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ยกpop panama! 1
TABLE OF CONTENTS:
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all about miu miu:
-company profile -business model -positioning -swot analysis -distribution
the brand currently: -brand identity -positioning -goals & strategy
panama as an industry -state of the industry -p.e.s.t.l.e. analysis -competition
panama as a person -consumer demographic -consumer psychographic -customer profiles
panama locally -location & justification -surrounding area
the store
-hr and hiring - store design - design finances
nitty gritty
- assortment plan - promotional plan
money matters
-sales and foot traffic -profit and loss statement - conclusion
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¡pop panma! ¡ executive summary Miu Miu poses many opportunities for growth. As the daughter company of Prada Group, the company has a clearly identified customer base, which is very similar to that of Prada. With a younger edge and a vibrant spirit, Miu Miu taps into the market of the woman who knows 30 is the new 20, and realizes that you’re only as young as you feel. While Prada is instantly recognizable as a luxury brand across the world, Miu Miu tends to fly slightly under the radar. Despite being well known within the fashion industry, Miu Miu remains somewhat elusive in certain markets, particularly those of Central America and Africa. Through ¡Pop Panama! We will ensure that Miu Miu becomes a local luxury destination in emerging luxury market of Panama City, Panama.
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¡ company profile ! From the time it was created in 1993, Miu Miu was always the rebellious counterpoint to Prada who wasn’t always as eccentric. Early shows were held in most of all the fashion capitals, however, the label didn’t take off until it’s first show in Paris in 2006. As a subsidiary of 103 year-old fashion powerhouse, Prada Group, Miu Miu is a stepping stone within the Prada brand. Their hope is to create a loyal customer that will grow up with the company, and move from Miu Miu to Prada. Miu Miu embraces both couture and refined experimentalism, giving fashion a sophisticated elegance and twisted purpose.
¡ mission statement ! While Miu Miu doesn’t have an official mission statement, the design and production process can be decribed best by creative director Miuccia Prada, who said, “The creative process in Miu Miu is completely different from that of Prada. Miu Miu is not as complicated and thought out as Prada. Rather than being young, Miu Miu is immediate. Prada is very sophisticated and considered; Miu Miu is much more naïve. The solution, when I am working on Miu Miu, has to come immediately, instinctively, spontaneously with whatever is available at the moment. If I think three times, I stop.”
¡ business model ! Prada Group produces all of their goods in the same 12 productions cites around the world for each collection, which allows the brand to keep careful watch over production standards, timing, production costs, and a close eye on factory standard compliance. In 2015, Prada Group managed 1.8 billion dollars in net revenue, with Miu Miu accounting for 16% of sales, a 2% increase from 2014. Prada has remained under the creative direction of Miuccia Prada since its inception, and current company structure is as follows: - Carlo Mazzi (Chairman), Miuccia Prada Bianchi (Chief Executive Officer), - Patrizio Bertelli (Chief Executive Officer), Donatello Galli (Executive Director), Alessandra Cozzani (Executive Director) - Gaetano Micciché (Non-Executive Director), Gian Franco Oliviero Mattei (Independent Non-Executive Director), Giancarlo Forestieri (Independent Non-Executive Director), Sing Cheong Liu (Independent Non-Executive Director)
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ยก s.w.o.t. analysis ! S
-High quality products -Owned by PRADA Group which implies strong financial backing -Aspirational brand -Wide range of prices ($155 and up) -Celebrity following -Great, eye-catching advertising
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-Very specific customer and niche market -Can only buy shoes, accessories, handbags, jewelry, and eye wear on the Miu Miu online store -Minimal e-commerce accessibility -Limited retail distribution -While Miu Miu style is easily distinguished from PRADA by aesthetic and target customer, the brands are extremely similar in price point -Super trendy
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-Ability to open new stores in more locations around the world -Sustainable clothing -Brand ambassadors who better align with target customer -Smart phone app -More/better presence on social media
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-Quirky brand competition -Fluctuation of different economies -Increase in interest rates -Relevancy -Constantly changing trends
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¡ brand identity ! Miu Miu’s name is derived from creative director Miuccia Prada’s nick name, which if anything, is just a testament to the brand’s whimsical nature. Miu Miu is to Prada as daughters are to mothers; its’ playful, slightly irreverent, and not afriid to stand out from the crowd. Miu Miu retail spaces are gilded, and fanciful affairs with minimal product and maximum design. Every Prada and Miu Miu store is carefully planned and designed by the group’s personal architect and interior designer, Roberto Baciocchi who is known for his minimal approach to design.
