ONDRAYA STORE CASE:

The Concept

The Opportunity

K. Ondraya is considering entering the womenswear market by opening a store in Calgary and has collected the following information. Because of the expansion of Stephen Avenue into "Fashion Central" and the opening of a new Holt Renfrew, there is a definite market for retail stores there. Calgary's demand is being boosted by increasing household income levels. The three sources of demand consist of tourists, young professional downtown workers, and rural stay-at-home wives.

The store will carry dresses, skirts, shirts, pants, and shorts, as well as accessories including hats, scarves, belts, purses, and gloves. Brands will be carried in the store that are currently not available in Calgary, including Alexander McQueen, Christian Dior, Marc Jacobs, Rachel Roy, Nina Ricci, and Zac Posen. Successful brands to be carried already available in Calgary include MARC by Marc Jacobs, Nanette Lepore, and Twenty8Twelve. Of these recognizable brands, the ones already offered in Calgary are only available at Holt Renfrew.

Service of Ondraya will be first class: the ultimate goal is to create an experience for customers unlike anything else. Individualized service would be provided through personal styling with a professional stylist. The store website will feature special ordering services for customers, allowing customers to shop online and reserve items they wish to purchase. To further facilitate spending, in-store fitting will be made available. A skilled seamstress will be on location where tailored items will be ready in 48 hours or less.

Suppliers

K. Ondraya will be dealing with companies directly instead of working with suppliers, due to the fact that the majority of Canadian suppliers do not carry the brand names K. Ondraya wishes to carry. Orders would be placed through sales representatives where a distribution contract would be signed. Supplier sources for brands carried would be:

1. Alexander McQueen (New York City)
2. Christian Dior (Paris, France)
3. Marc Jacobs (New York City)
4. Rachel Roy (New York City)
5. Nina Ricci (Paris, France)
6. Zac Posen (New York City)
7. MARC by Marc Jacobs (New York City)
8. Nanette Lepore (New York City)
9. Twenty8Twelve (London, England)

Staff

Staff will be hired based on experience in the retail industry, where at least three years in the industry would be required. A mandatory training program will be provided for employees. Due to the fact that an owner would be on location at all times, initially two part-time employees would be hired. The method of payment for employees would be hourly pay based on the market pricing.

The following will be required of all staff:

1. Welcoming and pleasant, going beyond what customers expect
2. Educated about all products and brand names carried
3. Clean, attractive, and polished appearance
4. Up to date on current trends in industry
5. Tailoring and measurement skills
6. Basic skills required to use computer programs

Store Layout

The layout of the store would focus on making it easy for customers to move around and view products easily. Music would be played at a soft level, not too intrusive, creating a relaxed atmosphere. Entering the store, a cashier desk would be to the immediate left, allowing employees to directly greet customers and watch for any type of theft. The cashier desk would double as a display case for accessories as it would be made of glass. Appropriately and professionally merchandised clothing racks would display matching outfits and colours.

The size of the store will be 747 sq ft.

Competitive Analysis

Industry Overview

The Canadian Apparel Market is a competitive environment. According to Statistics Canada, in 2020 the market consisted of 2,150 establishments and employed 69,911 individuals. The Canadian womenswear market includes dresses, suits, coats, jackets, shirts, skirts, blouses, sweatshirts, sweaters, and underwear. The sale of dresses, skirts, and trousers accounts for 42.4% of the market's value. According to Data Monitor, the market grew by 6.7% in 2020, generating revenues of $12.6 billion. The market is forecast to have sales of $17.8 billion in 2025, a 41.2% increase from 2020.

In Canada, there are currently two major industry leaders in womenswear. The first is TJX Companies Inc. which operates the large off-price retailer Winners (25% of the market). The second is Gap Inc. which operates a number of high-quality retailers including Gap, Old Navy, and Banana Republic (20% of the market). The high end of the market is 30% of the total market in Canada and this percentage is the same in Calgary. According to Statistics Canada, women's clothing and accessories purchases account for 50 cents of every dollar spent on clothing and accessoriesalmost double the amount spent on men's. Research shows that with the $307 billion spent in retail, there is only a $2 billion difference between clothing/accessories and gasoline/motor oil. Calgary accounts for 1.15% of the total Canadian womenswear market and in Calgary the retail industry leader is Holt Renfrew. Sales of women's clothing stores in malls grew in 2020 by 15.4% in Alberta, higher than any other Canadian province. Specialty apparel had the strongest sales growth in the Alberta market.

