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D G ACTIVE

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The Power of the Sheconomy -Over the next decade, women will control two thirds of consumer wealth in the United States and be the beneficiaries of the largest transference of wealth in our countrys history. -Claire Behar, Senior Partner and Director, New Business Development, Fleishman- Hillard New York Sociocultural Issues Tax Fraud -The designers are charged with alleged tax evasion to the tune of 416 million euros, or $562 million at current exchange. If prosecuted they will face $1.3 million in fines, and 3 years in Italian prison. Yoga is now the fastest- growing sport in America -Over 10 million people are practicing, 87% are women.

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In Tune With Our Inner Spirit They spent $5.7 billion on yoga products, equipment, and clothing in 2008. 14 Million have been recommend to yoga by a doctor or therapist. Single women are spending approximately $2,925 a year on their healthcare needs. They are marrying later in life. The median age is now the oldest since the U.S. Census started keeping track in the 1890s: almost 26 for women and almost 28 for men. They are waiting longer to have children. In 2008, the average age was 25.. Consumer Group Report

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Industry Trends Green Fashion is More than a Passing Trend! $2 billion of hazardous pesticides are used every year to grow cottonmore than any other agricultural crop. Like any good product design, clothing production can be accomplished in a better, smarter, and more socially and environmentally sustainable way. Organic clothing, produced without toxic pesticides and dipped in low-impact dyes, is gaining popularity across the globe. In 2006, retail sales of organic cotton products reached $1.1 billion globally85 percent higher than the year before, according to the Organic Exchange. -ecouterre

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Industry Trends Eco Fashion Vegan: Products that have been made without the use of leather or animal tissue products. Ethically Produced: Ethical fashion is fashion that has been produced with respect for people and the environment. Fair Trade Certified: An organized movement that promotes standards for international labor (such as reasonable work hours, no child labor, the right to unionize, a fair living wage), environmentalism, and social policy in areas related to production of goods. Organic: Natural fibers that have been grown without any pesticides and other toxic materials, preserving the health of humans and the environment. Recycled: Anything that has been made from already existing materials, fabrics, metals or fibers. -ecofashionworld

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Industry Trends Eco-Friendly Movement "Environmental Consumerism Among Women Business Owners, that reported the environmental friendliness of a product does have a moderate to major influence on the purchasing habits of 77% of women decision-makers in business.

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Target Market 035 Boom Town Singles 022 Young Influential affordable housing abundant entry-level jobs thriving singles scene fast-growing satellite cities Young, single and working- class pursue active lifestyles amid sprawling apartment complexes and bars some college educations and a lifestyle heavy on leisure and recreation the nation's yuppies young, middle-class singles and couples balance work and leisure pursuits live in apartment complexes or own homes near other high-school/ college alumni surrounded by ball fields, health clubs and casual- dining restaurants share a middle-class, suburban perspective good jobs and money in their jeans tend to have plenty of discretionary income to visit nightclubs and casual-dining restaurants, shop at midscale department stores.

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Demographic Profile Sex: Female Age: Mid/late 20s- Early/mid 40s Race: Varied Income: $75,000+ per individual Marital Status: Both Married and Single Home Ownership: Homeowners and renters Employment Status: Working

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Psychographic Profile Vals: Experiencers Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers; experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities. -http://www.strategicbusinessinsights.com/vals/ustypes/experiencers.shtml Interests: nightlife, social life/media, career advancement, current fashion/ technological trends Attidues: liberal, individualists,prolonged independence Opinions: concern for personal well-being and the environment, financial security

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Analyzing Competitors Y-3 Yohji Yamamoto Brand-conscious 30 to 45 year olds, high discretionary income Price points: Shoes $200.00-$500.00 Clothing $100.00-$700.00 Lulumon Athletica Middle to upper class, educated women attracted to yoga Price points: $9.00-$200.00 Lucas Hugh Upper class, educated women who want cutting edge luxury performance wear Price points: $100.00-$500.00 Stella McCartney Upper class, educated eco conscious women; with high discretionary income Price points Shoes: $100.00-$300.00 Clothing: $25.00-$500.00

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D G

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Core Benefits Basic Product Expected Product Augmented Product Potential Product Quality, social responsible, luxurious clothing. Womens eco-friendly active wear bottoms, tops, outerwear, and accessories. Diverse clothing for the time, place and occasion of yoga sport: Line pruning Line stretching into mens yoga clothing and accessories. Marriage of the Active life and technology. Merge with social media and socially responsible public events. Provide experiential services, including the establishment of a D&G gym. D G ACTIVE

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D G STORY BOARD

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Brand Imagery Association

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Mixing & Matching Brand Elements

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SWOT Analysis Strength High brand awareness Premium image Possibly increase profits Weakness Entering a new competitive market Market could already possibly be saturated May not be accepted by consumers Opportunities Can be the first HIGH-END brand with AFFORDABLE active wear Gain a new younger market Engage our current consumers to use D&G in all aspects of life Grow D&G as a lifestyle brand Threats Other established active-wear brands in our price range Could take away from the image of the brand Lower price point than our other products

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SWOT Analysis Continued Strength Extend our brand We can give our brand a stronger image amongst consumers. Consumers will begin to see our brand as a lifestyle and not only luxury. Add a new market We could grab the attention of a new younger market while we maintain our old consumer groups. Increase profits By adding a new group of consumers we will hopefully increase profits. Weakness Entering a new competitive market We will be competing against companies that specialize in active wear at our price point and will have to differentiate ourselves to consumers Market could already possibly be saturated We are not the first high end/ designer to offer active wear Image Conflict We are known for a certain style of clothing and to have a certain persona. Consumers may not be enthused by active wear being added to such a well known brand.

