TJMaxx Pop-up Shop

FAITH NEWTON JESSICA OGDEN KALLIE M c SHANE SAVANNAH NEWMAN FASM 410 SPRING 2017

1

EXECUTIVE SUMMARY CORPORATE STRUCTURE BRAND MATRIX SANTO DOMINGO POP-UP DESIGNS ASSORTMENT PLAN COMMUNICATION PLAN FINANCIAL PLAN 2

TABLE OF CONTENTS

4 8 20

30 52 70 72 80 3

EXECUTIVE SUMMARY

In 1976, a ladies’ hosiery brand, founded in 1919, grew too big for its britches. Thus, TJ Maxx was born. The TJ Maxx brand aims to be the leading provider of high-end designer merchandise at a fraction of the original retail price. TJ Maxx is hosting a oneweek pop-up shop in Santo Domingo, Dominican Republic. This one-week pop-up shop will “bring fashion direct from designers… savings direct to you” to the Dominican Republic. The literal elevated status of the pop-up shop will prompt people to join the most satisfying treasure hunt. Santo Domingo will be filled with loyal “maxxinistas” by the end of the week from mother to daughter, from father to son. Only one problem could stand in the way of a retail experience of a lifetime, not enough arms to carry all of the deals.

4

5

HISTORY 1919

1976

1956

IPO on the New York Stock Exchange Rebranded into the Zayre Corporation that offered “a discount department store chain Brothers Max and offering convenience, Morris Feldberg found selection and the New England Trading Company in outstanding value for the whole family.”

Boston. Starting out as a ladies hosiery business, they grew into a whole chain of women’s apparel that ranged from New England to D.C. 6

1977

1962

1994 1988

Ben Cammarata is hired to develop this new off-price chain selling family apparel and home fashions: TJ Maxx

2012

TJX launches T.K. Maxx, introducing the off-price concept to the U.K. and then to Ireland. Over time, T.K. Maxx becomes Europe’s only brick-andmortar, off-price retailer of significant size.

The first two TJ Maxx stores open in Auburn and Worcester, Massachusetts

2013

TJ Maxx opens its 1,000th store.

TJ Maxx launches its e-commerce site

Zayre is rebranded into TJX Companies, Inc.

7

CORPORATE STRUCTURE

TJ Maxx is a subsidiary of The TJX Companies Inc. and operates through e-commerce and brick-andmortar locations. It is technically positioned under the “department store industry” but specifically identifies as an off-price apparel and home fashions retailer. Their buying team is made up of more than 1,000 associates, sourcing merchandise from more than

8

18,000 vendors in over 100 countries. TJX operates its business through four segments: Marmaxx, HomeGoods, TJX Canada and TJX International.

TJ Maxx specifically is only in the United States of America, but it’s international equivalent: TK Maxx, operates across the world. TJ Maxx falls under the Marmaxx category and is the combination of TJ Maxx and Marshalls.

9

MISSION • “Fashion direct from designers… savings direct to you” • No promotions, sales, coupons or other gimmicks • Unlike an outlet store, TJ Maxx offers brands from thousands of vendors around the world • Product assortment includes boutique to big name brands, designer labels, private label, as well as upand-coming brands • TJ Maxx differentiates itself from sister-retailer Marshalls with an expanded assortment of fine jewelry and accessories, and in some stores: The Runway, offering high-end designer items

10

11

HOMESENSE WINNERS MARSHALLS

SIERRA TRADING POST HOMEGOODS

TKMAXX

MARSHALLS TJMAXX

13 12

TJX CANADA HOMEGOODS TJX INTERNATIONAL MARMAXX

BUSINESS MODEL

Known for a “treasure hunt” shopping experience, TJ Maxx’s inventory turns rapidly in relation to traditional retailers, creating a sense of urgency and excitement for customers, which encourages frequent visits. They have implemented a “no walls” business model, allowing for quick expansion and minimization of merchandise categories in response to consumers’ changing tastes and current trends.

Buying close to need helps TJ Maxx, “buy smarter” and reduce markdown exposure. Their retail layout plan is flexible, no walls between departments and typically free of permanent fixtures to assist the constant rotating product.

14

15

GROWTH & REVENUE

Marmaxx is the most profitable segment of the TJX corporation. In 2017, they expect to open about 65 additional TJ Maxx and Marshalls stores. TJ Maxx’s ecommerce platform only does about 1% of the entire TJX corporation’s sales, while the brick and mortar operations account for over 60% of the companies total revenue. Marmaxx predicts long-term growth the division to around 3,000 stores in the U.S. alone.

