A FINAL MAJOR PROJECT THE BUSINESS PLAN BY ZACHARIA HOPKINS 1
CONTENTS
*a list of the contents, chapters or sections given at the front of a book or periodical.
THANK YOU FOR AIDING THE PROGRESSION OF THIS PROJECT adam guy lewis page prayer mak sheila griffiths alison rapsey sam ainsworth 2
THE EXECUTIVE SUMMARY page 4/5 THE CONCEPT page 6/9 THE CONSUMER page 10/13 THE MARKET page 14/17 THE COMPETITORS page 18/27 THE UNIQUE SELLING POINT page 28/31 THE SWOT ANALYSIS page 32/33 THE BRAND ADJACENCY MAP page 34/35 THE BRAND ONION page 36/37 THE MARKETING STRATEGY page 38/41 THE OPERATIONS page 42/43 THE FINANCIAL BACKGROUND page 44/51 THE CONCLUSION page 52/53 THE REFERENCES page 54/55
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EXECUTIVE SUM MARY *a short section of a document that summarises a report in its entirety.
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JAKU is an innovation company focusing on improving consumers lives with their first product titled the ‘Novus’. The Novus is a smart jacket, it has an embedded “module” in the cuff of the jacket that will be able to relay accurate heart rate data to an app on a smartphone, where it will display a variety of different health and fitness based statistics. The concept was born from a generation of consumers constantly wanting the next best thing. With various initiatives all over the world aiming to implement revolutionary technology into people’s daily lives. The Singapore Smart Nation, a government funded program installing technology to everyday tasks; or Project Jacquard, a Google x Levi’s collaboration implementing various smart phone capabilities into the cuff of a jacket. Extensive market research showed that there is an existing market for wearable technology, with East Asia being the leaders in the field (Jones, 2017). Studies show that over 42million wearables were sold in Asia alone last year (Jones, 2017). There is a strong demographic for wearables all over the world and JAKU will tap into it through various innovative marketing methods such as distributing VR headsets where users will be directed to JAKU’s VR campaigns, as well as pop-up stores across the globe. Smart clothing is currently a small market - JAKU’s 2 closest competitors are both fitness based products (a sleeve and a sports bra), they’re also both solely based in the USA. Pop-up stores across the globe give JAKU the competitive edge to tap into a ripening market untouched by its competitors. The module installed in the jacket will display statistics on the smartphone app including workout intensity, stress level, UV levels, daily steps and calories burnt. By installing this feature onto an everyday garment it will encourage wearers to lead a healthier lifestyle. This revolutionary technology even has the capability to contact emergency services with a 15 second cancellation timer should any irregular heart rate activity occur. JAKU isn’t just a clothing brand, it is a company dedicated to bringing innovative and life enhancing ideas to the fore-front, with the primary objective of bettering todays society. It has the potential to save hundreds of lives.
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THE CONCEPT *an idea or invention to help sell or publicize a commodity.
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JAKU is a company dedicated to bringing innovative and life enhancing ideas to the fore-front, with the primary objective of bettering todays society. JAKU’s first mission is to create a highly wearable and functional garment with the capability of changing the way people live their lives and offering technology that could also save their life if the circumstances arose. JAKU’s aim with ‘The Novus’ jacket is to merge high quality outerwear with modern day technology to create an everyday garment with health and wellbeing qualities. The jacket will come equipped with a rechargeable module, a small tracking device capable of monitoring users heart rate; it specialises in several features that can track how the wearer is living their life, giving them a vast array of statistics about their health and fitness through an easy to use and enjoyable smartphone app. This jacket has the potential the change the way people live their lives. By seamlessly keeping tabs on wearers health and wellbeing, it gives them the chance to lead a more healthy and active lifestyle. The Novus has the capability to monitor heart rate data through invisible biometric sensors that connect to the wearers smartphone via bluetooth. By using a compression band on the wrist, data will be gathered through electrocardiogram (ECG) technology to monitor heart rate activity, this detects the electrical activity produced by a heartbeat. ECG technology is considered the most accurate way to measure heart rate data, it’s even used by the medical industry (Sawh, 2016). Monitoring heart rate data and tracking wearers movement enables the module to display a selection of statistics on the wearers smartphone such as: work out intensity, daily steps, location, steps taken and miles travelled. Alongside these day-to-day statistics, it will even be able to detect heart inflammation, coronary heart disease as well as contact emergency services should any extremely irregular circumstance occur. Albeit, this feature will have a 15 second timer where the wearer can cancel the call to the emergency services, as well as a full cancellation option in the settings. The Novus is the first jacket of its kind to combine daily wearability with revolutionary health & wellbeing technology. The ability to measure these variables are what will make this jacket essential for some consumers. With the potential to save lives, this technology can be applied to all kinds of clothing, providing health and wellbeing benefits to everything we wear. The ability to keep regular tabs on our health through our everyday clothing is technology the world is heading towards (Perez, 2017 CRUNCH JACQUARD), JAKU will be the first brand to release a highly fashionable and functional jacket with these capabilities.
