Bundle of Love

BUNDLE

Of

L VE

Erin N. Kelley - Sarena Foster - Annastasha Willis - Oiaoning Gu

TABLE of CONTENTS EVECUTIVE SUMMARY INTRODUCTION VISION,MISSION,VALUES MARKET ANALYSIS TARGET CUSTOMER

1 2 3 4 9

PRODUCT DEVELOPMENT SOURCHING GARMENT LIFECYCLE BRANDING & MESSAGING CONCLUSION APPENDIX

13 16 22 27 28

Executive Summary

The purpose of this business plan is to provide research and analysis for Bundle of Love, a sustainable childrenswear and delivery service company. Although the sustainable childrenswear market is heavily saturated, we have found a niche to fill with a clothing exchange service for parents. Throughout this document we will discuss who Bundle of Love is, the current market we are competing in, who our target customer is, the design and manufacturing of our products, a complete garment life cycle, and a branding and promotion plan.

Our business relies on the participation of our customers to maintain a constant cycle of sharing and redistribution of bundle packages. This would offer multiple opportunities in the future for a streamlined “hand me down� system, ensuring our mission of sustainability. If this cycle were to be broken, we will have to constantly introduce new items defeating our reuse initiative.

1

Introduction Bundle of Love is a childrenswear e-commerce store dedicated to dressing children in the easiest and most sustainable way possible. We offer packages for babies and children 0-4 years in boys and girls styles. Each package will have instructions of how to care for the infinite outfit combinations that can be created with the garments provided. For each age milestone a child reaches they will receive a new package and the old package will be recycled to other families. Not only does this method extend the garment life cycle, it also reduces the clutter and provides a streamlined delivery and retrieval service. Through our services, Bundle of Love will provide parents with an easy, ethical and sustainable way to dress their children.

2

Mission Our mission is to provide a personalized exchange service of quality, organic, sustainable clothing packages for on the go parents and their little bundles of love.

Vision We are ambitious about creating a more sustainable environment in the childrenswear industry, reducing the clothing waste in landfills. We also aim to educate consumers on clothing care and our garment lifecycle, urging them to lead a more sustainable lifestyle.

Values We are passionate about organic fibers, recycling, and products made in America. That’s why all of our clothing is made of 100% organic fabrics, consigned to new families and manufactured in California.

Above all else we value the health and safety of our parents and their little bundles of love.

Target Market Overview The target market of our product is a child 2-4 years. This means the target consumer is the older spectrum of the millennial generation. This will encompass primarily parents’ ages 20-35 years. The millennial consumer makes up 80% of the US population (Barkley). Out of that 80%, 60% say good health is the most important thing in life (Barkley). This proves our consumer cares what they put in and on their bodies. Taking this in consideration, our products will be manufactured with only organic fibers that are healthy for children.

3

Market Analysis

Size of Market In 2014, the US childrenswear market was worth over $186 billion in annual sales (Breyer). The market shows a fast paced increase of 15% in 5 years (Breyer). This proves there is already an extremely strong existing market for childrenswear. As a company trying to enter this market we will have to research competition to find a need of consumers that is not already being met.

Unique Characteristics Since the 2008 recession, the birth rate in the United States has continued to decline. According to Euromonitor’s analysis on the childrenswear market, the birth of children ages 0-3 has decreased by 3%. However, in 2013, the baby and toddler portion of the children’s apparel market had the largest amount of growth. This may be due to the fact that retailers saw a great deal of competition, which led to a decrease in value sales and unit prices by 1% (Euromonitor).

4

Competitive Landscape Analysis

5

Perceptual Map When creating the perceptual map with price on the y-axis and sustainability on the x-axis, the level of sustainability was rated using the Material Assessment Tool from the Nike Index. Every clothing category in our collection was determined through research of the textiles in competitors’ categories. The Nike Material Assessment chart was utilized to understand each of the material’s environmental impact. The impact categories are, chemistry total, energy/CO2-eq total, water/ land use, and waste total. Each material is assigned a score based on an evaluation of the raw material and supply chain scenario completed by Brown and Wilmanns Environmental. Appendix 1.0

Burts Bees Boy’s 100 % Organic Cotton Graphic T Material Assessment Score on Nike Index : 45.9 Price $15.95 6

Kate Quinn Boy’s 100 % Organic Cotton Graphic T Material Assessment Score on Nike Index : 45.9 Price $26.00

Gap Boy’s 100 % Cotton Tee Material Assessment Score on Nike Index : 39.1 Price $18.95

Competitive Landscape Analysis After extensive analysis of the organic childrenswear market, it is concluded that Bundle of Love’s main competitors are only providing the consumer with products made of sustainable textiles. However, there is a gap in providing consumers with options or education to extend the garment’s lifecycle sustainably beyond just the first individuals’ use. The few that do offer education, it is not clear where to find it. Many of our competitors provide care instructions but not instruct how to dispose of the garment when it is outgrown.

To fill this gap in the childrenswear market, Bundle of Love will facilitate a sustainable garment lifecycle for organic children’s clothing. We will do this through education of the consumer, and providing an exchange service when purchasing a bundle.

Current Sourcing Practices

According to the article United States childrenswear, retailers are primarily using foreign manufacturers to source their textiles and products. Apparel is more labor intensive, which influences the retailer to outsource manufacturing to low-wage regions such as, China and India.

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According to Textile Exchange, approximately 637,563 bales of organic cotton were produced on 783,094 acres around the globe in 2012. The top five organic cotton producers are India, China, Turkey, Tanzania, and the United States. Exchange reports from 2012 indicate that India’s OCS certified facilities are producing nearly three quarters of the worlds’ supply of organic cotton, making it the number one producer. Present day India still holds that title.

Current Distrabution Channels The current distribution channels for the childrenswear market are brick and mortar stores and e-commerce platforms. With the evaluation of the millennial consumer, we found that our target market is more technologically savvy and looks to the Internet for information before they set foot in a store (McGrath).

E-Commerce is a distribution channel that will make our product more accessible and convenient to order.

