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TA B L E O F C O N T E N T S
E X E C U T I V E S U M M A R Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 4 I N I T I AT I V E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 5 C O M PA N Y O V E R V I E W S W OT A N A LY S I S
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BRAND IDENTITY
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CURRENT POSITIONING DISTRIBUTION
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DIRECT COMPETITION INDIRECT COMPETITION
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S TO R E LO C AT I O N
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MERCHANDISE ASSORTMENT P R O M OT I O N A L P L A N FINANCIAL PLAN CONCLUSION
APPENDIX
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TA R G E T M A R K E T
DESIGN & MERCHANDISING
WORKS CITED
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EXECUTIVE SUMMARY
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This initiative exists to establish and further explore the Hugo Boss brand extension line, Boss Orange, through a pop-up-shop event. As it currently exists, Boss Orange attempts to capture the urbanite millennial, with lighthearted yet cool styles and silhouettes. Boss Orange offers accessibility through moderate pricing, yet is still full of untapped potential within its intended market. In order to harness this potential, the rebranding of Boss Orange into House of Hugo will be revealed at the event. In order for this event to be a worthy investment, House of Hugo will need to attract the correct attendees. This will be guaranteed by a selective invite-only admittance of selected bloggers through RSVP. Another success factor will be that House of Hugo is widely discussed on all channels of social media by both bloggers and consumers at large. All of this will hopefully result in an increase of sales, social media engagement, and brand awareness post-launch.
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This pop-up-shop aims to capitalize on currently trending themes regarding the pace of change in our society. In current visual merchandising and media, we see a beckoning to another era, like this one, of massive industrialization and prosperity. Thus, we have chosen to tell a story from the 1920s. The event will be held at a speakeasy located in Savannah, Georgia called Mata Hari. This establishment requires a special key for entrance, which is exceptionally hard to come by. Mata Hari does not advertise its existence, nor is it easy to locate without prior knowledge. House of Hugo will rely on the ambiance and exclusivity inherently associated with a speakeasy, particularly Mata Hari, to relay the mood and concept of the rebranding.
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Guests of the event will consist of fashion bloggers, press contributors, and selected influential locals in hopes that they will promote House of Hugo on their respective platforms. They will be encouraged to share the experience with the tag #HouseofHugo. They will receive a letter by mail inviting them and one guest permission to attend upon RSVP. Once accepted they will receive another mailed envelope containing a key, dress code requirements, and instructions. Mata Hari’s exact location will be left off and only include a pick up location. On the night of the event, guest will assemble at the given location to board horse drawn carriages taking them to Mata Hari. Upon arrival, they will have to relinquish ownership of the key to enter. Inside, themed cocktails and hors d’oeuvres will be served while a jazz singer performs and burlesque dancers put on a show. Merchandise will be presented in various locations and available to purchase through the Square checkout system on tablets carried by the waitresses. Gift bag distribution will occur upon departure. The gift bags will contain branded House of Hugo bottles of absinthe, E-hookah pens, and discount cards redeemable online or at any House of Hugo location for 20% off any merchandise through January 1st.
I N I T I AT I V E 5
THE HUGO BOSS GROUP
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The Hugo Boss Group was founded by Hugo Ferdinand Boss in 1924 and remains headquartered in Metzingen, Germany. The brand was established as a clothing factory that provided military uniforms and suits. Today, the company has evolved into a luxury fashion house, operating the labels of BOSS, BOSS Orange, BOSS Green, and HUGO. Each label targets a different consumer group and covers an extensive product range consisting of business wear, evening wear, sportswear, shoes and leather accessories, as well as licensed fragrances, eyewear, watches, children’s fashion, mobile accessories, and home textiles. Products are sold around the world in more than 1,000 stores, approximately 7,100 points of sale, as well as online. Currently, the company aims to further improve its market positioning in womenswear by the recent appointment of Jason Wu as Artistic Director of BOSS. As a publicly traded company, shareholders were pleased with his addition because Hugo Boss will now receive more attention at New York Fashion Week (NYFW). Hugo Boss plans to shift majority sales from wholesale to direct retailing by adding about 50 new locations this year, in addition to the 1,000 it already operates. The fact that Hugo Boss generated more sales in retail than in wholesale for the first time last year confirms this is a strategy that works, taking in 54 % of its sales from its own retail business in fiscal year 2013. The urban casualwear collection BOSS Orange is the second largest brand after the signature BOSS brand, making up about 12% of total sales for the company. The label was established in 1999, but did not expand into womenswear until 2006. It has an easygoing appeal catering to younger customers who prefer a “laid-back lifestyle and value individuality, mobility and spontaneity as parts of their personal mindset.” It is an uncomplicated, modern look. The brand strategy of Hugo Boss ensures a clear, identifiable presence while being able to address the diverse attitudes and needs of different targeted groups. Boss Orange does just this, catering to a young, premium market.
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STRENGTHS Hugo Boss is an established and popular brand name with a reputation of quality goods and a signature, distinctive look. Hugo Boss is best known in the menswear market for their men’s suiting. The range of products Hugo Boss offers is immense, fulfilling almost every individual’s needs. Diverse product and brand offerings come from the lines BOSS, HUGO, BOSS Orange, and BOSS Green. The recent and surprising addition of Jason Wu as creative director has given the brand new media attention. He’ll be charged with expanding Hugo Boss’s womenswear offering and elevating its profile. State-of-the art production facilities are spread across the world, including in Germany, Turkey, Italy, Poland, Switzerland, and the United States. This gives great control and streamlined vertical retailing.
OPPORTUNITIES Throughout research, it has been noted that Hugo Boss Group is currently investing heavily in their womenswear lines. This is an indication that Hugo Boss Group has shifted its efforts away from its menswear market. House of Hugo sees this decision as an opportunity to revitalize this more challenging segment, in which Hugo Boss is rooted. There is anticipated growth worldwide in the premium and luxury goods market. Some analysts project that “by 2025 about 600 million more people will have the purchasing power to buy premium and luxury goods compared to today” (Annual Report). Interest in fashionable clothing for young men is growing. More young men value a fashionable appearance to express their personality or stand out from the crowd. The American menswear industry is expected to grow 7% for the period from 2013-2018 (Menswear in the United States). The importance of the Internet has radically changed shopping habits. Collaboration of e-commerce with brick-and-mortar retailing creates opportunities from House of Hugo to offer more products. For the first time in 2013, the Hugo Boss Group generated more sales in retail rather than in the wholesale business, with only 44% of total sales generated from wholesale (Annual Report). This shows the growth of potential opportunities in direct retail for House of Hugo.
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S WOT
WEAKNESSES Most products are very highly priced, resulting in a lower sales volume than other, lower-priced competitors. House of Hugo must rely on other factors to drive strategic sales. Boss Orange struggles to cope with recent trends, as its parent brand is very traditional. Advertisements from Boss Orange are stagnant and lacking message. There is a absence of strong presence in various potential emerging markets. Hugo Boss operates internationally, and as a result, political and economic conditions, trade policies, and exchange rates affect the company greatly. Making an effort to work only in stable economies is important.
THREATS Changes in fashion and lifestyle trends are unpredictable. Products from House of Hugo could be marketed at the wrong time or not appeal to a particular individual’s fashion sensibility. Challenges lay in identifying the right trends at the right time. Success of House of Hugo hinges on the brand’s image and positioning in the premium and luxury markets, yet oversaturation is seen as a negative factor. As a result, protecting and maintaining brand image is vital at all times. Competition in the fashion business is increasing dramatically every year. Competitors are also aggressively pursuing the emerging menswear market and could encroach on the market share of House of Hugo.
