1. Memo of Transmittal
To: Professor Keifer, Professor Levallet, Professor McElfresh, Professor
Lambert
From: AM 101 Cluster Team 6: Hunter Anderson, Jimmy Comodeca, Allison Kall,
Noah Saunders, Leah Staursky
Date:: November 19, 2015
Subject: Business plan for Landed Gentry
The following business plan for Landed Gentry has been created for the Senior Partners at Copeland Associates. This
report details a range of components including the business concept, analysis of the industry, local competitor analysis,
demand scenarios, the marketing strategy, implementation of information systems, as well as financial projections.
Landed Gentry’s overarching goal is to revive the luxury experience of the traditional haberdashery, emphasizing the
importance of quality material and unparalleled craftsmanship. Our product mix is specifically focused to the modern
gentleman, highlighting our versatile formal wear to be worn both in the office and out in the city. It will include apparel
such as sport coats and blazers, dress shirts, dress pants, premium leather shoes, and accessories such as ties and socks.
We take pride in our use of specialty fabrics such as tweed, wool, cashmere, seersucker, and chambray. After extensive
research on this niche segment, we will be opening the primary flagship store in the Mount Vernon area of Baltimore,
Maryland.
Demand Forecast
We have two demand scenarios that allow us to determine feasibility in comparison to demographics and like-
businesses. These demand scenarios are based on primary and secondary data. Both scenarios are weighted at 50%.
Marketing Strategy
Our integrated marketing strategy will focus on capturing consumers in the Baltimore area ages 25-45 making more than
$75,000 per year. We will utilize a multi-channel approach in reaching out to our potential customer base through means
traditional media such as newpapers, fliers, and billboards as well as digital media. Social media and online advertising
will be implemented as they are cost-effective and have the ability to reach many consumers.
Financial Projections
Landed Gentry will experience quick growth after an initial negative net income in year one. The expected payback
period, subsequently, will be 4.19 years. The project is assessed based on a 25.99% WACC, and results in a positive NPV
of $36,141. Overall, the financials for Landed Gentry are forecasted to result in a successful investment opportunity.
We sincerely appreciate your consideration for investing in Landed Gentry. We believe there are indicators in this
business plan that support the fact that the plan is both feasible and profitable. Our team is happy to assist you with any
questions that may arise.
1
2. Landed Gentry
Prepared For:
Luke McElfresh
Jamie Lambert
John Keifer
Nadège Levallet
Prepared By:
Allison Kall
Noah Saunders
Hunter Anderson
Leah Staursky
Jimmy Comodeca
November 19, 2015
Est. 2 0 1 5
3. Landed Gentry
Est. 2 0 1 5
Table of Contents
Analysis of Business Environment: Microenvironment 2
Analysis of Business Environment: Microenvironment 3
Analysis of Business Environment: Local Market Analysis 4
Analysis of Business Environment: Local Competitor Analysis 5
Business Concept 6-8
Demand Forecast 9-12
Information Systems 13
Marketing Strategy 14-17
Financial Projections 18
Conclusion 19
References 20-23
Appendix A 24
Appendix B 25
Appendix C 26
Appendix D 27
Appendix E 28-36
Introduction 1
Appendix F 37
4. Landed Gentry
Est. 2 0 1 5
Table of Contents
Appendix H
39
Appendix I 40
Appendix J 41
Appendix K 42
Appendix G 38
5. Landed Gentry
Est. 2 0 1 5
Table of Figures
Figure 2: Why Boston? 3
Figure 3: Porter’s Five Forces Analysis Overview 3
Figure 4: Population By Age for Mount Vernon 3
Figure 5: Household Composition for Mount Vernon 4
Figure 6: Surrounding Area Sales 4
Figure 7: Location in Relation to Gian Marco Menswears 5
Figure 8: SWOT Analysis: Men’s Wearhouse 5
Figure 9: SWOT Analysis: Brooks Brothers 5
Figure 10: News Title Collage 6
Figure 11: Mission Statement and Value Proposition 7
Figure 12: In-Store Display Concept 8
Figure 13: Average Transaction Value 9
Figure 14: % of People who Purchased an Item from Landed Gentry 9
Figure 15: # of Millennial Men who Purchased from Landed Gentry 4x per year 10
Figure 16: Projected Customers per day 10
Figure 17: Customers per Day for each year 11
Figure 1: PEST Analysis Overview 3
Figure 18: Comparable Stores (distance away, store size, business concept) 11
6. Landed Gentry
Est. 2 0 1 5
Table of Figures
Figure 20: Weighted Average of Demand Scenarios 12
Figure 21: Information Systems 13
Figure 22: % Share of Minutes on Social Media Platforms 15
Figure 23: Year 1 Marketing Budget 16
Figure 24: Promotional Flyer 17
Figure 25: WACC, IRR, NPV, Payback Period 18
Figure 26: 5-Year ROE and ROA Graph 18
Figure 27: 5-Year ROE and ROA Percentages 18
Figure 28: 5-Year Net Income 18
Figure 19: Comparable Stores (customers per day) 12
7. Landed Gentry
Est. 2 0 1 5
Executive Summary
Business Concept
Landed Gentry will specialize in providing specialty fabrics in the upscale menswear segment while crafting
exceptional style with merchandise on the forefront of the fashion industry. Located in Baltimore, Maryland, our
products will be versatile and stylish focusing on the fashion trends of the metrosexual male. The products can be
worn both in an office environment as well as in upscale social environments. Apparel will include items such as
sport coats, blazers, dress shirts, dress pants, and accessories such as ties and socks. By utilizing specialty fabrics
such as tweed, wool, seersucker, cashmere, and chambray, consumers will find value in our upscale merchandise
not available from competitors.
Industry Analysis
The men’s retail fashion industry is experiencing strong growth as millennial men are seeking more interest in
fashion. The industry has been slow to react to these new changes in industry demand, creating a void in which
Landed Gentry plans to fill. In the greater Baltimore area, nearly 25% of the workforce is employed in the science,
technology, engineering, or math fields. These individuals typically have more disposable income, which
demonstrates Baltimore’s progression towards more upscale and dynamic metropolitan areas.
Location
Landed Gentry will be located at 916 N Charles Street, Baltimore, Maryland in the historic neighborhood of Mount
Vernon. Residents of this neighborhood typically have a bachelor’s degree and are young professionals (US Census
Bureau). Within five miles of the store, there are over 55,416 households making more than $75,000 annually
(SimplyMap).
Integrated Marketing Strategy
Our integrated marketing strategy focuses on capturing the segment of men aged 25-45, making more than $75,000
annually. By utilizing cost-effective online marketing techniques, we intend to connect with consumers using social
media platforms and targeted advertisements. We also intend to use traditional channels such as a billboard,
newspaper advertisements, as well as fliers posted throughout the city.
