Strategic Marketing Plan for Sandro Paris by Nuria Pons

STRATEGIC MARKETING AND MERCHANDISING PLAN

1 Wordcount: 4000

Alejandro Gonzรกlez and Teresa Buhigas.

6FAMK004C Marketing Technique and Strategy 3. CW1

BA (Hons) Fashion Marketing, Level 6. 2018-2019

Nuria Pons Rossello

Challenge & Methodology (5)

Internal Analysis (6-38) BRAND OVERVIEW STRATEGIC BASIS MARKETING MIX

External Analysis (39-65) PEST MARKET ANALYSIS

INTERVIEW INSIGHTS CURRENT COMPETITORS FUTURE COMPETITORS ASPIRATIONAL COMPETITORS FINAL SWOT

Proposal (66-99) STRATEGIC BASIS MARKETING MIX

THE COLLECTION BOOK

6. 7.

Conclusion (100)

Annex (101-105) INTERVIEWS PERSONA CANVAS

Bibliography (106)

THE CHALLENGE The challenge is to enrich the brand with a range of iconic pieces with a sustainable approach to create a clearer and more recognisable image. The main objective is to develop a new sustainable capsule collection

The fast-growing contemporary brand Sandro, belongs to the SMCP Group (Sandro, Maje and Claudie Pierlot). The group offers mid-fashion prices with a luxury-like image and customer experience while emphasising the Parisian aesthetic successfully across the globe. However, the brand lacks in brand heritage, design originality and awareness.

This market strategy attempt to revive the old French Sandro, remFrom an image perspective, the brand’s inisce the past French women and key element is the French look and the highlight the brand´s heritage. On empower of the French women. Nevthe meanwhile, raising environmenertheless, the brand is not portraying tal awareness. a clear pattern in terms of collection staples or iconic brand products, instead the creative process is based on mainstream trends which is damaging their differentiation among their competitors and with mass-market brands.

METHODOLOGY The research will have three main research objectives; analyse the present consumer behaviour, measure the influence of Sandro in social media and to discover which image do consumers have of Sandro. To conduct this research primary sources will be used in the forms of qualitative research through personal interviews with Sandro customers. In order to analyse further the brand to develop the strategy, as well as, internal and external analysis secondary sources will be used such as SMCP Group´s report, the brand´s official social media platforms, including own e-commerce sites, and other articles found on the web other articles found on the web.

INTERNAL ANALYSIS

INTERNAL ANALYSIS-

BRAND OVERVIEW

-STRATEGIC MARKETING PLAN

Sandro is a French contemporary brand established in Paris in 1984 by Evelyne Chetrite and Judith Milgrom, offering menswear and womenswear. It belongs to the group SMCP. Nevertheless, LVMH bough a controlling stake of the brand in 2010. The brand operates in 39 countries (including partners) with 646 points of sale and a profit of €409M from sales.

RESULTS SALES AND PROFIT The group does not offer individual report of each brand, however it is claimed that Sandro accounted +6.1% of sales growth at constant currency. A determinant factor were the temperature increase in Europe as outwear presents a key element of the brand´s Fall/Winter collections. This growth was also followed by the establishment of 37 physical stores in strategic locations.

According to the Annual Report of 2018 of the SMCP Group, a significant growth has been noticed compared to the recent years followed by the opening of 230 international points of sale. Key figures account to €1bn full year sales with a EBITDA margin (2017) of 16.8%. Defining Sandro with a 50% of the group sales followed by Maje with a 38% and Claudie Pierlot with 12%.

Figure 1: SMCP Group 2018 Full Year Sales Report.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

HISTORY MILESTONES Sandro has been co-branding with different companies offering menswear, womenswear and kids wears: Sandro x Reebok Classic 2015 Spring/Summer Instapump Fury. Realising two set of shoes for men and women with similar design. Both brands mixed the sophistication and the wear ability of each inspiring in the 70´s and 90’´s.

Sandro x The Muppet Show: Fall-Winter 2018 collection Sandro collaborated with the Muppet Show realising a range of products for men, women and kids. - Sandro x Helly Hansen A/W 2018. Capsule collection was realised featuring Helly Hansen silhouttes with puffer jackets, waterproof parkas and hoodies playing with branding elements and logos combining with a sense of Parisian style of the 90´s.

- Sandro x Reebok Classic Club C Pack. Classic model of Reebok was released in 2015 adding, a more minimalistic feel made with premium leather.

SOHO POP UP: To promote the Fall 2018 collection Sandro established a Pop Up Shop in Soho, New York. Collaborating with Artistic Director Illan Chetrite to find vintage and thrifted pieces to create a unique store ambience. Men’s and women’s collection were displayed, along with the most recent collaborations (Sandro x Helly Hansen and Sandro x The Muppet Show). A launch event was scheduled in the store with live performances. Moreover, the store also offered services such as tailoring, sameday delivery, complimentary gift-wrapping and 1:1 appointment booking Figure 2: Sandro X The Muppet Show T-shirt.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

Strategic Basis

COMPETITIVE STRATEGY

Sandro’s defined target is women among the ages of 20 to 35 with a mid-to-high income looking for a luxury-feel brand with middle-range prices. They are young professional or receiving financial help. The younger targets might involve their mothers in their shopping process, therefore an older potential customer comes into place. The general profile works in business or creative fields such as fashion and they are concerned about style and trends However, they look for functionality and effortless looks but still want an edgy and feminine.

TARGET MARKET

‘Our mission: spread Parisian chic across the world ‘Our values: -Act as entrepreneurs. Support our brand’s ambition and fully commit to our achievements, as if it were your own company. -Be passionate: Be our brand ambassador and share a desire to make our brands grow -Nurture creative thinking and innovation. Bring new ideas to be one step ahead. -Develop a global mind set. Consider cultural and geographic diversity as opportunities to be a pioneer -Think ‘elegance’ as an attitude. Show respect and be ‘classy’ with others. According to the SMCP group website, the three brands share the same values and mission proposition. They want to unify the group’s values formed by the DNA of the founders to became the leader group in global apparel and accessories market.

INT

EFFORTLESS ELEGANCE WITH A TWIST

PARISIAN CHIC

SPREAD FRENCH HERITAGE

ERNAL VALUES PRODUCT PARISIAN HERITAGE Sandro is working with unifying their internal values and origin of the brand on their designs in which the core focus is the French look. The idea of emphasizing the French heritage through femininity, elegance and attention to detail is used as their main competitive strategy.

PRICE AFFORDABLE LUXURY The brand offers unique and strategic products with premium experiences in more than 1,400 points of sales. The brand is offering an accessible luxury approach with mid-range prices accounting the higher price for coats at approximately 800 euros and the lower price for socks at 30 euros.

COMMUNICATION FRENCH-CHIC LIFESTYLE Sandro tries to emphasise their brand values such as French and chic style in their communication a creating clean and elegant look with twist. It can be clearly seen in their campaigns and social platforms. They affordable luxury approach is clearly felt in the message the brand is spreading. On the other hand, the SMCP Group is committed to build an authentic sustainable development strategy to create a diverse organisation while empowering the growth of the brand worldwide.

COMPETITIVE VALUE

POSITIONING PROPOSAL

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

Sandro is a product oriented brand focused on delivering a luxury product on an affordable price for the ‘high-street’ and the ‘high-end consumer’. The company perceived a gap in the market among luxury brands and mass market and implemented a their strategy. The SMCP Group can be considered to belong to the accessible luxury market. It is one of the 20 fastest-growing luxury companies, due to the creative power, the quick adaptation to the industry and consumer trends and strong expansion plan.

M A R K E T I N G

M I X

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PRODUCT FRENCH CHIC FEMININITY DELICATE

SEXINESS

BRAND CHARACTERISTICS

ELEGANCE

EFFORTLESS

CASUAL

MINIMAL

SOPHISTICATED

EDGY

ATTITUDE

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

ST ICA TE

STYLE CODES

S ES

GY SO P

L RT FO

FEMINITY CHIC PARISIAN

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

COLLECTION STRUCTURE

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

My Addict Bag

My Pepita Bag

Banana Bag

My Lou Bag

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

CONCLUSION OF THE COLLECTION Ready-to-wear accounts for the majority of Sandroâ&#x20AC;&#x2122;s products in which permanent items are being released each collection with different styles, colours and materials but always same silhouette. Considering that the charts only account for the summer collection, it is difficult to obtain a understanding of the iconic products. However, after analysing different collections and interviews it can be concluded that the icons of the brands are; dresses, blazers and jackets, shirts and coats. Nevertheless, the brand is trying to focus their communication on their shoe collection, especially with trainers that have been added in the recent collections with the same model but different designs.

ICONS OF THE BRAND Dresses Tops & Shirts Jackets & Blazers Coats Trainers

ICONS OF THE BRAND

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

DRESSES

by material/style

by silhouette mini

midi

knitted/tweed

maxi

tailored/shirt

TOPS & SHIRTS

by silhouette short sleeve

lace

long sleeve

by material/style sleeveless

prints

lace

silk

plain

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN BLAZERS & JACKETS by style

biker jackets

short jackets

denim jacket

blazers

TRAINERS by style flame trainers

velcro trainers

sock flames

astro trainers

COATS by style rain coats

short coats

long coats

MOODBOARD

SANDROâ&#x20AC;&#x2122;S PRODUCT

INTERNAL ANALYSIS-

PRICE

-STRATEGIC MARKETING PLAN

READY-TO-WEAR €800,00 €700,00 €600,00 €500,00 €400,00 €300,00 €200,00 €100,00 €-

Lowest Price

Highest Price

SHOES €450,00 €400,00 €350,00 €300,00 €250,00 €200,00 €150,00 €100,00 €50,00 €-

Boots

Trainers

Sandals Lowest Price

Highest Price

Pumps

Mocasins & Mules

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

BAGS €350,00 €300,00 €250,00 €200,00 €150,00 €100,00 €50,00 €-

My Lou Bag

My Pepita Bag

My Addict Bag

Lowest Price

Banana Bag

Small Leather Goods

Highest Price

ACCESSORIES €250,00

€200,00

€150,00

€100,00

€50,00

€-

Belts

Scarves

Socks

Lowest Price

Highest Price

Sunglasses

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PLACEMENT P.O.S

Thailand 2%

Sweden 1%

Ukraine 1% Turkey 4%

Spain 6% Germany 3%

Switzerland 4%

Singapore 1%

Saudi Arabia 1%

Australia 4%

Austria 1% Bahrain 0%

Russia 5%

Canada 4%

Belgium 2% South Korea 9%

Ireland 2%

China 13%

United Kingdom 6%

Portugal 1% Holland 1%

EA 3% Norway 1%

Mexico 2% United Arab States 2%

Morocco 0% Lebanon 2% Luxembourg 0% Kuwait 0%

Letonia 0%

Katar 0%

Kazajstรกn 1%

Italy 4%

Indonesia 0%

United States 13%

Hong Kong 2%

P.O.S

Sandro has points of sale in more than 30 countries worldwide. In the chart displayed above it is shown the percentage of coverage they have in each country. However, in the annex a more detailed chart comparing the point of sale as an own store, department store and main location will be included. Nevertheless, in the country of origin of the brand it is important to specify the percentage of points of sale by itself comparing the rest of France with Paris to show the influence of the brand in the capital.