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IDENTITY
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According to Hugo Boss’s annual report, Boss Orange’s brand identity can be broken down into four major categories. The first is brand as person. Boss Orange identifies itself as being spontaneous, laid-back, individual, light-hearted, and creative. As a product, the brand is of premium quality with an aesthetic leaning towards vintage, casual, and urban. As a symbol, Boss Orange identifies itself with an orange logo featuring a play on the letters “B” and “O” accompanied by “Boss Orange” in Hugo Boss’s signature typeface. As an organization, Hugo Boss tells us it “inspires people towards success” and has “corporate values of quality, passion, respect, cooperation, and innovation.”
Current positioning is based on a price/accessibility matrix composed of the amount of points of sale as well as the average prices of relevant items for both Boss Orange and its competitors. Competitors identified are J. Crew, Original Penguin, Banana Republic, Zara, Diesel, Urban Outfitters, Polo Ralph Lauren, Topman, DKNY, and Guess. Points of sale are found both in store and online. E-Commerce amounts were derived from the number of countries the proprietary websites ship to directly. The relevant items are those which were in common with Boss Orange and included watches, belts, pants, button-down shirts, and jackets. Zara has the highest accessibility with 2197 total points of sale. Original Penguin has the lowest accessibility with 34 total points of sale. For accessibility, the median brand is Guess with 281 total points of sale. Boss Orange has 1023 total points of sale.
POSITION
Diesel has the highest price point with an average price of $1,944.50 per item. Zara has the lowest price point with an average price of $344.50 per item. For price, the median brand is Guess with an average price of $997.50 per item. Boss Orange has an average price of $1,175 per item.
APPENDIX FIG. 1.1, 1.2
P R I C E / AC C E S S I B I L I T Y
H I G H AC C E S S I B I L I T Y
LOW AC C E S S I B I L I T Y
HIGH PRICE
LOW PRICE
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57% 20%
23%
DISTRIBUTION
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OVER 7,100 POINTS OF SALE G LO B A L D I S T R I B U T I O N 57% Europe 20% Americas 23% Asia/Pacific R E TA I L S TO R E S : 371 Freestanding Stores 526 Shop-in-Shops 113 Factory Outlets 13 Countries E-Commerce
WHOLESALE: Shop-in-Shops Multi-brand Points of Sale Franchise Businesses
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P R O M OT I O N Hugo Boss Group is actively working towards increasing the company’s visibility across all of their various brands. Promotion accounts for 22% of their expenditures, combined from “sales and marketing” and “other capital expenditure”. The group aims to further establish their brand by promoting the company through trade marketing, corporate and brand communication, E-commerce, as well as sponsorships and events. C O M M U N I C AT I O N : According to the Hugo Boss Group Annual Report, corporate communication primarily focuses on press conferences, media reports, and events held for the annual shareholders’ meeting. Having corporatelevel communication allows Hugo Boss Group to establish a corporate identity that in turn promotes their public image in core markets. Brand communication gives each of their individual lines awareness and support in increasing the value and knowledge of Hugo Boss to consumers. Hugo Boss Group collectively works to establishing brand awareness through investing in editorial spreads in leading fashion magazines, as well as interviews with various designers and publications. Advertising campaigns are constantly updated depending on the current season and are publicly displayed through the use of professional media agencies.
E-COMMERCE: Hugo Boss Group’s Internet presence plays a significant role in communication. Hugo Boss Group’s E-commerce hosts special sales promotions, and allows the consumer to constantly stay up to date on new brand products and company information. The company’s eMag offers a place for consumers to view the current assortment and acts as an individualized advertisement for the different brands. Having E-commerce allows Hugo Boss Group to communicate more efficiently with consumers and allows them a sense of flexibility when reacting to the consumer’s wants and needs.
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C A P I TA L E X P E N D I T U R E B Y F U N C T I O N A L A R E A ( I N % ) 2013 (2012) OT H E R C A P I TA L E X P E N D I T U R E 19 (20%) A D M I N I S T R AT I O N 17 (22%) SALES AND MARKETING 3 (4%)
OW N R E TA I L B U S I N E S S 61 (54%)
TRADE MARKETING: Whilst many companies choose to invest in business-to-consumer selling, various companies also focus on trade marketing through the wholesaler, manufacturer, and retailer levels as well. To keep more than just the end consumer in mind, companies also value the credibility of certain middlemen to act as brand ambassadors for the company. Hugo Boss Group ensures that visual merchandising is relevant to the specific retail locations for the individual brands, as well as develops the advertising and promotional materials for the company’s partners.
SPONSORSHIP AND EVENTS: By participating in designer interviews and NYFW, Hugo Boss Group is bridging the gap between company and consumer. Being a part of this well known, sponsored activity allows the company to promote their brand and communicate strong company identity and brand awareness, across all lines, to their target consumer. Furthermore, Hugo Boss Group currently continues to work through print ad campaigns, and collaboratively work with NYFW to promote brand awareness for new lines and products. It is their goal to expand their womenswear line by bringing more attention through store expansion and collaboration with designers, such as Jason Wu.
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The United States operates under a Federal Republic system; a form of government made up of a federal state with a constitution and self-governing subunits. In this system citizens vote for officials and representatives to hold power. The next presidential election year will take place in 2016. Differences in the two main political parties of the government have caused friction, including a brief government shutdown in 2013. Individual state governments lack uniformity in business law and can create challenges for businesses operating in more than one location. Overall, the United States has a stable political environment, healthy for House of Hugo to operate in. The World Bank ranked the United States as forth in ease of doing business in 2014. Contributing factors include the United States as a member of the World Trade Organization, as well as regulatory action only being taken by the government within the domestic economy. Ease will also be improved by the current negotiation of the Trans Pacific Partnership, which will include countries such as Chile, New Zealand, Japan, Australia, Canada, Malaysia, Mexico, Peru and Vietnam.
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The United States has one of the most developed economic systems in the world. The country has a stable, low, healthy inflation rate of 1.9% (United States In-Depth PESTLE), meaning that normal transaction habits should continue in the country long term. The interest rate set out by the Central Bank is a low 0.25%(United States In-Depth PESTLE), encouraging consumer borrowing and spending. Although, House of Hugo should keep in mind shopping habits of the average American have been altered due to the 2008 recession. Spending is now more dependent on income levels rather than credit available. The current monetary exchange rates are in favor of House of Hugo with a ratio of €1.00 to $1.25. Income inequality has been an issue in the United States economy since the 70’s. In 2012, the country was ranked second worst in terms of income inequality of the 34 members of the Organization for Economic Co-operation and Development (United States In-Depth PESTLE). The country has also recently developed a reshoring trend, possibly in result of the rising cost of labor in China. This, as a result, positively impacts the economy through job creation. It is already estimated that reshoring has added more than 100,000 jobs to the US manufacturing sector during from 2011 to 2013 (United States In-Depth PESTLE). The labor market situation is improving, but high unemployment and underemployment among the young population remains a concern. This should be taken into account for the House of Hugo demographic.
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The United States enjoys the fourth highest standard of living in the world, after Australia, Norway, and the Netherlands (The Human Development Index). A vast majority of the population is highly educated, with around 42% of the adult population in the age group of 25-64 having attained tertiary education. The median age is 38 years old, with male’s accounting for 51% of the total population (United States In-Depth PESTLE). The consumer decision process of Americans involves a high emphasis on Social Media, as consumers value peer’s opinions more and more. Consumer social responsibility is also on their minds as many now consider the environmental or social impact of a product before buying. Events such as the factory collapse in Bangladesh have received much media attention bringing this issue to the forefront of American minds. Given this and other various scandals, consumers are expecting and demanding more transparency by companies. House of Hugo should operate consciously and sustainably to avoid harm to society.
