OuterSpace

Fashion IndustryBY: Dylan Rolison and Eddie Ma

Release on: 12.12.2014

Presentation Overview- Industry Overview- Market Needs- Market Growth- Market Trends- SWOT Analysis- Objectives- Branding - Pricing- Sales Forecasts- Summary

Industry Overview- Highly Fragmented

-12,290 Fashion Design Businesses in U.S.- 5% Control of Market = Dominate Company

- Louis Vuitton: 3% Market Share- Gucci: 1% Market Share

Market Needs-Simon Sinek: “The Golden Circle”

Marketing Needs- Offer an international inspired

brand proposition that is targeted at discerning customers who are looking for stylish, technological advanced, one-of-a-kind designs that are made with the highest quality that live in the greater Los Angeles area.

- International Clothing- Clothing whose design is

influenced by cultures all over the world and made with top of the line materials throughout the globe.

- Features- Style

- Assortment of sizes- Functional and Fashionable- Ease of Care

- One of-a-kind designs- Status symbol - Specific stitching materials

and production design- Technologically advanced

- Anti-microbial Finish- Special stain-release fabric

treatment- Fluid-repellant finish

Market Growth- Expected revenue is estimated to increase by 3.6%

annually to a net worth of $1.3 billion by 2017.

Market Trends

- “Fast Fashion”- Mass-Market Retailers

- Designers collaborate with fast fashion retailers like H&M and mass merchants like Target to deliver lines specifically made for these outlets.

- Emergence of Diffusion Lines- Diversification

SWOT Analysis- Strengths

- Business Model- Offering- Key to Success-Geographical Location-Cultural

- Weaknesses- Suppliers-Staff-Brand Image-Technology

- Opportunities- Demographic Trends- Economic Trends- Technological Trends- Fashion Trends

- Threats- Ecological Trends- Political – Legal Trends- Competitive Trends

Objectives• Marketing

- Customer Acquisition- Expand customer base by adding 50 new customers every two months for the first two years of operation.- Product Development-Develop and introduce 5 new t-shirt designs for every season for the first year of operation. - Unit Sales- Sell 200 t-shirts to each of our targeted segments every month for the first 2-5 years of operation.- Market Share- Capture at least .10% of the Los Angeles market within the first 2-5 years of operation.

Objectives• Financial

- Sales Revenue- Achieve sales revenue between $102,000 - $107,000 within our first year of operation - Product Sales Revenue-Achieve product revenue $25,500 – 26,750 per quarter. - Profitability- Increase our yearly profit by 25% annually within our first 3-5 years of operation.

Objectives• Societal

- Conservation- Reduce stores use of electricity by at least 5% annually- Reduce WaistIncrease the proportion of recyclable product within our t-shirts to 20% by the start of our second year of operation.- Build Awareness- Build Awareness among our target market about ways to be sustainable consumers by attracting 1,000 visitors to our company’s web page daily.- Community Involvement- Encourage employees to volunteer for local projects around the community, by allowing them 30 hours of volunteerism per year on company time.

Branding- Private Label

- Control over our product factors- Ability to make quick adjustments- Easier to customize brand labels

- Fit our Brand Positioning and Image- More Distinctive/Appealing

- Utilize across all consumer touch points- Symmetrical and is visually appealing to the eye- Utilize bold colors that draw and hold attention

- ULIMATE GOAL- Distinctive marketing assets to replace our brand name in

marketing initiatives.

Advertising- Most Ideal Communication Channels

- Magazines- Ok!, In Style, Elle ,Self, Seventeen, Shape, Teen Vogue,

Glamour and Cosmopolitan. - Radio

- Weekends from 7:00 pm –Midnight and from Midnight - 6:00 am.

- Internet- MTV.com, LivngSocial.com, TicketMaster.com and Vevo.com. - Social Media

- Twitter, Facebook, etc.- Cable Television

- BET, Bravo, Centric, E!, Fox Soccer Channel, Logo, and MTV Tr3s, Soapnet, and Style.

Pricing- Position in Industry

- Create a fixed price that will be consistent with our positioning Exclusive and Luxury item.

- Value-Based Pricing Model - Customers’ perception of value of our t-shirts and the price that they

would be willing to pay in able to determine a fixed price for our t-shirts. - Strategy Downturn

- Achieving a reasonable gross profit margin - Prices would be set at level that is focused on customer retention

and overall growth within the fashion design industry.

TOTAL PRICE $80 - $200

Sales Forecasts- Sales volume of $1,638,000/yr.

Summary