Maison Verdure by Lizbeth Angjaya

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maison verdure Lizbeth Angjaya Student ID: 018799 Istituto Marangoni Manchester Metropolitan University BA (Hons) Fashion Business Honours Project May 2017

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TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY

1.1 Industry & Market Environment 1.2 The unique business opportunity 1.3 Vission & Mission 1.4 Objectives & Strategies 1.5 Financial Potential 1.6 Management Team 1.7 Resources & Capital

2.0 BUSINESS DESCRIPTION

2.1 Business Concept 2.2 Business Objectives 2.3 Background Reasons & Motivations 2.4 History 2.5 Target Customer 2.6 Structure 2.7 Location

3.0 BUSINESS ENVIRONMENT ANALYSIS 3.1 Macro Environment 3.1.1 PESTLE Analysis 3.1.2 PESTLE Mapping 3.2 Analysis of the Micro Environment 3.3 Competitor Analysis 3.4 Market Analysis 3.5 Strategic analysis of the Internal Environment 3.6 Evaluation of the Strategic Fit

5.0. OPERATIONS PLAN 5.1 Daily Activities 5.2 Machinery 5.3 Sourcing 5.4 Materials & Suppliers 5.5 Shipping & Delivery 5.6 Location

6.0 MANAGEMENT SUMMARY 6.1 Philosophy 6.2 Hierarchy 6.3 Team Members 6.4 Strengths & Weaknesses

7.0 FINANCIAL PLAN 7.1 Financial Objectives 7.2 Capital Requirements 7.3 Financial Projections 7.4 Breakaven Analysis 8.0 APPENDICES 9.0 BIBLIOGRAPHY

1.0 EXECUTIVE SUMMARY The business plan will investigate how the idea of changing consumer trends and fashion futures for better can be translated into a profitable company that fills the market gap for versatile luxury loungewear and feed demand with sustainable and ethically-oriented product choices for the consumers.

1.1 Industry & Market Environment United Kingdom’s fashion industry is worth £26 billion & 800,000 jobs to the economy, making it the UK’s largest creative industry. Textile and fashion exports alone are estimated to be worth over £6.5 billion and the majority of British fashion businesses export to other countries. The current market environmental is filled with uncertainties due to the recent happenings of BREXIT, if fully effective will cause limitations in the free movement of goods and people and which will also affects the negotiation tactics in the free trade agreement within the EU. However regardless of the uncertainties, the U.K still retains its market liquidity and a strong international reputation. The UK is by far the largest market in Europe for investment in IPOs. 1.2 The Unique Business Opportunity It was reported that many millennials are settling down, having kids and leaping up the career ladder (WGSN, 2016), in which indicates a new generation of family is growing and the customer demands and priorities are shifting. This also concludes that women are working to strike balances in their career as well as raising a family, indicating a busy lifestyle. Travel trends also changed drastically, as reported that in 2013, Millennials took 35% of all business flights, and by 2025 the figure will rise to 54%. (BCG, 2013). The trend also redefines a community-minded approach of traveling and what it means to work from home. Customers are also becoming more impatient, with 44% of travellers already expect to be able to plan their holiday in a few simple taps of their smart phone and over half (52%*) expect their use of travel apps to increase in 2017 (Booking.com, 2016). It is also becoming increasingly important to document travel experiences through social media platforms (Pike. H, 2016), in which Instagram-friendly and eye-opening trips are embarked, instead of partying experiences within the millennial customers. This fact is also connected by how customer aspires to look good on social media, along with their travel destinations. (Booking.com, 2016) With the current growing market of loungewear, in which was indicated through retailers like Selfridges, who dedicated a special space for lingerie, activewear and loungewear, reported a growth in loungewear by 30% year-on-year, while sales of cashmere loungewear pieces have doubled (Pike. H, 2016), this proves that the demand and profitability of the loungewear remains rising.

With all the trends seamlessly merged altogether, the products and services of the luxury loungewear aims to solve customers’ changing demands of convenience within clothing, and increasing preferring of well-being and enhancing experiences. The transitional loungewear will also solve problems of customers who possesses a hectic schedule, and still wants to look elegant, extravagant and beautiful at the same time during traveling, work, chilling at home, hanging out with friends, as well as sleeping with feelings of comfort. The product will be expected to push the boundaries of fashion and its versatile function. With the fact that sustainability is becoming an important new driver of consumers’ purchasing decisions (BOF, McKinsey & Company, 2016), it is also fully realized that the sustainable and ethical factor of the business culture in this context will respond to the customers’ awareness of issues, emphasizing an area of differentiation within the industry, providing customers with better option, and in particular, serving customers who actively seek for sustainable fashion. To exploit its uniqueness, it will adopt a supply-chain management policy in which the company will source from suppliers who sources high-quality materials through premium luxury designers from all over the world who has fabric left overs. The suppliers that work with the company will create a fabric material broken down from the leftover materials sourced. Other than this approach of sourcing from left-over fabrics, the company will also source fabrics that are not left overs, it will be directly sourced through the natural resources with an ethical and sustainable procedure. This will be supported by building and cultivating relationships with communities from the developing countries that sources natural resources – in support of sustainability. 1.3 Vision & Mission Vision To establish the company to be a force in sustainable fashion and loungewear market alike. Mission Seeking to provide exceptional and versatile luxury fashion through sustainable craftsmanship and inspire customers to be environmentally aware and involved. 1.4 Objectives & Strategies The objectives of an enterprise that operates like this is to revolutionize the fashion industry through the rising functionality of loungewear with a high-performing apparel brand that serves transitional purposes and to contribute to social responsibility to a high standard in an effective way, as well as to contribute to the development of sustainability in the UK and internationally through creative enterprises. The business will differentiate itself from the competitors through branding, storytelling, its transparent production, additional digital services, a community-building culture within the brand and company itself. All these elements are considered to be a sustainable competitive advantage, an experience that is difficult for the competitors to replicate.

1.5 Financial Potential The business aims to acquire its funding from the help of family members, bank loan and sponsorships from external organizations, to stabilize its cash flow at the end of every fiscal year. It will be investment-heavy, due to its contribution and implementation of sustainability. Rewards of the business opportunity will include innovation management, a contribution to the sustainable development of the United Kingdom. Risks will comprise of heavy losses due to the heavy investments. 1.6 Management Team The key people that will achieve the results will primarily be the investors and the entire employees of this business. 1.7 Resources & Capital Funding will be needed for working capital to buy more inventory, in case of an expansion. Further funding would be very beneficial for the business in order to re-invest in its research and development and innovate to acquire technological advancement in its sourcing and manufacturing strategies, in order to gain a sustainable competitive advantage. (Refer to the 9.0 Financial Plan for assumptions of profits and losses when the company is established)

2.0 BUSINESS DESCRIPTION 2.1 The Business Concept

The business model is a company that designs, markets and retails a brand of sustainable mid-luxury positioned womenâ&#x20AC;&#x2122;s brand that primarily offers a mix of loungewear apparel such as tracksuits, sweatshirts, sweatpants, pyjamas, robes and kimonos and camisoles with a very limited extension of additional accessories. It aims to accommodate and support various customers with starkly different lifestyles and needs. With the current trend that loungewear can be worn outdoors and most luxury brands elevate loungewear pieces into staple status (Pike. H, 2016), it also projects itself to push the boundaries of loungewear further. The business aims to be a bridge between ready-to-wear and loungewear. The pieces that are being offered will be highly transitional for different daily activities and fill the gap in the market for a lack of fashion-forward, accommodating and high-performance loungewear. The product offerings, product attributes, marketing, production practices will strongly revolve around sustainability and eco-friendliness, with an emphasis well-being enhancing experiences to inspire uninformed consumers to be socially conscious and responsible, in tune with its narrative and values. Being a sustainable and eco-friendly brand means that the brand will be strictly committed to ethical trading and production. Recycling and upcycling will be a crucial and pivotal part of the sourcing, manufacturing and production processes. However, the main commitment of the business mainly emphasized on nature and environmental instead of animal rights approach. The uniqueness of this business concept is that it has a unique supply-chain management policy in which the company will source from suppliers who sources high-quality materials through premium luxury designers from all over the world (with a main focus on European designers) who has fabric left overs. The suppliers that work with the company will create a fabric material broken down from the leftover materials sourced. Other than this approach of sourcing from left-over fabrics, the company will also source fabrics that are not left overs will be directly sourced through the natural resources with an ethical and sustainable procedure. The supply-chain management will also involve relationships with various suppliers that produces waste, as well as fashion firms around the world (in particular, countries with developing economies), that produces excess waste (leftovers) from the usage of fabrics. The business also seeks to commit into forging partnerships with artisans from the developing countries (eg. cotton-weaving communities in Chiang Mai, Thailand and Flores, Indonesia and silk weaving communities in Varanasi, India) , working in local communities to source the appropriate natural resources to a high ethical standards. Challenges that are present for the business lays in the digitalized approach to reach and deliver to customers. The ratio of the budget spend will be spent on its marketing endeavors, as an on-line mobile app will be developed for additional customization and personalization services, as well as its core business offering of its seasonal products. Additionally, the website itself will contain platforms that with this app, the customer-data will be beneficial to maintain the flexible process of production.

The company will also be open to all sorts of crowdfunding and crowdsourcing in terms of the product development, in which such practices will be in-line with approval to the brand DNA and its customization regulations. The supply-chain management, the procurement of raw materials, recruitment of expertized employees, superior quality in craftsmanship and manual production, an emphasis of versatility and digital innovation is what makes the value of the â&#x20AC;&#x153;Maison Verdureâ&#x20AC;? DNA.

2.2 Business Objectives Business mission

To revolutionize the fashion industry through the rising functionality of loungewear with a high-performing apparel brand that serves transitional purposes and to contribute to social responsibility to a high standard in an effective way. Become a market leader in sustainable high-fashion and loungewear apparel in the United Kingdom Impose an effective allocation of resources through craftsmanship in an ethical and responsible way. Encourage enthusiasm and motivation and inform and inspire social awareness for customers alike. To contribute to the overall sustainable development of the UK, as well as the world through creative enterprises.

Corporate objectives

Grow revenues by 10 % by each year of the two to three years since the first year business was founded. Invest most of the profit margin for technical equipment and supply chain management for the enterprise to cover most of its longterm liabilities through delay. Stabilization of cash flow within third to fifth year of the business.

2.3 Background Reasons and Motivations The reasons for an enterprise that will drive social awareness, inspiration and enthusiasm is to contribute and influence the local fashion industry through creating an innovative industrial power for advanced manufacturing and facilities within high-end fashion. The company seeks to improve the local fashion industry by incorporating itself into environmental priorities and responsibilities, by bringing appropriate environmental business practices within the UK fashion industry. The brandsâ&#x20AC;&#x2122; value proposition and responsibility to operate and work transparently, involves exceptional suppliers, leading technical experts, and creative fashion talents to build a force of influence within the industry and externally.

2.4 History Currently, the business is in start-up stage, aiming to proceed to growth and survival stage soon. Currently, the founders and internal staff of the business are adjusting its business model to ensure maximum profitability and how it meets the customersâ&#x20AC;&#x2122; expectation. Challenges that the founders faced within this stage are managing its cash reserves and sales expectations, establishing its ever-changing customer base and its market presence. The growing number of customers and recurring revenues will determine how the business could further proceed. Further progression of the business will generate more customers and additional revenue, as well discovering its direct competitors. 2.5 Target Customer The customer that will use the products and services of this business will be varied. In an end-user (B2C) perspective, and through demographic segmentation, the projected customer will be women, from ages 20 â&#x20AC;&#x201C; 45 years old (directly targeted), as well as other individuals who are older than 45 (untargeted). The primary customer will belong to the millennial generation (born in 1980s to 2000). 2.6 Structure The proposed business model is a private limited company (ltd), limited by shares. This company were registered through the UKâ&#x20AC;&#x2122;s registrar, Companies House in their London office. The business is a legal entity in its own right, distinct from the directors who run and manage them. 2.7 Location The business will be operated and headquartered in London, United Kingdom. The manufacturing, production, warehousing are also going to be located in the United Kingdom, in particular in the outskirts of London. The materials and fabrics will be sourced from global sources, suppliers within the UK, Italy, Spain and additionally, in developing countries like India and Indonesia. A head office will be located at the Central London area. (See Chapter 5.0, Operations Plan for details)

3.0 BUSINESS ENVIRONMENT ANALYSIS This section will identify the general forces affecting or have the potential ability to affect the business, its competitors and potential competitors and in-depth detail of the customer. 3.1

Analysis of the Macro Environment (PESTEL)

The United Kingdom business landscape has drastically changed since the announcement of BREXIT (1P) last year on June 2016. It was reported that confidence among UK businesses remains in negative territory according to Business Confidence Monitor (BCM). The BCM Confidence Index now stands at -8.7, compared to -9.8 in Q4 2016. However, as of now, the confidence is has slowly recovered. Stronger growth in export and domestic sales is expected. Firms are likely to pass many of these increases on to their customers, which may be part of the reason why they expect domestic sales growth to pick up after a flat trend through 2016. Export growth is also expected to strengthen, continuing the existing trend and reflecting the weak sterling. (Izza, M, 2016). Capital investment has experienced the slowest growth for three years and expectations are slower yet in 2017. This shows that while companies are expected to see growth in their sales over the coming year, they are cautious about translating that into higher capital spending. The same is true for expenditure on Research and Development, which has seen a 1.9% increase in the past year, but which is expected to rise by only 1.4% over the next 12 months. Currently, businesses in the UK are dealing with economical pressures that includes: Changes in trade agreements (1E) – EU memberships enables UK and the companies based there to sell their goods freely in union without having to pay additional taxes to import goods. The newly proposed free-trade agreement would mean increased administrative costs and possible delays to deliveries, which could put companies at a disadvantage, in particular, companies that caters to online retailing and e-commerce. Exchange rates fluctuations (5E) – the sterling is inconsistent. It has never reached the rates it was pre-referendum. The current condition is quite uncertain. It is quite sensitive to changes, as can be seen when “Article 50” was announced by Theresa May. However this also caused a short-term benefit, the UK has become the cheapest luxury market in the world (Hoang, L, 2016), and this was also generated from the rise of tourism, as an immediate effect from BREXIT. This can further drive companies’ organic growth. The socio-cultural changes are also reflected during these times, which is complex for businesses to follow. Experience economy (2S) - The spending habit of the British are constantly changing. Official data shows that households are spending less on clothes and food but more on holidays, cars, entertainment and eating out, which highlights the shifting the consumer demands, increasing the market prospects of some businesses.

Rising number of high-net worth individuals (3S) - The number of ultra-wealthy people living in the U.K. capital is expected to climb by 30 percent to 6,058 over the next decade, as reported, which also increases the market prospects in the UK, predicting a positive outlook for the future, in particular for luxury fashion brands. The importance of technology within the UK business landscape and the consumer market is expanding further. It was reported that Smartphone penetration (2T) in the UK is approaching its peak since almost ten years after the launch of touchscreen smartphones in 2007 (Deloitte, 2016), with brands like Apple and Samsung. Almost half of UK adults had access to at least one type of connected entertainment product (tablets, laptop). For fashion brands, this marks the importance of being adaptable to the latest technological trends, which will affect its communication tactics. The legal changes due to the BREXIT, will affect the Consumer Policy (1L) and Data Protection (2L), which further implicates uncertainty for businesses due to the unpredictable changes of its rules and regulation policies which is connected to the EU. It was predicted and reported that consumer consciousness is expanding and â&#x20AC;&#x153;sustainability will be the standard in 2030â&#x20AC;? (Amed, I, 2016). Regardless, it was reported that recycling rates within the years of 2014-2015 has dropped, which is also below the EU requirement of having 50% (3En). This further raises the questions in regards to how businesses can impact minimally and how the national consumer awareness is. Nevertheless, it can be seen that the awareness on environmental issues are inevitably growing and pulling changes in the consumer behavior. Regardless of the macro environment happenings, the UK remains one of the most attractive markets in the world for foreign direct investments. Once again, the UK is the most attractive destination in Europe for FDI, with 20.9% of receipts (E&Y, 2016). Investors will still need to innovate and develop a long-term strategy as the market will change and progress every year.

3.1.1 PESTLE Analysis Factor Political

Description 1P. BREXIT – On 24 June 2016, “Leave” won with 51.9% voters voting to leave the European Union as compared to voters voting to remain by 48.11%. This event implements limitations in the free movement of goods and people and which will also affects the negotiation tactics in the free trade agreement within the EU. Due to the reported plunging global stocks, there are also hints that this will affect the business confidence and causes slowdown in business investments. (Bowler. T, 2017)

Certainty Certain

Impact Negative

Economical

1E. Changes in trade agreements As an Certain EU member, UK and the companies based there can sell their goods freely in the EU without having to pay additional taxes to import goods. However due to BREXIT, the proposed free-trade agreement would mean increased administrative costs and possible delays to deliveries. (Reid, D, 2017)

Negative

2E. Changes in the freedom of moveUncertain ment policy for EU nationals within the UK. This creates problems for fashion companies whose foreign employees account for a large percentage of their workforce. Recruiting and retaining talent would become more challenging. (Hoang, L, 2017)

Negative

3E. 2.3% Inflation Rate as of March 2017. 2.3% is the above Bank of Englandâ&#x20AC;&#x2122;s 2% target. However, this is considered steady. (Fletcher, N, 2017)

Neutral

Certain

4E. Slow GDP Growth as of early 2017. Certain In wake of BREXIT, GDP growth fell more than expected to 0.3% in the first quarter from 0.7% in the previous quarter, the Office for National Statistics said. (Allen, K, 2017)

Negative

5E. Exchange rates fluctuations. Since BREXIT, the pound is inconsistent. It has never reached the rates it was pre-referendum. The current condition is quite uncertain. (Meredew, O, 2017)

Positive / Negative

Uncertain

Socio-cultural

1S. Aging population in the UK - Like most developed / first-world countries, aging population is a challenge that UK faces. Between 2015 to 2020, over a period when the general population is expected to rise 3%, the numbers aged over 65 are expected to increase by 12% (1.1 million) (UK Parliament, 2017)

Certain

2S. â&#x20AC;&#x153;Experience economyâ&#x20AC;? - Changes in the British spending habits. Official Uncertain data shows that households are spending less on clothes and food but more on holidays, cars, entertainment and eating out. (Allen, K, et al, 2016)

3S. Rising number of high-net worth Certain individuals in UK. - The number of ultra-wealthy people living in the U.K. capital is expected to climb by 30 percent to 6,058 over the next decade, the report showed (Broom, G, 2017)

Neutral

Negative

Positive.

Technological

1T. Digital influence within UK - digital technology is in influencing 33% of in-store retail sales in the UK, equivalent to almost ÂŁ100 billion in 2014. In particular mobile is affecting 17% of in-store sales or ÂŁ50bn, 2.5 times the level seen in 2012. (Deloitte, 2014)

Certain

Neutral

2T. Smartphone penetration in the UK is approaching its Certain peak since almost ten years after the launch of touchscreen smartphones in 2007 (Deloitte, 2016), with brands like Apple and Samsung. As reported by Deloitte in 2016, the penetration increases from 52 % to 81 % of the population in the four years to May 2016. Almost half of UK adults had access to at least one type of connected entertainment product (tablets, laptop). Users on average, downloads at least 20 apps. Additionally, online shopping and retail is the top ten browser and top ten app activities.

