Retail Management Project by Nuria Pons

NURIA PONS ROSSELLO

CHEAP MONDAY DISTRIBUTION REPORT

2019

BA(Hons) Fashion Marketing and Communication, Level 5, 2017-2018 5FAMK004C Marketing Techniques and Strategy 2 CWK2 Andrea Romero/ Abel DÃaz Word count: 1457. 1

TABLE OF CONTENTS

4 5

6 7 24

28 30 32

INTRODUCTION LITERARY REVIEW RESEARCH STORE MANAGEMENT PLAN FINANCIAL CONCLUSION BIBLIOGRAPHY ANNEX 3

INTRODUCTION Cheap Monday is a Swedish company that was bought by the H&M group in 2008. The brand, originally, started as a second-hand-clothing store in Stockholm. Later on, the brand started to produce their own products, including jeans which were the original focus. Nowadays, Cheap Monday is available in more than 35 countries and has about 2000 resellers all over the world. Their street style products are mainly sold through selected retailers worldwide, considering key cities such as: Copenhagen or Paris, where their franchises can be found, London where their flagship store is, and two other stand-alone brick & mortar stores in Shenyang and Beijing (China).

LITERARY REVIEW The aim of this paper is to establish a brick and mortar Cheap Monday store in Barcelona. To do so, a research will be done that will include a brand analysis that will cover the brand competitors in general and potential competitors in Barcelona, the marketing mix and finally, the main commercial areas in Barcelona to determine which can be the most profitable location for the store. In addition, it will also involve the pedestrian flow of different streets, average rental prices and a study of the different retailers and services found in the chosen area for the store. After the examination, it will be covered the store management plan which will include the store layout, visual merchandising and category roles. To conclude the paper, a financial study will be done in which it will be taken into account the initial investment for the first year, the operating expenses and the stock buying to obtain a ROI (Return of Investment) that will determine whether a Cheap Monday store will be profitable in Barcelona

RESEARCH Cheap Monday is a niche company and it is reflected in their market positioning and strategy. Their general target is young and active on social media and up to current trends. Cheap Monday does not have any direct competitor, besides Weekday and Monki who belong to the same parent company. Although in Barcelona, their major potential competitor could be the Inditex Group because they own a significant amount of brands that could interfere with the success of the brand expansion to Spain. Concerning their marketing mix, they mainly operate through resellers online and offline, besides having one flagship store in London and two in China. They niche strategy is reflected in their promotional operations since they are not emphasizing it enough, besides having the five main social media platforms (Facebook, Instagram, Pinterest, Twitter and Snapchat) and Newsletter. Their average retail price is around 45, always depending in the product category. In this sense, their most iconic and popular item are the jeans. To conclude, any possible expansion strategies were found, besides their mission to use 100% sustainable materials. In terms of the research of the main commercial areas, I thought that the most appropriate location to open a store would be in a third level street which can provide a closer and more feeling to consumer, aside from being a very touristc area It is needed to mention, that a more detailed research of the points mentioned above can be found in the last annex.

STORE MANAGEMENT PLAN 1.LOCATION 2.LAYOUT AND SPACE 3.VISUAL MERCHANDISING 4.CATEGORY MANAGEMENT 5.PROMOTION AND COMMUNICATION

LOCATION After researching different retail areas of Barcelona, I concluded that the store should be placed in El Born or in El Raval. Those two areas provide a more local feeling that the 1st level streets or prime locations such as Passeig de Gràcia or Portal de l’Àngel. Since Barcelona is an Strategic Market any central area has a significant number of potential clients per day. However, both areas, El Born i El Raval, have exactly an average of 3.180 potential customers per day. The data belongs to C/ de l’Hostal de Sant Antoni (2875) in between c/del triangle and c/dels flassaders from May of 2017. In addition, both areas are considered 3st level street.

IMAGE 1: (TC-Street, 2017)

The main point in opening the store in a third level street was the closeness to customers. Since Cheap Monday is a niche clothing brand and their style is rather alternative and grunge, the store had to be place in an area where more alternative people hang out or tend to go shopping. Opening the store in a 1st level street would have provided more potential customers per day, although it would not have attracted the desired target. After researching actual properties for rent, one local from c/Princesa was selected to establish the brick-and-mortar Cheap Monday’s store. The property is located in El Born, which has 270 m2, 7 store windows and it is a corner. The connection with public transportation is amazing since the metro stop Jaume I in Via Laietana is right in front in the beginning of the street. Besides, is a very frequented area for tourist, since many landmark and museums are around. (In the research there are more points supporting the opening in that specific location)

IMAGE 2: (Google, 2017)

The building has a completely diaphanous inner distribution with a constructed area of 270m2. The property is divided in three parts, although all of them will be used. Five fitting rooms will be constructed, one toilet for staff and a storage room.

