Retail Marketing Plan

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Retail Marketing Plan

  1. 1. FASHION ART MUSIC FAM International Retail Marketing Plan Fabiola Einhorn 05.12.11Friday, May 13, 2011
  2. 2. 3 Executive Summary 4 Introduction 5 Business Concept / Execution 6 Brand Story 7 Logo / Stationary 8 Location /Market 9-18 Corporate / Product Background 19 Amsterdam Cultural Background 20 Amsterdam Political Background 21 Amsterdam Economic Background 22 Legislation Regarding FAM 23-24 The Process 25-27 Market Analysis 28 SWOT Analysis 29-32 Market Recommendations 33 Sources Table of ContentsFriday, May 13, 2011
  3. 3. Fashion, Art and Music are all tools of expression – but how come we treat them like separate entities? FAM is a new business concept, aiming to unite these worlds through a single retail experience. Strategically located in one of the world’s most liberal cities, Amsterdam has been a major European art and trade center since the Dutch Golden age. FAM is located in the Jordaan, which today is a highly trafficked district attracting a fashion conscious avant-garde person. Constantly exposed to the innovation the city has to offer, the people of Amsterdam are curious and open to new ideas, which is why a new concept like this would work so well there. FAM is designed not only as a traditional fashion boutique, but also a place for discussion about style. Entering you will first see a main area, which is divided into three separate retail experiences. Each room has it’s own concept e.g. classical, rock, bohemian and minimalistic. Walking into each section, the customer gets to experience this theme from all angles. She will be exposed to fashion according to the theme, art will be hanging on the walls according to the theme, as well as music. In other words, FAM has three types of merchandise for sale. FAM will source the fashion merchandise mainly from European countries in order to minimize tax. The brands are carefully selected after demand and market research, and the collection is to be switched seasonally according to theme. The music is not something FAM will make any profit from directly, however indirectly by attracting new customers. The music ads to the whole atmosphere inspiring the customer and opening up opportunities to discover new music artists. Easily purchased through iTunes with a smart phone, the experience becomes unique and refreshing. The final step in the holistic approach is the art, which will also be picked out according to theme and be for sale by FAM through local artists. FAM’s objective it to keep it simple and down to earth, by offering a unique customer experience in addition to well selected high end fashion brands. Fashion remains the focus, but the music and art will be a natural addition to the concept. Furthermore, the artists provide a good platform for promotion throughout the city. Word of mouth will be spread across three industries, and multiple channels such as online, print, gallery events and press releases. The addition of technology is perfect for Amsterdam, which is one of the cities in Europe that has the highest online presence. This way the customer can get a unique experience and FAM becomes more than a fashion boutique. It becomes a lifestyle boutique. Executive SummaryFriday, May 13, 2011
  4. 4. This is a new concept, finally gathering fashion, music and art under one roof. Usually when you meet someone new, the first things you look for is how they dress, what music they like and what art they are into - because this defines the person. These are the key categories through which we express ourselves. Knowing this, FAM (fashion, music, art) takes a lifestyle brand further, by offering all the vital tools to express ones taste. Through this marketing plan, you will come to an understanding of why Amsterdam, specifically the Jordaan is the perfect location for this unique retail concept. IntroductionFriday, May 13, 2011
  5. 5. FAM is a high end fashion, art and music boutique with a down to earth atmosphere and excellent customer service. FAM offers a holistic approach to expression, through different themes. Three themes will be held simultaneously with merchandise accordingly and will be changed each season to reflect desire in the market. Customers will walk into the boutique first facing a common lounge area. This area serves as a platform for discussion about what personal style and expression stands for. Coffee, magazines and sofas are available. The rest of the store is divided into three separate sections, with suitable music played, art on the walls and apparel in a traditional manner. Each room will have it’s own unique cultural atmosphere. Example themes include: - Minimalistic