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Future Growth Although birthrates are not expected to increase greatly within the next 5 years, economic conditions are predicted to grow (Monthly Labor Review). Unemployment is at an all-time low so as families become more financially stable they will increase their spending habits in all areas of their lives, including childrenswear.

Their purchases will extend outside of the basics and staple pieces they are currently buying. The increasing financial security of parents is also a factor to be considered in the increase of baby and toddler wear growth.

The millennial generation, those born in the early 1980’s to late 1990’s are another major factor in the growth of the childrenswear market. This generation is starting to have children and is more open to new innovations in every market.

Demographic Segment

The median annual income of the Woman millennial consmer is $83,000, and the Male millennial consumer is $77,000 (McGee). According the the current population survey from 2012, millennial women are least likely to let their carreers interrupted by marriage, and family (McGee). This mean our target market will have the exposible income to purchase our product, as well as have the need of convience within their busy lives.

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Psychographic Segments According to Cotton Inc. before consumers decide to buy they are reading reviews online about the brand on their sites, e-commerce sites as well as social media (Nicholis). Millennial mothers are considered “super connected people who value recommendations and trust in their peers statically more than anyone else” says Market Leader (Nicholis). As a retailer moving into a post digital era we have to connect and engage with our consumer and be active on websites like Facebook and Pinterest where we can receive feedback from customers. Millennial moms spend approximately 4.3 hours on their smartphone, tablet and computers devices daily, using a smartphone or tablet the most (Neilsen Company). This high usage of technology correlates with the fact that 64% of mothers make purchases on their phone or tablet regularly (Nicholis).

The day in the life of a new mother or a mother of more than one child is a long complex one. American Time Survey indicates that American parents rate 12% child-care activities as “very tiring” compared with paid work-related activities at a rate of 5% (Wang). Parents also consider childcare as an activity that is very meaningful compared to leisure, housework and paid work (Wang). Mothers spend no less than 5.2 hours per week tending to children’s physical needs such as changing diapers, feeding and dressing a child (Wang).

Mothers are super busy and their time is very limited to do other things. According to Neilson Company moms 21- 49 spend less time watching live TV and more time watching DVR recordings when convenient (Neilsen Company). As a new retailer in the children’s market we have to make a product that makes the lives of mothers easier especially when it comes to the child’s physical needs.

10

Shopping Habits While there are many types of parents that look for different things while shopping for their children, the most important factor is the functionality of the clothing. According the Cotton Inc Lifestyle Monitor, nearly 100% of the parents they interviewed ranked fit as the top priority when shopping for their children. Comfort, quality, price, durability and style were also highly ranked by parents.

According to the US Expenditures on Children, the yearly cost of raising a child 0-5 is $12,940, 6% of which is allocated to clothing, $776. According to our secondary research parents often spend between $80-$100 a month on clothing, but can fluctuate between seasons and the growth of their child.

Current Garment Lifecyle The lifecycle of our target market within childrenswear is relatively short due to frequent washing, and the accelerated growth rate of children four and under. For this very reason, what to do when the children grow out of the clothes becomes an afterthought to parents. According to Better Homes and Gardens the most common way to wash and dry children’s apparel is by machine. Parents also usually wash children’s apparel separately because of their sensitive skin. Few choose to reuse the clothing, and or recycle it. The most common way to dispose of the clothing is throwing it away in landfills.

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Inspiration and Concept Board

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Inspiration

The inspiration of Bundle of Love is a minimal childrenswear aesthetic, that are both comfortable and functional.

The color palette of each bundle will be cohesive, to ensure the ability make a multitude of different outfits. The color palette for this particular season is inspired by the ocean, primarily the vantage point of looking beyond the waves into the depth of the sea. We were also inspired by packages of clothing within the existing market, but only for newborns, primarily for new parents. We would like to introduce this idea of bundles into the toddler market as well targeting not only new parents, but on the go parents that do not have time or patience to bring their kids to stores at the minimum 4 times a year to shop.(Primary Research) Appendix 5.1

Sourcing Pick Natural is both the Textile supplier and manufacturer. Pick Natural makes the patterns for each of our designs, and constructs them with the all natural organic textiles they produce. The tag for sizing and Bundle of Love logo is included with their service package. They are fully transparent on their company website about the whole process, which is important to us, because we want to ensure Pick Natural complies with our values as a company. The cost of each bundle to make including labor is $86.78 FOB China. Appendix 1.2, 2.0 13

Product Assortment

Basic V-neck T-shirt: Toddler 2T Style#20100

Crew neck T-shirt: Toddler (2) Style #20101

Short Sleeve Button down: Toddler (2) Style # 20104

Long Sleeve tshirt: Toddler (2) Style #20105

Long Sleeve Button down: Toddler (2) Style #20102

Jeans: Toddler (2) Style #20109

Long Sleeve Hoddie: Toddler (2) Style # 20103

Sweater ‘Cardigan’: Toddler (2) Style # 20107

Jacket (hook and eye fastener): Toddler (2) Style # 20106

This is an example of the “Big Bundle of Love”, Boys assortment for size 2T. Every different sized bundle will have the same assortment of garments. The assortment is designed to mix and match an infinite amount of outfit combinations, making the bundle have at least 2 weeks of different outfits. For the materials, bundle contents and the girls assortment see Appendix 1.3 14

Pants: Toddler (2) Style # 20111

Shorts: Toddler (2) Style # 20108

Joggers: Toddler (2) Style 20110

Assortment Plan

We are going to start out with 20 bundles per size, both for boys and girls. It costs $64.76 to create one bundle, and $1,289.20 to create 20 bundles. This means one bundle will sell for $130 retail. Appendix 1.2 15

Garment Lifecycle

Design Our bundles of love are made of organic cotton, hemp, bamboo, silk, wool and soy protein fiber. The raw materials are sourced from China and India through Pick Natural. All of the organic textiles available are fully certified by IMO, Control Union OCIA, NOP and ECOCERT. The raw materials used to manufacture the textiles, are grown without synthetic fertilizers and chemicals in China and India.The textiles are dyed with Procion low impact, fiber reactive dyes. These dyes are nontoxic, and eco-friendly,creating a safer and healthier environment for the workers. During the process, the dyes require low temperature water processing, salt, and soda as auxiliary agents. Pick Natural guarantees they only use hydrogen peroxide bleach, and do not use any optic brighteners in the process of bleaching textiles throughout the production and manufacturing process.