LAYOUT AND SPACE cold zone

warm zone

tables and shelfs for men and women with destination(jeans, tops, sweatshirta) and preferred (trousers and shoes)

mannequin racks with convenience (accessories, sunglasses, bags and jewellery)

racks with destination and convenience for women

depends on the season, table for shorts and racks for scarfs

racks with destination and convenience for men

racks with destination both men and women (jeans and jaquets)

men’s products

women’s products customer journey

table or rack for seasonal

5 fitting rooms storage room , small toilet

racks with destination tables and shelfs for destination and preferred

racks with convenience

window screen cashier

ENTRANCE

window

men’s zone

window women’s zone

window window

The space of the store will be dived by categories, there will not be a clear separation in between men’s and women’s clothing since Cheap Monday products, especially jeans are jackets, are quite neutral. Although, the back of the store will have on racks the destination and convenience products for women. Besides, the cashier and the convenience with accessories, sunglasses, bags and jewellery that will be in the same area although, it will have a rack for men’s and another for women’s. It is very useful to have convenience products there since people waiting in line to pay might get distracted with them and purchase them creating more profit. In the centre of the store, there will be tables and shelves in triangle forms, as seen in different Cheap Monday stores. The ones on the top left will have men’s products and the other ones on the down right women’s. Therefore, a very discrete separation of the different sex sections will be done. On the upper right side, five fitting rooms will be constructed and on the left side there will be racks with men’s destination and preferred. Followed by a seasonal rack or table that will be always be modified depending on the season. In this section, men and women will only be separated by rack or table. In this sense, just on the left of the entry there will be placed a big rack with destination, mainly jeans and jackets with men and women together, just separated by racks because those items, especially jeans are the key products of Cheap Monday and they help to differentiate the brands to its competitors because Cheap Monday started as a skinny jeans brand from Sweden and then created other categories. In front of the entry door, there will be a big moving screen showing different campaigns and emphasizing the fact that Cheap Monday is using sustainable and recycled materials. The screen will attract more customers inside since pedestrians walking on the street will be able to see it from the outside through the door. In addiction, the seven windows will be exposing mannequins. Above, an example of a possible screen type with the content that could be shown.

IMAGE 3: (Screen, 2018)

IMAGE 4: (Cheap Monday, Sustainability, 2018)

VISUAL MERCHANDISING GENERAL AESTHETIC OF ALL CHEAP MONDAYâ&#x20AC;&#x2122;S STORES AROUND THE WORLD

IMAGE 5-6-7: (Cheap Monday, VIsual Merchandising, 2018)

SMALL CHANGES FOR THE STORE IN BARCELONA

Image 8: (SCIENCE FICTION GOES BEYOND BOOKS AND SCREENS, 2017)

Image 9: (ALLSAINTS SPITALFIELDS INDUSTRIAL INTERIOR DESIGN CHICAGO, 2017)

Image 10: (Product Editorial: Andy Thornton 29 SEP, 2017)

For the visual merchandising, the style that Cheap Monday has in their different stores will be followed because it really matches with their clothing and the lifestyle that they are trying to portrait. Although slight some changes will be done, which will be giving the store a more industrialised feel with more metal and grey details.

CATEGORY MANAGEMENT DESTINATION (40%) CATEGORY ROLE JEANS DESTINATION

TOPS & T-SHIRTS

DESTINATION

SHIRTS & BLOUSES

DESTINATION

JACKETS

DESTINATION

SWEATSHIRTS

DESTINATION

MARKETING MIX Assortment: 20% Price: 21-90€ Promotion: window display Merchandising: best location, shelves and tables Assortment: 10% Price: 8-40€ Promotion: manniquins Merchandising: racks and tables Assortment: 3% Price: 17-60€ Promotion: none Merchandising: racks, best location Assortment: 4% Price: 27-150€ Promotion: window display Merchandising: racks, best location Assortment: 3% Price: 14-70€ Promotion: none Merchandising: racks and tables

DESTINATION

4% 3%

20%

10%

Jeans:

Tops & Shirts:

Shirts & Blouses:

Jackets:

Sweatshirts:

PROFIT GENERATING

CONVENIENCE (16%) CATEGORY ROLE ACCESSORIES CONVENIENCE

SUNGLASSES

CONVENIENCE

JEWELLERY

CONVENIENCE

BAGS

CONVENIENCE

MARKETING MIX Assortment: 3% Price: 3-60€ Promotion: none Merchandising: racks Assortment: 3% Price: 8-35€ Promotion: none Merchandising: racks Assortment: 5% Price: 3-30€ Promotion: none Merchandising: racks, best location Assorment: 5% Price: 8-60€ Promotion: window display Merchandising: racks

CONVENIENCE

3% 5%

Accessories:

Sunglasses:

Jewellery:

Bags:

TRANSACTION BUILDING

EXCITEMENT CREATING

IMAGE ENHANCING

PROFIT GENERATING

PREFERRED (14%) COATS

CATEGORY ROLE PREFFERED

TROUSERS

PREFFERED

KNITTED

PREFFERED

SHOES

PREFFERED

DRESSES AND SKIRTS

PREFFERED

MARKETING MIX Assortment: 2% Price: 27-150€ Promotion: window displa Merchandising: racks Assortment: 2% Price: 28-90€ Promotion: none Merchandising: shelfs Assortment: 4% Price: 15-80€ Promotion: none Merchandising: shelfs or tables Assortment: 3% Price: 18-160€ Promotion: none Merchandising: tables Assortment: 3% Price: 11-100€ Promotion: none Merchandising: racks

PROFIT GENERATING

SEASONAL (30%) SHORTS

SCARFS AND GLOVES

CATEGORY ROLE SEASONAL

MARKETING MIX Assortment: 15% Price: 30-80€ Promotion: none Merchandising: table Assortment: 15% Price: 8-12€ Promotion: none Merchandising: table

SEASONAL

TRANSACTION BUILDING

EXCITEMENT CREATING

PREFERRED 2%

2% 3% 4%

Coats:

Trousers:

Knitted:

Shoes:

SEASONAL

15%

Shorts:

15%

Scarfs and gloves:

Dresses and skirts:

TACTOGRAM TACTOGRAM DESTINATION: -Jeans (men/women) -Jackets (men/women) -Tops and T-shirts (men/ women) -Shirts & blouses (men/ women) -Sweatshirts (men/women) CONVENIENCE: -Accessories (men/women) -Sunglasses (men/women) -Jewellery (men/women) -Bags (men/women)

Assortment Price Promo Merchandising

PREFERRED: -Coats (men/women) -Trousers (men) -Knitted (men/women) -Shoes (men/women) -Dresses and skirts (women) SEASONAL: -Shorts (men/women) -Scarfs and gloves (men/ women)

Assortment Price Promo Merchandising Assortment Price Promo Merchandising

40% 8-150€. Average price is 79€ Key products of the brand. Exposed in the store windows and best locations Best location, always different sizes on stock, eye-catching 16% 3-60€. Average price is 31,5€ To enhance brand image and style On racks next to the cashier to create more profit 14% 11-160€. Average price is 85,5€ None Mixed in between racks and tables 30% 8-80€. Average price is 44€ None Rack dedicated to seasonal that will be modified depending on the season

ALL CATEGORIES

30%

40%

14% 16% Destination:

Convenience:

Preferred:

Seasonal:

PROMOTION AND COMMUNICATION

The objectives of the communication strategy that will be achieved in a certain time frame are: -Opening event of new store in Barcelona -Increase brand awareness in Barcelona -Communicate with the target audience in Barcelona -Use social media platforms as a main promotional tool -Attract new customers that never heard of Cheap Monday before -Achieve sales and earn more To summarize the communication plan. During the first three months, for every purchase a tote bag with the Cheap Monday logo will be given to the customers. Concerning marketing smell, there will always be the same smell, a strong and powerful but at the same time sweet smell similar to the ‘Yves Saint Laurent Black Opium’. In terms of the promotion of the store in general, flyers will be given around the main commercial areas of the city during the first three months after the opening, as well as, promotional posts in all of their social media platforms. In addition, some paid advertising will be done with local influencers whose target might be interested in Cheap Monday, to reach the local audiences are not aware of the brand. There will also be the opening event that will take place the 15th of June of 2018, which can be considered after exams season in design and more ‘creative’ universities. It will be at 9pm at the new Cheap Monday store located in c/Princesa ,38. Some activities that will be held in the event will be a photocall to increase activities and tagged location in social media, welcome drinks, gifted tote bag, live music (techno or commercial rock style) and a 20% discount during the night. The guest list will be open and welcome to everyone to create hype and preferably people outside waiting to enter. However, a series of different influencers from Barcelona will be invited to increase the promotional aspects. Following the promotion, journalist and press will be also attending and there will be livestreams and updates of the high lights of the event in every own social platform of the brand.

