Marea Inc.
Albert Johnson SunTrust Bank 425 Ocean Drive Miami, Florida, 33139
Dear Mr. Johnson,
During our last encounter we talked about our financial plan for our business. Enclosed is a detailed business plan that meets the criteria that we discussed at our last meeting to have a success pop up shop for Marea Inc. Within this detail business plan, the financial plan can be found in the Appendix, as well as a detailed layout of the overall business that describes the business as a whole and how we will achieve our goals. Thank you for taking the time to consider our business plan. We look forward to hearing from you AND your remarks, for this business journey on our endeavors. We look forward to becoming a loyal customer within SunTrust Bank with our Financial plans.
Sincerely,
:Shanel Wolf, Nicole Perez 1201 ocean drive Miami, FL,33139 Tel: (305) 698-6034 Fax: (305) 698-6035 Marea@marea.com
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Contents
Executive Summary Business Overview Critical Success Factors The Management Team The Market Financial Plan
Management Plan The Market Financial Plan\ Compensation Key Advisors/ Directors Merchandising/Product Plan Unique Characteristics Proposed Lines Proprietary Aspects four week Merchandise/ buying Plan Merchandise Assortment Markup/ Markdown Policies Brick and Mortar Location Plan Physical Location Location Features Target Market Considerations Leasehold Improvements Signage Web Plan Summary Web/ Social Media for 5 weeks Internet Strategies Web Development and Hosting Marketing Plan Industry Profile Market Economic Factors Market Analysis Summary Customer Profile 3
Competitive Analysis Publicity Promotional Events
Financial Plan
Pricing Pricing List Cash Requirement Break-even Analysis Projected Financials
Retail Operation Market Penetration Brand Strategy Advertising and Promotion Sales Strategy
Evaluation
Appendix
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Executive Summary Business Overview Marea Inc. was incorporated by Shanel wolf and Nicole Perez in 2015 and has an S Corporation status. Marea Inc. is a 4 weeklong regional pop up retail store offering unique and customized merchandise. The company will be located in Miami where the profit for swimsuit merchandise is very promising. The Store will house a variety of swimsuits, cover-ups, beach towels, beach bags, and sandals. The Marea customer is a woman that is between the ages of 22 to 50. who are into custom styles and high quality merchandise. Within the company we strive to offer the latest unique styles to offer exclusivity FOR OUR women that shop at Marea inc.
Critical Success Factors For Marea Inc. to successfully accomplish the goals and objectives to perform well the following needs need to be met within the company: -Hiring knowledgeable associates that understands the target consumer -The location and positioning of the store is very important, to obtain the Most volume within the store as possible.. key shops that are relevant to be beside the store should also be taken into consideration when examining location spots. - Evaluate each and every product that will be sold and determine if they will sell profitably. -Develop new products while maintaining high quality of existing products. Ensure that your products are created or chosen in response to the needs of your customers. -creating a creative space of 300 square feet of high quality ladies swim wear and related accessories. -have an initial flow to set the floor for floor sets for the first week and restock new merchandise for the next two weeks every thursday.
The Management Team Marea Inc. will be managed by the co-founders and owners Shanel Wolf and Nicole Perez who have a combined total of 10 years within the business of fashion merchandising, marketing, visual merchandising and business management experience. There will be two full time associates and one part time associate for a total of three sales associates. Within those associates that are full time theRE will be two key holders that will open and close the store. the company will take the time out to interview the top potential workers that are responsible and can handle multi-tasking skills. 5
Management Plan The Market Marea Inc. product manufacturing will take place in Colombia. The manufacturer will provide us with luxury fabrics at a low price point making our margins bigger. We have an agreement with the manufacturers that our designS canNOT be sold to any other retailer, given that our main focus is giving our customer exclusive and unique merchandise. Our luxury customer is NOT worried about price points but more of exclusivity and quality. -Estimated sales projection for the 4-week period will be $80,000,.
THe financial plan Marea inc. will be seeking out a $50,000 loan for 33.33% of our business, making us equal partners and giving marea inc. an availability of substantial funds, in the case it IS needed for future orders.
Compensation Management Compensation Owners will not have a specific wage, 30 percent of the net profit will be split amongst owners according to ownership percentage.
Personal compensation Part-time associates will be compensated with an hourly rate of 12 dollars and 50 cents and work a minimum of 15 hours and a maximum of 25 hours a week. Full-time associates will be compensated with an hourly rate of 14 dollars, working between a minimum of 30 hours and a maximum of 40 hours a week.
