Sophisticated, Pirncipled Footwear

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“The New Guard”A business concept for a socially conscious footwear boutique

Claire AndersonID #03394887

Academy of Art University Graduate School of Fashion Merchandising

Final Thesis ProjectDecember 4, 2013

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Table of ContentsPg.4 Exectuive Summary

Pg. 7 Company Identity Business Concept Mission/Vision Statements

Pg. 10 Industry Analysis Footwear Industry Vegan/Eco Fashion Movement San Francisco, CA Analysis Trade Shows

Pg. 29 Target Market Analysis Customer Profile Survey Analysis Focus Group Analysis

Pg. 45 Merchandising Plan Brands Vendor Information

Pg. 64 Competitive Position Competitive Advantages SWOT Analysis Competitor Analysis

Pg. 72 Marketing Strategy Overview Objectives Marketing Mix Store Events Print Advertising Social Media Digital Marketing Direct Mail Public Relations

Pg. 92 Visual Merchandising Store Theme Floorplan Boutique Facade Window Desgin Interior Design

Pg. 101 Company Branding

Pg. 104 Operational Plan Organizational Chart Employment Information Policies and Operations Personal Selling Strategy Social Responsibility

Pg. 113 FInancial Plan Assortment Plan Start-Up Expenses Sales & Inventory by Month Cash Flow Forecast Profit & Loss Sales by Quarter Marketing Calendar

Pg. 124 Growth Plan 3 Year Plan 5 Year Plan

Pg. 128 Appendix

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Executive Summary

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The New Guard is a women’s shoe boutique located on Fillmore Street in San Francisco, CA offering sophisti-cated, principled footwear from innovative designers not currently available in the area. We will provide high quality, designer footwear created by designers that have combined their love for shoes with their compassion for the well being of all living things. The New Guard customers are women between the ages of 25-40 with a mid-level income range. They favor quality over quantity, and want their attire to be a representation of their style but also allow them the ability to tread the city with ease. I conducted a survey of 97 women between the ages of 25-35 and collected information pertinent to my business design and used this information to tailor my marketing plans and business concept. While some of my assumptions were substantiated by this survey, I learned those surveyed were willing to pay more than I previous-ly thought and they buy shoes more frequently than I had assumed. The women I surveyed also pointed out some prospective competitors I had not considered before. Product selection was stated as the main reason they shop at a particular store. In addition to my survey, I also conducted a focus group inviting 13 women who fit into my target and sec-ondary markets to give me their feedback on the product, pricing and their thoughts on shopping more eco-friendly in general. The reaction to the product was astounding with many commenting on the high quality of the shoes and their disbelief they were all made from man-made materials. Although they were initially skeptical of paying a higher price for shoes made of man-made materials, after hearing about the production process and the fabrics used they agreed the prices were fair and one they would be willing to pay for such high quality. There are five shoe brands offered at the boutique (Beyond Skin, Cri De Coeur, Olsenhaus, Melissa Sustainable Shoes, Reneu) as well as 2 handbag brands. These companies are based in Great Britain, Brazil, New York City, and New Jersey and are produced in Spain, Mexico, Portugal, India, Brazil and the U.S. Two seasons will be offered (fall/winter, spring/summer) and price points will range from $76-$386.

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The New Guard has many competitive advantages including offering products that are new and exciting, offer-ing the customer a story they can connect with, and a more personal experience. Our marketing plan will consist of a variety of platforms including print, social media, and store events. We will have a comprehensive website and a more personal customer relations strategy. Monthly promotions will include holi-day based events as well as trunk shows and seasonal sales events. The New Guard’s visual concept will be a Parisian theme focusing on creating a comfortable and cozy shopping environment. The interior furniture and décor will be antique pieces that have been refurbished in order to decrease our carbon footprint and to feel more authentic. Cozy armchairs and chandelier lighting will be part of the ambiance of the store. Colors will be neutral sands and blues with purple being the primary color story. Our branding will consist of a logo and a tagline that emulates the identity of the boutique. The logo is hand drawn and the font is whimsical and sophisticated. This logo will be used on all pieces of marketing and brand collat-eral such as envelopes, shopping bags and business cards to create a consistent brand image. The New Guard family will consist of three full-time sales associates and one store manager. They will be en-couraged to participate in company marketing and visual ideas. We will be involved in social responsibility initiatives as well as have a strong relationship with the community including collaborations with non-profit organizations. Our initial startup capital will equal $358,480 with $107,544 coming from a small business loan and the balance to be invested by the owner. The loan will be paid back over a 60-month period with 3.6% interest. In the first year The New Guard is projected to earn $1 Million in net sales with a 5% growth projected for year two and 8% growth in year three. The boutique is expected to maintain a positive cash flow throughout year one with the highest cash flows in June and July.

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Company Identity

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Business Concept The New Guard was a social movement in Australia in the 1930’s that called for class collaboration over class conflict, the suppression of an immoral government, industry and societal acts as well as guarding a set of values as well as the community. Like them, the designers I am carrying have gone to great lengths to create a product that calls for the collaboration of minds, innovation and calling for change in the dated industry norms. By setting higher standards they are an example for the entire footwear industry showing them how to create a beautiful, high quality stylish shoe with more organic products. The New Guard will help to expand this movement by giving designers of shoes that use no animal products a platform positioned to reach San Francisco women. We will only offer collections from brands that have implemented these ideas into the DNA of their business, from concept to creation and every step in between. The key to succeeding in the retail footwear industry is innovation and experimenting with new fabrics and styles. That is the basis of these companies. They have turned what could have been limitations into chances for creativity and differentiation in a market flooded with less and less variety and options for shoppers. The New Guard offers them more choices and alternatives to make shopping exciting again. Instead of going on a treasure hunt to many different locations, they will find sensational choices all under one roof.

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Mission Statement Shopping ethically no longer means you have to forgo fashion and style. Our mission is to help women not only feel good about how they look, but to also feel good about how they are helping the world. The New Guard is a retail shoe boutique who offers a selection that is stylish and contemporary while also being cre-ated on a basis of a strict set of principles, leaving our customers feeling good on the outside as well as in.

Vision Statement The New Guard will be a specialty shoe boutique where women come to find exclusive styles that will endure much longer than their common disposable shoes. The creators of our collections have developed ways to create stylish, comfortable, quality shoes without using leather or suede. Like Dorothy’s red ruby slippers, our shoes will help our customers find their way home to an era where animals no longer “foot the bill” for fashion. We will create a loyal following by combining the feeling of glee that accompanies every woman who discovers that perfect shoe with that gratification of doing good and giving back allow-ing them to personally be a part of a growing movement in the fashion industry.

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Industry Analysis

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Footwear Industry: U.S. Growth The U.S. footwear industry reported revenue of $48 billion in 2012, with consumer spending on footwear in the U.S. reaching $20 billion (1). In addition, the growth rate of the footwear sector was 4.5% from 2008-2013 and is expected to continue to grow, as the economy gets stronger(2). Although these numbers look promising, the number of retail locations and employees is waning due to increasing amount of products being imported or bought on-line. In the U.S., the footwear industry rose 4.7% in sales in 2011, with fashion footwear making up 48% of sales. Performance footwear came in second at 27%. An interesting note is that while sales rose, imports of footwear decreased 4%, suggesting an increase in price may be the cause of the increase in sales(4).

Analysts state the only way for retailers and producers to compete is to target your store or product towards a niche market(3).

Footwear Industry: California Shoe IndustryThe shoe sector of California is growing at a faster rate than all other business sectors. In 2010 the shoe sector grew 6%, 1% more than the rest of the sectors combined. During the 5 years from 2005-2010, sales for the shoe sector grew 0.6% overall, while the remaining sector’s sales decreased 2.8%. In the past 10 years, the growth rate for the shoe sector for San Francisco was 4.4%, making it the tenth fast-est growing county in California(4).

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Footwear Industry: Industry Facts

Topic Fact

Average pairs of shoes the average U.S. woman owns 17 pairs

Average # of pairs she wears on a regular basis 3 pairs

% of women who own more than 10 pairs of

shoes 51%

 

Ownership

Topic Fact

Average # of pairs of shoes a woman buys a year 3 pairs

Average price she pays per pairs of shoes $49

% of women who purchase shoes online 29%

 

Spending Habits of U.S. Women on Shoes

Topic Fact

% of overall footwear production done in China 63%

Emerging production markets

Poland, Hungary, Brazil, South Africa,

Taiwan  

Global Footwear Industry

Topic Fact

Shoes sold in the U.S. 20 million pairs U.S. Footwear Industry

Revenue $40 Billion

Women’s footwear industry 60% of industry revenue

 

U.S. 2011 Footwear Industry

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Footwear Industry: Miscellaneous Facts

Topic Fact

Women willing to tolerate some pain from shoes 60%

Women who bring a second pair of shoes to change into after an event 61%

Women who admit to falling because of their shoes 24%

Women who prefer to wear flats for everyday wear 39%

Women who wear heels higher than 2” on a regular basis 8%

Women who notice other women’s shoes 51% Women who have gone shopping to cheer

themselves up 19%

 

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Footwear Industry: Retail Trends The footwear retail industry is finding new ways to get to know their customers, with the top players in the industry urging store owners to have more of a physical presence in their stores. Retailers at the FN Platform in August 2013 noted the importance of “getting to know the customer through every ave-nue, including visiting competitors, asking for shopper feedback and making personal connections on the sales floor”. They also advise the following topics are the most important efforts to be made when running a shoe retail business(5):

1. Develop a comprehensive knowledge of both retail and wholesale before diving into running a shop

2. Build a strong overall brand for the store3. Create a healthy partnership with vendors4. Put the right technology in place, from a compelling website

to a hassle-free POS system

According to industry professionals, store owners have been focusing too much on cus-tomer data and numbers and less time on the floor conversing with them.

This advice is especially significant to new busi-nesses in today’s economy, where a more personal shopping experience is how retailers are creating a competitive edge. The New Guard’s customer service plan includes a more customer centric focus, with the owner being present to interact with customers, hear their suggestions and complaints and observe how they are reacting to the product. Beth Goldstein, VP of the NPD Group stated that there has been a “misalignment of winter weather and the selling season” which has resulted in “fash-ion boots than can be sold through April” getting a boost(6). This information is critical to a footwear bou-tique positioning itself in San Francisco, a city where for the most part boots are worn year round. Consum-ers are often left with little selection of boots during the spring/summer months, leaving a largely untapped market for the industry. If companies begin to design and produce boots year round revenues would be bol-stered for footwear retailers as well as designers.

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Footwear Industry: CaliforniaRetail Trends

County 2009 Sales 2010 Sales 2011 Sales Growth

San Francisco $116,600 $126,670 $134,777 4.4%

Ventura $81,351 $91,694 $97,104 8.9%

Solano $39,576 $43,859 $46,140 9.3%

Placer $24,679 $27,043 $28,773 5.3%

Tulare $22,717 $25,590 $27,330 8.6%

Santa Cruz $18,152 $18,506 $19,728 5.3%

Butte $11,038 $12,008 $12,621 5.4%

 

California Footwear Retail Sales by County(Top 7)

*Sales in $000’s

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Footwear Industry: Charitable Brands in the Fashion Market

According to a Neilson survey released in 2012, “66% of consumers around the world prefer to buy products from companies that have implemented programs that give back to society”. In addition, almost half of those who participated in the survey stated they are will-ing to pay more for products from companies who have implemented this into their corporate culture. There is a growing trend amongst consumers to be more aware of what they are buying and who is making it. Marshal Co-hen, a chief industry analyst for NPD Group, Inc., states the millennial consumers are behind this movement cit-ing their need to choose brands that help make the world better. The key is to have your social position be a part of your company’s brand image from inception and ensuring your message is consistent throughout your business plan, especially when it comes to your vendors. Cohen also stat-ed “When [philanthropy] is built into the DNA of a brand from its inception, it makes a huge impact”(7).

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Footwear Industry: Charitable Brands in the Fashin Market

This concept will be embedded into every aspect of our business from the vendors we choose to conduct business with to the type of shopping bags we offer. The central message of the brands we carry is that it is not necessary to harm animals in the production of quality footwear. The New Guard will promote this message not only by sup-porting these companies but also through engag-ing philanthropic entities on a local and national level. As Cohen suggests, philanthropy will be built into our DNA.

The foundation of The New Guard’s identity is to help promote the well being of others through improved production methods that do not endanger living things and society as a whole.

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Footwear Industry: Push to Preserve Shoe Manufacturing in the U.S.

Congressman Mike Michaud, Chairman of the House Trade Working Group, has sent a letter to the U.S. Trade Representative in an effort to keep high tariffs on footwear imports. He feels that as long as the tariffs are maintained on imports, U.S. footwear man-ufacturers have a chance to compete in the global market, enticing more American shoe companies to manufacture in the U.S. He points out that “since 1997 more than 28,000 American jobs in the footwear manufacturing sector have been lost, a decline of nearly 65%”. Congressman Michaud’s letter was signed by 18 of his col-leagues, and also states that should the tariffs be removed, more than 4,000 American jobs will be moved overseas, citing the company New Balance (a U.S. based footwear company who currently manu-factures in the Maine) who has over 800 employees(8).

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Vegan/Eco Fashion Movement Every year the most popular fashion magazines put out a “Green” issue showcasing the newest in eco-friendly fashion trends. In Novem-ber 2011 Vogue wrote a piece titled “Green Goddess” which chronicled Arden Wohl’s (filmaker turned pastry chef) forray into a non-leather wardrobe stating it “isn’t as tough as it seems”. The reason it is no longer difficult for non-leather wearers to make the transition is the plethera of desginers creating high quality products out of all man-made materi-als breaking away from the stereotype of “granola” vegan designs. Even companies who still produce leather products are noticing the emerg-ing market and creating products for this new style genre. Gucci is now touting a sustainable sole for their shoes which are made of biodegrad-able materials(9). Stella McCartney, whose shoes can cost upwards of $1,000, produces a 100% vegan friendly line with product descriptions like “faux nappa” and “eco wood”(10). Leather is also now the “option” for Lexus buyers as the company has begun using Nu-Luxe faux leather as standard for their upholstery(11). Between the years of 2009-2011 the vegan population doubled to 2.5% of the U.S. population(12). If this trend continues it will reach 10% by 2015. That means the market for vegan fashion products will also be growing at this alarmng rate. New innovations in fabric technology are happening all over the world and as the demand for these products in-crease the cost to producers will decrease allowing them to expand and become more available. The persistance of this trend does not seem to be slowing down and is becoming a part of everyday fashion vernacular. This year Vaute Couture was the first 100% veganline to show at New York Fashion Week. By 2015 there will surely be more.

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Animal Cruelty and the Fashion Industry Every year billions of animals are slaughtered by the leather industry for “fashion”. In order to preserve the skin and fur cows are stunned, hung upside down while still alive and drained leading to a slow and painful death. Although other means are used for skin-ning, in many of the processes cows are skinned and slaughtered while still alive. When they are transported in packed trucks they are commonly frozen to the metal walls due to improper heat control. When they are on farms they are packed about 12 to a stall that is approximately the size of a typical American bedroom. Although most cows are raised and slaughtered for their meat, the profit earned from their skin is what keeps most farms in business(13). While a cow’s meat and skin are usually used to produce other goods and food, when an animal is raised for their fur their meat is usually discarded. In the U.S. a popular method for obtaining fur hydes is by setting traps for the selected animal. Once caught in a trap an animal can spend days suffering in the steel-jawed traps before the hunter re-turns(13). In addition to being cruel and unjust to animals, the production of leather and furs is very harmful to the environment. It takes almost 60 times as much energy to produce fur and leather coats than it does to create faux ones. According to the EPA livestock pol-lution is the greatest threat to our waterways. This is due to overcrowding on farms , and the use of chemicals such as formaldehyde and coal-tar derivitatives which seap into the soil and are evacuated out into the air. In 2009 Greenpiece released a study which found that Brazil was illegally clearing rainforest acres to make room for their very in demand breed of Brazilian cows which are used to produce very high quality leather. After hearing of this report Gucci stopped producing their products from these cows. While they have returned to importing Brazilian cows hide, they now go to great lengths to ensure they are coming from “deforestation-free” zones and are touting the bags made from this area as “eco-friendly”. They have even gone as far as to place a story within wach bag chronicaling the life of the cow used to make the bag(14).

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San Francisco Analysis: San Francisco Demographics

San Francisco is a city with a varied population of 805,235 making it an eclectic collection of differing cultures and styles. While 42% of the population consists of Caucasians the Asian com-munity follows close behind making up 33%. The population is about 50/50 male and female and about 8% is self-employed(15). It was named number 1 Best American city in 2012 by Bloomberg Business Week and the second smartest city in the U.S. 42,000 of those working are in the retail industry, which is broken up into shopping boroughs frequented by tourists(16). Tourism is a very large part of the city’s income with over 16 million tourists visiting it in 2011, 2 million of them being international visitors. During 2011 these 16 million tourists spent $8.46 billion during their time here, which is a 9.8% increase over 2010. Of the $8.46 billion spent, $526 million resulted in tax revenue for the city(17). The location of my boutique is on Fillmore Street near the Pacific Heights district which is mostly made up of men and wom-en in their thirties, 47.8% of them single, and 38.15% married. The median annual household income is $91,573 and only about 9.1% of the households have children(18).

