Coach Pop Up Shop by Victoria Strong

We see POSSIBILITY in the impossible, we nurture AUTHENTICITY, we integrate INDIVIDUALITY and teamwork and fuse CREATIVITY and logic.

TABLE OF CONTENTS Executive Summary

Company Overview

UK Market Analysis

Target Consumer

Coach Pop-Up Shop: London

Communication/Promotion

Financial Plan

Conclusion

EXECUTIVE SUMMARY The Coach brand is something built off of authenticity, innovation, and relevance. Founded in the 1940’s in a family-run workshop on Manhattan’s 34th street, Coach became the pioneer in the leather goods and accessories business. Fearlessly establishing the company as the original American house of leather for the generation, the brand is built on the idea of becoming the company that defines global and modern luxury. This Coach pop-up shop is a way to introduce the new Coach Man to the world. To celebrate and honor the individuality of the man and who he is becoming in the heart of London, England, we plan to blend the brand’s historic legacy with the ever changing environments of design and fashion. The pop-up shop will focus on men’s ready-to-wear and accessories, since the demand for these items has escalated through recent years. This event aims to raise brand awareness in a mostly untapped market, exclusively focusing on testing out the appeal and attraction of the menswear market abroad. This pop-up shop will continue to inspire the man whom is stimulated by the brand’s rich heritage and for the endless possibilities that lay ahead when shopping with Coach.

COMPANY OVERVIEW Coach, Inc. is a U.S. heritage lifestyle brand based in New York that started as a family-run business in 1941. The company set out to become the “accessible luxury” brand for the new generations (About Coach), but today Coach is taking a different direction with the new creative director Stuart Vevers. The company wants to become a lifestyle brand that offers a broad product category of high-quality goods at an affordable price point. The brand sells leather bags, accessories, footwear, apparel, travel goods and other lifestyle products for the contemporary man and woman. These products are distributed in approximately 35 countries through department stores, Coach retail locations and their online websites. Coach has created shop-in-shops in department stores such as Macy’s and Bloomingdales to keep the brand image cohesive. Coach is a publicly traded company, listed under COH on the New York Stock Exchange and 6388 on The Stock Exchange of Hong Kong Limited (About Coach).

CORPORATE STRUCTURE

CREATIVE DIRECTOR Stuart Vevers

CEO Victor Luis

CFO Jane Hamilton Nielsen

PRESIDENT Gerbhard Rainer

FUTURE GROWTH

Coach is evolving into a global lifestyle brand. Recently they moved into the ready-to-wear sector, launching women’s for fall 2014 and men’s for fall 2015. The men’s section is growing to offer more products to the modern man as well. The new direction for Coach will be evident in the retail spaces; new store layouts and environments will be created. The “re-platforming” will cost around $570 million and will take place between the 2015-2017 fiscal years. Vevers collaborated with William Sofield to create the design to reflect the new Coach. CEO Victor Luis said they wanted to focus on Coach’s DNA and history, incorporating leather and New York’s architectural details (McCarthy).

SWOT ANALYSIS STRENGTHS

WEAKNESSES

Well-known brand

Confusion in Desired Market

Strong Customer

Easily Counterfeited Goods

Loyal Customer Base

Low market penetration in Europe

High Quality Goods

Expansion of Factory and Outlet

Accessible Luxury

Stores have caused financial and

Multi-Channel Global Distribution

brand image issues

OPPORTUNITIES

THREATS

Growth in emerging markets (China)

Highly saturated handbag market

International availability

Strong competitors (i.e. Michael

through websites

Kors) in affordable luxury market

Technology integration in retail stores App advancements

BRAND IDENTITY MATRIX

PRODUCT

SYMBOL New Logo (Coach rebranding)

PERSON

ORGANIZATION

Smart Shopper Growing Brand Fashion Conscious American heritage Timeless New York aesthetic Accessible Modern Luxury

BRAND IDENTITY PRISM RS

Well-known logo

Cool

Timeless design

Classic

Leather goods

Urban

ITY

Customer-centric

Traditional yet innovative

Co-Creation

Fused Creativity and Logic

CULTURE

RELATIONSHIP

Y PH

SIC

Authentic

FLE

Timeless

Stylish

Valuable

Smart

O -PR

IO T C

CURRENT POSITIONING The company looks back to their American heritage roots while moving forward to new possibilities. Coach is wishing to become the “company that defines global modern luxury” (About Coach). The customers’ needs come first to establish strong, lasting relationships and to help them keep their product assortment appealing and refreshed (About Coach). Accessible luxury is something Coach stays true to with prices averaging around $400-$500 for bags, staying within the same price range as kate spade new york, a major competitor. The prices are comparable to those of Marc by Marc Jacobs for the RTW, a potential competitor. Coach is sold in over 1,000 stores worldwide, offers an online website where customers can shop and is sold through various department stores.