Paris

Rest of France

28O W N

STO R E

D E PA R ME N T

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN P.O.S

The SMCP Group claims the importance of physical presence as a party of their strategy and invest in approximately 100 stores yearly. Sandro is present in 39 countries (including partners) and account for 646 points of sale. Sandro offers an omnichannel strategy, with this approach the brand engages with the customers cross-channel and across digital devices directly.

Exceptionally, online outlet sales might occur independently from physical stores. In that sense, orders will take longer and will not be available to collect or return in physical points of sale. In other others, the customer will have a limit of 30 days for return after 4 or 10 days after the order has been shipped.

In the e-commerce store, customers are able to create a user account in order to shop and track the package later on. Nevertheless, after check-on orders are not allowed to be cancelled.Sandro offers free standard shopping worldwide, however the express delivery price may vary, in Spain it costs 6 euros.

The sales report of 2018 specified that the majority of sales, in particular 85% are done in brick and mortar stores, while only 15% are done via e-commerce. The brand holds flagships stores in key cities. Since, recently the brand was being distributed for wholesalers, however they stopped due to a better control of the brand image.

The stores are not using technology to enhance the shopping experience such as magic mirrors or devices for the customers to check the collection. In terms of sizes, only one item of each model is displayed on the racks, usually when you enter the store the sales assistant immediately ask the customer if they need help or when the customer seems interested in a garment the staff offers to check the availability of the sizes and encourages the customer to try it on. If one size is not available, the sales assistant usually offers to have the size delivered to the actual store. The student will study two stores located in Barcelona only 400 metres away.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

CONSELL DE CENT, 3 Men and womenâ&#x20AC;&#x2122;s collections are separated by floors, the space can be considered a duplex with high ceilings. The store has two windows with the main entrance which gives natural lighting that combines with the colour palette of the store design (white, grey, wood marble). The focus point is right in the middle with small stands with accessories and three mannequins. On each side there are racks with the collections organised by colours scheme mixed with basic and neutral pieces to emphasize cross-selling patterns. For men, the majority of merchandising is displayed in racks while only the accessories are placed in tables or shelves. Finally, the cashier is located on the first floor which displays impulsive purchase products such as wallets or card-holders.

INTERNAL ANALYSIS-

349

-STRATEGIC MARKETING PLAN

PASSEIG DE GRÀCIA, 67 The flagship store located in Passeig de Gracia is approximately 7 metres wide and 38 metres in length. Both men and female collection are located in the same floor, men on the left and women on the right. The focus point is at the end where the accessories are displayed in shelves near the changing rooms. As well as the other store, clothes are displayed on racks always with one model of each garment; for men it is always size medium and for women size small. Products are colour coordinated and combined with basic pieces to increase cross-selling purchases. In the windows, there are two mannequins; one of them is dressed with garments from the women’s collection, combining jeans and a white t-shirt with two icons of the brand which are a short jacket and white trainers all from Spring 2019 collection. The jacket and the shoes are on the higher price range while the t-shirt and the jeans are on the lower side. On the other hand, the other mannequin displays garments of the men’s collection mixing a long black coat, which is one of the most expensive garments of the men’s collection, followed by a sweatshirt, trousers and shoes.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PROMOTION BRAND ELEMENTS

UNIQUE SELLING PROPOSITION

LOGO

The logo is considered a ‘wordmark’ because it is referred to companies name written in text, usually used for a minimalistic and distinctive design.

The brand looks for simplicity, clean lines and sophisticated which is clearly reflected in their logo. TONE OF VOICE Women empowerment Feminine Youthful Clean Exclusive Elegant Fun Sandro’s essence is Parisian style and heritage. The brand dresses powerful women around the world who share one common ambition; be Parisian. Paris as a city has always been glorified because of its culture, art and architecture, as well as the French women such as ‘Femme Fatale’. Sandro is selling this aspiration dream; being French and being chic effortlessly.

This is also related with the need of consumers to earn prestige by buying in classic luxury but they cannot afford it. Sandro offers the image of a luxury, French and elegant brand but guarantying the best quality with a low price.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

VISUAL CODES COLOUR PALETTE In the latest campaigns they mixed black and white pictures with colour pictures with dark tones. The pictures are simple and never stand out.

YOUTHFUL In the campaigns young, beautiful and innocent looking models are chosen to show the bloom of youth.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN STORYTELLING

In their campaigns, e-commerce and social media picture there are elements that reminds the customer of Paris. However, in some pictures it lacks of storytelling in general. When the customer sees a picture it is not instantly recognisable as Sandro.

SIMPLE YET SOPHISTICATED One of the brandâ&#x20AC;&#x2122;s pillars is simplicity mixed with elegance which is clearly seen in their communication and store. Clean and white lines as the major elements.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

COMMUNICATION MIX

PAID MEDIA - As a communication tool and strategy to increase brand awareness, Sandro uses ATL tactics to obtain more visibility in MAGAZINES advertising of the brand in online and offline magazines. - Articles have been published promoting the brandâ&#x20AC;&#x2122;s collection and approach to affordable luxury. - Sandro uses social media as a marketing tool, however the brand does not do any sponsorships directly to influencers or celebSPONSORED rities. CONTENT - During Christmas 2018, Sandro used did advertising with a series of influencers to boost sales during the holiday season using the hashtags #SandroParis / #SandroHolidays (Some examples are: @camillejansen, @itziaraguilera, @gabriella_brooks, @frejawewer and @irimatic. )

EARNED MEDIA

EVENTS

WORD-OFMOUTH

- To launch the collaboration with Helly Hansen a Sandro Pop Up store was opened in Soho, New York. In the launch event, Sandro offered live performances, as well, as the Muppet Show collaboration available for sale. - Sandro works with a series of influencers that are not necessarily mainstream but portray some traits of the visual identity of the brand in their feed and style. These influencers are send products to feature in their posts and use the hashtags or tag the brand - Word of mouth is an essential part of the communication strategy of the brand; the most used methods are hashtags to share posts, opinion and inspiration on social media. - Customers are encouraged to post pictures wearing Sandro pieces using the hashtags or tagging the brand. Sandro official accounts re-posts those picture to generate more traffic on social media. - In the comments section of their social media platforms (Facebook, Instagram and Twitter), users share personal opinion about products.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

SHARED MEDIA

LIVE CHAT

REVIEWS

- In the official Sandro website, a live chat appears on the right of the screen to assist the shopper with any question or issue. - However, the platform also offers customer service in which there are a series of frequent questions clearly explained, as well as a contact number for customer service working from Monday to Friday from 9h to 19h.

- The brand website does not feature any review from other customer, nevertheless the products details and composition are descripted carefully.

OWNED MEDIA

WEBSITE

PHYSICAL STORE

- The main objective of the platform is to generate sales. In the last year, online sales were worth nearly 15% of their overall sales. - The platform offers a men and women’s section in each it is divided by ready-to-wear, bags & accessories, new in and about us. - The look and feel of the website represents the visual identity of the brand, using a minimalistic and elegant font with clean patterns and lines. - In the website, customers can see the new collections, the campaign and a campaign video to enhance the brand image. - Furthermore, the user can subscribe to the newsletter and choose whether to receive updates about the men or women line. - The brand has stores in more than 30 countries in the world, all of them in strategic locations in the city centre or in key malls. - According to the information obtained with the qualitative research, Sandro’s customers perceive the store environment and the shopping experience similar as luxury brands. In that sense, Sandro´s main objective is to offer a luxury approach with affordable prices which is clearly seen in their stores and with customer service. - In the physical store, only a few posters of the latest campaign are displayed, which means that there is not storytelling about the brand values and history.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

820k followers/ average of 8k likes per picture/ average of 50 comments per picture

INSTAGRAM

- The content posted on Instagram is very broad; re-post of customers featuring their products, re-post of sponsored content by influencers, promotion of new collection and products, posts of movies and quotes and new opening of stores. - The aesthetic is coherent with the brand visual identity using the same colour palette. Nevertheless, each post is in a square box format leaving a thick white line in the feed, which does not go with the latest digital trends of Instagram feeds and aesthetics. - The page gives the option to the user to purchase directly the product from the platform. - The engagement changes drastically in each post. Some pictures obtain more than 15,000 likes while other do not reach 3,000, there is not a clear pattern to why it is succeeding. In the comments engagement the same issue applies, some posts receive more than 200 comments while other do not reach to 10 comments 430,174 likes

FACEBOOK

- The brandâ&#x20AC;&#x2122;s Facebook place offers a shopping section in which the user can filter their preferences and purchase directly from the app. - The brand announces promotions, new collections, events new openings. - The content is the same as in Instagram, as well as, the reposts from influencers or other users. - In the video section, the brand shares video campaigns. - A message chat with customer service is available for the user to obtain assistance. 10.634 followers

The brand divides their content in visual boards. Each board belongs to different categories. These are the following: - SANDRO PARIS Friends: displaying pictures of celebrities wearing Sandro. - Talking about SANDRO PARIS: in this board there are links to articles where Sandro was featured in. -Sandro Paris Spring/Summer 2017 -Sandro Campaigns: a mix of different campaigns from the recent years. -Sandro Paris around the world: snaps of different store locations and interiors. -Sandro Paris Women Look books: the most recent look book featured is from 2015 -Sandro Paris Collaboration: the most recent collaboration displayed in the board is from Sandro X Reebok 2015. -Sandro Paris Men Look Book: only featuring the 2015 look book. In conclusion, the official Pinterest of the brand is not updated to the latest collections and campaigns.

INTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

14,600 followers

TWITTER

YOUTUBE

- The content shared on the official account is the same as in Facebook. However, the engagement is very low with not more than 10 likes in each post.

3,096 subscribers - The Youtube channel features videos from ad campaigns and short video presentation of collaborations since Spring/Summer 2015 until the past campaign Spring/Summer 2019.

