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SPRING/SUMMER 2016 Makala Mulder & Stefanie Sandoval
“The Pour Hommes man believes it is the little things that make an outfit” • Pour Hommes, Inc., is a 4 – week long local pop – up shop retail store offering high end men’s accessories • One location: The Neiman Marcus in Atlanta • The high quality accessories for men: • ties, cuff links, pocket squares, socks, & wallets
• A conservative professional man in his 30s • Affluent with great careers • Married with/without kids or serious relationship • Modern luxury
Executive Summary “The company’s mission is to offer excellent quality in men’s accessories, allowing the Pour Hommes, Inc., man to express his creative side while still keeping his professional style.” Critical Success Factors
• Location: sectioned near the men’s professional/business attire. • Where is the best place to put the pop – up shop. • Creating successful usage of the 300 sq. ft. The room so our customer can move around the space. • Hiring associates who understand the company’s aesthetic, the target market, and exhibits great customer service.
Management Plan The Market • The merchandise mix at Pour Hommes, Inc. includes menswear accessories such as: pocket squares, ties, wallets, socks, and cuff links. Business Structure • Pour Hommes will be a closely held S corporation owned by its two partners in the following percentages: Makala Mulder at 51% ownership and Stefanie Sandoval at 49% ownership. • Makala Mulder will hold a share of 51 – shares and Stefanie Sandoval will hold a share of 49 – shares amounting to a total of 100 shares of common stock. • Financial Plan • We will have relatively high start – up costs because the merchandise assortment is handmade. • Taking into account the value of the materials and the evaluation of projected sales • We will be seeking a loan in the amount of $35,000. • These funds will be used to cover said start – up costs for opening the business as well as marketing and promotional efforts. • Pour Hommes anticipates a net profit of $70,000. • The two owners will insert equity in the form of $5,000 each in cash and will negotiate all business assets for a subsidiary loan.
Patterns
Management Compensation • The two owners will receive no wages for the duration of the pop – up shop. Instead the owners will divide all net profits according to their ownership percentage. Employee Compensation • Full time sales associates will earn $13.00 per hour for thirty – three hours per week. Communication • Knowing the policies, procedures, current marketing activities, and new products, will help keep all employees up – to – date weekly. • Meetings will be scheduled at the beginning of every week • week’s sales goal, proper merchandising of the products, effective store operations and the overall aesthetic appearance of the store.
• Will keep objectives in mind and the store organized.
Key Advisors
Merchandise & Product Plan Merchandising/Product Plan • The Pour Hommes, Inc., line will carry unique and sophisticated men’s accessories designed by Makala Mulder and Stefanie Sandoval. • The styles and designs of the accessories will be focusing on the Spring/Summer 2016 trends:
• Ties – 30% floral, paisley, solids, & color blocking • Pocket Squares – 15% floral, paisley, solids, & color blocking • Cuff Links – 15% silver, gold, rose gold, monogram, & wooden • Socks – 20% floral, paisley, solids, & color blocking • Wallets – 20% variety of colored leather, reptilian, & monogram Unique Characteristics • Pour Hommes, Inc., has one of a kind products, all handmade in the metropolitan area of Georgia. Collaborating with the Neiman Marcus in Atlanta, Pour Hommes, Inc.’s four week pop-up shop will provide an exclusive advantage among other luxury department stores in the Atlanta area. • These accessories cannot be found anywhere else and are unique within their competitive market.
Markup/Markdown Policies • Since Pour Hommes, Inc., is handmade, the price of the accessories depends on the fabric used and the amount of time it took to design each piece. • Pour Hommes, Inc., markup will be placed at a suggested 61% markup. • The pop-up shop will not be anticipating markdowns within the 4week period. • The pop-up shop will have an end of the month promotional event for the remaining merchandise. • Liquidate inventory
Proposed Lines
DETAIL OF ABSTRACT LANDSCAPE BY THOMASA SEYMOUR
4 – Week Merchandising Plan
Brick & Mortar Location Plan • Located in Neiman Marcus in Buckhead, Georgia at the Lenox Square shopping center, on the lower level within the menswear department. • abundant amount of restaurants, shops, gyms, hotels, and various housing.
• Pour Hommes, Inc.’s 300 sq. ft. pop – up shop will be divided into selling and inventory space.
• Inventory space will consist of a small back room closet to store merchandise & personal belongings.
• The store:
• adorned with dark hard wood floors, silver metal accents on displays and fixtures, matte black round display tables with glass to elegantly encase products for viewing, two burgundy velvet chairs, dimmed lighting, and masculine decorations.
