Amador  Hermosilllo      

Introduction  to  Marketing  the  Arts/Fashion  Spring  2010  

Untitled  Marketing  Plan  

1    

Table  of  Contents    

Company  Overview……….……………………………………………….2  Situation  Analysis…………………………………………………………..4     SWOT  Analysis………………………………………………………….4     Competitive  Analysis………………………………………………..…5     Customer  Analysis………..……………………………………………..5  Marketing  Program…………………………………………………..…….7  Budget  &  Implementation……………..……………………………….11  Evaluation  Criteria………………………………………………………..12  Conclusion……………………………………………………………….….13        

     

2    

Company  Overview    What  It  Is  

Untitled is a specialty boutique offering an eclectic selection of apparel goods. In 1990,

the first Untitled shop was opened by cofounders Luke and Candise Cho who had ambitions of

bringing something fresh to Chicago. Currently there are three Untitled shops, the first in

Lincoln Park, second in Wicker Park and third in Schaumburg’s Woodfield Mall. The shops

fuse fashion, music, art, and street culture; often times featuring DJ sets and transforming the

stores into art galleries. Throughout the years, Untitled has been involved in various community

events, fashion shows, music shows and fundraisers. The Untitled shops offer a unique

collection of products and bring the newest and freshest looks to their customers.

The  Present  

By highlighting the latest trends and staying true to their roots, Untitled continues to offer

the latest styles, hard to find limited edition pieces and sponsor innovative designers. Many

successful and widely recognized brands have launched their first season and marketing

campaign at Untitled. The shops have expanded their space to house a Shoe Gallery and Denim

Loft. Some of the brands Untitled carries are 7 For All Mankind, Diesel, True Religion Jeans,

Nudie Jeans, Incase, Obey, RVCA, Freed Perry, Cheap Monday, Stussy and more. Untitled

carries women’s and men’s clothing, footwear and accessories.

Mission  Statement  

To highlight and offer fashion’s latest styles and trends with a focus on quality. To

celebrate and support music, art and street culture.

Company  Goals    

• For the coming years Untitled seeks to achieve the following goals:

• To be immediately recognized as the premiere shopping destination for fashionistas and

trendsetters alike

• Establish a strong online presence

• Begin an aggressive advertising and promotional program

• Introduce a new line

3    

Strategic  Business  Unites    

The Untitled shops do not have Strategic Business Units. The company’s three stores

operate in a similar manner and are managed the same. The store’s differences are the amount of

merchandise and staff needed to operate.

Management  Structure      

The Untitled shops are managed by the cofounders, Luke and Candise Cho. Two

assistant managers help supervise and lead the staff. And a team of eight sales staff work the

floor, registers and handle customer queries.

Company  Culture  

The environment at Untitled is relaxed and laid back. The small team of employees

builds a strong support system and everyone is happy to help out. The company culture is one of

a family working together, loving what they do, having a passion for the industry and are able to

give input in store decisions.

Customer  Profile    

Geographic - Chicagoland - Urban, North Suburbs

Demographic

- Age: 21-32 - Sex: Female & Male - Family: None, single - Income: 18,000+ - Education: Student, bachelors degree - Occupation: Creative industries, i.e. music, fashion, film, art - Religion: None - Ethnic Background: Caucasian, Asian, African American, European, Latin

Psychographic

- Social Class: Middle - Personality: Extrovert, energetic, fun, full of life, outgoing - Lifestyle: Active lifestyle, enjoys activities such as going to dinner, getting

drinks, dancing, hanging out with friends, traveling, dating, buying stuff

 

4    

Situation  Analysis     This situation analysis starts with a snapshot of the current environment in which Untitled

finds itself by providing a brief SWOT (strengths, weaknesses, opportunities, threats) analysis.

After this overview, the analysis probes even-finer levels of detail: competitors and customers.

