Busi 710 final slidedeck


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Busi 710 final slidedeck

  1. 1. Advanced Undergarments for the Modern Man Powerscope, LLC. BUSI 710 / SUMMER 13 / PROF.WRIGHT / GROUP 4 MULLEN / BUTLER / ZHANG
  2. 2. Mission Statement: 1 Powerscope is a revolutionary Men's comfort undergarment line focused on improving the silhouette of male adopters through the use of compression, moisture wicking, unique garment design and comfort innovation fabrics for the high end retail male consumer. Powerscope will be known for product benefits that are new to the male consumer, developed from identifying his personal needs and unlike any commodity undergarment on the market today. Objectives: Establish Powerscope as premium apparel provider of innovative Men’s undergarments. To achieve this objective: Powerscope will monitor four key market observations: 1. Precisely define our target audience and working to define new target consumers. 2. Identify competitor offerings that serve the same market segments & differentiate our product selection. 3. Develop a tailored product selection for each prospective retail partner to directly support their consumer. 4. Expand business based on performance and feedback from retail partners, direct to consumer business, new product innovations and by effectively transferring consumer need to a Powerscope product benefit.
  3. 3. SWOT Analysis 2 Strengths: - Powerscope is specifically focusing on the newest technology in male active undergarment wear and explicitly marketing to the user, i.e. the male metrosexual. This niche underwear market is expected to exceed $70 billion by 2015, reports Global Industry Analysts (www.reportlinker.com) - Factors fueling the market for growth include rising levels of disposable income especially for gay men. “Gay men are better at managing their money than the average American, new research shows. A survey taken by money.cnn found that respondents not only reported significantly higher annual income--$61,500 compared with the national median of $50,054—but they also carried about $4000 less in debt than the average American and had $6,000 more in household savings.” - Fabric innovation and varied styles. “Night wear and fit wear faired the economic recession better than other market segments as they are more necessary than other segments”. (www.reportlinker.com). - Our Marketing objective is to expand throughout the U.S. but especially in the EU. “The EU is the leading region for these products, followed by the U.S. and Asia-Pacific. Plus size demand is increasing in Western markets, with general demand for seamless intimates.” In the EU underwear sales increased by 1% or 2.6 billion in 2010 (www.store.mintel.com). - Strong fashion trends and benefit factors such as dry wicking and advanced comfort will help in Powerscope’s business momentum leading to success. According to latest research from Mintel, “Men’s grooming is growing at a healthy pace.” The boom in men’s grooming comes from the fact that men are taking more of an interest in their personal appearance and have grown more comfortable expressing stylish trends and fashions” (www.mintel.com). - The trend that underwear is being worn as outerwear. (Global Industry Analyists) - Powerscope’s retail partners and free standing locations support product ideas and strategies demographically. - Powerscope’s product development initiatives include contracting manufacturing with local LA partners to create a vertical production capability centralized to California. Powerscope will then be able to produce garments with a “speed to market” strategy which enables the company to more quickly respond to market demand; inevitably further differentiating Powerscope’s products from competitor’s products.
  4. 4. SWOT Analysis 3 Weaknesses: - Intense direct brand competition in the marketplace with challenges such as the increasing trend of outsourcing production to less expensive countries. This is hard to tackle for any new company entering the marketplace. Being able to outsource decreases production costs and creates a cost-effective platform for delivering functional and business-enabling processes which are more easily supported with less cash flow spent on production. - Aging populations in progressive nations such as the U.S. are slowing market growth in this sector. (Growth potential lays more in developing countries due to increasing income levels, trends toward Western fashion and a larger young adult population with rising standards of living.(www.reportlinker.com). The aging population means, less disposable income, less interest in fashion trends, and less money spent on clothing items. - Reliance on high-end tier retailers to fund organic growth. Powerscope will rely on big corporate sponsorship to support their market offering which could either benefit Powerscope or it could hinder its brand reputation and strategic marketing position as it sits with Powerscope’s target on the gay male audience. Politically, Not everyone supports “gay wear.” “Old Navy has announced a new line of rainbow- themed gay pride t-shirts for men, women, and babies. A percentage of the US population stands to “BOYCOTT Old Navy, No Gay Pride for me!” - Marketing to foreign countries and introducing Powerscope’s brand image will be difficult as it brushes up some against main competitors such like Calvin Klein, which is known world wide by loyalty brand users. In addition, outlets carry more well-known brands and products that may take away from visibility and market share held by high end market players.