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Emerging technology is altering the United States’ retail operations with heightened demands and expectations. Anytime, anywhere access is now a base standard with the increase of online shopping and proliferation of smartphones and tablets. An omnichannel strategy is essential to reaching the US consumer consistently across all channels. Point-of-sale transactions are also becoming increasingly mobile. Checkout counters in brick and mortar locations are being replaced by technologies such as Square, Apple Pay, Venmo, and Pay Pal. Ease of shopping is important to Americans and should be taken into consideration by House of Hugo.
The United States is responsible for 19% of global emissions of carbon dioxide (United States In-Depth PESTLE). This indicates a lack of commitment to the environment and to enforcing regulations. Yet, steps by the United States are being taken such as the formation of the Asia Pacific Partnership on Clean Development and Climate to improve national and international environmental standards. Energy concerns within the country have decreased as the dependency and price of oil declined. The shale gas boom could help in realizing the United States’ ambition of energy self-sufficiency long term. Climate in the area is overall moderate. Droughts, wildfires, and floods are becoming more common due to climate change. Hurricane Sandy, for example, caused devastation to the area. Precautionary and relief efforts by the government have been put in place, thus concern for House of Hugo is negligible.
The United States Customs and Border Protection, as well as the Federal Trade Commission, enforce labeling laws and acts in the United States. House of Hugo must label garments by fiber content, country of origin, manufacturer identity, and care instructions. The country also enforces Equal Employment Opportunity laws. This means it is against the law for Hugo Boss to discriminate on the base of race, color, religion, sex, national origin, age, disability, political affiliation or beliefs. Another guideline to follow is the Consumer Bill of Rights. This international standard of eight basic rights is recognized by the United Nations and participating members. It states the right to safety, to be informed, to choose, to be heard, to satisfaction of basic needs, to redress, to consumer education, and to a healthy environment. The Consumer Product Safety Commission sets more standards House of Hugo must follow, these are set in place in order to eliminate potentially harmful products from the marketplace. This means that House of Hugo garments must meet standards for the inflammability of the textiles.
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SIZE & SCOPE In the USA, demand for men’s clothing at the retail level amounted to $73.0 billion in 2013. Tops dominate the men’s apparel market at 46%, up almost 10% from 2008 (Men’s Clothing: United States). This is due in part to the fact that tops require more frequent replacement, as are they are made of lower quality fabrics. Also, because tops are viewed as centerpieces for outfits, the ratio of tops to bottoms leans heavily towards tops. Bottoms take up 23% of the market share, up 3% from 2008. Premium jeans, which sell at upwards of $200 per pair, are continuing to increase in popularity and boost segment value. Coats, jackets, and suits take 13% of the market share. Segment demand dropped 14% from 2009 for several reasons (Men’s Clothing: United States). For one, sales in this segment demand fluctuate with unemployment rates. This was proved by the fact that the US unemployment rate jumped 60% in 2009 (Men’s Clothing: United States). These items are also the most durable of the segments, and because they are used seasonally and in workplace environments, they require less frequent replacement. Further, sales of suiting are severely affected by the growing and persistent trend of more casual workplace dressing. Accessories and other take up 12% of the market, up 23.5% from 2008 (Men’s Clothing: United States). This segment includes athletic wear, gloves, hats, neckties, scarves, sports team apparel, swimwear, and uniforms. Rise of popularity of athletic wear and sports team apparel as everyday wear spurred gains. However, many of these products are purchased on a seasonal basis, and for leisure activities. Thus, in times of economic uncertainty, clothing items such as swimwear and purchased less. Intimates and sleepwear are responsible for 6% of the market, up 12.2% from 2008 (Men’s Clothing: United States). Increased demand for higher-priced items in this segment occurred post recession. But, this segment is highly vulnerable to the changing costs of cotton. Plus, supplier competition with manufacturers of athletic wear, which can be comfortable enough to sleep in, is a threat. House of Hugo would certainly want to sell men’s intimates throughout the year. The men’s fragrance segment is booming with sales increases of 2% per month, with November’s US fragrance sales totaling at a staggering $3 billion (Men’s Clothing: United States). Men are finding grooming to be of utmost importance and are wearing fragrance as an accessory, even collecting fragrances to pair with different outfits. With the continuing importance of mass customization to Millennials, providing the opportunity for custom blended fragrances (“fragrance cocktails”) in the retail environment could be a potentially lucrative venture. Retail outlet segmentation has evolved to reflect the buying behavior of the male Millennial. Specialty stores pull the highest rank at 28% of the total retail sales, following an increase in demand by 17.2% from 2008 (Men’s Clothing: United States). Specialty stores focus exclusively on clothing and accessories, some catering to more specific markets, such as “big and tall.” Specialty stores offer goods at higher price points, and are less subject to step markdowns, particular with suiting retailers. The fact that there are less frequent changes in trends in the male market is largely responsible for this. Of course, brand identification is of hugely significant importance for specialty retailers.
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46%
23% 13%
12% 6%
Mass merchants claim an even quarter of the retail segmentation, and department stores claim 23%. Interestingly, online-only retailers hold a whopping 24 % (Men’s Clothing: United States). This re-emphasizes the importance of omnichannel strategy implementation. Men in general do not enjoy searching for articles of clothing, but instead prefer to quickly find and purchase an item they need, a task easily accomplished online. It was found that men are more likely to online shop from their phones and tablets than from their laptops. To overcome some of the brick-and-mortar challenges presented by the growing population of fashion-conscious men, retailers have changed the way they cater to the male shopper. Many stores have begun arranging men’s clothing in such a way that major items can be viewed from nearly all angles. This brings the expedience men desire to the physical retail setting. Some noteworthy examples of adaptive retailing were shown by GAP and J. CREW. GAP started providing reserve-in-store services, allowing consumers to shop for products online and enter the store to receive their curated selection, speeding up the try and buy process. J. CREW opened The Liquor Store in Tribeca, offering their Millennial male a handpicked selection of J. CREW staples and specialty items, such as silk scarves, books, and candles. The Liquor Store is a small space decked out to look like the lovechild of a J. CREW and, you guessed it, an old-fashioned bar. The success of this campaign and concept further justifies Houseof Hugo. Looking to the future, men’s apparel and accessories market is expected to total nearly $80 billion at the retail level in 2018 (Men’s Clothing: United States). Replacement needs and rising apparel prices will drive advances, as men continue to seek versatile attire that meets both work and leisure requirements. Aggregate demand for men’s clothing at all other retailers is projected to total $21.8 billion in 2018 (Men’s Clothing: United States). Growth in the size of the male population adds to the potential customer base for these products. Advances in the population aged 25 to 34 years are especially significant, as millennials typically purchase more clothing compared to older generations.
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C O M P E T I TO R S
Within the luxury menswear market, BOSS Orange has several key competitors. BOSS Orange’s key competitors consist of those brands which offer a product range of apparel and accessories, geared toward a target market ranging from 18 years to 35 years of age. The key competitors for BOSS Orange are Diesel, DKNY, Polo Ralph Lauren, Topman, Zara, J. Crew, Original Penguin, Urban Outfitters, Zara and GUESS. Competitors range from luxury exclusive brands to mainstream. Many key competitors have a product assortment that ranges from men’s casual wear to loungewear, and shoes and accessories, covering all possible wants and needs of men within that target market. BOSS Orange provides its consumers with products that are both “stylish and unique”(Boss Orange Fall/Winter 2014), keeping up with competitors who operate in broader menswear product lines, additionally providing sleepwear, swimwear, etc., and those operating an exclusively menswear line.
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GUESS Inc., established by the Marciano brothers, started as a family business with the desire to bring the American dream back to fashion with European influences. Paul and Maurice Marciano, current owners of the brand, have continued to work hard to establish GUESS as an all authentic denim corporation. Their product category consists of denim ranging in all silhouettes and styles, for men, women and kids. GUESS markets and promotes itself in several ways, mainly focusing on omnichanneling and social media. GUESS incorporates hash tags, lookbook campaigns, and other marketing tactics to push the brand name and increase consumer loyalty. GUESS is a well-established brand that chooses to focus on bringing the idea of living the American dream back to consumers.
