Marc Jacobs Beauty - Pop Up Shop

Retail Management

FASM-410-02

Winter 2015

Table of Contents

Executive Summary…………………………………………………………………………………

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Company Summary

About Marc Jacobs……………………………………………………………………………….......

SWOT analysis…………………………………………………………………………………….....

Brand Identify ………………………………………………………………………………….........

Price Matrix……………………………………………………………………………………….....

Current Distribution…………………………………………………………………………….......

Communication & Promotion……………………………………………………………................

3 4 5 6 8 10

Market Analysis Italy Profile…………………………………………………………………………………… 14 PESTEL……………………………………………………………………………………….. .........

15-18 Retail Sales Volume………………………………………………………………………….............

20 Key Players…………………………………………………………………………………..............

21-25 Indirect Competition…………………………………………………………………………..........

26 Target Consumer……………………………………………………………………………………

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Store Location, Design, & Product

Demographic & Sales Potential…………………………………………………………......

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Competition & Area Attractions…………………………………………………………....

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Justification for Location & Area Attractions………………………………………............

33 Physical Structure………………………………………………………………………....... 35

Design Layout………………………………………………………………………………

37-38 Fixtures……………………………………………………………………………………... 39 Ambiance…………………………………………………………………………………… 40 Art…………………………………………………………………………………………... 41 Window Display……………………………………………………………………………. 42

Product Plan………………………………………………………………………………...

43-48 Communication & Promotional Plan………………………………………………………...........

52-54

Financial Plan ……………………………………………………………………………………...

56-60

Conclusion…………………………………………………………………………………………

Mindi Dowst

Hayley Larsons

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Stephanie Tedder

Executive Summary

The goal is to open a pop up shop in Milan dedicated to Marc Jacobs Beauty during Milan Fashion Week. The pop up shop will create hype and brand awareness for Marc Jacobs in Beauty and in turn can lead to the opening of a freestanding store in Milan for Marc Jacobs Beauty.

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About Marc Jacobs Finding Beauty in things that are odd and imperfect.

Marc Jacobs launched the Marc Jacobs fashion line in 1986, designing clothes that injected a sense of whimsy and eccentricity into luxurious, trend-setting style in womenswear, menswear, and accessories.

The Marc Jacobs brand opened its first store in 1997 in the Soho district in New York. Marc Jacobs expanded into fragrances in 2007 with his launch of Daisy, shaking up the fragrance industry. His Daisy fragrance had one of the most iconic and innovative packaging design ever. Every new launch in his fragrance line continued to delight and surprise. In late 2013 Marc Jacobs launched Marc Jacobs Beauty featuring face, eye, lip, and nail makeup.

Chairman and CEO, LVMH Fashion Group: Bertrand Stalla-Bourdillon • CEO: Sebastian Suhl • SVP Sales: Leslie Clements President: Robert Duffy Founder: Marc Jacobs LVMH owns a 96% stake of Marc Jacobs International LLC and the brand is working towards positioning themselves for an initial public offering.

Annual revenue of Marc Jacobs International LLC i 3

Strengths 1. Diverse portfolio 2. Youngest designer ever to win CFDA Perry Ellis Award 3. Already has more than 300 stores

SWOT

Weaknesses 1. Company has diversified into too many spaces 2. Limited Global Presence 3. Beauty line is an unknown extension

4. Endorsed by international celebrities 5. Company has a high growth rate 6. High profitability and Revenue

Opportunities 1. Milan pop-up shop would help global presence 2. Increase brand awareness 3. Increase market segment

Threats 1. joining foreign market 2. Currency exchange rates 3. Established competition

4. Increase growth rates and profitability

4. Similar stores already exist in market

5. New products and services

5. Market conditions

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BRAND IDENTITY MATRIX

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Current Distribution

Annual revenue of Marc Jacobs International LLC in 2013 is $1 billion Marc Jacobs Currently has 390+ stores in 34 countries these stores include marc by marc jacobs, bookmarc, little marc jacobs, marc jacobs collections, and marc jacobs beauty Marc Jacobs has licenses with Coty Prestige for his fragrances In 2008 Marc Jacobs International and Sumitomo Corporation announced a fifty-fifty joint venture in Japan.