clothing / electronic music / minimalist art - Rock inspired clothing / rock music / rock inspired art - Hip-hop inspired clothing / Hip-hop music / hip-hop inspired art - Classic clothing / classical music / classic art Technology plays an important role in FAM’s business concept, to give the customer a smooth and unique experience. Music will be sold through iTunes with smart phones. This way, FAM gets the chance to become the go-to for when customers want to discover new music in their genre, and so drive sales. The art will be displayed from locally up and coming artists. They get a chance to get known, and FAM gets a part of the profit. This will drive a wider crowd, and create buzz about FAM in three industries at the same time. Business Concept / ExecutionFriday, May 13, 2011
  6. 6. “unifies fashion, art and music - and therefore your expression” - modern, but not stiff - friendly, but professional - eclectic, but put together - avant-garde, but not snobby Brand StoryFriday, May 13, 2011
  7. 7. FASHION ART MUSIC FASHION ART MUSIC FASHION ART MUSIC Explaining this new concept cannot be done in one name without confusion, and the last thing we want to do is confuse the customer. Therefore, a simple explanation of what they will find was a natural way to go. With the target FASHION ART MUSIC market in mind, the lines are soft and man maid, resulting in a down to earth, organic flow. The logo is feminine, without being too fragile. A neutral gray is chosen because of the different styles presented in the store. The font in Bougan SSi, because of its clean, modern look and readability. Logo / StationaryFriday, May 13, 2011
  8. 8. Location: Amsterdam, 280 Prinsengracht, Jordaan District. Market: - Jordaan is the artistic mecca of Amsterdam, and home of Rembrandt, famous writer Joost van den Vondel and photographer Breitner. - The Jordaan is the most attractive district to go for a stroll, with its many galleries, specialty stores like boutiques, delicatess stores and restaurants. The Jordaan also has three famous markets attracting people from all over the city three times a week. - Location is part of the “Nine Streets”, the most popular shopping district in Amsterdam with the most traffic. - Over 2000 international businesses have settled in the Jordaan successfully, with 100 percent growth rate from 1999-2009 and still growing. - According to the European Cities Monitor, Amsterdam ranks fourth in external transportation links. - According to Eurostat, the statistical office of the EU, 9% of Dutch enterprises use Radio Frequency Identification (RFID), triple the average of Europe with 3%. FAM will use RFID for inventory tracking and tracing and monitoring and control of industrial production. - The current corporate tax rate is well below the EU average: 20% on the first 200,000 euros profit, 25.5% on profits above that amount. A stable political environment provides certainty for future transactions, investments or corporate structures, and gives expatriates a 30% personal tax income advantage. Location / MarketFriday, May 13, 2011
  9. 9. Extensive marketing research in the Jordaan area lays the ground for a competitive analysis of the fashion, art and music brand landscape available to our target customer. Keeping in mind that FAM has a unique concept that gives the customer a varied selection of different styles, depending on the chosen fashion, music and art subject for that season, the key to success for FAM will be the paring of brands. Therefore, it is important to not only discuss the brands individually, but in relation to one another. First, let’s take a look at the type of merchandise one by one. FASHION BRANDS When it comes to fashion, which is FAM’s main emphasis, findings suggest an abundance of certain brands, as these are sold in many different shops throughout the Jordaan. However, the stores over all are very popular and make good profit. FAM wants to differentiate itself by choosing brands that have similar price range, style and quality as brands sold in competing stores, but are less available in Amsterdam and Holland as a whole. ART Art in the Jordaan is big, with many smaller galleries displaying both national and emerging artists. In order for the art to have a frequent turnaround and to be affordable, paired with clothes and music in one purchase, FAM will have art mainly from emerging, local artists. MUSIC Since most music is purchased online, it is more difficult to pinpoint competing artists. However, it is shown that the people in this area as a whole have very mixed tastes, which also is a proof point to why this concept will work very well. Music will be available for purchase by QR codes through iTunes, or by sending a link via email or text message. The amount of artists played will be vast compared to the art and fashion collection, since music has a quicker turnover. Therefore, every week, playlists will be re-defined by the shopkeepers. The point is to highlight underground artists, so that people discover new music and sometimes even events. However, it is important to point out that the music section of FAM is not a focus, also since FAM will not make any profit from it. The music section is more meant to be contributing to FAM as a brand through atmosphere and provide a platform for discussion. Corporate / Product BackgroundFriday, May 13, 2011