Production Pick Natural is our textile supplier, and manufacturer. It is member of Green America, who is dedicated to harnessing the economic power of consumers, investors, and business to promote social justice and environmental sustainability. They appreciate and respect the value of every employee down to the factory workers. Pick Natural abides by the manufacturing inspection guidelines; and ensures the employees work in fair conditions for a fair wage, and guarantee no unethical behavior within the workplace including but not limited to, child labor, forced labor, physical disciplinary measures, migrant workforces, and no discrimination of any kind. In addition the every employee also has the right to freedom of association,rights to collective bargaining, health insurance, and sick and/or maternity leave. Pick Natural also has employee training to ensure efficiency.

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Distribution Bundle of Love is an e-commerce store, which means our products are only available online. E-commerce allows us to cut out multiply delivery points. For example, our products only travel from the fabric supplier to the manufacturer, to the warehouse and lastly to the consumer. The distribution of products from the warehouse to the retail locations, and from the retailer to the customer’s final use destination can be eliminated.

In terms of packaging, all Bundle of Love products are sold in one convenient package, cutting down on the need for separate shipping arrangements for individual packages. Bundled packages will arrive at customer’s doorsteps in a 100% post-consumer, post-industrial waste, recycled and compostable, cardboard box from Ecoenclose.

When the products are in our control (from warehouse to customer) we will use Fedex as they are doing an incredible amount to create a sustainable transportation future. For example, they have a goal to “increase FedEx Express vehicle fuel efficiency 30% from a 2005 baseline by 2020.” (Global Connections) We will only use ground shipping because it uses less fuel than air, which also means overnight and 2-day shipping will not be available. We believe it is a sacrifice our customers will appreciate in the long run.

Use Washing Care Instructions for each garment are located in a pamphlet that comes with the box. In general, all of our clothing can be washed by machine. We recommend using cold or warm for washing clothing, preferably not exceeding 40 C/105 F. Keep color intensity by turning clothing inside out through the laundering process.

We do not recommend using any bleach in the washing process because it weakens garment. We suggest our consumers buy eco-friendly detergents formulated to work in cold water, which reduce water pollution and chemical damage to sensitive skin. Gentle eco-friendly soaps are also best for washing because they keep the integrity and color longevity of clothing. To save time and energy, wash by fabric type, weight and color.

Treat stains immediately with cold water and soap then

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Drying Best drying method for our clothing is hanging clothes to dry if possible, because it reduces energy waste during machine drying process. We recommend stretching the fabric before lying out to dry to prevent wrinkles. When using a dryer, tumble dry on a low setting until slightly damp then remove. Over drying damages and shrinks fabric.

Ironing Ironing practices are dependent on material. Hemp for example is strongest when wet so ironing hemp garments when damp is best. For all other fabrics use the appropriate setting (150 C/300 F) or steam setting on a warm iron. Ironing when any of the garments are damp is beneficial for the integrity of fabric. Because our garments have not been treated like traditional cotton, it is possible for 7-10 % shrinkage to offer.

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End of Life The main goal of Bundle of Love is to provide an exchange service. Once a child outgrows their size, the package is sent back to us and we have direct control over what happens to it next. This service is called “Re-love”, we will clean, mend, and to bring garments back to like-new condition which ensures a longer life.

The longer a garment can be used the less time is spends in a landfill.

For products we find unfit to be resold, things that are stained or torn, we will partner with the SMART, Secondary Materials and Recycled Textiles association. 30% of the textiles SMART acquires are cut into polishing cloths often used in industrial settings. 20% of the textiles are reprocessed into basic fiber content (Donate, Recycle, Don’t Throw Away). These two options are likely where the unwearable garments will end up at the end of their lifecycle. Most importantly, if any of our products were to end up in landfills, they are made of natural organic fibers that are biodegradable. No one else in the market is addressing the end of life, or recycling in an innovative way that is going to be impactful, except us.

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Garment Lifecycle Impact Measurement- Garments The Material Score table on the Nike Environmental Tool website, was used to calculate the impact of the fibers used to construct the garments Bundle of love offers.

Fiber: Hemp Found in: Sweater, Jacket Chemistry Total: 11.2 Energy & C02-EQ Total: 12.5 Water and Landuse Total: 11.0 Waste Total: 1.0

Total Material Score: 38.8

Fiber: Organic Cotton Found in: Pajamas, Bottoms, Dress, Tops Chemistry Total: 21.9 Energy & C02-EQ Total: 16.0 Water and Landuse Total:3.0 Waste Total: 5.0

Total Material Score: 45.9

In comparison to competitors, our overall material score for each product category is average. Some of the natural fibers such as hemp, require intensive use of chemicals within agriculture and textile processing steps, making its material score low. Our biggest competitors are stores that have organic cotton in all product categories, such as Kate Quinn, LovedBaby and Burt’s Bees. With organic cotton being their primary fabric, the chemistry total, energy and C02 –EQ total, water use and waste total is higher than ours.Appendix 1.2

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Impact Measurement- Manufacturing & Distrabution The Higgs Index was used to measure the environmental impact of our products. The Higgs Index is a tool primarily used gauge environmental sustainability and a motivator to improve sustainable aspects of a company. The categories we have measured using the Higgs Index rate low when the highest score is out of 100, but it is important to remember Bundle of Love is a startup company and will certainly grow into better sustainability practices.

Transportation total score 40.3 Manufacturing total score 32.4 Packaging total score 33.5 Bundle of Love is filling a void in the sustainable childrenswear market by providing an efficient exchange service and addressing the end of garment lifecycle in an innovative way. We believe our easy to use exchange system will change the perspective on “hand me down� clothes and create an extensive reuse initiative. We also hope our product will help consumers think not only about what their products are made of but where they go when they are done using them. Overall we believe our product will help create a more educated and sustainable consumer..