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Current Communication and Promotional Activities Advertising Marc Jacobs uses many approaches when it comes to advertising and the company never fails at leaving us wanting more.Marc Jacobs advertising can be seen in many forms of traditional and digital advertising. Marc Jacobs’ collaborates with array of celebrities, models, and real people featured in campaign ads include Miley Cyrus, Dakota Fanning, and Victoria Beckham to name a few” No glossy, show-off spreads for Mr Jacobs - instead his campaigns (shot by legendary photographer Juergen Teller) have become more renowned for their more unusual choice of model. Often erring on the controversial, the eclectic collection of past stars include Winona Ryder (shortly after being prosecuted for shoplifting), Victoria Beckham dressed in a carrier bag (prior to her enjoying success as a fashion designer), and Charlotte Rampling half-naked in bed with artist William Eggleston”. Stylist Magazine., Current traditional activities include: Print Fashion and non-fashion magazines: Such as: Vogue, W, Lucky, Glamour, Y, Numero, and Interview.

Billboards-current Daisy Fragrance Ad Bus Ads Newspaper- Articles on latest collections, Digital Marc Jacobs is taking social media by storm. The company is using social media to benefit them online and off. A recent Twitter campaign turned tweets into currency. “… You can buy Marc Jacobs products in exchange for Tweets! They caused a huge buzz for their ‘Daisy’ fragrance with their pop-up shop. In exchange for Tweets using #MJDaisyChain, people got free deluxe samples of the perfume. And if a deluxe sample in exchange for a hashtag wasn’t enough, they then offered the most creative and inspiring pictures with the hashtag the chance to win highly sought-after Marc Jacobs bags and jewellery. This excellent social media marketing tactic not only rewards brand loyalty but shows a cutting-edge understanding of the importance of social media in their audiences life”.

Vale, Andy. March Jacobs also employs the use of digital media to live stream runway shows.

Social Media-Twitter-2.34m followers, Facebook-1,622,750 likes, Instagram- 1.7m followers, Pinterest -95,127 followers, YouTube, Google Plus-1,943,300 followers.

Television & Digital Commercials- “Daisy Dream” In Store Advertisement Direct Marketing Initiatives “Tweet Shop” is the most recent direct marketing initiative that Marc Jacobs has employed. The pop up shop Tweet Shop debut during New York Week and ran until February 9. Tweeters were able to purchase Marc Jacobs merchandise through hashtags, and social post.

Current Sales Promotions Marc Jacobs current sales promotions can change daily on social media. Examples of currents promotions featured on twitter are #castmemarc campaign, in which followers could tag photos and videos of themselves to be selected for Marc Jacobs next models.

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2015

Italy Profile

Population: 59.83 Million 2013 Religion Majority are Roman Catholics with a small amount of Protestantism, Judaism, and Greek Orthodoxy Language: Italian, French, Slovene, German, Fruilian Major Holidays: New Years Day, Liberation Day, Labor Day and different cities and towns celebrate feast days depending on their patron saint Capital: Rome Government: Unitary State, Constitutional Republic, Par liamentary Republic President: Sergio Mattarella Prime Minister: Matteo Renzi Currency: Euro In 2013 Italy was the fifth most visited country in the world with roughly 47.7 million tourists a year within that Milan is the second most visited country in Italy. In a ranking by Euromonitor for the top 100 city destinations ranking Milan, Italy ranks at 24 with an increase of 1.8% in arrivals between 2012/13. Even though the economy is bleak travel and tourism in Italy is expected to perform well and see an increase.

