Free People Store Opening Proposal by gabriellantrull

Urban Outfitters, Inc.

Marketing Plan Gabriella Trull

Table of Contents Mission Statement…………………………………………………………………………………1

Consumer Analysis………………………………………………………………………………...2

Geographic Analysis………………………………………………………………………………14

Marketing Objectives………………………………………………………………………………16

SWOT Analysis……………………………………………………………………………..............18

Gantt Chart………………………………………………………………………………………..24

Grand Opening Event……………………………………………………………………………..25

Work Cited………………………………………………………………………………………...29

Mission Statement

“Lifestyle merchandising is our business and our passion. The goal for our brands is to build a strong emotional bond with the customer. To do this we must build lifestyle environments that appeal emotionally, and offer fashion correct products on a timely basis. Our customers are the reason and the inspiration for everything we do.”1 “That's just who we wanted to reach: a 26-year-old girl, smart, creative, confident and comfortable in all aspects of her being, free and adventurous, sweet to tough to tomboy to romantic. A girl who likes to keep busy and push life to its limits, with traveling and hanging out and everything in between. Who loves Donovan as much as she loves The Dears, and can't resist petting any dog that passes her by on the street.”2 As we read further, it will be obvious that our mission statement was thoroughly taken into account while researching a new home for our brand. Our customer was the focus point for every decision we’ve made and will continue to be during the process of planning a store opening. The information we found from our consumer analysis was used effectively to plan a grand opening and to create a promotional item for that event. We also used the information we found from our location analysis to find our customer.

1 2

"URBN INC : Career Opportunities." URBN INC : Career Opportunities. N.p., n.d. Web. <http://urbn.com/career/>. "Our Story." The Free People Story. N.p., n.d. Web. <http://www.freepeople.com/fp-story/>.

Demographics White Plains is a suburb outside of New York City. Below is the data that supports our claim that we should integrate our business into this suburb. The city has a growing population, with even more population growth during the weekdays due to commuters and shoppers. Consumers in White Plains are spending their discretionary income on clothing, more so than citizens of New York state and the United States as a whole. Also, below is our target age, gender, and ethnicity are in White Plains, New York. Overall, we find that the White Plains community will perfectly suit our store. White Plains Crime Rate 350

Crime Index

300 250 200 150 100 50 0 1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Year Data collected from City-data.com

Low crime rate is important to people when choosing where to live. With low crime rates, White Plains may have more potential for population growth. Population by Race

2010 Popula5on by Race 56.14%

22.08%

15.59% 5.82%

0.23% White

Black or African American

American Indian and Alaska NaBve

Asian

0.14% NaBve Hawaiian and Other Paciﬁc Islander

Other

Data collected from CLRsearch.com

According to Quantcast, the white and Asian races make up the majority of Free People’s customer base. While the number for the Asian population in White Plains may not seem substantial, compared to the United States percentage of 4.8, our Asian customer base could be significant. Retail Sales 100 90

SporBng Goods

Nonstore Purchases

2010 Retail Sales Sta5s5cs (%)

Motor Vehicles 70

Miscellaneous Home Furnishings

Health and Personal Care 50

General Merchandise Store Sales Gasoline StaBons Store Sales

Food Services 30

Food and Beverage Store Sales Electrical and Appliance Store Sales

Clothing and Accessory Store Sales 10

Building Materials and Garden Store Sales

0 White Plains

New York

United States

Data collected from CLRsearch.com

In this graph, we are comparing White Plains to the whole state of New York, and the United States. The most important data in this graph are the clothing and accessory sales. White Plains has a significant improvement over the whole state and the United States. The clothing and accessory market make up 16.63% of the retail sales in White Plains, while only making up 8.16% in New York state, and even less in the United States as a whole. For us, this could mean a customer base that uses their discretionary income on our market (i.e. clothing and accessories). Another important thing to notice about this graph is that the percentage of sales in food services is relatively when compared to the whole state and the United States. For us, this could mean less threat from secondary competitors such as restaurants.

Gender

Females 52%

Males 48%

Data collected from City-Data.com

Our whole primary market is made up of women, so it is important that wherever we are, our surrounding population is composed of mostly women, and that is the case in White Plains. Population by Age

Popula5on by Age 15.72 13.98

14.58 11.76

8.39

7.93 6.79

6.99

6.62

4.59

0-‐5

6-‐11

12-‐17

18-‐24

25-‐34

35-‐44

45-‐54

55-‐64

65-‐74

75-‐84

Data collected from CLRsearch.com

Our primary customer is between the age of 25 and 34. However, we do appeal to a younger market (18-24), and our secondary customers may be parents of our primary customers which broadens our customer base to 18-54, which consists of about half the White Plains population. Population Growth

Popula5on Growth 58000 57000

Popula5on

56000 55000 54000 53000 52000 51000 2000

2010 Year

Data collected from factfinder2.census.gov

2010 Population Growth and Population Statistics

White Plains,

New York

United States

60,267

19,585,327

308,455,134

9.80

47,213.79

N/A

Population Density

6,149.10

414.80

87.20

Population Change Since 1990

28.13%

8.91%

24.02%

Population Change Since 2000

13.55%

3.21%

9.61%

Forecasted Population Change by 2014

7.75%

1.96%

4.52%

NY Total Population Square Miles

Data collected from clrsearch.com

Between 2000 and 2010, the population of White Plains grew over 13%. And the forcasted population change is said to increase over 7%. So we can see that White Plains is a growing community, and will continue to grow. During weekdays, it is said that the population grows to almost 250,000 people a day. These commuters, shoppers, and students possess potential for sales.

