A report submitted in fulfillment of the requirement for
Fashion Marketing and Contemporary Design Influences FA4001 – Pop Up Shop Project NALINDA PERERA | AMENDA CAREEM| ERANDHYA JAYASINGHE| HARINIE NAWARATHNE
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CONTENT
1.
Executive Summary
2.
Introduction
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What Is A Pop- Up and How It Is Beneficial?
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Proposed Timeline
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Why Christmas Trading Period and How Its Beneficial?
3.
Collaboration Details
-
CafĂŠ Kumbuk
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Blue Water Hotel
4.
SWOT Analysis
5.
Niche Marketing Strategy
6.
Product Plan
7.
Financial Plan
8.
Location
9.
Store Design
10.
Promotion
11.
Social Media Marketing
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12. Weekly 4ps 13. Justification for All Four Weeks 14. Challenges in Economy & The Solutions to The Pop Up
15. What Are the Opportunities and Challenges of Our Consumers? 16. Bibliography
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EXECUTIVE SUMMARY
Around this 31 year of retail trading experience, Dilly & Carlo has achieved its very own brand identity and consumers. Although the brands limited brand awareness, limited consumers and the lack of engagement with customers is constraining the growth of the brand throughout these past years. By opening a Christmas Pop-Up at Colombo City Center on Sunday 17th November to Tuesday 31st December will be a great prospect to create brand awareness, engage more with the customers and an opportunity to step into a new prospective market.
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INTRODUCTION
In this report You will learn the fundamental elements of a pop shop and how its beneficial for our brand in addition how it creates awareness and how it engages with customers. In the first section you will learn how this Christmas trading period will be advantageous for the pop up, and why we choose the location and how it is combining with our market purposes. Furthermore, in the next sections, what are the products and which pricing strategies we’re planning to use. Along With that what are the collaborations and giveaway details scheduling to make use of this pop up as a unique marketing tool, and specially the marketing analysis and strategies as well as the problems and solutions to make this popup shop a success and to create a new experience to our loyal customers as well as the new potential market we’re expecting in CCC.
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Pop-up retail are temporary trade spaces that sell range of goods, that goes three days to three months’ time period. Pop up shops are brilliant tool for promoting a brand, it engages customers in various ways. like brand can connect with the customer and this will make path to build up a stronger relationship with the customer. This pop up can use as a brand awareness as well as to launch the new collections too. Launching a Pop-Up store is 80% cheaper than opening a traditional retail space.
WHAT IS A
POPUP?
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Nowadays consumers have started to spend less on products, and they tend to spend money on experiences. So, for this proposed pop up store, will be targeting the Christmas trading period, which is starting from November 25th – December 29th, therefore we’re planning to open the store on November third week. And it will be going through out the last two weeks of month November and end it on 31st of December.
WHY CHRISTMAS TRADING PERIOD?
PROPOSED
TIMELINE
In Sri Lanka Christmas is annually celebrating in grand scale across the island. Not only Christians, even by non-Christians are celebrating Christmas in true Sri Lankan style. The festivity spreads through all shopping areas specially in commercial cities like Colombo. As we all experienced in this Christmas trading period people tend to buy new clothes and new adding to their day to day to day life, they shop till midnight and running to all the sales and discount.
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PRODUCT PLAN
The products featuring on the Pop up will be clothing collections already in current collection such as evening wear, work wear and some pieces from special collections. As well as the exclusive batik line will feature throughout the weeks and in the starting of December, will be launching the new Christmas collection. All clothing will reflect a Christmas feel and colours as well as the colours & the styles that Sri Lankan shopper choose.
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B A T I K C O L L E C T I O N LKR 6 000 - 20 000 upwards
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C A S U A L W E A R C O L L E C T I O N LKR 3 500 – 15 000
C H R I S T M A S C O L L E C T I O N LKR 3 500 – 15 000
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C A R L O B O Y C O L L E C T I O N LKR 1 500 – 4 000
R E C E N T C O L L E C T I O N LKR 3 500 & upwards
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FINANCIAL PLAN To keep the brands premium market position, for pricing will be using “Prestige Pricing”, which is the price of current product prices. But there will be card promotions for entire bill purchases throughout the weeks & special discount prices for exclusive collections like Batik and Christmas collection. This pop-up shop will be open for six weeks, first weeks earning will be low due to start up costs as well as the external issues like Sri Lanka’s presidential elections. But in the third- and fourth-week incomes will increase because of the Vlog giveaway and special discounts happening for Christmas collection.