As a Person
As a Symbol
As a Product
As an Organization
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ยก positioning and distribution ! The luxury retailer has done well over the past few years as the luxury market continues to grow in most countries. Last year, net sales totaled $256 million. To date, Miu Miu has 174 directly operated stores and 10 franchised locations, with points of sale in 33 countries. Currently, Miu Miu is sold at boutiques, department stores, and specialty shops worldwide, however, online sales are limited to accessories (bags, shoes, eyewear, fragrance) on the Miu Miu website. Net-a-porter, and My Theresa are the only online shopping destinations that sell full price, current season Miu Miu clothing. Physically, Miu Miu sits with other young spirited, eccentric luxury brands on the floor. Competitors include Marc Jacobs, Red Valentino, M Missoni, Marc Jacobs, & Loewe. By analyzing price and accessibility of ourselves and our competitors, we determined that
HIGHER PRICE
LOEWE MARC JACOBS LESS ACCESSIBLE
RED VALENTINO M MISSONI
LOWER PRICE
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MORE ACCESSIBLE
MIU MIU
¡ communication & promotion ! As a group, Prada spends an average of 5% annually on advertising and communication (Prada Annual Report, 2015). Miu Miu’s annual spending figures are not broken down in the same depth of their parent group’s, however, if the 5% is calculated from Miu Miu’s annual net revenue, their estimated spending on advertising for 2015 comes to $12.8 million. Miu Miu’s advertising stragegy is multilayer. Miu Miu is dedicated to working with renowned photographers to create captivating print and video campaigns each season. Through print advertising in international publications and magazines, the brand is able to increase brand awareness. Social media accounts on twitter, facebook, youtube, and instagram have a total of almost 3 million followers.
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¡ strategy & goals ! Miu Miu’s current stand-alone store distirbution is limited to Europe, Asia, and North America. Our goal is to test the market for Miu Miu in a location in which they do not already have a presence. Recent studies have shown emerging luxury markets in South/Central America and Africa. Location wise, we considered Panama, Columbia, Chile, and South Africa. However, after careful consideration we have opted to establish and test a new market in pop-up shop in a newly emerging country in Latin America. Through this endeavor we will connect with local influencers in order and increase brand awareness by catering to untapped customer potential and establish Miu Miu as a luxury destination within Central America.
¡ objectives ! During our time in our temporary location, we want to ensure that we have reachable, measurable objectives outlined which will allow us to accurately measure our success. We will use our opening night be a measure and indication of future success, therefore, on opening night we would like to attract at least 350 people and make at least $75,000 in sales. To spread awareness of the pop up shop we will engage customers through existing social media accounts on facebook, instagram, twitter with a goal of increasing social media engagement (follows, likes, retweets, etc.) by 10%. Additionally, we will introduce a Miu Miu snapchat especially for the event, and promote it through our other social platforms. Lastly, the pop-up shop aims to be featured in at least five magazines worldwide at least five local newspapers, and at least five local magazines.