Demand Scenarios and Financial Projections
Two demand scenarios were calculated to estimate the customers per day. Based off these demand scenarios, we
calculated all financial information of the company for the next five years of operation. Our projected NPV is
$36,141, with an IRR of 28.27%, and a WACC of 25.99%. The payback period is 4.19 years. All of this information
provides strong evidence that the business is feasible.
Final Recommendations
We recommend that our investors move forward with the project. Landed Gentry is projected to have a positive
NPV and IRR that is greater than the WACC, meaning that the project is feasible.
8. Landed Gentry
Est. 2 0 1 5
The overall objective of this project is to develop a business concept and determine the feasibility of implementing that
concept in a specific location. The concept begins with an environmental analysis of the specialty apparel, footwear,
and/or accessories retail industry as a whole and the sub segment we chose: men’s luxury apparel, footwear, and
accessories. The market analysis examines the local market that Landed Gentry will be located within, and the
surrounding competitors in the area. Landed Gentry will act as a subsidiary operating under Copeland Associates for
tax reporting and legal purposes (see Appendix J for LLC documentation). We chose to operate in this fashion because
Copeland Associates has a majority of control over and startup funding supplied to Landed Gentry. This is to assure
that Copeland Associates do not have legal responsibility to Landed Gentry’s outside creditors. Primary and secondary
research was conducted in order to create demand forecasts to determine the amount of sales and customer traffic
that Landed Gentry will likely experience. The demand scenarios will be followed by a five year financial projection to
determine the feasibility of the store. A marketing and information systems strategy is also provided to give a more in-
depth overview of how Landed Gentry will operate.
Landed Gentry’s overarching goal is to revive the luxury experience of the traditional haberdashery, emphasizing the
importance of quality material and unparalleled craftsmanship. Our product mix is specifically focused to the modern
gentleman, highlighting our versatile formal wear to be worn both in the office and out in the city. A current trend
driving the men’s fashion industry is the rise of a new commercially-feasible demographic known as the “yummy”, a
modern take on the term “metrosexual”, coined in the 1990s. It will include apparel such as sport coats and blazers,
dress shirts, dress pants, premium leather shoes, premium leather goods such as wallets, and briefcases, and
accessories such as ties and socks. We take pride in our use of specialty fabrics such as tweed, wool, cashmere,
seersucker, and chambray. After extensive research on this niche segment, we will be opening the primary flagship
store in the Mount Vernon area of Baltimore, Maryland.
Introduction
1
9. Industry
Analysis
Business
Concept
Demand
Forecast
Information
Systems
Marketing
Strategy
Financial
Projections
Landed Gentry
Est. 2 0 1 5
Analysis of Business Environment
This section provides a comprehensive overview concerning the industry environment of Landed Gentry, outlining the
overarching trends affecting the men’s fashion retail market. Analysis of this industry includes an examination of the broad
trends shaping the retail fashion market such as the economic and political climate, as well as exploring the operating
environment of the men’s luxury sector in which Landed Gentry competes. Information regarding competitive pressures
and underserved sectors of fashion retail will be provided. This section discusses the current market direction and notable
fashion trends driving growth and consumer behavior within this constantly evolving industry.
Industry Trends
Macro-Environment
The apparel-retail industry consists of the sale of all menswear, womenswear, and children’s wear. Europe currently leads
the retail apparel industry, followed by the Asia-Pacific and the United States. In the United States, men’s apparel sales
are now growing faster than women’s apparel sales, increasing by 5% in 2013 (The Millennial Manscape). This trend has
also held true for other leading markets such as the U.K. and Germany. The segment that is driving this growth is the
increased popularity of formal attire, specifically in millennial males. A 2012 study by Boston Consulting Group revealed
that the millennial male spends twice as much on apparel per year than the men of previous generations (The Millennial
Manscape). Although women's clothing still sells more, menswear has been expanding at a faster rate. Over the last two
years, men's retail sales jumped 4.1% to $101.8 billion, eclipsing the 2.8% rise to $150.1 billion on the female side,
according to research firm Euromonitor (Li, 2015). By 2017, menswear is expected to climb 8.3% to $110.3 billion,
compared with 4.2% to $156.5 billion in women's (Li, 2015). Aside from the social trend of expensive, fashion-forward
formalwear in millennial-age males, various economic trends indicate how well companies in this niche market perform.
Per capita disposable income and the job market are key economic indicators of consumer spending power. Society’s
attitudes towards masculinity have evolved in a big way, becoming increasingly looser, less defined, and less restricted. As
the US is becoming less patriarchal, the male identity is shifting to allow for something like fashion or style, once
considered strictly feminine, to be adopted (Wang, No Signs of Slowing in the Global Menswear Market).
2
The men’s fashion retail industry is in a period of transition,
as consumers shift focus away from department stores and
onto niche retailers and online shopping sites that can better
meet the changing demands of the market. A major trend in
the men’s luxury fashion industry is consumers growing
desire to incorporate formalwear into their day to day dress
(Conti & Zargani, 2015). Luxury apparel items are perceived
to hold greater value in the minds of consumers as a result
of the extensive versatility a high quality formalwear item
can provide both at the office and on the weekends (Kunde,
2014). Sales at department stores fell 28% from 2002-2012
meanwhile sales at clothing stores grew 45% in this same
time period, highlighting fundamental changes in consumer
buying preferences (Carter, 2015). Boutiques and other
small retailers have been able to achieve such high growth
by leveraging their agility in adapting to new fashion trends
and by stocking their stores with highly sought after
products targeting profitable niche markets more effectively
than department stores are capable of (Hoover’s, 2015). In
the United States, changing demographics show further
opportunities for luxury men’s fashion retailers. The target
market for these products are adult males aging from 25-44,
earning above average salaries. Between 2010-2020 the
population of males age 25-44 is predicted to increase 8%
(U.S Census Bureau, 2015).
This industry has shown positive growth as it recovers from
the damaging effects of high unemployment and low levels
of disposable income that resulted from the economic
recession in 2008 (Carter, 2015). As the economy has
recovered, increased consumer confidence and rising
personal income have helped men’s luxury apparel and
accessory retailers to grow demand for their products
(Passport, 2015). Decreasing unemployment has given rise
to additional men returning to work and needing to
purchase suits and other formalwear required in a
professional environment. Simultaneously, as consumer
spending has risen, global fashion trends have driven desire
for crafting a sophisticated wardrobe consisting of fine
specialty fabrics such as tweed and wool, forging a highly
profitable niche segment targeting young professionals and
fashion-conscious middle age men (Lu-Lien Tan, 2015).
Yummies, the modern day equivalent of the metrosexual
demographic popularized in the 1990’s has recently become
a commercial success, creating opportunities to target the
big spenders of the millennial generation who have been
proven to outspend their previous generation (Stock, 2014).