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Key Advisors Lawyer Brian W, pairiser esq. penthouse 1, Suite 1718 9155 south dadeland boulevard maimi, fl, 33156-7851 Telephone: 305-423-9912 Fax: 305-670-6203
Accountant Greenlight financial 5301 blue lagoon dr. 180 Miami, Florida, 33126 Telephone: 305-860-5970
Insurance iris lopez state farm 2700 southwest 3rd ave. 1a miami, florida, 33129 telephone: 305-858-5553
Marketing roar media 150 alhambra circle 725 coral gables, florida, 33134 telephone: 305-403-2080
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Merchandising/Product Plan Marea Inc. will carry luxury, private label swimwear and accessories in order to provide our customer everything she needs for a day in the most luxurious hotels and private pool parties. Marea Inc. will offer a variety of swimwear styles from bikinis, monokinis, and one piece. Marea Inc. also offers a variety of accessories that include cover-ups, beach towels, beach bags, and sandals.
Swimsuits 60%% bikinis 35% One Piece 15%% Monokinis 10%% Cover-ups 15% Shoes 12%% Beach Bags 9%% Beach Towels 4% Unique Characteristics Marea Inc. will carry luxury, private label swimwear and accessories. The merchandise assortment consists of exclusive Swimsuits, Cover-ups, Shoes, Beach Bags, and Beach Towels. Marea will offer exclusive one-of-a kind merchandise developed by the co-founders and owners of Marea Inc., manufactured in Colombia, known for their excellent quality in swimwear products. These unique characteristics will give Marea Inc. a competitive advantage over it’s competitors.
Proposed Lines Marea Inc. will only carry it’s exclusive private label Marea. The products will be developed by both co-founders and owners Shanel Wolf and Nicole Perez. Merchandise will be manufactured in a swimwear manufacturer in Colombia, known for the cheap labor and excellent quality.
four- week Merchandise/ buying Plan See Appendix.
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Merchandise Assortment The merchandise classification will breakdown as follows:
Swimsuits 60%% bikinis 35% One Piece 15%% Monokinis 10%% Cover-ups 15% Shoes 12%% Beach Bags 9%% Beach Towels 4%%
Hatler, Bandeau, Triangle Solids, Embroidered, Prints Solids, Embroidered, Prints Solids, Embroidered, Prints Dresses, Tops, Skirts, Jumpsuits Wedges, Sandals, Espadrilles Crossbody, Shoulder, Tote solids, Embroidered, Prints
Markup/ Markdown Policies Marea Inc. will operate in a full price method. Given that our customer looks to buy luxury items. we wILL NOT have any markdowns for the period of the pop-up shop appearance, as any sales event would diminish THE brand. The price of each product will include the cost of production, percentage for creative process, and any expenses related to rent and payroll.
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Brick and Mortar Location Plan Physical location The location of the store will be on ocean drive in Miami, Florida. This location is more of a tourist location, in which this area is a one stop shop strip that offers things such as restaurants, entertainment shopping and also the beach on the opposite side of the street, We are near designer house brand names such as Michael kors and Gucci. This location was chosen because; high volume and traffic will flow in the store. This will happen because of the strip that we will be on that offers different resources that many people might want or need. Address :1201 ocean drive Miami, FL, 33139 Hours: Monday-Saturday 10am- 6pm Sunday: 12pm-6pm
Location Features Marea inc. is being placed in a vacant spot that once was an old boutique store for general clothing that unfortunately did not make their sales quota that was needed to keep their store. After examining the store as it had a stock room along with fitting rooms and the right location the store IS bound to sale MAREA INCS. merchandise. The place is 300 square feet and within this space it is important to position the merchandise in the store that is appealing in the store as it is outside of the store to attract customers. While ocean drive is more of a strip shopping center theRE will be a lot of traffic that will be by foot and by taxi, This gives our traffic flow an increase because of the amount of consumers that walk the streets of ocean drive and those that go to the beach in between. in the store there will be elements that signify the ocean, For example the walls will be painted blue grey and the tile floor will be a marble white. Also accents of the ocean water will be a back-splash on the walls of the dressing rooms. The overall feel is to have a more exclusivity atmosphere when coming into the store. The dressing rooms will have the white marble look on them to give a nice clean finish and the displays within the store will be more of a boutique type style, only particular sizes will be featured on the racks, this way the spacing between the items will show the entire swimsuit attire along with additional items that can be featured.
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This location is a fantastic location where the view of the store will attract the customers in, along with giving the customers something they have not seen before, which brings excitement for the staff and the clients. This store will give a very sophisticated, upscale look oF what women swimsuit storeS experiences should be.
Target Market Considerations The target market for this store is the more upscale sophisticated woman. While many wealthy women and men shop on this strip mall, this will cater to that woman that is looking for the latest exclusive bathing suit that no one else has on the beach. Like mentioned before in the above paragraphs, the positioning of our store is around many Designer brands, which allows uS to have that client come into our store to shop and get the same experience as a luxury designer store.