Neutral

Legal

Environmental

1L. Consumer Policy A huge amount of UK consumer protection regulation is derived from the EU. Directives implemented in the UK protect consumers when they have been sold faulty products and an EU exit would end further harmonization efforts.

Certain

2L. Data Protection The data protection framework in the UK is largely governed by EU-derived legislation. Leaving the EU would raise questions about the rules in place to protect personal data. (Speechlys, R, 2016)

Uncertain Neutral

Negative

1En Environmental Standards and Policies Uncertain Neutral If the UK finally leaves EU, it will be important for UK businesses to remain plugged into many of its environmental standards and policies, especially if the UK wishes to continue accessing the Single Market. But in such a scenario, UK businesses, which are often at the forefront of environmental innovation from the manufacturing of ultra-low emission cars and energy-efficient ICT equipment to the sustainable sourcing of wood, would have little say on how these future standards and rules will develop.

2En. Recycling Rates in UK The recycling rate in England itself has dropped from 44.8% in 2014 to 43.9% in 2015. It also means that the UK as a whole is almost guaranteed to miss an EU target of recycling at least 50% of its household waste by 2020, as England’s size means it accounts for much of the rubbish the country produces. Wales is far ahead of England with households recycling 61% of waste, while Scotland is on 44.2%. (Vaughan, A, 2016)

Certain

3En. Air Pollution in the UK – Certain Poor air quality provides a risk to employee health, with coughs, sore throats and asthma attacks likely to become more frequent. This will bring about a growing number of sick days, something that is already estimated to stand at 656,900 days a year in Central London due to air pollution. (Phillips, R, 2017)

Neutral

Negative

3.1.2 Pestle mapping figure (Source - own work, 2017) The PESTLE mapping will help visualize the external impacts of the business. The biggest threat comes from the economical factors. While technological, socio-cultural and environmental factors are more neutralized. Overall, the entire mapping is balanced on the negative and neutralized impacts.

CERTAIN

3En

1P 1E 4E

2En 1T 2T 1S

3E POSITIVE IMPACT

NEGATIVE IMPACT 2L

2E 5E POLITICAL (P) ECONOMICAL (E) SOCIO-CULTURAL (S) TECHNOLOGICAL (T) LEGAL (L) ENVIRONMENTAL (En)

1En 5E

UNCERTAIN

3.2 Analysis of the Micro Environment This section will analyze the internal forces of the business that comprises of market sector, market segments and market trends. 3.2.1 Size of the industry Britain has built an established fashion industry with a very mature market setting within the national market. The U.K fashion industry has been defined by the Department for Culture, Media and Sport (DCMS) and other bodies as purely “designer fashion”, but the sector has changed and evolved significantly in the past decade, so therefore retailing and clothing is part of the fashion industry itself. The fashion industry in the UK proved to be globally influential, with chain retailers like Marks and Spencers, Debenhams expanding and operating internationally. The industry is quite diverse in its design expertise, ranging from womenswear, menswear, childrenswear and accessories, with a combination of offerings from a wide variety of price points, fast fashion, high street, contemporary and luxury. As of recent, the UK’s fashion industry is worth £26 billion & 800,000 jobs to the economy , making it the UK’s largest creative industry. Textile and fashion exports alone are estimated to be worth over £6.5 billion and the majority of British fashion businesses export to other countries (Donaldson, A, 2016) 3.2.2 Market Size In general, the U.K has a population of 64.5 million people, a labor force of 33.0 million people, with an unemployment rate of 6.3% and a GDP per capita (PPS) of $ 46,297 dollars. (Fashion United, 2017) Pure London reported that after food, fashion is by far the most important retail market of all. With a total value of £50 billion per annum it accounts for 15% of all retail sales and 32% of all non-food sales. (Pure London, 2016). 3.2.3 Current Market Analysis As of 2017, The UK has enjoyed growth within its market. Fro 2010 to 2015, the UK’s rate of growth within consumer spending grew by 28% and it is forecasted that by 2020, the total spending would rose by 12.89 %, which is worth of £57.7 billion. Competition in UK fashion retailing is set to intensify still further. Apart from further capacity growth the new National Minimum Wage will add to operating costs. (Pure London, 2016). Intense competition in the UK fashion space has meant retailers have needed to seek out online customers in order to protect their market share, and this has undoubtedly driven innovation. Despite of BREXIT, U.K still retains its market liquidity and a strong international reputation. The UK is by far the largest market in Europe for investment in IPOs.

3.2.4 Competitive forces analysis Porterâ&#x20AC;&#x2122;s five forces model (own work)

Bargaining Power of Suppliers

Medium to High Being a brand that adopts sustainable and eco-friendly practices and incorporate organic, left-over materials within its product range, the number of suppliers that specialize in providing these materials are relatively scarce compared to other suppliers for mainstream and non-sustainable fashion. Which means the suppliers dominated by a small number of companies and is more concentrated than the industry to which it sells.

Maison Verdure will have to have to cultivate stronger relationships with its suppliers. It will also have to search for more alternatives in case the suppliers that it liaises to cannot provide the materials they want due to unforeseen circumstances.

Bargaining Power of Suppliers

Threat of New Entrants

Medium There will always be a possibility that another external force, a firm with similar product offering to Maison Verdure can enter the market. However, the capital requirements to create a â&#x20AC;&#x153;sustainableâ&#x20AC;? business is costly.

Maison Verdure should use its capital costs to invest more in its branding, advertising and creating product demand, which may put the new entrants on hold.

Threat of Substitutes

Medium to High As a brand, Maison Verdure is replaceable by other firms and external forces due to its relatively new brand name. Other companies with an established brand that are not direct competitors which also offers the same product offering can pose a threat.

Maison Verdure should apply its sustainable practices to is branding, and exploits its strengths as a distinguished brand, to lure the customers away from substitutes.

3.3 Competitor Analysis This following section will help understand competitive advantages and disadvantages relative to competitors, to help forecast of new proposal and strategies. 3.3.1 Direct Competitors The brands that will be the competitors for Maison Verdure are Olivia von Halle, La Perla, F.R.S For Restless Sleepers and Three Graces London. Each brand offers various loungewear products exclusively positioned in the premium luxury market, and generally targets roughly similar demographics within its target market, and adopts roughly similar distribution strategies (department stores, e-commerce, etc.). Olivia von Halle, F.R.S For Restless Sleepers and Three Graces London are relatively discreet brands that offers loungewear products which offers a similar trait of elevating loungewear into a staple piece in which are practical and versatile for usability, incorporating the comfortable luxury trend. Specifically, being categorized as a loungewear brand, they are venturing specifically into the niche market of luxury loungewear that bridges daywear and nightwear. However La Perla, itself is known for its diverse product offering of lingerie and ready-to-wear, loungewear and many others, it competes with Maison Verdure due its establishment and dominance in the luxury loungewear market. The main point of difference is that the competitors mentioned in the above does not incorporate sustainable aspects as Maison Verdure does, and this further creates a differentiation and additional competitive advantage.

About Olivia von Halle is a British luxury loungewear brand founded in 2011. The brand is synonymous with reinvention and compromising luxury. Target customer Women from the ages of 20 +, who seek comfortable luxury to be worn inside their home and outside. “A fashion-forward woman who loves great cuts and beautiful fabrics and who wants to feel as chic and glamorous at home as she does when she is heading out partying.” – Olivia von Halle. Strategies Stocks in UK and outside, expanding in the Ireland, Italy, Canada, U.S, Russia, South Korea, China, Hong Kong, Saudi Arabia, U.A.E and others. Available on Net-a-Porter, Selfridges, Harrods and many other retailers. Objectives To blur the line between lounge and ready-to-wear or daywear and nightwear.

Strengths Although a relatively new brand it has strong retail network within the UK and abroad - stocked over 100 prestigious retailers such as Net-a-Porter, Mode Operandi, Harrods, Selfridges, Neiman Marcus as well as having its own flagship store in London. Has also been awarded numerous awards ‘Blue Butterfly Trust Mark’ (2013); Walpole’s ‘Brand of Tomorrow’ (2013) and ‘The Leap 100’ fastest growing and most exciting businesses in the UK (2015), which proves the brands’ popularity and excellence. Well-promoted brand, very clear target customer. It also has an interesting promotional content on Instagram. Weaknesses It is also not accessible to a wider customer base due to its niche market (very specific). It caters to a directional customer base. Possible Reaction: Olivia von Halle is a direct competitor to Maison Verdure due to its specific target market and product offering, which is strikingly similar. It will consider the option of having further improvement through the digital aspects – transforming it into more lifestyle-oriented. It may also use influencer endorsements to boost the brand further, to equally compete with Maison Verdure.

About La Perla is an Italian luxury lifestyle brand founded in 1954. Originally a lingerie brand, it has expanded into beachwear, sleepwear, ready-to-wear, bags and shoes. Target customer Women (primarily) and men, from the ages 20 and beyond who seeks the luxury lifestyle.

Strategies Has expanded worldwide. Exists in the UK, around Europe, North America, Asia, and the Middle East, Stocks on Matches, Net-a-Porter, Neiman Marcus, and many others. Has its own e-commerce platform, which is highly visual and very image-oriented. Partnered with photographers Mert and Marcus to create an image-heavy campaign. It is also known for its extensive celebrity endorsements. As of 2017, it has a new strategy aimed at leveraging its existing positioning as a top brand to evolve into a true luxury brand. Objectives To provide women with “Made In Italy” luxury. “Strengthen the retail networks”

Strengths It has a very established brand name, and it is has a reputation in the lingerie and fashion market. Strong brand recognition. Extensive product ranges. Well-promoted and positioned brand. Clear target customer. Highly interesting content on the website and social media. Weaknesses Limited target segment and audience due to it being positioned as a luxury lingerie lifestyle brand. Possible Reaction Not a direct competitor with Maison Verdure due to its wide range of product offering and it also primarily known to cater to the lingerie market. However, La Perla might still consider the option to boost the sales of its loungewear and maybe promote the loungewear line in a more extensive way. With the leverage of the positioning that recently happened, and the emerging trend of luxury loungewear, La Perla might consider a new marketing strategy to compete with Maison Verdure.

About F.R.S For Restless Sleepers is an Italian luxury loungewear brand founded by Francesca Ruffini in 2015. F.R.S is loungewear inspired by pajamas provides the appeal of silky elegance. Target customer Young and mature women from the ages 20+ who seeks for elegant, sleepwear-inspired separates. Strategies A very new brand in the market. It is mainly prominent in Italy, however is in expansion stage within Europe. Stocks in Farfetch, YOOX, Net-a-Porter, mytheresa, Browns, Matches, The Modist, Moda Operandi, Nordstrom. It also has an e-commerce platform within its website. It is very image and editorial-heavy. They are also on Instagram, with 25.1k followers as of May 2017. Objectives To provide women with high-quality pyjama-inspired luxe loungewear that serves as daywear and nightwear. Strengths Has a very clear target customer. Good retail networks online for a new brand. Weaknesses Low visibility in offline retailers. Not accessible to a wider customer base due to its niche market. Limited expansion. Does not have a presence in UK offline retailers (such as department stores), other than online retailers. Limited promotions and advertising. Lack of engaging content within online website. Possible Reaction F.R.S For Restless Sleepers will consider to implement its offline strategy, and re-structure its distribution strategy through both offline and online platforms. First, it can consider stocking its collection on department stores like Selfridges, Harrods or perhaps Fenwick. It might also further create a page on Facebook and consider more options to “re-brand” its Instagram feed through promotional visuals to compete equally with Maison Verdure.

About Three Graces London is a luxury loungewear / sleepwear brand founded in 2015 by Catherine Johnson. “Designed for the perfect getaway, each piece holds the promise of serene daytime drifting, the euphoria of that first vacation swim, the romance of a beach at dusk, or the seductive pull of the bedroom” (“About”, Three Graces London, 2017) Target customer Young women, from the ages 20 and above who seeks for garments that transports them into different settings with ease. Strategies It has its own e-commerce platform within its website. It has recently adopted brand extension strategy, introducing swimwear and beachwear lines, to compliment its core product offering of sleepwear. It has expanded beyond the UK market, working with stockists in Mexico, Germany, Switzerland, Russia, Singapore and Maldives and currently is slowly expanding. Product-oriented social media content. Objectives Three Graces London seeks to provide women with garments that allows them to “feel special in their down time” (Conlon, S, 2016) Strengths A very clear target customer and strong retail networks within the digital and the physical aspects. It also has a wider product range, not only focusing on sleepwear and loungewear. Weaknesses Their content on social media is quite repetitive, very product-oriented, with an addition of where they get their inspiration from, which lacks drive in the promotional content. Nothing to keep the followers engaged further. Possible Reaction: Three Graces might consider changing in their social media content, along with their promotional tactics to further compete with Maison Verdure.

3.3.2 Potential Competitors Due to the emerging trend of loungewear as told in the previous section (See “Business Concepts”), there is a rise in the trend of luxury loungewear within high-end, luxury fashion brands which primarily offers ready-to-wear, such as Céline and Chloé, Brunello Cuccinelli, Vetements, Allude and The Elder Statesman, offering tracksuits, cashmere, sweatshirts, drawstring pants, and others (Pike. H, 2016). Should the trend sustain itself longer, the presence of the loungewear will produce a tougher competition for Maison Verdure. The brands mentioned might produce ready-to-wear collections in which resembles of loungewear and is usable as one, although not marketed as loungewear in particular. Each brand mentioned is also quite established, having trusted brand names within the target market. There might also be a potential indirect competition from other brands such as Juicy Couture and Derek Rose, which are more commercial and positioned distinctively than Maison Verdure. Juicy Couture primarily offers ready-to-wear, while Derek Rose, is specifically offering loungewear for male, female, and children. The wide presence of high-street brands that offers loungewear products such as ASOS, Topshop, Urban Outfitters is also massive, which might further toughens the competition. 3.3.3 Conclusions Once Maison Verdure will be launched, it will operate on the selected department stores , multi-brand retailers and followed by e-commerce platform as well as a flagship store with proven a financial success within first to two years of launching. It will also implement an extensive promotion strategy through a series of advertising, personal selling, affiliate marketing, direct marketing, areas in which the direct competitors, Olivia von Halle, F.R.S and Three Graces are lacking in. Maison Verdure projects itself to have a higher digital engagement, with a highly interactive website platform, which provides educative, informational content for its sustainable and eco-friendly stance. It will also develop a mobile app, with similar function of online shopping, as well as additional customization and personalization option as a part of the marketing campaign for each collection’s theme, as well as community building service. Other than social media and the web content itself, the app will be an added value to customers. The key to attacking the competitors itself is through the promotional strategy itself along with the added value service.

3.4 Market Analysis In order to analyze the market further, primary research was conducted to establish customer insights and market demand. This was done by a combination of quantitative and qualitative market analysis through an online survey and structured interviews with the target market. This section will also inform the segmentation, targeting and positioning strategy that Maison Verdure will apply. 3.4.1 Quantitative Market Demand Analysis (Consumer Behavior) An online survey was constructed and sent out to a minimum of 80 people targeting female respondents, of an array of nationalities, however all residing in the UK. This was done to get a quantitative view of the market, which underlines the patterns with age, income, shopping habits preferences, awareness on sustainable fashion and the loungewear trend. The respondents in the online survey are not necessarily the potential customers of the brand, this was done in a generalized manner to observe and prospect the market, and test it. The results to the online survey questions can be seen in Appendix 1. Below, the answers are collated and analyzed into three different topics: demographics, concept and consumer behavior. Demographics (Q1,2,3,4,6) Despite the survey and business concept being aimed towards female clienteles, there were a considerable amount of male respondents with 20.2%, who answered the survey, with a roughly polarized opinion on the concept. This also further raises the possibility of extension for menswear. Most respondents are aged 18-25 with 70.7% of the respondents answering the survey, this is possibly due to the survey distribution across mainstream social media sites (eg. Facebook). The second largest age group of the respondents are 26-35 with 28 people (28.3%) answering belong to this age group. Being an open-ended question in regards to their city or country of residence, most of the respondents answered they reside in London or UK, with other variations to the answers. Respondents who live outside London or the UK can be found, with cities such as Chicago, Shanghai, Jakarta, Paris, Seoul being stated. This highlights the possibility of expanded market prospecting in the future beyond the UK and European markets, in particular the penetration of emerging markets in Asia, South America and Africa. In the survey, a mix of students, full-time, part-time workers appeared to be more interested in the concept (with female as the majority). The business model seems to appeal towards females who are studious and career-driven. This hints the possibility that the “versatile, daywear-nightwear aspect to be more fitting and suitable towards someone on the go, or likely to have a hectic schedule. “Our lives are so busy now, and we’re travelling so much, it’s good to have these really go-to pieces that make you feel great no matter where you are and what you’re doing.” (BOF, 2016)

Majority of the respondents, with 32.3% respondents prefer not to disclose their monthly salary, with a combination of those who are students and full-time workers. However the second highest results, 28.3% of the respondents’ monthly salary is around 1000-2000, indicating that the respondents of that figure are still on a student income or budget and entry-level position full time, or part-time jobs, with a particular disposable income Concept (Q8, 9 , 10 , 11 , 12, 15) 25.3% of the respondents are quite familiar with the term and philosophy of “sustainable fashion”, while 45.5% of the respondents are said to be moderately familiar with it. This shows that the concept is becoming more normalized within the public, and it is no longer considered a new concept. It also shows it is in fact a notion which consumers would consider, and a growing potential market. 71.7% of the respondents displayed a neutral response when asked whether they agree to the statement that “sustainable fashion performs better in quality than general fashion”, which solely translates that within the fashion industry itself, there is not much proof that the quality of sustainable fashion fares better than general fashion, in fact, it is very likely that respondents alike does not see the a significant difference between the quality performance between sustainable fashion and the general fashion, or they are most likely to rarely or never use “sustainable” fashion products. This also creates further assumptions that the respondents are not really exposed to sustainable fashion brands. However with the rest of the respondents, in which 17.2% of responded that they “agree”, this proves that a small minority might have experienced a better quality product in sustainable fashion and is a consumer of sustainable fashion. 46.5% of the respondents also displayed a neutral response when asked whether they agree that “sustainable fashion is more stylish and trendy than the general fashion”. Other amount of respondents, which accounts for 40.4% does not agree with this statement. Which means, the concept is also not widely known to be fashion-forward and trend-driven. The idea of “sustainable fashion” relates to the fact that social awareness and eco-friendliness is not well associated with the mainstream fashion that the public are aware of. This is also supported by the fact that there are few established fashion brands that incorporates sustainable and eco-friendliness aspects in their production as well as a marketing within both high-street and luxury. “Mainstream fashion is dogged by a paucity of ideas and a failure to commit to deep sustainability and activate real change.” “Only a very small handful of fashion companies are truly trying to be more environmentally sustainable.” (Siegle, L, 2016) More than half of the respondents, 55.6 %, agreed that luxury fashion products made out of high-quality leftover materials are still worthy to purchase, indicating a potential interest in sustainable luxury. While the other 31.3% responded “maybe”, which also indicates a potential curiosity in regards to sustainable luxury fashion

66.7% of the respondents are aware that loungewear can be worn outdoors, and luxury fashion brands are elevating it into staple status, which proves that this trend is getting popularized. 51.5% of the respondents, which accounts half of the overall respondents (a mix coming from full-time students), responded that maybe they are interested in purchasing from a sustainable luxury loungewear brand. The second largest respond, 31.3% answered yes, they are interested, which indicates that there is a proven demand. Consumer Behaviour (Q5, 7, 13, 14) It was discovered that 92.9% of the respondents used “Instagram” on a daily basis. Facebook also comes the second highest with 88.9% of them, proving the importance of social media in this day and age to communicate with the customers and deliver its value. Most respondents also prefer to shop at department stores (78.8%), answers that were coming from a balanced mix of demographic groups. This is critical to the positioning of the brand and the overall distribution strategy to be adopted in the future. When shopping for loungewear, sweatshirt at 76.8% becomes the most the shopped product, along with pyjamas at 56.6%. This results could help the range planning for the collection, which highlights which product will fit the both the brand and the potential customer. When asked what are the qualities that are difficult to find when they shop for loungewear products, “fashion forward” and “accommodating to daily activities” are the top answers, further indicating the gap in the market, which the brand could utilize further. 3.4.2 Qualitative Market Demand Analysis To get a more qualitative insight into the consumer’s mind, in-depth interviews were conducted with 3 candidates. Questions and answers can be seen in Appendix 2. Results were analyzed into the following topics: Concept Candidates happen to be interested with the “loungewear” trend that premium luxury fashion designers, like Celine and Chloe incorporates in their latest seasons. They also stated that they are likely to be interested in a sustainable luxury loungewear brand. “I would be so interested to see that! I am open to that concept.” – (Target Customer 3) The three of the candidates also stated that “fashion brands who recycle their materials are still worthy to invest in” – meaning that the consumers’ perception on the idea of sustainable fashion is changing. An interest of customization or personalization with the sustainable luxury loungewear brand is also expressed.