FISCAL YEAR 2017 NET SALES INCREASED A STRONG 7% TO $33.2 BILLION COMPARED TO 2016’S 6% INCREASE

16

17

STRENGTHS •

•

•

•

Sourcing is easily relocated due to “opportunistic buying” TJ Maxx does not do promotional sales on the merchandise Fills a niche market for a high quality off-price retailer Has an ecommerce platform

OPPORTUNITIES •

•

•

18

Target market is abundant and readily available Chance to create new loyal customers and spread brand awareness Creating a stronger omnichannel platform for the international market

WEAKNESSES •

•

SWOT

Minimal awareness outside of the United States of America Some negative connotations with merchandise selection

THREATS •

•

Department stores are beginning to compete with off price retailers

such as TJ Maxx by discounting merchandise Brands are not creating as much merchandise for off-price 19

BRAND AS A PERSON: • •

• • • •

“Maxxinista” Starts shopping there with

their mom and continues

the tradition Knows brands, but not a brand snob Middle to upper middle class Price conscious Helpful

BRAND AS A PRODUCT: •

•

20

Branded basics from highly recognizable national brand Ralph Lauren Polo, Steve

Madden, Tommy Hilfiger, Levi’s

BRAND AS A ORGANIZATION: • •

BRAND MATRIX

Organized chaos Unique business model that sets them apart from others

BRAND AS A SYMBOL: • •

Logo on an outdoor shopping mall T.J. Maxx red Clearance tag

21

CURRENT POSITIONING TARGET DEMOGRAPHIC: Men and women, middle to upper middle class income level

PRICE RANGE:

20% to 60% below department and specialty store regular retail prices Their business model of off-price retailing

name-brand product positions them to perfectly accommodate the middle/upper middle class, offering them designer goods they desire but can’t necessarily frequently afford. Price positioning puts them above competitors like Ross and Burlington Coat Factory due to higher end quality and product assortments. However, they are still placed below department stores that offer similar product choices, like Stein Mart.

22

23

DISTRIBUTION 1,191 STORES (U.S.) ECOMMERCE SINCE 2013 Stores are located in 49 out of 50 states including Puerto Rico and the District of Columbia, most commonly in larger outdoor shopping centers and are often near other TJX businesses like Marshalls or HomeGoods.

In 2016, TJ Maxx reported an average store square footage of 29,000 sq. feet.

24

25

ABROAD 515 STORES. 6 COUNTRIES ECOMMERCE SINCE 2009 Although there are no specific TJ Maxx locations in other countries, stores with an identical business model under the TJX corporate umbrella exist internationally: T.K. Maxx. Located the U.K., Germany, Austrailia, Poland, Austria, the Netherlands, and Ireland. Launched in 1994, T.K. Maxx introduced off-price retailing to the U.K. and Ireland and is the only brick-and-mortar, off-price retailer of apparel and home fashions of significant size in Europe. In addition to its stores, T.K. Maxx also operates its e-commerce site, tkmaxx.com, specifically in Europe.

26

27

MARKETING EFFORTS • TJ Maxx consistently updates all platforms through an onmichannel approach: Twitter, Facebook, Instagram, Pinterest, and YouTube • They target their specific customer by coining phrases like “Maxxinista,” “Shopportunity,” and “Spending Intervention” • Youtube features all current commercials and media site partnerships (i.e. Refinery29) • No promotional sales because they are an off-price retailer

28

• According to Kantar Media, TJX spent nearly $217 million on measured media in the U.S. last year, a slight dip from its $225 million spend in 2015 • Also frequently collaborates with “influencers” to produce ”haul” videos trendy with millenials, keeping the brand young and connecting with that demographic

29

SANTO DOMINGO, DOMINICAN REPUBLIC

30

31

JUSTIFICATION OF LOCATION TJ Maxx has decided to enter the market of the Dominican Republic due to the growing middle class and fitting retail environment. The country currently offers no off-price retailers, similar to Europe when TJX entered the market in 1994, and operations there are still thriving over 20 years later. The retailer’s target market falls in the middle class, therefore will see large success in a location where the middle class is dominant. The brand assortment that TJ Maxx provides also falls cohesive with the fashion interest of local shoppers.

Additionally, TJ Maxx usually positions their stores in mall environments, which exhibit large popularity and foot traffic in the Dominican Republic. For these reasons, the TJ Maxx team has chosen to open a pop up shop in the rooftop rental space of the Novo-Centro mall located in Downtown Santo Domingo.

32

33

GOALS

Help TJ Maxx gain a more positive brand image as an off-price retailer with big designer finds and develop a stronger international presence.

Curate and buy recognizable and high quality big brand name products.

STRATEGIES

Create a branded pop up shop with a more luxurious atmosphere to match top brand merchandise that will be offered.

Promote through social media Measurable social media growth, attracting new followers therefore new consumers

OBJECTIVES

Invite Dominican Republic bloggers so they can post and write about the pop up shop Prep for hard launch of permanent brick and mortar and create hype through the pop up shop.