DISTRIBUTION Coach is a vertically integrated retailer that owns and operates over 1,000 store locations across five continents, with 500 of those in North America (About Coach). This does not include global wholesale and distributor partners, such as Macyâ&#x20AC;&#x2122;s, Nordstrom, Belk and Bloomindales, whom all sell Coach in-store and online. Coach has online retail websites for the USA, UK, Canada, Japan and China and informational websites in over 20 other countries (About Coach). This global multi-channel retailer is highly accessible for the modern shopper.

COMMUNICATION // PROMOTION In the 2014 fiscal year, Coach spent $130.1M on marketing, equating to 3% of net sales. This was for national, regional and local marketing and included employee compensation, media space and production, advertising agency fees, public relations and market research expenses (Coach Inc.). The winter/holiday 2014 campaign, “Coach Dreamers,” used four artists in the music and film industries instead of the traditional models. This was the company’s way of remarketing itself, using Christopher Abbott, Zoë Kravitz, BANKS and Odeya Rush to recapture the Coach spirit and innovation. They heavily use social media platforms such as Pinterest, Instagram, Facebook and Twitter to share pictures, videos and updates. Their new interactive website offers information on events, videos, a magazine and general updates on what the company is doing to enhance the digital Coach experience. Regarding sales, Coach has a semi-annual sale that offers a selection of products at a discounted price.

UK MARKET ANALYSIS The UK market has become a force to be reckoned with. It has transformed the economy and jobs within the United Kingdom to something extraordinary. As British men become more interested in what and whom they are wearing, clothing has increased in importance. High quality clothing is being offered at affordable prices volume sales are expected to increase throughout the UK,. Since men are less frequent buyers, there are less throwaway fashion trends occurring in the market, as the average cost of menswear purchases remain higher than womens wear. Menswear is an essential part not only to the fashion industry in the UK, but also to the UK economy overall. In 2010, the BFC Value of Fashion reported that the direct value of the UK fashion industry to the UK economy stood at 21 billion pounds. These reports show great opportunities for the future of the UK’s fashion industry in menswear not only for designers, but also for retailers. The menswear expenditure growth is expected to surpass the womens wear market for the first time since 1998, proving that the market for menswear has grown “18% in the past five years and is now worth £12.9 billion, and that figure is said to reach £16.4 billion by 2018” (Marriott).

PESTEL POLITICAL • England is part of the UK constitutional monarchy • In 2014, the government invested £160 million into the economy STRENGTHS • London is a top tourist destination (100M+ visits in 2012) • UK Single Market Centre (helps UK companies trade with EU markets) • Transatlantic Trade and Investment Partnership

ECONOMICAL STRENGTHS • One of the biggest economies • Private and government involvement • UK fashion industry value: $31 billion • GDP: $2.4 trillion (1.8% increase) • Disposable income (per person): $26K • Interest rate: 0.5% • $1= £0.66 CHALLENGES • Inflation: 2.6%

SOCIAL • Mainly Caucasian and Christian • Population: 63.7 million (2014) STRENGTHS • 25-54 years: 41% highest age group percentage • Unemployment rate: 5.8% • Education: 16 yrs. of schooling CHALLENGES • Highly influenced by social class • Median age: 40 years old

TECHNOLOGICAL

ENVIRONMENTAL

STRENGTHS

CHALLENGES

• £4.6B per year funding for science and research programs • Growth Accelerator: government programs that help English businesses grow

• Heightened attention of consumer’s awareness on sustainable production • 62% of British adults agree that they had become more environmentally aware during previous 12 months • More options in the sustainable industry (ecofriendly products)

CHALLENGES • Equipment and protective systems must comply with ATEX regulations • Products must meet EU safety, health or environmental requirements (allows free movement of products within European market)

LEGAL • Minimum wage: £6.50 per hour for workers 21+; £5.13 per hour for 18-20 years old CHALLENGES • Shops over 280 sq meters have strict restrictions for operating on Sundays and holidays • Retailers must warn consumers about potential risks • Safety violations result in fines, being sued or imprisonment

KEY PLAYERS Direct Competition: Marc by Marc Jacobs, Burberry, Louis Vuitton and Dover Street Market are Coachâ&#x20AC;&#x2122;s four major competitors in the London area. This selection was based on prices, product categories, aesthetics and accessibility in London.

The French fashion house, Louis Vuitton, was established in 1854 by Louis Vuitton. The conglomerate LVMH was created in 1987 by Vuitton. They offer womens wear, menswear, bags, leather goods, shoes, accessories and more in over 400 stores in 10 countries (Senft). In honor of the monogram and the modern traveler, Louis Vuitton set up L’Aventure in Paris at the end of 2013 (L’Aventure).