Expenses
Week 1
Week 2
Week 3
Week 4
PROMOTIONAL ACTIVITIES
LKR 85 000
LKR 26 000
LKR 46 000
LKR 26 000
LKR 183 000
INTERIOR FEATURES
LKR 25 000
LKR 0
LKR 0
LKR 0
LKR 25 000
EXTERIOR FEATURES
LKR 5 000
LKR 0
LKR 0
LKR 0
LKR
5 000
STORING
LKR 0
LKR 0
LKR 0
LKR 0
LKR
0
WAGES
LKR 18 750
LKR 18 750
LKR 18 750
LKR 18 750
LKR 75 000
UTILITIES
LKR 36 250
LKR 36 250
LKR 36 250
LKR 36 250
LKR 145 000
TOTAL
LKR 170 000
LKR 81 000
LKR 101 000
LKR 81 000
LKR 433 000
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LOCATION Colombo City Center, Colombo’s new international shopping mall is situated in the eye of the Colombo city facing the Berra Lake & the beautiful Gangarama temple. Surrounded by many commercial buildings like hospitals, banks, Hotels, Movie theatres, luxurious Apartments…etc. Colombo district’s population for year 2012 was 2, 324, 349. And the population by religion, Population By Religion in Colombo District, Sri Lanka
12%
Buddhist Islam
10% 70%
8% 0%
Catholic Hindu Other
according to the chart, the majority is Buddhists, afterward Islam, Hindu and only the 10% Catholics live in the Colombo District. But as mentioned as earlier not only Catholics other non-Catholics as well shop in this time period in Sri Lanka, its a holiday season and end of the year so everyone tends to shop and buy new stuff, specially most people like to visit and shop in this season. And also not only the actual shoppers the “Window shopping” also a trend specially in the younger consumers, so for all that reasons Colombo City Center is the perfect place because all of these discounted items, international brands, a good assortment of food and also the movie theaters do attracts the crowd.
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(Iconcast.lk, 2019)
(YAMU, 2019
CCC GROUND FLOOR
PROPOSED INITIAL IDEA OF THE FLOOR PLAN
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STORE DESIGN
Front view of the Store
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Interior of the Store
18 | P a g e Dilly & Carlo Pop Up shop will be located at ground floor at the Colombo city center, freestanding structure with white racks, two fit on rooms and white stools displaying the clothes and catalogues. Both left and right shelves will merchandise different mix of collections as well as the special collection, middle shelf between the fit on room will display the exclusive batik collection. And in the stools, there will catalogues and look books, so the consumer can go through the catalogues and choose what they prefer. In the front of the store there will be portable LED screen displaying the video clips and the newest looks of the clothing collection as well as the details about ongoing discounts and promotions. From this interior and exterior features consumer can assure fittings and choose their favorite looks from the collection from look books, this will increase more loyal customers to the brand
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PROMOTION Dilly & Carlo pop up shop will be promoted through several different medias, including event marketing, social media marketing, print marketing and promotional marketing. The pop-up shop Launch event will be on the morning of the opening day of the pop up which is 17th of November around 10 – 12 am, in this event their will be a food stall which is conducting by Café Kumbuk to launch their new food items. In addition, there will be some musical item throughout the event (Singer and cello player) to create a lively and classic vibe. During the launch event customers will get 25% off from their entire purchase and the first 50 customers will receive a promotional gift. As well as all the customers who’s purchasing from our popup will receive a cactus plant. We will be inviting social media influencers, and the blogs like Pulse to cover up the event. There will be featured articles about the pop up before the launch day in news papers like Daily Mirror, Sunday observer, Sunday Times and Lankadeepa as well as in the magazines like HI, Pulse …etc. Therefore, our customer base will get to know about the pop up and exciting discounts and gifts. During the midway of the popup, which is December first week, there will be launch event of the Christmas collection alongside with good music and food stall from café Kumbuk, all the consumers will receive a promotional gift in addition to cactus plant on the Christmas collection launch day. Likewise, at the same day of the Christmas collection launch day, Vlog will share through social media and from that will starting a give away to gather many customers for last few weeks. And promotional marketing will include the catalogues and look books of various collections, so the people can go through it find their styles.