Summary:

Womenswear market size in Canada in 2020.... $12.6 billion

High end of the market ........................ 30%

Calgary womenswear market ................ 1.15%

Competition

K. Ondraya will be competing against 337 women's clothing stores in Calgary. A number of factors were taken into consideration when evaluating the competition. Each competitor offers a large range of products and services, making the shopping experience more enjoyable. The quality of the competitors' products and services ranges from extremely high to mid-range. Based on the market evaluation, there are five main operators in Calgary and twoare at the secondary level. All information for analysis was gathered through personal interviews, secondary research, and mystery shopping.

The private company Holt Renfrew is in its growth stage and currently the leading competitor in the Calgary market. The store is anticipating a move into the Calgary Eaton Centre, giving them an additional 60,000 square feet of space. The store is inviting and organized, styled by professional merchandisers according to brand. They are a highly respectable establishment offering extensive customer services such as a concierge service, as well as personal shoppers and stylists. The employees were extremely knowledgeable, friendly, and professionally attired. The store is unique in that they offer to go to a client's home for a personal styling, have frequent special events, and carry brands exclusive to Holt Renfrew.

Worth, commencing business in May 2007, is a new store in the growth stage. The store carries unique brands with designers based mainly out of New York City, making them exclusive to Calgary. Owner Carl Abad, offers personal styling services based on his own experience of living overseas working as a professional stylist.

Purr is a more alternative store aimed at a younger target market. Opening 6 years ago, they have been very successful with a store move to a prime location and a second store opening. They are unique in that their clothing is very versatile, yet the lowest quality within the competition. Employees were very friendly and stood out in attire, yet did not know much about the products being sold. Purr's largest downfall is their lack of promotions. Word of mouth and location are their only sources.

FocusClothing, a contemporary, strictly womenswear, store offers a unique variety of products. They do not offer any exclusive brands and their store has a large amount of open space. Amongst the competition, they were the only store that did not have window displays. The employees were very friendly yet knew very little about the products in the store. Management was relied upon for any questions.

Shisomiso has been open in Calgary for the past four years and is in the growth stage. Carrying only Canadian designers, the store is unique in that it doubles as an art gallery. With a majority of the products being handmade, many are distinct and one of a kind. The small space is very inviting and the employees are extremely helpful in regards to the products carried. The atmosphere was much more casual and easygoing in comparison to other competitors.

Secondary Competition

Club Monaco is a recognizable retailer in its growth stage. Currently in Calgary there are two locations: Chinook Centre and TD Square. Inside, the atmosphere was unusually colourful for Club Monacoas they are infamous for carrying black, white, or grey items. Employees were polite, professional, and very knowledgeable about the entire company. They appeared very clean cut as an all-black uniform (Club Monaco brand only) is required. The store offers only the Club Monaco private label, and books and home dcor were also available for sale.

Banana Republic is another very recognizable retailer in the growth stage. Currently in Calgary there are four locations: Chinook Centre, TD Square, Southcentre Mall, and Market Mall. Inside the store displays were neat, although sale items were noticeably messy and disorganized. The employees were polite and seemed slightly knowledgeable about the products, yet they were no experts. Their appearance was polished as they were required to have a "Banana Republic" style. All products carried are the Banana Republic private label and they are the only competitor offering online purchasing.

Competitive Matrix

See attached excel file.

Market Analysis

Trends in Purchasing

• Clothing and accessory purchases in Canada are constantly evolving. It is more important to the average person today to "show off their individuality." Accessorizing is becoming increasingly important in order to obtain one's sense of individuality. Also, aiding in the creation of one's own sense of style, "Canada's long winters also provide a strong underpinning of solid consumer demand for hats, scarves and gloves, which make up the bulk of accessory sales.
• Purchase trends in the clothing itself are leaning more towards a casual look and there is a move "towards high fashion in a less dressy style than years past, especially in Calgary.
• Though casual is in, the demanding consumer needs more than just a closet full of casual wear. Because of the high demand for diversity, "both men's and women's suits showed stronger growth in 2020. Men are more fashion conscious and are shopping as much as women.
• Based on a survey done by the Labour and Household Surveys Analysis Division for Statistics Canada, "consumer spending rose as a percentage of economic activity from 52.8% to 58.9%."
• Daily Statistics Canada shows that "spending on clothing increased6% to an average of$2,330, mostly owing to an increase in spending on women's and girls' wear."

