Les Petits Enfants Mommies and Newborns showered in luxury! By: Marija Pejkovic
Vision: Our objective is to satisfy the motherly needs of the modern, trendy, and sophisticated woman by offering her a wide array of luxurious essentials for her child.
Mission: Les Petits Enfants does this by offering an array of quality merchandise with a unique fashionable flare.
Concept: This newborn boutique will offer the most luxurious items a newborn child could have. It will be located in Chicago, IL on Oak Street. The boutique will feature items such as clothing, strollers, car seats, diaper bags, toys and furniture that are high in quality and exclusive. This boutique will cater to the mom who wants to splurge on her little one with the most luxurious products around.
Culture: At Les Petits Enfants, we believe that our clients are our number one priority. We will accommodate you in every which way possible so you are completely satisfied. We will go above and beyond to help you with what you are looking for and help you get what you need in a timely manner. We want to treat you as if your time is highly valuable and give you the best one-on-one customer experience from the moment you walk in our doors.
Customer • • • • •
24-40 Year old mother Seeks current quality merchandise with a fashionable flare for her little one Modern, trendy, sophisticated woman Takes pride in purchasing high quality products Assertive, confident, cutting edge-looking for the same status in her children’s products and clothing • • • • • • •
Loves to go shopping Attends social events Married Loves to splurge on her children, her husband and herself Takes yoga classes Enrolls kids in gymnastics Lives in the city or upper-middle class suburbs
Competition Les Petits Enfants does not have any competition with childrens boutiques within the Chicagoland area that carry upscale baby products, the only store with an array of products such as Les Petitis Enfants would be Babies “R� Us.
SWOT: External Forces Competition –
• •
– • •
Opportunities Increasing online sales Expanding private labels
Threats Low entry barriers Larger competitors with established financial, distribution and marketing resources
Economics –
• •
– • •
Opportunities Increased demand for baby-juvenile products Lower price points which helps stretch the consumers tight budget
Threats Low consumer confidence Increasing retail rentals
SWOT: External Forces Continued Technology –
• •
– • •
Opportunities Increasing e-commerce market Baby registry
Threats Ready-to-wear children’s fashion shows on competing retailers websites Competing retailers giving the option of pre-order products for the following season (apparel)
Society Opportunities Positive demographic fasctors-11% growth rate of children Accurately forecasting demand of products
Threats Miscalculation of customer’s product preferences
SWOT: Internal Forces Demographics –
• •
– • •
Strength Target customers shop whenever they are in need of a particular product Target customers like to splurge on their children
Weakness Parents buy luxury price but not luxury products Babies “r” Us offers products specified towards infants without focusing much on the expectant mothers
Geographics –
• •
– •
Strength Stores located in regional shopping malls, freestanding streets locations International Stores
Weakness Locations are in regions instead of counties
SWOT: Internal Forces Continued Behavioral Buying Traits –
• •
– • •
Strength Customers buy what they need at whatever price they have to pay Customers are always staying on top of the newest products, therefore always buying new arrivals that come into the store.
Weakness Low traffic Low average spend by consumer
Product Mix –
• • •
– • •
Strength Licensing agreements to expand product lines Babies “R” Us designs some of their own merchandise Babies “R” Us carries many products and categories
Weakness Company’s merchandise lacked appeal in ’06 Company doesn’t offer a wide range of merchandise for expectant mothers (apparel, accessories, etc.”