  5. 5. SWOT Analysis Opportunities: - Potential for targeted gay male to expand to the straight metrosexual age to expand from initial males 25-45 yrs. of age. Straight men as well as gay men are jumping on the vanity wagon and may even, at times, be in competition with one another to look their very best. This is good news for Powerscope. - Opportunity to expand worldwide due to increased disposable income abroad by targeting a younger generation. Expanding abroad while, outsourcing abroad could certainly be an added advantage to Powerscope’s strategic marketing plan keeping production costs low and distribution channel geographically close to the international market. - An opportunity to find a new market niche paired with the ever increasing visibility of the gay population and their specific needs. Marketing focused on gay marriage could attract consumer interest and serve the thought of looking good before the wedding by staying fit or getting fit; therefore exhibiting that fitness fashion statement on their “special” day. For Powerscope this could be a huge in- take i.e. the growing number of gay marriages around the world and in the U.S., “More than a dozen countries currently have national laws allowing gays and lesbians to marry, mostly in Europe and the Americas. (www.pewforum.org). - The opportunity to capitalize on a literally “new” market and to create an entire new brand related to gay men’s active underwear, which as never really happened in terms of publicity and brand loyalty. Powerscope would utilize LGBT marketing which is the act of marketing to (Lesbian,Gay,Bisexual or Transgender) persons with advertising, organizational sponsorships, media or any other form used to target this market. There are other companies out there who share a similar target customer, but have you heard of them? - Potential changes in body, form and temperature (not to mention global warming) that will increase the Powerscope product line offering due to necessary options within the line ultimately being essential, “Variety is possibility.” - New technology opportunities in body morphology data for evolving male consumer. Interest in fashion and technology are natural trends in the working lives and minds of our target consumer, combined together these to attributes will create not only an entirely new product line but, an entirely new outlook for Powerscope consumers. - Men's undergarment sales are forecasted to increase 13% for future growth due to current trends as mentioned above and the increase in male shopping behavior which was 52% 1995, and is now 75% in 2012. - Female lingerie market size forecasted $32 billion by 2016, new product opportunity. With increased popularity and the movement for lesbian women to be more fashionable, Powerscope may have another niche on the horizon. In addition, to their bad fashion sense, lesbian women also do a lot of cross-dressing therefore they maybe inspired to invest in Powerscope’s androgynous product line or a line targeting the lesbian female. Currently, we see more and more lesbian fashion lines springing up such as, “Tomboy Tailors” and Lauren Bedford Russell’s gender neutral clothing line (www.afterellen.com).”Today, at least 8 million adults in the U.S. identify themselves as gay, lesbian, or bisexual, according to a study by the Williams Institute. Combined with 700,000 or so transgender Americans, that means nearly 4% of the U.S. population is LGBT with an average daily spending amount of $89 per person.” 4
  6. 6. 5 2013 SOURCE :FRIGO BY REVOLUTIONWEAR Opportunities: SWOT Analysis
  7. 7. SWOT Analysis 6 Threats: - Strong competition, existing large players in market with hefty capital resources and business maturity. This maturity could take away Powerscope’s strategic strong hold. While introducing new technology and a vibrant clothing line that speaks to an unrecognized segment of the population, Powerscope will be burdened by the fact that companies steal other companies ideas and business models, such is the natural competitive nature of this industry, “In this time of technological innovation and rapid-fire manufacturing, it’s easier than ever for a rival to rip off an ideas. If someone sees your idea built, they will almost certainly be able to copy it and have it manufactured” (www.usatoday.com). With this thought in mind Powerscope must keep intellectual property a top priority. - Consumer sentiment related to the economic downturn and the possibility of it reoccurring. After the 2008 economic downturn household saving rates increased significantly and although many sectors such as the undergarment industry stay somewhat positive, consumer spending was down sharpely and significant research related to this topic shows that most consumers in times of difficultly stick to what they know and can rely- on, meaning they are less likely to risk trying a new product and even less likely to try a new brand. - The ability for Powerscope to be stay on top of “trendy.” UK brand retailer Asos Plc, the recently established Group Zara Australia Pty Ltd, local fast fashion retailer Cotton On Clothing Pty Ltd and women’s sportswear retailer Lorna Jane all achieved double-digits