  10. 10. Fashion: forte_forte (http://www.giada-forte.com/) Founded 2004, by Giada and her brother Paolo Forte the offspring of this Venetian fashion manufacturing dynasty has been awarded with a good name by fashion critics. The fluid, sexy and wearable style of forte_forte does not take spiky fashion trends into too much consideration. This brand is focused on simplicity, with classic cuts and original detail, silky light and washed fabric. All textiles are sources locally, and manage not to have too heavy price tags, around $120-$419 for an embroidered dress. Brand characteristics are “pure, real, sincere and emotional”. Showrooms are placed, besides Italy, in Paris, New York, Madrid and Gothenburg. The brand is however available in many stores in Europe through licensing. The reason forte_forte would be a perfect addition to FAM is it’s down to earth feel conveyed through purity and wearability. The brands linear basic shapes fits in with the minimalist theme, and the sense for detail makes things interesting and avant- garde. Forte_forte is not sold in any other retail store in Amsterdam, but has the look and feel of many other brands sold in the Jordaan, assuring success. The brand is looking to spread its clothes in Europe, and is marketing to middle-upper class fashion conscious women. Corporate / Product Background: Product Profiles, MinimalismFriday, May 13, 2011
  11. 11. Costume National (http://www.costumenational.com) founded 1986, Italy, brand characteristics “edgy chic with a blend of minimalism and rock&roll”. Always looking to expand to a high end market. Vince (http://www.vince.com/) founded in 2022, US, focuses on cashmere sweaters, brand characteristics “fashion forward essentials with superior design and quality”. VINCE focuses heavily on the US, and on its online store. Corporate / Product Background: Product Profiles, MinimalismFriday, May 13, 2011
  12. 12. Art: Giijs van Lith, an up and coming artist, who explores dimensions and lines through his oil paintings. He is displaying his art for the first time in the Bart gallery (http://www.galeriebart.nl/exhibition_detail.asp?alb=194). Wolfgang Kessler, an abstract photographer displaying art at the gist gallery http://www.gistgalerie.nl/kunstenaar.php?id=34. Rosa Everts focuses on minimalist art installations. Her work is currently s h o w n a t t h e Ta g e n b o s c h v a n v r e d e n h t t p : / / www.tegenboschvanvreden.com/artists/rosa-everts/. Music: Air, a French electronic duo, Trentemoller, a Danish electronic music producer and instrumentalist, Paul Kalkbremmer, a German electronic artist. Giijs van Lith Corporate / Product Background: Product Profiles, MinimalismFriday, May 13, 2011
  13. 13. Fashion: Munthe plus Simonsen (http://www.muntheplussimonsen.com/) Originally founded in 1994 by Karen Simonsen and Naja Munthe, the company was taken over by Naja in 2004. Now, with 45 employees in Denmark and three image stores in Oslo, Aarhus and Copenhaagen, the clothing brand is sold in eleven countries. The textiles are often patterned and playfully detailed, that gives them a feminine and charming look. Playing with different concepts is important to the designer, as these are showcased in the brands much talked about fashion shows twice a year in Denmark. The clothes are manufactured locally, as the inspiration from the Scandinavian bright colors in nature. This brand would fit with the bohemian theme of FAM perfectly, and also with the Dutch fashion preference in general – as embellishment and freedom are popular concepts in fashion. The brand has agents in Holland, but is not sold in the closest competing market. Munthe plus Simonsen are looking to expand through smaller retailers like FAM in northern Europe. Corporate / Product Background: Product Profiles, BohemianFriday, May 13, 2011