SWOT: Internal Forces Continued Pricing Strategies –
• •
– • •
Strength Distributing only in retail and online helps control pricing Outlet Babies “R” Us stores have a large percentage of retail markdowns
Weakness Lower price points on new product lines, affects sales and further markdowns Long periods of markdowns
Promotion –
• •
– • •
Strength Rewards “R” Us Gift cards with no expiration date
Weakness High markdowns Untimely product delivery results in lower than expected sales and markdowns
SWOT: Internal Forces Continued Distribution –
• •
– • •
Strength Strong vendor relationships Distribution through company retail stores and online
Weakness Product recalls One week of delivery time after an item is bought and shipped from online
Employees/ Management Structure –
• •
– • •
Strength Each store has managers, assistants, associates Each region has a district manager and regional manager
Weakness Shallow skill base of associates hired at entry level Not many department specialists
Merchandise Assortment clothing, strollers, car seats, diaper bags, toys and furniture Clothing: (Boys, Girls, Neutral) First favorites, jeans, matching sets, bodysuits, tops, outerwear, sweaters, one-pieces, dresses, pants, leggings, skirts, sleepwear, shoes, accessories Baby Gear: Car seats, diaper bags, strollers, bassinets
Merchandise Assortment Continued Nursery: bedding, cribs, furniture, mattresses, baby blankets
Toys: Crib toys, rattles, teethers, dolls, gift sets, interactive toys, soft & plush toys
Location •
Store Location –
• •
Cross streets
– Rush Street & Oak Street, Oak Street & Michigan Avenue
Dimensions of entire space (total square footage) –
• •
– 1457 square feet of store room, 650 square feet of back room.
Shape of store Long rectangle
Location of entrances/exits –
•
2,107 Square Feet
Dimensions of separate spaces (square footage of bathrooms, square footage of store rooms) –
•
49 East Oak Street, Chicago, IL 60611
Main entrance and exit is at the front of the store. Back exit is in the back of the store through the ally.
Locations of windows –
One large show window at the front of the store. Good visibility from the street for being a lower level space.
Location Continued: •
Monthly rent, rental/square foot –
•
Common area fees: Maintenance, marketing, etc. –
•
•
– 10% of the gross lease amount multiplied by the length of the contract
Expenses incurred by leasee cosmetic renovations
Landlord obligation/commitment for renovations –
•
utilities, etc.: Lease, water, power, telephone, wages, advertising/marketing, office supplies and insurance.
Allowable renovations –
•
First months lease and one advance lease for the next month.
Realtor fees –
•
Administrative, maintenance, repair and replacement of lighting, plumbing, electrical wiring, HVAC.
Security deposit –
•
$120/SF/Year
landlord is not obligated to maintain or carry out cosmetic renovations
Miscellaneous
– On Oak Street with high end boutiques (Hermes, Tory Burch, Kate Spade, Piazza Sempione, Bon Point, Harry Winston, Paul Stuart)
Store DĂŠcor and Visuals
There will be very subtle colors within Les Petits Enfants, as shown in the pictures below. I will have no mannequins in my store but I will hang clothing from the walls in outfits. The store will look very polished, clean and organic. Displays will be very classic and simple with a vintage flair.
Store DĂŠcor and Visuals Continued
Planagram
E-Business Les Petits Enfants has a website that features all of their product categories and options to customize products to their preferences that are sold in store Facebook and Twitter presence will also be available for customers to share their interest in the brand with others
Marketing • Place – Products will be distributed from our location in Chicago, IL and from our website- www.lespetitsenfants.com
• Price – Store Markup: 60% – Store Markdown during promotional events : 30%, 40%, 45%
Promotions and Events • Les Petits Enfants will have promotional events, twice a year, lasting one month each. There will be a summer and winter sale that will discard past season merchandise and allow us to bring in merchandise for the transitional seasons of fall and spring. • Les Petits Enfants will host events for new product arrivals. If customers bring a friend to any of these events they will receive 10% off their purchase. – Mother’s Night Out, Champagne and Diapers, Baby and Me
Advertising • We will advertise on our website new merchandise and the designers who created them. We will let customers experience the products online by offering integrative technology that will allow them to view the products in video format, giving them a 3-D look. This will show details and allow the customers to see the products in motion. Special events and promotions will also be posted on our website, allowing customers to be in the loop. • We will have a presence in local Chicago magazines with ads featuring our name and products that we offer at our store. – – – –
Conscious Choice CS Magazine Chicago Parent Modern Luxury
Public Relations We will network through Facebook and Twitter as well as sponsor local social events that have an emphasis on fashion and children in order to get our name out in the Chicago retail industry. We will provide clothing and accessories for children's fashion shows and help volunteer. Our website will cost $150 a month based on the design, domain name, web hosting and shopping cart that are needed to keep the online store running.