Calgary Demographics

Calgary is home to a younger arrangement of demographic characteristics, with an average age of 35.7 years.The overall descriptions of Calgary's demographics are:

Education level Persons within #

People with trades/non-university certif/diploma......... .................. 94,660

People with post-sec. education (not completed).............................. 44,338

People with univ. diploma............................................................ 8,345

People with univ. degree............................................................ 75,353

Note: Population surveyed were >19 years old....................................321,368

#'s based on amount of both genders divided by 2 = approximated amount of females

Calgary Psychographics

Cluster Characteristics

Cluster Group Name and Corresponding Number	Income ($)
Cosmopolitan Elite (01)	333,144
Urbane Villagers (02)	166,716
Suburban Gentry (03)	111,254
Asian Affluence (04)	103,998
Money & Brains (08)	91,815
Mr. & Ms. Manager (10)	88,255
Pets & PCs (11)	86,316

Alberta is the lowest taxed jurisdiction in Canada and the greater Calgary area has the same number of households with annual incomes over $100,000 as the greater Vancouver region, which has twice the population."

Price Quality Grid Analysis

Quality of Dresses Based On

1. Uniqueness of design
2. Materials used
3. Handmade/machine made
4. Attention to detail
5. Overall appearance

Exhibit 1 below shows differences in price and quality of the current stores in Calgary.

Exhibit 1 Price Quality Grid: Increase size of chart to see clearly.

Brands

Purr- Vera Moda brand (one)

1. Sleeveless, silk ruffles and lining, back zip
2. Button-down wrap dress, 3/4-length sleeves
3. 68% cotton, 27% polyester, 5% elastane
4. Made in Turkey

Banana Republic-Banana Republic Brand (two)

1. Short sleeve, twist on bodice, back zip
2. Made in China

Club MonacoClub Monaco brand (three)

1. Sleeveless, large waistband, back zip
2. 80% wool, 20% polyamide
3. Made in China

Shisomiso-Nokomis brand (four)

1. Sleeveless, silk ruffles and lining, back zip
2. Cotton, silk
3. Made in Canada

Focus ClothingTeenflo (five)

1. Sleeveless, wide waistband, zip-up back, silk lining
2. 1% viscose, 23% polyamide, 6% elastane
3. Made in China

Worth-Generra (six)

1. sleeveless, large silk bow on front
2. 100% cashmere
3. Made in China

Holt Renfrew-Chloe (seven)

1. Pleated chiffon dress, short sleeve, side zip
2. Polyester, cotton
3. Made in Italy

Hudson (eight)

^{Other Information}

According to the Alberta Economic Departments survey results for "Tourism in Calgary & Area," Calgary received 4.19 million visitors in 2020. Of this large-scale amount, Alberta is the largest contributor to the visitors to Calgary with 84%, where internationally, the United States contributed 7% of Calgary tourism.

The Alberta Block on Stephen Avenue has young professionals living and working downtown, as well as the rural, stay-at-home wife with a high disposable income and, lastly, the tourists visiting the downtown core of Calgary.

Stephen Avenue contains the bulk of the young working professionals' group, due to the majority of businesses located right on Stephen Avenue. Stephen Avenue has 60,000 pedestrians walk by a day. The number includes both men and women. The "Fashion Central" community allows each consumer to easily locate and/or contact the stores they want to visit. Because "Calgary's urban residential is rapidly growing, especially in the downtown areas such as Eau Claire, and the Beltline, all within walking distance to the Fashion Central, the projected future population for resident occupancy will reach 85,000 in downtown Calgary alone.

In addition to the walk-by traffic on Stephen Avenue (60,000), drive-by on 8^th amounts to 11,000 vehicles, and 1^stStreet amounts to nearly 30,000 vehicles.

Competitors located on the Stephen Avenue block are Holt Renfrew and Shisomiso.

YOUR TASK:

Be specific in your answers.

1. Formulate a Marketing Plan for Ondraya. Fill-in the attached Marketing Template.

Competitive Matrix

Quality of Products

Quality Of Service:

Location

Externals

Internals

Pricing

Promotion

Range of Products

Brands Available

Unique Designs

Materials/Fabrics Used

Knowledge of Employees

Friendliness of Employees

Appearance of Employees

Unique Services

Store Information Available

Analysis

Traffic Flow

Signage

Displays

Parking

Atmosphere

Signage

Displays

Range of Prices

Visible Pricing Strategy

Range of Promotions

Website Available

Holt Renfrew

Men's and women's clothing, accessories, gowns, footwear, cosmetics, jewelry, intimates.