#1 Greenest City in U.S. and Canada

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San Francisco Analysis: San Francisco Demographics

Below is a selectionof data collected on San Fran-cisco by the Paragon real Estate Group:

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San Francisco Analysis: San Francisco Demographics

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San Francisco Analysis: Economic Outlook

Despite a sluggish national economy, California, namely the Bay Area, has remained ahead of the curve when it comes to recovering from the hardships of the past few years. Job growth is what is keeping the economy strong in San Francisco. Below are a few of the positive economic conditions for Cali-fornia, according to the UCLA Anderson Forecast(19):

1. Jobs should expand by 2% a year both in 2013 and 2014.2. The unemployment rate will average 9.1% in 2013 and de-

crease to 8.1% in 2014.3. Real personal income will grow by 2.3% in 2013 and 3.5%

in 2014.

The past few years have been extremely difficult for the retail industry, especially fashion. Spending was down and the luxury sector in particular saw a decrease in sales. The New Guard is positioned in a mid price point range with products ranging up to $400.

The news that California’s economy is improving at a faster rate than the rest of the country means will be spending again in the higher-end fashion market.

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San Francisco Analysis: Fillmore Street Fillmore Street in San Francisco, CA is home to an eclectic collection of boutiques from individually owned to more well known names like Marc by Marc Jacobs and Ralph Lauren. When tourists are visiting and ask locals where they should go to shop Fillmore Street is always on the list of recommendations. The area was named “one of America’s best shopping streets” by US News who also stated, “Counterbalanc-ing New York as a coastal heavyweight, San Francisco establishes West Coast culture…Fillmore Street is the best place to catch the up-and-coming trends”(20). Fillmore Street contains 4 shoe stores, 42 clothing stores and 38 restaurants. Fillmore Street retail space rents range from $60/sqft-$80/sqft(22). Fillmore Street is also home to the Annual Fill-more Street Jazz Festival, “The largest Free Jazz Festival on the West Coast” which draws 100,000 visitors to the area over Independence Day Weekend. This festival is a celebration of Fillmore Street’s glittery history as the home to jazz clubs where music elites such as Ella Fitz-gerald and Duke Ellington performed (21).

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Trade Shows

The FN Platform is the area of the Magic Market Week trade show in Las Vegas, NV devoted to the footwear industry catering to the men’s, women’s and children’s markets. Vendors encompass a broad range of price points and styles and include established companies as well as new ones just emerging into the marketplace making it one of the most wide-ranging trade shows in existence(23). Twice a year more than 500 vendors attend with the fall event occurring in February and the spring event in Au-gust. Attendees can also attend seminars hosted by top industry professionals ranging from retail storeowners to representatives from the National Shoe Retailers Association. Past seminar top-ics have included “Maximizing Your True Potential”, “Inventory Management- A Lesson in Rejecting Low Turn and Poor Cash Flow”, and “Old School…Meet New School”(24). The goal of the tradeshow is to not only provide retailers with a broad selection of designs and styles but to also help by educating them in prac-tical trends relevant to the current market. They are also focused on supporting the future of the footwear industry by awarding student scholarships(23).

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Trade Shows

The FFANY New York Shoe Expo is held four times a year in February, June, August and November/December. The association rep-resents over 800 footwear brands and works to promote New York as the “recognized nation-al center of fashion trade and commerce and aims to be the best venue for both national and international footwear industry events”(25). The organization is also heavily involved in philanthropy including and event they put on through a partnership with QVC. Called “”FFANY Shoes on Sale”. The event is held in New York’s Central Park with all proceeds going to breast cancer research and education. The shoes are donated by over 90 companies and are sold at half MSRP (manufacturer’s suggested retail price). Since it’s inception they have raised over $42 Million(26).

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Trade Shows

The Transit Footwear and Accessories Show runs in conjunction with the LA Fashion Market in Los Angeles, CA five times a year in January, March, June, July, and August. The events cater to “contemporary boutiques, better re-tailers and fashion influencers”. Most of the brands in attendance are well known vendors such as Jeffrey Camp-bell and Steve Madden, but new and emerging brands are also present(27). The event also puts on a number of spe-cial events for their attendees including “50 Years of Fashion at the CMC” and “Marketing for Retailers”(28).

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Target Market

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Target Market: Demographics

The primary market consists of women whose shopping habits are equally motivated by their ideals as their need for self-expression. For this reason, when using VALS to segment the market, the primary market would be considered Thinkers and Believers as well as Experiencers and Makers(29). They want their apparel to coincide with their personal beliefs, but they don’t want to have to sacrifice fashion for it. They still want to be able to express their personal style and have an array of options with which to do that with.

The primary market for The New Guard is women between the ages of 25-40 years old, college edu-cated and has studied business, literature, or psychology. She is a health conscious pet owner who does her grocery shopping at Whole Foods or Trader Joes. She volunteers with pet rescue organizations but also has a subscription to Vogue. She is conscious of her spending and usually only makes clothing and shoe purchases for a special event or for work. She is single or married, with no kids.

Target Market: Psychographics

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Target Market: Geographics

Our primary customers will live within San Francisco primarily in the neighbor-hoods of the Mission, Nob Hill, Russian Hill, and Pacific Heights. The area where The New Guard will be located also con-tains mid to high-end retailers like Marc by Marc Jacobs and Ralph Lauren, pri-mary shopping destinations for our target market. Buffalo Exchange is also located here and is a popular watering hole for fashion savvy yet economical shoppers.

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Customer Profile: Target CustomerName: AnastasiaOccupation: Sales Rep Clear Channel OutdoorIncome: $50,000/yrNeighborhood she resides in: Russian Hill

Anastasia is a 29-year-old female vegetarian who went to college on the East Coast at Virginia Tech. She has a degree in English Literature and is currently getting her MBA. She has worked in marketing and currently holds a position as a sales representative for Clear Channel Outdoor. She lives in Russian Hill with a roommate and she is single and has no children. She shops for shoes either for a special occasion or to replace worn out pairs. She mostly frequents DSW for her shoe needs, but visits Fillmore Street regularly because she likes the fact that the boutiques carry brands that are new and unique. Her work wardrobe is professional during the week mostly consisting of blazers and slacks, and her weekend attire is relaxed with a Bohemian feel. She mainly shops for clothes and shoes she can wear to work and during the weekend. Incentives such as “DSW Re-wards” or email marketing coupons will give her the initiative to visit certain stores when she may not be in need of anything in her wardrobe.

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Customer Profile: Secondary MarketDemographics: The secondary target market is women between the age of 25-40 years old who are single or married with no children. She prefers shopping for the newest designer who already has a reputation and is well-known. She gets her style inspira-tion from fashion magazines such as Vogue and In Style Magazine. She shops main-ly at retailers who have a customer reward program and frequently send their cus-tomers coupons. She is professionally achieved, and is socially active hosting dinner parties and organizing group activities. Her work wear is professional and polished while her weekend attire is relaxed but put together. They make apparel and shoe purchases based purely on aesthetics and do not often ask questions about what it is made from or where it is made.

Psychographics:

The secondary market consists of women whose shopping habits are mostly motivated by being trendy and to impress others. For this reason, when using VALS to segment the market, the secondary mar-ket would be considered Achievers and Strivers(30). Their goal is to be seen by their peers, in the workplace and in social environments, as stylish, fashionable and ahead of the curve. They want to already own what is in the most current magazine rather than waiting for the prod-ucts to go on sale.

Name: Molly~ Non-VegetarianOccupation: AttorneyIncome: $90,000/yrNeighborhood she resides in: Nob HillRelationship Status: Married, no children

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Customer Profile: Tertiary Market The New Guard’s tertiary market will be comprised of mostly tourists who are visiting Fillmore Street because they heard of the array of shopping boutiques from research or friends who live in the area. Since we will be located on a busy shopping street we increase our chances of women stopping in who were just passing by and may not have heard of us. Other members of our tertiary market would be women from Marin County who are visiting the city for the day for shopping with their friends. Fillmore Street is a popular shop-ping destination for women who live outside of the city and it’s reputation alone attracts women who may not have heard of us or are outside of our marketing reach. For example, Lauren seen here is a political strategy planner living in Washington D.C. who vistis San Francisco once a year to see friends. She loves exploring the city and shopping in small boutiques with different hard to find pieces. Fill-more Street is one of her favorite destinations because of it’s varied styles and personal attention she receives in smaller stores.

Name: Lauren~ Non-VegetarianOccupation: Political Strategy PlannerIncome: $60,000/yrNeighborhood she resides in: Washington D.C.Relationship Status: Single

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Survey Analysis In order to better understand the demographics, shopping patterns and social aspects of our target market I conducted a survey of 97 women between the ages of 25-35. The surveys were conducted in Yer-ba Buena Gardens, on Fillmore Street and Union Street, and in several businesses. The survey contained 20 questions about age range, level of education, relationship status, as well as shopping choices and what motivates their shopping habits.

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Survey Analysis: Correct Assumptions

Women mostly purchase 1-3 pairs of shoes a month The majority of those surveyed have at least a college level education

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Survey Analysis: Correct Assumptions

The majority of those surveyed are single The main motivator for shopping at a particular store is product selection

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Survey Analysis: Correct Assumptions

People’s main motivator for being a vegan or vegetarian is health over animal welfare The majority of those surveyed are employed full-time

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Survey Analysis: Incorrect Assumptions

Women in San Francisco make most of their shoe purchases in big box stores like Nordstrom or Macy’s

Women in San Francisco would pay more for a pair of shoes if they were eco-friendly

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Survey Analysis: Incorrect Assumptions

Women in San Francisco read local magazines on a regular basis The majority of women spend $31-$60 on a pair of shoes

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Survey Analysis: Incorrect Assumptions

Women are skeptical about buying shoe brands they have not heard of

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Survey Analysis: Conclusions

In order to gain more information from the market without making the survey too lengthy a few of the questions had “Other” as an option if their answer was not represented by the choices given them. Through this tool I was able to find out that there were competitors I had not previously thought of. Local boutiques which I added as competitors as an outcome of this survey are Shoe Biz and Wasteland. National companies listed were Aldo, Zara and Bloomingdales. Lastly, online retailers I had not yet listed as competitors were Piperlime and Zappo’s and twelve responders listed Nordstrom’s website as the main place they purchase their shoes. After conducting my survey I became more comfortable with my positioning as a mid-priced level boutique whose product selection is comprised of little known designers and brands. While my price point is higher than the $61-$90 the women who par-ticipated in my survey usually pay for a pair of shoes, my original assumption was that they would not normally pay more than $60. This willingness decreases the efforts I have to go to in order to convince them to spend more on a pair of shoes.

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Survey Analysis: Conclusions The fact that product selection is my market’s main motivator for shopping in a specific store also goes in my fa-vor. Stores such as Aldo or Steve Madden carry only one brand of shoes, while I offer a larger selection and assortment by carrying 5 different shoe brands. Women can shop in my boutique for the shoe that fits their particular desired role that day be it strolling through the city or dancing at the Top of the Mark. I was also surprised at the fact that most of the women surveyed would purchase a pair of shoes made by a brand they had not heard of. This speaks to the unique styles of the women of San Francisco. I believe they are more adventurous when it comes to their wardrobe because of the vast selection of stores available to them. While most cities do have the typical high-end stores we have such as Bloomingdale’s, Louis Vuitton and Burberry, these stores are more attractive to the many tourists who visit San Francisco than the locals. San Francisco is home to an abundance of privately owed boutiques that bring lesser-known designers to us those living in other cities would usually not have access to. This ability to choose apparel and footwear that fits our specific style is what makes San Franciscans more bold shoppers. My boutique invites our customers to be more willing to try new things and deviate from the norm by creating a sense of exclusivity that attracts women.

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Focus Group Analysis

In addition to conducting a survey I also hosted a focus group of thirteen women who fit into my target market and my secondary market to introduce my products and get feedback on the shoes themselves and my pricing strategy. Although focus groups are usually for producers to test out new products and I do not produce my shoes, I felt the fact that these shoes were new to my target market meant that gaining feedback in a more relaxed setting with an open dialogue would garner some insight not accomplished by my survey alone. I began the event by inviting them to touch and feel the shoes to get a sense of the craftsmanship that goes into them. I did not reveal they were all made from man-made materials until after I got their input about the style and feel of the shoes. I simply stated I was proposing a thesis that involved opening a shoe boutique where I would be selling shoes by smaller not as well-known companies. Once they started asking more questions about who made them and where they were sold I revealed the story of each designer and the fabrics used to make them. However, I did this after asking each of them how much they would pay for each pair. Most of the women stated they would pay $100 for each of the faux leather and suede pairs, which were Cri De Couer and Olsenhaus, $50 for the Melissa brand and $75 for the Re-neu shoes. Once they found out the shoes Cri De Coeur, Olsenhaus and Beyond Skin were not made of leather or suede they each picked them back up and inspected them again, even more than before remarking on the disbelief that they were not real leather or suede. This is the reac-tion I was expecting having known the caliber of my products was above what people typically think of when they hear of “vegan shoes”. The group enjoyed hearing the stories and even said that after hearing about the care and technique that goes into creating each pair they would pay between $150-$200 a pair. They stated that although they had not been concerned about animal wellbeing before when shopping for shoes, the fact that no animals were harmed in making the shoes did in fact make them more attractive.

“Buying these shoes would eliminate the guilt I feel when buying yet another pair of shoes that I don’tneed but have to have.”

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Merchandising Plan

45

Brands All brands carried by The New Guard do not just focus on animal wellbeing, but the wellbeing of all living things. They create shoes from high quality, non-animal products in the most economical ways possible. Multiple factory visits, strict sourcing guidelines and high moral codes are what make these companies stand apart from larger corporations who have lost touch with the reason they started their company to begin with.

Beyond Skin Cri De Coeur

Olsen Haus Reneu

Melissa Sustainable Shoes

Big Buddha

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Beyond Skin

“Genuinelynot Leather”

Beyond Skin is a U.K. based ethical footwear label, doing what they can to trade in a manner that is kind to our fellow hu-mans, animals and wherever possible our planet. They are passion-ate about making a difference while staying true to their philosophy; that of creating gorgeous, empowering footwear for discerning, style-led ladies. They work closely with their factories in Spain so they are confident that no-one is exploited in the creation of their shoes and strive to source their components and fabrics as close to their facto-ries as they possibly can to try and reduce their carbon footprint. They source only the finest and most luxurious fabrics, mak-ing their shoes kind and comfy for your feet. They are always on the lookout for the most innovative fabrics and processes to create shoes that are exciting and comfortable(31).

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Beyond SkinFall/Winter Collection

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Cri De Couer Gina Ferraraccio and Julie Dicterow established Cri de Coeur in 2008. The design duo chose the name from the French expression that translates literally to “cry from the heart.” Cri de Coeur symbolizes their heartfelt desire to change the face of the fashion footwear and accessory markets by providing stylish, contemporary products that are ethically produced. Their mission is to “help ethical fashion saturate the future market of retail by exciting a dialogue that will demand that these ideals be met industry-wide – because the planet and its inhabitants depend on it.” Cri De Coeur collection consists of the highest quality vegan materials – including Ultrasuede made from recycled plastics, eco-PU that’s low-VOC, breathable and biodegradable, organic cotton, hemp and reclaimed wood. They ensure their products adhere to their high standards by being committed to choosing vendors who abide by their ideals of earth-friendly manufacturing pro-cesses and fair treatment of workers(32).

“Style Conscious with a Conscience: Ethical Contemporary Fashion”

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Cri De CoeurFall/Winter Collection

50

Olsen Haus Olsen Haus- Pure Vegan was founded by Elizabeth Olsen in August of 2008 in New York City. Her mission is to merge passions for design, fashion, function with being a voice for animals, the environment, transparent business practices and unwavering values in ethical and social responsibil-ities. Through Olsenhaus Elizabeth is able to speak for the animal kingdom specifically, but also about the connection of all living beings on this planet and the collective consciousness beyond. Olsenhaus was created to illustrate that plun-dering, cruelty, and greed are not synonymous with true style. Olsenhaus and Elizabeth have received extensive press both domestically and international-ly, from print media including Vogue, Marie Claire, In style, Oprah, Lucky, Nylon, Paper, The New York Times, and The Wall St Journal(33).

“Pioneering. Eco. Luxury. Style. Consciousness.”

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Olsen HausFall/Winter Collection

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Melissa Melissa Sustainable Shoes is a leading brand of footwear manufacturer Grendene. The thermoplastic technology for Melissa was devel-oped exclusively by and for Grendene and is lead-ing the way for sustainable practice for design, fashion and manufacturing. There have been over 50 million pairs of Melissa plastic shoes manufac-tured in the last 25 years and they are available in 80 countries. All Melissa plastic shoes are created with a zero waste ethos and particular attention is paid to the life cycle of materials. Melissa recycles 99.9% of factory water and waste, and they recycle overstock styles into next season’s collection(34).

“Sustainable Shoes”

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MelissaFall/Winter Collection

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Reneu by Neuaura

Eco-Conscious- Animal -Free

Neuaura is committed to bringing quality, unique footwear that is animal free and eco-friendly. They do their best to ensure their manufacturing pro-cess and materials leave minimal impact on our planet. Founded in 2007, Neuaura provides an assortment of footwear ranging from summer sandals to faux fur lined winter boots. They do their best to ensure the manufacturing process and materials leave minimal impact on our planet. A portion of Neuaura's manufacturing is done in a factory located in Southern Brazil. which is part of a union that decided to take the responsibility of solid waste of the entire production process seriously and make it less harmful to the environment. The proper separation of waste at the factory lev-el ensures that everything that can be reused is recycled and goes back to the industrial process. Each factory that is part of the union and has implemented the re-cycling practice in their facility, stamps a green seal on all the boxes which certifies this practice on their prod-ucts. The seal is printed on all NEUAURA shoeboxes so consumers can identify that the shoes were manufac-tured in a green facility(35).

