DECOR ARTE
SILVIA ORDUZ SANTOS BA FASHION MARKETING & COMMUNICATION LEVEL 6, 2018-2019. MODULE TITLE: 6FAMN010C BUSINESS MODELLING AND MANAGEMENT BUSINESS PLAN EXECUTIVE COURSEWORK: CWK2 TEACHER/S: PABLO QUINTANO WORD COUNT: 1,500 IMAGES: 20
COURSEWORK 2
The main idea of ​​ this project is to suggest a viable business idea based on research that helps to evaluate the viability and outcomes of the business model. The aim of the project is developing a detailed and solid business plan for the business opportunity identified during Coursework 1.
TABLE OF CONTENTS 1.PROJECT AIM & RATIONALE
1.1 Business Plan Executive Summary
1.2 Market Trends
1.3 Business Objectives
1.4 Customers
2. EXPECTED OUTCOMES
2.1 Value for Customers
2.2 Value for investors
2.3 Revenue and profit projections: 5 years chart & monthly numbers
2.4 Calendar
3. REQUIRED INVESTMENTS (CAPITAL & NON-CAPITAL)
3.1 KEY ACTIVITIES
a) Media Plan
b) Communication Strategy
c) PR plan
3.2 KEY RESOURCES
a) Website & App
4. BUSINESS UNIQUENESS & DIFFERENTIATION
4.1 Wow effect: Value Proposition
4.2 Showroom experience
4.3 Sponsoring and product placement
5. REFERENCES
1.PROJECT AIM & RATIONALE What?
1.1 BUSINESS PLAN EXECUTIVE SUMMARY//
The idea is to change the conventional way of selling real estate while mixing it with art, interior design, and fashion. The business plan is to create showrooms in venues with the aim of not only selling/renting the venue but also what is showcased inside of it. To develop this business idea, the plan is to collaborate with different brands and artists to furnish the venue and make it more attractive for the real state buyer and showroom visitors. As a result, the real state’s owners will make a profit out of their goods while renting it for the event and will increase the chances of selling or renting it faster. In the other hand, the brands that are intended to collaborate with DecorArte must be concept stores with original and non-conventional goods, also the artist must have original concepts and innovative creations. Furthermore, the idea is to create not only a physical showroom but also a digital one, to reach this objective, the plan is to develop an innovative online platform where users can visit the online version of the physical showrooms presented as a 360º virtual gallery and interact with the products using technology.
PROJECT AIM & RATIONALE
MISSION AND VISION
The mission of this business idea is to sell real estate in a further dynamic way while seeing it as an opportunity to sell other goods from innovative and original brands. The vision is to become one of the most influential showrooms in Barcelona.
BRAND CHARACTER// ARTSY ORIGINAL ALTERNATIVE CONTEMPORARY PROGRESIVE INTERACTIVE CONCEPTUAL
PROJECT AIM & RATIONALE
Interior Design The interior design of the showroom varies depending on the theme, the plan is that each event has a different theme in order to create a surprise factor on the visitors and buyers each time they attend to the showrooms. The plan is to have a team of interior designers that create spaces inside the venue to correctly showcase all the goods that aim to be a sale. The furniture exhibited in the showroom should be different from what can be found on a conventional store, the idea is to showcase original, innovative and artsy pieces.
Art The idea is hibit their rior design each other. cific areas
to collaborate with both emerging and known artists and exartwork in the showroom. The plan is to mix art with inteand creating spaces where they both outstand and complement The idea is to place the art pieces and sculptures in spein order for them to look even more likable and attractive.
Fashion Fashion plays an important role in the showroom. The idea is to collaborate with independent designers who offer alternative and sustainable garments and jewelry. The cloth is going to be placed and showcased in the rooms of the venues to take advantage of these spaces.
1.2 MARKET TRENDS
ZERO WASTE Since customers have demand it, fashion brands have reduced the impact on the environment. Social responsibility is also heavily demanded when it comes to high-ended fashion pieces.