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Political

PESTEL

Government- Milan has a Democratic Republic government and has joined forces to define and implement polices that provides a more efficient government, making it strong and focused. On February 3, 2015 Sergio Mattarella was elected president, who previously served as Minister of Education, Minister of Defense, and judge of the Constituently Court and has aided in passing reforms to help with the country’s economic recovery.

Italy’s government budget deficit for the year 2014 narrowed by 4.4% due to lower levels of public spending.

Euromonitor International forecasts Italy’s annual government budget deficit as a percentage of total GDP will reach 1.7% in 2015 (compared to 2.7% in 2014), as a result of government consolidation programs, and of lower interest payments on public debt (due to record-low yields of Italy’s sovereign debt) Economy Italy has struggled for the few years but positive change is on the way. The last quarter of 2014 marked the end of the Italy’s long recession. Paolo Mameli, senior economist at Intesa Sanpaolo Spa in Milan stated: “The indications provided by recent data confirm our forecast for a return to positive growth as soon as in the current quarter.” Positive benefits for Italy’s economy are lower oil prices and cheaper euro that helps exports.

Travel and Tourism Over the forecast period travel and tourism in Italy is expected to perform well, and to see an increase in most markets. Such a trend is expected to be an important consequence of economic recovery, which will give Italian travelers more opportunities for domestic and outbound tourism. At the same time, economic recovery will be an important determinant of inbound tourism from other European countries, as well as from BRIC countries and other emerging countries, with a positive impact on the whole market. In addition the Expo 2015 which is to be held in Milan is expected to further contribute to the performance of travel and tourism in the country, as it represents an event which will attract many more visitors, who are then expected to remain for longer in the country and visit other locations. (Euromonitor) Consumer spending reached its lowest level in December 2014, the lowest it had been in 10 months it fell 1.1 points. Household of both general economic situation of the country and their own financial situations continued to deteriorate during the month due to the countries economic crisis and rising unemployment.

Italy’s unemployment rate rose to 13.4% in November 2014 from 13.3% in the previous month, reaching its highest level in over 37 years. The number of persons in unemployment increased by 40,000 on a monthly basis to reach a historical high of 3.46 million in November 2014, driven by job losses in both the manufacturing and the services sectors Social Italy’s population has increased to - 62.1 million in 2014, average age being 44.5 years making Italy the 3rd oldest population in the world.

Social Classes can be shown in a difference between wealth in the North and South. The difference between rich and poor are highly noticeable. High unemployment rates related to the difference in the classes. Immigrants are also noticeable in the country because of their transport form a poorer country. The government is also responsible between the two vast, creating budget cuts that fallen on poor.

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Social Education, language, choice of food, recreation, style of dress such as clothing from fashion designers Armani, Versace, Chanel, also make up the difference between rich and poor.

Leisure factors are time at the beach, family outings to villas, dinning out and sports. Soccer is a sport for everyone.

Women in the business world are growing by the increase of numbers because of new firms. 45.2 % of employees in Italy or women but only 21.4% own their own business.

Milans luxury fashion industry has had a 4% rise despite turbulent times due to exports.

Technology Italy has an Internet presence of 35.7 million users. The value of the Internet has risen from $41.8 billion in 2005 to an increase of 172.2 billion in 2015. This incline will allow for technology business to create innovative new products. The rise of the Internet is due to Smartphone, making Italians connected 24/7.

Online Spending has increased due to social media, businesses are able to promote and advertise more and keeping consumers constantly connected. Italian consumers also find the internet more convenient for shopping and finding the best prices.

As Italian markets grow, government and private owned companies will also have room to grow in the technology sector.

Lack of Investment will remain an issue for technological businesses.

Europe fell behind, with the lagging economy and ranks third in capital venture with falling investments of 55%, in the software industry.

Environment Italy is working on improving energy, improving energy will help Italy’s business environment while reducing fossil fuel will cut down pollution.

