MA Final Project by Dominica Baird

VOX DENIM

MADE

FOR

CURVES

L XF M M .A . FIN A L P R O J E C T VOx: M A R KET IN G AN D B R AN D S T R AT E GY D O M INI CA BAI RD NO V EMBER 1 7, 2 01 5 LX FM 749 P RO FESSOR DANI EL GR E E N SAVA NNAH COLLEGE O F A R T & D E SI G N FA LL 2015

CONTENT EXECUTIVE SUMMARY ............................................................ 3 COMPANY OVERVIEW ............................................................ 4 MARKET & INDUSTRY............................................................... 8 VOX OPPORTUNITIES............................................................ 20 COMPETITIVE ANALYSIS....................................................... 28 TARGET MARKET..................................................................... 34 MARKETING MIX..................................................................... 46 FINANCIAL PLAN.................................................................... 62 GLOSSARY................................................................................ 66 BIOGRAPHICAL STATEMENT................................................ 67 REFERENCES........................................................................... 68

executive summary Vox will launch in 2016 with a line of denim bottoms targeted towards the underserved market of hourglass-shaped women sized 10-24. This customer struggles to find jeans that fit and will be happy to pay a premium price for the right product. The brand will offer a solution to this customerâ&#x20AC;&#x2122;s with its unique S-Curve fit that combines a specialized fit process with premium stretch denim in order to create jeans that fit hourglass shapes proportionally while hugging their curves. The initial offerings will include an assortment of three basic denim bottoms (straight leg, skinny and pencil skirt) and five fashion bottoms. Fashion items, washes, finishes and fabrications are updated seasonally in order to continuously offer the customer new options. Voxâ&#x20AC;&#x2122;s retail prices range from $165-$225 retail, which position the brand in the super-premium denim category. The brand will initially launch in 15 Nordstrom stores, nordstrom.com, and select specialty boutiques. Year one sales are estimated to be $873,500. During year two, e-commerce will be expanded to the companyâ&#x20AC;&#x2122;s website, vox.com its retail footprint will be expanded to include 25 more Nordstrom stores and three more major retail partners for a total of 150 doors. Year two sales are projected at $1.7 million. The launch will be supported by a digital promotional plan intended to create brand awareness share among core segments of female consumers ages 25-44. The plan calls for a multi-platform campaign that will target Millennial consumers wherever they are and on whatever devices they are using. Much of the campaign will be centered around inviting Vox customers to submit photographs of themselves wearing Vox jeans with the hashtag, #MyVox. The hashtag symbolizes this underserved customer finding her voice and embracing her individual beauty and style. 3

COMPANY OVERVIEW

company description Vox is a line of denim bottoms ranging in sizes 10-24, fit specifically for hourglass and pear-shaped figures. The “curvy” shape and plus size consumer have difficulty finding jeans that fit properly and are largely underserved by the fashion industry. Vox has developed its unique S-Curve fit with the use of size 14 fit models who are exclusively hourglass shaped. This fit model ensures that the Vox fit has the most proportional, true fit for its customers. The Vox fit is further enhanced by with the most innovative denim produced in the United States. The brand exclusively uses Cone Denim’s patented SGENE denim. The stretch denim hugs the wearer’s curves without stretching out. This allows for maximum comfort and movement with a flattering fit. Vox denim will launch with an assortment of three basic denim bottoms (straight leg, skinny and pencil skirt) and five fashion bottoms. Fashion items, washes, finishes and fabrications are updated seasonally in order to continuously offer the customer new options. Vox’s retail prices range from $165-$225 retail, which position the brand in the super-premium denim category. During year one, the brand will launch in 15 Nordstrom stores, nordstrom.com, and select specialty boutiques. Allowing retail partners to initially handle e-commerce will help keep down the cost of year one expenses, while keeping the initial launch small will allow the brand to focus on customer feedback and communication with salespeople. Nordstrom was chosen as the exclusive major retail partner because of their commitment to customer service.

mission vision & goals MISSION

We are committed to providing our customers with the perfect fitting jean made with the highest quality materials while offering the best customer service.

VISION

To make women feel beautiful one pair of jeans at a time. During the next five years, Vox seeks to achieve the following financial and non-financial goals:

FINANCIAL GOALS

• Obtain financing to expand manufacturing capabilities, increase distribution, and introduce two new product lines. • Increase revenues by at least 50 percent each year.

