New to you
Business Plan New to you
Fenella Waike-Pawsey U1706096 Fashion marketing- FMP FT61001920
Date Created : 9th june 2020
Exec Summary
New to you is a company with the aim to educate millennial parents who are fashion conscious but feel the need to liv a sustainable lifestyle at the same time. The company has dominated the market for a platform that can educate and give the audience the sustainable life style that they desire, Through the use of an App that features Ai technology the company. That company can be seen to have a steady growth through its 3 year plan generating high profits from the first year. Suggesting the demand for second hand clothing for children is high.
Contents Exec Summary introduction Bussiness enviroment -key drivers bussiness describtion process flow Market research custermer market segmentation App market AI technology Consumer profile competitor analysis porters 5 forces Ansoff matrix Innovation ambition matrix swot pestle Market plan communications startegy Organisation structure Finacial
INTRODUCTION The average family in the Western world throws on average of 30 kg of clothing per year and only 15% of it is recycled and given away to second hand, the rest goes to landf ills. the shocking reality of the of this growing crisis in the industry is that 72% of our clothing are made f rom toxic materials such as synthetic f ibres, which are non-biodegradable, taking up to a staggering 200 years to decompose. Sadly Every year 80 billion new clothes are consumed in the world and less than 1% of the material used to produce these clothes is reused in new textiles and f ibres. The fashion industry
has become
the second most polluting industry behind oil and gas, the environmental damage will only increase as the industry grows. Since clothing has become disposable due to the rise in fast fashion companies where clothes have become cheaper to buy become a major waste consumer.
RATIONAL
With this said the majority of fast
the end of 2019 I found that I even worn, or only worn them
and lower in quality, the industry has
fashion e-tailors becoming copycat offenders and adding hundreds of cheap and low quality products to their websites weekly, it has become a huge trend to shop second hand! So, what is the solution to this huge problem? With huge players such as Ebay, Depop and pre loved have risen savey consumers are becoming happier to buy their clothing second hand and get a bargain then buy brand new.
Since having my f irst born at is half the clothes he had never had suddenly accumulated (like once. What a waste of clothing most parents)bags and bags and material this is,
I thought
f illed with vests and baby grows to myself I could save them till that had I had brought myself someone I know has a baby but or id been gifted by family and what if they have a girl? How f riends, all of which had spent long will it be until someone money on these lovely outf its has a baby? I suddenly started and some even being designer.
to think to myself and started to
Unless Elliot was going to sud- see that there must be a gap in denly shrink he was never going the market for a sustainable way to wear these clothes again and of getting rid of our preloved the sad thing
children’s wear.
AIMS AND OBJECTIVES -To create a sustainable business by contributing to the clean up of the mess and waste created by the fashion industry. -To create an inspiration and innovative online market place. -To become the leading fashion focused and sustainable, online second hand online market place by 2024. -To create an ethical, educating and engaging professional magazine and website.
WHAT I WANT TO SAY TO MY FRIEND- I am going to start a website where Parents can f ind second had designer baby/toddler clothes at affordable prices. I also want create a place where mums to be can rent maternity clothes. TO MY CHILD- I want to create a website so that I can buy you designer clothing for cheaper and help the environment at the same time. TO MY TEACHER-I want to bridge the gap in the market that I have found between fashion conscious parents wanting to buy high quality clothing but looking for the items at more affordable price as well as a more economic and sustainable way of purchasing.
-To help mothers to maintain their identity and conf idence throughout their pregnancy. -To further explore the effects of the fashion industry and the environment. -To communicate New to you’s values and brand message through our marketing strategy.
Business environment
Key drivers (trends)
The boom in second hand clothing SUSTAINABILITY With the majority of fast fashion e-tailors becoming copycat offenders and adding hundreds of cheap and low quality products to their websites weekly, it has become a huge trend to shop second hand! With huge players such as eBay, Depop and pre loved have risen savey consumers are becoming happier to buy their clothing second hand and get a bargain then buy brand
WHO ARE THE SECONDE HAND SHOPPERS?
Here shows a pie chart that displays second hand shoppers by their age groups. I gathered my information f rom (thredup,2019).
Here shows the percentages of types of shoppers that shop second hand.
-Luxury shoppers26% -Department shoppers-25% -Value chain shoppers-22% The results indicate that Boomers and Millennials shop the most second hand. I will take this into consideration when using my target audience as this could mean that grandparents and young parents could fall into this age range meaning they are the age group most likely to purchase on my second hand baby designer clothes website..
DIGITAL CONNECTIVITY
MOBILE COMMERCE
Digital connectivity is where consumers uses there
Here are some statistic I have found f rom an arti-
devices (smart phones, iPad, laptops) to experi-
cle ( SHUKAIRY, A.Mobile Commerce Statistics and
ence new services that use video, voice and data
Trends).
services that is provided anywhere at any time.
