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Missionstatement

Our mission is to embody luxury in the most opulent, irresistible way possible, making each and every shopping experience unforgettable for every style-savvy woman who walks through the door. Offering the epitome of luxury goods is not an option; we make it into a necessity. We believe in the upmost level of customer service, making sure every shopping excursion is an upbeat, unforgettable experience, in an effort to make lasting, positive relationships with each and every single one of our customers. When the world thinks of a destination for luxury accessories, they think of us.ACCESSORY TREND REPORT FALL 2009

LAIRD BORELLI, SENIOR FEATURESEDITOR, STYLE.COM

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COMPANYVALUESOur company thrives on a positive environment, focusing on the areas of providing unrivalled customer service, benefits and an optimistic environment to work within for our employees, and providing the world’s finest luxury goods to our consumer. We make it a necessity to continually work to our greatest potential, making ourselves an industry leader in luxury accessories. ACCESSORY TREND REPORT FALL 2009

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STYLETIPTake inspiration from Christophe Decarnin’s Fall 2009 collection and pick up one of Balmain’s new effortlessly sleek, exquisitely detailed bags for any rocker chic wardrobe

Inspired by a leopard-print Motif, the Leo ishandcrafted with Swarovski Strass crystals

Made with Italian leather,the Mat was handcraftedby Balmain handbag experts in France

The Punk bag was made with 1,200 individual studs and takes one day to make each piece

CUSTOMERPROFILE   GEOGRAPHICSEGMENTATION:

REGION: TORONTO, CANADACITY SIZE: 2.5 MILLIONURBAN/RURAL: PRIMARILY URBANCLIMATE: MODERATE

DEMOGRAPHICSEGMENTATION:AGE: 22-45SEX: FEMALEFAMILY LIFE CYCLE: PRIMARILY

INDEPENDENTLY, SINGLE WEALTHY WOMEN

INCOME: $100,000+EDUCATION: COLLEGE GRADUATEOCCUPATION: PROFESSIONALRELIGION: ALLETHNIC BACKGROUND: ALL

 PSYCHOGRAPHICS:

SOCIAL CLASS: UPPER CLASS/ACHIEVERSPERSONALITY: SUCCESSFUL,

FASHION-CONSCIOUSLIFESTYLE: LIFE OF LUXURY:

TRUST FUNDS, JETSETTING TO EUROPE FOR THE WEEKEND, LAVISH GALAS & SOCIETY EVENTS

DEGREE OF KNOWLEDGE: EXPERTBENEFITS SOUGHT: PRESTIGEATTITUDE: POSITIVE/NEUTRAL

 CONSUMERBEHAVIOR:

BENEFITS DESIRED: QUALITY LUXURY MERCHANDISE & OUTSTANDING CUSTOMER SERVICE

USAGE RATE: ONE VISIT PER 1-2 MONTHS BEHAVIORALSEGMENTATION:

BRAND LOYALTY: UNDIVIDED LOYALTYSTORE LOYALTY: DIVIDED/UNDIVIDED LOYALTYUSAGE RATE: MODERATEUSER STATUS: CURRENT USERPAYMENT METHOD: CREDIT CARD/PERSONAL CHECK/CASHUSAGE SITUATION: VACATION, WORK, SOCIAL EVENTS, HOME,

AND EXERCISE

STORE COMPETITION

Our company competes closely with Cusp, Neiman Marcus’ store

for a younger, hipper demographic, and Holt Renfrew,

the Canadian luxury retail powerhouse. Since both are

underneath a corporate rule, we will be able to provide a more

personal level of customer service, primarily since we will

have a smaller client base. While Cusp offers product for the

younger, trendier demographic, we will offer product for the mid-range, trendy demographic, and to a demographic who falls into a higher market level. While Holt

Renfrew caters to a wide variety of tastes, we believe our retail

location will be a destination for all luxury accessory merchandise

within the area due to our exceptional level of customer

service.