growth revenue within apparel in 2012. Such brands encapsulate the current consumer desire for fresh and affordable apparel offering suited to a range of clothing wear (www.euromonitor.com). Because staying trending and fresh is important Powerscope will have to seriously consider which steps to take in terms its investment into R&D and staying ahead of the curve. - Powerscope’s focus on the male gay active undergarment industry could be risky due to the fact that not all members of society are supportive the gay male culture although the future outlook is promising threats from conservatives and political religious or righteous individuals could pose problems to Powerscopes marketing efforts and development. These individuals often create bad publicity, send hate mail and often times stage protests in order to combat the liberation of anything “gay.” - No control over any retail environment product is placed in.  Because Powerscope is partnering with other large retail stores as host-beneficiaries, Powerscope will lose some of its initial control of product placement within the store. This decision-making process could hinder the sell of the Powerscope line. Careful attention must be paid to negotiated and coming up with these terms and conditions. An example of this type of situation is seen at Whole Foods where visual merchandisers placed they of the native products at an eye’s view and surrounded themselves so comfortably with supporting products on the bottom shelf to fill space. (Know who is on Powerscopes’ side) - Operational expenses will increase with business growth. As usual costs will increase as the business increases, especially when Powerscope decides to go abroad and to enter the direct to consumer storefront sector. Initial associated costs with these goals will be intimidating, as the market remains highly competitive and more and more clothing items become increasingly more accessible, especially particular items that are sold online. - Manufacturer quality could be compromised due to increased costs, taxes and other economic factors related to higher gas prices, worker compensation, and healthcare costs, just to name a few. In addition to operational manufacturing threats there - Changes in import rates, export rates in the economy are always concerns for any clothing company who is outsourcing its products to be made in other countries. Although the rates are relatively low right now, the economy is certainly unpredictable and new taxes, laws and political up-heavels are revealed everyday. Workers rights and compensation are always sensitive issues and topics and often times companies have to adjust to this climate. 
  8. 8. 7 Place: As mentioned above Powerscope’s products will be in retail stores, official Powerscope stores and sold online. High end & Luxury apparel retailers to service the rising men’s luxury product industry, with focus on international luxury growth in the future of Powerscope. Powerscopes products will be strategically located in geographical areas that adhere to gym and homosexual male culture. In the future, Powerscope will target additional areas of the rising LGBT culture, specifically gay female. For example some locations will include, Chelsea in New York, Castro in San Francisco, Soho in London, Canal Street in Manchester, DuPont Circle in Washington, D.C., Boystown in Chicago, Le Village in Montreal and Nollendorfplatz in Berlin and other albeit less or well know gay regions. Some famous homosexual gyms where Powerscope will be sold include: David Barton Gym in Manhattan, NY. Gymbox, Jubillee Hall Sports or gay hotels, saunas, and cruise ships. Powerscope will also have its own e-commerce space for consumers to purchase and connect with like-minded consumers on Powerscope products for sell and purchase. This website will be created to sell Powerscope’s sporting wear online by choosing from hundreds of professionally designed Powerscope products. This will include shopping cart process orders, tracking of inventory, and management of customers and allocation of sales reports, helpful apps, and partnerships with other gay affiliates. luxury retail LGBT geographical culture fitness locations ecommerce In the first quarter of 2013, luxury segment earnings rose 26% vs. 5% for the overall US retail industry. LGBT buying power is expected to reach $925 billion in 2013 Healthiest Cities for Men (Percentage of residents with a healthy body weight): San Francisco (44.8) Oakland (44.8) Honolulu (43.9) Albuquerque (43.3) Boston (43.2) Apparel and Accessories is one of five online product categories that grew by at least 19% year-over-year, according to comScore. market info market info market info market info
  9. 9. 8 Price: Industry Price Structure: Industry Apparel product analysis concludes that a price opportunity exists in men’s underwear competitive brand pricing in the current luxury retail offering. Goal: To effectively compete within the luxury underwear market by targeting the lower end of the current pricing cascade with greater product benefit offering than competitors specifically targeting a niche consumer with a growing amount of disposable cash. Powerscope, LLC.