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HOW & WHY?
This concept was realised and born after various trends were emerging in the national news. The ability to monitor wearers health regularly through clothing is the first step to take clothing to the next level. Trends opening a market for this product include the Singapore Smart Nation initiative (SSN). It is a government funded program with the aim of implementing revolutionary tech into its residents daily lives. Initiatives may include a cashless society, doctor appointments over the internet as well as homes fully operated through smart phones. There is also an emergence of smart clothing entering the mass market. The Google x Levi’s project jacquard project (see competition for more) merges high quality craftsmanship from the worlds most reputable denim brand (Yohn, 2015), with innovative tech from the worlds 2nd highest valued company (Forbes, 2017). These two corporate giants collaborated on creating a jacket with various social aspects throughout the garment. Finally would be the upcoming Olympics; the Olympics are going to be held in Eastern Asia for the next three terms. A 2015 Mintel report found that 1 in 12 say they buy more sports items after watching live events (Mintel, 2015), and as Eastern Asia is the most accepting demographic with regards to technology (Carter, 2017), it seemed the perfect time to create a concept involving a health based tech product, released around the time of the upcoming Olympics for the most tech accepting demographics (Carter, 2017).
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A 10
THE CONSUMER *a person who purchases goods and services for personal use.
After extensive research into emerging trends, it was apparent there was a new sparked interest in tech enhanced living. With the 3 upcoming Olympics being held in Eastern Asia, smart clothing with health and wellbeing qualities is the next step in bringing the future to realisation. This has formed two new Generations of consumers called Gen T and Gen J. Gen T are a tribe within Generation X residing in Europe, they are aged between 40 to 50 year olds. They are a tribe with a wide variety of different friends. These consumers have, as well as their day-to-day friendship group, another group of friends specifically from this tribe that will meet up weekly to partake in sporting activities such as running, cycling, mountain biking or hiking. These consumers like to exercise in numbers and have a chat while they do it. Buying the most expensive gear for these activities is part of the parcel with these consumers, of which like to have the most up-to-date gear to accompany them on their journeys, whether it be their bike, clothing or technology. Gen T are in stages 3 and 4 of Maslow’s Hierarchy of needs, Full Nest II and Empty Nest I in the Family Cycle and C1 type 9 on the Acorn Classification. They are married with children, looking to lead by example and live as long as they can so they may have a fruitful life with their family, or slightly younger with no wife and kids.
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B THE CONSUMER
*a person who purchases goods and services for personal use.
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A tribe consisting of Millennials, Gen J is a tribe based in Eastern Asia consisting of a younger demographic varying from 25-35 also interested in living a healthier lifestyle. This tribe is more intone with what’s really going on in the world, in terms of politics, global warming, lifestyle choices and technology. Technology for these consumers is more a necessity than a commodity, regularly investing in new models of phones, VR, wearable tech and home assistant devices, fascinated by the lengths this technology can take us and constantly on the look-out for more. Function and practicality are essentials with these consumers. They keep active through cycling, running, extreme sports such as skiing and/or snowboarding or regular visits to the gym. An obsession with wanting more and wanting better is what drives this tribe; they’re ambitious and currently working at well paid jobs with a generous disposable income. Gen J are not ready for marriage and parentdown; they feel it might get in the way of their career, but some have been in long-term relationships or in new relationships. They are at stage 2 of Maslow’s hierarchy of needs, Bachelor stage I of the Family Cycle and E2 type 16 on the ACORN classification.
Due to the futuristic and experimental nature of this product the niche tribes are more exclusive than most. Consumers need to have either an open mind or a desire for outdoor sports and willing to spend money on a jacket priced higher than regular outdoor jackets. Consumers like these are hard to find, but this jacket will be the first of its kind - with the right marketing plan the interested consumers will be attracted to it almost instantly.