Storestrategy

Once opening our store, we hope to attract a large amount of traffic with publicity, mailers, magazine advertisements, etc., and generate enough sales within the first few months to get our boutique in a stable place. We hope to make enough profit within our first month of business to put us on track to be able to pay our vendors, our landlord, our taxes, etc. We will buy enough merchandise to fill the store and the backrooms, but hold off on larger amounts until we have established ourselves within the Toronto Fashion District as a reputable retailer. We will define ourselves with our first purchases from market as a trendy retailer with unusual designer merchandise, but also include the basics in order attract a wide variety of tastes. During the first week or two of business, we will also have our entire staff working every day we are open in order to get a feel for the store and for clients to get the chance to know every employee. We will also invite every new client we create that initial week of business to a private grand opening party at the close of that week, with champagnge, hor d’heurves, music, and our personal stylist and sales associates there to answer any inquiries about merchandise, the store, etc.

EXTERNAL SWOT ANAYLSIS

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swotANALYSISWhen thinking of who one of our potential direct competitors would be, the Henri Bendel accessory stores were the first thing to come to mind. Featuring not only luxury accessories from the world’s most covetable designers, but also pieces from their own private line, the Bendel accessory stores are the perfect competition, giving us the drive to push our luxury accessory store to its fullest and highest potential possible.EXTERNAL SWOT ANAYLSIS

COMPETITION: CuspOPPORTUNITY: Ability to appeal to a new demographicTHREAT: Cusp is a one stop shop: apparel & shoes; cut into Bendel’s main consumer demographic

ECONOMICS:OPPORTUNITY: Neiman Marcus suffered a recent $168.6 million net loss and is struggling to make ends meet.THREAT: Those who are able to purchase luxury merchandise are not likely affected to a great extent by the recession and will continue to purchase from stores who they are loyal to.

TECHNOLOGY:OPPORTUNITY: Cusp is virtually unadvertisedTHREAT: No separate website for Henri Bendel accessory stores

SOCIETY:OPPORTUNITY: Younger demographic, lower income level, not as exclusive; lower price-point merchandiseTHREAT: Affiliated with the Neiman Marcus Group, which is well known as one of the top luxury retailers in the world; consumers are the upper crust of American society

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LUXURIOUSACCESSORIES

STYLETIPTake a hint from Oscar de la Renta and wear a chunky statement piece to glam up any outfit.

INTERNAL SWOT ANAYLSIS

CUSTOMERDEMOGRAPHICS:

Strength: Caters to a wide variety of tastesWeakness: Merchandise offered solely at higher price points (ex. Bridge, Designer markets); only cater to women

PSYCHOGRAPHICS:Strength: Extremely exclusive clientele; consumers are upper class of AmericaWeakness: Excluding other potentially profitable demographics

GEOGRAPHICS:Strength: Located in some of the most influential fashion capitals of the world and in areas where their primary demographic is dominateWeakness: Exclusive to only a very few select states and areas of the United States

BEHAVIORAL BUYING TRAITS:Strength: Consistent in the purchasing of only some of the world’s most coveted merchandise; explore and experiment with new designersWeakness: Only purchases merchandise at the Bridge/Designer level markets and ignores the menswear market entirely

PRODUCT MIXSTRENGTH: Offers a variety of designers and their products, including candles, handbags, jewelry, small leather goods, etc. WEAKNESS: Don’t offer apparel, which is the largest and most profitable market in retail

PRICING STRATEGIESSTRENGTH: Retains a sense of exclusivity by keeping prices at Bridge/Designer levels; want to remain a retailer of the eliteWEAKNESS: Most items offered in the store are only accessible by upper class, wealthy fashionistas who are able to purchase designer market merchandise; upper class is an extremely small portion of the American population

PromotionSTRENGTH: Remains elite and exclusive with minimal/no advertisingWEAKNESS: Very little advertising, including a weekly book/e-mail updates sent out to members only, and a website