The stats show that 95% of Americans at the end
The speed and simplicity of digital connectivity is
of 2018 will look up a business to f ind where it is
changing how we communicate and do business,
and there contact information on their smart-
meaning a successful business will have followed
phones rather than on any other device 27% of
the trend in order to keep up with competitors.
retails at the end of 2018 where made on smart
According to (kravers 2011) ‘disconnecting people
phones and 53% will use there smart phones or
f rom internet access is a human right violation.’
tablets and download the business’s app f rom the
This suggests that the internet has become as
app store to use. It appears shoppers use there
much of a necessity to humans as food and water.
smart phones for easy and quick navigation when
‘The 4 game changing moments’
making purchases. In conclusion, these stats show that shoppers are more likely to use their tablets/smartphones than anything else when deciding or making purchases. This suggests to me that it is extremely important for my business to have a strong online present As well as an mobile f riendly website for me to gain my audience’s attention
95%-of mobile users in the US look up information on their smartphones with the purpose of contacting or visiting a business . 27%-of retailer sales at the end of 2018 where made on smart phones. Marketers are using ‘micro-moments’ to attract their audience’s attention and fulf il their instant decisions. according to (Paoletti, 2013) Whenever a customer searches for something, looks for a nearby store, wants to f inalize a task or makes a purchase, marketers are taking
advantage of these types of
micro-moments to create targeted content and advertising.
53%- of smartphone and tablet owners will shop on company apps such as e-tail’s that they have downloaded f rom the app store.
Business environment THE RISE OF THE CONSIOUS CONSUMER Appendix
THE RENT/SHARE ECONOMY The rental economy: ‘It’s not a trend, it’s a move-
According to (Jr., 2020) Its ‘Millennials, who are
ment’ (Valentine, 2020)
driving most of the growth in the sharing economy’ Millennials have adopted new values. ‘Eff i-
The rise of renting and sharing items is on the
ciency is the utmost priority, material yearnings
up, since the throwaway culture based on cheap
are starting to fade, and accessibility to experi-
products, shoppers are increasingly opting to
ences (like eating out at restaurants with f riends,
rent products, f rom fashion to furniture, in their
not spending money on possessions like expen-
search for sustainable solutions that suit modern
sive jewellery or new furniture) takes precedence
attitudes to ownership.
over ownership.’
sharing economy is an economic system in which
From reading the (Jr., 2020) Forbes article who
assets or services are shared between people for
state ‘There are thousands of companies and in-
a fee. The concept is to enhance the usability of
dividuals with assets waiting to be used. I believe
assets, making their lifespan more worthwhile. I it
entrepreneurs should start looking at alternative
allows consumers who want a product but either
ways their clients could access and use the prod-
cant pay the full price, only want it for an event
ucts they are currently selling. For example, if you
or don’t have the space to store it long term. For
sell high-priced luxury goods, maybe you want
example you can rent the newest Louis Vuitton
to consider a rental/subscription option.’ This is a
handbag for a period of time through Rent the
strategy that New to you will consider to go down
runway by paying a fee.
in the future. It is clear the market for rental items
Sharing economy isn’t quite a new way of life.
is on the rise. Therefore, one of New to you’s goals
Rentable or shared goods have been around for
will be to enter the rent economy market by rent-
ages, but ease of connections through the digital
ing maternity garments for events.
world have boosted accessibility and convenience to users who now have a better ability to seek things out through apps and social media and get them easily.
VISION
To create a new meaningful approach towards seconded hand clothing. By recognising and educating millennial consumers efforts towards improving their sustainable lifestyle. As well as, providing them with a platform they can not liv without.
MISSION
New to you is committed to a single objective allowing consumers to seek f riendship during parenthood. As well as shop second hand designer clothing in a ethical way. New to you wants to empower and educate users through an innovative platform. New to you, wants to change all parents shopping habits in to an ethical one, one baby grow at a time.
USP’S
ETHICAL
CONECTIVITY
INNOVATIVE
Business description The oppotunity
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New to you checks quality’s and authenticity of items
Seller decides to sell pre loved items
Seller sends items to New to you
Price is approved by New to you and agreed by seller if items are up the quality standards
Unapproved items are sent back to seller or donated to charity (up to the seller)
Once approved and price agreed New to you than washes items in a way that is suitable to sell on
Items are than photographed and uploaded to website by New to you
Subscribe’s to NEW2U make their purchase Seller is paid and NEW2U TAKES 20% including shipping fees
Items are shipped out to buyer in none plastic, Minimum, sustainable packaging
PROCESS FLOW
‘Marketers who create and document a marketing strategy are 538% more likely to report success than those who don’t.’
(Marketing Strategy for 2020 - How to Create a 7-Figure Business Quickly, 2020)
Market research
Methodology- primary/secondary research used.
Online articles/blogs/books/ magazines/trend reports.
Confirmation of the strategic decisions and to gain a wide understanding of the business environment.
Target audience Focus group
To gather information from the Primary target audience concerning the brands values.