Dover Street Market was started in 2004 by Rei Kawakubo of Comme des Garçons on Dover Street, London. This is a retail and concept multilevel location for high-end brands such as Dior, Comme des Garçons and Céline. There are currently four locations: London, Tokyo (Ginza), New York and I.T Beijing (franchise location). All Dover Street Markets offer each brand a small area where they create a pop up shop within the space (Dover Street Market).

Marc by Marc Jacobs was started in 2001 as a sub division of Marc Jacobs Intl. The company is vertically integrated, sold through their locations, online and in select department stores (i.e. Nordstrom). The Today they offer product categories such as menswear, womens wear, bags and shoes in 200+ stores in over 30 countries (Marc Jacobs). They had a pop up in Covent Garden called the Daisy Chain pop up, which gave customers products such as perfume and handbags in exchange for a tweet tagged with #MJDaisyChain (Niven).

Burberry was founded by Tomas Burberry in 1856 and is known for their tartan print and trench coats. They now have over 500 stores in over 50 countries, offering menswear, womens wear, bags, shoes, accessories, perfume and cosmetics (Our History). Their British heritage makes them widely attractive to the London consumer. They showcased their heritage with Printemps’ London Mania in 2013, a tribute to London’s architecture and unpredictable weather (Bouchet).

EXPENSIVE

ACCESSIBLE

EXCLUSIVE

AFFORDABLE

JUSTIFICATION FOR PERCEPTUAL MAP Coachâ&#x20AC;&#x2122;s positioning is due to their accessibility and price in the market compared to other companies. It is highly accessible because of the vast number of stores and it is considered affordable luxury with a lower price range for high quality products. Burberry is positioned slightly higher because of the more expensive assortment and less store exposure to consumers. Louis Vuitton is considered high luxury fashion brand, making their products more expensive with less availability of stores to customers. Dover Street Market is placed at the extremes of expensive and exclusive because of their high priced merchandise with four stores opened to their customers, making them highly limited.

INDIRECT COMPETITORS LUXURY TRAVEL

THE WATCH HUT

Global Luggage: “Global Luggage is a British, family-owned luggage and accessories retailer with over ten years in the business. They have broad product selection and their fierce commitment to excellence in customer care has solidified them as one of the premier luggage destinations in London. They provide quick and easy access to high quality branded luggage, handbags and accessories through our same-day London delivery service, free next day UK delivery and click and collect shopping option.” (About Global Luggage).

The Watch Hut: “The Watch Hut launched in November 2005 with the aim of selling branded watches at amazing prices. They are experts in online watches retailing with an unparalleled reputation in the designer segment of the market. Since its foundation the site has grown to become Britain’s largest website in the sector. We are the UK and Europe’s leading authority on designer watches and our huge, yet carefully selected, range helps drive the UK’s most fashionable timepiece trends year after year.” (Our Story).

LUXE ACCESSORIES

SOCIAL SPENDING

Apple Inc.: “Apple Inc. is an American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, online services, and personal computers.” (Frequently Asked).

LIMA Floral: “LIMA Floral is an evolution on what we have offered diners at LIMA Fitzrovia, with the aim of showcasing Peru as a country full of diversity: ecologically, culturally and historically, sharing an authentic and native culinary offering.” (About).

TARGET CUSTOMER The Coach London pop up will target three specific groups of people: the HENRYs, International Tourists and London Enthusiasts. This is based on the age range, income and shopping habits of these consumers. All target groups have the money to spend on affordable luxury goods and are in the age range that would most appeal to Coach’s style and are travelers. Further analysis about these groups can be found in Appendix.

HENRYs, or “High Earners Not Rich Yet,” are 25+ years old with an annual income range of $150K to $250K. They outnumber ultra-affluents (those who make $250K+) three to one, so this group is a significant sector of the luxury market (Jones). Coach falls under the affordable luxury segment in the fashion industry, which is mainly where this customer shops. Quality and one-of-a-kind retail experiences are major factors HENRYs look for when shopping. They are predominately mono-brand shoppers who are tech-savvy (Jones). London is a major tourist destination for both UK and international citizens. In 2012, 15.5 million visits were from overseas, while 87.2 million were domestic visits and locals made 240 million London day trips from the greater London area (SPA). International tourists are between 25 and 34 years old, making up 23% of the segment. Most of these travelers do not have kids, and 57% are females. London Enthusiasts are also mainly between the ages of 25-34, but this group is mostly married or living with their partner with no children. International tourists are planners, where Enthusiasts are planners and change plans on-the-go. Both groups have significant spending power as tourists, often staying in 3+ star hotels and spending on average £205 each day for 5-7 days.

