NOmad
Cashmere
Nomin-Erdene Surenjav ARTD 3038 Final Fashion Marketing Project
The creation of a cashmere womenswear brand dedicated to the modern women This report is commissioned to examine a gap within the cashmere market and to take advantage of the continuous growth of the organic clothing sector in the UK. The report is based on the market research, developing a business plan with a suitable marketing plan for new cashmere brand “Nomad�.
Contents Introduction 1. Market Research 1.1 The Marketing Environment 1.1.1 Macro Analysis 1.1.2 Micro Analysis 2. The Brand Identity 3. The Marketing Mix 3.1 People 3.1.1 Pen Potrait 3.1.2 Psychographic Profile 3.2 Place 4.3 Product 3.3.1 Sprin Summer 2016 3.3.2 Autumn Winter 2016 3.3.3 Sourcing Stragtegy 3.3.4 Sustainable/Ethical Manufacture 3.4 Price 3.4.1 Pricing Police/ Architecture 3.4.2 Price Band Matrix 3.5 Position 2.5.1 Positioning Map 2.5.2 Product Position 3.6 Promotion 3.6.1 Branding 3.6.2 Marketing Stragtegy 4. Business Plan 4.1 Financial Plan 4.2 Five Years Plan 5. Implementation & Control 5.1 SWOT 6. Appendex 7. The References
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People don't buy what you do they buy why you do it. And what you do simply proves what you believe. Simon Sinek
Introduction
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Introduction
Introduction
Consumerism is changing immensely due to the changing environment. Consumers awareness on environmental issues such as global warming and carbon dioxide emission are growing tremendously. Healthy living and healthy lifestyle is an emergent issue in the modern world. World economy is in a reconstruction stage since economic crisis in 2007. Average salary and wages increase is fixed in line with the abate economic growth. Consequently, consumers have less disposable income and it is impacted on luxury product purchasing behaviour. Many have downgraded the products and targeting the lower income consumers. For instance, M&S and Uniqlo have downgraded the quality of the products. However, it is questionable that until what point that the quality can be reduced and customers are willing to accept it. Furthermore, often the leading cashmere companies are opaque about the manufacturing processes and whether if they are maintaining the wanted ethical level, sustainability issues and the routes of transporting the raw materials into the UK. Cashmere companies have a history of producing classic and traditional clothes, having relaxed approach towards new fashion trends. It can be said that they are playing the rivals in the fashion industry off against each other and benefitting from the competition. Nomad is having a mentality of sustainability and introducing recycling and upcycling processes to consumers and environmentally friendly production. Nomad is a transparent company, informing customers by greater details about manufacturing processes and raw materials used. Nomad is overcoming the preceding issues by introducing high quality products for fair pricing strategy in luxury market.
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1. Market Research
Marketing Environment
1. 1 Macro Analysis
SOCIAL
POLITICAL
-Social media e-commerce become increasingly popular.
-UK is the top four leading importers of Mongolian cashmere
-Consumer purchase eco clothing and organic textile is became mindful.
-In Mongolian government concern is to increase cashmere and wool products export and wool products and to market the domestic cashmere brand internationally
-The highest spend on organic product customers aged 28 to 44 people compared to the -UK average for all age groups..
-The current government party (Conservative-led coalition government) in UK is putting less interest on public sector cutting budgets and start supporting private sector.
ENVIRONMENTAL -By 2025 there are around another billion people living in the world. Agriculture and pattern of global land use will be affected by climate change. -In July 2012 the UK’s organic land area was reported to be 656,000 hectares. This is an 8.7 percent decrease from the previous year, and constitutes 3.8 percent of the agricultural land area. 12
Marketing Environment
TECHNOLOGICAL
ECONOMIC
-Consumers want to communicate with a brand through social media and mobile applications. -Technological advances allow business to communicate and re-engage with consumers on a personal level.
-UK economy grew by 2.8 percent in 2014, the highest rate of growth since 2006.
-Facebook’s 13-17 age group dropped by 25.3 percent over the last three years, but its over55 group grew by 80 percent in that time and over 35 group grew by 41.4 percent. -Technological advances brought to cashmere industry to manufacture product effectively and efficiently. As a result cashmere garments are wearable in any seasons.
LEGAL -Government pledges to cut carbon emissions by 80 percent by 2050.
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-Unemployment is continuing to fall and wages are rising -Consumer spending up a 3.2 percent in January 2015. -Organic textile sales increased 10 percent in 2012. -Online Retail sales increased 15.8 percent in 2014. -The british fashion industry is worth £23 billion to the country’s economy. (British Fashion Council)
Marketing Environment
1. 2 Micro Analysis UK cashmere
Cashmere is a luxury and sustainable textile obtained from a goat and it is renewable source. Cashmere garments knitwears are recycled and upcycled and even the design can be altered easily. Cashmere has been a popular textile in the UK for decades. Cashmere product has been present in the UK market for more than 200 years. (BBC News, 2001) Cashmere cardigan was a colossal trend in 50s, the images of housewife, dressed in a cardigan twin set with a pearl necklace. In 80�s when designer Shirin Guild began use cashmere and promoted it as a luxurious fabric. (Conway,S 1998) In the UK, Scotland is known as an one of the best cashmere made product and there are upward of 40 companies operating within the cashmere industry in Scotland.
Mongolian cashmere
Mongolia is the second largest producer of cashmere in the world with about 15 percent of world production ( china with 70 percent of the world output and Afghanistan 10 percent) and they operates within the context of the world cashmere industry which in turn operates within the context of the world garment industry (EPRC,2005). The quality of Mongolian cashmere is produced by sustainable and ethical of goats and herders lifestyle with non chemical element. Mongolian shepherds are still following the traditional way of farming. All herds are free range and benefiting from the well conserved Mongolian nature. Goats are not being held in the farm sheds instead they are free range and travels X miles per day to eat grasses. The goats are tended by nomadic herders and cashmere fibres are obtained through hand combing the each individual goat in the spring season. Hand combing is the process which allows for the separation of the finest combings from the coarser combings and leaves the goat with its guard hairs intact, which are providing better protection from wind and rain. Mongolia’s diverse weather conditions of hot and cold climates that it is suited for herding cashmere goats, which thrive in harsh dry mountainous climates and produce the highest quality of cashmere. In moderate climates, goats lose the ability to grow the downy coats that produce the quality cashmere necessary for making luxury garments. 14
Mongolian cashmere vs.UK cashmere
Organic Market
Cashmere is one of the growing luxury fibre that the products are warmer, lighter and comfortable, attracting more consumers in the world. World-wide sales of cashmere products are already estimated to be worth from ÂŁ495 to ÂŁ 695 million annually. (ECOTEC, 2007) Consumer purchase attitude shifted towards eco clothing and organic textile, is now becoming mindful. They are buying less number of wardrobe items and prefer to buy things which last longer. The driving force of this trend is an awareness of worsening environmental issues. Consumers are more conscious of the raw materials have been used for the items and its impact on ecology. Organic products market is worth ÂŁ1.86 billion and it has increased by 4 percent in 2014. This is a significant step up as the food prices fell by 1.9 percent and spending on food fell by 1.1 percent. The organic division is encouraging innovation in the changing environment as technology enables many possibilities. Organic division is investing heavily on marketing and new product development. Many companies started selling directly from their online website to the end consumers.
Most important to cashmere fibre quality is the fibre length and fineness and good cashmere fibres are between 13 and 16.5 microns thick. (Bluden, J 2014) Micron is unit measure of length which measures the length as accurately. One micron equals to one millionth of a metre. (Oxford dictionary) Mongolian cashmere is around 15.6 microns thick which stands in the best quality cashmere fibre interval according to Bluden. In comparison, Chinese cashmere is 16.5 microns and Australia, Iran, Afghanistan are around 17 microns thick. (Khaliun,M 2011) Bluden, J 2014 stated that Mongolian cashmere has longer fibres than Chinese cashmere and so Chinese manufacturers blend Mongolian cashmere into the cashmere fibre to make the garment. In UK cashmere brands such as Brora, Pure collection and Johnstons of Elgin buy raw cashmere fibre from Mongolia and manufacture them into finished garments in England.