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THE MARKET *the market in which a product or service is sold.
“Asia Pacific is the single largest market for wearables in the world” said Gerard Tan (2017), director for Singapore-based research firm “GfK” Asia at the IFA 2017 Grand Press Conference. A study undertaken by GfK found that wearables in Asia grew by 51% last year, with 42 million smartwatches, fitness trackers and other devices being sold - considering the worldwide estimate is 102 million, Asia Pacific makes up for over 40% of all wearables sold (Carter, 2017). Despite these vast numbers, GfK predicts that rate is expected to slow down to a predicted 38%, although Asia will remain the place where most wearables are sold (Carter, 2017). The middle class is growing rapidly in Asia, and with the demand for technologies its easy to see how Asia Pacific sells more wearables than in the West, where its harder to impress (Hughes, 2017). Due to the speed in which companies were releasing wearables, the rest of the world had generated a “gadget fatigue” but China and Asia Pacific are getting them for the first time (Hughes, 2017). China has become a leading adopter of modern tech over the last decade, from phones and 4k TV’s to Virtual Reality (VR) headsets and wearables (Carter, 2017). The overall penetration is lower than other developed markets, but the vast scale of China’s population makes the market sizes much larger than the rest of the world (Konovalova, 2017). This research shows that there is a vast market in Asia for wearable tech, partnered with highly wearable clothing. 3% of China’s 1.379 billion population are using a wearable device (41.4million) (Carter, 2017). USA has a larger percentage of consumers purchasing wearables, with 22% of their 323million (9million) population buying into the gadgets (Carter, 2017).
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ASIA PACIFIC
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THE MARKET *the market in which a product or service is sold.
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MAMIL’s
Inside Europe exists a mass demographic of middle aged consumers that regularly partake in various different outdoor sports with a large group of friends. Some of these consumers spend so much time in the outdoors they have been branded with titles, most famously the “middle-aged man in lycra”, also known as MAMIL’s. MAMIL’s are a huge demographic residing in all parts of Europe, including Spain, United Kingdom, France and many more (Wynn, 2017 MAMIL FILM). These consumers exist in such large numbers there is even a documentary being made about them, “MAMIL”. “These are middle-aged, middle-class men with careers, families and mortgages” says the films website. This website goes on to say “They are never going to win the Tour de France – yet they spend a huge amount of time, money and energy on cycling.” British Cycling, an organisation that offers membership deals for every kind of cyclist has a membership growth of around 21% year on year (Beale, 2017 REAL REASON MAMIL). British Cycling has posted various statistics about the growth both competitive and recreational cycling has seen in previous years. They goes onto say that since Bradley Wiggins became the first British winner of Tour De France in 2012, 53,000 people have joined (Beale, 2017). The average age for a male member is 41, an age where consumers would be settled down, with secure jobs and a high disposable income to spend on their new found hobbies. Jennie Price, 2017 claimed that her husband has spent over £10,000 since he found his passion for cycling, on everything ranging from gadgets, clothing, bikes and bike parts. This is a huge monetary output to spend on cycling gear alone, its clear to see that price is no issue when it comes to buying gear for these consumers. Residing all across Europe, outdoor sports enthusiasts are a very important demographic when talking about innovative ideas within fitness technology.
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DIRECT COMPETITOR *a company that sells a similar product.
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KOMODO
technologies
Komodo technologies recently launched their “compression sleeve,� a garment of sorts that accurately monitors heart rate activity, which in turn can monitor your sleep and workout intensity. It also contains sensors that can monitor body temperature, air quality and UV rays (Sawh, 2017). The sleeve can also measure stress levels, help detect heart in inflammation and coronary heart disease, the Komodo sleeve is one of the most innovative sporting accessories on the market (Sawh, 2017) The Komodo sleeve has an advantage over other brands, they use electrocardiogram technology (Sawh, 2017) to monitor wearers heart rate data which detects the electrical activity produced by a heartbeat; this method is used by the medical industry and found inside heart rate monitor chest straps. it is currently considered the most accurate method to record heart rate activity (Sawh, 2017). It has major contracts with NASA as well as the US Airforce, establishing themselves within an industry heavily investing in training the next generation. Their technology is widely regarded as one of the most accurate means of heart rate measuring (Sawh, 2017). Despite the success of their technology, it lacks design appeal and its marketing is lacklustre. They have a weak online presence, no well produced promotional footage, a rather basic app, and the website isn’t pushing any boundaries. This garment cannot be worn for day-to-day activities, it will also attract copious amounts of sweat throughout exercise. There are currently no stockists outside of North America, so shipping expenses will be costly for anyone looking to purchase in Europe, Asia or any other part of the world.