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Branding and Messaging Packaging

All packaging is made with 100% recycled materials. Our bundles will come in a Laundry bag, to ensure the consumer will keep it to “re-love� their bundles. Each bundle will come with a hang tag to induvidualize the bags. The induvidual garments will have labels with the logo and size embrodiered on it. The entire bundle will be shipped in a 100% recycled box, with our logo printed on it so the consumer will know its us when it arrives. The bundles will come with a booklet educating the consumer on our services, the looks that can be created and how to continue to be sustainible. Appendix 1.4 22

Website

MADE WITH LOVE Our products are 100% natural and organic starting from the growing process, ending with the box we send it to you in. We ensure the factories that we get our bundles manufactured in are fully transparent, and abide by the inspection manufacturing guidelines.

We use organic cotton, bamboo, and hemp products manufactured by Pick Natural. They grow, produce, and manufacture the textiles in China, India and Turkey. Pick natural is a member of green America. Although some question the sustainibility of Bamboo fibers within the production phase, Pick Natural takes extra precautions such as installing an advanced floating air treatment, to ensure it keeps the employees and the earth safer.

The website will be the ecommerce site, for our consumers to buy the bundles. Our site will be fully transparent educating the consumer about how sustainible we really are. It also educates the consumer on care instructions. There will be a blog featured on the website about up to date care options, as well as advice and lifestyle posts to connect with our customer on the personal level(garment lifecycle). .

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App

HOME

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BUNDLE

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BUNDLE

BUNDLE CALENDER

8/15

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IT’S TIME TO...

BUNDLE

YOUR BUNDLE Of

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MY little Bundle

L VE BLOG

CALENDER YOUR BUNDLE LOOK BOOK

Shapes

YOUR BUNDLE

Filters

t

Text

Frame

SHARE

The app will supplement the website, and the consumer will be able to personalize their experience further.

There will be a calender on the app with a reminder set to “re-love” the bundle and send it back to us. It will also have a blog, that the user will be able to fill out what there interests are and posts will come up with their interests in mind. The app will be pinterest friendly so they will be able to pin any of our posts with ease. There will be a care section, that has everything one will need to know to care for the garments, including how to get out pesky toddler stains. There also will be a “Your Bundle” page that will be a place to take pictures of the kids in your favorite looks and personalize the image and post directly on social media..

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Advertisements/Marketing

A little bundle for your little bundle.

BUNDLE

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The main marketing platforms are the app, social media, and personal testimonies. The app will encourage consumers to post their pictures with our hashtag #bundleoflove, as well as our products to their personal social media sites through the app. This will direct traffic to our website, and app. In addition, on our website there will be information on our blog that will keep our consumers coming back to the website, as well as learn more about our product. There also will be gifting to select bloggers, so our customer will trust our products. If this does not get us enough business within the first month we will take a 1/3 page add in a parenting magazine to increase brand awareness further. Appendix 1.5

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Associated Costs

Description: Boys Bundle Size 18-24 Months Size Range: 0-4T Materials Button down: Jacket: Jean: T-Shirt: Total (entire package) Trimmings Label: Total Labor Cut Make (5% of materials) Total Packing Materials Tote Shipping Box (printed) Total

Style No. BL3115 Season: Spring 2015

Wholesale Price (50%) Retail Price

$153.405 $200.00

Total Cost 26

$2.65 $7.42 $3.23 $1.52 $82.65 $0.02 x 25 $0.50 $7.00 $4.13 $11.13 $4.25 $3.74 $7.99

$102.27

All the costs that are added on the the manufacturing of products, to create our sustainible line.

Description: Associated Costs Bloggers Little Wholesome One free bundle Easy Green Mom Organic Sunshine Your Organic Child Peace Love Organic $102.27 x 5 Shipping Box $3.74 Shipping Cost $12.34 Total $591.75 Print Parenting Magazine Cover Fee: $7.50 Ad (Directory) $200 Total $207.50

Total Cost

$799.25

Conclusion Bundle of Love is filling a void in the sustainable childrenswear market by providing an efficient exchange service and addressing the end of garment lifecycle in an innovative way. We believe our easy to use exchange system will change the perspective on “hand me down� clothes and create an extensive reuse initiative. We also hope our product will help consumers think not only about what their products are made of but where they go when they are done using them. Overall we believe our products will help create a more educated and sustainable customer.

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Appendix

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1.0 Competitive Landscape Analysis (Nike material assessment score) To find the average material assessment, one adds the total material score for each category of each competitor; next divide each of the sums by the number of categories from each competitor. The price is based off the average price for a garment in the tops, bottoms, outerwear, and dress categories from the main competitors. Last to find the total average price, one adds together the averages, and then divides the sum by the total number of categories from each competitor.

1.2 Assortment Plan

Assortment for Boys Bundles (20 bundles per the 2T size) Product ID

Description

Color

Sizing

Units per Size

Cost Price

Total Cost

Margin

Tops 20100 20100 20101 20102 20103 20104 20105 20105 20107

Basic V-­‐Neck T-­‐Shirt Basic V-­‐Neck T-­‐Shirt Crewneck T-­‐Shirt Long Sleeve Button Down Long Sleeve Hoodie Short Sleeve Button Down Long Sleeve T-­‐Shirt Long Sleeve T-­‐Shirt Cardigan

Stone Blue Gray Pearl Blue Oxford Blue Gray Blue Caper Bay Blue Black

2T 2T 2T 2T 2T 2T 2T 2T 2T

20 20 20 20 20 20 20 20 20

$1.52 $1.52 $1.52 $2.65 $3.71 $2.65 $1.52 $1.52 $2.94

$30.40 $30.40 $30.40 $53.00 $74.20 $53.00 $30.40 $30.40 $52.80

50% 50% 50% 50% 50% 50% 50% 50% 50%

$3.04 $3.04 $3.04 $5.30 $7.42 $5.30 $3.04 $3.04 $5.88

Jackets 20106

Jacket

Ink Blue

2T

20

$7.42

$148.40

50%

$14.84

Bottoms 20109 20109 20110 20110 20110 20111 20112

Jeans Jeans Joggers Joggers Joggers Pants Shorts

Black Indigo Pewter Gray Port Gray Driftwood

2T 2T 2T 2T 2T 2T 2T

20 20 20 20 20 20 20

$3.23 $3.23 $2.75 $2.75 $2.75 $3.10 $2.10

$64.60 $64.60 $55.00 $55.00 $55.00 $62.00 $42.00

50% 50% 50% 50% 50% 50% 50%

$6.46 $6.46 $5.50 $5.50 $5.50 $6.20 $4.20

Solid Pajama Bodysuit Solid Pajama Bodysuit Buttoned Pajama Bodusuit Buttoned Pajama Bodusuit Pajama Long Bottom Pajama Long Top Pajama Short Bottom Pajama Short Top