Marketing focus group
To gather information from Primary the target customer concerning ways in which marketing and production idea would suit the target audience. To gather target audiences pur- Primary chasing habits. As well as finding out audiences understanding of ethical clothing and if it is important to them. To gather opinions on if my Primary advertising is successful and reaches my audience.
Online survey
Advertising survey
Secondary
Polls
To see how my younger audience (millennials) react to my idea.
1-1 interview
To gain feedback from the tar- Primary get audience in order for me to improve and relate more to my customer.
Ebay experiment
To test my theory and trading process for when I go live on my website. This exercise was done to make any changes to my errors and add what needs to be improved.
Primary
Primary
Customers- market segmentation
The days of consumers supporting brands without knowing about their ethical decisions are over, thanks to the internet. It is becoming easier for consumers to educate themselves about the environmental practises of large companies. This also means major companies sustainable missteps can no longer be hidden or brushed under the carpet, consumers are becoming more aware of their un ethical buying habits according to Buyapowa (Buyapowa’s Expert Insight on Referral Marketing | Blog, 2020). This is why identifying the correct and suitable target consumer and types of buyers are crucial for NEW2U to ensure the brands awareness and values are orchestrated correctly. Following an array of primary and Secondary research on consumers buying habits, NEW2U have come to conclusion that there target audience will mainly focus directly at a female millennial audience (25-37) as well as the Gen X audience (38-55), who are looking to liv a greener and sustainable lifestyle but are also fashion conscious. Growing up with major companies such as Apple and referring to a time before the Web as med- evil. It is vital that NEW2U needs to be ‘visionary in their approach and relentlessly forward-thinking’ (innovation, 2020). NEW2U will need to analysis consumers’ needs and goals in order to capture their attention. “Millennials enjoy the possibility of collaborating with businesses and brands, as long as they believe that their say matters to the company in question. They don’t necessarily see a clear boundary between the customer and the brand, the customer and marketer, and the customer and service provider.” (innovation, 2020) According to (Iisd.org, 2020) The most responsive age group tends to be Young adults (millennials), influenced by their children to a sustainable life style. This suggests women are the key target audience for NEW2U. women are also often responsible for making purchases on behalf of men. Therefore NEW2U must not be stereotypical. (Iisd.org, 2020) also suggests that ‘green customers’ tend to be people of more money to spend and tend to shop at the higher end of the market. ‘Green customers’ also tend to be intellectuals and educated in order to be inclined to understand and apricate the values of sustainability.
HOW CONSUMERS PURCHASE- (From my survey-Primary research) Appendix 85% of customers will buy second hand clothes for their children. 77% of customers care that there children’s clothes are sustainable 30% of customers consider the environment when purchasing f rom the environment CONSUMER HABBITS (ThoughtShift, 2020) Secondary research- Apendix
App market The app market is growing fast, the industry is huge and growing daily, it is clear that there has been a huge boom in the market. ‘App Annie reports that in 2015, the mobile app industry generated a whopping $41.1 billion in gross annual revenue and that this figure will rise to $50.9 billion. Gross annual revenue is projected to exceed $189 billion by 2020, according to Statista.’ (Current Trends And Future Prospects Of The Mobile App Market — Smashing Magazine, 2020) With the app market on the financial rise means that there is opportunity for New to you’s business plan to incorporate an app. This will not only benefit consumer convenience but it will have a positive impact on the companies growth in the future. ‘Lifestyle and shopping solutions recorded an 81% growth.’ With the statistics rising of the time spent on shopping apps indicates that building an app for New to you is the way forward and looks as if it will only get higher.’ 82% of 19-37-year-olds saying they use their phones to shop at least once a month.’ And ‘Older Millennials are the most likely to be opening a shopping app every week, with half of 25-37-year-olds reporting that they do so.’ (How Gen Z & Millennials Are Shopping On Their Phones, In 3 Charts – YPulse, 2020) These figures indicate that the target audience of New to you are the generation that are most likely to order or search for an item using their phone.
AI Technology
AI or Artificial Technology is a combination of technologies that rapidly analyses data and is able to mimic human like behaviours/ decisions. (AI and everything you need to know about it | Brainalyzed Insight, 2020) Within New to you interface AI can increase app sales and conversion rates, by tracking users behaviours on the app in order to obtain data such as personalisation. This will help users find the products that are cater to them such as gender, size, style, ect In reaction to their personal profile or shopping habits on the app. The use of AI technology will enable New to you to compete with larger compa-
23% of participants didn’t know what Depop is Primary research- appendics
Competitor universe analysis Appendix -
Market of Mums
Competitor analysis APP COMPARISON Despite both apps ‘Market for mums’ and ‘New to you’ sharing the same target audience, market for mums does not have the same theme or values of New to you. New to you will make it clear to customers that the app is sustainable and will contribute towards the clean-up of the mess that the fashion industry has made to the environment, ‘Market of mums’ does not share the same values. From researching into both second hand market place apps, It is clear that ‘New to you’ will have its own niche. It seems that the apps researched dot not provide an authentic check so they don’t know what there selling . Another value that ‘New to you’ will carry out is packaging will be minimal and recyclable It is important for New to you to monitor the Market of mums app and similar second hand market place apps so that we can be inspired by their strengths and learn f rom their mistakes.