DistributionSTRENGTH: Some merchandise offered online, mainly private Henri Bendel brandWEAKNESS: Complaints on shipping and accuracy of orders from Bendel’s is rather common; unreliable

Employees/Management StructureSTRENGTH: Few employees who work under store manager; allows more personal relationships with customers and between employeesWEAKNESS: Estimated yearly pay is under $30,000/benefits unknown

STYLETIPEmbrace classic uptown style with Lanvin’s wrinkled lambskin shoulder bag

swotANALYSIS

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OurVISION

To be a chic shopping environment, a girl’s playground, where customers can come to find the latest in accessories, anywhere from gorgeous prominent designer leather handbags to the most covetable home goods. We are the epitome of luxury accessories, a retail icon, wanting the women who walk through our front doors to lose themselves in each and every single irresistible piece, lying perfectly on each polished shelf. We want women to feel as gorgeous as any one of the sumptuous accessories they purchase, and to make us into their premiere shopping destination for everything fabulous. We ARE luxury. ACCESSORY TREND REPORT FALL 2009

STORELOCATIONAfter extensively researching the up and coming areas for luxury retail around the world, we feel we have chosen the prime location: Toronto, Canada, in their fashion district, off of Bloor Street. We have found that this area houses some of the industry’s most covetable brands, including Prada, Chanel, and the Canadian luxury retailer powerhouse, Holt Renfrew. After researching locations suitable for the luxury retailer we’ve dreamed up, we have decided on the crossroads of Queen Street West and Portland.M5V 2B7 QUEENS STREET WESTDIMENSIONSThe location we have found is 2000 sq. ft. on the main level, with the possibility of expanding into a second floor, or a basement area.

DIMENSIONSSEPARATE SPACESA majority of the floor space will be used for selling space, with approximately 400 sq. ft. of the available space used for storage, employee restrooms, and management offices

Shape OF STOREThe location we have chosen is in a simple, rectangular shape, with a square protrusion from the back of the store for storage, etc.

Location of entrances/exitsThe customer & employee entrance/exit resides in the front of the store. An additional entrance/exit resides within the back storage room, for receiving shipments only.

Location of WINDOWSThe only windows within the space are the two front display windows, on either side of the main entrance.

MONTHLY RENTThe rent for the location is $4,000/month, meaning that we will be paying $2.00 per square foot

TERMS OF LEASEWe have decided for a short-term, one-year lease at the opening of the store, in order to decide if the location is prime for a luxury accessories boutique, we are doing the business we have anticipated, etc.

COMMON AREA FEESAll maintenance and utility fees are included within our rental agreement. Any marketing or promotional activity that we wish to involve the store in will be paid through the store’s funds.

StoreDécor/visuals

StoreDécor/visuals

FLOOR PLANWe have developed our store plan to have all brown objects to be shelving and tables, white to be lamps, maroon to be the cash register, yellow as floor rugs, and green as furniture. The tables in front of the front entrance are meant as a point of interest, drawing customers into our latest merchandise.MAIN TRAFFIC FLOWEnter through the front door, hit

the point of interest, then proceed towards the right side of the store where a majority of the merchandise has been strategically placed.

store

storeatmosphereWe want our store to create a positive atmosphere that stimulates

all five senses, in order to create a total shopping experience. Upbeat, tasteful music will be played in the background, in order to put those that enter the store in a positive shopping mindset. Spotlights on merchandise and burning essential oils will be used to trigger feeling within the customer. Taste will be satisfied by

beverages and hor d’ourves offered when the customer enters the store. Visual merchandising, décor, and store layout will offer an image that is pleasing to the eye, while a sense of touch will be

satisfied through the merchandise and a comfortable seating area.

monthlySALESPLAN

Our sales plan gives a detailed plan on our projected total sales for each month over the course of August-January. We expect sales to decline after August, through the months of September and October in virtually every item, picking back up again in time for Holiday in November. Our largest sales will occur during the month of December, and then gradually decline during the month of January.AUGUST-JANUARY TOTAL SALES