Income 2010 Household Income Statistics

White Plains,

New York

United States

$2,732,626,045

$617,237,808,126

$8,877,041,207,141

Median Household Income

$74,469

$56,779

$55,970

Average Household Income

$111,554

$82,014

$74,974

Per Capita Household Income

$45,342

$31,515

$28,779

Income Less than $15,000

9.43%

14.09%

11.96%

Income $15,000 to $24,999

7.01%

9.22%

9.15%

Income $25,000 to $34,999

6.99%

9.17%

9.99%

Income $35,000 to $49,999

10.78%

12.87%

14.37%

Income $50,000 to $74,999

16.14%

17.15%

18.95%

Income $75,000 to $99,999

13.19%

13.21%

14.07%

NY Total Area Household Income

2010 Household Income Statistics

White Plains,

New York

United States

NY Income $100,000 to $124,999

9.92%

8.55%

8.54%

Income $125,000 to $149,999

6.29%

5.54%

5.01%

Income $150,000 to $199,999

8.23%

4.30%

3.59%

Income $200,000 and Over

12.02%

5.91%

4.38%

Table collected from clrsearch.com

The average household income in White Plains, NY is well over the average of New York and the United States. More income from the population means more potential sales for us. Professions 2010 Employment by Job Type for Civilian Population (Age 16+)

White Plains,

New York

United States

NY White Collar

87.44%

79.26%

74.72%

Blue Collar

12.56%

20.74%

25.28%

Management, Business, and Financial Operations

21.18%

15.71%

16.09%

Professional and Related

28.29%

24.62%

21.78%

Sales and Office

24.05%

26.63%

26.38%

Service

15.82%

15.32%

13.50%

Farming, Fishing, and Forestry

0.10%

0.20%

0.51%

Construction, Extraction, and Maintenance

4.87%

7.05%

8.85%

Production, Transportation, and Material Moving

5.69%

10.47%

12.88%

Table collected from clrsearch.com

This table above shows that the majority of the population of White Plains has a white collar career. This could be significant for us, because there are more jobs in professional/management/business careers and these jobs could potentially have a higher income that a blue collar job. So this population may have more discretionary income to spend. Educational Achievement: (among people 25 years or older) Less than 9th grade:

9.4%

9th-12th grade (nongrad):12.2%

High school graduate:

22.3%

Some college:

18.7%

Associate degree:

5.7%

Bachelors degree:

17.6%

Graduate/Professional:

14%

High school or higher:

78.4%

Bachelors or higher:

31.6%

Zipskinny.com

A substantial amount of the population of White Plains is college educated. The graph below provides a correlation between education and income. The graph shows those with higher educational degrees make more money and are less likely to be unemployed. This is important for us because White Plains has a significant amount of college educated citizens who are likely to have a higher income, and more discretionary income.

Bls.gov

Behavioral Free Time Activities Cosmetics • MAC • NARS Music • Donovan • The Dears • Yeah Yeah Yeahs

Movies • Breakfast at Tiffany’s • Funny Face • The Devil Wears Prada Electronics • Apple IPhone • Apple IPod • Amazon Kindle

Restaurants • P.F. Chang’s China Bistro • Macaroni Grill • Ivar’s Television • 90210 • Project Runway • Gossip Girl

Magazines • Elle Magazine • Harper’s Bazaar • Vogue

Favorite Drinks • Tea • Diet Coke

Designers • Stella McCartney • Donna Karen • Alexander Wang

Shoes • • •

Cars • •

Games • Billiards • Poker • Rummy

Toms Steve Madden Vince Camuto

VW BMW

Psychographics PRIZM Prizm is a site that provides detailed segment descriptions. Consumer behaviors such as demographic trais, lifestyle traits, and some income statistics are provided, along with a short description of each market segment. We’ve used this site to highlight our target market within the White Plains area. Up-and-Comers Upper-Mid Younger w/o Kids Up-and-Comers is a stopover for younger, upper-mid singles before they marry, have families, and establish more deskbound lifestyles. Found in second-tier cities, these mobile twentysomethings include a disproportionate number of recent college graduates who are into athletic activities, the latest technology, and nightlife entertainment.3 2011 Statistics:

Demographics Traits:

US Households: 1,510,327 (1.29%)

Urbanicity:

Second City

Income:

Upper-Mid

Median HH Income: $50,556 Lifestyle Traits · Shop at Ethan Allen Galleries · Do Karate

Income Producing

Moderate

Assets:

"PRIZM Market Segmentation Research, Tools, Market Segment Research, - Market Segments, Consumer Markets, Customer Segmentation Profiling." PRIZM Market Segmentation Research, Tools, Market Segment Research, - Market Segments, Consumer Markets, Customer Segmentation Profiling. N.p., n.d. Web. <http://www.claritas.com/MyBestSegments/Default.jsp?ID=37>.

· Read Maxim · Watch MTV · Nissan Xterra

Age Ranges: 25-44 Presence of Kids: Homeowner ship: Employmen t Levels: Education Levels:

HH w/o Kids

Mix, Owners

WC, Service, Mix

College Graduate

Ethnic

White, Black, Asian,

Diversity:

Hispanic, Mix

This segment description not only epitomizes who our company targets, but based on our knowledge from Quantcast, who our consumer literally is, also. By moving to White Plains, we would be pin-pointing our consumer.

