IED Level 6 Marketing and Communication Business Plan Chiara Ciolli Do Yeon Stacey Park Maria Teresa Francville
EXECUTIVE SUMMARY The following report was undertaken in order to portray the potential Ter Et Bantine had in implementing a knitwear collection within their main collection to penetrate successfully into the Scandinavian market. Ter et bantine is currently absent in the Scandinavian market which shows to be a key future upcoming fashion market with potential in luxury sales. Knit wear is an essential product category in fashion especially in colder countries. This report identifies the gap of offering luxury “Made In Italy� Knit garments with the classic look for everyday wear among luxury shoppers desiring warm, quality and the touch of fashion in a mature chic way. By introducing knitwear, Ter et Bantine will not only penetrate into a new market but be the pioneers of Italian made Nordic implemented luxury designed basic quality knit wear in the niche segment. Italy has a heritage of high quality reputation in producing knitwear. Ter et Bantine an Italian born brand can embrace this heritage and continue producing and penetrating the important Italian made luxury knitwear worldwide beginning with their currently absent market, Scandinavia.
TABLE OF CONTENTS Introduction of company 6 Current positionings 8 Current competitors 10 Global presence 12 Market analysis 13 - Scandinavia 14 - Knitwear 20 SWOT analysis 22 New competitors 24 The idea 28 - Objectives New positioning 29 New consumer profile 30 Trend analysis 32 Product 34 Price 38 Place 40 Promotion 42 Financials 45 Bibliography 48
TER ET BANTINE BUSINESS ASSET: TER ET BANTINE is an Italian brand established in 1992 by the designer Manuela Arcari and David Agus old owners of the GFM spa, company specialised in the clothing production, directly involved in the production of part of the brand’s collection. The headquarter is in Granarolo Faentino, Ravenna (Italy). The internal asset of the brand is moved starting from 2009 when the GFM spa and consequently TER ET BANTINE, has been taken under control of the Fondo Opera Italia group through the direction of Opera S.G.R. main stakeholder with the acquisition of the 80% of the company. Recently Manuela Arcari has left the creative helm of the company and David Agus his role as brand sale manager. Stefano Ferro will be the new CEO while Fabio Cavana the new sale manager.
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IED Level 6 Marketing and Communication - Business Plan
BRAND DNA and STRENGTH: TER ET BANTINE always follows the concept of the minimalism directly inspired by the designer Manuela Arcuri. In all her interview she stressed the point out about the fact that the sensuality of a woman is not given by showing a naked body. “Gaps need to be fulfilled by thoughts not by eyes� (Manuela Arcari). From this point of view the creation of a brand that shows its simplicity made by a concrete and pure style. The aim is to create a wearable daily line of clothing. The result is a game of cuts, shapes, volumes and monochromatic fabrics to confer a sense of sophistication. The cure of detail is another aspect that characterised the brand. The product maintain during the time a high quality speaking about the choice of fabrics almost all made in Italy or from the Eastern Europe.
CURRENT CONSUMERS PROFILE The target consumer for TER ET BANTINE is a sophisticated woman with a touch of intellectualism that can be resumed in all the aspects of her life. For sure she is a worker with a high position or with family revenues; a high education that create interest on her for niche products. She is not an out standing person, she create her image on a minimalistic classy style. She probably wants to be noticed for her anti conventional look and TER ET BANTINE is the perfect brand to create this concept. She has eyes for beauty and perfection that in fashion can translate in: attention for the quality; attention to services (considering that she is well at dispose to spend, she pretend to have back attention). Probably she would buy as well brands such as Jil Sander, Prada, Marni. Drome. Following the 2014/2015 trends, we can define her as a neo- classic consumer.
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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POSITIONINGS BRAND AND PRODUCT POSITIONING
Niche
Luxury
Bridge
Fast Fashion
The analysis of the brand today in terms of awareness and distribution is totally niche. As we mentioned for the current consumers, the brand is known and understood by a small elite or from people of the fashion field. Consequently the distribution is made only through a small retail system that includes few stores which is in line with the brand’s concept. The product is niche considering style and materials. The style is obviously particular, made of cuts and volumes. Those aspects confer that classy sophisticated taste that is not made for anyone. Fabrics, sewing and all the production processes are so detailed and cared to add the sense of niche. Fabrics used are only from top quality Italian suppliers and Eastern suppliers
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IED Level 6 Marketing and Communication - Business Plan
PRICE POSITIONING
Niche
Luxury
Bridge
Fast Fashion
The price is considered more as a lower luxury. The price level is one of the strength for the brand. Even if the product is perceived as niche, it is more affordable respecting competitors even if the quality is high. This is probably due to the fact that the brand produces part of the production and all samples in the internal laboratory and this could cut the total costs and as a reflection even on the retail prices.
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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POSITIONING AMONG CURRENT COMPETITORS Ter et Bantine Knit wear will be positioned higher than their main line. We are targeting consumers who choose to wear quality knit basics for functionality and clean style. We want to compete against well known luxury knit brands like Malo, by positioning among well known niche brands like Jil Sander.
Niche
Luxury
Bridge
Fast Fashion
The range of comparison between brands was between 0 and 5. 5 being the highest mark.
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IED Level 6 Marketing and Communication - Business Plan
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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GLOBAL PRESENCE Ter et Bantine has an strong presence out of Italy. Today the 80% of the brand’s turnover is made from the international clients.
International Retail Network - selective distribution -
As shown above Ter et Bantine is present in all regions besides the Scandinavian region. Ter et Bantine should focus on penetrating into this market with a desirable collection of this region though still in line with the brand’s DNA and image.
Besides retail formats of sales they are avaliable on the following websites below: - The corner - Matches Fashion - Yoox - Shopalike - Lindelepalais - Guyafirenze - Farfetch
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IED Level 6 Marketing and Communication - Business Plan
MARKET ANALYSIS Deeper analysis of the major region in which Ter et Bantine is missing. Scandinavia is an upcoming important fashion region fashion brands should consider.