Brand
Positives
Negatives
Depop
-10% seller fees included with -site doesn’t check authenticp&p
ity of products on site
-wide variety of choice
-up to the seller if they want to
-integrate with social media
do exchanges and refunds.
millennials (tech savey audience) -simple to navigate -easy to post items to sell follow
other
members
ac-
counts -build your own following to sell more -buyer seller relationship -Depop
sometimes
f reezes
fees as an incentive
Market of mums
-Shop f rom celebrity mums - Cant check authenticiy of products and dads such as Sam Faires. - to many celebrity endorse-Selling fees = 6% +30p ments who clearly dont use app (£10=90p) -Free to list items -Subscription -App asks personal questions to cater for subscribers needs -Easy to navigate -Chat to other mums -No auctions -Celebrity endorsements
Porters 5 forces
Using Porters 5 forces to analyse the threat intensity that New2U
Depop and Market of Mums due to the high demand in second ha true to their message and values as well as maintaining a loyal rel
s
U could potentially face f rom rivals such as
and clothing . However, by New2u remaining ationship with our customers.
Ansoff Matrix
New to you will use the market penetration strategy as its core growth strategy. ‘The goal of Market Penetration is to sell more products to its target customers’ (Chan, 2020) Meaning that New to you will grow at a low risk to begin with. However, ‘there will come a time where relying entirely on market penetration for business growth will no longer work. Eventually, you will reach a point where the market is saturated, and there just aren’t enough customers to sell to.’ (Chan, 2020) Therefor, in order to keep growing New to you will eventually will adapt to a higher risk strategy ‘product development’ by doing this it will increase the market share by develop more products or adding new features to our app for our existing target audience. Furthermore relying solely on market penetration will only get us so far and focusing on development will be quite risky to begin with. Therefor New to you will also follow Innovation Ambition Matrix framework in order to establish how we will invest are growth.
New to you will use a combination of Core Initiatives (focus on the improvement and optimization of our current product and customers) and Transformational Initiatives (by operating with the view of inventing a new product or
Innovation Ambition Matrix
By using follow Innovation Ambition Matrix as our strategy will adhere the 70/2010 rule: ‘70% of your growth strategy should focus on your Core Initiatives, 20% on testing and running experiments with your Adjacent Initiatives, 10% of investing to researching and experimenting with something entirely new’ (Chan, 2020)
Swot Analysis
PESTLE analysis PoliticalWith Brexit soon approaching with high levels of inflation, designers and luxury brands have been effected. ‘Hard Brexit — where existing trade deals disappear, and designers, retailers and manufacturers would have to pay to trade with the EU — would mean clothing and footwear tariffs of about 11 per cent, or just over £1 billion more each year.’ (Evening Standard, 2020) Due to the rising costs consumers will be more inclined to buy there designer goods second hand, benefiting New to you. With the exposure of the colossal damage the fashion industry has made to the environment ‘The EAC also suggested that there should be a ban on incinerating or landfilling unsold clothes that can be reused or recycled.’ (The Independent, 2020) Fast fashion companies are being made accountable and consumers are more inclined to recyling there garments and buying second hand ‘Director of Labour Market Enforcement Sir David Metcalf, who was appointed in January to oversee a government crackdown on exploitation in the workplace by setting the strategic priorities for the government’s three enforcement agencies: HMRC’s National Minimum Wage (NMW) enforcement team, the Gangmasters and Labour Abuse Authority (GLAA), and the Employment Agency Standards Inspectorate, has said that the government agencies plan to identify and punish serious and repeat offenders.’ (Wightman-Stone, 2020) With this said if New to you doesn’t comply with the law they could face imprisonment E-ECONMICS A recent survey states that ‘Consumers downloaded a record 204 billion apps in 2019, up 6% from 2018’ (Techcrunch.com, 2020). The growth of more and more businesses creating applications for their consumers, meaning New to you will have to follow this trend to keep up with competitors and remain relevant. According to (65% of consumers use shopping apps to receive exclusive discounts, 2020) ‘Around twothirds (65%) of consumers are using eCommerce apps mostly to receive offers and deals, according to research by Clutch.co, the mobile app developers.’ This is an indication that New to you will use there app as a promotion tool to push sales and offer exclusive discounts for subscribers. S-SOCIAL Forbes recently released an article pointing out millennials spending habits. The article states that ‘60% of millennials state loyalty to brands they currently purchase from if treated well through customer-centric experience’ (Costin, 2020) This article indicates that in order for New to you to target there millennial audience and maintain their business , we will have to offer loyalty schemes. This may be introducing refer a friend discount or gaining points from every purchase to unlock discounts on to subscribers account. It is clear that from this article New to you, will contact subscribers via web mailers and push notification on their smart phone with offers, in order to gain there business. .