FINANCE PLAN The chosen location for the store is a third level street (c/Princesa, 38), which means that the number of potential customers per day is 3.180. The main reason for choosing this was that the rental price was quite low compared to other properties in the area (6.500€). In the property a high initial investment will be needed including reconstruction costs and visual merchandising. However, the operative expenses will not be very high since there is only 270m2, which means that the staff expenses will not be superior than 172.000,00€ in the first year. In terms of advertising and marketing, it will only take 2% of the expenses, giving it a budget of 30.000,00€. Following the total buying investment of the first year, we will be having a 70% of carry over and a 30% of seasonal. Since the average cost for both categories is quite low, not more than 11,00€, the final buying investment will be approximately half a million of euros. On the other hand, the sales forecast is positive since there is a expectation of selling 61.578 total of units with an average retail price of 45€. After examining all the expenses (initial investment, operating expenses and stock buying), we join the expected income of 1.526.549,41€ with the total of expenses which concludes to a ROI of 25%. Finally, the Return of Investment turns out to be positive which means that the plan proposed for the store opening is financially viable.

CONCLUSION

In summary, the paper has covered every point needed for the opening of a retail space. From the brand research and most appropriate location research to the main steps for the store management plan. This plan included the store layout, followed by the product division by category and the visual merchandising. To wrap up the main points of the opening, a brief communication proposal has been presented. To conclude, there was a financial calculation done which covered the investment and expenses for the first year of opening. The exercise provided a positive return of investment of 25% which makes the opening of the store economically profitable.

BIBLIOGRAPHY RESEARCH Activa (2018). Barcelona Data Sheet 2017. Slideshare.net. Available from https://www.slideshare.net/barcelonactiva/barcelona-data-sheet-2017 [Accessed 16 April 2018]. Barcelona (2018). Cwglobalretailguide.com. Available from http://cwglobalretailguide.com/barcelona/ [Accessed 14 April 2018]. Barcelona Commerce Websites (2018). www.Barcelona.cat. Available from https://ajuntament.barcelona.cat/comerc/en/current-news/shopping-tourism-growing-barcelona [Accessed 11 April 2018]. Departament d’Estadística. Ajuntament de Barcelona. Home (eng) (2018). Bcn.cat. Available from http://www.bcn.cat/estadistica/angles/index.htm [Accessed 11 April 2018]. H&M group | Markets (2018). About.hm.com. Available from http://about.hm.com/en/about-us/markets-and-expansion.html [Accessed 16 April 2018]. Home (2018). Barcelona Commerce. Available from https://ajuntament.barcelona.cat/comerc/en/barna-centre [Accessed 11 April 2018]. Home (2018). Barcelona Commerce. Available from https://ajuntament.barcelona.cat/comerc/en/passeig-de-gracia [Accessed 16 April 2018]. Top 5 Cheap Monday competitors in the fashion Industry (2018). DataFox. Available from https://datafox.com/competitors/cheap-monday [Accessed 16 April 2018]. IMAGES Image 1: Barcelona’s Top 10 : Best Shopping Areas (2018). [image]. Available from http://mom.girlstalkinsmack.com/travel/barcelona-stop-10---best-shopping-areas.aspx [Accessed 14 April 2018]. Image 2: Main shopping streets in Barcelona (2016). [image]. Available from https://www.oirealtor.com/blog/en/present/commercial-streets-shopping-tourism-bcn/ [Accessed 14 April 2018]. Image 3: Market Overview (2017). [image]. Available from http://cwglobalretailguide.com/barcelona/ [Accessed 14 April 2018]. Image 4: Idealista Alquiler de local en calle de la Princesa, 38 (2017). [image]. Available from https://www.idealista.com/inmueble/35677575/ [Accessed 14 April 2018]. Images 5-6: Google (2017). Google Street View [image]. Available from https://www.google.es/maps/place/Carrer+de+la+Princesa,+38,+08003+Barcelona/@41.3860379,2.1813352,3a,75y,186.23h,90.48t/data=!3m6!1e1!3m4!1spCialv9tBNOWg08XZsjR9Q !2e0!7i13312!8i6656!4m5!3m4!1s0x12a4a2fc2c741675:0x345df54d17390364!8m2!3d41.3859711!4d2.181467 [Accessed 14 April 2018]. Image 7: TC Street Monthly Report (2018). [image]. Available from https://www.tc-street.com/clients/informes-mensuales/ [Accessed 14 April 2018].