34

35

PESTEL ECONOMIC

POLITICAL PROS President Medina has been praised for strengthening the business environment and improving fiscal accounts.

President boasts a strong and increasing approval rating.

Progressive immigration policies have been enacted with the aim of boosting economic development and stability.

Re-election of President Medina in 2016 has provided political stability in the country.

CONS Main challenge the country faces is corruption and weak rule of law.

At least 80% of a company’s payroll must be Dominican.

Government is allocating more resources to combat things such as high poverty levels and poor public education standards.

PROS Member of the Dominican RepublicCentral America-United States Free Trade Agreement (CAFTA-DR) One of the signatory countries of the Economic Partnership Agreement (EPA).

Beginning in 2015, over 97% of the goods entering the country from CAFTA-DR countries entered at 0% tariff.

CONS High Sales Tax rate at 16% Country faces some considerable obstacles to sustaining such robust growth over the long term.

Last recorded interest rate was 5.75, making it the world’s 65th highest recorded interest rate.

Fastest economic growth in Latin America with low, stable inflation 31 billion dollars in retail sales in 2016

36

37

PESTEL TECHNOLOGICAL

SOCIAL PROS Top tourist destination in the Caribbean with a growth of 5.8% from 2015-2016.

Inexpensive travel destination from the United States Majority of the population is between the ages of 25-54.

The Dominican Republic wants to be seen as the shopping mecca of the Caribbean

CONS High levels of poverty and income inequality High unemployment rate at 13.3% Low standard of education with poor quality facilities, overcrowded classrooms, and outdated curriculum.

PROS Foreign Investment Law (No. 16-95) No requirements to turn over source data or code to the government Freedom for privatization and establishing business Digitization of records Availability to obtain copyrights and patents

CONS U.S. exporters should be prepared to provide all promotional materials in the Spanish language.

No government or subsidized research and development programs for foreign investors Cell phone plans are unfavorable in the Dominican Republic 51.93% of Dominicans use the internet

Expanding middle class

38

39

PESTEL LEGAL

ENVIRONMENTAL PROS Local government is working closely with the United States and urban specialists to implement long term innovative climate planning solutions.

The new Planning for Climate Adaptation Program will initially begin in Santo Domingo.

CONS The country struggles in areas such as deforestation, water supply, and soil erosion, the latter of which has detrimental effects on the coral reefs in the area.

Ranked as the number 8 country in the world most vulnerable to climate change.

PROS The Commercial Service of the U.S. Embassy in Santo Domingo offers a range of business matchmaking services to help U.S. exporters connect with suitable and qualified representatives, distributors and partners in the DR. Appointment of local legal counsel when working with an agent or distributor during market entry.

CONS Product safety and consumer protection laws are not extensive and not heavily regulated.

Fraud in registration of land titles US industry in the DR lacks enforcement of intellectual property rights

The DR has strong ties with the United States, making market entry much easier.

No forced localization

40

41

STATE OF THE INDUSTRY

The retail sector of the Dominican Republic economy is currently showcasing a large boost, particularly in grocery and apparel.

Overall, the country is relatively unsaturated with modern retailers and offers no off-price retailers.

According to Euromonitor, in 2016, the store-based retail

42

industry of the Dominican Republic experienced overall sales of 510,132,400 in Dominican Pesos (DOP) which converts to $10,794,228 U.S. dollars. This is an increase of 5.7% from the previous year, and is projected to keep rising, reaching 600 million DOP by 2019.

Santo Domingo is the capital city of the Dominican and the largest, most urbanized city in the country. Migrating to the urban environment, the most shopping centres are located there and feature international retailing brands that cannot be found elsewhere

in the country. Due to an increased popularity of “one-stop-shopping,� large specialized retailers and shopping malls have been opening and driving business away from the mom and pop shops that traditionally dominated the retail sales.

43

DIRECT COMPETITORS ZARA •

Internationally situated local competitor

•

Trendy mens & womens clothing at affordable prices

• •

High brand awareness

2,213 stores in 93 countries, with two locations in the Dominican Republic, both in Santo Domingo, and an ecommerce site

CARIB WIND •

For 30 years Carib Wind has established itself as a symbol of

•

Offering carribean inspired clothing for local residents

• •

44

quality in Santo Domingo

Advertising methods include social media, and local media

Two brick and mortar stores in Santo Domingo, no ecommerce

45

INDIRECT COMPETITORS

These are some of the non-retail based competitors located in Novo-Centro that also double as area attractions. They do not offer the same product but do attract the same target customer, so TJ Maxx is ultimately competing for wallet share with these places. The businesses featured include a movie theater, italian restaurant, Domino’s Pizza (which also has international brand recognition) and a crossfit gym.

