bnkr pop-up shop

JACQUELINE MILLERARIEL CHANG

LIZZY JOHNSONGAGE DAUGHDRILL

FASM 410 - WInter 2015 - Prof. Alessandro Cannata

TABLE OF CONTENTS

1 Executive Summary 4 History 5 The Labels 6 Company Profile7 Corporate Structure 8 Business Model9 Flagship Store 10 Company Growth 11 SWOT Analysis 12 Brand Identity Matrix13 Current Postion 14 Distribution 16 Perceptual Rational 17 Perceptual Map18 Communication & Promotion 18 Strategic Process Outline 19 PESTEL Analysis

TABLE OF CONTENTS

25 Size of Market 26 Indirect Competition 27 Direct Competitors 31 Customer Profiles 34 Tourism 35 Psychographics 36 Behavioral Information 37 Store Location Justification 41 Floor Plan 42 Design of Space 43 Product Assortment 44 Promotion Plan 45 Financial Report 59 Appendix

Through their versatile range of clothing and accessories, suiting all styles with a fresh attitude

and clean aesthetic, Australian fashion brand BNKR has become the online shopping mecca

for the best of Australian fashion. With their one and only flagship store in hometown Adelaide, Australia and plans for their first international

flagship in the U.S., BNKR is powerfully making their way from online retail giant to a global fashion brand. But before they begin their

international expansion, a pop-up shop in Los Angeles, California is in order to test the market and analyze if this will be a successful business

venture.

EXECUTIVE SUMMARY

1

2Carrying popular labels such as Finders Keepers and Cameo, BNKR already has a steady following; including being worn by celebrities and having a

strong social media presence. These qualities hold some value in the success of the expansion, but

BNKRs small brand awareness in the U.S. and limited advertisements do pose challenges in this process. The pop-up shops opportunities outweigh both the

strengths and weaknesses by being able to truly expand into the United States and becoming known as a retailer of the best Australian fashion. This will also create a unique shopping experience for the customer and build trust by enabling them to get familiar with all the labels in person, establishing a

face for the retailer.

A BNKR pop-up shop will allow customers to immerse themselves within the brand and gain awareness of

Australian fashion, while still maintaining and building a stronger online presence and being available on a

global basis.

EXECUTIVE SUMMARY

4HISTORY

Parent company, Australian Fashion Labels, was started in 2007 to unite contemporary Australian designers

categorized as the Labels.

The Labels consist of Finders Keepers, Cameo, Keepsake, Jaggar, and The Fifth.

BNKR was originally created as a retail platform to sell the Labels merchandise,

and now has expanded into a highly curated online retailer for Australian

Fashion Labels and many other renown Australian designers 10 (Retail Evolves

from Website to Street-site in Adelaide).

5THE LABELS

6COMPANY PROFILE

Mission BNKR is a highly curated Australian retailer of

contemporary and casual sportswear brands. Their mission is to make premium Australian fashion brands accessible to

the US and international customer.

VisionBNKR strives to be a destination for Australian fashion;

aiming to be a leader in Australian lifestyle and shopping.

ValuesBNKR values to be a voice for Australian Fashion Labels. This company values the environmental impact it has on

Australia and the US specifically, and strives to set an example of what Australian fashion is capable of.

7CORPORATE STRUCTURE

AUSTRALIAN FASHION LABELS (parent company of BNKR)

Dean and Melanie FlintoftManaging Director and Creative Director of Australian

Fashion Labels

They sell their merchandise internationally through their online website and domestically through their flagship store in Adelaide, Australia. Their merchandising, online and in-store, is consistent

throughout both channels making them a destination for Australian brands.

Their headquarters are located at 106 Currie Street Adelaide Australia, less than a mile away from the

flagship store.Recently, BNKR opened a headquarters in Los Angeles,

California within the fashion district.

MARKETING

SALES MANAGERS

GRAPHIC DESIGNERS

CUSTOMER SERVICE TEAM(10+ members total)

See Appendix Item I

8BUSINESS MODEL

BNKR is partners with The Labels and parented by Australian Fashion Labels.

After their established partnership with Australian Fashion Labels, BNKR expanded

into serving as a retailor for other Australian brands not owned by Australian

Fashion Labels such as:

Sol Sana, Jeffrey Campbell, Windsor Smith, Senso, Quay eyewear, Lo Burket, Cinquante, Fig & Yarrow, and E-S-T (Main Page).