Gray Beige Blueberry Beige Natural Natural Pearl Blue Pearl Blue

2T 2T 2T 2T 2T 2T 2T 2T

20 20 20 20 20 20 20 20

$2.73 $2.73 $2.95 $2.95 $1.85 $1.52 $1.63 $1.52 $64.76

$54.60 $54.60 $59.00 $59.00 $37.00 $30.40 $32.60 $30.40 $1,289.20

50% 50% 50% 50% 50% 50% 50% 50%

$5.46 $5.46 $5.90 $5.90 $3.70 $3.04 $3.26 $3.04

Pajamas 20112 20112 20113 20113 20114 20114 20115 20115 Total

It costs $64.76 to make one bundle. It costs $1,280.20 to make 20 boy bundles. Each bundle at retail price will be $130.00

Retail Price Total Retail

$129.52

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Product ID

Description

Color

Girls Assortment ( 20 bundles for size 2T) Tops Product ID Description Color 20206 Long Sleeve T-­‐Shirts Amethyst 20206 Long Sleeve T-­‐Shirts Heather Gray 20107 Button Down Blue Tops 20208 Cardigan Cub 20206 Long S leeve T -­‐Shirts Amethyst 20204 Short Sleeve T-­‐Shirts Pearl Blue 20206 Sleeve T-­‐Shirts Gray 20204 Long Short Sleeve T-­‐Shirts Heather Seaweed 20107 Button own T-­‐Shirts BluePort 20204 Short SD leeve 20208 Cardigan Cub Red 20203 Hoodie Oxford 20204 Short Sleeve T-­‐Shirts Pearl Blue 20204 Seaweed Dresses Short Sleeve T-­‐Shirts 20204 Sleeve NTeck -­‐Shirts Port 20200 Short Square Dress Natural 20203 Hoodie Oxford Red 20201 V-­‐Neck Dress Opal

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Dresses Jackets 20200 Square Neck Dress Natural 20211 Jacket Ink Blue 20201 V-­‐Neck Dress Opal Bottoms Jackets 20210 Leggings Black 20211 Jacket Ink Blue 20210 Leggings Gray 20210 Leggings Navy Bottoms 20209 Joggers Pewter/Gray 20210 Leggings Black 20205 A-­‐Line Skirt Indigo 20210 Leggings Gray 20202 Flare Skirt Oxford Blue 20210 Leggings Navy 20209 Joggers Pewter/Gray Pajamas 20205 A-­‐Line Skirt Bodysuit Indigo 20112 Solid Pajama Gray 20202 Flare Skirt Bodysuit Oxford Beige Blue 20112 Solid Pajama 20113 Buttoned Pajama Bodusuit Blueberry Pajamas 20113 Buttoned Pajama Bodusuit Beige 20112 Pajama LBong odysuit Gray 20114 Solid Pajama Bottom Natural 20112 BLodysuit Beige 20114 Solid Pajama Pajama ong Top Natural 20113 Buttoned P ajama B odusuit Blueberry 20115 Pajama Short Bottom Pearl Blue 20113 Pajama Short Bodusuit Beige 20115Buttoned Pajama Top Pearl Blue 20114 Natural Total Pajama Long Bottom 20114 Pajama Long Top Natural 20115 Pajama Short Bottom Pearl Blue 20115 Pajama Short Top Pearl Blue Total It costs $61.89 to make one girl bundle. It costs $1,232.10 to make 20 girl bundles. Each bundle at selling price will be $130.00

It costs $61.89 to make one girl bundle. It costs $1,232.10

Sizing

Sizing 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T

Units per Size

Units per 20 Size 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

Cost Price

Total Cost

Margin

Retail Price Total Retail

Cost P$1.52 rice Total C$30.40 ost Margin rice Total Retail 50% Retail P$3.04 $1.52 $30.40 50% $3.04 $2.65 $53.00 50% $5.30 $2.94 $52.80 50% $5.88 $1.52 $30.40 50% $3.04 $1.52 $30.40 50% $3.04 $1.52 50%50% $3.04 $1.52 $30.40 $30.40 $3.04 $2.65 50%50% $5.30 $1.52 $53.00 $30.40 $3.04 $2.94 50%50% $5.88 $3.71 $52.80 $74.20 $7.42 $1.52 $30.40 50% $3.04 $1.52 $30.40 50% $3.04 $1.52 50%50% $3.04 $3.75 $30.40 $75.00 $7.50 $3.71 $74.20 50% $7.42 $3.93 $78.60 50% $7.86

2T 2T 2T

20 20 20

$3.75 $7.42 $3.93

$75.00 $148.40 $78.60

2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T 2T

20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

$1.37 $27.50 $7.42 $1.37 $148.40 $27.50 $1.37 $27.50 $2.75 $55.00 $1.37 $2.25 $27.50 $45.00 $1.37 $2.90 $27.50 $58.00 $1.37 $27.50 $2.75 $55.00 $2.25 $2.73 $45.00 $54.60 $2.90 $2.73 $58.00 $54.60 $2.95 $59.00 $2.95 $59.00 $2.73 $1.85 $54.60 $37.00 $2.73 $1.52 $54.60 $30.40 $2.95 $59.00 $1.63 $32.60 $2.95 $1.52 $59.00 $30.40 $1.85 $61.89 $37.00 $1,232.10 $1.52 $30.40 $1.63 $32.60 $1.52 $30.40 $61.89 $1,232.10