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Launch Nov 24 Event marketing Launch Event Christmas Collection Launch Social Media Marketing Facebook Instagram YouTube Print Marketing Daily Mirror The Sunday Observer Sunday Times Hi Magazine Promotional Marketing Cactus Plant Catalogues Viral Marketing The Journey of The Sri Lankan Handmade Batik Vlog
TOTAL MARKETING
Post launch Dec 1
Dec18
Dec15
TOTAL LKR 80 000
LKR 28 000
LKR
6 000
LKR 64 000
LKR 5 0000
LKR 183 000
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COLLABRATION HISTORY
A great advantage to pop up shop is the brand can be very creative in many ways, therefore crossing over with another brand “Crossover Branding” can be beneficial to add an exciting brilliance to the shop. Hence, will be collaborating with two brands which is, Café Kumbuk located at Colombo, it is a cafe which is famous for healthy food, as well as its eye catching interior. They use fresh locally found ingredients as well as organic produce when they can & with The Blue Water Hotel of Union resorts which is under our Union Group of companies.
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COLLABORATION WITH CAFÉ KUMBUK
The partnership with Café Kumbuk to launch their new food items in their menu for Christmas season at the launch event before the opening and in the mid way, the Christmas collection launch event, also to create interest and willingness to buy, pop-up shop customers will receive an exciting voucher one day per week from the café for their entire purchase, the days will announce through the social media on the starting of the new week. And the proposed vouchers as follows, -
*Terms & Conditions Apply
Bill purchase above LKR 10 000 – 20% off Gift Voucher Bill purchase above LKR 5 000 – 10% off Gift Voucher
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COLLABORATION WITH BLUE WATER HOTEL
This promotion will be a raffle draw for customers who purchase goods above LKR 20 000 will receive a coupon to enter the raffle, starting on the 8th December week and go throughout till the final day of the pop-up. One winner will be chosen per week; therefore, three lucky winners will get a chance to have a one-night stay for double occupancy each. This will be an interesting offer for the customers. The details of the raffle and the winners will announce through social media.
*Terms & Conditions Apply
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SOCIAL MEDIA Nowadays in Sri Lanka people are more into social media more than past years. Following pie chart shows the usage of social media in past few years.
SOCIAL MEDIA USAGE YoutubeInstagram 1% 6%
Pinterest 11%
Facebook 82% (StatCounter Global Stats, 2019)
According to the stats shown in the above graph, majority of Sri Lankans using Facebook more than other social media. And as well as mentioned earlier our customers are the people who’s between generation x and millennials, so posting our advertisements and sharing our vlog will be mainly on Facebook, and we are aiming for new customers in post millennials so we will be promoting this popup through Instagram. Vlog will share through Facebook, IGTV on Instagram and YouTube. All the social media promotional activities planned to start one month before the pop up.
