POP-UP SHOP
CONTENTS
SECTION ONE Introduction History Brand Identity Current Distribution Current Promotion SWOT Analysis SECTION THREE Location Justification Area Attractions STEEP Analysis Area Analysis Location Segmentation
SECTION TWO Market Analysis Key Competitors Target Market Customer Profiles SECTION FOUR Pop-Up Shop Design Human Resources Promotional Plan Unit Breakdown Sales Forecast Operational Plan Profit and Loss Conclusion
SECTION ONE B R A N D A N A LY S I S
INTRODUCTION TEAM Amelia Sanda, Julie Sampson, Kelly Hippenmeyer DISCLAIMER This project was created for FASM 410, Retail Management, at the Savannah College of Art and Design. It is not affiliated with Amazon and all sources are cited at the end of the book. OBJECTIVE Amazon private label fashion has launched within the last year and there is low visibility and awareness of the brands. Because of this, one of our goals is to inform consumers about the menswear private label brands. The shop will also create a stronger relationship between the customer and the brand through a unique in-store experience. Another objective is to provide men with an easier and more affordable alternative to shop for business attire. EXECUTIVE SUMMARY Twenty years ago, Jeff Bezos left his corporate job on Wall Street to pursue an idea he had been conjuring up for an online bookstore. Within a decade this bookstore has become the multifaceted platform we now know as Amazon. The company has become a disruptive force in the online and brick and mortar industry. They have not only challenged their competition but they have challenged themselves to continue to be disruptive and stay on top as the world’s most shopped internet retailer. Amazon launched its private label fashion brands in early 2016. Three of its brands, Buttoned Down, Franklin & Freeman, Franklin Tailored sell affordable men’s business wear. Since Manhattan is one of the United States’ main business centers, as well as a large tourist destination, it is the perfect opportunity for Amazon to open its first apparel pop-up shop. This will allow for the Amazon customer to be hands on with the product while still getting to enjoy the perks of quick delivery and free shipping. This pop-up shop will stand out from the competition because of various services such free coffee, a happy hour, tailoring services, and in house barbers.
H IS TO R Y OVERVIEW Amazon remains one of the largest online global retailers and is based out of Seattle, Washington. Launched on May 29, 1996, Amazon.com, Inc., was designed as a retail website that focused on selection, price and convenience. What began as an online bookstore, quickly took off and grew to include CD’s, DVD’s, MP3 downloads, apparel, computer software, electronics, video games, furniture, food and toys. The company manufactures as well as sells Kindle devices. Through Amazon, businesses as well as individuals can sell their products and inventory on the website. App developers, musicians, authors and filmmakers can publish and sell their content via the site. Amazon functions through two separate segments: North America and International. VISION “Our vision is to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” REVENUE Amazon is the leader in disruptive retail. In 2015, Amazon’s net income was $596 million and the company is worth $393.2 billion.
Jeffrey P. Bezos Founder, Chairman, President and CEO
Brian T. Olsavsky CFO, Senior VP
David A. Zapolsky Secretary, Senior VP, General Counsel
Not Pictured: Shelley L. Reynolds: CAO, VP, Controller - Craig Berman: VP
Andrew Jassy Senior VP, Web Services
Jeffrey Blackburn Senior VP, Business Development
Diego Piacentini Senior VP, International Consumer Business
BRAND IDENTITY IDENTITY Amazon’s number one concern is customer satisfaction and brand loyalty. Setting up services such as Amazon Prime and creating the ability for customers to review products has been some of their strongest moves towards building trust with their customers. The main issue for Amazon at first was consumer doubt about e-commerce in general. By setting up the ability for customers to review products, it helped them feel safe and able to trust that they would receive a quality product. Amazon Prime created a way for customers to feel a part of Amazon by getting special privileges such as free shipping. Another main characteristic of Amazon is its convenience and fast delivery processes. In 1997 Amazon added “one click ordering” which simply means once consumers add a method of payment and shipping address, they can buy any product, simply by clicking “buy”, and it will be automatically charged to the payment on file and sent to the saved address. Amazon also developed a recommendation module which suggests a list of products based on products the customer has already purchased. This further increases ease of shopping and a customizable experience for customers. Recent features include a shoe fitter, which uses 3D scans to give customers a more accurate estimate about what shoe size they are for different brands. For bras they have similar technology to give consumers size estimates. AMAZON TRAITS -Quality products at affordable prices -Tech savvy -Reliable -Secure transactions -Low prices -Ease of purchase & delivery -Subliminal/indirect marketing
IDENTITY MATRIX
BRAND AS A PERSON
BRAND AS A PRODUCT
Economical Tech savvy Convenience oriented Price conscious
BRAND AS A SYMBOL
BRAND AS AN ORGANIZATION Efficient Reliable Customer centric
DISTRIBUTION SALES VOLUME -2015 Net Income $596 million -Sales volume of apparel sales estimated to grow to 27.78 billion in 2017 LOCATIONS About 70 distribution centers in the United States, 10 of them being same day shipping centers. Globally, Amazon has 109 distribution centers. Amazon has 11 global market places including the United States, Canada, Mexico, France, United Kingdom, Italy, Spain, Germany, Japan, China, and India.
