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“EVERYONE CAN DO SIMPLE THINGS TO MAKE A DIFFERENCE, AND EVERY LITTLE BIT REALLY DOES COUNT.” S T E L L A M CC A R T N E Y
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CO NTENTS EX ECUTIV E SUM M ARY COM PANY SUM M ARY MAR K ET ANALYSIS TAR GET CON SUM ER 5 P’ S FOR BRAND 4 P’ S FOR PRO POS ED B RAND EXTEN SIO N CO N CLUSION BIBLIOGRAPHY
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4-5 6-18 19-23 24-29 30-33 34-44 45-46 47
E X E CUTI V E SU M M A R Y
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EX ECUTIV E SUM M ARY Stella McCartney Home is a brand extension of Stella McCartney Ltd. that will include home décor essentials like bedding, rugs and kitchenware. The Stella McCartney Home customer is very similar to the Stella McCartney customer. She is someone who is native to an urban lifestyle between the ages of 24 and 50. She’s educated and leads an environmentally conscious lifestyle. The first Stella McCartney Home collection will be a limited edition collection that will raise awareness for the victims of the disaster in Nepal and donate twenty five percent of the profit generated by the sales through The American Red Cross. This limited edition collection was inspired by Stella McCartney’s spring 2015 Ready-to-Wear collection because it was a perfect fit for the Nepalese aesthetic of the collection. The collection includes bold, bright colors with organic shapes such as paisley and floral patterns that mimic those found in Nepalese culture. The Stella McCartney Home brand extension will be successful because the Stella McCartney environmentally conscious customer will respond to the brand’s new approach because it fits her values and lifestyle through the use of organic yet sustainable materials that will not threaten the environment. Besides raising awareness and donating to the cause, another opportunity will be to expand the Stella McCartney Ltd. market spectrum. Entering the homeware market will also be a threat because we are unexperienced in this industry. Stella McCartney Home is the perfect step to take in order to further emphasize the company’s overall success. We are committed to overcome the challenges presented through this journey and are excited to experience where this extension will take the future of the brand. 5
COM PA N Y SU M M A R Y
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HISTORY As lifelong vegetarian, Stella McCartney, prides herself on not using any leather or fur in her products. The Stella McCartney brand extends to include women’s ready-to-wear, accessories, lingerie, eyewear, fragrance and kids. Stella McCartney currently owns 40 freestanding stores, including stores in New York, Los Angeles, London, Paris, Milan, Tokyo, Shanghai and Beijing. Her collections are now dispersed in over 70 countries through 600 wholesale accounts including specialty shops, department stores, and shipping to 100 countries online. 7
TI M ELINE
2010 Stella McCartney introduced the Falabella handbag, which has since become one of the designer’s best-selling items.
2004
A long-term partnership with adidas was introduced.
2001
2007
Stella McCartney launched her own fashion house under her name in a partnership with Kering as a 50/50 joint venture and showed her first collection in Paris.
Launched care by Stella McCartney, the first luxury skincare range with 100% organic active ingredients.
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2014 2014 Partnered with The Nature Conservancy and Ovis XXI introducing a new luxury sustainable wool for Autumn 2014 originating from Patagonia in support of the restoration and conservation of the land.
2011 All Stella McCartney’s sunglasses compliment her collections and are ecofriendly; which has since also expanded into optical.
2010
2012
The first Stella McCartney Kids collection debuted.
Stella McCartney was appointed Team GB’s Creative Director by adidas for the Olympic Summer Games
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MISSION STATEM ENT Responsible We understand that it is our responsibility to do what we can to become a more sustainable company. We are responsible for the resources that we use and the impact that we have. We are always exploring new and innovative ways to become more sustainable. Honest We know that sustainability isn’t just one thing, it isn’t just organic cotton – it’s organic cotton, plus wind energy, plus not using PVC, plus thousands of other little steps that eventually make a more sustainable company. In many ways we are just beginning our journey towards becoming more sustainable, and we are dedicated to continuing our work towards being able to replace what we have taken from the environment. We will continue to consider the impact we have on the planet as we design clothing, open stores and manufacture our products. Modern We think that being modern means considering the future, not just the future of design, but also the future of the planet. We are dedicated to helping change people’s perception of eco fashion. We think that sustainability can take the form of beautiful and modern clothing and accessories.