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¡ panama: state of the industry ! Ultimately, after careful analysis of emerging luxury markets around the globe, we chose Panama as the country for our popup shop. Panama City is the largest city in Panama, and because of recent canal restructure the city is growing rapidly as a shipping, business, and telecommunications hub. The Panama Canal handles 4% of world trade, which is likely to double after the expansion of the Panama Canal. The country’s steadily growing GDP supports and contributes to a strong retail market. Panama has nearly 500k sq/mi of retail projects in development, currently. This growing retail Industry is bringing a sophisticated, wealthy consumer base to Panama. These same consumers, who historically have gone to the United States or Europe to shop, can now indulge in the luxury goods they crave while staying close to home. Consumers seeking luxury goods in Columbia and surrounding countries can easily access the increasing luxury options in Panama City, which will drive even more business to the retail industry in Panama City. It’s not a stretch to imagine opening a pop up shop in Panama, since Prada already operates a store location in the SOHO mall, and thus the region already has a certain degree of brand awareness.
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ยก p.e.s.t.e.l analysis ! P - Panama Canal expansion is dominating political forefront. - uneven income distribution - judicial system corrupt - cases of money laundering - political risk 8/10 - political stability 9/10 E - national GDP $44.3 billion - total retail sales in 2015 $10.6 billion - retail trade makes up 9.1% of the national GDP - open economy which depends on foreign trade S - unemployment rate has fallen over the past two years - the total population of Panama is over 3.5 million - 1.6 million females - more than half the population lives in the Panama City-Colon metropolitan corridor. -92% of Panamanians over 15 are literate - complaints about education system
T - aiming to become a logistics hub for Latin/Central America. - great for telecommunications & banking - outstanding infrastructure and is known as a Central American tech innovator E - wide biodiversity and differentecosystems - occasional severe storms - largest energy consumer in Central America - negligible hydrocarbon energy reserves means that neither produces nor consumes natural gas L-legal changes are lowering tax risks; reforms make it easier for investors - free trade agreement with the United States makes trade easy between North and South America -criminal violence of Columbia oftentimes spills over into Panama borders
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¡ direct competition ! FENDI Fendi was founded in 1925 in Rome by Adele and Edoardo Fendi as a fur and leather shop in Via del Plebiscito, Rome. Karl Lagerfeld joined Fendi in 1965 and became the Creative Director for Fur (and then later for Women’s Ready-to-Wear) which launched in 1977. The brand continues with its heritage, specializing in furs. Other product categories include handbags, leather goods, women’s and men’s Ready-to-Wear and accessories, shoes, watches, eyewear, perfumes, textiles, fashion jewelry, beachwear, active wear, kids wear, and home design. With over 200 stores worldwide, Fendi’s Panama store is also located in SOHO Mall.
ROBERTO CAVALLI In the early 1970s, Roberto Cavalli invented and patented a printing procedure on leather, and he started creating patchworks of different materials, gaining the attention of the likes of Hermes and Pierre Cardin. He presented his first namesake collection at the Salon for Prêt-à-Porter in Paris and opened his first boutique in Saint-Tropez in 1972. Cavalli is sold in over 50 countries worldwide with 179 flagship stores worldwide. Cavalli’s Panama store is located at the Multiplex Plaza, Panama. Brands include Roberto Cavalli, Just Cavalli, Cavalli Class and Roberto Cavalli Junior. The brand sells products for men and women along with a wide range of products manufactured by licensees, including among others: silk and cashmere accessories, eye wear, watches, perfumes, underwear and swim wear.
VALENTINO Valentino was founded in Rome in 1959 by Valentino Garavani. In 1960, Valentino met Giancarlo Giammetti in Rome. They quickly became partners and together the pair developed Valentino SpA into an internationally recognized brand. Valentino’s Panama locations include a duty free shop at the Tocumen International Airport & a shop in the SOHO Mall, which is actually right next door to our proposed pop up shop location. Brands include Valentino and R.E.D Valentino, which sit as respective competition to Prada and Miu Miu respectively. In terms of distribution and reach, Valenteino is available in over 70 countries worldwide and product categories include haute couture, prêt-à-porter, accessories, fragrances, and eye wear.