46

47

TARGET CONSUMERS CAMILA CRUZ Santo Domingo Local Age: 21

MICHAEL SUAREZ Santo Domingo Local Age: 35 Michael’s job as a lawyer requires him to wear at least a button down, slacks and a tie everyday to the office. He is very busy at work so when he does have free time he really tries to embrace it and spend it with his wife and two children going to parks and the beach. Always posting on Facebook pictures of their recent adventures. When he does have to go and shop he wants to be in and out of a store fairly quickly. He prefers to shop at the mall because it is right below his office.

48

AVERAGE BASKET

AVERAGE BASKET

Men’s tie: $10 Men’s Button Down: $30

Women’s skirt: $25 Junior’s top: $20 Women’s Shoes: $30

Total: $40

Total: $75

Camila always enjoys going shopping especially on the weekends with her friends!

Today she wants a new outfit for an upcoming date. She doesn’t have the income yet to buy something really expensive because she is still in college at Autonomous University of Santo Domingo studying primary school education, but she loves brand names and trendy items.

She tries to expand her wallet as much as she can by buying many things instead of one new article of clothes. One thing is for sure, you can’t find her without her phone. The minute she buys her new outfit she immediately posts it to Instagram or Snapchat.

49

TARGET CONSUMERS DIANNA CASTILLO Santo Domingo Local Age: 40

AVERAGE BASKET

50

Men’s Button Down: $25 Junior’s Dress: $30 Women’s Shoes: $35 Children’s Shirt X 2: $30 Total: $120

CARLOS PEREZ Santo Domingo Local Age: 19 This stay at home mom is buying for the whole family. Her husband holds a government job while she is home with the kids. She frequents the mall at least once a week to go shopping or see a movie while her children are in school. Since she does have to buy for the whole family, she wants to stay on budget while getting things that the whole family young and old will love. She also enjoys grabbing lunch date with her neighbor who also has children around the same age.

She thoroughly enjoys using Facebook and loves to connect with her family and friends and watching funny dog videos.

This full time college student works part time as a cashier at the Domino's in the Novo Centro mall. He often shops after work with friends, his girlfriend, or his mom. He won’t start complaining about shopping if they stay near the men’s section. A complete impulse buyer, who also has a sweet tooth, that won’t let him leave the cash register unless he has a bag of candy and/or an article of clothing.

He also is a social media king, posting to Snapchat, Instagram, and Facebook daily.

AVERAGE BASKET Men’s shorts: $25 Men’s socks: $7 Total: $31

51

NOVO-CENTRO

Novo-Cento is an ideal choice for our pop-up shop, since TJ Maxx’s are typically located in mall-like areas and depend on that kind of foot traffic for conversion. The abundance of direct and indirect competitors that Novo-Centro hosts is not necessarily a negative, but more of a marketing tool boosting foot traffic and word of mouth. The mall itself is an attraction featuring places like movie theaters and gyms so consumers are always on location.

Furthermore, the building is located on a busy downtown street increasing outdoor foot traffic inside as well.

52

53

AMENITIES

Eighteenth floor rooftop lounge of Novo-Centro, renting for the cost of $7,000 USD for one week and includes the listed products to the right. The furniture provided will be used along with TJ Maxx homegoods products doubling as decor and sale items.

FURNITURE INCLUDED: • Sofas • Ottomans • Circular sofa, seats 8 people • Half moon sofa, seats 6 people • Two half moon bars • High tables • Stools • Patio shade AUDIOVISUALS: • Ambient sound • LED lights • Spotlights • Microphone • 42 "Plasmas SAFETY / CLEANING: • Security staff • Cleaning staff • Technical staff and maintenance

54

55

HR STRUCTURE TASKS:

1. Does inventory 2. Cashier 3. Bartender Pass around drinks/food 4. Clean up/maintain store/helps customers 5. Fitting room assistant 6. Manager 7. Buyer 8. Merchandiser 9. Bilingual 1 Manager (imported) 1 Bartender (event only) 2 Cashiers 2 Passing around drinks (event only) 1 Fitting room attendee 3 On the floor

ORGANIZATIONAL CHART:

1. Regional Manager-Regional Buyer- Regional Merchandiser 2. Store Managers- Store Buyers-Store merchandisers 3. Salespeople 56

RECRUIT:

1. Promote from within for higher up positions 2. Online Job Sites 3. Newspaper Advertisements 4. Mall hiring center

TRAIN:

1. Role-Playing off script 2. They must know brand history, products, and competitors 3. They must know why the pop up shop was trying to expand in DR

COMPENSATE:

1. Good Job Strategy (empowered employees, fair wages,

fair schedules, skilled employees, cross training, slack) 2. Vacation time 3. Increased pay after certain amount of years at TJ Maxx

SUPERVISE:

1. They will have to take an Instagram at least twice a week with a TJ Maxx, Dominican Republic hashtag

and if TJ Maxx’s followers increases by at least 5% in the first month they will be rewarded.