NON-FINANCIAL GOALS

• Launch eCommerce at vox.com during year two • Introduce two new product lines • Extend brand into non-denim apparel such as pants, dresses and tailored shirts. • Create made-to-order custom-fit jeans using body scanning technology • Increase retail footprint with Nordstrom while entering partnerships with new upscale retailers such as Bloomingdales, Neiman Marcus and Net-a-Porter. • Open two brick-and-mortar locations—Brooklyn and Chicago 7

market & industry

PEST ANALYSIS POLITICAL

The pending Trans-Pacific Partnership trade agreement (TPP) could have drastic impact on the garment industry. The 12 nation (US, Japan, Brunei, Malaysia, Vietnam, Singapore, Australia, New Zealand, Canada, Mexico, Chile and Peru) deal would create a freetrade zone that will include 40% of the world’s economy (Bergman). While industry giants such as Nike, the Gap and Hanes strongly support the TPP, the agreement will likely put pressure on small, independent apparel companies—with a particularly harsh impact likely to affect the struggling US apparel industry (Bergman). One reason for this is, under the TPP, Vietnam, which accounts for 34% of US apparel imports, will be able to export apparel to the US tariff-free (“TPP: What’s at stake with the trade deal?”). This will put small, higher-wage apparel producers at a significant competitive disadvantage.

ECONOMIC

In the years following the Great Recession, the United States has suffered through a very long and slow recovery. Very recently, the economy has been on the uptick. For example, consumer spending rose .9% in May 2015 from a month earlier—this is the biggest increase since August 2009. The bulk of this spending came from everyday items like groceries and big ticket items like cars. Spending is being fueled by a strengthening labor market— consumers’ incomes rose .5% in April 2015. Additionally household spending, which is a major indicator of US growth, also increased (Mitchell, 2015). Despite the recent improvements, the outlook remains unclear. The uncertainty has been underscored by the recent instability in Greece and China. Unresolved financial issues in these have the potential to cause major financial problems worldwide (Harjani, 2015). Additional repercussions could include disruptions to the fashion industry’s major suppliers located in China and the Euro-zone.

SOCIAL

Fast Fashion: According to Euromonitor, fast fashion brands including H&M and Zara both enjoyed healthy value growth overall in jeans in 2014 (“Jeans in the US,” 2015). The healthy performance of fast fashion brands is a reflection of the apparel industry as a whole. Consumers are purchasing investment pieces from premium labels and shopping at fast fashion brands for basics, trends and low prices. This pattern has hurt mid-tier retailers such as The Gap and Levis (Kissane, 2015). Athleisure Trend: It has become increasingly acceptable to wear activewear such as yoga or leggings in a wide variety of social situations. In fact, many women are replacing wardrobe staples such as jeans with the more comfortable soft, stretchy athletic bottoms. According to Petro (2015), Athleisure is one of the “biggest trends in the fashion and retail worlds.” According to NPD, “Activewear was the clear driver across all consumer segments in apparel, especially among women where dollar sales increased 8 percent compared to 2013.” (“A More Casual, Active Lifestyle Drives Fashion Sales Growth in 2014, Reports NPD,” 2015).

TECHNOLOGICAL

Social media marketing and omni-channel retailing are becoming increasingly crucial tactics in the apparel industry. Much of this has been driven by Millennials who tend to use mobile devices to connect with brands wherever they are—even when visiting brick and mortar stores (Barton, Koslow, & Beauchamp, 2014). The athleisure trend has pressured the denim market to innovate. Levis and Hudson have focused on improving fit, while fabric innovation has also become increasingly important. Lightweight knit denim and shaping fabrics have become important trends (“Ath-leisure Trend Inspires Fabric Innovation in Denim”).

THE DENIM MARKET The denim market can be segmented using a combination of price points and brand prestige. Currently, the lower-priced segments of the market are out-performing the higher-priced segments. Vox’s prices range between $165 to $225, which place it at the Super Premium segment of the denim market. Euromonitor defines this segment as the following: “This category includes brands that are located at the top end of the price range. Super premium brands are often considered as fashion and status symbols and are often sold through high end department stores or high fashion boutiques. Examples of brands include: 7 For All Mankind, True Religion, Rock N’’ Republic, MR Jeans.” (M. Markovics, personal communication, August 13, 2015). SALES OF JEANS: % OF VALUE GROWTH 2009-2014

15% 12% 9% 6% 3% 0% -3% -6% -9% -12% 12

Economy 13.2%

Standard 11.1%

Premium 4.2%

Super-Premium -9.1%

SALES OF JEANS: VALUE GROWTH 2009-2014 Super Premium Jeans (<$100) $8.3B

Premium Jeans ($50-$100) $3.4B

Economy Jeans (>$25) $6.3B

Standard Jeans $25-$50 $6.0B

In recent years, the US denim market has been struggling with declining sales. For example, retail sales of women’s jeans decreased by 3% in 2014, falling to $18.3 billion. Much of this decline has been attributed to the rise of the athleisure trend that has influenced women to replace jeans with leggings or yoga pants. (“Jeans in the US,” 2015).

