MANTHRO by Paige Homberg

Introducing.. .

M A N T H RO . . Menswear By:

Table of Contents Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Company Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Market Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Target Consumer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Four Pâ&#x20AC;&#x2122;s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Works Cited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Executive Summary MANTHRO is apart of the Anthropologie lifestyle that inspires the modern man. MANTHRO aims to encourage men to create individuality within their personal style. Anthropologie prides itself on its “unimagined” shopping experience; this is exactly what MANTHRO extends to the male customer with a personalized soundtrack, scent, and atmosphere. MANTHRO will carry a variety of stylized basics that cater to the contemporary consumer’s daily needs. MANTHRO combines the present and the past to create styles that are versatile yet timeless. In the future, MANTHRO hopes to open its own locations in order to provide a greater variety of products to the consumer. Through this, the company can reach a wider demographic and boost revenue. MANTHRO products are of higher quality therefore they sell at a higher price point; the emergence of a similar brand with lower prices could threaten MANTHRO’s customerbase and profits.

HISTORY OF ANTHROPOLOGIE

1970

1992

URBN was founded by Cick

The first Anthropologie

Hayne in 1970 near the

store opened in October in

University of Pennsylvania

Waynes, Pennsylvania.

campus in Philadelphia, Pennsylvania.

1998

2009

Anthropologie launched the

Anthropologie opened its first

catalog along with its website.

international stores in Canada and in the UK.

(â&#x20AC;&#x153;URBAN OUTFITTERS, INC.â&#x20AC;?)

mission statement

“Lifestyle merchandising is our business and our passion. e goal for our brands is to build a strong emotional bond with the customer. To do this we must build lifestyle environments that appeal emotionally, and oﬀer fashion correct products on a timely basis.” (“URBAN OUTFITTERS, Inc”)

ownership structure Anthropologie is traded publicly on the NASDAQ as URBN. 29.85% of shares are held within the URBN company 70.15% of shares are held by exterior individuals invested through companies such as MFS Investment Management K.K., The Vanguard Group Inc., and State Street Corporation. Market Capitalization is 5.05 billion shares. URBN stock is worth $38.96 a share as of February 27, 2015. (“Urban Outfitters Inc. (URBN)”).

CURRENT REVENUE Anthropologie made a total of $150 million in 2014. (“URBAN OUTFITTERS, INC.”)

FUTURE GROWTH PLANS Anthropologie plans to open approximately 13 more stores in the fiscal 2015. Anthropologie launched a full website redesign along with a mobile app in 2014. They will continue using new technology to reach out to consumers and improve sales. (“URBAN OUTFITTERS, INC.” ) 11

SWOT ANALYSIS Anthropologie prides itself on providing an individualized experience for its target consumers. Customers often find themselves going back to Anthropologie because of the unique store atmosphere and wide range and assortment of products, giving Anthropologie a loyal customer base. MANTHRO will tap into Anthropologie’s pre-existing customer loyalty to provide a personalized environment for a new demographic: males. The “Anthropologie woman” has a specific male counterpart and that is who MANTHRO will be targeting. One of Anthropologie’s weaknesses is its focus on women’s sales. MANTHRO will be able to strengthen the brand by opening Anthropologie’s doors to men. By creating this brand extension, Anthropologie will create new opportunities and expand into new markets. MANTHRO addresses Anthropologie’s weakness and turns them into an opportunity for the company (URBAN OUTFITTERS, INC.).

Strength

• Strategic brand positioning • Loyal customer base • Wide range/assortment of products • Unique store atmosphere • Multiple retail chains • Steady sales growth from year to year with no debt

Opportunity • Expansion to new markets • Globalization • Product and service expansion • Market take over • New channels of

Weakness

• Niche target audience • Only focuses on women • Limited sizes • Company youth

Internal Factors

Threats • Economic downturn • Direct competition • Increased manufacturing costs

External Factors

• Lower cost competitors • Product substitution

distribution

Positive

Negative

Current Positioning in Market competitors Urban Outfitters Free People GAP Madewell BB Dakota Tracy Reese Ella Moss Lucky Brand Olive + Oak

Perceptual Map high price

low accessibility

high accessibility

low price

*See Appendix A

Competitive Landscape Analysis M A N T H RO .

competitors Urban Outfitters Banana Republic Patagonia The Kooples Surfside Supply Co. Grayers Publish Kit and Ace Scotch & Soda

Perceptual Map high price

low accessibility

high accessibility

low price

*See Appendix B

Market Positioning Analysis Anthropologie positions itself in a niche market. It consider itself the equivalent to a specialty store, although their competitors are big name brands. Because of Anthropologieâ&#x20AC;&#x2122;s low accessibility, MANTHRO hopes to increase distribution and sales by reaching a new demographic. MANTHRO plans to stay in line with Anthropologieâ&#x20AC;&#x2122;s current position in the market. MANTHRO will bring new competitors to Anthropologie, putting its name on the radar for menswear.