2. If they meet a quota for foot traffic and number of units sold in the first 6 months, they will be rewarded.

3. There will be a survey that asks customers opinion of TJ Maxx and if at least 40% of people are

satisfied then employees will be rewarded.

REWARD:

1. Getting extra vacation days 2. You get to pick your schedule first 3. You get a bonus as a group of employees (based on how many units sold) 4. Public recognition (employee of the month) with a bonus 5. Bonus for people working on holidays

57

POP-UP DESIGN

The TJ Maxx pop-up shop will incorporate all the given square footage for the week-long event. In addition to using the given furniture mentioned previously, TJ Maxx will also provide home goods products for display and sale. Since the pop-up shop features clothing, dressing rooms will need to be temporarily built by a locally contracted Dominican company Privee Designs. Furthermore, we will need to purchase racks and item displays from the Ikea in Santo Domingo since they offer the lowest prices. The design of the store heavily incorporates plants for overall aesthetics and “instagrammable” moments. To facilitate this decor we plan to purchase the greenery from “Picky Plants” in Santo Domingo. The overall pop-up shop creates an inviting atmosphere locals will want to shop and hangout in all week long.

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

ASSORTMENT PLAN TOTAL

$ PURCHASES

UNIT

PURCHASES

SIZE

TOTAL

$ PURCHASES

% TOTAL

VENDOR

UNIT

PURCHASES

Ralph Lauren

20%

4

10%

$400.00

16

30

13%

$375.00

15

Nautica

20%

6

15%

$650.00

26

32

15%

$475.00

19

Oshkosh Bigosh

10%

8

20%

$900.00

36

34

22%

$825.00

33

Kenneth Cole

20%

10

22%

$1,000.00

40

36

20%

$725.00

29

Tommy Hilifiger

15%

12

18%

$700.00

28

38

15%

$475.00

19

Free People

15%

14

15%

$650.00

26

40

15%

$475.00

19

$4,300.00

172

TOTAL

$3,350.00

134

KIDS

TOTAL

%

$ PURCHASES

UNIT

SIZE

TOTAL

XS

15%

$650.00

26

S

18%

$700.00

28

M

22%

$1,000.00

40

L

20%

$900.00

36

XL

15%

$650.00

26

XXL

10%

$400.00

16

$4,300.00

172

TOTAL 76

%

MENS

WOMENS

SIZE

%

PURCHASES

%

$ PURCHASES

UNIT

AVG. RETAIL

CLASSIFICATION

TOTAL

Swimwear

20%

$2,390.00

48

$50.00

Tops

15%

$1,793.00

72

$25.00

Bottoms

20%

$2,390.00

80

$30.00

Dresses

15%

$1,793.00

40

$45.00

Shoes/ Accessories

15%

$1,793.00

51

$35.00

Home

15%

$1,793.00

9

$200.00

$11,590.00

299

TOTAL

PURCHASES

77

COMMUNICATION PLAN

78

INFLUENCERS

Since our pop up shop is only open for a week, our promotional plan is not split up into the typical six-month buying plan. The influencers and press are coming only for the grand opening, which is the first night. The promotional plan will last the whole month of March. Return on investment is based not only on monetary values but the objectives we set as a team.

We are giving each of the eight Dominican Republic influencers a care package, each costing $20 (all together costing $160). The Influencers are required to make at least one post of this care package for “pre-launch.” The package will be sent out two weeks before the trip and it will contain a branded sleep mask, branded water bottle, their itinerary for the pop up shop and a plane ticket. The second cost is for the round trip plane tickets, which we estimated, being $500 each (the total being $4,000). Having the end total be $4,160.

The “during” the pop up shop costs stem from TJ Maxx paying for an Airbnb house for the eight Dominican Republic influencers. Because we are paying for their

stay as well, they are required to post Instagrams while at the pop up shop and around the DR with the hashtag #DRmaxxinistas and tagging TJ Maxx’s Instagram. The price break down is $1,525 for the influencer’s three-day/two night Airbnb house. The last component is the “post” pop up shop costs, citing the travel accommodations and invitation as compensation, they are required via contract to write a blog post with a coinciding Instagram post a week after the pop up shop. We will have a major return on investment because what we really want from this pop up shop is exposure. Bringing these popular influencers to the pop up shop means that their positive experience will be shared with their millions of followers across the world.

79

REFINERY29 We are giving Refinery29 two care package, each costing $20 (all together costing $40). Refinery29 is required to make at least one post of this care package for “pre-launch”. The package will be sent out two weeks before the trip and it will contain the same branded sleep mask, branded water bottle, itinerary for the pop up shop and plane ticket. The second cost is for the round trip plane tickets, which we estimated, being $500 each (the total being $1,000). “During” the pop up shop costs stem from TJ Maxx paying for an Airbnb for the two people from Refinery29.

