Size? Market Report by Olivia Thomas

Size? Market Report Olivia Thomas; N0302640 FASH10041 Creative Networks

CONTENTS >>Introduction 01

>> >>

Methodology Primary Research Secondary Research 02 >> >> >> >> >> >> >> >> >> >>

Rationale and Discussion Why Size? Where? SWOT and PEST SWOT for Size? SWOT for Footlocker PEST Competition Identity Consumer Behaviour Consumer Segmentation

>> >> >> >> >>

Communication Strategy Aim of Communication The Message Collaboration Flagship Instore Marketing Mix 04

Summary and

Recommendations

References and Bibliography 06

Appendix

Introduction: This marketing report will explore the option of moving the UK retail brands Size? into the American market via Direct Investment. As part of the launch there will be an appropriate collaboration for the brand. This may be with an artist, musician, celebrity, designer, architect etc.

Methodology >>

METHODOLOGY >>

Thorough research of Size? in its current UK market must be initially completed in order to create a successful strategy to take Size? over to the US. Using online reports and statistics about consumer behaviour in the UK and US will give the brand an understanding of the market it is launching into and who the brand should be targeting. Using different resources, all aspects of the launch will be researched, for example: local and international behaviour, potential locations, in store retail environments and communication strategies for the launch.

>> PRIMARY RESEARCH: Questionnaire: An online questionnaire on surverymonkey.com (See Appendix) was completed to investigate Size? as a brand in the UK and its potential in the American market. The questionnaire is used to investigate current consumer insight and opinion.

Interviews:

Store observations:

Informal interviewing via telephone with relevant members of the trade who have experience and information about the differences between the UK and American markets will give a substantial insight.

Instore retail design plays an important part in the consumerâ&#x20AC;&#x2122;s experience, store observations will help solidify the brandâ&#x20AC;&#x2122;s identity and influence new design ideas for the flagship launch in America.

>> SECONDARY RESEARCH: Books: Sneaker books will help to identify past, current and future trends, competitors, price points and consumer behaviour within the industry.

Online research: Mintel reports will supply current information about fashion and sportswear trends, the male consumer, brand information and advertising statistics; enabling comprehensive market research.

Brand websites will show available ranges, price points and the trends Size? and itâ&#x20AC;&#x2122;s competitors currently sell. Financial websites will give up to date information on the financial position of brands and their competitors. They will also give recent figures of the American and UK retail markets.

Strategic research: Completing SWOT and PEST analyses and a perceptual map will enable a thorough and relevant competitor analysis and raise awareness of any issues within the market.

02 RATIONALE AND DISCUSSION >>

>> WHY SIZE? The Pentland Group is the largest UK-based group in the market and owns 57% of one of the leading retail groups in the UK, JD Sports Fashion PLC. Size? is operated under the Sports Fascia, one of two divisions that JD runs. (Keynote. 2011, online) ‘The Size? and JD Sports brands, performed much better than the fashion division, with like-for-likes in the UK and Ireland up 3.9 per cent in the six month period.’ (O’Doherty. 2010, FT online)

Although the company remains cautious about future trading, JD is in a relatively stable financial position and planning to move abroad, initially into Europe. Peter Cowgill, executive chairman has said “Our very strong cash position has also allowed us to continue to invest in brands, our store portfolios and new businesses during the year and since the year end’’ (Owen. 2011, Online)

With Size? claiming to ‘once again bring the best product & knowledge to footwear aficionados around the globe!’ (Twitter. 2011, online) and because in the US ‘The footwear market reached a total of $46.5 billion in estimated sales for 2010,’ (Mintel. 2010, online) it makes sense that Size? extend their profile into the seemingly popular US market.

Leading sportswear brands such as Nike and Adidas all play their roles in the market but although Size? is a small brand in comparison to its competitors, it’s leading product lines and British heritage give the brand a confident potential and competitive edge to move into the US market and be successful.

The move would increase the brand’s market reach and gain new international consumers, creating a bigger competitive advantage against UK brands. Moving to the US would also give the brand a stronger identity, both physically in store and online whilst giving the key sportswear brands it sells, the confidence in its current and future abilities.

>> WHERE? Size? will initially launch a flagship store into Soho, New York, positioned near to competing stores to attract the target consumer footfall. Size? will also open a store in Brooklyn, following other urban sportswear and footwear competitors and allowing the consumer to discover the brand.

Hopefully following the success of the flagship and the Brooklyn store, Size? will also open in Boston, Massachusetts soon after. Over the first year around three or four shop openings will take place in areas near to competing brands, such as central Boston and Cambridge.

WHY?

The flagship store will be launched in Soho, New York as it allows for a heavier tourist footfall and therefore creates more of an attraction and experience to visit.

One of the main reasons for taking the brand to Boston after New York is because it is most European in layout and atmosphere and should therefore respond well to a British brand.

Soho is a style capital, full of designers, artists and musicians and although the area is a very popular destination for tourists, the numerous boutiques keep the area feeling local and grounded.

It is important that interest in the brand isnâ&#x20AC;&#x2122;t a passing trend and sales donâ&#x20AC;&#x2122;t fall after the flagship launch.

Soho would allow the flagship to stand proudly in such an affluent area, noted for its architecture and artistic reputation. Size? would be located near competition but not on Broadway, keeping the brand out of the lime light and allowing it to be discovered.