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OW NERSHIP STRU CTURE
Kering Group
Stella McCartney
Frederick Lukoff
owner
founder creative director
CEO
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FIN ANCIALS • According to an article by The Business of Fashion, studies at Companies House in London show that between 2010 and 2013, top line revenues at Stella McCartney Ltd, which includes two directly-operated stores, grew by more than 60 percent to approximately $44 million, with profits of about $5 million. • Global revenues for Stella McCartney are projected at around $150 million to $200 million. These figures are
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million TOP LINE PROFIT
44 million
generated from the annual retail value of Stella McCartney products which is likely more through branded collaborations with Procter & Gamble for beauty, Adidas for sportswear and
STELLA MCCARTNEY LTD REVENUE
Bendon for lingerie.
150+ million 12
GLOBAL REVENUE
FUTURE PLAN S • For her second time, Stella McCartney has been selected by Adidas to design her country’s Olympic uniforms for 2016 Olympic Games. • Stella McCartney is focusing on expanding her brand internationally by opening more stores especially in Asian countries
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SWOT ANALYSIS STRENGTHS
WEAKNESSES
• Strong brand recognition
• Works with brands that do not have the same morals
• Loyal customers
• Investments in research and developments
• Sustainability
• Inexperienced in the homeware industry
• Corporate Social Responsibility
• Criticized for not being 100% sustainable
• Existing distributions and sales networks
OPPORTUNITIES • • • •
THREATS • Inexperienced workers could decrease quality of the
Campaigns raising awareness for Nepal 25% of profit will be donated to Nepal Already have loyal customers New markets
products • Rising cost of raw materials
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PER CEPTUAL MAP PRICE & ACCESSIBILITY HIGH PRICE
LOW
HIGH ACCESSIBILITY
ACCESSIBILITY
LOW PRICE
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CURRENT PLACEMENT The Stella McCartney brand has four main channels for distribution: Retail Large distribution orders to department stores Saks Fifth Avenue, Nordstom, Net-A-Porter and Neiman Marcus. Wholesale Stella McCartney Ltd. distributes their merchandise to other stores to sell their product. Brick and mortar Stella McCartney has over 40 free-standing stores worldwide. Online E-Commerce through online sites like Stella McCartney.com
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CURRENT PROMOTIONAL ACTIV ITIES
DIGITAL ADVERTISING
EVENTS
OUT-O F-HOME ADVERTISING
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CURRENT PROMOTIONAL ACTIV ITIES
PRINT ADVERTISING
SO CI AL ADVERTISING
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M A R K E T A N A LYS IS
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SIZE OF MARKET Homeware Segmentation Breakdown (2013) MARKETLINE
LIGHTING : 5029.1 MILLION TEXTILES AND SOFT FURNISHINGS : 19029.6 MILLION
WINDOW DRESSINGS : 6793.6 MILLION
HOME HARDWARE : 52330.1 MILLION
TEXTILES AND SOFT FURNISHINGS
WINDOW DRESSINGS
HOME HARDWARE
LIGHTING meta-chart.com
• 19,029.6 million dollars of the 83,182.4 • The Home Hardware segment including million dollars account to the Textiles and plates (china) amongst others and it Soft Furnishing segment. accounts to 52,330.1 million dollars. 20
SIZE OF MARKET US and Global Homeware Market (2013)
THE UNITED STATES : 26.8 PERCENT
OTHER GLOBAL INFLUENCERS : 73.2 PERCENT
OTHER GLOBAL INFLUENCERS
THE UNITED STATES meta-chart.com
• The Homeware Industry, as of 2013 is 83,182.4 million dollar company. The United States accounts to 26.8% of the global Homewares market value. 21
KEY PLAYERS • Sonia Rykiel • Fendi Casa • Missoni Home • John Robshaw • Sferra • Zara Home • Laura Ashley • DKNY • Lilly Pulitzer • Vera Wang • Etro
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PERCEPTUAL MAP COMPETITIVE POSITIONING HIGH PRICE
SPECIALIST
DESIGNER
LOW PRICE
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TA R G E T CO N SU M E R
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DEMOGRAPHIC ANALYSIS • The Stella McCartney consumer lives in an Urban area. • The customer ages are between 24 and 50 and are employed making an income of $100,000 a year. • Nevertheless, the customer is very well educated with a college degree and is emphasized by a mix of single and married women.