55

ReneuFall/Winter Collection

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Big Buddha Big Buddha is a handbag company owned by Steve Madden that is known for their versatile designs, lightweight fabrics and functionality for the “girl on the go”. The lines are “animal friendly, stylish, and won’t break the bank”. Steve Madden’s acquisition of the company has allowed them to greatly increase their channels of distribution thus expanding their customer reach(36).

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ReneuFall/Winter Collection

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Taska

Made from Cruelty-Free Materials

Taska founder Nadya Asti-Rose launched her brand in 2012 after working for 16 years in sales and marketing for over 25 fashion brands. Having gotten her degree in fashion design in 1997 Nadya became “pas-sionate about getting back to her roots in design”. Each of her bags is made by hand in Toronto and is made 100% from man-made materials(37).

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TaskaFall/Winter Collection

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Vendor Information

S hoe/ H andbag B rand

O rder M in imums

P aymen t D ue D at e

S h i p p ing F orm

R eta i l P r i c e

Beyond Skin $1,000 Upon shipment

UPS Ground- 2 Days $100-$513

Cri De Coeur $1,500 Upon shipment UPS Ground $113-$180

Olsenhaus 8 pairs per

style/color, min. order of 3 styles

W/in 30 days of notice of shipment

UPS Ground $140-$225

Melissa Upon

shipment Fed Ex $75-$150

Reneu 6 pairs/color, or 12 pairs/color

Upon shipment UPS Ground $84-$94

Big Buddha 12 units Upon Shipment UPS $24-$76

Taska 6 units Upon shipment FOB Toronto $25-$160

 

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Vendor Order & Delivery CalendarFall/Winter

S M T W T F S S M T W T F S S M T W T F S S M T W T F S1 2 3 4 1 2 3 4 5 1 2 3 4 5 1 2 3 4

5 6 7 8 9 10 11 6 7 8 9 10 11 12 6 7 8 9 10 11 12 5 6 7 8 9 10 1112 13 14 15 16 17 18 13 14 15 16 17 18 19 13 14 15 16 17 18 19 12 13 14 15 16 17 1819 20 21 22 23 24 25 20 21 22 23 24 25 26 20 21 22 23 24 25 26 19 20 21 22 23 24 2526 27 28 29 30 31 27 28 29 30 27 28 29 30 31 26 27 28 29 30 31

S M T W T F S S M T W T F S S M T W T F S S M T W T F S1 1 2 3 1 2 1

2 3 4 5 6 7 8 4 5 6 7 8 9 10 3 4 5 6 7 8 9 2 3 4 5 6 7 89 10 11 12 13 14 15 11 12 13 14 15 16 17 10 11 12 13 14 15 16 9 10 11 12 13 14 15

16 17 18 19 20 21 22 18 19 20 21 22 23 24 17 18 19 20 21 22 23 16 17 18 19 20 21 2223 24 25 26 27 28 25 26 27 28 29 30 31 24 25 26 27 28 29 30 23 24 25 26 27 28 29

31 30

S M T W T F S S M T W T F S S M T W T F S S M T W T F S1 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6

2 3 4 5 6 7 8 8 9 10 11 12 13 14 7 8 9 10 11 12 13 7 8 9 10 11 12 139 10 11 12 13 14 15 15 16 17 18 19 20 21 14 15 16 17 18 19 20 14 15 16 17 18 19 20

16 17 18 19 20 21 22 22 23 24 25 26 27 28 21 22 23 24 25 26 27 21 22 23 24 25 26 2723 24 25 26 27 28 29 29 30 28 29 30 28 29 30 3130 31

Order  Due  Dates  F/WDelivery  Window  F/W

March June September December

2014January April July October

February May August November

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Vendor Order & Delivery CalendarSpring/Summer

S M T W T F S S M T W T F S S M T W T F S S M T W T F S1 2 3 4 1 2 3 4 5 1 2 3 4 5 1 2 3 4

5 6 7 8 9 10 11 6 7 8 9 10 11 12 6 7 8 9 10 11 12 5 6 7 8 9 10 1112 13 14 15 16 17 18 13 14 15 16 17 18 19 13 14 15 16 17 18 19 12 13 14 15 16 17 1819 20 21 22 23 24 25 20 21 22 23 24 25 26 20 21 22 23 24 25 26 19 20 21 22 23 24 2526 27 28 29 30 31 27 28 29 30 27 28 29 30 31 26 27 28 29 30 31

S M T W T F S S M T W T F S S M T W T F S S M T W T F S1 1 2 3 1 2 1

2 3 4 5 6 7 8 4 5 6 7 8 9 10 3 4 5 6 7 8 9 2 3 4 5 6 7 89 10 11 12 13 14 15 11 12 13 14 15 16 17 10 11 12 13 14 15 16 9 10 11 12 13 14 15

16 17 18 19 20 21 22 18 19 20 21 22 23 24 17 18 19 20 21 22 23 16 17 18 19 20 21 2223 24 25 26 27 28 25 26 27 28 29 30 31 24 25 26 27 28 29 30 23 24 25 26 27 28 29

31 30

S M T W T F S S M T W T F S S M T W T F S S M T W T F S1 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6

2 3 4 5 6 7 8 8 9 10 11 12 13 14 7 8 9 10 11 12 13 7 8 9 10 11 12 139 10 11 12 13 14 15 15 16 17 18 19 20 21 14 15 16 17 18 19 20 14 15 16 17 18 19 20

16 17 18 19 20 21 22 22 23 24 25 26 27 28 21 22 23 24 25 26 27 21 22 23 24 25 26 2723 24 25 26 27 28 29 29 30 28 29 30 28 29 30 3130 31

December

2014January April July October

February May August November

Order  Due  Dates  Sp/SuDelivery  Window  Sp/Su

March June September

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Competitive Position

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Competitive Advantages

My product is very well made, mostly not available in a store, and varies from casual to elegant. Just because two people are vegetarians or vegans does not mean they have the same style. My store offers sneakers, high heels and flats for almost every social or professional situation, which brings in a more diverse clientele. My main competition is online retailers, national stores such as DSW and Nordstroms, and local boutiques within my price point and target market. By making these shoes available in an easily accessible store my primary target mar-ket will save time by being able to visit one location rather than spending hours going from store to store searching out a shoe that meets their requirements. Most vegans and vegetarians who do not wear leather or suede are forced to shop online because the truly great brands are simply not available in stores. This results in time wasted waiting and returning shoes that they were not able to try on before purchasing. While some prefer the ease of shopping online from comfort of their couch, the majority of clothing and shoe shoppers still like to shop in a store environ-ment because they like to experience the product before they buy it. It is especially important to try on shoes be-cause unlike clothing they must fit your particular foot shape and arch.

My competitive advantage exists in my product mix, the size of my store, and the infusion of a social issue being in the DNA of our business concept.

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Competitive Advantages

I have a competitive advantage over my competitors because the size of the boutique allows me to offer customers a more personal experience, which makes them feel more appreciated. A salesperson at larger stores such as DSW or Macy’s sees so many people a day that they are not likely to remember you when you return, let alone introduce you to new styles when you return based on your previous purchases. Employees in my store will talk to each customer about their needs and wants and use this insight to help them to select their ideal shoe. We will also track styles and brands our customers buy so we can send them information when something comes in they may like, or be able to make suggestions when they return. When a salesperson remembers your name and what you purchased you feel more attended to and in turn this makes the experience more memorable to the cus-tomer. Another reason a smaller store is an advantage is that I will be more invested and knowledgeable in the product I carry. Since I will be the one doing the buying I can educate my staff on the designer, where the prod-ucts are made, who is wearing them, etc. Building up unknown brands can be difficult. So my strategy is to be well versed in the background of each designer and position them as already accepted by those women turn to for style and fashion inspiration such as actresses. This gives the brand credibility and positions them as the authority in the advancements in shoe design.

Superior customer service is what turns a first time customer into a repeat customer.

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SWOT Analysis

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Competitor Analysis The New Guard’s competition ranges from local independently owned boutiques, national retailers and online retailers. These businesses cover all spectrums from designer to small brand designers and the online retailer especially are able to compete when it comes to prices due to their lack of overhead as compared to a brick and mortar store. Below is an analysis of our main competitors:

Retailer # of Locations Retail Type 2011 Sales Price Point

DSW 348 Discount $2 Million Low-Mid

Nordstrom 225 Department Store $10.5 Million (Includes all

departments)

Mid-High

Macy’s 830 Department Store $26.4 Million (Includes all

departments)

Low-High

Aldo 1,600 Specialty Store $1.5 Billion Internationally

Mid

Zara 1,770 Fast Fashion $16.7 Billion Internationally

Mid

 

National/International Competitors

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Competitor Analysis: Local

Retailer # of Locations Specialty Customers Price Point

Crosswalk Shoes 1 High-end comfort shoes

Men & Women Mid-High

Gimme Shoes 3 Trendy, practical shoes

Men & Women High

Paolo Shoes 2 Made in Italy; own line

Men & Women Mid

Heidi Says 1 Varies from Italian made to casual

Women High

Shoe Biz 5 Casual, limited editions

Men & Women Low-Mid

Wasteland 1 in San Francisco (4 in California)

Rock, vintage Women Low-Mid

 

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Competitor Analysis: Local Pros/Cons

Retailer Pro Con

Crosswalk Shoes Carries hard to find European brands Cranky sales people, no returns, small inventory

Gimme Shoes Varied selection High price point, lack of customer service

Paolo Shoes Italian made and designer owned Poor customer service, complaints of quality, high price

Heidi Says Name brand designers, atmosphere High price, customer service

Shoe Biz Large variety, hard to find styles Customer service varies from store to store

Wasteland Unique styles, hard to find vintage High price, customer service

 

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Competitor Analysis: Online

Retailer Specialty Selection Pro Con

Lulus.com Emerging designers

Shoes, clothing, accessories

Takes returns, international shipping

Limited quantity

MooShoes.com Vegan Shoes, accessories Selection Not trendy or stylish

Piperlime.com Discount designs Shoes, clothing, accessories

Selection, price Customers complain of used products

Zappos Discount Shoes, clothing Selection, price Do not ship to Canada

 

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Marketing Strategy

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Overview The goal of our marketing plan is to position ourselves as a boutique that offers fresh products that are exclusive to our store in San Francisco. We want to portray ourselves as a company who holds ourselves to high standards when it comes to our choices of brands and products. In order to depict this brand ID we will use a combination of marketing elements including store events, monthly sales promotions, print advertising, social media, digital marketing, and direct mailings. We will also employ a public relations company to han-dle the initial “Grand Opening” marketing and planning. A more detailed outline of these plans are listed in the following sections. In addition to these promotional tools, we will create brand collateral using cohesive branding, which is discussed in section 9.0: Branding.

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Objectives

1. Achieve 5% sales growth in year 2. 2. Utilize 2 new technological advancements within first year

such as social media outlets to maximize exposure and at-tract new customers.

3. Achieve 200 social media followers within first 8 months of opening.

4. Utilize brand logo consistently on all marketing and collabo-rative materials so it becomes immediately identifiable with our company.

5. Maintain an email contact list of 200 within the first year of opening.

6. Establish ourselves as experts in the vegan footwear/design-er footwear community.

7. Build product awareness of our brands so they become more familiar to a larger population of shoppers within San Fran-cisco.

8. Attend 2 trade shows per year to get a more hands on buy-ing experience and become educated on brands from brand representatives.

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Marketing Mix

Our goal is to introduce San Francisco women to new shoe designers whose products are fashionable, use innovative and new fabrics and do not harm the envi-ronment. Our boutique style is more intimate than larger department stores and allows us to offer a more personal shopping experience. We believe in increasing the ex-posure of new brands that adhere to our core values and giving our customers the opportunity to purchase shoes exclusive to our boutique in San Francisco.

Product The New Guard will be employing a Cost-Plus pricing strategy in which the Initial Mark Up will be 50%. This strategy allows us to ensure we have ample revenues to cover cost of the product and keep a positive cash flow. The 50% mark up is also a price our customer is willing to pay based on a survey conducted by The New Guard (and focus group). With our selling price being in the mid-high price point range our pricing strategy also promotes the high quality of our product and is a competitive price point based on companies considered our main competi-tors offering similar quality shoes.

Price

By choosing to place their products in my boutique my vendors have the advantage of being in a smaller en-vironment because their shoes will not get lost in the mix. In larger department stores such as Macy’s and Nordstrom shoppers flock to the brands they know and overlook ones they have not heard of. However, in my store there will only be five brands allowing the customer to spend time with each style. In addition, shoppers on Fillmore Street have an expectation they will be exposed to new brands and ap-preciate the differentiation from mass produced shoes that everyone has.

Place The New Guard will enlist a variety of promotional tools which are listed below and explained in greater detail in the following sections:

• Store events• Monthly sales promotions• Print Media• Social Media• Digital Marketing• Direct Mail

Promotion

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Store Events: Grand Opening Although The New Guard will not have a PR Agency on their payroll on a monthly basis, we feel it is necessary for the Grand Opening in order to get the initial message out to the right media outlets. The agency we will be using is Provocateur Media based in San Francisco. The event will act like a “soft opening” and will not be open to the public. It will be “invitation only” which will include both friends, industry professionals from media outlets, as well as vendor representatives. The purpose of the event is to get a feel for how people react to the product and to have a chance to speak with the media about our boutique’s image and goals. Gen-erating “buzz” and curiosity is the ultimate objective.

Cost- $4,500 (PR Agency, refreshments, invitation printing & postage)

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Store Events: Trunk Show For the spring and fall trunk shows we will invite a representative from a line we carry to be in the store for a day to promote their upcoming lines and take pre-orders from our customers. The representatives will have samples so customers can feel and see the product before they buy it. Invitations to these events will be distributed via our email list and a sign will be placed in the window to inform pass-ersby of the event. Trunk shows are a way to excite custom-ers by offering them a “first-hand look” at product making them feel special and ahead of the curve. It is also a chance to strengthen our relationship with the vendor and allows them to connect with the final user. The party atmosphere created by music, appetizers and spirits will allow us to get the customer to really open up and relax so we can get to know their likes, dislikes and interests.

Cost- $500 (Refreshments, signage, email invitation de-sign)

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Store Events: Monthly PromotionsIn addition to the previously outlined events, The New Guard will be holding monthly promotions ranging from sales to student collaborations. There are also promotions for non-profit fundraising. Below is an outline of these promotions by month.

Month Promotion Details Execution Cost

February Grand Opening Party Invite only cocktail party Mailed invitation, PR campaign $4,500

March New Spring/Summer Arrivals

Informing customers of new shoes arrivals Mailed Catalogue $683

April SPCA Donation Week 10% of sales donated to SF SPCA E-Blast, Store Signage $324

May AAU Student Designed Shopping Bags

Collaboration w/AAU Design Students- 100% of

sales donated to Rocket Dog Rescue

E-Blast, Store Signage $324

June Family & Friends Party Employees invite family & friends who receive

10% off Printed Tickets $300

July Fillmore Jazz Festival 10% off Full Price Weekend E-Blast $24

August Semi-Annual Clearance Sale

Additional 20% Sp/Su Styles E-Blast, Store Signage $324

September Trunk Show Brand rep in attendance. Customer’s get 10% off

Spring 2015 orders. E-Blast, Store Signage $324

October

November Black Friday 8am-10am- Addt’l 20%

off sale, 10am-Close-10% Off Full Price

E-Blast, Store Signage $324

December “Our Gift to You” Promotion

15% off coupon sent to customers for the

holidays E-Blast $300

January Shoe Drive Customers who donate

old shoes receive 10% off a new pair

E-Blast, Store Signage $324

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Print Advertising Local magazine advertising will be a part of our marketing plan beginning a month before the Grand Opening. After conducting research on the customer base and target market of San Francisco based publications I decided the following magazines would have the best reach for my specific target market:

Publication Months of Advertising Cost for 1 month Print Circulation Female Audience

7x7 Magazine February, August $6,380 for 1/3 pg. 50,000/month 62%

San Francisco Magazine February, August $6,105 for 1/3 pg. 75,000/month 56%

Bay Fashion Magazine February, August $2,500 for ½ pg. Unknown Unknown

 

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Print Advertising: 7x7 Magazine 7x7 Magazine has a circulation of 50,000/month with distribution channels of direct mail, newsstands and retail locations, hotels and events. The average age of their reader is 35 with females making up 65% of their readership. In addition, 25% of their readers spend over $5,000/year on apparel and footwear. We will be advertising with 7x7 twice a year, once in their March spring Fash-ion issue and a second time in their September fall Fashion issue. These are the issues our target mar-ket will be most likely to read the publication and when our reach will be greatest(38).

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Print Advertising: San Francisco Magazine San Francisco Magazine has a readership of 56% females with an average age of 46 years old. They have a circulation of 75,000/month with 80% of their readers visiting or contacting an adver-tiser and 38% visiting an advertiser’s website. On top of advertising in 7x7’s fashion issues in March and September, we will be advertising with San Francisco Magazine during these months for their fashion issues(39).

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Print Advertising: Bay Fashion Magazine Bay Fashion Magazine is one of the newest pub-lications in the area and focuses on the fashion industry in the Bay Area and around the world. Articles and con-tent are targeted towards a large part of The New Guard’s target market of fashion influencers. The publication utilizes four distribution channels not unlike 7x7 and San Francisco Magazine, including retail/newsstand locations, hotels, events, and direct mail(40).