Because we are paying for their stay as well, they are required to post Instagrams while at the pop up shop and around the DR with the hashtag #DRmaxxinistas and tagging TJ Maxx’s Instagram.

The price break down is $158 for Refinery29’s three-day/two night Airbnb. The last component is the “post” pop up shop costs.

Because we bought Refinery29 two tickets, housing, and the pop up shop invitation they are required to write an article with a coinciding Instagram post no later than a week after the pop up shop free of charge. We will have a major return on investment because what we really want from this pop up shop is exposer.

Bringing Refinery29 is the perfect move because they are already partners with TJ Maxx and they also have such a large following that many people would read and hear about the pop up shop.

80

81

SOCIAL OUTREACH SNAPCHAT GEOFILTER: This filter will be only available at Novo-Centro on the day of the pop-up launch so it will only be $50. Geofilters add to word of mouth marketing and customer promotion efforts, as well as developing branding in the new location.

FACEBOOK SPONSORED POST: Pre-launch: 7 days (every other day) X ($30 per day)= $210 During: 7 days X ($50 per day) = $350 Post: 1 day (for survey) X ($70 per day) = $70 A large portion of our demographic is older and uses facebook as their main and only form of social media. Users who have relevant likes and interests in the geographical area will see the post and hopefully be interested in attending the pop-up event.

INSTAGRAM SPONSORED POST: 2 weeks pre-launch: 7 days (every other day) X ($30 per day)= $210 During: 7 days X ($50 per day) = $350 Although we can market to an older demographic it is always important to look to the younger to keep consumers fresh and rotating. Our millenial target consumer is a frequent user of instagram and will hopefully see the promo on their feed.

82

YOUTUBE VIDEO ON TJ MAXX CHANNEL: Director: $20 X 3 hours = $60 Assistant: $10 X 3 hours = $30 Lights: $15 X 3 hours = $45 Sound: $15 X 3 hours = $45 Cameraman: $15 X 3 hours = $45 Editor: $25 X 5 hours= $125 Miscellaneous : $150 $500 TJ Maxx has a strong YouTube presence, by releasing a well made video of the pop-up shop on their page, they can show everyone who wasn't there how amazing it was. It gets the word out in a creative way but solely as a post launch effort.

EMAIL: We will charge a flat rate of $50 for someone to write the email that has a survey for feedback as well as a statement like “we hope you enjoyed the pop up shop”. We will be asking for the customers email with purchase therefore we don’t need to buy an email list. Having the follow up email would help meet our objective of changing the perception of TJ Maxx in the mind of the consumer because it shows a personal touch that one wouldn't expect from TJ Maxx.

83

RADIO: Pre Launch: 30 sec Prime Time Spot = $40 30 sec Non Prime Time Spot = $30 15 sec Prime Time Spot everyday up until the launch (X14) = $350 During: 15 sec Prime Time Spot twice a day during duration of the pop up shop (X14) = $350 This is part of the Promotional Plan because it is our last effort to create hype for the pop up shop as well as hopefully hype for a permanent TJ Maxx store. We found out that the Dominican Republic responds best to radio ads and that radio ads reach a broader audience.

ARTIST COLLABORATIONS: This will not be a monetary exchange, rather a mutually beneficial relationship.

They will donate artwork to be displayed in our pop up shop in return for exposure and free publicity. The gallery is called Galeria Bolos. Having art from a local gallery hang in the pop up shops makes TJ Maxx already feel like they are part of the community. This is an important step because if the pop up shop is a success they will go forth and meet their objective to make a permanent store. Once they do this they will be part of the community officially.

84

85

BUDGET

FINANCIAL PLAN Location foot traffic per day

90,000

90,000

60,000

70,000

70,000

70,000

90,000

Percentage conversion

0.005

0.005

0.003

0.003

0.004

0.004

0.005

NET SALES

$10,500.35

DAY 1

DAY 2

DAY 3

DAY 4

DAY 5

DAY 6

DAY 7

COGS

$4,200.14

Footfall

50*

450

180

210

280

280

450

GROSS MARGIN

$6,300.21

Conv. %

0.11

0.12

0.04

0.06

0.06

0.06

0.10

$66.50

$66.50

$66.50

$66.50

$66.50

$66.50

$66.50

total rev.

total rev.

total rev.

total rev.

total rev.

total rev.

total rev.