Italy is the worlds largest producer of pumice. Pumice is used in making concrete, filtering water, and condition the soil.

Italy’s energy needs was 85.3% one of the highest in Western Europe. Italy’s use of crude oil and natural games grows while reserves dwindle which causes a negative impact on the environment.

2008 Italy used 20% renewable energy for electrical production. Wind and solar made up 0.5%. Italy’s use of fossil fuels is not conservative.

In 2009 the ban on nuclear power had been lifted allowing the construction of nuclear power plants but remains unpopular and unsafe.

Legal Italy is considering many laws and reform packages to help clean up their government. Actions are being taken for fiscal incentives and legal reforms to encourage sales to third parties. Laws are being put in place to clear up bad debt, by selling to a third party will allow clean up and removing bad debt quickly.

Italy has had past issues regarding not enough labor laws being implemented, which causes a negative impact and are working on implementing new laws to help the working environment.

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Size of Beauty Market

RETAIL SALES VOLUME

The volume of the make-up market in Italy decreased by .2% in 2013, reaching a size of 112.7 million units. The compound annual rate of change in the market from 2009-2013 was -0.8%.

A breakdown of the makeup market shows that face make- up is the largest segment taking up 38.1% of the markets total value, followed by eye make-up at 27.8%, then lip make-up at 24.3% and finally nail make-up with 9.9%.

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Key Players In Italy

Founded: Coco Chanel, 1909 Introduced Beauty: 1924 Headquarters: Paris, France Product Assortment: Fashion, Accessories, Cosmetics, Shoes Size:5 Retail Stores Cosmetics Advertising: Known for using celebrities in their advertisements and being the first company to do so.

Pop Up Shop: Ephemeral Boutique Capri, Italy June 4th-September 30th 2012

Founded: Percassi, 1997 Headquarters: Milan, Italy Product Assortment: Cosmetics Size: 312 Retail Stores Pop Up Shop: None Cosmetics Advertising:None 21

Founded: Wojciech Inglot, 1987 Headquarters:Przemysl, Poland Product Assortment: Cosmetics Size:3 Retail Stores Pop Up Shop: None Cosmetics Advertising: None, Word of Mouth

Founded: Guccio Gucci, 1921 Introduced Beauty: 2014 Headquarters: Casellina, Italy Product Assortment: Fashion, Cosmetics, Accessories, Shoes, Jewelry Size: 23 Retail Stores Cosmetics Advertising: Video Campaign with Charlotte Casiraghi for Beauty release in 2014 22

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Key Player Advertisements

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Italians Disposable Income

Kenya $838.3

Thailand $3389.7

Kazakhstan $6,532.2

Slovakia $10,160.1

USA $36,728.9 South Korea $13,271.2

Based on this data by Euromonitor, Italians do have a significant amount of disposable income compared to other countries. This disposable income can be used for things like going out to eat, shopping, going to markets, and more.

Switzerland $45,871.2

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Indirect Competition Dining Out: Just Cavalli Cafe

Milan offers a vast array of exciting, decorative, and delicious restaurants. Just Cavalli is a popular choice when it comes to delicious food and exciting entertainment. It is owned by the famous fashion designer, Roberto Cavalli, and the interior decorations live up to his revolutionary design aesthetic.

Shopping: Galleria Vittorio Emanuele II

It is no shock that Milan is known for its shopping.

Milan is home to one of the oldest shopping malls in the world.

Leisure Travel When it comes time for a leisure travel, Italians prefer to spend it in Croatia.

