4.1 Strategic Plan

STRATEGIC PLAN

Having concluded that New Zealand is a strong economy, a safe business environment and a market where there is a scope for a new luxury fashion player, particularly one with a focus on sustainability and social responsibility, there is a potential gap in the market for Stella. Stella’s global presence and values will resonate with the target consumers in New Zealand.

Stella will take a market development strategy (Ansoff, 1965) through the direct investment of a flagship store; a popular MEM used to build relationships and promote a more engaging experience of the brand’s essence (Kozinets & Sherry, 2002). With pressure on retail sales, due to an increase in online sales exacerbated by Covid, an experiential flagship store will generate status and engagement through all angles of The Experience Economy (Pine & Gilmore, 1999). The integration of technology in store will be a particular focus since consumers are technologically savvy and the tech eco-system is thriving (Pine & Gilmore, 1999) (Great.gov, 2021)

Flagships are an integral element to the internationalisation of a luxury retailer that intend to build awareness through their brand image and with less focus on profit (Moore & Christopher, 2010) (Kozinets & Sherry, 200). Set up costs are particularly high for this MEM due to bespoke design and high operating costs however the investment will support the marketing of this launch and increase the perception of the brand (Moore & Christopher, 2010). The strategic implementation of this store (Section 5.0) will become an attraction to local neighborhoods and tourists, once borders are re-opened and will be supported by online sales (45% growth in domestic spend) and promotional methods (Section 5.5) (NZ e-commerce Review, 2019).