“They say that the best furniture and clothing design from the ‘50s & ‘60s is Scandinavian or Milanese.” - Christian Lacroix (BrainyQuote, 2015)
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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SCANDINAVIA Understanding the Luxury Apparel Market. Europe remained as the most potential market to enter as a niche brand. The luxury apparel demand in the European market has grown in the last 10 years. This indicates the importance of this industry in the global economy and how the European market represents a potential space to spread the presence of a luxury brand. In fact, the household wealth by region in 2013/2014 recorded the highest growth % in Europe.
(Suisse, 2014)
(Suisse, 2014)
7 out of the top 10 where European countries in which 3 out of the 7 were Scandinavian countries, showing the importance of that region within the European region.
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IED Level 6 Marketing and Communication - Business Plan
Moreover, Forbes recently ranked the World’s 10 Most Profitable Countries for business From the 10 countries ranked, 7 were in Europe and in which 4 were in Scandinavia: 1. Netherlands 2. Norway 3. Finland 4. Sweden 5. Denmark 6. Switzerland 7. Ireland 4 out of 7 countries clearly indicates the potential of profitabiltiy of this region. And thus, shows potential for Ter et Bantine to enter.
The Scandinavian apparel retail market had a total market value of $22.3 billion in 2011 (€21 billion) (Datamonitor.com, 2011) Futhermore, with so much attention on Northern Europe these days, the success of designers from this region grows each year. The influence of minimalism is evident. Scandinavian design has always had a strong hold over the global mindset. With its minimalistic style and emphasis on functionality and sustainability, it is a formula that has worked its magic in many fields, particularly in the fashion industry. Veronica B. Vallenes, a Norwegian designer based in Oslo and Copenhagen, attributes this success to “Its elegant touch, clean lines and timeless design. I also believe Scandinavia has a history of hard working people.” (Hashemi, 2014) Therefore, the Scandinavian region was chosen to target penetrating Ter et Bantine. As this region was not only financially potential but geographically apart of Europe and the heart of fashion cities. The main cities in Scandinavia were holding fashion weeks with fashion shows in the recent years. Portraying the importance of luxury fashion in those cities. Moreover, the countries within Scandinavia are all similar to the key fashion contries in West Europe, in terms of geographical positioning, cultural similarities and economic competitiveness with a strong monetary stability, higher GDP per capita, incentives for business, open global trade and relatively flexible hiring and dismissal regulations; all key elements make those countries the most competitive and flexible to enter. The key cities in Scandinavia are: Stockholm, Olso and Copenhagen. They all hold their own fashion weeks as well as trade fairs. These cities are ellborated in depth in the distribution strategy in order to find the best cities to opening a shop in shop as the first step of penetration. The following pages shows the potential of the 3 main fashion related countries of Scandinavia: Sweden, Norway and Denmark. All three countries will be targeted firstly concentrating in the order of the most advantageous market.
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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SCANDINAVIA Overall most potential luxuy apparel market.
Europe
Currently non penetrated market region.
Scandinavia
Sweden
Norway
The 3 most fashion related countries in Scandinavia.
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IED Level 6 Marketing and Communication - Business Plan
Denmark
Sweden: Swedish Fashion Council co-ordinates Stockholm Fashion Week four times a year. Various activities are presented in a program showing where and when trade fairs, shows and other events will take place. (Notjustalabel.com, 2015) Ostentatious displays of wealth continue to endure a great deal of scepticism in Sweden. The country, similar to its fellow Scandinavian neighbours, prides itself on being the home of modesty and equality, which has consequently led to flamboyant displays of wealth being frowned upon. As a result, Swedish consumers happily invest a great deal in high-quality and heritage items, whilst avoiding flashier products. (Euromonitor.com, 2014) Moreover, Luxury goods in Sweden is projected to continue to exhibit high and stable value growth at constant 2014 prices. An improving economic landscape, rising disposable incomes and stronger consumer confidence will all contribute to this development. In addition, everyday luxury and social responsibility have become an integral part of Swedish society, resulting in consumers seeking to improve an already high standard of living. (Euromonitor.com, 2014) The Swedish apparel retail industry had total revenues of $9.4bn in 2013, representing a compound annual growth rate (CAGR) of 0.9% between 2009 and 2013. The womenswear segment was the industry’s most lucrative in 2013, with total revenues of $5.1bn, equivalent to 54.3% of the industry’s overall value. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 2.4% for the five-year period 2013 - 2018, which is expected to drive the industry to a value of $10.6bn by the end of 2018. (Marketresearch.com, 2015)
Norway: The overall retail industry in Norway is expected to continue to increase in the forecast period, with a stronger current value CAGR than during the review period. Mixed retailers is expected to increase the most, followed by apparel and footwear specialist retailers, health and beauty specialist retailers and discounters. The weakest performance is expected by independent small grocers, which is expected to see a negative CAGR during the forecast period. (Euromonitor.com, 2014) Apparel and footwear in Norway recorded stronger current value sales in 2013 than during its previous year. The Norwegian economy continued to perform well, increasing consumer confidence in their finances and encouraging spending more on apparel and footwear. The wider variety of apparel and footwear specialist retailers makes it easier for consumers to shop at their convenience. Moreover, the apparel and footwear in Norway is expected to continue to register a stronger CAGR than during the review period. This strong growth is the result of the increase in new apparel specialist retailers in the main cities in Norway and increasing their local presence. The economy is expected to perform well, with low unemployment, low interest rates and increased salaries. All of these economic factors will play an important role in boosting consumers’ confidence and encourage them to shop more for apparel and footwear. Ultimately, Norigian consumers were focusing on buying high-quality products in almost all apparel categories. (Euromonitor.com, 2014)
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IED Level 6 Marketing and Communication - Business Plan