This should be avoided by introducing a smaller store in Brooklyn and numerous stores in Boston over the following year to build the brands presence, credibility and consumer base.

>> SWOT AND PEST Completing a swot analysis for Size? and itâ&#x20AC;&#x2122;s US competitor Foot Locker identifies the key internal and external factors that determine the potential of Size? in the US market, raising issues that need to be consulted and solved, where possible. Although Size? has a more focused target consumer than Footlocker, the analysis of both brands gives a broader understanding of the competitive market spectrum.

PEST analysis gives a thorough understanding of the exterior market, increasing the brandâ&#x20AC;&#x2122;s awareness of factors that could affect the launch.

SWOT FOR SIZE? >> STRENGTHS

> Capability to attract and excite loyal customers, deliver the right product and extend reach.

> The brands competitive advantages are British style, brand exclusive collaborations and its stylish range of offer.

> Owned by financially stable JD Sports Fashion PLC.

> As a young company Size? are able to contact and relate to consumers in the most appropriate way via social networking and events.

> With both the flagship and other stores being located just off the high streets of main cities, Size? will attract footfall whilst allowing consumers to discover the brand.

> Size? understands the commitment of their consumers to the product they sell, local culture trends and how to reflect a sociable and professional attitude.

> Their strong brand philosophy is to bring the best product and knowledge to footwear addicts whilst offering a range of fashion sportswear for consumers to buy into their lifestyle.

> Ally of big brands like Nike, Adidas etc and Size? employs bloggers to represent the city.

>> WEAKNESSES > It may not have the credibility for bigger brands to acknowledge their presence as leading retailers in the US or be able to compete with large expenditures on advertising campaigns. > If the brand becomes too commercial it may lose loyal customers and its personal relationship with the consumer. > The brand may not have established a big enough profile or brand identity to gain a confident return on the Flagship Store. > The brand is always under pressure to bring out exclusives and the best products first, they will lose credibility if they start losing deals with major brands. > Best sellers will most likely be different to that in the UK so their supply chain will have to adapt quickly in order to keep up with competitors who are well established in the US market.

> Consumers may not like the British style or only visit for the flagship launch because of its initial hype. Size? needs to build a trusting relationship as the consumer isnâ&#x20AC;&#x2122;t emotionally involved with the brand and doesnâ&#x20AC;&#x2122;t recognise any reward for choosing Size? over other competitors.

> New employees may not fully understand the brands concept or identity which will affect their behaviour instore and push the consumer into the arms of other competitors. 14

>> OPPORTUNITIES > The footwear market in the US has fared well during the recessionâ&#x20AC;&#x2122; (Mintel, 2010, online) > The expansion allows Size? to push its social networking reach and employ US bloggers, bringing more to the consumer and connecting Size? customers internationally. Working with the latest social media and viral techniques will promote the brand as cheaply and efficiently as possible. > Recent technologies make sneakers available for customisation such as Nike ID and MiAdidas, giving more power to the consumer. Havaiana have also introduced a design gallery â&#x20AC;&#x2DC;to create the ultimate flip flop, customising the colour, sole and toe-post to your own design.â&#x20AC;&#x2122; (Selfridges, 2011, online)

> Size? can appeal to a wider audience, for those who like British style and are looking for fresh collaborations and exclusive clothing lines. > Taking the brand to another market will help outline major international competitors and keep size? ahead of competition elsewhere.

> Holidays such as Halloween are celebrated much more in the US than they are in the UK so Size? can push promotion and events to increase sales and interest in the brand soon after the launch.

>> THREATS > The cost of cotton continues to increase; reaching an 18-year high, due to a global shortage (keynote, 2011) this will force prices up and may change the brands financial status as sales are affected.

> Competitors will always be trying to better the latest product that others sell. > Consumers may show a lack of interest in another urban, sportswear and footwear store.

> Other brands spending more money on advertising may attract consumers away from Size?

> Sustaining internal capabilities may be difficult if key brands choose to reduce the number of collaborations they design for Size? in tough economic times. If individual brands fall into financial difficulty Size?â&#x20AC;&#x2122;s range of offer will be reduced and result in losing a competitive edge. > Although Size? has faced the biggest economic obstacle by withstanding the recession comparatively well to other brands in the UK (Bintliff, E. 2009, FT online), it will need to keep careful yet confident control of its financial profile in the US market.

SWOT FOR FOOTLOCKER >> STRENGTHS > The worldâ&#x20AC;&#x2122;s leading retailer of athletically inspired footwear and apparel. (Footlocker, 2011, online)

> Footlocker has been valued at 17 times its forecast earnings for next year (Jopson, 2011, FT online)

> Operates a directto-consumer segment through footlocker.com/Eastbay/ CCS offering athletic footwear, apparel and equipment through internet & catalogue channels (retailsails.com, 2011)

> Footlocker has a wider range of offer, appealing to all ages and both sexes. The brand also boasts worldwide associations (Footlocker, 2011, online)

> Wealth of global experience and knowledge in the sportswear and footwear markets. > 8.3% return on invested capital (Footlocker, 2011, online) < 3,426 stores in 21 countries (Footlocker, 2011, online) > Headquarters in New York, Stores in America, North America, Australia and Europe. (Footlocker, 2011, online) > Strive to act honourably, honestly and ethically. Proud and committed to serving the communities in which they live and work, with the help of the Foot Locker Foundation. (Footlocker, 2011, online)

>> WEAKNESSES > Brand sells main stream products, pushing away loyal sneaker consumers interested in exclusive and retro styles. > Footlocker can’t compete with smaller brands, who work with the more knowledgeable consumer and are an avid part of the sneaker culture. Footlocker and ‘a lot of shoe stores just profit off the shoe culture’ (Mak, 2010, online) > ‘Footlocker dominate America but they’re not as cool as they were’ (Smith, M. 2011, Interview) See Appendix). Their long lasting reputation could easily become its downfall if products, marketing and technologies become dated and familiar to the consumer. > The company is under pressure to meet financial objectives after the recession.