AUTOMATED FULFILLMENT CENTER The newly opened fulfillment center in DuPont, Washington is Amazon’s major progression toward sorting, packing, and shipping orders in the most efficient way. Inside this fulfillment center, each box travels on a conveyor belt surrounded by a dome of cameras that photograph the box in order to catalog it into the image-recognition algorithms. The box is then sorted by its type of product, size, and weight. This has reduced the process, which used to be done by humans with bar-code scanners which took almost twice as much time. This facility also houses a six-ton yellow robot on the main floor, which is able to pick up a car, but is currently only lifting pallets of boxes to the second floor of the warehouse to await shipping. AIRPLANES In August of 2016, Amazon unveiled a Boeing 767-300 displayed with the Amazon Prime logo on the side. Since then, Amazon has leased 40 planes for its own private use and plans are in motion to have all 40 flying by the end of 2018. TRUCKS Amazon trucks have been around since 2015 when they purchased a fleet to help transport their inventory. DRONES In December, the first ever drone delivery brought a bag of popcorn and a Fire TV to a home in England. Amazon is still in the process of testing out drone delivery further, but eventually, they plan to use drones in order to be able to deliver packages anywhere to customers in less than 30 minutes. ROBOTS In 2012, Amazon acquired Kiva Systems and therefore now has control of 30,000 robots which are in use to increase warehouse and retail efficiency.
P R O MOT IO N SALES ACTIVITIES Amazon has several types of sales. Deals of the day are when a single item or small set of closely related items are discounted for one day only. Savings and Sales are ongoing promotions that include a selection of discounted items. Lightning deals are a single item paired with a limited quantity of extra savings coupons, that are only available for the time period stated or until coupons run out. For Prime customers, there is also Prime Day, which is a one-day-only global shopping event in which members get access to exclusive discounts across all product categories. MARKETING BUDGET In 2016 Amazon spent $7.23 Billion on marketing in the United States, which is a significant increase from the $5.25 billion they spent in 2015.
AMAZON FASHION: 123K FOLLOWERS
AMAZON FASHION: 3M LIKES
AMAZON FASHION: 19K FOLLOWERS
AMAZON: 803K FOLLOWERS
AMAZON: 27M LIKES
AMAZON: 2.5M FOLLOWERS
COOKIES They use cookies through their website to post ads on other sites such as Facebook that are personalized to what consumers have been shopping for. COMMERCIALS Amazon makes commercials for Prime and echo. These commercials are put on their YouTube channel as well as cable television. EMAIL CAMPAIGNS Amazon sends general emails about sales and products that are trending. In addition to this, Amazon directly targets consumers by sending them emails about products they have looked at but not purchased. STYLE CODE LIVE Style Code Live, as defined by Amazon, is “a daily, live show where style enthusiasts can connect, chat, shop, and get the inside scoop on the latest fashion and beauty trends. Each day designers, bloggers, beauty experts and celebrities will reveal their secrets for making today’s looks work for you.” The show is broadcasted live on Amazon weeknights at 9p.m. EST and is hosted by Frankie Grande and Rachel Smith. Style Code Live has a Facebook, Instagram and Twitter.