Leasehold Marea inc. has contacted the city of Miami to obtain the correct documents to maintain and conduct business. All local licenses and permits will be gained as required by local and state regulations.
Signage see in Appendix.
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Web Plan Summary Web/ Social Media for 8 weeks Marea Inc. will be using social media and the web to do the great majority of the marketing. We will use Facebook, Instagram, and Twitter, with a great emphasis on Instagram than the rest to market our product. On every social media webpage you will be able to find us as Marea. We will be posting daily on every social media during the duration of the pop-up, two weeks before, and two weeks after. We will post a look of the week that will illustrate the most popular items for that week. We will also post any celebrity or socialite appearances with our products. We will strive to have an omni-channel business model. We want our customer to have a seamless experience when surfing through our websites and social media portals as well as with our brick and mortar store.
Internet Strategies We feel like our social media websites should reflect the brand aesthetic. They will be minimalist, with white backgrounds and pops of color with the merchandise we post. Straight to the point messages with details of the products being displayed. Below are mock up examples of how the websites would look like.
Mock Screen Shot see appendix.
Web Development and Hosting A SCAD Alumnus that is close friends with the co-founders and owners Shanel Wolf and Nicole Perez will develop the Website. This will be an exchange between the website designer and the company. The terms are that the designer will provide a fully working website in exchange of exposure of his work therefore the website will be of no cost to the company. Marea will only do Brick and Mortar sales given that the merchandise assortment will be limited for the pop-up shop capabilities. The website will serve as a visual catalog of our merchandise and as an information center of our events and store openings.
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Marketing Plan Industry Profile Recently, on trend reports article states that there is a variety of pop up stores, arranging from modular retail establishments housed in shipping containers. Regardless of the format, there are several advantages setting up a pop up establishment; Afford-ability, short-term commitment, generate buzz, testing experimentation, encourage spontaneous purchases, and brand extension. Marea inc. will proudly enter the pop up shop industry in a peek season and taking on every advantage of entering this business, with the excitement of offering customers quality garments for the summer.
Market Economics Factors Marea inc. will be in Miami on ocean drive, the foot traffic that those goes on, on ocean drive is at a rapid and high foot traffic pace. Within this part of Miami, this is a very popular and very tourist area. It is said that new retail stores have opened in Miami affective as of spring 2013, which has increased the traffic flow of new stores that have formed around the city. The 2014 south beach population is 3,911 of which 28.61 percent represents marea inc. target market. This reaches a variety of ages ranging from 18 to 54. The Population in south beach has been constantly growing since 1990 having a population of 2,531 to 2014 having a population of 3,911. Moreover, south beach has a population density of 1,439 people per square mile, in which the total land area is 2,718, which gives the company a large advantage to perform well. While there is an increasing residential population within south beach, There is a high volume of seasonal tourist. The peak season for tourist activity in south beach are during the months of May, June, July, and august. Each year Miami beach hotels host over 35 percent of the ten million tourist who visit the greater Miami area. These hotels may range from motels to luxury hotel chains. The tourist demographics go as following: -average size of party: 2.3 -length of stay: 6.6 nights -age: 42.6 -male: 67.9 percent -Female: 32.1 percent 44.1 percent of tourists are non- U.S. residents and the majorities are latin American decent. This gives marea inc. a great advantage to reach this large latin market, given that the brands name is Spanish, which makes the company more relatable to the great majority. 13
Market analysis summary Marea inc. target market are women between the ages of 22 to 50. This woman prefers quality over quantity along with exclusivity within her clothing.. this sophisticated woman will have luxury pieces from marea inc. and will be forever tied to the brand and will be a loyal customer within years to come.
Customer profile Marea inc. customer is a woman of sophistication that enjoys spending her leisure time with friends and family in exclusive environments. She works as an interior designer, taking on projects for high profile customers. As she takes great detail into her work, she mirrors that same detail into her clothing. She enjoys traveling and visiting exotic places in either first class seating or private jets enjoying her beverage of choice, which is nothing less that dom perignon.
Competitive analysis Direct Beach bunny swimwear: -Although beach bunny’s customer is younger the price points are very similar. -offer a similar merchandise assortment -heavy use of social media and promotions
Onda de mar: -cliental are very similar -price range,\ -merchandise assortment,
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indirect The orchid boutique: -price range is no more than 2o0 dollars -merchandise assortment is stylish but more relaxed -target customer is between the ages of 20 to 26, while marea’s customer is broader in age.