This untapped market potential combined with heightened
spending on clothing by males has created great
opportunities for implementing Landed Gentry’s business
model.
10. Buyer Power:
The bargaining power of small
independent fashion retailers is reduced
by the major manufacturers who have
their own retail stores across the country.
Buyer power is moderate due to the low
costs of switching suppliers and the
multitude of options overseas.
Landed Gentry
Est. 2 0 1 5
PEST Analysis Overview (see Appendix A for full analysis)
Political Economic Social Technological
• FTC-enforced
labeling regulations
• US Fair and Equal
Employment Laws
• Standard taxation
by state
• Industry has
repeatedly been
affected by issues
such as worker’s
rights and child
labor laws
• Per capita disposable
income growing
• National
unemployment rate
is decreasing
• Growing US economy
(GDP)
• Consumer
Confidence Index
• Demand can
fluctuate quickly
• Millennial males
more keen to luxury
fashion
• Growth driven by
Henry (high earner,
not rich yet) and
Yummy (young,
urban, male)
• Social media is
promoting adoption
of new trends
• Ecommerce is more
popular with males
• Manufacturing
advances allow
faster production
times and speed to
market
Micro-Environment
Baltimore is the twenty-sixth most
populous city in the United States and
the largest city in Maryland. At the end
of 2014, it had a population of 622,104
people with many people living in
residential neighborhoods throughout
the city. Those who live in the city of
Baltimore have a median age of 34.0
years, lower than the national average
of 37.2 years. Baltimore also houses
numerous institutions of higher
education, both public and private.
There are more than 66,000 students
attending over twelve accredited
institutions within the city of
Baltimore. Unemployment rates have
been steadily decreasing since 2010,
with unemployment dropping to 7.4%
at the end of 2014.
Although this number is slightly above
the national average of 5.5%,
Baltimore has been in the process of
shifting to a service based economy.
The metropolitan area of Baltimore is
the 7th most affluent metropolitan area
in the United States. In Baltimore,
Maryland, 6.6% of men purchased
items in the men’s apparel and
accessories industry compared to the
nationwide average of 5.4%
(SimplyMap). Total expenditures for
men’s wear in 2014 were
$223,734,875.00 while retail sales
were only $95,870,694.00. This
signifies that demand in Baltimore,
Maryland is exceeding the total supply
creating an opportunity gap for men’s
wear in the area.
Why Baltimore?
• #3 city for college grads
• Millennial population is 25% of
total
• #6 least-costly city to do
business in
• One of top ten places to launch
a small business
• 7th most affluent metropolitan
area in the US
Porter’s Five Forces Overview (see
Appendix B for full analysis)
Threat of New Entry:
Barriers to entry are low against comparable stores
due to the fact most small fashion retailers only
operate in one specific location.
Competitive Outlook:
The level of competition in the men’s fashion
industry is high and expected to increase as the
economy continues to recover. Consumers have a
wide variety of options, which is why the
establishment of brand loyalty is crucial. Brand
loyalty in males is historically stronger than in
women.
Threat of Substitution:
The largest threat is posed by the
increasing prevalence of online retailers
in the fashion industry.
Supplier Power:
Supplier power is high in
the men’s luxury fashion
industry, as the most
prominent brand name
manufacturers are able
to leverage high
consumer demand for
their products to reduce
the discounts they offer
to wholesale buyers.
Supply of tweed, our
primary fabric, is
regulated in Scotland.
3
Figure 1:
Figure 2:
Figure 3:
Industry
Analysis
Business
Concept
Demand
Forecast
Information
Systems
Marketing
Strategy
Financial
Projections
11. Landed Gentry
Est. 2 0 1 5
Local Market Analysis
Landed Gentry is located at 916 N Charles Street in Mount Vernon, a cultural center in Baltimore. Specifically in Mount
Vernon, there are 584,988 people living within five miles of the store. The highest population segment of these
individuals is the 25-29 age segment making up 9.0% of this population (Loopnet, 2015). The average income for
households located within a five-mile radius is $55,220. However there are 55,416 households making more than
$75,000 annually (SimplyMap). There are two main races that make up the Mount Vernon neighborhood, white and
African American. White inhabitants make up 55.3% while the African American inhabitants make up 33.4% of the
neighborhood. Residents of this area typically have a bachelor’s degree and are young professionals (US Census
Bureau).
Figure 4:
(Neilson, Zip-
Code Lookups)
Mount Vernon, Baltimore, MD
Retail Sales
Volume
1-mile 3-mile 5-mile
2013 Men’s
Clothing Stores
$7,406,671 $36,857,656 $67,971,317
Figure 5:
(Neilson, Zip-
Code Lookups)
4
Industry
Analysis
Business
Concept
Demand
Forecast
Information
Systems
Marketing
Strategy
Financial
Projections
Figure 6: (Loop Net,
2015)
12. Landed Gentry
Est. 2 0 1 5
Local Competitor Analysis
The level of competition in the men’s fashion industry is high to begin with, competing directly with small one-
location stores as well as large, nationwide retailers with hundreds of locations. Specifically in the Mount Vernon
area of Baltimore, MD, we identified one small-scale competitor and two national competitors.
“Show me something new and different”
Gian Marco Menswear is our closest competitor in proximity. They offer similar
products to ours but the main difference is their employees physically travel to
Europe to negotiate and partner with other companies to find clothing that is
not yet sold in America. Their reviews (found in Appendix D) are not as high as
expected with the main concern being a lack of good customer service. The
way Landed Gentry can outperform them would be hiring the best employees
to have honest opinions, while being as helpful and tending to the wellbeing of
the customer.
“You’re going
to like the
way you
look”
Strengths
• Suit renting options
• Reserve online pickup
• Sizing (availability)
• Strong finances
• Strong national reputation
Weaknesses
• Appeal to older target
market
• Low quality customer
service perception (sales)
• Inventory scarcity in-store
Opportunities
• Comply with trends to
attract younger target
market
• Offer business luggage/
briefcases
Threats
• Department stores such as
Macy’s, J.C. Penny’s
• Nordstrom Rack
• Increasing number of
online fashion retailers
Men’s Wearhouse is not as close of a
competitor, especially related to their
negative reviews, which can be found in
Appendix D. They are also not particularly
close in proximity to our location. Their
products compete with our higher prices,
but we feel the quality of our customer
service and quality items will help make us
the more favorable company. Men’s
Wearhouse also offers deals such as free
lifetime pressing on all suits, sport coats,
etc. which benefits their image by offering
these services most companies do not.