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PSYCHOGRAPHIC ANALYSIS • The Stella McCartney customers can be described as innovators, thinkers and believers. They are successful, sophisticated and very active, also they take into consideration the world and national events. • They are very mature, responsible, knowledgeable, conservative and very conventional people with established beliefs. • However, the Stella McCartney customer can be characterized as an achiever who loves self-expression through innovation and creativity. • She is very active and loves nature. Being free-spirited, seeking new adventures and following the newest fashion trends is what a Stella McCartney customer is all about. • Our Target consumer is interested in eco-friendly materials that offer sustainable products.
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CUSTOMER PR OFILE N A M E : Molly Gilbert A G E : 50 E D U C AT I O N / D E G R E E : Brown University/ Journalism O C C U PAT I O N : Magazine Editor I N C O M E : $130,000 O R I G I N : London, England M A R I TA L S TAT U S : Married C H I L D R E N / A G E S : Emma 12 and Renne 7 H O B B I E S : Yoga, Pilates and skiing FAV O R I T E B R A N D S : Ted Baker, Chloe, Kenzo, Carolina Herrera VA L S S E G M E N TAT I O N S : Thinker and a believer
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CUSTOMER PR OFILE N A M E : Amanda Smith A G E : 27 E D U C AT I O N / D E G R E E : Harvard University/Law School O C C U PAT I O N : Lawyer at Watchell, Lipton, Rosen & Kats. I N C O M E : $150,000 O R I G I N : New York City, USA M A R I TA L S TAT U S : Single H O B B I E S : Reading books, running, camping, going to theaters FAV O R I T E B R A N D S : Zara, J Crew, Alexander Wang, Vince, Joie, DVF VA L S S E G M E N TAT I O N S : Innovator and a thinker
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5 P ’ s S TR ATE GY
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PRODUCT • Her products are clean and generally feature linear lines and a low level of visual weight as she focuses on making her garments and accessories appear to not be bulky. • She manipulates with the opacity of her garments by layering sheer fabrics over one another adding depth and dimension to each piece she designs. Additionally, Stella plays with color to relieve visual weight and to create geometric and organic shapes for her products.
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PROPERTY • Stella McCartney brick-and-mortar buildings maintain a bright and natural look through her use of natural and white fluorescent lighting. The store plans of the stores are often open and airy which lends it hand to a more natural space synonymous to Stella McCartney’s environmentally conscious brand message.
PEOPLE • Much like her property, the people associated with the Stella McCartney brand have her same missions to help the earth and to lead a clean lifestyle as Stella McCartney does herself. Her runway shows are brightly lit and are filled with energy and life. 32
PACKAGING • Stella McCartney packaging is light and minimal with a limited number of colors integrated in to the packaging.
PROMOTION • Stella McCartney has a mix of high and low level of determinacy, She uses very clean lines and shapes but also likes to make it funky by combining multiple textures, layers and prints in to her designs.