CUSTOMIZATION
Customization is a trend that have been implemented by several high fashion brands. This trend makes customers feel important and engaged with the brand.
SUPPORTING NEW TALENTS
Numeral fashion houses have recently collaborate with new talents, by doing this brands allow outsiders to implement their fresh vision to the brand.
PROJECT AIM & RATIONALE
DECOR ARTE
1.3 BUSINESS OBJECTIVES Launching the business idea Strengthen the brand’s promise and key message Increasing the brand presence in the target’s mind Using different media channels Positioning the brand in the market through the use of different communication tools and activities Earning media Wider brand extension and visibility for our client’s brands Connecting with the Spanish brand territory Reinforcing the relationship with the brand’s customers Establishing a wider audience within the key market for our client’s brands Generating traffic to the digital and physical showroom Increasing the sales volume for our client’s brands
PROJECT AIM & RATIONALE
1.4 CUSTOMERS This business model includes four consumers.
1. Real state owner This customer is interested in making its asset more profitable
2. Real state buyer Buyers who are interested in investing in real state in Barcelona
3. Brands showcased in the showroom Interior design brands, fashion designers and artists who offer alternative and original pieces. The idea is to collaborate with different brands during each showroom in order to always offer different goods and create a surprise factor in customers
4. Showroom buyers Medium-high class Spanish customers who have a high purchasing power and usually invest in art, fashion, and interior design. Moreover, they have a strong identity and are looking for not mainstream options.
2. EXPECTED OUTCOMES
2.1 VALUE FOR CUSTOMERS
PROFITABLE:
Helps independent business to make money out of the showroom and online store
SIMPLIFIES: The tech innovation reduces the complexity of a transaction and simplifies the buying process by offering immediate information of the product to the buyer.
INTEGRATES: It integrates different brands and goods in the same space
CONNECTS: It connects numeral brands and designers and helps them expand together
HIGH QUALITY: It will provide high-quality goods
VARIETY: Provides a variety of goods for customers to choose from
SELF-TRANSCENDENCE: Helps emerging designers to showcase their work and grow their clientelist
DESIGN & AESTHETICS: The showroom will provide an appeal for design, art, and fashion.
BADGED VALUE: It will represent an achieved status due to the price range of the products offered
ATTRACTIVENESS: The fashion section will help people to feel more attractive
PROVIDES ACCESS: The business idea provided access to different goods from different brands in the same space
EXPECTED OUTCOMES
2.2 VALUE FOR INVESTORS One of the reasons why this business idea was built, is to give more visibility to emerging brands and artists, with the intention of supporting new talents and that they have the possibility that their customers have a greater brand experience while they get to sell and expand their list of clients. For the designers who don’t have a physical store, the showroom will serve as a tool to give customers a brand experience. Our team will decorate the venue in a modern and innovative way using the latest trends in interior design, art, and fashion. For investors, investing in DecorArte will mean small risks since the rent of the venue is already covered by the commission fee the brands need to pay the company (see figure 2). The way this works is that brands will pay a commission of 5 to 8% of the total of the costs of the goods they are showcasing in the showroom. The investment return will happen at the end of year 3.
2.3 REVENUE AND PROFIT PROJECTIONS: 3 YEARS CHART & MONTHLY NUMBERS In this segment, a cost, and revenue structure for 3 years has been developed. The cost of the showrooms varies depending on how much the venue costs for 10 days. The most expensive resources in order to develop the business idea are renting the apartment and creating digital content.
Figure No. 1: This table explains the cost of the initial investment of the business idea
Figure No. 2: This table displays the average costs per event, however, the turn over differs depending on the venue.
Figure No. 3: This table displays the expected profits per event annualy
2019
Figure No. 3: This table displays the average costs expected on year 1 and the online revenues. During the exercise, I was intended to show an exponential growth of the annual revenues, being year one the lowest one.
2020
Figure No. 4: This table displays the average costs expected on year 2 and the online revenues. The second year the revenue increased compared to the year before.