50%50% 50%

$7.50 $14.84 $7.86

50% 50%50% 50% 50% 50%50% 50%50% 50% 50% 50%50% 50%50% 50% 50% 50%50% 50%50% 50%50% 50%50% 50% 50% 50% 50%

$2.74 $14.84 $2.74 $2.74 $5.50 $2.74 $4.50 $2.74 $5.80 $2.74 $5.50 $4.50 $5.46 $5.80 $5.46 $5.90 $5.90 $5.46 $3.70 $5.46 $3.04 $5.90 $3.26 $5.90 $3.04 $3.70 $3.04 $3.26 $3.04

$123.78 Per Bundle

$123.78 Per Bundle

1.3 Line Sheet Boys ( 2 Years Old) ] SYOC01- Stone Blue Soy/ Organic Cotton/ Spandex Jersey

SYOC01- Spruce Soy/ Organic Cotton/ Spandex Jersey

BMOC01- Gray Bamboo/ Organic Cotton/ Spandex Jersey

BMOC01- Navy Bamboo/ Organic Cotton/ Spandex Jersey SYOC01- Spruce Soy / Organic Cotton/ Spandex, Spruce Basic V-neck T-shirt: Toddler 2T Style#20100

Long Sleeve Hoddie: Toddler (2) Style # 20103

OCBG01 - Blue Organic Cotton Double Gauze

MDWL01 - Pearl Blue Modal/ Wool Jersey

Short Sleeve Button down: Toddler (2) Style # 20104

Crew neck T-shirt: Toddler (2) Style #20101

SYOC01 - Bay Blue Soy/ Organic Cotton/ Spandex Jersey

OCHE01 - Oxford Blue Organic Cotton/ Hemp Chambary

OCDG01 -Blue Organic Cotton Double Gauze Long Sleeve Button down: Toddler (2) Style #20102

SYOC01 - Stone Blue Soy/ Organic Cotton/ Spandex Jersey Long Sleeve tshirt: Toddler (2) Style #20105

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e

02 nk l e rganic Cotton ool Tweed

C 01 ndigo rganic Cotton S ande nit eni

C 01 at lra rganic Cotton leece Jacket (hook and eye fastener): Toddler (2) Style # 20106

Jeans: Toddler (2) Style #2010

C01 ray oo rganic Cotton S ande Jersey

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a

C01 ray oo rganic Cotton S ande Jersey

a

J 0 lack oo Sweater nit

C0 ewter a oo rganic Cotton Jerse y

Joggers: Toddler (2) Style 20110

Sweater ‘Cardigan’: Toddler (2) Style # 20107

100

Shorts: Toddler (2) Style # 20108

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C T01 riftwood rganic Cotton ird

C 0 1 rganic Cotton elang e

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ants: Toddler (2) Style # 20111

C01 ort oo rganic Cotton S ande Jersey

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BMOC01-Gray Bamboo/Organic Cotton/ Spandex Jersey

OCJD01-Beige Cotton Hemp JacquardOCJD01-Beige Cotton Hemp Jacquard

MDWL01- Pearl Blue Modal/ Wool Jersey

Pajamas: Toddler (2) Style#20112 Pajamas: Toddler (2) Style#20114

Pajamas: Toddler (2) Style#20112

HEPT01-Blueberry Hemp/Organic Cotton Springcloth

OCJD01-Beige Cotton Hemp JacquardOCJD01-Beige Cotton Hemp Jacquard

SYOC01-Natural Soy/Organic Cotton/ Spandex Jersey

Pajamas: Toddler (2) Style#20115 Pajamas: Toddler (2) Style#20113

The pajama assortment is used in both the boys and girls bundle assortments* 33

Girls ( 2 Years Old)

OCDV01-Oxford Red Organic Cotton Dobby Voile

OCTW01-Natural Organic Cotton Twill

Dresses: Toddler (2) Style#20200

Jaclets: Toddler (2) Style#20203

OCHE01 - Oxford Blue Organic Cotton/ Hemp Chambary

OCDG01-Opal Organic Cotton Double Gauze

MDWL01- Pearl Blue Modal/ Wool Jersey

Dresses: Toddler (2) Style#20201

Short Sleeve T-shirts: Toddler (2) Style#20204

OCDM01 - Indigo Organic Cotton/ Spandex Knit Denim

OCHE01 - Oxford Blue Organic Cotton/ Hemp Chambary

Skirts: Toddler (2) Style#20202

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Skirts: Todddler (2) Style #20205

MDWL01 - Seaweed Modal/ Wool Jersey

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B OC -Gra Ba boo Organic Cotton an e er e

B OC et t Organic Cotton a er e e

B OC -Gra Ba boo Organic Cotton an e er e

B OC - ort Ba boo Organic Cotton an e er e

B OC - e ter Ba boo Organic Cotton er e

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OCBG -Blue Organic Cotton Double Gauze OCJE 02-Black Oragnic Cotton/ S pandex Jersey

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1.4 Advertising To reach our target customer we will focus much of our advertising and promotion on social media. We will have a website at BundleofLove.com, with subsequent information and outreach on Facebook, Twitter and Instagram. In terms of getting our brand out there, we will be contacting mommy bloggers with free samples and giveaways to introduce our products to their subscribers.

We may use the same technique for video bloggers on creative spaces like YouTube. We have also considered print ads in popular parenting magazines such as Parenting, Parents and Working Mom. Mommy Blogs- Scary Mommy (community)

I Am Not the Babysitter (mom/natural living)

The clever girls collective (connects blogs with brands)

Mama Making Changes (eco-friendly)

little Wholesome (eco-friendly)

Easy Green Mom (eco-friendly)

Organic Sunshine (eco-friendly)

Mama Papa Barn (eco-friendly)

Your Organic Child (eco-friendly)

Peace Love Organic Mom (eco-friendly) Cost is one package plus the special deal their subscribers will receive. http://www.topmommyblogs.com/pages/eco_friendly_mom_blogs.html

Magazines- Parenting (cover fee 7.50, directory space 200, full page 2,200) Parent Total Rate Base 2,200,000

National Advertising Rates Four Color Full page $206,600 2/3 page $159,800 1/2 page $124,000 1/3 page $86,100 2nd Cover $237,600 3rd Cover $227,300 4th Cover $247,900 Black & White Full page $161,300 2/3 page $124,700 1/2 page $96,800 1/3 page $67,700 Rates effective January 1, 2015; all rates are gross.