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Social Media: Pinterest Pinterest has many tools for allowing your customer to share your product with other like-minded people who could become our tertiary customer. It allows you to put “Pin It” buttons directly on your website so your customer can pin directly to Pinterest. By tracking the comments as well as the amount of times the images are re-pinned we can turn this into a valuable research tool. By observing other images they are pinning whether it be shoes, clothes or other interests, we can gain a better insight into their interests and use this information to better our business. A study done by Sephora actually found that their “Pinterest follower spends 15 times more money on Sephora.com that the average Facebook fan”. The site also allows businesses to track pinning activity and “find out which pins get the post repins, who pins them, and what else people pin alongside them”(41).

Cost: $96/mo ($12/hr, 8 hrs/mo)

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Social Media: Twitter Twitter is a very useful promotional tool we will use to inform our followers of events and store promotions. By starting conversations centered on events our target customers are interested in, the Oscars, Fashion Week, we can en-gage them without directly promoting our products. Twitter also allows businesses to measure their follower growth, fol-lower quality and engagement, reach, traffic and conversion. In addition, Twitter educates business owners on products and programs that can explain how to maximize your business’s exposure(42).

Cost: $96/mo ($12/hr at 8 hrs/mo)

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Digital Marketing: Website Homepage The New Guard will maintain a website in order to keep out customer aware of what is going on in the boutique. The site will contain store information such as hours and events. It will also be a place where customers can view the new collections before visiting the store. The site will contain Pinterest “pin” buttons so they can share images and information with their friends and others in their Pinterest community. Visitors to our website will also be able to register to receive our email marketing so they can stay abreast of events. Customer testimony and Press will also be listed as we attract the attention of the community.

85

Digital Marketing: Website “New Arrivals Page”

86

Digital Marketing: Website ‘Events” Page

87

Digital Marketing: Advertising with Apartment34.com Apartment34.com is a San Francisco based life-style blog that focuses much of its content on fashion. A combination of national and local advertisers use this site, which allows them to reach a broader viewer base. Their advertising options include exclusive ad tiles, sponsored giveaways, content marketing campaigns, and brand part-nership and creative collaborations. The New Guard can utilize all the options on a case-by case basis as our pro-motional campaigns change from month-to-month. One example of brand partnership and sponsorship the site has collaborated on was with Old Navy in which the post “Shades of Grey” focuses on how to wear a monotone color palette. The post includes several outfit combinations and at the end a list of brands the model is wearing allows the viewer to know where to purchase the pieces that make up the outfits. In addition, a note at the end of the post states, “This post was sponsored by Old Navy. Check out Old Navy’s latest fashion lineup in store or online at oldnavy.com. Thank you for supporting posts that keep Apartment 34’s doors open!” and the Old Navy logo follows it with a link to their website. By creating a similar sponsorship we can expand the knowledge of our boutique as well as our brands with little cost(43).

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Direct Mail For a more personal feeling we will also be compiling a customer contact database of emails and home addresses that we will use to contact them directly about promotions, special events and new arrivals. We will also use this con-tact list to let customers know when their favorite brand has a new style available or we re-ordered a certain shoe they wanted but was not available. This gives us the competitive edge of making our customer feel special knowing we under-stand their specific tastes and make the extra effort to tailor a note to them specifically. Below is an example of one of our bi-yearly catalogues. :

Cri De Coeur

Page 3

Olsen Haus

Page 4

Beyond Skin

Page 5

Lorem Ipsum Dolor [Insert Date]

Spring 2014 Catalogue

3

A. Vestibulum quam. B. Nulla quis sem.

(item #

C. Cras et sem.

(item # XXXX) $000.00

D. Vivamus eu turpis.

(item # XXXX) $000.00

A B

D C

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Public Relations The New Guard will be employing PR firm Provocateur Media in San Francisco, CA to handle the initial grand opening event and press relations. This company is a lifestyle PR Agency specializing in the promotion of lifestyle companies small and large, lo-cal and national. The following page is an example of a press release that will be sent to local media outlets.

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Public RelationsFOR  IMMEDIATE  RELEASE  

   

The New Guard BRINGS  CLASSY  FOOTWEAR  TO  SAN  FRANCISCO  

 UPMARKET  FOOTWEAR  BOUTIQUE  ANNOUNCES  IT’S  INAUGURAL  OPENING  ON  FILLMORE  STREET  ON  MARCH  22ND,  2014.    The  latest  addition  to  the  Fillmore  Fashion  District,  The New Guard,  offers  their  customers  a  chance  to  get  their  hands  on  the  latest  footwear  styles  from  some  of  the  most  innovative  and  chic  up-­‐and-­‐coming  designers  in  the  industry.  Most  of  their  collections  are  exclusive  to  their  boutique  and  cannot  be  found  anywhere  else  in  the  Bay  Area.      Claire  Anderson,  owner  and  buyer  for  The New Guard  ,  scours  the  globe  for  the  newest  designs  in  footwear  from  companies  who  are  pioneers  in  curating  innovative  fabrics  and  techniques  to  create  shoes  which  are  modern  and  classy  as  well  as  durable  for  striding  around  our  hilly  city.      Through  importing  styles  emblazoned  with  signature  geometric  prints  out  of  Great  Britain,  and  cheeky,  bold  colored  flats  from  Spain,  they  offer  their  customer  a  chance  to  be  the  first  to  have  distinctive  designs  from  companies  profiled  in  Vogue,  Marie  Claire,  and  Lucky  Magazine,  just  to  name  a  few.    San  Franciscan  women  are  sure  to  enjoy  the  rich  Italian  fabrics  and  refined  designs,  strong  enough  to  climb  from  Union  Square  to  California  Street,  while  looking  darn  good  doing  it.      

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Visual Merchandising

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Store Theme The ambiance of The New Guard will be reminiscent of Parisian decor with soft colors, antique furniture, lush carpets and cozy over-stuffed seating. The inspiration for the decor came from images of European boutques that were designed to have a feel of authnticity and coziness. The small size and vintage designs of European shops is not a deterent, but makes the experience more comfortable and personal. We want the customer to feel as if they are trying on shoes in their own bedroom with their girl-friends. The decorative mirrors and armoir full of shoes in the sitting area help to create a mood that is comfortable and girly at the same time. When the customer walks into the boutique they should feel at home and like they can take their time. Shopping for shoes should not be throwing on a pair while sitting on a cold hard bench and looking at your reflection from just the ankles down. Women want to take their time, walk around for a minute to see if the shoes are com-fortable and see the whole look from head to toe. We have created a mood and atmosphere that is relaxed and fun with each individual peice of fixtures and decor helping to create this atmo-sphere.

FranceItaly

Germany

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Floorplan

Specifications:Size- 1,500 square feetShelving- 5 shoes per 5’ shelf (45 shoes displayed on shelving,)Display Table 1- 5x4 (20 shoes dis-played)Display Table 2- 3x10 (32 shoes dis-played)

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Floorplan

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Boutique Facade

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Window Design

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Interior Design: Try-On Area

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Interior Design:Cashwrap

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Interior Design: Focus Wall

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Company Branding

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LogoBusiness Card

Gift Certificate

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Shopping Bag

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Operational Plan

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Organizational ChartOwner:  

-­‐Product  buying  -­‐Product  markdowns  -­‐Event/Promo:ons  planning  -­‐Vendor  rela:ons  -­‐Invoices  -­‐Trade  show  visits  -­‐Monthly  sales  goals    

Store  Manager:  -­‐Overseeing  of  sales  associates  -­‐Maintaining  and  achieving  sales  goals  both  monthly  and  daily  -­‐Sales  associate  schedules  including  requests  off  -­‐Customer  rela:ons,  complaints  and  correspondence  -­‐Hiring/Dismissing  of  employees  -­‐Management  of  cash  register    

Sales  Associates  (3)  

-­‐Customer  service  -­‐Product  knowledge  -­‐Gaining  customer  contact  info  -­‐Introduce  customers  to  website  -­‐Inform  customers  of  events  -­‐Store  cleaning  in  a.m.    

Contracted  Employees  

Digital  Marke:ng  Manager  (10  hours/mo.)  

Accountant  (Yearly  Taxes)  

Photographer  (twice  a  year)  

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Employment Each employee contract will be on an “at will” basis. They will be hired on a 90 day introductory period whereas their abili-tites to perform the job satisfactorily will be evaluated. If at the end of this period they are not seen as being able to perform the job they will be terminated. They are required to sign and abide by a non-disclosure contract which states they are not permitted to share any of The New Guard’s confidential infor-mation including:• Customer lists• Financial information• Marketing strategies• Customer proprietary information• Vendor information

Employee Classifications• Regular Full-Time- Works at least 32 hours in a 7 day period • Contracted- Not employees of the company but perform

work based on a contractual agreement.

Paid Time Off Once an employee has worked for 3 consecutive months they will be available for paid time off (PTO), which will accrue at .83 days per month equalling 10 days per year. The second year of employment they will receive 1 day of PTO per month equalling 12 days per year. Requests for days off must be re-ceived by the store manager 2 weeks before the requested date for approval.

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Employee Compensation Sales associates compensation will begin at $12/hour and the store manager will be com-pensated $35,000 annually. Each sales associate will be eligible for a $.50/hour salary increase first after their 90 day introductory period and every 6 months thereafter capping at $15/hour. The store manager will be eligible for a 3% salary increase every 12 months capping at $40,000/year. Additional salary increases will be on a case-by-case basis and the sole discretion of the store owner. Paychecks will be dispersed every other Friday.

HolidaysThe New Guard will be closed for the following Holidays:• Christmas Day• New Years Day• Thanksgiving Day

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Return Policies

The New Guard will accept returns or exchanges for non-worn prod-ucts within 15 days of purchase with receipt and will receive a full refund in the form of the original payment. No returns or exchanges will be accepted without a reciept. Shoes must have original box and price sticker on bottom of shoe to prove they have not been worn. Damaged product will be evalu-ated on a case-by-case basis and refunds will be at the sole discretion of the store manager and owner.

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Boutique OperationsAddress:

1234 Fillmore StreetSan Francisco, CA 94109

Hours: Mon-Sat 11am-7pmSunday 12 pm-5 pm

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Personal Selling Strategy

Where did you find your shoes? (Compliment them)- Opens customer dialogue up so salesperson can find out what the customer like about the shoes they are wearing (or dislike) and use that as a selling technique for our shoes.

Approach

1. Exclusive brands we have sought out to bring to the customer making it more convenient for them.

2. Merging innovative fabrics, high quality, and style3. We want our customers to be the first to have it (trunk shows)

Presentation: Value Story of Brand

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Personal Selling Strategy: Handling Objections

Objection 1: Aren’t man-made fabrics cheaper than leather and suede and fall apart more easily?

Answer: Recent technologies have allowed the creation of more sustainable fabrics and products that hold up as well as leather and suede.

Objection 2: If it is man-made why is it so expensive?

Answer: The quality of the fabrics is very high (some imported from Italy) and the products are made in the best factories in the world.

Objection 3: Why don’t I just buy Steve Mad-den or BCBG non-leather products since they are cheaper but made of the same thing?

Answer: Steve Madden and BCBG may have non-leather products but their production method produces products of much lesser quality. Their pro-duction methods are also bad for the environment whereas the brands I carry make extra efforts to produce the best product with limited impact on the environment.

Objection 4: I like the way my leather shoes and jackets wear over time and get a “worn-in” look. I can’t get that with faux leather…

Answer: The faux leather fabrics used today in higher end garments and shoes do in fact wear a lot like real leather getting that worn in look and coloration without the issues of your shoes stretching out and becoming too big which is a common problem in leather shoes.

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Social Responsibility The New Guard will work to ensure all aspects of our business and those of our vendors are in accordance with the law and do our best to adhere to the strict criteria we set for ourselves in re-gards to the environment and animal and human rights. We will touch base with our vendors once a month to stay abreast of their business dealings such as factories and production. The carbon footprint of the day-to-day business operations will be decreased by use of reus-able shopping bags, using email marketing as our primary marketing tool over direct paper mailings, and recycling and composting whenever possible. The New Guard will help to promote local philanthropic organizations through donations, e.g. having a percent of sales go towards an organization and motivating our customers to donate their old shoes by offering them a discount for every pair donated. Donated shoes will be given to vari-ous San Francisco organizaitons for the homeless. Any shoes deemed unwearable will be sent to the appropriate recycling centers, not thrown away. In addition, we will work to further the education of students within the industry who wish to build their resume or portfolio. We will do this by contracting student photographers for advertising and window design collaborations with visual merchandising students. Gaining hands-on experi-ence is important in learning real-life knowlegde of the industry and a valuable learning tool. We will give the students credit in the advertisement as well as store signage for windows, e.g. “Designed by Academy of Art Fashion Merchandising Students” so their work will be appreciated by the public.

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Financial Plan

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Assortment Plan The New Guard will carry 5 shoe lines and 2 handbag lines. In addition to the handbag line we will also carry hand-bags from one of the shoe lines, Cri De Coeur. All the brands offer fall/winter and spring/summer lines. A detailed assort-ment can be found in the Appendex. Below is a table of what percent of sales each brand makes up broken down by season:

Fall

SpringBrand % of Sales

Beyond Skin 48%

Cri De Coeur 20%

Olsenhaus 23%

Melissa 4%

Reneu 4%

Big Buddha 2%  

Brand % of Sales

Beyond Skin 20%

Cri De Coeur 30%

Olsenhaus 28%

Melissa 4%

Reneu 6%

Big Buddha 4%

Taska 8%  

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Assortment Plan: ShoeClassifications

Shoe  Classifica-ons  

Flat  33%  

Heel  31%  

Boot  36%  

Ballet   Casual  

S-le8o   Wedge   Ki8en   Dress  

Mid  

Boo-e  

Flat   Heeled  

Tall  

Flat   Heeled  

% of Total Shoe Inventory

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Assortment Plan: HandbagClassifications% of Total Handbag Inventory

Handbag  Classifica.ons  

Small  Handbag  43%  

Medium  Handbag  24%  

Large  Handbag  33%  

Pouchle=e   Mini   Bowling   Hobo  

Evening  

Tote   Shoulder  

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Start Up Expenses The New Guard’s initial startup capital is $358,480 with opening inventory making up $245,412. In the case of my boutique, I will be investing in antique and refurbished display tables and other visual merchandising pieces. In order to decrease our carbon footprint we will be purchasing used items that have a history and are not mass pro-duced. This has lead to a higher than usual initial investment, however in the long run the higher quality means we will not need to replace them as quickly. A further breakdown of what comprises our initial startup capital expenses is below:

Startup Capital Spending Planand

Monthly Depreciation Expense

Item Detail $ Amount Depreciate ?# Months of Useful Life

Monthly Depreciation

Expense

Technology and PhonesCash Register, Fax/Copier, Printer, PC,

Phones,Software5,927.00$ Yes 60 98.78$

Selling Floor and Backstock FixturesFloor Fixtures/Shelves, Display Tables, Jewelry

Cases7,750.00$ Yes 60 129.17$

Leasehold Improvements (Material & Labor)Flooring, Paint, Electrical, Light Fixtures, Fitting

Rooms, Doors, Signage, Awning & Labor12,000.00$ Yes 60 200.00$

Rent Deposit 3 Months Rent Deposit 30,000.00$ No n/a

Wages and Salaries 3 Months 23,616.00$ No n/a

Marketing Startup Initial Marketing Campaign 20,525.00$ No n/a

Opening Inventory Cost BOM$ Inventory 245,412.00$ No n/a

Other Start Up Expenses Permits, Insurance, Utility Deposits, Supplies 3,250.00$ No n/a

Contingency Reserve Extra Cash for Unforeseen Expenses and Repairs 5,000.00$ No n/a

Working CapitalCash Needed in first months to keep bank funds

positive 5,000.00$ No n/a

Total 358,480.00$ 427.95$

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Sales & Inventory by Month: Year 1 In the first year The New Guard projects about $1 Million in sales with a 5% growth projected for year two and an 8% increase in year three. Our net sales will be the highest in our second quarter during the summer months of May, June and July when our inventory is the highest following the delivery of our spring lines. The fourth quarter represents the second highest sales quarter following the delivery of our fall lines. Below is the breakdown of our sales and inventory by month and year as well as an analysis of sales by quarter:

Sales and Inventory Flow

Year 1

year one GM% 44.1% shrink % 5.0%IMU% 49.7%year 2 growth 5.0%year 3 growth 8.0%

Jan-Yr0 Feb-Yr1 Mar-Yr1 Apr-Yr1 May-Yr1 Jun-Yr1 Jul-Yr Aug-Yr1 Sep-Yr1 Oct-Yr1 Nov-Yr1 Dec-Yr1 Jan-Yr1 Q1-Yr1 Q2-Yr1 Q3-Yr1 Q4-Yr1 Yr1 Total

BOM $488,274 $550,770 $578,430 $579,624 $503,106 $440,150 $420,073 $481,187 $543,578 $559,275 $514,561 $491,798 $488,274 $579,624 $420,073 $559,275