Marketing Environment Consumer purchases of Organic product The organic market continues to grow which is driven by increased consumer awareness of the risks such as health and environmental damages and pollution. Mintel’s 2014 consumer trend report on the survey “76 percent of UK adults adheres to ethical and green credentials of products and embraces the transparent companies reporting on the manufacturing and distribution processes. Furthermore, brand reputation is one of the important factor to purchase from the companies”. In 2014 UK economy growth was 2.6 percent compared to only 1.7 percent in the preceding year. Sales of organic products was in line with the economic growth and showed 4 percent increase in 2014 to £1.86 billion. It was only 2.8 percent growth in 2013. (The Soil Association 2014) Healthy living is now a big trend that healthy eating, healthy exercising and all sorts of health related issues and sustainable material made clothes have swept social media tools including Instagram, Twitter, Tumblr, Facebook with dedicated groups such as fitness selfies and healthy food and product pictures on social medias. (Verga, C 2013)
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Marketing Environment
Organic food industry is growing the fastest; on the Mintel’s 2014 consumer trend report stated that 72 percent of UK consumer chooses healthier varieties. It is not only organic products, it is also packaging. According to Ipsos InnoQuest, the survey has showed that 55 percent of consumers are ready to pay more eco packaging for longer, 42 percent people pay more on reusable packaging. Soil Association Organic Market report 2014 stated that sales of organic health and beauty product grew by 17 percent in 2013 to £37.2 million. For organic textile is still growing so that in 2013 organic textile grew 36 percent, whereas the previous year growth has 10 percent. (The Statista Portal 2013) It could be the effect of favourable economic conditions ( reason in economic growth effect on organic textile). In the textile industry, it is common to use chemicals throughout each stages of processing the textile including dyeing the cotton that cause cancer, birth defects and any other illnesses, only few chemical impact support consumer health. (GOTS 2014) Therefore, organic textile will rescue health awareness as well as protect environment. The awareness of organic fashion has risen through media coverage of tragic events such as Toxic Threat: The Big Fashion Stitch-Up in Beijing in November 2012. Zara had produced Toxic fashion that 700 people protesting in front of stores around the world in 2012. (Nerbold, A 2012) Since the protest, there has been a greater interest in organic and sustainable process partially among in fashion industry that some of international brands such as Puma, Nike, Adidas, H&M, li Ning, and C&A signed up to the Detox challenges. (Greenpeace 2012) On the other hand, the majority of the consumers are lacking information on sustainable raw material fibres and products made with them and the benefits for the future of the earth.
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Marketing Environment The Competitors The purpose of this research is to analyse each competitors individually in order to gain in-depth understanding of their marketing strategy and unique selling point. The detailed analysis of competitors is provided in Appendex 3 and 4. Pringle of Scotland Pringle of Scotland is the largest key player in the cashmere market with 200 years of history. It is established in 1815 in Scotland. From the beginning of technical innovation has led to the creation of knitwear as outerwear, the signature argyle pattern and the classic twin set. In 1930’s Pringle create twinset that it was an icon of classic british style was born.
USP:
Historical Scotland’s heritage brand, focus on high quality Scottish cashmere and fashion innovator. Expert craftsmanship
N.Peal British luxury cashmere brand N.Peal established in 1936 in London. The brand has huge presence within celebrity endorsements in early times till now the example of Marilyn Monroe, Cary Grant, Princess Diana, Kate Moss, the Duchess of Cambridge. In 2012 Daniel Craig donned a blue N.Peal sweater in Skyfall and they promptly sold out. N.Peal defines a new strategy aiming to appeal to young, urban professionals without alienating existing loyal UK customers, international travellers seeking the finest in London-made luxury goods”.
USP:
Classic elegant high quality product made in London and also bespoke sweater. 18
Marketing Environment Johnston’s of Elgin Johnstons of Elgin have been manufacturing fine cashmere clothing and accessories from their family-run mills since 1797. Johnstons supplies leading couture houses and fashion independents alongside its own brand label. The own brand label is inspired by rich Scottish heritage and provenance, the company is the best known as manufacturer.
USP:
Long heritage and guarantees luxury and quality.
Pure collection Pure collection is british brand that own 15 stores across the UK. The brand design more modern twisted classic simple shaped product with bright colours.
USP:
Affordable price with modern style product
USP:
Unique palette of cashmere colour product and “made in Britain”.
Brora Brora is british cashmere brand established 1993. The design of the product are inspired from vintage style and the colour inspiration often comes from Scottish landscape and bold art. The prints and colours are essential to the brand. 19
Marketing Environment
Semon Semon is a London based mongolian cashmere brand. The products are elegant and it uses bold colours. The brand aims to satisfy the modern sophisticated women who desires natural luxury.
USP:
Pure cashmere, sustainable products
Oyuna Oyuna is a London based Mongolian cashmere brand. The brand identity is quite creative and refreshingly individual design inspired by Mongolian heritage with modern creativity of London.
USP:
High quality with unique design
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Marketing Environment
M&S M&S is one of the UK leading retail of food, men’s, women’s and children fashion. M&S is also famous for UK made products.
USP:
Affordable price for cashmere products
Uniqlo UNIQLO is described as the apparel giant Gap Inc. , making UNIQLO as Japan’s third largest clothing retailer. UNIQLO is well known of its dozens of colours of cashmere sweaters for a cheap price.
USP:
Affordable Price Colourful
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Marketing Environment
The Positioning Map In the UK cashmere industry, majority of the cashmere products are made in Scotland and the style is simple casual with British heritage. Furthermore, others such as big retailers sell cashmere products and the price is cheaper than small boutique or smaller retailers. For example, M&S and Uniqlo jumper price are approximately £100 yet, small retailers such as Brora and Hawick’s jumpers are sold for more than £200. One of the reason is where it is made and sourced the raw materials from. The products made in Scotland are more luxurious and therefore it is much more expensive than the products made outside UK countries. Often the products bear high overheads because of the salary of the skilled workers in the Scotland based factories. Furthermore, these traditional cashmere produces often require hand made elements design. The other reason, The Brora and Hawick are focused in high-end customers comparing to the M&S and Uniqlo high street brands. Furthermore, the most cashmere products are more likely to be less fashionable and having less graphics or patterns on it. There are two mongolian brands established in the UK. Oyuna cashmere style is combination of modern style blended with mongolian lifestyle which the products are differentiated from other british cashmere brands. Semon clothing is more casual and comfort, original undyed or natural colours of cashmere wool and it is much more concerned on eco sustainable fashion. Most of the cashmere companies are branded as an eco sustainable or ethical but there is a lack of disclosure on manufacturing processes and often no supportive information is provided about the raw materials imported into the UK. In the survey of the Soil Association 2012 stated that 37.5 percent identified price promotions as the most important factor in reviving the organic market. 22
Marketing Environment
High Price
Casual Wear
Fashion forward
Low Price 23
Marketing Environment
Segmentation
Generation X This group covers the population aged from 30s to 40s and they earn more than £30,000 per annum that they often already had raised through their career ladder and often potentially earn higher than any other generation groups and they have high disposable income. Mintel defined that one in six Britons as a high spenders aged 25 to 38 and the a�uent ABs with a household income of over £50,000. They are ambitious and most educated generation to date, and they possess hefty annual purchasing power. Many are dual-income families, therefore significantly increasing their overall finances, and their spending reflects their increased income. Between 2010 and 2013, in terms of average income age 35 up have experienced a 6 percent median income and 18 percent increase in average income. They are earning as much as 45 to 54 ages old people. (LS:N Global 2014 Ross Calum) However, they are less of a spender comparing to the millennium and baby boomers. Generation X consumers are more value driven people. 30s and 40s whose emotional mindsets and values are likewise forcing luxury brands to rewrite the rules. (LS:N Global) They save money on holiday and their children’s college or school tuition fees. These age groups who are parents, family comes first both children and their ageing parents and career second.