Advertising Calendar and Budget Promotional Event
Month
Estimated sales Total cost for for event event
Summer Sale
June
$100,000
$2500
Winter Sale
December
$242,000
$3000
TOTAL:
2 Months
$342,000
$5500
Employee Motivation We will motivate our employees by giving them freedom, responsibility and authority in order to meet company objectives. They will be acknowledged for their contributions and will be given monthly touch bases in order to provide feedback on their performance and goals.
Goal Setting Sheet
Associate
Goal W1
Edita
Goals By Associates (in thousands) December 4, 2011-December 31, 2011 Actual
Goal W2
Actual
Goal W3
Actual
Goal W4
Actual
Goal Total
Actual Total
12
12
13
10
16
18
9
7
50
47
Dalia
12
11
13
16
16
18
9
6
50
51
Gita
12
13
13
13
16
16
9
9
50
51
Kimber
11
10
12
12
15
19
8
13
46
54
Leslie
11
12
12
12
15
17
8
8
46
49
Totals By Week
58
58
63
63
78
88
43
43 $242
$252
Store Goal
Selling Programs: Employee Bonuses and Incentives Employees will earn extra commission for going above sales goal brackets: – > 25,000 = 1% Commission (Monthly) – > 50,000 = 2% Commission (Monthly) – > 100,000 = 5% Commission (Monthly) – < 450,000 = 5% Commission (Yearly)
Organizational Management Structure
Human Resources Policies Ethics Les Petits Enfants is synonymous with quality, excellence and respect for all individuals. The customer is the core of our business. We expect all employees to value and respect the diversity of every individual whom we service, at all times and during all situations. We will continue to grow our business by building relationships with our customers and exceeding their expectations on every occasion. We look forward to doing so by treating all customers with dignity and providing a courteous and respectful experience.
Human Resources Policies Continued • Hourly Rates and Bonuses
– Employees will be paid salary with commission bonuses of 1%.
• Discounts
– Employees will receive a 40% discount off the retail price at all times. It is applicable to all products sold in our store and website. The discount is also applicable to all discounted sale goods.
• Trainings
– Training will be paid and will be offered on-site.
• Employee Manuals
– Employee manuals will be given at the time of hire, they are to be read and signed and given to the general manager before the first initial day of work. Employee manuals will be updated accordingly and disbursed through the company if changes are made.
Schedule Sheet Les Petits Enfants Weekly Schedule Week Of December 4, 2011 Prepared By: Edita Name
Sunday
Monday
Tuesday
Wednesda y
Thursday
Friday
Saturday
Total
Edita
Off
9-5
Off
12-8
9-5
12-8
9-5
40
Dalia
9-5
Off
12-8
9-5
Off
9-5
9-5
40
Gita
9-5
12-8
9-5
12-8
12-8
Off
Off
40
Kimber
9-5
10-6
10-6
Off
10-6
Off
9-5
40
Leslie
9-5
12-8
Off
10-6
Off
10-6
9-5
40
Merchandise Classification Category
Products
Infant Tops
(boy, girl and neutral) matching sets, short sleeves, long sleeves, tank tops, body suits, outerwear, sweaters, one-pieces, sleepwear, dresses
Infant Bottoms
(boy, girl and neutral) jeans, corduroys, athletic pants, shorts
Toddler Tops
(boy, girl and neutral) short sleeves, long sleeves, tank tops, outerwear, sweaters, sleepwear, dresses
Toddler Bottoms
(boy, girl and neutral) jeans, corduroys, athletic pants, shorts, skirts, capris
Child Tops
(boy, girl and neutral) short sleeves, long sleeves, tank tops, outerwear, sweaters, sleepwear, dresses
Child Bottoms
(boy, girl and neutral) jeans, corduroys, athletic pants, shorts, skirts, capris
Shoes & Accessories
(boy, girl and neutral) boots, gym shoes, trainers, flip flops, flats, sandals, hats, gloves, scarves, hair accessories