9BNKR FLAGSHIP STORE

Opened in 2014Store layout and displays designed by company

Xtra Shiney, lead by Adam Johnson. He concentrated on a design that could be not

only dupicated but understood all around the world(Retail Evolves from Website to Street-site in

Adelaide).

10

COMPANY GROWTH

In 2014, BNKR opened their first flagship store and brick-and-morter

location in hometown Adeleide, Australia.

They plan to expand their business into the United States with a Los

Angeles flagship store. This will help them with international expansion

and reaching a wider customer base.

With the Labels already being distributed in boutiques and stores

such as Urban Outfitters within the US, BNKR created their US headquarters in Los Angeles.

BNKR is in the midst of creating a blog on top of their prominent social

media platforms.

11

SWOT ANALYSIS

STRENGTHSNo known Australian competitors in U.S.

Strong celebrity followingBrand advocates (bloggers)

Strong social media presence All labels offered under one roof

WEAKNESSESOnline order complaints

Small brand awareness in U.S.No advertising, besides social

media & magazine

OPPORTUNITIESBetter customer service

Expanding to U.S. marketIntroduce Australian fashion

Customers are able to showroomHigh promotion of brand

Cocreation

THREATSU.S. competitors

CopycatsDisinterest in brand

Low brand recognition

12

BRAND IDENTITY MATRIX

BRAND as ORGANIZATION

AustralianFresh

Polished

BRAND as PERSON

FunModern

Confident/CoolFashionable

BRAND as SYMBOL

BRAND as PRODUCT

13

CURRENT POSITION

Current Position in the Market:Currently BNKR offers a wide variety

of clothing and accessories through its online presence and brick and mortar location in Adelaides Central Business

District of Australia.

Price Range:Price of accessories range from $13-$100 including notebooks, scarves,

sunglasses, jewelry, etc.Price of clothing can range from tees being $30 to leather pieces at $500

such as jackets and dresses.

See Appendix Item I

14

DISTRIBUTION

RETAILERS WHO CARRY BNKR LABELS:Revolve Clothing

Nasty Gal Shopbop

Nordstrom Neiman Marcus

ASOS TOPSHOP

Urban Outfitters& many boutiques around the world

BNKR sells and ships their merchandise worldwide every day from their online store. They have a high volume of international as well as local sales and will have over a

hundred people on the site at any general time.

15

Map of BNKR Labels distributed in retail locations around the world

16

Looking at fashion BNKRs competitors we understood all have a global e-commerce

to be available to their consumers, but Zara gaining the most accessibility to consumers with their vast collection of global brick and mortar presence. Followed by Topshop who is increasing their store numbers, Nasty Gal

and BNKR have recently opened up their first store this past year (both implementing plan for their second), while Asos is staying only in

the e-commerce platform.

Since all of are competitors have a fairly diverse assortment of prices, we believed it would make sense to view price in a range not just average. As far as prices go, Zara

and BNKR having the most consistent prices illustrates their shorter width, though Zara

having more affordable choices brings BNKR price higher. Nasty Gal, Topshop, and Asos each having a wider assortment of prices all in the same kind of price rang, places them

equally wide. Since BNKR offers the greatest amount of high range products brings them to having the all around highest price peak.

PERCEPTUAL MAP RATIONALE

16

PERCEPTUAL MAP

AC

CESSIB

ILITY

PRICE RANGE

NASTY GAL

ZARA

ASOS

TOPSHOP

BNKR

18

COMMUNICATION & PROMOT ION

BNKR Store : 71,089 likes

@_fashnfnkr_: 876 followers@cameo_the_label: 204k@finderskeepersthelabel: 147k@keepsakethelabel: 80.3k@thefifthlabel: 25.6k@jaggarthelabel: 18.5k

@fshnbnkr : 706 followers

#bnkr

On every social media platform, they offer time sensitive deals

and display almost out of stock or popular merchandise.

In addition to the social media platforms, BNKR utilizes their

own magazine and email blasts for promotional content. The company also has bloggers

advocating the brand to their followers while they recieve

commission on products. The brand is also worn by many famous celebrities who post

images of themselves wearing the clothes on social media sites.

Editoral : 394 followers

19

STRATEGIC PROCESS OUTLINE

Our goal is to spread awareness of Australian Fashion Labels through a BNKR pop-up shop in Santa Monica,

California.