$360,000

STYLETIPGet tough this fall withPhilip Lim’s new studded leather gloves

3.1PHILIP LIM

monthlySALESPLAN

Our sales plan gives a detailed plan on our projected total sales for each month over the course of February-July.. We expect sales to decline after January, through the month of April in virtually every item, picking back up again in May.. Our largest sales will occur during the month of May, and then gradually decline during the months of June and JulyFEBRUARY-JULY TOTAL SALES$360,000

STYLETIPGet tough this fall withPhilip Lim’s new studded leather gloves

3.1PHILIP LIM

BYCATEGORYsales plan

Our largest category of sales is planned in luxury handbags, at an estimated 60% of our total yearly sales, or $360,000, and will be our claim as a destination as a retailer. Luggage, wallets, bangle bracelets, and rings are all estimated to be 5% of total annual sales, being high-ticket items for every season. Rings and bangle bracelets will be another category classified as ‘destination merchandise’. The remaining merchandise, earrings, necklaces, clutches, scarves, sunglasses, novelty/seasonal, and pet products, all fall beneath 5% of our profit margin.

ANNUAL TOTAL SALES$600,000

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STYLETIPUpdate any signature style with Lanvin’s Happy Sac Partage Leather Bag

what we love this season

Handbags60% or $360,000 of Total Yearly Sales

Handbags will be our highest-ticketproduct; this department will be the claim to our destination.

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WALLETS 5% or $30,000 of Total Yearly Sales

Wallets will be carried year-round as a complement to our clients’ must-have designer bag

CLUTCHES3% or $18,000 of Total Yearly Sales

Clutches will be more readilyavailable during certain

seasons

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RINGS 5% or $30,000 of Total Yearly Sales

Rings will be our second largest jewelry inventory and will be a partof our destination category

1% or $6,000 of Total Yearly SalesScarves and gloves will be availableduring certain seasons, and will bepresent in the store at regular priceonly when the current seasonsupports it

5% or $30,000 of Total Yearly SalesLuggage will sell throughoutany season, and will be a high-ticket item

5% or $30,000 of Total Yearly SalesWe will carry the largest jewelryinventory in bangles; this willalso be one of our destination categories

LUGGAGE

GLOVES/SCARVES

Bracelets

4% or $24,000 of Total Yearly SalesWe will only carry necklacesas the current trends supportthem

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Novelty/seasonal 2% or $12,000 of Total Yearly Sales

This category will include holidaymerchandise, look books, candles, andany other item that we may carry for a trial period prior to addingthis category to our collection

4% or $24,000 of Total Yearly SalesSunglasses will be available year-round, but will peak during certainappropriate seasons

2% or $12,000 of Total Yearly SalesPet products will be soldyear-round and become a loyaltyproduct to our clients

PET

SUNGLASSES 4% or $24,000 of Total Yearly SalesEarrings will be sold as complements to our exclusivebangle collection

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styleWe believe a combination of directing/coaching management is the best for our retail setting. Directing combines the managerial aspects of setting goals, identifying problems, coming up with solutions, and giving specific directions to employees, while coaching combines the managerial aspects of developing plans to solve problems, consulting with employees for feedback/opinions, praising employees, and evaluating the work of employees. While we want to maintain full control over our business setting, we find it extremely important to maintain positive relationships with our employees in order to create a positive, thriving company environment.LEADERSHIP STYLE

In order to coincide with our management strategy, we have chosen the ‘Paternalistic’ and ‘Democratic’ leadership styles. Given that the paternalistic style is dictatorial, making decisions at the best interests of employees and ensuring their social and leisure needs are met, it is the best style to coincide with the directing management style. However, we also found the democratic side of leadership appealing and found it to be a good match for the coaching style of management: encouraging employees to take part in decision making using delegation, using two-way communication with senior and junior employees, and running the entire business on a basis of majority decisions. We find this strategy to be best in order to allow employees to thrive in our company environment, while still passing the majority of decisions through the owners. It is the best way for us to maintain a strong control over our business, and create a positive environment for our customers.

management/leadership

lossprevention

Being a retailer of a small size and with limited, high-ticket merchandise, we cannot afford for shoplifting to occur at any cost. In order to prevent employee theft, every new potential employee will undergo pre-hiring screenings, background investigations, new employee orientation, and employee conduct policies. In doing so, employees will be instructed of our no-tolerance policy for shoplifting, and interviewers will be able to identify potential candidates who are at a high-risk for shoplifting.