>> OPPORTUNITIES > The footwear market in the US has fared well during the recession (Mintel, 2010, online) > Smaller competitors don’t have the financial background to spend as much as $ 114,000 on advertising (Retailsails, 2011, online) > Recent technologies make clothes and sneakers available for customisation such as Nike ID and MiAdidas, giving more power to the consumer. Havaiana have also introduced a design gallery ‘to create the ultimate flip flop, customising the colour, sole and toe-post to your own design.’ (Selfridges, 2011, online) > Introducing less mainstream and more retro, exclusive products to some major stores will attract loyal sneaker fanatics who prefer to shop in smaller stores. > Footlocker needs to push boundaries with product development in order to create new USP’s and competition with smaller brands who specialise in that area.

>> THREATS > The cost of cotton continues to increase; reaching an 18-year high, due to a global shortage (Keynote, 2011, online) this will force prices up and may change the brands financial status as sales are affected.

> Size? entering the market wonâ&#x20AC;&#x2122;t have a huge impact on the overall sales of Footlockers in New York and Boston but they may feel a more direct competition with young males as they find the Flagship and discover its British style, unusual brands and exclusive collaborations more appealing.

> Footlocker needs to keep its sales afloat as it recovers from the economic downturn.

> Unless Footlocker keeps up to date with new technologies and services, consumers will lose interest in the brand as it becomes dated and find more innovative brands who can deliver better products in a more interesting and efficient way.

> Insurmountable weaknesses include the brand being main stream and will therefore always find it difficult to appeal to the more knowledgeable consumer, looking rare products and exclusive deals.

> â&#x20AC;&#x2DC;U.S. retail sales climbed in February by the most in four months, spurred by job gains and more seasonable temperatures.â&#x20AC;&#x2122; (Willis, 2011, online)

PEST >> POLITICAL: > Climate change and energy are two key issues that will play a significant role in shaping the future security environment.” The department of defence is actively “developing policies and plans to manage the effects of climate change on its operating environment, missions and facilities”. (Boykoff, 2011, online) > Since 1962, Congress has raised the debt ceiling on 74 separate occasions.(Guardian, 2011, online) The US government has recently its $14.3 trillion debt ceiling, which has triggered a series of “extraordinary measures” to stave off a default while politicians argue over raising the borrowing limit. (Wearden, 2011, online) > New York and Massachusetts require some level of mandatory item pricing and have unit pricing laws or regulations in force. For example: A retail store shall display the retail price of each stock-keeping unit offered for sale, either on each unit or on easy to read shelf tags, or signs, located directly above or below or immediately adjacent to every stock-keeping unit or group of stock-keeping units of the same brand, size and price. (NIST, 2011, online)

> U.S. retailers have launched a campaign to protect a new law on debit card swipe fees. Major banks and other financial institutions are against the reduction of swipe card fees and initiated an intense lobbying campaign against the new law. They also sought the postponement of the law’s implementation. (Hernandez, 2011, online)

>> ECONOMICAL > “Owners simply find no reason to be optimistic about the future and therefore they find no reason to pick up the pace of spending and hiring,” said Bill Dunkelberg, NFIB chief economist. “It’s difficult to know exactly why the outlook for small firms is in decline; but it’s a safe bet that political and economic uncertainty – about the deficit, the threat of inflation, rising energy and healthcare costs – are at top of the mind for most small-business owners.” (Bond, 2011, FT online)

> US consumer prices rose 3.2 per cent yearon-year in April, the most since October 2008, as high energy and food costs lifted core inflation. (Bond, 2011, FT online) > In spite of the squeeze on their wallets, consumers were more upbeat in early May as the outlook for jobs improved. (Bond, 2011, FT online) > The US commerce department said retail sales rose by 0.5 per cent to $389.4bn from March to April, the smallest gain in nine months following March’s revised 0.9 per cent rise. (Bond, 2011, FT online) > “As the level of imports is still much larger than exports, net external trade has been, and will remain, a drag on real economic growth,” noted Paul Dales, senior US economist at Capital Economics in Toronto. (Bond and Harding, 2011, FT online)