$365.75

$3,591.00

$478.80

$837.90

$1,117.20

$1,117.20

$2,992.50

$10,500.35

$146.30

$1,436.40

$191.52

$335.16

$446.88

$446.88

$1,197.00

$4,200.14

Avr. Basket

60% Markup Product Swim

20%

$73.15

$718.20

$95.76

Tops

15%

$54.86

$538.65

Bottoms

20%

$75.15

Dresses

15%

Shoes/accessories Home

$167.58

$223.44

$223.44

$598.50

$71.82

$125.69

$167.58

$167.58

$448.88

$718.20

$95.76

$167.58

$223.44

$223.44

$598.50

$54.86

$538.65

$71.82

$125.69

$167.58

$167.58

$448.88

15%

$54.86

$538.65

$71.82

$125.69

$167.58

$167.58

$448.88

15%

$54.86

$538.65

$71.82

$125.69

$167.58

$167.58

$448.88

As a more lifestyle centered mall we found the foot traffic to be lower than a traditional shopping mall, and with the pop-up location being on the rooftop the % conversion of the space in ratio to the foot traffic has our footfall between 180450 people per day. With an average basket of $66.50 and a conversion rate ranging between 4% and 12%, our planned net sales for the duration of the pop-up will be $10,500.35. The pop-up shop will run for one week starting with a launch party on Friday, and running through Thursday of the next week.

EXPENSES Build out

$3,000.00

Interior Fixtures

$2,017.89

Exterior Fixtures

$800.00

Wages

$3,240.00

Rent

$7,000.00

Promotional Activities

$9,443.00

Shipping

$2,500.00

Hotel/Flights

$3,000.00

TOTAL EXPENSES

$31,000.89

PROFIT/LOSS

-$24,700.68

*Friday’s launch event that is invitation only

86

87

BIBLIOGRAPHY Admin, Posted By:. "Pop up Shop." Nautica 360 Blog. N.p., n.d. Web. 28 May 2017.

Areavibes. "Santo Domingo Pueblo, NM Demographics." AreaVibes - The Best Places To Live. N.p., n.d. Web. 28 May 2017.

Enelow, Skift Sarah, Skift Dan Peltier, DEEM Skift, and Jessica Rapp Jing Daily. "Santo Domingo's Cleanup Effort for Tourism Is Worrying Its LongTerm Residents." Skift. N.p., 17 Apr. 2017. Web. 28 May 2017.

Boeder, Alex. "Dominican Republic – Facts and Statistics." (n.d.): n. pag. DR Ministry of Tourism. Web.

"Global Growth." TJX.com. The TJX Companies, Inc., n.d. Web. 28 May 2017.

"DIRECTORIO." Sambil Santo Domingo. N.p., n.d. Web. 28 May 2017.

"Dominican Republic Data." FindTheData | A Research Engine. N.p., n.d. Web. 28 May 2017.

"Dominican Republic Demographics Profile 2016." Index Mundi. N.p., n.d. Web. 28 May 2017.

"Dominican Republic ." Dominican Republic | Data. N.p., n.d. Web. 28 May 2017.

"Dominican Republic - Economic Indicators." IECONOMICS. N.p., n.d. Web. 28 May 2017.

"Dominican Republic Inflation Rate 1984-2017 | Data | Chart | Calendar." Trading Economics. N.p., n.d. Web. 28 May 2017.

"How We Do It." T.J.Maxx. N.p., n.d. Web. 28 May 2017.

"I Want to Franchise Tjmaxx in Europe,..." Facebook. N.p., n.d. Web. 28 May 2017.

Iiwinc. "Shopping in Santo Domingo." Shopping in Santo Domingo | Caribya! N.p., n.d. Web. 28 May 2017.

"Inicio." Ágora Mall. N.p., n.d. Web. 28 May 2017.

"Dominican Republic Internet Usage, GNI and Population Stats Reports." Internet World Stats. N.p., n.d. Web. 28 May 2017.

Isidore, Chris. "T.J. Maxx, Marshalls and HomeGoods plan to open thousands of new stores." CNN Money U.S. Cable News Network, 18 May 2016.

Web. 28 May 2017.

"Dominican Republic Overview." The World Bank Working for a World Free of Poverty. N.p., n.d. Web. 28 May 2017.

"Jobs." Find Jobs and Careers - SimplyHired.com Job Search. N.p., n.d. Web. 28 May 2017.

"Dominican Republic Population 2017." Dominican Republic Population (2017) - World Population Review. N.p., n.d. Web. 28 May 2017.

Kowitt, Beth. "Is T.J. Maxx the Best Retail Store in the Land?" Fortune.com. Fortune, 10 Aug. 2015. Web. 28 May 2017.

"Dominican Republic." Press Reference. N.p., n.d. Web. 28 May 2017.

Levine-Weinberg, Adam. "For TJX Companies, Europe Is Both a Blessing and a Curse." The Motley Fool. The Motley Fool, 26 Nov. 2016. Web. 28 May 2017.

"Dominican Republic." U.S. Department of State. U.S. Department of State, n.d. Web. 28 May 2017.

"Deliver Off Price Value | TJX.com." Investors | TJX.com. N.p., n.d. Web. 28 May 2017.