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¡ indirect competition ! FELIX B. MADURO This Panama based multibrand accessories retailer is a typical department store. With a vast product price range, this retailer’s trend driven pricier items may potentially take busniess from Pop Panama, despite the store being located in the other large Panamanian mall. NINA CONCEPT STORE For the fashion concious and trend driven Panamanian consumer, the Nina Concept Store is a fun and different way to shop. And although the store doesn’t overlap any of our product categories, with small lifestyle goods and a cafe this is a definite tourist destination. Nina Concept Store is located a block away from the SOHO Mall. Additionally, we identified a few online competitors. These are retailers which ship internationally, and carry cool-girl brands like Miu Miu: SAKS FIFTH AVENUE E-COMMERCE American luxury department store, known for their ability to thrive in many markets. Saks carrys traditional, well known luxury brands, as well as a handfull of ones that are only familiar to people who are immersed in the fashion industry. NORDSTROM E-COMMERCE Known for their extremely accomodating customer service, and well curated product assortments, Nordstrom is arguably stronger in brick & mortar. However, their great reputation is consistent in online channels and the ex-pat customer is likely to be a loyal shopper. NET-A-PORTER E-COMMERCE Net-a-porter is an international online shopping destination. Similar online multibrand websites exist, but none as strong and consistently reliable as Net-a-porter. YOOX E-COMMERCE Yoox is Net-a-porter’s younger, cheaper, and more avant-garde counterpart. As a part of the Net-a-Porter group, Yoox has the same shipping policy and excellent customer service as it’s parent websites, but is slightly less known.
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¡ target consumer ! Miu Miu’s target consumer is highly fashion concious. She is in tune with trends, although she doesn’t necessarily follow them. As a person she strives to push the envelope, is hard working, and sticks to her guns. She’s not afraid to say what she means, and she walks to the beat of ther own drum. The Miu Miu customer presents a great opportunity in Panama, because there are plenty of strong Latin women in the region who fit this bill. And since Prada has been extremely successful in the Latin market, it’s not at all a stretch to think that the same women who tend to purchase Prada’s more whimiscal wares would also gravitate toward the Miu Miu’s paunchy colors, and quirky design aesthetic. Many Panamanians feel very strong ties to their country, which can best be summed up with the popular Panamanian phrase “puente del mundo, corazón del universo” which translates to bridge of the world, heart of the universe. As stated before, the wealth distribution in Panama is vast. Of the 880k plus residents of Panama City, there is a vast disparity in lifetyles. The poor are very poor and the rich are very rich, so customers shopping with Miu Miu fall within the the top percent of Panamanian wealthy. However, studies have shown that hispanic cosumers buy more name brands than any other ethnic group. Additionally, Panamanians are incredibly loyal, both to other people and to the brands and businesses they support. Therefore, building a strong relationship with customers is essential to the localization and success of ¡Pop Panama!.