T-TECHNOLOGY e-commerce stores are becoming increasingly popular within the market. A recent article stated that ‘Mobile applications have proven to be quick and effective in engaging customer interest and communicating product launches, new services, promotional offers, improved features and discounted rates.’ (7 Surprising Benefits of Mobile App For Your Business, 2020) New to you will use their mobile app to engage with their audience and will become an app that they can’t liv without, despite the start-up cost of the app being expensive. E-ENVIROMENTAL New to you’s main USP is being an environmental friendly business, selling second hand designer clothing with a mission to contribute to the end the fashion industry polluting our world. ‘Getting sustainability right pays dividends as consumers, led by millennials and Gen Z, are demanding it: online searches for “sustainable fashion” tripled between 2016 and 2019’. (Cheng, 2020) With the rise of enviromentally friendly consious consumers is a huge beenfit for marketing the New to you brand. In order, for New to you to have a successful USP they will aim at an audience that seems to purchase the most but has sustainable in mind. Our business will have to educate our audience on how we are environmentally friendly L-LEGAL ‘The latest General Data Protection Regulation (GDPR) framework was introduced in May 2018 and now provides Europe with the world’s strongest data protection. In a nutshell, GDPR gives a greater protection to the rights of the public with regards to their personal data. If your website collects user data, for example from an enquiry form, you should include a privacy policy that informs website users how you will retain and process their personal information.’ (eCommerce Website Legal Requirements - Are You Compliant? | iWeb, 2020) It is vital that New to you meets the data protection act outlines when storing customers information, in order to protect personal data, the act gives customers the right to know what information is stored for marketing tools. New to you will notify the office of the information commissioners that they are collecting data. The data protection principles state that New to you and the government should make sure information is: -used fairly and lawfully -used for limited, specifically stated purposes -used in a way that is adequate, relevant and not excessive accurate -kept for no longer than is absolutely necessary -handled according to people’s data protection rights -kept safe and secure -not transferred outside the European Economic Area without adequate pr (eCommerce Website Legal Requirements - Are You Compliant? | iWeb, 2020)
Market plan
Retail/online/wholesale/franchise
In order to maintain the brands personal identity, as CEO I will not be looking to sell out to a large company to make a franchise as of the forceable future, as a company we wish to stay independent and always own the rights to the business . However, the aim is to grow New to you into a house hold name as an Online E-tailer but with the view to expand and open pop up concessions in luxury stores such as Selfridges or Harrods
Product:
USP= ETHICAL . CONNECTIVITY . INOVATIVE 85% of participants agreed that ‘they would like to be more informed about how the fashion industry has affected our environment’ and a 80% of participants who took part in our poll ‘believe there should be more awareness when it comes to ethical and sustainable fashion brands’ New to you’s aim is to support the end of the rising environmental crisis caused by the fashion industry by decreasing the amount of clothing waste in landfills. The business aims to solve these issues through creating an informative second hand marketplace via an AI embedded IOS application service which allows users to purchase second hand designer clothes and informs them with latest news regarding the sustainable fashion. The use of AI technology allows users to experience personalisation within the app, enabling them to find products that as been catered to them instantly. This allows the business to meet social demands as the technology uses the database from there recent activity, allowing the brand to have a strong consumer led USP. In regards to B2C, the product is a consumer database that uses the AI technology to enhance the users experience by building a advanced IOS app. A secondary feature on the app which is accountable for some of New to you’s revenue is promoting the maternity Rent a dress service. This service allows mothers to be to rent an outfit for a special occasion ie Wedding or an event. This service is an appropriate solution for the brand to meets its aims of putting an end to dumping clothing in landfills, as they are supplying users with an option to rent an outfit for an event and return it when they are finished. This use of AI allows users to immediately find what it is there looking for. The subscriber will go to the section where they can rent an outfit and select their size and the occasion, once chosen customer pays a deposit and the cost of the outfit and decides how long they want the outfit for, the item gets set to them. Once the outfit is used the customer will send it back to New to you who will dry clean the product and start the process again. If the customer fails to return the outfit or is late they will be charged additional fees.
Process
Place New to you will be visible on appropriate target audience platforms following the brands identity throughout to gain brand awareness. The findings from the app competitor research (page) New to you will appear in the iOS app store and consider to expand to the Android market in the future Prior to the launch, New to you will go through a series of phases to find improvements and correct any glitches on the app as well as gain valuable feedback. New to you, will go through a Beta testing phase before the launch to test technology like AI features in order to prompt the database before launching the app. New to you, will also use AI technology to predict forecasting and planning to avoid any forecast errors.
Price The app will be free to download from the app store, To subscribe to New to you will also be free to keep up with their competitors and gain intertest and traffic to the app. The business objective is to sell second hand clothing, therefor there products will be up to 65% off RRP. 9 participants took part in a focus group who all agreed that the best option to price the items is by New to you charging for postage and packaging and taking 10% +ÂŁ5 the price of the item as there fee for selling the item in year 1.
