Lifestyle and personal content • Instagram friendly promotion

APPEN

INTERNAL

Â© Stellamccartney.com

NDIX 1: 1st part

L BRAND ANALYSIS BRAND PERFORMANCE AND INTERNAL EVALUATION

Brand results, identity & marketing approach 9

- III INTERNAL ANALYSIS 3.1 BRAND PERFORMANCE RESULTS

2015 Annual global sales

2016 Domestic market(UK) pre-tax profit increase

€132.6 176.8 m.

+ %31

2017

€10.6m., down from Domestic market (UK) €11.1m.

pre-tax profit decrease

2018 General profit decrease (more than 50%)

From €9.6m. in 2017 to €4.5 m. in 2018.

2015 market sources estima- 2016 ted that Stella McCartney’s annual global sales were somewhere be-tween €132.6 Net profits growth million and €176.8 million. Sales rose 31% in 2016, but had been artificially boosted in Britain by the Brexit effect.

2017 Continuing profit growth

€1 billion

+16%

Pre-tax profit was €10.6 milli2015-2020 on, down from €11.1 million, +22-24% and operating profit fell 4% to Projects profit increa- per year €10.6 million after rising as se with 5-year strategy much as 43% same year. Stella McCartney earned €4.5m. in 2018, just half what she took home in 2017 despite designing dresses for Meghan Markle’s wedding.

Kering does not break out the revenues of its smaller houses, however, the annual retail value of Stella McCartney products is likely significantly more thanks to branded collaborations with Procter & Gamble for beauty (including a hit fragrance business), Adidas for activewear and Bendon for lingerie. Her collection with Adidas, first launched in 2004, has become a brand in itself. McCartney then launched menswear in 2016. The 2017 calendar showed rising sales and profits in its domestic market, as Stella McCartney is continuing to expand with the UK-based designer’s accounts across the UK. However, its UK figures didn’t exactly show it progressing in leaps and bounds with revenues there up only 2.1% to €49.5 million and net profits rising a smaller 1.5% to €8.2 million.

2016; major milestone for Adidas, as the Net profits surpassed €1 billion and Adidas has not experienced slowed growth since then. Profits from continuing operations grew 32% to €1.43 billion, while revenue grew 16% to €21.218 billion. Continuing to implement its “Creating the New” strategy to become the “best sports brand in the world,” projects profits to increase by an average of 22% to 24% per year through collaborations.

Adidas now projects profits to increase by an average of 22% to 24% per year, and the creative collaborations with Stella McCartney, Alexander Wang and Kanye West will assist that profit increase. The same development and engagement is by Adidas expected for the Athlete collaborations, also adapted in the Adidas by Stella McCartney campaigns featuring professional athletes such as brand ambassador and professional tennis player Caroline Wozniacki, presenting Barricade US Open collection; a modern take on sports design for the 2017 Grand Slam season. Adidas states a continuation strategy that encompasses collaborations with consumers, designers and celebrities alike in which the company commented its collaborations with Stella McCartney as being effective in increasing desirability of the brand.

EVALUATION Considering the assumingly stable financial situation of Stella McCartney, despite most recent numbers showing general profit decrease, the leading market position as a sustainable luxury designer and increasing success of Adidas, giving much emphasis to the valuable role of creative collaborations, those must be considered crucial for the continuing success of Stella McCartney for both further reaching the millennial target, as planned in expansion strategy post Kering split, as well as for creative development into further lifestyle orientation, still keeping with the ethical, sustainable and feminine luxury values.

3.2 BRAND MILESTONES Stella McCartney ended 2005 by releasing her collaboration with Adidas, a landmark in her career that transitioned the edgy brand aesthetic into a further sporty line. The collection, Adidas by Stella McCartney, was launched as a active and sports performance line for women and marks the first time the Stella McCartney brand moved away from high-fashion, tailored silhouettes, and what mat have given her an entry into the menswear market. Figure 1

Timeline of key events related to the brand. ÂŠ (Andreasen, et al., 2018 p.8).

3.3 MISSION, VISION, VALUES STATED BY THE BRAND “We are agents of change. We challenge and push boundaries to make luxurious products in a way that is it for the world we live in today and the future: beautiful and sustainable. No compromises.”

The statement of Stella McCartney communicates both vision and mission of the company as a committed willingness to change according to the current and future social and environmental challenges that consumerism is facing in 2018. It advocates for improving the world and the fashion industry as a whole step by step using the resources available to support that change. Another major part of the brand’s philosophy is to provide people with an example that high fashion can also be created in a sustainable way, setting the bar high for the future of the fashion industry (Kenny, 2015). Thus, the brand has been achieving great heights economically, with constant expansion and gaining global recognition for their respectable contribution. (Andreasen, et al., 2018 p. 9)

1. DVF with the Planned Parenthood batch at CFDA. 2. Ashish Gupta on solidarity, London. 3. Versace, Equal statement. 4. Prabal Gurung’s 2017 Fall show with 39 pro-woman messages. 5. Halima Aden walked Max Mara, Alberta Ferretti, and Yeezy in hijab. 6. Dior, spring 2017 feminist T-shirt. 7. Christian Siriano’s (sold-out) $25 T-shirts, all profits sent to charity.

Figure 2 Stella McCartney’s Ethical Sphere Model (Arnold, 2009), (Andreasen, et al., 2018 p.10)

The values of Stella McCartney are determined by applying the Ethical Sphere model (Arnold, 2009) on the brand. The model, as shown in CWK1 (Andreasen, et al., 2018 p. 10) gives emphasis to the core values of the brand and how they relate to actual brand actions and assist in understanding the coherency of Stella McCartney. From the model it can be concluded that the brand values highly re-flect the sustainable business approach and the ethical ethos the brand wishes to communicate; an in-formal close-to-heart attitude, Encouragement, personality, authenticity, trustworthiness, craftmanship, quality and transparency (Andreasen, et al., 2018 pp. 37 - 44).

3.3.1 AAKERS BRAND IDENTITY MODEL The following model briefly characterizes each of the four perspectives Aaker recommends companies to take into account in formulating their brand strategy in coherency with brand identity. Following model gives a general comments on Stella McCartney.

EXTE

Figure © Stellamccartney.com

BRA ESSE

BRAND AS PRODUCT

BRAND AS ORGANIZATION

The product related attributes of Stella McCartney will by nature have an important influence on the brand identity as a result of the link to user demands and requirements and product experience. Aaker addressed six dimensions within this group; Product scope, Product attributes, Quality/value, Uses, Users and Country of Origin.

Brand organizational attributes are less tangible and more subjective and can contribute significantly towards value propositions and customer relationships. Aaker addressed two dimensions within this group; Organization attributes and local vs. global.

Stella McCartney’s commitment to sustainability is evident throughout all her collections and is part of the brand’s ethos to being a responsible, honest, and modern company. High Qualilty alternative materials Ethical and sustainably conscious (faux fur and recycled polyester as alternative to leather products). ”I think one of the biggest compliments is when I know people gp in and buy a Falabella bag or a pair of shoes, or a faux leather skirt, and they have no idea they’re not real leather. I think that’s really where it becomes sexy. Where you’re not just providing an alternative...you’re creating a great product.” (McCartney 2018) Two-way target audience The style & sustainability concerned target (growing customer group and makes up for a highly loyal customer group). A signicantly larger target group is buying the products due to style & luxury market recognition/liking of luxury products/trend following. Feminine, elegant and classic A style combination highly found in the bestselling items such as the Falabella handbag and Elyse platform shoes creating a further androgynous look.

Innovative and influential The brand allows itself to operate in symbiosis with socio-cultural demands and in advance of its competitors influencing both industry and consumer behaviour through an authentic and coherent omni-channel business model. Environmental and social accountability push McCartney’s rentless searching for innovative and sustainable methods. Global brand Stella McCartney, being an industry frontrunner has turned its British take on modern femininity, environmental responsibility, and tailoring into a global brand. 51 freestanding independent stores in 77 countries, with 863 separate locations, including corners in department stores. Online shipping internationally to over 100 countries. Recognized industry leader Stella McCartney communicates a message of responsibility, consciousness and a destructive and ignorant industry; however under a more glossy, friendly and less activist image as a mindful lover of nature and of life. Caring Digital and offline communication activities give great emphasis to promoting the brand engagement with Charity and funding for causes such as cancer with personal references.

ÂŠ Stella McCartney

ENTED

ORE

AND ENCE

BRAND AS PERSON

BRAND AS SYMBOL

Brand personality is a very distinctive brand element and extensively used in many brand equity models. Aaker addressed two dimensions within this group; Personality and Brand-to-customer relationship.

Brand as a symbol can capture almost anything that represents the brand. A strong symbol can fulfill an important and even a dominate role in brand strategy. Symbols are very strong if they involve a recognizable, meaningful and trustful metaphor. Aaker addressed two dimensions/three types within this group; Visual Imagery and Metaphors, Brand Heritage.

Genuine, trustworthy, transparent The personal brand image is reflected in the brand name and might assist in pushing trustworthiness. McCartney stands forward as a representation of brand beliefs stressing the willingness of brand transparency. Friendly ethos and advisory Authentic and personal McCartney, builds a safe and reliable nature around the brand in which it opens up an honest information stream, which enables and pushes the brand authenticity. Additionally, the brand leaves the customers room for self-expression, as the products come to carry a â&#x20AC;&#x2DC;personalityâ&#x20AC;&#x2122;, a stance or a message and becomes the signifier of how the customer wants to be conveyed by its surroundings.

The dot has become a key brand signifier of the Stella McCartney brand, and whether printed or digital, the identity is always alive as communicated through the brand logo likewise. This concept is additionally highly elevated in the brand collaboration with Adidas. Clear and simple Gentle, but progressive Elegant and feminine

Encouraging and informal close-to-heart attitude The tone of voice establishes a peer-to-peer connection between the brand and the consumer, it through a millennial attitude it encourages a celebration of feminine, stylish and responsible consumption and the beauty of nature.

3.3.2 KAPFERER BRAND PRISM HAPPY

HONEST INNOVATOR SHARP TAILORING

MODERN FEMININITY

PHYSICAL

BEAUTIFUL CURIOUS

RESPONSIBLE TOWARDS THE ENVIRONMENT

ETHICAL & SUSTAINABLE PRODUCTS

STYLISH & COOL INSPIRING

PERSONALITY

TRUST ETHICALLY MINDED

DEVOTED

FASHIONABLE INNOVATIVE

EXTERNALISATION

INTERNALISATION

CULTURED

EXPERTISE

POSITIVE CHANGE AGENT

COLLABORATIVE

REFLECTION

SELF-PROJECTION

MATURE

A MATURE PERSON FEMININE ECONOMIC FLEXIBILITY STYLE ORIENTATED

UNIQUE

CONFIDENT FEEL GOOD ABOUT ONE SELF CARING

MODERN

CONFIDENT

INNOVATOR

FEMININE SPORTY

MODERN

FUNCTIONAL TRENDY

PHYSICAL

CLEAN

PERSONALITY

QUALITY

ETHICALLY MINDED

EXTERNALISATION

INTERNALISATION

FASHIONABLE INNOVATIVE

UNIQUE

COLLABORATIVE

REFLECTION

SELF-IMAGE

CHIC

SPORTY

ECONOMIC FLEXIBILITY STYLE ORIENTATED

ENVIRONMENTAL FRIENDLY

STYLISH & COOL CONFIDENT

FEEL GOOD ABOUT ONE SELF

3.4 TARGET DECLARED BY THE BRAND “Now 40 years old, she has developed a witty, down-to- earth approach to dressing women like her: wellto-do, yes, but working women with lives of responsibility and complexity, women who have more use for a well- cut pantsuit for work or a roomy knit jumpsuit for hanging out with girlfriends than they do for a floor-length gown. McCartney is one of the very few designers, male or female, who make clothes for all hours of the day and not just the evening.” (Horyn, 2012) With the above quote, Stella McCartney gives emphasis to a matureness and consciousness integrated within her target. Stating this, she additionally sets herself as the target customer, describing that effortless chic is not only how she carries herself, but also what she wishes to pass on and appeal to her target audience. It is furthermore the emotional connection and personal relation to the target, that since 2001 has won her a substantial fashion following (Chen, 2017). However, according to the company’s expansion strategy, the brand has been focusing on giving further emphasis on targeting a millennial audience by the beginning of 2018. Thus, Stella McCartney is primarily targeting Generation X (Baby Boomers) and secondarily targeting Generation Y (Millennials) (Kering, 2017). Through research, it appears that Stella McCartney’s target age are men and mostly women throughout the ages of 25-45 years old, in which the most responsive age group for sustainability are young adults/Millennials (BSD Global, n.d.). Women, are a primary target for the brand as they account for 85% of retail purchases (Roth, 2009).

3.5 COMPETITIVE STARTEGY AND MARKET POSITION DEFINED BY THE BRAND “We’re providing these [sustainable fashion] solutions for mindful and responsible women consumers that are also modern and chic, so we need to provide that for our male consumers too. (...) [My clothes] are subtle and chic but, at the same time, they make a good statement” (Chen, 2017)

LUXURY AND

The unsaturated market for sustainable luxury fashion provides the brand with a highly powerful competitive advantage in distributing their products and has moreover led the way for the brand to influence a string of mainstream brands such as Adidas and H&M through collaborations, who respectively, in 2004 and 2005 began adopting further sustainable and eco-conscious business models. The innovative tactics of Stella McCartney have additionally assisted the brand in establishing a strong market presence engaged in sustainability as a method of differentiation, which provides the brand with a competitive advantage of being trailblasers for sustainable luxury fashion (See sustainability commitments, Appendix 2, Exhibit 2)

CAN CO-EXIST

ENVIRONMENTAL SUSTAINABILITY

In short, McCartney has built the world’s first sizable global fashion brand rooted in sustainability (Amed, 2015)

Quality & style Advanced quality materials, responsible, confident, feminine and chic simplistic style.

Series productions Brand Identity & Heritage This can be demonstrated through their strong brand values towards sustainability and being one of the trailblazers in that field.

They collaborate with other brands such as Adidas, offering limited edition collections (Adidas, n.d.) . According to the sales assistant in store (Ad-Hoc) , they select different products for every store (offline and online).

3.6 MARKETING MIX .

P PRICE

PROMOTION

PLACE

Â©Vogue UK. Stella McCartney holding the vegan Stan Smith shoe in collaboration with Adidas.

P PRODUCT

PRODUCT

For an extended version of the marketing mix (Exhibit 3, Appendix 2)

Product analysis of the brand Stella McCartney gives emphasis to the collection Adidas by Stella McCartney, as the report focuses on improving this product area. The following collection structure for the current Adidas by Stella McCartney collection, showcases a sport and activewear collection based on 67 references divided within 20 product categories and within 3 products families and a category of complementary items, classifying the collection into Essentials, Training/ Yoga, Running and a Complementary item grouping. The collection includes 8 colours (including multi coloured) and presents an offering of 91 colour references (Black (31 ref), Grey (16 ref), White (14 ref), Multi (10 ref) Blue (10 ref), Coral (6 ref), Pink (3 ref), Orange (1 ref)). Core colours such as black, grey and white respectively accounts for 34%, 18% and 15% (in total 67%) of the of the entire collection of 91 colours references, while only 33% of the collection is in further bold colours (multi, blue, coral, pink or orange). The collection structure additionally shows a product grouping within any family marked (no family), however, the following segmentation is made as a suggestion by the author to recategorise those products into more suitable categories. The no-family products with the comment: ‘fashion items’ is suggested as the products are described as further fashion or as stand-out items in the website product description making these products the ones from which the consumer secondarily can compliment the sports, performance and high technology items with a more fashionable and higher priced item. Additionally, the no-family products with the comment: ‘basics’ is suggested as the products are adsressed as further complementary basic items. The collection generally communicates a strong unique selling point as luxury sustainable fashion, however, from the highly technological style, it is clear to identify Adidas’ level of influence on the collection, as it features a low level of the design direction McCartney normally is renowned for including sharp, simple tailoring with a feminine edge and considerate approach to wearable design. Furthermore, the collection structure stresses an issue of collection organisation and product specification causing a level of utility confusion. STAR:

QUESTION MARK:

Potential to become a product star and increase future sales if invested accordingly. .

Still fairly new line.

Adidas by Stella McCartney

Menswear

PRODUCT ELEVATION DOG:

Fragrance BCG (Growth Market Share Matrix)

Potential opportunities to grow into larger beauty range emphasising ethical products and production.

- PRODUCT STRUCTURE Adidas by Stella McCartney -

- READY TO WEAR -

- SHOES -

- HANDBAGS -

- LINGERIE -

- ACCESSORIES -

- SWIMWEAR -

PRICE

For an extended version of the marketing mix (Exhibit 2, Appendix) Specific price range for womenswear (€22 - €3.800) Ready-to-wear (as of February 2019 website offering): €175 Black Ministar T-Shirt - €3.800 Evening Dress. Handbags (as of February 2019 website offering): €285 Stella Logo Clutch - €1.075 Falabella Fine Chain Tote. Accessories (as of February 2019 website offering): €50 Monogram I-phone 8 Case. – €695 Monogram Blanket. Shoes (as of February 2019 website offering): €250 Stella #stansmith adidas women. - €825 Black Thigh-High Boots. Lingerie (as of February 2019 website offering): €35 Grace Glowing Briefs - €430 Sleepwear (pyjamas) Swimwear (as of February 2019 website offering): €105 Blue Classic Bikini. - €330 Blue Wrap Swimsuit.