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WEEKLY 4Ps
2nd Week
3rd Week
4th Week
Nov 17th – 23rd
Nov 24th – 30th
Dec 1st – 7th
Dec 8th- 15th
Batik Collection, Carlo Boy, Casual wear collection & few pieces from other collections
Batik Collection, Carlo Boy, Casual wear collection & few pieces from other collections
Batik Collection, Christmas Collection, Carlo Boy, Casual wear Collection & few pieces from other collections
Batik Collection, Christmas Collection, Carlo Boy, Casual wear Collection & few pieces from other collections
Price
3500 upwards
3500 upwards
3500 upwards
3500 upwards
At Colombo City Center. Ground Floor
At Colombo City Center. Ground Floor
At Colombo City Center. Ground Floor
At Colombo City Center. Ground Floor Collabor ation Bills over 20000 will get coupon to enter the raffle to win onenight stay at the Blue water Hotel
Batik Promo tion
20% off
Card Promotions
Debit 10%
Bills from 10,000 upwards, 20% & bills from 5000 – 10000 10% off gift vouchers at café Kumbuk
Batik Promo tion
Credit 25%
Collabor ation
20% off
Card Promotion s
Debit 10%
Bills from 10,000 upwards, 20% & bills from 5000 – 10000 10% off gift vouchers at café Kumbuk
Batik Promotion
Credit 25%
Collabor ation
20% off
Card Promoti ons
Debit 10%
Bills from 10,000 upwards, 20% & bills from 5000 – 10000 10% off gift vouchers at café Kumbuk
Batik Promo tion
Credit 25%
Collabor ation
20% off
Debit 10%
Card Promoti ons
Credit 25%
Promotion
4P
Product
4Ps
1st Week
Place
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WEEKLY JUSTIFICATIONS
1st week - Nov 17 to Nov 23 Opening the pop up on the 17th of November which is the initial stage of the Christmas trading period. Since it’s launched week of the pop up, expecting a huge is not possible, so therefore we will be having the current collections throughout the first week. Our prices are the standard Dilly and Carlo prices since we would be expecting the usual target market to turn up and to keep up the brands image with the prestige price line. Store will be in the ground floor at CCC, because it’s much easier to access through the entrance and the other shops around share the same as our target market. We’ll have the debit 10% and credit 25% card promotions from Commercial Bank, Sampath Bank, HSBC & Standard chartered banks as well as the batik promotion and we’ll be having the collaboration with Café Kumbuk since the target consumer is one who tends to like to hang out often in cafés.
2nd week – Nov 24 to Nov 30 The second week starts from the 24th of November which is when the hype of Christmas trends amongst the city. We’ll be continuing with the same collections as first week because it’ll still be the initial stage of the Christmas trading period and there won’t be much of a difference of the turnout compared to the first week. We will be continuing with the same prices since we’ll be still expecting our usual target market and since the quality of our products are high. The location is the same since it’s much easier to access and since rest of the stores on the ground floor share the same target market. We’ll still be continuing with the same card promotions as well as the batik promotion and collaborations as it’ll be the first week of the pop up since there won’t be a bigger difference with the first week.
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3rd week - Dec 1 to Dec 7 The third week starts from the 1st of December and by this time there will be more Christmas shoppers than the early two weeks. Therefore, in addition to our basic collections we will be adding in our Christmas collection to the pop up. By this time, there will be customers wanting to do their Christmas shopping therefore since we’ll be delivering products of best quality and various collections we’ll be continuing with our standard prices. The location is the same since it’s much easier to access and since rest of the stores on the ground floor share the same target market. We’ll be continuing our same card promotions and batik promotion in addition the Vlog give away through social media happening where all the customers who shared the vlog post will get a 10% additional discount apart from the ongoing promotions as we are expecting our usual target market as well as a new customer base due to season. We’ll also be having the usual collaboration with Café Kumbuk.
4th week – Dec 8 to Dec 15 The fourth –week starts on the 8th of December and will be mainly targeting Christmas shoppers. We plan on continuing with the same products as the third week since there’ll be the Christians as well as the non-Christians who’ll be doing their shopping at the Colombo City Center where everyone can shop for whatever they intend on shopping for. The demand for Christmas will be higher by this time, so we plan on continuing with the same price ranges as the earlier weeks. The location is the same since it’s much easier to access and since rest of the stores on the ground floor share the same target market. We’ll be having the same card promotions as well as the batik promotions for our target market. As a newly added promotion, we’ll be having a raffle draw where bills over Rs. 20000 will be eligible to enter and where one could win a one-night stay at the Blue Water Hotel Stay as this will be most suitable during this time because it’s the holiday season and people tend to get attracted to fully- paid holiday getaways, by which we might attract a new customer base.