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Marketing Environment
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Marketing Environment
Technology Generation X are using internet and technology just as same as younger consumers, being digitally connected. In America, 65 percent of generation X own smart phones, nearly 65 percent of them has desktop computer and 70 percent of them possess laptops. E-reader and tablets owning is higher amongst this group than any other generations in 2012. Generation X usually use internet for convenience purposes, such as online banking and shopping. (Forrester’s 2012) They prefer to do shopping in Amazon AppStore that 24 percent of them used this application, while only 14 percent of those Generation Y. Groupon appealed more to those 25-34, even Generation Y not ranked in 20. (Banks,L WGSN 2013) Therefore, Generation X is key customers to online spending. They are the big users of social medias such as Linkedin and Facebook. In 2014 people aged 35 to 54 were the most popular age group of users on Facebook in USA. (Saul, D 2014) According to the Forrester WGSN, 2O13 stated that “Generation X have the highest average household income and spend the most money online of all age groups”.
Purchasing Behaviour Half of Britons are mid spender who can spend £100 to £299 per year. (Mintel, 2012) Generation X tend to research products before they consider a purchase, prefer quality and tend to be less receptive to over-marketing. Many of them also make use of (hard copy) catalogues and Internet web sites to make their purchases because they have limited time in-store and in store shopping time is often limited due to work and housekeeping activities. They shop at boutiques, specialty stores, department stores, and other brick-andmortar operations where their fashion appetites can be satisfied and well-tailored quality designer brands such as Calvin Klein and DKNY are directed at this audience, where price is a less important factor in their selections. (Diamond, E 2015) In eco fashion, middle age women are also worry about their health, but they are more concerned than their upscale counterparts with the rising cost of living and being able to save enough for retirement later. It depends on their income, if they are middle class or highly educated person then they are willing to purchase organic products. To conclude, generation X demographic is more value and quality driven persons, not necessarily a quantity.
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Marketing Environment
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2. Brand Identity
Brand Identity
The proposed business venture is to introduce a “cashmere” concept affordable luxury brand in the UK market. Our brand identity is a creative design with a feminine aesthetic, producing confortable pieces with intricate details and soft shapes inspired by beauty in nature. Furthermore, inspirational prints are key that in that way Nomad brand can introduce the Mongolian nomadic lifestyle.The products will be made from a best quality cashmere sourced from Mongolian beautiful rural nature and manufactured in Mongolia. The brand targeted female consumers as being 30s to 40s and they earn more than £30,000 per annum. Nomad cashmere aims to sit in the accesible luxury market and products are available to purchase in-store and online. Nomad cashmere values creative design with high quality and our brand will take actions, interact with consumers and We give our consumer the opportunity to shop with complete awareness of what they are buying.
Brand Objectives (Long term)
-Spread awareness of the brand -To establish a customer base and build customer loyalty by winning the trust and confidence of the customers who seek quality, design, after sales services and transparency -Build a strong relationship with suppliers -Achieve sufficient profit to retain the company’s distinctive character.
Keys to Success
-Unique design -100percent cashmere -The success of the businesses in cashmere industry is affected by the responsiveness on the customer demand from the companies. Hence, Nomad overlooks our customers needs and fulfil this demand. -Key Performance Indicators -Customer Satisfaction -Retention rate 30
Brand Identity
Brand Mission
Nomad aims to maintain high customer satisfaction, through supplying the best quality cashmere products with an intriguing design inspired from mongolian nomadic lifestyle i.e. efficient and effective and sustainable lifestyle. Nomad wishes to enlighten the consumers about eco and organic clothing and give positive benefits back to the community by upcycling and enhancing the raw material and production processes. Furthermore, we want to give our customers the opportunity to shop complete awareness of how the product has been made and its stages and processes. Hence, transparency requirement is fulfilled.
Market Size: Niche market Product Category: Apparel Who the product is for: Women’s Product Type: Casual wear Market Level: Accessible luxury
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Brand Identity
Brand Identity
Asker’s model was used in the branding process to develop and realise Nomad brand in all facets, and the overall value it provides to the customers. The model has helped to provide potential opportunities for Nomad to expand in the future.
Brand as product
Product scope: Nomad designs womenswear. Product attributes: The product provide creative design which a feminine aesthetic, producing wearable pieces with intricate details and soft shapes inspired by beauty in nature. Quality/Value: Long lasting, High quality product within accessible luxury market (High end street) Uses: Fashion forward and casual everyday wear. Products are reliable as the full information on from where raw materials are imported and each stages of processing raw materials will be provided. Users: +30 female late and early adopter and late adopter who want comfortable clothes, current season trends, will feature more basic items and classic shapes to ensure its made of high quality materials. Country of Origin: Mostly focused in the UK market, mainly manufactured within Mongolia.
Brand as Organisation
Organisational attributes: transparent, organic fibre sourcing, market innovator Local vs Global: Distribution of the product to be within the UK initially. Manufacturing will be outsourced to Mongolia.
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Brand as Person
Personality: Ageless, Casual and Delicate, Confident, Independent, natural beauty feminine Brand Consumer relationship: Strong
Brand as symbol
Visual Imagery and Metaphor: Diverse colours choose SS collection will mostly use pastel softer colours and AW bold and dark colours. Inspirational print and colours are printed on the cashmere products. The general concept of our collection is casual clean everyday wear and the design is inspired by natural beauty and some pieces of product will introduce Mongolian nomad culture . Brand Heritage: Combination of Mongolia and British modern heritage.
Brand Identity
Brand DNA It is important to adhere to Nomad’s current DNA structure.
Nature Beauty Eco-Friendly Feminine
Personality
Organic Trustful Exclusivity
Values
Organic Informative
Emotional Benefit
Confident Ageless Deligate
Physical Benefit
Feminine Classic/Deligate Inspirational Prints/ Design High Quality cashmere
Attributes
High Quality Accesable Luxury
Positioning
Organic Beauty in Nature Mongolian Herritage 33
Essence
2. Marketing Mix
Marketing Mix
3. 1 People Nomad cashmere will be demographically targeting: Female AB consumer types and Aged over 30’s Place: London and home countries based.
Spending Power:
Emotional and rational patronage, as well as focus on ethics and quality will be key buying motives. Natural spenders, who spends her money wisely on products that she thinks benefit her, the brand appeal to women who appreciate the clean, classic and feminine. Nomads target consumer also likes to shop online, due to her busy lifestyle. Nomad will be in targeting 4 consumer typologies. The Typologies are: -Rurbanites -Luxury and Quality drivers -Modern Mother -Fabs
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Marketing Mix
Pen Potrait Aimee (The Rurbanites)
(Aimee is a representative to the consumer which are consuming more sustainability). Aimee is 32 years old which she grew up in London. However, now she is living in Dorset with her family. She is embracing localism, not as a rejection of the world, but as a mean of changing her surroundings for the better, rural style. Aimee is environmentally friendly and urban lifestyle women and she is inspired by nature that she buys organic, sustainably produced goods and natural materials. She shops in the corner shops or boutique shops with eager to revitalise local communities and she respect the time that it takes time to create a worthwhile product and she celebrate the rough charm of the craft and artisanship. About the fashion she is not interested in fast fashion, she prefer locally or sustainably made, eco sourced goods or thrift-store finds that come with a story woven into their fibres. Furthermore, Aimee also readily embrace with technology and the internet, particularly search for communities and facilitating o�ine gatherings. The other online resources are valuable sources of knowledge for new urban lifestyle blogs or websites and they discuss or share the their eco lifestyle.