Denmark: The Danish fashion industry is booming like never before. Successful designers, international fashion fairs and two annual fashion weeks have rightfully put Copenhagen and Denmark on the fashion map of Europe. Some even speak of Copenhagen as the fifth European fashion enclave. (Denmark.dk, 2015) International studies showed that Danish consumers are the most optimistic in the EU, which was supported by strong growth of the annual Christmas shopping. Christmas is in winter in which knitwear will be consumed even more. (Euromonitor.com, 2014) Moreover, it is predicted that demand for better quality clothing and footwear is expected to rise. Over the forecast period, consumer expenditure on clothing is projected to increase by nearly 15% (in real terms) to reach DKr36.7 billion in 2020. Thus, the future expenditure on clothing and footwear is expected to grow. (Vitold, 2012) The womenswear segment was the industry’s most lucrative in 2013, with total revenues of $3.0bn, equivalent to 53.3% of the industry’s overall value.The performance of the industry is forecast to accelerate, with an anticipated CAGR of 1.9% for the five-year period 2013 - 2018, which is expected to drive the industry to a value of $6.1bn by the end of 2018. (Datamonitor. com, 2013) Copenhagen International Fashion Fair(trade only) has over 1000 fashion suppliers representing a total of 2500 international brand name collections in the region’s largest exhibition center, Bella Center. Here you will find the more established, larger scale traders’ show. Gallery is an exclusive, design fashion, who are meant to entice an expected 15.000 international buyers to Copenhagen. It takes place in Forum Copenhagen and will include 125 of the leading Scandinavian design brands including Nordic names such as Mads Nørgaard, Malene Birger, Rützou, Ivan Grundahl, Samsøe&Samsøe and Designers Remix. VISION is known to be among the most trendsetting and innovative fashion fairs in Europe. With its location in central Copenhagen they present the “crème de la crème” of Scandinavian design mixed with a selection of international designers from all over the world. Vision has achieved its international recognition because of its focus on the small and upcoming designers, and is therefore always an exciting and unpredictable fair to visit. Vision lets the small and un-established designers take center stage and are therefore the pivotal point for tomorrows fashion trends. Designers Nest (patron is HRH Crown Princess Mary) is an integrated part of Vision Fair, which, at no cost, gives design students and newly educated designers from Danish and Scandinavian Design Schools the possibility of showing their work and talent in a professional and international fashion forum. As new trends emerge on the street and are spotted by people on the streets the fair is open to all and all parts involved, designers, artists, brands musicians and visitors are encouraged to participate. DANSK Daily is the first paper to cover the Danish fashion week. It will appear in English as a daily newspaper during the Copenhagen Fashion Week for the first time in August 2007. DANSK Daily is written and printed overnight to appear on the following morning to give buyers, press, those interested in fashion and other participants in the fashion week an idea about the shows, designer and company portraits and event news. (Visitcopenhagen, 2015)
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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KNITWEAR MARKET Knitwear is seen on many catwalks as carry over pieces, according to google trends it is a search made frequently every fashion season. Moreover, Knit wear has its own category on all major e commerce sites - showing the importance of the need to put it in as a separate category for searches.
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IED Level 6 Marketing and Communication - Business Plan
Observing the google trends chart of the term ‘knit wear’ the interest over time is forever fluctuating with peaks twice a year. Indicating that knit is not just popular for winter but it is strongly fashion related in terms of fashion seasons and again linked with the continuous presence of knitwear on catwalks. Therefore, knit wear has the potential to sell all year round.
In Paris in February from the 10th to 12th, for the first time at Première Vision, Knitwear Solutions debuts a special area focused to Italian knitwear of highquality: Knit Italy. The project, curated together with Marco Sanarelli, CEO of Mely’s Knitwear - aims to showcase the extraordinary know how of selected companies that still believe in 100% Made in Italy production. And they understood the importance to showcase their skill to an international and qualified audience. Italy remains the home for Knitwear with a multifaceted panorama of companies located between North and Center. This area produces almost 90% of the whole international knitwear production signed by brands and designers that are all visiting Première Vision to find inspiration, capturing future trends. Many Italian companies have long histories (heritage) with a very high quality products which are well preserved in their archives little known and not accessible. Exclusively for Première Vision - Knitwear Solutions, it will be displayed a selection of knitwear items outstanding for their style or technical execution which illustrates the italian savoir faire. A way to highlight the excellence and research of the best Italian knitwear houses and to give further creative imputs to all the visitors of Première Vision. (Maglifico.com, 2015) Moreover, in this journey through knitwear Italy is playing a crucial role since almost the 80% of worldwide knitwear is produced in throughout several Italian regions: a geography that is split into various areas, which may be referred to as truly highly specialised districts. From luxury maisons, like Chanel to avant-garde designer like Rick Ownes or Gareth Pugh, everybody is producing the most sophisticated knits in Italy. From a historical point of view, Lombardy and Piedmont have played a major role, Veneto is the region with a tradition of a medium-high knitwear product. Thus, understanding the importance of the knit market potential and its long term guarantee of consumption and forever arising trend and considering that Ter et Bantine is an Italian rooted brand with a representation of ‘Made in Italy’ by producing a knitwear collection in Italy where knitwear is strongly produced with qualified experience and knowhow. The knit collection should add more value as an Italian brand offering a valuable Italian orientated collection. Additionally benefiting in general the awareness of fine knit wear made in Italy, in which Ter et Bantine can pioneer in Scandinavia. Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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SWOT ANALYSIS
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STRENGTH:
WEAKNESSES
- Internal production - Internal showroom - Quality raw material - Loyal relationship with retailers - Direct control of the stock and distribution - Flexible policy with retailer and final consumer
- No brand image - Awareness of the brand - Few retailers - No communication - E-commerce - Slow in adapting technological advantages vs competitors
OPPORTUNITIES
THREATS
- Create a product extension or a new line to re-launch the brand - Use communication tools to create an image in the mind of the consumer - Increasing of the knit wear request inside collections to enlarge the market abroad where - Open a mono-brand store that includes all lines of the company: to let the mass knows about them