CUSTOMER PROFILES

LUKE Age: 29 From: Cambridge, England Income: 100K British pounds Education: LLM in French Law Interests/Hobbies: biking, tennis, attending art galleries, traveling across Europe

ZAYNE Age: 25 From: Spain Income: 50K (Brit Pounds) Education: BA in Advertising Interests/Hobbies: writing poetry, playing guitar, frequently visiting London, attending concerts

STORE LOCATION DESIGN PRODUCT

JUSTIFICATION FOR LOCATION COVENT GARDEN TOURISM Covent Garden is a historic area stationed right in the heart of London. Geographically, it is located in Central London, bordered by the City of London and Leicester Square and is within walking distance of Soho, the River Thames and Trafalgar Square. It is one of the most popular locations within London with the Royal Opera House, Covent Garden Square and Covent Garden Market. Now its has transformed into a popular destination for visitors and Londoners (Culture).

TOURISM IN COVENT GARDEN Londoners 53% of total shoppers Average dwell time 93 minutes Average retail spend 2013: ÂŁ100 per visit

SALES POTENTIAL The sales potential for Covent Garden is forecasted to reach a 1.5% annual sales increase and a 2.0% vacancy rate. Several events are held in the marketâ&#x20AC;&#x2122;s outdoor square, but the increased traffic for these events decreases sales inside the market buildings. A big challenge on the overall economy of Covent Garden is the space constraint. There is no additional space for display or storage, which can affect retailers differently. There is sales potential in Covent Garden for the Coach brand to grow and prosper within the new market of menswear after looking at the UK menswear industry and Covent Gardenâ&#x20AC;&#x2122;s statistics (Thomson).

ESTIMATING COMPETITION

AREA ATTRACTIONS There are many amazing attractions within the Covent Garden area. Stores such as Jo Malone London, Burberry Brit, The Real McCoyâ&#x20AC;&#x2122;s are available. There are various cafĂŠs and restaurants to try as well. Museums such as the National Gallery and the British Museum and theatres (Cambridge Theatre and the Lyceum Theatre) surround the shopping and dining area (Culture).

AREA FACTORS People can travel to Covent Garden on foot, bike, taxi, car, bus, boat or even the tube. If walking, it is best to visit WalkIt.com to find the quickest route to reach your destination. If traveling via the tube, the Piccadilly Line is the best option as itâ&#x20AC;&#x2122;s just a short walk from the Market Building. For the tourist and locals who are biking, Covent Garden provides safe and secure bike racks in multiple locations for the shoppers. Parking is very restricted and we advise to avoid driving on-street parking is limited and there is a congestion charge. The public buses that stop near Covent Garden are either RV1, which stops directly at Covent Garden, or 9, 13, 15, 23, 139 and 153 which all stop at Trafalgar Square and Aldwych. Arriving by boat is also possible; the closet ferry to Covent Garden is at Embankment (Hours & Getting).

HUMAN RESOURCES

We will have eight people working at our London location store, earning ÂŁ10 an hour. To properly train them we will fly in a well-seasoned manager from a previous store. This manager will stay in a flat supplied by us near Covent Garden for the duration of the shop. We will recruit people from the UK through social media. Employees will work up to 30 hours a week.

POP-UP SHOP / COVENT GARDEN

DETAILS OF PHYSICAL SPACE

DESIGN OF SPACE The retail location will be an 800 square foot store with two floor-to-ceiling glass doors and two floor-to-ceiling windows used for displays. The fixtures of the store will be minimal; industrial track and spot lights, floor lamps and dimmed wall lights for specific displays. The Coach logo, which will be positioned on the top right corner of the store (medium sized) will light up at night with slow changing LED lights as a way to appeal the younger market Coach is going for. One of the window displays will showcase one outfit every two weeks, which will be placed on a hanging ceiling rack. The storeâ&#x20AC;&#x2122;s exterior will attract customers through its inviting design, transitional lighting and effortless aesthetic. The layout of this store will follow a free flow floor plan as a way to allow the customer to decide how their in-store experience will be through their personal interaction with the store features and products. The allocation of the products throughout the store will focus on a style/item presentation to encourage impulse buying in terms of the relationship between the products and their use. We will establish the new aesthetic by incorporating current retail trends in the UK through the use of technology as tools that facilitate the customer experience. There will be two hanging coat racks in the center of the store, four wall displays, three medium floor displays and two small ones to showcase the products offered. Three leather chairs will be next to the window to give customers a place to relax. There will not be any cash registers. Instead, customers will be able to make a purchase anywhere within the store using our iPad registers. In a section of the store, there will be a leather care station that will provide the customers demonstrations of proper leather care and will hand-out free product samples specifically made for this pop-up shop. We will also incorporate digital screens that allow shoppers to customize certain features of their in-store experience. They will be able to manipulate the music through the digital screen; the platform carries a wide assortment of music that streams for a limited amount of time per person, like a modern jukebox, but for free. Our Twitter, Facebook and Instagram platforms will also be linked to this platform as a way to encourage our customers to explore our social media presence. In addition, this digital platform will provide the customers the option to buy Coach merchandise via the e-commerce site. The ambiance of the store will be inspired on the edgy and effortless London aesthetic by using rich and neutral colors, industrial materials, mood-setting lights and an assortment of music.