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Marketing Mix
Pen Potrait Luxury and Quality driven Women Maria
Maria is a representative to the consumers which buy for quality rather than quantity. She is early 30 and lives in the central London. She is a loyal customer of lifestyle brands in the designer market. Her style is a simple and modest with an air of understand trend appeal. She prefer to buy one last long classic garment rather than buying punch of cheap low quality products. Maria shops online, due to her busy lifestyle. She uses internet to search best price and quality product online and when she found good offer, she spread the word of new brands and tell their friends and family.
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Marketing Mix
Pen Potrait Modern Mother Clair
Clair is 35 years old a Modern Mother and work in small company as a manager in Maidenhead . She does not define herself as a only a mother. She thinks both parents should share equally in caring for their children. 44 percent of new mothers work full time (up 11 percent on 2009). This represents a fundamental shift in traditional gender roles in the home and workplace. She has two children, but she takes time to look after herself too. She retains an interest in style, beauty, traveling and work. She likes to shop fast fashion brands yet, they also have few more expensive piece from J.Crew or small boutique shops. She is more independent and she doesn’t impress with celebrities.
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Marketing Mix
Pen Potrait Helen ( Fabs )
Helen is a professional journalist. She has vast of spending power, taste and confidence. She represent to the consumer of fabs. In terms of lifestyle, fabs are not afraid to adapt to new things and they pay close attention to trends. They spend voraciously on luxury items because they know what they want and what they deserve. Favour brands are like J.Crew, Prada, Ralph Lauren, Jil Sander and Boutique shops. Helen is more likely to be loyal customers and personal attention is important; she likes to ask help or personalised service such as call or send email to her as soon as something right comes new in stores. Furthermore, she reveals a loyalty to high quality material, natural fibres, pretty casual wear goods. Fabs are big buyer of technology that the over 50s as digital consumer 80 percent are online and two thirds use the internet for shopping. Helen also use lifestyle blogs including Camille styles and Slim Paley.
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Marketing Mix
Psychographic Profile The Nomad cashmere target market sit between late to early adopters. The range, although inspired by current season trend, will feature more basic items and classic shapes to ensure it appeals to the wider audience, and is therefore less likely to appeal to innovators.
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Marketing Mix
Innovation
Early Adopter
Luxury and Quality driven Women Maria Modern Mother Clair
Late Adopter Helen
Fabs
Late Feeders
Bargain Hunters
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Marketing Mix
3. 2 Place As a new brand, it is risky to open a new store, therefore Nomad will distribute the product by online and some boutique stores by agencies such as Anna Park’s boutique, 69B, Komodo, Iris and Bridget Salmassian. The official website will start sell a product within the UK initially that to keep distribution local rather than on global range to minimise the company’s carbon footprint and to remain as sustainable as possible.
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Marketing Mix
NOmad Agency
Website
Boutique or Deparmant store
Consumer 49
Website
The official website is essential because this is perhaps the most straightforward contact with our customers. Nomads cashmere will highlight the boutique shops on the website and application that the customer who prefer to buy in-store. The website will include the blogs which include eco healthy lifestyle posts, how the products are made and how to style our product to make an outfit. The website is designed to market the products with a story and background description videos, with the intention to encourage an emotional attachment from to the product and brand, rather than rational. Detailed information on materials, manufacturing details, price calculation and carbon footprint are provided on the website online store for each individual product. Futhermore, cashmere is a delicate luxury fabric which needs a special care when cleaned, therefore the website will include section about how to care and wash cashmere knitwear, it will include film and paragraph with images, to make it more interesting. On the web and application will have information on cashmere care section under customer service to integrate with customers.
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Marketing Mix
Mobile and Tablet application
Generation X own tablets higher than any other generation groups and therefore Nomads developed mobile/tablets application (app) to make it easy to shop online. The app is downloadable free from the apple and android app store. Features include an interactive look book in the womens section, enabling customers to engage and interact with the brand through customer customised interactions. QR code section is to scan the swing tag to find more story of the product such as material information, manufacturing details, price calculation and carbon footprint emission. Wish List: this section enables customers to save the product they would like to purchase in the future dates in to the wishlist basket and it can be shared on the social media pages
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Marketing Mix
3. 3 Product Our products are elegant and easy to style to wear. It provides creative design which a feminine aesthetic, producing comfortable pieces with intricate details and soft shapes inspired by the nature. In the SS and AW collection’s some product inspired by Mongolian Nomads lifestyle and the natural elements explored inspire both colour palettes and prints. Furthermore, the quality is a key to success and therefore our products are long lasting that collection made of 100 percent cashmere.
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Marketing Mix
SS 2016 This collection inspired by Natural Beauty and it has themes of femininity, beauty and nature specific aesthetic. This trend includes the natural pale colours which brings clean, relaxation and feminine aesthetic. With these key colours are best translated onto spring essentials such as boxy midi dress and simple classic relaxed sweater shape. The look is sophisticated, feminine and fun, allowing the customer to focus on the eco friendly, quality and Mongolian heritage. The collection will use gauge knitting to make featherweight cashmere product. Gauge knitting is a term used for counting the stitches per inch. Gauge on knitting machines enable to produce thin layer of featherweight cashmere that in summer it will lightweight, soft, supple and breathable. It is cool in the hot sunny day and warm in the cold breezy nights.
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Marketing Mix
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Marketing Mix
Cad Range Plan Maxi dress 100% featherweight cashmere Retail Price: £270 Actual Price: £45 Margin: 80% Size: 8-14 Quantity: 50
Lew Dress 100% featherweight cashmere Retail Price: £270 Actual Price: £45 Margin: 80% Size: 8-14 Quantity: 50
Sweater Dress 100% featherweight cashmere Retail Price: £300 Actual Price: £50 Margin: 80% Size: 8-14 Quantity: 60
Refer to Appendex 1 for full CAD
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Marketing Mix
Cad Range Plan Dolman Sweater 100% featherweight cashmere Retail Price: £240 Actual Price: £40 Margin: 80% Size: 8-14 Quantity: 60
V-Neck Sweater 100% featherweight cashmere Retail Price: £230 Actual Price: £37 Margin:80% Size: 8-14 Quantity: 70
Asymmetric cardigan 100% featherweight cashmere Retail Price: £255 Actual Price: £42 Margin: 80% Size: 8-14 Quantity: 70
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Marketing Mix
AW 2016 The collection follow the WGSN AW16 macro trend Remaster. This trend colour shows old master paintings, the colours are full of richness which includes deep red and introduces warm, cosy depth. Atmospheric Blue reminds of cold winter, deep green and bronze is luxurious and warm. The prints are also inspired by nature such as images of rose, wood and sunrise. Furthermore, Nomads designs simple cozy sweater and sweater dress with bold colours inspired by Remaster. On the collection cowl neck dress and cardigan used quite often; peplum skirt and dress make the collection more classic and elegant.
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Marketing Mix
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Marketing Mix
Cad Range Plan Polo-Neck Dress 100% cashmere Retail Price: £320 Actual Price: £53 Margin: 80% Size: 8-14 Quantity: 50
Gap Sleeve Dress 100% cashmere Retail Price: £360 Actual Price: £60 Margin: 80% Size: 8-14 Quantity: 50
Collar Sweater Dress 100% cashmere Retail Price: £300 Actual Price: £50 Margin: 80% Size: 8-14 Quantity: 60 Refer to Appendex 1 for full CAD
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Marketing Mix
Cad Range Plan Cutaway Sweater 100% cashmere Retail Price: £275 Actual Price: £45 Margin: 80% Size: 8-14 Quantity: 70
Cowl Neck Sweater 100% cashmere Retail Price: £250 Actual Price: £41 Margin: 80% Size: 8-14 Quantity: 70
Peplum Skirt 100% cashmere Retail Price: £200 Actual Price: £35 Margin: 80% Size: 8-12 Quantity: 30
61
Marketing Mix
Sourcing Strategy
Shipping
Sourcing strategy covers sourcing raw materials and manufactured in Mongolia. Nomads is incorporated a joint arrangement partnering with Gobi corporation in Ulaanbaatar Mongolia. Gobi Corporation has nine factories process and manufacture raw fibres into final products. It is one of the five vertically integrated cashmere manufacturers in the world. Raw fibres such as cashmere, camel wool and yak down go through fourteen different manufacturing stages in all nine factories. Gobi Corporation is focused on the social side of sustainability determined social responsibility policy in all areas of the operations which they are working closely with herders by supporting their traditional nomadic culture and lifestyle. Furthermore, by relying on these herders Gobi is providing much needed jobs, income, and potential for growth among the herders and their communities.
