CAPSULE - Marketing Report

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C O N T E N T S E X E C U T I V E S U M M A R Y

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T H E C A P S U L E W A R D R O B E

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M A C R O E N V I R O N M E N T

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M I C R O E N V I R O N M E N T

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PORTER’S FIVE FORCES

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C O M P E T I T I V E S I T UAT I O N C O N S U M E R A N A LY S I S

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B R A N D A N A LY S I S

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BRAND OBJECTIVES

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THE MARKETING MIX

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I N T E G R AT E D P R O M OT I O N ST R AT E GY

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CONCLUSION 30 APPENDICIES 32 I L LU ST R AT I O N S 3 8 REFERENCES 40

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EXECUTIVE SUMMARY // The intent of this project was to create an online hub of mindful fashion. A website, promoting sustainable fashion through the use of a capsule wardrobe. The brand will launch seasonal events to promote a more sustainable consumer for the fashion industry. The events will include guest speakers from around the world to talk about their experience with slow fashion and how consumers can be more conscious to the purchases they make. The events will also feature a ‘create your own capsule’ style app, where guests can create a digital capsule wardrobe based on their needs and lifestyles. In this report we will explore what makes a successful brand and how

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we can plan through research.

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(FIG 2) OWN IMAGE

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(FIG 3) OWN IMAGE

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THE CAPSULE WARDROBE


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THE CAPSULE WARDROBE // Capsule wardrobe was a term coined by Susie Faux, the owner of a boutique named ‘wardrobe’ in the 1970’s. According to her a capsule wardrobe is a collection of a few essential items of clothing that don’t go out of fashion. This has gone onto, inspiring people all around the world to shop more minimal and purchase items that can be worn in different combinations.

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MACRO // ENVIRONMENT Capsule, promotes ethical fashion through the use of a capsule wardrobe, it is quite unique and is complimented by a contemporary style. But because of the brands it features, it would fit best in the middle market of the eco-fashion sector of fashion. Most of the brands featured, are affordable luxury brands and/ or middle market retail chains such as People Tree, Everlane and H&M Conscious collection. ECO-fashion is a huge growing sector of the fashion market, which has plenty of opportunities for new and upcoming brands to tap into.

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If we take a look at the PESTLE analysis (see fig 3) for Capsule we can analyse and predict variables that are outside of the company’s direct control. We can now see that environmental and socialogical change will impact capsule the most, if these factors change it could benefit or dis-allow the USP for the company to exist. A PESTLE analysis is essential for a business to forecast and prepare any outside factors that may effect them.

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MACRO ENVIRONMENT


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(FIG 4)

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MICRO // ENVIRONMENT You could argue however that this is due to maximum profit and capsule wardrobes promote a slower paced consumer, which is turn could end in being a profitiable challenge. However, brands could tap into this area of the market and could be a potential threat, or strength if more sponsors are made. Sponsorships with featured brands will also have to stay positive, otherwise capsule would not be able to sustain as a business. A SWOT analysis is important to assess wether to take opportunites for the business, but also to challenge weaknesses and improve them.

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Similar to the macro environment, it is important to consider factors that may occur inside of the companies control. The main purpose is to determine how a company can utilise it’s internal strengths. Harriet Posner claims in the book ‘marketing fashion’ that a SWOT (see Appendix 1) “is to use the information to determine how to capitalize upon a company’s internal strengths, using them to create opportunity and potential or to determine how strengths could be best employed in order to overcome threats in the market.” (Posner, 2011) The main strengths of Capsule is that the eco-fashion market involving capsule wardrobes is quite limited, not many brands are marketing this slow fashion technique to the consumer.

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MICRO ENVIRONMENT


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MICRO ENVIRONMENT

(FIG 6) OWN IMAGE


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PORTER’S FIVE // FORCES

Another tool that can be used for analysing the micro environment is Porter’s five forces. (See appendix 2) Posner, refers to this and describes it as ‘a tool that can be used to assess pressures within a competitive business environment.” (Posner, 2011) It is the five forces that can impact how a business is impacted by the surrounding industry. If we look at the five forces model (see fig 7) it is clear that these variants could change the outcomes of a businesses future. Most of these forces, will directly impact Capsule as a business, this is because the eco fashion industry is still growing, threats of new entrants into the market and the bargaining power of both consumers and suppliers/sponsors could enable success or failure. It is important to acknowledge these factors and be aware as to act upon them in the future, to prevent the failure of the business.