DESIGN OF SPACE FLOOR PLAN

PRODUCT PLAN

ASSORTMENT PLAN

Category

Style

Color

Size

Retail ÂŁ

Bleecker Stainless Steel Three Hand Strap Bleecker Three Hand Ionized Plating

White Black

N/A N/A

260 300

Belts

Bleecker Story Patch Belt

Mahogany/Silver; Black/Silver

32-42

Wallets

Compact ID Card Case

Military Print Military Print

N/A N/A

140 60

Tech

Slim Zip Tablet Case Bifold iPad Case Crosby Leather Executive Portfolio

Military Print Military Print Black

N/A N/A N/A

145 145 220

Bags

Bleecker Stitched Collection Backpack Sullivan Carry All Tote Sullivan Textured Carry All Tote

Black; Hunter Green N/A Military Print; Mahogany; Deep Sea N/A Black; Hunter Green; Mahogany N/A

410 410 450

Watches

Category Bags

Shoes

Style

Color

Size

Retail ÂŁ

Sullivan Patchwork Carry All Tote Thompson Messanger Thompson Textured Messanger

Black; Black/Fawn Painted Military; Black Black; Mahogany

N/A N/A N/A

450 375 375

Houston Sneaker

7-13

150

7-13

205

Charlton Turnlock Oxford Fulton Boot

Painted Military; White; White/ Black; Black Hunter Green/Black; Black/Natural; Black Wood; Painted Military Print/Black Oxblood; Black; Wood

7-13 7-13

225 265

Barracuda Leather Jacket Distressed Leather Moto Fuzz Coat Fur-Lined Leather Utility Coat Sleek Leather Business Coat Painted Military Parka

Fawn Black/White Maroon Cream Black/Mahogany Painted Military

S,M,L S,M,L S,M,L S,M,L S,M,L S,M,L

1,050 1,200 975 1,345 1,500 975

Houston Turnlock Sneaker Coats

COMMUNICATION // PROMOTION

COACH POP-UP SHOP

2015

RATIONALE FOR PROMOTION Social media has gained more value in brand marketing. It is a cost effective way for companies to reach a greater audience through these platforms since social media is global. Through creative content marketing, brands establish more interest in the active participation of consumers with the company. Instead of using intrusive marketing, we will focus our strategy on being active listeners and participators since communication is important to todayâ&#x20AC;&#x2122;s consumers. For this reason, we will promote the launch of the brand by creating buzz on several social media outlets such as Facebook, Twitter and Instagram. According to Kissmetrics, photos on Facebook get 53% more likes, 104% more comments and 84% more click-through as opposed to text and link posts. Also, posts with 80 characters or less get 66% more engagement, but posts that focus on questions and conversations get 100% more comments. Facebook activity, which is the number of posts and comments published per hour on this platform, peaks approximately at 11 am, 3 pm and before 8 pm. By focusing our Facebook post strategy around timing we have decided to post 3 times a week and make two posts per day for 3 months before the launch; one before 3 pm and one around 8pm. These will be topic-related posts as to follow-up the afternoon conversation and consumer engagement in the evening. Posting 1-2 times a day gets 40% more engagement and posting 1-4 times a week there is a 71% more engagement. Further analysis can be found in the Appendix.

IT’S A SECRET, BUT PASS IT ON! #Coach2015

SCHEDULE MEDIA Facebook Twitter Instagram Web Banners Giveaways Events

PRE-LAUNCH MAY JUN. JUL.

AUG.

LAUNCH SEP.

OCT.

NOV.

DEC.

POST-LAUNCH JAN. FEB.

MAR.

#CultOfTheOutrageousAtomicCarriageHouse #Coach2015 #Coach2015 #CoachFromAbove #CoachLondon

APR.

FINANCIAL PLAN

INCOME STATEMENT

Revenues Total

August £ 937,500.00

September £ 918,750.00

£ 1,856,250.00

Expenses COGS Design of Space Build of Space Interior Fixtures Exterior Fixtures Storing Wages Rent/Utilities Logistics Janitorial Promotional Activities Legal/Permits Housing & Flight Total

£ £ £ £ £ £ £ £ £ £ £ £ £ £

August 375,000.00 10,000.00 5,000.00 3,581.00 330.00 1,000.00 7,920.00 12,772.00 500.00 300.00 1,610.00 1,000.00 3,150.00 422,163.00