Depending on the style complexity and quantity of the styles the lead time for wholesale order is between 30 and 45 business days. (Gobi, 2015) Hence, Nomad has to take account of the lead time of the products arrival and therefore Nomad plans two months in advance to acquiring the products. Nomad imports the cashmere products from Gobi through the channel route via railway and sea shipment.
62
Stages in getting a product from concept to shop floor: • Concept • Design strategy • Design and product development • Retail strategy • Fabric development • Sampling • Range planning • Sourcing strategy • Production • Shipping • Distribution • Promotion • Sales • Customer service
Marketing Mix
Sustainability and ethical company Factory Nomad products are made in Gobi’s factories that the company is accredited Mongolian Fibre Mark society certification mark. Mongolian Fibre Mark certification mark works to achieve this goal is by protecting the reputation of Mongolian cashmere through the creation of two types of marks: Pure Mongolian cashmere and Made With Mongolian cashmere i.e. Products are made of at least 50 percent Mongolian cashmere. The value of the certification is implementing a set of ethical, environmental, and quality standards. Furthermore, except the certificate Gobi approach involves: -Ensuring environmental friendly practices in operations and will promote care for societies and environment as a whole. - Ensuring human rights and protecting the help and safety of the employees and are committed to providing safe and comfortable workplace for the employees. -We will comply with the laws and regulations. -We are committed to delivering consistent high quality products and services to our customers.
63
Marketing Mix
3. 4 Price Average price margin achieved is 80 percent.
Entry £250
Entry £200
Sweater
Dress Exit £450
Exit £350
Entry £180
Entry £250
Skirt
Cardigan
Exit £300
Exit £400 64
EXIT
MEDIAN
ENTRY
Marketing Mix
Dress
Sweater
Cardigan
Tank Top
Skirt
£50 £100 £150 £200 £250 £300 £350 £400 65
£450
Marketing Mix
3. 5 Position To fill the identified gap in the cashmere fashion market, Nomad will be positioned as an eco and elegant with a focus on high impact on visuals and editorial content to differentiate us from the competitors. The competitors that were identified were Oyuna, N.Peal, Pure Collection and Brora in term of product, price and style.
66
Marketing Mix
High Price
Casual Wear
NOmad
Low Price
67
Fashion forward
Marketing Mix
Table 1-2
Table 1
Brand
N.Peal
Brand
Brora
Style
Lurex Honeycomb Ribbed sweater
Style
Cashmere V Neck Sweater
Fabric
100% cashmere
Fabric
100% Cashmere
Price
£229.00
The Product Comparison Price £239.00
The product comparison allows Nomad to review their competitor’s products. A similar range of products was chosen and compared under the same criteria. The product design of each sweater captures simple, classic design and all have their own brand distinctive identity featured in the sweater. For the price point, Nomad sit comfortably amongst its competitors, with Oyuna having the highest priced sweater. Nomad sweater is priced slightly lower than the direct competitors N.Peal and Brora. Although our sweater price point little more expensive than Pure Collection, Nomad uses premium quality cashmere with ethically sourced material and we will inform to the customers.
Table 1-1
Brand
Oyuna
Style
Tuli Pullover In Slate
Fabric
50% Cashmere / 50% Cotton
Price
£325.00
Table 1-3
Brand
Pure Collection
Style
Cashmere Curved Hem Sweater
Fabric
100% cashmere
Price
£169.00
Table 1-3-1
Brand
Nomad
Style
V-Neck Sweater
Fabric
100% cashmere
Price
£200.00
68
Table 1-2
Table 1
Marketing Mix
Brand
N.Peal
Brand
Brora
Style
Lurex Honeycomb Ribbed sweater
Style
Cashmere V Neck Sweater
Fabric
100% cashmere
Fabric
100% Cashmere
Price
£229.00
Price
£239.00
Table 1-1
Brand
Oyuna
Style
Tuli Pullover In Slate
Fabric
50% Cashmere / 50% Cotton
Price
£325.00
Table 1-3 Table 1
Table 1-2
Brand BrandPure Collection N.Peal
Brand
Brora
Curved Hem Sweater Lurex Honeycomb Ribbed sweater Style StyleCashmere
Style
Cashmere V Neck Sweater
100% cashmere Fabric Fabric100% cashmere
Fabric
100% Cashmere
Price Price£169.00
Price
£239.00
£229.00
Table 1-1
Brand
Oyuna
Style
Tuli Pullover In Slate
Fabric
50% Cashmere / 50% Cotton
Price
£325.00
Table 1
Table 1-3
Brand
Pure Collection
Style
Cashmere Curved Hem Sweater
Fabric
100% cashmere
Price Brand
Brand
N.Peal
Brand
Style
Lurex Honeycomb Ribbed sweater
Style
Fabric
100% cashmere
Fabric
Price
£229.00
Price
Table 1-2 Table 1-1
Table 1 £169.00
N.Peal
Brand Brand BroraOyuna
Style
Lurex Honeycomb Ribbed sweater
StyleStyle
Cashmere V Neck Sweater Tuli Pullover In Slate
Fabric
100% cashmere
Fabric Fabric
100% 50% Cashmere Cashmere / 50% Cotton
Price
£229.00
PricePrice
£239.00 £325.00
69
Marketing Mix
3. 6 Promotion Branding The meaning of the brand name is simple. Nomad is an abbreviation of Nomadic that it is relates to Mongolian nomadic culture. The name relates to its wildness and passion for transparency and protecting the planet. Concise: 2 syllables, 1 word and less than 7 characters. It is not overly long or complicated to pronounce. Intrinsically authentic: The name fits the brand personality. Memorable: Easy to remember. Brand Logo: For the simplicity and naturalistic approach Nomad logo is designed using only two colours i.e. white and black. It is enabling us to preserve the austere and elegant image. The logo is a hand written letters that represents that element of feminine and immaculate illustration. Inside of the “O� letter it appears mongolian yurt image which represents the mongolian nomadic lifestyle. The logo will appear on all signage for the collection, swing tags, packaging, product label and across all social media platforms, e-commerce site and mobile app.
70
Marketing Mix
NOmad
Cashmere
71
Marketing Mix
Packaging The brand identity as an eco life style brand that packaging also is made of eco paper 100 percent FSC recycled paper. Paper Carrier: Small, Medium and big career bag are used when purchasing item from the collection in boutique shops and department stores. Paper Box: One size paper bag to be used when purchasing item from the online store to protect the collection from delivery. Inside the box it includes new collection look book and postcard.