Promotion 60% of millennials who participated in my survey say that Instagram is the most used app on their phone. In order for New to you to stand out against larger competitors and make an impact prior to their launch . New to you will heavily focus on their social PR and advertising to gain a strong online presence. New to you will work hard to carefully choose a suitable influencer to be our brand ambassador to endorse the brand and gain brand awareness. By having a strong online presence with a suitable brand ambassador will expand a wider range of audience, boost downloads and encourage sales.
Communication strategy OBJECTIVES: 1. To create a profitable platform service and heighten brand awareness by achieving 12000 subscribers on our within the first year. 2. To gain 50K followers on Instagram within the first year. 3. To sell a minimum of 500 second hand garments a months. 4. To secure a contract with a suitable brand ambassador to avoid being poached by competitors. 5. By the end of year 1 the company will consider a pop concessions store in a luxury store. 6. By the end of year 1 I want to be consumers first choice before competitors when purchasing second hand goods
DRIP MODEL - DIFFERENTIATE: To create an AI featured app aimed at an millennial audience. - REINFORCE: New to you will promise to carry out their brand message by ensuring customers that the products sold are 100% authentic. - INFORM: New to you is an informative application and will use its platform to educate its users. - PERSUADE: By having a successful online presence means the company can interact with a large audience informing them with the latest news regarding the app and business and interact with them through influencers and give a ways as a strategy to gain followers and subscribers. AIDA MODEL - AWARENESS: Brand message = Sustainable and fashionable. The company will run a 2 month online presence PR campaign via social media including brands ambassadors prior to the brands launch. - INTEREST: By creating innovative and creative content reflecting the brands USP’S via social media to create brand awareness. - DESIRE: I used my own journey that inspired me to bridge the gap in the market between fashion conscious parents millennial parents and a sustainable and ethical lifestyle. - -ACTION: Influencers will Promote the brand on their social media pages such as Instagram and Facebook to encourage parental customers to subscribe and download the app.
Communication matrix COMMUNICATION PLAN AND OBJECTIVES - We aim to build consumers trust and loyalty as well as increase engagement via innovative marketing techniques and social media by using our suitable brand ambassadors who share the same values of the brand. This strategy will gain potential customers trust by allowing the business to orchestrate the brands tone of voice and USP’S throughout its platforms consistently, with a result of large traffic engagements to the app. -
Increase social media followers by 75% in year 2 compared to year 1.
- To increase brand awareness and hype towards potential pop up concessions via IGTV, Twitter and Instagram stories. - To be in the top 40 lifestyle and shopping category on the IOS app store amongst competitors by year 3.
Marketing timeline and PR event As part of New to you’s launch the business aims to create a PR event to create an offline visual representation of the apps business model. The event will combine the brands ambassadors, potential consumers, faces of the business and potential sponsor’s and investors. Together through an interactive and ‘Instagramable’ launch event. The event will give the business the opportunity to gain media attention, push potential business investors and most importantly educate consumers consumers on the USP’s of the company. The event will be heled at the London collage of fashion. The aim of the event is to provide the audience with a physical experience of the app which reflects the brands USP’S. Therefore, the brand will give brand ambassadors a personalised press pack, including the new to you tote back and the personalised bottle and baby grow which has been catered to there children’s identity. This will create an emotional connection through a personal approach between the person and the brand. This will also create an opportunity for the influencers to post about the packages on social media as well as documenting and vloging the event, resulting in creating a hype over the launch, gaining followers and subscribers. Overall, the PR event is vital in order to create hype and brand awareness in order for the business to have an successful app launch in the near future.
Marketingbudget Activity
Reason
Price
Instagram influencers posts
Choosing appropiate brand Ambassadors to post about the brand on there socials will gain brand awareness resulting in encouraging sales.
£750 estimated
Social media interns
Using interns to run the social media Free pages means they gain bussiness skills within our bussiness. Whilst the brand is still small, ensuring we can keep costs down during the first year.
Emailing, text messaging and push notifications marketing
Free The interns will work hard to inform customers latest deals and what is going on within the brand. This strategy ensures we are communicating with our customers.
Social media oe Facebook and Instagram
Having a strong online platform is vi- Free tal to connect with our millenial audience by showing our brand essence and USP’s
Bussiness cards- 100% recycled paper made from old T-shirts
£8000 cards=2051.99 It is important that as a brand we =21p per card show are brands essence within the media we pressent. Using ethical material will show our audience that we believe in sustainable living.
Stickers and packaging recycled ethical materials
It is important that as a brand we show are brands essence within the media we pressent. Using ethical material will show our audience that we believe in sustainable living.
2080= £40752 = 0.16p per item
Launch Party PR event
By having a launch part for the brand £5000 will allow customers, infleuncers and potential investors see the brand in action offline.
Tote bag and personlised outfits and bottles for event goodie bag (page 42 and 43)
By iensuring we give out goody bags 100 bags at the launch event will allow infle100 outfits uncers to post about the brand as = £1.33 each = £266 they now have a personal connection with us.