SWOT  Analysis    

This SWOT analysis shows the internal and external factors affecting the market

opportunities for Untitled. Internal  Factors Strengths Weaknesses

Customer   Products  are  highly  attractive  to  customer  

Indie  customer  is  limited  to  disposable  income  

Product  Mix Excellent  acceptance  of  lines  Fashionable,  trendy  items  Quality  

Higher  price  points    Some  brands  are  not  known  

Pricing  Strategies   Ability  to  markup  items Limited  amount  of  markdowns  and  sales  

Promotion   Host  in-­‐store  events    Sponsor  other  events  

Bigger  competitors  can  offer  wider  and  bigger  promotions  Marketing  isn’t  as  strong  as  it  should  be  

Distribution   Three  points  of  distribution  Ability  to  create  a  unique  store  environment  

Limited  to  three  points  of  distribution    Chain  stores  have  a  higher  number  of  stores

Employees  /  Management  Structure   Experienced  management  team    Small  number  of  employees  is  easier  to  manage    Knowledgeable  about  products    

Limited  to  skills  and  abilities  of  small  staff  Small  staff  have  habit  of  forming  arguments  and  disagreements  

External  Factors Opportunity Threats Competition   The  market  is  there,  Untitled  needs  

to  tap  into  it.      

Not  very  well  known  throughout  the  city    Competitors  have  more  stores  and  better  known  

Economics Customers  seeking  quality  over  quantity    Limited  amount  of  money  =  innovate  ways  to  stretch  financials

Competitors  are  able  to  invest  and  take  risks  on  business  decisions    Competitors  have  more  resources  and  assets  

Technology   Small  computer  system  is  easier  to  maintain    No  need  to  hire  IT  professionals  

Competitors  have  sophisticated  systems  of  inventory  and  accounting    No  complete  website    Competitors  offer  online  shopping  

Social   Indie  customer  is  growing  and  so  is  the  interest  in  music,  art  and  fashion  

Due  to  bad  economy  customers  can’t  afford  higher  price  points  

5    

In the Company’s favor internally are its strengths of an experience management team,

knowledgeable staff, excellent acceptance of lines, unique store environment and promotional

events. Favorable external factors (opportunities) include a strong target market with a high

interest in fashion, music and art, and with the economy down customers are seeking quality

over quantity.

Among unfavorable factors, the main weakness is the higher price points and only three

points of distribution. Competitors offer cheaper apparel and have more points of distribution.

The main threat is Untitled is not well known throughout the city.  

Competitive  Analysis    

Specialty boutiques in Chicago continue to emerge and grow. While some make it and

gain success for many years to come, others dwindle and fail in their first few years. At this

moment Untitled has much competition, not only in the neighborhoods the Untitled shops are

located but throughout all of Chicagoland.

One of the biggest competitors is Akira, a specialty boutique in Chicago. Akira first

opened in 2002 as a single women’s clothing store in Chicago’s Wicker Park neighborhood.

Today, Akira has expanded to six stores and an online shopping website. Akira offers well-

known labels and Akira’s own line of women’s and men’s clothing, footwear, and accessories.

Akira is well known for their fashion shows and parties. Akira’s success does not come from the

quality of their clothing, but from the affordable prices and aggressive marketing strategy.

Other various competitors include Urban Outfitters and H&M. Urban Outfitters has

many stores throughout the country and caters to the same indie customer at a cheaper price.

H&M is a fast fashion giant with locations throughout the world offering trendy apparel at a

budget price point. The main difference between Untitled and these listed competitors is

marketing. While Untitled’s product selection is of better quality, its competitors have an

aggressive marketing strategy aimed at getting their name known and customers in the stores.

Many of these competitors have been around for quite some time and are well known, while it

may take some time for Untitled to reach these greats, it is certainly possible.  