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Target Consumer

Ages: 18-35 years Gender: Females Income: Middle Class Education: College Living Situation: Lives with parents Employment: Temporary work permits, part time jobs, new to full time work force Number of Millennials in Italy: Roughly 10 million Italian millennials are likely to still be living with their parents post college graduation and it has become a norm among this demographic. 79% of Italian millennials live with their parents. To drive home the impact social media has on millennials, more than 95% are present on at least one social media site. They want real time information and sharing. Consumers are using social media to shop for the best deals and therefore want more shipping options. Specifically with Italian consumers, 51% said they would be more likely to shop online if they could pick up their purchase in store and 59% stated they want the option to purchase online and return in store. Mobile devices have a high penetration rate with Italian consumers 58% of Italian consumers use a smartphone and 75% use a tablet to make online purchases. 73% of Italian consumers say they review the companies return policy before making purchases while 66% state they would shop more with aspecific retailer if they had a hassle free return policy.

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Nicci Abelli Age: 27 Occupation: Fashion Journalist Income: â‚Ź48,227 Education: College Graduate Living Situation: Small Apartment with a roommate Interests: Fashion, Global Issues, New Products, Social Media, Healthy Living

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Demographic & Sales Potential in Milan

Median age of population 44.5 years Urban Population 42.4 million people Annual Disposable income is $23,877 USD (Predicted to rise annually by .7% to reach a total of 13.4% by 2030) % of households with disposable income of over $25,000USD 81.9% Consumer Expenditure $21,578USD (expected to rise by .4% in 2015) Between 2013-2030 consumer expenditure is expected to rise at an annual rate of .9%

Sales Potential in Milan: Milan is a hub for startup businesses and is home to some of the biggest gatherings of Entrepreneurs in Italy such as business competitions, informal meetups, and startup weekends. The city itself is positioned in a way so that it is easily accessible with three international airports, bullet trains to take you all over Italy, plus the city is within driving distance of the Swiss boarder.

Tourism Spending in 2013 $28,143.40

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COMPETITION AND AREA ATTRACTIONS The Brera district in Milan used to be populated mainly by artists and remnants of that are still evident in the abundance of museums, galleries, and parks. Some of the attractions that are closest to the Marc Jacobs store are the Brera Picture Gallery, Castello Sforzesco, Parco Sempione, Museo Poldi Pezzoli, Casa di Alessandro Manzoni, Galleria Vittorio Emanuele II, Café Trussardi, and the Duomo Museum. The last few that are closest to the Marc Jacobs store are the Ristorante Orientale Hong Kong Crossover, Senzatempo Ristoro, Tartufotto, Andry and Tandem Bistrot.

Not all of these attractions are museums or galleries some are restaurants and the reason these are included is because the Marc Jacobs store in Milan also has a café. Also because the Brera is so heavily influenced by the lifestyle of the residents it seemed appropriate to include some of the more well known restaurants as attractions because they could be what draws consumers to Brera and our shop.

Direct competition in Brera includes The Body Shop, Sephora, Mazzolari, Lush, and Inglot. These are all beauty shops within 2 miles of the Marc

by Marc Jacobs store and post a threat to our shop. Inglot sells an array of beauty items with over 1,500 colors, 450 lip products, 600 eye products, 300 face makeups, and 400 shades of nail polish. Inglot is one of the world’s leading manufacturers of color cosmetics and is often used for the Fashion Week runway shows. The Body Shop offers not just makeup but skin care products, hair products, body products, and fragrances.

They offer an array of makeup from foundation and concealer to eye shadow and face primers. The Body Shop uses raw ingredients from across the world, their products are 100% vegetarian, and often campaign for social issues that are important to the community. Sephora is a household beauty name and carries many different brands of makeup as well as a wide product assortment. Sephora sells designer makeup from Dior, Yves Saint Laurent, and Givenchy to name a few. This makes them a very strong competitor because they are targeting the same fashion forward consumer that we are will a wider product assortment because they can include different brands. Mazzolari opened it’s first boutique in 1966 and poses a threat to our shop because it is a high quality all encompassing makeup and perfume boutique that is made in Italy. Mazzolari is a leader in his sector in Italy and has worked with the world’s most famous luxury brands. Lush carries a variety of beauty products including makeup and fragrances. Lush boasts about being ethical, charitable, and handmade and they make as much of their process as possible transparent for their consumers.