  14. 14. Rabens Saloner, (http://www.rabenssaloner.com/) founded in Denmark, sold in 15 countries, brand characteristics “made by nature”. Rabens Saloner have had great success over the past years, even expanding to the US. Still an under the radar brand, it fits in perfectly with FAM. Moods of Norway, (http://www.moodsofnorway.com/) founded 2004, Norway, sold in around 6 countries, brand characteristics; “happy clothes for happy people”. Moods of Norway is looking for retailers to carry their apparel in Europe. Corporate / Product Background: Product Profiles, BohemianFriday, May 13, 2011
  15. 15. Art: Sven Kroner (http://www.svenkroner.de), a German landscape artist working with acrylic on canvas. Isaac Israels, (http://www.dolfvanomme.nl/nl/collectie/kunstenaar/ isaac_israels/30), an up and coming artist from Holland, focusing on sketches. Lisa Holden, (http://www.eduardplanting.com/ Eduard_Planting_Fine_Art_Photographs/HOLDEN,_Lisa.html) mixed medium artist, floral and fluid inspired. Music: Emiliana Torrini, an Islandic bohemian folk/pop/rock singer, El Perro del Mar, a Swedish artist, Deerhoof, a Japanese/American music trio. Isaac Israels Corporate / Product Background: Product Profiles, BohemianFriday, May 13, 2011
  16. 16. Fashion: Punk Royal (http://www.punkroyal.com/pages.asp?pid=120) Punk Royal is a brand with a simple concept behind it: Rock&Roll. Started by a couple of friends ten years ago, Punk Royal quickly gained popularity with their unique screen printing techniques, and old military roughness. It is a brand handmade to the bones. Celebrating their 10th anniversary, they are holding a print-rework- workshop-shop in Copenhagen – the birth town of the brand. People will be able to witness how the brand got on to their butts, which also reflects the transparency of the company. The company is now making a comeback after despair, focusing on jeans wear and first-rate-t-shirts for casual use. The brand has not made it to many retail stores in Holland since it’s comeback. Therefore, they are very keen on stores wanting to sell their apparel. Through a step by step approach, they are entering the market again. Powerfully. The brand is tailored for FAM, as it extinguishes itself from the rest of brands in the Jordaan with it’s punk inspired edge in combination with class. The brand is perfect for the Rock theme, as it bridges rock and punk for a broader spectrum of customers. Corporate / Product Background: Product Profiles, RockFriday, May 13, 2011
  17. 17. Koppartrans, (http://www.koppartrans.com/), founded 1949, Sweden, brand characteristics; “inspired by gas stations and rock”. Koppartrans has stores in all Scandinavian countries and Germany, but is looking to expand. Faith Connexion, (http://www.faithconnexion.com/ ), high end French fashion house, 20 flagship stores in European hotspots, brand characteristics; “glamour rock”. Corporate / Product Background: Product Profiles, RockFriday, May 13, 2011
  18. 18. Art: Rinus Van de Velde, an atist focusing on raw impressions with political meaning http://www.tegenboschvanvreden.com/artists/rinus-van-de- velde/. Kiki Lamers is a local Jordaan artist, with strong visuals questioning life and death. http://www.annetgelink.nl/artists/_17/_img/? &sort=6&skip=10 Cevdet Erek, an artist exploring what fame and film production means, which is highly tied to the rock world. http://www.akinci.nl/cevdet %20erek.html Music: The Dead Weather, an American rock music duo, Deerhoof, a Japanese/American alternative band, !!!, a rock duo. Kiki Lamers Corporate / Product Background: Product Profiles, RockFriday, May 13, 2011
  19. 19. Settled by the water in the 12th century, Amsterdam was for a long time the most important port in Europe, and even in the world during the Dutch Golden Age. With this long tradition of trade, Amsterdam has expanded to be a very culturally diverse and innovative area for business. Today, the capital has an urban population of 747.290, and the greater metropolitan area is the sixth largest in Europe. The latter part of the 16th century invited poetry, ballet and drama, and in 1638 the first theatre was opened. Amsterdam was highly influenced from the French and German, and was the hub for culture in Western Europe. This is evident through the cities many museums, which are concentrated in the cities Museum Square (Museumplein). The Rijksmuseum contains the most important collection of Dutch art, with many well-known artists’ work such as Rembrandt, Vermeer and Van Gough. Amsterdam is also a leader in pop culture and electronic dance music, known for it’s many festivals. Nightlife is vibrant and restaurants offer culinary experiences for all wallets. FAM will be located in the Jordaan, which is a strategic location as it’s younger people enjoy the arts, culture and nightlife, and appreciate a sense of style. The Jordaan is where all the avant-garde fashion boutiques and specialty stores are located. The streets are full of pedestrians strolling around during the weekends, enjoying food, bars and shopping, which gives FAM a broad and appropriate customer base. The Jordaan has a young demographic, that is very culturally engaged and fashion oriented. The region is very secularized and liberal. Amsterdam Cultural BackgroundFriday, May 13, 2011