FACEBOOK

TWITTER

FACEBOOK SHOPPING SPACE

YOUTUBE

NEWSLETTER

The customer can subscribe to the newsletter in the website. - The brand sends information about new collection, new campaigns and outlet sales. - The frequency of the newsletter varies, however it is usually every two weeks.

EXTERNAL

ANALYSIS 39

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PEST

analysis

SOCIOCULTURAL

TECHNOLOGICAL

- The fashion industry is highly affected by the impact of socio-cultural trends. For example, the aging of the population that might result in the in brands only focusing to the younger generations. - Due to the rise of social media, trends are not established by consumer and it has shifted the demand. In the past products were produced and designated as ‘seasonal’, now they are ‘pulled’ into the market based on the actual demand. Majors players like Adidas are moving towards on-demand operations. However, this radical change in the supply chain means high costs.

- In order to enhance customer experience the growth in software innovation and automation has been noticeable increasing. - The data analysis and automation are key players in the market resulting in brands improving their value chain and responding quicker to consumer demand. - Mass-market brands are considering automation in their manufacturing process to shorter production cycles and costs.

- Consumer are demanding a longer lifespan for products incentivising the resale market, rental and the end of ownership. This trend is caused by the necessity of newness from the younger generations. According to the Business of Fashion, a person buys 60% more than clothing than they did 15 years ago. Other research in Britain have discovered that one in three females consider ‘old’ a garment that they have worn only once. This trend is embracing sustainability due to the fact that many companies are now offering in-store repairs and the possibility to donate old clothes for recycling in exchange of discounts or coupons. - The increase of sustainability awareness it comes together with technology innovation for materials and the motivation to build a circular economy based on restoration and regeneration. - Another macro trends in the fashion industry is personalisation. A Linkdex survey showed than more 70% of US consumers expect some kind. pf personalisation (BoF, 2017). Another study by Salesforce.com analyses that consumers are willing to give personal data for a more customised experiences. Consumer wants to feel different from the rest and use fashion for sef-expression as a way to express their values to the outside world.

- Emerging technologies will continue to appear in the creative industry. - Artificial Intelligence is changing the whole cycle of the value chain to enhance better with audiences and 4G as a new communication tool is helping companies to reduce costs and boost productivity. - VR is shaping the way brands engage with customers offering an immersion with the brand. The Internet of Things is helping companies to track consumer behaviour and obtain insights on weak areas that should be improved. - The customer experience in retail is improving rapidly. AR/VR, magic mirrors have been around for a few years, however new improvements in customer journey need to be implemented. ‘Some brands are already doing a great job (e.g. Steve Madde, Neiman Marcus, Rebecca Minkoff), while are connecting online and offline thru technology. But Fashtech is just an enabler (AI for product curation, AV for product presentation, Omnichannel loyalty programs…), and telling an emotional story aligned to customer expectations (sustainability, transparency, visibility, seamless experience, community engagement) is the real goal.’ (Alfonso Segura, 2018)

EXTERNAL ANALYSIS-

MARKET

-STRATEGIC MARKETING PLAN

analysis SUSTAINABLE MARKET

Millennials and Gen Z are more social and environmentally concern which is clearly affecting shopping habits and carefully choosing which brands are more convenient for them. Generation Z have strong beliefs and defend social issues through social media creating campaigns such as #metoo, #timesup and #blacklivesmatter. Some brands are receiving boycotts caused by controversial issues. Millennials are also involved in this activism movements. According to the Business of Fashion Report of 2019, this two groups represent approximately $350billion of spending power in the US alone. By 2020, Generation Z will represent for 40% of global consumers. Brands are switching their operations and considering their environmental impact on the society and the planet. Customers would be more loyal to companies if those aligned with their beliefs and showed commitment. However, brands have the fear of being perceived as hypocritical if they do not implement this strategies coherently. Consumers have trust issues due to the amount of companies being expose for their violent practices across their value chain creating a scandal and scepticism. Consequently, consumers are being more demanding day by day, fashion brands need to have full transparency strategies, especially in their supply chain. Customers are concerned about fair labour, materials and waste. According to the Business of Fashion, 66% of consumers are willing to pay more for sustainable goods, while 42% of millennials states the need to know about production and materials.

SUSTAINABLE STRATEGIES

Money-off strategies to collect unwanted and waste apparel encourages shoppers to recycle.

In sore repairing and upcycling to incentivise customers to increase the lifetime of their clothes.

Zero Waste Design. PartsParts is a Korean company specialised in reducing their waste to zero during their manufacturing process combining technologies. The designer usually uses neoprene to create clean-cuts with futuristic and minimalistic silhouettes- through high-pressure bonding.

Brands are implementing social works into their strategies to incentives recycling and sustainable purchases to raise responsibility. Some of this strategies are ocean trash removal or tree planting.

INTERVIEW INSIGHTS - Since all the people interviewed live in Spain they discovered the brand through seeing the physical points of sale (own stores and in department stores). - Some said that brand never caught their attention until they released the flame sneakers. BRAND IMAGE Others said that they discovered the brand through word-ofAND PERCEPTION - mouth, - This respondent claimed to have a conservative style and Sandro became a middle point with elegance and a more daring touch. - The brand was described as elegant, trendy, youthful, minimalistic, French, contemporary and original.

PRODUCT

PRICE

PLACEMENT

PROMOTION

- The majority of respondents claimed to only buy a few garments every season, in specific more staples pieces as coats and dresses. - The most iconic items are considered to be the flame sneakers, blazers and leather jackets. - The product was often described as French with a touch of Scandinavian minimalism

- The majority claimed the price to be coherent with the quality of the products. - Sandro was positioned as a middle price brand. - The store environment was considered to be very peaceful and easy. - The merchandising is appealing because of the colour coordination. - The majority claimed to receive a good customer service. - The majority said to purchase in the physical store but check the collection online. - People do not follow the brand on social media, however they receive updates through the newsletter. - Others said that the content shared on social media was portraying their main brand value: French Heritage - Lack of storytelling and boring content on social media platforms.

COMPETITORS ANALYSIS

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

URRENT COMPETITORS

PLACEMENT

ORIGIN & TARGET

The brand is pushing worldwide growth with their distribution strategy. In terms of placement, the company distributes to own stores, multibrand retailers, deparment stores and offers worldwide shipping

Zadig & Voltaire was established in Paris in 1998 with the intention to became a luxury retail with affordable prices. Nevertheless, their target segment is young; young professionals among the ages from 24 to 35 with a mid-to-high household

COMPETITIVE STRATEGY Their competitive strategy in the product is their French style mixed with rock and roll influences. In addition, they have been doing fashion shows in for their most recent collections.

ZADIG & VOLTAIRE

PROMOTION Zadig & Voltaire uses traditional advertising in TV and magazines, as well as, sponsored content on social media. The brand mainly uses own media for promotion, specifically Instagram where they have a significant amount of followers (780k).

PRODUCT

PRICE The price range varies from 70€ for t-shirt to 500€ for a coat.

They offer men, women’s and kids clothing, including shoes and accessories.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PLACEMENT

ORIGIN & TARGET

They distribute in more than 400 stores internationally, including multi brand retailer and stand-alone. In addition, they have online distribution.

Ba&sh was founded in 2003 in Paris. Their target market is slighter older than to direct competitors; it varies from women among the ages of 25 to 45.

COMPETITIVE STRATEGY The company started with the aim to be the fastest growing affordable premium fashion brand that designs and manufactures. Their strategy was based in introducing a middle price brand to fill the gap in the market.

BA & SH PRODUCT

PROMOTION The brands focuses on traditional media (advertising in magazines) to reach older targets.

PRICE To position themselves as a mid-market brand, the pricing strategy went accordingly; the lowest price is 50€ for a basic top and the highest is 900€ for a fur coat.

They offer a women’s line with feminine clothing with a mix of effortless, laid-back and chic influences to capture the French girl timeless look.

PLACEMENT

ORIGIN & TARGET

The company distributes in more than 538 points of sale in 39 countries across the world, as well as, online distribution.

The SMCP Group founded Maje in 1998 in Paris. Their target segment is considered to belong to a mid-to-high household income in between the ages of 25 and 35.

PROMOTION The brand focuses on their owned media strategies to increase brand awareness and increase their influences on social media.

COMPETITIVE STRATEGY The brand was founded with the objective to produce affordable luxury while spreading the French heritage globally.

MAJE PRODUCT

PRICE Their pricing strategy coincides with Sandro since they are from the same group and share the same values and visions. The prices go from 60€ as the lowest for a top and the highest approximately 700€ for a leather jacket.

They only offer women’s clothing including ready-to-wear, accessories and shoes emphasising the French look and Parisian chic.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PLACEMENT

ORIGIN & TARGET

The company offers distribution in more than 300 points of sale across the world in the form of own retail store, standalones and concessionaires.

The Kooples is a French fashion brand founded in 2008. Their target customer belongs to the ages among 25 and 35 with a middle-to-high household income.

COMPETITIVE STRATEGY The brand was established with the motivation to position themselves as a high-end French fashion brand while offering accessible prices.

THE KOOPLES

PROMOTION The brand focuses on working with famous musicians and models such as Zayn Malik and Hailey Baldwin to raise the exclusivity feel of the brand.

PRODUCT

PRICE The company offers a mid-market price point with the lowest price at 68€ for a t-shirt and the highest at 495€ for a jacket with embroidery.

They company offers men’s and women’s apparel, as well as, accessories. They mix English and French styles combined with a vintage look and rock and roll.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PLACEMENT

ORIGIN & TARGET

The brand offers online distribution using ‘Reserve & Collect’ available in store 48 later to try on, pay and take. Moreover, they also use ‘Buy & Collect’. They own points of sale in strategic locations, for example in Barcelona they have more than 5 own stores. However, they also distribute to multi brand retailers and standalone in department stores.

IKKS was funded in France in 1987 as retail apparel company. Their women target segment is slightly older than its competitors and it ranges the ages of 30 to 55.

COMPETITIVE STRATEGY The brand is known across Europe for their cross-section of adult clothing, using lux fabrics, simple cuts and faux leather while maintaining a youthful but still formal look.

IKKS PRODUCT

PROMOTION The brand focuses on traditional media to reach to older targets. For the S/S 2019 campaigns they introduce Laetitia Casta as their brand ambassador.

PRICE The most expensive garments in their apparel collection are jackets with an average of 300€ and the lowest are basic t-shirts at approximately 60€.

At the beginning, the brand specialised on children’s wear but soon they realised women’s and men’s collections.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PLACEMENT

ORIGIN & TARGET

The distribution is less broad as their competitors since they only have a limited number of stores, however they distribute to multi-brand retailers such as Net-aporter and Urban Outfitters.