Channels of Distribution Brick and Mortar: Total: 187 Stores in US: 174 Stores in Canada: 9 Stores in UK: 4 Sales Volume: 69%, $854, 014

Online Stores:

Total: 2 North American website UK website Sales Volume: 21%, $261,954

:Mobile

1 mobile app Sales Volume: 10%, $121,502

(“URBAN OUTFITTERS, INC.”) 20

Annual Spending Figures URBN spends approximately $91.6 million on advertising as of fiscal 2014, which is 3% of total revenue. Anthropologie, Inc. spends approximately $36.5 million a year on advertising as of 2014. (“URBAN OUTFITTERS, INC.”)

Current Advertising Activities Social Media Twitter Facebook Pinterest Instagram

2 Catalogs (US & UK)

Digital Website Blog

Promotional Events Fashion Show In-store Birthday Parties Pop-up Markets DIY Workshops Earth Day Events Pet Adoption Events

(â&#x20AC;&#x153;Anthropologieâ&#x20AC;?)

Size of the Market Apparel in the US The United States apparel retail industry grew by 4.3% in 2014 to reach a value of $371.2 billion. (“Apparel Retail”)

Menswear Apparel in US The United States menswear market grew by 6.5% in 2014 to reach a value of $126.9 billion. (“Mens Apparel Retail”)

Key Players

Apparel in US and Menswear in US The Gap, Inc. H&M Nordstrom, Inc., The TJ Companies, Inc (“Apparel Retail”, “Mens Apparel Retail)

Target Consumer

Demographic Segmentation About 4 in 10 men (39%) say they “love or enjoy clothes shopping,” up from 30% from five years ago, according to the Cotton Incorporated Lifestyle Monitor (“In A Man’s World”). According to research on the target consumer of Anthropologie, we have come up with the demographics of a male consumer for the brand extension of MANTHRO.

Age: 28-45 years old

Gender Male

Relationship:Status Married or in a committed relationship

Income $58,000-90,000 (“Women and Leadership”) 27

Psychographic Segmentation According to on our research on the target consumer of Anthropologie, we have come up with a lifestyle for MANTHRO’s consumer. The target consumer most likely works in a creative field but will also be a homemaker. He enjoys traveling, cooking, gardening, and exercising. He is open minded and has a “do it yourself ” attitude. The MANTHRO consumer lives an all natural and organic lifestyle (“Women and Leadership”).

Shopping Habits

Males between the ages of 13 to 34 are more to shop at specialty stores in comparison to older men (“In A Man’s World”). MANTHRO will work to make its shopping enviroment feel unique, like a speciality store, to please the target consumer.

Technology Usage

More than 6 of 10 (63%) men browse the internet for apparel (“In A Man’s World”).

Online shopping

Gen X men, ages 31 to 49 in 2014, shopped 90 minutes both in-store and online, while Millennials spent 98 minutes instore and 99 minutes online (“In A Man’s World”).

Customer Profile

The Hipsterâ&#x20AC;? Graham Bohling Age: 27 Home: San Fransico, California Occupation: CEO of a profitable app that combines exercise in an eco-friendly environment Income: $58,000 Education: University of Vermont

During the week, Graham runs his business in a renovated garage space. On the weekends, he enjoys kayaking and hiking. He is in a committed relationship with a girl whom he met at a music festival. The two of them spend their weekends going to see local bands and trying new restaurants around town. They are always up for an adventure and a unique shopping experience.

â&#x20AC;&#x153;The Hippieâ&#x20AC;? Oliver James Age: 36 Home: Newport, Rhode Island Occupation: Owner of a successful landscaping company Income: $90,000 Education: University of Denver

Oliver had a love for the outdoors at a young age. His outdoor enthusiasm helped him start up his own landscaping company. Oliver met his wife at the farmers market, where she sold her prize winning squash. They spent the beginning of the relationship traveling the world and becoming cultured. Now, they have a five year old son and a baby girl on the way. In his free time, Oliver attends yoga classes with his wife and loves spending quality time with his son. The James family frequently finds themselves shopping at small boutiques and antique shops for their personal needs.