City Startups Low Income Younger w/o Kids In City Startups, young, multi-ethnic singles have settled in neighborhoods filled with cheap apartments and a commercial base of cafés, bars, laundromats, and clubs that cater to twentysomethings. One of the youngest segments in America--with ten times as many college students as the national average--these neighborhoods feature low incomes and high concentrations of African-Americans.4 2011 Statistics:

Demographics Traits:

US Households: 1,525,847 (1.31%)

Urbanicity:

Second City

Income:

Low Income

Median HH Income: $23,777 Lifestyle Traits

Income

· Shop at The Limited

Producing

· Attend college football games

Assets:

· Read Spin · Watch Game Show Network

Low

Age Ranges: <35

Presence of

· Suzuki Forenza

Kids: Homeowner ship: Employmen t Levels: Education Levels:

HH w/o Kids

Renters

White Collar, Mix

Some College

Ethnic

White, Black,

Diversity:

Hispanic, Mix

This market segment description does not define our current consumer, but it describes young potential consumers. This market description consists, mainly, of current college students who may not have the means to buy our brand at the moment. However, as we saw in our table, there is a correlation between a college education and income, which could mean more potential customers for us. VALS VALS is a service that provides personalized marketing strategies for clients. They also offer a consumer survey to gain perspective on our consumers in order to create a consumer profile and understand how our consumers communicate in order to best target our market. The survey provides a primary motivation and a resource for each consumer that helps determine how a person will express himself/herself in the marketplace. Based on this survey, we’ve concluded that our consumers are “experiencers” and “innovators”. “Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having "cool" stuff. Some of their favorite things may be VW cars, Rolling Stone, Red Bull, and to be entertained.” 5 “Innovators are successful, sophisticated, take-charge people with high self5

"Experiencers." Strategic Business Insights. N.p., n.d. Web. <http://www.strategicbusinessinsights.com/vals/ustypes/experiencers.shtml>.

esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services.”

Image is important to Innovators, not as evidence of status or power but as an expression of their taste, independence, and personality. Innovators are among the established and emerging leaders in business and government, yet they continue to seek challenges. Their lives are characterized by variety. Their possessions and recreation reflect a cultivated taste for the finer things in life.” 6 Both of these VALS types reflect our consumer, and our consumers’ needs and wants. They consist of young, highincome consumers who enjoy the finer things in life, and appreciate shopping. These VALS types describe our target consumer and fit nicely with the market segment description we found on Prizm.

Secondary Consumer Ordinarily, secondary consumers are two generations up from the primary consumer. These consumers are usually parents or guardians buying products for their children. Our secondary consumer is a white-collar, college graduate with an upscale income. PRIZM

Brite Lites, Li'l City Upscale Middle Age w/o Kids Not all of America's chic sophisticates live in major metros. Brite Lights, Li'l City is a group of well-off, middle-aged couples settled in the nation's satellite cities. Residents of these typical DINK (double income, no kids) households have college educations, well-paying business and professional careers, and swank homes filled with the latest technology.7 2011 Statistics:

Demographics Traits:

US Households: 1,832,821 (1.57%)

Urbanicity:

Second City

Income:

Upscale

Median HH Income: $72,461

"Experiencers." Strategic Business Insights. N.p., n.d. Web. <http://www.strategicbusinessinsights.com/vals/ustypes/experiencers.shtml>. 7 "PRIZM Market Segmentation Research, Tools, Market Segment Research, - Market Segments, Consumer Markets, Customer Segmentation Profiling." PRIZM Market Segmentation Research, Tools, Market Segment Research, - Market Segments, Consumer Markets, Customer Segmentation Profiling. N.p., n.d. Web. <http://www.claritas.com/MyBestSegments/Default.jsp?ID=37>.

Lifestyle Traits

Income

· Shop at Crate & Barrel

Producing

· Participate in fantasy sports

Assets:

· Read Skiing

Age Ranges: <55

· Watch Lost · Volkswagen CC

Presence of Kids: Homeowner ship: Employmen t Levels: Education Levels: Ethnic Diversity:

High

HH w/o Kids

Mostly Owners

Management

College Graduate

White, Asian, Mix

Our secondary consumers will mostly be parents/guardians of our primary consumers, so they will likely be older versions of our primary consumers. We already know that our primary consumer is in White Plains, so it is easy to assume that our secondary consumers will be there, too, but this Prizm market segment description is proof. VALS “Motivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep commitment to career and family. Their social lives reflect this focus and are structured around family, their place of worship, and work. Achievers live conventional lives, are politically conservative, and respect authority and the status quo. They value consensus, predictability, and stability over risk, intimacy, and self-discovery.” “With many wants and needs, Achievers are active in the consumer marketplace. Image is important to Achievers; they favor established, prestige products and services that demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of time-saving devices.”8 As it says in this VALS type, image is important to our secondary consumer. They want nice things, so they will also want nice things for their children, as well. Free People is an established, respected brand that this consumer would be happy to buy for their children. Indirect Competition 8

"Experiencers." Strategic Business Insights. N.p., n.d. Web. <http://www.strategicbusinessinsights.com/vals/ustypes/experiencers.shtml>.

Outside of other clothing stores, restaurants and other retailers can be competition for us. Moving into the Westchester Mall in White Plains would mean many other surrounding businesses that could potentially take business away. For instance, P.F. Chang’s China Bistro and The Zodiac Restaurant are two restaurants that may have the same consumer profile as Free People. Crate & Barrel and Pottery Barn are also in the Westchester Mall and may act as indirect competition, too.