Iro is a French brand founded in 2005. Their target customer is slighter older and has a more curated and personal style compared to their competitor’s, varying from customers in between the ages of 25 to 35.

PROMOTION The brands wants to maintain a mysterious and discrete image, therefore they work on the visual identity through their campaigns mainly displayed in traditional media such as magazines. Nevertheless, they also do sponsored content with influencers.

COMPETITIVE STRATEGY The brand claims to value quality and fair pricing offering clothing influenced by a chic style mixed with a vintage feel.

IRO PRODUCT

PRICE The most expensive items are jackets with a price around 1,500€ and the cheapest are t-shirts or socks at 55€.

Their collection line for men and women offers ready-towear, shoes and accessories.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

POSITIONING MAP

Zadig & Voltaire

BA&SH

EXCLUSIVITY

MAJE

The Kooples P.O.S 9 8 7 6 5 4 3 2 1 0

AFFORDABILITY

IRO

IKKS

SANDRO

BRAND AWARENESS

TRENDINESS

SUSTAINABILITY

CATEGORY VARIETY

The variables chosen are: Number of points of sale to compare which brands receive more coverage globally increase the brand awareness. Followed by the brand awareness, in which the student tracked social media followers to conclude which ones where the most recognisable. In terms of trendiness, the student investigated the most recent collections to identify if the brands followed any trends for S/S 2019 or if they continued with their classic styles, cuts and patterns. For category variety, the brands with higher punctuation are the ones that offer more categories such as swimwear, jewellery or sportswear. In terms of affordability, all of the current brands have similar price points therefore the comparison was made with t-shirts and jackets. Finally, exclusivity which was based on their distribution and pricing strategy and the feel of the points of sale.

COMPETITORS ANALYSIS

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

UTURE COMPETITORS

BRAND OVERVIEW

Reformation is an American brand launched in 2009 by Yael Aflalo with the main goal of creating sustainable fast fashion with a main focus on design and value. Each design is made using repurposed vintage clothing, salvaged headstock fabric or new sustainable materials. Reformation had its origins when founder and CEO, Yael Aflalo visited China and was shocked by the huge amount of damage the fashion industry had on the environment and employees. It was then when she saw it necessary to create a sustainable fashion brand that equally appeals to the fashion market consumer.

TARGET MARKET Reformationâ&#x20AC;&#x2122;s target market are women amont the ages of 25 to 35. They appreciate elegant and fun and stylish pieces. They live in cities and like flowy summer clothing. Reformation has a niche target, which means they are not looking for a mainstream audience but more of a reduced group with a special interest. In this case, that interest is sustainable fashion. The brand aims women who have middle-to-high household incomes , that care about the environment but would not want to sacrifice their style, as many of the eco-friendly brands offer very basic garments that do not fulfill the customerâ&#x20AC;&#x2122;s needs. Their clothes are stylish and fashion-forward while respecting the environment, and this attracts the type of woman that is willing to spend more money because of her involvement with sustainability.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN MARKETING MIX

PLACEMENT

PRICE

PROMOTION

Reformation offers e-commerce with shipping worldwide and only distributes to physical points of sales in the United States. They have two stores in San Francisco, four in Los Angeles, one in Boston, one in Dallas, four in New York and one in George Town. Reformation has a vertically integrated direct-to-consumer strategy. Brick-and-mortar stores are crucial in the growth of the company, therefore the brand is implementing technological innovation to enhance the shopping experience such as touchscreen monitors. Reformation has a mid-market pricing strategy. Price range by product category: Bottoms: (69$ - 178$) Dresses: (78$ - 428) Intimates: (12$ - 98$) Jumpsuits: (98$ - 278$) Jeans: (78$ - 178$) Outwear: (119$ - 498$) Sweaters/Sweatshirts: (58$ - 248$) Swimwear: (58$ - 148$) Tops: (28$ - 168$) Wedding/Parties: (218$ - 528$) Accessories: (29$ - 530$) Beauty: (12$ - 40$) Tees: (28$) Newsletter: Users obtain information about special offers, events and new collections. However the brands does it very sporadically to not saturate the customer with a significant amount of emails. Instagram: 1,1M followers In Instagram the brand posts about garments, influencers promotions and sustainable quotes and facts. The brand offers direct purchase from the app. To increase brand awareness, the brand does collaboration with celebrities and influencers using the hashtags ‘#being naked is the #1 more sustainable option, we are the #2’, ‘#RefBabe’, ‘#RefBride’. Facebook: 276,305 followers In Facebook the brand posts every two weeks and promotes new opening, promotions and new collections. In addition, in the message section the brand offers customers service. Pinterest: 107k followers In Pinterest the brand does visual boards to inspire the users with their collections. Youtube: 613 subscribers In the Youtube channel the brand wants to portray a transparent approach posting videos of the workers, the process of the creation of collection and short documentaries. The brand has also collaborated with other brands and celebrities in other countries to increase brand awareness outside the U.S.

EXTERNAL ANALYSIS-

PRODUCT

-STRATEGIC MARKETING PLAN

The company produces clothing and accessories (shoes, bags and jewellery) for women and kids. In addition, they also offer a bridal line, as well as, party dresses for bridesmaids. According to their size chart, every garment is accurately produce to fit perfectly to every body type. The families of products are divided in: Clothing -Bodysuits -Bottoms -Dresses -Intimates -Jumpsuits -Outwear -Sweaters -Swim -Tops -Wedding/Parties -Ref Jeans -Dresses -Jeans -Sweaters/Sweatshirts -Tees -Tops -Accessories Wedding -Bridal -Bridal Salon -Brides -Bridesmaids -Guests

SUSTAINABLE APPROACH

Reformation uses sustainable materials, rescued deadstock fabrics and repurposed vintage clothing. Their most used favrics are: TENCEL ™lyocell, viscose TENCEL ™ modal, linen, organic cotton, RECOVER®, Refibra, deadstock and vintage. Their textile waste is donated or recycled. In addition, the brand allows the customers to donate their old clothes to the brand. In their shopping platform, besides the description of each product there is a section informing the user on how sustainable is the garment compared and how the production much it affected the environment. To conclude, to minimise their waste, water and energy footprints the brand invested in green building infrastructure, as well as, sourcing electricity from 100% wind power supplies.

EXTERNAL ANALYSIS-

BRAND OVERVIEW

-STRATEGIC MARKETING PLAN

Stella McCartney was launched in 2000 with the Kering Group. Stella is an activist, vegetarian and a supporter of animal rights, therefore her values and ethics are clearly portray in what the brand stands for. The brand does not use any leather, fur and ensures a safe work space during the production of the garments. The designer mixes high-end fashion with sustainability designing clothing, accessories and shoes with a feminine British influence.

TARGET MARKET

The brandâ&#x20AC;&#x2122;s target market ranges among the ages of 30 to 50, has a higher income and would spend high quantities of money in high-quality luxury products. The consumer is environmentally concerned but wants to be fashionable and trendy. This customer is looking for durable pieces.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN MARKETING MIX

PLACEMENT

PRICE

PROMOTION

Stella McCartney has an Omni-channel strategy operating in more than 77 countries with more than 70 physical points of sale in the most strategic locations with high-traffic. In their e-commerce platform they ship to more than 100 countries. Nevertheless, they also distribute to offline and online multi-brand retailers such as Farfetch and department stores such as Selfridges. Stella McCartney is a luxury brand therefore their pricing strategy belong to high-end. Women Ready to wear -Coats & Jackets (595€ - 1759€) -Knitwear (425€ - 995€) -Dresses (725€ - 3800€) -Sweatshirts & T-shirts (175€ - 795€) -Shirts & Tops (175€ - 895€) -Trousers (425€ - 995€) -Denim (265€ - 565€) -Skirts (325€ - 995€) -All-in-Ones (725€ - 1395€) -Swimwear (105€ - 330€) -Lingerie & Sleepwear (35€ - 430€) Accessories -Sunglasses (190€ - 450€) -Tech Cases (50€) -Jewellery (225€ to 355€) -Other Accessories (65€ - 695€) Fragances (22€ - 99€) Bags (180€ - 995€) Shoes (250€- 825€) The brand is recognise worldwide due to their strong ethical beliefs and charity works. All this values are transmitted through campaigns which are being promoted on social media, through PR strategies such as events or fashion shows or advertising, in specific when Stella McCartney collaborated with Adidas for The Olympics in 2012 and 2014. Instagram5,7M followers. Their posts are about new product launches, PR events, celebrities, fashion shows and new campaigns. Despite having a big following base their engagement is low in the comments section. Facebook: 926,764 likes In Facebook they post the same content that is posted in Instagram. Twitter: 1M In Twitter they post the same content in the social platforms mentioned before. Pinterest: 110,074 followers Their visual identity and mood boards are categorized by boards divided by campaigns, fashion shows or editorials. Youtube: 9,612 subscribers The content posted on Youtube varies from fashion show videos, conference talks, fashion film and campaigns videos. Newsletter: In the newsletter the customer receives updates about promotions, new product launches, new events and many others.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

PRODUCT Women Ready to wear -Coats & Jackets -Knitwear -Dresses -Sweatshirts & T-shirts -Shirts & Tops -Trousers -Denim -Skirts -All-in-Ones -Swimwear -Lingerie & Sleepwear Accessories -Sunglasses -Tech Cases -Jewellery -Other Accessories Fragances -STELLA Peony -STELLA -POP -POP Bluebell Bags -Handbags -Wallets & Purses -Stella Loves Shoes Adidas Kids Men

SUSTAINABLE APPROACH

According to the mission statement of the brand, they are commited to define the future of fashion; not using leather or fur. Their measure their impact through a decision-making tool called ‘Environmetal Profit and Loss’. This tool measures gas emissions, water use, water pollution, land use, air population and waste. The designer’s products are made with sustainable materials such as calf to produce fake leather and recycled polyester. The brand uses re-engineered chasmere and wool selected from welfare farms.

EXTERNAL ANALYSIS-

BRAND OVERVIEW

-STRATEGIC MARKETING PLAN

Everlane was founded in the United States in 2010. They offer high-quality basic and sustainable garments.

TARGET MARKET

The brand is aimed for women and men among the ages of 25 to 45 who are environmentally concerned and want to invest in sustainable clothing, yet they do not care about the trendiness of the style but the quality, the materials and the durability.

EXTERNAL ANALYSIS-

PLACEMENT

PRICE

-STRATEGIC MARKETING PLAN

Two physical stores; one in San Francisco and one in New York. They offer online shipping to 38 countries.