• All of these features will help enhance our contemporary, clean-cut, and dark masculine aesthetic separating Pour Hommes, Inc., from its neighboring benchmark brands.
Store Layout
3D Viewing
“Home of many wealthy residents who are married with/with out children or affluent singles. As a result, many of the businesses in this area cater to these residents and, therefore, their price points reflect the resident's’ ability to pay for luxury with ease. Additionally, non-residents can very easily access Lenox Square Mall via public transportation systems such as taxi, Uber, Lift, and MARTA”. Leasehold • Little improvement will be needed to make the space for Pour Hommes, Inc.’s space functional and inviting under our prevised aesthetic. • Improvements: • • • • • •
Flooring: $1,500 (February 1, 2016) Lighting: $200 (February 8, 2016) Internet: $50 (February 8, 2016) POS System: $100 (February 8, 2016) Phone: $50 (February 15, 2016) Furniture (rented): $1,000 (February 11, 2016)
• Décor: $200 (February 11, 2016)
Signage • Signage will be placed above the registers to show the name of the brand. • Signage: $200 Other Costs: • Rent (utilities included): $3,500 for the 4 – weeks • Monthly Internet: $200
Web Plan Summary Web/Social Media • With today’s constant technological advances, Omni – Channel is very important.
• Social media platforms, Facebook, Twitter, and Instagram in order to market and broadcast our products, @PourHommes. • During the 4 – weeks, we will post at least once a day indicating popular or upcoming items, a collaboration, or celebrity customer in order to further entice customers to visit Pour Hommes, Inc.
Internet Strategies • Web presence show casing all our products, about Pour Hommes as a company and brand, descriptions of its founders, contact information, locations, and access to purchase items and pay online. • In terms of the website’s overall feel and layout, www.pourhommes.com will reflect the same dark, modern gentleman aesthetic we are conveying in our physical location, in order to establish a brand identity to our customers who may visit us via multiple platforms.
• Web Development and Hosting • The click and mortar is through Squarespace Commerce in order to create and publish our online presence. • Through this platform, the owners have been paying a monthly installment of $22.95. • Our web presence has already been established for some time now. • Owners Makala Mulder and Stefanie Sandoval have a Full – Time Personal Assistant who receives wages in the amount of $18.00 an hour for 40 hours a week. • This bi – lingual assistant answers customer emails and phone calls, establishes meetings, and runs errands. This assistant is also in charge of communicating that certain items have been sold out on the website.
The Website
Marketing Plan Industry Profile • According to Forbes, there are numerous benefits to do a pop – up shop. • Besides sales, include brand awareness through the press, media, influencers and customers, and customer education meaning a
more in-depth education of the value proposition and product offerings. • Physical experience within the brick and mortar environment. • The value of pop – up shops over the last couple of years have shown a 35% increase in sales from when the doors open to 6 months after the doors are closed.
• Additionally, 50% of these pop – up shops see an average increase of 30% on social media engagement.
Market Economic Factors • Pour Hommes, Inc., will gain foot traffic through the loyal Neiman Marcus customer. • The U.S. Census Bureau’s 2013 census for Atlanta estimates a total population of 447,841. • The Buckhead district has 96,000 jobs, mainly in legal and retail administration (Buckhead View). • The U.S. Census indicates that there are 46.5% males living in the Buckhead area. With an affluent male population who earn more than $75,000 a year, there are many potential customers for Pour Hommes, Inc., within the Buckhead community. Market Analysis Summary • Pour Hommes, Inc., will target the older affluent sophisticated man from their 30s and up. • The market for men’s accessories remains based on quality, style, and social class. • The male customer is not concerned about paying a high price for handmade quality designs.
Customer Profile • We are targeting men in their 30s with an annual income of $100,000+ • Our customer is aware of the overly corruptive manufacturing industry, he is satisfied knowing that our company is produced in America, in a small shop in Atlanta, GA. Competitive Analysis • Direct Competitors:
• Stefano Ricci: • Stefano Ricci is our most direct competitor because their style and aesthetic is similar to ours.
• Indirect Competitors:
• Salvatore Ferragamo: • Their accessories are bright with playful designs but have patterns of insects and animals on them. • Our accessories will have designs such as floral and paisley.
Publicity • Pour Hommes, Inc., will publicize the brand through the Atlantan and other local news applications. • It will also be publicized on the Neiman Marcus website, advertising the new brand through the Neiman Marcus click and mortar, which will gain the attention of the online customer who does not live in Georgia. • Exclusive invitation to the socialites who live in the Atlanta area. • Social media. Promotional Events • Debut show case of what the brand has to offer to the Neiman Marcus customer. • We will be discussing the brands mission, image, and their unique designs. • Customers are able to get to know the brand and its owners while enjoying exquisite red wine.