Product Strategy

The first MANTHRO collection for Spring/Summer 2016 is inspired by nature and the influence of the 1970’s. This collection features a retro take on a modern lifestyle as seen in the moodboard on the following page. MANTHRO combines ecofriendly textiles and stylized basics to create a smart and casual way of dressing. These designs were created based on research from current trend reports for Spring/Summer 2016 and the study of men’s street style.When creating this collection, the aesthetic elements of Anthropologie were taken into account. MANTHRO’s Spring/Summer 2016 line is casual, welcoming, and comfortable. It combines youthful concepts with classic tailoring. The products that will be offered are long and short sleeve button downs, crew neck and v-neck T-shirts, pants, shorts, hoodies and light jackets. These assortments were chosen based on our competitive analysis while keeping in mind our target customer. *See Appendix C

Color Inspiration The first MANTHRO collection for Spring/Summer 2016 follows a clear color story inspired by antique architecture and natural horizons. The colors combine present and the past to create collaboration within the collection. This palette incorporates warm neutral tones and cool misty blues. MANTHRO looked at current trends and color forecasts from WGSN to produce this color scheme (Hall).

Spring/Summer 2015 Collection

Pricing Strategy MANTHRO provides high quality products, leading to a higher price point. In order to stay true to brand, MANTHRO will position themselves next to Anthropologie. Products will average around $150 to stay in line with our direct competition, including Scotch & Soda, Grayers, and Kit and Ace. MANTHRO uses a comparative pricing model and will work to keep up with its top competitors.

Jackets $200- $250

Hoodies $90 - $140

Crew Neck Tshirt $55- $75

Pants

$175- $225

Short sleeve buttondown $100- $125

Shorts Long sleeve buttondown

$100- $150

$125- $175

V Neck Tshirt $55- $75

Placement Strategy To kickstart the brand extension, MANTHRO’s products will be sold in Anthropologie’s top 50 highest producing stores. Part of the Anthropologie store will be decorated and sectioned off to showcase MANTHRO’s new line of clothing. By choosing to selectively locate MANTHRO in Anthropologie’s top producing stores, it will enable Anthropologie to test out its products and see how consumers will respond. In the future, once revenue is created, MANTHRO will expand to its own stores properly displaying the products in an inviting environment for the modern man. In addition, MANTHRO products will be open for purchase on the Anthropologie website and app to increase sales and widen our demographic.

TopTenProducing Stores 1. NY, NY (Chelsea Market) $13.9 million 2. Los Angeles, CA $11.6 million 3. NY, NY (Rockerfeller Center) $11.1 million 4. Portland, OR $9.3 million 5. Seattle, WA $9.5 million 6. Short Hills, NJ $8.8 million 7. Santa Monica, CA $8 million 8. Dallas, TX $7.7 million 9. Las Vegas, NV $7.2 million 10. Chicago, IL $7 million

(“URBAN OUTFITTERS, INC.”)

Promotional Strategy Consumers would know about MANTHRO through the help of Anthropologieâ&#x20AC;&#x2122;s loyal customer base. Anthropologie will publicize the new addition of MANTHRO through its Twitter and Instagram. Several times a week, Anthropologie will update their accounts with new pictures of MANTHRO items and other promotional images. At Anthropologieâ&#x20AC;&#x2122;s top producing stores, there would be an event/ launch party letting consumers know about the new MANTHRO products. Loyal customers would be sent an invitation in the mail inviting them and their significant other or male friends to come. At the launch party, guests would be to encouraged use the hashtag #ManthroMan and which appear on social media, letting others know about the new addition of MANTHRO to the Anthropologie brand. Guests who attended the party will receive a 15% off coupon to use on their next purchase as well as a mustache grooming kit branded with the MANTHRO logo. where members will receive benefits and promotions.

In addition to the launch party and social media posts, emails would also be sent out introducing MANTHRO and the list of services that it will provide. In the email, a link will be provided to sign up for a MANTHRO card, where members will receive benefits and promotions. To get the word out, MANTHRO will showcase advertisements in Esquire, GQ, Food & Wine, Rolling Stones, Readerâ&#x20AC;&#x2122;s Digest, and Wired. These advertisements will be editorial spreads exhibiting the MANTHRO Spring Summer 2016 Collection. Spreads will be shot in the mountains of Switzerland and the red rocks of Nevada. The spreads will stay true to the brand by showing some of the inspiration for the collection through the landscapes.