"DR Demographics." Dominicanrepublic.com. N.p., n.d. Web. 28 May 2017.

"Editing and Managing Instagram Ads | Facebook Help Center | Facebook." Facebook. N.p., n.d. Web. 28 May 2017.

"Education Statistics of Dominican Republic 2015." Knoema. N.p., n.d. Web. 28 May 2017.

88

"Grupo Inditex." Zara. N.p., n.d. Web. 28 May 2017.

"Living in the Dominican Republic." Living in the Dominican Republic | InterNations. N.p., n.d. Web. 28 May 2017.

Lutz, Ashley. "One Retailer Is Reaping Huge Benefits from the Trend Killing Macy's, Kohl's, and JCPenney." Business Insider. Business Insider, 27 Aug. 2015. Web. 28 May 2017.

Lutz, Ashley. "The Secretive Strategy That Made T.J. Maxx America's Most Powerful Apparel Retailer." Business Insider. Business Insider, 25 July 2014.

Web. 28 May 2017.

89

Martin, Graciela. "'Dominican Power' on the Catwalk." The Business of Fashion. N.p., 10 Mar. 2017. Web. 28 May 2017.

Mateo, Ashley, and Erica Lavelanet. "The List-TJ Maxx Partnership." Refinery29. N.p., n.d. Web. 28 May 2017.

Merchandisingmatters. "The Secret Strategy of TJX." Merchandising Matters. N.p., 28 July 2014. Web. 28 May 2017.

"Moda." Blue Mall Santo Domingo. N.p., n.d. Web. "Moda." Galeria360. N.p., n.d. Web. "More Canadian Tourists Visiting the Dominican Republic in 2017." Caribbean News Digital. N.p., n.d. Web. 28 May 2017.

"Nautica - The Official Site For Apparel, Accessories, Home & More." Nautica. N.p., n.d. Web. 28 May 2017.

Novocentro. "Novo Centro - Santo Domingo, Republica Dominicana." YouTube. YouTube, 10 Feb. 2009. Web. 28 May 2017.

"Novo Centro (Santo Domingo, Dominican Republic): Top Tips Before You Go - TripAdvisor."Read Reviews and Book Your Perfect Trip. N.p., n.d.

Web. 28 May 2017.

"TIENDAS." Carib Wind. N.p., n.d. Web. 28 May 2017.

"T.J. Maxx Mystery Solved: A Marketing Strategy." MacStories. N.p., n.d. Web. 28 May 2017.

"TJ Maxx Secrets | TJ Maxx Facts | What You Don't Know About TJ Maxx." SheFinds. N.p., n.d. Web. 28 May 2017.

Tjmaxxonline. "T.J.Maxx." YouTube. YouTube, n.d. Web. 28 May 2017.

"Top 7 Tech Startups from The Dominican Republic You Need to Know About in 2016."Techflier -. N.p., n.d. Web. 28 May 2017.

Tourism, Dominican Republic Ministry of. "Dominican Republic Announces 2016 Developments and Boasts Strong Tourism Statistics." PR Newswire: News Distribution, Targeting and Monitoring. N.p., 03 May 2016. Web. 28 May 2017.

User, Super. "Radio Advertising Rates." GTC Radio 89.9 & 90.5FM - Radio Advertising Rates. N.p., n.d. Web. 28 May 2017.

"ZARA SETS A DREAMY SCENE FOR SPRING 2016 CAMPAIGN." Fashion Gone Rogue. N.p., n.d. Web. "15 Dominicanas taking over the style game on Instagram."Vivala.com. N.p., n.d. Web. 28 May 2017.

O'Donnell, Jayne. "Behind the Bargains at T.J. Maxx, Marshalls." USA Today. Gannett Satellite Information Network, 25 Oct. 2011. Web. 28 May 2017.

"Our History." TJX.com. The TJX Companies, Inc., n.d. Web. 28 May 2017.

Pasquarelli., Adrianne. "How TJX Crafted a Winning Marketing Playbook." Ad Age. N.p., 23 May 2016. Web. 28 May 2017.

"Project References from Around the World." Distech Controls' Project References Across the World. N.p., n.d. Web. 28 May 2017.

"Promote Your Page | Facebook Help Center | Facebook." Facebook. N.p., n.d. Web. 28 May 2017.

"Retailing in Dominican Republic." Euromonitor International. N.p., n.d. Web. 28 May 2017.

"The Dominican Republic Bucket List: 9 Amazing Places You Must Visit." Reader's Digest. N.p., 13 Mar. 2017. Web. 28 May 2017.

"The 2016 Global Retail Development Index." AtKearney. N.p., n.d. Web. "Things To See and Do In The Dominican Republic." World Travel Guide. N.p., n.d. Web. 90

91