An average of 3-4 employees will be working in the store every day, and will be trained in employee orientation on how to identify the suspicious signals of shoplifting, how shoplifters work, etc. Cameras will be installed throughout the store: two in the front, watching the cash register and the front door, five placed at strategic points throughout the store on key areas of merchandise, and one in the back storage room, fixated on the back entrance. Employees will only be allowed to enter and exit through the front entrance; only the owners are allowed to receive shipments at the back door.

A security system will be installed within the store and will be controlled by a password that is set at the end of each day, to avoid break-in. Two security system panels with buttons that call the police, fire department, and EMT to the store on contact will be located behind the cash register and in the back storage room.

human resources In order to focus more time on business tactics, buying strategies, and selling, we have decided to hire a PEO (Professional Employer Organization) to deal with the responsibilities of human resources. In such, they will cover the paychecks of employees, full benefits and health insurance for full-time employees, tax withholdings, retirement programs, unemployment insurance, and workers’ compensation. Though most PEOs also deal with the handling of personal issues, we have decided that it is far more important for the owners of the business to deal with those issues themselves whether it be among each other, or with employees. We want to create a close-knit environment where we can effectively deal with the issues within our business. Employees will be required to wear all black, preferably black business suits with black flats or heels, and minimal jewelry. Sales associates are required to treat all customers in a fair manner, with no discrimination against any client. Each employee is required to help clients to their best ability, and if unable to provide help, must find another employee to provide service to the customer.

MARC JACOBS

OWNERS

PEO

SALES ASSOCIATES

organizationalstructure

COMPANY ETHICS

STYLETIPEmbellish clean tailoring with Oscar de la Renta’s chunky gold plated metal chain necklace with delicate interwoven ribbon and silver-tone chain.

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sales associate requirementsOverview: 

Located in the center of the Fashion District of Toronto, our luxury accessory boutique offers a variety of exclusive designer merchandise for the trendy, fashion-forward woman in a positive setting. Exceptional customer service from our sales associates and a personal stylist will find the perfect accessory for any outfit, and for any occasion.

Responsibilities: •Greet customers and understand exactly what each customer wants or needs•Maintain knowledge of current sales and promotions, and return/exchange policies•Open and close cash registers, count money, balancing the cash drawer, etc.•Compute sales prices, total purchases, and receive cash, credit payment, or check from the customer•Maintain records related to sales•Recognize the threats of potential theft and security risk•Recommend and help locate merchandise based on the customers wants and needs•Answer customers inquiries regarding merchandise and the store•Aid in ticketing and merchandising of product; help design interior and window displays•Complete sales transactions through Point of Sale•Clean shelves, counters, tables, floors, bathroom, etc.•Exchange merchandise and accept returns•Package purchases and wrap gifts•Participate in inventory count held every 6 months•Prepare new merchandise for the sales floor•Requirements

oAbility to stand and move around the store for up to 5 hours at a timeoAbility to compute basic mathoAbility to lift moderately heavy boxes, display tables, etc.

Weeklyschedule

We have decided to hire three additional employees, besides ourselves, and have them work four days, 32 hours a week each, while we will work a total of 5 days, 37 hours a week. Since it is our own business, we believe in the importance of getting to know our customer and develop personal relationships with them. We want to be able to see first hand what our customers are buying, to be able to in turn, make better buying decisions at market.WEEKLY SCHEDULE

STYLETIPUpdate your wardrobe with Chloe’s black stamped-leather Hedda tote. With Rive Gauche attitude, it’s a perfect standout accessory.