Strengths
• Strong national reputation
• High quality apparel in an
upscale price range
• Present in 15 countries
outside of their US
presence
Weaknesses
• Longer delivery time
compared to competitors,
typically 4-5 weeks
• Mostly domestic
production, which is more
expensive
Opportunities
• Offer customization options
(co-design)
• Experiment with new retail
formats
• Create a broader range of
price points to compete
with luxury brand names
Threats
• Increasing number of
online fashion retailers
• Few standalone stores,
mostly located within malls
which is more unappealing
to our target market than
standalone stores
“American Classic since 1818”
Brooks Brothers is our biggest competitor. With their newly
opened store in Harbor Place, the competition is very high.
Pricing wise, Landed Gentry decided to market specific
products priced higher or lower than Brooks Brother’s
similar products. Their ratings were impressive in
comparison with the rest of the competitors, and reviews
are provided in Appendix D. Our competitive advantage
over them will be our devotion to excellence in customer
service, which is where they appear to be lacking based on
customer reviews.
Figure 7:
5
Figure 8:
Figure 9:
Industry
Analysis
Business
Concept
Demand
Forecast
Information
Systems
Marketing
Strategy
Financial
Projections
14. Landed Gentry
Est. 2 0 1 5
Landed Gentry aims to provide apparel and accessories to the growing population of fashion-oriented, high income
adults ranging from 25-45 years old. Our flagship location at 916 N. Charles Street, positioned in the center of
Downtown Baltimore, contains a large population of individuals that fit our target market and allows for additional
growth opportunities as positive word of mouth spread throughout the metropolis. The current location will be
redesigned and transformed into 3,850 square foot Modern-Victorian influenced space, reflecting the companies
emphasis on traditional luxury. Baltimore, Maryland, the 26th most populous city in the nation has undergone a
major transition out of the working- class manufacturing powerhouse it was in the early 20th century to the vibrant
service-oriented economy it is now (City of Baltimore, 2015). In the Greater Baltimore area nearly 25% of the
workforce is employed in science, technology, engineering and math. Individuals in STEM careers that require a
bachelor’s degree earn $19,830 more than those in non-STEM careers requiring the same level of education,
highlighting the cities progression towards the upscale and dynamic metropolitan area it is today (Gantz, 2013).
Between 2000-2010, the Baltimore metropolitan area population increased by 130%, as exciting new restaurants,
bars, shops and other small businesses drew the emerging upper class into newly developed upscale residential
properties (Bernstein, 2011).
“Between 2000-2010, the Baltimore metropolitan area population
increased by 130%, as exciting new restaurants, bars, shops and other
small businesses drew the emerging upper class into newly developed
upscale residential properties”
Landed Gentry, embracing the old-world elegance of wool, tweed and other specialty fabrics, desires to provide the
modern gentleman with the apparel and accessories needed to construct a stylish upscale wardrobe. Embodying the
luxury experience of the traditional haberdashery, our focus is on providing unparalleled service and crafting
exceptional style on the forefront of men’s fashion. At the heart of our brand, our vision lies on the convergence of
modern fit and comfort paired with the sophistication of time honored classics. Landed Gentry aims to create an
innovative consumer-centric shopping experience in which consumers are paired with an in-store personal stylist
who provides them with assistance in developing an unique blend of style, personalized to each individual, that any
man can be proud of. We plan to accomplish this by combining the best of modern business technology with
products designed from the finest fabrics, sourced from traditional textile mills that have been handcrafting
menswear for generations.
Location and Target Market
7
Industry
Analysis
Business
Concept
Demand
Forecast
Information
Systems
Marketing
Strategy
Financial
Projections
Mission Statement: Embodying the luxury experience of the traditional
haberdashery, our focus is on providing unparalleled service and crafting
exceptional style on the forefront of men’s fashion.
Value Proposition: Offer exceptional value through specialty fabrics that
other competitors ignore such as wool and silks, and provide personal-tailored
formalwear focused on desired, but underserved luxury fabrics.
Figure 11:
Identity and Value Proposition
15. Landed Gentry
Est. 2 0 1 5
8
Business Operating Model
Landed Gentry will specialize in high-end men’s fashion, offering custom fitted and personalized products that place
comfort and individuality at the forefront. The products that will be offered include dress shirts, suits, blazers, sport
coats, sweaters and outerwear along with men’s accessories such as dress shoes, ties, pocket squares, and cufflinks.
A varying product mix will be implemented, changing four times throughout the year to coincide with fall, winter,
spring and summer seasons. Inventory will be purchased primarily from overseas suppliers that primarily
manufacture specialty textiles and fabrics, guaranteeing high quality and consistency. Landed Gentry will offer an
unique shopping experience, centered on providing high quality customer service through the use of in-store
personal stylists. These stylists will assist each customer in creating outfits and combinations that match their body
profile and personal appearance, guaranteeing great fit and allowing consumers to feel confident with their
personal style. As formalwear becomes commonplace outside of the office, consumers feel that their purchases in
this segment of retail fashion are a worthwhile investment; by increasing the versatility of formalwear, consumers
are willing to spend higher amounts on our products because they know they will wear them often and thus prefer
to buy a quality item that is comfortable and will last through many seasons of wear. Our business model allows the
store to generate high levels of cross-selling, as current male fashion trends place emphasis on accessorizing and
layering to build complex and individualized flair in each outfit. With the help of the personal assistant, consumers
feel confident that they will utilize a set of accessories when paired up with matching apparel, which can be difficult
to do without experience in men’s fashion. When consumers feel they can get more use out of an item, the
perceived value of the merchandise increases.
In-Store Display Concept
Figure 12:
Industry
Analysis
Business
Concept
Demand
Forecast
Information
Systems
Marketing
Strategy
Financial
Projections
16. Landed Gentry
Est. 2 0 1 5
9
Average Transaction Value
To determine an accurate average transaction value, an estimation of ticket price per item and percentage weight
of total sales was used. For each item in Landed Gentry’s product line, the highest and lowest priced expected were
averaged out to get an estimation of an appropriate ticket price per product. These values were then weighted in
terms of estimated percent of total sales. The percentages as well as expected high and low ticket prices were
derived through primary research and analysis of public 10-K’s (Men’s Warehouse 10-K, 2015; PrivCo, 2015). Each
weighted average were then summed to come up with the total average transaction value.
The primary reason for using this technique to calculate average transaction value, rather than solely primary
research, was due to the uniqueness of Landed Gentry’s business concept. For example, the three comparable
stores in the area have average transaction values of 400 (Gianmarco), 500 (Brooks Brothers), and 450 (Men’s
Warehouse). These values, due to Landed Gentry’s lower priced and more affordable product line, are not accurate
estimations of projected average ticket prices. For a in depth breakdown of the product line and percentage
weights, please look at the figure below.