Geographic Analysis 2010 Weather Summary

White Plains,

New York

United States

NY Weather Index

100

Hail Index

100

Hurricane Index

112

100

Tornado Index

100

Annual Maximum Avg. Temperature

61.0 °F

57.0 °F

N/A

Annual Minimum Avg. Temperature

48.0 °F

39.0 °F

N/A

Annual Avg. Temperature

54.3 °F

47.7 °F

N/A

Annual Heating Degree Days (Tot Degrees < 65)

4,910

6,762

N/A

Annual Cooling Degree Days (Tot Degrees > 65)

1,052

484

N/A

Percent of Possible Sunshine

N/A

Mean Sky Cover (Sunrise to Sunset - Out of 10)

N/A

Mean Number of Days Clear (Out of 365 Days)

N/A

Mean Number of Days Rain (Out of 365 Days)

118

150

N/A

Mean Number of Days Snow (Out of 365 Days)

N/A

Avg. Annual Precipitation (Total Inches)

42.00"

38.00"

N/A

Avg. Annual Snowfall (Total Inches)

25.00"

75.00"

N/A

Data collected from clrseach.com

White Plains has a higher average maximum and minimum temperature than the whole state if New York, so people may be more inclined to move there for the nicer weather. It also may be a destination spot during the Summer Months for shopping and activities, because it has higher average temperatures than the state as a whole.

Market Scope City

Port Chester

Yonkers

Paterson

Population 2010

28,967

200,327

11,520

Average Household Income

$81,142

$79,401

$103,847

Population Change since

+3.95%

+2.16%

+1.89%

2000 Data collected from clrsearch.com

All three of these cities could mean potential sales for our store if we move to White Plains, New York. They are all relatively near White Plains. All three cities have high average income, and population growth since 2000. Whether there population is high or low, it does not matter because they are close to our city which means they will travel to White Plains in order to shop at Free People.

Decrease operating costs a.

Increased sales volume will decrease the cost of goods

b. Decreased supply chain costs from warehouse to business c.

With other locations in the region, we will be able to equally distribute advertising costs to all of our store locations in the area.

d. By promoting employees within the company, we will be able to lower the cost of training. 2. Increase employee morale a.

Internal promotions will increase morale by providing hopefulness for growth in the company.

b. Providing a discount incentive for employees will result in happy employees. c.

Potential growth in the company and discount incentives will result in long-term careers for our employees.

d. Establishing an employee recognition program will boost incentive for employees to increase their productively and demonstrate our employee appreciation. 3. Positively affect the local economy a.

Hiring locally will lower the community unemployment rate.

b. By providing new jobs in the community, we will be giving employees more discretionary income to spend in other businesses in the area. c.

By opening a location in the area, we will be providing more taxes for the local economy.

4. Establish a stronger brand recognition in the Northeast a.

Our company will be extending the brand into the growing demographics of White Plains.

b. We can also strengthen our brand by extending our advertising and promotions. c.

Our grand opening event will reach more consumers in the region.

5. Lower costs so that consumers can shop our brand a.

By opening more locations in the area, consumers have to travel less, and thus spend less on travel.

b. Our store will increase competition in the area, forcing competitors to competitively mark their prices and lowering product costs for consumers. c.

Decreasing operation costs by increasing sales volume and decreasing supply chain costs, we will then be able to lower retail prices for our consumers.

Marketing Objectives Gantt Chart

Tasks

Month Oct

Nov

Dec

Jan

Feb

Increase employee morale Positively effect the local economy

Mar

Apr

May

Jun

Jul

Aug

Sept

Establish a stronger brand recognition in NE

Lower costs so that consumers can shop our brand Decrease operating expenses

Strengths •

The Westchester Mall will generate foot-traffic, which in turn will come into our store.

•

Revenue growth for Urban Outfitters, Inc. has increased by 8.8% in the last year.9

•

With 9 stores in New York, Free People is already a recognized brand in the area.10

•

Our small target market allows us to gain better customer insight.

•

We offer great quality, fashionable clothing at an affordable price. 11

•

We collect information on our customers in order to maintain a record of their product interests and purchases to enhance and personalize their shopping experience.12

•

Free People provides a consistent style that is recognizable to their customers.

•

Newly graduated college students from nearby schools will provide more consumers within our target market of 25 to 34.

•

Wholesaling allows us to be sold in more stores (i.e. Macy’s and Nordstrom), which exposes the Free People brand to a wider market.

•

Our narrow target market allows us to focus on our customers’ wants and needs to better their experience with the brand.

•

During the 2012 fiscal year, we opened twenty new Free People stores.13

•

Retail sales increased 17% during the 2012 fiscal year.14

•

By providing vegan apparel, we are giving consumers an option that is not very common in other brands.15

NASDAQ. "Urban Outfitters, Inc." The Street. N.p., n.d. Web. <http://www.thestreet.com/quote/URBN/details/growth-rates.html>.

Urban Outfitters, Inc. "Free People Stores." Free People Store Locations. N.p., n.d. Web. <http://www.freepeople.com/storelocations/?state=NY>. 11 Urban Outfitters, Inc. "Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes." Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes. N.p., n.d. Web. <http://www.freepeople.com/fp-story/>. 12 Urban Outfitters, Inc. "Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes." Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes. N.p., n.d. Web. <http://www.freepeople.com/privacysecurity/>. 13 Urban Outfitters, Inc. Form 10k. Securities and Exchande Commission, n.d. Web. <http://sec.gov/Archives/edgar/data/912615/000119312512146029/d276682d10k.htm>. 14 Urban Outfitters, Inc. Form 10k. Securities and Exchande Commission, n.d. Web. <http://sec.gov/Archives/edgar/data/912615/000119312512146029/d276682d10k.htm>.

•

We’re planning on opening 13 more stores in fiscal 2013.16

•

While The Gap plans on closing over a fifth of their stores, Free People is thriving and growing. 17

Weaknesses •

With Anthropologie in close vicinity, it could compete with Free People.