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COMPETITIVE SITUATION// Looking at the competitive market is a factor that is highly important. Brands can learn from other’s mistakes and although important to know your competition, it’s crucial in knowing your consumer and business. Capsule has limited competition because it is a fairly new concept in the fashion market, slow fashion now becoming more of a trend, it is expected that competition will grow in the future.

The branding however is very nice, the logo is professional and simple, the app seems easy to navigate and they are adding new features to the app, with a weather option to receive recommendations based on the weather of your region. A simple, yet effective feature of the service.

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Our direct competitor is a company named Cladwell. An online subscription service, clients receive selected clothing referred to them, depending on their preferred style selections, for their very own seasonal capsule wardrobe. This is a paid for, consultant service, with monthly finds sent to your inbox. Although a great concept, Cladwell often falls short. After completing a SWOT analysis (fig 8) you can clearly see that it has it’s weaknesses and it’s strengths. Mainly that it has a unique idea that many business’s have not yet tapped into. It is also a good starting point for ethically inquisitive consumers, however, with no trial period being offered it is often hard for people to find reason’s to subscribe to a monthly subscription service without understanding the service itself, almost missing their target market completely. They do have some good opportunities however, with the minimalism trend on their side, setting to get bigger for 2018, as predicted by WGSN.

Information about how the recommended clothing is assembled is also a huge factor, as consumers interested in sustainable fashion will most likely want to know about the clothes they’re purchasing and if they are ethically friendly. The website also doesn’t have the best quality of photography, the styling mostly letting them down. The marketing material and lack of information about the service itself is also a big weakness for the online brand. These facts however could easily be improved if the brand paid attention to their target ‘ethical consumer’ and what they would expect from a service such as this.

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COMPETITIVE SITUATION


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// CONTINUED

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COMPETITIVE SITUATION Other brands researched, although not direct competitors, were sustainable fashion friendly brands Everlane and ASOS Eco Edit. Everlane is a new upcoming business specialising in sustainable ethical clothing. It’s success is often pinned on their consumer target market, with the claim of “64% of millennials would rather wear a socially-conscious brand than a luxury brand.” and the brand is certainly growing with sources claiming “the startup raked in roughly $50millions last year, and that it plans to make twice that in revenue this year” (Schlossberg, 2017) Inspired by their success, completing a SWOT analysis (Fig 9) was the next step to understanding how they are becoming a successful brand. It’s strengths are it’s ethos, consumers want to understand more about where they clothes are made and Everlane offers that with it’s total transparency policy. Their marketing campaigns such as the ‘choose what to pay’ campaign, where customers decided on the cost of products based on the production costs was a genius idea to promote their transparent, ethically sourced products and brand values. Most of their weaknesses were related to their shipping, only offering Australia, USA and Canada, but these will most likely turn to opportunities as they expand to worldwide. Capsule can learn from Everlane, mainly by taking their ethical ethos approach, ensuring that consumers feel educated and a part of the process of becoming ethically aware of sustainable clothing.

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COMPETITIVE SITUATION // CONTINUED

When composing strategy against competition it is important that we assess wider competitors on a brand positioning map. (See appendix 3) According to Harriet Posner, positioning or perceptual maps ‘plots the relative positions of brands or products’ (Posner, 2011) however, positioning is all down to the perception of a brand and the position that the consumer views the brand and it’s surrounding competitors. In order to create accurate brand positioning it’s important that we develop a strategy in order to compete with similar brands. This brings us back to the brand positioning map itself. Once research has been carried out, we can now assess where brands will fit as we have gained a better understanding of the consumers perceptions of the market.

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Developing Capsule’s brand positioning map (fig 10) was based on market research and consumer research, eco friendly fashion has a much more smaller market area than fast fashion, so our competitors are more niche, but now we are able to build a strategy, now we can see where our main competitors are on our map.