Baby Gear
Car seats, diaper bags, strollers, bassinets
Nursery
Bedding, cribs, furniture, mattresses, baby blankets
Toys
Crib toys, rattles, teethers, dolls, gift-sets, interactive toys, soft and plush toys
Monthly Sales Plan Month
Amount
January
$24,000
February
$32,000
March
$59,000
April
$41,000
May
$47,000
June
$56,000
July
$48,000
August
$78,000
September
$52,000
October
$81,000
November
$166,000
December
$91,000
TOTAL:
$775,000
Sales Plan by Categories Category
% of Total Yearly Sales
Amount
Category
% of Total Yearly Sales
Amount
Clothing
25%
$193,750
Nursery
30%
$232,500
-Infant Tops
13.9%
$27,000
- Bedding
3.9%
$9,000
-Infant Bottoms
8.6%
$16,700
- Cribs
28.9%
$67,000
-Toddler Tops
17%
$33,000
- Furniture
59.4%
$138,000
-Toddler Bottoms
12.9%
$25,050
- Mattresses
5.3%
$13,000
- Child Tops
20.2%
$39,000
- Baby Blankets
2.5%
$5,500
- Child Bottoms
17.1%
$33,000
Toys
15%
$116,250
- Crib Toys
12.2%
$14,250
- Accessories
10.3%
$20,000
- Rattles
10.8%
$12,500
Baby Gear
30%
$232,500
- Teethers
10.8%
$12,500
-Car Seats
28.2%
$65,500
- Dolls
14.6%
$17,000
-Diaper Bags
12.9%
$30,000
- Gift- Sets
16.3%
$19,000
- Strollers
46%
$107,000
- Interactive Toys
21.5%
$25,000
- Bassinets
12.9%
$30,000
- Soft & Plush Toys
13.8%
$16,000
Operations Business Hours of Operation – Monday- Friday • 10-8
– Saturday-Sunday • 10-5
Security – We control access to our premises in order to protect the property and safely of both employees and the company. Employees may be issued access or alarm codes or keys to the company premises. They must be kept strictly confidential and should not be given to any other employee for any reason. All employees are responsible for securing their work areas, company premises and confidential materials.
Operations Continued • Loss Prevention • Inspection of Property
• We have the right to conduct employee inspections. All employees are required to open bags, packages, handbags, briefcases, backpacks, lunchboxes, etc. for inspection by management upon leaving the store for any reason.
• Silent witness confidential helpline: helps protect employees and the company's assets. This program is designed to guarantee complete anonymity to any person wishing to report business abuse including: • Theft of company or employee property • Serious violations of company policies • Activities that may result in financial loss or physical harm to the company or its employees • Customer relations • Safety issues
Service Levels • Merchandise Holds
– Merchandise can be held up to 3 days (48 hours) Extensions need manager initials – Name and phone number need to be taken at the time the item is placed on hold – Sale merchandise cannot be placed on hold
• Returns
– All returns must be signed by a manager or key holder – Regular price items can be returned within 30 days of purchase for a refund of payment with original receipt – Sale price items can be returned within 14 days of purchase for a refund of payment with original receipt – After 30 days or no receipt- managers discretion
Service Levels Continued • Clientelling – – – –
Employees must contact at least 5 clients per week Employees must write and send thank you notes Employees must reactivate clients who haven’t shopped in 7 months Employees must keep track of top clients and develop ongoing relationships with clients
• Customer Service – Employees are friendly when acknowledging and greeting customers. They are motivated and act as a team player. They provide the customer with the upmost positive experience. They sell multiple items and offer alternative choices. They follow through with customers and special orders.