WOMEN Denim (68$ - 88$) Bottoms (59$ - 15$) Sweaters (50$ - 155$) Tops (68$ - 88$) Tees (15$ - 35$) Sweatshirts (55$ - 70$) Outwear (78$ - 250$) Dresses (25$ - 100$) Underwear (12$ - 30$) Boots (75$ - 235$) Heels (145$ - 165$) Flats (115$ - 180$) Loafers & Oxfords(140$ - 185$) Sandals (98$ - 155$) Handbags (65$ - 235$) Backpacks & Bags (35$ - 115$) Wallets (50$ - 120$) Hats (22$ - 35$) Scarves (65$ - 150$)

Everlane avoids traditional advertising and focusing on high quality content such as editorials. The claim the importance of not only describing the product but also how people will use it. They used a clean and detailed look with neutral collars. Their visual identity is clearly perceived on their social media platforms. PROMOTION

Instagram: 687k. Their content is based on re-posting pictures from users wearing their garments, facts about sustainability, inspirational pictures. Facebook: 303,111 likes On Facebook the brand uses the same content as Instagram. Their post videos about environmental issues and sustainability. They offer a shopping option inside the app. Pinterest: 48,458 followers In Pinterest the brands shows their visual identity through moodboards. Twitter: 33,9k In Twitter they share the same content as Facebook and Instagram. They also offer customer service.

EXTERNAL ANALYSISPRODUCT

-STRATEGIC MARKETING PLAN

The brand offers a ‘Choose What You Pay’ option in which the user can choose among three different prices to reduce overproduction and predict demand. The brand offers men and women’s apparel, shoes and accessories. Women Denim Bottoms Sweaters Tops Tees Sweatshirts Outwear Dresses Underwear Boots Heels Flats Loafers & Oxfords Sandals Handbags Backpacks & Bags Wallets Hats Scarves

SUSTAINABLE APPROACH

Everlane stands by transparency and sustainability, providing their customers with ‘radical transparency’ where they learn how the clothes have been products. Their clothes are produced to last for decades because they use the finest materials such as Grade-A cashmere or Peruvian Pima. In their webpage they have a factory section where they locate all their factories and specify information about the materials used, the owner and the production process. In their webpage they display a cost breakdown announcing the cost of the materials, the labour, the transport, the duties and the hardware to show the customer a true cost and compare it to a traditional cost from other retailers.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

POSITIONING MAP

STELLA MCCARTNEY

REFORMATION

EVERLANE

SANDRO

SUSTAINABILITY 10 9 8 7

CATEGORY VARIETY

BRAND AWARENESS

6 5 4 3 2 1 0

EXCLUSIVITY

TRENDINESS

P.O.S

AFFORDABILITY

To compare the future of Sandro it was to consider: sustainability because Sandro is entering to this new market, brand awareness to understand the influence of the brands, trendiness to consider segment among customers who are only concerned about sustainability and the ones who prefer a trendy clothing without harming the environment, the points of sale to analyse the coverage the brands have in the country that Sandro wants to enter with their new strategy, followed by category variety to discover which brands offer more product lines.

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

ASPIRATIONAL COMPETITORS

STRATEGIES THE ‘DROP’ MODEL A new popular retail strategy, the ‘drop’, based in realising a few times a year a limited amount of merchandise to create hype and exclusivity. Supreme is one of the pioneers of this new concept. The brand drops a new collection every Thursday with limited existences online and specific locations.

REPAIRING CLOTHING The Swedish brand focuses on jeans and its durability. The brand uses organic cotton and manufactures the product in a fair and ethical way. They offer free repairs in every Nudie store. ‘In 2018 we repaired 55 173 pairs of jeans, collected 10 557 pairs for reuse for new products and as patching material, which means we saved 44 000 kg of clothes from being thrown away and saved 386 000 000 litres of water.’ (Nudie Jeans, 2018)

EXTERNAL ANALYSIS-

-STRATEGIC MARKETING PLAN

ASPIRATIONAL COMPETITORS

AESTHETICS & DESIGN This benchmark displays the opportunity to obtain inspiration from this following brands. In order to improve their campaign look Sandro could follow the aesthetic patterns of Acne Studios and Celine. Since their differentiation strategy is the Parisian style, Sandro could take style inspiration from two young brands that are appealing to the French women of this decade mixing vintage with femininity and edginess.

CLEAN SOPHISTICATION

THE FRENCH LOOK

GENERAL SWOT

PRODUCT & PRICE

DISTRIBUTION

Strenghts: - Sandro offers a more diverse style for every type of customer. - They offer casual and formal wear - They have a significant category variety - The brand offers continuous products with different styles and combinations season after season - Trainers being a recognisable product of the brand in a short amount of time

Strenghts: - Strategic locations (street with high foot traffic) for the physical points of sale - They offer their products in department stores - Online distribution with fast shipping - Omni-channel strategy - High presence in France - Increasing the presence in Asia - Cross-selling is emphasised in the physical store

Weaknesses: - Not enough emphasis on jeans that are a key item in terms of cross-selling - Not enough emphasis on the coord sets which are also a key for cross-selling - Not a big variety of accessories - New sunglasses line has not been promoted adequately - Same price point as the current competitors.

Weaknesses: - Very basic stores but without trait or attribute that makes the consumer think instantly of Sandro and their brand values. - Online outlet orders can not be returned to any physical store Opportunities: - Implementing technological innovation to enhance customer experience - Increase the number of Pop Up stores to increase brand awareness - In the e-commerce show total looks to make it easier for the user to create outfits and incentivise cross-selling.

Opportunities: - Considering the success of the sneakers, giving the product more focus and implement a personalisation feature - Focus on accessories, especially bags - Collaborate with different artists or designers

Threats: - Store environment is very similar to its competitors - In the e-commerce, productâ&#x20AC;&#x2122;s pictures are not appealing

Threats: - The sneaker market is very broad at the moment and customers have a lot of options - The product not being enough differentiated from its competitors

CURRENT COMPETITORS

PROMOTION

Opportunities: - Being the first brand to implement a sustainable approach. - Re-targeting to consumer who are concerned about organic and recycled materials. - Since all of the competitors are playing with the French Chic style, differentiate Sandro by adding a sustainable approach. - Raise sustainable awareness through storytelling with emotional branding. - Focusing on footwear since the brand is being recognised by the ‘flame sneakers’ - Sandro is one of the brands that has more points of sales globally in strategic locations. - Increase online sales. - Sandro focuses on basic and staple garments, as well as, seasonal according to trends. - IKKS and The Kooples are already implementing fur and leather free strategies.

Strengths: - Sandro reaches to a young target below the age of twenty but it is also appealing for women older than 35. - Clear brand internal values - The brand being from Paris, the most recognisable fashion city in the world - Newsletters - Weaknesses: - Sandro offers a unique selling proposition, however it is not clearly perceived in their communication. - Not offering personalisation or customisation - Not relevant content on social media, it is not coherent - Not communicating the product clearly

Threats: - Not much differentiation in terms of French Chic style. - Similar price range for all of the brands. - All of the competitors aim for the same luxury affordable approach. - Physical points of sales of all the competitors are using the same interior design (white, clean and sophisticated).

Opportunities: - Make customers enhance through inviting friends to the newsletter and earn discounts - Increase brand loyalty through giving a bracelet for every purchase and after collecting 5 bracelet the customer earns a discount - Increase social media engagement Threats: - Not engaging on a personally level - Usual clients do not follow the brand on social media. They just check the webpage for updates and newsletter

FUTURE COMPETITORS Opportunities: - Being the only mid-market sustainable brand physically present in Europe. - Sandro’s customers are young and educated, therefore they have some sense of social responsibility. - Sandro being able to obtain access to different types of potential clients that were not before. - Sandro having a completely different style. Threats: - Sandro’s new proposal being perceived as a way to increase sales and not as a way to contribute to environmental issues. - More traditional customers might be willing to pay higher prices for non-leather. - People not perceiving enough transparency

PROPOSAL

‘French Sustainability’ 65

PROPOSAL-

-STRATEGIC MARKETING PLAN

STRATEGIC BASIS

NEW MARKET ENTRY

OBJECTIVES

Entering into the sustainable market by launching a sustainable capsule collection. After, depending on consumer demands and results implementing a new business model based on a sustainable CSR approach.

ATTRACTING A NEW TARGET AUDIENCE

In order to gain relevance to a different demographic and obtain a better understanding it is crucial to gain insights and valuable analytics on the new customer. Implementing new approaches that are relevant to this audiences to improve the brand value proposition. It is essential to reinforce the Sandroâ&#x20AC;&#x2122;s brand image through improving their communication plan and emphasising their brand values through their visual codes. Through personalised messages and storytelling consumers will gain emotionally connection to the brand which will strengthen brand loyalty.

GAIN MARKET SHARE

By expanding the customer base the brand will obtain a higher market share. Equally, increasing store traffic and average ticket size through cross-selling.

PROPOSAL-

-STRATEGIC MARKETING PLAN

PONTENTIAL TARGET After concluding and identifying characteristics of each market segments originating out of the interview insights an evaluation of the potential customer of the new proposal has been done. Three different profiles that share some common traits can be considered as potential buyers. (See annex for in-depth target segmentation).

PRIMARY TARGET ‘THE AFFORDABLE LUXURY FAN’ Age: 20-35 Occupation: Students/Young Professionals Shopping Behaviour: Luxury image with mid-market pricing. They invest in high-quality and durable items. They purchase in the physical store. Online Behaviour: They follow Sandro on social media and are newsletter subscribers where they get collection updates and promotional offers.

SECONDARY TARGET ‘THE COMPETITORS CUSTOMER’ Age: 20-35 Occupation: Students/Young Professionals Shopping Behaviour: They buy in mass market but also in highend brands. Not loyal customers. Open to try new fashion trends and brands. Online Behaviour: This segment is obsessed with social media and spends hours checking new merchandise online.

OCCASIONALLY TARGET ‘THE CONCIOUS BUT TRENDY’

Age: 24-50 Occupation: Professionals Shopping Behaviour: This segment is socially and environmentally concerned which affects their shopping patterns. They look for sustainable brands and recycled materials. They care about durability and functionality, but still look for trendy and fashionable brands. Online Behaviour: They buy online but are very thoughtful about every purchase.