Our strategy is to gain brand recognition and spread awareness

of BNKR and the brands it carries in the US market. We would achieve

this by mimicking the atmosphere of the BNKR flagship store in Adelaide, Australia as well as using social media

and online marketing platforms. We are using the flagship as a template when designing the floor space and visual merchandising of the pop-up shop.

We plan to survey customers on the awareness of BNKR and analyze the income of the pop-up shop to

determine if a permanent store would be successful in the area.

PESTEL ANALYSIS

20

POLITICALCURRENT STRENGTHS CURRENT CHALLENGES

FUTURE PROSPECTS FUTURE RISKS

- Strong democratic system- Global influence

- American & Australian governments are similar, consistantly stable relationship between the two

- Threat of terrorism- Temporary work visa

- Duties, taxes, & charges for imported goods

- FTA negotiations - International criticism- 2016 Presidential campaign

The US, although it is not perfect, has a developed economy. In 2014 the goods and services industry increased at a rate of 2.6% in 2014, and the amount spent on goods is constantly increasing. Minimum wage in Santa Monica, California is $9 an hour which is much higher compared to the rest of the country. Currently, the US is still recovering from an economic recession. The disposable income in California in 2013 was $1.6 billion. Current challenges California faces is high unemploymen rates, the current inflation rate of .76%, and the sales tax being 9% (United States Data).

ECONOMICCURRENT STRENGTHS CURRENT CHALLENGES


- Well developed US economy- Goods & services industry increased

at a rate of 2.6% in 2014- Amount spend on goods in US

(2010) $14.8 million

- High unemployment rate of 7.2- US current inflation rate = 0.76%- Los Angeles sales tax = 9.00%

- Recovery from recession- Disposable personal income of $1.6

billion in California (2013)- Increasing minimum wage in

California

- Continuous decrease of inflation rate- $1.00 USD = $1.29 AUS (as of Feb. 2015)- $1.00 AUS = $0.78 USD (as of Feb. 2015)

The US is a strong democracy with a strong influence on other countries. Australia does not have the exact same government system as the US, but there are similar factors that in turn help both countries have a consistantly stable relationship (Parliament vs Congress). The FTA negotiations are a future prospect because it promoted seamless trade between countries, which in turn boosts the economy. This could potentially provide more reources with employing, materials, etc. In the US, there is a consistant threat of terrorism since the terrorist attack of 9/11. Another challenge we would face is apprahaining temporary H-1B Visas for our personnel we plan to bring from Australia to manage the store. Finally, the upcoming 2016 presidential campaign can cause uncertainty and sometimes is known to cause a downfall in consumer spending.

See Appendix Item II

PESTEL ANALYSIS

21

SOCIALCURRENT STRENGTHS CURRENT CHALLENGES


TECHNOLOGYCURRENT STRENGTHS CURRENT CHALLENGES


The US has a strong and continuously evolving heath care system and social security policies. The average age in California is 35 years old which is a benefit for BNKR because that age is around our primary and secondary demographics, and the population percentage in LA that is woman is over 50% as of 2013. California in general does not have the highest median household income average, and suffers from inequality of income. Future risks that could affect business is the education factor. California is one of the lowest funded states for education and has a troublingly low percentage of high school graduates.

Santa Monica is within close proximity to the Silicon Valley which could be a potential advantage because this could lead to technology advances in retail. Silicon Valley is also home leaders in software and technology based companies such as Apple, Microsoft, Samsung and Ebay. The US is a leader in developments in technology, partly because of companies in the US and partially because of the research and development commitment in the US. However, the focus of R&D in the US has been recently aimed towards defense. Another challenge the US and California specifically face is the declining level of aptitude in mathematics and science. This could potentially lead to less innovation in the US which could lead to less innovation in retail. This could also lead to other countries having those innovations.

- Close proximity to the Silicon Valley could be influential to retail store - Silicon Valley is home to largest technological players (i.e. Apple,

Microsoft, etc)

- Focus on governments R&D*- Declining level of aptitude in

mathmatics & science in the US

- Significant developments in emerging technology & innovation*

- Competition from other countries in technology advancement & innovation

- Health care & social security policies - Median age in California is 35 yrs old- Population of women in LA 50.7% (2013)

- Inequality of income in US- Aging population in US

- Median household income of $69,013 (in 2008 dollars) in Santa Monica

- Median household income of $55,909 (2009-2013) in Los Angeles

- Universal health care in US - 26.9% high school graduation rate in Cali.