Women are spending less on their jeans as evidenced by the 2% decline in the average unit price of jeans during 2014. This has made for a difficult environment for higher priced jeans—according to Euromonitor (2015), “Super-premium jeans continued to experience a tough trading environment in 2014. Value sales of super-premium women’s jeans declined consecutively for the third year in 2014, declining by 12% in current terms as women continued to trade down to lower-priced jeans.(“Jeans in the US,” 2015).

THE DENIM MARKET Despite the denim market’s recent struggles, primary research indicates that denim jeans remain and important part of women’s daily wardrobes. A survey of 100 women found that denim jeans are an essential part of the vast majority (84%) of the respondent’s wardrobes while 53% of respondents reported wearing jeans two to four times per week. Denim’s outlook could be further bolstered by Millennials as they now account for the largest dollar segment of jeans sales at 28 percent (Fig. 1). According to NPD (“Denim Industry Encouraged by Millennials,” 2015), Millennials are showing a renewed interest in denim. “In mid-2015, overall dollar sales of jeans declined 5%, but increased 2% among Millennials. This growth was driven by a 13% dollar sales increase from older Millennials (ages 25-34)” (Marshall).

Jeans Sales by Generation. Source: The NPD Group, 2015

the plus size market Women’s plus size apparel typically makes up 15% of the total women’s apparel market (“Connecting with the Curvy Customer,” 2015). According to NPD, plus size women’s clothing in the US grew 5% between 2013 and 2014. The category accounted for $17.5 billion in the 12 months ending April 2014, compared to $16.7 billion the previous year (Riley, 2014). The plus category should be growing faster than its current rate as the number of plus-size consumers have been steadily rising. For instance, the average American woman is approximately 25 pounds heavier than she was in 1960, and the most frequently worn size in America is now a now a size 14 (“The Funny Math of Clothing Sizes,” 2013). As a result, the majority of American women (67 percent) now fall under plus-size standards (Bellefonte, 2010). Despite this majority, most designer clothing is not offered above a size 12 (“Connecting with the Curvy Customer,” 2015). Despite the obvious potential for demand in plus size apparel, March 2015 sales showed that plus size women spent about 60% less on apparel in comparison to non-plus size women ($48 versus $78) during that month (“Connecting with the Curvy Customer,” 2015). The relatively poor sales have often been used as a reason for apparel retailers not to participate in the plus market. This is often further complicated by the false notion that plus size consumers are not interested in fashionable clothing. More likely the problem lies within the plus size consumer’s unhappiness with her fashion options and shopping experiences.

Numerous articles point out plus-size customers are disappointed with their lack of options. Frequent complaints range from problems with fit, the lack of fashionable styles and poor quality (Scaraboto and Fischer, 2013). A recent survey of 1,500 women conducted for the retailer, Modcloth, supports this. The survey reported that plus-size women found shopping to be generally frustrating (Fig. 1 mod cloth graphic) and that 80 percent of the plus-size women polled indicated that they would spend more on apparel if they could find flattering clothes (Lutz, 2014).

ModClothâ&#x20AC;&#x2122;s survey of 1,500 women on plus-size fashion. Source: Business Insider

the plus size market Another indication that the plus size customer is more than willing to spend money on clothing is the flourishing online plus size fashion community. There are numerous plus size style bloggers who are dedicated promoting the plus size community and improving their fashion options, while plus-sized, internetonly retailers, such as Navabi, Hey Gorgeous and Eloquii, are all performing well (Potts, 2015). Personal interviews with agents and management at Wilhelmina Models’ plus board, Curve, suggest that plus size women are gaining more acceptance in the fashion industry. According to Gina Barone, one of Wilhelmina’s Co-Directors, plus modeling is still a niche market in modeling industry, but it is growing because women want to see models who look like them and the fashion industry is starting to embrace that. Even the very highfashion segment of the industry is becoming more interested in working with plus models. For example, one of their Curve models was recently booked for iD Magazine (pic from id). According to Barone, a plus size model being booked at an edgy publication such as iD “would have never happened a few years ago.” (personal communication, October 16, 2015). Marissa Muscari, a Curve agent, agrees that there is a growing demand for plus models, adding that much of that demand is coming from younger brands such as Forever 21 and Torrid (personal communication, October 16, 2015). “The ‘cool’ part of the fashion industry is more interested in plus models.”--Gina Barone, Co-Director, S Women’s Division at Wilhelmina Models 18

“A Look of One’s Own.” Barbara Ferreira. i-D Magazine. October 12, 2015.

vox opportunities

opportunities Primary and secondary research indicates that there is great opportunity in the market for an apparel brand to cater to the needs of curvy shoppers seeking proper fitting clothing. This is especially true for the Vox brand as fit is major selling point with womenâ&#x20AC;&#x2122;s jeans. In order to fully capitalize on the opportunities in the market, it is imperative that the following key issues be addressed:

FIT

Women of all sizes cite fit as a major driver in denim purchases. According to the Cotton Incorporated Lifestyle Monitor, fit, comfort and flattering look are the top three factors influencing women to purchase denim. The primary research conducted for this project also supports this with 96% of survey respondents reporting that fit is the most important thing taken into consideration when buying jeans (Fig. 2). Additionally, 65% of respondents indicated that they had trouble finding jeans to fit their body type.