PROPOSAL-

-STRATEGIC MARKETING PLAN

MARKETING STRATEGIES

COMPETITIVE STRATEGY DIFFERENTIATION An strategic positioning will be implemented in order to add value to the customer. It will be focused on differentiation, thus creating a product that will distinguish the brand from its competitors. The target segments described earlier share common attributes that will be met throw the new proposal. Sandro’s main differentiation trait from its competitors will be being the first mid-market French brand offering sustainable products and being socially and environmentally concerned. This practice will be reflected through their value chain to become the market’s leather.

PRICING STRATEGY VALUE-BASED PRICE Considering the brand’s potential market it has draw to the conclusion on how much the segment will be willing to pay and which attributes they valuable about Sandro’s product. This price is influenced by other factors such as market conditions, competitors prices, margins and production costs. The pricing strategy is value-based pricing based on how much worth the customer perceives. Since the competitive strategy is based on differentiation and making products that stand out in the market a value-based pricing will help better convey the value they offer.

GROWTH STRATEGY PRODUCT EXPANSION STRATEGY / GROWTH THROUGH DIVERSIFICATION In order to increase sales and profits Sandro’s growth strategy will be based on product expansion and growth through diversification. Firstly, Sandro will expa ndits product line and continue selling to their existing market. However, through diversification Sandro will sell this new product line to a new potential market.

PROPOSAL-

-STRATEGIC MARKETING PLAN

ASPIRATIONAL POSITIONING

SANDRO

REFORMATION

POS

STELLA MCCARTNEY

SUSTAINABILITY 10 9 8 7 6 5 4 3 2 1 0

BRAND AWARENESS

EVERLANE

TRENDINESS

EXCLUSIVITY

AFFORDABILITY

CATEGORY VARIETY

This positioning map represents an aspirational positioning after the launch. Sandro would not be 100% sustainable since it is only a percentage of their product offering that will be sustainable. In terms of trendiness, the brand will have recognisable style codes. Sandro will reach to a higher point than its competitors in terms of exclusivity since the capsule collection will be limited.

In the future, the prices will not be drastically modified since one of the key attributes of the brand is offering middle rage prices. Sandroâ&#x20AC;&#x2122;s points of sale are growing significantly every year and depending on the demand the capsule collection will be available in more than the first locations of the first launch.

PROPOSAL-

-STRATEGIC MARKETING PLAN

KEY SUCCESS FACTORS

UNIQUE SELLING PROPOSITION OF THE BRAND AS PARISIAN STYLE MIXED WITH A SUSTAINABLE ADVANTAGE. IMPROVE COMMUNICATION THROUGH CONTENT STRATEGY TO REACH THE AUDIENCES IN A MORE PERSONALISED METHOD. DISPLAY BRAND VALUES INTO THE COMMUNICATION. PRODUCE BASED ON CONSUMER DEMAND. IN ORDER TO PROGRESS AND GAIN DIFFERENTIATION ANALYSING MARKET TRENDS AND COMPETITORS

PROPOSAL-

-STRATEGIC MARKETING PLAN

marketing mix 71

PRODUCT

COLLECTION STRUCUTURE

SPRING/SUMMER 2020

The capsule collection structure is based on how the brand groups complementary merchandise on a rack by style and colour coordination to increase cross-selling and suggestive selling in the retail store. After analysing the products categories in the internal analysis, the conclusion has been drawn that the brand has five product families that could be considered icons of the brand seeing that those are permanent products season after season. This products will be the foundation of the capsule collection taking into account the brandâ&#x20AC;&#x2122;s silhouettes and styles.

COLOURS

dresses

MATERIALS

SILHOUETTE & STYLES

Above a picture of Libecoâ&#x20AC;&#x2122; linen is displayed. Linen is used to produces printed, knitted and woven shirts with a better quality, warmth and comfort.

Ryon, also known as viscose is not a natural fibre. It is a generic term for materials made from plants that are broken down through a chemical and mechanical process.

Long Beige Linen Dress

Long Blue Flowy Dress

Mini White dress with lace trim detail

Mini Black Knitted Dress 72

PROPOSAL-

-STRATEGIC MARKETING PLAN

coats COLOURS

SILHOUETTE & STYLES

MATERIALS

Trench Coat

Cotton twill is based of cotton textile (natural fibre). The twill technique is woven as a diagonal pattern. Twill Cotton is heavier and more structured than regular cotton.

Long Pastel Blue Wool Coat

‘Wool is a short-term store of natural, renewable carbon. Pure organic carbon makes up 50% of the weight of wool, higher than cotton (40%) or wood pulp-derived regenerated cellulosic such as viscose (24%)’. (International Wool Textile Organisation, 2018)

PROPOSAL-

-STRATEGIC MARKETING PLAN

blazers & jackets COLOURS

MATERIALS

SILHOUETTE & STYLES

100% LINEN

Organic cotton is the most sustainable choice since it grows without using any harmful pesticides, chemicals and synthetic fertilizers.

Denim Jacket

Biker Black Jacket

Recycled leather is composed of shredded leather scraps and residues collected from the manufacturing of clothes, shoes, boots, handbag and others. The shreds are mixed together and then coloured.

Cream Blazer 74

PROPOSAL-

-STRATEGIC MARKETING PLAN

MATERIALS

COLOURS

tops & blouses

100% ORGANIC COTTON

Silk Charmeuse fabric is composed on a shiny face on one side and a matte face on the other. It is a satin wave that allows a soft feel and a variety of solids and prints.

SILHOUETTE & STYLES

100% LINEN

Short Sleeve Top with ruffle edged necktie and puff sleeves

Long Sleeve Blouse with Stretchy Knitted Short crotchet detailing Sleeve Top

Cream Silk Top with Strap Ties

PROPOSAL-

-STRATEGIC MARKETING PLAN

COLOURS

bottoms

MATERIALS

SILHOUETTE & STYLES

100% LINEN

High Rise Denim Skirt

100% ORGANIC COTTON

TENCEL Â® lyocell Tencel or lyocell is a sustainable fabric, regenerated from wood cellulose. Tencel fibres are absorbent, strong, wrinkle resistant and can simulate various fabric types, like suede, leather or silk.

Midi Length Skirt with Slim fitting, high rise waist

High Rise Ankle Length Pants

High Rise Wide Leg Ivory Jean

High Rise Wide Leg Celtic Jean

PROPOSAL-

-STRATEGIC MARKETING PLAN

MATERIALS

COLOURS

trainers

Polyurethane is a plastic material that offers durability and abrasion-resistant, yet soft, light and breathable. This fabric is used to make socks, brassieres and swimsuits.

SILHOUETTE & STYLE

collection strucutre CATEGORY DRESSES

REFERENCE Long Beige Linen

PROTOTYPE

MATERIALS

COLOURS

SIZE

100% Linen

34,36,38,40

Long Blue Flowy

53 % Viscose, 47%

34,36,38,40

Dress

Rayon

Dress

Mini White dress

100% Linen

34,36,38,40

Mini Black Knitted

88% TENCEL ®

34,36,38,40

Dress

lyocell, 12%

with lace trim detail

Spandex COATS

Long Pastel Blue

Shell: 60% Wool,

Wool

25% Nylon, 8%

34,36,38,40,42,44

Polyester, 6% Acrylic, 1% Rayon; Body Lining: 55% Cupro, 45% Cotton; Sleeve Lining: 100% Polyester

BLAZERS & JACKETS

Trench Coat

100% Cotton Twill

34,36,38,40,42,44

Oversized Denim

100% Organic

34,36,38,40,42,44

Jacket

Cotton

Black Biker Jacket

100% Vintage

1,2,3

Recycled Leather Cream Linen

100% Linen

34,36,38,40,42,44

0,1,2,3

Blazer TOPS &

Cream Silk Top

100% Silk (silk

BLOUSES

with Strap Ties

charmeuse fabric)

Long Sleeve

100% Organic

Blouse with

Cotton

0,1,2,3

crotchet detailing 0,1,2,3

Stretchy Knitted

98% Modal, 5%

Short Sleeve Top

Spandex

Short Sleeve Top

100% Linen

0,1,2,3

High Rise Wide

60%, Organic

34,36,38,40,42,44

Leg Ivory Jean

Cotton, 40%

with rufﬂe edged necktie and puff sleeves BOTTOMS

TENCEL ® lyocell High Rise Wide

60%, Organic

Leg Celtic Jean

Cotton, 40%

34,36,38,40,42,44

TENCEL ® lyocell Midi Length Skirt

53 % Viscose, 47%

with Slim ﬁtting,

Rayon

0,1,2,3

high rise waist High Rise Denim

60%, Organic

Skirt

Cotton, 40%

0,1,2,3

TENCEL ® lyocell High Rise Ankle

100% Linen

Length Pants

34,36,38,40,42,44

PLACEMENT

STORE ENVIRONMENT

EXTERNAL DESIGN AND WINDOWS

The facade of the store presents a modern design with black and white lines giving a clean look. From the outside, the lighting perceived coming from the inside of the store is white yet warm which invites people to go in. The front door is a whole crystal window in which there are the mannequins displayed. Sandro has different types of store; one mixed (men and women), only men and only women. Usually flagship stores offer both lines, therefore the capsule collection will be mainly distributed to flagship stores to gain a bigger coverage. In every store, there is one or two mannequins, during the first weeks after the release some garments of the capsule collection will be displayed in one of this mannequins.

INTERNAL DESIGN OF THE STORE

After entering the store it is usually clearly perceived the division of the two genresâ&#x20AC;&#x2122; lines. The aisles which consists of clothing racks are the main indicators of the low or pathway since there are no defined corridors. The hot areas are located in the central racks which are the first point the customers sees when they enter the store. This section obtains natural lighting from the big windows displays. In this area is where the capsule collection will be placed, in the central rack and combined with a table to display the shoe. This area can also be considered as the golden area.

CAPSULE COLLECTION

PROPOSAL-

-STRATEGIC MARKETING PLAN

PRODUCT & PLACEMENT

Since the whole store is divided by colour themes, the capsule collection has been designed to fit a colour palette combining nine colours. As already mentioned earlier, the collection will be displayed on one rack combining star performers with profit builders, traffic builders and space wasters to incentivise cross-selling. The trainers are a star performer item that will be placed on a small stand next to the rack in the hot area of the store. If the store has enough space for three mannequins in the centre after the main any, two outfits from the collection will be displayed along side with the shoes.

PLANOGRAM

This planogram belongs to the organisation of the store located in Street Consell de Cent in Barcelona. It shows how there is not a clear pathway that the customer is following. The position chosen for the collection is the most visible of the store and the one that is more eye-catching.