Demand Scenario #1: Demographics
Industry
Analysis
Business
Concept
Demand
Forecast
Information
Systems
Marketing
Strategy
Financial
Projections
The location chosen for Landed Gentry is at 916 North Charles Street, roughly an eight minute walk from Baltimore
Penn Station, and is located in the heart of Baltimore, MD. There is plenty of street parking, making it very
accessible for customers from a farther distance away. In addition to being close to Baltimore Penn Station, this
location is within walking distance of a University of Maryland branch. Because there is plenty of parking located
around this location, the parameters were set but not limited to five miles or closer when determining potential
customers.
sales in our segment being made by male consumers earning over $75,000 annually
(MMI Reporter, 2015). Next, we divided this value by the total spending in
downtown Baltimore, leading to the ratio of 19.46%, representing the ratio of
people within our target market that purchased an item in our specific product
offerings.
We began with total spending in metropolitan Baltimore (Simplymap, 2015) and drilled down from this value by
multiplying it by 43.15%, found by taking total apparel sales and breaking that value down into just the product
segments we offer at Landed Gentry (IbisWorld, 2015). From there, we further reduced the value by breaking it
down into sales from just our target market which we found by using an HHI index representing the percent of
Figure 13:
Figure 14:
17. Landed Gentry
Est. 2 0 1 5
10
Demand Scenario #1:
We began this demand scenario by analyzing the population of males within 5 miles of our store location, reducing
this value by multiplying by 30.81%, which gives us the population of males aged 25-44 within 5 miles (LoopNet,
2015). This value was then multiplied by 25.97%, giving us the population of the target market for our store. We
then multiplied this value by 19.46%, which we found in earlier in demand scenario 1 by analyzing an HHI index of
the luxury apparel market (MMI Reporter, 2015). After making this calculation we are left with 4,276 potential
customers within 5 miles of our store. Utilizing data from The Boston Consulting Group, we were able to determine
that 38% of our millennial customer base makes a purchase once per month (Barton, Koslow, Fromm & Egan,
2012). This leaves us with 68% of our customer base making only 1 purchase per season, revealed by surges in retail
apparel spending occurring at the beginning of the 4 meteorological seasons, leading to 4 annual purchases by this
segment of the potential customer base (Rahman, Sarker & Escobar, 2011). The figure of 4 sales per season was
supplemented by additional sources examining consumer shopping trends from the U.S census (U.S Census Bureau,
2015).
Demand Scenario #1: Demographics Continued
By combining the number of annual purchases of both of the target market segments, we are left with 30,124 total
annual purchases by consumers in our specific demographic, within 5 miles of our location. Because we will experience
competition from 3 local retailers, this value is divided by 4 to represent our expected market share, including our
store into the division of sales between competitors. Following this step, we conclude that 7,531 customers will make
up our share of the men’s luxury menswear market in metropolitan Baltimore by year 5 of operations. Because we are
open for business 313 days of the year, this value is the divided by 313 days in order to determine the amount of
projected daily purchases, calculated to be 24.06 purchases per day.
Figure 15:
Figure 16:
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18. Landed Gentry
Est. 2 0 1 5
Demand Scenario #2
11
Lastly, in order to calculate the final customers per day for year one, the expected value for year five was reversely
weighted based on projected growth trends. These growth trends were derived through research of what a typical
successful start-up experiences in the first five years (Quora, 2015). The final calculated customers per day for year
one, moreover, came out to 13.82.
Demand Scenario #2: Comparable Stores
Primary research was conducted to gather information on comparable stores in the Baltimore region. The
three stores focused on were Brooks Brothers, Jos. A. Bank, and Gianmarco. All three range in sales,
customers per day, and comparability to the business concept Landed Gentry will aim to implement. For
example, Gianmarco represents the smaller scale “mom and pop” style store that Landed Gentry will aim
to represent, while Brooks Brothers and Jos. A. Bank are more established stores.
Each store provided an accurate estimation of average transaction value and customers per day. In terms
of this demand scenario, only the customers per day were considered as the average transaction values
were not accurate to Landed Gentry’s business concept and product line. Furthermore, Gianmarco
reported roughly 14 customers per day, Jos. A. Bank roughly 13, and Brooks Brother at around 12. In order
to calculate the most accurate customers per day total, each store was weighted based on there proximity
to Landed Gentry, size of store, and comparable business concept. Based on this criteria, Brooks Brothers
and Jos. A. Bank both had weights of 30%, while Gianmarco was given a weight of 40%.
(view the figure below for a breakdown of this process)
Figure 18
Figure 17:
Demand Scenario #1: Demographics Continued
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19. Landed Gentry
Est. 2 0 1 5
Demand Scenario #2
12
Demand Scenario #2: Comparable Stores Continued
After approximating the weighted percentage of each store, they were multiplied by the average customers per
day to come up with customers per day. After all the final numbers were summed together, the total customers
per day are 13.10.
(view the figure below for a break down of this process)
Figure 19:
Demand Scenario: Conclusion
Landed Gentry has determined demographics and comparable stores are both equally as accurate in determining
the first years customers per day. Due to this, they both received a 50% weight when conducting the final demand
conclusion. After deriving the weighted averages, the summed total of customers per day for Landed Gentry’s first
year is 13.47. This number is expected to grow 20% in year 2, 16% in year 3, 10% in year 4, and then 5% steady
growth in the years following
(view the figure below for a break down of this process)
Figure 20:
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20. Landed Gentry
Est. 2 0 1 5
Information Systems
13
Landed Gentry is a small start up business with
approximately three employees working in the store at one
time. Our company thrives off of excellent customer service
and we wanted our point of sales system to compliment our
customer service to give employees great mobility to never
leave their customer which they are assisting. ShopKeep
gives our employees great flexibility when helping
customers because the ease of use and organization of the
application. This program can be installed onto an apple
device and it is ready for use within minutes. The purpose
for this specific POS is designed for speed and efficiency.
The stock keeper is a handy tool that comes with this
system, it helps alert when an item in the inventory is
running low so there should never be an issue with running
out of an item. As well as alerting when there is deficit in
inventory, there is a perfect line up feature that lets shop
owners know what is selling best as well as what isn’t, in
order to fine tune inventory in attempt at increasing sales.
An iPad mini (suggested), or any apple device gives
operators extra mobility during each transaction. Operators
are no longer limited to a check out table any longer, now
right after the customer is sure that they are interested in a
product, it can be theirs.
Along with all of these features the ShopKeep systems can
now easily capture each customer’s name and contact info
with every sale made which helps ShopKeep better grasp
customer purchase patterns.
Figure 21:
Price:
$49/month per
register
Discount if 4+
registers
Hardware needed:
• iPad Mini ($149.99)
• Card Reader (Square $29.99)
Optional:
• Cash tray
• Receipt printer
The cloud based accounting system that instantly lets our company know who the money is
owed to and has information on real time. This connects well with our current POS systems and
what we already have in place because it give less time on follow-ups and more time devoted to
our customers. Another feature in Kashoo is how they track their expenses. Kashoo allows to
snap a picture of a receipt and instantly log it to Kashoo meaning no more missed expenses and
an easier way to track money. The most efficient feature of Kashoo is the dashboard. It allows
for viewing everything such as income, accounts receivable/payable all in one area for quick
data checking. All of these features occur in real time to make the most of our customer service.