 

6    

Customer  Analysis  

  Untitled’s customers represent a broad range of socioeconomic backgrounds. The

products are purchased chiefly by consumers who have achieved higher levels of education and

whose income is higher than average. These customers are not on a budget and seek quality

apparel that is trendy and fashionable. Untitled’s other customers are individuals with limited

extra cash, have strong interests in fashion, are quality conscious and save up to buy one or two

pieces. In addition, Untitled’s customers shop at Untitled because of the store’s relaxed and

comfortable environment and connection with the music, art and street culture the shops

represent.    

 

   

 

 

 

7    

Marketing  Program   While there are many things Untitled had done right, there are also many improvements

that could be made in order to make the shops more successful. These improvements include

establishing a strong online presence, introducing a lower priced product line, and implementing

an aggressive advertising and promotional program.

Online  Presence    

-­‐  Objective    

One of the largest aspects Untitled needs to work on is their online presence. Their

current online standing is vague, outdated, amateurish, and does not give a clear representation

of the products, the customer and store environment. Currently, Untitled has a website, a blog,

social networking sites (Facebook, Twitter and Myspace), and sends emails blasts. All of their

sites fail and do the opposite of attracting customers and promoting the store.

The first objective is establishing a strong online presence. The World Wide Web is one

of the best marketing avenues while being cost effective. Today’s modern world is constantly

online and technologically advanced. Information is plentiful and to the minute with people

constantly on their iPhones and Blackberries. There are hundreds of fashion blogs, online retail

stores, and social networking sites.

-­‐  Strategy  

Launching an innovative website, preparing an interesting blog, revamping email blasts,

and maintaining social networking sites (Facebook, Twitter and MySpace).

-­‐  Tactics    

• Hiring a website designer to develop and launch an innovative website that gives a

proper depiction of Untitled through art, music, design and graphics. The website

will be user friendly, fashion forward and simple. A section of the website will focus

on label profiles so visitors can become acquainted the labels and designers carried in

the store. The website will not include online shopping but rather used as an

advertising venue, promote designers, events and the store.  

8    

• Preparing an interesting blog to be updated with postings weekly. Outline of the blog

will be simple to give focus on the postings. The postings will focus on art, music

and fashion.  

• The emails will offer discounts, promote sales, events and new products. The look

and feel of the emails will also evoke the store environment with artsy graphics and

attractive pictures.  

• The social networking sites will be updated regularly to promote the blog postings,

events, sales, new products, designers, art and music.  

• Maintenance of website will be handled by website designer while maintenance of the

blog, emails and social networking sites will be handled by the Untitled managers and

staff.  

New  Product  Line    

-­‐  Objective    

Untitled will greatly benefit from a new product line that’s at a lower price point. The

shops house a denim loft with designer jeans such as Diesel and True Religion, but unfortunately

these jeans have high price points and are not affordable to customers. With the economy as it is

customers are not looking to spend $200 on a pair of jeans. Introducing a line of jeans that is

well known and at a lower price point will certainly generate sales.

-­‐  Strategy    

Introducing Levi’s Premium line that retails under $100. With the economy down Levi’s

have gained popularity as being a quality jean at an affordable price. The Levi’s Premium line

will blend perfectly with the other designer jeans in the denim loft.

-­‐  Tactics      

• Buying the product

• Introducing the jeans in the denim lofts

• Advertising  and  promoting  Levi’s  Premium  line  (website,  blog,  Facebook,  Twitter,  MySpace  

and  emails)          

 

9    

 

Advertising  Program  

-­‐  Objective  

Start an advertising program. Untitled does not have an advertising program and

implementing one will give the shops exposure.

-­‐  Strategy  

  Design, develop and begin an advertising program. The advertisements are aimed for the

customer’s lifestyle, conveying the store environment and targeting where the customer is likely

to be.

-­‐  Tactics    

• Hire a graphic designer to design advertisements

• Advertisements to convey store environment and aesthetic

• CTA advertising on train and bus routs near the Untitled shops

§ Red Line

§ Brown Line

§ Blue line

§ Bus 56 – Milwaukee Ave.

§ Bus 72 – North Ave.