- FRAGRANCES -

- BRIDAL -

- BESTSELLER -

PRICE

For an extended version of the marketing mix (Exhibit 2, Appendix) Specific price range for womenswear (€22 - €3.800) Fragrances (as of February 2019 website offering): €38 POP Shower Gel 200 ml. - €99 POP Eau De Parfum 100 ml. Bridal (as of February 2019 website offering): PRICES ONLY BY APPOINTMENT

- CLOTHING -

- TENNIS -

- ACCESSORIES -

- BESTSELLER -

- SHOES -

PRICE

For an extended version of the marketing mix (Exhibit 2, Appendix) Specific price range for Adidas by Stella McCartney (€11 - €230) Clothing (as of February 2019 website offering): €42 White Barricade Short - €220 Grey Parka. Accessories (as of February 2019 website offering): €11 White Barricade Socks - €230 Greay Studio Bag Footwear (as of February 2019 website offering): €42 White Adissage Sliders - €230 White Ultraboost X Trainers Tennis (as of February 2019 website offering): €11 White Barricade Socks - €84 White Barricade Dress

DISTRIBUTION

PROMOTION (POES MEDIA MIX EXTENDED)

AID

Stella McCartney has increasingly been investing in charity events and sponsorships here including cancer foundations with special reference and emphasis given to breast cancer to which the brand has risen annual awareness campaigns such as #NOLESSAWOMAN campaign. Sports and athlete collections including Paralympics has recent years additionally been priority for the Stella McCartney and Adidas collaboration, designing Adidas Olympics kits and sportswear for the participating athletes, most recent for the Rio 2016 Olympics dressing the Great Britain team in national colours. An initiative both stressing McCartney’s design origin and brand heritage, as well as expanding further into another market than high-end luxury fashion.

The paid media strategy highly assists Stella McCartney brand in positioning the brand as a front runner and industry trailblazer for environmental and social conscious awareness and action.

WNED

Social and media activities continue to contribute greatly to the expansion of the brand and as of February 2019, Stella McCartney counted 5.7 million followers on Instagram, over 1 million followers on Twitter, and 0.9 million followers on Facebook. This social presence is instrumental in engaging with current clients and potential leads, Millennials in particular, allowing them to stay strongly connected with the online Stella’s world aligned with the offline brand environment. Online brand presence includes: Website, Facebook, Twitter, Instagram, YouTube, Tumblr and Snapchat, creating a broad and extensive online reach. The owned media, especially, brand Instagram and website may be one of the most crucial parts of the media strategy considering a rather high level of brand transparency and informative content including sustainability reports, a blog under the name ‘Stella’s World’ showing important publicity, campaigns, new collaborations as most recent with Farfetch, talks on climate change and contents regarding relevant values for the brand as well as kidswear and lifestyle elements. The owned media holds a large coverage and manages to control the information stream that flourishes around the brand, however, of very high importance to the owned media is the coupling with the earned and especially the shared media, broadening the reach in a further consumer-centric and relatable manner.

ÂŠ stellamccartney.com. Collaboration with Adidas for the UK olympic team.

ARNED

2018 became a highly influential year for Stella McCartney and earned media coverage, who in line with the British Royal wedding of Megan Markle and Prince Harry, Duke of Sussex, generated $2millon in earned media coverage and was mentioned 1,840 times and generated 9.605.198 likes. This was attributed to not only McCartney designing Markleâ&#x20AC;&#x2122;s white halter-neck evening dress, but moreover to designing daytime dresses for celebrities such as Oprah Winfrey and Amal Clooney (Images in Exhibit 4, Appendix 2). However, as mentioned in brand performance results, Stella McCartney suffered from a great-scale profit decrease in 2018, despite designing dresses for the Royal Wedding.

HARED

As of shared media, the Stella McCartney brand does well in creating shareable content heavily endorsed by celebrities, who share the same values. Most recent shareable brand social media initiative, currently flourish under the name #THERESHEGROWS and is dedicated to bringing awareness to saving the Leuser ecosystem in Indonesia, where any consumer can participate by sharing the hashtag and donating a tree to the ecosystem. Within the 6 first days the hashtag #THERESHEGROWS has only generated 1.253 posts, while holding close to 150.000 shows and, up to 10.000 likes. However, these posts are largely shared by celebrities and not the common consumer, creating awareness, but leaving out the actual consumer sharing. Nevertheless, the engagement rate on the shared posts is maintained high. The shared media highly assist the owned media in creating and spreading brand awareness regarding brand values and initiatives relating to those.

IGITAL

BRAND COMMUNICATION (Andreasen, et al., 2018 pp 37-40) Analysing

online channels of the brand (Facebook, Instagram, YouTube, Twitter, Tumblr, Website), brand image is presented through a rather transparent brand communication, incomparable to any competitor, transmitting product information, sales, and brand values related content all with sustainability at their core. The online communication content highly reflects the love for nature and features both a soft and natural colour scheme accompanied by various complementary images of actual nature used for informative imagery explaining the core brand segments and values on the website. The social channels highly reflect the social and environmental commitment of Stella McCartney. Both as a brand and a front figure, the brand exudes a peer-to-peer connection, that pushes trustworthiness and ensures craftsmanship and quality, perfectly pairing with a complementary seriousness of the subject of sustainability, facing the destructive industry.

APPEN

MARKET O

NDIX 1: 2nd part

OUTLOOK

BRAND PERFORMANCE AND INTERNAL EVALUATION

Market development, challenges and opportunity 39

-IIII EXTERNAL ANALYSIS 4.1 PEST (E), INCLUDING NOTES ON THE CURRENT FASHION SYSTEM POL. INFLU.

ECONOMIC INFLUENCES

SOCIO-CULTURAL INFLU

TRENDS

DISRUPTIONS

- Geopolitical tubulence

- Economical uncertainty, however, continued moder- - Online platforms among the top three market trends of ate economic growth and growing market optimism of 2018 - Brexit may influence fashion sales. Stella McCartney directly - Direct to consumer communications as a local UK brand. - Economic growth shift from West towards East and South. East and Southern market domination within - Growing significance of m-commerce and digital integlobal online retail sales, possession of e-commerce gration throughout the shopping experience unicorn’s, innovation, global scale investments and - Increasing consumer expectations and now or never expansion. concept and radical transparency. - Consumer desire for user-led design- and experience processes of personalization and mass-customization

- Emerging East and Southern powers - Trade 2.0

- Increasing social media influence

- Localising in global markets

- This online evolution within the retail sector causes immediate brand actions towards how to collaborate with large online players - Increasing importance of retailers adopting omni-channel or model O2O2O premisises to their distribution, due to continuous need for human interaction, despite decline in brick & mortar traffic.

Geopolitical turbulence

Emerging East- and Southern powers

Economical uncertainty

Importance of Omni-channel businesses

Increasing customer expectations

Geopolitical turmoil and current political landscape will have lasting effects on globalisation beyond 2019, as many consumers and countries might turn to a concept of deglobalisation and give focus to domestic growth and increasingly local benefits.This political situation will assumingly push countries to find common ground and new allies in new markets.

An economic growth One of the top challenges for General move towards omshift from Western mature the fashion retail industry is ni-channel and model O2O2O markets to emerging East- found in global economic vol- to create seamless shopping and Southern regions have atility, uncertainty, and shifts experiences matching rising become significant hotbeds in power. Geopolitical turbu- consumer expectations. for industry growth. For lence moreover, represents an that reason brands with unpredictable component to New business models are mature markets at the core, the economic uncertainty. For appearing as the industry are forced to pursue new the industry, this means that increasingly experience desolutions and “pockets of brands must invest in flexible cline in brick & mortar traffic growth” in emerging trading and innovative solutions to and therefore calls for digital markets to stall declining easily adapt to constantly reinventions of offline retail sales- and profit outlook. changing circumstances. spaces. Nevertheless, attention will These models are partly foremost be given to re-focus pushed by increasing social internal strengths. media influence, why the focus is given to quick-response methods and supply-chain optimization. The new online business models moreover turn to developing into premium and luxury market with data and customer-insights at core.

Figure: 3 Amed, I. et.al. (2018)

Due to increasing market competition and constant developments within product, service, and technology, consumer expectations have increased drastically. For that reason expectations of total fulfillment of all brand offerings such as convenience, quality, values orientation, newness, price, functionality, and immediacy at all time has become normality. Now-or-never In the mobile consumer journey, the gap between discovery and purchase has become a pain-point for a more impatient fashion consumer, who seeks to purchase exactly the products they discover, immediately.

UENCES

TECHNICAL INFLUENCES

ENVIRO. INFLU. FASHION SYSTEM

- Values, social and environ- - Adoption of collaborations and mentally consciousness has partnerships to offer extended come to matter and gained portfolio and to assist brand expansion into new segments or an increasing importance - Significant rise in the dis- - Consumer data and insight-based business models push- in the current consumption markets. behaviour. posable income and growing ing distribution efficiency. - Self-Disrupt; traditional brands fitness conscious population and companies self-disrupt own - Rapid expansion of online platforms is expected to devel- - Political, socio-cultural are adding to the growth and NGO initiatives towards business models, image and op into the premium and luxury market of the global activewear earth consciousness, water offering en response to small market new emerging brands that has supply concern, ethical - Internet of things (IoT) provides fashion retailers with opportunities to gain new and thorough customer insights. sourcing, supply chain man- decreased brand loyalty and increased growing appetite for agement, sustainable - A-commerce and M-commerce integration and impor- resources and CSR. newness. tance of online platforms; global interconnectedness and interconnectivity and seamless move towards omnichannel - Digital Landgrab; brands and shopping experience. fashion companies exellerate - Rising focus on social and - Growing digitalization in both online and offline retail environmentally responsible environment as well as across value chains with refined cost structure. initiatives.

innovation by adding profitable value added services, in the race to be the platform or brand of choice.

- Changing distribution formats and channels marks the evolution of the retail sector. - Online platforms are often the first point of search and are expected to grow in both scales and reach attracting even more fashion brands to participate with these new distribution channels.

- On Demand; Mass players will begin to experiment by responding more rapidly to trends and consumer demands, pursuing just-in-time production to reduce overstock and create short, smallbatch production cycles.

Rising focus on environment and social causes

Digital integration and seamless shopping experience

Disruptive technologies

Earth conscious reposibilities and activism

Accellerated speed of changing according to consumer preferences

10.

Younger generationsâ&#x20AC;&#x2122; passion for social and environmental causes has reached critical mass, causing brands to become more fundamentally purpose driven to attract both consumers and talent. Consumers from some, but not all markets will reward players that take a strong stance on social and environmental issues beyond traditional CSR.

Online platforms and digitallandgrab are positioned among the top three market trends of 2019, as the digital approaches increasingly dominates the retail environment and proves the consumer shift towards online retailers as the first point of search rather than brick-andmortar. General move towards omni-channel and model O2O2O to create seamless shopping experiences matching rising consumer expectations.

The industry is accelerating Increasing political emphasis Intensified emphasis and focus from its adoption of innovative and is globally given to transform- the industry given to accellerating disruptive technologies such ing priorities for fundamental meeting consumer demands and needs down to the very detail in line as AI (Artifical Intelligence), change as IPCC annouces with rising customer demands. m-commerce, virtual reality the world 12 years left for and Big data, allowing the changing the current situation This lead traditional brand to selffashion industry a comprehen- of global warming. disupt and innovate on new methods sive and significant data-flow to attract collaborations and partneron consumers. The technol- Increasing importance and ogies moreover help to mark level of NGOâ&#x20AC;&#x2122;s, summits and ships with other brands, events or or renewing customer touch events with regard to sustain- technology to help an omnichannel experience and their expansion into points throughout the shop- ability, ethics and changing new segments, due to decreasing ping experience and hereby gloabal warming (incl. the customer loyalty. to differentiate within the fashion industry), stressing market by pushing distribution eight new sustainability prioriefficiency. ties for the fashion industry: 1. Supply chain traceability, 2. Combating climate change, 3. Efficient use of water, energy and chemicals, 4. Respectful and secure work environments 5. sustainable material mix 6. Circular fashion system 7. Promotion of better wage 8. Fourth industrial revolution

4.2 MARKET, SEGMENTATION & CONSUMER ANALYSIS 4.2.1 ACTIVEWEAR MARKET OUTLOOK, SIZE AND GROWTH OUTLOOK Activewear will be a $350 billion Market By 2020 by a predicted growth of $83 billion by 2024 (Authors of Report Buyers, 2018). The sociocultural environment is experiencing a significant rise in the disposable income and a growing number of fitness, wellness and health-conscious consumer who’s enthusiasm both boost the demand for athleisure and activewear, and contribute to fueling growth and sales of the global activewear market. Additionally, the activewear and athleisure market is experiencing increasing market competition and currently exist as a highly crowded space with constant development of new brands and is increasingly occupying closet space as innovative brands prioritize versatility and design in order for consumers to wear the products from the studio to the streets, which highly propels the growth of the overall market. Especially, the female consumer base for activewear is increasing, owing to a holistic approach of female customers towards sports, fitness and health.

The fashion outer segment is expected to dominate the activewear market during the forecast period from 2018-2024, due to increase in consumer adoption of athleisure wear as further casual clothing and rise in sports participation. The shoe segment is likewise expected to gain significant attention of customers engaged in sports, fitness and wellness activities. (Authors of Market Watch, 2018).

MARKET BESTSELLERS & TOP MOVERS • • • • • • •

Matched sets of leggings and crop top or sports bra Sports bras with a fashion element Cropped hoodies Lightweight post-workout layers Outerwear (fashionable jackets and shoes) Accesories Shoes/Sneakers

STREETWEAR INFLUENCE Sportswear, becoming increasingly inseparable from streetwear with hig staying power. A fashion wave of athleticism has resulted in many brand collaborations in order for both sides, either performance related or fashion related to collaborate on meeting halfway ensuring a fashionable, sporty and streetwear worthy items. Especially, sneakers have a trans-seasonal feel that makes them a staple for any wardrobe, and have become a driving force for many luxury houses in making them a must-have item.

GENERAL MARKET OPPORTUNITIES 01

PLUS SIZE

02 SUSTAINABILITY

Figure 4: Morgan Stanley’s projection for global activewear sales. (Authors of Forbes, 2016).

The rise of the trend globally, with sales climbing from $197 billion in 2007 to over $350 billion by 2020.

Figure 5: Share of total interactions by platform (activewear) (Caffyn, 2016),

It’s all about Instagram. Fashion brands have come to think of Instagram as a second homepage. And for athleisure, it’s no different. Althleisure brands are also making bigger efforts to localize content here than on platforms like YouTube. Interactions between brands and consumers on Instagram as of 2016: 93 percent for the U.K. and 94 percent for the U.S.

Images from WGSN

PRODUCT AND MARKET TREND FORECAST FOR 2021

2021 dresses women in feminine urban sets and products that ensures comfort and simplicity. The year of 2021 blurs strong sporting attributes and focuses on material innovation wrapped in colourful and bold patterns and prints. Sportswear, streetwear and swimwear come together in a trend that works equally well in the city, at the beach or at the ski slopes.

ACTION POINTS

01 TECH ADOPTION AND DESIGN FOR DIGITAL

2021 explore designs, materials and technologies that will stand out on screen and in real life. The season will additionally be the year artificial intelligence or active intelligence finally moves into the world of fitness, and the need for a ’real-life’ instructor – whether in the gym or at home – will be in less demand. However, the tech will moreover assist consumers in teams such as wellbeing classes or gym training teams.

02 FEMININE FORMS, COLOURS AND PATTERNS

Femininie forms and colour schemes comes in highly important for the spring summer season and the battle with masuline, tech and performance-only monocoloured activewear. 2021 trends showcases a embracement of female forms and show of skin for inner garments, while outer garments gives emphasis to bold coloured, printed or patterned layers.

03 FROM SUTDIO TO STREET

The continiuous merging of sportswear, streetwear and swimwear creates versatile active or performance to wear from the studio to the streets, while maintaining a level of practicalness and fashion. When it comes to styling, fabrics and colours take fashion’s lead and make bold statements. Transitional dressing and premium sportswear will therefore come to play a highly important role to cosnsumers, as they integrate it into their everyday wardrobe and elevate it to new levels.

4.2.2 CONSUMER SEGMENTATION

MILLENNIALS GLOBALLY Millennials generally Official age statement of millennials: 19-36 by Forbes: Born between 1980 and 2000, Largest population by size

Figure 6 : A larger cohort. The Millennial generation is the biggest in US history—even bigger than the Baby Boom. (Authors of Goldman Sachs Global Investment Research, (N/A). GoldmanSachs.com)

According to Goldman Sachs: In the US: 92 million millennials has been registered in 2015 and outgrows previous generations of Generation x (61 million) and Baby boomers (77 million) additionally measured by 2015. The extend of the ASOS target largely consist of millennials, yet according to the official age statement by Forbes ASOS’s target goes beyond millennials as in includes the demographic cohort after millennials, Generation Z. According to the brand statement, the segmentation seeks to address 20-something men and women. As a result of this statement the product portfolio and service offering was additionally centralized around this audience. Millennials tend to live at home with their parents (annex 2) Market size: 75.7 million According to CEB Global: Average household income for US millennials: $60.000 (€48.629,22)

Figure 7: The Millennial generation spending on online apparel compared to Gen x, Boomers and Silents. (Stanton, T., 2017)

MILLENNIALS IN TARGET MARKET: BARCELONA The local millennial target in Barcelona accounts for:

Figure 8: Official population figures (Authors of Ajuntament de Barcelona. 2017. Ajuntament de Barcelona.)

368.972 thousand (22,9% of the total population) men and women in the age between 15-34 years old according to official population figures by Ajuntament de Barcelona. The target is therefore present for Stella McCartney in Barcelona. According to the Catalan newspaper El Periodico, â&#x20AC;&#x2122;millennialsâ&#x20AC;&#x2122; are changing the classic model of consumption. It states that, young people between 18 and 35 years old prefer to spend money on technology, healthy food, sports and leisure. The main difficulty of the companies when addressing this social group is the low purchasing power as the salary in Barcelona has an average of â&#x201A;Ź1. 350 Millennial tourists in Barcelona As the capital of the Catalonia region in Spain and one of the most popular city-vacation destinations in Europe for international tourism tourist must be taken into account for the segmentation. In 2016 overnight tourists in Barcelona reached over 9 million.