  20. 20. The Netherlands is a parliamentary representative democracy, and a constitutional monarchy. The political situation is stable, and the country has not been involved in any major conflict since WWII. Over all, The Netherlands is seen as a neutral state. However, the policy on recreational drugs, prostitution, same-sex marriage, abortion and euthanasia are among the most liberal in the world. However, these points are not regarded as hindering to FAM’s business development. Amsterdam Political BackgroundFriday, May 13, 2011
  21. 21. Between 1998 and 2000 Holland’s GDP was well above the European average with 4%, however growth slowed down in the beginning of the 2000’s. The recession effected the Netherlands as well, but not quite as hard as many of its neighbors. Holland is now claiming to be out of the recession, with figures growing since November 2009, and the country has implemented long term recovery plans to assure stable growth. The economy is prosperous and open, and depends heavily on foreign trade. The country is one of the leading nations in attracting foreign direct investment, and joined the Euro in 2002. The private sector is the cornerstone of the Dutch economy, and the government is still gradually reducing its role in the economy since the 1980’s with privatization and deregulation. More than two thirds of GDP comes from merchandise trade. Leading suppliers are Germany (17%), Belgium (9%), China (8.8%) and the US (7.8%). Services account for more than half of the Netherlands income and are mostly in transportation, distribution and logistics. Infrastructure is highly developed with a recent focus on green development to cut energy costs. Amsterdam Economic BackgroundFriday, May 13, 2011
  22. 22. Since The Netherlands is part of the EU, which is a political union, goods that come from other EU countries are very easy to move. Same terms apply for the EEA (European Economic Area) countries, from which most of FAM’s merchandise will be. This is one of the main reasons most of FAM’s merchandise will be from other EU countries. No tariffs are charged. Besides the legislation surrounding work, residential permits and location (which will be discussed later in the process), there are a number of things to consider importing goods from countries outside the EU and EEA. All goods should be assigned to a customs-approved treatment or use by being placed under a customs procedure. There are several different ones, but FAM will be considering the “procedure for release into free circulation” which means that once this process is over, the non community goods will become community goods and will be regarded the same way goods that are manufactured in the country will be regarded. The process includes: - a declaration of the goods - submitted invoice and keeping the goods available for inspection by customs - all the taxes should be paid and import duties such as Ad Valorem duties and Specific duties should be taken into consideration. If one wants to know what tariff code applies before releasing goods into free circulation, one can apply for BTI, which is something FAM will consider. One needs to apply for this and application forms are available by the Tax Administration/Customs and are valid for 6 years. - a check as to whether the goods comply with the regulations in the area of safety, health, economy and environment Legislation Regarding FAMFriday, May 13, 2011
  23. 23. [The Process] When opening a retail boutique in Amsterdam, you have many corporations guiding you through the legal and fiscal hinders any expat faces. However, the first step will be to get a residence and work permit. As a EU citizen, all you need is your passport, but if you are outside the EU or EEA, you need to apply for a visa called the Machtiging tot voorlopig verblijf (MVV). Simply register with the City of Amsterdam. To become self-employed, you will need the correct residence status, obtained at the IND (Immigration and Naturalization Service). Once you have been given the green, you can apply for the work permit. The work permit allows you as an employer to employ foreigners, even outside the EU and EEA. The permit is requested at the Central Organization for Work and Income (CWI), and certain conditions apply such as follows: - despite recruitment efforts you have been unable to find a suitable candidate for the vacancy who holds EEA nationality. - there are no candidates available for the work who hold EEA nationality. This is known as the labour market test - the vacancy must be reported to the CWI five weeks before the application is submitted. - a salary in line with a collective labour agreement or market terms must be offered. - housing must be satisfactory. The permit is free, and the process takes five weeks. The ProcessFriday, May 13, 2011