STORE MANAGEMENT PLAN IMAGES Image 1: TC-Street (2017). [image]. Available from https://www.tc-street.com/clients/informes-mensuales/ [Accessed 18 April 2018]. Image 2: Google (2017). Google Street View [image]. Available from https://www.google.es/maps/place/Carrer+de+la+Princesa,+38,+08003+Barcelona/@41.3860379,2.1813352,3a,75y,186.23h,90.48t/data=!3m6!1e1!3m4!1spCialv9tBNOWg08XZsjR9Q !2e0!7i13312!8i6656!4m5!3m4!1s0x12a4a2fc2c741675:0x345df54d17390364!8m2!3d41.3859711!4d2.181467 [Accessed 14 April 2018]. Image 3: Screen (2018). [image]. Available from https://www.google.es/search?biw=1440&bih=750&tbm=isch&sa=1&ei=sjHXWpC9OYOMUfucibAK&q=store+clothing+interactive+screen&oq=store+clothing+interactive+screen&gs_l=psy-ab.3...165524.167573.0.167630.12 .12.0.0.0.0.144.912.10j1.11.0....0...1c.1.64.psy-ab..2.0.0....0._-_x1neghus#imgrc=4HD-Pmf4aoASNM: [Accessed 18 April 2018]. Image 4: Cheap Monday, Sustainability (2018). [image]. Available from https://www.cheapmonday.com/es/Sustainability [Accessed 18 April 2018]. Image 5-6-7: Cheap Monday Visual Merchandising (2018). [image]. Available from http://retaildesignblog.net/2011/09/13/cheap-monday-store-by-uglycute-copenhagen/ [Accessed 18 April 2018]. Image 8: SCIENCE FICTION GOES BEYOND BOOKS AND SCREENS (2017). [image]. Available from https://www.sheridanandco.com/news/science-fiction-goes-beyond-books-screens/ [Accessed 18 April 2018]. Image 9: ALLSAINTS SPITALFIELDS INDUSTRIAL INTERIOR DESIGN CHICAGO (2018). [image]. Available from http://www.glamshops.ro/shop-review-allsaints-spitalfields-industrial-interior-design-chicago.html [Accessed 18 April 2018]. Image 10: Product Editorial: Andy Thornton 29 SEP (2017). [image]. Available from http://www.retail-focus.co.uk/index.php?option=com_content&view=article&id=3052:product-editorial-andy-thornton&catid=92 [Accessed 18 April 2018].

ANNEX RESEARCH BRAND HISTORY TARGET COMPETITORS MARKETING MIX MAIN COMMERCIAL AREAS IN BARCELONA BRIEF DESCRIPTION OF THE LOCATION AND FORMAT SELECTED TO OPEN THE STORE

Research

BRAND HISTORY Cheap Monday is available in more than 35 countries and has about 2000 resellers all over the world. Their street style products are mainly sold through selected retailers worldwide, considering key cities such as: Copenhagen or Paris, where their franchises can be found, London where their flagship store is, and two other stand-alone brick & mortar stores in Shenyang and Beijing (China). It is necessary to state that Cheap Monday also operates with multi-brand retailers/ concept stores such as Urban Outfitters or smaller ones such as 12 Pulgadas (Barcelona) or Cuervo (Madrid) in Spain and it is present at 18 online multi-brand markets such as ASOS, Nelly.com or Amazon apart from their own official website. Several Pop-Up stores for the brand have also been established during the recent years, in Stockholm, Utrecht, Los Angeles and Hong Kong (About.hm.com, 2017).

TARGET

In between the ages of 18-35 Male and female Education level: Degree students or undergraduates Recently emancipated Mid to High household income LIFESTYLE Interested in music, events and festivals. Updated on current trends, does not want to be ‘mainstream’, therefore buys in more ‘alternative’ places Values good quality and good price Has interest about fashion Likes to try new trends, styles, colours, shapes… See’s shopping as a pleasure and a way to socialize Tends to shop in Vintage Stores, H&M, Weekday... Very active on social

GENERAL PROFILE

Research

TARGET SEGMENTATION ‘The tourist’ The segment of the tourist can be divided in two profiles. Firstly, the one who comes to Barcelona and one of their main interest is shop a lot because they want to obtain different things which might not be available in their country. Secondly, the tourist that does not care about shopping but stills likes to buy some garments as souvenir and they mainly shop in the centralized touristic areas.

‘The actual alternative’ This is the type of person who likes to go out, listen to more alternative music such as rock. Their style is mainly black with a twist of grunge and punk in it. They like to curate their style to reflect their personality and values. Is not afraid to stand out and try new things.