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STRENGTHS • • • • • • • •
SWOT
Use of high-quality materials Follows Sri Lankan handmade craft methods such as Batik. Classic yet unique designs Friendly employees and cool vibe in the store. Having their own sri Lankan signature style Wide range of clothing sizes Strong brand image Use of international fashion trends and has a contemporary feel to the clothes
OPPORTUNITIES • • • • • • • •
Outlets located in a commercial area Flagship store located in the eye of the Colombo city. Target market is divided between generation X and Millennials. Other competitors are not strong as Dilly and Carlo. Can grab the attention from foreign shoppers because of the sri Lankan inspired clothing like batik. Less exposure to other competitor brands on the ground floor of CCC. The first pop up people see once they walk in to ccc. Growth through collaborations with other companies.
WEAKNESESS • • • • • • •
Low brand awareness No proper website Limited stores Limited audience Price level not fully appeal to post millennial target market. Current market is limited. Some small clothing sizes like below size 8 is not available for some collections.
THREATS • • • •
Appearance of competitors such as Avirate in ccc Hard to quickly grab the attention of the walking in customers. Prestige pricing Target market is between age of 30-45.
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NICHE MARKETING STRATEGY
1. Price adjustments – We would lower our prices in the popup with discounts for card payments as for debit 10% and credit 25%. A special discount of 20% on batik collection. All these are done with the hope of increasing our overall sales and we will analysis our competitors’ prices as well. 2. Increasing promotions – We would promote our popup through a vlog that would give all the information regarding the launch of our popup and different styles of clothing presented. the vlog will be promoted in different social media platforms as Facebook, YouTube and Instagram. 3. Bring unique ideas – We will be collaborating with Blue Water Hotels and Café Kumbuk and provide special offers and discounts for visits for these places.
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CHALLENGES & SOLUTIONS
Sri Lanka’s fast urbanizing population is looking for competitive prices and greater convenience. (Ft.lk, 2019) thus because of that reason us retailers must avoid the traditional retail methods and adapt modern trends and theories in global retail. Therefore, the pop-up store will bring out a newest addition to our brand, this will make more loyal customers to our brand and increases the sales. Not only our target consumer but also the other different consumers can look into the brand in a very brief version, like an example every so often customers who are not in our target consumers are bit curious to shop or to just have a look into high price brands like us, but this popup will clear barriers and all can come and visit the pop up because the proposed location Colombo City Center gathers many crowds, not only millennials (Age 22-37)as well as baby boomers(Age 54-72), generation x (Age 38-53)also the post millennials (Age 0-21) can look into our brand and understand the brand very well looking into our clothing as well as our catalogues and from look books. We can increase the target consumers in coming years. (Mentalfloss.com, 2019)
Target Consumers by Age in Colombo District
Almost decade after the end of the civil conflicts, political instability as well as because of the Easter Sunday attack, Sri Lanka is still finding its balance on the global phase in economy. As mentioned earlier due to the Easter Sunday attacks and because the upcoming presidential election This year Christmas trading period might be bit challenging to the retailers because people might avoid the crowded spaces. Therefore, as a solution we have chosen the ground floor and for our customers they don’t need to go around the shopping complex they can buy and have a look directly after entering the mall and avoid the crowd.
600,000 400,000 200,000 0 Population by Age Age 20-34
Age 35-49
Age 50-59
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WHAT ARE THE OPPORTUNITIES AND CHALLENGES OF OUR CONSUMERS? Millennial demographics are the people who has the purchasing ability and willing to pay money on what they necessarily need, and they are the people who has the responsibility of buying and settling and having a proper career. -
The main psychological traits are, That they are the masters of the art of multi-tasking, Further analysing it as in they are a generation that would gather a lot of information at a time but then the brand should make sure to give out information that would capture their attention. They are the tech savvy people, According to an article this generation spends 5-10 hours just on social media a day, They are the people who frequently goes on Facebook, use different apps and reads blogs. If different brands could give out interesting blogs plus good information on certain things this would capture their attention. Since they spend few hours on social media a day and they are the browsers and not the buyers to catch their attention to buy and to make them buy those products brands need to nurture these browsers. Millennials are creative problem solvers; they take their decisions very fast and they are the section of people who are called as “go getters” . Since the market sector of our brand is millennials its beneficial because their minds are mould into going and getting the product straight away without thinking twice. To market the brand and get the millennials to visit the pop up it’s an advantage for the marketing team to have more than one kind of media with interesting videos, blogs and text to make it look interesting for the multi-tasking millennial mind. That’s why we are creating a vlog to show it through the mid weeks of the pop up to attract their attention. According to one of the pew research center article on social media use in 2018 it is said that the greatest number of people in America are users of Facebook.