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COMPETITOR *a company that sells a similar product.
SUPA
fitness Supa is a fitness brand implementing heart sensors into sports bra’s, branded the “smart bra”, It comes with a waterproof sensor that syncs to the Supa.AI app via bluetooth using invisible biometric sensors, as well as AI installed in the app to keep track of workouts and track a wide variety of measurements such as UV levels and heart rate. The device then connects to the users phone where it will display a variety of measurements, allow the users to set goals for their workouts and give advice when needed. The innovation was a finalist at the Munich awards for Sports & Fitness and Smart clothing. “SUPA is your personal AI. It grows with you. Your moves, your diet, your asthma - what you put in, SUPA analyzes and spits out wisdom. If you can do it with your body, you can do it better with SUPA” (Supa, 2017). Supa has achieved their status as one of the worlds leading innovators with their sports bra AI technology and recently working in collaboration with Mercedes. Despite their efforts, there remains a gap in the market for the same technology but for everyday use. It remains one of the most expensive sports bra’s on the market, retailing for $180, and $120 for the sports bra without the heart rate monitor.
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DIRECT
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TNF has become supremely popular in recent years, not just for outdoor sports enthusiasts. The brand has become a staple for many young fashion enthusiasts through seasonly collaborations with one of the worlds most spoken about brands at the moment, Supreme (Leach, 2017). Their collaboration merges Supreme’s creative flair and TNF’s functional materials to create high quality garments with incredible designs. Some of these pieces have been seen to re-sell for over £1000 (Leach, 2017). Celebrity endorsements also have had a huge impact on the brands recent success. Kanye West has been seen wearing The North Face garments frequently, turning the Nuptse coat, or as GQ called it, the “regular-guy jacket” into a must have for everyones wardrobe (Woolf, 2018) The North Face is not a regular outdoor wear company, it has recently become a fashion statement worn by a variety of different consumers, varying from fashion enthusiasts to sports persons. Their success is due to the fact that they cater to everyone by releasing both simple garments as well as design led garments, resulting in an appeal to a wider demographic.
indirectCOMPETITOR
The North Face (TNF) is a company founded in 1968. They are an American brand that specialises in high performance clothing and equipment for the outdoors. They are the world leaders in their field, constantly pushing the boundaries in outerwear. Their most recent innovation, the Apex Flex Jacket was the worlds first soft-shell rain jacket (McGarrigle, 2017).
*a company that sells a different product in the same market.
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LEVI’S x GOOGLE project jacquard
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INDIRECT COMPETITOR *a company that sells a different product in the same market.
Google has recently collaborated with Levi’s to create Project Jacquard. Although this may look like just a regular jacket, it has one feature that makes it so much more, its smart sleeve. Using special fabrics woven with conductive yarns and motion sensors with materials (Montenegro, 2017 WHAT IS JACQUARD), users have the ability to control their smart phones through a variety of hand gestures that can be programmed onto your smartphone. Your phone connects to the jacket via bluetooth through a small removable “tag” on the sleeve of the jacket. Levi and Google are both renowned, reputable brands. Levi were the first to invent denim jeans in 1873 (Yohn, 2015), and Google, the 2nd most valuable brand in the world (Forbes, 2017). Project Jacquard has a massive financial backing, as well as an already respectable name and status within their fields. As a start-up company, it will be difficult for JAKU to compete with these industry leaders within the wearable tech industry. The main features of the jacket include changing songs, answering calls, getting directions and sending pre-written text messages. It retails at $350, double the amount of the standard jacket, which costs $150. After the jacket had been trialed and tested, many users found the jacket rather gimmicky, and would prefer not to use the features that makes this jacket so much more expensive than its counterpart (Statt, 2017 VERGE WASH).
When this jacket was announced it was met with pure fascination, but the reality wasn’t as good as consumers hoped (Statt, 2017). Nick Statt (2017) believed that despite the huge advancements in technology to create this jacket, some features weren’t useful. The jacket lacked design appeal as well as a price point that was too high for what it was, resulting in the two giants not selling many of the jackets upon release (Statt, 2017). Regardless of its failures, Project Jacquard marked the start for smart clothing to be released to the mainstream.