  10. 10. 9 Product: Quality: Premium dry wicking advanced comfort compression fabric with double reinforced seams for durable wear. Features: Quadricep shaping increases wearer’s natural flexibility 3D contouring cup for support & to reduce moisture Natural contour “V” shape waistband to increase comfort in movement and aligns with lower front rise bottom apparel All over smooth flatlocked seams for maximum comfort and flexibility Powerscope Power Boxer Brief Grip Contoured hem to reduce short from riding up on wearer’s leg Breathable mesh inset
  11. 11. 10 Product: Powerscope Power Bikini Quality: Premium dry wicking advanced comfort compression fabric with double reinforced seams for durable wear. Features: Quadricep shaping increases wearer’s natural flexibility 3D contouring cup for support & to reduce moisture Natural contour “V” shape waistband to increase comfort in movement and aligns with lower front rise bottom apparel All over smooth flatlocked seams for maximum comfort and flexibility Breathable mesh inset
  12. 12. 11 Promotion: Powerscope will vibrate its place in the market by being both a national and international company that truly utilizes their global marketplace. Powerscope will be visible through physical retail stores in highly visual shopping areas, at gyms and through other promotional channels such as gay pride parades, community running events, concerts, and gear sporting activities. Goal : Powerscope will organize focus groups to identify consumer need and feedback around such promotions with product incentives for participants. Also, a new channel most recently uncovered in the promotion and distribution of “gay wear” is partnering with another, larger clothing line. “Old Navy isn’t the first retail chain to ride the gay pride rainbow wave, but it’s likely the largest” (www.lgbtqnation.com) In May 2011, Old Navy launched a line of gay pride clothing as part of the “It Gets Better” project. These partnerships are impressive and certainly a potential opportunity for Powerscope to attach itself to the “coming out of the closet” trend and large retail stores who would like to partner with specialty stores/wear to also increase their sales and increase Powerscope’s visibility. Goal : Reach critical mass of adopters utilizing mass merchants. Another promotion tool will be co-creating with customers to create value in Powerscope’s products by offering promotions that will interact with the customer. This process will include: • A social networking site – to connect with like-minded individuals • A blog – for a range of stories, ideas, and opinions • Video and photo share Goal : Create buzz for ecommerce direct to consumer sales. This promotional process will create more of a learning environment from these interactions and experiences that creates strategic capital. Powerscope can then learn directly from customers’ direct input on their preferences and Powerscope can build relationships and trust with the Powerscope community and experiment with new offerings, and creating a better brand.
  13. 13. 1 30% return for the 1st year. Increasing rate is 75% per year. 4-5 partnerships will be established with retailers. Increasing rate will up 40%, which will be 70% for 2016, and it will be stable at 40% later. New cash projection for establish retailers Investment for new storefronts in U.S. and U.K. This investment will boost the increase of return by 150% for the first year of new investment. New investment for Entering the women's market by launching a new product line. The increase of return become stable, from 10% to 15% per year. New swimwear business will on the track. The investment including not only the start up money for the development of swimwear but also the update of old manufacture equipment. And devices. Also, old products will become out of fashion, Powerscope need a new design and marketing plan for the new 15-year cycle. Cash Flow Projections: 15 year plan