- LA is one of lowest funded states in education


PESTEL ANALYSIS

23

ENVIRONMENTALCURRENT STRENGTHS CURRENT CHALLENGES


The similarity in climate between the US and Australia is a huge advantage for our company. One, our product assortment is well suited for the climate, and two, the target market stays essentially the same. This similarity helps us with our future plans to open a flagship in LA. The US has environmental initiatives which we find to be a strength as well due to the fact that BNKR values sustainability in all aspects. LA in particular has award winning programs that help in making a sustainable community. This includes the EPA working on cutting carbon emmisions in the US by 20% by the year 2020, which creates a strong reliance on renewable energy. Challenges that face the US is convincing the general public in the US of the weight of this problem, and the lack of commitment within the general public and waste management companies on how to properly dispose of garbage.

- Similarities in climate between CA & AUS- Strong environmental initiatives in US- Renewed focus on renewable energy

- LA has award winning programs aiding sustainablilty for the community

- Renewed focus on renewable energy in businesses & retail spaces

- Unfriendly waste management practices

- Public awareness of the environmental impact

- Lack of commitment in proper waste management by the public


24

California has the strongest consumer protection laws of any state, which means that business can not behave in fraudulent behavior. In Santa Monica specifically, the police deptartement offers free security services, which is an advantage for our business seeing as we have certain events we would potentially be needing security for. The EEO laws are also within California, which prohibits discrimination when hiring. There are standards in Santa Monica for health and safety within the workplace. Again, a challenge when bringin employees from Australia to the US is attaining their temporary work visas. Also, getting a license for building our business and police permits for the business activities we plan to host could potentially be a challenge. When shipping our goods from Australia, because the merchandise is worth over $1000, there will be duties, taxes, and charges for importing, and it could be subject to search.

LEGALCURRENT STRENGTHS CURRENT CHALLENGES


- CA has strongest consumer protection laws of any state

- Santa Monica Police Dept. offers free security services

- Equal Employment Opportunities (EEO) laws prohibit job discrimination

- Workplace Health & Safety (WHS) laws enacted

- Temp. working Visa for AUS employees (Visa category H-1B)

- Retaining a business licence from the City Planning Division in Santa Monica

- Requiring a police permit for business activies & events

- Duties, taxes, and charges on imported goods between US & AUS

PESTEL ANALYSIS


SIZE OF MARKET: GLOBAL vs LOCAL

25

Clothing and clothing access. stores 241,386 Clothing stores ..178,021

Men's clothing stores ...9,186Women's clothing stores .41,357Family clothing stores ..94,473Other clothing stores ....14,168 Shoe stores ....29,488 Jewelry, luggage, and leather goods stores .33,877 Jewelry stores 30,850

ESTIMATED ANNUAL SALES OF U.S. RETAIL SERVICES: 2012 (IN MILLIONS)

26

INDIRECT COMPETITION

Distractions for our customer: Stores:

The Coffee Bean & Tea LeafBarneys Beanery

Mi Westside Comedy TheatreJohnny Rockets

Steve Madden ShoesAldo

Stores Selling BNKR Brands:Urban Outfitters

Santa Monica Pier:Arcade

Theme Park Restaurants

Shopping

Downtown Santa Monica:

Downtown Santa Monica, located in-land East of Santa Monica Promenade,

would be another competitor. It provides restaurants, entertainment, and more shopping (Downtown Santa

Monica Retail).

DIRECT COMPETITORS

27

HISTORYZara belongs to one of the worlds largest

distribution groups, INDITEX and is a completely vertically integrated company (Thompson).

Zara was founded in 1975 by Amancio Ortega and Rosalia Mera in Arteixo, Spain. They sell

mens, womens, and childrens fashion along with accessories and made 7.71 billion euros in 2009. Zara spends little on advertising with their main strategy focusing on location of their stores in proximity to high luxury brands and foot traffic

(Fast Fashion: The Zara Experience).

RATIONALEZaras main advantages over BNKR are its fast fashion approach in terms of low price points

and that they are vertically integrated. Zaras low prices for somewhat high quality are what make

them a direct competitor. Brand awareness is another thing that Zara has with 468 thousand

Instagram followers in the United States and 2.8 million around the world. They have a large and

loyal customer following.