2021
Figure No. 4: This table displays the average costs expected on year 3 and the online revenues. The second year the revenue increased compared to the year before and the initial investment is covered at the end of monthh 12.
2.4 CALENDAR
JANUARY
Brand activation on social media Launching the digital showroom for the last event Creating content for social media and website
FEBRUARY
Brand activation on social media. Photoshoot to create media content Creating content: Storytelling PR gifts to influencers Sales Campaign
MARCH
Brand activation on social media. PR gifts to influencers and brand Follow up the sales campaign Save the date for event # 1 Press release to announce event #1
APRIL
Brand activation on social media. Photoshoot to create media content Event follow up Creating content: Storytelling PR gifts to influencers
MAY
Brand activation on social media. Photoshoot to create media content Creating content: Storytelling
JUNE
Brand activation on social media Photoshoot to create media content Save the date for event # 2 Press release to announce event #2
JULY
Brand activation on social media. PR gifts to influencers and brand ambassadors. Event # 2 follow up Creating content for thewebpage and app
AUGUST
EVENT # 3: CHARITY AUCTION SEPTEMBER Brand activation on social media. Photoshoot to create media content. Event # 2 follow up
SEPTEMBER
Creating content for the youtube channel: Storytelling Acne Studios x H&M
OCTOBER
Brand activation on social media. Photoshoot to create media content. Event # 2 follow up Creating content for the youtube channel: Storytelling Choosing the brands and theme fot the upcoming event
NOVEMBER
Brand activation on social media. Photoshoot to create media content. Creating content for the app and website Seave the date for event #3
DECEMBER
Showroom Event Brand activation on social media Showroom event #3
EXPECTED OUTCOMES
3. REQUIRED INVESTMENTS 3.1 KEY ACTIVITIES
In order to build a brand identity and increase the shareholders in the market, the idea is to generate demand. As a strategy of expansion, the idea is to make the brand’s visibility wider, in order to complete this task, it is pretended to increase the exposure of the brand in social media to increase the brand awareness and address to my key target audience. The intention is to create a proper online communication strategy to expand the brand’s visibility. As another expansion strategy, the plan is to deliver enough products to meet the demand and to create an effective brand reputation, the idea is to constantly change and introduce new products to the portfolio in order to make it more dynamic. Also, having a team of engineers who are continuously improving the online experience of our customers since the idea includes technology on a large scale. Moreover, to keep the customers interested in the brand, the idea is to introduce points of interest regularly in order to generate awareness and to expand. The plan to reach this objective is to follow a communication plan on social media, introducing new developments, reinforcing the brand’s value proposition and creating a go- to- market- strategy. Also, as a strategy to grow, the idea is to generate interaction with our customers by sending them special offers, inviting them to special events and make them feel part of the brand. To reach this interaction with the customers, the idea is to have a fueling interest across the products offered online and answer rapidly to the questions our customers have. Since quality is an important aspect for my business idea, the plan is to deliver the products to sell online on time and ensure that the customer received the item satisfactorily. Finally, to certainly change the growth of the business, the plan is to incorporate long-term goals based on a short-term action plan. The objectives have to be measurable and track customers engagement, brand perception, and customer loyalty.
A) MEDIA PLAN The media plan aims to explain the selected online media that its pretend to be used in order to develop the annual communication plan. TARGET MEDIA: Photography, art, aesthetics, fashion & lifestyle Editorials with a strong influence of art Spanish Lifestyle and design-oriented digital magazines KEY MESSAGES: Artsy Experience Mixing art, interior design, and fashion with other forms of art and create different and appealing content B) COMMUNICATION STRATEGY On Instagram, the idea is to focus on posting daily images and videos featuring the goods in an artsy way. Moreover, creating innovative Instagram stories to promote DecorArte. Furthermore, the Instagram page will also serve as an online store due to the purchase feature, to promote the garments and generate more sales as it has the option to purchase an item directly from the picture posted. C) PR PLAN The plan is to do plenty of collaborations with influencers and celebrities in order to promote garments and increase brand awareness. Carlota Guerrero, Monica Armario and Helena Cuesta are some of the influencers we are pretend to collaborate with.