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A JACKET THAT HAS THE POTENTIAL TO SAVE A LIFE
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USP
unique selling point
*A uniqe selling point, factors that differentiate a product from its competitors
What sets JAKU ahead of its competitors is the coalition of technology and an incredible attention to detail, it is the first jacket of its kind; intertwined with health & wellbeing based technology with the aim to improve the wearers life and potentially save it. The jacket has the capability to contact emergency services, should any irregular activity such as dramatic falls during sports, or heart rate dropping below a certain rate, this can all be deactivated on the app should everything be fine. The ability to keep regular tabs on their health as well as their exercise routine. The technology inside the jacket is also easily replaceable, enabling it to be updated if necessary. Aside from technology, there are an array of other features that make it such an incredible product. Its produced from GORETEX fabrics, making it completely impermeable by water and water vapour, merging the finest materials with well thought out design features, as well as breathability vents to ensure it can be worn no matter the circumstance. This enables the jacket to be worn both day-to-day and throughout workouts. Unlike its competitors, the jacket isn’t limited to one field, whether that be exercise or for day-to-day activities, it is the perfect bridge between the two, easily worn as a stylish jacket as well as an efficient, lightweight workout jacket.
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UNIQUE SELLI Aside from its additional features, this jacket has another strong edge over its counterparts. The Komodo sleeve is a product albeit successful, is only sold in the USA. Despite its US Government contracts, it is difficult to purchase a sleeve if you’re located outside of USA, once you add shipping cost and customs. The marketing behind the product is lack-lustre, with a basic website as well as weak advertising videos. Supa, also a strong competitor has a strong design appeal, but their main product is primarily for women, and they too are only located in USA. Supa is also being backed by Mercedes, resulting in the car manufacturing creating an original video in collaboration with them. JAKU will have its headquarters in the UK, and with regular pop-up stores in locations across the world it has the potential to reach markets all across the globe, the only similar product that could offer the same reach is the Google x Levi’s commuter jacket, which comes with a much higher price point and “useless” technology features (Statt, 2017)
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ING POINT
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SWOT ANALYSIS
*a study to identify its internal strengths and weaknesses, as well as its external opportunities and threats.
STRENGTHS There is no jacket on the market that has built in technology capable of saving lives. As a start-up company gives full autonomy on how JAKU is branded and promoted. It is the first jacket with the capability to monitor wearers heart rates. The jacket is water repellent and resistant, meaning it can be worn in almost any conditions. It connects seamlessly with wearers phones, displaying data with the aim of improving their lives. Its a stylish jacket, making it possible to use as for regular day-to-day activities. Its breathability vents make the jacket highly breathable, enabling it to be worn during sporting activities such as cycling, jogging and more. It uses electrocardiogram technology, the same method used in the Komodo sleeve, currently the most accurate method to monitor heart rate data.
OPPORTUNITY
JAKU has the opportunity to improve wearers life, making them live a healthier and more active lifestyle. The technology installed in the jacket could potentially save wearers lives. Installed with a feature that contacts emergency services if the module suspects the wearer has been involved in an accident, or any irregular heart rate activity It will mark the start of a new beginning for health based technology to enhance clothing. Due to the modules removability, the technology can be regularly updated and reinstalled instead of just purchasing a brand new jacket every time. JAKU’S technology can be applied to various other garments, changing the way we interpret fashion. The technology produced by JAKU can be applied to different industries outside of clothing. JAKU can more than just a clothing company, its a company dedicated to providing innovation within a variety of different fields. Stronger trade deals with different countries could become a reality because if Brexit, making it easier for JAKU to operate outside of Europe. JAKU could find a manufacturer in China, bringing costs down drastically.
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WEAKNESSES Due to the high-quality materials and technology in the jacket, the overall cost will be expensive to ensure profit will be made. The module has to be removed and charged every few days. The technological side may not be advanced enough at the moment to keep up with the idea. The module needs to be removed for laundry. Through research there is a clear market for the product, but making consumers need the product may prove difficult through price. JAKU doesn’t have the same infrastructure as its competitors. It will take time to build industry connections to get cheaper rates on manufacturing. The jacket cannot be completely accurate as it has to be taken off at certain points throughout the day.