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COMPETITIVE SITUATION


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(FIG 11)

CONSUMER ANALYSIS


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CONSUMER ANALYSIS// Knowing your consumer is the most important tool of marketing any business, if done incorrectly it can often lead to a downfall. This is why we need to be thorough and use both primary and secondary research to understand our target market and our consumer. The best way of gathering research is often through surveys and competitive research. After conducting a survey, we discovered that the most interested age range was actually millennials, 18-24 year olds. The majority also said they would be more likely to purchase an item if they knew where their clothes actually came from and most replying that they consider themselves to be in the know about ethical issues. This gave us an insight into the people who would be interested in our ethos and attend our events. Interviews with sustainable bloggers also contributed to our pen portrait of our guests and consumers. Dominique from blog ‘all that is she’ claims that she decided to delve into capsule wardrobes after considering sustainability for some time. Jamie from made-moiselle.com also claims that she focused more on ‘purchases on brands which I understood were at least making some efforts to produce clothing in a more ethical, transparent and environmentally friendly way” (Lee, 2017) These bloggers fit the consumer pen portrait (see appendix 4) perfectly and will be the people who consume and attend Capsule’s events. From our survey and from our competitor’s consumer research, we can now see that Capsule’s main consumer will most likely be part of the social media generation, white, and working full time. They will be interested in minimalism, often being an activist and passionate about sustainability, or wish to have a less stressful way of living. They don’t mind spending a little extra on an item of clothing, for quality and longevity. Their style will be quite classic and almost Parisian, in order for the capsule element to appeal to them. They will also fall under the ‘hipster’ stereotype, with a coffee shop, chic European aesthetic.

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BRAND ANALYSIS //

Capsule is an online source for ethical clothing, but ultimately it’s niche is specialising in capsule wardrobes. Our main goal is to educate people about the benefits of having a capsule wardrobe, living more sustainably and how we can achieve that by purchasing slow fashion. Our main feature will be our events, which guests can come browse ethical fashion supplied by eco- fashion brands and the opportunity to speak to specialists surrounding capsule wardrobes. Guest speakers are also available to watch with a paid ticket, as well as an app which will be interactive to access a capsule wardrobe. The brand’s identity is clean and minimalistic, with a contemporary aesthetic. In order to ensure that a brand is living up to its full potential it is necessary that SWOT diagrams are used to work towards strengths, but also to prepare for threats and work on weaknesses. These are extremely important to ensure that the business is a success.

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To assess Capsule, a SWOT diagram was conducted, in which it was stated that it would have a good position in its market, based on it’s strengths of being a unique, niche area of fashion. It also has opportunities to expand as more than an educational event, possibly creating their own line of eco-fashion and with the upcoming trend of minimalism and the ever rising growth of sustainable fashion, it could be very successful. There is also opportunity for growth, wether it be a bricks and mortar store in the future or online. However, in any industry or market, there will always be threats and weaknesses to a business, the chance that bigger ‘fast fashion’ brands will jump into sustainable fashion, is quite likely, which could saturate the market and eventually could lead to Capsule being overlooked. It’s also important to work on weaknesses, in order to improve or ultimately, turn them into opportunities. Capsule doesn’t have a place to visit, only the events that it hosts and as the app is a service which is part of the event, there is little interaction between the guest and brand. Also, if brands do not want to be affiliated or sponsor capsule, the browsing part of the event, would not be able to exist, unless Capsule created its own clothing, something Capsule could work on in the future.

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BRAND ANALYSIS & BRAND OBJECTIVES