>> SOCIAL > Americans celebrate a variety of federal holidays and other national observances throughout the year. American holidays can be secular, religious, international, or uniquely American. (usa.gov, 2011, online) > Baseball has been regarded as the national sport since the late 19th century, even after being eclipsed in popularity by American football. Basketball and ice hockey are the countryâ&#x20AC;&#x2122;s next two leading professional team sports (Wikipedia, 2011, online) > At the same time as many internet advertisers are ramping up their web advertising efforts, the majority of US consumers say they are very frustrated by many common types of internet ads (marketing charts, 2009, online) > American public education is operated by state and local governments, regulated by the United States Department of Education through restrictions on federal grants. Children are required in most states to attend school from the age of six or seven until they turn eighteen. (Wikipedia, 2011, online) > The United States has a long history of welcoming immigrants from all over the world. USCIS is committed to helping them successfully integrate into American civic culture. (USCIS, 2011, online) > The S&P healthcare and utility sectors are up 3.2 per cent and 2.5 per cent respectively this month while the energy and materials sectors are down 7.4 per cent and 5 per cent. (Stothard, 2011, online)

>> TECHNOLOGICAL > In fresh produce, fashion and apparel, and even some electronic goods, retailers have been looking to technology to match stock with demand more effectively, and so reduce discounting and wastage. This has become more important in an environment where customers are less tolerant of stock running out, and where customer loyalty is being driven not just by price, but by service. (Pritchard, 2010, online)

> ‘Mark-down management continues to be adopted, especially in the US. Some retailers are wasting 15 per cent of revenues through mark-downs, so if you can cut that by a third, that can fix your profits.’ (Pritchard, 2010, online)

> ‘They need to provide feedback to store managers on how they are performing financially, and provide mechanisms to identify which metrics they need to be working on to drive performance in the store. Using this technology they can close the gap between the best [stores] and rest by 50 per cent in six months. But the big challenge is changing the mind set of store staff, so they know what they have to do.’ (Pritchard, 2010, online)

COMPETITION

The sportswear and footwear market is made up of local stores and internationally recognised dominants. The perceptual map outlines Sizeâ&#x20AC;&#x2122;s biggest competitors in New York. With a wealth of sneaker brands around, Size? isnâ&#x20AC;&#x2122;t short of competition but it surely stands out from the others with a local vibe but soon-to-be international profile as it moves into the US.

INTERNATIONAL

CLOTHING FOOTWEAR AND ACCESSORIES

FOOTWEAR ONLY

LOCAL 26

>> IDENTITY Size? >> as a Product: Sneakers, sportswear, accessories, colourful, on trend, stylish, quality

>> as a Person: Young, fashionable, laid back, artistic, involved in street culture, popular, knowledgeable about interests

>> as an Organisation:

>> as a Symbol:

>> as an Experience:

On trend, leaderâ&#x20AC;&#x2122;s in their field, young, for the consumer, attentive to the consumers needs, competent

Black, orange, bold, striking, simple, suggestive of product, attractive, memorable

Laid back, direct, urban, efficient

>> CONSUMER BEHAVIOUR Size? has performed well in the UK and that is a reflection of consumer behaviour. As many recent reports show, menswear and footwear have fared well in the recession. An increase in interest from young men for quality brands (Mintel. 2010, online) has been clear to JD Sports Fashion; as they concentrate on young customers, their profits continue. In footwear, retro styles and reissues are seemingly popular in fashion at the moment, with brands such as Converse, Adidas and Puma all doing what they can to keep sales afloat. (Mintel. 2009, online)

The UK consumer is conservative in store; a polite and helpful assistant is required only on greeting and when asked for. Noticeably different to the American consumer, who is exposed to daily store promotions on entry, taken to the fitting room and expects employees to represent the brand as a person in their style and knowledge.

Customer service is something that is culturally very different in the US and UK; consumers will easily recognise when they arenâ&#x20AC;&#x2122;t being treated as they should be.

In both the UK and US there are different areas which have similar groups of shops in price range and style. For example, Soho is similar to Covent Garden in the UK.

The launch of a new brand relies heavily on the service it provides in order to better its competitors.

Placing the stores in the right location is key which is why Size? will be taken to areas with successful competitors nearby. Consumers recognise the places to be in order to get the product they want.

As service in the two markets are very different, Size? will place emphasis on creating a dedicated team who represent the brand and customer service at its best, to US custom.

It’s no secret that the ‘Sneaker market is a big one in America’ (Smith. 2011, Interview) See Appendix) and so with such a large amount of competitors selling similar products and styles, something else has to stand out for the consumer. Ian Sugarman, head of retail investment banking at Morgan Stanley said

‘MOST SHOPPERS, REGARDLESS OF SOCIOECONOMIC STATUS, WANT TO BUY SOMETHING THAT SPEAKS TO A BETTER LIFESTYLE. THEY PERHAPS CANNOT AFFORD A $300 COACH HANDBAG BUT THEY ARE WILLING TO BUY A LESS EXPENSIVE COACH ACCESSORY THAT REPRESENTS THE EXPERIENCE.’ (Jopson. 2011, FT online)

Buying into a lifestyle or an experience generates brand loyalty â&#x20AC;&#x201C; something every brand wants and some succeed in having more so than others. With more impactful and engaging visual merchandising, stores become memorable to the consumer whilst communicating the products and services on offer (another aspect of the two markets that differs greatly). Size? must place emphasis on its instore retail environment, particularly in the flagship and be careful as to which exterior buildings the stores are placed in.

