on sunday
Project by Joshua McLeod Senior Fashion Marketing Winter 2016 Savannah College of Art & Design With Support From Hello Mr. Magazine, Earl of East London, IN BED Store, Daniel Wellington, Taryn Ford, Laura Beckerdite, Garrett Smith, Megan Stout, Jake McDonald, Kendall Jackson, Kerrilyn Gibson, Patti Taylor, & Alessandro Cannata
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On Sunday offers a curated selection of lifestyle goods that are aesthetically driven and made with care and purpose. We exist to build communities through exceptional service and a unique retail experience.
TA B L E O F C O N T E N T S
I N T RO D U C T I O N E x e cu t i v e S u m m ar y
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Sun day E sse n t i al s
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M ark e t An al y si s
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Di re ct C o m pe t i t o rs
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Indi re ct C o m pe t i t o rs
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Tar g e t M ark e t
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MARKETING PLAN
Pl ace
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Pro du ct
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Pri ce
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Pro m o t i o n
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F I N A N C E & O P E R AT I O N S
O pe rat i o n al Pl an
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Fi n an ci al Pl an
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C o n cl u si o n
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A ppe n di x
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E X E C U T I V E S U M M A RY
O
n Sunday is a concept space inspired by the most relaxing day of the week, Sunday. With an aesthetic driven product assortment and a vision for building communities, On Sunday plans to offer a unique retail experience. After a careful market analysis, the West Village was selected as the prime location for On Sunday. The product offering will include men’s
clothing and homewares that reflect the same vision set forth by its mission. Along with clothing and homewares, On Sunday plans to offer an extensive selection of design driven reading material. On Sunday hopes to be more than just a store, but instead a destination to share experiences and build relationships through a common love for Sunday.
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S U N D A E S S E N
Cotton Rest Brunch Reading Conversation Aroma Coffee
Y T I A L S
MARKET ANALYSIS
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ew York City is a competitive and bustling market, especially for the fashion industry. The perceptual map (Fig. 1) analyzes the price points and accessibility of On Sunday’s key competitors in this market. The competitors fall under a menswear umbrella, offering solely, or a mix of clothing, grooming, and other lifestyle goods. These key competitors are Aēsop, Saturdays Surf NYC, and Need Supply Co. All of the competitors have brick and mortar stores in the NYC area with the exception of Need Supply Co. which is competing strictly via e-commerce. While all of these retailers are aesthetically driven, On Sunday offers a more relaxed retail experience. With an offering of various drinks (fair trade coffee, artisan blend of teas, and water), snacks, and the unique customer service, On Sunday is able to differentiate itself from the competition. Within this group, the brand with the highest price point is Saturdays Surf NYC. It has a mid-high accessibility level compared to the other brands. And it stands as On Sunday’s greatest competitor. Saturday’s Surf NYC offers exceptional service, a similar minimalist aesthetic to On Sunday, and their Soho flagship store features a coffee bar. Aēsop is the brand with the highest
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accessibility level, and the lowest average cost of products. Despite only offering grooming products, we consider Aēsop to be a competitor for the aesthetic of the brand and its wide variety of skincare offerings. On Sunday plans to carry skincare and grooming products, some of which will be Aēsop brand. E-commerce was taken into account in the market analysis. Need Supply Co. has proven themselves as an e-commerce force to be reckoned with. Their product offering and social media marketing has positioned them as a competitor to even brick and mortar stores. The demographic of the West Village is a close even split between male and female. The median age of males is 38, and for females it is 35 years old. The combined house hold income of the market is $117,724. About 16.7% of males in this market have a creative profession versus the 14% of females in this profession. The cost of living in the west village is relatively costly with the median rent paid per individual at $1932.00. However, with a higher income, they have more spending power which proves to be an advantage for a store in this market.
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low accessibility
high accessibility
FIG. 1
(Fig. 1)
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DIRECT COMPETITORS
The direct competitors for On Sunday not only share a similar customer base and product offering, but also a like minded aesthetic and retail environment. Our competitors were scoped out throughout the West Village and e-commerce retailers as well. In total we identified three lifestyle driven retailers that we believed to a major competitors for On Sunday.
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A ĒS O P Aēsop was established in 1987 in Melbourne, Australia. Their focus has always been to formulate skin, hair, and body products of the highest quality. They use plant-based and laboratory-made ingredients with a proven record of safety and efficacy. Aēsop has a focus on quality driven products and a unique retail experience, which is why they are a key competitor with On Sunday. Each retail space is different but is carefully design and curated. They also support the arts as an avenue to inspire, learn, and communicate.