Carries over 300 different brands, yet not all are available at the Calgary location.

Unique one-of-a-kind designs ranging from extremely formal gowns to casual jeans. Many of the designs are unique in that you cannot find them anywhere else in Calgary; they are exclusive to Holt Renfrew.

The materials used in the products are the highest quality knits, leathers, silks, etc.

Employees are extremely knowledgeable regarding the product they are selling. Each designer carried in the store has a specialist who is a product expert.

Very friendly employees who immediately offered to call other stores for items unavailable.

No required uniform yet professional and very trendy appearances were seen throughout the store. The employees wore brand name clothing, making them look quite polished and put together.

Employees offered to come to client's homes, with their wardrobe, and personally style them.

Holt Renfrew cards available at all cashier desks.

60,000 sq ft. Calgary Eaton Centre 751-3rd Street SW Three Levels, 9 indoor and 3 outdoor entrances

In 10 minutes, 9 people entered the store (1 of 9 entrances)

One large sign above main outside entrance.

Total of seven window displays with both male and female mannequins--very well styled and attractive displays. There were also nine window displays inside the Calgary Eaton Centre.

Variety of parking available including Sears parkade, Calgary Eaton Centre parkade and Bankers Hall parkade. None of the parking is free; it is all paid by the hour, yet $2 parking is available on evenings and weekends.

The internal atmosphere is very clean and very organized; nothing is out of place. The music is quite low and soft, and the store is spacious.

Signs were placed throughout the entire store stating the designer's name or collection you are looking at. There are no signs that describe the products.

Mannequins are placed throughout the entire store and were very well dressed from head to toe. Table displays are throughout the store with neatly folded clothes and accessories placed neatly.

Varies from $60 basic tees to jewelry that can cost hundreds of thousands of dollars.

Prestige Pricing

Advertising is done through television, radio, and newspaper, as well as a Holt Renfrew catalogue. They promote upcoming events by personally calling clients at their homes to invite them.

Yes, but you cannot purchase online. (www.holtrenfrew.com)

Banana Republic

Men and women's clothing, loungewear, intimates, swimwear, jewelry, purses, wallets, shoes, body care

Banana Republic Private Label

Unique designs ranging from collection and suiting items to denim. Designs are very similar and basic yet come in a variety of bold colours and prints.

The materials used are high quality including cashmere, leather, and silk, but cotton and polyester are used as well. The fabrics seemed well constructed with clean and simple lines.

Employees knowledgeable about the product, yet not experts. The manager was very knowledgeable about the products, yet the employee was new and did not know much about the different products.

Employees were polite and asked how we were doing as entering the store.

No required uniforms, but had to have "Banana Republic" style. The employees all wore clothing that was quite colourful.

N/A

Business card available at front cashier.

1,500 sq ft. Chinook Centre 6455 MacLeod Trail South Lower level, extremely close to main entrance, indoor entrance only

In 10 minutes, 12 people entered store

Nine signs of actual name--one large above entrance and eight smaller on windows.

Window displays consisted of 11 dressed female mannequins, as well as accessories.

Mall parking of over 5000 stalls including covered lots.

Internal atmosphere very welcoming and colourful; soft classical music played in background.

Small signs were placed throughout the store stating the price and description of the products. Also, a very large "Now Hiring" sign.

The clothing and accessory displays were very tidy; sale items were very messy and looked disorganized.

Varies from a $25 basic tee to a $400 leather jacket.

Follow the Leader Pricing

Worldwide advertising is done in fashion magazines. They advertise mainly through their window displays and word of mouth.

Yes, and you can purchase all products through the website. (www.bananarepublic.com)

Club Monaco

Men and women's clothing, purses, scarves, hats, home accessories, books, wallets, jewelry, belts, gloves, sunglasses

Club Monaco Private Label

Unique designs ranging from formal dresses to casual wear in limited colors. Main colorus throughout the store are black, white, and grey.

The materials used are very high quality including silk, cashmere and wool, yet cotton and polyester are used as well.

Employees quite knowledgeable about the clothing, from the fabrics to the washing. The manager was also very knowledgeable about the company and customer concerns.

Employees were polite, yet took a bit longer to greet us. After greeted, we were left alone.

Required uniform is a white collared shirt, black skirt or pants, and a black sweater that are all "Club Monaco" brand.

N/A

Nothing available.