SOCIAL MEDIA OUTREACH: Twitter: 864K followers Instagram: 2.5 million followers Facebook: 24.1 million followers

DISTRIBUTION: e-commerce and Brick and Mortar platforms

SOCIAL MEDIA AND PROMOTION: Print advertisements, social media advertising (usually with celebrity model appearances such as Cara Delevingne and Hailey Baldwin), Zara Magazine, iPhone shopping application, and fashion videos and commercials.

POP-UP SHOP EXPERIENCE: None

DIRECT COMPETITORS

28

SOCIAL MEDIA OUTREACH: Twitter: 1.7 million followers Instagram: 3.8 million followers Facebook: 4.1 million followers


SOCIAL MEDIA AND PROMOTION: Lookbooks, seasonal fashion shows, social media presence, shopping phone app, and seasonal fashion videos.

POP-UP SHOP EXPERIENCE: Shops within Nordstrom (they call pop-in shops), and pop-up shops featuring collaborations with designers within their own brick and mortar locations.

HISTORYTopshop is primarily and privately owned by Arcadia Group founded in 1964. The current

CEO is Philip Green, with headquarters based in London, England. They sell mens, womens,

childrens clothing along with accessories (Topshop).

RATIONALETop Sop offers labels such as Cameo, which is

under the BNKR company umbrella, and targets the same demographic in terms of age and

behavioral shopping habits.

29

DIRECT COMPETITORS



SOCIAL MEDIA AND PROMOTION: Printed catalogues, lookbooks, iPhone shopping application, and social media advertising.

POP-UP SHOP EXPERIENCE: None

HISTORYNasty Gal is a privately owned company that

started in 2006 by Sophia Amoruso in California. They are a womens apparel and accessory company specializing in vintage (Perlroth).

RATIONALENasty Gals aesthetic and current distribution

channels are what directly challenge BNKR. The look and feel of both Nasty Gals and BNKRs

websites are quite similar, both being very clean and engaging. Nasty Gal also started out as an online retailer before opening their first flagship store in Los Angeles last year that is the exact same circumstance that applies to BNKR; only

difference being that they are in Australia.

30

DIRECT COMPETITORS

HISTORYAsos is a publically owned company and

was founded in 2000 by Nick Robertson and Quentin Griffiths in London, England. They have pre-tax profits of around 30 million euros (About

Us).

RATIONALEOnline retailer, ASOS, directly competes with BNKR for a couple of reasons. For one, ASOS

has a very large following online and offer a very wide assortment of different products. Also-

their prices are in the same market segment as BNKRs, except they do offer very economical

prices for discounted items.


DISTRIBUTION: e-commerce

SOCIAL MEDIA AND PROMOTION: Social media advertising, interactive shopping feature on website, styling services for individual customers, Asos phone application, and Asos Lifestyle blogosphere

POP-UP SHOP EXPERIENCE: Pop-up Shop in Sydney, Australia in 2012

CUSTOMER PROFILE

31

DEMOGRAPHIC Santa Monica Resident

Age: 23Single

Salary: $40,000

Recently graduated from FIDM and is now a junior copywriter.

PSYCHOGRAPHIC:young, charismatic, always on top of

trends

BEHAVIORAL:Fun and always on the move; up

to date on trends for personal and professional reasons.

Splurges on a big purchase every once in a while, but still conscious on

a quality wardrobe with a budget.

CUSTOMER PROFILE

32

DEMOGRAPHIC Tourist, Nevada resident

Age: 24Single

Salary: $60,000

PR and social media maven.

PSYCHOGRAPHIC:intelligent, organized, on-the-go,

independent

BEHAVIORAL:Frequents California about five times

a year, with Santa Monica being her favorite destination. Enjoys the beach, attractions, and shopping

alike. Really big on social media and is always in the know.

CUSTOMER PROFILE

33

DEMOGRAPHIC Tourist, California Resident

Age: 27Married

Salary: $85,000

PSYCHOGRAPHIC:workaholic, passionate, business-

oriented

BEHAVIORAL:She resides in San Diego and visits Santa Monica frequently to see her family. She has one child with her

husband and has a combined family income of $175,000. She is very

socially active within her community when shes not working.