SATUR DAYS SU RF N YC Saturdays Surf NYC opened their flagship store in 2009 in Soho, NYC. The “downtown surf shop” set out to bring the surf lifestyle to New York City. They began by selling boards, wetsuits, and fine art. Today Saturdays’ designs and produces its own menswear line that has become synonymous with high-quality craftsmanship and traditional style. With aesthetics alone, it is a no brainer why Saturdays is a competitor for On Sunday. Not only is the product offering similar, but the unique retail space and customer service is another factor. Saturdays also has a strong social media presence and relationships with high power e-retailers like Mr Porter.
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NEED S U P P LY CO. Need Supply Co. launched in 1996 selling vintage Levi Denim in their shop in Richmond, VA. Since then the retailer has launched their web store attracting sales from around the world. They currently carry a mix of well-known brands alongside up-and-coming independent designers. Although Need Supply Co. is located physically in Richmond, VA, we believe they have a strong enough web presence to compete with On Sunday digitally. Need Supply creates an enjoyable retail experience both in store and online. They also offer independent designers which gains much attention from their target market.
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INDIRECT COMPETITORS
The indirect competitors for On Sunday are a mix of retail destinations, dining establishments, and other neighborhood attractions that may dilute the spending of the On Sunday customer. While these brands and establishments don’t share the same target consumer or similar product offering, they do offer an aligned aesthetic and experience.
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Retail Destinations - Rag & Bone, Theory, Reiss, Brooklyn Industries, All Saints, A.P.C. Dining Establishments - L’Artusi, High Street on Hudson, Swine, Westville, Hamilton’s Soda Fountain Neighborhood Attractions - Algus Greenspon Gallery, The Duplex, Cherry Lane Theater
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TA RG E T C U S TO M E R
The On Sunday customer is a mix of male and female customers. They are any individual who enjoys a relaxing and design driven atmosphere. The product offering is mostly unisex with the exception of the clothing, which can also be worn by women.
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RI C H ARD WA R E N Age: 36 Relationship Status: Single Education: New York University Occupation: Finance Income: $110,000 VALs: Thinker Living Situation: Renting 1 bedroom Richard is an introvert and is very smart. He has a well paying finance career for a NYC based firm. He enjoys his spending power and shops frequently. Aesthetic is one of his drivers to shop. He shops for clothing at Brooks Brothers and Ralph Lauren. His home is well decorated and for that he shops at local boutiques and furniture stores. He comes to On Sunday for books, stationary, watches, and other accessories.
C OLE ST E P H E N S O N Age: 34 Relationship Status: Dating Education: Rhode Island School of Design Occupation: Graphic Designer Income: $84,000 VALs: Innovator Living Situation: Renting with roommates Cole is a young individual who enjoys social engagements and traveling. He has an eye for design and appreciates art and is an LGBT activist. In his spare time he enjoys reading books and magazines like Hello Mr. He shops at Club Monaco, mainly for quality basics and neutral tone clothing. Grooming is a priority for him, so he invests in grooming products from Aēsop. He goes to On Sunday to discover new reading material and for minimal basics from Handvaerk, but stays for coffee and conversation with the team.
C LAI RE M AS O N Age: 34 Relationship Status: Dating Education: Chicago University Occupation: Creative Project Manager Income: $77,000 VALs: Innovator Living Situation: Renting with boyfriend Carlie and her boyfriend Hudson have been dating for a number of years and enjoy spending time with one another. They like to engage in social outings such as shopping, museums, and seeing the latest movies. They have a combined friend group and often host dinner parties in their well designed apartment. They shop for clothing at Zara and COS During their free time they enjoy stopping by On Sunday for the homewares and bedding.
MARKETING PLAN
On Sunday differentiates itself from its competitors by better understanding and catering to the needs of its customers. Marketing will be utilized as a tool to engage with current customers as well as potential ones.
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PLACE OF BUSINESS
117 CHRISTOPHER STREET, NYC Mon-Sat: 11am to 7pm
Sun: 12pm to 5pm
3D View 2
3' - 8"
6' - 1"
4' - 11 3/4"
4' - 4"
358 SF
4' - 2"
6' - 5"
14' - 0"
5' - 0"
2' - 4"
9' - 8"
22' - 7 1/4"
6' - 10 1/4"
2' - 0 3/4"
3D View 6
6' - 3"
2
5' - 7 1/4"
1
12' - 4"
R E TA I L S PA C E
The interior of On Sunday will be as aesthetically driven, as its vision. bamboo flooring, eggshell walls, and sleek shelving and modern tables contribute to the store’s design. The space encourages customers to stay for conversation while enjoying a cup of coffee through the in-store barista. The space features natural light and open space to create an inviting retail environment.