- Competitors are stronger in this market segment
IED Level 6 Marketing and Communication - Business Plan
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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NEW COMPETITORS THE ROW BRAND PROFILE The Row is an America luxury brand that was established in 2006 by Ashley and Mary- Kate Oslen. The label reflects elegance combined with huge design proprieties. The style is minimal chic and the target consumer of interest could be in line with Ter et Bantine. Actually the brand is considered as niche for the awareness that it gains in the fashion market and even for the product itself Turn over: $ 12 Million for 2013 (₏11.3 Million) (News, 2014). Product: Woman’ s total look brand, combined Ready to Wear and knitwear. The production is mainly based in New York, and a small proportion in Los Angeles. The knitwear is manufactured in Italy. Even if the brand wants to perceive a total American approach, the quality and capabilities for the production of knitwear are not high in USA, this is the reason why the decide to move it in Italy, still recognised as the main manufacturer worldwide. Price: The policy of the brand regarding the product has been to introduce more high luxury materials, especially cashmere for knitwear, the consequence have been a general increased of prices with an overall 25%. (News, 2014) Distribution: 1 mono brand store placed in Los Angeles Several retailer stores worldwide E- commerce platform (Yoox, 2015) Communication: Press Office in house; new president for the communication of the brand is Iana dos Reis Nunes, high name of the luxury fashion communication. The brand is actually putting effort in being active with a diffuse communication strategy. Their communication has a strong approach in USA where the brand is more popular, through press and events (catwalk; and in store events). VIP play an important role as mirror of the brand due to fact that designers had a past in acting (Fashion time, 2013)
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IED Level 6 Marketing and Communication - Business Plan
JIL SANDER BRAND PROFILE The brands was created by the German designer Jil Sander. She developed her work being in constant relationship with Italy, she created her headquarter in Milan. Long and in tremble was and is the story between the designer and her brand. The first time she left the head of it was after that the brand was acquired by the Prada group. She was not agreeing with the business policy of the CEO. Raf Simons was called as first designer, but despite all fashion worker loved his creations but the brand turnover went dangerously down. For this reason the new ownership, the Japanese holding Onward Co, decided to call back Jill Sander in 2013 (Thomas, 2012). Turn over: â‚Ź140 Million for 2013 (Fashion mag, 2014) Product: She has always been defined as the queen of minimalism. She makes her creations with the expression of her life attitude: transparency, coherence and clarity. The result is a style of discipline and rigor where all garments measured to create a conceptual woman without excess. The colours used in full and the combinations of pattern are always geometric in print. Distribution: The showroom is located in Milan and it is the only directly operated store of the brand. The distribution in niche, few mono brand stores in the main city of Europe (Milan, London, Vienna, Paris, Moscow, Munich, Berlin, Dusseldorf, Cologne, Hamburg), Asia and America. Few multi brands store around the world considering a taste not understandable by the mass. Direct E- commerce platform Communication: The brand communicates mainly through traditional press. Recently the brand has collaborated with Uniqlo for a capsule collection that was sold in September 2014. The communication is the reflection of the value of the brand; being minimalist the communication approach needs to follows the same criteria. (Uniqlo, 2014)
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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MAISON MARTINA MARGIELA BRAND PROFILE The homonymous designer Martin Margiela created the brand in 1988 in Belgium. In 1994 the Italian OTB group owned by Renzo Rosso took over the brand. The brand was structured to be a real business with the implementation in designers’ team, in the production (all made in Italy), in the logistic and distribution. The only aspect that has not been touch was the communication. In few years the brand became a luxury company. The knitwear line is included in the Ready to Wear as a complement in the total look. Turnover: 2013: € 82 Million (Third look, 2014) Product: Maison Martin Margiela has created a new assumption of fashion product, taking inspiration from conceptual designers, mainly Japanese. Moreover, the designer created and used new techniques never applied before in the fashion manufactory. Clothing had the same value of a blank canvas to create a proper tailored art. The result is that mixt of cuts, volumes and special fabrics plus cured details that create the image of the product and make it recognisable. The brand has a woman’s line (Artisanal and pret a porter), man’s line, accessories and MM6. Distribution: DOS: The brand has at the moment more or less 50 stores (we can not have certain data because the web site is not available at the moment) in Europe, USA and Asia. There are not franchising in the DOS of MMM. Multi brand stores: The number of them has been increased since the brand has been incorporated by the OTB group. The new distribution policy is different from the past. The brand is now presented in many retail and department stores, even if sometimes they are not in line with the image and the policy of the brand. The brand is strongly present on the web through its own E- Commerce platform, dedicated ones (Yoox, 2015) (Net-a-porte, 2015) and stores’ E- commerce platform. Communication INVISIBILITY: This word is inside the DNA of the brand since it was created. The communication of MMM was based and it is still based on “ absence equals presence” and “the cult of impersonality”. The translation of those have been seen even during the brand’s events, where the head including the face of models were hidden for example. Or in the stores. The Maison has never create a store using visible place, big windows or huge visibility. The brand remains hidden and the consumer looks for it. This invisibility is what became interesting to media.
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IED Level 6 Marketing and Communication - Business Plan
New Competitors Benchmark
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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THE IDEA To integrate a knit wear collection within the main line, based on basic clean cuts that are still in line with the brand identity and offers premium quality. In order to fulfil the demand of luxury consumers for knitwear that offers warmth and fashion content in the Scandinavian region. OBJECTIVES - Increase brand awareness especially in Scandinavia by delivering a strong brand identity with the new knit wear line. - Manage CRM better with the new basic Knitwear line, the consumers should be interested in buying the original collection and knit collection. (Right now the brand is more of an occasional shopping brand CRM is needed) - Ultimately, increase sales and revenue.