Source: Cotton Incorporated Lifestyle Monitor.

OPPORTUNITIES Fit issues are compounded with plus sizes. According to an interview with an anonymous plus size model, the challenge lies with the way women gain weight differently which becomes more pronounced as sizes increase, explaining that body types of a size two will have less variation than larger sizes. “A size 18 to another size 18 could be inches and inches of difference, and that’s why it’s hard.” (personal communication, October 3, 2015).

SIZING

Many fit problems stem from designers using an antiquated sizing system. According to Daniel Green, Chair, Fashion Marketing and Management, Luxury and Fashion Management at the Savannah College of Art & Design. Formerly Vice President and Merchandise Manager at David’s Bridal, most of today’s standards are based on data from WWII and many companies still rely on this data for sizing, fit & body type information.” (personal communication, October 11, 2015). In addition to reevaluating sizing standards, fit models are an integral part of the equation. Green points out that while some fit models might have curves, they are rarely truly pear size—while most american women are. Patterns should be adjusted to take into account the nuances of plus size body types (personal communication, October 11, 2015). Bernadett Vajda, image consultant, stylist and plus size model, shared her experiences as an American Eagle fit model where she is a 40d bra fit model (but is really 36DD). She is also and American Eagle size XL fit model, “Every company uses different fit models. Each company grades clothes differently and employee various levels of vanity sizing. For example, she is medium or small in some brands, however, she is not either of those sizes at size 14 and 5’11” (personal communication, October 6, 2015).

FASHIONABLE PRODUCT

In response to a 2009 Mintel study of the plus-size market, David Lockwell, Mintel’s director of research,noted: “There is not a deep range of styles in stores devoted to plus-size. They’ll pickup on a singe trend, it will dominate the floor space and that will be that (Bellefonte, 2010). Additionally, 79% of plus size women want to see plus size clothing offered in the same styles as non-plus size clothing (Cox, 2012).

FABRIC

Boxy fits, lack of fashionable choices and poor quality are frequent complaints about plus size fashion. (Bellefonte, 2010). In addition to offering stylish options and quality product, it is imperative to carefully consider fabric—particularly new options in stretch denim (personal communication, Green, October 11, 2015). It is important to have the right amount of stretch but not too much to cause sagging (personal communication, anonymous plus size model, October 3, 2015; Vajda, October 6, 2015).

“..a good amount of stretch but not too much. It needs to hold us in, and flatter but not be too rigid.”-Anonymous Plus Size Model

OPPORTUNITIES SHOPPING EXPERIENCE

Adding to consumer frustration, plus-size departments are frequently small spaces hidden in the back of stores. For example, Vajda cites the poor shopping experience as troubling and feels that plus fashion should be integrated with everything else in the store. “Stores should be embarrassed that they put plus clothing in the corner—so what that its bigger? Let everyone shop at the same place.” Vajda points out that Lord + Taylor has one of her favorite plus size sections, however, it is in a dark corner of store on separate floor. Furthermore, many of her image consulting clients end up hiring her to shop for them due to their anxiety about these bad shopping experiences (personal communication, October 6, 2015).

DON’T SEPARATE PLUS

Many plus size consumers have a difficult time with the very concept of ‘plus size’ itself. According to Potts (2015), “Many women that fall into fashion’s ‘plus size’ do not identify with the title, and it’s easy to see why they wouldn’t. Strictly speaking, the term ‘plus size’ (typically US size 14 and above) is only really relevant within the apparel industry. Outside of the fashion industry , size 14 and above is around the average size of the female population, so why should the category have a separate title at all? Incorporating larger sizes into a store’s regular offering would be one relatively simple but effective way of bringing consumers into the fold.” An NPD Group survey of plus size shoppers also indicates that they don’t want to be treated differently from non-plus size shoppers: • 86% of plus size women want to see plus size clothing offered in the same colors as non-plus size clothing. • Only 39% of plus size women report they prefer to buy from a brand that specializes in plus size clothing (Cox, 2012).

PREMIUM OPPORTUNITY

While a handful of youth-oriented, mass-market retailers such as Asos, Mango, ModCloth and Forever 21 have begun selling plus-sizes (Meltzer), 2 few, if any designer or premium brands offer plus options (Kroge; Merkin, “Why is the fashion industry ignoring the plus-size market?”). This may be because of a long-held also notion that plus size consumers tend to be of lower income levels, however, according to the National Center for Health Statistics, “There are more obese women among upper (29%) and middle income (39%) females combined that there are obese lower income (42%) women (Salfino, 2015).