Figure 9: International visitor spending in Barcelona from 2012 to 2017 (in billion U.S. dollars) (Authors of Statista, 2017. Statista.com.).

Spending of international overnight visitors to Barcelona reach a total of ap-proximately 8.9 billion U.S dollars and makes Barcelona one of the leading Eu-ropean cities in terms of international visitor expenditure. According to the Ajuntament Barcelona, Barcelona had 34.009.543 over-night tourists in 2017. Of them 6.801.908,6 (20%) where in the millennial age.

(Based on gathered interviews)

CURRENT STELLA CONSUMER: THE STYLE AND ’SUSTAINABILITY’ CONCERNED #FASHLEISURES EXPENDITURE ON FASHION AND CALENDAR OF PURCHASE

BEHAVIOUR • • •

• • •

•

Workouts: Running, Gym training, Skiing. Shops less frequently than the two other segments. Gives emphasis to buying more staple items and is therefore also willing to pay more. Emphasis on maetiral and durability quality items. Dresses more stylish when workingout with others. Have bought other Stella McCartney products before (Falabella bag, Shirts, Jeans, Shoes, Swimwear) Seeks relevance in products and brands.

Currently purchase from the Adidas by Stella McCartney collection to which expenditure per item varies within €20-120 (€20 being socks, €120 being a longsleeve running jacket). Most recent purchases was mainly said to be from 2019 january sale, however purchased due to style, not price decrease. Have bought from the Adidas collaboration 2-3 times with an average product purchase of 1-2 products/purchase. PRODUCT & COMPETITION

Most recent purchases included sportsbras, tights and few midlayer running jackets all in mono colours, mostly deep and dark blue. Sustainability plays a role for may of the purchases, however not being the determinator for the purchase. The segment additionally puchase activewear from Nike, Adidas, Reebok, Ultracor, Carbon38 with focus on ensuring product technique, functionality and batch/logo value, however often considers the products too masculine. DISTRIBUTION

Mainly puchasing active- or sportswear offline in-store due to fitting, however, after purchasing from the brand multiple times online purchases is said to be more convenient. Have only bought Adidas by Stella McCartney online through Stella McCartney webiste and Adidas website and Farfetch.

Dislikes current communication of the collection (Exhibit ?, Appendix), due to being too neon and mixed colours, neverthless athlete campaigns are liked, but product combinations are off.

WANTS

•

PROMOTION

Stylish, colourful and feminine (not too girly) product combinations for their technical and mono-coloured running or workout clothes, will moreover make them more motivated to have a great training session. Wants less retro look from campaigns and more simple product mixing.

Figure 10: Maslow’s Hierarchy of Needs.

SELF-ACTUALISATION

ESTEEM LOVE AND BELONGING

SAFETY NEEDS PHYSICAL NEEDS

CURRENT CONSUMER: THE STYLE AND FASHION CONCERNED #ATH-LUXERS EXPENDITURE ON FASHION AND CALENDAR OF PURCHASE

BEHAVIOUR • •

• •

•

Workouts: Gym training, Yoga, Pilates, Skiing. Shops promuscuously exclusively among mid-market and highend brands. Trend-led with luxury products. Have bought other Stella McCartney products before (Falabella bag, Summer dresses, Shirts, Hoodies, Shoes) Want it all, want it now & now or never concept.

Currently purchase from the Adidas by Stella McCartney collection to which expenditure per item varies within €20-230 (€20 being socks, €230 shoes). Most recent purchases was mainly said to be from summer 2018. Price is not an issue for this segment. Have bought from the Adidas collaboration 1-2 times with an average product purchase of 2 items/purchase PRODUCT & COMPETITION

Most recent purchases included sportsbras, tights, tops, shoes and accesories (mainly bags), further colourful mono colours such as orange, pink, electric blue, black and white for a more vibrant look. Style and femininity is the highest valued attributes to this segment, who additionally comments to highly value a level of streetstyle in order to use to pieces (i.e. tracksuit pants or putter jackets) with everyday wear. Activewear is moreover bought from Adidas, Nike, Carbon38, Alo Yoga, Alala, Ultracor. DISTRIBUTION

Mainly puchasing active- or sportswear online for convenience, ease and speed (browse, navigation and delivery). However, likes to buy offline in-store as well if in doubt of fitting and to get good service to which the store and packaging is expected to be very stylish, instagram-friendly and exclusive. Have bought the adidas by Stella McCartney collection online from multibrand retailers such as Farfetch, Mytheresa and Net-a-Porter. PROMOTION Generally fond of the current communication around the collaboration considering the products being sportswear and highly colourful. However the promotion is considered lacking a level of streetstyle and lifestyle, and is thought a little too high performance related. This segment values further social and exclusive product promotion.

WANTS

• • • •

Different, stylish, colourful, patterned and feminine products Full stylish outfits Exclusivity and instagram friendly promotion, products and distribution. Products that can be used for streetstyle purposes

Figure 11: Maslow’s Hierarchy of Needs.

SELF-ACTUALISATION

ESTEEM LOVE AND BELONGING

SAFETY NEEDS PHYSICAL NEEDS

LEADS: MILLENNIAL WOMEN WHO ASPIRE TO WEAR STELLA MCCARTNEY #THESOCIALIST EXPENDITURE ON FASHION AND CALENDAR OF PURCHASE

BEHAVIOUR • •

• •

Workouts: Gym training, Running, Yoga, Pilates. Shops promuscuously among fast-fashion and mid-market brands. Luxury products are staple items bought from savings. Trend-led purchasing behavious. Have not bought Stella McCartney products before due to general price point leading to think the same about the Adidas collaboration.

Does not buy from either Adidas by Stella McCartney collection or Stella McCartney, however, trusts and buys from Adidas. General expenditure for activewear per item varies within €5-200 (€13 being socks, €200 being running shoes). Most recent purchases was mainly said to be from Christmas presents or 2019 january sale due to price decrease and therefore increased quantity. Activewear average product purchase of 1-2 products/purchase. Willing to pay up to €100 more or jackets or sneakers that has logo/batch value and can be used for a streetstyle look for everydaywear. PRODUCT & COMPETITION

Most recent purchases included sportsbras, tights, running jackets, socks, t-shirts and longsleeve in both mono colours (blue, pink, red, nude, grey, white, black) multicoloured and patterns. Sustainability is a cool plus, however style is the most valued attribute. The segment additionally puchase activewear from Nike, Adidas, Reebok, ASOS, Oysho, H&M, Puma, Varley, Beach Riot, Carbon38, Alo Yoga, with focus on ensuring product functionality, batch/ logo value, style and trend, however often considers basic products from Nike and Adidas too masculine, and mixes therefore with other more colourful brands such as seen from ASOS and Oysho and H&M.

DISTRIBUTION

Prefer puchasing active- or sportswear online, however place high value on in-store and retail experieces when shopping offline in brick&mortar stores or online.

Likes current communication of the collection (Exhibit ?, Appendix), due to being colourful, different and more fashionable than basic Adidas. Highly relies on peer to peer reviews and extensive advertising of products, collections and events in order to remeber the brand. Have seen the products few times on influencers, however, never searched for the products or collection eventhough they liked the products, thinking the price point is out of reach.

WANTS

• •

•

PROMOTION

Desire to wear Stella McCartney products including Adidas collabotaion. Stylish, colourful, trendy and feminine activewear that is affordable (up to €200), however is willing to pay more around €100 for jackets or sneakers that has logo/batch value. Communication that gives value and expeirence and a feel-good attitude.

Figure 11: Maslow’s Hierarchy of Needs. Products and services will to Leads serves the purpose of reflecting their uniqueness, self-acceptance, independence, success and personal satisfaction as well as status recognition from other consumers, and is positioned at ’Etseem’.

SELF-ACTUALISATION

ESTEEM LOVE AND BELONGING

SAFETY NEEDS PHYSICAL NEEDS

SEGMENTATION CONCLUSIONS

THE STYLE AND SUSTAINABILITY CONSCIOUS TARGET The smaller (but growing part of the target) is buying Stella McCartney due to the style & sustainability of the products, makes up for a highly loyal customer group. Opportunities: Stylish, colourful (incl. black, while and grey), patterned/print and feminine product combinations including accessories to wear with their technical and mono-coloured running or workout clothes

Threats: Too retro look and extensive colour combinations.

THE STYLE AND FASHION CONCERNED TARGET The style and fashion concerned target, a significantly larger target group is buying the products due to style & luxury market recognition and/or liking of luxury products/trend following. Opportunities: Different, stylish, colourful, patterned and feminine products, Full stylish outfits, Exclusivity and in-

FINISH icons

stagram friendly promotion, products and distribution, Products that can be used for streetstyle purposes.

Threats: Being too performance and technique related and in too basic colour scheme.

LEADS: MILLENNIAL WHO ASPIRE TO WEAR THE STYLE AND WOMEN SUSTAINABILITY CONSCIOUS STELLA MCCARTNEY Large potential customer base and may especially interested in the Adidas by Stella McCartney and complementary products in similar price category. Opportunities: Better and increased communication that gives value and expeirence and a feel-good attitude on adidas collaboration, due to lack of awareness on collection, product and price, as the collection actually is affordable for this target and is willing to pay around â&#x201A;Ź300 for products such as jackets and shoes. Batch/logo value and self-esteem. Threats: The current Stella McCartney POS, as this segment never has entered been to a brand store due to general high price point perception. If not providing value and experience, this segment will easility turn to competitors.

SEGMENTATION SIMILARITIES All three customer segments pursure to look stylish in good quality clothing in all sistuations (incl. exercising) regardless the point of differentiation between the groups such as pricing, sustainability, values or life situation. The price positioning matches the target, however, product, promotion and distribution format must be changed according to the opportunities. All segments can additionally be targeted through the same channel: Fitness centers.

4.3 CURRENT COMPETITION ANALYSIS & POSITIONING FOR ADIDAS BY STELLA MCCARTNEY.

DIRECT COMPETITORS GENERAL STRATEGIC BASIS

INDIRECT COMPETITORS GENERAL STRATEGIC BASIS

CARBON38 PRIVATE LABEL

VARLEY

ULTRACOR

OYSHO

ALALA

ASOS PRIVATE LABEL

NIKE

ALO YOGA

Direct competitors have been identified from gathered interviews, as the ones the interviewees wear in combination with Adidas by Stella McCartney or as alternatives to the brand. The direct competitors including Carbon38, Ultracor, Alala, Nike and Alo Yoga, have moreover been selected from extensive research, revealing similar value propositions and price points that all position them in a luxury market with high price points and exclusivity. Additionally, the direct competitors provide a high level of performance technique and material innovation at the same time as offering highly fashionable, stylish and luxury products, positioning them in strong competition to Adidas by Stella McCartney.

Indirect competitors have been identified from gathered interviews, as the ones the interviewees wear in combination with Adidas by Stella McCartney or as alternatives to the brand. The indirect competitors have moreover been selected from extensive research showing (Varley, Oysho and ASOS) as lower-priced positioned alternatives to Adidas by Stella McCartney, offering a highly fashion-driven product selection, however, still keeping with a level of performance techniques.

DIRECT COMPETITORS

FINISH icons RESULTS

Carbon38.com

PRODUCT

P PLACE

FootLocker announced that it has made a strategic investment in Carbon38, taking a minority stake in the specialist in women’s luxury activewear. The €13.2 million Series A funding round brought the total raised by Carbon38 to €22.9 million since 2013.

Luxury apparel brand. It fuses the DNA of activewear with fashion-minded style, gym-ready performance pieces for both studio and street, while active-inspired ready-to-wear is made for further exercise with modern silhouettes. Innovative fabrics and product construction of colourful, feminine and call-to-attention pieces that makes activewear a strong modern style. The brand holds a large colourscheme and includes brand collaborations.

Mainly online distribution from own multi-brand webiste i which they sell their private label brand Carbon38. Since 2018, they have opened a flagship brick & mortar store in Los Angeles (Pasific Palisades) financially backed by Footlocker, as well as a store in Bridgehampton, NY that also work as a community gathering point. Custom tailoring, expert stylists and rosé bar are available in the stores. Finally, Carbon38 will introduce a private-label line in Neiman Marcus.

P PRICE

PROMOTION

€5 - €435 Sport Bras: €23 -€75 Tops: €12 - €435 Bottoms: €34 - €264 Accessories: €5 - €12 Jackets: €79 - €234 Dresses & Jumpsuits: €47 - €140 Shoes: N/A Swim: N/A Mainly Owned advertising, based on pop-up store opening, weekl sweat session and one-of-a-kind brand experiences and private shopping events. Much emphasis is given to social media promotion, respectively Instagram, YouTube, Facebook and own website.

RESULTS

Utracor.com

PRODUCT

P PLACE

2018 Second quarter states an explosive period of growth for the california based luxury activewear brand from where it peaks in thrid quarter of 2018 with close to $22 m. in a time of high popularity, shared and earned online media, as consumer were willing to pay for the hype. However the brand decreased to $8.6 m. in the fourth quarter of 2018 and has only experienced a slow growth since then (Authors of Zoominfo. (N/A). “Ultracor Inc., Update Company Profile”). Luxury meets performance. Ultracor position through the quality and luxury feel leggings highly known for the silk-like compression fabric that the majority of their styles are made from. A pair featured Swarovski stones. Ultracor pairs high-performance with cutting edge styling, from bold prints to perfect details, their sleek leggings and bras will offer your improved performance in yoga, spin class, running. The prints especially, plays an highly aspirational role for the following proposal.

Online (Own and 12 online multi-brand retailers) and brick & mortar distribution High emphaiss is given to creating an exclusive online experience that is consistent with their merchandising at exclusive, high-end brickand-mortar stores. the brand seeks to engage the high-fashion consumer: ”women choosing to invest in quality clothing and brands they can rely on.”

P PRICE

PROMOTION

€77 - €318 Sport Bras: €97 -€154 Tops: €77 - €280 Bottoms: €145 - €318 Accessories: N/A Jackets: €175 - €251 Dresses & Jumpsuits: N/A Shoes: N/A Swim: €106 - €247 Mainly Owned advertising, fitness classes and brand events. Much emphasis is given to website promotion of different souces of publicity (articles from PopSugar, Refinery29, Who What Wear) Instagram, Facebook, twitter and own website are the main social channels.

RESULTS N/A

Alala.com

PRODUCT

P PLACE

Luxury activewear. Effortlessly cool and contemporary. Compression tops, leggings, and bras made with high-tech performance fabrics made for yoga, spin, or running. Each piece is styled with high-fashion details to transcend the gym. Feminine, but further sporty references and limited colourscheme. Offers customisation. The brand that by product reminds most of the current Adidas by Stella McCartney collection.

Mainly online distribution from own website and at online and brick & mortar multi-brand retailers (the brand is carried in over 100 major retailers including Bloomingdales and Neiman Marcus).

P PRICE

PROMOTION

€13 - €323 Sport Bras: €40 -€84 Tops: €58 - €111 Bottoms: €27 - €173 Accessories: €13 - €111 Jackets: €53 - €323 Dresses & Jumpsuits: €97 - €119 Shoes: N/A Swim: N/A Mainly Owned advertising, based on pop-up store opening, online promotion of brand collaborations and influencer marketing. Much emphasis is given to communicate brand participation in social causes, respectively on Instagram, Facebook, Twitter and own website. The brand is only selectively running paid online ads for certain areas.

RESULTS

NIKE.com

PRODUCT

P PLACE

Fiscal 2018 Income Statement Review: Revenues for NIKE, Inc. rose 6 percent to €32.1 billion, up 4 percent on a currency-neutral basis, while revenues for the NIKE Brand were €30.5 billion, up 5 percent and sales to wholesale customers increased 2 percent. Gross margin decreased 80 basis points to 43.8 percent driven by 90 basis points of unfavorable changes in foreign currency exchange rates. (Nike website. 2018). Sporty, performance and streetwear related products and include high level of batch/logo value. Nike products sold on high-end luxury activewear multi-brand platforms such as Carbon 38, Net-a-Porter and Farfetch are further fashion and stand-out pieces from the brand that otherwise give high emphasis to performance and product technique. These more fashionable products push for femininity in colours highly elevated in a millennial pink, but still exist with a highly technical apperance.

Online and brick & mortar distribution (both own and multibrand). Own brick & mortar retail stores worldwide (1.182) including 392 stores in the US and 790 stores internationally. For brand experience online and offline, Nike master customisation processes in omni-channel formats and digital retail experience. Additionally, the brand invest in creating ’only-here’ experiences, that provides dynamic and active shopping experience in an environment that’s as responsive as digital

P PRICE

PROMOTION

€7 - €542 Sport Bras: €22 - €87 Tops: €19 - €160 Bottoms: €20 - €221 Accessories: €7 - €308 Jackets: €54 - €542 Dresses & Jumpsuits: €67 - €87 Shoes: €17 - €322 Swim: €31 - €402 Nike uses a proper mix of Online and Offline channels for promotion and creating awareness and initiative on social causes (television ads, Nike is big on Out-Of-Home promotion, sponsoring, brand ambassadors, influencer marketing). Additioanlly, Nike holds large-scale fan following and engagement rate on its social channels. Most recent female empowering campaign ”Show them what crazy can do” below with 17,1 m. views, 3.4 m. likes, 66,5 t. comments.