¡ population demographic snapshot ! Official Language: Spanish (but many Panamanians are bilingual) Metro Population: 1.4 million Median Female Age: 29 y/o Urban Population: 66.6% of total population Race: 70% of population “mestizo” (mixed Spanish and Indian)
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lucia alvarez Young Influencer 30 yo “Sophisticated Climber� Management Analyst Income: $78,760/yr College & Grad School - Works an office job at a major corporation - Was raised in a wealthy family - Makes frequent splurges on designer accessories & occasionally clothing - Has been dating her boyfriend, Jose, for two years and hopes to be engaged as soon as he finishes his residency Key Miu Miu items: Military Green Tote, Noir Sunglasses
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anita & sophia bello Anita: 38, Sophia: 17 Anita: Homemaker, wife Sophia: High school student Income: $350,000/yr - Family moved to Panama City from Miami, FL - Anita is the wife of a wealthy developer working on canal expansion - The duo enjoys shopping, dining and going on spa trips together. - Anita attends many social events, and Sophia enjoys nightlife Key Miu Miu Items: Anita-Embelished little black dress, Sophia- MIU MIU Perfume, Cat Print platforms
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ana maria perez Older Influencer 56 yo “Sophisticated Climber” Retired/Socialite Income: $175,000 /yr College Graduate - Native Panamania - Previously worked as an editor of Vogue Latin America - Loves to travel with husband & take trips with friends, and hang out at the marina - Has an extensive collection of designer clothing, shoes, and accessories - Her style is the epitome of more is more Key Miu Miu items: Orange and Red Lame Sandals, Embelished Pink Lamb’s Leather foldover, Multicolor Swarovfski earrings
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¡ justifications ! ¡Pop Panama! is an ideal way for Miu Miu to test the Panamanian market. A pop up shop which stays open for six weeks will allow Miu Miu to collect user generated data on sales and market trends before Miu Miu commits to a permanent Panama location. Panama’s SOHO mall already houses a Prada store, meaning that the market for another brand under the group’s umbrella just might be present. There is a distinct possibility that Miu Miu will thrive in the Panama market, and ¡Pop Panama! is the best possible way to capitalize on that possibility. Located in Panama City’s Obarrio/Calle50 district, the SOHO mall, was built in 2014, and is located across from the eyecatching F&F Tower. In addition to three levels of retail space with more than 100 commercial establishments and nearly 30 restaurants, the SOHO Complex also features two office towers, a movie theater and a casino, along with the first Ritz Carlton in Latin America with 80 residential properties above the hotel. The SOHO Mall Complex features a wide array of attractions aside from just shopping for visitors to enjoy. Not only is Panama an ideal location to test the Latin American market for Miu Miu, the location in which we’ve chosen to host our pop up is accessible from pretty much anywhere in Panama, meaning that there will be plenty of prospective visitors. Metro and Metro Bus cards are easily purchasable, and public transportation is easy to navigate. To visit our store, take the Panama Metro (at .35 cents a ride) to the Via Argentina stop, then the SOHO mall is about 4 blocks away heading towards Calle 50. Parking is free for the first two hours, everyday after 10 am and valet services are available at the concierge desk on Level A. Customer segmentations of those in and around the SOHO mall consist of the following key PRIZM grouping: Upper Crust- wealthy older couples with kids, living in exclusive addresses with opulent lifestyles Blue Blood Estates- families of significant wealth, six figure incomes and, exclusive private clubs, and perfectly manicured lawns Young Digerati- younger, tech savvy individuals and or families, living in trendy somewhat exclusive urban neighborhoods.
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ยก more about the area ! ยกPop Panama! is slated to open just before Carnival (a.k.a. Mardi Gras or Shrove Tuesday) in February of 2017. Carnival is a huge celebration in Panama, and is celebrated with just as much passion and abandon as in cities like Rio and New Orleans. Carnival is a time of partying and expelling all bad behavior before lenten season, which means that many will give up vices in the 40 days before Easter. Our pop up shop will be operating during that time of recovery and calm leading up to Good Friday in order to give shoppers an entertainment option. Carnival also pulls thousands of tourists to Panama City, some of which may be searching for a reprise from the partying, dancing, and drinking of carnival during their trip, and will gladly visit the SOHO mall to get a break from the whirlwind of Carnival.
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¥ human resources ! With a Prada store already located within the SOHO Mall, it is possible to begin staffing our pop up shop from within the company. Shifting our first round of employees from the Prada store to management positions within the Miu Miu pop up shop will ensure that those in management positions are familiar with the ins and outs of the company and that they have experience with the Prada customer in Panama. In recent years, Panama has sustained a struggling job market, lacking technically specialized workers. While this may make finding part time sales associates slightly difficult, the market for high paying retail jobs is certainly higher than that of manual labor. Additionally, 20% of Panama’s population is working age females, which is the main demographic from which we hope to hire. Miu Miu retail associates work on commission. The minimum wage in Panama is currently set at US $416 per month and since the normal work week is 45 hours in Panama, it averages out to be about $2.31 per hour.