Original Penguin’s mission statement is to “create an apparel company that can offer superior design, quality, and value to the consumer.”(Perry Ellis International Annual Report 2014) Original Penguin operates under Perry Ellis International, along with several other key apparel brands such as Callaway, Cubavera, Suvane, and many more. Original Penguin focuses on bringing a youthful culture that mixes an American sportswear lifestyle with contemporary fashion. Their aim is to target style-hungry consumers who have a keen eye for fashion, but do not take it too seriously. Original Penguin’s omnichannel strategy is to ensure reaching an ever-changing consumer, adapting to all of the possibilities that can possibly change the consumer’s behavior and lifestyles. Original Penguin operates on a complete social media platform, having Instagram, Twitter, Facebook, etc. They have 8 total websites, and currently operate a blog as well. They provide sales, discounts, e-Gift cards, and loyalty cards to their consumer. These cards can be used across their entire E-commerce platform.
in 1989, J. Crew launched their first flagship store located in South Street Seaport in New York City. The brand operates with the goal of providing their consumers with an assorted product category of apparel, accessory, and more for men, women, and kids. J. Crew believes that great styles begin with great design (J. Crew - Our Design). The brand is geared towards reaching their consumers through unique styling of patterns and colours, and is not afraid to break rules when needed. J. Crew is geared towards reaching their consumers through social media, though it also employs catalogues as an advertising strategy.
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INDIRECT C O M P E T I TO R S
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TRAINING / FITNESS PRODUCTS TRAINERS AT H L E T I C W E A R SPORTS ACCESSORIES EXERCISE EQUIPMENT GYM MEMBERSHIPS T E C H N O LO G Y / E L E C T R O N I C S APPLE PRODUCTS IPHONE UPGRADES GAMING CONSOLES O U T D O O R AC T I V I T I E S / AT T R AC T I O N S K AYA K I N G TYBEE BEACH S A VA N N A H T O U R S B A R S / R E S TA U R A N T S AMPERSAND JOHNNIE GANEM LO C A L 1 1 T E N MAXWELL’S BELFORD’S RUTH’S CHRIS STEAKHOUSE
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THE HoH MAN
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In light of the recession, a reawakening has struck the fashion world as men are becoming more conscious about their personal appearance. A veritable boom in the men’s fashion market is noted as demand continues to gain by 1.8% each year (Men’s Clothing: United States). The attitude towards masculinity has shifted from uninspired and apathetic to a curated and individualistic ideal. Popular television series such as Mad Men and White Collar, and collaborations between influential celebrities and top fashion brands, have established mainstream attention toward men’s style. Younger males between 25-34 are beginning to join the workplace and are obtaining increased incomes. This segment is projected to grow 6% over the next five years and will be the main drivers for demand and spending in men’s apparel. House of Hugo is determined to capitalize from this revived market. Currently, males aged 25-34 are 20,632,091 strong, making up 6.6% of the total U.S. population (Men’s Clothing: United States). We aim to target a younger, affluent individual with income levels ranging from $35,000-$50,000, who make up approximately 9,433 people the U.S. This male is well educated, with having just received his bachelors’ degrees and is currently working towards masters’ degrees. Within the United States, males with a bachelors’ degree or higher make up 27.7% of the population (Men’s Clothing: United States). This Millennial gentleman are located in urban, metropolitan areas where economic vitality is abundant and trendy shops, restaurants, and workplaces are highly accessible. These areas combine urban convenience with exciting scenes and niche qualities -- sought after by this market. Having just joined the workplace, our customer is likely to be working flexible, freelance jobs and/ or working towards an entrepreneurial career. He goes through life with a “jack of all trades” approach, gaining experience and skills in a multitude of subjects. Popular jobs for this man are graphic design, web programming, app development, content writing, and online marketing. He thrives working in teams with emphasis on collaboration. Plus, he doesn’t mind working late if it means making an impact and leaving his mark through his work, or in society. When he is not working or creating, you will find this customer trying out boutique restaurants and cafes, checking out galleries, meeting with friends at trendy rooftop bars, and listening to local indie bands. The House of Hugo client is attracted to the Brooklynite lifestyle found in the charming, more economical city of Savannah. Because he is still overcoming the debt of student loans, he’d rather rent a house than buy it. Where available, he prefers public transportation or biking over having his own vehicle. While riding his bike, it’s a safe bet our consumer is listening to a Songza playlist on his iPhone. He spends his working hours designing promotional materials for SCAD. He buys his clothes at Banana Republic and J. CREW, but stops in to Prospector for his grooming tools. This man will shell out the extra dollars for a bow tie he thinks speaks to his personality. When our man spots a dapper dude in a printed button down, he is envious and pauses reading BuzzFeed to do a quick search to purchase it from his iPad. He goes for a run around Forsyth before attending his friend’s gallery opening on Liberty. Later on, he supports the local talent at Foxy Loxy and Hang Fire. He meets up with friends for drinks at Ampersand and Social, but loves the sneakish exclusivity and throwback of Mata Hari. He makes sure to record the moment in an aptly hashtagged Instagram photo. On Saturday, this customer buys his groceries at Whole Foods and the local farmers’ market. Men of his age (25-34) make up 7.8% of Savannah’s population, significantly higher than the national average. In Savannah, the total number of citizens belonging in the $35,000-50,000 income bracket is 9.2% (Men’s Clothing: United States). More than half of Savannah’s men have earned a bachelor’s degree or higher, almost double the national average. It’s important to note, when looking at census data for the 31401 area, military and international men are unfortunately left out of the equation, as are our frequent tourist groups. Thanks to the liberal, creative atmosphere SCAD has developed, men desiring this lifestyle flock to Savannah for its easygoing and eclectic urbanesque feel, without the taxing hustle and bustle of a big city. Based on trend and target consumer research and analysis, we find that House of Hugo represents men as this groupwishes to see themselves -- cool, offbeat, stylish, and authentic.
25
S AVA N N A H , G A P O P- U P S H O P
31401 P O P U L AT I O N : 2 2 , 4 6 1
PRIZM
MEDIAN AGE: 29.4 MEDIAN INCOME: $21,700 CONSUMER SPEND: X$396 MM CONSUMER SPEND ($/HH): $42,201
Behavioral segments of the frequenters of 31401 include the “YOUNG ACHIEVERS.” They are described as a group of young, hip, single, twenty-somethings who’ve recently settled in the neighborhood. Most residents are still renting apartments. “There’s a decidedly progressive sensibility in their tastes as reflected in the group’s liberal politics, alternative music, and lively nightlife (Nielsen, 2014.)” Young achievers include the local college population. Frequenters of the area also include “UP-AND-COMERS.” This a stopover for younger, upper-midscale singles before they marry, have families, and establish more deskbound lifestyles. Age ranges between 25 to 44. This group includes “a disproportionate number of recent college graduates who are into athletic activities, the latest technology, and nightlife entertainment (Nielsen, 2014.)”
27
S A L E S P OT E N T I A L
Stability of trading within the area is varying with dramatic changes in population due to tourism and local college calendars. Approximately 8,000 students attend the Savannah College of Art and Design, with many only living in the area for the months of September through May. Savannah also has a large tourism industry with 13 million visitors to the city in 2013. During the holiday seasons, the city of Savannah attracts visitors from around the world because of the city’s historic charm, including on Halloween and St. Patrick’s Day. House of Hugo’s pop up shop will occur on November 1st, 2014 capitalizing on the extra influx of visitors and locals looking to go out that weekend. As Savannah attracts tourists from all over the world, many of them look to stay in hotels located in prime downtown locations. The location of Mata Hari, stationed within short walking distance of highly rated hotels such as the Bohemian, opens up several opportunities to collaborate with these hotels to offer our guests exclusive room discounts.