Estimating the indirect competition in the Brera area was less complex and included in this list are all of the shops listed on Ciao Milano for the Brera district. Shopping competition near the Milan Marc Jacobs store includes the Armani Megastore, 10 Corso Como, Roberto, Gallia & Peter, Arform, Controbuffet, Meru, Spelta, Gucci, Luisa Beccaria, Garlando, Fabriano, and Cavalli e Nastri. 10 Corso Como carries an eclectic selection of unusual items of clothing, bags, fabrics, cushions, accessories, books and artifacts. Due to the unique nature of these products stock is limited.

Cavalli e Nastri has a wide selection of vintage clothing and accessories from designers such as Dior, Chanel, Pucci and more. Gucci has been in Milan since 2013 and is five hundred square feet and three floors full of designer men’s fashion. Luisa Beccaria is for a younger market featuring top fashions and pret-a-porter product selection. Garlando is a women’s shoe store that appeals to a young target consumer and Spelta is also a women’s shoe store but features hand made shoes. Roberto is a small shop that carries textiles, curtains and other linens in bright, bold colors and reasonable prices. Gallia & Peter is a milliner that features a wide array of ready to wear hats and they also take custom orders. Meru was founded in 1967 and sells jewelry made with low cost materials.

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Justification For Location & area Factors Median age of population 44.5 years Urban Population 42.4 million people Annual Disposable income is $23,877 USD (Predicted to rise annually by 0.7% to reach a total of 13.4% by 2030) 81.9% of households have a disposable income of over $25,000USD Consumer Expenditure $21,578USD and is(expected to rise by 0.4% in 2015) Between 2013-2030 consumer expenditure is expected to rise at an annual rate of 0.9% Direct competition in Brera includes The Body Shop, Sephora, Mazzolari, Lush, and Inglot. These are all beauty shops within 2 miles of the Marc by Marc Jacobs store and post a threat to our shop.

Estimating the indirect competition in the Brera area was less complex and included in this list are all of the shops listed on Ciao Milano for the Brera district. Shopping competition near the Milan Marc Jacobs store includes the Armani Megastore, 10 Corso Como, Roberto, Gallia & Peter, Arform, Controbuffet, Meru, Spelta, Gucci, Luisa Beccaria, Garlando, Fabriano, and Cavalli e Nastri.

The Brera district in Milan used to be populated mainly by artists and remnants of that are still evident in the abundance of museums, galleries, and parks. Some of the attractions that are closest to the Marc Jacobs store are the Brera Picture Gallery, Castello Sforzesco, Parco Sempione, Museo Poldi Pezzoli, Casa di Alessandro Man- zoni, Galleria Vittorio Emanuele II, Cafe Trussardi, and the Duomo Museum. The last few that are closest to the Marc Jacobs store are the Ristorante Orientale Hong Kong Crossover, Senzatempo Ristoro, Tartufotto, Andry and Tandem Bistrot. Not all of these attractions are museums or galleries some are restaurants and the rea- son these are included is because the Marc Jacobs store in Milan also has a cafe. Also because the Brera is so heavily influenced by the lifestyle of the residents it seemed appropriate to include some of the more well known restaurants as attractions because they could be what draws consumers to Brera and our shop.

Public Transport tram, bus, metro/subway, train, taxi, car, bike, walking Parking is an issue so tourists are encouraged to use other modes of transportation. The least re- liable modes of transportation are taxi services and driving yourself. Most locals bike from place to place or utilize other forms of public transportation.

Pedestrian traffic is frequent because it is a busy district, the brera district is full of tourist attractions and it is easy to navigate on foot.

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Physical Structure

Marc by Marc Jacobs and Marc Jacobs Cafe is located on the Piazza del Carmine in Milan's Bera district. The two spaces occupy the ground floor of a 16th-century building adjacent to Santa Maria del Carmine, a 15th-century church built for the first duke of Milan.