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P RO D U C T O F F E R I N G
On Sunday offers well made goods that evoke the feeling of a calming Sunday afternoon. The carefully curated range products will provide customers with goods that will not only satisfy an immediate need, but also their overall sense of well-being. Each item carried within On Sunday comes from a brand with a story. This provides the opportunity to create a connection between the consumer and the product. On Sunday’s pricing strategy is to offer a range of buying opportunities for each target customer that walks in the door.
CREW NECK T-SHIRT Handværk
ASHLAND SUNGLASSES Gar rett Leight
CHARCOAL NOTEBOOK Appointed Co.
PA R S L E Y S E E D C L E A N S E R Aēsop
KINFOLK MAGAZINE Ouur Media
Product Name
Units
WS Cost
SRP
Handværk Crew Neck T- Shirt - White
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$44.00
$95.00
Handværk Crew Neck T-Shirt - Black
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$44.00
$95.00
Handværk Crew Neck T-Shirt - Grey
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$44.00
$95.00
On Sunday Crew Neck T-Shirt - White
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$14.26
$35.00
On Sunday Crew Neck T-Shirt - Black
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$14.26
$35.00
On Sunday Crew Neck T-Shirt - Grey
20
$14.26
$35.00
On Sunday Crew Neck T-Shirt - Cream
20
$14.26
$35.00
Citizens of Humanity Denim Jacket - Wilkes
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$184.00
$368.00
Norman Russell ‘Tommy II’ - Tan
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$98.00
$198.00
Norman Russell ‘Russell’ - Natural
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$98.00
$198.00
On Sunday Signature Beanie - Navy
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$3.13
$28.00
On Sunday Signature Beanie - Black
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$3.13
$28.00
On Sunday Signature Beanie - Olive
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$3.13
$28.00
Anonymous Ism Socks - Border Crew Green
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$9.00
$18.00
Anonymous Ism Socks - Marled Tipped Sock
10
$9.00
$18.00
Anonymous Ism Socks - Wool Donegal Sock
10
$15
$30.00
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Product Name
Units
WS Cost
SRP
Victor + Alexander Dopp Kit - Black
2
$45.00
$90.00
Victor + Alexander Dopp Kit - Olive
2
$45.00
$90.00
Victor + Alexander Dopp Kit - Natural
2
$45.00
$90.00
Victor + Alexander Weekender - Black
2
$115.00
$230.00
Victor + Alexander Shopper Tote - Black
2
$90.00
$180.00
Daniel Wellington Classic Sheffield 40mm
5
$114.50
$229.00
Daniel Wellington Warwick 40mm
5
$97.50
$195.00
Daniel Wellington Canterbury 40mm
5
$97.50
$195.00
Daniel Wellington Glasgow 40mm
5
$97.50
$195.00
Daniel Wellington St. Mawes
5
$114.50
$229.00
Han Jobenhavn Sunglasses - Amber
5
$90.00
$190.00
Garrett Leight Sunglasses - Matte Espresso
5
$180.00
$375.00
Garrett Leight Sunglasses - Ashland
5
$170.00
$340.00
IN BED Queen Sheet Set - Charcoal
3
$156.00
$275.00
IN BED King Sheet Set - Charcoal
3
$187.00
$330.00
IN BED Queen Sheet Set - Dove Grey
3
$156.00
$275.00
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Product Name
Units
WS Cost
SRP
IN BED King Sheet Set - Dove Grey
3
$187.00
$330.00
Earl of East London 3.5oz Candle - Greenhouse
16
$11.85
$28.00
Earl of East London 3.5oz Candle - Wildflower
16
$11.85
$28.00
Earl of East London 3.5oz Candle - Smoke & Musk
16
$11.85
$28.00
Aēsop Parsley Seed Cleansing Mask
10
$20.00
$39.00
Aēsop Tea Tree Leaf Facial Exfoliant
10
$20.00
$40.00
Aēsop Rosehip Seed Lip Cream
10
$7.00
$15.00
Aēsop Primrose Facial Cleansing Mask
10
$17.00
$35.00
Appointed Co. Notebook - Dove Grey
10
$11.00
$24.00
Appointed Co. Notebook - Charcoal
10
$11.00
$24.00
Appointed Co. Notebook - Hunter Green
10
$11.00
$24.00
Appointed Co. Monthly Planner
10
$10.00
$22.00
Appointed Co. Calendar
10
$16.00
$34.00
Public Supply 12 Pack Hex Pencil - Black
10
$6.00
$12.00
Public Supply 12 Pack Hex Pencil -Red
10
$6.00
$12.00
Public Supply 12 Pack Hex Pencil - Blue
10
$6.00
$12.00
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Product Name
Units
WS Cost
SRP
Public Supply Ty Williams Notebook - Fish
10
$7.50
$15.00
Hello Mr. Magazine
5
$9.00
$20.00
Kinfolk Magazine
5
$9.00
$18.00
Cereal Magazine
5
$10.00
$20.00
Fantastic Man Magazine
5
$7.50
$15.00
The Collective Quarterly
5
$10.00
$20.00
Gather Magazine
5
$10.00
$20.00
Inventory Magazine
5
$10.00
$20.00
Man of the World Magazine
5
$10.00
$20.00
The Human Being Journal
5
$7.50
$15.00