28
E S T I M AT I N G COMPETITION Hosting our pop-up shop on November 1st gives us the benefit of eliminating several of our direct competitors. With most events being hosted the night of Halloween, there will be little to no competition the day after as majority of the direct retailer competitors will be closed. With it being the night after Halloween, many people will still be looking for places to further their weekend activities. Our Indirect competition will include all the other bars where guests could spend their time and money instead. Located a few blocks from our location is the popular spot of City Market. City Market hosts several restaurants and bars, which many tourists visit to enjoy an authentic Savannah experience.
29
The attention drawn to the city of Savannah comes from its historic elements. Surrounded by beautiful scenery, culture, and great eating, Savannah attracts thousands of tourists year round. Highly populated areas and attractions around Savannah include River Street, City Market, Forsyth Park and Broughton Street. The most popular areas for nightlife are River Street and Congress Street. House of Hugo’s event will be held in high proximity to these areas, thus making it more relevant. The historic appeal of Savannah is carried through to the House of Hugo’s popup event and shop with the speakeasy theme.
AREA AT T R AC T I O N S HUMAN RESOURCES
30
Staffing will be provided by Mata Hari, and training of their staff will take place prior to the day of the event. There will be two training sessions held for two hours each. The night of the event will require three waitresses who will also operate as sales associates for the night. Also involved will be two bartenders, one bouncer, one singer, one pianist, and one burlesque dancer. Mata Hari’s employees are already equipped with knowledge of the beverages and foods that will be served during the event. Training will consist of informing the waitresses of product categories to be sold at the event, as well as point of sale operations, brand knowledge and additional products offered in the collection. To further their training, they will be given binders filled with this information as well as pricing and other necessary information that should be retained for the event. Hugo Boss’ employees will be responsible for supervising as well as handling training of the waitresses. They will be employees of the Midway, Georgia Hugo Boss location.
Located between Savannah’s most popular streets of Bay and River, the streets are always filled with a mass amount of pedestrian traffic. As you get closer to downtown, Savannah becomes more encompassed in its historical roots. This charming, picturesque aspect causes tourists, as well as locals, to walk around or using public transportation to get around while enjoying the sites. Parking is limited, which gives House of Hugo the opportunity to capitalize on offering exclusive carriage rides to the event. With parking being limited and there being so many sites to see, guests will greatly enjoy the carriage ride included with their r.s.v.p. The event is advantaged by being located on beautiful River Street with its stunning view. With there being low density of vehicular transportation due to the narrow brick and cobblestone roads, there are many people walking around the area, which builds a safe, public, open environment, friendly for anyone to walk around at anytime of the day or night.
AREA F AC TO R S LEGAL F AC TO R S
House of Hugo will be hosted in the local speakeasy, Mata Hari. Marta Hari is an already established bar with a fully operational business license and alcohol beverage permit. Marta Hari holds the rights to sell alcohol under the laws and regulations of the State of Georgia. House of Hugo will be operating under Mata Hari’s already established building and alcohol beverage permit. This benefits us in not having to request a building or alcohol beverage permit as there will be drinks distributed, and mini bottles of absinthe given as gifts. The legal age entry for bars and clubs will be taken into consideration, and no guest under the age of 21 will be permitted entry.
31
INTERIOR DESIGN
32
From an exterior view, Mata Hari is disguised, except for a door commanding that the entrant “flip the switch.” This eliminates the need for window displays, as they would contradict the venue’s exclusive intentions. The venue of Mata Hari offers enough space to accommodate 116 people at full capacity. Loitering areas are placed evenly throughout to break up the long, rectangular shape. Upon entering the space, one will encounter a pool table merchandised with House of Hugo suspenders, ties, and boxers. Moving further, entertainment by the stage is directly across from House of Hugo leather jackets. These will be hung on vintage bellman carts. Upon reaching the bar, House of Hugo watches and cologne will be displayed in intervals along the top. Watches will be showcased in vintage watch boxes. This will allow guests to seamlessly order drinks, socialize, and be entertained while browsing merchandise. Integration of the entertainment and merchandise areas is key in communicating the brand’s identity and lifestyle attributes, as well as to the success of sales. Alcohol, as we know, can be quite the motivator. All ambiance, including artwork and lighting will stay the same as in normal operations of Mata Hari to keep the intimate, alluring atmosphere in place. It features warm lighting, eclectic furniture, and unique accents. All of this creates an elusive, antique-store-afterdark vibe. For added ease of mobility, some furnishings will be removed for the evening to better accommodate the number of guests. For the protection of our guests and the integrity of Mata Hari as a speakeasy, a bouncer will be located at the front entrance.
33
VIEW FROM BACK OF VENUE
VIEW OF BAR
D I S P L AY O F J A C K E T S
34
D I S P L AY O F SUSPENDERS, TIES & BOXERS
S E AT I N G
V I E W O F S TAG E
35
R E TA I L : $ 695.00
R E TA I L :
R E TA I L :
$ 36.00
$ 195.00
XI XII I XI
VII XI X
II IIII
V VI VII small
4 units
medium
8 units
large
4 units
small
3 units
medium
3 units
large
3 units
one size
35 units
one size
9 units
one size
6 units
MERCHANDISE ASSORTMENT APPENDIX FIG. 2.1
36
R E TA I L :
R E TA I L :
R E TA I L :
$ 85.00
$ 95.00
$ 67.00
48”
20 units
7.5 cm
10 units
7.5 cm
25 units
100 ml
55 units
The House of Hugo offers a range of casualwear and accessories for men and women that embody the zeitgeist of the youthful sophisticate. The full assortment of merchandise consists of shirts, pants, shorts, jackets, coats, sweaters and sweatshirts, T-shirts, shoes, accessories, and cologne. These items are all available to our House of Hugo event guests through tablets on display. However, onsite merchandise will be available for immediate purchase as well. These items will consist of men’s cologne, suspenders, boxers, ties, watches, and leather jackets. These items fit both the aesthetic of House of Hugo as well as the event theme. The selected products can function as “additions” to the outfits of our attendees. The rationale for this is inspired by the assumption that our attendees will be venturing out to explore other nightlife opportunities after the event ends. Items not applicable to add on are small enough to carry out without being cumbersome. All product categories will be stocked in accordance to anticipated demand. Cologne is a consistent best seller in the men’s market and enough inventory will be allocated for every invited guest (not including respective “plus ones”) to be able to purchase one. Items such as jackets and watches require a more involved decision process, so a smaller inventory is necessary. Boxers, ties, and suspenders are mid-range items with a similar demand pattern, and thus will be stocked at a moderate inventory.