•

The nearest Free People is a little over seven miles away, which could result in over-saturation of the area.

•

Mall rent and operation costs are greater than the costs of a stand-alone store.

•

Compared to our competitors (i.e. The Gap and Abercrombie & Fitch), we aren’t as competively priced.

•

We are located in only 23 different states, so we are relatively unknown throughout the whole country. And, we have not expanded to any other countries, yet.18

•

By targeting only women between the ages of 25 and 34, we have a relatively narrow target market compared to our competitors who accommodate both men and women, and children.

•

Free People’s first store opened in 1970. The first Gap was opened only a year before that, and yet The Gap has expanded more rapidly. The Gap has over a thousand locations, while Free People has only 62.19

•

Free People provide little advertising, and relies on foot-traffic instead.

•

Lack of sales promotions could affect sales, and give a competitive advantage to our competitors.

Urban Outfitters, Inc. "Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes." Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes. N.p., n.d. Web. <http://www.freepeople.com/fp-story/>. 16 Urban Outfitters, Inc. Form 10k. Securities and Exchande Commission, n.d. Web. <http://sec.gov/Archives/edgar/data/912615/000119312512146029/d276682d10k.htm>. 17 D'Innocenzio, Anne. "Gap Closing a Fifth of U.S. Stores, Expanding in China." USA Today. N.p., 13 Oct. 2011. Web. <http://www.usatoday.com/money/industries/retail/story/2011-10-13/gap-closings-china-expansion/50764116/1>. 18 Urban Outfitters, Inc. "Free People Stores." Free People Store Locations. N.p., n.d. Web. <http://www.freepeople.com/storelocations/?state=NY>. 19 Urban Outfitters, Inc. "Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes." Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes. N.p., n.d. Web. <http://www.freepeople.com/fp-story/>.

Opportunities •

Target market is already is already there with the Gap and Abercrombie & Fitch present.

•

The average household income of White Plains, New York ($72,041) is greater than the average household income of the United States ($52,954). 20

•

Anthropologie, also owned by Urban Outfitter’s, Inc. is present at Westchester Mall.21

•

Unemployment rate of White Plains is lower than the unemployment rate of the United States.22

•

Ten percent of Free People buyers are of Asian ethnicity. According to the 2010 census, 6.4% of the White Plains population is Asian ethnicity, which is greater than the United States percentage of 4.8%. 23

•

On an average weekday, the city’s population grows to more than 250,000 due to workers, visitors, and shoppers.24

•

White Plains is ranked 5th in the state in annual sales volume.25

•

In 2010, Businessweek magazine declared White Plains as one of the fastest growing cities.26

•

Three college campuses – Pace University, Berkeley College, and Mercy College – are all located in White Plains, bringing in a vast number of our primary consumer age range.27

•

Moving into Westchester Mall will provide a different style of clothing to consumers in the area.

•

Since 48% of our customer base are college-educated, we can expect that in the future, college students nearby (at one of the three colleges) will become customers after they’ve graduated and become part of the working community.28

•

Moving into a large mall will provide us with foot-traffic, and thus we won’t need to advertise our opening.

•

By moving into a suburb area, we provide shoppers with a less-crowded shopping experience outside of busy New

"Economy in White Plains, New York." Sperling's Best Places. N.p., n.d. Web. <http://www.bestplaces.net/economy/city/new_york/white_plains>. 21 "The Westchester Store Directory." Simon Malls. N.p., n.d. Web. <http://www.simon.com/mall/malldirectory.aspx?id=105>. 22 "Economy in White Plains, New York." Sperling's Best Places. N.p., n.d. Web. <http://www.bestplaces.net/economy/city/new_york/white_plains>. 23 2010.census.gov 24 City of White Plains. "White Plains." - Westchester Economic Development Guide. N.p., n.d. Web. <http://www.westchestermagazine.com/Westchester-Economic-Development-Guide/Annual-2011/White-Plains/>. 25 City of White Plains. "White Plains." - Westchester Economic Development Guide. N.p., n.d. Web. <http://www.westchestermagazine.com/Westchester-Economic-Development-Guide/Annual-2011/White-Plains/>. 26 Ibid 27 Ibid 28 Quantcast. "Free People." Quantcast. N.p., n.d. Web. <https://www.quantcast.com/freepeople.com>.

York City.

Threats •

With competitors moving into the Asian market, the company is missing out on a chance to capitalize on a developing market by not establishing a presence in Asia.29

•

Our target age group of 25-34 makes up only 16% of the White Plains population.30

•

Westchester County has some of the highest taxes in the state, which could make it hard to encourage growth in the area.31

•

Competitors have wider target market by selling to men and children as well as women.

•

Westchester Mall also has a Nordstrom, which sales Free People. This could pose a threat, because we’d be competing with our own brand.

•

White Plains is still a small suburb and has shown little growth since the 2000 census.32

•

The median age of the White Plains citizens is 39 years old.33

•

Our competitors are close, so this could be a threat rather than an opportunity.

•

We would only be 30 miles away from New York City, so shoppers could easily decide to commute to a bigger shopping area.

•

Abercrombie & Fitch are now accepting PayPal in stores, which could be a competitive advantage for them.34

"Urban Outfitters (URBN)." Stock. N.p., n.d. Web. <http://www.wikinvest.com/stock/Urban_Outfitters_(URBN)>. U.S. "American FactFinder - Results." American FactFinder - Results. N.p., n.d. Web. <http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_DP_DPDP1>. 31 Hicks, Ruthmarie. "Westchester View." A Taxing Issue: The City of White Plains MUST Hold the Line on Tax Increases... N.p., n.d. Web. <http://thewestchesterview.com/2010/05/03/1614/>. 32 "Census Bureau Homepage." Census Bureau Homepage. N.p., n.d. Web. <http://www.census.gov/>. 33 U.S. "American FactFinder - Results." American FactFinder - Results. N.p., n.d. Web. <http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_DP_DPDP1>. 34 Abercrombie & Fitch. N.p., n.d. Web. <www.abercrombie.com>. 30

Strengths •

Westchester Mall provides foot-traffic for the store.