M A N T H RO .

MANTHRO opens the doors for Anthropologie to extend its lifestyle brand to a new demographic. Anthropologie will provide the foundation for MANTHRO to grow because of its pre-established loyal customer base. Because of this brand extension, both men and women will participate in the Anthropologie aesthetic experience. MANTHROâ&#x20AC;&#x2122;s collection modernizes classic styles by providing a variety of new fabrics. MANTH will position itself competitively against similar MANTHRO brands while still staying true to Anthropologieâ&#x20AC;&#x2122;s precisely tailored philosophy.

Works Citied “Anthropologie.” Welcome to. Web. 20 Feb. 2015. <http://www.anthropologie.com/anthro/index.jsp>. “Apparel Retail in the United States.” (2014): 2. Reference USA. Web. 16 Feb. 2015. Hall, Jason. “Login - WGSN Fashion Trend Forecasting and Analysis.” WGSN Fashion Trend Forecasting and Analysis. WGSN, 14 Oct. 2014. Web. 28 Feb. 2015. “In a Man’s World | Cotton Lifestyle Monitor.” Cotton Lifestyle Monitor. N.p., n.d. Web. 18 Feb. 2015. <http://lifestylemonitor.cottoninc.com/in-a-mans-world/>. “Mens Apparel Retail in the United States.” (2014): 2. Reference USA. Web. 16 Feb. 2015. “URBAN OUTFITTERS, INC. Annual Report.” One Source. 2014. Web. 16 Feb. 2015. <http://globalbb.onesource.com/web>. “Urban Outfitters, Inc. (URBN).” NASDAQ.com. N.p., n.d. Web. 01 Mar. 2015. <http://www.nasdaq.com/symbol/urbn>. “Women and Leadership.” Pew Research Centers Social Demographic Trends Project. RSS. N.p., n.d. Web. 28 Feb. 2015. 48

Appendix A Anthropologie Price Analysis

revolveclothing.com, Bloomingdales

1. Anthropologie ($211.34)

(estore + 75), asos.com, amazon.com

a. Pants: $153 ($78- $228)

4. Gap ($56.66)

b. Shirts: $168 ($38- $298)

a. Pants: $56.50 ($49- $64)

c. Dresses: $313 ($128- $498)

b. Shirts: $44.50 ($25- $64)

d. Accessibility: 175

c. Dresses: $69 ($59-$79)

e. 174 stores in the US+Anthropologie.

d. Accessibility: 969

com e-store

e. 968 stores in the US+ Gap.com e-store

2. Urban Outfitters ($126.84)

5. Madewell ($164.34)

a. Pants: $94 ($39- $149)

a. Pants: $166.50 ($85- $248)

b. Shirts: $79 ($39-$119)

b. Shirts:$97 ($79- $115)

c. Dresses: $207 ($39- $376)

c. Dresses:$230 ($90- $370)

d. Accessibility: 177

d. Accessibility: 89

e. 176 stores in the US+Urban Outfitters

online store

e. 87 stores in the US+Madewell online

store+Shopbop.com

3. Free People ($195.67)

6. BB Dakota ($111.34)

a. Pants: $148 ($78-$218)

a. Pants: $124.50 ($79- $170)

b. Shirts: $74 ($30-$268)

b. Shirts: $91.50 ($40- $143)

c. Dresses:$265 ($30- $500)

c. Dresses: $118 ($60- $176)

d. Accessibility: 1,139

d. Accessibility: 1,123

e. Free People (e-store + 88), Macyâ&#x20AC;&#x2122;s

e. BB Dakota (e-store + 1000) , zappos.