Consumer Behavior Candidates would be willing to spend a range of £200 - £1000 of a product from the brand. A mix of core pieces (tops, camisoles), high fashion (tracksuit, jumpsuit) and cutting edge (robes, slip dresses) are likely to be purchased meaning it is crucial the range plan of the brand to have a healthy fashionability split. All candidates also shop for loungewear on an average of three to ten times a year. The most purchased item of the candidates when shopping for loungewear is the camisole (core). Some of the candidates also include slip dresses, tracksuits and sweatshirt. However, with the three candidates having included “camisoles”, proves the range plan should have plenty of camisole options. Expectations & Suggestions When asked what is lacking in loungewear brands, candidates have different opinions regarding this, “multifunction”, “variety of designs”, and “simplicity” – indicating that is worthy for the range plan to be fashion-forward due to the said demand. When asked what kind of experiences the candidates want when they shop for a sustainable luxury loungewear brand, answers like “well-being, eye-opening, enhancing, educational” were highlights, which slowly indicates that the brand should exploit its sustainable values into the brand storytelling aspect, and throughout the point of sales itself. 3.4.3 Observations In overall, the candidates from the survey and the interviews expressed an interest with the business concept. Shopping in high-scale department stores (78.8%) is evident as a frequent activity amongst the candidates in the survey. Consumers seek for experiences that the brand could capture through the physical to the digital aspects of the shopping and retail experiences. This can also further be expressed through the social media platforms, the online content, and a well-balanced fashionability range split, a fresh design direction, that is expected to enhance sales and encourage repeat custom.

3.5 Strategic analysis of the Internal Environment 3.5.1 Resources-based Approach Evaluation

3.5.2 Value Chain Approach Evaluation

3.5.3 Support Activities

3.6 Evaluation of the Strategic Fit 3.6.1 PESTLE Evaluation

3.6.2 Porterâ&#x20AC;&#x2122;s five forces Evaluation

3.6.3 SWOT / TOWS Matrix

Achieve a market share of 1-5% of within the first year of launch

- Achieve overall sales of 5% - 10 % within the first year.

Generate brand awareness as a new business

- Embark on affiliate partner marketing strategy, by collaborating with a London-based fashion influencer. - Plan an intensive integrated marketing communications strategy involving print and digital advertising along with other relevant and effective techniques.

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maison verdure

4.0 MARKETING PLAN 4.1 Marketing Objectives (SMART) To establish Maison Verdure into the UK luxury loungewear market into department stores, multi-brand retailer and e-commerce launch, marketing objectives will be planned, to proceed to the right direction to meet Maison Verdure’s goals within the first year of launch. Achieve a market share of 1-5% of within the first year of launch

- Achieve overall sales of 5% - 10 % within the first year.

Generate brand awareness as a new business

Build a customer base as a new business

- Achieve genuine Instagram followers and Facebook likes with a target of 10k followers within the first year of launch. - Develop a strategy to convert redeemers to repeat customers.

Figure 4.1 – Objectives & Action table Source – own work

4.2 Segmentation 4.2.1 Segmentation in the market Demographic segmentation will be adopted for Maison Verdure’s market segmentation strategy in order to create value for and reach the targeted customers effectively. The segmentation will be divided into variables such as age, income, occupational status and education level, however in this context, it will primarily focus on the age group, lifestyle and experiences of the respective customer segments. It will divide the segments into three distinguished variables of customers with different age groups, life stages, location, lifestyles, values and priorities.

Segment 1

Segment 2

Segment 3

Young Affluent Professionals

Mature Affluent Professionals

Conservative, Affluent Professionals

Geographic Location

Central London

West London

Middlesex

Demographic Age

20 – 35

36 – 45

45 – 60

Income

£ 20 – 40k per annum

£ 40 – 50 k per annum

£ 50 – 70 k per annum

Occupation

Employed or self employed

Employed, self employed or homemaker

Self-employed, employed, retired

Bachelor degree educated

Education

Psychographic Social class

Middle to upper class Middle to upper class

Lifestyle

Strong work and life balance. Schedules can be hectic.

Middle to upper class

Unbalanced between More relaxed work and life.

Personality

Creative, energized

Composed, calm

Down-to-earth

Loyalty

Loyal. An ambassador for luxury brands

Shifting loyal to less loyal

Less loyal to promiscuous explorers.

Behaviographics Shopping frequen- Shops in luxury cy boutiques and high end department stores as well as e-commerce platforms (Selfridges, Net-a-Porter, Browns, Matches, etc.)

Shops in luxury boutiques and high end department stores. Will spend a lot for their image. Quite mobile

Buys several luxury item a year, most likely to shop mid-priced brands. Also receives luxury items as gifts. Occasionally shops in Selfridges and Harrods. Purchases are well-planned in advance.

Benefits wanted

Quality, self-image enhancement, heritage, craftsmanship

Image-enhancement, brand image imposition

Experience for the self-image enhancement. Likes to combine luxury and high-street

Values

Status, quality, sustainability

Image, sustainability

Price, sustainability, design

Webographics Intensity

Active social me- Moderate to High. dia users. Reads Uses internet on problogs, magazines, fessional level. and other platforms

Low to Moderate. Rarely uses social media, but might use for professional purposes and check for news, statuses when there is additional free time.

Platforms

Facebook, Instagram, Linkedin, Twitter, Snapchat

Facebook, Instagram

Facebook, Instagram, Twitter, Pinterest

4.2.3 Segment Profiling Segment 1 â&#x20AC;&#x201C; The Young Affluent Professional This segment is the primary target of Maison Verdure, and is the segment that is expected to be the drivers of the sales and revenue of the brand. The segment represents a woman, from ages 20-35 who is employed in a full-time job, resides in the crowded and commercial area of London, frequently shops for luxury goods, has high awareness on fashion, is a brand ambassador, and seeks on quality goods that emphasizes on design and craftsmanship. The customer is active on social media and is quite digitally advanced and uses it for personal and professional purposes. Segment 2 - The Mature Affluent Professional This segment represents a woman, from ages 36 to 45, employed in a full-time or part-time job, lives in the less commercial area of London, single or in a relationship or might also have a family with children. She has a high awareness of brands and shops at luxury department stores and seeks goods that are image-enhancing (conspicuous consumption). Overall, when shopping, she strongly values the image of the brand. She is also less loyal to a particular brand, and it might take longer for her to be loyal to a particular brand. She is active on social media platforms, however primarily uses it for professional purposes. Segment 3 - The Conservative Affluent Professional This segment represents a woman, from ages 46 to 60, employed in full-time or part-time job or retired, lives in the outskirts of London, most likely single or might also have a family with children. She shops a few times in a year and usually shops at department stores, and is very price-conscious and very design-oriented. She is less likely to be loyal to a brand and likes to explore various brands, likes to combine luxury with high-street. She rarely uses social media on a daily basis, and more likely to use it for news-reading and professional purposes.

4.3 Targeting 4.3.1 The Core Target As previously profiled in the previous section, the core target customer is the â&#x20AC;&#x153;Young Affluent Professionalâ&#x20AC;?, a woman, aging 20 to 35 years old, who lives in a large and populated city, minimum bachelor-degree educated, middle-to-upper class, has a white collar job with a high disposable income, is socially-conscious, healthconscious, is very stylish and fashion-forward as an individual, very driven and is an experience seeker and an adventurer. She seeks for quality goods and items that emphasizes on craftsmanship. She is a frequent shopper of luxury brands, and is a brand ambassador for brands that she is loyal to. Also quite engaging on social media platforms and has quite a busy, but balanced lifestyle.

Pen Portrait Age

Job

Advertising – Strategic Planner at Saatchi & Saatchi

Income

£ 35000 per annum

Family

Single with no children

Location

Notting Hill, London

Education BSc (Hons) Media Communications, U.A.L – 2:1 MSc Management, London Business School – Distinction

Interests

Goals

Challenges

Gym, Yoga, Music, Photography, Shopping (designer brands and high street brands), Travel (beaches and city breaks), Spa, Restaurants (Hakkasan, Zuma) Would like to earn higher and be promoted. Like to start a family in a few years time, however enjoys being young and successful at the moment. Very little free time due to hectic schedules.

4.3.2 Targeting Strategies Concentrated targeting strategy will be adopted in this context for Maison Verdure, in which all marketing elements will be focused on one specific market segment of the target market. All the efforts and budgets will revolve on that particular segment “The Young Affluent Professional” in order to save costs and financial resources and emphasizes on its exclusivity. This segment is more likely to be attracted to the products than the other segments, which are less likely to be interested. Since loungewear brands primarily cater to the niche market, it is advisable to go after customers who are most profitable and the brand can serve best, to further maximize the profit. There is also an online bespoke service which allows customize or personalize products which may correspond to every segments’ particular needs. 4.4 Positioning The strategic task of positioning is to compare where the brand stands as compared to its competitors. To establish itself in the already-saturated market, the points of difference will have to be defined to identify its own uniqueness. Through the points of difference, the unique selling point will be determined further. The defining factor of Maison Verdure’s positioning is its sustainable product offerings, fashion-forward tendencies, additional digital services, bespoke options, and the imposition on the value craftsmanship rather than serving conspicuous consumption. As previously mentioned in the competitive analysis, there will be an indirect potential competition coming from ready-to-wear premium luxury brands such as, Céline and Chloé, Brunello Cuccinelli, Vetements, Allude and The Elder Statesman should they create another collection with loungewear-influenced design direction and also other highstreet brands that offer loungewear products, so the positioning strategy is prone to change. Source - own work Fashion forward

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Low price

Traditional

4.4.2 Positioning strategy Through the positioning map and selling points analysis, the gap for sustainable luxury loungewear is determined. Maison Verdure has the chance to stand out due to the gap itself, with an additional digital service (app) with customizable features which puts stronger emphasis on exclusivity, making its higher prices justified through customer perception. With its method of exclusive distribution, exceptional customer service, a unique brand identity, the higher price charged will not be a point of concern for the customers.

POP

POD

Unique Selling Point (USP)

Product offering: premium luxury loungewear that can be worn outdoors. (similar to all the competitors mentioned)

Sustainable product offering

The only premium luxury loungewear brand that enforces and implement eco-friendliness and sustainability.

Similar distribution channels (department stores, e-commerce, wholesale, flagship store*) On social media platforms Personalization & customization options available. (Olivia von Halle)

Fashion-forward and very trend-influenced. Premium luxury loungewear brand that emphasized eco-friendliness or sustainability. An additional mobile phone app available for digital services.

The only luxury loungewear brand with fashion-forward design direction. Offers additional digital service that allows customization and personalization.

Competitors are already established as a brand.

4.5 Brand Identity A strong, cohesive, consistent brand identity is highly important to establish Maison Verdure in the market and to enable customers to distinguish the brand from its competitors. Using the brand identity prism enables Maison Verdure to portray its identity through the coherence of tangible and intangible characteristics. The below diagram shows the prism with six of its facets all linked together to define the attributes that the brand possesses, the relationships between the customer and the brand, how customers see themselves, and how the general public sees the customer of the brand. Maison Verdure aims to give customers a “self-imposition” or “self-concept”, that they represent externally and represents their intimate relationship with the brand: “I shop at Maison Verdure, therefore I portray trendiness, elegance, creativity within sustainable luxury”

Sender

PHYSIQUE PERSONALITY Imaginative Daring Exciting Spirited

Experimental design Loungewear “MV” Logo Pastel colors

RELATIONSHIP Trust Excitement Responsible Exceptional

CULTURE

Open-minded Environmentally-concious Wellbeing Artistic Sustainable British

REFLECTION SELF-IMAGE Socially-conscious Distinctive Fashion-forward Stylish

Confident Lively Creative Expressive

Receiver Figure 4.5 - Kapferer Brand Identity prism Source – own work

4.5.1 Brand name

Maison Verdure roughly translates to “House of Greenery” in French language. Giving the brand a French-language name associates the brand with a luxury perception and gives an edgy and elegant feel when associating the brand with its product attributes, personality and its eco-friendliness aspects which solely translates to green and sustainable production within a fashion house, making it more memorable when customers recall the brand name.

4.5.2 Logo

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maison verdure

Figure 4.5.2 – Variations of logo Source – own work

4.5.3 Color palette

Developed using Pantone, the color black and white will serve the primary branding elements of Maison Verdure to give a classic feel to the brand. It will be the most associated aspect of the brand, supported by the shape of the logo.

4.5.4 Brand Layout

Moodboard

The moodboard visualizes what the brand stands for - its sustainable, eco-friendly values, the main inspiration for the brand its product sketches. 4.5.5 Labelling and packaging

Source - own work

The logo will appear on the labels of the clothing pieces as well as the shopping bags, boxes and dust bag. There will be two packaging options for customers to pick, the signature option and the basic option which reusable and recyclable. All packaging will be eco-friendly. 4.6 Marketing Mix The marketing mix embodies tactical marketing tools that the firm blends to produce the response it wants in the target market (Kotler, 2014). With Maison Verdure offering both the products and services, an extended service marketing mix (7ps) will be applied in this context.

4.6.1 Product Products are key element in the overall market offering (Kotler, 2014). The marketing mix starts at product through building an offering that brings value to the target customers. The product is divided into three levels that displays its features and benefits which helps define the product offering of Maison Verdure and where it fits in the market. An additional potential benefit will also included in this context to highlight line extension possibilities.

Core benefit

Actual product benefit

Provides loungewear clothing (camisoles, tops, pyjamas, robes, etc) that will bridge daywear and nightwear. Offers versatile, sustainable luxury loungewear pieces that is guaranteed of an exceptional quality. Offers a new collection every season (S/S and A/W) and also a customization and personalization option online and on the mobile phone app. Convenient navigation of desktop and mobile app. Transparent production to emphasize its sustainable and ethical values.

Augmented product benefit

After-sales service and support will be available through telephone and live chat to ensure customer satisfaction. The customer service team will be available to customers in order to assist them regarding purchases, styling tips and other enquiries. Direct marketing, special promotions will be available to loyal customers. The website and app will be highly visual and easy to use. Convenient delivery and return options.

Potential product benefits

If the first collection is highly successful, and generates more-than-expected revenue and market shares, then Maison Verdure will potentially introduce a line extension of capsule collection of collaboration with personalities or celebrities. Might also launch menswear loungewear pieces should there be further demand.

4.6.2 Range Plan

4.6.3 Sourcing Strategy

Activity

Strategies

1. Research

In-house design team will research the seasonal color trends, material and textile trends for the garments with the help of trend forecasting agencies (WGSN). Comparative shopping - visit stores, attend trade shows and textile exhibitions to do comparative shopping, gathering insights from competitors.

2. Concept

Develop a seasonal theme in-line with the brand DNA and the needs of customers. Prepare moodboards and samples.

3. Product development

Finalization of range planning Liaise with suppliers for sourcing of fabrics.

4. Sourcing

Sourcing for fabrics within various suppliers. Each supplier will ensure excellent and ethical standards of sourcing, to comply with the brandâ&#x20AC;&#x2122;s values.

5. Manufacturing

The sourced fabrics are produced and transformed into final products for sale

6. Shipping

The logistics of the company will be outsourced

7. Warehousing

Finished goods will be shipped to the distribution center in the outskirts of London. Each goods will be checked for quality controlling, compiled with paperwork and certification.

8. Marketing and Press

The marketing department will prepare the imagery and media content, social media engagement, press releases, new product descriptions. Digital developers will work on the mobile app and upload new content on the website

9. Distribution

Once the orders are placed, the stock will be arranged into orders, packed and shipped by in-house employees within the distribution site to the clients.

10. Retail

The primary point of sale will be the department stores, multi-brand stores and e-commerce. Online store and mobile app will be the additional point of sales, in support of the physical stores.

11. Carrier bag

Consumption by customers. Returns are available for seasonal products only, for both offline and online sales, in less than 30 days of purchase Customer support will be available to assist customers in regards to enquiries to increase customer satisfaction and return rates.