Due to the relatively small cash flow Size? will be entering the market with, consumers will need to be targeted through social networking and viral communications. â&#x20AC;&#x2DC;Fashion brands and retailers are starting to catch up with other online retail sectors and several are pushing the boundaries through innovative viral campaigns, with sports brand Hi-Tec launching a viral marketing campaign that gave the brand global exposure.â&#x20AC;&#x2122; (Mintel. 2011, online)

>> CONSUMER SEGMENTATION

‘EVEN THOUGH WE ALL WEAR SNEAKERS, IT IS THEIR APPROPRIATION BY CERTAIN YOUTH ‘TRIBES’ THAT MAKES THEM THE PHENOMENON THEY ARE TODAY.’ (HEARD, 2008) Alongside LA gangs and the 1950’s kids in the Converse Chucks, three main tribes have had a particular effect on sneaker sales and development. These are the urban UK Casuals, New York Hip Hop B-Boys and the Skaters. (Heard, 2008) These segmentations still exist today but not so obviously and with similar groups of consumers like urban artists, it seems new tribes are still being formed today.

Sneaker lovers will have their favourite brands and designs that allow them to do what they do best but with the vast variety of sneakers out there today, it’s hard for the consumer not to try something new.

Size? targets fashion conscious young men, aged 18-30. Consumers who know the product and will feel at home in their stores. New comers and those â&#x20AC;&#x2DC;just browsingâ&#x20AC;&#x2122; are more than welcome. The consumer Segmentation will show the target American consumer including the original New York Hip Hop BBoys and The Skaters. >>

03 COMMUNICATION STRATEGY >>

“WE HAVE NO INTEREST IN THE MASS. WE’RE ALL ABOUT VIRAL. I WANT THE BRAND TO BE DISCOVERED.” (Wyatt. 2011, FT online)

Although Size? appeals to a very different consumer, Jack Wills is an excellent comparison for the marketing strategy Size? will be taking to the US. Its stealth marketing and direct relationship with its consumers are aspects the brand is proud of. They also prioritise social media and organised events over advertising campaigns. (Greene. 2011, FT online)

Finding the consumer wonâ&#x20AC;&#x2122;t be too difficult for Size? with such an avid consumer interest in the sportswear market but â&#x20AC;&#x2DC;building the tribeâ&#x20AC;&#x2122; that Wyatt speaks of, will rely on clever marketing and communication.

>> AIM OF COMMUNICATION Size? must raise its level of brand awareness by appropriately translating its identity and lifestyle to the consumer. As Size? will later be launched in Boston, the brand will hopefully attract a number of students, extending the target consumer and giving Size? the chance to play on its British heritage.

Size? must create preference by defending against competition activity and always being one step ahead of competitors locally and internationally.

Factors to ensure the brand is a leader in its market are: using the latest technologies, having the most efficient and approachable service, selling the most recent sneaker releases, maintaining strong relationships with leading brands, rewarding loyal consumers and keeping employees satisfied, determined and brand aware.

Social networking and blogging should provide news or information of Size?’s latest releases, exclsuive clothing lines and cultural aspects such as new music and local events; in order to connect emotionally with the consumer. Communications must also increase the consumer’s intention to purchase by withstanding credible collaborations, exclusive lines, and collectable sneakers. It is imperative that sales are maintained and don’t peak too soon, to find consumers were only interested in the initial hype of a new brand. Ultimately, communication with the consumer will define their return to store and therefore sales. Size? must be recognised as the brand with the best range of offer for the target consumer. >> THE MESSAGE The message Size? wants to communicate to the consumer is that they’re a young, British fashion sportswear and footwear retailer, bringing the best product, before any other brand. The message should be communicated appropriately through social networking, like Facebook, Twitter, blogs, forums, sneaker magazines, viral and word of mouth. These channels will be used to introduce the brand into the market and enable it to be discovered, as well as updating and informing current consumers.

>> COLLABORATION As Size? will already be collaborating with a wealth of top brands, the focal US launch collaboration will be with architect Masamichi Katayama (founder of the Japanese interior design firm Wonderwall) for the design of the flagship store in Soho. Wonderwall has an extensive portfolio of designing interior retail spaces throughout the world, including footwear brands, flagships stores in Soho and even a project for Fred Perry - a popular brand Size? sells. A “total concept” designer, Katayama is the ideal choice for the brands collaboration (Wonder-wall. 2011, online). Expanding Size?’s presence and identity in its new and competitive market, the launch will be anticipated and create press and brand recognition. The opening of the flagship will take place next October, post New York fashion week and pre-Halloween. This will enable the brand to establish a presence in the market and promote for the popular holiday season as they have done previously in the UK. The success of both stores, Soho and Brooklyn, will be measured by tracking footfall, sales figures and the number of guests attending promotional events.

FLAGSHIP INSTORE >>

The flagship will be a playhouse for the brands identity with additional production elements such as sofas, hanging orange light bulbs and a sneaker conveyor belt. The concept is a â&#x20AC;&#x2DC;hightech homeâ&#x20AC;&#x2122; allowing the consumer to feel comfortable but not familiar, like other stores. Dominant areas for exclusive clothing and footwear will create an environment the consumer will want to discover, reflecting the brands intentions in its new market.

MARKETING MIX >> PRODUCT Size? will be reissuing the exclusives products it sold in the UK for its tenth birthday in 2010. Exclusive products include: thirtyeight shoes (in different colour ways & from different brands), six track tops, six tees & two books. The brands that Size? collaborated with are as follows: Nike, Reebok, Adidas Originals, Trainerspotter, Puma, Converse, Fred Perry and SoleProvider (book).