MARKETING REPORT To analyse Capsule’s personality and ethos, a brand identity onion is often the most simple and effective method. (See appendix 5) With a brand onion we first start from the personality, this is the most easiest way to begin. From this we can then define a brands values, essence and their actions and behaviours. Actions and behaviours is how a brand represents itself, through its actions in reality. Personality is the brand’s character and values being the foundation of what the brand is built on. The very essence of the brand represents the core message of the brand and what they want to achieve. It is important to reflect on a brand onion often, to analyse wether a brand is sticking to their core identity and values. Completing a brand onion on Capsule was very important. As a brand that revolves around it’s values and beliefs, its necessary to stick to the initial core values, for the responsibility it has not to itself but for its consumers. From our brand onion (see fig 14) we can see that capsule’s core essence is sustainability, capsule wardrobes and slow fashion. This is the foundation that Capsule is built on. Capsule wants fair-trade, eco fashion goods, ideally with transparency in how it is produced. This will ensure that we value the social issues that go alongside slow fashion. However, Capsule’s personality is not vintage, or boho inspired. Instead it’s a clean minimal, chic, almost basic aesthetic with contemporary shape and style. The actions that Capsule will take to ensure they fulfil the rest of their brand identity is the the most important, as it’s actions consumers will associate to the brand. capsule will stay eco-friendly, promoting and advertising brands that it perceives to be doing so. Capsule will also be positive and create awareness for change in the industry and promote a slow fashion approach. Hopefully this will build trust between consumer and brand, which is the main factor in keeping consumers long term.

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BRAND // OBJECTIVES CAPSULE

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(FIG 13)

BRAND ANALYSIS & BRAND OBJECTIVES


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THE MARKETING MIX // The marketing mix is one of the most widely used marketing terms in a marketing plan. “The marketing mix is… the set of controllable tactical marketing tools - product, price, place and promotion - that the firm blends to produce the response it wants in the target market.” Kotler and Armstrong (2010) so it is important to assess what tools we can use to create the best outcome for the business.

Firstly, if we look at the product aspect, Capsule doesn’t sell an actual product as such, but we can assume that it is more of a service. Promoting capsule wardrobes in a positive light with brands and benefits the slow fashion market. Its product is more an educational gain, with the events guest speakers and app, the event gives an educational experience to all who attend.

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Our pricing is also important as we can see from our competitive research SWOT diagram (see fig 8) our main competitor ‘Cladwell’ offers a subscription service via an app and doesn’t offer trial periods or examples of their service. Trying to stay away from this SWOT weakness, Capsule’s event will be free. Only offering paid for tickets for the seminar aspect of the event. This will allow people to learn about Capsule wardrobes, without the pressures of a paid for service. The seminar’s will be paid for by tickets sold, as we predict that it will generate some interest and income, because of the high profile speakers involved. Our website is also free to use, as well as our articles. We could offer an optional paid publication in the future as the brand expands.

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THE MARKETING MIX


As for promotion, as an event it is important to promote to achieve a targeted attendance. Capsule will use social media, to promote their website and event, but it will also use it’s endorsements of well known guests and seminar speakers to reach out to their audiences too. In the event plan, Capsule has curated a guest list of influential people, who they feel will bring their audience to the events and website. Press releases will also be issued to ensure that press are notified about the interesting ideas of Capsule. The final “P” in the 7P’s is people. To cover this section, we need to refer to the event plan that Capsule has curated in order to see how the people involved will impact the brand and the event. Influential eco brands such as Everlane, Free people and the guest speakers are all invited, which will supply their audience with the knowledge of Capsule existing. This in turn will create curiosity and enable Capsule to have a higher reach. Authors of sustainable books, some of which are bestsellers, will be guest speaking at the event too.

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Capsule’s placement is online, but also the first event will be held in London, in a popular ‘pop up’ area, well known for it’s pop up events and stores. This will encourage people to area as there is always a good atmosphere. The potential for Capsule in the future, is also to expand worldwide, starting with other European cities, which from our customer profiling, we predict will be very successful.

(FIG 15)

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INTEGRATED PROMOTION STRATEGY


Capsule has stuck to its original ideas of brand aesthetic and values. It has a strong output according to its brand onion, but it is important to show how actions can implement a brands ideas. In order to do this it is critical to have an integrated promotional strategy in place. This will enable a brand to ensure that the necessary steps are not overlooked in order to promote the brand and product. To do this we look at the AIDA model. (See appendix 6) A model created to ensure we fulfil consumers decision process of buying into or attending an experience or event. Theses steps are referred to as awareness, interest, desire and action. Capsule must establish these areas in order to accomplish their marketing strategy. If we look towards (fig 16) we can see how Capsule will accomplish the the AIDA model to establish a successful marketing campaign.