Publicity Marea Inc.’s opening will be publicized through flyers handed out at exclusive events at luxury hotels near by along with having a flyer in the local newspaper and through social media. There will also be a day party to help promote the store, where women will have to come to the store and try on at least one to two pieces of swimwear, in which they will receive a ticket for an exclusive day party that will have complimentary wine and food.
Promotions Marea inc. will not partake in promotional activities, being that our client can afford our price pointed merchandise. Promotional Mock up FLyer see Appendix
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Financial Plan pricing Marea Inc. strives to have a competitive advantage as far as pricing with our merchandise, as our clients take pride in having an exclusive edge to their clothing. As both founders of Marea Inc. have been in the retail business for many years, both parties have decided on the pricing, providing accurate and acceptable prices for each item within the store.
Pricing strategy Our pricing strategy is based on comparison analysis from related swimsuit shops that offer the same quality of merchandise. We have chosen this strategy to have a competitive advantage and allow our brand to represent the target market of our specific cliental.
Break-even Analysis the break even point based on sales from our pop up shop for a four week period is 116 units.
Cash Requirements Based on our projected sales and expenses Marea Inc. will be seeking for a loan in the amount of $50,000. The funds collected from the investors will be used to cover start up costs that include expenses for opening and maintaining the pop-up shop for the duration of four weeks and for buying inventory for those 4 weeks. It will also be used for marketing and promotional purposes.
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Projected Financials Improvements: Fixtures: $2,000 Cleaning: $200 Painting: $500 Install POS system: $50 Signage Install: $300 Total: $3,050 Other Location Costs: Rental: $4,500 Monthly Internet: $90 Insurance:$$4000 Office Supplies: $200 Sales Tax Permit: 1000 Utilities: $500 Total: $10,290
Capital Expenditures: POS System, Cellphone based: $800 Outdoor/Indoor Signage: $800 Promotion: $3000 Compensation: $5230 Cost of goods sold: $20,000 Total: $29,830
overall Total: $43,170 Gross Profit: $36,830 Owner salary (30%)%$11,049 Net Profit:$25,781
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Retail Operation Market Penetration Although our social media presence will be very strong, we will target our customer basis directly with face to face advertising showing our potential customers our merchandise before them stepping into the store. Our strategy is to go look for our customer not make them come to us. With a more active advertising strategy we will have a bigger market penetration.
Brand Strategy We plan on cultivating a loyal customer basis by staying true to our brand through out the years. We plan to keep the same graphic line and aesthetic throughout all of our social media portals, websites, and brick-and-mortar location.
Advertising and Promotion Marea Inc. will be doing most of its advertising and promotion through the social media portals. We will send our models to promote the merchandise by wearing our product and walking around the beach and advertising the store by handing out flyers. They will also gain access to the private pool parties of the many hotels on South Beach to promote our merchandise as well.
Sales Strategy We will keep track of our sales and customers by imputing the customer’s information that includes name, email, phone number, and area code into the POS system with their purchase. We will use this information to keep track of what each customer is buying and to send personalized emails of what merchandise they could be interested for their future purchase.
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Evaluation Based on the above documents that factor in everything that we at Marea Inc. need to start our business, it shows that we hold the capability to act as a sustainable business. As this pop up shop is only 4- weeks in running, this shop gives the customer unique and quality merchandise that cannot be found anywhere else. As our customer enjoys exclusive items and prefers quality over quantity, we feel that we will offer our customer merchandise that they can hold onto for a significantly long time. Along with having a competitive advantage for our unique swimwear, we will have no trouble reaching our goals for the 4 weeks of service. We at Marea Inc. believe in offering the most distinctive swimwear where customers appreciate not only the craftsmanship but the unique styles as well.
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appendix
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4-week Merchandise/ buying Plan
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signage
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Look of pop-up shop
Bathroom
Merchandise
Register
Small Storage
Seating Area
Visual Merchandise
Fitting Rooms
Merchandise
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Mock screen shots
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New arrivals
Swimwear
Cover-ups
Shoes
Beach Bags
Beach Towels
LookBook
Mix&Match
Blog
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mock event flyer
Beach Party Saturday
June 5 2015
Sample text Sample text Sample text Sample text Sample
Back of Flyer
Front of Flyer
Come visit Marea Inc and try on at least one piece of our exclusive swimwear and get invited to an exclusive beach party Marea Inc.
1201 Ocean Drive Miami, Florida, 33139
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Bibliography Cover Page: http://www.dailymail.co.uk/tvshowbiz/article-2069351/Rosie-HuntingtonWhiteley-shows-stunning-figure-sexy-new-shoot.html http://www.miamidadematters.org/modules.php?op=modloadname=NS-Indicatorfile=indicator &iid=17722723
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Marea Inc. Prepare by: Shanel wolf and Nicole perez Date Prepared: may 25, 2015
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