34

TOURISM

TOURISM -Roughly 7.3 million visitors a year

-Total annual visitor spending is $1.63 billion-Per capita daily visitor spending is $143.32

-Shopping and annual retail spending was $573,852,077 in 2013 compared to $533,089,000 in 2012.-A 7.6% increase in retail spending

INTERNATIONAL & DOMESTIC VISITORS32% (3.4 million) are US visitors

32% of which are from CA

53% (3.9 million) are international visitors(Of the top 12 international visitors, the number one was Australia/

New Zealand at 15.8%)

SANTA MONICA VISITOR PROFILE

SOURCE:http://www.santamonica.com/includes/

media/docs/2-page-econ-Imp-Summary-2013.pdf

PSYCHOGRAPHICS

35

GEOGRAPHY/LOCATION 2014 Santa Monica population: 90,008 million

26.98% are Millennial generation52.24% are female

Almost half of the millenial generation live in an urban or downtown area at 48%.

Cities such as San Francisco, San Diego, and Los Angeles are popular among this demographic.

WHERE GENERATION Y LIVES

SOURCE:ULI/Lachman Associates Survey, 2013

BEHAVIORAL INFORMATION

36

MILLENNIALS AS CONSUMERS 63% stay updated with brands through

social media.46% count on social media when

making a purchase, but 55% share bad experiences.

One highly noted aspect is that our demographic visits their favorite branded

store as much as they shop online.

Despite primarily shopping online, consumers aged from 18-32 do like to shop in store for a number of items:

73% for clothing76% for shoes

62% for jewelry

STORE LOCATION: JUSTIFICATION FOR SELECTION

37

LIFESTYLE (PRIZM SEGMENTATION) The people of the Santa Monica are a wide range of different demographics. The

amount of wealth and poverty are pretty evenly distributed with it swaying slightly more towards the conventional and wealthy classes. Although a varied and unique population, our target customer is very much present in Santa Monicas community. Shes still young in her early to late 20s and has a stable career from being college-

educated. She makes a decent salary and has quite a bit of discretionary income. She is a woman who enjoys minimal silhouettes with charismatic prints and interesting

fabric choices. She doesnt mind spending more money on clothing and leisure items. Considered to land among groups such as an urban achiever and bohemian mix,

shes successful and considered to be upper middle class who leads a very socially active lifestyle. Technology is the way for her to stay ahead of what is going on and

researches products before she buys them. Not only does BNKRs target consumer reside in Santa Monica, but theres another one whos also a tourist. With so much tourism from people from all over the

world, a tourist is almost twice as likely to be in the area and shop at BNKR than a local.

53 percent of tourists in Santa Monica are international leaving 47 percent from the United States.

BEHAVIORAL (PRIZM SEGMENTATION) Reads the news, keeps up with current events. Enjoys shopping and living a social and active lifestyle. Goes to the beach and enjoys the outdoors when possible. (Neilson Prizm)

38

SALES POTENTIAL Santa Monica California, located at the western edge of Los Angeles, is known for being a tourist

destination for shopping, dining, and recreation. The average foot traffic per day is 40,000 people.According to the 2010 census, there are 6.33 million visitors annually in Santa Monica with an

annual spending of $1.1 billion and average daily spending of $118.46. Although these numbers fluctuate, we expect this destination to remain a popular destination for tourism. Also, the largest

percentage of foreign visitors annually are from Australia, so choosing this exact location was key to our Australian brands success (See Appendix Item .

ESTIMATING COMPETITION During the summer, Santa Monica not only has its all year round recreational activities such as The Pier, the beach, and the downtown area, but it also has seasonal farmers markets. These farmers

market have the potential to bring in customers to the area, but they could also be a competition. Additional competition could include our adjacent retail neighbors such as Zara, Armani Exchange,

etc. These larger scale neighbors could potentially take the attention of our target consumer. Walking tours of the promenade and area are a popular pass-time.

Every Wednesday there is a Hump-Day Food Trucks event that consists of food trucks of many food origins. This event is annual and very popular for local californians and visitors (Southern

California Attractions and Santa Monica Events Calendar).

AREA ATTRACTIONS The Santa Monica Promenade or also known as the Third Street Promenade had a lot of

improvements in 2013/2014 that better the area. One being the construction of two large scale hotels which will boost the economy of the area and bring in more vacationing consumers. They

have also completed an eco-friendly parking garage for the promenade. In 1980 the promenade took form as the local mall started to lose its appeal and an outdoor setting for shopping became more attractive. It has now been 25 years of shop owners and

restaurateurs boosting the economy and look of the Santa Monica Promenade (Getting Around).