WEEK OF Prepared By Emily Bertino, Melissa O’Connell, Jacqui PetrusevskiDecember 14-20 14-Dec 15-Dec 16-Dec 17-Dec 18-Dec 19-Dec 20-Dec  

NAME MON TUES WED THURS FRI SAT SUN TOTALEmily 93-53 - 93-53 - 93-53 93-53 113-43 37Jacqui - 93-53 - 93-53 93-53 93-53 113-43 37Melissa 93-53 93-53 93-53 - - 93-53 113-43 37

Employee 1 93-53 93-53 - 93-53 - 93-53 - 32Employee 2 - 93-53 93-53 - 93-53 93-53 - 32Employee 3 - - - 93-53 93-53 93-53 93-53 32

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Levels•Customer service is of extreme importance to any business that hopes to succeed in the fashion industry. Being a small boutique, it is important for us to distinguish ourselves from the major department store in Canada, Holt Renfrew, offering above and beyond what mass retailers can offer.

•We will only accept Visa, MasterCard, and American Express credit cards, given that Visa and MasterCard charge 0.05 percent for each transaction, and American Express charges 0.15 percent for each transaction. Personal checks and cash will also be accepted.

•Upon entering our luxury accessories boutique, customers will be greeted and offered a beverage: lemon water, sparkling water, champagne, or wine. Children will be directed to an area filled with toys and coloring books to occupy them while their guardians look around the store. The seating area near the back of the store will offer a variety of magazines, flat screen TV, and a comfortable place for those to sit who are accompanying the shopper. A sales associate will then individually work with each customer, offering fashion advice and showing the customer new merchandise.

•New merchandise will be limited to an order of three or four individual pieces, in order to retain a level of exclusivity and assure that every shopper that walks out the door with a purchase will not see the item anywhere else. For those who spend at least $400 on their visit to our luxury accessories boutique, the associate who has assisted them will be required to write a handwritten thank-you note in order to let the customer know how much their business is appreciated. For those who spend over $1,500, a small bouquet of flowers with a thank-you note will be sent from a designated florist. By writing handwritten notes, it is our aim to build customer loyalty and create personal relationships with our customers.

•We will also offer an in-house accessory stylist that can work with customers both inside and outside of the store, helping them pick accessories for events, or everyday outfits. Customers in the store will receive complimentary stylist assistance, while assistance extended outside of the store will be charged a small fee. Consultations outside of the store will include streamlining of their closet to eliminate old accessory trends and suggest needed pieces, along with organization of their closet, and taking Polaroid pictures of outfits with certain accessories for the client, creating a ‘look book’. To bring attention to this service, we will have a sample look book on the round table towards the right of the store.

service

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stylistService pricing

•In-store stylist will help customers while shopping: complimentary service; stylist paid same wage as sales associates while in-store•In-home styling consultations: $120 for a two-hour consultation, $50 per hour for all subsequent hours. Consultation includes a look book consisting of accessories with various outfits; closet consultation, and sorting through existing accessories and organizing the customer’s closet

SALES ASSOCIATESThe following are employee sales goals for November 29, 2009 through January 2, 2010. We are estimating that the owners, Emily Bertino, Melissa O’Connell, and Jacqui Petrusevski, will be accountable for 2/3 of the profit. Our three employees will be responsible for the remaining 1/3 of the profit. We original goal to make $114,162.58 over this time period, but we have estimated that we will total out to $115,500 over the holidays.