Net Sales $47,556 $86,650 $92,734 $110,052 $114,310 $93,928.0 $33,534.0 $51,354.0 $73,851.0 $94,648.0 $113,745.0 $89,548.0 $226,940 $318,290 $158,739 $297,941 $1,001,910COGS 24,003$ 43,700$ 51,478$ 66,614$ 63,425$ 52,135$ 20,138$ 33,420$ 36,926$ 52,081$ 62,589$ 53,776$ $119,181 $182,174 $90,484 $168,446 $560,285GM$ $23,553 $42,950 $41,256 $43,438 $50,885 $41,793 $13,396 $17,934 $36,926 $42,567 $51,156 $35,772 $107,759 $136,116 $68,255 $129,495 $441,625GM% 49.5% 49.6% 44.5% 39.5% 44.5% 44.5% 39.9% 34.9% 50.0% 45.0% 45.0% 39.9% 47.5% 42.8% 43.0% 43.5% 44.1%

MD$ -$ -$ 9,273.40$ 22,010.40$ 11,431.00$ 9,392.80$ 6,706.80$ 15,406.20$ -$ 9,464.80$ 11,374.50$ 17,909.60$ $9,273 $42,834 $22,113 $38,749 $112,970MD% 0.0% 0.0% 10.0% 20.0% 10.0% 10.0% 20.0% 30.0% 0.0% 10.0% 10.0% 20.0% 4.1% 13.5% 13.9% 13.0% 11.3%

Purchases -Retail $488,274 $112,430 $118,643 $107,838 $61,047 $68,501 $87,940 $103,032 $131,719 $93,241 $64,131 $108,044 $119,758 $827,184 $217,488 $327,991 $291,933 $1,664,596Purchases -Cost $245,412 $67,796 $65,580 $59,054 $33,823 $41,949 $43,933 $56,251 $71,529 $55,612 $32,159 $54,215 $64,969 $437,842 $119,705 $183,393 $151,343 $892,282

Shrinkage $2,378 $4,333 $4,637 $5,503 $5,716 $4,696 $1,677 $2,568 $3,693 $4,732 $5,687 $4,477

EOM $488,274 $550,770 $578,430 $579,624 $503,106 $440,150 $420,073 $481,187 $543,578 $559,275 $514,561 $491,798 $499,621 $579,624 $420,073 $559,275 $499,621 $8,220,766

Avg Stk $519,522 $564,600 $579,027 $541,365 $471,628 $430,112 $450,630 $512,383 $551,427 $536,918 $503,180 $495,710 $549,275 $485,738 $501,028 $516,314 $509,373Stk:Sls 10.3 6.4 6.2 5.3 4.4 4.7 12.5 9.4 7.4 5.9 4.5 5.5Turn 0.4 0.7 0.3 0.6 1.97

Feb-Yr2 Mar-Yr2 Apr-Yr2 May-Yr2 Jun-Yr2 Jul-Yr2 Aug-Yr2 Sep-Yr2 Oct-Yr2 Nov-Yr2 Dec-Yr2 Jan-Yr2 Q1-Yr2 Q2-Yr2 Q3-Yr2 Q4-Yr2 Yr2 Total

BOM $499,621 $507,465 $272,938 $284,892 $236,255 $160,796 $127,904 $181,155 $236,640 $265,825 $239,673 $194,222 $499,621 $284,892 $127,904 $265,825

Net Sales $49,934 $90,983 $97,371 $115,555 $120,026 $98,624 $35,211 $53,922 $77,544 $99,380 $119,432 $94,025 $238,287 $334,205 $166,676 $312,838 $1,052,006COGS 25,097$ 45,729$ 53,834$ 69,695$ 66,359$ 54,527$ 21,237$ 35,232$ 38,974$ 54,945$ 66,031$ 56,710$ $124,660 $190,580 $95,443 $177,685 $588,369GM$ $24,837 $45,254 $43,537 $45,860 $53,667 $44,098 $13,974 $18,690 $38,569 $44,436 $53,401 $37,316 $113,627 $143,624 $71,233 $135,153 $463,637GM% 49.7% 49.7% 44.7% 39.7% 44.7% 44.7% 39.7% 34.7% 49.7% 44.7% 44.7% 39.7% 47.7% 43.0% 42.7% 43.2% 44.1%

MD$ -$ -$ 9,737.07$ 23,110.92$ 12,002.55$ 9,862.44$ 7,042.14$ 16,176.51$ -$ 9,938.04$ 11,943.23$ 18,805.08$ $9,737 $44,976 $23,219 $40,686 $118,618MD% 0.0% 0.0% 10.0% 20.0% 10.0% 10.0% 20.0% 30.0% 0.0% 10.0% 10.0% 20.0% $0 $0 13.9% 13.0% 11.3%

Purchases -Retail $60,274 -$138,995 $123,931 $95,806 $62,570 $80,526 $97,265 $128,279 $110,606 $88,135 $91,896 $122,392 $45,210 $238,903 $336,150 $302,423 $922,684Purchases -Cost $29,980 -$69,134 $61,642 $47,653 $31,122 $40,053 $48,378 $63,804 $55,014 $43,837 $45,708 $60,876 $22,487 $118,827 $167,197 $150,422 $458,933

Shrinkage $2,497 $4,549 $4,869 $5,778 $6,001 $4,931 $1,761 $2,696 $3,877 $4,969 $5,972 $4,701

EOM $507,465 $272,938 $284,892 $236,255 $160,796 $127,904 $181,155 $236,640 $265,825 $239,673 $194,222 $199,082 $284,892 $127,904 $265,825 $199,082

Avg Stk $503,543 $390,201 $278,915 $260,574 $198,526 $144,350 $154,530 $208,898 $251,233 $252,749 $216,947 $196,652 $391,229 $202,462 $202,881 $224,700 $275,465Stk:Sls 10.0 5.6 2.8 2.5 2.0 1.6 3.6 3.4 3.1 2.7 2.0 2.1Turn 0.6 1.7 0.8 1.4 3.82

Feb-Yr3 Mar-Yr3 Apr-Yr3 May-Yr3 Jun-Yr3 Jul-Yr3 Aug-Yr3 Sep-Yr3 Oct-Yr3 Nov-Yr3 Dec-Yr3 Jan-Yr3 Q1-Yr3 Q2-Yr3 Q3-Yr3 Q4-Yr3 Yr3 Total

BOM $199,082 $197,771 $223,572 $247,359 $229,582 $140,527 $93,589 $138,039 $185,770 $229,753 $224,131 $151,157 $199,082 $247,359 $93,589 $229,753

Net Sales $52,430 $95,532 $102,239 $121,332 $126,027 $103,556 $36,971 $56,618 $81,421 $104,349 $125,404 $98,727 $250,201 $350,915 $175,010 $328,480 $1,104,606COGS 26,352$ 48,015$ 56,525$ 73,180$ 69,677$ 57,253$ 22,299$ 36,994$ 40,923$ 57,692$ 69,332$ 59,545$ $130,893 $200,109 $100,215 $186,570 $617,787118

Sales & Inventory by Month: Year 2 & 3

Sales and Inventory Flow

Year 1

year one GM% 44.1% shrink % 5.0%IMU% 49.7%year 2 growth 5.0%year 3 growth 8.0%

Jan-Yr0 Feb-Yr1 Mar-Yr1 Apr-Yr1 May-Yr1 Jun-Yr1 Jul-Yr Aug-Yr1 Sep-Yr1 Oct-Yr1 Nov-Yr1 Dec-Yr1 Jan-Yr1 Q1-Yr1 Q2-Yr1 Q3-Yr1 Q4-Yr1 Yr1 Total

BOM $488,274 $550,770 $578,430 $579,624 $503,106 $440,150 $420,073 $481,187 $543,578 $559,275 $514,561 $491,798 $488,274 $579,624 $420,073 $559,275

Net Sales $47,556 $86,650 $92,734 $110,052 $114,310 $93,928.0 $33,534.0 $51,354.0 $73,851.0 $94,648.0 $113,745.0 $89,548.0 $226,940 $318,290 $158,739 $297,941 $1,001,910COGS 24,003$ 43,700$ 51,478$ 66,614$ 63,425$ 52,135$ 20,138$ 33,420$ 36,926$ 52,081$ 62,589$ 53,776$ $119,181 $182,174 $90,484 $168,446 $560,285GM$ $23,553 $42,950 $41,256 $43,438 $50,885 $41,793 $13,396 $17,934 $36,926 $42,567 $51,156 $35,772 $107,759 $136,116 $68,255 $129,495 $441,625GM% 49.5% 49.6% 44.5% 39.5% 44.5% 44.5% 39.9% 34.9% 50.0% 45.0% 45.0% 39.9% 47.5% 42.8% 43.0% 43.5% 44.1%

MD$ -$ -$ 9,273.40$ 22,010.40$ 11,431.00$ 9,392.80$ 6,706.80$ 15,406.20$ -$ 9,464.80$ 11,374.50$ 17,909.60$ $9,273 $42,834 $22,113 $38,749 $112,970MD% 0.0% 0.0% 10.0% 20.0% 10.0% 10.0% 20.0% 30.0% 0.0% 10.0% 10.0% 20.0% 4.1% 13.5% 13.9% 13.0% 11.3%

Purchases -Retail $488,274 $112,430 $118,643 $107,838 $61,047 $68,501 $87,940 $103,032 $131,719 $93,241 $64,131 $108,044 $119,758 $827,184 $217,488 $327,991 $291,933 $1,664,596Purchases -Cost $245,412 $67,796 $65,580 $59,054 $33,823 $41,949 $43,933 $56,251 $71,529 $55,612 $32,159 $54,215 $64,969 $437,842 $119,705 $183,393 $151,343 $892,282

Shrinkage $2,378 $4,333 $4,637 $5,503 $5,716 $4,696 $1,677 $2,568 $3,693 $4,732 $5,687 $4,477

EOM $488,274 $550,770 $578,430 $579,624 $503,106 $440,150 $420,073 $481,187 $543,578 $559,275 $514,561 $491,798 $499,621 $579,624 $420,073 $559,275 $499,621 $8,220,766

Avg Stk $519,522 $564,600 $579,027 $541,365 $471,628 $430,112 $450,630 $512,383 $551,427 $536,918 $503,180 $495,710 $549,275 $485,738 $501,028 $516,314 $509,373Stk:Sls 10.3 6.4 6.2 5.3 4.4 4.7 12.5 9.4 7.4 5.9 4.5 5.5Turn 0.4 0.7 0.3 0.6 1.97

Feb-Yr2 Mar-Yr2 Apr-Yr2 May-Yr2 Jun-Yr2 Jul-Yr2 Aug-Yr2 Sep-Yr2 Oct-Yr2 Nov-Yr2 Dec-Yr2 Jan-Yr2 Q1-Yr2 Q2-Yr2 Q3-Yr2 Q4-Yr2 Yr2 Total

BOM $499,621 $507,465 $272,938 $284,892 $236,255 $160,796 $127,904 $181,155 $236,640 $265,825 $239,673 $194,222 $499,621 $284,892 $127,904 $265,825

Net Sales $49,934 $90,983 $97,371 $115,555 $120,026 $98,624 $35,211 $53,922 $77,544 $99,380 $119,432 $94,025 $238,287 $334,205 $166,676 $312,838 $1,052,006COGS 25,097$ 45,729$ 53,834$ 69,695$ 66,359$ 54,527$ 21,237$ 35,232$ 38,974$ 54,945$ 66,031$ 56,710$ $124,660 $190,580 $95,443 $177,685 $588,369GM$ $24,837 $45,254 $43,537 $45,860 $53,667 $44,098 $13,974 $18,690 $38,569 $44,436 $53,401 $37,316 $113,627 $143,624 $71,233 $135,153 $463,637GM% 49.7% 49.7% 44.7% 39.7% 44.7% 44.7% 39.7% 34.7% 49.7% 44.7% 44.7% 39.7% 47.7% 43.0% 42.7% 43.2% 44.1%

MD$ -$ -$ 9,737.07$ 23,110.92$ 12,002.55$ 9,862.44$ 7,042.14$ 16,176.51$ -$ 9,938.04$ 11,943.23$ 18,805.08$ $9,737 $44,976 $23,219 $40,686 $118,618MD% 0.0% 0.0% 10.0% 20.0% 10.0% 10.0% 20.0% 30.0% 0.0% 10.0% 10.0% 20.0% $0 $0 13.9% 13.0% 11.3%

Purchases -Retail $60,274 -$138,995 $123,931 $95,806 $62,570 $80,526 $97,265 $128,279 $110,606 $88,135 $91,896 $122,392 $45,210 $238,903 $336,150 $302,423 $922,684Purchases -Cost $29,980 -$69,134 $61,642 $47,653 $31,122 $40,053 $48,378 $63,804 $55,014 $43,837 $45,708 $60,876 $22,487 $118,827 $167,197 $150,422 $458,933

Shrinkage $2,497 $4,549 $4,869 $5,778 $6,001 $4,931 $1,761 $2,696 $3,877 $4,969 $5,972 $4,701

EOM $507,465 $272,938 $284,892 $236,255 $160,796 $127,904 $181,155 $236,640 $265,825 $239,673 $194,222 $199,082 $284,892 $127,904 $265,825 $199,082

Avg Stk $503,543 $390,201 $278,915 $260,574 $198,526 $144,350 $154,530 $208,898 $251,233 $252,749 $216,947 $196,652 $391,229 $202,462 $202,881 $224,700 $275,465Stk:Sls 10.0 5.6 2.8 2.5 2.0 1.6 3.6 3.4 3.1 2.7 2.0 2.1Turn 0.6 1.7 0.8 1.4 3.82

Feb-Yr3 Mar-Yr3 Apr-Yr3 May-Yr3 Jun-Yr3 Jul-Yr3 Aug-Yr3 Sep-Yr3 Oct-Yr3 Nov-Yr3 Dec-Yr3 Jan-Yr3 Q1-Yr3 Q2-Yr3 Q3-Yr3 Q4-Yr3 Yr3 Total

BOM $199,082 $197,771 $223,572 $247,359 $229,582 $140,527 $93,589 $138,039 $185,770 $229,753 $224,131 $151,157 $199,082 $247,359 $93,589 $229,753

Net Sales $52,430 $95,532 $102,239 $121,332 $126,027 $103,556 $36,971 $56,618 $81,421 $104,349 $125,404 $98,727 $250,201 $350,915 $175,010 $328,480 $1,104,606COGS 26,352$ 48,015$ 56,525$ 73,180$ 69,677$ 57,253$ 22,299$ 36,994$ 40,923$ 57,692$ 69,332$ 59,545$ $130,893 $200,109 $100,215 $186,570 $617,787

Sales and Inventory Flow

Year 1

year one GM% 44.1% shrink % 5.0%IMU% 49.7%year 2 growth 5.0%year 3 growth 8.0%

Jan-Yr0 Feb-Yr1 Mar-Yr1 Apr-Yr1 May-Yr1 Jun-Yr1 Jul-Yr Aug-Yr1 Sep-Yr1 Oct-Yr1 Nov-Yr1 Dec-Yr1 Jan-Yr1 Q1-Yr1 Q2-Yr1 Q3-Yr1 Q4-Yr1 Yr1 Total

BOM $488,274 $550,770 $578,430 $579,624 $503,106 $440,150 $420,073 $481,187 $543,578 $559,275 $514,561 $491,798 $488,274 $579,624 $420,073 $559,275

Net Sales $47,556 $86,650 $92,734 $110,052 $114,310 $93,928.0 $33,534.0 $51,354.0 $73,851.0 $94,648.0 $113,745.0 $89,548.0 $226,940 $318,290 $158,739 $297,941 $1,001,910COGS 24,003$ 43,700$ 51,478$ 66,614$ 63,425$ 52,135$ 20,138$ 33,420$ 36,926$ 52,081$ 62,589$ 53,776$ $119,181 $182,174 $90,484 $168,446 $560,285GM$ $23,553 $42,950 $41,256 $43,438 $50,885 $41,793 $13,396 $17,934 $36,926 $42,567 $51,156 $35,772 $107,759 $136,116 $68,255 $129,495 $441,625GM% 49.5% 49.6% 44.5% 39.5% 44.5% 44.5% 39.9% 34.9% 50.0% 45.0% 45.0% 39.9% 47.5% 42.8% 43.0% 43.5% 44.1%

MD$ -$ -$ 9,273.40$ 22,010.40$ 11,431.00$ 9,392.80$ 6,706.80$ 15,406.20$ -$ 9,464.80$ 11,374.50$ 17,909.60$ $9,273 $42,834 $22,113 $38,749 $112,970MD% 0.0% 0.0% 10.0% 20.0% 10.0% 10.0% 20.0% 30.0% 0.0% 10.0% 10.0% 20.0% 4.1% 13.5% 13.9% 13.0% 11.3%

Purchases -Retail $488,274 $112,430 $118,643 $107,838 $61,047 $68,501 $87,940 $103,032 $131,719 $93,241 $64,131 $108,044 $119,758 $827,184 $217,488 $327,991 $291,933 $1,664,596Purchases -Cost $245,412 $67,796 $65,580 $59,054 $33,823 $41,949 $43,933 $56,251 $71,529 $55,612 $32,159 $54,215 $64,969 $437,842 $119,705 $183,393 $151,343 $892,282

Shrinkage $2,378 $4,333 $4,637 $5,503 $5,716 $4,696 $1,677 $2,568 $3,693 $4,732 $5,687 $4,477

EOM $488,274 $550,770 $578,430 $579,624 $503,106 $440,150 $420,073 $481,187 $543,578 $559,275 $514,561 $491,798 $499,621 $579,624 $420,073 $559,275 $499,621 $8,220,766