12. Review

Fig 4.6.3 â&#x20AC;&#x201C; Sourcing strategy table Source - own work

Review of sales is done by the in-house team

4.6.4 Price 4.6.4.1 Price Objectives The main price objectives for Maison Verdure are â&#x20AC;&#x201C; survival and profit maximization. It aims to create entry barriers within its competitive scale and maximize its profit margin with its implementation of premium pricing through investing on the marketing budget that will create differentiation. Being one of the few brands that implement sustainable and ethical aspects and innovates on its manufacturing, it is not easily replicable by its competitors, thus charging higher prices will be justified. This also helps empower the luxury image, attracting aspirational customers and followers. 4.6.4.2 Demand Maison Verdure can create demand through emphasizing its exclusivity as a premium luxury brand. Being positioned as a premium luxury loungewear brand along with the likes of Olivia von Halle, F.R.S and Three Graces London, the existing quality and value perception is determined and there will be an increased visibility. Thus, emphasizing on its scarcity can create a brand lift, generating more demand. The storytelling of the brand should also be leveraged. The fact that it incorporates sustainable aspects within its sourcing and production, might entice the customers and attracts them to find out more about the history and craftsmanship of the brand. By being transparent about its supply chain management, makes the brand generate an emotional connection with its customers. Knowing that they contribute to the betterment of the environment by purchasing and consuming products from Maison Verdure, generates a positive association, thus creating more demand. 4.6.4.3 Price band Matrix

4.6.4.4 Cost Estimation & Breakeven Please refer to the Financial Plan (Chapter 9.0) where this is discussed and analyzed. 4.6.4.5 Competitors price mix analysis

The table shows that each of the competitors had a variety of different price points within different categories, which means that the price ranges are planned on a wider scale. However, each of the competitors’ pricing points are evidently and accurately aligned to the positioning and brand strategy, which balances the entire pricing strategy within the competitive scale. Maison Verdure will have to adopt similar price points for its product’s average selling price, ranging from around £100 - £1200.

4.6.4.6 Pricing strategies As mentioned in 4.7.1, Maison Verdure will use the premium pricing in its pricing strategy, in which charge relatively a higher price based on its product differentiation through the exploitation of its USP (its tendency to be fashion-forward, sustainable practices, unique offering) and emphasis on its exclusivity throughout its promotional tactics and “exclusive” distribution channels. By using this strategy, sales volume for the brand are expected to be steady, predictable and profitable. 4.6.4.7 Final price

Figure 4.7.7 - Final pricing of collection Source – own work

The price in the above figure was calculated based on the competitor’s price mix analysis, with price adjustment strategy, through the average selling prices for each fashionability split – The Core, High Fashion, and Cutting Edge.

4.6.5 Place In order for Maison Verdure to reach its targeted customers, it is important to be selective in choosing concession and wholesale partners in order for the product to reach the appropriate marketing intermediary. The key element of placement is distribution. Being a premium luxury brand, it is also important to assess the channels that are considered matches the brandâ&#x20AC;&#x2122;s positioning strategy. 4.6.5.1 Distribution Channels Maison Verdure will implement an omni-channel strategy within its distribution strategies, linking both the traditional and digital channels together, which provides a seamless shopping experience for the customers. This was done to provide convenience for customers in the current age of digital technology where everything is operating fast-pace. Click-and-collect option is available within the website to stores. An exclusive distribution strategy will be strategically adopted by Maison Verdure. Maison Verdure will distribute its products in high-scale, high-end department stores as well as wholesale accounts. It will also operate an e-commerce platform and a mobile app. Concessions

It will operate as a concession on department stores such as Selfridges, Harrods. It will be located in the â&#x20AC;&#x153;Body Studioâ&#x20AC;? in Selfridges. There will also be a small, dedicated space to the brand in Harrods. These channels will portray the brand identity the most accurate.

Wholesale

It will sell to wholesale accounts such as Browns Fashion, Matches Fashion, Net-a-Porter. Each wholesaler should comply with the brand in regards how it is portrayed within the retailer and the stocks that are sold should be monitored weekly.

E-commerce

Maison Verdure will operate an e-commerce platform on its official website, which allows customers to shop online for the collection. Additionally, in the e-commerce platform, there is a bespoke service which allows customers to customize and personalize the products.

Flagship store (pending)

Maison Verdure plans to build a flagship store in London in the near future. It is projected and planned that the flagship store is located in the Mayfair area, where luxury flagship stores are stationed at.

Figure 4.8.1.1 – Selfridges Body Studio Space

Figure 4.8.1.2 – Browns Fashion

4.6.5.2 Location Location of the outlets will be centered around Central London, where most luxury retailers are stationed at, and where there is a high traffic on tourism shopping. â&#x20AC;&#x153;According to tax-free shopping firm Global Blue, tourist spending on luxury goods in Britain in August rose by 36 percentâ&#x20AC;? (Reuters, 2016) Strategically, the Oxford Street area is where high street retailers are positioned at, making Selfridges, Browns and Matches a few minutes walk away from each other. This fact further shopping convenience for the customers, and gives Maison Verdure a higher exposure to tourists and other potential customers within that particular area.

4.6.5.3 Selling Methods Selling methods that will be adopted are “sales force” – sales associates that will further assist the customers during the process of discovering the products that are display in the retail space, and their actions of trying the product. By employing the sales staff, personal selling will be implemented to inform and encourage customers to purchase the products that are displayed. Strategized through their attitude, appearance, and specialist product knowledge, these aspects along with their efforts are expected to entice customers to get interested with the brand. With Maison Verdure offering luxury fashion products that are versatile, complex, design oriented and eco-friendly, this method will be effective to inform, persuade the customers and also build further relationships. 4.6.5.4 Visual Merchandising Every week, the sales staff will rearrange what the mannequin displays as to follow the sales record of the week before. The display of clothing will also be strategically rearranged. The selection of color options might be swapped weekbyweek. The sales records then will be reassessed and analyzed again for the following strategy that will be implemented. Stock room

Television

Stock room

Fitting Room

Cashier

Clothing rails

FOCAL POINT

Mannequins

Figure 4.6.5.4 – In-store layout plan for concession Source – own work.

4.6.6 Promotion 4.6.6.1 Promotional calendar Below figure is a calendar that will last for 12 months (1 year). Maison Verdure will officially launch on September 2018. In order to create awareness and buzz around the brand, the branding and other various promotional efforts will commence prior in March 2018, coincidentally during the period when the fashion show for the upcoming AW 18/19 collection was showcased for the first time. MAR AW 18/19 Fashion Show

APR MAY

JUN

JUL

AUG

DEC

JAN

FEB

✗

✗ ✗

Advertising Campaigns Press Releases

✗

Sponsorships

✗

Affiliate Marketing

Direct Marketing

NOV

✗

Website Launch Department store and multi-brand release

Digital Marketing

SEP OCT

✗

4.6.6.2 Launch Campaign The main launch party will be held in The Dover Members Club in London. Maison Verdure’s affiliate partner, Anglo-French fashion blogger Camille Charrière will attend the party. Additionally models, other bloggers, socialites and people within the industry will be also invited. There is also a mini- fashion show in which models will walk around with the merchandise whilst cocktails, caviar, and canapés are served by the guests. This will take place in the night before the “official” launch date and countdown up to midnight will take place to the live opening of the website of Maison Verdure and store concept is unveiled.

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maison verdure Figure 4.9.2 - Invitations to the Launch Party Source â&#x20AC;&#x201C; own work

OFFICIAL LAUNCH PARTY DATE: 6 September 2018 VENUE: THE DOVER MEMBERS CLUB 45 DOVER STREET, W1 S, LONDON, UK TIME: 8 pM - TILL late

4.6.6.3

Ongoing campaign

A day after the launch party and beyond that time period, a series of promotional tactics will be implemented through paid media, owned media and earned media. Integrated marketing communication will be implemented in the usage of paid, owned and earned media. It seeks to communicate to the customers and public alike, delivering the same message before and after the launch of the brand and the release of the collection. The promotional period will commence on March 2018 when the brand showcases the AW 18/19 Collection during London Fashion Week. After LFW, Maison Verdure will be highly active on social media platforms, creating teasers and ad campaigns to entice the potential customers and public alike. After the brand launches and the collection are released into stores, another set of campaign will continue to further drive awareness to the points of sales. 4.6.6.3.1 Paid Media Print advertising

PPC Advertising

Ads will appear on fashion magazines like Vogue, Harpers’ Bazaar, Vanity Fair, W Magazine, ELLE, Grazia and L’Officiel. It will depict the ad campaign photoshoot visible with the logo. PPC ads will be available after the website officially launches. It introduces itself as the new sustainable luxury loungewear brand and will headline on the new collection and entices customers by putting the speed of delivery and bespoke service available.

Display advertising (online)

Will be available on websites like Refinery29, High Snobiety, Conde Nast, Conde Nast Traveller, Man Repeller, which are all appropriate to the target market. Ads will start showing after the collection are available in store and online.

Social media advertising

Ads will be available on social media platforms like Facebook, Twitter and Instagram as “sponsored” posts, after the collection, brand and website is launched.

4.6.6.3.2 Owned Media Âˇ Press releases Direct marketing

Press release will be released before the fashion show and before the brand launch 2018 throughout all media outlets to inform the public alike. (See Appendix ) Customers will be asked to write down their personal and contact details during purchase of products, in order for their data will be kept within the customer database. However this is optional. Exclusive e-mails and text messages will be sent to loyal customers informing on the availability of the collection within stores and other promotional information (events, new arrivals). There is also an optional newsletter, which is more blog and styling oriented.

Personal selling Staff within all retail spaces will be highly trained to inform and explain customers regarding the collection, bespoke services, and styling advices and encourage them of product trials and increase purchase intent. In-store visual Store layouts will be strategically planned and rearranged before the colmerchandising lection released and on-going week by week. Point of purchase displays, atmospherics, music, mannequin position will change throughout the weeks after the collection and brand is launched. The store will also have television which plays campaign videos and educational videos regarding the production and craftsmanship of the brand. Company website

Maison Verdure will operate its own website (www.maisonverdure.com) starting September 2018. This website will operate on a daily basis. The new collection will serve as the main section in the landing site, to stand out to the customers.

Company-owned social media platforms.

Will be on Facebook, Instagram, Twitter, YouTube, Snapchat and additionally, LinkedIn. However, only Facebook, Instagram and Twitter will be the most optimized during the fashion show and eventual brand and collection release. Countdown to the collection release will commence on August along with a promotional hashtag, encouraging customers and potential customers to be involved.

4.6.6.3.3 Earned Media Word of Mouth

If a customer has an enjoyable shopping experience and likes the product that was bought, the campaign will be generated through the testimonial of the product offline and online. With the usage of the hashtag that allows the customer to be involved with the campaign, this will generate further buzz.

Traditional publicity mentions

As Maison Verdure chose Camille CharriĂ¨re as the affiliate partner and brand ambassador, once she uses the product as given, she will mention the brand publicly throughout her blog â&#x20AC;&#x153;Camille Over The Rainbowâ&#x20AC;?, and her Instagram account, which has 544.1k followers. This method will influence her readers and followers to check out on Maison Verdure and also calls for other bloggers to also to be introduced to the brand.

4.6.6.3.4 Promotional Conclusions These efforts aim to increase and establish brand awareness as set out in the marketing objectives. Hints of its sustainable and ethical culture is added the promotional tactics to ensure creativity and deliver a unique value proposition. The campaign will involve the hashtag #verdureworld and promotes customers to connect with social media as a form of direct approach. Using other promotional methods such as sponsorships, affiliate marketing are forms of attention-grabbing approaches. Maison Verdure seeks to create memorable experiences within the customers mind, which enhances brand equity and strategic awareness (Aaker, 2010)

4.6.7 People “The people employed in your organisation will determine the quality of service your customers receive.” (CIM, 2009) Pre-sales and after-sales service support will be determined by the performance of the employees internally. Customer service will be delivered to the highest standard in Maison Verdure, therefore it is vital to do training for its head office employees and retail staff before the brand officially launches. Employees will be trained biannually to ensure higher standards are maintained. They will be skilled and knowledgeable to deliver the best products and services and to provide the best advices. The brand’s core values and philosophy, as well as its sustainable and ethical culture will be heavily communicated and embodied in the training programs. Brand identity will be reflected and reinforced throughout all points of sales. The experience within the digital and technological aspects will mirror the offline and physical experience of the brand, and that is why it is crucial to keep the training program consistent. It is also important to view the business as a retail and service experience, not just a product-based experience. Being a start-up company means that it is crucial to everyone as a team, support one another, which positively contributes to Maison Verdure. 4.6.8 Physical Evidence This include the customers’ shopping experience offline or online. Visuals are strongly reinforced within the products offered itself and its retail space. The retail atmosphere itself will communicate the values of the brand and will have a slow-paced, clean layout. Image of the product online should portray the actual product accurately. The quality of the product that the consumer receives will be reassessed repeatedly. Stocks in the warehouse will be rechecked and examined further before sending them to the retailers and

4.6.8 Physical Evidence This include the customers’ shopping experience offline or online. Visuals are strongly reinforced within the products offered itself and its retail space. The retail atmosphere itself will communicate the values of the brand and will have a slow-paced, clean layout. Image of the product online should portray the actual product accurately. The quality of the product that the consumer receives will be reassessed repeatedly. Stocks in the warehouse will be rechecked and examined further before sending them to the retailers and customers (e-commerce). The packaging showed in “Product” previously will be maintained to high standards. The merchandise will be packed neatly and presented in gift boxes (with an option of having a basic box) complete with ribbon, tissue papers branded with the logo. Dust bags with the logo embossed will also be included in order for the customers to store and care for the product with ease. Swing tags of the logo will also be attached, which reminds customers about the product number, product name, size, care instructions and origins of production and purchase. 4.6.9 Process “The processes involved in delivering your products and services to the customer have an impact on the way in which your customers perceive you” (CIM, 2009) The process of shopping in Maison Verdure offline and online is expected to be simple and hassle-free, and customers will be looked after thoroughly. In store, products will be arranged neatly and strategically placed to attract the customers. There will be a fitting room available for customers to try on the garments. On the website, products will have a zoom option at multiple angles to get a view on the texture of the fabrics and color of the garment itself. Customer can also filter down to multiple points that will narrow directly to the product they are searching for. This is to ensure the information flow is smooth and each process where the customer and company interact adds value to the customers, which makes it distinguishable from it competitors. Maison Verdure accepts VISA Credit, VISA Debit, VISA Electron, Mastercard, American Express, Maestro and Solo as payment methods within the store and online. Various delivery methods will be available. Returns can be made in less than 30 days, free of charge. This ensures that the shopping process would be a smooth and convenient experience for customers.

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maison verdure

5.0 OPERATION PLANS 5.1 Daily Activities

Time

Activities

8.30 â&#x20AC;&#x201C; 9.00

Employees arrive and clock in. Emails will be checked and replied to. Order list from concessions, wholesalers, e-commerce will be printed off.

9.00 â&#x20AC;&#x201C; 12.00

Phone lines will be opened. Admin will stay by the phone line answering incoming calls regarding orders, returns and replies to emails. CEO, designer, marketing & PR, buyer, merchandiser, sales, will gather for a small meeting to discuss the sales, KPI measurements and the future range plan. Accountant will start the sales review and commence with bookkeeping. IT will reassess the systems in the office and the stores. Operations will start assessing with the distribution channels and customer service HRM will start working and assessing the corporate development.

12.00

One-hour lunch break will commence. There will be shifts on who will go to lunch A few employees will stay and take 13.00-14.00 time slot for lunch.

14.00 â&#x20AC;&#x201C; 17.30

Each employee will continue working on their own tasks on their desks. There will also be a strategic meeting for all employees after their tasks are done.

18.00

Phone lines closed and employees ensure office is left tidy ready for the next working day. Employees clock out and lock out.

5.2 Machinery The office will have three iMac for the employees can work on for designing purposes and online systems. The online system is powered by a special software that shows the available merchandise, sold out stock and provide warnings when an item is low in availability. Each employees are encouraged to have a personal computer for their own work, in order to save costs for the company and maintain efficiency in productivity. There will also be two large Xerox printers for the employees to share and conduct printing work there. Primarily, printers are for printing moodboards, design sheets, orders and other documents. 5.3 Sourcing The CEO, designer and buyer will research the seasonal color, material and textile trends and conduct comparative shopping (stores, trade shows, exhibitions) and will create a seasonal theme in-line with the brand DNA and the needs of customers, and also create moodboards to visualize this. Then, they finalize range planning and liaise with suppliers for sourcing of fabrics. Then, the sourced fabrics are produced and transformed into final products for sale. The logistics of the company will be outsourced. Finished goods will be shipped to the distribution center in the outskirts of London. Once the orders are placed, the stock will be arranged into orders, packed and shipped by in-house employees within the distribution site to the clients. The product is then sent to the retailers and progress into final consumption by the customers. 5.4 Materials & Suppliers Materials, such as cotton, silk, polyester fabrics will be sourced selectively from selected suppliers that supply ethical, sustainable and eco-friendly materials, complying and to the companyâ&#x20AC;&#x2122;s commitment to sustainability. Suppliers came from various global sources. However primary source of supply comes from UK, Italy, Spain. With an addition of partnerships with artisans in developing countries like India and Indonesia that provides silk and cotton, its technological innovation in the manufacturing process will compliment the business model. 5.5 Shipping & Delivery Maison Verdure will partner with DHL in regards to shipping to manufacturers, warehouses and distribution centers, as well as delivering to the B2B and B2C customers. B2C customers can track their order through DHL within the system.

5.6 Location

Maison Verdure 17 Cavendish Square W1G 0PH London, United Kingdom

6.0 MANAGEMENT SUMMARY

6.3 Team Members 6.3 Team Members CEO and Creative Director – Lizbeth Angjaya Graduate of Fashion Business from Istituto Marangoni. Previously worked at WGSN as a trend forecaster (2011-2014) and at Burberry as a marketing associate (2014-2016) Design – Jennifer Chan Graduate of BA Fashion Design degree from Central Saint Martins. Previously worked at Erdem (2014-2016), Stella McCartney (2012-2014) and Burberry (2010-2012) Marketing and PR - Christina Lee Graduate of BCom degree from the University of British Columbia. Previously at Tory Burch in New York as a marketing and PR officer (2010-2014), and e-commerce manager (2014-2016) at Farfetch. Finance and Accounting – Suzanne Willington Graduate of BSc Accounting and Finance from University of Birmingham. Previously worked at Ernst and Young as a financial services officer and accounting and finance officer at LVMH. Buyer – Charlotte Waters Graduate of BSc Fashion Management from London College of Fashion Previously worked at Matches Fashion (2012-2014) and Selfridges (2014-2016) as an assistant womenswear buyer Merchandising – Emily Stevens Graduate of BA English Literature from University of Manchester. Previously worked at Saatchi & Saatchi as a communications officer (2011-2013) and also at Harrods (2013-2016) as a merchandising officer. Sales – Marcus Wong Graduate of BSc Business and Management degree from Hong Kong University. Previously worked at Accenture as a consultant (2010-2014), at Kantar Worldpanel as a market researcher (2014-2015) and at Liberty London as a sales manager (2015-2017) Human Resource Management (HRM) – Sandra Hardy Graduate of B.S Psychology from Duke University. Previously worked at Ralph Lauren in New York (2010-2013) and Gucci (2013-2016) in London and as a human resource management officer. Information Technology (IT) – Tim Pierce-Okonkwo Graduate of BSc Computer Science from City University of London Previously worked at Accenture as a consultant (2008-2011), IBM as a content director (2011-2013) as technology and Selfridges as an IT specialist (2013-2016)

Administration â&#x20AC;&#x201C; Sarah Yates Graduate of BSc Data Science from University of Warwick. Previously worked at Ogilvy & Matter (2007-2010), Accenture (2010-2012), Net-a-Porter (2012-2016), as an administration officer. Operations â&#x20AC;&#x201C; Jeremy Patel Graduate of Management from Cass Business School Previously worked at Accenture as a retail and markets consultant (2010-2013), Arcadia Group (2013-2016) as an Operations officer.