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P RO M OT I O NA L AC T I V I T I E S
A strong digital media presence is the key to On Sunday’s marketing strategy. Through the use of social media, online and print publications, and word of mouth, the goal is to get people talking about the brand and concept behind it. An Instagram strategy will be put in place to engage with the masses but to also serve as a visual moodboard. This platform will be carefully curated and updated daily by the On Sunday team. The hashtag #SundayMoments will be utilized to encourage followers to post their favorite “Sunday Moments,” whether it be a day in bed or even brunch with friends. Facebook marketing will be used to generate ‘likes’ for the shop page with a yearly budget of $2,500. A YouTube channel will also help engage with customers through the use of playful yet informative videos. Ideas for videos include brand films and product highlights. For the most part, On Sunday will not invest heavily on print advertising, but hope to focus more on word of mouth and building relationships with influential individuals. To celebrate the launch and initially get the word out, On Sunday has hired PR agency, Interlude to orchestrate a launch event for the brand that will take place at LOFT29 in West Village. The most influential editors and bloggers will be invited to eat, drink, and enjoy conversation and community while learning about On Sunday. (See appendix item 5 for promotional breakdown)
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O P E R AT I O NA L P L A N
On Sunday provides a welcoming retail experience, and in order to achieve this there must be specific operations to put in place.
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H U M A N R E S O U RC E S
On Sunday will operate with one full time manager and one associate. The starting pay is $41,340 annually for managers, working about 53 hours a week. Part-time associates will be compensated $10 per hour working about 20 hours per week. Hired associates will be trained on product knowledge of each brand carried in the store. The goal for every On Sunday associate is to have the ability to speak to a product with confidence and knowledge in order to drive sales.
I N V E N T O RY
Due to the limited amount of space, On Sunday will store inventory on the sales floor with the use of large storage drawers. These drawers will be built into the fixtures, and will not take away from the store design. Complex Inventory Management Systems (CIMS) won’t be necessary due to the small amount of merchandise, but CIMS such as Square, will be put in place to keep track of the flow of merchandise.
POINT OF SALE
On Sunday will operate using the Square Stand point of sale system. This is an easy to use system and can be seamlessly integrated with a receipt printer and cash drawer. This POS system accepts all major credit cards including new chip cards.
PA C K AG I N G
When a customer makes a purchase it will be packaged with On Sunday’s signature packaging. This includes a branded shopping bag and business card, along with a standard thank you post card.
FINANCIAL PLAN
Due to the initial startup cost the first year and a half will not be profitable. However, On Sunday plans to break even near the latter part of the second year in business. The growth of the business will be a steady 5% per year for the first couple of years then gradually increase to 7% by year five. On Sunday’s sales forecast (see appendix item 1) was determined though a careful calculation of the anticipated foot traffic to footfall, along with the average basket size. The projected net sales for the first year is $301,495.60 with gross margin percent of 54% or $162,807.62. And after expenses the total net loss is -$39,282.58. However the profit does pick back up during year two and continues to grow. (see appendix item 2)
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CONCLUSION
On Sunday is a concept space that will provide quality wares for a growing market. The product assortment allows customers of different buying powers to have the ability to purchase. Not only do the products attract customers, but the retail environment is welcoming and enticing likewise. The space allows for customers to enjoy conversation and build relationships with the On Sunday team over a cup of coffee or tea while shopping for design driven goods. Furthermore, the placement of On Sunday in West Village is a positive impact due to the heavy foot traffic. On Sunday hopes to be a premiere retail destination with room for growth into new markets.
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