RESULTS

Alo.com

PRODUCT

P PLACE

Alo Yoga has since first quarter grown from $10 m. to $15m. peaking in fourth quarter of 2018. Since the financial situation of the brand has been stable throughout the first quarter of 2019. (Authors of Zoominfo. (N/A). “Alo Yoga, Update Company Profile”) High-end activewear. Alo Yoga, designed with focus on product flexibility and crafts yoga leggings, tanks, sports bras and active essentials that are fashionable and high-performance. On-trend styles, innovative moisture-wicking and compression fabrics deliver a fit and feel of transitional activewear. Silhouettes are crafted with movement in mind from the studio to the street. The brand prioritises fashion or style over product technique, in order for the products to function as daily go-to.

Online and brick & mortar distribution. The brand mainly distribute online on own brand platform, at online multi-brand retailers. Offline the brand is present in fewer brick & mortar stores, however the main ones they have are highly used for community purposes for cafe meetings or workout sessions. All brick & mortar POS is positioned in the US and is solar-powered and all serves organic food and have Alo retail to gather customer lifestyle at óne point.

P PRICE

PROMOTION

€11 - €307 Sport Bras: €39 - €80 Tops: €39 - €100 Bottoms: €12 - €159 Accessories: €11 - €175 Jackets: €60 - €307 Dresses & Jumpsuits: N/A Shoes: N/A Swim: N/A Mainly Owned and earned media, however paid media plays an additional role with SEO. Exclusive brand classes in fully-equipped yoga studios in Beverly Hills, Grove and SoHo locations (incl. member deals for Alo retail and cafes). High level of celebrity endorsment. Much emphasis is given to social media promotion of publicity and own events mainly on website, Instagram and YouTube.

INDIRECT COMPETITORS

Varley.com

PRODUCT

P PLACE

RESULTS Founded in 2014 the young brand has experienced explosive growth. In 2016 the brands stated to have 2000% over six months that year and has reported combined revenues in excess of €5.8m in 2016. (Decker, 2016) Merging active fashion with innovative design. As performance wear or street style, Varley’s mesh-accented bras, cut-out tops, leggings and swimwear add inspired style to any wardrobe. Product focus on sets and tights and bras. Varley is performance-first lifestyle brand committed to creating technically innovative, fashion forward elegant and active lifestyle. Performs well in feminine pastel colours and simple patterns.

Online and brick & mortar distribution carried in more than 300 retailers worldwide. Varley is currently carried at more than 150 U.S. retailers including Neiman Marcus, Bandier, Saks Fifth Avenue and Bergdorf Goodman, 150 International stockists including Selfridges, Asos and Yoox and has been spotted on fit celebs Kourtney Kardashian and Alessandra Ambrosio.

P PRICE

PROMOTION

€49- €250 Sport Bras: €49 - €83 Tops: €49 - €147 Bottoms: €74 - €117 Accessories: N/A Jackets: €180 - €250 Dresses & Jumpsuits: N/A Shoes: N/A Swim: N/A Main promotional content is owned media or either shared or earned content via the #AgreeVarley that communicates that the brand can use the customers content as well as influencer marketing. Much emphasis is given to social media promotion, respectively Instagram, YouTube, Facebook and own website.

RESULTS

As of 2017, Oysho generated €570m. (net sales) and has since continued its steady growth and market expansion. (Authors of Inditex Group. (2018). “First quarter 2018 results report”) Oysho.com

PRODUCT

P PLACE

Fast fashion brand as a part of the Inditex Group, offering trend-led sportswear in low price setting. Highly succeeds with is product offering merging femininity and elegance with trends, performance and style into activewear, matching many activewear categories (Gym & training, Yoga & pilates, Boxing, Running, Cross fitness, Trekking, Tennis & Paddle and Free time (streetwear purposes)). It offers the products in both mono and multi colours and simple patterns and perform well in mono colour sets, to which the consumer is able to shop by editorial looks.

Online (own website) and brick & mortar distribution (own stores, 670 POS, 65 markets, 33 online markets). The brand additionally have omni-channel distribution.

P PRICE

€8 - €70 Sport Bras: €15 - €30 Tops: €8 - €30 Bottoms: €10 - €60 Accessories: N/A Jackets: €60 - €30 Dresses & Jumpsuits: N/A Shoes: €30 - €70 Swim: €50 Mainly owned promotion and highly aspirational marketing for many brands. Oysho initiated the Oysho Yoga Tour, offering free Yoga for all participants including merchandising.

PROMOTION

RESULTS

ASOS.com

PRODUCT

P PLACE

Retail sales in 2017 (trading statement for the four months ended 31 December 2017) retail sales: +30%, retail margin: +80bps, international retail sales: +35%, active customers: 16,0 million (+19%), Online traffic: 1,7 million people visited ASOS platforms in 2017. (Authors of ASOS plc, 2018)

ASOS 4505 (ASOS private label) offer activewear and performance kits and includes more than 100 different activewear styles women (including plus, petite, and maternity) and versatile pieces for the streets or studio. The product categorisation allows the consumer to shop by activity including, Ski & Snowboarding, Gym Training, Running, Outdoors, Swim, Yoga & Studio. The brand include bold colors, patterns and more simplistic and minimalistic items and place highest emphasis on style and trend rather than performance and technique. Pure online distribution. ASOS founder Nick Robertson, ruled in 2013 that the company would not open a physical store as a complement to its online business. For ASOS peform well in m-commerce stating, a total of 10m active installs of the ASOS app as of 2017. From the app and online mobile website, 69% of all brand traffic is generated from mobile devices.

P PRICE

PROMOTION

€4 - €350 Sport Bras: €9 - €111 Tops: €4 - €119 Bottoms: €9 - €177 Accessories: €9 - €88 Jackets: €27 - €350 Dresses & Jumpsuits: N/A Shoes: €44 - €212 Swim: €13 - €142 Most emphasis put n owned and shared media through the hashtag #AsSeenOnMe. Paid media however, additionally plays a role of the brand as, ASOS outfitted ParalympicsGB for 2018 Winter Paralympics stretching back to 2016 to design and create formal and ceremony wear as part of the brand’s commitment to raising the profile of young adults with disabilities.

POSITIONING MAP

Following positioning maps for direct and indirect competitors are based upon gathered interviews complimented with extensive competitor analysis.

Proposal numbers for STELLAPERFORMANCE are the average numbers that the interviewees ranked from the product attributes they find important for activewear. Adidas by Stella McCartney numbers are average numbers that the interviewees ranked the current collection.

4.4 BENCHMARK OPPORTUNITIES

- ALO YOGA -

- CARBON38 private label -

SPORTY SHOES IN FEMININE COLOURS

- ALALA -

COLOURFUL, PATTERNED & FEMININE OUTER GARMENTS

Sporty, feminine, performance and style related sneaks is seen from both sportswear giants Adidas and Nike, coupling a trendy street style look with a feminine, sporty and androgynous element.

- NIKE -

ACTIV

Colourful and bold jackets with feminine patterns and performance related quality and utility is by 2018 a great influence for exclusive luxury outerwear. Moncler, as a market leader in outergarments makes up for a subtantial reference creating stylish, noticable, feminine and luxurious jackets, that both may be used on the skislopes and on top of a day to day outfit. Moncler and H2O Fagerholt, as referenced to the right may exist as a great influence for the following product line proposal for Stella McCartney.

- ADIDAS -

VEWEAR SOPHISTICATED, FEMINIE SETS

Complementary sets with feminine, sophisticated, colourful as well as basic simple colours and sporty details, is seen from most comtetitors offering tracksuits and sets to wear exercising or casually pre or post exercise.

Relying on the gathered interviews and extensive research the following proposal, this benchmark gives emphasis to opportunities and points of improvements for the Adidas by Stella McCartney collaboration from best practices withtin the market. As according to the AdHoc research, the activewear of Stella McCartney is pointed in a further feminine direction keeping with a high level of performance materials and utility. Each product category is specified accordingly to opportunities accordingly.

MATCHING ACCESSORIES

Fun, feminine and colourful activewear accessories matching the sets and clothing with exclusive gold, silver or rosegold details.

- CARBON38 private label -

- TED BAKER -

- H2OFAGERHOLT -

- MONCLER -

ASPIRATIONAL

- FITNESS RETREAT, TARYN TOOMEY’S, DOMINICAN REPUBLIC -

EXPERIENCE AND SHAREABLE MARKETING Social marketing is taking reference from Oysho’s Free Yoga Event in Barcelona and Madrid 2017, gathering more than 3.000 women each location for them to share the experience of free master classes and merchandise for all participants, pushing extensive earned and shared media and increased brand awareness under the hasgtag #freeyogabyoysho, creating 6.796 shared posts. Oysho sales increased by 7% to €290 million (Alonson, 2018).

- OYSHO ’FREE YOGA EVENT, BARCELONA -

EXCLUSIVITY AND SEAMLESS DIGITAL INTEGRATION

Purchasing and discovering products and fashion are now both a socially physical and digital experience. Additionally, millennials tend to not buy into traditional selling points, however distribution that place value on experience and digital integration and makes the purchase personal and about the customer, not about the channel. Aspirational companies mastering omni-channel and online/offline distribution such as Farfetch, raised in 2016 $110 m. towards global omni-channel domination. The biggest changes are likely to be experienced in-store through a augmented retail solution that links online and offline worlds using data to enhance the retail experience, as physical retail is set to account for 80% of sales in 2025 (Cheng, 2018).

MARKETING SOCIALIZING & NETWORING

Aspirational marketing is additionally found from increasing level of exclusive wellness retreats and masterclasses that create oases away from the fast paced and stressed lifestyle many consumers currently live through. On these fitness retreats and master classes they are assited in stress control and offered networking opportunities through calm and considerate social events. This kind of retreats, socialising and networking cocnept with focus on fitness and wellness grew from $563 billion in 2015 to $639 billion in 2017 according to Global Wellness Institute (Authors of Compare Retreats Magazine, 2018).

LIFESTYLE ORIENTATON, PURPOSE AND PASSION

- Supreme -

- NIKE -

- Christian Siriano -

- Praban Gurung -

More than anything, millennial consumers value purpose, authenticity, passion driven and lifestyle orientated products and marketing. Best practices within the market has currently been reltaed to social causes such as women empowerment and event dedicated to LGBT or cancer. Lifestyle orientation is additionally successfully created by collaboration between Supreme and Louis Viutton, highly relfecting the aspirational luxury and streetstyle lifestyle for many millennial consumers. (Bryant, 2017).

- Backstage, - FARFETCH London Fashion Week -

STRENGHTS

W WEAKNESSES

O OPPORTUNITIES

T THREATS

- V RESULTS S. Global distribution providing an additional global market coverage.

S. Already positioned within the market of activewear with strong partner in Adidas.

S. The brand’s differentiation is derived from the unique position as the only sustainable brand in the luxury market being industry frontrunner.

S. Substantial target audience with purcha-

S. Strong promotional presence in both

online and offline environments, communicating brand initiatives and values and frequently pushes and succeeds with a high level of shared media for different environmental or social causes, like cancer support.

S. Generally a wide price range (€20-

€5000) that allows any fan of the brand to be included as a customer and share brand experience and values.

sing power.

W. Too large design influence form Adidas

on the collaborative activewear, causing the collection to exist highly technical rather than fashionable with designs from Stella McCartney.

W. Brand inconsistency in stores and lack

of proper and coherent communication of the Adidas collaboration in stores and online (mainly owned media), resulting in consumer (leads) confusion on collection O. Activewear will be an $350 billion Market By 2020 by a predicted growth of $83 billion by 2024. O. Extending customer reach to a target of millennial girls who aspire to wear Stella McCartney products, but can not afford the ready-to-wear products. O. Increase brand offering of activewear to meet growing market and cosumer demand by launching a activewear studio line that is complementary to the Adidas by Stella McCartney collaboration, offering fashionable activewear that can go from studio to street to complement technical (inner) sportswear. This will additionally assumingly assist in changing the customer perception regarding the Adidas by Stella McCartney, and position it further stylish and fashon and less technical. O. Extend product variation including offe-

price setting, distribution and product offering.

W. Lacking omni-channel distribution and intelligent tech adoption in-stores, despite omni-channel distrbution being brand priority post split with Kering.

W. Lack of distribution experience in-store.

ring of sets, outergarments, accessories and shoes and increase use of patterns, prints and colours and elevate product femininity in line with market trends for SS21. O. Improve brand/product line promotion by investing in experience, social marketing and value orientated brand communication. O. Tech (AI), omni-channel distribution and app creation, in line with expansion strategy to increase millennial target reach. Ad hereto a further expansion to eastern market regions (mainly China) that are less saturated and currently experiences a merging of luxury and lifestyle matching customer segments such as #ATL-LUXERS and #FASHLEISURES.

O. Elevate brand values by moving into further lifestyle-orientation by introducing Ethical Skincare.

T. Sustainable and conscious brand are in das general brand values not aligning with high demand in the fashion industry and may soon no longer be a distinguishable trai as new brand enter the market.

T. The existing collaboration with Adidas

received backlash after the announcement of McCartney’s and Adidas’ collaboration respectively in 2013 and 2016, due to Adi-

the ethical values and guidelines from Stella McCartney and can continiue to damage the brand collaboration.

T. European and american market saturation and constant entry of innovative brands.

Â© Saks Potts

Â© Outdoor Voices

PROPOSAL STRATEGIC MARKETING PLAN & FINANCIAL EVALUATION

Market opportunity and brand development 69

- VI STRATEGIC MARKETING PLAN 6.1 OBJECTIVES

PROFIT GENERAL PROFIT INCREASE AND SALES BOOST OF MINIMUM 10%

DIGTIAL GROW SITE TRAFFIC 20% WITHIN THE NEXT YEAR BY INTRODUCING OMNI-CHANNEL DISTRIBUTION TO THE BRAND POS. CONSUMER: 1. INCREASE CONVERSION RATE BY MINIMUM 20% DURING POP-UP PENDING PERIOD FROM JANUARY - MARCH 2021 2. EXTEND CUSTOMER REACH BY INTRODUCING NEW PRODUCT LINE

STUDIO

6.2 TARGET

#THESOCIALIST, #ATH-LUXERS & #FASHLEISURES CURRENT CONSUMER: THE STYLE AND FASHION CONCERNED #ATH-LUXERS

CURRENT STELLA CONSUMER: THE STYLE AND ’SUSTAINABILITY’ CONCERNED #FASHLEISURES

LEADS: MILLENNIAL WOMEN WHO ASPIRE TO WEAR STELLA MCCARTNEY #THESOCIALIST

OVERVIEW The proposal gives emphasis to target three customer segments or three athleisure style groups, as stated in consumer analysis (p.51) of which two of the segments are current Stella McCartney and respectively Adidas by Stella McCartney customers, while the analysis and qualitative adhoc research found opportunity to appeal to the thrid segment of leads, as they wishes to purchase the brand, but have not yet. LIFESTYLE DRIVERS This target audience place a premium value on the health and fitness lifestyle as wll as boutique gyms and wellbeing classes, as workout time becomes an essential luxury and central to their social lives. For that reason, they are skilled in transitional dressing; perfectly attired for all situations as they move from studio to street. LOOK & STYLE Casual looks that pairs formal items with informal pieces to create quirky juxtapositions, such as a large logo sweat with a chiffon skirt, sneakers and a puffer jacket. The target wears brands that balance performance, style and comfort and use premium knit fabrics containing tech cashmere, merino or alternative fibres to wool, to elevate basics sportswear to a luxurious look; a style that generally form the core of their wardrobe. Accessories are essential to this target audience and may be jewellery-like wearable trackers, smart watches, must-have water bottle, hats or yoga mats. It is all about the look and the labels, but in an indirect-batch-value setting, however, the target favors limited-edition pieces, premium brands and designer-collaborations. Sustainability is a plus.

6.3 MARKETING STRATEGIES 6.3.1. COMPETITIVE STRATEGY The competitive strategy will continously be executed through a product differentiation strategy based upon creating feminine, bold and stylish from-studioto-street product line to compliment further technical inner sportswear from the Adidas by Stella Mccartney collection. The differentiation strategy will additionally include an element of sustainability in order to align with the brand values and operational purpose. The competitive strategy will not interfere with the strategy and products of the brand collaboration with Adidas, due to change in product attributes. While the Adidas collaboration gives more emphasis to technical materials and performance, the proposed line StellaStudio focus on complementing these products with further style and fashion related attributes. The Stella McCartney brand has since its origin kept its product differentiation strategy, however, in recent years the brand has begun to move further towards a strategy of communication differentiation in order to increase and expand sustainable and ethical brand

STUDIO

values. Strong marketing emphasis is given to brand storytelling, emotional marketing and ethical ethos in tone of voice. This emotional context will be continued and become a supplement to an exclusive lifestyle orientation within the communication differentiation strategy in order to capture the target audience in a lifestyle specific and consumer-centric brand communication. Ad hereto, the importance to the point of sale and relating promotional events that will assist this competitive strategy. The general competitive strategy will have its main point of differentiation in communicating an exclusive (either current or aspirational) lifestyle concept relating to the customer segments keeping its market position of sustainable lifestyle luxury, while Adidas by Stella McCartney is positioned further in Accessible Luxury within the Luxury Segmentation Pyramid.

STUDIO

6.3.2. GROWTH STRATEGY BY MARKET

In line with expansion strategy stated in Appendix 2, Exhibit 5, it may be considered to stretch the following proposed marketing and communication plan beyond the west and move further into the Chinese market place and introduce a growth strategy of Market penetration. While the European market reaches saturation point, there still exist large potential markets in eastern regions and receptively in China, where a booming middle-class is shifting in purchasing preferences from luxury to lifestyle or a merging of the two (Exhibit 6, Appendix 2).