37
P R O M OT I O N A L PLAN 1
PRE-LAUNCH
LAUNCH
POST LAUNCH
O C TO B E R (weekly)
NOVEMBER (weekly)
DECEMBER (weekly)
2
3
4
1
2
3
4
1
2
3
4
V E N U E / S TA F F S E L E C T I O N GUEST SELECTION C A R R I A G E R E S E R VA T I O N S E N D I N V I TAT I O N S M A N A G E M E N T ’ S A R R I VA L TRAINING SEND KEYS EVENT PREVIEWS
S N A P C H AT I N S TAG R A M
G U E S T A R R I VA L S POP UP SHOP EVENT FULL ASSORTMENT LAUNCH F O L LO W U P SOCIAL MEDIA ADVERTISING
TWITTER FACEBOOK I N S TAG R A M
P R O M OT I O N A L LO O K B O O K GIFT CARD REDEMPTIONS
OMNI-CHANNEL MARKETING House of Hugo will take place the night after Halloween for a duration of three hours. This exclusive pop-up shop will host a selection of products of the House of Hugo rebranding. The selected product assortment from the collection will be readily available during the event for purchase on-site or online. Guests will have the option to pre-order items from the entire collection through the Hugo Boss website, available exclusively to those who attend the launch party. House of Hugo will be promoted through select social media platforms to keep information regarding the event under wraps. There will be brief fashion videos of merchandise, as well as background snapshots of promotional photoshoots posted on Instagram
38
PRE-LAUNCH House of Hugo will be held at Mata Hari, a local speakeasy. With this exclusive location, mass promotional activities will be kept at a medium during the pre-launch phase. With the exclusivity of the event, House of Hugo will have limited promotional activities, involving sneak peaks and behind-the-scenes snapshots of the events leading up to the launch. These will be shown on a communal Snapchat “story”, and through our Instagram account. Week 1:
Selection of building/property to host the event, along with the hiring of staff. Selection of guests invited to the launch. Reservations of carriages and hotel suites established.
Week 2 :
Invitations will be sent out. Management from Hugo Boss’ Midway, Georgia location will fly down to Savannah to supervise the overall event and assist with training staff on brand information and product knowledge.
Week 3 :
Training of the sales associates will begin. Managers from Hugo Boss will prepare presentations and host training workshops for staff working the event.
Week 4 :
Training of staff continued. At the end of the week, guests will begin to arrive from their home locations and check into the Bohemian Hotel. LAUNCH Week 1:
Launch of House of Hugo’s Pop-up Shop. The day after the entire stock of merchandise for the new line will become available via Hugo Boss’ E-commerce. Follow-up thank you cards to the attendees will be mailed.
The House of Hugo launch party will take place for three hours on the night of November 1st. During the event, party-goers will be encouraged to talk part in our communication and promotional process by using Snapchat throughout the night to document their experiences in photos and videos that will automatically appear on House of Hugo’s “story.” The hashtag #HOUSEOFHUGO will be used during the event so that guests can tag their content across social media. This will help introduce House of Hugo to the masses by creating buzz.
POST LAUNCH The post launch will begin with follow-up thank you notes to the attendees. At the end of the event, guests will have received gift bags with exclusive discount cards offering them 20% off House of Hugo merchandise through January 1st. Following the night of the event, the entire collection will be revealed online. Consumers will be informed of this debut through promotions on all utilized social media platforms, such as Twitter, Facebook, Snapchat, and Instagram, as well as in store and via a lookbook.
39
FINANCIAL PLAN APPENDIX FIG. 3.1
The net investment required by House of Hugo to implement this plan will cost approximately $8,800 dollars. This is a minor investment when considering this endeavor’s reach. House of Hugo will have tested the market potential of its key demographic, as well as dramatically increased brand awareness through bloggers and promotional initiatives. Showing the brand in use by relevant tastemakers will validate the rebranding in the consumers’ minds. Popular men’s fashion blogger Bryanboy receives about 1.4 million page views a month (Strugatz). Each of our invited guest bloggers will post about House of Hugo and hopefully receive a comparable amount of views. Financials were strategically planned in the most appropriate manner. The chosen venue, for example, includes an open bar in its cost, and requires minimal purchasing of fixtures. Air travel provided to bloggers is reasonably priced, as Jet Blue recently started offering direct flights from New York City to Savannah. Gift bags are a necessary expenditure because they will be long-lasting reminders of the exceptional experience provided by House of Hugo. The branded items such as hookah pens are used publicly, again increasing brand awareness.
40
EXPENSES
Pre-Event Collateral
T O TA L C O S T
$426.92
Event Collateral
$6,192.97
Catering
$2,644.25
Event Transportation
$830.00
Venue + Alcohol
$3,800.00
COGS
$3,158.50
Interior Fixtures
$317.92
Wages
$669.00
Hotel & Flight
$17,865.00
T O TA L E X P E N S E S
$35,904.56
REVENUES
T O TA L I N C O M E
Cologne
$3,613.50
Watches
$2,775.00
Ties
$3,192.00
Jackets
$14,625.00
Silk Boxers
$1,232.00
Suspenders
$1,660.00
T O TA L R E V E N U E S
$27,097.50
NET INVESTMENT
($8,807.06)
41
HOUSE
42
H H OF
HUGO
CONCLUSION The rebranding of Boss Orange to House of Hugo, launched by a pop up shop, will develop potential in extending the line. Key performance indicators will be the number of attendants, transactions that occur during the event, social media mentions of #HouseofHugo, and redemptions of discount cards. The long term goals of the event are to stimulate and increase brand awareness and loyalty, and of course revenues. By appealing to more a relevant aesthetic and attitude, House of Hugo taps into preexistent cultural ideals of its target consumer, rather than pushing new ones. House of Hugo reminds millennials where they get their spunk from, the original rebels of the Roaring Twenties. It is the hope of the rebranding that House of Hugo will capture the attention and affection of millennials where Boss Orange did not.
43