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In order to be on par with our regular retail operations, and in compliance with Panama’s laws on hourly wages, we have decided to pay ¡Pop Panama! employees above the standard Panamanian minimum wage, and include a commission. The pop up shop’s two managers will earn $5/HR plus 5.5% commission, and sales associates will earn $3/hr plus 3% commission. Securing a space inside the SOHO Mall for our pop-up shop will set us back around US$9,000 a month, utilities included. We chose a premium space on Level A, home to the most exclusive and luxurious brands in the mall, in between Valentino and Yves Saint Laurent and we believe our location will benefit greatly from the foot traffic generated by the nearby escalators. Despite it’s low minimum wage, Panama continues to enjoy the strongest economic growth in Latin America. It benefits from stable and consistent economic policies and a government that consistently supports trade and open markets.
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ยก legal & health ! While international indices generally rate Panama as one of the best countries in Latin America for business and investment, poor rule of law, lack of judicial independence, a shortage of skilled workers, high levels of corruption, and poorly staffed government institutions all add risk and complication to business dealings. When Panama joined the WTO in 1997, the government lowered tariffs to a maximum of 15%. Local regulations require labels to be in the Spanish language and are required to have basic information regarding the name and address of manufacturer, expiration date, listing of ingredients, lot number, and the product form. Every bathroom in the SOHO Mall includes breastfeeding facilities for mothers and a ground ambulance is present at all times in case of an emergency.
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¡ store design ! Stepping into ¡Pop Panama!, customers will be transported into a garden party wonderland, Miu Miu style. Our product assortment has been carefully hand-selected to effortlessly merge the avant garde, refined Miu Miu aesthetic with the culture and tastes of Latin America in a way that will appeal to both our older and younger target customers. ¡Pop Panama! will be located between YSL and Valentino in a 1200 sqft storefront 1/3 the size of Prada’s SOHO Panama store. Our assortment plan features a well balanced ratio of categories including handbags, eyewear, shoes, clothing, perfume, jewelry, wallets and small accessories perfectly suited for a Panamanian garden party.
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ยก fixtures !
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ยก assortment ! As stated previously, our assortment for ยกPop Panama! was carefully selected based on the theme Panama Garden Party. The climate in Panama pretty much never drops lower than 70*F all year round, which means that our assortment needed to reflect the climate of our environment. We limited the number of outerwear pieces as a result of that, and managed to keep long sleeved garments to a minimum. Overall this assortment puts an emphasis on color, pattern, and texture for a collection of goods that is both decidedly Panamanian and decidedly Miu Miu.
Tops
Color: Black Price: $1,050
Color: Light Blue Price: $600
Color: White Price: $745
Color: Nude Price: $685
Color: Cream/Yellow/ Light Blue Price: $870
Color: Nude Price: $790
Colors: White, Pink/Cream Price: $590
Colors: Light Blue, Light Pink Price: $840
Color: Multicolored Price: $1,050
Color: Black Price: $900
Color: White Price: $1,350
Color: Pink Price: $685
Color: Light Pink/ Yellow Price: $865
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dresses continued
Colors: Dark Blue Denim Price: $900
Color: Black/Pink Price: $2,430
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Color: Multicolored Price: $3,800
Color: Light Blue Price: $3,950
Color: Black Price: $3,650
Dresses
Color: Black Price: $3,650
Color: Multicolored Price: $3,950
Color: Nude Price: $2,050
Color: Multicolored Price: $2,890
Color: Multicolored Price: $1,355
Color: Black Price: $1,450
Color: White Price: $900
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pants
Color: Light Blue Price: $490
Color: Black Price: $490
Color: Dark Blue Price: $990
Color: Black Price: $410
Color: Multicolored Price: $1,200
Color: Light Pin Price: $530