Avg Stk $519,522 $564,600 $579,027 $541,365 $471,628 $430,112 $450,630 $512,383 $551,427 $536,918 $503,180 $495,710 $549,275 $485,738 $501,028 $516,314 $509,373Stk:Sls 10.3 6.4 6.2 5.3 4.4 4.7 12.5 9.4 7.4 5.9 4.5 5.5Turn 0.4 0.7 0.3 0.6 1.97

Feb-Yr2 Mar-Yr2 Apr-Yr2 May-Yr2 Jun-Yr2 Jul-Yr2 Aug-Yr2 Sep-Yr2 Oct-Yr2 Nov-Yr2 Dec-Yr2 Jan-Yr2 Q1-Yr2 Q2-Yr2 Q3-Yr2 Q4-Yr2 Yr2 Total

BOM $499,621 $507,465 $272,938 $284,892 $236,255 $160,796 $127,904 $181,155 $236,640 $265,825 $239,673 $194,222 $499,621 $284,892 $127,904 $265,825

Net Sales $49,934 $90,983 $97,371 $115,555 $120,026 $98,624 $35,211 $53,922 $77,544 $99,380 $119,432 $94,025 $238,287 $334,205 $166,676 $312,838 $1,052,006COGS 25,097$ 45,729$ 53,834$ 69,695$ 66,359$ 54,527$ 21,237$ 35,232$ 38,974$ 54,945$ 66,031$ 56,710$ $124,660 $190,580 $95,443 $177,685 $588,369GM$ $24,837 $45,254 $43,537 $45,860 $53,667 $44,098 $13,974 $18,690 $38,569 $44,436 $53,401 $37,316 $113,627 $143,624 $71,233 $135,153 $463,637GM% 49.7% 49.7% 44.7% 39.7% 44.7% 44.7% 39.7% 34.7% 49.7% 44.7% 44.7% 39.7% 47.7% 43.0% 42.7% 43.2% 44.1%

MD$ -$ -$ 9,737.07$ 23,110.92$ 12,002.55$ 9,862.44$ 7,042.14$ 16,176.51$ -$ 9,938.04$ 11,943.23$ 18,805.08$ $9,737 $44,976 $23,219 $40,686 $118,618MD% 0.0% 0.0% 10.0% 20.0% 10.0% 10.0% 20.0% 30.0% 0.0% 10.0% 10.0% 20.0% $0 $0 13.9% 13.0% 11.3%

Purchases -Retail $60,274 -$138,995 $123,931 $95,806 $62,570 $80,526 $97,265 $128,279 $110,606 $88,135 $91,896 $122,392 $45,210 $238,903 $336,150 $302,423 $922,684Purchases -Cost $29,980 -$69,134 $61,642 $47,653 $31,122 $40,053 $48,378 $63,804 $55,014 $43,837 $45,708 $60,876 $22,487 $118,827 $167,197 $150,422 $458,933

Shrinkage $2,497 $4,549 $4,869 $5,778 $6,001 $4,931 $1,761 $2,696 $3,877 $4,969 $5,972 $4,701

EOM $507,465 $272,938 $284,892 $236,255 $160,796 $127,904 $181,155 $236,640 $265,825 $239,673 $194,222 $199,082 $284,892 $127,904 $265,825 $199,082

Avg Stk $503,543 $390,201 $278,915 $260,574 $198,526 $144,350 $154,530 $208,898 $251,233 $252,749 $216,947 $196,652 $391,229 $202,462 $202,881 $224,700 $275,465Stk:Sls 10.0 5.6 2.8 2.5 2.0 1.6 3.6 3.4 3.1 2.7 2.0 2.1Turn 0.6 1.7 0.8 1.4 3.82

Feb-Yr3 Mar-Yr3 Apr-Yr3 May-Yr3 Jun-Yr3 Jul-Yr3 Aug-Yr3 Sep-Yr3 Oct-Yr3 Nov-Yr3 Dec-Yr3 Jan-Yr3 Q1-Yr3 Q2-Yr3 Q3-Yr3 Q4-Yr3 Yr3 Total

BOM $199,082 $197,771 $223,572 $247,359 $229,582 $140,527 $93,589 $138,039 $185,770 $229,753 $224,131 $151,157 $199,082 $247,359 $93,589 $229,753

Net Sales $52,430 $95,532 $102,239 $121,332 $126,027 $103,556 $36,971 $56,618 $81,421 $104,349 $125,404 $98,727 $250,201 $350,915 $175,010 $328,480 $1,104,606COGS 26,352$ 48,015$ 56,525$ 73,180$ 69,677$ 57,253$ 22,299$ 36,994$ 40,923$ 57,692$ 69,332$ 59,545$ $130,893 $200,109 $100,215 $186,570 $617,787

Year 2

Year 3

119

Cash FLow Forecast With the initial startup loan of $358,480 combined with profit from sales, even with expenses and loan payments, The New Guard will be able to maintain a positive cash flow throughout the year. The highest available cash again is during the months of June and July when there are no losses. Following is a monthly breakdown of our cash flow forecast:

Cash Flow Forecast

Jan - Yr 0 Feb - Yr 1 Mar - Yr 1 Apr - Yr 1 May - Yr 1 Jun - Yr 1 Jul - Yr 1 Aug - Yr 1 Sep - Yr 1 Oct - Yr 1 Nov - Yr 1 Dec - Yr 1 Jan - Yr 1 Yr 1Startup Loan/Personal $$ $358,480

Less: Start-up Capital Expenditures $28,927

Equals: Available Start-up $$ $329,553

Profit or <Loss> (GM$-Expenses) -$19,650 $17,206 $15,244 $16,655 $22,539 $15,744 -$24,646 -$6,194 $11,793 $16,507 $22,867 $7,952 $96,016

Less: Monthly Incr. of Inv ( at Cost) $245,412 $31,411 $13,902 $600 -$38,459 -$31,642 -$10,091 $30,717 $31,358 $7,889 -$22,474 -$11,441 $3,932 $251,115

Less: Shrink and MDs (cost) $1,183 $2,155 $6,919 $13,685 $8,528 $7,008 $4,170 $8,940 $1,837 $7,062 $8,486 $11,135 $81,107

Plus: Depreciation Expense $428 $428 $428 $428 $428 $428 $428 $428 $428 $428 $428 $428 $5,135

Less: Principal Payments $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $21,509

Equals: Monthly Working Cash -$245,412 -$53,609 -$216 $6,361 $40,065 $44,288 $17,463 -$60,897 -$47,857 $703 $30,555 $24,457 -$8,479 -$252,579

Equals: Monthly Net Cash $84,141 -$53,609 -$216 $6,361 $40,065 $44,288 $17,463 -$60,897 -$47,857 $703 $30,555 $24,457 -$8,479

Cumulative Net Cash $84,141 $30,532 $30,317 $36,678 $76,742 $121,030 $138,493 $77,596 $29,739 $30,441 $60,996 $85,453 $76,974

120

Profit & Loss Except for the months of February, August and September The New Guard will be operating at a profit. The reason there are $19,440 and $24,436 losses in February and August respectively is due to our marketing expenses during these months. It is during these months that we will be advertising in print magazines for their fall and spring fashion issues. This loss is offset by our positive cash flow however. If our losses are higher than we project we will be decreasing our spending during these two months. Even with the losses during these three months we are projected to end year one with a $98,534 profit. Below is a breakdown of our profits and losses by month for year one:

P&L

Feb-Yr1 Mar-Yr1 Apr-Yr1 May-Yr1 Jun-Yr1 Jul-Yr1 Aug-Yr1 Sep-Yr1 Oct-Yr1 Nov-Yr1 Dec-Yr1 Jan-Yr1 Yr1 Total %/SlsNet Sales $47,556 $86,650 $92,734 $110,052 $114,310 $93,928 $33,534 $51,354 $73,851 $94,648 $113,745 $89,548 $1,001,910 100.0%

COGS $24,003 $43,700 $51,478 $66,614 $63,425 $52,135 $20,138 $33,420 $36,926 $52,081 $62,589 $53,776 $560,285 55.9%Merchandise GM$ $23,553 $42,950 $41,256 $43,438 $50,885 $41,793 $13,396 $17,934 $36,926 $42,567 $51,156 $35,772 $441,625 44.1%

Research & Development $0 0.0%

Merch. GM w/ R&D $23,553 $42,950 $41,256 $43,438 $50,885 $41,793 $13,396 $17,934 $36,926 $42,567 $51,156 $35,772 $441,625 44.1%

Wages $7,872 $7,872 $7,872 $7,872 $7,872 $7,872 $7,872 $7,872 $7,872 $7,872 $7,872 $7,872 $94,464 9.4%Commissions

Rent $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $120,000 12.0%Marketing Expense $19,267 $629 $629 $629 $629 $629 $14,767 $629 $629 $629 $629 $629 $40,324 7.2%

Travel expense $570 $1,377 $570 $1,377 $3,894 0.4%Health Insurance $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $3,000 0.3%

Insurance $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $7,200 0.7%Accounting/Books $2,000 $2,000 0.2%

BankingInterest Expense $323 $317 $312 $307 $301 $296 $290 $285 $280 $274 $269 $263 $3,517 0.4%

Depreciation $428 $428 $428 $428 $428 $428 $428 $428 $428 $428 $428 $428 $5,135 0.5%Utilities & Security $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $7,200 0.7%

Telephone $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $720 0.1%Supplies $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000 0.6%

Misc. Repairs et al $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $7,200 0.7%Credit Card Transaction Fee $951 $1,733 $1,854.68 $2,201.04 $2,286.20 $1,878.56 $670.68 $1,027.08 $1,477.02 $1,892.96 $2,274.90 $1,790.96 $20,038 2.0%

Shrinkage $1,183 $2,155 $2,306 $2,737 $2,843 $2,336 $834 $1,277 $1,837 $2,354 $2,829 $2,227 $24,917 2.5%Total Expense $43,203 $25,744 $26,012 $26,783 $28,346 $26,049 $38,042 $24,128 $25,132 $26,060 $28,288 $27,820 $345,609 34.5%

Profit/Loss -$19,650 $17,206 $15,244 $16,655 $22,539 $15,744 -$24,646 -$6,194 $11,793 $16,507 $22,867 $7,952 $96,016 9.6%

Credit Card Trans Fee rate 2%

Fixed Expenses $20,410 $20,410 $20,410 $20,410 $20,410 $20,410 $20,410 $20,410 $20,410 $20,410 $20,410 $22,410 $246,919 24.6%Variable Expenses $21,041 $3,179 $3,296 $3,637 $3,716 $3,303 $16,228 $2,441 $2,886 $3,296 $3,673 $3,183 $69,879 7.0%

Total Expenses $41,451 $23,589 $23,706 $24,046 $24,126 $23,713 $36,638 $22,851 $23,296 $23,706 $24,083 $25,593 $316,798 31.6%Operating Margin % -76.0% 45.1% 42.5% 44.6% 52.6% 43.3% -173.5% -27.4% 36.9% 44.3% 52.9% 28.5% 28.3%

BreakEven$ Volume -$54,548 $52,330 $55,724 $53,865 $45,879 $54,815 -$21,117 -$83,338 $63,111 $53,503 $45,506 $89,943 $355,673BreakEven Sales per day -$1,818.28 $1,744.34 $1,857.48 $1,795.50 $1,529.31 $1,827.18 -$703.91 -$2,777.94 $2,103.71 $1,783.42 $1,516.85 $2,998.11 $11,856

BreakEven Sales per hour -$227 $218 $232 $224 $191 $228 -$88 -$347 $263 $223 $190 $375 $1,482

121

Loan Repayment The New Guard will be funded by owner investment and by a small business loan of $107,544 to be paid back in five years at an interest rate of 3.6%.

Sales by QuarterThe New Guard

3-YearMerchandise

Inventory FlowSummary

Year 1 Year 2 Year 3

BOM $488,274 $499,621 $199,082

Sales $1,001,910 $1,052,006 $1,104,606Purchases $1,664,596 $922,684 $1,233,265

EOM $499,621 $199,082 $147,962

Avg Inv $509,373 $275,465 $183,549Turn 1.97 3.82 6.02

Q1-Yr1 Q2-Yr1 Q3-Yr1 Q4-Yr1 Yr1 Total Q1-Yr2 Q2-Yr2 Q3-Yr2 Q4-Yr2 Yr2 Total Q1-Yr3 Q2-Yr3 Q3-Yr3 Q4-Yr3 Yr3 Total

BOM Inventory $488,274 $579,624 $420,073 $559,275 $499,621 $284,892 $127,904 $265,825 $199,082 $247,359 $93,589 $229,753

Total Net Sales $226,940 $318,290 $158,739 $297,941 $1,001,910 $238,287 $334,205 $166,676 $312,838 $1,052,006 $250,201 $350,915 $175,010 $328,480 $1,104,606COGS $119,181 $182,174 $90,484 $168,446 $560,285 $124,660 $190,580 $95,443 $177,685 $588,369 $130,893 $200,109 $100,215 $186,570 $617,787GM$ $107,759 $136,116 $68,255 $129,495 $441,625 $113,627 $143,624 $71,233 $135,153 $463,637 $119,309 $150,805 $74,794 $141,910 $486,819GM% 47.5% 42.8% 43.0% 43.5% 44.1% 47.7% 43.0% 42.7% 43.2% 44.1% 47.7% 43.0% 42.7% 43.2% 44.1%

Purchases -Retail $827,184 $217,488 $327,991 $291,933 $1,664,596 $45,210 $238,903 $336,150 $302,423 $922,684 $321,213 $261,915 $344,304 $305,833 $1,233,265Purchases -Cost $437,842 $119,705 $183,393 $151,343 $892,282 $22,487 $118,827 $167,197 $150,422 $458,933 $159,768 $130,274 $171,253 $152,118 $613,412

EOM Inventory $579,624 $420,073 $559,275 $499,621 $284,892 $127,904 $265,825 $199,082 $247,359 $93,589 $229,753 $147,962

BOM/Avg Inventory $549,275 $485,738 $501,028 $516,314 $509,373 $391,229 $202,462 $202,881 $224,700 $275,465 $216,946 $177,764 $161,788 $188,251 $183,549

Turn 0.41 0.66 0.32 0.58 1.97 0.61 1.65 0.82 1.39 3.82 1.15 1.97 1.08 1.74 6.02

The New Guard 3-Year

MerchandiseInventory Flow

Summary

Year 1 Year 2 Year 3

BOM $488,274 $499,621 $199,082

Sales $1,001,910 $1,052,006 $1,104,606Purchases $1,664,596 $922,684 $1,233,265

EOM $499,621 $199,082 $147,962

Avg Inv $509,373 $275,465 $183,549Turn 1.97 3.82 6.02

Q1-Yr1 Q2-Yr1 Q3-Yr1 Q4-Yr1 Yr1 Total Q1-Yr2 Q2-Yr2 Q3-Yr2 Q4-Yr2 Yr2 Total Q1-Yr3 Q2-Yr3 Q3-Yr3 Q4-Yr3 Yr3 Total

BOM Inventory $488,274 $579,624 $420,073 $559,275 $499,621 $284,892 $127,904 $265,825 $199,082 $247,359 $93,589 $229,753

Total Net Sales $226,940 $318,290 $158,739 $297,941 $1,001,910 $238,287 $334,205 $166,676 $312,838 $1,052,006 $250,201 $350,915 $175,010 $328,480 $1,104,606COGS $119,181 $182,174 $90,484 $168,446 $560,285 $124,660 $190,580 $95,443 $177,685 $588,369 $130,893 $200,109 $100,215 $186,570 $617,787GM$ $107,759 $136,116 $68,255 $129,495 $441,625 $113,627 $143,624 $71,233 $135,153 $463,637 $119,309 $150,805 $74,794 $141,910 $486,819GM% 47.5% 42.8% 43.0% 43.5% 44.1% 47.7% 43.0% 42.7% 43.2% 44.1% 47.7% 43.0% 42.7% 43.2% 44.1%

Purchases -Retail $827,184 $217,488 $327,991 $291,933 $1,664,596 $45,210 $238,903 $336,150 $302,423 $922,684 $321,213 $261,915 $344,304 $305,833 $1,233,265Purchases -Cost $437,842 $119,705 $183,393 $151,343 $892,282 $22,487 $118,827 $167,197 $150,422 $458,933 $159,768 $130,274 $171,253 $152,118 $613,412

EOM Inventory $579,624 $420,073 $559,275 $499,621 $284,892 $127,904 $265,825 $199,082 $247,359 $93,589 $229,753 $147,962

BOM/Avg Inventory $549,275 $485,738 $501,028 $516,314 $509,373 $391,229 $202,462 $202,881 $224,700 $275,465 $216,946 $177,764 $161,788 $188,251 $183,549

Turn 0.41 0.66 0.32 0.58 1.97 0.61 1.65 0.82 1.39 3.82 1.15 1.97 1.08 1.74 6.02

122

Marketing Calendar The primary spending months for The New Guard on marketing will be February and August. The first month of operation for the boutique will be February where we will be spending $3,000 employing a public relations firm to handle our initial marketing and be hosting a “Grand Opening” event. During these months we will also be making the pay-ment for our March and September print advertising campaigns. The remaining months we will be spending $629 on our online presence including our website. For the year our marketing expense equals $40,324, which is 7.2% of sales in year one. An itemized list of our marketing expenses is below listed by month:

Marketing Calendar

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan TotalWebsite $16 $16 $16 $16 $16 $16 $16 $16 $16 $16 $16 $16 $192Event (Grand Opening) $1,500 1,500$ Magazine Print ADS (7x7) $6,380 $6,380 12,760$ Magazine Print ADS (Bay Fashion Magazine) $1,000 $1,000 2,000$ Magazine Print Ads (San Francisco Magazine) $6,105 $6,105 12,210$ Online searches (Google) $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 3,600$ PR: Provacateur Media $3,000 3,000$ Yahoo Ad Banner (PPC) $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 348$ Facebook Ad Banner (PPC) $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 3,600$ Catalogs printing x250 $653 $653 1,306$

Total 19,267$ 629$ 629$ 629$ 629$ 629$ 14,767$ 629$ 629$ 629$ 629$ 629$ 40,324$

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Growth Plan

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3 Year Plan: Addition of Athletic Footwear

Many athletic footwear companies are real-izing there is a market in eco-conscious and vegan footwear and are designing shoes for this market. Well-known brands such as Saucony and New Bal-ance both have popular vegan and eco-friendly lines and the companies adhere to our social responsibili-ty policies. Expanding our product line will increase our market share and profitability. It also gives our customer more assortmant to choose from which is one of the main reasons listed in our survey as the reason women shop in a particular store.