With SquareSpace domain, this gives Landed Gentry the opportunity to give customers
an outlook for styles that will fit their taste and excite them prior to arrival to our store.
SquareSpace allows for electronic purchasing but at this time we have decided to hold off
until further take off of our sales. The cost of SquareSpace varies from what kind of
subscription the company is looking for. For our purposes, the package Landed Gentry
would purchase will give us the ability to sell unlimited products as a business and have
our own domain (see Appendix for our current operating web domain). This doesn’t
require any hardware besides personal computers to update the inventory items.
Price:
$12.95/month
Price:
$26.00/month
Industry
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21. Landed Gentry
Est. 2 0 1 5
Marketing Strategy
4 P’s
Product: Landed Gentry will offer a variety of
products that include apparel, footwear, accessories,
and ties. Landed Gentry aims to provide unparalleled
service and quality luxury products to all men in search
of crafting their own style. All products will be at the
forefront of the fashion industry and will be properly
fitted to ensure the consumer the proper style.
Specialty fabrics such as silk and wool will be offered
year round as these are desired but relatively
underserved by competitors. Men’s designer clothing
will be the main focus of the company. It will offer a
wide array of different colors, materials, and styles of
items at the forefront of the industry. All clothing will
be fitted by a knowledgeable salesperson and tailored
to fit the individual needs of the consumer. The shop
will also offer an array of footwear that will offer many
different brands to compliment the available clothing
within the store. All of these goods will have
accessories available in order to personalize the unique
style of each customer.
Place: Consumers will view Landed Gentry as a high-
end luxury retailer. They will look to purchase the
latest fashion trends from knowledgeable employees.
Landed Gentry provides exceptional customer service
and specialty fabrics that competitors do not offer.
Building customer loyalty will provide the company
with a high rate of returning customers.
The products will be sold at a premium price, but due to
the luxury products and customer service consumers
will be willing to pay the increased price.
Price: The high quality products and customer service
offered within the store hold a significant value, which is
why consumers will pay a premium price. Boosted by
growing disposable income, more consumers have the
available funds to make these purchases. While
markups on clothing vary greatly depending on the
product, Landed Gentry will be competitive with other
luxury brands in terms of price. Competitors providing
similar products do not offer the same type of service
that is provided, which is why prices will be slightly
increased.
Promotion: Our integrated marketing strategy will
be tailored to our target market segment. It will
encompass a website which will start out showcasing
our products and delivering company information such
as location, hours of operation, and what products we
are currently selling. Once we have undergone our first
year of operation, we plan to add ecommerce as the
focus of our website. During the first year we will run
billboard advertisements and advertise in the Baltimore
Sun newspaper. Lastly, we will advertise via social
media, specifically on Facebook initially, and expanding
into Instagram, Twitter, and creating a YouTube
channel.
Website
14
We will have a website housed on Squarespace that will cost us $24/month. This will include store details such as
location, our contact information, and hours of operation, our company history, and a preview of our featured
products, sizing, and price points. We eventually intend to use this site for ecommerce, but will adopt this feature after
Year 1 of business due to the many variable costs that come with allowing online sales. A screenshot of our website is
visible in Appendix G.
Development of New Products and Services
Being first to the market with new products is an important role in the success of the company. The shop will
purchase new products from brand manufacturers as soon as they reach the market. Landed Gentry aims to develop
long-term relationships with customers in order to secure brand loyalty. By providing impeccable customer service,
potential buyers will recognize the excellent service they receive and return to the store for future purchases. The
store will also create a customer loyalty card program in order to build brand loyalty. After purchasing a product, a
customer can swipe their customer loyalty card and receive discounts depending on their purchases. Landed Gentry
will utilize a CRM system in order to track customers’ purchases and offer promotions targeted toward specific
individuals in order to tailor the deals to their buying habits. This will also allow the company to better track and
maintain the right amount of inventory.
Industry
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22. Landed Gentry
Est. 2 0 1 5
Social Media Marketing
By using targeted ads on Facebook, the company can help consumers who have recently been searching for luxury
products discover the company. With a budget of $20 per day, yearly boosted Facebook posts will cost a total of
$7300. Landed Gentry can choose what type of users to target and add relevant advertisements to their newsfeed
(Facebook 2015).
A key part of our integrated marketing plan will include a strong presence on social media platforms. As a small
business, it is important to utilize cost-effective marketing techniques. Social media is not only relatively low-cost,
but also one of the best new ways a business can build its brand awareness with the increasing use of mobile
devices. To take advantage of this, Landed Gentry plans to utilize several key forms of social media that will help
effectively promote our brand and guide people to our website (seen in Appendix I). We will begin with targeted
advertisements on Facebook prior to our grand opening, then implement our own Instagram, Twitter, and YouTube
accounts. Screenshots of all social media accounts, excluding YouTube, can be found in Appendix H. Figure 22 below
indicates the percentage of minutes spent on each major social media platform based on a study by comScore Inc.,
broken up by age brackets. This provides justification as to why the majority of our social media marketing budget
will be invested in targeted Facebook ads. Landed Gentry plans to hire an intern each year from one of the
surrounding twelve prestigious universities in the surrounding Baltimore area. This will allow us to cut costs, and
build a reputable name with the universities.
Facebook: Targeted Advertisements
15
Figure 22: (The Rise of Brands on Instagram, 2014)
Instagram Account
The purpose of this account is to harness the popularity of luxury apparel brands on Instagram. This can be used to
conduct a simple form ongoing of competitive benchmarking, through number of followers and likes in comparison
with similar brands. According to the study from comScore Inc., Instagram has seen powerful growth within the last
two years, and shows no signs of slowing in the near future.
YouTube Promotional Videos
We plan to create a YouTube Channel that will feature weekly webcasts on current fashion trends and how-to’s in
regards to dressing for certain events. This idea stems from a popular existing YouTube Channel, GQ. We will also
include short clips that showcase our current products and store layout. This can be seen in Appendix G.
Twitter Account
Our Twitter account with give us the ability to interact with our customers and receive instant feedback on customer
perceptions and issues that may arise. This will allow us to quickly problem-solve and maintain long-term customer
relationships. We will primarily use this to alert our customers on new products and deals.
Industry
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23. Landed Gentry
Est. 2 0 1 5
Strategies to Capture Local Market
Advertising within the local community is at the utmost importance for Landed Gentry. By utilizing a
variety of channels in the local area, the company aims to build a brand in connection with the city.