Brands within the highly technological developed Chinese market to really integrate the multi-social experience and improving shopping experiences using model O2O2 and omnichannel retail methods. The market of Greater China is expected to overtake the US as the largest fashion market in the world by 2019 and holds a large economy with strong internal consumption power (Amed, I. et.al., 2018)

For marketing purposes, it may additionally be considered to collaborate with Chinese influencer/KOL (Key Opinion Leader) Anny Fan, in line with the inSupporting quantitative data states that in 2015, creasing Chinese market trend for athleisure brands Chinaâ&#x20AC;&#x2122;s sportswear market grew to $25.3 billion and to collaborate with influencers or high-end designer is projected to grow double-digits every year to reach brands. $41.5 billion by 2020 (Figure 12) China and the rest of Asia-Pacific collectively accounted for more than half of the total Asia-Pacific activewear market in 2017.

Figure 12

Forecast market size for Sportswear in China (by 2020 market size will be $4.5 billions) Caffyn, G. (2016),

OVERVIEW Anny Fan is one of China’s best-known fashion bloggers, regularly attending global fashion weeks and collaborating with luxury brands. She has been running her blog Style On Top since 2013. One of China’s earliest and most established bloggers. Fan’s instructive commentary on how to adopt and style global fashion, social and environmental trends has made her a well-respected authority; most recently, she interviewed Kendall Jenner at an adidas event in Shanghai. LOCATION Shanghai and HongKong STYLE & KEY ITEMS Elegance meet downtown charm. Updated contemporary classics feauting graphic colour-blocking or patterns. FOLLOWING Weibo: 2.8m Instagram: 7.5t.

Images from WGSN (Zhang, 2018),

Images from WGSN (Authors of WGSN, 2018)

OVERVIEW The global skincare market is expected to reach $135bn by 2021 (Authors of WGSN, 2018) High growth level is seen in the APAC region that continiues to dominate the global skincare market, led by China, Japan and South Korea, and now with India entering as a key emerging market. SOCIOCULURAL SHIFTS Increased awareness and knowledge of skincare among consumers has led to the rise of single-ingredient products, pushing a market for skincare customisation. In line with sociocultural awareness regarding environmental pollution and animal cruelty, skincare additionally, meets these rising demands for anti-pollution skincare, zero-waste and cruelty-free products, that are expected to be top priorities for brands within the next years. TECHNOLOGY The rise of AI and gadgets looks to shake up traditional skincare regimes, making personalisation a key focus.

6.3.3. GROWTH STRATEGY BY PRODUCT DEVELOPMENT In line with Stella McCartneyâ&#x20AC;&#x2122;s ethical, sustainable and innovative brand operations, it may be considered to move into a further lifestyle concept by introducing a growth strategy of Diversification by ethical and sustainable skin care products designed for a circular economy in line with growing market demand. These products may either be sold exclusively in brand stores and on brand website, or be distributed under licensing agreements as perfumes. Additionally, none of the competitors has introduced similar products. The brand lifestyle orientation may furthermore be assisted through an app creation for Stella McCartney in order to push for a community site apart from social media and website. By including an exclusive brand application featuring m-commerce and the possibility of purchasing products in line with the website, the Stella McCartney brand will additionally ensure a move towards omnichannel distribution as stated in the brand expansion strategy (Exhibit 5, Appendix 2). The brand app will moreover be able to create customer community space in which the brand may provide lifestyle content, events and product usage guides, relating to the product offering such as AI fitness classes for activewear, personalised beauty guides and how-to content for skincare, styling recommendations for ready-to-wear and customer-stories relating to the environmental and social causes the brand support such as cancer.

Stamm, A. et al., (2016).

6.4. POSITIONING PROPOSAL Proposal positioning for STELLAPERFORMANCE is identified from the average numbers that interviewees ranked from the product attributes they find important for activewear. Adidas by Stella McCartney numbers are average numbers that the interviewees ranked the current collection.

6.5 KEY SUCCESS FACTORS TO LAUNCH PRODUCT OFFERING THAT ASSIST IN CREATING AN UNIQUE SELLING AND VALUE PROPOSITION THAT ENSURES A BRAND POSITIONING FOR ACTIVEWEAR OR ATHLEISURE TOWARDS FURTHER FEMININITY AND PRODUCT INFLUENCE FROM STELLA MCCARTNEY RATHER THAN ONLY DEFINED BY THE ADIDAS COLLABORATION. COMMUNITY CREATION, INCREASED CONVERSION RATE AND SITE TRAFFIC THROUGH IMPLEMENTATION OF SEAMLESS DIGITAL INTEGRATION IN-STORE AND OMNI-CHANNEL DISTRIBUTION INCLUDING APP DEVELOPMENT.

GENERAL PROFIT INCREASE TO MAKE UP FOR LOST PROFTS SINCE SPLIT WITH KERING GROUP IN 2018, WHIEL SIMULTANEOUSLY MAINTAINING BRAND IMAGE AND VALUES: INCLUDING SUSTAINABLE COMMITMENT, EXPERIENCE AND SOCIAL MARKETING, AS WELL AS PURPOSE AND VALUE DRIVEN MARKETING SUCH AS SUPPORT TO CHARITY AND SOCIAL OR ENVRIONMENTAL CAUSES.

6.6 MARKETING MIX

PRODUCT

The product strategy introduces a new product line of Stella McCartney, StellaStudio, in order to meet the consumer demand identified from the qualitative AdHoc research. The product line consists of stylish, feminine and colourful complementary items for inners and further tech-related activewear to provide millennial girls with premium transitional clothing that works from studio to street. Product categories for the StellaStudio collection include jackets, sets, bags, shoes and accessories. The size range varies from XXS - XL (international sizes), maintaining the size range from Adidas by Stella McCartney and Stella McCartney ready to wear. StellaStudio will be available in the pop-up store and at the event boutiques together with a selection of the Adidas collaboration and few Stella McCartney ready-to-wear items. All products are displayed per style and in some of the colour references/style, however, stock is kept low, as all POS purchases are made online in the POP-UP or at the studio boutiques. *Detailed collection structure for StellaStudio and selected products from Adidas by Stella McCartney collaboration in Merchandising plan.

PRODUCTS

STYLE

STUDIO

06% 06% 12% 35% 40%

ACCESSORIES SHOES

Leisurely and transitional pieces with feminine, elegant and comfortable silhouettes, with sporty and edgy details. Tailored or adujstable in detailing, combined with a volume wellbeing silhouette for transitional athleisure styling pre- and post-work out. A products that integrate luxurious lifestyle and spory references into a fashion statement for outspoken femininity in a sleek and sophisticated aesthetic.

BAGS SETS JACKETS

STUDIO PRODUCTS CLOTHING JACKETS • Maxi Waterproof • Long-Line Puffa • Exaggerated Puffa • Scarfed Puffa • Sport Utility Jacket • Sport Pullover • Kimono Bomber ACCESSORIES: • Versatile Silk Scarf • Preppy Bucket Hat • Comfort Water Bottle BAGS: • Soft Volume Bag • Giant Shopper • Packable Utility Bag • Camera Bag SHOES: • Amphibious Shoe • Athlux Hike Boot • Chunky Trainer

SETS Set Tops seperately: Set Bottoms seperately: • Fuzzy Tracksuit • Fuzzy Track Top • Fuzzy Trackpants • Utility Tracksuit • Utility Cropped Top • Utility Trackpants • Minimalist Tracksuit • Minimalist Jumper • Minimalist Trackpants • Harem Sport Jogger- • Harem Zip-through Jacket • Harem Jogger suit • New York Off-the-Shoul- • New York Ankle-Gra• New York Suit der Top zing Trouser • Skirt Set • Skirt Set Shirt • Skirt

*PRODUCT CATEGORIES FOR THE STELLASTUDIO COLLECTION ARE SEGMENTED ON THE FOLLOWING PAGES IN; PRODUCT HEROES (JACKETS) BESTSELLERS (SETS & ACCESSORIES) LEAST SOLD (BAGS & SHOES) *SEE FOLLOWING MERCHANDISING PLAN

PATTERNS

COLOURS

The collection is complimented with bold and feminie patterns often with flower print in a red, pastel or multi colour scheme as complentary items to further simple or modest coloured products such as the sets portrayed on previous page. The patterned outerwear products functions as a great item for creating a stylish and united outfit. The patterned items additionally come with the dotted logo as pattern.

P PRICE

The general price setting and price range reflect the market outlook and demand and supply (insights from AdHoc Research, stating a Lead willingness to purchase for around €300 and current consumer wants for further fashionable items) in comparison to the competitive landscape. Collection pricing is determined according to a Premium Pricing Strategy to reflect brand and collection exclusiveness. The strategy is additionally chosen due to high production costs in order to keep with the competitive strategy including sustainable and socially conscious operations. Ad hereto, the fact of a percentage of total profit given to supporting Women’s Cancer. The price range for StellaStudio is positioned in between the Adidas by Stella McCartney line and Stella McCartney Ready-To-Wear collection, in order to position the proposed line further fashionable and more brand-related than the Adidas collaboration featuring a high level of Adidas influence. *Further pricing strategy is showcased in the following chapter of Merchandising plan. The inclusion of the three lines within the POP-UP store and studio boutiques is chosen in order to provide consumers with a total Stella McCartney look that include technical inner activewear from a trustworthy partner, Adidas, fashionable and stylish outer garments combined with high-end luxury accessories pushing the brand image and lifestyle.

STUDIO PRICES FOR STELLASTUDIO PRODUCTS

General price range: Sets: €250 - €445 Set Tops: €195 - €350 Set Bottoms: €230 - €350 Accessories: €70 - €230 Bags: €150 - €230 Jackets: €350 - €570 Shoes: €250 - €450

PRODUCT FUNCTION General function: StellaStudio products functions as Star Performers, products of attraction, drivers and traffic builders for the proposal with main emphasis given to the POP-UP store. As Star Performers the StellaStudio line holds high profit and high sales and is therefore given quality space within the POS. For the studio boutiques at the event masterclasses, the products further functions as profit builders, as the main purpose of the masterclasses is to promote the new line and communicate a related brand lifestyle orientation. The product line consists of stylish, feminine and colourful complementary items for inners and further tech-related activewear to provide millennial girls with premium transitional clothing that works from studio to street.

PRICES FOR ADIDAS BY STELLA MCCARTNEY PRODUCTS INCLUDED IN THE POP-UP STORE

PRICES FOR STELLA MCCARTNEY PRODUCTS INCLUDED IN THE POP-UP STORE

General price range: €15 - €230

€22 - €995

Sport Bras: €60 - €80 Tops: €50 - €200 Bottoms: €55 - €150 Accessories: €15 - €230 Jumpsuits: €120 Shoes: €60 - €230 Swim: €70 - €80

Tops: €195 - €795 Bottoms: €445 - €995 Accessories: €50 - €695 Shoes: €250 - €595

PRODUCT FUNCTION General function:

A selection of the Adidas by Stella McCartney line is included within the POP-UP store and studio boutiques as Profit Builders with high profit margins, but lower sales than the StellaStudio collection, and is therefore also given quality space within the POS. Inexpensive products from this collection functions as traffic builders of Low profit margins & high sales.

A selection of the Stella McCartney Ready-ToWear collection functions as Space Wasters with low profit margins & low sales, and is included in order to assist and exclusive brand image, variety and visual strategy. Inexpensive products from this collection additionally functions as traffic builders of Low profit margins & high sales.

This line is furthermore included in order to push for purchases of full looks or activewear outfits and increased sales on the collection. The collection functions additionally as technical inner training garments for the fashionable product the consumer may have purchased from the StellaStudio collection. This line contributes with technical and innovative products in collaboration with a trustworthy partner, Adidas.

This product inclusion serves to bring the two collections together in a highly Stella McCartney and brand centric image.

DISTRIBUTION POP-UP STORE

2020 JAN

FEB

MAR

POP-UP OPENING 3RD JANUARY

MIDWAY FINALCIAL EVALUATION

LAST OPENING DAY MARCH 28TH

HIGH LEVEL OF PEDESTRIANS

DISTRIBUTION DESCRIPTION With regard to the market opportunities (p.66) and objectives (p.70), this paper proposes an opening of a Stella McCartney POP-UP store as point of distribution in line with the new product line StellaStudio, in Barcelona with a duration period of three months from January to March. Extended point of sales will additionally exist in movable collections connected to the promotional masterclass events located at local exclusive fitness clubs (description in Promotion p.98).

nial driven markets such as Barcelona. Research has furthermore found a significant market presence of the millennial target audience in the market of interest (Barcelona), accounting for 22,9% of the total local population and 20% of the total tourist flows (p. 4751). Thorough analysis and evaluation of internal and external factors have additionally stressed conformity between brand, industry and target behaviour and gives emphasis to a fast-paced lifestyle, digital value and POS experiences, why a POP-UP store is chosen A POP-UP store concept with a high level of digital as the retail format. integration offers a market-orientated omnichannel business model in order to meet the current consumer shifts and revolutionised state of consumption. This retail format, moreover allows Stella McCartney to *Distribution coverage will be further explained in extend customer- and brand reach along with increa- the following merchandising plan over distribution sed brand awareness in southern European and millen- and clusters.

Figure 9: POP-UP store location at Avenida Diagonal in Departmentstore El Corte InglĂŠs

POP-UP LOCATION: EL CORTE INGLES DIAGONAL Location is key to a successful POP-UP store, and for that reason, analysis of the commercial area of Avenida Diagonal was conducted in order to justify the chosen location for the proposed retail format (Exhibit 7, Appendix 2). The commercial area analysis found Diagonal to be a highly viable and commercially profitable axis in the commercial mix of Barcelona to which a constantly growing number of pedestrians is connected and in January and February 2019 pedestrian flows of Avenida Diagonal around El Corte Ingles increased 17.81% (Authors of TC Group Solutions, 2017, Tc-street.com). This increase in is testimony to a commercially and economically staple area for fashion distribution and the retail format will therefore be located in El Corte InglĂŠs.

TREADMILL

FITTING ROOMS RACKS

SHELVES

IR TR TU A AL IN R IN U G NN SC IN R G EE O N R

BACK WINDOW

SOFA

SPOTIFY MUSIC WALL

CUSTOMISATION AND PERSONAL ADVICE STATION

RACK & SHELFS

FULL SIDE WINDOW

REFRESHMENT TABLE

FOLDINGS

SIDE WINDOW

IMPULSE

BALL PIT

U EQ

M SHELVES

MANNEQUIN EXIT

RACKS

ENTRANCE

FRONT WINDOW FAST ROUTE - ’NO-PURCHASERS’ - ENTERTAINMENT, PHOTO OPPORTUNITIES & FREE REFRESHMENTS FULL ROUTE - ’PURCHASERS’ - ENTERTAINMENT, PRODUCTS, FREE REFRESHMENTS

SIDE WINDOW

RACK & SHELFS

’CASHIER’ & SERVICE STATION

Virtual running or training screen is implemented within the POP-UP store as a point of attraction and experience. The screen offers a possibility for store visitors to try collection pieces and briefly workout in a virtual environment that works with hyper-localisation as the user is able to choose personal point of preference in local surroundings of Barcelona ((Maggioni, S., Muston, F., and Morgan-Petro S., 2019). This technical inclusion assist Stella McCartney in standing out from generic global retail by connecting brand products to local experiences. Figure:13 Lui, H., (2017). ©Nike.

A square layout has been chosen for the space management (See following planogram). This layout creates a gathered environment in which all products and services are visibly displayed and cross-merchandised to push for a lifestyle-orientated approach. Product categories will additionally be mixed and paired in looks and outfits displayed through shelving, racks and folding. The floor plan is for the same reason mixed, yet with straight preferences in order to maintain clean lines and easy store overview. This type of mixed floor plan helps to draw attention to special-focus areas such as the Music Wall in collaboration with Spotify, Ball Pit, Virtual Training or Running Screen, Brand Aliveness VR glasses, or the Refreshment Station (further explanation of interactive areas on the following pages). With mainly straight structures, the layout guides the consumer through the entire store, creating a majority of hot-zones with a high level of circulation and interaction. The layout strategy moreover includes small floor fixtures located around the store where customers can get help with their purchases or customisation. The POP-UP space additionally functions as a showroom-concept, from where customers digitally can evaluate products, save them on the brand app wishlists shared with social media or directly place an order and receive the products at the location and time of preference. This omnichannel distribution and customer opportunity to evaluate products digitally in the brick & mortar store, will help leveraging existing e-commerce sales data to inform in-store assortment that correlate with local preferences such as ’Barcelona favourites’ or relating to the specific fitness club such as ’SOHO House Favourites’ around the world where the POPUP store and studio boutiques are located. StellaStudio will be available in the pop-up store and at the event boutiques together with a selection of the Adidas collaboration and few Stella McCartney ready-to-wear items. All products are displayed per style and in some of the colour references/style, however stock is kept low, as all POS purchases are made online in the POP-UP or at the studio boutiques. A digital Music Wall in collaboration with Spotify, is moreover implemented within the internal space on which visitors can customise, co-curate and subscribe to the ideal StellaStudio playlists. This action will assist the lifestyle orientation and creation of brand community. Figure 14: Music Wall. © Image by Killian Loddo. (Authors of Storefront. 2017.Storefront.com)

INTERIOR DESIGN

The interior design generally seeks to fuel the shift to make brand communication more visual and shareable as for why it is created highly experience and instagram-related. Additionally, it reflects the communicative purpose of stressing Stella McCartney active or performance wear as further feminine, colourful and stylish. This is helped by appying the pink colour and dots to the internal and external store layout and design. The dots are used extensively as it has become a key brand signifier whether printed or digital and is moreover highly elevated in previous the brand collaborations with Adidas. The pink colour is chosen in order to connect the launch with the brand commitment to charity for womens cancer. The interior pop-up store design holds verious interactive and technological elements including omni-channel ordering â&#x20AC;&#x2122;Click Now, Wear Tomorrowâ&#x20AC;&#x2122;, Virtual Reality glasses for showing the aliveness of the brand, as the dots will move according to the wearer. The store additionally include a ball pit for visitors to enjoy and share online. The interior design will moreover feature the campaign hashtag #StellaStudio and #StellaLife.