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INTERGRATED PROMOTIONAL STRATEGY // As the AIDA model is often said to be outdated and Capsule mainly being online, it is relevant to look beyond AIDA and assess the 4 ‘C’s’ of content. Similar to AIDA, the model works in the same way, Create, Context, Conversation and Conversion. With Capsule, it will rely heavily on celebrity endorsements, the guest speakers such as Safia Minney, Anuschka Rees and Dominique are popular figures from the slow fashion community. The idea of inviting them to speak at the event, is not just a strategy to get guests to come to the event, but also it can be used as an online marketing strategy tool. Their social media reach will be stronger than Capsule’s when starting out, but they will want their audience to know that they are supporting a slow fashion cause. This reach will grow as their users are a small targeted area of the world wide web. Their audience are our targeted consumers. This brings us back to the AIDA model of ‘action’. Once the targeted consumers take action from their influential context, they will share, tweet, reblog, creating conversation and the message will quickly spread amongst the targeted online community thus creating conversion as people attend the event.

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CONCLUSION //

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In conclusion, it is important that brands stick to their initial research, but it is just as important to keep researching and staying up to date with not only the market, but their targeted consumer and who is exactly consuming their product, in able to continue growth. It’s important to reflect on weaknesses and continue to search for opportunities, by creating regular SWOT diagrams and assessing the 4C’s of content in order to track and measure progress. Capsule has the opportunity to grow into what is quite a limited market at the moment, so it has that advantage over others. The future for Capsule looks bright, with new pop-up events on the horizon and a chance to make a difference to the way we consumer fashion and the rise of social media will enable capsule to spend little on marketing, by using techniques discussed in the promotional strategy.

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Throughout this report, we have throughly processed each avenue of a marketing plan in order to ensure Capsule’s success. Through their educational events and interactive experiences they are offering something the slow fashion industry has not yet seen and their USP will enable them to continue growing as long as the market allows.

CONCLUSION


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APPENDICIES //

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[APPENDIX 1] Appendix one shows an extract from Harriet Posner’s ‘Marketing Fashion’ (2010) Page 102. It is a SWOT diagram from the planning and strategy chapter. It shows ‘an overview of the possible issues to consider for each area of investigation.

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[APPENDIX 2] Appendix two, show an extract from Harriet Posner’s Marketing Fashion book page 70. It illustrates how Porter’s Five Force, have an impact on a brand and business.

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[APPENDIX 3]

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Appendix three shows an extract from Harriet Posner’s ‘Marketing Fashion’ (2010) Page 57. It shows a Perceptual map or brand positioning map. This model is to help a brand position itself around its competitors in the market.

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// APPENDICIES

[APPENDIX 4] Appendix four is an example of pen portraits from Harriet Posner’s ‘Marketing Fashion’(2010) book. Located on Page 136.

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APPENDICIES //

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[APPENDIX 5]

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Appendix five shows an diagram from Harriet Posner’s ‘Marketing Fashion’ (2010) Page 158. Its a “popular and effective device for showing a concise overview of a brand identity.” Posner (2010)

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[APPENDIX 6] Appendix six shows a figure from journal “Web advertising: new forms of communication on the internet” by Janoschka, Anja. Page 34. It shows the AIDA concept of influence.

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ILLUSTRATIONS // FIGURE ONE PYE, E. (2017) FIGURE TWO PYE, E (2017) CONTEMPORARY SHIRT FLAT [PHOTO] FIGURE THREE PYE, E (2017) ORIGAMI SHIRT [PHOTO] FIGURE FOUR PYE, E (2017) PESTLE ANALYSIS FOR CAPSULE [ILLUSTRATION] FIGURE FIVE PYE, E (2017) SWOT ANALYSIS DIAGRAM FOR CAPSULE [ILLUSTRATION] FIGURE SIX PYE, E (2017) BLUE CONTEMPORARY SKIRT FLATLAY [PHOTO] FIGURE SEVEN PYE, E (2017) PORTER’S FIVE FORCES CAPSULE ANALYSIS [ILLUSTRATION]

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FIGURE EIGHT PYE, E (2017) SWOT ANALYSIS ON CLADWELL [ILLUSTRATION]