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SWOT Analysis continued Opportunities Can be the first HIGH-END brand with AFFORDABLE active wear Some designers have recently integrated active-wear into their collections but not at our projected price points Gain a new younger market Our biggest consumers are in the Pink Market or are older and we can now appeal to a younger crowd Engage our current consumers to use D&G in all aspects of life/ Grow D&G as a lifestyle brand D&G doesnt have to stop at the office or cocktail hour, you can now bring it into your everyday active life style. Threats Other established active-wear brands in our price range There are multiple other active wear competitors at our price range targeting the same consumer There is also an oversaturation of active wear lines on the market Slow economic recoil in U.S. GDP has risen only 2% in the 3 rd quarter of 2011. Young consumers are still pinching pennies

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Brand Positioning Map Sustainable Non-Sustainable Traditional Innovative

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Terra Earth Amore Love Armonia Harmony Pace Peace MatsRacerbacksYoga PantLight Jacket Resistance BandsV-NeckCapri Drawstring Hoody BagsTankBiker ShortWrap Skirt TowelsCrew Tee Full-Length TightsPull Over Yoga Ball Three Quarter SleeveSweatpantCover Up 4 Lines X 5 Product Assortments= Product Depth of 20 $25-$60$45-$80 $ 50-$150

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D G BAMBOO SORONA NATURAL: COTTON, WOOL, FLAX, SILK HEMP RECYCLED POLYESTER SOLAR SEQUINS

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City SmokeFleshInk Blot SugarCoffee StainPoison Apple COLOR PALETTE City Smoke Flesh Ink Blot Coffee Stain SugarPoison Apple

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Differentiation Tools Product Active wear for Yoga and Pilates made from ecological materials Yoga Accessories: yoga mats, towels, bags, yoga ball, resistance bands Simple design with neutral color Perfect FIT Channel New Consumers: Boomtown Singles and Young Influential Technology (Social Media) Global market: Well-being Boom Image Well-Being : Eco-friendly products and exercise Yoga and Pilates

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Brand Positioning: IMPORTANT Association with high-end brands are important for Boom Town Singles and Young Influentials Due to their active lifestyles, D&G ACTIVE will be on the forefront of the consumer minds for chic, high-quality, active wear Young Influentials live near ball fields and health centers. D&G ACTIVE will offer a variety of clothing and accessory options The Green Movement aides D&G ACTIVE in following industry trends. ECO FASHION is very much alive and thriving Yoga-centered lifestyle proves to increase its quality and span

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Brand Positioning: AFFORDABLE D&G ACTIVE will be the very first affordable high-end active wear line Boom Town Singles and Young Influentials are eager for more affordable high-end line extensions. Combines luxury with affordable components and creates a unified end-product for the target market. With price points of $25 - $150, D&G ACTIVE will not break the bank Discretionary income is not as high as GEN Y, so D&G ACTIVE will satisfy those finishing high school and college

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CBBE Model Performance Imagery Salience Performance: -Eco-Friendly clothing provides textiles with soft hands -Clothing wicks moisture and keeps consumer comfortable during workout -Clothing is maintained through easy washing process Imagery: -Category names provide Italian flare, authentic to the brand -Clothing contains muted sophisticated color palette -Items are chic, and representative of the D&G lifestyle Salience: -New logo symbolizes social responsibility, and will be easily recognizable -New advertising will create a warm and genuine brand identity -Technology and sponsorship will build a relationship with new and old consumers

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How are we increasing sales? Sales have already increased 20% from last year because of accessories. By 2013 we have set a projected sales increase of 15% U.S. specific. We will do this by e-mailing specials and adding stand alone stores and specials with major American gyms such as LA Fitness, Lifetime and Golds. Adding an app specially for our ActiveWear, and also partner with Living Social and Groupon, to sponsor events and offer deal packages. Affordable line because of new prices, more people will buy!

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Increasing Brand Knowledge Print Advertisements Fashion Magazines ELLE allure Health Magazines FitYoga Womens Health Shape D&G Active Wear Apps Social Media Blogs Facebook / Twitter Youtube Sponsorship/Partnership Yoga Events on Earth Day week Yoga class at gym LA fitness Golds Gym

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Brand Equity Establishing life long commitment by expanding to a younger demographic Enhancing our identity by providing a new logo, and social responsible clothing Brand awareness will increase due to the recognizable established logo and brand identity, in addition to the new earth-centered transition Application specific technology will provide a bridge between the consumer and their active wear products. Event sponsorship will provide a community oriented brand identity and build upon a deeper relationship with the consumer

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References http://www.ecofashionworld.com/ http://womeninbusiness.about.com/od/wibtrendsandstatistics/a/green-wib.htm http://www.ecouterre.com fashionsnoopsnewsletter.com/news/?p=6210 http://www.yogajournal.com/advertise/pdf/YJ_audience_08.pdf http://www.inc.com/ss/best-industries-for-starting-a-business#6 http://economix.blogs.nytimes.com/2011/03/07/the-single-womans-shopping- list/ http://www.usatoday.com/news/health/2008-11-09-delayed-marriage_N.htm http://www.babycenter.com/0_surprising-facts-about-birth-in-the-united- states_1372273.bc http://www.bea.gov/newsreleases/national/gdp/gdp_glance.htm http://www.the33tv.com/news/kdaf-eco-fashion-dead-or-alive- 20111129,0,3574591.story