The store and cafĂŠ act as a single unit, but also maintain the ability to act independently of each other due to differing operating hours throughout the day. In response to this challenge an open floor plan was created and divided into three sections. A series of thresholds were employed to define a transitional space between the store and cafe, allowing for a customizable program. It is defined by a frameless, blue glass sliding door at the bar and a hidden roll down gate at the sales floor. Depending on the hour and needs of the client this space can effortlessly merge with either program at any given time.

Marc Jacobs Beauty Pop-Up Shop will be located in the Marc Jacobs Milan Store. The already existing structure is ideal for the week long pop-up shop. The shop will be located in the room between Marc by Marc Jacobs and Marc Jacobs Cafe, this space allows for transformation and use of the current fixtures while adding new fixtures to create the desired space.

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Design Layout

The location of the beauty pop up shop for Marc Jacobs will be inside the Marc Jacobs store in Milan. The store is 3,100 sq ft long and features a apparel, accessories, and even a cafe.

The layout for the beauty pop up shop will be a free flow layout. This layout will give ample amount of space for the consumers to move around and interact with the products.

This will also give the beauty specialists enough room to apply make up to specific consumers.

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Fixtures

2 Modern Black Sofa houzz.com Lexi Blaci houzz.com 2889.

Beauty Display Marc Jacobs Corporate 1805.

Minerva Beauty Corsa Styling Chair in Alpine

White 452 SKU: 2838W

Artisan Crafted Lighting Specifications Dimensions: 32” L x 12” W x 34” H (incluces stem, drum, and glass) Lamping: Includes two triple sockets with six dimmable 60-watt Xenon bulbs.

LED system available for an additional charge 3520.

Custom Beauty Counter Modern Creations 1500

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Ambiance Playlists

Since the pop up shop is focused on the new Marc Jacobs Daisy fragrance, “Sorbet�, the shop layout will feature bright lighting and clean white fixtures. The music will be from the same playlist played at Marc Jacbos run way shows to stick with their overall aesthetic.

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Digital Art

Inside the area that will be used for the pop up shop there is already a TV used by the Marc Jacobs store to show various images of the brand. For the pop up shop the TV will be used to showcase how consumers use Marc Jacbos beauy and what they love about the products. Consumers from all over can send in images via Instagram or Twitter for a chance to win free Marc Jacobs Daisy Sorbet perfume.

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Window Display

2015

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Product Assortment GENIUS GEL € 44 SUPER-CHARGED FOUNDATION

20 Each x 16 Shades 320 Total

LE MARC € 27 LIP CRÈME

40 Each x 20 Shades 800 Total

ENAMORED € 22 HI-SHINE LACQUER

10 Each x 37 Shades 370 Total

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O!MEGA BRONZE € 45 PERFECT TAN

O!MEGA LASH €24 VOLUMIZING MASCARA

30 Total

100 Total PERFECTION POWDER € 42 FEATHERWEIGHT FOUNDATION

35 Each x 10 Shades 350 Total

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STYLE EYE-CON NO.7 € 54 PLUSH EYESHADOW

20 Each x 9 Shades 180 Total

STYLE EYE-CON NO.3 € 36 PLUSH EYESHADOW

20 Each x 10 Shades 200 Total 47

BLACQUER IS BETTER €30

100 Total

Daisy Eau So Fresh Sorbet €80

350 Total

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communication and Promotional Plan

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Promotional activates will be used across multiple channels.

Print Advertisement for prelaunch of Marc Jacobs Beauty Pop-Up Shop Milan, during Milan Spring/Summer Fashion Week, September 23-29 will run for the month of August 2015 in Vogue Italia.

Outdoor Billboards Marc Jacobs Beauty Pop-Up Shop Milan, during Milan Spring/Summer Fashion Week outdoor billboard will be placed around the city of Milan.