THREATS
The technology could be too ahead of its time, resulting in consumers not seeing the need for it yet. It would be possible for the jacket to be copied by bigger corporations with higher budgets. There is a possiblity larger brands have been privately working on the same concept. Due to the lack of funds, JAKU can’t advertise as intensely as it it would like. The jacket is made up of high quality materials and technology, it needs to be ensured that the price-tag doesn’t go above £400. JAKU’s operations outside of the UK may be affected by Brexit JAKU may not be able to get a trade deal in China, making it impossible to trade there.
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BRAND ADJACENCY MAP
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high fashionability
JAKU
THE NORTH FACE
SUPA SPORTS BRA low price high price
GOOGLE x LEVI’S
low fashionability
KOMODO SLEEVE
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BRAND ONION
*the Brand Onion is a format for capturing and communicating the conceptual subtleties of the brand.
BRAND VALUES Offering garments that can change the way wearers live their lives Creating a new way to interpret fashion and clothing Bringing never-seenbefore ideas to the masses Bettering peoples lives through enahanced technology. Producing everyday, stylish clothing that is functional in almost all weather conditions.
BRAND PERSONALITY Innovative Life changing Revolutionary Functional Unique Necessity Wearable User friendly Ambitious Beneficial Idiosyncratic
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BRAND IN-ACTION Interacting with consumers Showcase new talent at the pop-up stores Staying ahead of competitors Offer exclusive collection launches Staying fresh and unique Offering consumers something new Ensuring consumers are happy with their product.
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THIS IS A TABLE. “TABLE”: a set of facts or figures systematically displayed.
Start to release various videos and teasers across social media channels. T These will be paid advertisements promoting the brand
Post the full design & function of the jacket in a 3D rendering with a glitch effect transitioning from outline to full render on social media channels.
january
The jacket will be released to the public, making it available to purchase in selected countries.
JAKU will now start shipping, worldwide.
march february
Release technology specs. Teach consumers about the various features implemented in this jacket. Post the outline renderings of the jacket, showing consumers the a basic version of the jacket, including the material and showcasing its fully waterproof capabilities, as well as a full silhouette. Post the exploded jacket including infographics, fully describing the various features and design aspects.
Brand Ambassodors will start posting regular pictures and a video on their youtube channels about the jacket and their opionion on the technology.
Get the jacket featured in a variety of high profile online Magazines: Highsnobiety, The Verge Wareable, Dezeen, Wired, Cyclist.
Showcase the jacket on various high profile athletes doing extreme sports, whether it be cycling, mountain biking, mountain climbing, jogging and more.
may
Promote JAKU on Chinese social media sites. Promotions will include a giveaway and different videos of the jacket showcasing its capabilities. These will be paid promotions to ensure the posts are seen by the masses. VR headsets will also be given out at Sham Shui Po, where the pop-up store will take place
july june
april
Send a jacket to JAKU brand ambassadords:. See next page for a list of selected brand ambassadors and the reason behind their choosing.
Start producing campaigns of athletes using the jacket to its full potential. Repost regular images with consumers wearing the jacket in exterme circumstances. Release a professional lookbook produced in extreme climates using the jacket to its maximum capacity.
Release VR footage where users put on a headset & can see the jacket as if they were wearing it, as well as infographics showing the functions
*please refer to “creative document” where mock-ups of social media & online advertisements will be displayed. 38
Host the first pop-up shop in Hong Kong, China for 2 weeks. This will take place at Sham Shui Po. A place renowned for its vast array of electronic stores.
THE MARKETING PLAN
*a comprehensive document or blueprint that outlines a business advertising and marketing efforts for the coming year.
Contually post videos and images of the jacket being used by atheletes performing outdoor sports such as: cycling, mountain biking jogging, hiking and climbing
Begin advertising around Tokyo for the upcoming pop-up store. Give out VR headsets in the Akihabara area, a destination with a multitude of technology stores.
The advertising for the London pop-up store will begin here. Advertisements include paid promotion on social media channels, showcasing different videos of the jacket, its capabilties and the time & date of the event. JAKU will also begin handing out branded VR headsets with a QR code on to direct them to the video of the jacket.
The London pop-up store will take place at Argyll Street, near Oxford Circus. This area is always buzzing with life, so much that it is soon to be pedestrianised (Guardian, 2016).
september august
Post more conceptual 3d model videos of the jacket across the social media channels, such as tech specs and close-ups of the jacket.
november december
october
Host the Japan pop-up store. This will take place at Akihabara and will last 7 days. There will be a huge increase in social media posting around this time, as well as paid advertising on social media platforms.