7.0 FINANCIAL PLAN

7.2 Capital Requirements The most of the capital will come from family help, while bank loans remains the least. With an interest paid to the bank by 8% (U.K Standard)

7.3 Financial Projections 7.3.1 Fixed Costs

Fixed costs are forecasted based on the salary rates in the U.K, the average commercial letting price in London, quotes from PR, marketing and advertising agencies, bloggers. The highest cost here generates from the salaries, due to the relevant experience and qualifications that they have. Gas, software licenses, telephone bills, broadband, electricity will remain the same for three years. 7.3.2 Start-up Costs

7.3.3 Variable Costs

7.3.4 Cost of Sales

7.3.5 Income Statement

Assuming the growth of the company by 30% within first year, the marketing and advertising expenses will be tailored down after the first year, due to the brand awareness generated, there will be more PR and social media related medians will be utilized to cut costs. Also, assume that more customers are on “credit” rather than “debit”. The Gross Profit Margin is 60% (average for premium luxury brands). As mentioned previously, interested paid remains 8% each year Tax will be charged at 20% (UK Standard). Depreciation in 5 years will be £1311 per year for the IT hardware, furniture and fittings.

7.3.6 Balance Sheet

Accounts payable, long-term debt, and equity will remain the same for the following years. Assuming that customers haven’t paid last month, the accounts payable remains the same. Cash in the beginning of the year (Year 2 & 3) comes from the end of balance from the previous year. Assume that each year purchase material is worth of £500,000. As mentioned before, each year the property and equipment – nominal value will be deducted by the depreciation cost - £1311 per year.

7.3.7 Cash Flow Statement All start-up costs paid in cash during start-up period. Receipts from sales, all bills and salaries are paid in monthly equal payments Salaries of employees rises by ÂŁ30,000 per year. As discussed before, marketing and advertising fees decreases each year. Depreciation is not included due to it being a non-cash expense (direct method). It will be re-adjusted in the reconciliation of net income to net cash. All fixed assets will be charged on the first year only.

Trademark Patents Company Registration Legal fees Accounting fees Advertising and events Consultancy Company website Research and Development Total Expenditure Net Cash Balance Opening Balance (Beginning) Closing Balance (End)

Website hosting and maintenance (100 / month) Influencer endorsement Staff training Furniture

£800 £700 £5,500 £500 £600 £85,000 £1,400 £1,200 £2,500 £342,200 £657,800 £0 £657,800

£90,000 £2,000 £2,000

£100,000 £50,000

£0

£1,000,000

Total Receipts

£200,000 £700,000 £100,000

Start-Up

Loan received Family help Sponsorship Receipts from sales

Item

Feb

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£100

£5,000 £100 £500 £100 £250

£115,858

£5,000 £100 £500 £100 £250

£115,858

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£115,858

£115,858.33 £115,858.33 £115,858.33

Jan

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

Jul

Aug

Sep

Oct

Nov

Dec

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£115,858

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£115,858

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£115,858

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£115,858

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£115,858

£49,015 £66,843 £0 £66,843

£100

£42,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£115,858

£115,858.33 £115,858.33 £115,858.33 £115,858.33 £115,858.33 £115,858.33 £115,858.33 £115,858.33

Jun

£115,858 £115,858 £115,858 Expenditure (MONEY OUT)

£115,858

Cash Flow Statement Year Ending 31/12/2018 Mar Apr May Receipts (MONEY IN)

£0

£588,180

£1,200

£510,000 £4,800 £600 £180

£60,000 £1,200 £6,000 £1,200 £3,000

£2,390,300

£200,000 £700,000 £100,000 £1,390,300

TOTAL

£0

Total Receipts

£0 £0 £0 £0 £0 £0 £0 £0 £0 £224,000 £224,000 £66,843 £157,157

£90,000 £2,000 £2,000

Website hosting and maintenance (100 / month) Influencer endorsement Staff training Furniture

£90,000 £40,000

Salaries of Employees (45000 / month) Water (400 / month) Gas (50 / month) Sofware licenses (15 / month) Marketing Advertising

Rent (5000 / month) Electricity (100 / month) Insurance (500 / month) Broadband (100 / month) Telephone bills (250 / month)

£0 £0 £0

Start-Up

Loan received Family help Sponsorship Receipts from sales

Item

Feb

Jun

Jul

Aug

Sep

Oct

Nov

Dec

£51,515 £99,101 £157,157 £58,056

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £58,056 £41,045

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £41,045 £140,146

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £140,146 £239,246

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £239,246 £338,347

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £338,347 £437,448

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £437,448 £536,549

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £536,549 £635,650

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £635,650 £734,751

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £734,751 £833,851

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £833,851 £932,952

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£51,515 £99,101 £932,952 £1,032,053

£100

£45,000 £400 £50 £15

£5,000 £100 £500 £100 £250

£150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 Expenditure (MONEY OUT)

£150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83 £150,615.83

Jan

Cash Flow Statement Year Ending 31/12/2019 Mar Apr May Receipts (MONEY IN)

£1,200

£540,000 £4,800 £600 £180

£60,000 £1,200 £6,000 £1,200 £3,000

£1,807,390

£0 £0 £0 £1,807,390

TOTAL

£0 £0 £0 £0 £0 £0 £0 £0 £0 £342,200 £342,200 £1,032,053 £689,853

£90,000 £2,000 £2,000

Website hosting and maintenance (100 / month) Influencer endorsement Staff training Furniture

£80,000 £30,000

£54,015 £141,786 £689,853 £831,639

£100

£47,500 £400 £50 £15

Salaries of Employees (47500 / month) Water (400 / month) Gas (50 / month) Sofware licenses (15 / month) Marketing Advertising

£195,801

£5,000 £100 £500 £100 £250

£0

Total Receipts

£195,801

Jan

Rent (5000 / month) Electricity (100 / month) Insurance (500 / month) Broadband (100 / month) Telephone bills (250 / month)

£0 £0 £0

Start-Up

Loan received Family help Sponsorship Receipts from sales

Item

£195,801

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801 £195,801 £195,801 Expenditure (MONEY OUT)

£195,801

May

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801

Jun

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801

Jul

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801

Aug

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801

Sep

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801

Oct

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801

Nov

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801

Dec

£54,015 £54,015 £54,015 £54,015 £54,015 £54,015 £54,015 £54,015 £54,015 £54,015 £54,015 £141,786 £141,786 £141,786 £141,786 £141,786 £141,786 £141,786 £141,786 £141,786 £141,786 £141,786 £831,639 £973,425 £1,115,211 £1,256,997 £1,398,783 £1,540,569 £1,682,355 £1,824,141 £1,965,927 £2,107,713 £2,249,499 £973,425 £1,115,211 £1,256,997 £1,398,783 £1,540,569 £1,682,355 £1,824,141 £1,965,927 £2,107,713 £2,249,499 £2,391,285

£100

£47,500 £400 £50 £15

£5,000 £100 £500 £100 £250

£195,801

Feb

Cash Flow Statement Year Ending 31/12/2020 Mar Apr Receipts (MONEY IN)

£1,200

£570,000 £4,800 £600 £180

£0 £1,200 £6,000 £1,200 £3,000

£2,349,607

TOTAL

7.4 Breakeven Analysis Assuming that Core is going to be sold the most, weighing at 60%. In order to breakeven, 3455 units has to be sold within the first year, a worth of ÂŁ1,389,152 for each category split. In order to breakeven in the second and third year 1258 units and 1319 units has to be sold each year, respectively.

Word count: 8364 words (excluding executive summary, tables, figures, sources, appendices, bibliography)

â&#x20AC;&#x153;Maison Verdureâ&#x20AC;?

Lizbeth Angjaya Student ID: 018799 Istituto Marangoni Manchester Metropolitan University BA (Hons) Fashion Business Honours Project May 2017

1.0 EXECUTIVE SUMMARY The business plan below will investigate how the idea of changing consumer trends and fashion futures for better can be translated into a profitable company that fills the market gap for versatile luxury loungewear and feed demand with sustainable and ethically-oriented product choices for the consumers.

Company, 2016), it is also fully realized that the sustainable and ethical factor of the business culture in this context will respond to the customersâ&#x20AC;&#x2122; awareness of issues, emphasizing an area of differentiation within the industry, providing customers with better option, and in particular, serving customers who actively seek for sustainable fashion. To exploit its uniqueness, it will adopt a supply-chain management policy in which the company will source from suppliers who sources high-quality materials through premium luxury designers from all over the world who has fabric left overs. The suppliers that work with the company will create a fabric material broken down from the leftover materials sourced. Other than this approach of sourcing from left-over fabrics, the company will also source fabrics that are not left overs, it will be directly sourced through the natural resources with an ethical and sustainable procedure. This will be supported by building and cultivating relationships with communities from the developing countries that sources natural resources â&#x20AC;&#x201C; in support of sustainability. 1.3 Vision & Mission Vision To establish the company to be a force in sustainable fashion and loungewear market alike. Mission Seeking to provide exceptional and versatile luxury fashion through sustainable craftsmanship and inspire customers to be environmentally aware and involved. 1.4 Objectives & Strategies The objectives of an enterprise that operates like this is to revolutionize the fashion industry through the rising functionality of loungewear with a high-performing apparel brand that serves transitional purposes and to contribute to social responsibility to a high standard in an effective way, as well as to contribute to the development of sustainability in the UK and internationally through creative enterprises. The business will differentiate itself from the competitors through branding, storytelling, its transparent production, additional digital services, a community-building culture within the brand and company itself. All these elements are considered to be a sustainable competitive advantage, an experience that is difficult for the competitors to replicate.

1.5 Financial Potential The business aims to acquire its funding from the help of family members, bank loan and sponsorships from external organizations, to stabilize its cash flow at the end of every fiscal year. It will be investment-heavy, due to its contribution and implementation of sustainability. Rewards of the business opportunity will include innovation management, a contribution to the sustainable development of the United Kingdom. Risks will comprise of heavy losses due to the heavy investments. 1.6 Management Team The key people that will achieve the results will primarily be the investors and the entire employees of this business. 1.7 Resources & Capital Funding will be needed for working capital to buy more inventory, in case of an expansion. Further funding would be very beneficial for the business in order to reinvest in its research and development and innovate to acquire technological advancement in its sourcing and manufacturing strategies, in order to gain a sustainable competitive advantage. (Refer to the 9.0 Financial Plan for assumptions of profits and losses when the company is established)

2.0 BUSINESS DESCRIPTION 2.1 The Business Concept The business model is a company that designs, markets and retails a brand of sustainable mid-luxury positioned womenâ&#x20AC;&#x2122;s brand that primarily offers a mix of loungewear apparel such as tracksuits, sweatshirts, sweatpants, pyjamas, robes and kimonos and camisoles with a very limited extension of additional accessories. It aims to accommodate and support various customers with starkly different lifestyles and needs. With the current trend that loungewear can be worn outdoors and most luxury brands elevate loungewear pieces into staple status (Pike. H, 2016), it also projects itself to push the boundaries of loungewear further. The business aims to be a bridge between ready-to-wear and loungewear. The pieces that are being offered will be highly transitional for different daily activities and fill the gap in the market for a lack of fashion-forward, accommodating and high-performance loungewear. The product offerings, product attributes, marketing, production practices will strongly revolve around sustainability and eco-friendliness, with an emphasis well-being enhancing experiences to inspire uninformed consumers to be socially conscious and responsible, in tune with its narrative and values. Being a sustainable and eco-friendly brand means that the brand will be strictly committed to ethical trading and production. Recycling and upcycling will be a crucial and pivotal part of the sourcing, manufacturing and production processes. However, the main commitment of the business mainly emphasized on nature and environmental instead of animal rights approach. The uniqueness of this business concept is that it has a unique supply-chain management policy in which the company will source from suppliers who sources high-quality materials through premium luxury designers from all over the world (with a main focus on European designers) who has fabric left overs. The suppliers that work with the company will create a fabric material broken down from the leftover materials sourced. Other than this approach of sourcing from left-over fabrics, the company will also source fabrics that are not left overs will be directly sourced through the natural resources with an ethical and sustainable procedure. The supply-chain management will also involve relationships with various suppliers that produces waste, as well as fashion firms around the world (in particular, countries with developing economies), that produces excess waste (leftovers) from the usage of fabrics. The business also seeks to commit into forging partnerships with artisans from the developing countries (eg. cotton-weaving communities in Chiang Mai, Thailand and Flores, Indonesia and silk weaving communities in Varanasi, India) , working in local communities to source the appropriate natural resources to a high ethical standards. Challenges that are present for the business lays in the digitalized approach to reach and deliver to customers. The ratio of the budget spend will be spent on its marketing endeavors, as an on-line mobile app will be developed for additional customization and personalization services, as well as its core business offering of its seasonal products. Additionally, the website itself will contain platforms that with this app, the customer-data will be beneficial to maintain the flexible process of production.

2.2 Business Objectives

Business mission

•

Become a market leader in sustainable high-fashion and loungewear apparel in the United Kingdom

•

Impose an effective allocation of resources through craftsmanship in an ethical and responsible way.

•

Encourage enthusiasm and motivation and inform and inspire social awareness for customers alike.

•

To contribute to the overall sustainable development of the UK, as well as the world through creative enterprises.

•

Grow revenues by 10 % by each year of the two to three years since the first year business was founded.

•

Invest most of the profit margin for technical equipment and supply chain management for the enterprise to cover most of its long-term liabilities through delay.

•

Stabilization of cash flow within third to fifth year of the business.

Corporate objectives

2.3 Background Reasons and Motivations The reasons for an enterprise that will drive social awareness, inspiration and enthusiasm is to contribute and influence the local fashion industry through creating an innovative industrial power for advanced manufacturing and facilities within highend fashion. The company seeks to improve the local fashion industry by incorporating itself into environmental priorities and responsibilities, by bringing appropriate environmental business practices within the UK fashion industry. The brands’ value proposition and responsibility to operate and work transparently, involves exceptional suppliers, leading technical experts, and creative fashion talents to build a force of influence within the industry and externally.

expectation. Challenges that the founders faced within this stage are managing its cash reserves and sales expectations, establishing its ever-changing customer base and its market presence. The growing number of customers and recurring revenues will determine how the business could further proceed. Further progression of the business will generate more customers and additional revenue, as well discovering its direct competitors.

2.5 Target Customer The customer that will use the products and services of this business will be varied. In an end-user (B2C) perspective, and through demographic segmentation, the projected customer will be women, from ages 20 â&#x20AC;&#x201C; 45 years old (directly targeted), as well as other individuals who are older than 45 (untargeted). The primary customer will belong to the millennial generation (born in 1980s to 2000). 2.6 Structure The proposed business model is a private limited company (ltd), limited by shares. This company were registered through the UKâ&#x20AC;&#x2122;s registrar, Companies House in their London office. The business is a legal entity in its own right, distinct from the directors who run and manage them. 2.7 Location The business will be operated and headquartered in London, United Kingdom. The manufacturing, production, warehousing are also going to be located in the United Kingdom, in particular in the outskirts of London. The materials and fabrics will be sourced from global sources, suppliers within the UK, Italy, Spain and additionally, in developing countries like India and Indonesia. A head office will be located at the Central London area. (See Chapter 5.0, Operations Plan for details)

3.0 BUSINESS ENVIRONMENT ANALYSIS

This section will identify the general forces affecting or have the potential ability to affect the business, its competitors and potential competitors and in-depth detail of the customer. 3.1 Analysis of the Macro Environment (PESTEL) The United Kingdom business landscape has drastically changed since the announcement of BREXIT (1P) last year on June 2016. It was reported that confidence among UK businesses remains in negative territory according to Business Confidence Monitor (BCM). The BCM Confidence Index now stands at -8.7, compared to -9.8 in Q4 2016. However, as of now, the confidence is has slowly recovered. Stronger growth in export and domestic sales is expected. Firms are likely to pass many of these increases on to their customers, which may be part of the reason why they expect domestic sales growth to pick up after a flat trend through 2016. Export growth is also expected to strengthen, continuing the existing trend and reflecting the weak sterling. (Izza, M, 2016). Capital investment has experienced the slowest growth for three years and expectations are slower yet in 2017. This shows that while companies are expected to see growth in their sales over the coming year, they are cautious about translating that into higher capital spending. The same is true for expenditure on Research and Development, which has seen a 1.9% increase in the past year, but which is expected to rise by only 1.4% over the next 12 months. Currently, businesses in the UK are dealing with economical pressures that includes: Changes in trade agreements (1E) – EU memberships enables UK and the companies based there to sell their goods freely in union without having to pay additional taxes to import goods. The newly proposed free-trade agreement would mean increased administrative costs and possible delays to deliveries, which could put companies at a disadvantage, in particular, companies that caters to online retailing and e-commerce. Exchange rates fluctuations (5E) – the sterling is inconsistent. It has never reached the rates it was pre-referendum. The current condition is quite uncertain. It is quite sensitive to changes, as can be seen when “Article 50” was announced by Theresa May. However this also caused a short-term benefit, the UK has become the cheapest luxury market in the world (Hoang, L, 2016), and this was also generated from the rise of tourism, as an immediate effect from BREXIT. This can further drive companies’ organic growth.

The socio-cultural changes are also reflected during these times, which is complex for businesses to follow. Experience economy (2S) - The spending habit of the British are constantly changing. Official data shows that households are spending less on clothes and food but more on holidays, cars, entertainment and eating out, which highlights the shifting the consumer demands, increasing the market prospects of some businesses. Rising number of high-net worth individuals (3S) - The number of ultra-wealthy people living in the U.K. capital is expected to climb by 30 percent to 6,058 over the next decade, as reported, which also increases the market prospects in the UK, predicting a positive outlook for the future, in particular for luxury fashion brands. The importance of technology within the UK business landscape and the consumer market is expanding further. It was reported that Smartphone penetration (2T) in the UK is approaching its peak since almost ten years after the launch of touchscreen smartphones in 2007 (Deloitte, 2016), with brands like Apple and Samsung. Almost half of UK adults had access to at least one type of connected entertainment product (tablets, laptop). For fashion brands, this marks the importance of being adaptable to the latest technological trends, which will affect its communication tactics. The legal changes due to the BREXIT, will affect the Consumer Policy (1L) and Data Protection (2L), which further implicates uncertainty for businesses due to the unpredictable changes of its rules and regulation policies which is connected to the EU.

It was predicted and reported that consumer consciousness is expanding and â&#x20AC;&#x153;sustainability will be the standard in 2030â&#x20AC;? (Amed, I, 2016). Regardless, it was reported that recycling rates within the years of 2014-2015 has dropped, which is also below the EU requirement of having 50% (3En). This further raises the questions in regards to how businesses can impact minimally and how the national consumer awareness is. Nevertheless, it can be seen that the awareness on environmental issues are inevitably growing and pulling changes in the consumer behavior. Regardless of the macro environment happenings, the UK remains one of the most attractive markets in the world for foreign direct investments. Once again, the UK is the most attractive destination in Europe for FDI, with 20.9% of receipts (E&Y, 2016). Investors will still need to innovate and develop a long-term strategy as the market will change and progress every year.