NEW STRATEGIC GOALS - To open a shop in shop in the most potentially advantageous location in Scandinavia. - To communicate the new store opening to achieve optimal awareness, interest and publication. - Ultimately, increase sales and revenue in the new location.
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IED Level 6 Marketing and Communication - Business Plan
NEW POSITIONING
Niche
Luxury
Bridge
Fast Fashion
Ter et Bantine remains in the niche market as the awareness is still low and considering the looks, the design and the targeted people Ter et Bantine is best suited in the niche segment as it is today with its original collection. The adaption of producing luxury knit wear should not alter the perception of the brand in a negative way or degrade the position in any way.
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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NEW CONSUMERS Woman between 30 and 54 years old According to Eurisko(2015) my target consumers is called “minimal sophisticate”. The style is clean and minimal. They are mainly trendsetter and less trend follower. Their look is clean, simple but at the same time sophisticated. Their attitude is based on culture and curiosity, they are willing to frequent niche environment mainly based on artist topic such as photography. They are travellers and they frequent mainly the same place around the world even for pleasure than for buying clothing. The adopted brands are the ones with a Japanese taste of with a North European taste. Their attitude results to be as they do not pay attention to the external aspect and outlook but in reality all aspects are the result of extreme cure of details. When they buy they know what they are looking for. They probably have a deep knowledge in fashion considering a huge interest even in details and composition of items. Body care is important for them but if it combined with their lifestyle, including, food.
TARGET’S SHOPPING FASHION BEHAVIOURS WHERE: They prefer to buy in big cities where they can have the best assortment of items. Stores are mainly mono brand stores or concept stores. Usually they are not interested in big brands placed in the main areas of the city. Brands of their interest are usual located in trendy areas more related to an artistic and cool approach (Brera in Milan; Soho in NewYork; St.Germain de prés in Paris). The kind of shopping is independent WHO: Brands they prefer are basic, kept special from particular cuts, materials or fabrics. This is the reason why they approach conceptual brands. This research of particularity is embodied by niche brands, not only in the product but most of all in the distribution approach and in communication, that in most of case have relationship with an artistic world near to this target. Mentioned some names: Maison Martin Margiela; Rick Owens, Ann Demeulemesteer, James Hook, Comme de Garconne, Yoshi Yamamoto. WHAT: They are normally looking for a total look to confer more the idea of their style, so they buy all the merchandising category of brands they like. They buy also particular accessories from those brands that they perceive as an added value to the lifestyle that is a reflection of their mind status. Everything needs to be not excessive or visible. For this reason even the choice of colour is limited. They prefer the black total look and create an image through the use of colour accessories or colour profile for example in shoes or bags. Except the black, white and grey they loves basic and intense colour, such as blue or penicillin, and sometimes they chose a seasonal colour.
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IED Level 6 Marketing and Communication - Business Plan
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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TREND ANALYSIS
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IED Level 6 Marketing and Communication - Business Plan
Colour Pallette Neutral basic colours White Grey Toupe Space Grey Black
Trend colours Mint Green Power Pink Dry Peach Penicillin Mouve
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PRODUCT We are going to realise a knitwear collection to fulfil the Ter et Bantine’s Ready to Wear collection. At the beginning the idea was to create a proper independent line of knitwear, but considering the research regarding the competitors and the costs related to the production of knit garments, the decision has been to develop a conspicuous part of knitwear inside the existing line. Due to that our first objective is to keep core concepts of Ter et Bantine. 1. Made in Italy: This is the essential characteristic that the new line needs to attain in order to maintain the high standard and values that consumers can easily recognise. Made in Italy is symbol of guarantee worldwide and we as a brand have a huge distribution abroad. Moreover especially for the knitwear the Made in Italy is a necessity to portray the highest performance in quality of the materials and on the finishing. As we have seen from the analysis of our competitors in the knitwear segment, their production in totally based in the Italy; The Row based all the production in USA, has anyway decided to produce the knit line in Italy. For those reason we have decide to base our production in Umbria, Italian region known for its high level standards in the production of knitwear. We have taken into consideration even the production in Toscany and Lombardy but based on the final request for manufacturing the same pieces and ascertained that the result is exactly the same we have decided to proceed for the first option. Moreover Umbria is famous for the production and the manufacture of cashmere (Luxury, 2013), one of the precious raw materials, together with mohair that is actually the main yarn used in high fashion (Fashtag, 2014). 2. Quality: This is the other principal aspect for Ter et Bantine. Quality is not only a mirror for designing and tailoring but even in the choice of the raw material. The new line must follow specific features to reach high level of performances. Quality goes in tandem with Made in Italy. All raw materials that we are going to use to keep the high product’s quality are 100% natural yarns of top high quality. The decision is to create a collection that will use mainly pure wool, cashmere, mohair, camel and alpaca combining silk and organic cotton. 3. Sustainability: All products for the new collection need to be in line with the eco and sustainable process. Moreover we have to consider that we are enlarging our market in Denmark, where all the fashion industry are under hard sustainable rules that needs to be followed to better enter in the consumers’ philosophy of that country. Even if the production will be entirely done in Italy, we have to provide that the provenience of that is from industry that are following sustainable procedures and dedicated to NICE. NICE is an association that stands for Nordic Initiative Clean and Ethical (NICE, 2015). As all the NGO provides an ethical and sustainable code for all the Scandinavian countries. The association of Ter et Bantine with this association and the communication of that to the public could improve the interest around the new product and the brand in general.