72
Marketing Mix Buttons
Label
Swing Tag Swing tag is made of eco paper 100 percent FSC recycled paper. The style made by simple and clean design. Front: Nomad logo will be appeared in the front side of the tag. The logo will present brown and white colours as the both serve as the original cashmere The front side of the tag shows the Nomad logo with light brown and white colours, which the light brown represents original undyed or natural colours of cashmere Back: The back site includes QR code and embedded Mongolian manufacture certificate stamp. When customer scans the QR code to find more information about material, manufacturing details, price breakdown calculation and carbon footprint. 73
Marketing Mix
Marketing Stragtegy: We are aiming for a focused approach into the marketing strategy to preserve the brand image. In addition to the precedent strategy Nomad builds general awareness of the brand and winning more of the AB consumers. Objectives: To launch and raise the profile of Nomad brand, whilst in turn of raising awareness of organic, ethical fashion and the brand engages with customers. To acquire at least 5 percent market share of the market of customers aged 30 to 40 in the UK by 2019. Our brand will use promotional tools of: Social Media PR Press Digital Marketing LookBook
75
Marketing Mix
Social Media Most of the targeted customers (Generation X AB consumer) actively use social networking and online shopping. As a new brand Nomad cashmere, social media tools enable to communicate with target customers efficiently. Our brand will use Facebook, Twitter and Instagram engines.
76
Marketing Mix
2
77
Marketing Mix
PR Nomad will work with Modus PR agency to launch the brand by Event creation and media relation.
PR stragtegy -Pre launch press release informing press of the influences and story behind brand Press samples sent to fashion and lifestyle bloggers. Launch event for press the before Magazine adverb pre-launch in target publications Private Event: This event is business to business context for meet the key contacts, journalists, bloggers and boutique owners. On the event day we will provide goodie bags which include lookbook and lightweight summer cashmere tanks. Our SS16 collection will be displayed and short runway show will run on the day. The purpose of private event is to find and build up business contacts to acquire potential business relations with partners. Where: Somerset House When: 15th February Open Event : Nomad events intend to acquire customers, encourage loyalty and raise awareness through word of mouth. Anna Park’s boutique shop is an ideal venue for the open event of Nomads as its location is essential. It will take place on 8th March 2015 as it is the International Women’s Day. On the day discount of 20 percent on all clothing items will be available upon every purchase. Where: Anna Park’s boutique When: Women’s day 2016 8th March 78
Marketing Mix
79
Marketing Mix
Press
Targeted Publications for campaign and press ads: Women’s home, Stylist, Red, Bazaar, Glamour, Elle and
Bloggers and Online Publication:
Nomad is using PR tool to encourage bloggers to discuss our brand. The Blogs will be related with fashion and organic,sustainable lifestyle bloggers. We will contact with 20 bloggers across the UK and send goodie bags filled with introduction garments from Nomad. As a consequence, it will be an effective tool for awareness of Nomad and an efficient way to advertise the opening day event. Measuring PR effectiveness is vital to monitor and control the effectiveness of the marketing strategies implemented and take corrective actions. Blogs includes: Eco Fashion World Eco Magazine http://greenglitter.co.uk/ http://www.amisha.co.uk/
Direct Marketing
Direct Marketing is one of the popular communication tool to be adopted by the new developing brands. It is a direct communication attempting to create personal relationship and covers direct mail via post or email, mail order catalogues, text message alert and magazine insert. Nomad takes an approach to direct marketing communication with only 5 percent of the overall communication mix. Nomad is adopting an email customer engagement strategy to interact with customers by sending 30 emails per day. The main source of the customer contacts is the Nomad official website that upon the online purchase customers are asked to register themselves on the website provided their contact details specially their email address.
Trade fairs:
Nomad will market ourselves in the big trade fairs such as Pure London and Scoop.
80
Marketing Mix
Nomad
Cashmere
Elligant, stylish and sustainable cashmere made with the highest quality Mongolian luxury yarm. Nomad is a womenswear cashmere brand found on transparency. We want to make a story behind our design equally as beautiful. The collection offers dresses, cardigans, tops and sweaters. Sizes: 8-14 Tel 020 4281 1378. www.nomadcashmere.co.uk
81
Marketing Mix LOOKBOOK Look book will be sent out to press with the launch event and also online purchased customers. Inside the look book includes illustrated looks shown with inspiration and product details including colour, prices, stock number and available size options. In the last couple pages provided manufacture details and carbon emission is calculated and transferred into carbon dioxide produced per kilometer unit which called carbon footprint.
SS2016 Collection
82
Marketing Mix
83
Marketing Mix
AW 2016 Collection
84
Marketing Mix
85
4. Business Plan
Busines Plans
Finance Plan The figure 2 demonstrates the first year cash flow including the from the cash in and cash out on the business startup. Refer to Appendex 2 for full cash flow
Sales Revenue: Retail sales are predicted to total: £93,000 The projection of sales reflected on the time of year and the quarter from March to July will produce less profits. There are two reasons. Firstly, consumer may buy less cashmere products during the spring and summer. Secondly, Spring summer collection price and quantity of products are less than Autumn Winter collection. In August is the traditional summer sale through until September which leftover stock from June will be sold at discounted price of 20% to clean the stock room for AW collection. October to end of September and Christmas time is the sales peak time and will generate more profits in this period. In December it is the highest sales with the £12,000. Assessing the outgoings and income, in order to break even Nomad will need to do weekly sales of £1,900 and monthly around £7,600.
Opening Cash Balance: Total cash: £40,000 Nomad proposes a loan of £25,000 to help on the start up costs for the first 6 months of the business, after that Nomad will have substantial balance from the business to pay monthly expenditures. £500 monthly on interest charge and repayment of the loan over 5 year period at 3.2% interest rate. In addition, the owners saving money of £10,000 and family support of £5,000 will be topped up on it. In total the business will start with £40,000. I will sufficiently fund my personal living for the first six months before taking a wage of £2200 a month there after.
88
Business Plan
Total cash out of the first year: £111402 Retail sales are predicted to total: £93,000 Opening Cash: £40,000 Closing cash balance: £21,598 Expenditure: 1.Suppliers As our suppliers are in Mongolia that the transport fee is relatively high and also cashmere is luxury fibre that it costs high to manufacture. Therefore, the material, manufacturing and transport cost around £20,000 for the annual.
damaged and theft of tools and machineries, the stock insurance option will help to set company’s mind at rest. 3.Salary Nomad hires 2 employees from start of the business onwards and salary will be £2,200 per month (per hour £6 and weekly 30 hours), ideally I would like to hire a designer and accounting.
2.Studio Rent The workshop studio rent in London is around £2,000 per month including electricity and broadband. We are limiting this to maximum of £27,000 per annum. Furthermore, Nomad will spend £5,000 for decorations and equipments at the start up and for repairs and maintenance of equipments £300 is allocated per annum. It looks relatively low because purchasing assets will incur big lump sum in the early years of business and stays constant in later years. To reduce the risk of breakdown and maintenance, Nomad has insured the primary assets. For instance, we bought building and stock insurance with a combined cost of £90 per month. Stock insurance is important that if stockroom is
4.Marketing Nomad will invest less than £30,000 in the first year. The printing and press pack will cost £1500 each season and total of £3000 annually. Nomad allocates £11,490 per season on advertising in 2 magazines. Red: 4 panels (9 panels full page) £1685 Elle: Half page £2370 Total of £4055 (The Heart Magazine, 2015). The PR agency will cost £10,000 a year which includes event and press publication. Digital material will cost start with £500 includes building app and e-commerce. The owner will deal with later online posting and ecommerce/ application. 89
Business Plan
Five-Year Plan Nomad Revenue is expected to increase each year as the brand awareness grows to customers. Sales are predicted to increase by 10% in each year. Year 1 -£10480 Year 2 -£3663 Year 3 £4419 Year 4 £13309 Year 5 £23087 As below in table 5, it is provided the five consecutive years of Nomad’s profit or loss accounts. In practice, new businesses operates on a loss in the first few years because expenses accrued by marketing and promotional activities much higher than the those who already have significant market share in the industry. Over the years marketing and overheads costs will decrease as the brand becomes self sufficient reducing marketing expenses and overheads, hence the profits will go up. Assumptions made for the calculation of profits are as follows: Revenue is predicted to increase by 10% per annum. It is based on the assumption that effective marketing strategy will attract more customers and therefore the profits. Brand awareness amongst the customers will increase and loyal customers will incur repeat sales as there is no impact of seasonal fluctuations. Nomad is introducing cashmere garments wearable even in the hot summer time. Cost of sales are calculated based on the margin of 79%. Thus, cost of sales equals to 21% of the revenue figure. Marketing expenses will be constant in the first three years.