Luxury Accssories Boutique GOALS FOR ASSOCIATES (IN THOUSANDS)

November 29, 2009 - January 2, 2010

Associate Goal Week 1

Actual Week

1Goal

Week 2

Actual Week

2

Goal Week

3Actual Week 3

Goal Week

4

Actual Week

4Goal

Week 5

Actual Week

5Goal Total

Actual Total

 

Emily 5 4 5 5 5 7 5 5 5 4 25 25 

Jacqui 5 5 5 6 5 5 5 4 5 5 25 25 

Melissa 5 6 5 5 5 4 5 5 5 5 25 25 

Employee 1 2.5 3 2.5 2.5 2.5 3 2.5 2 2.5 2 2.512.5

 

Employee 2 2.5 2 2.5 3 2.5 3 2.5 3 2.5 2 2.5 13 

Employee 3 2.5 2.5 2.5 4 2.5 4 2.5 2.5 2.5 2 2.5 15 

TOTALS BY WEEK

22.5

22.5

22.5

25.5

22.5 26

22.5

21.5

22.5 20

82.5

115.5

 

                                                  

STORE GOAL 114,162.58

 

ESTIMATED PROFIT$115,500

goals

ALEXANDER MCQUEEN

STYLETIPCarry this hardcore hardware to amp up your rocker-chic look day or night

programsselling

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Employees will be paid on a salary with bonus basis. Each employee will be paid $12 an hour, and may earn rewards for certain acts, listed in the table below:

competitiveshopping

Employees will be sent out on a bi-monthly basis to

competitive shop the surrounding area and at

other main competitors in the market for luxury retail (primarily Holt Renfrew).

One employee will leave the store for a few hours during the selling day to do such,

evaluating the types of merchandise and trends that similar retailers are

currently offering, in order to allow us to compete at a

more effective level.

And promotionEvents

We have implemented a number of events into our business plan to promote our business among the fashion-conscious of Toronto. •Champagne, Strawberries, and Style – A private, after-hours party for girlfriends with hor d’oeuvres, champagne, and fashion advice from our store’s personal stylists. Minimum of four individuals must be invited. $100 initial price, with $20 for each additional hour.•Multi-Store Fashion Show – A show with local, non-competing apparel boutiques, put on at the change of each fashion season. Top clients from each boutique will be invited to the show and cocktail after-party. Gift bags with coupons and merchandise from each store will be included for each guest.•Fundraiser Party – Each May, we will host a fundraiser party with cocktails and hor d’oeuvres for a local Toronto fashion student we believe has potential. Student will showcase their work at party, and will be available for sale if the student chooses. Clients must purchase a $15 ticket to attend. 30% of profits sold that night will go to the student.•Personal Stylist Assistance – One or more clients will come in for a private party with our personal stylist. Cocktails included, the stylist will provide assistance with filling in the clients wardrobe with the latest in accessories. Available either in store, or at the client’s home, the client will be charged an initial fee of $120, with a charge of $50 for all subsequent hours.

 

Markup/MarkdownStrategies

Overall store markup will be 55 percent, while our markdowns at end of season or sales will start at 20 percent off, and move on in increments of 15 percent. The markdown schedule will be as follows: 20%, 35%, 50%, 65%, 75% off. All store promotions will feature merchandise that is 20 percent off, as well as being the start of the markdowns for any given product. 65 and 75 percent markdowns will be saved for end-of-season clearances. Remaining items that are not sold at 75% off will then be sold to a liquidator.ACCESSORY TREND REPORT

STYLETIPSpice up your wardrobe with Mulberry’s gorgeous coral crocodile print patent leather Bayswater bag.

Advertisingplan

Being a small store overshadowed by the Canadian retail powerhouse, Holt Renfrew, advertising is of great importance to our business. We have designed a website that houses photos of our newest merchandise, store information, a list of designers we carry, and sales information. We have determined that the website will cost us approximately $20 a month to maintain.We have found two reputable fashion publications that are circulated throughout the Toronto area: FASHION Magazine, and the Toronto Fashion Incubator. We have estimated that a small advertisement in each will be approximately $700 for FASHION Magazine, and $800 for the Toronto Fashion Incubator. We want to have advertisements in these magazines around key times, primarily in September, December, March, and June. We also will send out mailers to clients during major sales periods, primarily within the months of June and December. We have estimated that advertising costs will total around $7,000 per year.