VOX COMPETITIVE EDGE

To fully capitalize on this underserved market, Vox will address these key issues by offering a high-quality product, made with the latest stretch denim technology. Vox’s S-Curve fit uses size 14 hourglassshaped fit models in order to create jeans that fit curvy women proportionally. Plus sizes will not be offered separately from the straight sizes. The brand will be marketed using a luxury approach by focusing on craftsmanship and quality, and its digital marketing efforts will be focused on creating a sense community in order to engage the Millennial consumer.

COMPETIVE ANALYSIS

COMPETITIVE COMPARISON LEVI’S

• • • • •

Price: $54-$69.50 Styles: Basic fits and washes, shorts Distribution: Macy’s Kohls, JcPenney, levis.com Size range: Non-plus size—0-18. Plus—16W-24W Features: Special fits—defined waist or fuller

waist. Promises to “smooth and enhance your shape”

LANE BRYANT

• • • • •

Price: $59.95-$138 Styles: Basic styles and novelty styles Distribution: Lane Bryant stores and website Size range: 14W-28W Features: Genius Fit—“Jeans stay true to your fit and never stretch out” Tighter Tummy Technology—“T2’s tummy taming panels and hidden elastic waistband give each pair a flat-out fabulous fit” 7th & Lane and Melissa McCarthy Seven7 are higher priced options

Overall very diverse assortment of styles and options.

MARINA RINALDI

• Price: $315-$370 • Styles: Many skinny jeans, jeggings and

one trouser style • Distribution: Marina Rinaldi stores, Bloomingdales, Neiman Marcus • Size range: 14-24 • Features: One of the only luxury plus brands; owned by Max Mara; very small Vselection of jeans in mostly outdated washes

CJ BY COOKIE JOHNSON

• Price: $108-$225 • Styles: Basic and fashion styles, prints, skirts • Distribution: Nordstrom, HSN,

Neiman Marcus • Size range: Non-plus size: 20-18. Plus: 14W-24W • Features:“Versatile fit for women with real bodies”; #JeansThatLoveYou

NOT YOUR DAUGHTER’S JEANS

• Price: $110-$134 • Styles: Basic and novelty styles and washes • Distribution: Dillards, Nordstrom, Bloomingdales, NYDJ website • Size range: 00-16 • Features: “Revolution in slimming technology” Lift Tuck® Technology promises to make the wearer look and feel a size smaller; targeted to Baby Boomers

MIRACLEBODY BY MIRACLESUIT

• • • • •

Price: $72-$124 Styles: Basic styles and washes Distribution: Macy’s, miraclebody.com Size range: 2-16 Features: Tummy control panels; targeted to Baby Boomers

COMPETITIVE COMPARISON SPANX

VO X

• Price: $118-$178 • Styles: Basic styles and washes—mainly skinny

jeans and jeggings • Distribution: Bloomingdales, Belk, Bergdorf Goodman, spanx.com • Size range: 0-14 • Features: Cone Denim, shaping technology that targets the stomach

VOX

• Price: $165-$225 • Styles: Basic styles, washes, fashion styles,

innovative fabricS • Distribution: Nordstrom (year one), Neiman Marcus, vox.com (year two) • Size range: 10-24 • Cone S-Gene stretch denim; fit specifically for hourglass and pear shapes; product assortment includes basic styles and fashion pieces; luxury branding; targeted to Millennials.

VOX COMPETITIVE EDGE

• Provide high-quality, fit specific denim to an

underserved customer • Offer the latest trends and fashionable styles in both straight and plus sizes • Use the latest stretch denim technology to flatter the wearer’s curves without stretching out • Leverage understanding of Millennial customer in order to create a sense of community and a two-way, mutual relationship with customers

swot analysis

Strengths

Weaknessess

• Focus on fit for underserved consumers • High level of quality control—fabrics are sourced from the leader in US denim production. Garments are produced in the US to further maintain quality control

• New brand in very competitive retail landscape • Small retail footprint • Lack of resources compared to larger competitors

• Sales and marketing do not separate plus size consumer from straight sizes—this is what plus size consumers prefer

• Domestic sourcing and manufacturing have

• Domestic sourcing and manufacturing is more expensive and has limited capacity shorter lead times

shorter lead times

VOX Opportunities

Threats

• Burgeoning and underserved plus size market

• Fast fashion competition offering trendier, cheaper styles (Sacks, 2015)

• Hourglass shapes are typically underserved by fashion brands

• Malls struggling as consumers are shopping online more frequently (Sacks, 2015).