EXTERIOR DESIGN

The exterior design of the pop-uo store takes main inspiration from the Merci Paris pop-up store from february 2018, created as an transparent iglo in pink and pastel colours. However, in accordance with the previous planogram, the transparent outer will be in retangular from. The transparent exterior design is chosen in order to elevate the brand as a transparent brand and in order to see the easily communicate the brand as a symbol as for the interior. The transparent outer of the store will be lit up with projection lights of round dots in pink in order to continue the aliveness of the dots (brand symbol) and brand in general to which the campaign hashtag #StellaStudio and #StellaLife additionally will be displayed. The exterior of the pop-up store will moreover feature a dj stand in collaboration with spotify in line with the internal music wall.

VIRTUAL REALITY MOVEMENT Aliveness of the dots and brand symbol.

#StellaStudio

STUDIO

#StellaLife 97

PROMOTION EVENTS: EXCLUSIVE GYM MASTERCLASSES Main promotional activities will exist in exclusive gym masterclassses reflecting the lifestyle of the target audience, which will be located at three exclusive fitness, wellness and social clubs in Barcelona (Arsenal, Metropolitan (Iradier), Soho House) will be for members/invite only. These masterclasses will be hosted by instructors from brand country of origin, United Kingdom, personally selected by Stella McCartney. Event actions points include masterclasses matching the utility for the Adidas by Stella McCartney collection: yoga, pilates, running, training, tennis to which small studio boutiques are made available for the masterclass participant to digitally purchase from the StellaStudio collection as well as a selection of the Adidas by Stella McCartney and few exclusive pieces from the Stella McCartney ReadyTo-wear collection. In order to extend the lifestyle orientation and brand values to the event, participants are provided with an organic and vegan food truck serving healthy and nutritious food personally selected by Stella McCartney, as her own favourites, in line with her personal life as a lifetime vegetarian. In order to elevate the purpose driven marketing from the POP-UP store, the event additionally functions as part-charity event with focus on womenâ&#x20AC;&#x2122;s cancer underlined by the pink colour in which the clear brand identity likewise will be stressed by the continuation of dots, as brand symbol and campaign hashtag #StellaStudio and #StellaLife. *A collection campaign will be shot prior to the launch, POP-UP store and masterclasses.

DIGITAL CAMPAIGN COVERAGE SHARED MASTERCLASS CONTENT ON INSTAGRAM

As offline campaign content, digital content will feature the campaign hashtag #StellaStudio and #StellaLife in order to communicate, share and spread brand lifestyle orientation and create brand community.

100

101

BRAND STORY TELLING

ETHICAL ETHOS INFORMAL CLOSE-TO-HEART ATTITUDE The ethical ethos of Stella McCartney should continiue an informal close-to-heart and relatable millennial attitude, which situates the sustainable fashion products in an inclusive and emotional sense that communicates the core values of a “real-friend”, including trust, honesty and transparency.

ENCOURAGEMENT & EMPOWERMENT The tone of voice establishes a peer-to-peer connection between the brand and the consumer, it encourages a celebration of feminine, stylish and responsible consumption.

PERSONALITY Additionally, the brand leaves the customers room for self-expression, as the products come to carry a ‘personality’, a stance or a message and becomes the signifier of how the customer wants to be conveyed by its surroundings. This is additionally pushed by the personal selected food variations and instructors for the event masterclasses.

AUTHENTICITY This highly personal and relatable representation of a luxury brand such as Stella McCartney, builds a safe and reliable nature around the brand, in which McCartney becomes the customers friend. It opens up an honest information stream, which enables and pushes the brand authenticity.

TRUSTWORTHINESS/TRANSPARENCY This highly personal and relatable representation of a luxury brand such as Stella McCartney, builds a safe and reliable nature around the brand, in which McCartney becomes the customers friend. It opens up an honest information stream, which enables and pushes the brand authenticity.

102

BRAND AMBASSADORS

2. GARBINE MUGURUZA OVERVIEW 25-year old Spanish tennis player Garbiñe Muguruza. WHY As well as being a strong player in Tennis and for the Spanish and Hispanic communicty, she also has a femininity, which is important to a certain type of sponsor. Local influence.

3. KARLIE KOSS OVERVIEW 26-year old Fitness-focused supermodel and entrepreneur Karlie Kloss. WHY? Used own platform to inspire positive change in the world’s second-most polluting industry, fashion, by modeling vegan designer Stella McCartney’s most environmentally-friendly collection to date (Murray-Rag, 2018). Global influence.

1. CARMEN JORDÁ

OVERVIEW 28-year old Spanish F1 development driver for the Renault F1 team, Carmen Jordá, has been announced as the face of Adidas by Stella McCartney, joining Karlie Kloss and Caroline Wozniacki as part of the label’s team since 2016. WHY? ’Local’ face. Jordá undergoes vigorous training in various disciplines, including weight training and yoga, making her a good fit for a brand that champions and encourages women who embrace a variety of workouts. (Santamaria, 2016). Local influence. ”(Jordá) I work in a very male-dominated industry, so I constantly have to prove I deserve to be where I am. This creates a unique environment, but I push myself everyday to improve and bring myself closer to achieving my dreams,” “It’s been 10 years since we introduced the concept of stylish, technology-led sportswear, back when no one thought it was possible to combine the two. Since then, we’ve gone from strength-to-strength and Carmen epitomises that journey,”, Stella McCartney 2016. 103

AID

MAIN ACTION POINT: EVENT AND INFLUENCER MARKETING Paid media highly exists in influencer marketing and social media ads. These two actions respectively include sponsored content and paid collaborations (here included invited influencers for events), as well as paid multi-photo carousel ads, video ads single image ads. All actions will be in format for mobile preferences, as mobile advertising now drives over half of all campaign conversions on Facebook, Instagram and YouTube (70%) according to Facebook IQ (Facebook IQ, 2017).

WNED

MAIN ACTION POINT:

CREATION OF BRAND APP (OMNI-CHANNEL DISTRIBUTION & LIFESTYLE ORIENTATION) General continiuation of the extensive brand presence on social media that is instrumental in engaging with current clients and potential leads, Millennials in particular, allowing them to stay strongly connected with the online Stellaâ&#x20AC;&#x2122;s world aligned with the offline brand environment. The owned media will maintain the large coverage and control the information stream that flourishes around the brand and give high importance to the coupling with the earned and especially the shared media, broadening the reach in a further consumer-centric and relateable manners.

104

From a media- and cost efficiency standpoint, these platforms are chosen as they foremost provide Lidl with crucial and inexpensive methods to campaign and customer insights that can yield higher business results and more accurate targeting.

ARNED

MAIN ACTION POINT: SOCIAL AND SHAREABLE MARKETING (POP-UP & MASTERCLASSES ACTIVITIES) The earned media will continuously be co-creation and collaborative content generated as a response toor influenced by the campaign hashtag #StellaStudio and #StellaLife showcased throughout the online and offline advertising. Nevertheless, the strategy pushes for diverse content freely generated by the consumers (prosumers) across the different mediums, to give awareness to the new line and way of distribution of Stella McCartney, separating the brand from the general competitive market.

#STELLASTUDIO #STELLALIFE

HARED

MAIN ACTION POINT: SOCIAL AND SHAREABLE MARKETING (POP-UP & MASTERCLASSES ACTIVITIES) The shared media plays a highly important role for the media strategy, as the target audience highly rely on trusted social opinions and collectively shared content. For that reason, the shared media assist in spreading the Word Of Mouth (WOM), dialogue and awareness around the campaign. The shared media strategy moreover highly depends on the campaign hashtag #StellaStudio and #StellaLife, in order to create collaborative and relatable content for the collectively influenced customer base.

#STELLASTUDIO #STELLALIFE 105

5.3 LAUNCH PLANNING

2020 MAY

TRADE SHOWS

JULI

SEPTEMBER INITIATE COLLABORATION WITH BRAND PARTNERS

COMMERCIAL AREA ANALYSIS AND SELECTION OF POS LOCATIONS

CONTINIOUS DEVELOPMENT OF COLLABORATION WITH BRAND PARTNERS:

ASSORTMENT PRODUCTION

DISTRIBUTION & PROMOTION STRATEGY PRODUCT AND SERVICE DEVELOPMENT.

SPOTIFY FITNESS CLUBS BRAND AMBASSADORS

CAMPAIGN AND OTHER PROMOTIONAL PLANNING

PRODUCT & PRICE STRATEGY

INITIATE COLLABORATION WITH BRAND PARTNERS: SPOTIFY FITNESS CLUBS BRAND AMBASSADORS

ASSORTMENT PRODUCTION

SAMPLE DEVELOPMENT

ASSORTMENT PRODUCTION

JUNI

106

OCEAN FREIGHT

AUGUST

OCTOBER

NOVEMBER

LAUNCH OF CAMAPIGN AND CO-MARKETING AND COMMUNICATION ACTIONS.

JANUARY

MARCH AT MARKET:

CAMPAIGN EVALUATION

MIDWAY FINALCIAL EVALUATION

KPI, BUDGET AND SUSTAINABILITY EVALUATION

STORE CONSTRUCTION.

RELAUNCHING PLANNING & CONCEPT EXPANSION

ASSORTMENT DELIVERY TO POS. BUDGET, KPI AND SUSTAINABILITY EVALUATION CLOSE POSâ&#x20AC;&#x2122;s NEGOTIATIONS ASSORTMENT DELIVERY TO FULLFILLMENTN CENTER

DECEMBER

AT MARKET:

POP-UP OPENING 3RD JANUARY

LAST OPENING DAY MARCH 28TH

FEBRUARY

APRIL

2021 107

108

POP-UP

DISTRIBUTION POS (STUDIO BOUTIQUES INCLUDED IN THE NUMBERS) EVALUATION TOOLS/KPIâ&#x20AC;&#x2122;S

PROFIT - SALES BOOST, SELL RATIO AVERAGE DAILY SALES AND UNITS PER TRANSACTION (ADS/UTP INDICATORS), SALES PER SQUARE FOOT, AVERAGE PROFIT PER TRANSACTION, RETURN ON INVESTMENT (ROI)

CONVERSION RATE, LEAD GENERATION TRAFFIC SOURCES; FOOTFALL, SOCIAL SHARES, APP DOWNLOAD

02 ESTIMATED COSTS

01 ACTION POINTS COMMERCIAL AREA ANALYSIS

LOCATION SELECTION & CONTRACTS

CONSTRCUTION OF POP-UP

INTERIOR DESIGN AND TECHNICAL IMPLEMENTATION

STORE STOCK ALLOCATION

EVALUATION

03 TEAMS DEPARTMENTS

The executive control Stella McCartney Ltd

MARKETING

COMMUNICATION

MERCHANDISING

FINANCE

109

DIGITAL DIGITAL MARKETING

EVALUATION TOOLS/KPIâ&#x20AC;&#x2122;S

01 ACTION POINTS SOCIAL MEDIA PLANNING

SOCIAL MEDIA ADS

INFLUENCER/ BRAND AMBASSADOR CONTENT CREATION

VIDEO CONTENT CREATION FROM POP-UP AND EVENT

CAMPAIGN & LOOKBOOK SHOOTING

EVALUATION

PROFIT - SALES BOOST , NET OPERATING MARGIN (NOM), RETURN ON INVESTMENT (ROI)

CONVERSION RATE, LEAD GENERATION TRAFFIC SOURCES; CLICK-THROUGH RATE, SOCIAL SHARES, BOUNCE RATE , MEDIA FEATURES, ENGAGEMENT RATE, APP DOWNLOAD

ESTIMATED COSTS

03 TEAMS DEPARTMENTS

The executive control Stella McCartney Ltd

MARKETING

COMMUNICATION

MERCHANDISING

FINANCE

110

EVENT FITNESS CLUBS MASTERCLASSES

EVALUATION TOOLS/KPIâ&#x20AC;&#x2122;S

01 ACTION POINTS EVENT PLANNING

INSTRUCTOR SELECTION & CONTRACTS

LOCATION SCOUTING & CONTRACTS

STUDIO BOUTIQUE COLLECTION

FOODTRUCK AND SERVINGS

MASTERCLASSES & EVALUATION

PROFIT - SALES BOOST, AVERAGE PROFIT PER TRANSACTION, RETURN ON INVESTMENT (ROI)

CONVERSION RATE, LEAD GENERATION TRAFFIC SOURCES; SOCIAL SHARES, APP DOWNLOAD

02 ESTIMATED COSTS

03 TEAMS DEPARTMENTS

The executive control Stella McCartney Ltd

MARKETING

COMMUNICATION

MERCHANDISING

FINANCE

111

MERCH

Â© StellaMcCartney.com

112

HANDISING MERCHANDISING PLANNING & COLLECTION STRATEGY

Market opportunity and brand development 113

FOR BRAND RELEVANCE SEE INTRODUCTION, METHODOLOGY AND SWOT P. 66 & 121.

114

STUDIO

115

- VII.1 BRAND ANALYSIS 7.1 STORE ANALYSIS OF BARCELONA POS Stella McCartney store on Passeig de Gracia in Barcelona, Spain. Below is a summary of the store appearance. (Andreasen, et al., 2018 p.33)

As far as communication, there was limited storytelling that the brand reflected through the store arrangements and decor. The only digital element was a screen positioned in the mirror next to the changing rooms, which streamed the Stella McCartney runway show.

Located on the street corner (adressed on Passeig de Gracia but is not noticable unless attention is payed)

The store logo is illuminated and shown on all angles of the location on gold and silver backgrounds

The store was empty as far as customers go, with only one visitor entering the store throughout the whole time our group was there.

The garments were displayed on racks, with 1 item of each variety and size being hung up at a time, which made the appearance of the store come out crowded, even considering the limited room the space provides. Additionally, this particular store only carries the women’s selection.

The shop windows are open, therefore the contents of the store can bee seen from the outside and there are no mannequins positioned behind the glass.

The music was light and soothing, quiet and unnoticeable until attention is payed directly to it.

The store itself was average in size. It is based on the ground floor, with a combination of ceiling and floor-standing lights, and some accents of specific pieces and areas of consisting of specific colour palettes, usually identified with the brand - light pink, grey, light blue, white, as well as gold, blue and red accents.

116

Upon the entrance, there is a doorman and an assistant who invite you in and hold the door.

The scent of the store is barely noticeable and is a light perfume smell mixed with the smell of “clean clothes”, usually achieved by cotton scented candles or smell dispensers.

Stella McCartney store on Passeig de Gracia in Barcelona, Spain shop observation (Andreasen, et al., 2018 pp 31-32)

Store entrance with open window displays

Cashiers desk in the store corner

Scaner code for the online app

Swimwear and footwear section

Store back

A magazine featuring Stella McCartney on the front cover

Changing rooms at the store back

Plastin geometric decor pieces in the changing rooms

Digital display in the mirror of the changing rooms

Store front

Neon lamps in the display

Examples of garment display

Stella McCartney x Stan Smith collabo-

Stells McCartney x Adidas collabortaion

Accessories section

Bags display example

117

118

Stella McCartney store London Old Bond Street (StellaMcCartney.com, 2019)

119

7.1.1 NUMBER OF STORES (DISTRIBUTION CHART)

120

7.1.2 STORE SWOT ANALYSIS

STRENGHTS

W WEAKNESSES

O T

S. The major aim for the stores is to capture nature based and at the same time modern approach of the brand, all based around each customer’s personal experience - this is a benefit from the communication perspective, since it is generating customer returns and loyalty and keeping a consistent brand image. S. Some of the stores including flagships are highly invested into from the prism of customer experience and digitalisation of the retail space (e.g. the Manhattan flagship store) W. Brand inconsistency in stores. Significant store difference in Barcelona from other Stella McCartney stores globally.

S. Some stores (e.g. London’s Bond street flagship) explore the use of multi-sensory installations and constructions to provide an artistic, graphic, and sound based journeys for the visitors, making the shopping experiences more diverse and extended. This also helps to bring emotion into the experience, linking to storytelling and jenerating connectivity with the customers.

W. Lack of distribution experience in-store.

W. Lacking omni-channel distribution and intelligent tech adoption in-stores, despite omni-channel distrbution being brand priority post split with Kering.

O. Digital integration in-store and move towards omni-channel. O. POS standardization in order to provide a consistent customer experience and maintain the brand’s strong image.

OPPORTUNITIES

T. Some stores are more representative than others in the reflection of the brand’s true identity. This can cause inconsistent shopping experience in different store and therefore misunderstanding the brand’s true intentions.

T. The split of the brand from the Kering Group may mean a temporary limitation in fiscal resources used to invest into the physical stores. If the brand doesn’t manage to adjust to the changes efficiently the quality of the experience in the stores may suffer.

THREATS

121

2.1.2 STORE CLUSTERS

pop-up store

CLUSTERS Initially, the proposal treats two clusters in Barcelona, the POP-UP store at El Corte Ingles and the Studio Boutiques located at the event locations. A proposal limitation exist in the proposal only treating the launch location, however, the concept is thought to be expanded through growth strategy (See pp. 76-79) and to be launch in brand markets of interest and as well distributed through on Stella McCartney stores, website and multibrand point of sales. *In depth explanation and planogram of POS (pp. 88-96)

122

STUDIO BOUTIQUES

123

- VII.2 COLLECTION STRATEGY 7.2.1 COLLECTION DEVELOPMENT & ACTION PLAN. In line with key customer and lead findings and insights, the collection StellaStudio is proposed as an extension of both the Stella McCartney product assortment that regard activewear or athleisure and the brand collaboration with Adidas. The product line StellaStudio is proposed in order to meet the consumer demand identified from qualitative AdHoc research, stressing a need for further fashionable items to complement the highly technical and performance related sportswear in collaboration with Adidas. The product line consists of stylish, feminine and colourful complementary items for inners and further tech-related activewear to provide millennial women with premium transitional clothing that works from studio to street. The product line actively assists Stella McCartney in targeting millennials in the era of fitness, wellness and purpose-driven lifestyle (brand point of purpose; Sustainability, Ethical sourcing, Social consciousness and Charity). A concept that seamlessly aligns with the brand expansion strategy that gives emphasis to strengthening Stella McCartneyâ&#x20AC;&#x2122;s product offering, by advancing its retail operations to pursue its selective retail expansion and consolidate its omnichannel approach to further increase the proximity of the brand to its millennial clients. StellaStudio will be available in the pop-up store and at the event boutiques together with a selection of the Adidas collaboration and few Stella McCartney ready-to-wear items.

