Table Of Content Executive Summary History Company Profile SWOT Analysis Brand Identity Analysis Current Positioning Current Distribution Communication & Promotion PESTEL Competition Target Consumer Design of Store Communication & Promotions Plan Financial Plan
Executive Summary Currently established in France, Kenzo, an LVMH owned brand that aims to produce luxury products at a much more affordable price. Known to be the precursor of merging and enhancing different cultures and forms of art together. It was founded in Paris during 1970 by Japanese designer Kenzo Takada and is currently being creatively lead by Californian natives Carol Lim and Humberto Leon, who are also the founders of fashion retailer Opening Ceremony. The brand defines itself for it’s unexpected use of colors, patchworks, patterns and volume that comes from Kenzo’s own heritage. It is a celebration of youth culture and values through a vibrant and edgy aesthetic. Rather than being just a form of clothing, it is a form of art; “the art of Kenzo is a joyful celebration of life itself. Exuberant colours, wild prints and cultural versatility all come together to form the luxurious and extravagant world of Kenzo where the final limit is your imagination Using the pre-existing recognition of Kenzo, our goal is further increase and establish brand awareness in Dominican Republic. In order to achieve this, we chose a high traffic vacation location, Punta Cana, specifically Tortuga Bay. Using the strong ties between America and South American industries to establish ourselves there.
History 1964 Kenzo Takada moved to Paris. 1972 Kenzo's show at the Gare d'Orsay was very successful. 1975 His first collections were shown in Tokyo. 1976 Flagship store opened up. 1977 Kenzo presented his collections in New York. 1979 His collection was shown in Zurich for the first time. 1983 His first men's collection was launched. 1987 Kids and home collection was launched.
1988 Kenzo’s women’s perfume line began with Kenzo de Kenzo, Parfum d'été, Le monde est beau and L'eau par Kenzo. 1990 Kenzo's empire expanded to include jeans, children's wear and other products. 1993 His label was bought by LVMH. 1999 In October 1999, Kenzo presented his final show, handing over the design to Giles Rosier. 2003 Antonio Marras is announced as artistic director of Kenzo's womenswear. 2011 In July 2011, LVMH announced the appointment of Humberto Leon and Carol Lim as Creative Directors of Kenzo.
Company Profile Currently established in France, Kenzo, an LVMH owned brand that aims to produce luxury products at a much more affordable price. It was founded in Paris during 1970 by Japanese designer Kenzo Takada and is currently being creatively lead by Californian natives Carol Lim and Humberto Leon, who are also the founders of fashion retailer Opening Ceremony. The brand defines itself for it’s unexpected use of colors, patchworks, patterns and volume that comes from Kenzo’s own heritage. “With its abundant prints, vibrant color combinations and cultural influences from all over the world, Kenzo offers a luxuriant and versatile world where spontaneity takes control. Welcome to the urban jungle!” Exuberant colours, wild prints and cultural versatility all come together to form the luxurious and extravagant world of Kenzo where the final limit is your imagination. Head designers and creative directors: Humberto Leon and Carol Lim (since 2011) CEO: Eric Maréchalle Current Revenue: 219M USD Revenue Growth: 2013 increase 30% 2015 increase 9% 2016 increase 5%
SWOT Strengths Strong brand identity, can recognise easily High quality Affordable luxury in comparison to other luxury brands French based with Japanese culture - global market Sense of worldliness & travel Wide range of product categories (Unique brand identity - Mix of high fashion and street-style aesthetic. Every season’s pattern becomes another logo, it is easy to recognise, people can know you wear Kenzo without the brand name on it. High quality fabrics, garments and designs - although luxury, more affordable as opposed to other luxury brands - even within LVMH Founded by Kenzo Takada, the brand is culturally diverse, bringing in inspiration from Asian and European cultures - a positive and unique edge compared to its competitors.
Weaknesses Price level does not fully appeal to younger target market Silhouettes & designs would appeal better to the young adult market, rather than career women Current market is limited Level of prestige and status is less in comparison with other LVMH brands Opportunities Push further in the garment industry Reduce price range to appeal to younger market Or, appeal to niche market of rich, young adults Events Use of influencers or celebrities Collaborations with other brands (Used to be better known for its fragrances and beauty products rather than ready to wear and accessories. Since it produced the ‘tiger’ collection and some trendsetter wears, it appears in many famous street-snap photos. The tiger image became a trendy symbol. Every season it has a new fashion pattern, such as ‘eye’ and ’fish’ - good opportunity to keep pushing in this direction)
Threats Target market is between ages of 30 - 45 It does not suit their current market mix strategy Fast fashion At the moment, their current plans for growth include the expansion of their products to be more technological, collaborate with different designers and projects, and even though they have expanded much globally, they plan to expand even more.