Saucony Jazz Lo Pro Vegan Saucony Women’s Bullet Vegan New Balance WW01

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5 Year Plan: Addition of Outerwear and Accessories

Vaute Couture is the creation of Leanne Mai-ly Hilgart, a vegan who in 2009 launched a line of outerwear made from ani-mal friendly materials.The fabrics used are recycled fabrics or are recyclable themselves. Her collection now includes clothing and accessories. In 2013 she was the first designer ever to show a 100% vegan line at New York Fashion Week which was called “game changing” by CNN. The addition of outerwear and acessories by Vaute Couture would flow nicely with the footwear concept of the store as both are thought of as additions to an outfit that are need-ed to complete it. The location of The New Guard being in San Francisco is also beneficial to carrying an outerwear line due to the climate.

126

“I have many, many shoes. Even if I don’t wear them, I like to have them around” - Giovanna Ferragamo

127

Appendix

128

Beginning in Middle School I developed a love of clothes. Not just shopping but a true study of trends in stores, what others were wearing and unheard of designers emerging and capturing headlines. While I knew fashion was the area I wanted to work in from the age of 12 I decided to play it safe and receive a BA degree in marketing to give myself more options upon graduation. I ended up in property management which was a position I excelled at but did not love. When I turned 27 I realized that if I did not take a chance and pursue what I wanted to do for the rest of my life I would end up staying in a job that was not fullfilling. At this point I had grown up in Maryland, gone to college in Maryland and was living in Baltimore, MD which had little to no fashion career potential. After pondering several cities to move to I decided on San Francisco mainly because my brother lived there and I thought starting over would be easier with family nearby. While researching “fashion jobs” in San Francisco the Academy of Art Univerisy was the first hit on Google. During my job research I realized that after spending 4 years in propert management I was not qualified for any position in the fashion industry I yearned for. I made a profession-al decision to go back to school in order to brush up on my knowledge of the industry and learn skills that would allow me to become a better job candidate. Three years later I am now in the position of my dreams, assisting buyers for a local women’s boutique. The decision to start over across the country was a difficult one to make but in the end I am very glad I did. I am in a position which is stimulating and fun at the same time. The Academy of Art is what gave me the knowledge and training which got me the job and made me a well-rounded hire.

Autobiography

129

Resume

Claire Anderson 1840 Clay Street, #101 San Francisco, CA 94109

T: 301-992-3211 E: Claireanderson35@gmail.com

Experience Assistant to the Buyer, Ambiance SF August 2013-Present

• Assist buyers in vendor appointment preparation • Enter new stock information into computer while analyzing selling, describing and pricing new

merchandise • Setting daily sales goals for all 4 stores and imputing selling data • Run reports and researching large amounts of data for selling, re-orders, inventory and markdowns • Take photos of new merchandise and upload them into the POS system

Stylist/ Sales Associate, Ambiance SF March 2013-August 2013

• Assemble individual wardrobes by assessing client needs and personal traits • Event specialist coordinating attire for specific functions requiring appropriate dress code • Developed skills necessary to tailor collections based on client height, body type, skin tone and

hair color to accent her best physical attributes

Director of Operations, Uomo European Menswear May 2011-January 2013

• Created database for maintaining vital day-to-day records, thereby decreasing margin of operational errors

• Designed and distributed company marketing tools, such as email announcements and promotional boards

• Collaborated with graphic designer to maintain company website by ensuring all vendor information was current, images of products were of the highest quality and company announcements were updated

• Managed client deliveries, tailor relations and event planning such as Trunk Shows • Ordered, received and imputed inventory by creating invoices and purchase orders

Education Academy of Art University February 2011-Present Expected Graduation Date: Fall 2013 Major: MFA Fashion with Emphasis in Fashion Merchandising

Degree: Master of Fine Arts GPA: 3.8

Frostburg State University August 2003-May 2007 Major: Marketing

Degree: Bachelor of Arts GPA: 3.5

Skills

• Made transition from sales associate to more focused position as stylist within 4 months of employment

• Multi-tasking capabilities attained from working in a fast-paced environment that demands knowledge of all products in store, how to accessorize entire wardrobes in a matter of minutes, and maintain multiple clients at once

• Understanding of email marketing computer programs, namely Constant Contact • Accomplished operational functions by being directly involved with vendor contacts,

wholesale orders and processing, and customer relations including special orders on custom pieces

130

Course Timeline

FSH 616: Dynamics of Fashion

FSH 631: Merchandising Principles

FSH 634: Textile & Other Raw Materials

Spring 2011

FSH 632: Trend Analysis & Product Dev.

FSH 637: Product Sourcing

GS 613: History of 20th C. Fashion Arts

Fall 2011

FSH 630: Fashion Market. & Promo.

FSH 675: Vis. Merch.: Image & Brand

GLA 601: Renaissance Art World & Clas.

Spring 2012

FSH 633: Management Concepts

FSH 801: Market Research

FSH 635: Creating Comp. Strat.

Fall 2012

131

Course Timeline

FSH 629: Intro. to Styling

GLA 671: Prof. Practices & Comm.

Summer 2013

FSH 801: Mktg Strat. & Plan.

FSH 801: Prod. Sourc. 7 Assor. Pl.

FSH 656: Fashion & Sust.

Spring 2013

FSH801: Thesis Wrapup

FSH 801: Visual Merch.

FSH 801: FInancial Planning

GLA 606: Crossing Borders

Fall 2013

132

Survey

133

Claire  Anderson  Academy  of  Art  University  MFA  Fashion  Merchandising    

 “As  Worn  By”  Survey    

 Age:_______________  

Occupation:_____________________________________________________  

Neighborhood  where  you  live:________________________________  

1. Where  do  you  buy  the  majority  of  your  shoes?  Check  all  that  apply.  

o DSW  

o Loehman’s  

o Macy’s  

o Local  Boutique      If  so,  which  one(s)?______________________________________  

o Online    If  so,  which  site(s)?________________________________________________  

o Other  If  so  please  list________________________________________________________  

2. How  many  pairs  of  shoes  do  you  purchase  in  a  6-­‐month  time  period?  

o 1-­‐3  

o 4-­‐8  

o 9  or  more  

3. What  is  your  main  motivator  to  buy  a  pair  of  shoes?  

o Special  Occasion  (Wedding,  vacation,  etc)  

o To  complete  an  outfit  

o Store  sale  

o Other  

 

4. How  much  do  you  usually  pay  for  a  pair  of  shoes?  

o $0-­‐$30  

o $31-­‐60  

o $61-­‐$90  

o Over  $90  

5. Would  you  pay  more  for  a  pair  of  shoes  if  they  were  eco-­‐friendly?    

o Yes  

o No  

6. What  is  your  main  motivation  for  shopping  at  a  particular  store?  

o Product  selection  

o Sale/Coupon  

o You  have  a  credit  card  for  the  particular  store  

o Customer  incentives,  i.e.  point  earning  systems  

7. Do  you  use  coupons  that  you  receive  via  email?  

o I  don’t  receive  coupons  via  email  

o No,  I  do  not  use  the  coupons  I  receive  via  email  

o Yes  

8. Do  you  ever  buy  shoe  brands  you  have  not  heard  of?  (If  no  continue  to  

Question  10)  

o Yes  

o No  

 

 

134

9. Do  you  research  the  unknown  brand  before  you  buy  it?  

o Yes  

o No  

10. Which  National  magazine(s)  do  you  read  on  a  regular  basis?  (Check  all  that  

apply)  

o Star  Magazine  

o Vogue  

o Lucky  Magazine  

o Newsweek  

o Other  Please  list______________________________________________________________  

11. Which  local  magazines  do  you  read  on  a  regular  basis?  (Check  all  that  apply)  

o 7x7  Magazine  

o San  Francisco  Magazine  

o Bay  Fashion  Magazine  

o Marin  Magazine  

12. What  is  your  age  range?  

o 20-­‐25  

o 26-­‐30  

o 31-­‐35  

o Over  35  

13.  Are  you  a  vegetarian  or  vegan?  

o Yes  

o No  (continue  to  question  9)  

14. What  is  your  main  motivation  for  being  vegan/vegetarian?  

o Animal  welfare  

o Health  

o Spouse  

15. What  is  your  level  of  education?  

o High  school  graduate  

o College  Graduate  

o Masters  Degree  or  higher  

o None  of  the  above  

16. What  is  your  employment  status?  

o Unemployed  

o Full  Time  

o Part  Time  

o Student  

17. Do  you  own  a  pet?  

o Yes  

• If  yes,  how  many  and  what  kind.  

______________________________________________________________________  

o No    

 

 

 

 

135

18. Do  you  volunteer  or  donate  to  any  causes?  (Check  all  that  apply)  

o Yes,  I  volunteer  

• If  yes,  which  organizations  do  you  volunteer  for?  

______________________________________________________________________  

o Yes,  I  donate  to  a  cause  

• If  yes,  which  organizations  do  you  donate  to?  

______________________________________________________________________  

o No  

19. What  is  your  relationship  status?  

o Single    

o In  a  relationship  or  engaged  

o Married  

20. How  many  children  do  you  have?  

o 0  

o 1  

o 2  

o More  than  2  

 

 

 

 

 

136

Focus Group Questionnaire

137

Claire Anderson Academy of Art University Graduate Student Fashion Merchandising

Shoe Knowledge Test

1. I own about ____________ pairs of shoes.

2. My shoes are made of (list all fabrics used)_______________________________

__________________________________________________________________

__________________________________________________________________

3. My shoes are produced in the countries of (list all)_______________________

__________________________________________________________________

__________________________________________________________________

4. The designers who have designed my shoes are (list all)______________________

__________________________________________________________________

__________________________________________________________________

5. The factories where my shoes are produced do not participate in forced child labor,

provide a safe work environment for their employees and pay their employees a

fair and livable wage: Yes No Unknown (Please circle one)

6. How sure are you on a scale of 1-10 (1 being the least sure) that all your shoes are

produced by environmentally safe and ethical standards? ___________

7. If you do not know, do you hope that all your shoes are made by environmentally

safe and ethical standards? Yes No Does not matter (Please circle one)

8. After completing this test how comfortable are you, on a scale of 1-10 (1 being the

least comfortable) with your knowledge of the production of the shoes you wear

everyday and the companies you support? ___________________

138

Assortment Plan

139

Class Vendor Sub-Class Color Target Whls Target RetailOpening

Units Opening COGOpening

RetailFlat Beyond Skin Ballet Black $119.00 $238.00 17 $2,023 $4,046Flat Beyond Skin Ballet Orange $119.00 $238.00 17 $2,023 $4,046Flat Beyond Skin Ballet Navy $119.00 $238.00 17 $2,023 $4,046Flat Beyond Skin Casual Black $120.00 $240.00 17 $2,040 $4,080Flat Beyond Skin Casual Turquoise $120.00 $240.00 17 $2,040 $4,080Flat Beyond Skin Casual Orange $114.00 $228.00 17 $1,938 $3,876Flat Beyond Skin Casual Green $114.00 $228.00 17 $1,938 $3,876Heel Beyond Skin Stilleto Bl/Pink $134.00 $268.00 17 $2,278 $4,556Heel Beyond Skin Stilleto Green $134.00 $268.00 17 $2,278 $4,556Heel Beyond Skin Stilleto Orange $156.00 $312.00 17 $2,652 $5,304Heel Beyond Skin Stilleto Orange $133.00 $266.00 17 $2,261 $4,522Heel Beyond Skin Stilleto Tan $133.00 $266.00 17 $2,261 $4,522Heel Beyond Skin Stilleto Black $133.00 $266.00 17 $2,261 $4,522Heel Beyond Skin Stilleto Orange $128.00 $256.00 17 $2,176 $4,352Heel Beyond Skin Stilleto Navy $128.00 $256.00 17 $2,176 $4,352Heel Beyond Skin Wedge Turquoise $134.00 $268.00 17 $2,278 $4,556Heel Beyond Skin Stilleto Orange $112.00 $224.00 17 $1,904 $3,808Heel Beyond Skin Stilleto Turquoise $112.00 $224.00 17 $1,904 $3,808Heel Beyond Skin Kitten Heel Black $127.00 $254.00 17 $2,159 $4,318Flat Beyond Skin Casual Oxford $134.00 $268.00 17 $2,278 $4,556Boot Beyond Skin Heeled Bootie Leopard $167.00 $334.00 17 $2,839 $5,678Boot Beyond Skin Heeled Bootie Turquoise $167.00 $334.00 17 $2,839 $5,678Boot Beyond Skin Heeled Bootie Black $130.00 $260.00 17 $2,210 $4,420Boot Beyond Skin Heeled Bootie Leopard $130.00 $260.00 17 $2,210 $4,420Boot Beyond Skin Tall Flat Boot Black $189.00 $378.00 17 $3,213 $6,426Boot Beyond Skin Tall Flat Boot Black $193.00 $386.00 17 $3,281 $6,562Casual Beyond Skin Casual Turquoise $69.00 $138.00 17 $1,173 $2,346Casual Beyond Skin Casual Purple $69.00 $138.00 17 $1,173 $2,346Casual Beyond Skin Casual Geometric $69.00 $138.00 17 $1,173 $2,346Loafer Cri-De-Coeur Casual Silver $60.00 $120.00 17 $1,020 $2,040Loafer Cri-De-Coeur Casual Back $60.00 $120.00 17 $1,020 $2,040Boot Cri-De-Coeur Heeled Bootie Black $150.00 $150.00 17 $2,550 $2,550Boot Cri-De-Coeur Heeled Bootie Red $75.00 $150.00 17 $1,275 $2,550Boot Cri-De-Coeur Heeled Bootie Gold $80.00 $160.00 17 $1,360 $2,720Boot Cri-De-Coeur Heeled Bootie Black $80.00 $160.00 17 $1,360 $2,720Heel Cri-De-Coeur Stilleto Black $67.00 $134.00 17 $1,139 $2,278Heel Cri-De-Coeur Stilleto Red $67.00 $134.00 17 $1,139 $2,278Heel Cri-De-Coeur Stilleto Rose $67.00 $134.00 17 $1,139 $2,278Boot Cri-De-Coeur Flat Bootie Black $72.00 $144.00 17 $1,224 $2,448Boot Cri-De-Coeur Flat Bootie Silver $72.00 $144.00 17 $1,224 $2,448Boot Cri-De-Coeur Mid Boot Black $80.00 $160.00 17 $1,360 $2,720Boot Cri-De-Coeur Mid Boot Brown $80.00 $160.00 17 $1,360 $2,720Boot Cri-De-Coeur Mid Boot Brown $80.00 $160.00 17 $1,360 $2,720Boot Cri-De-Coeur Mid Boot Gray $80.00 $160.00 17 $1,360 $2,720Boot Cri-De-Coeur Tall Heeled Boot Brown $80.00 $160.00 17 $1,360 $2,720Boot Cri-De-Coeur Tall Heeled Boot Gray $80.00 $160.00 17 $1,360 $2,720Boot Cri-De-Coeur Tall Heeled Boot Black $80.00 $160.00 17 $1,360 $2,720Boot Cri-De-Coeur Tall Heeled Boot Gray $80.00 $160.00 17 $1,360 $2,720Large Handbag Cri-De-Coeur Tote Bag Black $80.00 $160.00 5 $400 $800Large Handbag Cri-De-Coeur Tote Bag Black $80.00 $160.00 5 $400 $800Large Handbag Cri-De-Coeur Tote Bag Brown $80.00 $160.00 5 $400 $800Flat Olsenhaus Ballet Pink $65.00 $130.00 17 $1,105 $2,210Flat Olsenhaus Ballet Purple $65.00 $130.00 17 $1,105 $2,210Boot Olsenhaus Heeled Bootie Lizard $102.00 $204.00 17 $1,734 $3,468Heel Olsenhaus Stilleto Black/Pink $95.00 $190.00 17 $1,615 $3,230Heel Olsenhaus Stilleto Black/Gold $95.00 $190.00 17 $1,615 $3,230Boot Olsenhaus Heeled Bootie Pink $98.00 $196.00 17 $1,666 $3,332Boot Olsenhaus Heeled Bootie Gray $98.00 $196.00 17 $1,666 $3,332Boot Olsenhaus Heeled Bootie Red/Black $98.00 $196.00 17 $1,666 $3,332Heel Olsenhaus Stilleto Navy $98.00 $196.00 17 $1,666 $3,332Heel Olsenhaus Stilleto Purple $98.00 $196.00 17 $1,666 $3,332Boot Olsenhaus Tall Heeled Boot Black/Tan $115.00 $230.00 17 $1,955 $3,910Boot Olsenhaus Tall Flat Boot Tan $102.00 $204.00 17 $1,734 $3,468Boot Olsenhaus Tall Flat Boot Dr. Brown $102.00 $204.00 17 $1,734 $3,468Heel Olsenhaus Kitten Heel Navy $70.00 $140.00 17 $1,190 $2,380Heel Olsenhaus Kitten Heel Cheetah $70.00 $140.00 17 $1,190 $2,380Heel Olsenhaus Wedge Navy $80.00 $160.00 17 $1,360 $2,720Boot Olsenhaus Heeled Bootie Tan $102.00 $204.00 17 $1,734 $3,468Boot Olsenhaus Flat Bootie Gray $102.00 $204.00 17 $1,734 $3,468Boot Olsenhaus Flat Bootie Pink $102.00 $204.00 17 $1,734 $3,468Flat Melissa Ballet 06346 $32.00 $64.00 10 $320 $640Flat Melissa Ballet 51975 $32.00 $64.00 10 $320 $640Flat Melissa Ballet 52031 $32.00 $64.00 10 $320 $640Flat Melissa Ballet 52030 $32.00 $64.00 10 $320 $640Flat Melissa Ballet 52032 $32.00 $64.00 10 $320 $640Heel Melissa Wedge 51657 $55.00 $110.00 10 $550 $1,100