‘The wannabe alternative’ This segment might be similar to the mentioned before, although this kind of profile tries to be more alternative in the way of dressing or the music they listen to but, at the end, they end up being more mainstream. Still buying in mainstream stores and listening to mainstream artists. Those are the ones with the highest social media use, they are very concerned about their appearance

COMPETITORS

‘The I do not care about fashion’ This is the person who actually does not care about fashion and trends but stills tries to buy good quality for cheap prices and, still look cool with some basic black pieces to last the entire season.

Research Cheap Monday does not have any direct competitors who might be aligned with the same characteristics. Although, we can mention a few that have similar characteristics . Religion is a clothing brand that has somewhat a similar grungy style like Cheap Monday. Urban Outfitters is a multi-brand retailer that also has Cheap Monday as one of its brands. Although, it could be a competitor because they carry similar clothing with a alike price point which might interfere when the shopping process and the attention of customers in the store towards other brands.

COMPETITORS IN GENERAL

Cheap Monday belongs to the H&M group, as well as Weekday and Monki. However, those two brands could be considered direct competitors. The style and the price is quite similar, also they are targeting the same segment of the population. The H&M group, is opening more stores for Monki and Weekday but not for Cheap Monday which can conceal the brand awareness of Cheap Monday. Although, Weekday sells a serious of other brands, besides their own in the offline and online channels. Those brands are Levi’s, Timberland, Birkenstock, DR Martens, Vans, Fila, Eastpak, Champion, Teva, Timberland, Rains, Birkenstock, Le Specs, Sigg and finally, Cheap Monday. Concerning Sweden, Cheap Monday has more visibility and other competitors might appear especially when targeting the same group, especially the women’s product categories. For example Gina tricot, Nelly or na-kd. Concerning the U.K, Cheap Monday has placed one of their Flagships store in Carnaby Street in London. Major competitors in that country could be Topshop, River Island, New Look or Booho. Those companies are targeting the same segment as Cheap Monday and have similar style and price range.

Luckily, in Barcelona there is not that much companies similar to Cheap Monday, any of the already mentioned competitors have any physical point of sale in the city. Besides Topshop, which closed doors permanently in 2017. Although, the Inditex group is on top of the charts in terms of sale and number of brick-and-mortar stores in Spain. Brands belonging to that group might be a major competitors when it comes to the store location because they have serveral stores in the main commercial streets such as Portal de l’Àngel, Passeig de Gràcia, Plaça Catalunya and such; For example: Bershka, Pull & Bear and Zara.

COMPETITORS IN BARCELONA

Pull & Bear and Bershka are considered to have similar styles although, the prices are slightly lower. (Bershka’s jeans price 12€-36€) (Pull & Bear’s jeans price 12,99€35,99€) and (Cheap Monday’s jeans 21€-90€) Another big competitor in Barcelona, could be Urban Outfitters. The store carries Cheap Monday’s clothing, but it could mean that customers prefer to visit the multibrand store to obtain a different experience and also check out other similar brands.

MARKETING MIX PLACE Cheap Monday is available in more than 35 countries and has about 2000 resellers all over the world. Their street style products are mainly sold through selected retailers worldwide, considering key cities such as: Copenhagen or Paris, where their franchises can be found, London where their flagship store is, and two other stand-alone brick & mortar stores in Shenyang and Beijing (China). It is necessary to state that Cheap Monday also operates with multi-brand retailers/ concept stores such as Urban Outfitters or smaller ones such as 12 Pulgadas (Barcelona) or Cuervo (Madrid) in Spain and it is present at 18 online multi-brand markets such as ASOS, Nelly.com or Amazon apart from their own official website. Several Pop-Up stores for the brand have also been established during the recent years, in Stockholm, Utrecht, Los Angeles and Hong Kong (About.hm.com, 2017).

Cheap Monday Flagship Stores

London,UK Beijing, China Shenyang, China

Some retailers online

ASOS Weekday Urban Outfitters Zalando Weekday Urban Outfitters Silvetto Galleries Lafayette La Rinascente