Billboards and Transportation Systems
Advertising within the local community is at the utmost importance for Landed Gentry. By utilizing a
variety of channels in the local area, the company aims to build a brand in connection with the city.
Baltimore has a popular public transportation system that is utilized by many young professionals. The
company will advertise on billboards and on the railway systems within the city. The company will
advertise on an available billboard located on I-83 travelling into the city. Nine months of advertising
on this billboard will cost the company $22,500. The billboard will be up for two months before the
grand opening and seven months after. The daily circulation of the billboard is listed at 73,412 people
per day. An advertisement regarding our grand opening is discussed on the following page, and a larger
version of it is in Appendix I.
Fliers:
Newspaper Advertisements
Landed Gentry will also advertise in the Baltimore Sun. An ad in the newspaper costs $48 per day,
meaning three months of advertising will cost the company $4320 dollars. The cost of advertising on
the newspapers’ website is included in this cost (Baltimore Sun 2015). Again, the advertisement on the
following page and Appendix I will also be used in the Baltimore Sun prior to our grand opening.
Initial Marketing Budget
Form of Advertising Year 1 Cost
Facebook Targeted Ads $7,300.00
Billboards $22,500.00
Newspaper: Baltimore Sun $4,320.00
Fliers $2,000.00
Total $36,120.00
Figure 23:
16
Running print advertisements before opening is also vital to the company’s success. Landed Gentry will
also spend $2000 dollars on creating fliers to distribute throughout the community. These
advertisements will be targeted to the many universities around Baltimore in order to appeal to the
young professionals who are fashion conscience or are in need of formal wear to enter the professional
world. A visual representation of this is featured on the following page as well as in Appendix I.
Industry
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24. Landed Gentry
Est. 2 0 1 5
Landed Gentry
Grand Opening Promotional Flyer
QR Code
Utilizing smartphone capabilities, the scanning of our QR code (by downloading any QR code reader-app, most of
which are free) will direct potential customers to our website. This simplifies the process of locating our website,
and appeals to tech-savvy customers.
Figure 24:
This flyer advertises our
grand-opening event,
aimed to generate
excitement within our
target market. We plan
to use this image on
transportation stations
in the surrounding area,
along with a print
version featured in the
Baltimore Sun. The
launch time will take
place two weeks prior to
the grand opening, in
which we will also have
the website up and
running as well. We will
also print roughly 200,
7.5 x 10” page flyers to
spread around the area
at local businesses and
at local residences. A
larger version of this is
visible in Appendix I.
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17
25. Landed Gentry
Est. 2 0 1 5
18
Financials
Landed Gentry’s capital budgeting analysis was conducted using the proposed capital structure of 70% equity and
30% debt. The typical required cost of capital for start-up companies is 25-35% due to their volatility. Subsequently,
the WACC used for this investment opportunity was calculated to be 25.99%. This number represents the discount
rate used in analyzing the profitability of Landed Gentry. The net present value, as a result, came out to $36,141.
Based on this projected outcome, the project is a go as the net present value is above zero. To better put these
numbers into perspective, the internal rate of return for this investment is 28.27%, which is higher than the
required WACC. According to both figure 25 and 26, ROE and ROA will experience conventional growth peaking for
both in year five. Both these ratios are important for investors who want to see that Landed Gentry is effectively
producing revenue from it’s assets and equity. Based on Landed Gentry’s IRR, NPV, and payback period it can be
determined that this project would be a successful investment.
(For further details on financial statements, cash flow projections, and amortization schedules refer to appendix E
pages 27-35)
Figure 26: Figure 27:
Figure 28:
Figure 25:
0.00
5.00
10.00
15.00
20.00
25.00
30.00
1 2 3 4 5
Percentage
Year
Projected 5 Year ROE & ROA for
Landed Gentry
ROE
ROA
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Projections
years$
26. Landed Gentry
Est. 2 0 1 5
Conclusion
19
Landed Gentry
Figure 29:
After conducting extensive research on the apparel and footwear industry, we chose to open a men’s formalwear
store located in Baltimore, Maryland. An opportunity gap for the demand of suits in Baltimore lead us to this
decision along with an increasing demand for men’s formal wear in the industry. The increasing population as well
as changing fashion trends will help Landed Gentry be a successful business.
The menswear industry is a market that is continues to grow at an increasing rate. More fashion oriented men in
combination with a larger disposable income in the Baltimore area allow for a market that will create an attractive
market. With over 25% of the workforce employed in the STEM fields as well as a 130% growth in population in the
downtown area will create an ideal market.
An integrated marketing plan that utilizes a multi-channel approach will help build a recognizable brand name in
the Baltimore area. By using traditional media in combination with digital media, the brand will reach consumers
located within our target market. Connecting with customers through social media platforms such as Twitter,
Instagram, and Facebook is also essential to spreading awareness.
We conducted two demand scenarios based off of demographics and comparable data in order to determine an
estimated amount of customers per day. These demand scenarios are based off of comparable data of other stores
operating of similar size and information based off of demographic information. If we were to open Landed Gentry
today, we determined the average customers per day to be approximately 13.47. This number was used to
determine financial estimates throughout the report. Based off of the demand scenarios we estimated the NPV to
be $36,141, the IRR to be 28.27%, and the WACC to be 25.99%.
Based off of our financial estimates and future cash flow estimates, we have determined this to be a feasible
business opportunity. Landed Gentry would see continued growth throughout the next five years along with
sustained success. We concluded that the NPV will be positive and will have an IRR that is greater than the WACC.
27. Landed Gentry
Est. 2 0 1 5
References
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31. Landed Gentry
Est. 2 0 1 5
Appendix A
• U.S. is politically stable
• FTC-enforced labeling regulation to be present on
clothing when end user obtains product. Label to
contain: Fiber Content, Country of Origin,
Manufacturer Identity, and Care Instructions
• Standard taxation by state
• Importing wholesale goods from other countries will
encompass differential in regulations such as
taxation, trade tariffs, and exchange rates
• Employees subject to US Fair and Equal Employment
Laws
• Per capita disposable income is projected to
grow: currently $38,042, to rise 2.5% to
$42,981 in 2020 (Per Capita Disposable
Income, IBIS World).
• National unemployment rate currently 5.1%,
dropped below 6% in 2014 for the first time
since 2008 recession. (US Bureau of Labor
Statistics)
• Growing US economy- GDP currently at $16.77
trillion (World Bank, 2015)
• World price of raw material- Harris Tweed
• U.S. Consumer Confidence Index has fallen to
97.6 as of October 2015, from 103.8 in January
2014- indicating consumer anticipations of the
economy not drastically improving in the near
future (WSJ, 2015)
• Millennial males (23 to 35 years old) are keen to
luxury fashion much more than their elders (non-
millennials), inspired by well-dressed male
celebrities and the entertainment industry
• Growth driven by the demographics: Henry (high
earner, not rich yet), and Yummy (young, urban
male)
• Trends in the above archetypes: the modern gent
(mixes suits with patterns and textures), the urban
dapper dude (wears expensive street wear such as
leather sweatpants), the upscale casual guy (goes
for high-quality, high-cost basics) and the
lumbersexual (a twist on the term "metrosexual"
referring to guys in plaid shirts with well-groomed
beards) (Li, 2015).