Class Vendor Sub-Class Color Target Whls Target RetailOpening

Units Opening COGOpening

RetailHeel Melissa Wedge 51496 $55.00 $110.00 10 $550 $1,100Heel Melissa Wedge 51391 $55.00 $110.00 10 $550 $1,100Flat Melissa Ballet 51647 $30.00 $60.00 10 $300 $600Flat Melissa Ballet 52044 $30.00 $60.00 10 $300 $600Flat Melissa Ballet 51485 $30.00 $60.00 10 $300 $600Heel Melissa Stilleto 01380 $59.00 $118.00 10 $590 $1,180Heel Melissa Stilleto 51995 $59.00 $118.00 10 $590 $1,180Heel Melissa Stilleto 1003 $59.00 $118.00 10 $590 $1,180Flat Reneu Ballet Black $42.00 $84.00 9 $378 $756Flat Reneu Ballet Red $42.00 $84.00 9 $378 $756Flat Reneu Ballet Brown $42.00 $84.00 9 $378 $756Flat Reneu Ballet Red $40.00 $80.00 9 $360 $720Flat Reneu Ballet Natural $40.00 $80.00 9 $360 $720Flat Reneu Ballet Black $40.00 $80.00 9 $360 $720Flat Reneu Ballet Black/Natural $38.00 $76.00 9 $342 $684Flat Reneu Ballet Coffee/Dk. Brown $38.00 $76.00 9 $342 $684Flat Reneu Ballet Black/Black $38.00 $76.00 9 $342 $684Flat Reneu Casual Black/Gray $41.00 $82.00 9 $369 $738Flat Reneu Casual Metallic Brown $41.00 $82.00 9 $369 $738Flat Reneu Casual Metallic Blue $41.00 $82.00 9 $369 $738Flat Reneu Casual Red $38.00 $76.00 9 $342 $684Flat Reneu Casual Camel $38.00 $76.00 9 $342 $684Flat Reneu Casual Navy $38.00 $76.00 9 $342 $684Medium Handbag Big Buddha Hobo Bag Black $38.00 $76.00 5 $190 $380Medium Handbag Big Buddha Hobo Bag Olive $38.00 $76.00 5 $190 $380Large Handbag Big Buddha Shoulder Bag Black $36.00 $72.00 5 $180 $360Large Handbag Big Buddha Shoulder Bag Gun $36.00 $72.00 5 $180 $360Large Handbag Big Buddha Tote Bag Cognac $36.00 $72.00 5 $180 $360Large Handbag Big Buddha Tote Bag Red $36.00 $72.00 5 $180 $360Medium Handbag Big Buddha Bowling Bag Black $38.00 $76.00 5 $190 $380Medium Handbag Big Buddha Bowling Bag Gray $38.00 $76.00 5 $190 $380Medium Handbag Big Buddha Bowling Bag Blue $38.00 $76.00 5 $190 $380Small Handbag Big Buddha Pouchlette Black $26.00 $52.00 5 $130 $260Small Handbag Big Buddha Pouchlette Cognac $26.00 $52.00 5 $130 $260Small Handbag Big Buddha Mini Black $20.00 $40.00 5 $100 $200Small Handbag Big Buddha Evening Bag Black $28.00 $56.00 5 $140 $280Small Handbag Big Buddha Evening Bag Taupe $28.00 $56.00 5 $140 $280Small Handbag Big Buddha Evening Bag Teal $28.00 $56.00 5 $140 $280Small Handbag Big Buddha Mini Gray $12.00 $24.00 5 $60 $120Small Handbag Big Buddha Mini Blue $12.00 $24.00 5 $60 $120Small Handbag Big Buddha Mini Red $12.00 $24.00 5 $60 $120Flat Beyond Skin Ballet Navy $100.00 $200.00 22 $2,200 $4,400Flat Beyond Skin Ballet Ivory $100.00 $200.00 22 $2,200 $4,400Heel Beyond Skin Stilleto Tan Floral $116.50 $233.00 22 $2,563 $5,126Heel Beyond Skin Stilleto Pink $116.50 $233.00 22 $2,563 $5,126Heel Beyond Skin Wedge Turquoise $115.00 $230.00 22 $2,530 $5,060Heel Beyond Skin Wedge Pink $115.00 $230.00 22 $2,530 $5,060Heel Beyond Skin Wedge Navy $116.50 $233.00 22 $2,563 $5,126Heel Beyond Skin Wedge Nude $116.50 $233.00 22 $2,563 $5,126Flat Beyond Skin Casual Gray $39.00 $78.00 22 $858 $1,716Flat Beyond Skin Casual Nude $39.00 $78.00 22 $858 $1,716Flat Beyond Skin Casual Nude $37.50 $75.00 22 $825 $1,650Flat Beyond Skin Casual Navy $37.50 $75.00 22 $825 $1,650Flat Cri-De-Coeur Casual Black $50.00 $100.00 22 $1,100 $2,200Flat Cri-De-Coeur Casual Gold $50.00 $100.00 22 $1,100 $2,200Flat Cri-De-Coeur Casual Snake $50.00 $100.00 22 $1,100 $2,200Heel Cri-De-Coeur Kitten Heel Peach $75.00 $150.00 22 $1,650 $3,300Heel Cri-De-Coeur Kitten Heel Black $75.00 $150.00 22 $1,650 $3,300Heel Cri-De-Coeur Kitten Heel Brown $75.00 $150.00 22 $1,650 $3,300Heel Cri-De-Coeur Kitten Heel Black $75.00 $150.00 22 $1,650 $3,300Heel Cri-De-Coeur Kitten Heel Brown $75.00 $150.00 22 $1,650 $3,300Heel Cri-De-Coeur Kitten Heel Black $75.00 $150.00 22 $1,650 $3,300Heel Cri-De-Coeur Kitten Heel Gray $75.00 $150.00 22 $1,650 $3,300Heel Cri-De-Coeur Kitten Heel Black $80.00 $160.00 22 $1,760 $3,520Heel Cri-De-Coeur Kitten Heel White $80.00 $160.00 22 $1,760 $3,520Flat Cri-De-Coeur Casual Bl/Gold $80.00 $160.00 22 $1,760 $3,520Flat Cri-De-Coeur Casual Snake $80.00 $160.00 22 $1,760 $3,520Boot Cri-De-Coeur Flat Bootie Black $72.00 $144.00 22 $1,584 $3,168Boot Cri-De-Coeur Flat Bootie Brown $72.00 $144.00 22 $1,584 $3,168Boot Cri-De-Coeur Flat Bootie Gold $72.00 $144.00 22 $1,584 $3,168Heel Cri-De-Coeur Wedge Black $72.00 $144.00 22 $1,584 $3,168Heel Cri-De-Coeur Wedge Gold $72.00 $144.00 22 $1,584 $3,168Flat Cri-De-Coeur Casual Brown $60.00 $120.00 22 $1,320 $2,640Flat Cri-De-Coeur Casual Gold $60.00 $120.00 22 $1,320 $2,640Large Handbag Cri-De-Coeur Shoulder Bag Black $80.00 $160.00 20 $1,600 $3,200Large Handbag Cri-De-Coeur Shoulder Bag Black $80.00 $160.00 20 $1,600 $3,200

140

Class Vendor Sub-Class Color Target Whls Target RetailOpening

Units Opening COGOpening

RetailLarge Handbag Cri-De-Coeur Shoulder Bag Brown $80.00 $160.00 20 $1,600 $3,200Small Handbag Cri-De-Coeur Mini Peach $80.00 $160.00 20 $1,600 $3,200Small Handbag Cri-De-Coeur Mini Black $80.00 $160.00 20 $1,600 $3,200Heel Olsenhaus Stilleto Tan $98.00 $196.00 22 $2,156 $4,312Heel Olsenhaus Stilleto Black $98.00 $196.00 22 $2,156 $4,312Heel Olsenhaus Stilleto Blck/Tan $98.00 $196.00 22 $2,156 $4,312Heel Olsenhaus Stilleto Org/Iv $98.00 $196.00 22 $2,156 $4,312Heel Olsenhaus Stilleto Blck/Pink $95.00 $190.00 22 $2,090 $4,180Heel Olsenhaus Wedge Pk/Grn $70.00 $140.00 22 $1,540 $3,080Heel Olsenhaus Wedge Blu/Wht $70.00 $140.00 22 $1,540 $3,080Heel Olsenhaus Kitten Heel Nvy/Wht $70.00 $140.00 22 $1,540 $3,080Heel Olsenhaus Kitten Heel Fuscia $70.00 $140.00 22 $1,540 $3,080Flat Olsenhaus Casual Org $102.00 $204.00 22 $2,244 $4,488Flat Olsenhaus Casual Blck $102.00 $204.00 22 $2,244 $4,488Flat Olsenhaus Casual Tn/Blck $65.00 $130.00 22 $1,430 $2,860Flat Olsenhaus Casual Turq/Red $65.00 $130.00 22 $1,430 $2,860Flat Olsenhaus Casual Blck $65.00 $130.00 22 $1,430 $2,860Flat Olsenhaus Casual Brown $65.00 $130.00 22 $1,430 $2,860Flat Olsenhaus Casual Org $55.00 $110.00 22 $1,210 $2,420Flat Olsenhaus Casual Grn $55.00 $110.00 22 $1,210 $2,420Flat Olsenhaus Casual Blue $55.00 $110.00 22 $1,210 $2,420Flat Olsenhaus Casual Grn $55.00 $110.00 22 $1,210 $2,420Flat Olsenhaus Casual Org $55.00 $110.00 22 $1,210 $2,420Flat Melissa Casual Black $32.00 $64.00 15 $480 $960Flat Melissa Casual Ivory $32.00 $64.00 15 $480 $960Flat Melissa Casual Black $32.00 $64.00 15 $480 $960Flat Melissa Casual Tan $32.00 $64.00 15 $480 $960Flat Melissa Casual Orange $26.00 $52.00 15 $390 $780Flat Melissa Casual Yellow $26.00 $52.00 15 $390 $780Flat Melissa Casual Blu/Org $21.00 $42.00 15 $315 $630Flat Melissa Casual Black $21.00 $42.00 15 $315 $630Heel Melissa Kitten Heel Black $65.00 $130.00 15 $975 $1,950Heel Melissa Kitten Heel Gold $65.00 $130.00 15 $975 $1,950Flat Reneu Ballet Black $35.00 $70.00 9 $315 $630Flat Reneu Ballet Flat Leopard $35.00 $70.00 9 $315 $630Flat Reneu Ballet Flat Blue $41.00 $82.00 9 $369 $738Flat Reneu Ballet Flat Melon $41.00 $82.00 9 $369 $738Flat Reneu Ballet Flat Blush $36.00 $72.00 9 $324 $648Flat Reneu Ballet Flat Tan $36.00 $72.00 9 $324 $648Flat Reneu Ballet Flat Sky Blue $36.00 $72.00 9 $324 $648Flat Reneu Ballet Flat Magenta $37.00 $74.00 9 $333 $666Flat Reneu Ballet Flat Blue $37.00 $74.00 9 $333 $666Flat Reneu Loafer Black $44.00 $88.00 9 $396 $792Flat Reneu Loafer Orange $44.00 $88.00 9 $396 $792Flat Reneu Slip On Brown Snake $38.00 $76.00 9 $342 $684Flat Reneu Slip On Blue Snake $38.00 $76.00 9 $342 $684Large Handbag Taska Tote Taupe $49.50 $99.00 4 $198 $396Large Handbag Taska Tote Charcoal $49.50 $99.00 4 $198 $396Large Handbag Taska Tote Navy/White $49.50 $99.00 4 $198 $396Large Handbag Taska Purse Charcoal $40.00 $80.00 4 $160 $320Large Handbag Taska Purse Navy/White $40.00 $80.00 4 $160 $320Large Handbag Taska Purse Taupe $40.00 $80.00 4 $160 $320Large Handbag Taska Shoulder Bag Multi Stripe $35.00 $70.00 4 $140 $280Large Handbag Taska Shoulder Bag Grey Weave $35.00 $70.00 4 $140 $280Large Handbag Taska Tote Multi Stripe $60.00 $120.00 4 $240 $480Large Handbag Taska Tote Grey Weave $60.00 $120.00 4 $240 $480Large Handbag Taska Tote Black $55.00 $110.00 4 $220 $440Large Handbag Taska Tote Grey $55.00 $110.00 4 $220 $440Large Handbag Taska Tote Grey Weave $49.50 $99.00 4 $198 $396Large Handbag Taska Tote Black/Grey $49.50 $99.00 4 $198 $396Small Handbag Taska Mini Grey $27.50 $55.00 4 $110 $220Small Handbag Taska Mini Black $27.50 $55.00 4 $110 $220Small Handbag Taska Mini Multi Stripe $9.50 $19.00 4 $38 $76Small Handbag Taska Mini Charcoal $9.50 $19.00 4 $38 $76Small Handbag Taska Mini Taupe $9.50 $19.00 4 $38 $76Small Handbag Taska Mini Black/White $9.50 $19.00 4 $38 $76Large Handbag Big Buddha Shoulder Bag Red $38.00 $76.00 8 $304 $608Large Handbag Big Buddha Shoulder Bag Black $38.00 $76.00 8 $304 $608Large Handbag Big Buddha Shoulder Bag Turquoise $38.00 $76.00 8 $304 $608Large Handbag Big Buddha Shoulder Bag Black $38.00 $76.00 8 $304 $608Large Handbag Big Buddha Shoulder Bag Mustard $38.00 $76.00 8 $304 $608Large Handbag Big Buddha Shoulder Bag Red $38.00 $76.00 8 $304 $608Large Handbag Big Buddha Shoulder Bag Mustard $38.00 $76.00 8 $304 $608Large Handbag Big Buddha Shoulder Bag Black $38.00 $76.00 8 $304 $608Small Handbag Big Buddha Mini Green $12.00 $24.00 8 $96 $192Small Handbag Big Buddha Mini Charcoal $12.00 $24.00 8 $96 $192

Class Vendor Sub-Class Color Target Whls Target RetailOpening

Units Opening COGOpening

Retail

$0.00 0 $0 $0Totals $15,276.50 $30,403.00 3,212 $245,412 $488,274

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Works Cited

142

Works Cited: Content1. http://www.statisticbrain.com/footwear-industry-statistics/2. http://www.ibisworld.com/industry/global/global-footwear-manufacturing.html3. http://www.ibisworld.com/industry/default.aspx?indid=3694. Industry Surveys, Apparel & Footwear: Retailers & Brands/April 26, 2012, Page 2-4, 8-105. WWD.com/footwear-news/retail/experts-share-advice-for-newcomers-at-fn-platform-70926266. WWD.com.footwear-news/markets/boots-remodels-on-agenda-at-nsra-conference-70924147. WWD.com/footwear-news/markets/charitable-brands-multiply-in-fashion-markets-70915948. “Michaud pushes administration to prioritize U.S. footwear industry in trade negotiations: Critical preserving Maine manufacturing jobs”. ProQuest Research Library, © 2012 Federal Information & News Dispatch, Inc.9. www.gucci.com10. www.stellamccartney.com11. www.lexus.com12. Vegetarian Resource Group, Vegetarian Times, Harris Interactive Service Bureau- 201213. www.Peta.org14. http://www.dailymail.co.uk/femail/article-2288693/Gucci-releases-new-eco-leather-handbags-come-passports-detailing-cows-entire-for-est-friendly-life.html15. Bay Area Census16. http://www.paragon-re.com/SF_Demographics/ 17. baycitizen.org18. Zillow.com19. Mercurynews.com/ci_93390404/bay-area-economy-expected-remain-robust-despite-sluggish20. Sanfrancisco.travel/shop/Fillmore-Street-Named-One-of-Americas-Best-Shopping-Streets.html21. http://www.fillmorejazzfestival.com/?op=history22. Sanfranciscoshop.com/RetailRealEstate.html23. Magiconline.com/fn-platform24. Magiconline.com25. Ffany.org/index.php/our-mission26. Ffany.org/index.php/shoes-on-sale27. Californiamarketcenter.com/transit/about.php28. Californiamarketcenter.com29. http://www.strategicbusinessinsights.com/vals/ustypes.shtml

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