Some retailers offline

The Room Vision Center 12 Pulgadas Trait Store The Rent Shop ,248 Adult

Retailers offline located in Barcelona

PROMOTION Facebook

333.710 followers 341.222 likes

Instagram

188K followers 3 to 4 posts a week 2 500 average likes

Pinterest Twitter

561 followers

Snapchat

7,4 followers 3,308 tweets Unknown information

Newsletter

Unknown information

Research

PRICE RANGE BY PRODUCT CATEGORY WOMENT’S CLOTHING CATEGORIES

PRICE RANGE

Jeans

21-90€

Coats & Jackets

27-150€

Sweatshirts

14-60€

Tops

6-40€

Dresses & Skirts

11-100€

Trousers

9-90€

Shirts & Blouses

17-55€

Knitwear

27-150€

Jewellery

3-30€

Sunglasses

8-35€

Shorts

30-80€

Accessories

3-60€

Shoes

18-160€

MEN’S CLOTHING CATEGORIES

PRICE RANGE

Jeans

25-80€

Coats & Jackets

27-120€

Sweatshirts

17-70€

T-Shirts

8-35€

Chinos & Trousers

28-80€

Accessories

5-60€

Shirts

17-60€

Knitwear

14-55€

Jewellery

10-20€

Shorts

40-80€

Shorts

30-80€

Shoes

36-160€

CHEAP MONDAY AND SOME COMPETITORS PRICE COMPARISON Lowest and highest prices for Jeans, which are the iconic items of Cheap Monday

BRANDS

LOWEST PRICE

HIGHEST PRICE

Cheap Monday

21€

90€

Topshop

20€

170€

Religion

82€

106€

Monki

30€

50€

EXPANSION STRATEGEIES SUSTAINABILITY

Materials. Mission to be the most relevant jeanswear brand on the mass market using eco-friendly materials Garment care, using fabrics to reduce water waste Recycling garments in the stores Production process with good working conditions, human rights, fair salaries, animal welfare, care for the environment

MARKETING AND COMMUNICATION

Not using traditional marketing Present on social media All recent campaigns are involved in sustainability and it will be continuing to be like that in the future. They will be promoted on their social media platforms.

POINTS OF SALE

According to the ‘Market & Expansion’ report of the H&M group, a significant number of stores from the group will be opened in 2018 but none of them will be a Cheap Monday store. Although, in 2017 it has been present in 18 number of markets online.

Due to the lack of Cheap Monday’s information online, no further iresearch has been able to be done about the future of the brand, the mission or brand strategy.

GENERAL SWOT

ADVANTAGES

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DISADVANTAGE

Not much physical points of sale in Europe Reasonable prices Difficulty to reach for a physical point of sale if the customer Variety of products is not in a key city Male and female products Not reaching to a big audience Seasonal collections Not a distinctive product range compared to their competiCollaboration with designers (Cheap Monday + Faustors tine Steinmentz) Does not provide brand experience Sustainability shifts Giving importance to the jeans Sustainable Jean Campaign Fast delivery

OPPORTUNITIES

THREATS

Expanding throughout Europe with more physical points of sale More marketing campaigns Give more importance to the sustainability movement

Lack of advertising Strong competitors who offer similar products and prices. Well-known brands are preferred

MAIN COMMERCIAL AREAS OF BARCELONA Barcelona is considered a strategic market with more than 1.6m inhabitants, 16.6% are foreigners. Barcelona’s demographic indicators of 2016, conclude that 65.8% of the population are in between the ages of 15 and 64. (Departament d’Estadística. Ajuntament de Barcelona. Home (eng), 2018). Shopping tourism is growing in Barcelona. This is confirmed by serveral studies and rankings that put the Catalan as the number one shopping destination in Europe. It should be added that tourists are spending more on their shopping too, as the positive development in the trend shows. One out of every three visitors to the Catalan capital describes shopping as their main activity, according to a study entitled Shopping Tourism in Europe: Value retail, prepared by the ESADE business school. This percentage is very similar to that of benchmark shopping cities such as London, Paris and Rome. Shopping is followed by transport (23%), accommodation (21%), food and drinks service (10%), then leisure and culture (8%). The Globe Shopper City, which classes cities according to their attractiveness as a shopping destinations, ranks Barcelona among its top destinations. Barcelona has 22 shopping hubs which include stores, restaurants, bars and leisure centres. The 2013 Shopping Report, which is prepared by the Department of Commerce and Consumer Affairs at Barcelona City Council, points that spending on shopping reached an average of 27.12% in 2013, a figure that represents an increase of 28.72% on the previous year. (Barcelona Commerce Websites, 2018) Another notable aspect is that tourists are also spending more on their shopping. The Some of the main ones are: • Passeig de Gràcia: Where The most expensive and prestigious hotels and stores are located, as well, as some Modernist architecture by Guadí , Puig I Cadafalch and Domènch I Montaner. High-end stores and national and international brands of jewellery, clothing and accessories. So it is not surpising that 27% of purchases by non-EU tourists in Spain are made in this distinguished avenue. (Home, 2018) • Rambla de Catalunya is another central shopping area. It offers more mid-market clothing store, as well as, a very big variety of hotels, bars and restaurants. It connects Diagonal with Plaza Catalunya, same as Passeig de Gràcia. It is a more familiar and local area than Passeig de Gràcia. • La Rambla is the most active place in the centre of the city, it is also considered the major landmark and a very touristic area. A significant amount of restaurants, bars and mass-market stores are in that street. • The Raval neighbourhood is rich in cultures, art and history. There are more than 2000 stores; some of them families’ small traditional businesses, second-hand stores, alternative stores and, the Boqueria (market known for its history and its variety of food). In terms of culture institutions, there is the Gran Teatre del Liceu, Teatre Romea, Virreina Centre de la Imatge, Filmoteca de Catalunya, Barcelona Museum of Contemporary Art (MACBA) and many others. • Barri Gòtic is a neighbourhood similar to Raval because of its commercial activity and the charisma of the orginal modernist architecture and historical buildings. The area boasts over a thousand shops that take up nearly 60,000 square metres and employ 4,000 people. (Home, 2018). • Portal de l’Àngel is a pedestrian street targeted towards mass market. It is located in the Ciutat Vella district next to Plaza Catalunya and is one of the city’s most visited streets. Portal de l’Àngel is Barcelona’s and Spain’s most expensive retail street with rents of 280€ per sqm (as of June 2017). Retailers include El Corte Ingles, most of the Grupo Inditex brands, H&M, Benetton and Cortefiel. There are other adjacent streets such as Cucurulla or Portaferrisa where you will also find a variety of shops, restaurants and hotels.(Barcelona,2018)