• Millennials renewed interest in denim jeans (“Denim Industry Encouraged by Millennials,” 2015)

• Athleisure taking denim marketshare (“Jeans in the US,” 2015)

• Made-to-order, custom fit products

• Slowdown of US economic recovery or economic decline • TPP and other freetrade agreements putting pressure on US suppliers

TARGET MARKET

TARGET MARKET MILLENNIAL INFLUENCE

The Millennial generation, according to Howells (2013), is “the largest generation with the greatest combined purchasing power in history (2.45 trillion worldwide in 2015), represents the majority of Vox’s customers. The generation is made up of true “digital natives” and their spending habits, brand preferences and values differ greatly from previous generations, therefore it is essential to properly understand their motivations. Some key considerations: • Millennials tend to engage deeply with brands through social media because they want to buy what their social networks buy. A recent survey reported that over 3/4 of millennials want the same “clothes, cars and technological gadgets as their friends.” (Cussen, 2015). • Reciprocity—Millennials prefer a two-way, engaging dialogue with brands rather than a hard sell. It is essential that brands listen and incorporate Millennial feedback, and quickly respond to comments made on social media (Barton, Koslow, & Beauchamp, 2014). • Brand reputation—According to the Boston Consulting Group (2014), Millennials identify with brands more deeply than previous generations. This is especially true of brands that convey authenticity and / or craftsmanship—two very important brand attributes for Millennials (Lutz, 2013). In fact, 40% of Millennials report they would be willing to pay more for a brand that “reflected the image they wished to convey about themselves.” (Barton, Koslow, & Beauchamp, 2014).

• They trust and prefer user generated content (UGC). Millennials trust media generated by peers 40% more than traditional media and find UGC 35% more memorable than other media (Social Influence: Marketing’s NEW Frontier, 2014). • Plus Millennials—have more enthusiasm for clothes shopping than other generations. According to a survey conducted by the Cotton Lifestyle Monitor (2015) , 71% of plus size Millennials “love or enjoy” clothes shopping compared to 54% of plus size non-Millennials.

DEMOGRAPHICS The Vox customer’s demographic profile is a female ages 2544, who is well-educated with a moderate to high income. She lives in a progressive city and works in a creative professional job. Most notably, she is curvy—no matter her size. She is either pear-shaped or hourglass shaped. Both of these body types struggle to find pants and skirts that fit. More than half of Vox’s customers are size 14 and above.

PSYCHOGRAPHICS The Vox customer is a successful, sophisticated woman with high self-esteem. She loves fashion and seeks clothes that will flatter her curvy figure as well as express her high level of taste and personality. She is an extremely engaged consumer and spends a relatively high proportion of her income on fashion and social activities. She is willing to go well beyond her budget to purchase clothing that flatters her figure.

CUSTOMER SEGMENTATION

the style maven

CUSTOMER SEGMENTATION

the yummy mummy

CUSTOMER SEGMENTATION

the young urban professional

marketing mix

marketing mix PRODUCT

The initial launch will consist of three basic styles that will be repeated season after season in different fabrics and finishes. Five novelty styles that reflect the latest trends will also be included in the launch. All of the styles will be produced using Cone Denim’s patented SGENE stretch denim and will be offered in dark indigo, classic indigo, sky blue, gray and black color ways. This will provide the right mix of basic and trendy pieces to satisfy Vox’s customer segments while encouraging them to make repeat purchases.

FUTURE PRODUCTS AND SERVICES • Year Two

• vox.com will expand to e-commerce • Retail footprint will expand to a total of 40 Nordstrom doors • New major retail partners will be added—targets include Neiman Marcus, Bloomingdales and Net-a-Porter

• More denim jean styles, washes and finishes will be added that “reflected the image they wished to convey about themselves.” (Barton, Koslow, & Beauchamp, 2014).

Year Three

• Vox brick and mortar stores will be opened in Brooklyn and Chicago

• The product line will expand beyond jeans to include non-

denim pants and skirts, dresses and tops. These new products will also be fit specifically for hourglass shaped women.

• Body scanning technology will be used to offer a new line

of custom fitted jeans that will be sold at a higher price point than the off-the-rack products. This new product will be available at the company’s brick and mortar stores and provide the opportunity for women to own super-premium custom-fitted, made to measure jeans.