  24. 24. The next step is making sure the name for your business is available, which can be made sure checking with the trademarks at The Benelux-Markenbureau. Once you have a name for your business, and a business plan to show off your business strategy, one needs to determine what legal status the company will take. FAM will position itself as a sole trader, meaning FAM is the only owner of the business and may have employees. Registering your business is just as important as registering your presence in the country, and is done at the Kamer van Koophandel (KVK) – the equivalent of the Chamber of Commerce. To register you need: - a valid form of ID - copy of bank statement - copy of your home address - rental contract if using hired premises The final step in getting your business approved, is contacting the tax authorities. FAM will profit from various tax advantages, as Holland’s tax rate is well below the European average, with 20% on the first €200.000 profit, and 25.5% on everything above that. In addition to that expatriates get a 30% personal tax income advantage. It is recommended to seek out professional tax advice before starting your business, which can be done through the Belastingdienst (tax office) website. In general, the taxes that apply are the following: - wage tax - income tax - national insurance contributions - emplolyee insurance contributions - VAT (value added tax) Once that is all done, it is important to get the right type of insurance. FAM will get two types: the personal insurance regarding health insurance and unemployment insurance, and the business insurance covering inventory and stock. FAM will be joining the Dutch Federation of Small and Medium-sized Enterprises, in order to get the latest information and help with government, political, and knowledge institutes, including other organizations that could have an influence on FAM’s development in Amsterdam. The ProcessFriday, May 13, 2011
  25. 25. Demographics: - total population: 780,152 - 39% are 25-54, with the median age of 39 - 90% are white - 98% are in households - 15% female singles - 39% are married couples Target Audience: Female, 18-34 years old, has a slightly higher income than the average Amsterdam inhabitant with a gross rate of 3500-4500€ a month, leaving them with around 2000-2500 net a month. About 3.5-5% of her income is spent on apparel, a little above the average of around 3%. The female is singe or has a spouse. She is most likely in a management position, working in the advertising, fashion, arts or restaurant and entertainment business. She lives, besides in the Jordaan itself, in the neighboring districts in the city. It is estimated that about 312,000 people fit perfectly into our target demographic in Amsterdam. Psychographic: Trend conscious and artistic, she is very particular about what brands she wants to be associated with. Social networking is a natural part of her life, and she is technologically savvy. She carries a smartphone and spends a lot of time with social media, not only taking information in, but she is also a big content creator. She is liberal like most of her friends, likes to take an active roll in discussions about the arts and culture. She is hard working during the weekdays, and likes to reward herself during the weekends with some shopping either alone or with her friends. Going out to bars and restaurants is something she very much enjoys. Constantly she uses Twitter, Facebook and deals to inform her of what to do next. Insight: She is looking for something new that can enhance their every day, mundane experiences. Market AnalysisFriday, May 13, 2011
  26. 26. Consumer Purchase Habits: As FAM is targeting a more affluent consumer, the bad economy does not affect purchases as much. Price becomes the last consideration in the consumer journey. FAM’s consumer is looking for a smooth and fun shopping experience, because she can afford it. She likes to take her time shopping, trying things and weighing her decisions. Everything she purchases needs to represent her identity. However, she knows when she wants something and can occasionally go for impulse purchases. Brand loyalty is driven by experience - is the quality good and she wears the clothes a lot she will most likely go back to the same brand. She will shop online if certain brands aren’t available in her vicinity, but she prefers to go to the physical store to feel and try on the fabric - she values the shopping experience with competent sales staff. Consumer buying situation variables by importance: Price: low Convenience: medium Quality: high Service: high Design: high Trends: medium Market AnalysisFriday, May 13, 2011