(e-store +850 ), Nordstrom (e-store

com, shopbop.com, revolveclothing.com,

+ 118), zappos.com, shopbop.com

Nordstrom (e-store + 118)

7. Tracy Reese ($333)

e. Ella Moss (e-store + 3), shopbop.com,

a. Pants: $313 ($228 - $398)

Anthropologie (e-store + 174),

b.Shirts: $263 ($498 - $288)

Bloomingdales (e-store + 75), Neiman

c. Dresses: $423 ($248- $598)

Marcus (e-store +41 ), Nordstrom

d. Accessibility: 413

(e-store + 118), Saks Fifth Avenue

e. E-store, Anthropologie (e-store +174 ),

(e-store +361)

Nordstrom (e-store + 118), Neiman

10. Olive + Oak ($63)

Marcus (e-store + 41), Bloomingdales

a. Pants: $61 ($64 - $58)

(e-store + 75)

b. Shirts: $56 ($48- $64)

8. Lucky Brand ($102.42)

c. Dresses: $72 ($68- $76)

a. Pants: $118.75 ($69.50- $168)

d. Accessibility: 196

b. Shirts: $84.25 ($69.50- $99)

e. E-store, Nordstrom (e-store + 118),

c. Dresses: $104.25 ($79.50- $129)

Bloomingdales (e-store + 75)

d. Accessibility: 1,643

e. Lucky Brand (e-store + 247), Macyâ&#x20AC;&#x2122;s

(e-store +850 ), zappos.com, Nordstrom

(e-store + 118), Dillards (e-store + 347*),

Bloomingdales (e-store + 75)

9. Ella Moss ($183)

a. Pants: $153 ($148- $158)

b. Shirts: $163 ($98- $228)

c. Dresses: $233 ($198- $268)

d. Accessibility: 779

Appendix B MANTHRO Price Analysis

b. Pants: $207.50 ($170.00- $245.00)

1. MANTHRO ($149.20)

c. Jacket: $467.50 ($265.00- $670.00)

a. Shirts: $107.50 ($65-$150)

d. Accessibility: 37 (19 carry menâ&#x20AC;&#x2122;s wear)

b. Pants: $165 ($130-$200)

e. Nordstrom: 8, Bloomingdales: 19, Saks:

c. Jacket: $175 ($120-$230)

4, Own store: 5

d. Accessibility: 50

6. Surfside Supply Co. ($107.00)

2. Urban Outfitters ($112.32)

a. Shirts: $86.50 ($48.00- $125.00)

a. Shirts: $78.99 ($39.99- $118.00)

b. Pants: $103.00 ($88.00- $118.00)

b. Pants: $78.99 ($39.00-$118.00)

c. Jackets: $131.50 ($98.00- $165.00)

c. Jacket: $178.99 ($59.99- $298.00)

d. Accessibility: 26

d. Accessibility: 183 (counting website)

e. Nordstrom: 25 and website

3. Banana Republic ($97.91)

7. Grayers ($140.70)

a. Shirts: $90.00 ($55.00- $125.00)

a. Shirts: $106.50 ($78.00-$135.00)

b. Pants: $79.25 ($60.00-$98.50)

b. Pants: $155.50 ($88.00- $135.00)

c. Jacket: $124.50 ($69.00- $180.00)

c. Jackets: $160.00($145.00 - $175.00)

d. Accessibility: 555 (counting website)

d. Accessibility: 150

4. Patagonia ($125.67)

e. Nordstrom Stores (78) Nordstrom

a. Shirt: $69.00 ($39.00- $99.00)

Online (1) South Moon Under (17) L&T

b. Pants: $134.00 ($69.00- $199.00)

(1) Boutiques (53)

c. Jackets: $174.00 ($99.00- $249.00)

8. Publish ($94.00)

d. Accessibility: 338

a.Shirts: $50.00 ($40.00 - $60.00)

5. The Kooples ($272.50)

b. Pants: $85.00 ($74.00- $96.00)

c. Jackets: $147.50($120.00 - $175.00)

a. Shirts: $142.50 ($75.00 - $210.00)

d. Accesibility: 304

e. Nordstrom (116) + online URBN (176)

+ Online, Revolve Clothing (1)

9. Kit and Ace ($113.00)

a. Shirts: $84.00 ** Offer select

Merchandise, so not a big price gap

b. Pants: $148.00

c. Jackets: $108.00

d. Accessibility: 3

e. Kit and Ace Stores Canada (5) US (2) +

online 10. Scotch & Soda ($156.00)

a. Shirts: $107.00 ($95.00 - $119.00)

b. Pants: $144.00 ($109.00 - $179.00)

c. Jackets: $217.00 ($175.00 - $259.00)

d. Accessibility: 148

e. Scotch and Soda Stores (30) â&#x2020;? US

+Online Nordstroms (116) + online

Appendix C MANTHRO vs Competitors Pricing (Numbered Lowest to Highest) 1. Kit and Ace ($113.00)

a. Shirts: $84.00 *** Offer select