VOX STELLA $185

HELENA $190

AGNES $180

EVA $225

NAOMI $195

YASMEEN $225

CLAUDIA $165

ELLE $195

PRICE

Voxâ&#x20AC;&#x2122;s price points are higher than its mass market competitors, but they are not the highest (Marina Rinaldi). Findings from research conducted suggest that the target customers will be willing to pay a premium price for well fitting jeans of a high quality.point than the off-the-rack products. This new product will be available at the companyâ&#x20AC;&#x2122;s brick and mortar stores and provide the opportunity for women to own super-premium custom-fitted, made to measure jeans. 49

marketing mix DIGITAL STRATEGY

Vox App—Will allow users shop, submit UGC, engage with digital signage Nordstrom stores, receive promotions and track loyalty points. The first time a user uploads photos of themselves with the app, a discount coupon will be sent to the user. The app will also feature a loyalty program that will offer a discount for every sixth pair of jeans purchased. This will appeal to the 97% of Millennials who claim that receiving discounts will cause them to shop with a retailer and the 43% of noted they would be more likely to shop at a store that offered a rewards program (Forzley, 2013). Social Media Presence--on Facebook, Twitter, Instagram, Pinterest and SnapChat--Social media will be a key part of the launch campaign because the target customer is a heavy user of social media. For example, 71% of Millennials check social media once a day which is more than they watch TV (60%) or even text and chat (49%) (Bennett, 2014). All social media communication will be designed to encourage maximum interaction with customers, which will in turn increase the amount of user generated content (UGC). The campaign will also tap into tap into the Millennials’ attitudes surrounding brand’s relationships to their own self image. For example, 40% of Millennials surveyed indicated they would pay extra for a brand that reflected the image they wished to convey about themselves. (“How Millennials are Changing the Face of Marketing Forever,” 2014).

PROMOTION The focus of year one’s social media campaign will be encouraging customers to post pictures of themselves wearing Vox jeans with the hashtag #MyVox. The goal of this campaign is to raise brand awareness and create a sense of community by encouraging participants to embrace their curves with confidence. Strategies by social media channel include:

• Facebook—will be a key place for customer’s to interact with

the brand. Posts will be seek engagement, rather than merely selling to the customer. The platform will also be incentivize users to like the Facebook page in order to receive an exclusive coupon for Vox jeans at Nordstrom.

• Twitter—is one of the most important platforms for creating an active, two-way dialogue with customers. Vox will create a clear and consistent voice and respond to each tweet it receives.

• Instagram—this platform offers more engagement than

Facebook and Twitter and will be used to showcase behindthe-scenes looks at photoshoots, video clips and inspirational quotes

• Pinterest—this platform has a great deal of potential for

encouraging users to share Vox’s images because many users search for curvy or plus fashion related pins. The platform will also be used for a “Pin to Win” contest. Entrants will re-pin images from vox.com or its social media channels in order to be entered to win Vox merchandise.

• Snapchat—Snapchat is an excellent way to offer insider looks at brands as well as exclusive peeks at new products. Vox will use the platform to offer behind the scenes looks at the Ava DuVernay photoshoot for Nordstrom and also to create anticipation for the launch of new styles by releasing ‘snaps’ of them prior to their launch.

marketing mix Social Media Ads—Sidebar ads and sponsored posts on Instagram, Facebook and Twitter. Digital Ads--In addition to social media, ads will be placed on Millennial’s most frequently visited websites. Frequency and spend will be based on the site’s Millennial readership and target market interest. Digital Video--For use on website, social media, Periscope, YouTube site, and sponsored ads shown at the start of YouTube videos and online TV programs. Videos will feature customers and fashion showing how they incorporate Vox denim into their own personal style. The videos will be set to the emerging artist’s music. Millennials have a strong preference for watching online videos—up to 2 hours and 15 minutes per week (Blattberg, 2014).

Millennial website readership. Source Digiday, 2014

PROMOTION Fashion Blogs--Fashion and beauty bloggers with high readerships who specialize in curvy and / or plus size fashion will be sent product in order to help promote Vox in the curvy fashion bogging community. This is because 33% of millennials rely mostly on blogs before they make a purchase because they

feel blogs are more trustworthy and authentic (Schawbel, 2015).

Blogs to be targeted: • Gabifresh—known for telling readers how to dress for their bodies. Featured in Glamour, Teen Vogue, InStyle, The New York Times, Seventeen, and Cosmopolitan, and has have contributed to Vogue.it, Refinery29, xoJane, Glamour.com and Essence.com. • Garner Style—The blog’s author published The Curvy Girl’s Guide to Style and has been featured on Oprah.com, and in the New York Times and Elle Magazine. • Jay Miranda—has been featured in Glamour, Marie Claire, Grazia, GLAM, and Cosmo. • Girl with Curves—one of the most influential plus size bloggers. Has been featured in Cosmopolitan, Forbes, Buzzfeed, Bustle, Marie Claire and People Style Watch. • Maryam Maquillage—Currently one of the most influential beauty bloggers—she is frequently featured as an artist by Lancôme. Maquillage is also known for her extreme hourglass figure and routinely posts her fashion looks.

instagram post VOX voxdenim

voxdenim @MsGenevieve rocking her Vox jeans. #myvox Show the world How You Do Denim.