• For other promotional events, Pour Hommes, Inc., will have an event that will be held during the last week of the pop – up shop. • Customers will be able to receive a special deal that consists of 10% off their entire purchase.
Financial Plan Pricing • Pricing depends on the quality and time it took to create each accessory. • Factoring cost of materials and hard ware as well
Price List • The retail price for each accessory will range from $75 to $300 or more. • The price is the same on the click and mortar sites for Neiman Marcus and Pour Hommes, Inc., but includes a $5 freight charge
Cash Requirements • Pour Hommes, Inc., is expecting a loan in the amount of $35,000. • The funds from the loan & cash investments will be used to cover the start – up costs. • Funds will help with the building the store front & promotional and marketing events.
Inventory: • Pour Hommes, Inc., will have back stock of inventory, not an excessive amount of inventory but enough to have extra quantities of merchandise. Taxes/Licenses: • The business license amounts to $200. Cash on hand: • Cash on hand amounting to the total of $10,000, which will cover any other expenses in the start – up costs. Loan:
• Pour Hommes, Inc., start – up loan is requested in the amount of $35,000. The loan has an interest rate of 15 percent for a period of one year. The loan and equity is defined below: Security Deposits:
• Rent – $3,500 ($875 x 4) • Telephone – $200 ($50 x 4) • Utilities – $300 ($75 x 4) • Other – $400 ($100 x 4)
Start – up Costs: • Insurance - $4,000 ($1,000 x 4) • Accounting fees – $1,500 ($375 x 4) • Legal and consulting fees – $2,000 ($500 x 4) • Office supplies – $1,000 ($250 x 4) • Pre – opening advertising & promotions – $10,000 ($2,500 x 4) • Printing – $1,500 ($375 x 4) • Sales tax permit – $2,000 ($500 x 4) • Other – $2,000 ($500 x 4) Capital Expenditures: • POS System, Store phone based – $600 ($150 x 4) • Fixtures – $1,200 ($300 x 4) • Signage – $800 ($200 x 4) • Leasehold Improvements – $1,750 ($437.50 x 4)
Break-Even Analysis
• Pour Hommes, Inc., break-even point is based on sales from our 4 – week period is $63,250; 527 units. Projected Financials • Pour Hommes, Inc., pro forma financial statements for the 4 – week period is stated below. These financial statements should be assumed by the following: 1. Innerwear = Socks 2. Outerwear = Ties & pocket squares
3. Shoes = Cuff links & wallets
Retail Operation Market Penetration • Brand Strategy: • Through sophisticated and alluring advertising, Pour Hommes, Inc., will be promoting through the Neiman Marcus website, Social Media, and local news applications. • The pop – up will be promoted through Pour Hommes, Inc., click and mortar as well. • Pour Hommes, Inc., wants their male customer to feel comfortable and savvy within Pour Hommes, Inc., store; the epitome of luxury shopping. • We will be designing all our own advertisements using Creative Cloud. • This will allow us to have control over the advertising in order to maintain the brand image.
• Strategy: • Tracking the sales by obtaining the customer’s name and email. • Imputed into POS system along with the accessory the customer purchased. • Since the pop – up shop is only for a 4 – week period, there will be no out of fashion or past season merchandise. • Pour Hommes, Inc., is all about providing exceptional customer service • The loyal Pour Hommes, Inc., customer will receive special rewards for their purchases and a personal letter of recognition. • Pour Hommes, Inc., wants to promote exclusivity and luxury to its clientele, the Pour Hommes, Inc., man should leave the shop feeling satisfied and ready for future success.
• Advertising and Promotion: • Advertising primarily through social media, The Atlantan and other news applications. • Since we are designing the advertisements for the brand, there will be no cost spent on creating these ads. • An invitation will be sent out inviting the socialites of Atlanta to come to the premiere of the pop – up shop. • We will obtain the information of the socialites through the loyal Neiman Marcus customer of Atlanta.
Evaluation of results • Through thorough research of economic and financial factors, Pour Hommes, Inc., would be a triumphant business. • Pop – up shops are becoming more and more popular in the retail industry • We will flourish in today’s fast retail environment while avoiding the financial burdens that store fronts must deal with.
• Attracting our customer would not be a problem, given the location and luxury aspect. • The luxury customer is willing to pay for the price of great handmade quality designs.
• “Pour Hommes, Inc., believes in helping our customer dress for success while other companies fail to do so”.
Thank you!