STORE LOCATION: JUSTIFICATION FOR SELECTION

39

AVAILABILITY OF HR Recently, BNKR has brought a US headquarters to Los Angeles, California. In this headquarters is a team the manages all US distribution, PR, and customer service.

AREA FACTORS Due to the effective work of the ambassador program of the downtown and promenade areas in

Santa Monica, there is a constant source of convenient walking maps of Santa Monica 24/7. The local Big Blue Bus lines in Santa Monica provide transportation to the local and greater Los Angeles areas. There are high service taxi cab services provided by the area, and there are over 75 parking structures

provided as well for bicycles in the area. In Santa Monica there are 9 vehicle parking garages open 24 hours a day (Best Place to Live in Santa

Monica, California).

40

LEGALBNKR runs into only few issues concerning the opening of our Santa Monica

pop-up shop. To open and operate, BNKR will just need to gain approval of a Temporary Use Permit from the City Planning Division. For our grand opening event, alcohol will be served compelling us to acquire approval and a license. The permit will allow us to serve beer, wine, and spirits onsite on a temporary,

seasonal basis. Also, we will have to get approval from the Architectural Review Board in Santa Monica to display a projecting or wall sign on the outside as well

as window signs and clings. All signage in the store is exempt from needing approval for use (See Appendix Item V).

DESIGN OF SPACE: FLOOR PLAN

41

The layout of the floor plan was inspired by the look and aesthetic of the labels under the BNKR

brand. Minimal, clean, and relaxed, the BNKR pop-up shop fits right in the southern California fashion scene. When entering the store, consumers walk through the glass double-doors and are met by a case of special edition Beats by Dre headphones

that they are given the option to wear as they shop around. Continuing down the middle aisle, the

different sectioned off areas are to feature clothes from Cameo, Finders Keepers, Jaggar, The Fifth, and Keepsake, respectively. This is to familiarize

consumers with the labels as they get a feel of what each has to offer and also listen to a curated playlist

that changes as they enter each section. Fitting rooms are in the back of the store with two mirrors

and a sitting space. The stockroom is in the very end of the store with shelves that hold the inventory.

DESIGN OF SPACE: VISUAL MERCHANDISING

42

For this BNKR pop-up shop, we wanted to duplicate the modern and fresh design and appeal of the recently built flagship store in Adelaide, Australia. The flagship store was

designed with this specific idea in mind, We wanted a store design that we could replicate in future flagship stores so that the customers will always know when they are in a BNKR store,

says Adam Johnson, the store designer. Although it is not exact, the light fixtures, ambiance,

merchandising, and visuals in our temporary store mimic the design of the original store.

PRODUCT ASSORTMENT: TOPS

43

PRODUCT ASSORTMENT: SHORTS

45

46

PRODUCT ASSORTMENT: SKIRTS

PRODUCT ASSORTMENT: PANTS

47

48

PRODUCT ASSORTMENT: PANTS

PRODUCT ASSORTMENT: DRESSES

49

50

PRODUCT ASSORTMENT: PLAYSUITS

PRODUCT ASSORTMENT: OUTERWEAR

51

52

PRODUCT ASSORTMENT: ACCESSORIES

PROMOTION PLAN

53

Promoting the pop-up shop will mainly be done through social media and reestablishing a strong connection with consumers. Invitations to fashion bloggers,

PR companies, VIP customers, fashion magazine journalists, and a few selected others, in May for the grand opening event a month before the big day with a follow up email a week prior. Having people in public relations and bloggers at

the event will generate a lot of buzz for the pop-up because so many people who would attend are involved in some aspect of media. Heavy use of social media

through Facebook and each labels social media accounts along with posts blasts of sneak peeks and information on the opening day. This will be to gain some

exposure and create awareness to these brands seeing as they are not household names in the United States yet. Also, free coffee tumblers with the signature BNKR

logo will be given to the first 100 customers of the opening day.

Personal Advertising March

Pre-Launch Launch LaunchApril JulyMay AugustJune September

Online Marketing

Event Marketing

Giveaways

Invitations _ Reminders_

Thank you letters_

Facebook_Twitter_

Instagram_Pintrest_

Launch Party_

BNKR Tumblers_

54

Opening Night Event For the Pop-up shops opening night, we are having an event sponsored by Beats by

Dre featuring Beats headphones personalized with patterns by the Labels. We plan to promote the event through social media and the invites via email. We hope that this will help promote BNKR and the Labels it houses. We also plan to give limited BNKR coffee

tumblers to the first 100 shoppers throughout the day. This will hopefully spread the word throughout our target customer, and promote a solid image for the brand.