The ad will run during September 2015.

â‚Ź27,084.25 per location-5 locations total- â‚Ź135,421.23

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Social Media- Marc Jacobs has a strong presence on social media. Campaigns for Marc Jacobs Beauty Pop-Up Shop, Milan will be implemented on Facebook, Twitter, Instagram, and Pinterest.

Facebook- Status updates on Marc Jacobs Beauty Pop-Up Shop, Milan during Milan Fashion Week, starting in August-September for pre-launch and during Marc Jacobs Beauty Milan, Pop-Up shop of all promotions and events.

Instagram- Daily photos will be posted with hints of the new Beauty Pop-Up shop beginning in August-September. During fashion week photos will be posted of Marc Jacobs Beauty Milan, Pop-Up shop promotions and events. Customers are invited to post their favorite Marc Jacobs Beauty looks, techniques, tips and their favorite products!

Twitter- Tweets on Marc Jacobs Beauty Milan, Pop-Up shop promoting the upcoming launch of Marc Jacobs Beauty Milan, Pop-Up shop including dates, events, and other promotional activities. Customers are invited to tweet their favorite Marc Jacobs Beauty looks, techniques, tips and their favorite products! #Marc Jacobs Beauty Milan Instagram-Boards will be created for Marc Jacobs Beauty Milan, Pop-Up Shop during Milan Fashion Week.

Current store employees will provide social media updates.

Events September 23-26 -Beautiful Mini Makeovers. Makeup artist will be giving mini-beauty makeovers in the Marc Jacobs Beauty Milan Pop Up Shop.

Make up artist Chiara Guizzetti and her team will be providing the makeovers. Each guest will receive a free gift of Marc Jacobs Beauty samples and makeup bag with purchase. Sweets, treats and drinks will be provided by Marc Jacobs Cafe.

September 27-29- “Paint the Streets Beautiful”- Chiara and her team will be taking it to the streets to paint Milan beautiful! Lips are the canvas and Marc Jacobs lipstick will bring the lips alive and handing out mini lip stick samples. Each in store guest will receive a free gift of a full size Mark Jacobs lipstick and lip shape mirror with each qualifying purchase of €54.17or more.

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Financial Plan

The footfall traffic for the Brera District where our pop up shop will be located is on average estimated at 12, 000 people per day, and we have a conversion rate of .3%. Since our pop up shop is only open for 7 days and our products are moderately price, our average basket will be consistent throughout the week at $50. As more people hear about our pop up shop as the week goes on, our projected revenues will increase slightly each day bringing it at about 1440 for the final day we are open.

Since we are focusing on Daisy Sorbet perfume for the pop up shop it is one of our main product category percentages. The highest percentage of product will be for our lipstick, which we believe will be our best seller. Based on the amount of footfall our stores brings in we should have a total earnings of around $8,640 at the end of the week if we sell all of our products.

Since our pop up shop is located inside an existing Marc Jacobs store in Milan we only have a few expenses. The only expenses we have to account for are our interior/ exterior fixtures, our cost of goods, and our promotional activities. The total projected expenses will be $71,599.

Since our pop up shop is open only a week and we have high expenses for the store, our total projected revenue will be negative. Our total projected revenue will come out to be -$62,959. Often pop up shops that are open for only a short amount of time do not generate a profit. The goal is to build brand awareness so in the future out profits will be higher for Marc Jacobs Beauty.

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Total Budget and Revenue

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Total Budget and Revenue

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Interior and Exterior

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Conclusion

The goal of this pop- up shop is to promote Marc Jacobs Beauty, which is currently not sold in the Marc Jacobs Milan, Italy retail location. Creating brand awareness through strategic planning and promotional activates will help develop the wants and needs of Marc Jacobs consumers for the Marc Jacobs Beauty brand. By doing this, Marc Jacobs will be able to open a permanent location in Milan, Italy.