Launch event goody bag
Organisation planLegal structure New to you will operate as a limited company, meaning the business will be setting up as a private organisation and the business will have its own legal identity and finances which is separate to its directors. The advantage of being a limited company as a director we can pay ourselves in a combination of salary and dividend’s, meaning the company is much more tax efficient as we will have a lower tax threshold than salary pay. Another benefit of being a limited company is that all shareholders limited liability. Therefore, if the business inc losses or dept, it’s not the personas responsibility. On the other hand it is the company’s directors responsibility to understand how the business is taxed, including corporation tax and payroll related taxes. The current corporation tax rate is currently 19% which will need to be paid at the end of every financial year on the profits the business has earned New to you will be VAT registered meaning the company will have to charge VAT (+20%) in the total price of all its products sold. However, this will benefit the company as we can claim the VAT back on business expenses such as courier fees , office equipment, machinery and other business running costs. In addition, the company will have to pay NI on all of its employees; Income tax at the end of each financial year on all employees and any directors depending on their annual income.
Risk
Why
Soloution
Competition of mass brand overtakes bussiness
Due to being a small company within in the industry in year 1, mass brands with more money and awareness may copy and push us out.
Once extra funding is recieved in the future, the company can begin to inergrate mass brands and take over.eliminating any competition.
Failed oppotuunity
From the decline of success from introduction of new brand or losing to competition.
With company growth the bussiness will have the potential to overtake competitiors.
Brand ambassader gets pouched by competition
This could confuse consumers and mistake our company with another brand. this could also potentially have consumers thinking that the infleuncers beliefs are not real.
We choose our brand ambassadors carefully to ensure they fit the brands usp and our loyal to th brand.
Failed quality control
The brand could get in trouble with trading standards if they do not carry out a high level of quality control. As well consumers could lose trust in the company
The company will work hard to ensure that all products sold are genuine and if there is any uncertainty we will not sell the ite,.
Will the bussiness be able The bussiness can quickly The company is ensured to keep up with growth take of and could get out that they have the right of control and be messy leadership and funds in order to keep up with growth. Not enough sellers to buyers ] vise/ verser
The company may not be able to keep with high sale demands if there is not enough sellers
The company must ensure that they only sell what they have in stock in order to keep indemand and will always look for new sellers.
Soucing capital To successfully launch the company £80,000 capital needs to be raised for the business to be achievable. This will be split between £40,000 business load and £40,000 through business owner investment.
£40,000 will be sauced from a business loan, in return for 9.7% interest which makes the total loan to total £43,869 . We have agreed monthly payments of £731.9 per month over 5 years. Using a business loan means as the company’s director I have al control over the company and due to £0 rent cost’s this means the payments are achievable.
Start up costs ITEM
WHY
TOTAL COST PER YEAR
Creation of app with AI feature
The company will be on a app with AI technology as there main platform.
£19,673.63
App store
The company will pay to have the app supported by the most popular app server.
£80
World pay
The copany will use world 6940 pay to take payment on all there transactions on the app.
Bussiness registration
One of payment the company pays to register the company and trade mark the name, for the comapny to be legitimet
Corparation tax
41006.18 The company is a limited company. Therefor, will pay corparation tax (19 %of end of year profits)
Staff
the company will employ 2 30,000 people everyday for mininum wadge (£7.8ph)
Rent
Whilst the company is small, there is no need to pay for renting a space as the company will operate from home, to minimise outgoings.
0
Bussiness loan payments
The company has taken out a 40,000 with 9.7 % interest loan from the bank and will pay back £731.15 including interest per month.
8,773.8
In order to gain brand awareness, having a successful marketing plan is essential.
£16,897.99
Marketing budget
£12
Grant chart
Grant show to show how funds will be made over the 3 financial plan. All sections will be reviewed monthly in order to meet company’s objectives and stay relevant to the target audience. Marketing and capital saucing are vital pre-launch to ensure success of the brand.
*Numbers are estimated to nearest round number
After initial launch of the app, there will be a high level of traffic to the companies social media pages and the app. In conclusion New to you will have a steady growth within the first year, Each month the users will increase by an estimation of 20% per month to forecast the first 6 months. Half way through the year in July users will increase by 30% In prediction of the success of the marketing plan. It is estimated that 50% of consumers subscribing to the app will make revenue for the business by purchasing items. Estimating that the company ends the year with 51365 of subscribers in year 1 and 50% will purchase an item that cost on average of ÂŁ35 the company will see a profit of 218280
Sales forcast y
Average Item price
Estimatined units sold per year
Our (10%
ÂŁ35
25680
8.5
year 1,2,3
r fees %+5) profit per item
Total Profits of items sold £218,280 During year 2 the company will aim to increase sales revenue by 20% after year 1. Due to the company making a profit during year 1, it highly possible that the company’s success will attract external investors in order to expand the business. Suggesting the opportunity to open a pop up concessions is highly during year 2 or 3. The company will the rise a further 30% of downloads and purchases during year 3 due to the success of the marketing plan which encouraged high brand awareness.