Advertising for the San Francisco pop-up store will start now. Interactive displays will be put up around the city, as well as on social media channels, showing the exploded jacket and its various capabilities, as well as the time and date of the event. Casey Neistat, one of JAKU’s brand ambassadors will be hosting a talk at the pop-up event.
Release a full video showing how the jacket is made, from the technology inside to the manufacturing process.
There will be an appearance from Mark Cavendish, professional cyclist and one of the brand ambassadors.
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VR headsets will be given out around the San Francisco area, with a QR code directing consumers to the video of the exploded jacket in VR format.
Here the final pop-up store will begin at Ellis Street in downtown San Francisco. This is an area well known for its shopping districts. It is regularly visited by locals and tourists due to its selection of great shops.
BRAND AMBASSADORS
JEREMY LIN
KEI NISHIKORI
MARK CAVENDISH
THE RUNDEM CREW
SIR MO FARAH
CASEY NEISTAT
*a person, especially a celebrity, who is paid to endorse or promote a particular company’s products or services.
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CASEY NEISTAT
Casey is a world renowned, American daily Vlogger (video logger) on YouTube with over 9 million subscribers. His daily videos reach a minimum of 1 million users. Casey is an avid tech head, regularly reviewing new innovations from brands he endorses and buys into. A partnership with Casey Neistat would bring great traffic to JAKU, increasing knowledge of the brand and ultimately resulting in sales of the jacket. Casey’s recent video on Boosted Boards new release, a powered long-board, resulted in the website crashing due to too much traffic. Instagram: 3m / Twitter: 1.8m
SIR MO FARAH
Sir Mo Farah is one of the UK’s most famous athletes. Mo is a 4x Olympic gold medalist, 4x World champion and 9x European champion. Mo Farah would be a perfect fit for JAKU as he is one of the most respected athletes in the country. Runners all across the globe look to him as an inspiration. A partnership with and elite runner such as Mo Farah would help boost the JAKU name as well as a new found respect for the brand. Instagram: 717k / Twitter: 1.6m
THE RUNDEM CREW
The Rundem Crew are a London based “collective of creative heads with a passion for exploring cities and bringing people together,” they meet to run and explore the streets of London and other cities around the world. Events could be held with Rundem Crew in order to gain traffic and help boost sales, as well as increase potential customers knowledge about JAKU and what its trying to achieve. Instagram: 17.6k / Twitter: 10.7k
MARK CAVENDISH
Mark Cavendish is one of the worlds most renowned athletes. Mostly known for his achievements in the cycling world, Mark would help tap into the ‘Middle Aged Men in Lycra’ demographic JAKU is trying to break into. MAMIL’s are a demographic most dominant in Great Britain, so a partnership with a world renowned British cyclist would go a long way for JAKU. Instagram: 501k / Twitter: 1.44m
KEI NISHIKORI
Kei Nishikori is a Japanese professional tennis player. He is the only male Japanese tennis player ever to be ranked inside the top 5 in singles. Kei will play a key role in tapping into the Japanese market. An appearance by Kei could be made at the pop-up store, driving an incredible amount of traffic to the store. Instagram: 339k / Twitter: 889k
JEREMY LIN
The NBA is one of the most-watched sporting channels in China (Klingelhöfer, 2017). Jeremy Lin is a highly respected American basketball player with a huge Chinese following due to his Chinese heritage. An endorsement from Jeremy Lin would gain mass following from a Chinese demographic Instagram: 1.4m / Twitter: 2.61m
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OPERATIONS
*how the business will operate, who is employed and why.
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HOW WILL JAKU OPERATE. HOW MANY PEOPLE ARE EMPLOYED/OUTSOURCED. CORE TEAM
Due to the nature of starting a small business, there will be no-one working alongside the founder until further notice. Due to a limited budget, it is imperative that JAKU keeps its costs down, .
FREELANCE
Outside of the core team there will be a network of highly creative and well trained freelance creators. These creators will be working on all of the design work, from 3D models to posters, designing of the apps and websites, as well as anything else that needs producing. To bring their app and website designs to life, two freelance coder will be needed. The majority of coders don’t have the creative eye designers have when it comes to web and app design, meaning the designers will create them first, then send them to a coder who will bring them to life. In total, there will be 5 freelance designers and coders that will work closely with JAKU. Full-time, paid roles will become available once the company attracts more revenue.