3.1.1 PESTLE Analysis

Factor

Description

Political

Certainty Certain

1P. BREXIT – On 24 June 2016, “Leave” won with 51.9% voters voting to leave the European Union as compared to voters voting to remain by 48.11%. This event implements limitations in the free movement of goods and people and which will also affects the negotiation tactics in the free trade agreement • within the EU. Due to the reported plunging global stocks, there are also hints that this will affect the business confidence and causes slowdown in business investments. (Bowler. T, 2017) Economical

1E. Changes in trade agreements – As an EU member, UK and the companies based there can sell their goods freely in the EU without having to pay additional taxes to • import goods. However due to BREXIT, the proposed free-trade agreement would mean increased administrative costs and possible delays to deliveries. (Reid, D, 2017)

Impact Negative

•

Certain

2E. Changes in the freedom of Uncertain movement policy for EU nationals within the UK. - This creates problems for fashion companies whose foreign employees account for a large percentage of their workforce. Recruiting and retaining talent would

Negative

•

Negative

become more challenging. (Hoang, L, 2017)

• •

• • • •

3E. 2.3% Inflation Rate as of March 2017. – 2.3% is the above Bank of England’s 2% target. However, this is considered steady. (Fletcher, N, 2017)

Certain

Neutral

4E. Slow GDP Growth as of early 2017. – In wake of BREXIT, GDP growth fell more than expected to 0.3% in the first quarter from 0.7% in the previous quarter, the Office for National Statistics said. (Allen, K, 2017)

Certain

Negative

5E. Exchange rates fluctuations. Since BREXIT, the pound is inconsistent. It has never reached the rates it was pre-referendum. The current condition is quite uncertain. (Meredew, O, 2017)

Uncertain

Positive / Negative

Socio-cultural 1S. Aging population in the UK Like most developed / first-world countries, aging population is a challenge that UK faces. Between 2015 to 2020, over a period when the general population is expected to rise 3%, the numbers aged over 65 are expected to increase by 12% (1.1 million) (UK Parliament, 2017)

Certain

Neutral

2S. â&#x20AC;&#x153;Experience economyâ&#x20AC;? Changes in the British spending habits. Official data shows that households are spending less on clothes and food but more on holidays, cars, entertainment and eating out. (Allen, K, et al, 2016)

Uncertain

Negative

3S. Rising number of high-net worth individuals in UK. - The number of ultra-wealthy people living in the U.K. capital is expected to climb by 30 percent to 6,058 over the next decade, the report showed (Broom, G, 2017)

Certain

Positive.

Technological

Legal

Certain

Neutral

Certain 1L. Consumer Policy A huge amount of UK consumer protection regulation is derived from the EU. Directives implemented in the UK protect consumers when they have been sold faulty products and an EU exit would end further harmonization efforts.

Negative

Uncertain Neutral

Environmental 1En Environmental Standards and Policies If the UK finally leaves EU, it will be important for UK businesses to remain plugged into many of its environmental standards and policies, especially if the UK wishes to continue accessing the Single Market. But in such a scenario, UK businesses, which are often at the forefront of environmental innovation from the manufacturing of ultra-low emission cars and energyefficient ICT equipment to the sustainable sourcing of wood, would have little say on how these future standards and rules will develop.

Uncertain Neutral

2En. Recycling Rates in UK The recycling rate in England itself has dropped from 44.8% in 2014 to 43.9% in 2015. It also means that the UK as a whole is almost guaranteed to miss an EU target of recycling at least 50% of its household waste by 2020, as Englandâ&#x20AC;&#x2122;s size means it accounts for much of the rubbish the country produces. Wales is far ahead of England with households recycling 61% of waste, while Scotland is on 44.2%. (Vaughan, A, 2016)

Certain

Neutral

3En. Air Pollution in the UK â&#x20AC;&#x201C; Poor air quality provides a risk to employee health, with coughs, sore throats and asthma attacks likely to become more frequent. This will bring about a growing number of sick days, something that is already estimated to stand at 656,900 days a year in Central London due to air pollution. (Phillips, R, 2017)

Certain

Negative

3.1.2 Pestle mapping figure (Source - own work, 2017) CERTAIN

1 & &

&O 5 5 4

& POSITIVE IMPACT

NEGATIVE IMPACT -

& & 4 10-*5*$"- 1 &$0/0.*$"- & 40$*0 $6-563"- 4 5&$)/0-0(*$"- 5

-&("- -

&/7*30/.&/5"- &O

&O &

UNCERTAIN

The PESTLE mapping will help visualize the external impacts of the business. The biggest threat comes from the economical factors. While technological, socio-cultural and environmental factors are more neutralized. Overall, the entire mapping is balanced on the negative and neutralized impacts.

3.2.4 Competitive forces analysis

Porterâ&#x20AC;&#x2122;s five forces model (own work)

Factor Industry Rivalry

Medium There are a few brands operating within this niche market of luxury loungewear that is versatile and wearable on day and night. However, the business might also compete with other more mainstream brands outside of its competitive scale, in particular, premium brands offering RTW.

Impact This gives Maison Verdure an advantage in terms of its competitive scale, and makes it easier to differentiate itself further.

Bargaining Power of Buyers

Medium to High Being a start-up and a new brand in the market, Maison Verdure will face a challenge of having a moderate to high bargaining power of buyers due to its relatively unknown brand name compared to its competitors who are already established.

Maison Verdure should redefine its positioning strategy within the branding spectrum. Its distribution strategies, customer services, unique brand identity and its sustainable and eco-friendly stance, the brand should be able to stand out further.

Bargaining Power of Suppliers

Medium to High Being a brand that adopts sustainable and eco-friendly practices and incorporate organic, leftover materials within its product range, the number of suppliers that specialize in providing these materials are relatively scarce compared to other suppliers for mainstream and nonsustainable fashion. Which means the suppliers dominated by a small number of companies and is more concentrated than the industry to which it sells.

Threat of New Entrants

Maison Verdure should use its capital costs to invest more in its branding, advertising and creating product demand, which may put the new entrants on hold.

Threat of Substitutes

Maison Verdure should apply its sustainable practices to is branding, and exploits its strengths as a distinguished brand, to lure the customers away from substitutes.

Objectives To blur the line between lounge and ready-to-wear or daywear and nightwear.

Strengths Although a relatively new brand it has strong retail network within the UK and abroad stocked over 100 prestigious retailers such as Net-a-Porter, Mode Operandi, Harrods,

Selfridges, Neiman Marcus as well as having its own flagship store in London. Has also been awarded numerous awards ‘Blue Butterfly Trust Mark’ (2013); Walpole’s ‘Brand of Tomorrow’ (2013) and ‘The Leap 100’ fastest growing and most exciting businesses in the UK (2015), which proves the brands’ popularity and excellence. Well-promoted brand, very clear target customer. It also has an interesting promotional content on Instagram. Weaknesses It is also not accessible to a wider customer base due to its niche market (very specific). It caters to a directional customer base. Possible Reaction: Olivia von Halle is a direct competitor to Maison Verdure due to its specific target market and product offering, which is strikingly similar. It will consider the option of having further improvement through the digital aspects – transforming it into more lifestyle-oriented. It may also use influencer endorsements to boost the brand further, to equally compete with Maison Verdure.

Strategies A very new brand in the market. It is mainly prominent in Italy, however is in expansion stage within Europe. Stocks in Farfetch, YOOX, Net-a-Porter, mytheresa, Browns, Matches, The Modist, Moda Operandi, Nordstrom. It also has an e-commerce platform within its website. It is very image and editorial-heavy. They are also on Instagram, with 25.1k followers as of May 2017. Objectives To provide women with high-quality pyjama-inspired luxe loungewear that serves as daywear and nightwear. Strengths Has a very clear target customer. Good retail networks online for a new brand.

Weaknesses Low visibility in offline retailers. Not accessible to a wider customer base due to its niche market. Limited expansion. Does not have a presence in UK offline retailers (such as department stores), other than online retailers. Limited promotions and advertising. Lack of engaging content within online website. Possible Reaction F.R.S For Restless Sleepers will consider to implement its offline strategy, and re-structure its distribution strategy through both offline and online platforms. First, it can consider stocking its collection on department stores like Selfridges, Harrods or perhaps Fenwick. It might also further create a page on Facebook and consider more options to â&#x20AC;&#x153;re-brandâ&#x20AC;? its Instagram feed through promotional visuals to compete equally with Maison Verdure.

Objectives Three Graces London seeks to provide women with garments that allows them to “feel special in their down time” (Conlon, S, 2016)

Strengths A very clear target customer and strong retail networks within the digital and the physical aspects. It also has a wider product range, not only focusing on sleepwear and loungewear. Weaknesses Their content on social media is quite repetitive, very product-oriented, with an addition of where they get their inspiration from, which lacks drive in the promotional content. Nothing to keep the followers engaged further. Possible Reaction: Three Graces might consider changing in their social media content, along with their promotional tactics to further compete with Maison Verdure.

3.3.3 Conclusions Once Maison Verdure will be launched, it will operate on the selected department stores , multi-brand retailers and followed by e-commerce platform as well as a flagship store with proven a financial success within first to two years of launching. It will also implement an extensive promotion strategy through a series of advertising, personal selling, affiliate marketing, direct marketing, areas in which the direct competitors, Olivia von Halle, F.R.S and Three Graces are lacking in. Maison Verdure projects itself to have a higher digital engagement, with a highly interactive website platform, which provides educative, informational content for its sustainable and ecofriendly stance. It will also develop a mobile app, with similar function of online shopping, as well as additional customization and personalization option as a part of the marketing campaign for each collectionâ&#x20AC;&#x2122;s theme, as well as community building service. Other than social media and the web content itself, the app will be an added value to customers. The key to attacking the competitors itself is through the promotional strategy itself along with the added value service.

Concept (Q8, 9 , 10 , 11 , 12, 15) 25.3% of the respondents are quite familiar with the term and philosophy of “sustainable fashion”, while 45.5% of the respondents are said to be moderately familiar with it. This shows that the concept is becoming more normalized within the public, and it is no longer considered a new concept. It also shows it is in fact a notion which consumers would consider, and a growing potential market. 71.7% of the respondents displayed a neutral response when asked whether they agree to the statement that “sustainable fashion performs better in quality than general fashion”, which solely translates that within the fashion industry itself, there is not much proof that the quality of sustainable fashion fares better than general fashion, in fact, it is very likely that respondents alike does not see the a significant difference between the quality performance between sustainable fashion and the general fashion, or they are most likely to rarely or never use “sustainable” fashion products. This also creates further assumptions that the respondents are not really exposed to sustainable fashion brands. However with the rest of the respondents, in which 17.2% of responded that they “agree”, this proves that a small minority might have experienced a better quality product in sustainable fashion and is a consumer of sustainable fashion. 46.5% of the respondents also displayed a neutral response when asked whether they agree that “sustainable fashion is more stylish and trendy than the general fashion”. Other amount of respondents, which accounts for 40.4% does not agree with this statement. Which means, the concept is also not widely known to be fashion-forward and trend-driven. The idea of “sustainable fashion” relates to the fact that social awareness and eco-friendliness is not well associated with the mainstream fashion that the public are aware of. This is also supported by the fact that there are few established fashion brands that incorporates sustainable and eco-friendliness aspects in their production as well as a marketing within both high-street and luxury. “Mainstream fashion is dogged by a paucity of ideas and a failure to commit to deep sustainability and activate real change.” “Only a very small handful of fashion companies are truly trying to be more environmentally sustainable.” (Siegle, L, 2016) More than half of the respondents, 55.6 %, agreed that luxury fashion products made out of high-quality leftover materials are still worthy to purchase, indicating a potential interest in sustainable luxury. While the other 31.3% responded “maybe”, which also indicates a potential curiosity in regards to sustainable luxury fashion.

Consumer Behaviour (Q5, 7, 13, 14) It was discovered that 92.9% of the respondents used “Instagram” on a daily basis. Facebook also comes the second highest with 88.9% of them, proving the importance of social media in this day and age to communicate with the customers and deliver its value. Most respondents also prefer to shop at department stores (78.8%), answers that were coming from a balanced mix of demographic groups. This is critical to the positioning of the brand and the overall distribution strategy to be adopted in the future. When shopping for loungewear, sweatshirt at 76.8% becomes the most the shopped product, along with pyjamas at 56.6%. This results could help the range planning for the collection, which highlights which product will fit the both the brand and the potential customer. When asked what are the qualities that are difficult to find when they shop for loungewear products, “fashion forward” and “accommodating to daily activities” are the top answers, further indicating the gap in the market, which the brand could utilize further.

3.4.2 Qualitative Market Demand Analysis To get a more qualitative insight into the consumer’s mind, in-depth interviews were conducted with 3 candidates. Questions and answers can be seen in Appendix 2. Results were analyzed into the following topics: Concept Candidates happen to be interested with the “loungewear” trend that premium luxury fashion designers, like Celine and Chloe incorporates in their latest seasons. They also stated that they are likely to be interested in a sustainable luxury loungewear brand. “I would be so interested to see that! I am open to that concept.” – (Target Customer 3) The three of the candidates also stated that “fashion brands who recycle their materials are still worthy to invest in” – meaning that the consumers’ perception on the idea of sustainable fashion is changing. An interest of customization or personalization with the sustainable luxury loungewear brand is also expressed.

3.4.3 Observations In overall, the candidates from the survey and the interviews expressed an interest with the business concept. Shopping in high-scale department stores (78.8%) is evident as a frequent activity amongst the candidates in the survey. Consumers seek for experiences that the brand could capture through the physical to the digital aspects of the shopping and retail experiences. This can also further be expressed through the social media platforms, the online content, and a well-balanced fashionability range split, a fresh design direction, that is expected to enhance sales and encourage repeat custom.

3.5 Strategic analysis of the Internal Environment 3.5.1 Resources-based Approach Evaluation Factor

About

Physical resources

Has the necessary items needed (iMac, Laptop, Printer, office space, storage & furniture, software, etc.) Has employees and affiliate partners Able to acquire the loans, personal investments, sponsorships.

Human resources Financial resources

Intangible resources

Branding â&#x20AC;&#x201C; not yet establish a brand name yet.

Strengths vs. Weaknesses Strength

Strength Strength

Weakness

3.5.2 Value Chain Approach Evaluation Factor

Impact

Strengths vs. Weaknesses

Inbound Logistics

Will receive purchases from suppliers that comply into ethical sourcing.

Strength

Operations

Manufacturing to the highest standards. Strong quality control

Strength

Outbound Logistics

Will partner with DHL distribute the finished goods to retailers and directly to customer. Ensures speed in delivery.

Marketing and Sales

Will be able to focus and implement a strong marketing strategy, exploiting the brandâ&#x20AC;&#x2122;s unique identity

Services

Strong relationships and enhancement Strength in the customer service with the offline and online. After-sales service are set

Strength

to the highest standards.

3.5.3 Support Activities

Firm Infrastructure

Outsource accounts and legal issues to a third party who can offer professional advice. Management of investor relations

Human Resource

Will hire the best employees to work â&#x20AC;&#x201C; in particular those who has work experience in the fashion, design and retail industries. Being a start-up company, employees have more opportunity to grow with Maison Verdure.

Technology

Range planning will commence. Material and market research will be conducted

Procurement

Goods will be stocked and distributed to retailers and B2C customers. Implement sales force to deliver customer services. Stronger relationships with suppliers and customers will be formed.

3.6 Evaluation of the Strategic Fit 3.6.1 PESTLE Evaluation Factor

Impact

Political

BREXIT â&#x20AC;&#x201C; causes limitations in the free movement of goods and people and which will also affects the negotiation tactics in the free trade agreement within the EU.

Opportunity vs. Threat Threat

Fluctuations in exchange rates. Causes more sales due to the cheap luxury market.

Opportunity

Socio-cultural

Rising number of high net worth individuals in the UK

Opportunity

Technological

Smartphone Penetration reaching its peak

Opportunity

Legal

Proposed changes in Data Protection and Consumer policy laws. Air pollution in the UK.

Threat

Economical

Environmental

Threat

3.6.2 Porterâ&#x20AC;&#x2122;s five forces Evaluation Factor

Impact

Opportunity vs. Threat

Industry Rivalry

Few brands operating within this niche market of luxury loungewear

Opportunity

Bargaining Power of Buyers

Relatively unknown brand name compared to its competitors who are already established.

Threat

Threat of Substitutes

Replaceable by other firms and external forces due to its relatively new brand name.

Threat

Bargaining Power of Suppliers

Built strong relationships with various suppliers and will cultivate partnerships with supplying communities

Opportunity

3.6.3 SWOT / TOWS Matrix Internal Elements

Internal Strengths – S 1. Has the necessary items needed 2. Has employees and affiliate partners 3. Able to acquire the loans, personal investments, sponsorships.

Internal Weaknesses - W 1. Branding – not yet establish a brand name yet.

External Elements STRATEGIC OPTIONS Opportunities 1. Fluctuations in exchange rates 2. Rising number of high net worth individuals in the UK 3. Smartphone penetration 4. Few brands operating within this market. 5. Built strong relationships and partnerships with suppliers

Strengths and Weakness and Opportunities Strategies Opportunities Strategies - brand new image - Smartphone not yet tarnished, penetration focus on luxury means mobile elements to entice phone app will be customers in with created. the rise -

Strong virtual experience implemented into website design. Can involve storytelling

Not much substitutes Saturate and dominate the market

Threats Strengths and Threats 1. BREXIT Strategies 2. Proposed changes - Create further in Data Protection product and Consumer differentiation policy laws. through its 3. Air pollution in promotional the UK. tactics, 4. Relatively distribution

Weakness and Threats Strategies - With a clean brand image means no negative views – can promote trade fair, sustainability with ease along

unknown brand name compared to its competitors 5. Replaceable by other firms and external forces

strategies. Implement sustainable marketing

with charities. Promote and exploit its USP to the customers.

4.0 MARKETING PLAN 4.1 Marketing Objectives (SMART) To establish Maison Verdure into the UK luxury loungewear market into department stores, multi-brand retailer and e-commerce launch, marketing objectives will be planned, to proceed to the right direction to meet Maison Verdureâ&#x20AC;&#x2122;s goals within the first year of launch. Achieve a market share of 1-5% of within the first year of launch

Achieve overall sales of 5% - 10 % within the first year.

Generate brand awareness as a new business

Embark on affiliate partner marketing strategy, by collaborating with a London-based fashion influencer. Plan an intensive integrated marketing communications strategy involving print and digital advertising along with other relevant and effective techniques.

Build a customer base as a new business

Achieve genuine Instagram followers and Facebook likes with a target of 10k followers within the first year of launch. Develop a strategy to convert redeemers to repeat customers.