124

3.1.2 COLLECTION LINES AND STYLES FOR STELLASTUDIO COLLECTION

STUDIO PRODUCTS CLOTHING JACKETS (7 SKU’S) • Maxi Waterproof • Long-Line Puffa • Exaggerated Puffa • Scarfed Puffa • Sport Utility Jacket • Sport Pullover • Kimono Bomber ACCESSORIES: (3 SKU’s) • Versatile Silk Scarf • Preppy Bucket Hat • Comfort Water Bottle BAGS: (4 SKU’s) • Soft Volume Bag • Giant Shopper • Packable Utility Bag • Camera Bag

SETS (6 SKU’S) Set Tops seperately: (6 SKU’s) Set Bottoms seperately: (6 • Fuzzy Tracksuit • Fuzzy Track Top SKU’s) • Utility Tracksuit • Utility Cropped Top • Fuzzy Trackpants • Minimalist Tracksuit • Minimalist Jumper • Utility Trackpants • Harem Sport Jogger- • Harem Zip-through Jacket • Minimalist Trackpants suit • New York Off-the-Shoul- • Harem Jogger • New York Suit der Top • New York Ankle-Gra• Skirt Set • Skirt Set Shirt zing Trouser • Skirt

**PRODUCT CATEGORIES FOR THE STELLASTUDIO COLLECTION ARE SEGMENTED ON THE FOLLOWING PAGES IN; PRODUCT HEROES (JACKETS) BESTSELLERS (SETS & ACCESSORIES) LEAST SOLD (BAGS & SHOES)

SHOES:(3 SKU’s) • Amphibious Shoe • Athlux Hike Boot • Chunky Trainer

125

PRODUCT HEROES: JACKETS

126

- SAKS POTTS -

- TORY BURCH -

- ANTEPRIMA -

- H2OFAGERHOLT -

STUDIO

- VALEN

The proposed product categorizaion suggest ’Jackets’ as the Hero category that assist in positioning the new line, StellaStudio among market competitors as a highly fashionable complmentary line to the Adidas by Stella McCartney activewear collaboration. The design direction for the jackets will include sporty elements through materials, while keeping with a relaxed, functional styling and explore ‘leisurely’ dressing with a luxurious yet contemporary edge. SILHOUETTE Stylish, yet functional. The athluxe jackets combats both the elements and the city commute from studio to street in most fashionable ways. Generally oversize silhouettes, however, with feminine details and adjustments for further body or waist hugging shapes. DETAIL & STYLLING Patterned or printed leisurely and transitional pieces that are tailored or adujstable in detailing, combined with a volume wellbeing silhouette for transitional athleisure styling pre- and post-work out. A products that integrate luxurious lifestyle and spory references within oversized layers. Details will transform the puffa style into a fashion statement for outspoken femininity, cut in oversized florals, patterns or prints. FABRICATION Mainly use of recycled or sustainable synthetic waterproof mateirlas (wovens, coated cottons, nylon, polyester, polyamide and elastane for lightness and performance.) Some jackets may include embroidery. PERFORMANCE Stylish comfort is priority. USAGE Everyday use, commuting, outdoors, travel and post-workout recovery.

NTINO -

127

BESTESELLERS: SETS & ACCESSORIES

- SPORTMAX -

- JALOUSE -

128

- ALESSANDRA RICH -

STUDIO SILHOUETTE Minimal silhouettes and sleek aesthetic styled in co-ord sets. DETAIL & STYLLING Fashion and sport merge for the optimum athleisure silhouette: The track jacket and pant are elevated with sartorial tailoring. FABRICATION Recycled or sustainable cotton with a brushed back texture for winter warmth, lightweight polyester and tencel blends for breathability and a smooth finish, elastane creates freedom of movement. PERFORMANCE Stylish comfort is priority. USAGE Ideal as a pre or post-workout throw on, athleisure and athluxe. Ideal for all-day active, the style is flexible enough for light stretching and days out hiking, whether urban or rural. ideal for gentle yoga and post-workout cool downs. The style transitions into athleisure

New York Suit

129

LEAST SOLD: BAGS & SHOES

STUDIO

- OFF WHITE-

- MAJE -

- HERE U-

- PARIS -

- VICT

- MARC JACOBS -

130

- OFF WHITE-

- GAN

SILHOUETTE Sophisticated volume, silhouettes with a soft and full appearance. Bags: Emphasis given to padded volume and casualness. Smooth wadded surfaces ensures a modern feel. Footwear: Silhouettes with a soft and full look combined with a soft protective aesthetic. Heeled silhouettes dominate and showcases the shift towards a more feminine way of dressing. DETAIL & STYLLING Bags: Emphasis given to padded volume and casualness. Smooth wadded surfaces ensures a modern feel. Refined details and sophisticated luxurious materials adds newness to the projects. With its associations with home comfort, quilting will remain key for soft accessories - DIOR -

Footwear: Simple elegance, purity and neutral appeal in reinvented active feel, featuring feminine bright and sporty materials and colours. FABRICATION & PERFORMANCE Bags: Emphasis given to padded volume and casualness. Smooth wadded surfaces ensures a modern feel. Footwear: Linen, in its organic state and contrast trims to highlight their honest simplicity. USAGE Bags: Casual and formal. Ideal as a pre or post-workout throw on, athleisure and athluxe. Ideal for all-day active Footwear: Casual footwear. Ideal as a pre or post-workout throw on, athleisure and athluxe. Ideal for all-day active

TORIA -

Athlux Hike Boot

NNI -

131

7.2.3 COLLECTION AND ASSORTMENT FUNCTION IN POS (FROM MARKETING MIX)

STUDIO

STAR PERFORMERS, ATTRACTION, DRIVERS & TRAFFIC BUILDERS

PROFIT & TRAFFIC BUILDERS

SPACE WASTERS & TRAFFIC BUILDERS

StellaStudio products functions as Star Performers, products of attraction, drivers and traffic builders for the proposal with main emphasis given to the POP-UP store. As Star Performers the StellaStudio line holds high profit and high sales and is therefore given quality space within the POS.

A selection of the Stella McCartney Ready-To-Wear collection functions as Space Wasters with low profit margins & low sales, and is included in order to assist and exclusive brand image, variety and visual strategy. Inexpensive products from this collection additionally functions as traffic builders of Low profit margins & high sales.

For the studio boutiques at the event masterclasses, the products further functions as profit builders, as the main purpose of the masterclasses is to promote the new line and communicate a related brand lifestyle orientation. The product line consists of stylish, feminine and colourful complementary items for inners and further tech-related activewear to provide millennial girls with premium transitional clothing that works from studio to street.

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This product inclusion serves to bring the two collections together in a highly Stella McCartney and brand centric image.

POP-UP COLLECTION AND ASSORTMENT ORGANIZATION

V IR TR TU A AL IN R IN U G NN SC IN R G EE O N R

BACK WINDOW

TREADMILL

FITTING ROOMS

RACKS

SHELVES

studio

SOFA

FOLDINGS studio

CUSTOMISATION AND PERSONAL ADVICE STATION SPOTIFY MUSIC WALL

FULL SIDE WINDOW

REFRESHMENT TABLE

SIDE WINDOW

IMPULSE

RACK & SHELFS

studio

BALL PIT

IMPULSE

’CASHIER’ & SERVICE STATION studio

U EQ

SIDE WINDOW

RACK & SHELFS

studio

SHELVES

RACKS EXIT

ENTRANCE

MANNEQUIN

FRONT WINDOW

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7.2.4 TARGET STRATEGY (FROM MARKETING CHAPTER)

#THESOCIALIST, #ATH-LUXERS & #FASHLEISURES CURRENT CONSUMER: THE STYLE AND FASHION CONCERNED #ATH-LUXERS

CURRENT STELLA CONSUMER: THE STYLE AND ’SUSTAINABILITY’ CONCERNED #FASHLEISURES

LEADS: MILLENNIAL WOMEN WHO ASPIRE TO WEAR STELLA MCCARTNEY #THESOCIALIST

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7.2.5 STOCK ALLOCATION CHART COLLECTIONS: STELLA STUDIO (SKU’s: 29) ADIDAS BY STELLA MCCARTNEY (SKU’S: 30) STELLA MCCARTNEY READY-TO-WEAR (SKU’s: 21) SIZES: The size range varies from XXS - XL (international sizes), maintaining the size range from Adidas by Stella McCartney and Stella McCartey reday to wear. STOCK: Customers purchase online in-store, so large stock is not required. POP-UP store: Large selection: 727 units in total for the 3 month duration period Stock for the POP-up store include the total number of 51 SKU’s. The POP-UP assortment inlude each product in all sizes from XXS - XL and in all colours or patterns offered for the specific product in order to provide customers with the possibility of trying the product in own size and colour/pattern of preference. Studio: Smaller selection: 97 units in total for the 3 month duration period. Stock for the studio boutiques will remain the same for the three masterclasses, as it is purchased digitally as well on the brand app.however, stock may slightly differ according to product evaluation during the masterclasses. nevertheless, the product assortment for the studio boutiques is reused for the different events.

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7.2.6 DELIVERY CHART

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Â© Saks Potts

7.3 PRICING STRATEGY *Initial pricing strategy in Marketing Mix proposal pp. 86-87. Collection pricing is determined according to a Premium Pricing Strategy to reflect brand and collection exclusiveness. The strategy is additionally chosen due to high production costs in order to keep with the competitive strategy including sustainable and socially conscious operations. Ad hereto, the fact of a percentage of total profit given to supporting the Charity cause, Womens Cancer. The price range for StellaStudio is positioned in between the Adidas by Stella McCartney line and Stella McCartney Ready-To-Wear collection, in order to position the porposed line further fashionable and more brand related than the Adidas collaboration featuring a high level of Adidas influence. RETAIL PRICE PER LINE

STUDIO PRICES FOR STELLASTUDIO PRODUCTS

PRICES FOR ADIDAS BY STELLA MCCARTNEY PRODUCTS INCLUDED IN THE POP-UP STORE

PRICES FOR STELLA MCCARTNEY PRODUCTS INCLUDED IN THE POP-UP STORE

General price range: €150 - €570

General price range: €15 - €230

General price range: €22 - €995

Sets: €250 - €445 Set Tops: €195 - €350 Set Bottoms: €230 - €350 Accessories: €70 - €230 Bags: €150 - €230 Jackets: €350 - €570 Shoes: €250 - €450

Sport Bras: €60 - €80 Tops: €50 - €200 Bottoms: €55 - €150 Accessories: €15 - €230 Jumpsuits: €120 Shoes: €60 - €230 Swim: €70 - €80

Tops: €195 - €795 Bottoms: €445 - €995 Accessories: €50 - €695 Shoes: €250 - €595

COST PER LINE The collection cost per line (and cost per product) is high due to a conscious, environmental and socially sustainable sourcing and production. All these elements additionally, justifies a higher markup. Cost per line or product will on average account for 30% of a product for the StellaStudio collection.

*Execution of the pricing strategy is showcased in following financial evaluation and budget.

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MARK UP STRATEGY PER LINE The markup startegy is mainly based upon the cost per line and product, however it is additionally driven by a market positioning wihtin the luxury industry that at some level is related to the idea of dream, aspirations and desireability as well as considering the profit percentage given to charity and the price strategy therefore leads to high margins. In order to justify the strategic markup for the proposed collection StellaStudio, a comparion is conducted of traditional luxury retailers (Stella McCartney included) and the radically transparent and ethical mid-market retailer Everlane. Based on two product similar to the ones included within the proposed StellaStudio collection (Day Tote Bag & and Element Batteling Jacket), the comparison shows that while Everlane mark their products 2-3x the costs, traditional retailers including Stella McCartney tend to mark their products up to 5-6x the costs (See below figures).

Everlane.com

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Based upon the comparison, the general markup startegy for StellaStudio will positioned in between the two approahces, and will execute markups of 3 - 4x the costs in order to meet the growing consumer demand for brand transparency throughout operational structures and maintain flexible monetary margin after costs and charity support. The complementary lines, Adidas by Stella McCartney and Stella McCartney Ready-To-Wear will respectively be given markups of 2.5 - 3x and 5 - 6x.

STUDIO MARKUP: 3 - 4x

MARKUP: 2.5 - 3x

MARKUP: 2.5 - 6x

General comment on why markups and margins are kept relatively high: The luxury sector owns the highest growth margin of all industries and evidentially luxury comapanies and brands show more financial interest in creating customer and brand value rather than direct cost reduction. From a sustainable development opinion, the fashion industry and especially luxury market must be considered a way of destroying collective natural capital (natural resources). Nevertheless, Luxury players such as Stella McCartney, have the margin and mandate to create the most environmentally responsible products and other luxury brands has recently begun moving towards further sustainable adoption. (Authors of Deloitte. (2018). â&#x20AC;&#x153;Global Powers of Luxury Goods 2018â&#x20AC;?). MARK DOWN STRATEGY PER LINE (SALES & DISCOUNTS) The general markdown startegy for StellaStudio will execute a markdown of discounts of 25% (occassions) - 40% (sales period or before seasonal collection rotation) The complementary lines, Adidas by Stella McCartney and Stella McCartney Ready-To-Wear will respectively be given markdowns of (20%-30%) and (30-60%). Markdowns are lower for the Adidas by Stella McCartney due to lower margin than the Stella McCartney Ready-To-Wear

STUDIO MARKDOWN: 25% - 40%

MARKDOWN: 20% - 30%

MARKDOWN: 30% - 60%

*Execution of the pricing strategy is showcased in following financial evaluation and budget.

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BUDGET

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7.4 BUDGET

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7.5 SALES FORECAST AND SALES ANALYSIS

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STUDIO

COLLETION BOOK COLLECTION INSPIRATION, SILHOUETTES, MATERIALS & COLOURS

Â© Saks Potts

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INSPIRATION The product inspiration comes from the very brand core, the dot, as a brand symbol, as well as social causes such as cancer. The pink colour is additionally the colour of womens cancer and especially breast cancer from which the mother of Stella McCartney, Linda McCartney, passed away from. The pink colour therefore also becomes a narrative element expressing Stella McCartneyâ&#x20AC;&#x2122;s story of her mother. Style inspiration is highly taken from curent trend forecasts and older runway silhouettes that relates to the customer of Stella McCartney.

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silhouettes

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SILHOUETTE Stylish, yet functional. The athluxe jackets combats both the elements and the city commute from studio to street in most fashionable ways. Generally oversize silhouettes, however, with feminine details and adjustments for further body or waist hugging shapes.

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silhouettes

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SILHOUETTE Minimal and feminine silhouettes with sleek aesthetic style in co-ord sets.

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silhouettes

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materials REDUCING IMPACT

Since 2012 Stella McCartney has been using the EP&L (Environmental Profit & Loss Account) which has enabled the brand to significantly reduce environmental impact year on year. All materials used are therefore non-virgin fibres, as these have 75% lower carbon footprint and up to 90% less water usage in production. In 2016 Stella McCartney increased the amount of recycled polyester used in collections by 38% and introduced additionally, recycled nylon into their collections, which is highly included in the production of the StellaStudio collection. Lux Jerseys: Fibre & yarn: elastane/Tencelâ&#x201E;˘, recycled cotton/organic cotton/recycled polyester. Construction & finish: rib-stitched, jersey stitch and micro pinstripes. Market & application: sets. Textured Linen: Fibre & yarn: 100% linen, linen/wool, linen/viscose. Construction & finish: tufted yarns, printed finishes, dimensional textures, hatched plains. Market & application: lightweight jackets, shoes. Technical performance: Fibre & yarn: MerylÂŽ, recycled nylon, elastane/recycled nylon, recycled polyester. Construction & finish: waterproof coatings and plain weaves. Market & application: jackets, outerwear and athleisure

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colours

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PATTERNS The collection is complimented with bold and feminie patterns often with flower print in a red, pastel or multi colour scheme as complentary items to further simple or modest coloured products such as the sets portrayed on previous page. The patterned outerwear products functions as a great item for creating a stylish and united outfit. The patterned items additionally come with the dotted logo as pattern.

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Â© WGSN

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-APPENDIX II Exhibit 1: AdHoc Research: Interview outline.