September £ 367,500.00 £ £ £ £ £ 1,000.00 £ 7,920.00 £ 12,772.00 £ 500.00 £ 300.00 £ 960.00 £ 1,000.00 £ 3,150.00 £ 395,102.00

£ £ £ £ £ £ £ £ £ £ £ £ £ £

Earnings (Before Tax)

August £ 515,337.00

September £ 523,648.00

£ 1,038,985.00

742,500.00 10,000.00 5,000.00 3,581.00 330.00 2,000.00 15,840.00 25,544.00 1,000.00 600.00 2,570.00 2,000.00 6,300.00 817,265.00

Interior Fixtures Touch Screen Display 32" Hanging Lights Wall Lights Wall Mount Shelves Industrial Clothing Rack Wooden Block Table Lg Wooden Block Table Md Wooden Block Table Sm Wooden Hangers (Set of 4) iPad Total Interior Exterior Fixtures Custom Neon Lights Custom Window Decal Total Exterior

Unit Cost £ 400 £ 105 £ 165 £ 332 £ 165 £ 332 £ 200 £ 100 £ 6 £ 199 Unit Cost ($) £ 200 £ 130

Units 1 6 4 1 1 2 2 3 5 3 28 Units 1 1 2

£ £ £ £ £ £ £ £ £ £ £ £ £ £ £

Costs 400 630 660 332 165 664 400 300 30 597 4,178 Cost 200 130 330 4,508

Footfall Conversion Rate Average Basket Total Revenues

August 18,750 10.00% £500.00 £937,500.00

September 26,250 10.00% £350.00 £918,750.00

Category Bags Shoes Tech Wallets Coats Watches Belts Total

% 40% 21% 15% 10% 7% 5% 2% 100%

August £375,000.00 £196,875.00 £140,625.00 £93,750.00 £65,625.00 £46,875.00 £18,750.00 £937,500.00

Average Unit Price Product Categories August Belts £ 95 Watches £ 280 Coats £ 1,174 Wallets £ 100 Tech £ 170 Shoes £ 211 Bags £ 412

September £ 95 £ 280 £ 1,174 £ 100 £ 170 £ 211 £ 412

September £367,500.00 £192,937.50 £137,812.50 £91,875.00 £64,312.50 £45,937.50 £18,375.00 £918,750.00

£742,500 £389,813 £278,438 £185,625 £129,938 £92,813 £37,125 £1,856,250

Units August September 197 193 167 164 56 55 938 919 827 811 932 913 911 893

CONCLUSION Through the Coach pop up shop in London’s Covent Garden, we seek to establish more awareness about Coach’s menswear market. Simultaneously, our strategy aims to be profitable with planned sales during the pop up shop’s duration. After careful investigation of the setting and our product, we plan on testing the market’s potential for Coach menswear in order to encourage the brands presence around the world. Our information suggests our target market in London can afford these prices and is attracted to the aesthetic. We believes the new direction led by Stuart Vevers will appeal to the London crowd. Overall, this shop is a way to test a major opportunity for the brand.

WORKS CITED “About Coach.” Coach. Coach, n.d. Web. 4 March 2015. Bouchet, Sophie. “Burberry pops up at Printemps.” Vogue France. Vogue, 08 Aug. 2013. Web. 31 Jan. 2015. Coach Inc. (2014). Form 10-K 2014. Coach Financial Reports. Coach, Aug. 2014. Web. 17 Jan. 2015. “Dover Street Market: Built Upon Beautiful Chaos.” Business of Fashion. Business of Fashion, n.d. 02 Feb. 2015. Faw, Larissa. “Meet The Millennial 1%: Young, Rich, And Redefining Luxury.” Forbes. Forbes, 02 Oct. 2012. Web. 2 March 2015. “Global ecommerce trends 2015: UK leads the way in Europe and North America.” Digital Strategy Consulting. Net Imperative, 27 Jan. 2015. 08 Mar. 2015. “Investing in research, development and innovation.” UK GOV. 05 Dec. 2014. Web. 08 Mar. 2015. Jones, Sarah. “Young affluents provide the best growth potential: study.” Luxury Daily. Napean, 14 March 2014. Web. 2 March 2015. KISSmetrics. KISSmetrics, n.d. Web. 08 Mar. 2015. “L’Aventure Pop Up Store.” Louis Vuitton. Louis Vuitton, 06 Sept. 2013. Web. 01 Feb. 2015. “Marc Jacobs International.” Marc Jacobs. Marc Jacobs Intl, n.d. Web. 29 Jan. 2015. McCarthy, Lauren. “Coach Rolls Out New Retail Concept.” WWD. Women’s Wear Daily, November 2014. Web. 4 March 2015. Niven, Lisa. “Marc Jacobs: Tweets for Treats.” Vogue UK. Vogue, 08 Aug. 2014. Web. 29 Jan. 2015. “Our History.” Burberry. Burberry, n.d. Web. 31 Jan. 2015. Senft, Ashley. “History of Louis Vuitton.” Fashion in Time. Fashion in Time, 29 May 2011. Web. 31 Jan. 2015. SPA Future Thinking. “London Visitor Segmentation.” London Visitor Segmentation (n.d.): n. pag. Transport for London. SPA Future Thinking, July 2013. Web. 21 Feb. 2015. Thomson, Rebecca. “Analysis: London Covent Garden’s approach to successful retailing.” Retail Week. Retail Week, 26 April 2013. Web. 08 Mar. 2015. “Trading hours for retailers: the law.” UK GOV. 12 Nov. 2014. Web. 08 Mar. 2015.