90
Business Plan
91
5. Implementation & Control
Implementation & Control
The following measured will be taken in order to monitor the success rates of Nomad, in-line with each separate strategic objectives. As Nomad is a new business concept with mixes both online and in-store with promotion, the performance indicators will be both financial and behavioural.
94
Implementation & Control Objectives
Measurement
-Develop an awareness of the brand
Number of visits to website per month Number of visitors to boutiques shops Press coverage (blogs, magazines) Number of followers on social media/ mail out subscribers Number of event attendees and general publicity
-To establish a customer base and build customer loyalty by winning the trust and confidence of the customers who seek quality, choice, service and honesty
Customer engagement rate and level of with consumer ( commitment, engagement and emotional bonding) Comments on social media Customer enquiries solved vs. unsolved enquiries per month Number of sales
To acquire at least 5% market share of cash- Total Sales figure benchmarked to the industry mere industry in the UK by 2019. average figure Number of New customers Spending amount per customer Customer engagement rate and level of with consumer ( commitment, engagement and emotional bonding) -Build a strong relationship with suppliers and Number of B2B contacts boutique shop owners i.e. distributors Number of management visits to supplier premises per year Number of visiting suppliers Number of involvement in trade shows and exhibitions Number of visitors on B2B events (calculated as number of visits to events divided by total number of events) -Achieve sufficient profit to retain the compa- Profitability ratios such as gross and operating ny’s distinctive character. profit margins Number of visitors on blog per month Number of naturally generated press and online coverage (blogger and magazines). 95
Strengths
Outsourcing the production processes enables Nomad to have a competitive pricing strategy in the luxury cashmere market. Brand reputation will be built on sustainable and ethical values of Nomad. Introducing fashionable and distinctive styles gives us a competitive advantage over our traditional style competitors. Nomad is a transparent company, that information on materials, manufacturing details, price calculation and carbon dioxide emission footprint are provided on the online store.
Opportunities
There is not a clear market leader as of yet. There is no one market dominator in the cashmere retailing industry. Competition level in cashmere clothing industry is moderate and Nomad has a potential to become a market leader. Awareness of organic and sustainable fashion is growing. Generation X have high disposable income and they are the biggest online spenders of all other age group. There is a gap in contemporary style cashmere product. Targeting the Generation X via an online channel and boutique shops.
96
S O
Weakness
Cashmere is relatively expensive material and therefore cost leadership strategy cannot be implemented. Furthermore, the cost base is higher than the other clothing companies. Inbound logistic is relatively longer than the local competitors. It might take longer to build brand awareness as Nomad does not have own stores. It is still considered niche market by the majority.
W T
Threats
As Nomad is a new entrant to the market, there can be a potential competitive strategy from the existing competitors. It is affected by economy, consumers are still sacrificing quality over cost. Consumers are not educated about summer thin layer knitted cashmere. Yet many still prefer other materials during summer. The weather will affect on the profit. Threats from the substitute products such as cotton made jumper and dresses. Due to lack of current demand, price of cashmere are still expensive than standard materials.
97
6. Appendex
100% Cashmere
100% Cashmere
100% Cashmere
100% Cashmere
100% Cashmere
Polo-Neck Dress
Collar Sweater Dress
Cowl Neck Sweater
Cutaway Sweater
Peplum Skirt
Fabric 100% Cashmere
Images
Gap Sleeve Dress
Plain red plain burgundy
Plain red Plain blue Plain green Plain grey
Printed grey Printed red Plain green
Printed pink Plain green Plain dark grey
Plain red Plain green Printed grey
Printed pink Printed red Printed grey
Colours
Sizes
8-12
8-12
8-12
8-12
8-12
8-12
RRP
£355.21
£1705.00
£57.29
£52.08
£62.50
£66.67
£75.00
£41.67
Cost
£200.00
£275.00
£250.00
£300.00
£320.00
£360.00
79,1%
79,1%
79,1%
79,1%
79,1%
79,1%
Margin Achieved
Total Quantity
190
20
40
40
30
30
30
£11333.33
£833.33
£2291.67
£2083.33
£1875.00
£2000.00
£2250.00
Total Cost
£54400.00
£4000.00
£11000.00
£10000.00
£9000.00
£9600.00
£10800.00
Total Retail
Total Margin
79,1%
79,1%
79,1%
79,1%
79,1%
79,1%
Appendex 1
100% Printed yellow Featherweight Plain pink Cashmere Plain blue
100% PlainPink Featherweight Plain Blue Cashmere Printed Grey
100% Plain pink Featherweight Printed grey Cashmere Printed yellow
100% Printed yellow Featherweight Plain pink Cashmere Plain blue
100% Printed yellow Featherweight Printed grey Cashmere Plain pink Plain blue
Sweater dress
Asymmetric Cardigan
Dolman Sweater
V-Neck Sweater
Tank
Total
100% Printed pink 1 Featherweight Printed pink 1 Cashmere Printed pink 1
Lew Dress
Colours
100% Printed pink Featherweight Printed yellow Cashmere Plain white
Fabric
Maxi dress
Images
Sizes
8-12
8-14
8-14
8-14
8-14
8-14
8-14
RRP
£1615.00
£50.00
£230.00
£240.00
£255.00
£300.00
£270.00
£270.00
Table 1 Cost
£334.50
£10.50
£47.00
£50.00
£53.00
£62.00
£56.00
£56.00
79%
79%
79%
79%
79%
79%
79%
79%
Margin Achieved
Total Quantity
170
20
30
30
30
20
20
20
£8190.00
£210.00
£1410.00
£1500.00
£1590.00
£1240.00
£1120.00
£1120.00
Total Cost
£39550.00
£1000.00
£6900.00
£7200.00
£7650.00
£6000.00
£5400.00
£5400.00
Total Retail
79%
79%
79%
79%
79%
79%
79%
79%
Total Margin
Appendex 2
Cashflow Pre Start Opening cash balance
March
April
May
June
July
Augu
£12115.00
£9270.00
£14480.00
£12295.00
£12505.00
£11715
£6,000.00
£10,000.00
£8,000.00
£5,000.00
£4,000.00
£6,000
Cash In Sales Owner Capital
£10,000.00
Bank Loan
£25,000.00
Other (Family)
£5,000.00
Total Cash in
£40,000.00
£18115.00
£19270.00
£22480.00
£17295.00
£16505.00
£17715
£4,000.00
£0.00
£0.00
£4000.00
£0.00
£0.00
£5000
£595.00
£0.00
£0.00
£595.00
£0.00
£0.00
£666
Rent Studio (include: Water/ Electricity/Broadband)
£2,000.00
£2,000.00
£2,000.00
£2,000.00
£2,000.00
£2,000.00
£2,000
Equipments
£5,000.00
Package (Box+Bag+ Swing tag)
£1,500.00
£0.00
£0.00
£800.00
£0.00
£0.00
£0
Wages
£2200.00
£2200.00
£2200.00
£2200.00
£2200.00
£2200.00
£2200
Stock Insurance
£40.00
£40.00
£40.00
£40.00
£40.00
£40.00
£40
Building Insurance
£50.00
£50.00
£50.00
£50.00
£50.00
£50.00
£50
£1500.00
£0.00
£0.00
£0.00
£0.00
£0.00
£1000
£500.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0
£0.00
£4055.00
£0.00
£0.00
£0.00
£0.00
£0
PR (Events and Press Publication)
£10000.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0
Total Marketing Expenses:
£12000.00
£4055.00
£0.00
£0.00
£0.00
£0.00
£1000
£500.00
£500.00
£500.00
£500.00