BRAND AS A PRODUCT
BRAND AS AN ORGANIZATION BRAND AS A SYMBOL
Unique Expressive Traveler Eclectic Artsy
BRAND AS A PERSON
Brand Identity Matrix
Innovative Fresh Global Diverse Fun Original
Current Position in the Market
Current Distribution Sells in: Brick and Mortar (110 stores around the world) E-commerce Secondary Retailers (Nordstrom, Neiman Marcus, Barneys New York, Bergdorf Goodman, etc) 406 employees around the world 28 different nationalities
Communication and Promotion - High distribution fees: rent to develop stores in prestigious shopping areas - High investment for promotional activities such as runway shows & fashion films and editorials. - Very present in all social media outlets - Twitter, Youtube, Instagram, FB & Google Plus. Use these outlets - interact with customers & share content. - Several film & video campaigns (in collaboration with many different advertising agencies) - Unclear budget as to their print advertising - but usually in famous magazines & publications - They market more digitally than through the use of print marketing - digital marketing allows for cheaper spending
Punta Cana, Dominican Republic State of the Industry - Current GDP: more than 68 billion USD - Population: more than 10.5 million - Urban population growth has been rising steadily every year - Merchanside trade: 39.1% of GDP -Import of goods & services: 29.3 -Tourist destination - Populated with a mixture of tourists and locals - Luxury destination
PESTEL Political Factors - Democratic Republic - Battling government corruption - Foreign trade policy - Free trade zones - CAFTA-DR: 1 March 2007 - Trading partners: US, Canada, Western Europe, and Japan Economic Factors - Large diversified/ vibrant economy - One of the leader economies - LVMH’s impact on globalisation - Current GDP - more than 68 billion US$ - Battling government corruption Social Factors - Population: 11 million - expanding middle class - Costal development is significant - Poverty levels - less than 40% - Large & growing tourist sector - Influenced by US culture - Appearances matter - Festivals: Carnival, EspĂritu Santo
PESTEL Technological Factors - Relatively unpopular cell phone usage - with 83 plans per 100 people - In line with global median of internet users - Technology is prevalent - Community Technology Center (CTC) program Environmental Factors - Intended Nationally Determined Contribution (INDC) - Dec 2015 - Los Cocos wind farm - Uncertain market for renewable energy development - High level of conservation effort - Average contributor of CO2 emissions Legal Factors - Imported merchandise subject to tax - Cosmetics & skin care products require an import license - Caribbean Basin Economic Recovery Act (CBERA) January 1, 1984
Direct Competitors DIESEL Description & History -Italian retail clothing company specializing in denim, footwear and accessories. - Founder Renzo Rosso began stitching jeans on a sweing machin when he was 15 years old. He would wear them himseld and sell them to friends for 5 Liras. In 1976 he began working for a clothing manufacturer calles Moltex. After being there for 2 years he used a loan from his fther and bought 40% of the company which later changed its name to Diesel. Scope & Size -Private company under the art direction of Nicola Formichetti - 1.3 billion Euros in revenue Pop-Up Shop in Brooklyn
ONDA DE MAR Description & History Luxury swimwear brand founded in 1999 in Medellin, Colombia. This brand designs their garments with a Latin tropical flair and it is available globally. Editorially is has become widely known for it’s appearances in top magazines such as Vogue, Marie Claire, and Cosmopolitan. Not only that but their designs have even appeared in Victoria’s Secret catalogs. This luxurious brand is also offered in the best department stores in the U.S. such as Saks Fifth Avenue, Barneys and online retailers like Moda Operandi. Furthermore, in 2006, OndadeMar was acquired by Tribeca. Scope & Size -170 employees -35.1 million USD in revenue No Pop-Up shops
OSCAR DE LA RENTA Description & History After many years working for several very well known designers Oscar de la Renta founded the luxury brand in 1965. This is a world-renowned fashion house, admired for the couture-like ready-to-wear collections and has established a reputation as one of the most respected fashion houses in the industry. His brand is known for being worn by Hillary Clinton, Jackie O, and many modern celebrities. It gets featured in major magazines like Vogue and Marie Claire almost monthly. It’s distribution is very limited, extending itself only to its personal stores and online store as well as exclusive retailers like Bergdorf Goodman, Neiman Marcus, Saks Fifth Avenue, and online retailers such as Net-A-Porter and Moda Operandi. Scope & Size -240 employees -150 million USD in revenue No Pop-Up shops