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LIST OF ILLUSTRATIONS


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FIGURE NINE PYE, E (2017) SWOT ANALYSIS ON EVERLANE [ILLUSTRATION] FIGURE TEN PYE, E (2017) BRAND POSITIONING MAP FOR CAPSULE [ILLUSTRATION] FIGURE ELEVEN PYE, E (2017) CONSUMER PROFILE ANALYSIS FOR CAPSULE [ILLUSTRATION] FIGURE TWELVE PYE, E (2017) INITIAL CONCEPTUAL MOODBOARD RESEARCH FOR CAPSULE [IMAGE] FIGURE THIRTEEN PYE, E (2017) SWOT ANALYSIS FOR CAPSULE [ILLUSTRATION] FIGURE FOURTEEN PYE, E (2017) CAPSULE BRAND ONION DIAGRAM [ILLUSTRATION] FIGURE FIFTEEN PYE, E (2017) THE 7 P’S CAPSULE RESEARCH DIAGRAM [ILLUSTRATION] FIGURE SIXTEEN PYE, E (2017) AIDA ANALYSIS FOR CAPSULE [ILLUSTRATION] FIGURE SEVENTEEN PYE, E (2017) INITIAL CONCEPT RESEARCH MOODBOARD FOR CAPSULE [PHOTO] FIGURE EIGHTEEN PYE, E (2017) BACK COVER, CONTEMPORARY ORIGAMI SHIRT [PHOTO]

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REFERENCES // Cladwell. (2017). Capsules. [online] Available at: https://cladwell.com/capsules Cline, E. (2013). Overdressed. 1st ed. New York, NY: Portfolio/Penguin. Forbes.com. (2017). Forbes Welcome. [online] Available at: http://www.forbes.com/sites/deborahweinswig/2016/09/07/millennials-go-minimal-the-decluttering-lifestyle-trend-that-is-taking-over/#415ed6f74c1a Janoschka, A. (2004). Web Advertising: New Forms of Communication on the Internet. Kotler, P. and Armstrong, G. (2010). Principles of marketing. 1st ed. Leslie, J. and Bailey, A. (2017). 5 Big Predictions for 2016: From Fashion to Tech to Fast Food. [online] ELLE. Available at: http://www.elle.com/culture/g27474/2016-trend-predictions/

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MartĂ­nez, M. (2017). 10 Reasons Why Minimalism is Growing. [online] Becoming Minimalist. Available at: http://www.becomingminimalist.com/10-reasons-why-minimalism-is-growing-a-k-a-10-reasons-you-should-adopt-the-lifestyle/

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McKinsey & Company. (2017). Style that’s sustainable: A new fast-fashion formula. [online] Available at: http://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/ our-insights/style-thats-sustainable-a-new-fast-fashion-formula?cid=sustainability-eml-alt-mipmck-oth-1610

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Minney, S. (n.d.). Slow fashion. 1st ed. Posner, H. (2011). Marketing Fashion. 1st ed. London: Laurence King. Process, T. and Process?, W. (2017). Understanding perceptual maps. [online] Segmentationstudyguide.com. Available at: http://www.segmentationstudyguide.com/understanding-perceptual-maps/perceptual-maps/ Rees, A. (n.d.). The curated closet. 1st ed. Schlossberg, M. (2017). This hot $250 million start-up is being called J. Crew for millennials. [online] Business Insider. Available at: http://uk.businessinsider.com/everlane-is-projecting-major-growth-2016-3?r=US&IR=T The market for ethical and sustainable fashion products. (2011). Ethical Fashion Forum Report 2011. the Guardian. (2017). The rise of the conscious consumer: why businesses need to open up. [online] Available at: https://www.theguardian.com/women-in-leadership/2015/apr/02/the-rise-of-the-conscious-consumer-why-businesses-need-to-open-up The Huffington Post. (2017). How Millennial Shopping Patterns Are Changing Fashion. [online] Available at: http:// www.huffingtonpost.ca/2016/01/14/millennial-shopping-habits_n_8980380.html Young, W., Hwang, K., McDonald, S. and Oates, C. (2009). Sustainable consumption: green consumer behaviour when purchasing products. Sustainable Development, p.n/a-n/a.

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