£500.00
£500.00
£500
Total Cash Out
£27885.00
£8845.00
£4790.00
£10185.00
£4790.00
£4790.00
£11456
Closing Cash Balance
£12115.00
£9270.00
£14480.00
£12295.00
£12505.00
£11715.00
£6259
Cash Out Material and Manufacturing Transport
Marketing Press pack Digital Materials (App/ Ecommerce) Advertising (Elle and Red)
Loan repayment
Cashflow July
August September Sale
October
November
December
January sale
February Total
2505.00
£11715.00
£6259.00
£6969.00
£1608.00
£6218.00
£13428.00
£18338.00
,000.00
£6,000.00
£6,000.00
£9,000.00
£10,000.00
£12,000.00
£9,000.00
£8,000.00
£93,000.00 £10,000.00 £25,000.00 £5,000.00
6505.00
£17715.00
£12259.00
£15969.00
£11608.00
£18218.00
£22428.00
£26338.00
£133,000.00
£0.00
£5000.00
£0.00
£5000.00
£0.00
£0.00
£0.00
£0.00
£18000.00
£0.00
£666.00
£0.00
£666.00
£0.00
£0.00
£0.00
£0.00
£2522.00
,000.00
£2,000.00
£2,000.00
£2,000.00
£2,000.00
£2,000.00
£2,000.00
£2,000.00
£26,000.00 £5,000.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£0.00
£2300.00
2200.00
£2200.00
£2200.00
£2200.00
£2200.00
£2200.00
£2200.00
£2200.00
£24200.00
£40.00
£40.00
£40.00
£40.00
£40.00
£40.00
£40.00
£40.00
£520.00
£50.00
£50.00
£50.00
£50.00
£50.00
£50.00
£50.00
£50.00
£650.00
£0.00
£1000.00
£0.00
£0.00
£500.00
£0.00
£1000.00
£0.00
£4000.00
£0.00
£0.00
£500.00
£0.00
£100.00
£0.00
£500.00
£0.00
£1600.00
£0.00
£0.00
£0.00
£4055.00
£0.00
£0.00
£0.00
£0.00
£8110.00
£0.00
£0.00
£0.00
£2000.00
£0.00
£0.00
£0.00
£0.00
£10000.00
£0.00
£1000.00
£500.00
£6055.00
£600.00
£0.00
£1500.00
£0.00
£25710.00
£500.00
£500.00
£500.00
£500.00
£500.00
£500.00
£500.00
£500.00
£6500.00
4790.00
£11456.00
£5290.00
£14361.00
£5390.00
£4790.00
£4090.00
£4790.00
£111402.00
1715.00
£6259.00
£6969.00
£1608.00
£6218.00
£13428.00
£18338.00
£21548.00
£21598.00
Appendex 3
The Compatitors
COMPETITORS ANALYSIS Brand Name
Concept and Values
Hawick Cashmere
Hawick cashmere brand is luxury cashmere made in Scotland. The Hawick Cashmere Group consists of two operating arms. The Hawick Cashmere Company Ltd operates the manufacturing and wholesale aspects of the business, whilst Hawick Cashmere Retail Ltd operates the international network of retail stores. The company owns total of 14 stores in 5 countries. The unique selling points are as follows: the product demand raw material of the high quality. They use latest technology to ensure every stitch is as the designer intended. Expert craftsmanship
Pure Cashmere
All Pure cashmere products are made from the world”s finest cashmere acquired directly from 100% sustainable sources in Inner Mongo- lia, home to a pedigree of goats that grow the whitest and finest cashmere on the planet. Their mission is “The world’s finest cashmere, sen- sibly priced and expertly crafted into beautiful, modern styles to make you feel special and look terrific”. They have owned 6 boutique shops in UK and sell products online.
Brora
Brora is British cashmere brand that their cash- mere is ethically sourced from the native goat of the Mongolian plateaux and manufactured in Scotland. The products are inspired from vintage style and the colour inspiration often comes from Scottish landscape and bold art. They has owned 15 stores in the UK and 1 store in the USA.
Johnstons of Elgin has been creating the finest wool and cashmere cloth, clothing and accessories since 1797.The product Johnston’s Of Elgin made in Scotland and they manufacture, wholesale and , the cashmere is dyed, teased, carded, spun and hand-finished by the latest genera- tion of Elgin craftsmen.
N.Peal
N.Peal is British brand that clothing design inspiration often comes from British heritage, simplicity and understatement to the fash- ion-aware. The unique selling point of N.Peal is customised products that consumers can make their own sweater and choose from 30 colour options. N.Peals owns 3 stores in the UK.
COMPETITORS ANALYSIS Brand Name
Concept and Values
Semon
Semon is a London based high end luxury cashmere brand. They focused on design, artisanship, quality and the product is made of 100% pure Mongolian cashmere. The brand sale women clothing and it aims to satisfy the modern sophisticated women of any age who desires unique and natural luxury. The essence of the brands success is due to innovative, wearable styling and high quality. Semon sale product online and also business to business.
Oyuna
Oyuna cashmere is London based Mongolian luxury cashmere brand. A nomadic sense of adventure is present in OYUNA crafts, as strongly influenced by the restless creativity of London as it is the wild roots of Mongolian cashmere. Oyuna cashmere sells from home accessories collections to the seasonal clothing collections, each piece is as progressive as it is mindful of the material’s intrinsic qualities. It is resolutely uncompromising
 in its execution. It is softly-rendered luxury forged for a hardwearing lifestyle. The brand sells products online and also business to business.
Pringle of Scotland is the iconic Scottish brand as a luxury hosiery manufacturer founded in 1815. From the beginning, technical innovation has led to the creation of knitwear as outerwear. It became one of the first luxury knitwear manufacturers in the world, having expanded throughout Europe, Pringle of Scotland the US and Asia during the 19th and 20th centuries. Pringle of Scotland created the intarsia design known today as the Pringle signature argyle pattern. The company has 48 stores in 18 countries and online selling. The company does not sell sole cashmere product it is well diversified brand.
Appendex 4 The Compatitors Table 1
Semon
Oyuna
Brora
Pure Johnst Collecti on of on Elgin
Pringle N.Peal of Scotlan d
M&S
John Lewis
Uniqlo
Mark et Level
Contem Premiu porary m Luxury
Highend high street
HighEnd and High Street
Highend High Street
Luxury
HighStreet
HighStreet
Highstreet
Price
Start at £100 for cardiga n £370
£280£700
£280£380
£100£300
£300£400
£1000.00 £130£300
£70£130
£70£195
£50£80
Targe aged 30-60 t Cust omer
aged 28-45
aged 30-50
aged 25-45
aged 30-50
age +30
aged 35-55
aged 30- 55
aged 18-45
Style
Simple Classic
Nomadi c sense of adventu re modern contem porary style
Bohami Fashion Simple an forward casual colourfu l country
Fashion Simple Innovat and or classic
Classic and trendy
Classic
Simple
Quali ty
High
High
Mid High
Mid High
High
High
Mid High
Middle
Midlle
Middle
Sour ce
sourced and manufa ctured in Mongoli a
sourced and manufa ctured in Mongoli a
Manufa ctured in Scotlan d
sourced in Inner Mongoli a Manufa ctured in Scotlan d and Italy
Manufa Made in ctured Scotlan and d sourced in Scotlan d
Made in Scotlan d Source d in Inner Mongoli a
Made in Made UK, in Italy Turkey Merino and China,
highend high street
age +30
Made in Japan
Appendex 5 Brand Onion
Offer fashionable sustainable and orginic clothing
nature beauty feminine Unique prints and diverse colours indepen- Be exc;usive dent
eco Organic fibre 100% Cashmere Eligant respected Confident
Classic
Quality Ageless Casual
Sell in indepedent botiques
Offer clear and efficient filtering system
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