  27. 27. Competitive Environment: - Tenue de Nimes - focus on denim and textiles, has “pureness” as fundamental idea, includes high end fashion, accessories, books, pencils, photography. http://www.tenuedenimes.com/ - Rock Paper Scissors - Scandinavian fashion boutique, “raw, progressive, young and authentic” offering independent scandinavian brands. http://www.rpsamsterdam.nl/ - LockStock and Barrell - fashion and accessories, “the true spirit of an independent retailer”, not so much focused on trends, more on quality and vintage inspired clothing. http://www.lockstockbarrel.nl - Closed - minimalistic fashion boutique, “form follows function”, focus on denim and chinos. http://www.closed.com/ Buying Situation Variables The prices at FAM will be comparable to nearby shops within the same category. FAM stands out in our product offering, as we provide customers with a style that has proven to be successful but a different line of brands. Most importantly, the experience FAM offers is unique and will attract customers. Market AnalysisFriday, May 13, 2011
  28. 28. SWOT AnalysisFriday, May 13, 2011
  29. 29. FAM has selected its fashion brands by careful examination of the competition in the neighborhood. Many of the more successful stores in the Jordaan have higher end brands focusing on denim, accessories and high quality material more so than fluctuating fashion trends. FAM’s objective is to offer what the consumer clearly is interested in, but offer different brands, since all of these boutiques have a similar selection. Among the brands selected are forte_forte, Vince, Costume National, Munthe Plus Simonsen, Rabens Saloner, Punk Royale and Koppartrans, none of which are easy to get a hold of in Amsterdam. The female middle-aged consumer FAM is targeting therefore gets to stand out with her unique clothing. Also since FAM will offer three distinct styles at every time, the store will attract an eclectic mix of people, reflecting Amsterdam as a city. To keep up with the pulse of the city, FAM’s manager will travel around to fashion shows, showrooms and new collections will be selected each season accordingly with the help of look books and trend research. Customer service is very important to FAM, as employees will be highly educated in pop and fashion culture. They will all go through a three week training, and have a mentor the first six months of their employment. They will be available not only to inform the customer of the materials and brands, but also give them interesting facts about the origin of certain styles available at the time. They will also be very knowledgeable of the music artists playing and the fine artists that are currently being represented in the boutique. Every now and then, FAM will invite the local artists to tell the customers about their thoughts and process around the artwork in person. Branding of products will be evident through the paper bags. When you buy a painting or photograph, it will be wrapped in branded paper as protection. It is important to keep the customer happy in all stages of the process. The customer will leave knowing that she has 30 days to return her clothing, and she will get all her money back. If she has any concerns or the material has failed on her, she should get in contact with FAM immediately. She will also be invited to participate in FAM’s blog and sign up for the newsletter. The return policies for the art can unfortunately not be as flexible, as this is not fare to the artist. After two days the art is not refundable. Most of the brands are sourced from the EU, which gives FAM a cost savings opportunity avoiding high international taxes and paperwork. Moreover, the lead time is then reduced, facilitating the quick turnover FAM needs to have every season due to its many different products. Fashion trends will be easier to adapt to, even though FAM focuses more on the origin of each fashion genre. Since Amsterdam is centrally located with highly developed logistics, accessibility is high and transportation costs are reduced. Music within the store will be managed by employees through iTunes playlists, but seen over by the store manager. Art will be selected by the store manager who will actively look for local artists that are up and coming and suitable for FAM’s current themes. Relationships will be built over time with curators in the city, and opportunities will be created through FAM’s website. The artists and FAM’s art manager will together negotiate a price that is suitable for both parties. On occasion and later in FAM’s life spam, artists will be invited to create special pieces for FAM’s current theme. Market Recommendations: ProductFriday, May 13, 2011