Both stores will launch with the full UK collection, soon after reviews on which products arenâ&#x20AC;&#x2122;t selling will take place and they will be taken out of the range. The exclusive 10th anniversary range will be sold for a limited period of time running up to the Christmas period, after the Halloween holiday.

Size? will constantly push relationships with key brands such as Nike, Adidas, Puma and lesser known, more rare brands such as Head Porter Plus and Acronym to give the store exclusive product. As the online survey suggests (see appendix) consumers are more likely to visit store if they have an exclusive celebrity collaboration sneaker. This idea can be developed further once the brand has established a foothold in the US market place.

>> PLACE â&#x20AC;&#x2DC;People will travel but its good to be where others are because you want randoms in addition to your regulars. Anywhere with a lot of people is a good locationâ&#x20AC;&#x2122; (DQM (2005) in Sneaker Freaker The Book 2005)

The flagship store will be positioned in the stylish and popular district of Soho. Scattered with an array of flagship stores such as Uniqlo, Alexander Wang, Converse, Hollister and many more, Soho is the perfect location for Size? to mark its territory.

In addition to the flagship opening in Soho, Size? will also introduce a store into Brooklyn. Size? likes to be slightly underground, main stream in recognition but not so much that is scares their knowledgeable consumer away.

Brooklyn is ripe with artists, musicians and of course, sportswear and sneaker stores, so it seems like the ideal place to launch Size?â&#x20AC;&#x2122;s smaller, but perhaps more locally influential store. Connecting with local communities and creating long lasting relationships with consumers can make a stores future and so the Brooklyn branch needs to be more intimate with its consumers than the Soho, flagship store.

As well as two stores in New York, Boston will also be targeted by Size? as it opens another three or four stores throughout the following year. With its European feel and layout, top universities and the place where both Microsoft and Facebook were born, Boston is full of creatives, students and Sizeâ&#x20AC;&#x2122;s target consumer. Following competitors positioning, Size? will be placed in and around central Boston and Cambridge.

>> PRICE The price positioning of Size? in the US will remain midmarket, with select items reaching premium prices. Accessories: $4 - $325 Footwear: $40 - $290 Clothing: $16 - $535 Prices fluctuate between brands, styles and exclusivity. Size? will be entering the market aware of its similar price points to major competitors. Due to the current economic climate, price points and Size?â&#x20AC;&#x2122;s financial return will be carefully considered at all times.

>> PROMOTION

Size? aims to create interest for the brand over the year leading up to the official launch; intriguing and capturing loyal consumers before the stores even open. To do this Size? will initially create Facebook and Twitter pages for the US.

They will employ a dedicated team to connect to local consumers and communities. The team will organise local music, sneaker and artist events and competitions. For example, local and national graffiti artists will be invited to participate in an in-store competition in an effort to win the audience over and have their work sold in store. Videos of the events will be posted on you tube to gain viral recognition.

There will be a launch party for the flagship one week prior to the public opening of the store on October 6th 2012. Guests at the event will include the Size? team, Masamichi Katayama and contributing members of the Wonderwall firm, press, members of the trade, musicians, B-Boy dancers and sneaker lovers and collectors.

The local events will focus on building interest and a loyal consumer base to the stores in Brooklyn (and soon after, Boston) as the flagship collaboration with Wonderwall in Soho will generate far more promotion on its own. A press releases will be sent to magazines such as WWD and SneakerFreaker for all store openings.

The event will not only be celebrating the flagship store creation but the smaller additional store in Brooklyn. Reissuing the exclusive 10th anniversary products will generate interest in the brand and improve its credibility in the US market.

04 SUMMARY AND RECOMMENDATIONS >> To summarise the report, Size? would benefit strongly from moving to the American market; opening a flagship in New York, a store in Brooklyn and soon after, stores in Boston. Although there are many competitors, Size? can take the edge against local and international brands with its British heritage and exclusive collaborations and clothing brands. The collaboration and low cost marketing strategies will boost the launch, creating interest and driving sales.

If the New York and Boston stores are successful Size? will look into collaborating with a third party internet provider to open an online shop to all of the US. This way Size? will be able to track orders and pinpoint the next states to expand the brand into. Size? will explore celebrity collaborations and will continue to promote using cost effective viral campaigns of events and competitions. This will save cash flow to be used for instore technologies, such as customisation design studios.

05 REFERENCES AND BIBLIOGRAPHY >>

RATIONALE FOR BRAND (Keynote. 2011, online) (O’Doherty. 2010, FT online) (Owen. 2011, Online) (Twitter. 2011, online) (Mintel. 2010, online) SWOT ANALYSIS – SIZE? Opportunities (Mintel, 2010, online) (Selfridges, 2011, online) Threats (Keynote, 2011, online) (Bintliff, E. 2009, FT online)

SWOT ANALYSIS – FOOTLOCKER Strengths (Footlocker, 2011, online) (Jopson, 2011, FT online) (retailsails.com, 2011) (Footlocker, 2011, online) (Footlocker, 2011, online) (Footlocker, 2011, online) (Footlocker, 2011, online) (Footlocker, 2011, online) (Footlocker, 2011, online) Weaknesses (Mak, 2010, online) (Smith, M. 2011, Interview) See Appendix) Opportunities (Mintel, 2010, online) (Retailsails, 2011, online) (Selfridges, 2011, online) Threats (Keynote, 2011, online) (Willis, 2011, online)