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IED Level 6 Marketing and Communication - Business Plan
INSPIRATION Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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The other important point to take into consideration is the analysis of the Fall/ Winter collection 2014/ 2015 and the preview of 2015/2016 of each competitors, to understand where they invest more and put more effort in the production, as their choices in their production quantity assortment is the consequence of consumer demand. As we can see from the chat above, we have simplified the scheme dividing the collection in top, bottom and accessories for each competitor. In Tops we included the dresses. As we can see the result of the analysis shows us a huge difference between the two principal categories. Tops are always more than the double of bottoms. Competitors that we have taken into analysis are brands that have knitwear inside their main ready to wear lines; this is the reason behind the low total number of items for each of them. They do not have developed a separate line for knitwear. Considering that our decision is to create a line that we have to include in the existing collection, those are the best competitors to analyse and benchmark in order to develop a perfect line structure, in terms of numbers of pieces. The number of models are the consequence of the decision to realise a capsule collection inside the Ready to Wear line. A normal collection, in the first season, counts around 80/ 100 pieces, but considering that we are going to sell the knit line with the Ready to Wear, we have chosen to realise a collection of 44 pieces through which we can still give the idea of a complete line and moreover we can monitor the proceeding and final result. The final collection will only account 4 bottom models, the reason is that the request from the final consumers is more oriented on tops and the manufacturing process around pants and skirts, is harder and technically more expensive. The number of each model does not equal the same number of SKUs. Sweaters will account for half of the collection as the final consumers are more oriented on sweaters. Sweaters in particular can be able to create a proper style among a total look. On the other side more important items, such has coat, are seen as challenging to be worn daily. Accessories need to be always present, at least for the knitwear. They are the more simple and fast purchase and during the winter they are perceived not only as fashion tools but even as a necessity.
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IED Level 6 Marketing and Communication - Business Plan
4. Style: The style of the collection must confer the same style of the brand, for this reason the general shapes and lines of the knitwear collection will be: clean, minimalistic and conceptual. The main structure of the collection is based on plain fabrics for the light knitwear and more visible and particular manufactures for coats and some fashionable sweaters. The knit line will follow the latest trend that have seen the use of different raw materials in order to confer more volumes. The idea is that main pieces of the collection have to recall the allure of fur. The final touch is given by a soft and fluffy mood. The impression is lightness and irregularity. Fabrics, such as mohair or alpaca will be use to play with the volume while wool and cashmere will be used for the more basic items. For what is regarding trendy pieces of the collection we will provide three models, one dress, one leggings and one turtle neck, with the Nordic pattern that will be helpful for the window display, for the launch of the collection in the Danish market and for the promotion worldwide. Those items have the potential to be purchased in the future by every retailer as the trendy pattern for the knit collection. Hopefully in the future cumulate optimum coverage in a proper way for a niche brand. An example of the kind of Nordic design knit wear is below:
Colours will be the right combination between the Ter et Bantine collection and latest trends for knitwear, even because to make better result the yarns’ processing we prefer lighter colours instead of darker. Sizes will be Italian. So the collection will start from 36 until 46. Considering the general style of the brand they will fit a little smaller than of the normal sizes. Fit. Depending from the different models the fit of the collection will be wide. According to the design and the concept of the different categories plus the latest marke trends we will pass from a tight fit for t-shirt and legging until oversize fit for sweaters and coats.
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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PRICE
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IED Level 6 Marketing and Communication - Business Plan
Our price policy is to keep at the level of the existing line, considering that we want knitwear to be apart of it. We have figured out the right prices looking at our main competitors in the segment; still having approximately 25% less than them; so we are approaching a below market price strategy always being in the niche market. It is important to underline that the knitwear in general has an average price higher than normal line, due to the time and laboratories’ production cost. In addition, as we have said before and as we recap in details in the financial part, we need to produce the knit wear line externally, so the mark up applied to the sell out prices will be higher in respect to the existing line.
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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PLACE The distribution will follow the same flow of the principal line through: - Milan’s showroom - Paris’s showroom - New York’ s agent The other aspect of the distribution will be to enlarge it, based on our prerogative of growth in the international market. In this case Ter et Bantine should invest in opening a source of retail distribution in a potential city in the target region, Scandinavia. In order to communicate the correct brand DNA from the beginning of entering a new market by controlling the point of sale. In Asia it is more convenient to enrol an agent or at a buying office to distribute the brand. They have more detailed database of clients and they work with communication. Since the brand has not a huge awareness. As we said interesting point for us are Scandinavian countries, in line with the concept of the brand in style and taste. Thus, considering that the plan is to combine a massive attach in spreading the visibility of the brand Ter et Bantine, first line and knit line together; we are going to proceed with opening a shop in shop in a Scandinavian country. The potential city of the country was analysed based on the following criteria: - The desire for niche designer knit wear - The cost of rent - The market size of luxury knit wear - The level of fashion activity Based on the analysis of each fashion orientated country under the market research. Copenhagen of Denmark was chosen for the opening of a shop in shop in the luxury department store called ILLUM. ILLUM held brands such as Givenchy, Mulberry that are in the same market segment as Ter et Bantine. Illum is located in an urban area where most wealthy shoppers in Denmark reside and went to shop luxury goods. Recently Karl Lagerfeld opened a corner in ILLUM to display his Karl Lagerfeld collection in which a very few cicties where chosen to display. Indicating the importance and popularity of ILLUM. Moreover, ILLUM has been bought by the Italian department store La Rinascente. La Rinascente has more than 150 years of experience in the operation of department stores and offering the best in fashion, accessories, beauty, home, design and gastronomic delicacies. La Rinascentes objective is to continue the progressive development by investing in infrastructure, people, brands and service.