“her readership seems like one that will be appropriate for your product or service.�

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1.5 Impact Measurement The Nike Environmental Apparel Design tool serves as functional calculator with the ability to measure the impact of materials used in manufacturing apparel products through chemical use, energy, CO2 details, water use and waste. The chemistry category score is based on hazardous levels of chemicals used with the highest being 40. Energy category score was based on energy intensity, source and CO2 intensity; the highest level is 24. The water category score references water intensity and land use with the highest level being 16. Lastly, the waste score is based from recycled Inputs, manufacture waste and theoretical consumer end of life disposition.

All these scores combined create the total material score for each fiber.

2.0 Primary Research Al Mulin: Father Gender neutral. If you have one or two of each, hand me downs instead of recycle. But I’d exchange if I had one kid or all of one gender after the youngest outgrew. One or two outfits a day over one year. Two to three per day younger. I’d buy used, especially at a discounted price. Young kids tend to outgrow before they wear out. Key pieces. White onesies and / or undershirts. Long and short sleeve. Shirts and pants. Maybe a pair of sweats for cooler weather.I think we spend about $80-$100 per month on clothes. White onesies are cheap, so if you buy really in bulk (like planning on 10-14 of each in the package) you can probably negotiate a good price. $80-$100 for two weeks’ of coordinated outfits is offhand my upper limit for price, but I could be convinced to go a little higher.

Nora Mullin: Mother of 2 (boy:2) girl:3) So, I’d suggest 3 packages especially for little sizes (newborn through 9 months) girl, boy, and gender neutral. After that I’d be more inclined to have separate girl and boy packages. Littler kids go through more clothes than bigger kids (generally) two weeks worth of clothes for a kid 0-6 months is an average of two outfits a day plus PJ’s and bibs. After that it’s probably closer to 3 outfits every two days(ish). Mix and match pieces plus one dressy outfit would be a great way to go about it. I’d totally be willing to buy a used bundle assuming that all the clothing was still true to size and stain free. Most kids clothes get shrunk, though. You could offer a discount on the next bundle for people who opt to send back and purchase the next size. Kids clothes are expensive and I never purchase without a coupon or discount of some kind. The kids clothes come from all over but I like BabyGap, Old Navy, Carter’s and Gymboree. Girls key pieces: leggings and tunics, Boys: soft pants and shirts Clothes should be easy to move in and soft. Fall/ spring bundles should include a sweater or sweatshirt. Bright colors are always nice. I prefer patterns to dumb little animals. $150 sounds reasonable

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Meaghan Oulette: Mother, Daycare Provider First off I want to say this is a great concept! I am sure many parents would love something like this. My only concern with the idea is for parents like me who have a child who is in different sizes for tops and bottoms for example his shirts are 4T but his pants are 3T. I am not sure how common a problem that is but I know for me that is one thing that might keep me away from purchasing a product like this. I already have to switch out the tops and bottoms when buying a two piece set from the store which is a hassle!

But the two pieces are some times just the cutest things! With that being said here are my answers to your questions. Good luck and if you have any other questions or anything feel free to ask!If you were to buy a package of clothing what are the key pieces that should be in it? (Theses should be at least 2 weeks’ worth of outfits) -Shirts (depending on season long and/or short), pants/shorts, depending on season of outfits possibly a vest or sweatshirt to keep warm. For little girls I’m not too up on what is in style but I’m going to say from what I see as a teacher, skirts with leggings to go underneath, dresses, sweaters, long and/or short sleeve shirts, jeans/short/leggings. Maybe depending on age a little head piece to go with the outfits might come in handy. I am sure some people who love underwear and socks to be included but I for one would rather buy those separate.How many outfits do you go through a day/week?-with a 3 year old only one outfit a day so 7 per week.

-I’m not sure the age range your going to start with but if you do 3 and younger we went through the most outfits in that stage sometimes as many as 4-5 depending on the day...messy food wise, going outside in the mud, etc.How much do you spend on buying new clothes for your child? we never buy it all at once so I’m going to guess and say between $50-$200. It all depends on season and if he can wear previous clothes with change of season lothes, etc.Would you be interested in buying a package of clothing rathethan going out to buy individual outfits?-As I stated up top it would depend as my son takes a different size top and bottom. If I were able to get the outfits in the mixed sizing I would consider it.Would you be interested in the exchange service?- YES! I have so many clothes he has grown out of just thrown into a closet!

Would you consider buying a used package?-As long as the clothes are in good like new condition and priced at a lower price then the new package I would. Also as long as something like socks and underwear where not part of the package.How much would you pay for a package like this?depends on how many outfits we are taking about. I would probably be willing to pay around $20-$75.

I am cheap and like to get things cheap when possible. We hit up the stores all the time for new clothes when they are on sale.

Where do you buy the majority of the clothes now?- Target, Kohl’s and The Children’s WorkshopWould you prefer gender neutral, or have separate packages for each gender?- I have never been a fan on gender neutral especially when it comes to girls. I know myself and other parents I know who rather have separate package choices. I also know some people don’t mind the neutral clothes color choices so maybe you could have 3 choices that way it covers all bases.My other comment now that I’m thinking about this would be this might be a huge hit with the infant-kindergarten age. I am really thinking infant parents would love something like this especially as they can go through numerous outfits a day and the children grow out of clothing sizes so fast! Not sure if you were going to include the infant age range but defiantly consider that.