PEST ANALYSIS Political (Boykoff, 2011, online) (Guardian, 2011, online) (Wearden, 2011, online) (NIST, 2011, online) (Hernandez, 2011, online) Economical (Bond, 2011, FT online) (Bond, 2011, FT online) (Bond, 2011, FT online) (Bond, 2011, FT online) (Bond and Harding, 2011, FT online) Social (usa.gov, 2011, online) (Wikipedia, 2011, online) (marketing charts, 2009, online) (Wikipedia, 2011, online) (USCIS, 2011, online) (Stothard, 2011, online)

Technological (Pritchard, 2010, online) (Pritchard, 2010, online) (Pritchard, 2010, online)

COMMUNICATION STRATEGY (Wyatt. 2011, FT online) (Greene. 2011, FT online) (Greene. 2011, FT online)

COMPETITOR ANALYSIS (ClassicKicks (2005) in Sneaker Freaker The Book 2005)

COLLABORATION (Wonder-wall. 2011, online).

CONSUMER BEHAVIOUR (Mintel. 2010, online) (Mintel. 2009, online) (Smith, M. 2011, Interview) See Appendix) (Jopson. 2011, FT online) (Mintel. 2011, online)

MARKETING MIX (DQM (2005) in Sneaker Freaker The Book 2005)

CONSUMER SEGMENTATION (Heard, 2008) (Heard, 2008)

>> BIBLIOGRAPHY Books Wood, S. 2005. Sneaker Freaker The Book. New York: Penguin Group (USA). Hear, N. 2008. Trainers. Carlton Book Limited: London Additional Sources Interview: Smith, M. 2011. Ex President of Claires Accessories, 14 May 2011) Online Websites and Articles: Anon, 2011. Men’s Fashion and Lifestyles – UK. Mintel Group. Available at: http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=545463&anchor=atom#atom0 Anon, 2011.Fashion Online – UK. Mintel Group. Available at: http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=545448&anchor=atom#atom0 Anon, 2010, Sports Clothing & Footwear Market Report. Key Note Limited. Available at: http://www.keynote.co.uk/market-intelligence/view/product/10412/sports-clothing-%26footwear?highlight=size%3F&utm_source=kn.reports.search Anon, 2010, Sports Market Market Review. Key Note Limited. Available at: http://www.keynote.co.uk/market-intelligence/view/product/2361/sports-market?utm_source=kn.reports.browse Anon, 2010.Youth Fashion – UK. Mintel Group. Available at: http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=480974&anchor=atom#atom0

Anon, 2010.Clothing Retailing– UK. Mintel Group. Available at: http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=479925&anchor=atom#atom0 Anon, 2010. Footwear Retailing – UK. Mintel Group. Available at: http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=479829&anchor=atom/display/id=541067 Anon, 2009. Sports Clothing and Footwear – UK. Mintel Group. Available at: http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=394601&anchor=atom/display/id=479633 Anon, 2011. Sizeupdates. Twitter Inc US. Available at: https://twitter.com/#!/sizeupdates Anon, 2011. JD considers buying JJB. Mintel Group. Available at: http://academic.mintel.com/sinatra/oxygen_academic/news/view=company&levels=518457,4809547&page=3/ display/id=11837/display/id=563697 Anon, 2010. Footwear – US. Mintel Group. Available at: http://oxygen.mintel.com/sinatra/oxygen/display/id=482983 Anon, 2011. Havaianas Shoe Gallery. Selfridges and Co. Available at: http://www.selfridges.com/ en/StaticPage/SG-Havaianas/ Anon, 2006. Boston Sneaker Stores. Jelsoft Enterprises Ltd. Available at: http://hypebeast.com/forum/showthread.php?t=3778 Anon. 2010. Bodega stays afloat during recession. Wordpress.com. Available at: http://agulizia. wordpress.com/2010/12/13/bodega-stays-afloat-during-recession/ Anon, 2010. HIV in the United States: An Overview. Usa.gov. Available at: http://www.cdc.gov/hiv/topics/surveillance/resources/factsheets/us_overview.htm

Anon, 2011. American Holidays. Usa.gov: Available at: http://www.usa.gov/citizens/holidays.shtml Anon, 2009. Majority of US Consumers Peeved by Internet Ads. Watershed Publishing. Available at: http://www.marketingcharts.com/television/majority-of-us-consumers-peeved-by-internet-ads-9873/ Barrett, C and Wembridge, M. 2011. JD Sports maintains cautious stance. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/c8d9e57a-65a6-11e0-baee-00144feab49a.html#axzz1MbeawbJ8 Bintliff, E. 2009. JD Sports confident over prospects. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/fcf8d772-de79-11de-89c2-00144feab49a.html#axzz1MbeawbJ8 Bond, S. 2011. Petrol costs push up US inflation. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/00e250d0-7d5b-11e0-bc41-00144feabdc0.html#axzz1MvpKYvvb Bond, S. 2011. Mixed US economic picture as jobless claims fall back. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/20f33df0-7c91-11e0-b9e3-00144feabdc0.html#axzz1MvpKYvvb Bond, S and Harding, R. 2011. Surging oil prices nudge up US trade deficit. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/60ea97fe-7bc5-11e0-9298-00144feabdc0.html#axzz1MvpKYvvb Bond, S and Harding, R. 2011. US wholesale sales surge in March. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/851dc70e-7afd-11e0-991a-00144feabdc0.html#axzz1MvpKYvvb Greene, L. 2011. Pretty, posh and profitable. The Financial Times Ltd. Available at: http://www.ft.com/cms/s/2/fcca7ebc-7ce4-11e0-a7c7-00144feabdc0.html#axzz1MbeawbJ8