•

Abercrombie & Fitch is a well-known brand throughout the United States and most of the rest of the world, as well.

•

Abercrombie & Fitch offers great quality clothes at an affordable price.

•

Abercrombie & Fitch has a wide target market that accommodates men, women, and children.

•

The three nearby colleges provide a larger customer base in the area.35

•

Abercrombie & Fitch’s net sales have increased 4% this quarter.36

•

Total international sales increased 31%.37

•

The nearest Abercrombie & Fitch is in New York City.

•

Abercrombie & Fitch now accepts payment by PayPal in their stores which is a technological advantage.38

Weaknesses •

With the reduction of sales, their plan to expand to 40 new Hollister stores, has been diminished to 30 stores.39

•

Target market of ages 5-24 only make up a small portion of the population at a little over 20%.40

•

Mall rent and operation costs are greater than the costs of a stand-alone store.

Opportunities •

Target market is already is already there with the Gap present.

•

The average household income of White Plains, New York ($72,041) is greater than the average household income of the United States ($52,954). 41

•

Unemployment rate of White Plains is lower than the unemployment rate of the United States.42

City of White Plains. "White Plains." - Westchester Economic Development Guide. N.p., n.d. Web. <http://www.westchestermagazine.com/Westchester-Economic-Development-Guide/Annual-2011/White-Plains/>. 36 "Investors." Abercrombie & Fitch. N.p., n.d. Web. <http://www.abercrombie.com/anf/investors/investorrelations.html>. 37 "Investors." Abercrombie & Fitch. N.p., n.d. Web. <http://www.abercrombie.com/anf/investors/investorrelations.html>. 38 Abercrombie & Fitch. N.p., n.d. Web. <www.abercrombie.com>. 39 "Investors." Abercrombie & Fitch. N.p., n.d. Web. <http://www.abercrombie.com/anf/investors/investorrelations.html>. 40 U.S. "American FactFinder - Results." American FactFinder - Results. N.p., n.d. Web. <http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_DP_DPDP1>. 41 "Economy in White Plains, New York." Sperling's Best Places. N.p., n.d. Web. <http://www.bestplaces.net/economy/city/new_york/white_plains>.

•

Fourteen percent of Abercrombie & Fitch buyers are of Asian ethnicity. According to the 2010 census, 6.4% of the White Plains population is Asian ethnicity, which is greater than the United States percentage of 4.8%. 43

•

On an average weekday, the city’s population grows to more than 250,000 due to workers, visitors, and shoppers.44

•

White Plains is ranked 5th in the state in annual sales volume.45

•

In 2010, Businessweek magazine declared White Plains as one of the fastest growing cities.46

•

Three college campuses – Pace University, Berkeley College, and Mercy College – are all located in White Plains, bringing in a vast number of our primary consumer age range.47

•

By being in a suburb area, we provide shoppers with a less-crowded shopping experience outside of busy New York City.

Threats •

Westchester County has some of the highest taxes in the state, which could make it hard to encourage growth in the area.48

•

White Plains is still a small suburb and has shown little growth since the 2000 census.49

•

The median age of the White Plains citizens is 39 years old.50

•

Our competitors are close, so this could be a threat rather than an opportunity.

•

We would only be 30 miles away from New York City, so shoppers could easily decide to commute to a bigger shopping area.

Other Competitors The Gap is an iconic brand throughout the world. This brand has a wide target market of men, women, and children and has a wide age range of customers. It’s largest target market are women from age 25 to 34. A large portion of their customers have a college education or better, and have wealthy household incomes. Urban Outfitters, Inc. also considers H&M to be a competitor of Free People. Although, the price ranges are far from comparable, the age ranges of the two stores are generally about the same. H&M has a younger target market, similar to Abercrombie & Fitch. Their customers vary widely in ethnicity, mostly college graduates, and have an affluent household

"Economy in White Plains, New York." Sperling's Best Places. N.p., n.d. Web. <http://www.bestplaces.net/economy/city/new_york/white_plains>. 43 "Census Bureau Homepage." Census Bureau Homepage. N.p., n.d. Web. <http://www.census.gov/>. 44 City of White Plains. "White Plains." - Westchester Economic Development Guide. N.p., n.d. Web. <http://www.westchestermagazine.com/Westchester-Economic-Development-Guide/Annual-2011/White-Plains/>. 45 Ibid 46 Ibid 47 City of White Plains. "White Plains." - Westchester Economic Development Guide. N.p., n.d. Web. <http://www.westchestermagazine.com/Westchester-Economic-Development-Guide/Annual-2011/White-Plains/>. 48 Hicks, Ruthmarie. "Westchester View." A Taxing Issue: The City of White Plains MUST Hold the Line on Tax Increases... N.p., n.d. Web. <http://thewestchesterview.com/2010/05/03/1614/>. 49 "Census Bureau Homepage." Census Bureau Homepage. N.p., n.d. Web. <http://www.census.gov/>. 50 U.S. "American FactFinder - Results." American FactFinder - Results. N.p., n.d. Web. <http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_DP_DPDP1>.

income.51

Free People Gantt Chart Tasks

Oct v

Business Licensing and Lease

Interior Design/Architecture

Month

Fe Jan b

Ap Mar r

Ma y

Au Jun Jul

Sept

Build Out

Order fixtures/racks

Order Inventory

Hire/Train Managers

Visual merchandise of store

Begin Advertising store opening

Hire/Train Employees

Soft Opening

Advertisement/Promotional Push

Grand Opening

Business Licensing &Lease •

Meet with corporate attorney to clear contracts

•

Obtain business permits

•

Sign Licensing Agreement

Interior Design/Architecture

•

Meet with design team to plan interior layout to meet company standards

•

Meet with architecture to plan build out

Quantcast. "Free People." Quantcast. N.p., n.d. Web. <https://www.quantcast.com/freepeople.com>.