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BIBLIOGRAPHY Cbsl.gov.lk. (2019). [online] Available at: https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/statistics/mecpac/Chart_Pack_Q1_2019_e.pdf [Accessed 23 Sep. 2019]. Iconcast.lk. (2019). Colombo City Center -. [online] Available at: http://www.iconcast.lk/colombo-city-center/ [Accessed 18 Sep. 2019]. YAMU. (2019). Colombo City Centre: A Sneak Peek!. [online] Available at: https://www.yamu.lk/blog/colombo-city-centre-a-sneak-preview [Accessed 18 Sep. 2019]. Mentalfloss.com. (2019). New Guidelines Redefine Birth Years for Millennials, Gen-X, and 'Post-Millennials'. [online] Available at: https://mentalfloss.com/article/533632/new-guidelines-redefine-birth-years-millennials-gen-x-and-post-millennials [Accessed 18 Sep. 2019]. Ft.lk. (2019). Sri Lanka’s evolving retail environment and the need for change. [online] Available at: http://www.ft.lk/opinion/Sri-Lanka-sevolving-retail-environment-and-the-need-for-change/14-665276 [Accessed 18 Sep. 2019]. Cbsl.gov.lk. (2019). [online] Available at: https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/publications/red/2018/4%20%20Chapter%203%20-%20English.pdf [Accessed 23 Sep. 2019]. Oxford Business Group. (2019). Retail becomes one of Sri Lanka's fastest-growing sectors. [online] Available at: https://oxfordbusinessgroup.com/analysis/setting-shop-retail-has-become-one-fastest-grow%C5%9Fing-sectors-and-being-drivensophisticated-consumer [Accessed 23 Sep. 2019]. Carlo Boy. (2019). the vantastudios. [online] Available at: https://thevantastudios.com/ [Accessed 23 Sep. 2019]. Instagram.com. (2019). Dilly & Carlo (@dillyandcarlo) • Instagram photos and videos. [online] Available at: https://www.instagram.com/dillyandcarlo/?hl=en [Accessed 23 Sep. 2019]. Ft.lk. (2019). Colombo Christmas Street 2016 concludes successfully. [online] Available at: http://www.ft.lk/lifestyle/colombo-christmas-street2016-concludes-successfully/8-589298 [Accessed 23 Sep. 2019]. Colombo Gazette. (2019). Selyn welcomes the season with a ‘Shop local’ Christmas pop-up. [online] Available at: http://colombogazette.com/2018/11/21/selyn-welcomes-the-season-with-a-shop-local-christmas-pop-up/ [Accessed 23 Sep. 2019]. Storefront. (2019). British Menswear Brand Sir Plus Pops Up with Storefront in Le Marais - Storefront. [online] Available at: https://www.thestorefront.com/mag/british-menswear-brand-sir-plus-pops-up-with-storefront-in-le-marais/ [Accessed 23 Sep. 2019].
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StatCounter Global Stats. (2019). Social Media Stats Sri Lanka | StatCounter Global Stats. [online] Available at: https://gs.statcounter.com/social-media-stats/all/sri-lanka [Accessed 23 Sep. 2019]. Pew Research Center: Internet, Science & Tech. (2019). Social Media Use 2018: Demographics and Statistics. [online] Available at: https://www.pewinternet.org/2018/03/01/social-media-use-in-2018/ [Accessed 23 Sep. 2019]. Forbes.com. (2019). 5 Trends That Will Redefine Retail In 2019. [online] Available at: https://www.forbes.com/sites/jiawertz/2018/11/28/5trends-that-will-redefine-retail-in-2019/#4eade2406526 [Accessed 23 Sep. 2019].