Boykoff, J. 2011. US military goes to war with climate sceptics. Guardian News and Media Limited. Available at: http://www.guardian.co.uk/commentisfree/cifamerica/2011/may/20/climate-change-climate-changescepticism Hernandez, V. 2011. U.S. retailers launch campaign to protect new law on debit card swipe fees. Gantdaily.com. Available at: http://gantdaily.com/2011/05/20/u-s-retailers-launch-campaign-to-protect-new-law-on-debit-cardswipe-fees/ Jopson, B. 2011. Investors back wealthy US shoppers. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/b4b1ab82-7f23-11e0-b239-00144feabdc0.html#axzz1MbeawbJ8 Kealoh, A. 2009. The 225 Forest Store. Captain Lucas inc. Available at: http://www.coolhunting.com/style/the-225-forest-1.php Kuchler, H. 2009. Best foot forward as Office seeks buyer. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/374b0d2a-8571-11df-aa2e-00144feabdc0.html#axzz1MbeawbJ8 Oâ&#x20AC;&#x2122;Doherty, J. 2010. JD Sports warns of inflationary pressures. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/3bea1d6c-c54a-11df-9563-00144feab49a.html#axzz1MbeawbJ8 Owen, E. 2011. JD Sports profits soar 28% and plans European expansion. Haymarket Business Media. Available at: http://www.brandrepublic.com/news/1065343/JD-Sports-profits-soar-28-plans-European-expansion/ Pritchard, S. 2010. Technology: Good analysis and use of data can make all the difference. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/18b9ea4a-4b59-11df-a7ff-00144feab49a,dwp_uuid=b5700bb0-4b60-11df-a7ff00144feab49a.html#axzz1MvpKYvvb 60

Sothard, M. 2011. Energy and materials lift Wall Street. The Financial times Ltd. Available at: http://www.ft.com/cms/s/0/9c2462f4-8157-11e0-9360-00144feabdc0.html#axzz1MvpKYvvb Teslik, L.H. 2008. Iraq, Afghanistan and the US Economy. Council on Foreign Relations, Inc. Available at: http://www.cfr.org/afghanistan/iraq-afghanistan-us-economy/p15404 Watson, L. 2009. New Shizzle. Size. Available at: http://sizestores.co.uk/manchester/category/new-shizzle/ Wearden, G. 2011. US hits $14.3tn debt ceiling. Guardian News and Media Limited. Available at: http://www.guardian.co.uk/business/2011/may/16/us-government-hits-debt-ceiling Willis, B. 2011. US retail stats and info. Bloomberg L.P. Available at: http://www.bloomberg.com/news/2011-03-11/retail-sales-in-u-s-rose-1-in-february-most-in-fourmonths-on-job-gains.html

06 APPENDIX >>

06 APPENDIX >> TELEPHONE INTERVIEW WITH MARK SMITH, EX PRESIDENT OF CLAIRES ACCESSORIES > What do you know the footwear market in America? The sneaker market is a big one in America – big players are Nike, Footlocker, Adidas etc . If you’re going to launch a new brand, you have to get it right. > What does the American market look like for UK brands looking to move there? America is a graveyard for British Retailers, M&S, hugely successful in UK, tried and failed in America like numerous others. The US is such a vast country with such a powerful market; make it a profitable business. > Is opening a flagship store commercially viable? Size? is a relatively small brand in the UK so the flagship in America doesn’t have to be huge. Although they do make everything bigger in America, bigger square footage because of the cheaper rental space but then you have to fill more wall with a range of offer. The flagship won’t bring money in unless you have built a brand profile and identity. > Would you consider footlocker to be a main competitor of Size? Footlocker dominate America but they’re not as cool as they were so place if Size? is placed near one of their stores, it will create competition and attract the footfall from footlocker. > What recommendations do you have to generate cheap publicity? Notify the public and trade that you are looking for managers and staff to generate interest.

>> ONLINE QUESTIONNAIRE (SURVEYMONKEY.COM) > What age category do you fit and what sex are you? > Have you heard of the brand Size? > If you shop there, what do you most often buy? > Who do you think the brand targets the most? > If Size? were to move to the American market, where do you think it would be best suited? Please explain your answer. > Who do you consider to be the brands biggest competitors in the UK? > Who would you consider to be the brands biggest competitors if they were to move to the USA? > Do you think the brand Size? would stand out against American competitors? > If Size? were to move to the US who do you think would be best suited to collaborate with and endorse the brand? > If Size? were to move to the American market, would a promotional deal with a major sneaker brand make you want to shop there? For example, if Nike were to bring out a new limited edition style that would only be sold in Size? stores, would you be more interested in visiting?