Order Fixtures/Racks •

Decide on the fixtures and racks needed for store interior based on company standards

•

Based on the design plan for the store interior, order the number of chosen fixtures to be delivered before June, when the store will be merchandised

Order Inventory •

Decide on merchandise that will be ordered for Fall opening

•

Order the Fall collection of Free People clothing to be delivered before June when the store will be merchandised

Hire/Train Managers •

Place “Now Hiring” advertisements with initial advertising

•

Interview prospective managers

•

Hire three managers

•

Train managers on company standards, employee training, and store maintenance

Visual Merchandise of Store •

Arrange for Free People visual merchandise team to come in

•

Train managers on company standards for merchandising

Begin Advertising Store Opening •

Start by placing advertisement boards around the outside of storefront

•

Advertise in the food court and on mall directories throughout the Westchester Mall

•

Make public announcement

Hire/Train Employees •

Train managers on the interviewing process while interviewing prospective employees

•

Hire eight employees

•

Provide hands-on training for managers while training the new employees

Soft Opening •

Schedule at least one manager and three employees to work at any particular time

•

Open doors to store

•

Record the amount of customers coming in with minimal advertisement

Advertisement/Promotional Push •

Place advertisement on the exterior of the mall

•

Place sky-banners in Mall

Grand Opening •

Arrange for promotional team to come in

•

Plan grand opening event

•

Hire team based on store opening event

Grand Opening Our grand opening event will be laid out into two days. The first day will be a V.I.P sale for our Fall collection for a select few, and the second day will be a fashion show event open to the public. We will start social network buzz by creating Facebook and Twitter accounts for our specific store. Promotion for the grand opening event will start by placing “invitations” to our public fashion show in the mall food court with links to our Facebook and Twitter accounts printed on them. We’ll also post information about the event on our social network sites for those who come across our sites on their own. Our V.I.P event will occur the day before the fashion show. We’ll use our Facebook and Twitter sites to find “friends” who fit our target consumer group. We’ll send out one-hundred exclusive invitations via our Facebook and Twitter accounts for our V.I.P sale event. We’ll close our store a few hours early so that our guests can experience an exclusive shopping experience. Each guest will be greeted and receive a 20% off coupon upon arrival and a gift bag containing: MAC cosmetic kits, a box of Godiva’s “G” collection chocolates, an IPod touch, a Tiffany’s & Co. bracelet, and a variety box of Talbot teas. Our guests will be offered refreshments and then we’ll begin the event by introducing our brand and what our company is about. Our brand introduction will also include a short preview of some of our products that epitomize the overall style of our brand, and our guests will also get a preview for our October collection. We’ll then introduce the Yeah Yeah Yeahs for an intimate concert. After a few songs, our guests will be able to begin browsing and shopping through our store, while the band continues to play. Our guests will leave as they finish shopping, and our V.I.P event will thus end. Our fashion show event will take place the next day. This will be our official grand opening event and will be promoted through the invitations in the food court, as said before, and also on our social network sites. In addition, we’ll also place an ad in the local newspaper, The White Plains Journal News, which not only covers White Plains, but also the two surrounding counties. Our sales associates walk around the mall an hour before the event to inform shoppers of our store opening and to pass out flyers for our grand opening fashion show event. The fashion show event will be hosted outside of the store opening in the mall. Similar to the night before, our event will begin with an introduction to our new store, the band, and the mission statement of our company. Amongst our hired models will also be actresses Rachel Bilson and Minka Kelly. We will introduce them and let them speak about why they shop with Free People. We’ll next introduce Christina Perri, the performer for the event, and her first song. After her first song, our models will start walking the runway as Christina Perri continues to perform. During our fashion show, we’ll display twenty different outfits in order to exemplify the various ways in which our brand can be worn. After our fashion show, we’ll begin passing out 10% off coupons to our audience in order to get them into our store. Those who go to our store will be greeted with refreshments and coupons, if they have not already received one. Those who purchase from our store will be given a tech case or cover of their chose from our collection. We’ll continue passing out coupons – which will only be good for that same day – for the rest of the business day. After the fashion show, we’ll have our models walk around the mall in our Free People clothing from the show to continue handing out the coupons and informing shoppers of our store opening. Our actresses will in our store, after the show, mingling with guests and signing autographs. Our event will end at regular store closing hours. Saturday Evening 5:00 p.m. ü Store closes early to prep for V.I.P sale event