Cash flow forc
As a start up, the company’s finances have been based on estimations in order to account for a worst case foreseeable sales forecast. The sales figures have been estimated by an average sale price of £35 before charging £3 for P+P per sale. After initial launch of the app , there will be a high level of traffic to app and social media pages. From the showings of the graph the business will have a steady growth within the first year and making profit.
cast- Year 1,23
Profit and loss year 1,2 and 3
In order to increase profit in year 2 the selling rates rised to 15% + ÂŁ10 due to custermer loyalty and trust gained in year 1, we felt it was an appropriate time to do so. We also lowered marketing expeses as were not launching new products in year 2 . This strategy degreased stock expensises as the company are buying stock for lower prices whilst sales rised and the marketing budget degresed the company made a profit despite having no finacial investors. Whist in year 3 profits still risen after we increased the marketing expenses to build back brand awareness to get ready for the pop up consessions that is predicted in year 4.
KPI’S KPI
Measurments
Success
Sales increase by dou- Sales forcast ble in year 2
More revenue generated for company
15% more app downloads in 3rd year
Sales forcast
Gaining competitive advantages.
Company makes a profit within first year of bussiness
Profit and loss
The bussiness is viable during annual profit and loss accounts to ensure Profibility.
high level of app downloads indicates brand is popular
Sales forcast
The brands marketing strategie is clearly made successfull.
Increase of sales by 30% in the first 6 months of year 1
Cash flow
Brand awareness has been gained due to marketing plan success. Therefor sales have risen.
Conclusion In conclusion, Research revealed that consumers were demanding the need of a platform were they can be educated on sustainable fashion and a market place for second hand clothing for their children. , creating a demand for the business leads to a viable business opportunity. The business idea highlighted a major issue within the industry and the need to educate millennial consumers on a sustainable lifestyle within an app.
Apendix Secondary research
The boom in second hand clothing. The second hand market is booming. For many years the fashion industry has been getting away with unsustainable and unethical methods of practice in order to sell and make clothes, the textiles industry is accountable alone for 1.2 billion tons of greenhouse gases per year. According to fashion united Many major and small fashion brands are ditching harmful methods of production and swapping them with eco-friendly alternatives, whilst the globe challenges the industry for sustainable changes to put an end to pollution and waste. It seems to be clear that the most sustainable way to shop is to buy used and pre owned clothing . With brands such as Depop, ThredUp, Rent the Runway and The RealReal hitting are screens and becoming the new way in which consumers buy their clothes it is said according to (GlobalData, 2020) and (thredUP, 2020) in the U.S the value of sales of pre-owned goods are expected to more than double to 51 billion by 2023, up from 24 billion last year. (GlobalData, 2020) also predicts that sales of second-hand items will take over those of fast fashion within a decade. THE RISE OF THE CONSIOUS CONSUMER 59% Of consumers expect retailors to create clothes ethical and sustainable 74% Of 18-29 year olds prefer to buy from sustainable conscious brand 60% Of consumers would increase loyalty to a brand if a recycling program was offered. Example = ‘Back to Mac’ 6 Empty mac containers returned back to mac = 1 free lipstick Mac cosmetics are encouraging their customers to reduce their waste with their back to Mac program, which enables customers to return there empty Mac containers and receive a free lipstick of their choice. CONSUMER HABBITS (ThoughtShift, 2020) 85% of births are from women under 35 (millennials) 1 in every 5 US mums are millennials (tech savey) 25-54 women with children spend 54% of internet time on mobile 46% of mums on mums net agree personalised adds are the future
Primary research
HOW CONSUMERS PURCHASE100% of customers with always or sometimes shop online for their child 8% of customers shop on Depop for their children 23% of customers didn’t know what Depop is 46% of customers shop from charity shops for their children 38% of customers shop from Ebay for their children. 85% of customers will buy second hand clothes for their children. 77% of customers care that there children’s clothes are sustainable 15% shop high end for their children 62% shop Highstreet for their children 85% shop low end for there children’s clothes 30% of customers consider the environment when purchasing from the environment
Competitors Universe analysis
The use of an competitor universe analysis is a visualisation of where NEW2U sits in relation to its competitors. It also allows NEW2U to differentiate the brands values and focus. Level 1 competitors such as ‘Market of mums’ offers a similar service in a similar geographic market (UK) although doesn’t follow the same aims and themes. However, in time they could adapt similar ideas and themes such as sustainability. Level 2 brands like ‘Thredup’ share the same values (sustainable fashion) is not an online app and does not in home in on one particular product like NEW2U (designer baby wear). Level 3 companies like ‘RENTTHERUNWAY’ follows a reusable theme similar to NEW2U. however, although they are a fashion company they don’t sell children wear. Lastly, level 4 company ‘eBay’ is an online store selling second hand items. However eBay isn’t just fashion as they have an array of items on their website. eBay also does sell new items on their website and focus is not sustainable fashion.
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