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SHOP IN SHOP According to data, Danish consumers typically buy their clothes in a wide range of retail venues, including specialist stores and mixed retailers such as department stores. Moreover, one of the biggest problem in the online market- Danish online market has a competitive disadvantage when compared to other EU countries due to the high costs and high VAT (25%) in Denmark. Therefore, a physical store has more profitability in sales over online. (Vitold, 2012) Moreover, store-based retailing has traditionally accounted for the bulk of sales of luxury goods, as consumers purchasing luxury items seek to enhance their purchasing experience with an augmented level of service and quality; therefore internet retailing has not been as prevalent as in other markets. (Euromonitor.com, 2014) This shop in shop will be open in September of 2016 in time with the fashion week and delivery of the fall winter collection. Opening during the fashion week will give the optimal potential of attendence of important people within the fashion industry that are needed to be targeted to successfully communicate the opening of the store.
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PROMOTION Ter et Bantine consumers are readers of luxury magazines such as Vogue. Ter et Bantine will publish campaigns for their new Knitwear collection in the 3 major luxury magazines of Denmark and in the 4 major international luxury magazines sold in Denmark and so that the knitwear campaign can be internationally viewed. The Danish luxury magazines are: Dansk (content similar to Vogue) - Seasonal issues, twice a year Cover (content similar to Elle) - Monthly issue Costume (content similar to Maire claire) - Monthly issue The international luxury magazines are: Vogue Harper’s Bazaar Elle Maire Claire
DANSK portrays fashion and luxury in ever pioneering ways. Intelligent and slick, it addresses the sophisticated international front runners of fashion. Launched in 2002, the unique signature of DANSK continues to break away from ordinary fashion publishing, and remains both original and inventive on the global market. (Danskmagazine, 2015) 42
IED Level 6 Marketing and Communication - Business Plan
Cover is created of people committed to engaged readers. They benchmark themselves to provide their readers with magazines that are of incomparable high quality when it comes to text, images and all the aesthetic expression. The key to success lies among their willingness to work towards (Cover, 2015) perfection.
Costume is the largest and best fashion magazine. You will always find the latest trends and fashion inspiration from both the catwalk and stylish women around the world. You will also find interviews with current designers, actors, singers and other interesting people associated with fashion and (benjamin.dk, 2012) culture.
Annual Press media plan The following media plan was only dedicated to the knitwear campaign. Ter et Bantine will remain advertising in magazines as they are elsewehere. Denmark would just be an additional country. The publishing of the campaign will be concentrated on the months of February, March, August and September situating the campaigns in premium locations as we are a niche brand representing a premium market. Our use of formatting was ‘single page’ as we wanted to advertise in all chosen magazines within a strict reasonable budget. However, as stated before all advertisement are in premium position. Giving our campaign the chance of more visibility, it was wiser in the case of a small niche brand like Ter et Bantine to spend on publishing in premium positions among other premium brands instead of paying double in one magazine for a whole spread. In which case more masstige brand tend to do. Below is an outline of a media plan for the chosen magazines in Denmark and also the usual famous luxury magazines as readers in Denmark are also expose to these magazines and they represent the standard of being a luxury brand. These magazines should be already covered and advertised in by Ter et Bantine in other countries publishing the same magazine brand in different languages. The campaigns that will be published here are the campaigns dedicated to only knit wear. Thus, this media plan is soley dedicated to the strategic media planning of Ter et Bantine knit wear in order to create an image that Ter et Bantine is a brand producing and valuing Italian made luxury knit wear.
Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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A store opening event will be held inside the Denmark department store, ILLUM. The famous Danish celebrities that are within the consumer target profile of Ter et Bantine with be invited to the event in order to generate publicity among the potential Danish consumers. Among the celebrities of Denmark the Guest list will consist of:
1.
Helena Christensen, born in Copenhagen in 1968. is one of the most famous model in fashion history. She won miss Denmark at the age of 16. During the 90’s together with Heidy Klum, Naomi campbell and Kate Moss she define the beginning of the first supermodels era. She has worked for most famous designers: Gianni Versace, Calvin Klein, Victoria Secret; Triumph; Sonia Ryckiel. She has been on the cover of fashion magazines: Vogue, sport illustrated, elle, muse, etc.
2.
Connie Nielsen born on the 5th of July 1965, is a internationally famous hollywood actress. Gladiator, mission to mars, the hunted, are just some of the films were she participated. These two beautiful Danish women will be the ambassadors of the brand in Denmark. During the store opening, video footages will be taken in order to upload on youtube and selected social media sites to communicate the prestigious appearance and participation of the two famous women to the store opening event. Giving the brand a pretigious perception from the very beginning of the entrance to the Danish market. These women will give the brand the higher potential of publication and awareness of the brand in Denmark.
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IED Level 6 Marketing and Communication - Business Plan
FINANCIALS Within our logical thought the calculation of the knitwear collection was better to be done regarding a season. By thinking around the costs related to one season it was easier to define and estimate with a closer approximately the costs of realising the project. Our collection will be sold from the year 2016 as we target Fall winter 2016 Thus, our calculations begin from the year 2016 with a 5% growth in year to year prices The sell in mark up was increased to 2.6 from 2.2. The number of the collection’s models will accelerate in the initial years and then remain at a steady growth. Thus we have an increase of 10 models each year until 2018. Sales plan As Ter et Bantine has only 2 showrooms and contracted with one agency in US we forecasted to sell 60% of our produced knit wear collection in year 2017 in Scandinavia following our launch of the collection. And then proceed with a 10 % increase the next year. Since we would only sell for 3 months in the first year a 4 was added on the growth % inorder to increase the number of sold items to a year as 3 months is only a quarter of a year. The production cost of shooting relates to all costs associated with the payment to the model, the photographer, other staff as well as the setting and even small details such as refreshments. Within the below the line expenditure, considering the store opening event the costs associated with undertaking this event was recorded in the marketing expenses part. Such as the cost of hiring a photographer on the date to shoot the event in order for the post publishing online. Decoration of the shop in shop and again refreshments. At this very moment of 2015 we need to hire an extra new product manger to mange the knit collection part with another dedicated assistant designer thus this cost will be included in the year 2015 as well as 2016 and so on as the knit collection should be ready for the runway in February 2016 in order to be for sale from 2016 September. Followed by 2 employees for the new shop in shop in Denmark. The cost of employees in the new store will be included when store opens in September 2016. Employee training will be undertaken every year in order to main a high service. efficiency over the year will lower the cost of OPEX 2 - store material such as the administrative resources needed there. other overheads includes all other costs that we may have missed or that could occur here the there. the costs within the communication of the DOS accounts for the expenses related to the communication within the department store and PR CAPEX of the DOS includes the calculation of the furnitures costs in which likely to decrease as the majority of the store is furnished 10,00 was added in the upcoming years as an expense of changing and updating the mood of the store according to the changing trends and the maintenance cost. Chiara Ciolli DoYeon Stacey Park Maria Teresa Francville
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BUSINESS CANVAS The following business canvas is a summary of our project indicating all major aspects that are to be considered in order to create a complete business plan that will penetrate successfully the launch of the Knitwear collection within our Ready to Wear collection.