S W O T A N A LY S I S STRENGTHS
WEAKNESSES
•Strong business model
•Limited liquidity position for expansion
•One stop shopping, multi classifications Efficient delivery
•Reliance on third party suppliers
•Predictive Analytics to build customer loyalty •Strong brand identity
•Lack of charitable giving in the past Employees often work long days and overtime, during holidays especially
•Large share of wallet •Multiple platforms for entertainment: far reach •Research driven •Reputation for low prices and reliability
OPPORTUNITIES
THREATS
•Strategic acquisitions
•Market competition
•Growth of personalization and delivery options
•Stringent government regulations
•Growth of brick & mortar
•State taxes (no uniform tax code)
•Growth of private label apparel
•Demanding customer expectations
•Innovative technology
•Online presence of brick & mortar stores
•Expanding to mobile International expansion (online and brick & mortar)
•Millennial shopping habits (how to appeal to both millennials and baby boomers)
SECTION TWO M A R K E T A N A LY S I S
M A R K E T A N A LY S I S STATE OF THE INDUSTRY The retail sales of menswear in the United States has been rising consistently. In 2014, sales were at $64.7 billion in the US. That number is predicted to jump to $74.8 billion in 2018. Men’s changing attitudes towards grooming has created a growing demand for men’s fashion in the United States. Previously men’s spouses have assisted with or controlled clothing purchases. More men have been controlling apparel purchases themselves and have become more interested in trends. Although men’s apparel spending is growing, according to Euromonitor International, the value growth of suits from 2011 to 2016 has decreased 4.7 percent. Casual attire has become more acceptable in social settings. Another aspect with the decline of suits has to do with the high price and hassle to find a good fit. More consumers are going online to research products and 65 percent of online shoppers said they usually make their apparel purchases online. This brings an opportunity for an online retailer to sell affordable, stylish suits.
K E Y C O M P E T I TO R S PRICE / ACCESSIBILITY MATRIX
PRICE
ACCESSIBILITY
DIRECT COMPETITORS
Brooks Brothers was founded in 1818 under the name H. & D.H. Brooks & Co. They offer men’s apparel and accessories as well as women’s and children’s. They sell through their website and in stores. Brooks Brothers has more than 250 retail and factory stores in the United States, shops in airports, and more than 250 international locations. They value customer service as well as servicing the community. By partnering with select local, national, and international non-profit organizations, they work to progress men’s, women’s and children’s health issues as well as education and the arts. Men’s Wearhouse was founded in 1973. Although Men’s Wearhouse is known for selling suits, they also carry the latest styles in denim. They want to give men the convince to shop for their whole wardrobe in one place. They emphasize the importance of customer service and how far their consultants will go to create a satisfying customer experience. At every store they have master tailors to create the perfect fit for each guest. Men’s Wearhouse acquired Jos. A. Bank in 2014. In 2016, they closed over 100 Men’s Wearhouse Tux stores.
Jos. A Bank is a menswear retailer established in 1905. They have 600 stores nationwide. In 2016, 80-90 Jos. A. Bank. Stores were closed. Four seasonal catalogs are sent out to allow toll-free ordering as well as the option to use the e-commerce website. Customers are offered services such as adding a travelercrease and tailoring services. They emphasize the workmanship of their apparel and the great selection with prices that are 20 to 30 percent lower than their competitors. They value customer service and have a 100 percent guarantee of satisfaction behind all their merchandise.
INDIRECT COMPETITORS
Macy’s was founded by Rowland Hussey Macy. He launched a store called R.H. Macy & Co. which became a full-fledged department store by 1877. Now they sell through brick and mortar stores, online, and their mobile application. Macy’s sells a wide range of products and they offer high demand name brand items as well a large assortment of private label brands. They offer large discounts through coupons to Macy’s credit card holders as well as frequent “one day sales” throughout the year.
Kohl’s was founded in 1962, when Max Kohl opened the first store in Brookfield, Wisconsin. Now Kohl’s operates over 1,160 stores as well as an e-commerce website. They sell private label, exclusive and national brand apparel, footwear, accessories, beauty and home products. They provide value to loyal customers through Kohl’s cash and the Kohl’s charge card, which gives holders 12 special discounts throughout the year. Kohl’s mission is “to inspire and empower families to lead fulfilled lives.”
Bonobos was founded in 2007 by Andy Dunn and Brain Spaly because they could not find pants that fit. Their solution to this problem is their signature curved waistband that conforms to the natural shape of the customer’s waist. They have also based their brand online to make the shopping process simple. They have over 30 locations that function as showrooms allowing consumers to try on merchandise that they can later purchase online. They offer free shipping and easy returns.