marketing mix TRADITIONAL STRATEGY

Sales promotion—as a premium product, sales promotions will be kept to a minimum. Rather than offering regular sales, a loyalty program will be implemented which will also encourage the feeling of community among Vox customers. 77% of Millennials participate in loyalty programs and 78% of Millennials are more likely to purchase from brands with loyalty programs (Zoeller, 2014). The loyalty program will give members an early chance to shop new product launches, a discount on every 6th pair of jeans purchased and access to Vox’s 15% one day holiday sale. Public Relations—Public relations campaign focused on obtaining placements in key magazines, blogs and news / entertainment programs. PR is important to the Vox campaign because the target market values and trusts the information they read in their favorite magazines and blogs Print advertising—Vox will partner with Nordstrom on two cooperative print ads per year. The ads will feature Ava DuVernay, the Oscar nominated director of Selma.

PEOPLE

Vox prides itself on listening to its customers and providing the highest level of customer service possible. Employees will go through a two week training program that will include product knowledge and customer service policies.

PLACE

Vox will initially launch selling though its eCommerce website,15 Nordstrom locations and select specialty boutiques. Keeping the initial launch small will allow the brand to focus on customer feedback and communication with salespeople. Nordstrom was chosen as the exclusive major retail partner because of their commitment to customer service. After year one, Vox will expand to more Nordstrom locations as well as new retail targets such as Bloomingdales, Neiman Marcus and net-a-porter. During years two and three, Vox will open two brick and mortar stores in Brooklyn and San Francisco.

marketing mix PACKAGING

Visual elements will be used to consistently convey a luxury feel and to reflect the quality and craftsmanship of the Vox brand. Design elements will be clean, fresh and modern. Retail touchpoint will be modern and inviting.

VOX S-Curve Fit Do you often try on pants that fit well at the hip but gap at the waist? This fit is contoured at the waist and offers more room through the seat and thighs, hugging your curves to keep you looking and feeling great. These jeans are made with premium USA-made denim that employs patented stretch technology that hugs your curves without stretching and sagging.

denim for curves

marketing mix POSITIONING

Vox will differentiate itself from the competition by marketing to the Millennial customer while also focusing on fit, craftsmanship and premium fabrics. This is because a flattering fit can be achieved without the gimmicks of slimming technology; it can simply be achieved by wearing the right size and shape for one’s body. This tactic will appeal to Millennial’s preference for authenticity and craftsmanship. Another important positioning element is to encourage the customer to feel like she is part of the brand. This is because much of Vox’s target market has felt marginalized by fashion. Customers will be encouraged to participate on the company’s blog and social media by posting pictures of themselves wearing Vox jeans. Customer focus groups will also be used to get feedback

HIGH PRICE

TRENDY

CLASSIC

VOX

LOW PRICE

fi n a n c i al p l an

sales forecast Year one sales are estimated to be $873,500. During year two, e-commerce will be expanded to the companyâ&#x20AC;&#x2122;s website, vox.com its retail footprint will be expanded to include 25 more Nordstrom stores and three more major retail partners for a total of 150 doors. Year two sales are projected at $1.7 million.

GLOSSARY Apple shape: A body type characterized by a greater chest circumference in comparison to hip circumference. Waist is not defined. Weight is gained in abdomen and arm. Hourglass shape: A body type characterized by similar hip and chest circumference with a markedly defined waist. Wait is gained in upper body, hips and rear before affecting waist and stomach Ruler or rectangle shape: A body type characterized by a close to equal hip and chest circumferences. Waist is not defined. Weight is evenly gained. Pear shape : A body type characterized by a greater hip circumference in comparison to chest circumference. Wait is gained in hips, rear and thighs Plus-size: The US Fashion industry considers women over size 12 to be plus-size. The plus-size category in the US generally ranges from size 14-24. Straight size: US womenâ&#x20AC;&#x2122;s sizes ranging from 0-12.

BIOGRAPHICAL STATEMENT Dominica Baird received her BFA in Fashion Design in 2002 from the Savannah College of Art and Design. Upon graduating, she moved to New York where she worked as a fashion designer at Etcetera and at Elie Tahari’s Tahari by ASL division. She also served as a marketing consultant for L’Oreal and Coty. Her work at L’Oreal included the launch of the Shu Uemura Art of Hair, the relaunch of Redken’s top selling haircare range, All Soft, new business research and trend forecasting. She also launched a beauty brand, Indulge Beauty, that was featured in Oprah Magazine, Harper’s Bazaar and Elle. Currently residing in Charleston, SC, she is working towards an MA in Luxury Fashion Management from the Savannah College of Art and Design, while concurrently serving as the academic director of fashion and teaching fashion design and marketing courses at the Art Institute of Charleston.

references