TECHNOLOGY
To bring the technological side to life, JAKU will purchase the technology from Toshiba. Toshiba currently supply Komodo Technologies with the insert they use for the same purpose, it would be more cost effective to purchase the technology ready made, as apposed to creating it in-house. As the company increses its profit, it would conducive for this technology to be manufactured in-house.
MANUFACTURING
The making of the jacket itself will be manufactured by a UK based company, LN Manufacturing. After opening dialogue with LN, they quoted a price of ÂŁ120 per product for a run of up to 2000, after 2000 a 10% discount will incur and 15% on an order of more than 5000. Albeit expensive, LN are a well respected firm within the UK and offer some of the finest materials in the industry.Once JAKU is strongly established within the industry, cheaper deals can be negotiated, possibly in the UK or in China.
SUMMARY
As a new company, with financial restraints, JAKU would initially have a small team. Establishing a team of freelance creaetive personel will be more cost effective.
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TOTAL COSTS
*total cost describes the total economic cost of production and is made up of variable costs
JACKET COSTS
LN Manufacturing, a Wolverhampton based operations aided the jacket costs findings. quoting £120 per jacket with a 15% discount on orders above 10,000.
MODULE COSTS
After market research into wearable tech companies and devices capable of monitoring heart rates, such as the Supa.AI and the Komodo sleeve, a rough estimate of £10 per piece seemed justifiable in a quantity of over 10,000.
APP & WEBSITE CREATION VR COSTS DESIGN ONLINE ADVERTISING EMPLOYEE & TRAVEL HOTEL COSTS AMBASSADORS PROMOTIONAL FILMS
Jack Marsh, Full Stack Web Developer, BSc Computer Science currently working at PWC quoted £10,000 for the website and £35,000 for the app, which is more complicated. VR headets can be bought in bulk for £1.86 on ww.dhgate.com. Design cost was a rough estimate based on the founders personal experience. Online advertising cost is guided by Instagram and Twitters business features. Instagram quote £4.81 per 1000 views, whereas Twitter quote £0.36-£2.87 per day. Based on countries minimum wage in each country a pop-up store is being held. A quote was found after browsing listings on AirBnB. £100,000 is the budget JAKU has allocated for ambassodor costs. This can be increased once JAKU starts to make revenue. JAKU requires the access to the creation of high-quality and well-produced promotional films and has allocated £45,000 to do so.
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SURVIVAL COSTS *how much the founder needs for his wages.
This table is based on what the founder can live on for a year. A higher wage will be taken once the company is turning over more revenue.
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SALES & COSTS
*cost of goods sold is the direct costs attributable to the production of the goods sold in a company
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This table shows an estimate of how many products will be sold in each month. Spikes occur when there is a pop-up store.
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SALES & COSTS
*cost of goods sold is the direct costs attributable to the production of the goods sold in a company
This table displays the money earned, as well as the money outgoing to give us an overrall balance. Repayment structure is set up at ÂŁ100,000 per month. Due to the volume of which JAKU is receiving its money, it seems wise to pay off the outstanding balance as soon as possible.
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BREAK EVEN TABLE *the break-even point is the point where costs equal revenue
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BREAK EVEN POINT
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CONCLUSION *the end or finish of an event, process, or text.
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JAKU will be the first company to merge stylish clothing with modern technology, giving consumers the ability to monitor a variety of health & wellbeing based statistics. With the potential to change the way people live their lives, and in some circumstances the ability to save lives with its emergency services feature. After extensive trend, consumer and market research it is evident there is a strong market for this product. The release of this product has been carefully timed to maximise profits with pop-up stores beginning in Eastern Asia, a demographic with an already high disposable income (Jones, 2017) and an interest in health & fitness based product (Jones, 2017). Being the first jacket of its kind, it will gain mass exposure from publications all across the globe, revelling in its revolutionary technology which works seamlessly with wearers daily lives. A strong and unique marketing campaign makes it easier to compete in a market with only 2 direct competitors, both US based companies with almost non-existent marketing campaigns. Hosting pop-up stores worldwide gives JAKU the opportunity to reach markets all across the globe, giving potential consumers the chance to try out the technology for themselves as well as an advantage over its USA based competitors. There are not many clothing companies that can say they can save a life, JAKU is one of them. It is more than just a clothing brand, JAKU is a company dedicated to the bettering of society through innovative ideas and execution. With the potential to apply the technology elsewhere as well as come up with new and original ideas, JAKU will continue to innovate through extensive trend research to discover what can be achieved in terms of advancing the modern society.
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