APPENDIX

APPENDIX A POLITICAL England is part of the United Kingdom, a unitary democracy governed within the framework of a constitutional monarchy. A constitutional monarchy happens when the Monarch is the head of state and the Prime Minister of the United Kingdom is the head of the government. In 2014, the government invested £160 million into the UK economy, creating 220 new British jobs. Because London is one of the top tourist destinations they profited on more the 100 million visits from tourist in 2012. Of those 100M, 15.5m came from oversea visitors, and 87.2 domestic visits (within those domestic visits 75m were day trips, and overnight trips were 12.2m). The UK Single Market Centre, which helps UK companies trade with EU markets, works in part with the Transatlantic Trade and Investment Partnership. This partnership, or better known as the TTIP, is a free trade agreement negotiated between the EU and USA. This partnership has the potential to add up to £10 billion to the UK economy. By reducing tariffs on cross-border trade between the EU and the USA and reducing other barriers to trade, this lowers the trade barriers and trading costs making it should easier for companies on both sides to access each other’s markets. For consumers, this will lead to a wider choice of goods at a lower cost (how government works).

ECONOMICAL The UK economy is one of the biggest economies worldwide. The economy is a mixed economic system, meaning that the both capitalism and socialism are seen within the system. By capitalizing on this the UK allows levels of private economic freedom within the capital, but also allows the government to intervene in economic activities in order to achieve social aims (Investopedia). Because the economy is thriving within the United Kingdom, the fashion industry has also seen the repercussions of this thriving economy. The UK value of the fashion industry is £21 billion with a GDP of $2.4 trillion.

SOCIAL The social structure of the United Kingdom has historically been highly influenced by the concept of social class, with the model still affecting British society in the early 21st century. With a population of about 63.7 million people in 2014, the majority were Caucasian and Christian. The biggest age range is 25-54 years old. The school lifetime is 16 years, representing 30% of investment in the country. The unemployment rate is 5.8%, which shows how strong economy of the UK is. Although definitions of social class in the United Kingdom vary and are highly controversial, most are influenced by factors of wealth, occupation and education. Until recently, the Parliament of the United Kingdom was organized on a class basis, with the House of Lords representing the hereditary upper class and the House of Commons representing everyone else, and the British monarch is usually viewed as being at the top of the social class structure.

TECHNOLOGICAL The United Kingdom has received about £4.6 billion annually twoards funding science and research programs, proving to be one of the many strengths within the UK. Another strength is the growth accelerator program; this is a government program that is issued in order to help England’s businesses grow. Equipment and protective systems must comply with ATEX regulations, which is the European regulatory framework for manufacture, installation, and use of equipment in explosive atmospheres. ATEX is used to ensure the safety of workers employed in hazardous atmosphere installations (Iecex). The UK must ensure that products meet EU safety, health or environmental requirements to allow free movement of products within European market (investing in research).

ENVIRONMENTAL Throughout the last few years, consumer behavior has taken a toll on the fashion industries’ approach to sustainable materials. The purchase of ethical products with high awareness and broad appeal is on the rise, making the retailers of these products a demand. Sixty-two percent of British adults agree that they had become more environmentally aware during the previous 12 months. The availability of ethical choices is key, with 69% of UK adults keen to buy ethical clothing if it was more widely stocked.

LEGAL Under the United Kingdom, England falls under the English Law. For shops over 280 square meters, they can open on Sundays, but only for 6 consecutive hours between 10am and 6pm. They must close on Easter Sunday and Christmas Day. If large shops do not comply to these regulations, they can be fined. The national minimum wage allows workers to not be exploited for their work; they must be paid at least the minimum wage per hour (Trading Hours). If there are any potential risks posed by the products, retailers must let the consumer know (i.e. infants can choke on the small pieces). Shops must provide a safe environment for the employers and consumers, so regulations must be followed. Any violations will result in the shops being fined, sued or employer imprisonment.