Figure 4.1 – Objectives & Action table Source – own work

Segment 2

Segment 3

Young Affluent Professionals

Mature Affluent Professionals

Conservative, Affluent Professionals

Geographic

Location

Central London

West London

Middlesex

Demographic Age Income

20 – 35

36 – 45

45 – 60

£ 20 – 40k per annum £ 40 – 50 k per annum

£ 50 – 70 k per annum

Occupation

Employed or self employed

Employed, self employed or homemaker

Self-employed, employed, retired

Education

Bachelor degree educated

Psychographic Social class

Middle to upper class

Lifestyle

Strong work and life balance. Schedules can be hectic.

Unbalanced More relaxed between work and life.

Personality

Creative, energized

Composed, calm

Down-to-earth

Loyalty

Loyal. An ambassador for luxury brands

Shifting loyal to less loyal

Less loyal to promiscuous explorers.

Behaviographics Shopping frequency

Shops in luxury boutiques and high end department stores as well as ecommerce platforms

Shops in luxury boutiques and high end department stores. Will spend

Buys several luxury item a year, most likely to shop midpriced brands. Also receives luxury items

(Selfridges, Net-aPorter, Browns, Matches, etc.)

a lot for their image. Quite mobile

as gifts. Occasionally shops in Selfridges and Harrods. Purchases are wellplanned in advance.

Benefits wanted

Quality, self-image enhancement, heritage, craftsmanship

Imageenhancement, brand image imposition

Experience for the self-image enhancement. Likes to combine luxury and high-street

Values

Status, quality, sustainability

Image, sustainability

Price, sustainability, design

Webographics Intensity

Active social media users. Reads blogs, magazines, and other platforms

Moderate to High. Uses internet on professional level.

Low to Moderate. Rarely uses social media, but might use for professional purposes and check for news, statuses when there is additional free time.

Platforms

Facebook, Instagram, Linkedin, Twitter, Snapchat

Facebook, Instagram, Twitter, Pinterest

Facebook, Instagram

Figure 4.2.2 - Segmentation variables table Source â&#x20AC;&#x201C; own work

This segment represents a woman, from ages 46 to 60, employed in full-time or part-time job or retired, lives in the outskirts of London, most likely single or might also have a family with children. She shops a few times in a year and usually shops at department stores, and is very price-conscious and very design-oriented. She is less likely to be loyal to a brand and likes to explore various brands, likes to combine luxury with high-street. She rarely uses social media on a daily basis, and more likely to use it for news-reading and professional purposes.

Andrea “Andie” Stevens Age

Job

Advertising – Strategic Planner at Saatchi & Saatchi

Income

£ 35000 per annum

Family

Single with no children

Location

Notting Hill, London

Education BSc (Hons) Media Communications, U.A.L – 2:1 MSc Management, London Business School – Distinction

Interests

Gym, Yoga, Music, Photography, Shopping (designer brands and high street brands), Travel (beaches and city breaks), Spa, Restaurants (Hakkasan, Zuma)

Goals

Would like to earn higher and be promoted. Like to start a family in a few years time, however enjoys being young and successful at the moment. Very little free time due to hectic schedules.

Challenges

Brand associations

Selfridges, Browns, Matches, Net-a-Porter, Jo Malone, Maje, Sandro, Whistles, Isabel Marant

Media & News Sources

Daily Mail, Grazia, Vogue, L’Officiel, Harpers Bazaar, Bloomberg, CNN, Reuters

Digital Ability

Advanced / Frequent user

Social Media Usage

Facebook, Instagram, Twitter, LinkedIn, YouTube, Snapchat

Figure 4.3.1 - Pen Portrait table Source – own work

4.4 Positioning The strategic task of positioning is to compare where the brand stands as compared to its competitors. To establish itself in the already-saturated market, the points of difference will have to be defined to identify its own uniqueness. Through the points of difference, the unique selling point will be determined further. The defining factor of Maison Verdureâ&#x20AC;&#x2122;s positioning is its sustainable product offerings, fashion-forward tendencies, additional digital services, bespoke options, and the imposition on the value craftsmanship rather than serving conspicuous consumption. As previously mentioned in the competitive analysis, there will be an indirect potential competition coming from ready-to-wear premium luxury brands such as, CĂŠline and ChloĂŠ, Brunello Cuccinelli, Vetements, Allude and The Elder Statesman should they create another collection with loungewear-influenced design direction and also other highstreet brands that offer loungewear products, so the positioning strategy is prone to change.

4.4.1 Positioning map Fashion forward

V M High price

Low price

Traditional Source â&#x20AC;&#x201C; own work

Olivia von Halle, La Perla, Three Graces London, F.R.S For Restless Sleepers Points of Difference (POD)

Maison Verdure Points of Points Difference (POD) of Parity (POP)

POP

POD

Unique Selling Point (USP)

Product offering: premium luxury loungewear that can be worn outdoors. (similar to all the competitors mentioned)

Sustainable product offering

The only premium luxury loungewear brand that enforces and implement ecofriendliness and sustainability.

Similar distribution channels (department stores, ecommerce, wholesale, flagship store*) On social media platforms

Fashion-forward and very trendinfluenced. Premium luxury loungewear brand that emphasized eco-friendliness or sustainability. An additional mobile phone app available for digital services.

The only luxury loungewear brand with fashion-forward design direction. Offers additional digital service that allows customization and personalization.

Competitors are already established as a brand.

Personalization & customization options available. (Olivia von Halle)

Maison Verdure aims to give customers a “self-imposition” or “self-concept”, that they represent externally and represents their intimate relationship with the brand: “I shop at Maison Verdure, therefore I portray trendiness, elegance, creativity within sustainable luxury” Sender

PHYSIQUE PERSONALITY Imaginative Daring Exciting Spirited

Experimental design Loungewear “MV” Logo Pastel colors

RELATIONSHIP Trust Excitement Responsible Exceptional

CULTURE

Open-minded Environmentally-concious Wellbeing Artistic Sustainable British

V M

REFLECTION SELF-IMAGE Socially-conscious Distinctive Fashion-forward Stylish

Confident Lively Creative Expressive

Receiver Figure 4.5 - Kapferer Brand Identity prism Source – own work

4.5.1 Brand name Maison Verdure roughly translates to “House of Greenery” in French language. Giving the brand a French-language name associates the brand with a luxury perception and gives an edgy and elegant feel when associating the brand with its product attributes, personality and its eco-friendliness aspects which solely translates to green and sustainable production within a fashion house, making it more memorable when customers recall the brand name.

4.5.2 Logo

Figure 4.5.2 â&#x20AC;&#x201C; Variations of logo Source â&#x20AC;&#x201C; own work

Vision Statement

To establish Maison Verdure to be a force in sustainable fashion and loungewear market alike.

Mission Statement

Maison Verdure seeks to provide exceptional and versatile luxury fashion through sustainable craftsmanship and inspire customers to be environmentally aware and involved.

4.5.3 Color palette

4.5.4 Brand Layout

Moodboard

The moodboard visualizes what the brand stands for - its sustainable, eco-friendly values, the main inspiration for the brand its product sketches. 4.5.5 Labelling and packaging

4.6 Marketing Mix The marketing mix embodies tactical marketing tools that the firm blends to produce the response it wants in the target market (Kotler, 2014). With Maison Verdure offering both the products and services, an extended service marketing mix (7ps) will be applied in this context.

Product

Price

Place

Promotion Service Marketing Mix

People

Physical Evidence

Process

Core benefit

Actual product benefit

Augmented product benefit

Potential product benefits

If the first collection is highly successful, and generates more-thanexpected revenue and market shares, then Maison Verdure will potentially introduce a line extension of capsule collection of collaboration with personalities or celebrities. Might also launch menswear loungewear pieces should there be further demand.

Core benefit Actual benefit Augmented benefit

4.6.2 Range Plan

4.6.3 Sourcing Strategy

Activity

Strategies

1. Research

trade shows and textile exhibitions to do comparative shopping, gathering insights from competitors. 2. Concept

Develop a seasonal theme in-line with the brand DNA and the needs of customers. Prepare moodboards and samples.

3. Product development

Finalization of range planning Liaise with suppliers for sourcing of fabrics.

4. Sourcing

Sourcing for fabrics within various suppliers. Each supplier will ensure excellent and ethical standards of sourcing, to comply with the brandâ&#x20AC;&#x2122;s values.

5. Manufacturing

The sourced fabrics are produced and transformed into final products for sale

6. Shipping

The logistics of the company will be outsourced

7. Warehousing

Finished goods will be shipped to the distribution center in the outskirts of London. Each goods will be checked for quality controlling, compiled with paperwork and certification.

8. Marketing and Press

9. Distribution

Once the orders are placed, the stock will be arranged into orders, packed and shipped by in-house employees within the distribution site to the clients.

10. Retail

The primary point of sale will be the department stores, multi-brand stores and ecommerce. Online store and mobile app will be the

additional point of sales, in support of the physical stores. 11. Carrier bag

12. Review

Fig 4.6.3 â&#x20AC;&#x201C; Sourcing strategy table Source - own work

Review of sales is done by the in-house team

4.6.4.3 Price band Matrix FASHIONABILITY SPLIT Core

MIN £217

MAX £556

AVERAGE £387

High Fashion

£407

£572

£490

Cutting Edge

£698

£1002

£850

CATEGORY Tops

MIN £217

MAX £556

AVERAGE £387

Bottoms

£205

£340

£273

All-In-Ones

£407

£542

£475

Dresses

£698

£1002

£850

Figure 4.7.3.1 - Fashionability split price band matrix Source – own work

Figure 4.7.3.2 - Category price band matrix Source – own work

4.6.4.4 Cost Estimation & Breakeven Please refer to the Financial Plan (Chapter 9.0) where this is discussed and analyzed. 4.6.4.5 Competitors price mix analysis (Product category breakdown / Competitors / Prices)

Olivia von Halle

La Perla

F.R.S For Restless Sleepers

Three Graces London

TOPS (Camisoles, Shirts)

£195 (Min) £310 (Max) £253 (Av.)

£64 (Min) £1245 (Max) £655 (Av.)

£428 (Min) £1204 (Max) £816 (Av.)

£180 (Min) £272 (Max) £226 (Av.)

BOTTOMS (shorts, trousers, jumpsuits)

£310 (Min) £1000 (Max) £655 (Av.)

£160 (Min) £1328 (Max) £744 (Av.)

£259 (Min) £271 (Max) £265 (Av.)

£90 (Min) £370 (Max) £230 (Av.)

DRESSES (dresses, robes)

£195 (Min) £690 (Max) £443 (Av.)

£316 (Min) £5644 (Max) £ 2980 (Av.)

£820 (Min) £1101 (Max) £961 (Av.)

£240 (Min) £619 (Max) £430 (Av.)

Fig 4.7.5 - Competitors’ Pricing Mix table Source – Farfetch, oliviavonhalle.com, laperla.com, threegraceslondon.com

4.6.4.6 Pricing strategies As mentioned in 4.7.1, Maison Verdure will use the premium pricing in its pricing strategy, in which charge relatively a higher price based on its product differentiation through the exploitation of its USP (its tendency to be fashion-forward, sustainable practices, unique offering) and emphasis on its exclusivity throughout its promotional tactics and â&#x20AC;&#x153;exclusiveâ&#x20AC;? distribution channels. By using this strategy, sales volume for the brand are expected to be steady, predictable and profitable.

4.6.4.7 Final price

Figure 4.7.7 - Final pricing of collection Source – own work

Concessions

It will operate as a concession on department stores such as Selfridges, Harrods. It will be located in the “Body Studio” in Selfridges. There will also be a small, dedicated space to the brand in Harrods. These channels will portray the brand identity the most accurate.

Wholesale

E-commerce

Maison Verdure will operate an e-commerce platform on its official website, which allows customers to shop online for the collection. Additionally, in the ecommerce platform, there is a bespoke service which allows customers to customize and personalize the products.

Flagship store (pending)

Figure 4.8.1.1 – Selfridges Body Studio Space

Figure 4.8.1.2 – Browns Fashion

4.6.5.2 Location Location of the outlets will be centered around Central London, where most luxury retailers are stationed at, and where there is a high traffic on tourism shopping. “According to tax-free shopping firm Global Blue, tourist spending on luxury goods in Britain in August rose by 36 percent” (Reuters, 2016) Strategically, the Oxford Street area is where high street retailers are positioned at, making Selfridges, Browns and Matches a few minutes walk away from each other. This fact further shopping convenience for the customers, and gives Maison Verdure a higher exposure to tourists and other potential customers within that particular area.

Figure 4.8.2.1 – Selfridges Map

Figure 4.8.2.2 - Browns Map

Figure 4.8.2.3 – Matches Map

Figure 4.8.2.4 – Harrods Map Source – Google Map

4.6.5.3 Selling Methods Selling methods that will be adopted are “sales force” – sales associates that will further assist the customers during the process of discovering the products that are display in the retail space, and their actions of trying the product. By employing the sales staff, personal selling will be implemented to inform and encourage customers to purchase the products that are displayed. Strategized through their attitude, appearance, and specialist product knowledge, these aspects along with their efforts are expected to entice customers to get interested with the brand. With Maison Verdure offering luxury fashion products that are versatile, complex, design oriented and eco-friendly, this method will be effective to inform, persuade the customers and also build further relationships. 4.6.5.4 Visual Merchandising Every week, the sales staff will rearrange what the mannequin displays as to follow the sales record of the week before. The display of clothing will also be strategically rearranged. The selection of color options might be swapped weekby-week. The sales records then will be reassessed and analyzed again for the following strategy that will be implemented.

Stock room

Television

Stock room

Fitting Room

Cashier

Clothing rails

FOCAL POINT

Mannequins

Figure 4.6.5.4 – In-store layout plan for concession Source – own work.

✗

Website Launch Department store and multi-brand release

✗

Advertising Campaigns Press Releases

✗

Sponsorships

✗

Direct Marketing

✗

Affiliate Marketing Digital Marketing

✗

V M

maison verdure

OFFICIAL LAUNCH PARTY DATE: 6 September 2018 VENUE: THE DOVER MEMBERS CLUB 45 DOVER STREET, W1 S, LONDON, UK TIME: 8 pM - TILL late

Figure 4.9.2 - Invitations to the Launch Party Source â&#x20AC;&#x201C; own work

4.6.6.3 Ongoing campaign A day after the launch party and beyond that time period, a series of promotional tactics will be implemented through paid media, owned media and earned media. Integrated marketing communication will be implemented in the usage of paid, owned and earned media. It seeks to communicate to the customers and public alike, delivering the same message before and after the launch of the brand and the release of the collection. The promotional period will commence on March 2018 when the brand showcases the AW 18/19 Collection during London Fashion Week. After LFW, Maison Verdure will be highly active on social media platforms, creating teasers and ad campaigns to entice the potential customers and public alike. After the brand launches and the collection are released into stores, another set of campaign will continue to further drive awareness to the points of sales.

4.6.6.3.1 Paid Media Ads will appear on fashion magazines like Vogue, Harpers’ Bazaar, Vanity Fair, W Magazine, ELLE, Grazia and L’Officiel. It will depict the ad campaign photoshoot visible with the logo.

• • •

Print advertising

• • •

PPC Advertising

•

Display advertising (online)

Social media advertising

Ads will be available on social media platforms like Facebook, Twitter and Instagram as “sponsored” posts, after the collection, brand and website is launched.

Sponsorship

British Fashion Council and London Fashion Week will act as the sponsors of Maison Verdure during the fashion show to the official brand launch time period and onwards.

Affiliate and partner marketing

Maison Verdure will approach Camille Charrière, the blogger of “Camille Over The Rainbow” to be the brand ambassador and affiliate partner. With this partnership, , she will post on her blog and social media platforms about the brand and encourage the public alike to take notice of Maison Verdure.

PPC ads will be available after the website officially launches. It introduces itself as the new sustainable luxury loungewear brand and will headline on the new collection and entices customers by putting the speed of delivery and bespoke service available.

•

• •

•

4.6.6.3.2 Owned Media •

Press releases

Press release will be released before the fashion show and before the brand launch 2018 throughout all media outlets to inform the public alike. (See Appendix )

Direct marketing

Customers will be asked to write down their personal and contact details during purchase of products, in order for their data will be kept within the customer database. However this is optional. Exclusive e-mails and text messages will be sent to loyal customers informing on the availability of the collection within stores and other promotional information (events, new arrivals). There is also an optional newsletter, which is more blog and styling oriented.

Personal selling

Staff within all retail spaces will be highly trained to inform and explain customers regarding the collection, bespoke services, and styling advices and encourage them of product trials and increase purchase intent.

In-store visual Store layouts will be strategically planned and rearranged merchandising before the collection released and on-going week by week. Point of purchase displays, atmospherics, music, mannequin position will change throughout the weeks after the collection and brand is launched. The store will also have television which plays campaign videos and educational videos regarding the production and craftsmanship of the brand. Company website

Companyowned social media platforms.

4.6.6.3.3 Earned Media •

Word of Mouth If a customer has an enjoyable shopping experience and likes the product that was bought, the campaign will be generated through the testimonial of the product offline and online. With the usage of the hashtag that allows the customer to be involved with the campaign, this will generate further buzz.

Traditional publicity mentions

As Maison Verdure chose Camille Charrière as the affiliate partner and brand ambassador, once she uses the product as given, she will mention the brand publicly throughout her blog “Camille Over The Rainbow”, and her Instagram account, which has 544.1k followers. This method will influence her readers and followers to check out on Maison Verdure and also calls for other bloggers to also to be introduced to the brand.

Maison Verdure seeks to create memorable experiences within the customers mind, which enhances brand equity and strategic awareness (Aaker, 2010)

4.6.7 People “The people employed in your organisation will determine the quality of service your customers receive.” (CIM, 2009) Pre-sales and after-sales service support will be determined by the performance of the employees internally. Customer service will be delivered to the highest standard in Maison Verdure, therefore it is vital to do training for its head office employees and retail staff before the brand officially launches. Employees will be trained biannually to ensure higher standards are maintained. They will be skilled and knowledgeable to deliver the best products and services and to provide the best advices. The brand’s core values and philosophy, as well as its sustainable and ethical culture will be heavily communicated and embodied in the training programs. Brand identity will be reflected and reinforced throughout all points of sales. The experience within the digital and technological aspects will mirror the offline and physical experience of the brand, and that is why it is crucial to keep the training program consistent. It is also important to view the business as a retail and service experience, not just a product-based experience. Being a start-up company means that it is crucial to everyone as a team, support one another, which positively contributes to Maison Verdure. With Maison Verdure designing, marketing and retailing offering products offline and online, with an addition of services that consists of a blog (styling advices) and a mobile phone app makes “People” an important part of the services marketing mix. It is important that the product that the retailers and customers received are accurate and blog posts are updated, to target the correct the market segment. Maison Verdure will offer 24/7 live chats to further assist customers.

customers about the product number, product name, size, care instructions and origins of production and purchase. 4.6.9 Process â&#x20AC;&#x153;The processes involved in delivering your products and services to the customer have an impact on the way in which your customers perceive youâ&#x20AC;? (CIM, 2009) The process of shopping in Maison Verdure offline and online is expected to be simple and hassle-free, and customers will be looked after thoroughly. In store, products will be arranged neatly and strategically placed to attract the customers. There will be a fitting room available for customers to try on the garments. On the website, products will have a zoom option at multiple angles to get a view on the texture of the fabrics and color of the garment itself. Customer can also filter down to multiple points that will narrow directly to the product they are searching for. This is to ensure the information flow is smooth and each process where the customer and company interact adds value to the customers, which makes it distinguishable from it competitors. Maison Verdure accepts VISA Credit, VISA Debit, VISA Electron, Mastercard, American Express, Maestro and Solo as payment methods within the store and online. Various delivery methods will be available. Returns can be made in less than 30 days, free of charge. This ensures that the shopping process would be a smooth and convenient experience for customers.