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BIBLIOGRAPHY benjamin.dk, (2012). Costume. [online] Available at: http://www.benjamin.dk/article/48242-costume [Accessed 23 Feb. 2015]. BrainyQuote, (2015). Scandinavian Quotes at BrainyQuote. [online] Available at: http://www. brainyquote.com/quotes/keywords/scandinavian.html [Accessed 6 Mar. 2015]. Cover, (2015). Cover | Info. [online] Available at: http://cover.dk/info/ [Accessed 22 Feb. 2015]. Danskmagazine.com, (2015). About | DANSK Magazine. [online] Available at: http://www. danskmagazine.com/about/ [Accessed 20 Feb. 2015]. Datamonitor.com, (2011). Datamonitor Research Store - Apparel Retail - Scandinavia Industry Guide. [online] Available at: http://www.datamonitor.com/store/Product/apparel_retail_scandinavia_ industry_guide?productid=ML00004-484 [Accessed 2 Mar. 2015]. Datamonitor.com, (2013). Datamonitor Research Store - Denmark - Apparel Retail. [online] Available at: http://www.datamonitor.com/store/Product/denmark_apparel_retail?productid=MLIP1366-0012 [Accessed 12 Feb. 2015]. Denmark.dk, (2015). Fashion -The official website of Denmark. [online] Available at: http:// denmark.dk/en/lifestyle/fashion/ [Accessed 17 Feb. 2015]. Euromonitor.com, (2014). Apparel and Footwear in Denmark. [online] Available at: http://www. euromonitor.com/apparel-and-footwear-in-denmark/report [Accessed 19 Feb. 2015]. Euromonitor.com, (2014). Apparel and Footwear in Norway. [online] Available at: http://www. euromonitor.com/apparel-and-footwear-in-norway/report [Accessed 26 Feb. 2015]. Euromonitor.com, (2014). Luxury Goods in Sweden. [online] Available at: http://www.euromonitor. com/luxury-goods-in-sweden/report [Accessed 25 Feb. 2015]. Euromonitor.com, (2014). Retailing in Norway. [online] Available at: http://www.euromonitor.com/ retailing-in-norway/report [Accessed 26 Feb. 2015]. Facts, G. (2013). Topic: Global Luxury Goods Industry. [online] www.statista.com. Available at: http:// www.statista.com/topics/1110/global-luxury-goods-industry/ [Accessed 28 Jan. 2015]. Fibre2fashion.com, (2011). Global : Global knitwear market gets heated up - Apparel News Global. [online] Available at: http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_ id=95360 [Accessed 27 Jan. 2015]. Hashemi, N. (2014). The Scandinavian Niche and the Global Market. [online] Notjustalabel. com. Available at: https://www.notjustalabel.com/editorial/scandinavian-niche-and-global-market [Accessed 1 Mar. 2015].
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King, D. (2014). Online booking surges in emerging markets: Travel Weekly. [online] Travelweekly. com. Available at: http://www.travelweekly.com/Travel-News/Online-Travel/Online-booking-surgesin-emerging-markets/ [Accessed 16 Jan. 2015]. Maglifico.com, (2015). Maglifico. [online] Available at: http://www.maglifico.com/en/knit-focus/knititaly-debuts-at-premiere-vision [Accessed 31 Feb. 2015]. Marketresearch.com, (2015). Apparel Retail in Sweden. [online] Available at: http://www. marketresearch.com/MarketLine-v3883/Apparel-Retail-Sweden-8403698/ [Accessed 27 Feb. 2015]. Notjustalabel.com, (2015). Stockholm Fashion Week Autumn/Winter 2015. [online] Available at: https://www.notjustalabel.com/event/stockholm-fashion-week-autumnwinter-2015 [Accessed 19 Feb. 2015]. Suisse, C. (2014). 1st ed. [ebook] Available at: https://www.credit-suisse.com/upload/newslive/000000022801.pdf [Accessed 28 Jan. 2015]. Wang, L. (2013). Luxury Sales to Exceed $318 Billion, Driven by Emerging Markets and ‘Affordable Luxury’ - The Business of Fashion. [online] The Business of Fashion. Available at: http://www. businessoffashion.com/2013/10/euromonitor-coach-michael-kors-louis-vuitton-versace-fflur-roberts. html [Accessed 30 Jan. 2015]. Visitcopenhagen, (2015). Danes are in fashion. [online] Available at: http://www.visitcopenhagen. com/copenhagen/danes-are-fashion [Accessed 12 Feb. 2015]. Vitold, K. (2012). 1st ed. [ebook] Odense, p.21. Available at: http://www.odense.dk/topmenu/ indflydelse%20og%20politik/politikker%20og%20visioner/byudviklingsplaner/~/media/BMF/ Bystrategisk%20Stab/Vollsmose%20Multiby/VollsmosesBrandvrdiForTekstilindustri%20%202012. ashx [Accessed 18 Feb. 2015].
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