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IMAGE 1:(Barcelonaâ&#x20AC;&#x2122;s Top 10 : Best Shopping Areas, 2018)

IMAGE 2: Main shopping streets in Barcelona, 2016)

IMAGE 2:PRECIO DE LOS PISOS EN BARCELONA: GUÍA POR DISTRITOS [2017], 2017)

IMAGE 3:(Market Overview, 2017)

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BRIEF DESCRIPTION OF THE LOCATION AND THE FORMAT SELECTED TO OPEN THE STORE Born Quartier 22,53â&#x201A;¬/m2

MAGE 4: (Idealista Alquiler de local en calle de la Princesa, 38, 2017) https://www.idealista.com/inmueble/35677575/

IMAGE 5-6: (Google, 2017)

The chosen location is in Carrer de la Princesa number 38. The local has 270m2 (24,07€/m2), 6.500€ monthly. It is located in a corner and it holds 8 storefronts. The Cheap Monday future store will be located in the Born area, specifically in Carrer de La Princesa, 38. The Gothic and the Born are the old sector of the city. It connects La Rambla to Via Laietana, and the seafront. It is one of the most recurrent neighbourhoods for shopping, and touristic activities since some significant landmarks of Barcelona are located there; Barcelona Cathedral, Palau de la Generalitat, Casa Pedellàs, Museu Picasso and much more. The actual street of the store is very active and it has a lot a of restaurants and stores, it is also very close to the Picasso Museum. The biggest advantage it has is that it is very well-connected in terms of public transportation. There is the Jaume I metro station right next to it, which is one of the busiest metro stops of Barcelona since it connects the commercial area of the city (Passeig de Gràcia or Urquinaona) to the beach (Barceloneta).

IMAGE 7: (TC Street Monthly Report, 2018)

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The area selected is a third commercial street located in the Barcelona’s strategic market. Therefore, the number of potential visitors per day is 3.18o according to the TC-Street information. As mentioned before the street connects Via Laietana (Jaume I Metro station) to Parc de la Ciutadella. Some of the main retailers and services that can be found in the street are the following: Small jewellery store called ‘Barcelonitis’. Masks and costume store called ‘Arlequí Máscares’. Magic Store called ‘El Rei de la Màgia’. Clothing store for Young people called ‘Miriam Ponsa’. Mexican Restaurant called ‘La Hacienda Barcelona’. Four star Hotel called ‘Princesa’. Noodle Restaurant called ‘UDON Born’ Cupcakes store Boheme Bakery Café Caixa Bank Not in Princesa street but very close and connected to it: Picaso Museum. Art Gallery ‘Barcelona Visions’. ‘Santa Maria del Mar’ Church. Chocolate Museum Near main streets: Carrer de l’Argenteria. Via Laietana. Passeig de Picasso. Passeig del Born. Carrer del Comerç. Distance from main areas of the city: -Plaça Catalunya to C/Princesa, 38: 17 minutes walking distance 10 minutes drive -Passeig de Gracia metro station to C/Princesa, 38: 21 minutes walk 10 minutes drive -Barceloneta Beach to C/Princesa 38: 22 minutes walk 12 minutes drive