Indirect Competition RESTAURANTS - SBG Cafe: opening a new one in two months & we know that it will be a hit because they have one in Santo Domingo already and it is very successful - La Yola: AAA Three Diamond Award-winning Serves fresh Mediterranean cuisine & seafood Beautiful views Bamboo: AAA Four Diamond Award-winning Bamboo Restaurant - Unique menu mixes locally sourced food with Mediterranean influences in a setting designed by Oscar de la Renta. Vegetables are grown in their own organic gardens could be a really big competitor, as they seem to be in the luxury sector of the food industry. CLUBS - Imagine: club in a cave. they have four different stages or what they call “Caves” - could take away the younger side of Kenzo’s customers - Coco Bongo: club with a show. they have a full show production within the club itself. - a remarkable unique concept that will definitely take customers away
Target Consumer DEMOGRAPHICS - Upper middle class to elite class - Income starting at $80,000 USD - Age range 20-40 years old - Both male and female - Students - Business Professionals - Housewives PSYCHOGRAPHICS - Very social, frequents bars and restaurants - Experiments with fashion - Travels - Bright and bold style - Shops in Zara, Mango and H&M - Also boutique shops around the capital in stores like LMH, Firmas and Nubah - Vacations at the beach - Lives or aspires to live a luxury lifestyle BEHAVIORAL INFO AND TRENDS - Shops twice a month on average at the Kenzo store - Always attracted to the new collection - Is aware and accepts affordable premium prices - Present on social media - Somewhat materialistic mentality that goes accordingly with the materialistic society - Follow trends religiously but also wants to experiment with fashion and thinks they are doing very well because what they wear is designer - Pays attention to brand reputation
TARGET MARKET TOURIST
Sophia Age: 22 Gender: Female Style: Simple, casual and feminine Education: Interior Design / Parsons NYC Works at: Architecture Firm in Chicago, IL Income: 60k-80k Lifestyle: Traveling, cooking, Pilates lover Language Spoken: English Vanessa Age: 27 Gender: Female Style: Stylish, edgy, trendy yet classic Education: Graduated from NYU / Psychology Works at: Medical center as a Psychologist in New York City Income: 80k-100k Lifestyle: Yoga lover, vegan, enjoys to visit museums Language Spoken: Spanish/English
LOCAL
Pedro Age: 35 Style: Contemporary Education: Architecture / Universidad Iberoamericana Works: Architect / Interior Designer Income: 600k Lifestyle: Traveling, Art Lover, Foodie, Diving Languages: Spanish (Primary), English
Andrea Age: 28 Style: Fashion Forward, Eclectic Education: Marketing / Universidad Iberoamericana Works: Blogger / Housewife Income:1m+ Lifestyle: Traveling, Yoga, Zumba, Lounging at her Punta Cana mansion on the weekends Languages: Spanish (Primary), English, French
Tortuga Bay AREA ATTRACTIONS - Beach: Macao Beach, Piedra Blanca, Juanillo Beach - Surfing: Macao Surf Shop - Snorkeling: Organized by Tortuga Bay Hotel Concierge - Clubbing: Imagine, Coco Bongo - Restaurants - Spa: Six Senses Spa LOGISTICS AND INFRASTRUCTURE - Located in the most luxurious part of Punta Cana, Tortuga Bay - Surrounded by wealthy community and tourist attraction - Golf Cart Parking - Airport is 20 minutes away - Westin Hotel is 10 minutes away - In the heart of Tortuga Bay Resort Hotel - 20 minutes away from Punta Cana Village
HUMAN RESOURCES - 1 International Manager from leading Kenzo store Salary: DOP$140,000.00 - 3 Locals as store Sales Representatives: Salary: DOP$40,000.00 - 2 Local Atelier Seamstresses Salary: DOP$25,000.0 Benefits: Health Insurance Plan Contribution TRADE REGULATIONS CAFTA-DR: Free Trade Courrier: DOP$5.50 per pound Import taxes : ITBIS = 18% = VAT or Value Added Tax
Store Design
Costs INTERIOR FIXTURES - Ceiling Sheetrock and Divisions = DOP$411,507.50 - Televisions: 12 x DOP$256,999.65 = DOP$3,083,995.80 - Plywood Sections for Shoes and Accessories: 18 x DOP$1,950.00 - Bathroom Marble Furniture = DOP$68,540.00 - Bathroom Utilities = DOP$75,000.00 - Flooring and Plinths: 110 sq. ft. x DOP$1650.00 per sq.mt. = $181,500.00 - Light Fixtures = DOP$468,414.00 - Tree = DOP$12,000.00 - Sound System = DOP$55,000.00 - Mirrors = DOP$137,000.00 - Racks= 14 x DOP$4,850.00 = DOP$67,900.00 - Mannequins = 4 x DOP$12,000.00 = DOP$48,000.00 - Air Conditioning = 5 TONS x DOP$45,500.00 = DOP$227,500.00 EXTERIOR FIXTURES - Lawn Letters = DOP$210,000.00 SAFETY AND SECURITY - Camera System: 16 Weather Proof, Indoor & Outdoor with Nightvision 100ft. Motion detection and time schedule 1080p Resolution Price = DOP$80,000.00 - Alarm System Price = DOP$40,000.00 - Security Guard: Salary: DOP$13,000.00
Assortment Plan
Communication & Promotional Plan
Financial Plan
Financial Plan
KENZO POP-UP SHOP FASM 410 PROF. CANNATA CAROL D’SOUZA FRANCOISE URDANETA INES ALVAREZ MARIA ZAPATA INTERIOR DESIGN NAINIE DANI