ESTIMATED ANNUAL COST$7,000

monthlyMarketing plan

YEAR 1: SEPTEMBER 2010 to AUGUST 2011

marketingideas

In order to create and run the most successful store possible, we will implement a variety of tactics, including a Grand Opening cocktail party, fundraiser parties for up and coming student designers, fashion shows combined with other local apparel boutiques, flyers for special events, sales, etc. TABLE OF IDEAS

Event MethodMulti-store fashion show Work with other noncompeting stores in the Toronto Fashion District

to put on a fashion show in our location. Send out flyers to clienteleto attract customers (cooperative advertising). Purpose is to attractwomen to come view next season's merchandise.

Shopping Parties Advertise for customers to be able to invite a certain number of friends to come and shop after-hours in the store with cocktails andhor d'ouerves.

Stylist Parties Advertise for clientele to come in and shop, with help from ourown stylist to help customers pick out accessories to add to theirwardrobe. Cocktails and hor d'ouerves included

Fundraiser Party Support local design students with a fundraiser shopping party,where clientele are invited to come in and shop, with 30% of that day's profits going towards a particular student we have chosen

that we feel has great potential. Some of the student designer's work will be featured in the store on this day for display/purchase, depending on the student's preference.

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marketingtactics

In order to create and run the most successful store possible, we will implement a variety of tactics, including a Grand Opening cocktail party, fundraiser parties for up and coming student designers, fashion shows combined with other local apparel boutiques, flyers for special events, sales, etc. MARKETING CALENDAR

PROMOTIONAL EVENT PREOPENING MONTH(S) PLANNED TOTAL COSTS

Creation of Web site $400 August $400 Direct-mail postcards $900 August $900

Ad in Toronto Fash. Incub. $800 September $800 Ad in FASHION Mag. $700 September $700 Grand-Opening Party $800 September $800

Flyers for opening party $500 August $400 TOTAL OPENING COST $4,000

Ad in Toronto Fash. Incub. Sept., Dec., March, June $4,000

Ad in FASHION Mag. Sept., Dec., March, June $3,500 Direct-mail postcards Aug., Nov., Feb., May $3,600

Update of website Monthly $240 Fundraiser for fash.

Students May $400 Fashion shows March, September $2,000

Sales flyers Feb., June, August $1,200 Stylist parties Anytime $300

Shopping parties Anytime $500 TOTAL ANNUAL EXP. $15,740

STYLETIPDeliver a luxe evening look with Judith Leiber’s glistening hand-painted and silver and gold crystal-paved package clutch.

PUBLICrelations

In order to gain a large amount of publicity in the Toronto community, we have decided to write a series of press releases to send out to all the major media sources in the area, including various websites/blogs, and adding ourselves to the Yellow Pages. We also hope to partner with nearby noncompeting stores to put on fashion shows, with our accessories featured in the show. We also hope to create gift bags to put together at these shows, with coupons or product featured in them. By partnering with local apparel boutiques, we hope to create “bounce-back business”, where we will send customers to their stores for apparel, and they will send theirs to us for accessories.

BY M

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E BI

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PR TACTICS

pressrelease

For release on: Contact:September 1st Emily Bertino

  Crème is a new luxury accessories boutique opening in the Toronto Fashion District on M5V 2B7 Queens Street West. Featuring luxury handbags, wallets, jewelry, luggage, sunglasses, pet and home goods from some of the most reputable designers in the industry such as 3.1 Philip Lim, Anya Hindmarch, Marc Jacobs, Miu Miu, and more, Crème offers the women of Toronto a truly unforgettable shopping experience. To help us celebrate our Grand Opening, we will host a cocktail party on Friday, September 17th. All new customers and friends are invited, and can shop the store while enjoying cocktails and hor d’oeuvres.  This is an exciting event for fashionistas and shopaholics alike, giving them a wonderful opportunity to shop from our exclusive array of fabulous merchandise. For more information, please visit our website at www.creme.com, or call us at 220-555-5555.    Note: Color photography of select products enclosed.