  30. 30. The price will be at the same range as our main competitors. We are attracting a consumer with middle to high income level, so there is no reason to mark our prices lower since we also want to keep a sophisticated brand. Profit margin will then be reasonable even including tax and VAT. VAT is a standardized consumption tax rate throughout the EU, and each country can decide its rate within the preset margin, which is currently 19% in the Netherlands. Corporate tax is right now at 20%, and inflation has gone down considerably only the past year. Over all the Dutch economy is stable and has a low unemployment rate of 5.5%, which points toward consumer spending being at a healthy rate for FAM. Products will be sources directly from the fashion brands, and prices are not on consignment. There will be a gradual sale after each season and new merchandise is coming in, with prices market down to 50% but not over that. This to also catch a more price concerned consumer, but carefully not offering too high sales percentages to maintain a high brand perception. Once pieces are not sold, they will be handed to second hand stores, where a certain percentage of the loss can be regained. Market Recommendations: PriceFriday, May 13, 2011
  31. 31. Careful calculations in time will assure all products arrive to the store seamlessly, which is particularly important for FAM’s concept to work considering the many different products offered. There will be one manager responsible for each type of merchandise, who is also specialized in that topic. They will all work closely together with the owner. Merchandise will be selected well in advance, based on trends and fashion events as mentioned above. Distribution will be kept simple, not involving any consultants. FAM will be responsible for all the direct contact with vendors, and keep the channel length as short as possible, depending on the vendor. Inventory will be tracked easily using RFID technology. Market Recommendations: DistributionFriday, May 13, 2011
  32. 32. The opening of FAM will slowly be announced strategically creating buzz through press releases in local fashion, music and art and culture magazines, outdoor advertising and guerilla marketing. These services will be outsourced, but a small marketing/ advertising firm. They will also manage SEO, create FAMʼs website and develop and manage the social media platforms. Constantly active social media platforms include Facebook and Twitter. Both these platforms will not only be used as customer service, but also for discussion about trends, art, music and style in general. FAM will tweet styling tips and announce new merchandise. Facebook will serve as a community for those involved, and events can be joined through the page. On the opening day, an event will be held inviting known fashion names, artists and musicians, to later be opened for the public. The majority of the publicity will then be maintained by word of mouth, the FAM website and social media. The FAM website will be a transparent discussion board, allowing customers to come with suggestions for merchandise and artists and function like a forum. Inspiration and background of each theme is available, as well as news and events related to FAM. Sales will be announced through newsletters customers can subscribe to. FAM will not sell any merchandise online, in order to keep the merchandise exclusive. However, we encourage everybody to participate in the discussions online. Market Recommendations: PromotionFriday, May 13, 2011
  33. 33. http://www.vogue.com/vogue-daily/article/vd-forteforte-a-low-key-label-from-italy-is-about-to-make-a-lot-of-noise/ http://www.norwegianfashion.no/blog/punk-royal-goes-pop/ http://en.wikipedia.org/wiki/Amsterdam#Demographics http://amsterdam.areaconnect.com/statistics.htm http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073790604&type=RESOURCES http://www.ehow.com/list_7221027_eu-import-duties.html http://www.fas.usda.gov/posthome/useu/import.html http://www.dutchnews.nl/news/archives/2009/11/the_netherlands_is_out_of_rece_1.php http://us.holland.com/e/8151/Import-and-export-regulations.php http://en.wikipedia.org/wiki/Economy_of_the_Netherlands http://www.iamsterdam.com/en http://www.tripadvisor.com/ShowTopic-g188590-i60-k1298763-What_would_be_considerd_a_good_salary_in_Amsterdam- Amsterdam_Noord_Holland.html http://www.billshrink.com/blog/1204/consumer-income-spending/ SourcesFriday, May 13, 2011

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