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“JetBlue.” JetBlue. Web. 15 Nov. 2014. <http://www.jetblue.com>. “Musician or Singer Salary (United States).”Musician or Singer Salary (United States). Web. 15 Nov. 2014. <http://www.payscale. com/research/US/Job=Musician_or_Singer/Hourly_Rate>. “Pernod 750ml.” - SKU 660057. Web. 15 Nov. 2014. <http://www.klwines.com/detail.asp?sku=660057&cid=TPV-Googlebas e&gclid=Cj0KEQiAp4yjBRCE_enjmpug944BEiQATCpLvWLvYmKhFmXBz6iYHCC0B9JqVKZDUq16Pl46QStbE1IaAgfM8P8HAQ>. “Pianist Salary (United States).” Pianist Salary (United States). Web. 15 Nov. 2014. <http://www.payscale.com/research/US/ Job=Pianist/Hourly_Rate>. “Poster - GotPrint.” Poster - GotPrint. Web. 15 Nov. 2014. <http://gotprint.net/g/uploadPoster.do>. “Print Flyers, Full Color Flyer Printing, Design, Templates, & Brochures - GotPrint.”Print Flyers, Full Color Flyer Printing, Design, Templates, & Brochures - GotPrint. Web. 15 Nov. 2014. <http://gotprint.net/g/uploadFlyer.do>. “Retail Manager Salary (United States).”Retail Manager Salary (United States). Web. 15 Nov. 2014. <http://www.payscale.com/ research/US/Job=Retail_Manager/Hourly_Rate>. “Retail Sales Associate Salary (United States).” Retail Sales Associate Salary (United States). Web. 15 Nov. 2014. <http://www. payscale.com/research/US/Job=Retail_Sales_Associate/Hourly_Rate>. “Silk Mens Ties - Buy 100% Silk Mens Ties,High Quality Silk Ties,Mens Brand Names Silk Ties Product on Alibaba.com.”Www. alibaba.com. Web. 15 Nov. 2014. <http://www.alibaba.com/product-detail/100-Silk-Mens-Ties_60061222733.html>. “Smartpress.com.” Order Booklet Printing. Web. 15 Nov. 2014. <http://smartpress.com/offering/bookletprinting?utm_source=google&utm_medium=cpc&utm_content=Booklets_Long_Tail_244&utm_campaign=BookletsS a d d l e _ S t i t c h e d & g c l i d = C j 0 K E Q i A p 4 y j B R C E _ e n j m p u g 9 4 4 B E i Q ATC p L va 3 N 8 P V F p C W h xV Z i o X B 3 g 2 v Z j e i z _ X7FOKFh_6lcaswaApC88P8HAQ>. “Standard Private Tour.” Historic Savannah Carriage Tours. Web. 15 Nov. 2014. <http://savannahcarriage.com/?page_id=1089>. “Stripper/Exotic Dancer Salary (United States).” Stripper/Exotic Dancer Salary (United States). Web. 15 Nov. 2014. <http://www. payscale.com/research/US/Job=Stripper/Exotic_Dancer/Hourly_Rate>. “Titanium Hotel Luggage Cart Or Luggage Barrow - Buy Luggage Cart,Hotel Cart,”luggage Cart” Product on Alibaba. com.” Www.alibaba.com. Web. 15 Nov. 2014. <http://www.alibaba.com/product-detail/Titanium-Hotel-luggage-cart-orluggage_681518805.html?s=p>. “T Shape Acrylic Sign Holder - Buy T Shape Acrylic Sign Holder,T Shape Acrylic Sign Holder,T Shape Acrylic Sign Holder Product on Alibaba.com.” Www.alibaba.com. Web. 15 Nov. 2014. <http://www.alibaba.com/product-detail/T-shape-acrylic-signholder_638852342.html?s=p>. “USPS.com - Store.” Forever 49-cents. Web. 15 Nov. 2014. <https://store.usps.com/store/browse/subcategory. jsp?categoryId=forever-stamps&categoryNavIds=buy-stamps:stamps-by-type:forever-stamps>. “USPS.com - Store.” ReadyPost 6 X 10-inch Bubble Mailer. Web. 15 Nov. 2014. <https://store.usps.com/store/browse/ uspsProductDetailMultiSkuDropDown.jsp?productId=P_841780&categoryId=readypost-shipping>. “Wholesale High Quality Mens Leather Suspenders - Alibaba.com.”Www.alibaba.com. Web. 15 Nov. 2014. <http://www. alibaba.com/product-detail/High-quality-striped-elastic-adjustable-suspender_1793082251.html> “Wholesale Mens Brand Silk Boxers - Buy Silk Boxers,Brand Silk Boxers,Wholesale Silk Boxers Product on Alibaba.com.”Www. alibaba.com. Web. 15 Nov. 2014. <http://www.alibaba.com/product-detail/Wholesale-Mens-Brand-Silk-Boxers_60090015341. html>. “Wholesale Small Clear 4 Oz Glass Bottles - Buy Clear 4 Oz Glass Bottles,Clear 4 Oz Glass Bottles Wholesale,Wholesale Small Clear 4 Oz Glass Bottles Product on Alibaba.com.” Www.alibaba.com. Web. 15 Nov. 2014. <http://www.alibaba.com/productdetail/Wholesale-small-clear-4-oz-glass_60088151445.html>.
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IN TEXT CITATIONS “BOSS Orange Fall/Winter 2014.” Men’s Clothing, Shoes & Accessories. Web. 11 Oct. 2014. <http://www.hugoboss.com/us/ boss-orange-mens-clothing-shoes-accessories/>. “First Half Year Report.” Investor Relations. Web. 15 Nov. 2014. <http://group.hugoboss.com/files/user_upload/Investor_ Relations/Finanzberichte/2014/First_Half_Year_Report_2014.pdf>. “HUGO BOSS Corporate Website.” Strategy - HUGO BOSS Corporate Website. Web. 15 Nov. 2014. <http://group.hugoboss. com/en/investor-relations/investment-case/strategy/>. “J.Crew - Our Design.” J.Crew - Our Design. Web. 16 Nov. 2014. <https://www.jcrew.com/aboutus/ourdesign.jsp> Knight Randolph, Kathryn. “Millennials Trade Full-Time, 9 – 5 Jobs for Freelance Work.”Fastweb. 10 Oct. 2012. Web. 13 Oct. 2014. <http://www.fastweb.com/career-planning/articles/3687-millennials-trade-full-time-9-5-jobs-for-freelance-work>. Men’s Clothing: United States. (2014). (Freedonia Focus report). Freedonia. Retrieved from OneSource Global Business Browser. “Menswear in the United States.” Marketline Industry Profiile (2014): n. pag. MarketLine. Web. “Perry Ellis International Annual Report 2014.” 1 Jan. 2014. Web. 16 Oct. 2014. <http://files.shareholder.com/downloads/PERY/ 3640056701x0x750976/9047B83D-9820-450E-B5F3-BE30738AE12A/PEI_ANNUAL_REPORT_2014_FIN>. “Reading the Signs.” Consumer 202 (2011): n. pag. Deloitte. Web. Strugatz, Rachel. “Hot Fashion Bloggers.” WWD. Fairchild Fashion Media, n.d. Web. 15 Nov. 2014. Table DP-1: Profile of General Population and Housing Characteristics. United States Census Bureau, 2010. Available at: http:// factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF; Accessed: 10/13/14. “The Human Development Index - Going beyond Income.” Nations Online Countries of the World. Nations Online, n.d. Web. 13 Nov. 2014. Wang, Lisa. “No Signs of Slowing in the Global Menswear Market - BoF - The Business of Fashion.” BoF The Business of Fashion. 17 June 2014. Web. 13 Oct. 2014. <http://www.businessoffashion.com/2014/06/signs-slowing-global-menswear-market.html>. “U.S. Labeling Requirements for Textile and Apparel Products.” International Trade Administration. U.S. Department of Commerce, n.d. Web. 14 Nov. 2014. “United States In-Depth PESTLE.” Country Profile Series (2014): n. pag. Market Line. Web. Wallechinsky, David. “Consumer Product Safety Commission.” AllGov- Everything Our Government Really Does. AllGov, n.d. Web. 14 Nov. 2014. “Zip Code Look-up.” My Best Segments. Neilsen, 2014. Web. 12 Nov. 2014.