PROMOTION PLAN

FINANCIAL PLAN

55

First, through research, we determined the foot traffic in the downtown Santa Monica promenade, which is 40,000 per day. We then determined that 61.5% of the people in the promenade are coming to shop apparel within the promenade, which was 24,600 people per day. 65% of those people are female, which was determined to be 15,990

per day, then to be more precise we made an educated guess that 30% of those women are hitting are target market age to bring us to 4,797. Then, through research we determined that there are 84 total stores that are apparel/accessory/shoe stores in the Santa Monica Promenade. This helps us because in order to determine the exact

footfall, we need that figure along with the estimated average number of stores visited, this number being 20 stores. After multiplying that figure by 7, illustrating 7 days in a week we ended up with 7,995 people per week, which we then multiplied by 60% to get the footfall for Week 1. For Week 2, 3 and 4, each week increased by 10% more,

due to our standing presence in the promenade.

56

To get the conversion rate, the figure that represents the number of persons within footfall that actually makes a purchase, we multiplied our footfall figure by 10%, thinking

that 10% of people walking into our store will purchase merchandise. For our average basket, we determined this by obtaining the average price of our inventory, $120.60, and assumed that the average person, taking our target consumer into consideration,

would buy two items and a small accessory. This brought our average basket to $255.00. Finally, to get our revenue, we multiplied the conversion rate and average

basket together.

To determine are category percentages, we started by getting the number of each unit in each product category, then dividing that number by the total number of units within

our product assortment to get the percentage for each category.

From there we started to implement each weeks sales out, understand consumers dont buy the same percentage of product category each week so to keep it realistic we input different purchasing habits, which also explains the disconnect between are

initial estimated revenue to the more in depth week tables showing it in a more organic execution.

FINANCIAL PLAN

57

WEEK 1

WEEK 2

58

WEEK 3

WEEK 4

APPENDIX ITEM I

APPENDIX ITEM II

APPENDIX ITEM III

APPENDIX IV

APPENDIX ITEM V

1. "Australian Government - Australian Customs and Border Protection Service." Importing Goods by Post FAQ. Web. 6 Mar. 2015. . 2. "Best Place to Live in Santa Monica, California." Best Place to Live in Santa Monica, California. Web. 13 Feb. 2015. http://www.bestplaces.net/city/califor-nia/santa_monica. 3. "Downtown Santa Monica Retail." Downtown Santa Monica. Web. 6 Mar. 2015. . 4. "Fast Fashion: The Zara Experience." Retail Law Advisor. Web. 10 Feb. 2015. . 5. "Free Trade Agreements Australia | United States Trade Representative." Free Trade Agreements Australia | United States Trade Representative. Web. 6 Mar. 2015. . 6. "Getting Around." Getting Around. Web. 20 Feb. 2015. . 7. "Main Page." Australian Fashion Labels. Web. 6 Mar. 2015. . 8. "Parliament vs Congress." Parliament vs Congress. Web. 6 Mar. 2015. . 9. Perlroth, Nicole. "Naughty in Name Only." The New York Times. The New York Times, 24 Mar. 2013. Web. 10 Feb. 2015. . "United States Data." United States. Web. 6 Mar. 2015. . For the rest of the pestle cite the market line report Lizzy is sending you. 10. "Retail Evolves from Website to Street-site in Adelaide." CityMag BNKR The First Flagship Store Comments. 6 June 2014. Web. 15 Feb. 2015. .

11. "Southern California Attractions and Santa Monica Events Calendar." Santa Monica Events, Southern California Events Calendar. Web. 20 Feb. 2015. . 12. Thompson, Derek. "Zara's Big Idea: What the World's Top Fashion Retailer Tells Us About Innovation." The Atlantic. Atlantic Media Company, 13 Nov. 2012. Web. 10 Feb. 2015. . 13. "Topshop." / Arcadia Group. Web. 10 Feb. 2015. . 14. "United States Data." United States. Web. 6 Mar. 2015. .

WORKS CITED

JACQUELINE MILLERARIEL CHANG

LIZZY JOHNSONGAGE DAUGHDRILL

FASM 410 - WInter 2015 - Prof. Alessandro Cannata

bnkr pop-up shop

Documents