TWO MANNIQUINS AND ONE TABLE DISPLAYING THE CAPSULE COLLECTION

CAPSULE COLLECTION

PROPOSAL-

-STRATEGIC MARKETING PLAN

E-COMMERCE

The collection will be sold online and it will be launched the same day as in the physical points of sale. The e-commerce will adapt a section for the collection and displaying it on the home page. In the images below it is showed how the products will be organised.

SUSTAINABLE CAPSULE COLLECTION

FRENCH SUSTAINABILITY

Dresses Coats Blazers & Jackets Tops & Blouses Bottoms Trainers

French Sustainability

PROPOSAL-

-STRATEGIC MARKETING PLAN

Long Sustainable Sandro Leather jacket with long sleeves. Biker style with belt around the waist line. Four pockets on the front. This timeless item is an essential wardrobe item. The model is wearing a size one.

100% Vintage Recyled Leather

STOCK ALLOCATION AND DELIVERY CHART

The collection will be distributed to ten Sandro stores located in strategic locations. Four of them will be flagship stores and the rest own stores. The collection will not be sold on Sandro stands alone on department stores, shopping malls and online with the aim to create an exclusive feel and hype. Also, in order to reduce waste and unwanted stock, the brand will only produced a limited amount of garments. The stock that will be not sold at the end of the season will be available on the e-commerce of the brand. Flagships: London, Paris, Barcelona and Berlin (4). Other stores: Madrid, Stockholm, Amsterdam, Antwerp, Milan and Vienna.

CLUSTERS/ CLUSTERS/ N.of units

Collection

Dresses

Coats

Category

Long Beige Linen Dress Long Blue Flowy Dress Mini White dress with lace trim detail Mini Black Knitted Dress Long Pastel Blue Wool

Star Performers Star Performers

Trench Coat

Star Performers Star Performers Profit Builders Profit Builders

Cost

Sneakers

Traffic Builders

Flame Sneakers

Star Performers

Markup

# Units

€ Cost

€ Retail price

54,44 € 245,00 €

77,78%

3,5

1.361,11 € 6.125,00 €

38,89 € 175,00 €

77,78%

3,5

972,22 € 4.375,00 €

61,11 € 275,00 €

77,78%

3,5

1.527,78 € 6.875,00 €

43,33 € 195,00 €

77,78%

3,5

1.083,33 € 4.875,00 €

100,00 € 550,00 €

81,82%

4,5

1.500,00 € 8.250,00 €

81,82 € 450,00 €

81,82%

4,5

1.636,36 € 9.000,00 €

295,00 €

81,82%

4,5

1.072,73 € 5.900,00 €

455,00 €

81,82%

4,5

1.240,91 € 6.825,00 €

325,00 €

81,82%

4,5

886,36 € 4.875,00 €

195,00 €

77,78%

3,5

1.083,33 € 4.875,00 €

250,00 €

77,78%

3,5

1.111,11 € 5.000,00 €

150,00 €

75,00%

3,0

937,50 € 3.750,00 €

225,00 €

77,78%

3,5

1.000,00 € 4.500,00 €

225,00 €

75,00%

3,0

843,75 € 3.375,00 €

225,00 €

75,00%

3,0

1.125,00 € 4.500,00 €

175,00 €

75,00%

3,0

656,25 € 2.625,00 €

63,75 € 255,00 €

75,00%

3,0

956,25 € 3.825,00 €

78,89 € 355,00 €

77,78%

3,5

Oversized Profit Denim Builders Jacket 53,64 € Blazers & Black Biker Profit Jackets Jacket Builders 82,73 € Cream Linen Profit Blazer Builders 59,09 € Cream Silk Star Top with Performers Strap Ties 43,33 € Long Sleeve Star Blouse with crotchet Performers detailing 55,56 € Tops & Stretchy Traffic Knitted Blouses Short Sleeve Builders Top 37,50 € Short Sleeve Top with Star ruffle edged necktie and Performers puff sleeves 50,00 € High Rise Traffic Wide Leg Builders 56,25 € Ivory Jean High Rise Traffic Wide Leg Builders Celtic Jean 56,25 € Midi Length Bottoms Skirt with Traffic Slim fitting, Builders high rise 43,75 € waist High Rise Ankle Length Pants

Retail Price Margin

3.155,56 € 14.200,00 €

22.149,56€ of cost for production.

103.750,99€ of earnings for the first month.

YEARLY SALES FORECAST

Year Sales Forecast Collection

Dresses

Coats

Item Long Beige Linen Dress Long Blue Flowy Dress Mini White dress with lace trim detail Mini Black Knitted Dress Long Pastel Blue Wool Trench Coat

Blazers & Jackets

Oversized Denim Jacket Black Biker Jacket Cream Linen Blazer

Tops & Blouses

Bottoms

Sneakers

Cream Silk Top with Strap Ties Long Sleeve Blouse with crotchet detailing Stretchy Knitted Short Sleeve Top Short Sleeve Top with ruffle edged necktie and puff sleeves High Rise Wide Leg Ivory Jean High Rise Wide Leg Celtic Jean Midi Length Skirt with Slim fitting, high rise waist High Rise Ankle Length Pants

Category Retail Price Initial Stock Units Sold X year Star Performers Star Performers

Sales €

Ending Stock Rotation

245,00 €

3000

735.000,00 €

120,0

175,00 €

3000

525.000,00 €

120,0

275,00 €

3000

825.000,00 €

120,0

195,00 €

3000

585.000,00 €

120,0

550,00 €

1800

990.000,00 €

120,0

450,00 €

2400

1.080.000,00 €

120,0

295,00 €

2400

708.000,00 €

120,0

455,00 €

1800

819.000,00 €

120,0

325,00 €

1800

585.000,00 €

120,0

195,00 €

3000

585.000,00 €

120,0

250,00 €

2400

600.000,00 €

120,0

150,00 €

3000

450.000,00 €

120,0

225,00 €

2400

540.000,00 €

120,0

Traffic Builders

225,00 €

1800

405.000,00 €

120,0

Traffic Builders

225,00 €

2400

540.000,00 €

120,0

175,00 €

1800

315.000,00 €

120,0

255,00 €

1800

459.000,00 €

120,0

355,00 €

4800 45600

1.704.000,00 € 12.450.000,00 €

120,0

Units SOLD

in sales the first year

Star Performers Star Performers Profit Builders Profit Builders Profit Builders Profit Builders Profit Builders Star Performers

Star Performers Traffic Builders

Star Performers

Traffic Builders

Star Flame Sneakers Performers

Rotation during twelve months in ten different stores. (1 a month)

the collection book

inspiration - The inspiration for the collection comes from the mix of French heritage and nature, - Creating a Spring/Summer collection that connects nature with the heart of Paris. - This connection mixes both atmospheres; the city and natural landscapes but always using the same versatile garments in order to reduce waste and over-consumption.

â&#x20AC;&#x2DC;French Sustainabilityâ&#x20AC;&#x2122;

shapes - The shapes inspiration comes from creating thin and delicate lines. - Using baggy shape but still emphasising the feminine figure. - The feminine body is shown but never being too daring.

‘Elegant but sexy’

‘Simple and delicate’

materials & textures -When thinking of doing a eco-friendly collection, the materials need to go according to the silhouettes and the style the design process is aiming for. -Linen is the key material of the collection because it can emphasize the female figure, while giving away a casual look but still sophisticated.

‘Natural Fibres’

colours

- This nine colours were chosen by analysing Sandro’s style codes and colours used. Light pink and light blue were the most used for their most recent collections. -The other colours are neutral colours to combine all together and create a calm and relaxed palette. -The colours are very versatile and basic to create wardrobe staples.

‘Pastel and Neutral colours’ 99

CONCLUSION

The aim of the release of the capsule collection is to introduce Sandro to this new market and to a new target segment. After analysing the consumer demand of the launch, a new sustainable collection will be launched in order to make the brand 100% sustainable by 2022. In summary, since the brand wants to maintain an exclusive image the stock will be very limited which means that the stock investment of the first year will be low in comparison to the forecast of the yearly earnings.

100

ANNEX sandro customer interview

1. How did you get to know the brand? 2. At first, did you like the brand? 3. How would you describe the brand? 4. What was the reason after your first purchase? 5. When was the first time you bought something from Sandro? what was it? 6. Do you consider yourself a frequent client of Sandro? 7. What type of items do you usually buy there? is it more basic items such as t-shirt or jeans? or more staple pieces such as coats and bags? 8. Do you tend to look for meaning in our purchases? 9. Is the shopping experience important to you? 10. Do you purchase online or offline? 11. If you have been to a Sandro store what did you think of it? (merchandising/customer service) 12. Do you have a Sandro store close to where you live? 13. Do you consider the price to be coherent with the product? 14. Is Sandro one of the most expensive brands you buy? or is it in the lower side? 15. Which pieces do you think are the most iconic of the brands? 16. Do you go to the store to check the new collection or do you check online? 17. Do you follow the brand on social media? if so, in which platforms? 18. Do you follow influencers that work with the brand or feature Sandro pieces? 19. Do you think Sandro has a popular Instagram and is updated with the latest digital trends? 20. If you do not follow them on social media, where do you obtain information about the brand? is it through a newsletter? visiting the store of the own website? 21. Are you environmentally concerned ? 22. Which methods do you practise to reduce waste? 23. Do buy in sustainable brands? 24. Have you found any sustainable brand that matches your style? 25. Do you consider sustainable fashion to be more expensive? 26. What would you think if Sandro took a turn into sustainability? Would you be willing to try the products?

101

Sandroâ&#x20AC;&#x2122;s competitors interview

1. Do you know about any of the following brands: Zadig & Voltaire, IKKS, Maje, Claude Pierlot, The Kooples,Comptoir des cotonniers, BA&SH or IRO? 2. Have you ever purchased anything from then? If so, what and why? 3. Do you consider yourself a frequent client? 4. What type of garment do you usually buy there? Is it more clothing or more accesso ries? 5. How did you first get to know any of these brands? 6. Do you tend to look for meaning in your purchases or is it more impulsive? For example, buying an item of clothing while you are on holiday to remind you of the experience? 7. Is the shopping experience important to you? 8. What do you think of the price point of this brands? Is it coherent with the products they offer? 9. Do you think all of this brands follow the same style codes such as French heritage and femininity? 10. Have you ever heard of the brand Sandro? If so, do you think it is similar to the brands mentioned before? 11. Have you ever bought anything from Sandro? If so, what? 12. Do you like the overall style of Sandro? Or you just like some specific pieces? 13. Do you usually purchase online or offline? 14. Do you have any physical store of the already mentioned brands near you? 15. For any brand, do you visit the store to check the new collections or you see them online? 16. Are you subscripted to any newsletter? 17. Do you follow any of this brands on social media? If, so which platforms? 18. Do you follow any influencer that works with the brands or feature their products on their posts? 19. If you do not follow brands on social media, where do you get your updates and information about rbands? 20. Are you environmentally concerned? 21. Which methods do you practise to reduce waste? 22. Do buy in sustainable brands? 23. Have you found any sustainable brand that matches your style? 24. Do you consider sustainable fashion to be more expensive? 25. What would you think if Sandro took a turn into sustainability? Would you be willing to try the products?