TA R G E T M A R K E T PRIME CUSTOMER Prime members spend 130 percent more money than general Amazon customers. They are very loyal to the Amazon brand and according to recent surveys, 92 percent of Prime members plan to renew their membership. Approximately half of Prime members are men and more than one-quarter of users are over 50. Fifty-seven percent earn over $60,000 a year, and 64 percent are childless. DEMOGRAPHICS PRIVATE LABEL BRANDS -Ages 25-55 -Urban dwellers -Occupations in business, finance and law -Well educated, Bachelors Degree or higher -Majority middle class, income: $30,000-90,000 PSYCHOGRAPHICS -Goal oriented and hard working -Loyal and prefer consistency -Value technology and convenience -Private and professional -Committed to friends and family SHOPPING HABITS -Value convenience and price -Like classic, professional styles -Research online before making purchases -Strong brand loyalty -Want personalized brand experience
C US TO M E R P R O F I L E S DAVID AGE: 25 OCCUPATION: Law student and legal intern LOCATION: Greenwich Village, Manhattan EDUCATION: Bachelor’s degree in Business, studying at NYU School of Law INCOME: $20,000 LIFE STAGE: Single, about to graduate school PERSONALITY: Hard working, organized, socially active, good sense of humor INTERESTS: Soccer, technology, photography STYLE: Modern, professional, sleek SHOPS AT: Zara, Express
MATHEW AGE: 35 LOCATION: Lower East Side, Manhattan OCCUPATION: Sales associate at Rolex INCOME: $55,000 EDUCATION: Bachelor’s degree in Communication LIFE STAGE: Married PERSONALITY: Well spoken, peer conscious, loyal INTERESTS: Fine watches and jewelry, fantasy sports, reading STYLE: professional, minimal, clean SHOPS AT: Polo, Macy’s
C US TO M E R P R O F I L E S DANIEL AGE: 45 LOCATION: East Village, Manhattan OCCUPATION: Accountant INCOME: $70,000 EDUCATION: Bachelor’s degree in Business, Masters in Accounting LIFE STAGE: Married with one child PERSONALITY: Traditional, goal oriented, knowledgeable INTERESTS: Cooking, film, cars STYLE: Professional, classic SHOPS AT: Kohl’s, Men’s Wearhouse
JOSHUA AGE: 55 LOCATION: Lenox Hill, Manhattan OCCUPATION: Finance Manager INCOME: $85,000 EDUCATION: Bachelor’s degree in Finance, Masters in Economics LIFE STAGE: Married with two children in college PERSONALITY: Family oriented, private, logical thinker INTERESTS: Stock market, golf, watching sports STYLE: Traditional, formal SHOPS AT: Brooks Brothers, Jos. A. Bank
SECTION THREE L O C AT I O N F A C T O R S
L O C AT I O N J U S T I F I C AT I O N ACE HOTEL MIDTOWN Amazon’s first ever apparel pop-up shop will be opening in fall of 2017, located in the lobby of the Ace Hotel in Midtown Manhattan, NY. The focus of the pop-up will be Amazon’s private label menswear lines Franklin Tailored, Franklin and Freeman and Buttoned Down. The aesthetic of the hotel lobby complements the hard working, suited man who we are targeting. Locating the shop in this hotel lends itself to a high volume of corporate men who work in the area, are traveling for business, or are visiting as tourists. The bar in the lobby is an ideal place for men to come unwind after a long day of work so we will utilize that area to drive sales. Rudy’s Barbershop is located nearby, which allows us to collaborate with them to include a grooming station in the lobby to attract our target customer. This will help Amazon bring awareness to their private label brands and further drive sales for their apparel sector. DATE JUSTIFICATION The pop-up shop will be open from September 17th through October 1st. This is good timing because it is after graduation season and there are many new hires in New York City that might need more work attire. In addition, consumers might be on the lookout for early holiday presents and the weather is getting cooler which is a more pleasant temperature for shopping for warmer clothing.
A R E A AT T R A C T I O N S MIDTOWN ATTRACTIONS Midtown has an array of attractions that brings in both locals and tourists. Within the area there is the Empire State Building, Grand Central Terminal, Rockefeller Center, Radio City Music Hall, Madison Square Garden, the United Nations, Times Square and many more. As far as shopping goes there is a Bloomingdale’s, Macy’s, Lord and Taylor, J. Crew, Gap, Men’s Warehouse, Joseph A. Banks, Brooks Brothers and more. There are many restaurants and bars as well. Popular food options include: ‘21’ Club, Carnegie Deli, Sardis or Le bernardin to name a few. For the people who need a cocktail to wind down after a hard day of work or shopping some of the bars in the area include Campbell Apartment, Rose Club, Lantern’s Keep, 48 Lounge, Flute Midtown, and Palm Court.