5.0 OPERATION PLANS 5.1 Daily Activities Opening Hours Monday 9.00-18.00 Tuesday 9.00-18.00 Wednesday 9.00-18.00 Thursday 9.00-18.00 Friday 9.00-18.00 Saturday 9.00-17.00 Sunday 12.00-18.00 Figure 5.1 – Opening Hours Source – own work

Time

Activities

8.30 – 9.00

Employees arrive and clock in. Emails will be checked and replied to. Order list from concessions, wholesalers, e-commerce will be printed off.

9.00 – 12.00

12.00

One-hour lunch break will commence. There will be shifts on who will go to lunch A few employees will stay and take 13.00-14.00 time slot for lunch.

14.00 â&#x20AC;&#x201C; 17.30

Each employee will continue working on their own tasks on their desks. There will also be a strategic meeting for all employees after their tasks are done.

18.00

Phone lines closed and employees ensure office is left tidy ready for the next working day. Employees clock out and lock out.

Spain. With an addition of partnerships with artisans in developing countries like India and Indonesia that provides silk and cotton, its technological innovation in the manufacturing process will compliment the business model. 5.5 Shipping & Delivery Maison Verdure will partner with DHL in regards to shipping to manufacturers, warehouses and distribution centers, as well as delivering to the B2B and B2C customers. B2C customers can track their order through DHL within the system. 5.6 Location

Figure 5.7.1 â&#x20AC;&#x201C; Office location Source â&#x20AC;&#x201C; Google map

Maison Verdure 17 Cavendish Square W1G 0PH London, United Kingdom

6.0 MANAGEMENT SUMMARY “Delivering sustainable luxury fashion to the highest standard” 6.1 PHILOSOPHY

“We believe a business should create value and contribute to the society through its key practices” “We are committed to delivering sustainably and ethically to increase our long-term value by putting our mission and values into practice” “We believe, as a member of the society, we can contribute to the environment through the sustainable craftsmanship of fashion” “We cultivate strong relationship with stakeholders, through responsible and socially-conscious engagement”

6.2 Hierarchy

Figure 6.2 – Hierarchy Source – own work

6.3 Team Members CEO and Creative Director â&#x20AC;&#x201C; Lizbeth Angjaya - Graduate of Fashion Business from Istituto Marangoni. - Previously worked at WGSN as a trend forecaster (2011-2014) and at Burberry as a marketing associate (2014-2016) Design â&#x20AC;&#x201C; Jennifer Chan - Graduate of BA Fashion Design degree from Central Saint Martins. - Previously worked at Erdem (2014-2016), Stella McCartney (2012-2014) and Burberry (2010-2012) Marketing and PR - Christina Lee - Graduate of BCom degree from the University of British Columbia. - Previously at Tory Burch in New York as a marketing and PR officer (2010-2014), and e-commerce manager (2014-2016) at Farfetch.

Finance and Accounting – Suzanne Willington - Graduate of BSc Accounting and Finance from University of Birmingham. - Previously worked at Ernst and Young as a financial services officer and accounting and finance officer at LVMH. Buyer – Charlotte Waters - Graduate of BSc Fashion Management from London College of Fashion - Previously worked at Matches Fashion (2012-2014) and Selfridges (2014-2016) as an assistant womenswear buyer Merchandising – Emily Stevens - Graduate of BA English Literature from University of Manchester. - Previously worked at Saatchi & Saatchi as a communications officer (2011-2013) and also at Harrods (2013-2016) as a merchandising officer. Sales – Marcus Wong - Graduate of BSc Business and Management degree from Hong Kong University. - Previously worked at Accenture as a consultant (2010-2014), at Kantar Worldpanel as a market researcher (2014-2015) and at Liberty London as a sales manager (2015-2017) Human Resource Management (HRM) – Sandra Hardy - Graduate of B.S Psychology from Duke University. - Previously worked at Ralph Lauren in New York (2010-2013) and Gucci (2013-2016) in London and as a human resource management officer. Information Technology (IT) – Tim Pierce-Okonkwo - Graduate of BSc Computer Science from City University of London - Previously worked at Accenture as a consultant (2008-2011), IBM as a content director (2011-2013) as technology and Selfridges as an IT specialist (2013-2016)

Administration – Sarah Yates - Graduate of BSc Data Science from University of Warwick. - Previously worked at Ogilvy & Matter (2007-2010), Accenture (2010-2012), Net-aPorter (2012-2016), as an administration officer. Operations – Jeremy Patel - Graduate of Management from Cass Business School - Previously worked at Accenture as a retail and markets consultant (2010-2013) , Arcadia Group (2013-2016) as an Operations officer.

6.4 Strengths and Weaknesses

Strengths

Highly experienced and qualified team members with strong working dynamics. Each team member has an experience of working at a retailer, which strengthens the understanding of the luxury fashion business itself, which causes the staff training regarding the luxury and fashion markets to be cost-efficient. Each member also shares the same values regarding social issues â&#x20AC;&#x201C; environmental, which makes Maison Verdure a passion project of everyoneâ&#x20AC;&#x2122;s.

Weaknesses

Since Maison Verdure is a start up company, there is very little employee. This puts the staff at a challenging position of having to multitask for different tasks that should be delegated to other staff and puts the team members under pressure, which is stressful.

7.0 FINANCIAL PLAN 7.1 Objectives Year

Objective

Breakeven and gain profit, showing a positive financial health from month to month.

2 Growth in market share by 1-2%. Cut cost in advertising and promotions due to increase brand awareness and establishment 3

Continue and maintain growth with through market share and increase sales through an increase growth rate.

7.2 Capital Requirements

The most of the capital will come from family help, while bank loans remains the least. With an interest paid to the bank by 8% (U.K Standard)

7.3 Financial Projections

7.3.1 Fixed Costs

7.3.3 Variable Costs

7.3.4 Cost of Sales

7.3.5 Income Statement

7.3.7 Cash Flow Statement All start-up costs paid in cash during start-up period. Receipts from sales, all bills and salaries are paid in monthly equal payments Salaries of employees rises by £30,000 per year. As discussed before, marketing and advertising fees decreases each year. Depreciation is not included due to it being a non-cash expense (direct method). It will be re-adjusted in the reconciliation of net income to net cash. All fixed assets will be charged on the first year only.

Item Loan received Family help Sponsorship Receipts from sales

Total Receipts

Rent (5000 / month) Electricity (100 / month) Insurance (500 / month) Broadband (100 / month) Telephone bills (250 / month) Depreciation Salaries of Employees (42500 / month) Water (400 / month) Gas (50 / month) Sofware licenses (15 / month) Marketing Advertising Website hosting and maintenance (100 / month) Influencer endorsement Staff training Furniture Trademark Patents Company Registration Legal fees Accounting fees Advertising and events Consultancy Company website Research and Development Total Expenditure Net Cash Balance Opening Balance (Beginning) Closing Balance (End)

Start-Up

Jan

Feb

Cash Flow Statement Year Ending 31/12/2018 Mar Apr May Receipts (MONEY IN)

Jun

Jul

Aug

Sep

Oct

Nov

Dec

£200,000 £700,000 £100,000 £115,858.33 £115,858.33 £115,858.33

£1,000,000

£115,858

£115,858.33 £115,858.33 £115,858.33 £115,858.33 £115,858.33 £115,858.33 £115,858.33 £115,858.33

£115,858 £115,858 £115,858 Expenditure (MONEY OUT)

£115,858

TOTAL £200,000 £700,000 £100,000 £1,390,300

£2,390,300

£5,000 £100 £500 £100 £250

£60,000 £1,200 £6,000 £1,200 £3,000

£42,500 £400 £50 £15

£510,000 £4,800 £600 £180

£100

£1,200

£49,015 £66,843 £0 £66,843

£588,180

£0

£100,000 £50,000

£90,000 £2,000 £2,000 £800 £700 £5,500 £500 £600 £85,000 £1,400 £1,200 £2,500 £342,200 £657,800 £0 £657,800

£0

7.4 Breakeven Analysis

Assuming that Core is going to be sold the most, weighing at 60%. In order to breakeven, 3455 units has to be sold within the first year, a worth of ÂŁ1,389,152 for each category split. In order to breakeven in the second and third year 1258 units and 1319 units has to be sold each year, respectively.

Word count: 8364 words (excluding executive summary, tables, figures, sources, appendices, bibliography)

8.0 APPENDICES Appendix 1

MARKET ANALYSIS Quantitative Market Analysis - Online Survey

Q1.

Q2.

Q3.

Q.4

Q5.

Q6.

Q7.

Q8.

Q9.

Q10.

Q11.

Q12.

Q13.

Q14.

Q15.

Q16.

Appendix 2

Qualitative Market Analysis â&#x20AC;&#x201C; Interviews 2.1 Target Customer 1 (undisclosed) Target customer 1 is a 23-year old female Masters student based in London, and working part-time in sales. She is a frequent shopper of loungewear and premium luxury fashion brands, and quite a brand loyalist. Q: How many times in a year do you shop for loungewear clothing? A: Four times usually within a year, however it can be more than that. If I am not particularly finding for a product and yet I visit stores and find sometime interesting to buy, then I will buy. Q: What kind of loungewear pieces do you usually shop? A: camisoles, tracksuits, sweatshirts and robes on some occassions Q: Are you aware that brands like Chloe, Celine, Vetements incorporates loungewear-inspired elements in their collection? A: Yes. I am aware of that Q: Do you find those collections interesting to you? Are you willing to invest in that? A: Yes, but I am not willing to invest in that Q: Do you happen to be interested in that element, that is incorporated in those ready-to-wear brand? A: Yes. I like loungewear that are wearable everywhere I go. Q: What loungewear brands do you usually shop for? A: I shop for Olivia von Halle, Derek Rose, and sometimes La Perla. Q: What do you think is lacking in loungewear brands? A: I guess, itâ&#x20AC;&#x2122;s the lack of variety in its design? Loungewear brands usually have a very traditional style. Q: How important is sustainability and ethics within fashion for you? Does it change your perspective if a brand is reported to use sweatshop and the industry statistics reveals some consumptive details on the fashion industry? A: It use to not matter to me, but now it is very concerning to me. Q: Do you think that itâ&#x20AC;&#x2122;s important for brands, especially luxury fashion brands, to implement sustainability and as well be transparent on their activities regarding that? A: Maybe in the future yes, but not so much now.

Q: Do you think that sustainable fashion is capable of producing products of better quality than the usual, mainstream fashion? A: I am not sure with that because I haven’t purchased a lot of sustainable fashion products to judge on that. I feel like the quality will always be the same. Q: Do you find fashion brands who recycle their materials still worthy to invest in? A: Yes, as long as it has a function. Q: How likely are you going to be interested in a sustainable luxury loungewear brand, especially the ones that are versatile, combining daywear and nightwear, just like Olivia von Halle, having a ready-to-wear direction? A: that would be a great idea. I might be interested in that. Q: How much are you willing to spend for it? A: Around £200 to £1000 Q: What kind of experiences do you want when you shop for a sustainable luxury loungewear brand? A: Comforting and educational experiences. Q: Are you interested in a customization or personalization of the sustainable luxury loungewear brand? A: Yes to both of them, but at the end of the day it depends on the design and choices.

2.2 Target Customer 2 (undisclosed) Target customer 2 is a 27-year old female full-time marketing officer based in London. Like the previous customer, she a frequent shopper of loungewear and premium luxury fashion brands, however, she likes to experiments with different brands and is not a loyalist Q: How many times in a year do you shop for loungewear clothing? A: 5 to 10 times a year, it depends. I never plan when I go shopping. Q: What kind of loungewear pieces do you usually shop? A: Camisoles, silk dresses, pyjamas Q: Are you aware that brands like Chloe, Celine, Vetements incorporates loungewear-inspired elements in their collection? A: Yes Q: Do you happen to be interested in that element, that is incorporated in those ready-to-wear brand? A: Yes, I am. Q: What loungewear brands do you usually shop for? A: La Perla, Derek Rose, and also other high-streets like ASOS Q: What do you think is lacking in loungewear brands? A: simplicity and variety of designs Q: How important is sustainability and ethics within fashion for you? Does it change your perspective if a brand is reported to use sweatshop and the industry statistics reveals some consumptive details on the fashion industry? A: To be honest, I am not that concerned. But I figured out, if a brand has a poor track record on labor and such, I would be less inclined to support it. However as for sustainability itself, I find myself to be apathetic, but, I am slowly changing regarding this. Q: Do you think that itâ&#x20AC;&#x2122;s important for brands, especially luxury fashion brands, to implement sustainability and as well be transparent on their activities regarding that? A: No I donâ&#x20AC;&#x2122;t think so. But it might be good in the future to do so.

Q: Do you think that sustainable fashion is capable of producing products of better quality than the usual, mainstream fashion? A: I can say that more or less it is the same. I haven’t tried a lot of sustainable fashion products, so I can’t really judge. Q: Do you find fashion brands who recycle their materials still worthy to invest in? A: Yes, as long as the product has a proven quality and functions similarly to those who does not recycle. Q: How likely are you going to be interested in a sustainable luxury loungewear brand, especially the ones that are versatile, combining daywear and nightwear, just like Olivia von Halle, having a ready-to-wear direction? A: Maybe. I am likely to invest if I like the designs and the product itself. Q: How much are you willing to spend for it? A: Around £200 to £800 Q: What kind of experiences do you want when you shop for a sustainable luxury loungewear brand? A: Well-being and enhancing experiences. Multitasking experiences too. Q: Are you interested in a customization or personalization of the sustainable luxury loungewear brand? A: Yes to customization, but not so much on personalization.

2.3 Target Customer 3 (undisclosed) Target customer 3 is a 32-year old female full-time manager based in London. Like the previous customer, she a frequent shopper of loungewear and premium luxury fashion brands, and she is shifting loyalist and likes to explore options out there. Q: How many times in a year do you shop for loungewear clothing? A: Three to five times a year. Q: What kind of loungewear pieces do you usually shop ? A: Camisoles and tracksuits Q: Are you aware that brands like Chloe, Celine, Vetements incorporates loungewear-inspired elements in their collection? A: Yes, I am aware. Q: Do you happen to be interested in that element, that is incorporated in those ready-to-wear brand? A: Yes I am actually. I think it is an interesting concept and trend. Q: What loungewear brands do you usually shop for? A: Olivia von Halle, Sleepy Jones, Marks & Spencer. Q: What do you think is lacking in loungewear brands? A: multifunction and the tendency to be trendy Q: How important is sustainability and ethics within fashion for you? Does it change your perspective if a brand is reported to use sweatshop and the industry statistics reveals some consumptive details on the fashion industry? A: Yes, it does changes my perspective. I find sustainability and ethics an important issue right now, especially with the climate change that is happening. Q: Do you think that itâ&#x20AC;&#x2122;s important for brands, especially luxury fashion brands, to implement sustainability and as well be transparent on their activities regarding that? A: I think it is not important but would be beneficial for some customers. Q: Do you think that sustainable fashion is capable of producing products of better quality than the usual, mainstream fashion?

A: I would say it is pretty much the same. I don’t think sustainability equals to better quality.

Q: Do you find fashion brands who recycle their materials still worthy to invest in? A: Yes, of course, as long as it is functional. Q: How likely are you going to be interested in a sustainable luxury loungewear brand, especially the ones that are versatile, combining daywear and nightwear, just like Olivia von Halle, having a ready-to-wear direction? A: I would be so interested to see that! I am open to that concept. Q: How much are you willing to spend for it? A: around £200 – £700 Q: What kind of experiences do you want when you shop for a sustainable luxury loungewear brand? A: a feeling of exclusivity, an experience that is eye-opening to me. Q: Are you interested in a customization or personalization of the sustainable luxury loungewear brand? A: Yes, I might consider checking that out first.

Appendix 3 4.6.2 Range Plan COLOR CHART – Color Inspiration for the Range Plan

A/W 18/19 GLOBAL COLOUR CARD PANTONE TCX / TPX COLOUR LIBRARY

CORE COLOURS 11-4300 Pantone

11-0601 Pantone

13-1007 Pantone

13-4108 Pantone

16-5101 Pantone

16-1120 Pantone

19-4023 Pantone

19-3900 Pantone

19-4005 Pantone

TCX / TPX

19-1109 Pantone

19-3906 Pantone

19-4329 Pantone

16-3920 Pantone

15-1322 Pantone

18-0950 Pantone

18-1547 Pantone

18-4214 Pantone

14-0847 Pantone

19-3910 Pantone

TCX / TPX

TCX /TPX

TCX / TPX

19-1106 Pantone

19-4049 Pantone

18-1409 Pantone

18-1536 Pantone

19-1863 Pantone

15-1150 Pantone

16-1054 Pantone

18-0937 Pantone

18-0117 Pantone

18-0521 Pantone

TCX / TPX

19-4726 Pantone

19-4121 Pantone

18-1856

13-3820 Pantone

19-3230 Pantone

19-1623 Pantone

18-0503 Pantone

18-1142 Pantone

TCX / TPX

TCX/TPX

809 C Pantone Solid Coated

19-3953 Pantone

TCX / TPX

19-4009 Pantone

18-5020 Pantone

18-1555 Pantone Plus

17-0205 Pantone

13-0752 Pantone

16-3803 Pantone

17-0808 Pantone

16-1452 Pantone

16-5810 Pantone

19-1235 Pantone

TCX / TPX

Pantone

Source – WGSN, 2016

Appendix 4 – Press Release for Promotions

Press Release FOR IMMEDIATE RELEASE Chelsea Sayers Public Relations Specialist Sayers & Co. PR 32 New Bond Street London chelseasayers@sayersandcopr.com 778.991.235

MAISON VERDURE IS THRILLED TO ANNOUNCE ITS OFFICIAL LAUNCH DATE London, 1 March 2018 - Maison Verdure is thrilled to announce the launch date of its brand and its first collection – The Fantasia Collection – A/W 18/19, scheduled on September 7th, 2018. The collection takes inspiration from urban realism and will feature color-heavy staples. The collection will be showcased for the first time at London Fashion Week on March 5th, 2018, in Somerset House. The show will be attended by dozens of celebrities, journalists, buyers and bloggers. The launch party is scheduled to be held a day before the launch of the brand and the collection, September 6th, 2018. Bloggers, industry professionals and other public figures will be invited to the launch party. The event will be press-focused. Maison Verdure was conceived by entrepreneur and designer, Lizbeth Angjaya, who is an advocate for sustainable luxury fashion and saw a need to incorporate those social awareness into versatile loungewear, on which she saw was a growing trend.

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