102

customer segmentation ‘THE AFFORDABLE LUXURY FAN’ PROFILE

This segment belongs to the ages of 20 until 35. They are young professionals or students and some still receive financial help from their families, however this group has a middle-to-high household income.

This group is fascinated with luxury but cannot afford the high-end

LIFESTYLE & INTERESTS

SHOPPING BEHAVIOUR

prices, consequently Sandro and its competitors meets their needs perfectly. According to the interviews, the competitors are: Zadig & Voltaire, Maje, Claude Pierlot, Cos, Bimba y Lola and others. They are looking for affordable luxury, as they feel that they are purchasing luxury high-quality items at a fair price while enjoying their style and trendiness. This segment lives in big cities and enjoys time out with friends and uses shopping as a way of socialising. In that sense, they are passionate about curating their style and are thoughtful about their purchases. They spend a significant amount of their time online, looking for inspiration on social media and checking online stores just to see what has been added to the collection of the brands they love very frequently.

They probably follow Sandro on social media and are subscribed to the newsletter. They discovered the brand through their competitors since they share very close locations on department stores or seeing by their own physical store in their city. The product is perceived as high-quality, sophisticated and youthful by adding the French touch. For them, besides the affordable luxury image, the most recognisable trait of the brand is Paris and its influences in brand’s products. For this segment of the market, Sandro means being closer to the luxury French girls that is wearing Saint Laurent or Isabel Marant.

This Sandro customer is up to date with news and issues that the world is facing at the moment, therefore they have some sense of environmental concern. However, they do not practise any sustainabiliPERCEPTION OF THE ty approach in their daily lives or shopping preferences. They have the NEW PROPOSAL idea that sustainability clothing is basic, boring and not trendy. Therefore, if one of their favourite brands would implement a sustainable approach they would be willing to purchase it because they would feel more responsible and they would feel like they are contributing to society in a good way.

103

â&#x20AC;&#x2DC;THE COMPETITION CUSTOMERâ&#x20AC;&#x2122; PROFILE

LIFESTYLE & INTERESTS

SHOPPING BEHAVIOUR

This target market belongs to the same group of competitors of Sandro such as Zadig & Voltaire, Maje and BA&SH. They are among the ages of 20 and 35 and their occupation is student, young professional with a mid-to-high household income but some still are still supported financially by their families. This segment is very similar as the one already mentioned, however they are not loyal to any brands. They like the idea of affordable luxury that is why they buy in mid-market brands. Nevertheless, they still purchase in mass market brands such as Zara due to their prices, trendiness and convenience. They are deeply interested in fashion and trends that is why they occupy a big quantity of their time shopping or obtaining inspiration through social media while checking new collection from different brands. This group is up-to-date with trends and new up-coming brands and they are aware of the existence of Sandro due to the closeness of Sandro to the competitors in shopping malls and department stores. Since this target usually lives in cities there is a high percentage chance that they live close to a Sandro store.

This segment tends to purchase a once or twice a month and is willing to pay high quality for brands and clothing that is appealing to them. One of the factors that this customer does not usually buy in Sandro could be due to the fact that they are not loyal to brands, this customer likes to purchase in different type of brands and they are more concerned about the garment on itself than a brand name. According to the interviews, some actual Sandro customers used to buy more in Zadig & Voltaire before but after discovering Sandro, Z&V has lost their appeal to them. The customer perceives Sandro with a higher quality and offers a longer lifetime for their products than its competitors.

Concerning the new proposal, as said before this customer is not actually purchasing in sustainable brands due to the fact that there is a lack of a sustainable brand that meets their style and their budget. They feel like fashionable sustainable brands are either high-end or PERCEPTION OF THE they just offer a limited variety of products with basic and neutral NEW PROPOSAL styles. In that sense, this customer is active on social media and world issues, which means that they have been affected by environmental advertising and campaigns. They are environmentally concerned but they do not take any measures to become more responsible. Consequently, they would be willing to purchase a Sandro sustainable line because it would made them feel that contributing to the movement.

104

â&#x20AC;&#x2DC;THE CONCIOUS BUT TRENDYâ&#x20AC;&#x2122; PROFILE

LIFESTYLE & INTERESTS

SHOPPING BEHAVIOUR

This target segment is slightly older than the other, they are among the ages of 25 and 40. They are professional earning a mid-to-high household income but invest a significant amount of their salary in fashion. This segment is social and environmental responsible and try to make changes in their daily lives. They focus on sustainable fashion, cruelty-free cosmetics and organic food. However, they do not want to give up fashion completely because they like to dress stylish and care about their image. In that sense, they purchase in brands that are not sustainable from time to time because they really like the style and what the brand represents.

This segment cares about the price of the garments they buy, as well as, the production and materials. It is important for them to pay a fair price. However, they do not have compulsive purchases in the sense that they are very thoughtful about what they want, the functionality of the product and the wear ability. They want their clothes to live a long lifespan, for this reason they are willing to pay higher prices to obtain all this variables. They usually shop once a month and follow their favourite brands on social media and receive update through newsletters. This customer cares about brand values. Therefore, when they find a brand that they like they are loyal to it.

This group segment is not willing to give up fashion entirely to be sustainable. The new implementation of a sustainable line in a brand that PERCEPTION OF THE they really like would be very convenient for them because they would NEW PROPOSAL meet a middle point among their own fashion style and sustainability.

105

BIBLIOGRAPHY Some sources of this project have been obtained from past research the student made during her studies in IED Barcelona. Deltracon.be. (2019). Deltracon | The Spirit To Create. [online] Available at: http://deltracon.be [Accessed 19 Mar. 2019]. Fashionisers©. (n.d.). Search for “stella mccartney”. [online] Available at: http://www.fashionisers.com/?s=stella+mccartney [Accessed 19 Mar. 2019]. Ft.com. (2019). Louis Vuitton in collaboration with Supreme pop-up stores prompt global shopping stampede | Financial Times. [online] Available at: https://www.ft.com/content/b8ed970a-5d8a-11e7-b553-e2df1b0c3220 [Accessed 19 Mar. 2019]. https://fashionunited.com/news/retail/the-kooples-continue-u-s-expansion/201503106313 International Wool Textile Organisation. (2019). Sustainability. [online] Available at: https://www.iwto.org/sustainability [Accessed 19 Mar. 2019]. Lexception.com. (n.d.). Interview - Iro | L’Exception | Magazine. [online] Available at: https://www.lexception.com/gb-en/magazine/iro-interview-fashion-designer [Accessed 19 Mar. 2019]. Libeco.com. (2019). Libeco Lagae, dedicated to the manufacturing and distribution of linen.. [online] Available at: https://www. libeco.com/en/home.aspx [Accessed 19 Mar. 2019]. London.everypeoples.com. (2019). Everypeoples London Guide - Nudie Jeans Repair Shop. [online] Available at: http://london. everypeoples.com/central/nudie-jeans-repair-shop/ [Accessed 19 Mar. 2019]. Mckinsey.com. (2019). [online] Available at: https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/ the%20state%20of%20fashion%202019%20a%20year%20of%20awakening/the-state-of-fashion-2019-final.ashx [Accessed 19 Mar. 2019]. Nudie Jeans. (2019). Free repairs for life - Nudie Jeans. [online] Available at: https://www.nudiejeans.com/page/free-repairs-for-life [Accessed 19 Mar. 2019]. Ritournelle. (2018). IRO, Maje and Comptoir des Cotonniers: 3 French fashion brands gone big. [online] Available at: https:// ritournelleblog.com/2010/08/20/iro-maje-and-comptoir-des-cotonniers-3-french-fashion-brands-gone-big/ [Accessed 19 Mar. 2019]. SMCP. (n.d.). Key figures - SMCP. [online] Available at: https://www.smcp.com/en/finance/key-figures/ [Accessed 19 Mar. 2019]. Smcp.com. (n.d.). [online] Available at: https://www.smcp.com/app/uploads/2019/01/press-release-smcp-2018-full-year-sales.pdf [Accessed 19 Mar. 2019]. Stella McCartney. (2019). Materials and innovation - Stella McCartney. [online] Available at: https://www.stellamccartney.com/experience/en/sustainability/materials-and-innovation/ [Accessed 19 Mar. 2019]. The Business of Fashion. (2018). Fashion in 2018 | 04. Getting Personal. [online] Available at: https://www.businessoffashion.com/ articles/intelligence/top-industry-trends-2018-4-getting-personal [Accessed 19 Mar. 2019]. The Business of Fashion. (2019). Fashion in 2018 | 08. Sustainability Credibility. [online] Available at: https://www.businessoffashion.com/articles/intelligence/top-industry-trends-2018-8-sustainability-credibility [Accessed 19 Mar. 2019]. The Fashion Retailer. (2019). Innovative Customer Experience in NYC. [online] Available at: https://fashionretail.blog/2018/12/03/ customer-experience-in-fashion-retail/ [Accessed 19 Mar. 2019]. Thereformation.com. (2019). Reformation | Sustainable Women’s Clothing and Accessories - Reformation. [online] Available at: https://www.thereformation.com [Accessed 19 Mar. 2019]. WGSN | Creating Tomorrow | Trend Forecasting & Analytics. (2019). User Login | WGSN | Creating Tomorrow. [online] Available at: https://www.wgsn.com/content/personalized/reports?content_types=125&markets=57&seasons=2431 [Accessed 19 Mar. 2019]. Wgsn.com. (2019). [online] Available at: https://www.wgsn.com/content/board_viewer/#/75543/page/5 [Accessed 19 Mar. 2019].

Figure 1 Smcp.com. (2018). SMCP 2018 FULL YEAR SALES. [online] Available at: https://www.smcp.com/app/uploads/2019/01/press-release-smcp-2018-full-year-sales.pdf [Accessed 13 Feb. 2019]. Figure 2: T-shirt, S. (2018). Sandro X The Muppet Show T-shirt. [online] Sandro-UK. Available at: https://uk.sandro-paris.com/en/woman/tshirts/sandro-x-the-muppet-show-t-shirt/T11544H.html [Accessed 13 Feb. 2019].

106

107