ESTIMATED COMPETITION Bloomingdale’s 1000 Third Avenue Upper East Side, Manhattan Brooks Brothers Rockefeller Center 1270 Avenue of the Americas LS Mens Clothing 49 West 45th St. Lord & Taylor 424 5th Avenue Midtown East, Manhattan
Macy’s 151 W. 34th St. Herald Square, Manhattan Men’s Suits on Fifth Avenue 581 5th Avenue Men’s Wearhouse 360 Madison Avenue Upper East Side, Manhattan Sak’s Fifth Avenue 611 5th Avenue Midtown East, Manhattan Suitsupply 635 Madison Avenue
S T E E P A N A LY S I S SOCIAL -Male -Predominately white -Trendy, style conscious consumers -19 million people live in NYC TECHNOLOGICAL -city is going wireless, people will not lose wifi connection -ParkNYC: pay parking through mobile application -More than 81% (16 million) New Yorkers are internet users. -Government has spent over $1 billion on technology ECONOMICAL -Average income: $71.8k + -High volume commercial real estate -NYC dominates the economy of New York State -Unemployment rate is 8 percent -Inflation rate is 2.3 percent
ENVIRONMENTAL -Currently the air quality in Manhattan is a 47 which is considered good -In 2012 the EPA lowered the acceptable level of annual PM 2.5 to an average of 12 micrograms per cubic meter of air -Top quality drinking water -Average high temperature: 62.3 degrees Fahrenheit -Average low temperature: 48 degrees Fahrenheit -Humid subtropical climate -Winters: cold and damp -Summer’s: Warm to hot and humid -Spring: Chilly to warm POLITICAL -Sales tax: 8.87 percent for items over $110 -Manufacturing zone parameters -Political status is stable
A R E A A N A LY S I S AREA ANALYSIS Midtown has recently implemented their new mobile park and pay system, called ParkNYC, which allows the community to access 85,000 parking spaces and pay by hour through a mobile application. On an average weekday in Midtown, 26,831 people pass through in just three hours. Penn Station boards 92,314 people each weekday and Port Authority Terminal boards 78,006 people each weekday. Most of the area falls under the M1-6 zoning district which is known as manufacturing. This area does not require parking. Buildings can have an additional public plaza. The sales tax in this area is 0% unless you spend over $110.00 and then an 8.87% sales tax is applied.
L O C AT I O N S E G M E N TAT I O N POPULATION FACTS In Midtown Manhattan, the total population is 391,371. Of those, 188,006 are male. The median age is 37.38 and 71 percent of people work in white collar jobs. Forty two percent of the population has a bachelor’s degree and 34.1 percent have a graduate degree. HOUSEHOLD INFO AND INCOME The average number of people per household is 1.56. The majority of households are non-family at 72.6 percent. The total number of households is 231,999 and of those only 21,956 have children. The majority of the population has never been married at 58.7 percent and 27.4 percent are currently married. The average household income is $139,796 but the median household income is only $84,864. Total household expenditures in Midtown Manhattan are above the national average and additionally they spend above the national average on clothing. The chart below expresses the median income by age. According to the chart, 25-44 year olds have the most expendable income.
SECTION FOUR S H O P D E TA I L S
POP-UP SHOP DESIGN STORE LAYOUT & AMENITIES When customers walk in, they will immediately see the merchandise. We have included two of every size for each style of apparel to keep the retail space open and organized. The space will work as a show room, with purchased merchandise ordered on Amazon’s website though sales associates’ Fire Tablets. To the right, there are dressing rooms with tailors on hand to fit clothing for free for Prime members. To the left of the tailoring, there is a grooming station with barbers from nearby barber shop, Rudy’s. On the left side of the space, there is the hotel bar that we will utilize so that shoppers can relax and buy alcoholic or non-alcoholic drinks. From 11 a.m. to 3 p.m. free coffee will be provided to guests and we will run a special for the duration of the shop for 25 percent off shoes with the purchase of a suit.
TOUCH The materials and textures in the space are used to create a comfortable, inviting environment. The lobby has concrete flooring and various rugs are used to add warmth to the space. The furniture is made of suedes and leathers and the texture of wall hangings such as the clocks and the American flag add interest. There is also physical interaction with the tailors and the barbers that creates a richer experience for the consumer. SIGHT The Ace Hotel was chosen because of the convenient location and aesthetic. The lobby has a den feel. The furniture is leather and suede and there are a lot of browns, reds and blues to make the space feel cozy. The open layout allows guests to easily transition from the bar, to the retail section, to the barber shop. Although the merchandise is prominent in the space, the emphasis is on the collective experience.