• Millennial male consumers prefer stand-alone,
male-only shops, as opposed to having to weed
through female sections to find their own (Li, 2015).
• Increasing prevalence of social media is
promoting the adoption of new trends and
brands
• New innovations in production equipment
combined with the sacristy of certain
materials such as leather put emphasis on
faux/substitute products
• Men are increasingly buying fashionable and
trendy clothing online making ecommerce a
necessity for success
• A research survey in 2013 indicated, of men
aged 18-34, 30% use shopping apps on their
phone and 24% typically shop for and buy
items on their smartphones. In the age of the
digital urban lifestyle, convenience wins
(Rankin, 2014).
Political Economic
Technological Social
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Appendix B
Threat of New Entry
Barriers to new entry are low, many small fashion retailers or boutiques only have one location and the main
cost of opening up a new retailer is primarily the initial leasing costs as well as remodeling expenses and the
initial stocking of apparel and accessories. New entrants are finding this segment of the fashion industry to be
increasingly desirable, as the economy rebounds from the financial crisis in 2008. In the U.S, decreasing
unemployment paired with rising per capita disposable income has led to improved market conditions in this
industry.
Competitive Outlook
The level of competition in this industry is high and is expected to increase as the economy continues to
recover. Consumers have a wide variety of options to select from when purchasing apparel, fashion
accessories and footwear which leads to high competition from other small retailers as well as from department
stores, chain clothing stores and online retailers. A major competitive factor is brand awareness which drives
consumers to purchase from brands that they are familiar with, benefitting established companies with a loyal
customer base.
Threat of Substitution
The increasing presence of online retailers in the fashion industry has caused the threat of substitution to rise.
Younger tech savvy consumers tend to be more likely to shop online than older generations, further driving the
rise in competition within the online clothing and accessory market. Online shoppers are easily able to compare
products and prices across the industry without having to stop by any brick and mortar locations, forcing
retailers to shrink profit margins to retain market share. Threat of substitution from online retailers is expected to
grow as a result of technological advances in mobile e-commerce platforms.
Buyer Power
Buyer power is low in the luxury men’s apparel segment of this industry. This is because the major luxury
clothing manufacturers often have their own retail stores to sell their branded products, reducing the bargaining
power of small independent fashion retailers. Buyer power remains moderate due to the low switching costs
involved in changing suppliers and the vast overseas opportunities to fill a retailers order for high quality
products.
Supplier Power
Supplier power is high in the men’s luxury fashion industry, as the most prominent brand name manufacturers
are able to leverage high consumer demand for their products to reduce the discounts they offer to wholesale
buyers. The supply of tweed fabric is regulated in Scotland, where the Harris Tweed Company has their fabric
protected by law from competition in the Harris Tweed Act of 1993. This law outlines the steps and
manufacturing processes that are required for the textile to be listed as a tweed fabric, increasing supplier
power in this segment.
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Appendix C
(Due to our downtown location, it is
important to note we offer parking)
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Appendix E
Income Statement
Financial Statements
Income Statement
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Appendix E Continued Financial Statements
Balance Sheet
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Appendix E Continued Financial Statements
Capital Budgeting Analysis
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Appendix E Continued Financial Statements
Five Year Quarterly Cash Flows
Financial Key/Assumptions
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Appendix E Continued Financial Statements
Landed Gentry Financial Ratios
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Appendix E Continued Financial Statements
Loan Amortization
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Appendix E Continued Financial Statements
Depreciation Breakdown
Sewing Machine,
Mannequins, Mirrors
Furnishing
iPads, initial bought
in start-up costs, the
second group bought
after year four.
Projected Cash Flows Per Month on a 5-Year Timeline
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Loan Breakdown
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Appendix E Continued Financial Statements
Common Size Income Statement
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Appendix F
Cost Structure
Salaries
Product Materials
Marketing
Key Partners
Harris Tweed
Other Suppliers:
Key Activities
Assisting
customers with
exceptional
customer service
Value Proposition
• Unparalleled service
compared to
competitors
• Crafting exceptional
style with the latest
fashion trends
• Luxury products not
available at
competitors’
locations
Customer
Relationships
High focus on
building customer
loyalty through
exceptional
customer service
Customer
Segment
Highly Educated
Men age 25-45
Salary 75,000+
Urban client base
(Flagship location
in a city)
Fashion oriented,
GQ style
Key Resources
Specialty fabrics
not available at
other stores
Channels
• Billboards
• Radio Ads
• Social Media:
Twitter,
Facebook,
Instagram
Revenue Streams
Product Sales
Alteration Services
Business Canvas Model- Landed Gentry
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Appendix G Website Homepage: www.LandedGentry.squarespace.com
YouTube
Channel:
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Appendix H
Facebook Targeted
Advertisement:
Social Media Accounts
Instagram Account:
Twitter
Account:
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Grand Opening Promotional Flyer:
Landed Gentry
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Appendix I
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Appendix K Target Customer Profile:
Samuel Winchester
Samuel is a 28 year old metrosexual male living in Mt Vernon, a neighborhood located in
the heart of Baltimore. Samuel is a couple of years into his first fulltime job and he’s
noticed his tweed jacket is looking a bit dingy. Samuel is in the market for a new sport
coat to not only wear to work, but to have the versatility to wear the same jacket around
the town when out with his peers.
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0.00
10,000.00
20,000.00
30,000.00
40,000.00
Sales Per Representative
Sales Rep 1
Sales Rep 2
Sales Rep 3
When managers open up the dashboard they are greeted with data to help them figure out
various strategies for the floorplan, how to tailor customer service, and understanding
sales trends. The dashboard also assists in analyzing day to day company performance.
When discussing the sales per representatives, the amount of revenue each representative
earns for the month is expressed and is taken into account with each customer that walks
through the door. Customers per day lets each representative come in for their shift with
an expectation of how many customers they will serve that day. The top 5 items lets
Landed Gentry managers know about what styles are selling more than others, in turn
managers are able to take that information and place each product in a strategically
located position throughout the store to encourage more sales and convenience to
customers.
-
5.00
10.00
15.00
20.00
25.00
1 2 3 4 5
Customers Per Day
-
1,000
2,000
3,000
4,000
5,000
1 2 3 4 5
Sales Per Day
Dashboard of KPI’s: Appendix K
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