§ Bus 22 – Clark St.

§ Bus 36 – Broadway Ave.

• CTA advertisements three a year (Spring & Fall)

• Advertising in newspapers (seasonally and major holidays)

§ The Red Eye

§ The Columbia Chronicle

• Hand out flyer on local restaurants and businesses

 

         

10    

Promotional  Program  

-­‐  Objective    

Develop and implement a promotional program. Currently Untitled does not have

promotional activities to get customers in the store.

-­‐  Strategy  

  Offer promotions

-­‐  Tactics  

• Offer 10% to students with valid photo ID

• Offer e-mail coupons seasonally (4 times a year)

• Hold a contest for design students to design advertisements and graphics for website

and store. Winner receives $300 cash and $200 store credit. Flyers in design and art

schools such as Columbia, Chicago Art Institute, and Illinois Institute of Art (Chicago

& Schaumburg).

• Sponsor events at music venues

• Showcase artists work in stores and celebrate with an event

• Offering free music downloads

                                                                         

11    

Budget  &  Implementation    Budget  

The budget for this marketing plan will be 20% of 2010’s total revenue. 9% will go

towards the advertising program, as it will be the most expensive. 5% will go towards the

promotional programs. 4% will go to the online presence, mostly the website. And 3% will go

to the new product line.

Implementation    

The marketing plan will begin in January 2011. The second half of 2010 will focus on

developing the website and initial advertisements. The anticipated rollout schedule for the

marketing objectives appears below:

Rollout  Schedule  for  2011  

January February March April -­‐  Launch  website  and  blog,  update  social  networking  sites.      -­‐  Email  in-­‐store  coupons  -­‐  Host  an  event  at  a  music  venue  to  celebrate  new  website    

-­‐  Announce  student  discount  on  website,  blog,  email  and  social  networking  sites  

-­‐  CTA  advertisements    -­‐  Red  Eye  advertisements  for  one  week  

-­‐  Announce  new  Levi’s  Premium  line    -­‐  Host  an  event  from  new  product  line  

May June July August -­‐  Offer  free  music  downloads  

-­‐  Email  coupons -­‐  Sponsor  an  event  at  a  music  venue

-­‐  CTA  advertisements  -­‐  Red  Eye  advertisements  for  one  week  

September October November December -­‐  Email  coupons    -­‐  Start  student  design  contest  

-­‐  Showcase  a  local  artists  work  

-­‐  CTA  advertisements    -­‐  Red  Eye  advertisements  for  one  week    -­‐  Email  coupons    

-­‐  End  student  design  contest    -­‐  Host  an  event  to  the  design  contest  

12    

Evaluation  Criteria   There are a number of ways in which one could judge the success of the Untitled shops.

The evaluation will start at the beginning of 2012. The first and most obvious would be retail

sales. Increase in sales in 2011 from 2010 means that more customers know about the stores and

are buying products. The amount of store traffic, website traffic, blog comments, Twitter

followers and Facebook and Myspace friends is also an indicator of consumer awareness. The

amount of sales coupons being used indicates customers are viewing their emails. Finally, an

increase in attendees at the events indicates customers are interested in the events and follow

what Untitled is doing. Depending on the success of the marketing program Untitled can decide

to continue or modify the marketing program for 2012.

   

                           

                                     

13    

Conclusion   The Untitled shops have the potential to reach great heights. With a few changes Untitled

can gain the publicity that larger boutiques have. An aggressive advertising and promotional

program combined with an innovative online presence will surely increase sales for the shops.

And certainly the new Levi’s Premium line will be well received the Untitled’s customers. The

success of this marketing plan can open new doors for Untitled in new neighborhoods. Untitled

mill be immediately recognized as the premiere shopping destination for fashionistas and

trendsetters alike

Lincoln Park: 2707 N. Clark St.

Wicker Park: 1543 N. Milwaukee Ave.

Schaumburg: Woodfield Mall