3.2 KEY RESOURCES WEBSITE & APP The key resources required to develop the value proposition is to create a proper online digital experience for the customers, since the business idea is technology driven. In order to generate brand awareness, the idea is to create a webpage and an app where customers can easily find us online and can learn more about the business idea.
4.
BUSINESS UNIQUENESS & DIFFERENTIATION
4.1 WOW EFFECT As an added value, the idea is to implement the concept of “sharing economy” to the business idea, since the plan is that the brands collaborating with us share their access to goods and services with the other brand’s clients. The idea is that brands that collaborate with each other in the showroom by share their client’s database with us in order to invite those people to be part of the event. This strategy is very attractive for the brands because their products will have more visibility, will help to establish a wider audience in the key and strengthen their consumer & brand relationship In the other hand, the real state owner will have the opportunity of making their assets further more profitable.
4.3 PRODUCT PLACEMENT
For product placement, each product displayed in the event will include QR codesinteraction through the app. The guests will be able to use the app to scan the garments and this will take them to our webpage where they will be able to see videos on how the product was made, its materials, cares and price. They will be able to purchase the garment using the app or at the physical event
4.2 SHOWROOM EXPERIENCE The plan is to create a further dynamic experience for customers and the showroom by implementing augmented reality. The idea is that customers can interact virtually with the piece they are interested in buying and see how can it looks on the space they want to place it. Before the event starts, the plan is to create visual content for the website, in order for the showroom to exist virtually after the event has ended and to continue generating sales of the products exposed. Moreover, also as an added value and as part of the business idea strategy, the idea is to implement QR codes in the products showcased in the showroom. When the visitors scan the codes places next to the good, they will be able to get to know better the product the aim to buy, the would see who is the designer, what materials they use to manufacture it, the price, color range, among others. Also, if the customer is interested to buy it, they should order it directly by using the QR code.
REFERENCES
Block, N., Alquimist, E. and Senior, J. (2018). The 30 Elements of Con sumer Value: A Hierarchy. [online] Harvard Business Review. Available at: https://hbr.org/2016/09/ the-elements-of-value [Accessed 8 Dec. 2018]. Emotive Brand. (2018). Business Growth Strategies for a Brand Turnaround - Emotive Brand. [online] Available at: https://www.emotivebrand.com/business-growth-strategies/ [Accessed 8 Dec. 2018]. Clark, T., Osterwalder, A. and Pigneur, Y. (2012). Business model you. Hoboken, N.J.: Wiley. Www2.bain.com. (2018). Elements of Value interactive graphic - Bain & Company Insights. [online] Available at: http://www2.bain.com/bainweb/media/interactive/elements-of-value/# [Accessed 8 Dec. 2018]. Kotler, P., Kartajaya, H. and Setiawan, I. (2017). Marketing 4.0. Hoboken, New Jersey: John Wiley & Sons, Inc. Morgan, J. (2018). Why The Collaborative Economy Is Changing Everything. [online] Forbes.com. Available at: https://www.forbes.com/sites/jacobmorgan/2014/10/16/ why-the-collaborative-economy-is-changing-everything/#6e20fe7d28a1 [Accessed 8 Dec. 2018]. Publications, W. (2018). Doing Business 2019. [online] Issuu. Available at: https://issuu.com/ world.bank.publications/docs/9781464813269 [Accessed 8 Dec. 2018]. Somma, M. (2018). 7 Key Considerations For Brand Expansion | Branding Strategy Insider. [online] Branding Strategy Insider. Available at: https://www.brandingstrategyinsider. com/2014/11/7-key-considerations-for-brand-expansion.html#.XAsVLhNKjPA [Accessed 8 Dec. 2018].