6:00 p.m. ü Guests being arriving and are greeted with refreshments and coupons 6:15 p.m. ü Introduction of store opening, brand, and company mission. 6:30 p.m. ü The Yeah Yeah Yeahs are introduce and begin small intimate concert 7:00 p.m. ü The band continues to play while guests begin browsing through the store 7:30 p.m. ü The Yeah Yeah Yeahs take a short break to sign autographs and socialize with our guests 8:00 p.m. ü The band continues to play and guests continue to watch show, enjoy refreshments, and shop. 9:00 p.m. ü Store closes and the event ends. ü Sunday Afternoon 11:00 a.m. ü Employees will walk around the mall informing shoppers about our store opening, as well as passing out “invitation” flyer for our grand opening event. 12:00 p.m. ü Introduction of Store Opening and Statement ü Introduce celebrity guests and why they shop with Free people 12:30 p.m. ü First song performance by Christina Perri 12:35 p.m. ü Fashion Show begins while Christina Perri continues to sing 1:00 p.m. ü Fashion show ends ü Christina Perri continues with concert 2:00 p.m. ü Concert ends ü Hand out coupons to the audience and at the store opening ü Offer shoppers refreshments 2:15 p.m. ü We’ll greet the shoppers, thank them for coming to our event, and tell them about our one-day-only coupon. 2:30 p.m. ü Celebrity Guests Rachel Bilson and Minka Kelly will mingle with our customers and sign autographs.

ü We’ll continue to hand out the coupons for the rest of the business day in our store. ü Models will walk around the mall in Free People clothing from the fashion show, handing out coupons and telling them about our store opening. 6:00 p.m. ü The store will close and our event will, therefore, end. Defense Our V.I.P sale event will bring a sense of exclusivity to our brand, which our consumer would love. Image is important to our consumers, because they are innovators, and an exclusive event like is indication that our brand has good taste. The coupons for both events are a great way to open our business, too, because if they are already customers of Free People, they’ll know that our brand rarely goes on sale, and we rarely disperse coupons. The celebrity models for our fashion show are a good way to bring recognition to our store, because these are celebrities who wear Free People during their regular lives. These celebrities also display the image of our store because they are our customer and the type of people we want to target. Christina Perri not only displays a customer of Free People, but displays the kind of music our customers listen to, also. Our customers like “looking good and having have ‘cool’ stuff”.52 The fashion show itself will show our brand and the variety in which it can be worn. The models will provide a visual for customers, as to what they can add to their existing closet. Through this fashion show, we are displaying many aspects of our customers and drawing them in. This event will not only display our presence to existing customers, but also prospective customers who didn’t know about Free People before the advertising and event.

"Experiencers." Strategic Business Insights. N.p., n.d. Web. <http://www.strategicbusinessinsights.com/vals/ustypes/experiencers.shtml>.

Work Cited NASDAQ. "Urban Outfitters, Inc." The Street. N.p., n.d. Web. <http://www.thestreet.com/quote/URBN/details/growthrates.html>. Urban Outfitters, Inc. "Free People Stores." Free People Store Locations. N.p., n.d. Web. <http://www.freepeople.com/storelocations/?state=NY>. Urban Outfitters, Inc. "Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes." Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes. N.p., n.d. Web. <http://www.freepeople.com/fp-story/>. Urban Outfitters, Inc. "Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes." Free People Clothing Boutique Women's Clothes, Accessories, Boho Clothing, Shoes. N.p., n.d. Web. <http://www.freepeople.com/privacysecurity/>. Urban Outfitters, Inc. Form 10k. Securities and Exchande Commission, n.d. Web. <http://sec.gov/Archives/edgar/data/912615/000119312512146029/d276682d10k.htm>. D'Innocenzio, Anne. "Gap Closing a Fifth of U.S. Stores, Expanding in China." USA Today. N.p., 13 Oct. 2011. Web. <http://www.usatoday.com/money/industries/retail/story/2011-10-13/gap-closings-china-expansion/50764116/1>. "Economy in White Plains, New York." Sperling's Best Places. N.p., n.d. Web. <http://www.bestplaces.net/economy/city/new_york/white_plains>. "The Westchester Store Directory." Simon Malls. N.p., n.d. Web. <http://www.simon.com/mall/malldirectory.aspx?id=105>.

City of White Plains. "White Plains." - Westchester Economic Development Guide. N.p., n.d. Web. <http://www.westchestermagazine.com/Westchester-Economic-Development-Guide/Annual-2011/White-Plains/>. Quantcast. "Free People." Quantcast. N.p., n.d. Web. <https://www.quantcast.com/freepeople.com>. "Urban Outfitters (URBN)." Stock. N.p., n.d. Web. <http://www.wikinvest.com/stock/Urban_Outfitters_(URBN)>. U.S. "American FactFinder - Results." American FactFinder - Results. N.p., n.d. Web. <http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_DP_DPDP1>. Hicks, Ruthmarie. "Westchester View." A Taxing Issue: The City of White Plains MUST Hold the Line on Tax Increases... N.p., n.d. Web. <http://thewestchesterview.com/2010/05/03/1614/>. "Census Bureau Homepage." Census Bureau Homepage. N.p., n.d. Web. <http://www.census.gov/>. U.S. "American FactFinder - Results." American FactFinder - Results. N.p., n.d. Web. <http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=DEC_10_DP_DPDP1>. 1Abercrombie

& Fitch. N.p., n.d. Web. <www.abercrombie.com>.

"Investors." Abercrombie & Fitch. N.p., n.d. Web. <http://www.abercrombie.com/anf/investors/investorrelations.html>. "Experiencers." Strategic Business Insights. N.p., n.d. Web. <http://www.strategicbusinessinsights.com/vals/ustypes/experiencers.shtml>. "PRIZM Market Segmentation Research, Tools, Market Segment Research, - Market Segments, Consumer Markets, Customer Segmentation Profiling." PRIZM Market Segmentation Research, Tools, Market Segment Research, - Market Segments, Consumer Markets, Customer Segmentation Profiling. N.p., n.d. Web. <http://www.claritas.com/MyBestSegments/Default.jsp?ID=37>.