46
APPENDIX F I G U R E 1 . 1 : AC C E S S I B I L I T Y F I G U R E S C O M PA N Y
POS ( T O TA L )
POS (STORES)
E-COMMERCE
T O T A L AV E R A G E
BOSS ORANGE
1023
1010
13
$1,175.00
J. CREW
433
333
100
$1,733.25
ORIGINAL PENGUIN
34
22
12
$607.49
BANANA REPUBLIC
620
536
84
$458.00
ZARA
2197
2109
88
$344.60
DIESEL
62
53
9
$1,944.50
URBAN OUTFITTERS
413
176
237
$646.50
POLO RALPH LAUREN
149
116
33
$1,825,50
TOPMAN
162
59
103
$646.50
DKNY
276
220
56
$579.00
GUESS
218
279
2
$997.50
47
FIGURE 1.2 : PRICE POSITIONING FIGURES COMPANIES
WATCHES, LOWEST
WATCHES, HIGHEST
WATCHES, AVERAGE
BELTS, LOWEST
BELTS, HIGHEST
BELTS, AVERAGE
PANTS, LOWEST
PANTS, HIGHEST
BOSS Orange
$ 125.00
$ 215.00
$ 170.00
$ 95.00
$ 195.00
$ 145.00
$ 135.00
$ 165.00
J. Crew
$ 98.00
$ 625.00
$ 361.50
$ 98.00
$ 98.00
$ 98.00
$ 75.00
$ 495.00
Original Penguin
$ 95.00
$ 295.00
$ 195.00
$ 39.00
$ 49.00
$ 44.00
$ 49.99
$ 125.00
Banana Republic
x
x
x
$ 49.50
$ 65.00
$ 57.25
$ 69.50
$ 198.00
Zara
x
x
x
$ 39.90
$ 59.90
$ 49.90
$ 39.90
$ 99.90
Diesel
$ 100.00
$ 395.00
$ 247.50
$ 68.00
$ 398.00
$ 233.00
$ 168.00
$ 648.00
Urban Outfitters
$ 24.00
$ 450.00
$ 237.00
$ 14.00
$ 40.00
$ 27.00
$ 48.00
$ 365.00
Polo Ralph Lauren
x
x
x
$ 50.00
$ 165.00
$ 107.50
$ 85.00
$ 995.00
Topman
$ 44.00
$ 44.00
$ 44.00
$ 20.00
$ 55.00
$ 37.50
$ 40.00
$ 250.00
DKNY
x
x
x
$ 45.00
$ 49.50
$ 47.25
$ 69.50
$ 165.00
Guess
$ 95.00
$ 950.00
$ 522.50
$ 30.00
$ 58.00
$ 44.00
$ 89.50
$ 128.00
FIGURE 2.1 MERCHANDISE ASSORTMENT FIGURES ITEMS
SIZE
Cologne
100 ml
Suspenders
48 in
Ties
Jackets
Silk Boxers Total
COLORWAY
UNIT
QUANTITY
UNIT COST
1
55
$1.30
Burgundy
1
20
$2.00
7.5 cm
Morrocan
1
10
$3.80
7.5 cm
Pen & Ink
1
25
$3.80
Size small
Black
1
4
$110.00
Size small
Burgundy
1
3
$110.00
Size medium
Black
1
8
$110.00
Size medium
Burgundy
1
3
$110.00
Size large
Black
1
4
$110.00
Size large
Burgundy
1
3
$110.00
One size
Gunmetal
1
35
$0.80
13
185
$691.70
PANTS, AVERAGE
SHIRTS, LOWEST
SHIRTS, HIGHEST
SHIRTS, AVERAGE
JACKETS, LOWEST
JACKETS, HIGHEST
$ 150.00
$ 105.00
$ 175.00
$ 140.00
$ 295.00
$ 845.00
$ 570.00
$ 1,175.00
$ 285.00
$ 59.50
$ 370.00
$ 214.75
$ 98.00
$ 1,450.00
$ 774.00
$ 1,733.25
$ 87.50
$ 49.99
$ 98.00
$ 74.00
$ 89.00
$ 325.00
$ 207.00
$ 607.49
$ 133.75
$ 79.50
$ 125.00
$ 102.25
$ 79.50
$ 250.00
$ 164.75
$ 458.00
$ 69.90
$ 39.90
$ 69.90
$ 54.90
$ 39.90
$ 299.90
$ 169.90
$ 344.60
$ 408.00
$ 118.00
$ 398.00
$ 258.00
$ 198.00
$ 1,398.00
$ 798.00
$ 1,944.50
$ 206.50
$ 44.00
$ 44.00
$ 44.00
$ 49.00
$ 960.00
$ 504.50
$ 1,019.00
$ 540.00
$ 98.00
$ 98.00
$ 98.00
$ 165.00
$ 1,995.00
$ 1,080.00
$ 1,825.50
$ 145.00
$ 40.00
$ 250.00
$ 145.00
$ 50.00
$ 500.00
$ 275.00
$ 646.50
$ 117.25
$ 65.00
$ 69.50
$ 67.25
$ 99.50
$ 595.00
$ 347.25
$ 579.00
$ 108.75
$ 59.00
$ 98.00
$ 78.50
$ 89.50
$ 398.00
$ 243.75
$ 997.50
TOTAL COST
UNIT PRICE
TOTAL PRICE
MARKUP
JACKETS, AVERAGE
UNIT PROFIT
TOTAL AVERAGE
GROSS PROFIT
$71.50
$67.00
$3,685.00
98.06%
$65.70
$3,613.50
$40.00
$85.00
$1,700.00
97.65%
$83.00
$1,660.00
$38.00
$95.00
$950.00
96.00%
$91.20
$912.00
$95.00
$95.00
$2,375.00
96.00%
$91.20
$2,280.00
$440.00
$695.00
$2,780.00
84.17%
$585.00
$2,340.00
$330.00
$695.00
$2,085.00
84.17%
$585.00
$1,755.00
$880.00
$695.00
$5,560.00
84.17%
$585.00
$4,680.00
$330.00
$695.00
$2,085.00
84.17%
$585.00
$1,755.00
$440.00
$695.00
$2,780.00
84.17%
$585.00
$2,340.00
$330.00
$695.00
$2,085.00
84.17%
$585.00
$1,755.00
$28.00
$36.00
$1,260.00
97.78%
$35.20
$1,232.00
$3,172.50
$4,938.00
$30,270.00
1180.26%
$4,246.30
$27,097.50
FIGURE 3.1: EXPENSE REPORT EXPENSES
ITEM
SUBITEM
SHIPPING, POSTAGE PRE-EVENT COLLATERAL
INVITATIONS
SIZE
C O L O R WAY
48â&#x20AC;?
Burgundy
7.5 cm
Morrocan
7.5 cm
Pen & Ink
small
Black
small
Burgundy
medium
Black
medium
Burgundy
large
Black
large
Burgundy
One size
Gunmetal
One size
Black
One size
Tan
USPS - Stamps USPS - Bubble mailer Invite: Envelope, card, seal RSVP: Envelope, card, seal
KEYS Standard Discount cards PRINT PIECES Lookbook production Lookbook printing Hookah pens (bulk)
EVENT COLLATERAL
Pernod Absinthe (750 ml) GIVE AWAY BAGS 4 oz bottles Party bag Tissue paper FOOD Hors d'oeuvres
CATERING
TABLEWARE 8" glass plates
EVENT TRANSPORTATION VENUE + ALCOHOL
CARRIAGE RIDES 4 per carriage EVENT SPACE Mata Hari (with open bar) Cologne Suspenders Ties
COGS
MERCHANDISE
Jackets
Silk Boxers Watches FIXTURES Luggage Cart INTERIOR FIXTURES
Branded signage SINAGE Display signs Display sign holder Bartenders Waitstaff/salespeople Singer
WAGES
HUMAN RESOURCES Burlesque dancer Pianist Bouncer Midway consultant
HOTEL & FLIGHT TOTAL
AIR TRAVEL JetBlue ACCOMMODATION Bohemian
UNITS
QUANTITY
UNIT COST
T O TA L C O S T
1
100
$0.49
$49.00
1
100
$0.99
$99.17
1
100
$1.18
$117.78
1
100
$1.18
$117.78
1
100
$0.43
$43.20
1
100
$0.05
$5.00
1
1
$5,900.00
$5,900.00
1
100
$1.68
$168.00
1
5
$1.20
$6.00
1
3
$24.99
$74.97
1
100
$0.26
$26.00
1
100
$0.09
$9.00
1
100
$0.04
$4.00
4
100
$25.40
$2,540.00
1
100
$1.04
$104.25
1
50
$16.60
$830.00
1
1
$3,800.00
$3,800.00
1
55
$1.30
$71.50
1
20
$2.00
$26.00
1
10
$3.80
$38.00
1
25
$3.80
$95.00
1
4
$110.00
$440.00
1
3
$110.00
$330.00
1
8
$110.00
$880.00
1
3
$110.00
$330.00
1
4
$110.00
$440.00
1
3
$110.00
$330.00
1
35
$0.80
$28.00
1
9
$10.00
$90.00
1
6
$10.00
$60.00
1
2
$153.00
$306.00
1
1
$7.66
$7.66
6
1
$0.21
$1.26
1
6
$0.50
$3.00
2
3
$9.00
$54.00
3
3
$10.00
$90.00
1
3
$50.00
$150.00
1
3
$50.00
$150.00
1
3
$50.00
$150.00
1
3
$10.00
$30.00
1
3
$15.00
$45.00
1
100
$74.00
$7,400.00
1
50
$209.30
$10,465.00 $35,904.56
MORGAN MCCARTY HANA HYMAN A LY S S A B U E T T N E R TENIELLE ADDERLEY FASM 410 - 01 R E TA I L M A N AG E M E N T P R O F E S S O R A L E S S A N D R O C A N N ATA