QUESTIONNAIRE 1: Consumers who buy Stella McCartney and respectively the sports collaboration Q1: Do you buy sports or activewear? Why is that or for what purpose? Q2: Where do you currently buy sportswear or from which brand(s)? Q3: List the most important qualities to you for sportswear. Q4: When was the last time you bought sportswear from the Stella McCartney collaboration with Adidas? • What did you buy and why? • Have you been happy with it ever since? • Would you like to complement (that specific item) with a bag/jacket or track suit like these. o Show Images. Q5: Where, on a scale of 1-10 (with 10 being high) would you rate us on the following attributes; • Stylish • Functionable • Femininity • Affordable/or worth the price • Material quality • Sustainability, ethicality, transparency • Only performance related Q6: Is it important for you to create a look when dressing in sportswear? And why? • Would you like to have high performance sportswear, but looking stylish and trendy at the same time? • Which of these jackets would you rather wear on top of your sportswear? o Show Images: masculine one and feminine one Q7: These images show a selection of the current collection. Which are your favourite pieces and why? Q8: Based on your experience with Stella McCartney Sportswear, how would you rate their product quality/service quality/customer service/overall experience on a scale from 1-10. • What is your biggest satisfaction or pain points with the collection so far? Q9: Which sportswear products do you most frequently purchase? Q10: Do you trust in our products and why? Q11: What problem(s) are you trying to solve when buying our sportswear? Q12: Why is stylish designer sportswear important for you? Q13: Which of the following channels do you prefer to receive marketing and sales communications through? Q14: How does it impact you to see professional sports athletes wearing the same products as offered to you? • Show Testimonial images Q15: Do you prefer to shop sportswear online or offline and what do you value the most about the where you shop? • Would you like to experience these products and collaboration with Adidas outside the normal Stella McCartney store? Q16: Is there any other way despite being sports wear that these products benefit you? Q17: On a scale of 1-10, how likely are you to purchase sportswear from Stella McCartney in the next six months?

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Q18: On a scale of 1-10, how likely are you to recommend us to a friend or colleague, friend or partner? Q19: Do you feel that the sportswear of Stella McCartney aligns with the non-sport collections? â&#x20AC;˘ Show Images â&#x20AC;˘ Is there any products or attributes you would like to see more from the Stella McCartney sports line.

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QUESTIONNAIRE 2: Consumers who haven’t bought at Stella McCartney but buy sportswear Q1: Where do you currently buy sportswear and from which brands? Q2: List the most important qualities to you for sportswear. Q3: Which sportswear products do you most frequently purchase and what role does it play for you? Q4: Rate the attributes according to importance for sportswear on a scale of 1-10 (with 10 being the highest) • Stylish • Functionable • Femininity • Affordable/or worth the price • Material quality • Sustainability, ethicality, transparency • Only performance related Q5: What are your biggest pain points with the current market offerings for sportwear? Q6: How do you find sportswear matching your needs and what brand might that specifically be? Q7: What sportwear brands do you aspire to wear? Q8: Is it important for you to create a look when dressing in sportswear? And why? • Would you like to have high performance sportswear, but looking stylish and trendy at the same time? • Which of these jackets would you rather wear on top of your sportswear? o Show Images: masculine one and feminine one Q9: Looking at this images, what brand(s) do you consider the products to be from? Do you recognise any specific? And do you like the style of the products? • Show Competitors Images Q10: Do you know the Stella McCartney sports collaboration with Adidas? • Show images • If yes, what are your likes or dislikes about the collection? • If no, would you like to wear these products? • At what price point do you think the products are positioned? Do you think you could afford them? Q11: How does it impact you to see professional sports athletes wearing the same products as offered to you? • Show Testimonial images Q12: Which of the following channels do you prefer to receive marketing and sales communications through? Q13: Can you mention your best in-store experience yet, and at which brand this occurred? Q14: Which of the following advertisements appeals to you most? • Show Images Q15: Do you prefer to shop sportswear online or offline? • Would you like to experience these products and collaboration with Adidas outside the normal Stella McCartney store? Q16: What benefits do you feel these products would give you? • Show Images

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Exhibit 2: Stella McCartney Sustainability Commitments. (Amed, I. (2015).

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Exhibit 3: Marketing Mix analysis extension. (Andreasen, et al., 2018, International Branding and Sustanability, p.57.) PRODUCT WOMEN’S:

MEN’S:

Ready-to-wear

- Outerwear - Jackets & Blazers - Trousers & Shorts - Suits - Shirts - Denim - Knitwear - T-shirts & Sweatshirts - Swimwear

- Coats & Jackets - Knitwear - Dresses - Sweatshirts & T-shirts - Shirts & Tops - Trousers - Denim - Skirts - All in ones - Swimwear Accessories - Lingerie & Sleep- - Bags wear - Sunglasses - Wallets & Card cases - Other Accessories Accessories - Sunglasses - Tech Cases Shoes - Other Accessories - Casual shoes - Fragrances - Sneakers - Handbags - Boots - Wallets & Purses

Shoes GIRL’S

Ready-to-wear

- Outerwear - Dresses & All inones - Jumpers & Cardigans - T-shirts - Blouses & Shirts - Skirts - Trousers & Shorts - Shoes & Accessories

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BOY’S

- Outerwear - Jumpers & Cardigans - T-shirts - Shirts - Trousers & Shorts - Shoes & Accessories

BABY

- Outerwear - Dresses & All in ones - Jumpers & Cardigans - T-shirts - Baby Gift Sets - Trousers & Shorts - Sleepwear & Underwear - Shoes & Accessories

PRICE WOMEN’S: (221.795€)

MEN’S: (185-1.995€)

Ready-to-wear

- Swimwear (210-315€) - Outerwear (945-1.995€) - Jackets & Blazers (625-1.275€) - Trousers & Shorts (350-665€) - Suiting (370-1.275€) - Shirts (275-465€) - Denim (350-375€) - Knitwear (465-995€) - T-shirts & Sweatshirts (185-595€)

- Coats & Jackets (6951.795€) - Knitwear (495-1.795€) - Dresses (825-3.895€) - Sweatshirts & T-shirts (175-795€) - Shirts & Tops (1951.195€) - Trousers (425-950€) - Denim (365-650€) - Skirts (525-1.695€) - All in ones (795-1.395€) - Swimwear (100-365€) - Lingerie & Sleepwear (35-430€)

Accessories

- Sunglasses (190-360€) - Tech Cases (60€) - Other Accessories (50395€) - Fragrances (22-99€) - Handbags (285-1.485€) - Wallets & Purses (180395€)

Shoes (250-1.025€) GIRL’S (35-265€) - Outerwear (120-265€) - Dresses && All in-ones (70-140€) - Jumpers & Cardigans (65-150€) - T-shirts (40-55€) - Blouses & Shirts (7585€) - Skirts (55-75€) - Trousers & Shorts (5080€) - Shoes & Accessories (35-160€)

Ready-to-wear

Accessories

- Bags (345-740€) - Sunglasses (170-390€) - Wallets & Card cases (160-345€) - Other Accessories (185-745€)

Shoes

- Casual shoes (350-395€) - Sneakers (495-575€) - Boots (595-770€)

BOY’S:(40-32€) - Outerwear (120-320€) - Jumpers & Cardigans (60-130€) - T-shirts (45-60€) - Shirts (75-100€) - Trousers & Shorts (60-95€) - Shoes & Accessories (40-160€)

BABY: (30-145€) - Outerwear (90-145€) - Dresses & All in ones (35-140€) - Jumpers & Cardigans (50-90€) - T-shirts (40-55€) - Baby Gift Sets (55-140€) - Trousers & Shorts (40-65€) - Sleepwear & Underwear (55140€) - Shoes & Accessories (30-95€)

PROMOTION ADVERTISING Stella McCartney has a strong media presence thanks to the young audience that lately is following it, the brand uses its platforms to communicate the values of the company with the purpose to create a one to one relation with the followers. Stella’s World is promoted also through offline advertising such as magazines and billboards. In the advertising strategy, are also included all the actions of product placement, sponsorships, co-branding (Adidas) and direct market (People can subscribe for emails through the website and be updated on new products and promotions) PR The brand has its own press room section, available on the official website; the company is realizing news, press articles and conferences, community activities and special events. Stella Mccartney is portraying a positive image of the brand. PERSONAL SELLING Shop assistant in flagship stores. SALES PROMOTIONS Usually the brand has products on sales in department stores and online retailers.

DISTRIBUTION In 2017, Stella McCartney, brand that used to belong to Kering Group, reported the group’s most profitable year making profits of €3bn on sales of €15.5bn. The brand owns more than 70 directly operated stores worldwide but the number of point of sale is increasing year after year. In 2017, the company opened two flagship stores in two high- traffic locations of Paris (231 rue Saint-Honoré) and New York (929 Madison Avenue); as well as free-standing stores in Florence and shop in “South Coast Plaza”, one of the most important mall in Costa Mesa, California (Stella McCartney, Our new stores, 2017) in order to consolidate the brand presence in the retail network. Regarding the wholesale channel, the products are available in specialty shops and department stores. According to the official Stella McCartney’s website, the brand boasts of 863 doors distributed in 77 different countries. The e-commerce has been growing exponentially in the past year creating a strong online presence and an improvement in terms of retail revenue. The products are sold and shipped in more than 100 countries through the stellamccartney. com website but also through other online retail platforms such as Net-a-porter, mytheresa, Selfridges&Co, Farfetch and many others. However, it is important to point out the fact that some of the items available on the websites are not sold throughout the store, therefore, the offer online and offline is not the same. On the other hand, according to the Kering financial report 2017 (2017 Financial document, 2018), the brand is now moving towards an omni-channel approach in which online and offline distribution are offering the same products and services.

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Exhibit 4: Stella McCartney, Earned media coverage at Royal Wedding 2018. Amal Clooney and Oprah Winfrey wearing Stella McCartney dresses. (Instagram of Stella McCartney)

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Exhibit 5: Brand expansion strategy (Kering, 2017) and (Andreasen, 2019), The brand expansion strategy (Kering, 2017) gives emphasis to strengthening Stella McCartneyâ&#x20AC;&#x2122;s product offers, by advancing its retail operations and organisations to pursue its selective retail expansion. The brand will additionally, consolidate its omni-channel approach to further increase the proximity of the brand to its clients with a particular focus on cash-rich Chinese Millennials (Master & Kwok, 2018). Thus, Stella McCartney wishes to expand and intensify its brand awareness with special emphasis given to China and other Asian markets, in which the brand currently holds the presence of respectively 8 and 36 stores (Kering, 2017). Furthermore, Stella McCartney seeks to include a continuation of the annual environmental profit and loss account (EP&L) (Stella McCartney, 2016), which measures the environmental impact of the business and supply chain, a concept initiated during the Kering joint venture. Stella McCartney within Great China holds 8 stores respectively, 3 in Hong Kong, 1 in Chengdu, 2 in Beijing, and 2 in Shanghai.

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Exhibit 6: Chinese market outlook (PEST) (Andreasen, 2019),

POLITICAL FACTORS: • Communist country controlled by the sole Chinese Communist Party extremely priority to control and influence on all activities. The political landscape provides a rather stable environment for citizens and business. • Two independent markets in china: Hong Kong and Macaw.

ECONOMIC FACTORS: • Unique market and crucial opportunity for luxury fashion business, including an increasing importance of brand appeal to consumer lifestyles. The Chinese market sees growth in both middle and upper class and therefore luxury segment to which China comes in second by 2018 after the US in generating most revenue within luxury goods with $35.852m. (Authors of BOF, 2018) • The Chinese market is additionally one of the most potential markets due to the rapid growth of GDP and great scale of international trades • The Chinese market is the world’s fastest-growing consumer market, accounting for more than 18% of all final goods consumed. Example of explosive growth; China’s annual “Singles Day” reached an estimated $25 billion in e-commerce sales in 2017, surpassing Black Friday and cyber Monday in the US combined (Authors of BOF, 2018). McKinsey expects incremental spend from existing Chinese customers to account for 60 percent of the next 10 years of growth (Master & Kwok 2018). • General economic expansion across the Asian markets. Increasing growth coming from luxury and emerging markets in Asia. China and India have bucked the global trend and continue to see sharp productivity increases, meas-ured by GDP per person employed. (Productivity growth and increases in the number of employed people are the key drivers of economic growth.) • Greater China is expected to overtake the US as the largest fashion market in the world by 2019 and holds a large economy with strong internal consumption power (Authors of BOF, 2018). • Export > Imports and member of WTO • (Authors of BOF, 2018) Risk of trade disruptions and slowing economic growth, even in key growth markets in Asia, could undermine global growth prospects, as could uncertainty over other major events such as Brexit or the possible onset of a global economic slowdown. The US has announced tariff hikes on $200 billion of goods from China including clothing and brands such as Steve Madden and Puma therefore consider moving production out of Chi-na. • According to Transparency International, China ranks 77th out of 180 countries on its Corruption Perception Index. • Shanghai Fashion Week (SFW) is keen to expand its eco-credentials and the past seasons of SFW have seen major luxury players get in on the act as well (Hall, 2017). The Kering Group and its global program is additionally looking to Shanghai Fashion Week to identify the designers of tomorrow to include them into their portfolio and push for sustainability (Hall, 2017).

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SOCIOCULTURAL FACTORS: • The Chinese market additionally holds a booming middleclass, and the great entry of new consumers they contribute to reshape the apparel industry once again. Particularly in China, the new middleclass are flexing their newfound spending power by expression their own taste through fashion (Tao, 2017). • Demand for luxury goods in China is showing signs of growth for the first time since President Xi Jinping embarked on an austerity and anti-corruption campaign in 2013. Gucci, Saint Laurent and Stella McCartney, said sales rose by 11% in Asia excluding Japan, led by a rebound in China (Tao, 2017). • The young generation of Chinese consumers are digital natives; they are global citizens and increasingly prioritize a high level of brand connection both online and offline channels in order for the consumers to use their smartphone to shop in a seamless way (Authors of BOF, 2018). • Acceleration of brand digitalization, communication and e-commerce platforms. A socio-cultural driver highly exists in the force of fast-changing social media and pushes brands within the highly technological developed Chinese market to really integrate the multi-social experience and improving shopping experiences using model O2O2 and omnichannel retail methods. • Three-quarters of Chinese consumers reported preferring or somewhat preferring local brands of apparel and footwear over foreign brands (Authors of BOF, 2018). • Chinese consumers are becoming more international, as they are more awak-ened; they have learnt self-expression.

TECHNOLOGICAL FACTORS: • Business is strongly supported by technological factors of China due to ad-vanced R&D and maturing production skills. New technologies and need for speed •

The metabolism of fast fashion has gotten even faster in the age of so-cial media and bog data, and Chinese influencers, shaping consumer demands among their followers, are collaborating with manufactures to start their own fest-fashion lines.

China reaches a new stage of industrial maturity. • •

Upgrading of the textile industry including making production more technologically sophisticated and more environmentally sustainable of-fering higher-quality Chinese brands. The ‘Made in China’ label; a symbol of globalization in itself as it hangs in Western closets, however the Chinese production system seeks to move away from the ‘lowcost factory’ image it has been carrying since its early beginnings. Today, the Chinese production agenda pursues to move up the value chain and higher-value production in line with the increasing consumer segment for luxury goods. This is expected to become a reality by technological upgrading and modernizing of the Chinese ap-parel manufacturing capabilities as well as rising wages that are relative to the rest of the emerging world.

• Automation technologies should ensure China remains a powerhouse of global apparel production even as its wages rise. Additionally, it should also provide the incentives needed to invest in high-tech manufacturing.

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Exhibit 7: Data analysis of main commercial areas in Barcelona & qualitative, quantitative pedestrian flows & retail rental rates. Extract from (Andreasen, 2018, Retail Management & Distribution System pp. 52-58) GENERAL TRAFFIC Inter-annual percentage variation of the daily average of pedestrian traffic in commercial streets and shopping centers, compared to the same month previous year tracking by February 2018 of Barcelona by The Traffic Index. Tracked by TC-street sensors, Barcelona faces a 3.67% decrease since last year (Authors of TC Group Solutions, 2017,Tc-street. com).

COMMERCIAL AREAS: GENERAL Studies in profitability of main commercial streets has shown an importance of the visitor for the commercial axes of Barcelona as some of the most valuable in Europe. The tourist flows are an undeniable important factor to the economy of retail sales in Barcelona, these supposes between 60% and 80% of the sales in the commercial areas in Barcelona and has highly compensated for the slow recover in domestic consumption (Authors of OI Realtor, 2017, Oirealtor.com).

MAIN COMMERCIAL STREETS AND AREAS IN BARCELONA *Location: Diagonal El Corte Ingles, Diagonal Avenida Diagonal is located across Barcelona and divides the city in two, diagonally from west to east. The street is a highly viable and commercially profitable axis, however the street is placed away from the walk of preference directed towards the centre (Passeig de Gracia â&#x20AC;&#x201C; Placa Catalunya). Nevertheless, Avenida Diagonal recorded a healthy increase in rental growth in 2015 by 33,3% (Rodda, M., 2016). According to the latest market report of Cushman & Wakefield the most trafficked part of diagonal is situated between Francesc MaciĂ and Passeig de Gracia, in which the street is considered a suitable location for brand/store extension as second point of sale.

PEDESTRIAN FLOW *Localtion: Diagonal * Average numbers per day as for May (2017) (Authors of TC Group Solutions, 2017, Tc-street.com) The growth of the number of pedestrians on Avenida Diagonal increased 17.81% in january 2019.

RENTAL RATES *Localtion: Diagonal * Average prices in 2017* (in euros per square meter per year) (Authors of statista, 2017,Statista.com). DIAGONAL See following model on rental rates.

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Exhibit 7 continued: Data analysis of main commercial areas in Barcelona & qualitative, quantitative pedestrian flows & retail rental rates. Extract from (Andreasen, 2018, Retail Management & Distribution System pp. 52-58) Rental prices in 2017* (in euros per square meter per Map over these areas & pedestrian flows (Travers, year) according to Statista (Authors of statista, 2017, R., 2017) and (Authors of TC-Group Solutions, Statista.com.). â&#x20AC;&#x153;This statistic presents a ranking of prime 2017, Tc-street.com) retail street locations in Spain based on the cost of rent as of June 2017. Of the locations in Barcelona, Portal de Lâ&#x20AC;&#x2122;Angel has the highest rental rate at 3,360 euros per square meter per year, while Avenida Diagonal has a rate on â&#x201A;Ź840/m2/year

Figure 19: shops at Avenida Diagonal (18 retailers) + (2 transport) + (22 services)

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