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4 P ’ s S TR ATE GY
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MOOD BOARD
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PRICING STRATEGY • The approach for pricing Stella McCartney Home is a market-oriented. Keeping in mind that our brand extension is entering a new market the extension has been competitively priced between Missoni Home and Zara Home to target the middle-to-higher income market for the homeware industry. • Stella McCartney is new product that will be able to garner more loyal customers through a combination of market penetration by offering some products affordable to middle incomes while incorporating some products through market skimming. • Our use of eco-friendly materials, limited edition prints, new entry in to the market and our pro-social initiative enable us premium pricing that will give us the opportunity to generate high revenues until we adjust to the market. 40
PRICING STRATEGY TA B L E WA R E FLAT WAR E - $22.00 each PLACEM ATS-$75.00 each PLATE CHARGER-$110.00 each DINNER PLATES-$95.00 each SALAD PLATES-$48.00 each B OW LS -$69.00 each
B EDR OOM DU VET - $989.00 SHEETS -$135.00 PILLOWS-$210.00 each R U G -$1,050.00
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PRICING STRATEGY L IV IN G R OOM LAR GE R U G- $1,350.00
B IR D EMB LEM PILLOW-$285.00 each
STRIPED PILLOW-$245.00 each
NEPALES E PAISLEY PILLOW-$295.00 each
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PLACEMENT STRATEGY In order to entice our loyal customer base to purchase the new brand extension, we want to place our product in locations where Stella McCartney is already offered. The goal is to make it as effortless as possible for our customers to have the Stella McCartney experience. Our advantage is that we have created a limited edition Ecoconscious homeware collection that is focused on giving back to those in need. In terms of location, Stella McCartney Home will be available to purchase through the brand itself on StellaMcCartney.com for e-commerce and in Stella McCartney stores worldwide. In addition to the brand’s personal website, Stella McCartney will operate on selective distribution choosing which third parties will sell their products. The second channel will be department stores such as Neiman Marcus who carries Stella McCartney currently. Saks Fifth Avenue is also a carrier of the brand and has partnered with the American Red Cross to send donations to Nepal which supports our brand aesthetics of caring for our environment and the purpose of our collection to help support those in need in Nepal. These are two channels that already have an established relationship with the company which makes them ideal channels.
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PROMOTION STRATEGY ADV ERTISIN G Print and Digital Campaigns
STELLA MCCARTNEY HOME
S O C I A L M E D I A P L AT F O R M S • Instagram • Facebook • Pinterest • Twitter B R ANDIN G Maintain clean and linear aesthetic for packaging and promotion materials P R O DU CT P LACEM ENT • Aligning product with celebrities like Miranda Kerr who embody the Stella McCartney Brand and have formulated a relationship with the company. • Editorials for Publications like Vogue Home 44
CO N CLU S I O N
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CO N CLUSION Since Stella McCartney Home is new to the market, it will only offer mainly textiles and a small portion of hardware, that being china. When we are more comfortable in the market, we plan on extending the variety of hardware to cups, silverware, tables and furniture. Additionally, we hope to extend the variety of hardware to cups, silverware, tables and furniture.
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B IB LIOGRAPH Y “Company Statement.” Stella McCartney. N.p., 29 Oct. 2012. Web. 20 May 2015. Davis, Brendan, and Cole Drexler. “Stella McCartney.”Marketing Plan Prezi.com. N.p., 28 Nov. 2014. Web. 20 May 2015. “Homewares in the United States.” Marketline.com. N.p., June 2014. Web. "Missoni Home." Missoni Home. N.p., n.d. Web. 22 May 2015 “Stella McCartney - Official Website. Women’s Ready-to-wear, Accessories, Lingerie, Sports Performance Collection.” Stella McCartney. N.p., n.d. Web. 21 May 2015. “Stella McCartney: Change Agent.” The Business of Fashion. N.p., 29 Mar. 2015. Web. 21 May 2015. Los Angeles Times. Los Angeles Times, n.d. Web. 21 May 2015. “Product, Placement, Promotion, and Price - Boundless Open Textbook.” Boundless. N.p., n.d. Web. 22 May 2015. “Stella McCartney to Design Team GB Kit for 2016 Olympics.” - Telegraph. N.p., n.d. Web. 21 May 2015. "WorldWide - Zara Home." WorldWide - Zara Home. N.p., n.d. Web. 22 May 2015.
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P R O D U C E D BY :
ALEXIS ATKINS MARIA BATISTA ISABELLA COSTA MARIA SANCHEZ
A L E S S A N D R O C A NN A T A FASM 215 48