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Sarah Kirby: Mother, Professional Nanny reference, i buy most of abby’s clothes from hanna andersson bc...they are mostly organic and also mostly oeko tex certified. they size the clothing by body length in cm which is more practical than by the typical age/months/years. everything matches bc each season has a color palette woven throughout almost every item. there are both gender separate items and an overlap especially in the baby section. they have a very high price point but incredible sales pre-season, post season, at outlets like wrentham and on outlet style websites like zulilly. the more affluent parents can buy everything preseason and be up to date with styles/colors of each season and the less affluent parents can but items on sale to get quality clothing that is classic-ish but with styles/ colors that are a bit off from current trends or lagging behind the cutting edge higher fashion crowd. they have cool promotions where if you bring a used item of clothing to donate you get a discount on your in store purchases and the clothing is donated to charity organizations. also certain items are included in promotions where some money goes from purchase proceeds to a specific charitable organization. they do offer seasonal bundles with a mix of cute clothing that can be inter-mixed.also, they overlap color palettes from one season to the next so you can buy some sweaters, pants etc to layer on top of the clothes you purchased for warmer seasons. and they have ‘transitional’ clothing which i haven’t seen with other clothing companies especially children’s. one thing that is lacking in the current market is larger sized onsies. having the snaps at the crotch keeps the clothing in place when wiggly babies/toddlers play but that means the sizing has to be more specific. hanna offers two rows of crotch snaps to lengthen the onesies as baby/toddler grows but as with traditional companies the onesies disappear at about 90cm/24 months and then parents have to move to t-shirts/undershirts that come untucked easily when active kids move/play. i’ve thought about buying some onesie extenders from a company called one step up but also, if you’re going to have an all inclusive bundle then that will have a specific set of challenges/factors. its parallel to what i worked on quite a bit as a traveling nanny. minimizing the volume of clothing but having plenty of options for all kinds of situations. my solutions have been to find t-shirts with a plain white/grey/tan background and a design/pattern that includes tons of colors. the bottoms are all neutral colors with a trim or accent of on of the colors in the tops. so 5 shirts can go with 5 different bottoms. e.g. 3 short sleeve t-shirts, 2 long sleeve t-shirts can be paired with either leggings, sweatpants, cotton classic fit pants (w button to roll short into capri), knit straight leg jeans, cotton skort (with or without tights). and one dressier warm item and one casual warm item for top. e.g. one cardigan/one hoodie where the color trim on each matches one of the colors in each of the t-shirts.

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2.1 Sourcing Quote Email Trail

In the beggining of communication it was tough because of the chinese new year. We had to wait until all of our flats were ready to send off, because Pick Natural will make everything, it is our only manufcture.

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When he started to realize I was serious about a quote he was helpful, and made suggestions on the fabrics we chose within our assortment. He said the shipping terms were FOB China, He then said to just pick 3-4 to get a quote for so the quote trunaround time wil be accelerated.

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1.5 Impact Measurement Works Cited Breyer, Melissa. “25 Shocking Fashion Industry Statistics.” TreeHugger. MNN HOLDING COMPANY, 11 Sept. 2014. Web. 25 Jan. 2015.

Boston Consulting Group. “I Am a Millennial Video.” Barkley: A Fiercely Independent Advertising Agency.

Barkley, Winter 2015. Web. 18 Feb. 2015.

“Childrenswear in the US.” Passport. Euromonitor International, July 2014. Web. 14 Feb. 2015.

“Donate, Recycle, Don’t Throw Away.” Secondary Marterials and Recycled Textile Association (n.d.): n. pag. Web. 19 Feb. 2015.

“Global Connections.” Global Citizens Report Executive Summary (n.d.): n. pag. About Fedex. 2013. Web. 18 Feb. 2015.

McGrath, Jane. “How the Millennial Generation Works - HowStuffWorks.” HowStuffWorks. InfoSpace LLC, 2014. Web. 3 Feb. 2015.

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Nicholis, Adrian. “The social mum: Mapping the behavior of mums online.” Market Leader. (2015) WARC. Web. 7 February 2015.

“The Cost of Raising a Child.” Expenditures on Children by Families (n.d.): n. pag. United States Department of Agriculture. 2013. Web. 13 Feb. 2015.

“The Kids Have It.” Cotton Lifestyle Monitor. N.p., 04 Dec. 2014. Web. 13 Feb. 2015.

“The New Digital American Family.” The Nielson Company. WARC. 2011. Web. 7 February 2015.

“The US Economy in 2020: Recovering in Uncertain Times.” Monthly Labor Review (n.d.): n. pag.

Bureau of Labor Statistics. Jan. 2012. Web. 13 Feb. 2015.

Wang, Wendy. “Parents’ Time with Kids More Rewarding Than Paid Work – and More Exhausting.” Pew Research Center 2013. Web. 7 February 2015.

“F.A.Q.” PickNaturalcom. N.p., n.d. Web. 26 Feb. 2015. <http://picknatural.com/f-a-q/>.

Organic Cotton Market Report 2013. S.l.: TextileExchange, 2012. TextileExchange. 2013. Web. 26 Feb. 2015. <http://textileexchange.org/ sites/default/files/te_pdfs/2013%20TE%20Organic%20Cotton%20Summary.pdf>.

“Tips for Washing Baby Clothes.” Better Homes & Gardens. N.p., n.d. Web. 26 Feb. 2015. <http://www.bhg.com/homekeeping/laundrylinens/clothes/baby-clothes/>.

Fisher, John. “Tips for More Eco-Friendly Clothing.” Tips for More Eco-Friendly Clothing. The Nature Conservancy3, May 2012. Web. 26 Feb. 2015. <http://www.care2.com/greenliving/the-search-for-eco-friendly-clothing.html>.

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“Global Connections.” Global Citizens Report Executive Summary (n.d.): n. pag. About Fedex. 2013. Web. 18 Feb. 2015. <http://about.van.fedex.com/social-responsibility/global-citizenship-report/>.

“Donate, Recycle, Don’t Throw Away.” Secondary Marterials and Recycled Textile Association (n.d.): n. pag. Web. 19 Feb. 2015. <http://www.smartasn.org/>.

McGee, Suzanne. “The Growing Gap between Millennial Men and Women’s Wages.” The Guardian. Guardian News and Media Limited, 12 June 2014. Web. 10 Feb. 2015.

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Bundle of Love Sustainible Line Business Plan Project Created for: FASM 400 Section 01, Professor Meeta Roy By: Erin Nicole Kelley Sarena Foster Annastasha Willis Oiaoning Gu

1