Light Outerwear
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Color: Dark Blue Denim Price: $3,650
Color: Camel Beige Price: $2,050
Color: Light Blue Price: $490
skirts
Colors: Light Pink, Light Blue Price: $895
Color: Dark Blue Price: $1,140
Color: Black/White Price: $490
Color: Pink Price: $530
Color: Black/Pink Price: $990
Color: Black Price: $1,200
Colors: Light Pink, Lavendar Price: $580
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shoes
Color: Silver Price: $990
Color: Black/White Price: $695
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Color: Light Pink Price: $745
Color: Black Price: $775
Color: Black Price: $1,050
Color: Brown Price: $1,050
Color: Light Blue Price: $655
Color: White Price: $595
shoes
Colors: Mint Green/ Copper, Brandy/Red Currant Price: $795
Color: Black Price: $590
Color: Silver Price: $750
Color: Silver Price: $950
Color: Gold Price: $475
Color: Tan/Pink Price: $950
Color: Nude Price: $895
Color: Blue/Travertine Gray Price: $1,570
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shoes
Colors: Nude, Black Price: $1,450
Colors: Black, Nude Price: $990
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Color: Blue Price: $790
Color: Black/Red Price: $1,600
Color: Blue Price: $950
Colors: Light Pink Price: $990
jewelry
Oversized Embellished Color: Multicolored Price: $1,415
Color: Multicolored Price: $1,130
Color: Multicolored Price: $1,550
Colors: Silver, Red, Gold, Pink Turquoise Price: $155
Color: Multicolored Price: $460
Color: Multicolored Price: $500
Color: Multicolored Price: $700
Color: Multicolored Price: $355
Color: Multicolored Price: $495
Color: Multicolored Price: $605
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handbags
Color: Pink Price: $1,590
Colors: Pink/Yellow, Nude, Blue Price: $1,190
Colors: Black, Pink Price: $2,100
Color: Black Price: $2,185
Colors: Pink, Blue, Yellow Price: $1,530
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handbags
Colors: White, Black Price: $1,020
Colors: Red, Pink Price: $3,650
Colors: Red, Light Pink, Nude Price: $1,530
Color: Black Price: $1,465
Color: Silver Price: $465
Color: Nude Price: $560
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ยก promotional plan ! For ยกPop Panama! our promotional plan begins with an all cylinders assault of social media, in the months leading up to the event we will drop hints about what is to come, as well as launch a youtoube video that details the building process of the pop up shop. Additionally, we will rely heavily on word of mouth via bloggers, and influencers to aid in spreading the hype for our business venture. Celebrities, influencers, and press alike will be invited to our launch party during which bloggers will be asked to wear their gifted pieces, and each of the first 100 attendants will receive a free Miu Miu perfume.
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¥ financials ! Beginning with our foot traffic and sales calculation we determined which pieces would need the most assortment, based on both what the Panamanian customer would want, and also based on the sales projections found in last year’s Prada Annual Report. From there we developed a profit and loss statement including all expenditures for ¥Pop Panama! and determined that overall this endeavor is a loss profit-wise. However, testing a new market is always seen as an investment, and the sales projections we hope to attain from this business venture will provide Miu Miu with invaluable information for future Panamanian business.
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ยก profit & loss !
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¥ conclusion ! Opening ¥Pop Panama! is both an opportunityand a risk. It is an opportunity because of the vast and quickly expanding luxury market in Panama, and the money flowing throught the country, and its has the potential to be a risk for the simple fact that Miu Miu is entering a new market. Overall, we’ve determined that the best way to meld ourselves with the existing luxury market, including our sister brand Prada, is to heavily promote Miu Miu, and to localize our product assortment, fixtures, and design into Panamanian culture.
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RETAIL MANAGEMENT ALESSANDRO CANNATA SCAD, WINTER 2016 kerrilyn gibson sloane mayberry ashley rosales nicole steffe
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