APPENDIX B

HENRYs One of the target customers for the London Coach Pop Up shop is the HENRY, which stands for “High Earners Not Rich Yet.” These consumers are 25+ years in age with an annual income range of $150K to $250K, so they have a significant amount of disposable income. Ultra-affluents, or those who make more than $250K, are outnumbered by HENRYs three to one (Jones). This is an advantage for affordable luxury companies like Coach because they make up a more significant division of the luxury market. According to Forbes, at the end of 2012 there were around 11.8 million millennials between 18-30 who fall into this category of making over 100K annually. It is estimated this group will become the largest generational sector of the luxury market around 2018-2020 (Faw). Money is not a seen as a way to show off by this group as it was in previous generations. These customers focus more on quality, exceptional materials and customer service, so they expect extraordinary shopping experiences in store, online and through mobile services (Jones). HENRYs are predominately mono-brand shoppers, so it is no surprise they look for clean stores that offer a strong selection of products and expert customer service. This group appreciates one-of-a-kind retail experiences such as same-day delivery and customer service apps (Bell). Social media resonates greatly with this customer, due to the fact that many of them grew up during the rise of technology. Millennials look to communicate with companies, whether it’s for an issue or for praise, and social media is a major platform for this.

TOURISTS London is a major tourist destination for both UK and international citizens. In 2012, 15.5 million visits were from overseas, while 87.2 million were domestic visits and locals made 240 million London day trips from the greater London area (SPA). Our tourist customers can be segmented into two groups, the international tourists and the London Enthusiasts. Both crowds are known to travel in groups for vacation and want to experience as much as possible (SPA). Most of the international tourists are between 25 and 34 years old, which make up 23% of the segment. These tourists are generally visiting from Germany, France, Italy or the USA. The majority of this group does not have children, and 57% are females. Out of the 10.13 million visitors in 2012, 1.53 million were from this segment, the third largest group, making up about 15% (SPA). These visitors are mainly planners who focus on tourist attractions and travel by plane or coach bus. They have a high spending average of £207 per day, covering ticketed activities such as museums and theaters and nonticketed activities like shopping and dining. Visit durations are around 5 nights in at least three-star hotels, further proving they don’t mind spending a bit more for an enjoyable visit. They are researchers who pre-plan most of their trip, so they most likely book travel and ticketed activities far in advance (SPA). Ticketed and non-ticketed activities are researched beforehand as well, so we will need to make sure our pop up shop is well advertised to reach these consumers. London Enthusiasts are mainly between the ages of 25-34 and 35-44, each age range making up 28% of the total, with over half the group being male. The majority, 66% of this segment, is married or living with their partner and 48% do not have children. There are two subgroups within this segment, the active and the relaxed. London Enthusiasts travel from across the world, with 41% of the active subgroup from the UK and a majority of the relaxed group come from France and the USA, each holding 20%. London Enthusiasts made up 16% of the 22.71 UK visitors in 2012 and 29% of the 10.13 international visitors (SPA). These visitors travel to London for more of a cultural, entertainment trip than international tourists. Unlike the international tourist, the London Enthusiast only pre-plans but also plans on the go with smartphones and tablets. This group travels by own means or public transportation and are willing to try different means of travel, which is a positive aspect because there are many ways to travel to Covent Garden by public transportation. Active London Enthusiasts spend on average more than relaxed Enthusiasts, with £1,379 for actives per trip and £1,062 for relaxed visitors. Their stay averages around 7 nights, usually in 4-5 star hotels for actives and hostels or bed and breakfasts for relaxed members. Both subgroups pay for ticketed events, but actives are more likely to pay for non-ticketed activities, such as shopping. Our shop would appeal to these visitors as a unique shopping experience (SPA).

APPENDIX C SOCIAL MEDIA

APPENDIX D

JUSTIFICATION FOR FINANCES First to figure out the finances, the total revenues needed to be calculated. We looked at the footfall in Covent Garden and took a percentage of the average per month, estimating only a select amount of people will pass by our location. Presuming footfall would increase after people become more aware of the pop up, we calculated 18,750 for August and 26,250 in September for footfall. Then, we figured a conversion rate of 10% is likely, having one sale for every 100 people. We took 10% of the footfall per month and multiplied it by the average basket for each month to figure out total revenues. The revenues calculated were ÂŁ937,500 for August and ÂŁ918,750 for September. From there, we figured out how much money we would allocate for each category, with bags being our largest at 40% and belts being only 2% due to the fact that we would only carry one style for belts. We took the percentage of each category and multiplied it by the revenue of each month to figure out how much would be spent on each category. This allowed us to estimate how many units we should order for each category, taking the budget for each group and dividing it by the average price. To calculate the retail price in British pounds, we had to consider adding in transportation and duties. We considered a 60% mark up, which allowed us to calculate the costs. We took 15% of the cost to allocate for transportation and duties, and then added this and the merchandise cost. From there we converted the prices into British pounds and added the 60% markup. We did this for each style to figure out the retail prices in pounds.