SOUND Sounds of the store will include interaction between staff and customer as well as classic rock music. SCENT The store will have a musky scent with tones of mahogany, moss, and tobacco. This scent will be subtle as to not overwhelm customers, but will evoke the relaxed essence of the outdoors. TASTE From 11 a.m. to 3 p.m. coffee will be provided to guests. Later on, the hotel bar will be utilized to offer guests a variety of alcoholic and non-alcoholic drinks.
CLOTHING RACKS AND DISPLAYS
DRESSING ROOMS AND TAILORING
RUDY’S BARBER SHOP AREA
HUMAN RESOURCES POP-UP SHOP EMPLOYEES
Store Manager Assistant Store Manager
Sales Associate Tailor
Sales Associate
Sales Associate Tailor
OTHER WORKERS In addition to these workers, we will have two barbers from Rudy’s Barber Shop and two bartenders from the hotel for the bar in the afternoon/evening. These workers will not be employed by Amazon. CUSTOMER SERVICE As an Amazon Pop-up shop, the main priority is customer service. Because of this, we want the flow of the store and the experience to be as seamless as possible. Two tailors will be on hand in the store to take measurements and do the fittings. Garments will be sent to the New York warehouse for sewing and be shipped to the customer the next day. Our sales associates will be equipped with Fire Tablets to make the checkout process quick and efficient
P R O MOT IO N A L P L A N PROMOTION TIME LINE
PROMOTION BUDGET Instagram: $10,000 Twitter: $10,000 E-Blast: $1,250
Snapchat: $10,000 Fashion blogger: $2,000 Thank you notes: $1,000 Total budget: $34,250
SOCIAL MEDIA Amazon has a large following throughout their social media outlets. We will post content about the pop-up shop on Instagram, Snapchat and Facebook. There will also be a Snapchat filter that will be active for the duration of the pop-up shop. We will spend money on advertising through social media and partner with menswear blogger, Brian Sacawa, of He Spoke Style. Brian already has a relationship with Amazon as he appeared on an episode of Style Code Live. He has 170,000 followers on Instagram and his fans would help expand Amazon’s customer base. EMAIL BLAST An email blast will be sent prior to the shop opening to current Amazon and Amazon Prime members who are located in New York and surrounding states. Another email will be sent half way through the duration of the pop-up that will include images from the launch.
MEDIA AND PR KIT We will work with Esquire Magazine to include the event in their September issue and invite them to the launch party to cover the event for their digital platform. The PR kit will include photos of the space and launch party. We will also include a press release and a line sheet. INVITATIONS AND THANK YOU NOTES Four hundred printed invitations will be sent out to influencers, media, and predominant businessmen. Printed thank you cards will be sent out to everyone who made a purchase at the pop-up shop. LAUNCH PARTY DETAILS The launch party will have a budget of $14,174. There will be free champagne and beer for guests. Hors d’oeuvre will be served for approximately 400 people. To achieve a fun atmosphere, we will hire a DJ and photographer for the four hour duration of the party. We will also use the Style Code Live platform to live stream portions of the party including the merchandise details.
UNIT BREAKDOWN
BLAZERS
SUITS
PANTS
ACCESSORIES
SHIRTS
SHOES
SALES FORECAST SALES ESTIMATE
UNIT SALES PROJECTIONS
O P E R AT I O N S B U D G E T
PROFIT AND LOSS SET UP EXPENSES
PROFIT AND LOSS STATEMENT
CONCLUSION CONCLUSION Amazon’s private label menswear is affordable and simple. The two main obstacles of these collections are lack of brand awareness and the inability to try apparel on for fit. Our proposed pop-up shop would solve both of these issues. Using a showroom model where consumers can try clothing on in store and order online, gives the space a more open format without merchandise clutter and will allow customers to save their sizes and measurements to their Amazon profile. The location at the Ace Hotel in Midtown Manhattan will attract local and visiting men who are looking for business attire. Since Amazon is a customer centric business, the amenities and experience is based around the target market’s needs and will build brand loyalty. Although our projections show that the store would lose $37,216.80, the store will build more awareness to the private label brands and create repeat customers.
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WINTER 2017 - FASM 410 - PROFESSOR LEVY