1,500 sq ft. Chinook Centre 6455 MacLeod Trail South Lower level, extremely close to main entrance, indoor entrance only

In 10 minutes, 10 people entered store

Two signs of actual name--one large, lit-up sign and one black on window display.

External window displays were very nicely dressed; 3 male and 3 female mannequins.

Mall parking of over 5000 stalls including covered lots.

Internal atmosphere very friendly; soft alternative music is played at a moderate level.

Different types of signs were used throughout the store stating what the store carries, current trends, gift card displays, and information about the products.

The clothing and accessory displays were very neat, consisting mostly of folded clothes that matched in colours

Varies from a $22 basic tee to a $489 leather jacket

Follow the Leader Pricing

Only use corporate promotions. No promotions are done locally. Advertisements are used only in a few selected magazines and by word of mouth.

Yes, and is relied heavily upon for advertising their merchandise but you cannot purchase online (www.clubmonaco.com)

Purr

Men's and women's clothing, purses, scarves, hats, accessories, jewelry, gloves, footwear, sunglasses

Large variety of unique brands including Kensie, Free People, Habitual, Vero Moda, Fidelity, and Coffeeshop.

Very unique and artsy designs that come in all different colours and styles. Most of the jewelry is from Calgary-based designers so the items are very exclusive to the store.

All different types of materials are used, yet none are extremely high quality. There are lots of cottons and knits throughout the store.

Employees did not seem as knowledgeable about the products in the store. They knew basic information, but relied on management to have more expertise on the products sold.

Greeted numerous times by a number of different employees in a very friendly manner.

No required uniform, but very trendy clothing was worn by all employees. They all wore items that would stand out in a crowd.

N/A

Business cards available at front cashier.

2,000 sg ft. 100-601 17 Avenue SW Two levels with one main entrance.

In 10 minutes, 12 people entered store.

One large sign above door entrance, one large Purr logo on building, one sign stating store hours.

A total of 3 window displays consisted of female mannequins; the windows were painted with bird designs.

Very limited parking--a total of 10 stalls, which they shared with other retailers.

Very friendly atmosphere, very light store as it consists of mainly windows. The music was quite low pop music.

Signs were not used inside the store.

The clothing and accessory displays were very tidy and very colour coordinated. The sale items were slightly messy.

Varies from $5 jewelry to $300 jackets.

Prestige Pricing

Advertising is only done through word of mouth and their stand out location.

no

Worth

Men's and women's clothing, jewelry, belts, hats, scarves

Variety of unique brands including Kenzo, Generra, Turk & Taylor, Beth Bowley, and Rag & Bone.

Very unique designs from mostly New York-based designers. Most of the designs were upscale casual wear and very trendy pieces.

All different materials were used throughout the store including different types of knits and leathers, and rare jewels.

The owner was an expert on the products carried in the store. He knew about the products, where they were from, how to care for them, and what made them unique.

Greeted immediately by the owner who made a very comfortable feeling.

No required uniform, yet the employee and owner were dressed extremely well. They were dressed casually and had more of a New York style.

Personal styling services are provided if needed.

Business cards available at front cashier.

2,500 sq ft. 119, 1013-17th Avenue SW One level with one entrance.

In 10 minutes, 3 people entered the store

One large sign above the main entrance

One front window display with a large stuffed deer and a nicely dressed female mannequin.

No parking spaces other than the street.

Internal atmosphere friendly yet very dark and artsy. It was very nicely decorated with unique items such as skulls and egg chairs. The music was quite low 80s music.

Signs were not used inside the store.

The clothing was all hung on hangers; there were no table displays. The clothing was very tidy and separated by product (shirts, skirts, pants, etc.) The jewelry was displayed in large glass displays.

Varies from a $60 basic tee to a $10,000 bracelet.

Prestige Pricing

Advertising is done through the television, but the store relies mainly on their location and word of mouth to promote their name.

Currently working to get one up and running soon (not up yet)

Focus Clothing

Women's clothing, scarves, belts, formal gowns, jewelry, undergarments, purses

Variety of contemporary brands including Michael Kors, Cecile Benac, Franco Mirabelli, Misura, Teenflo, and Betsy Johnson.

Very professional looking designs from Canadian and American designers. Most of the products were very formal or business attire; there was not much casual wear.

The materials used throughout the store were very high quality. Silks and cashmeres were seen throughout the store, and very high quality beading and chiffons were on the gowns.

The employees did not seem too knowledgeable about the products throughout the store, or about the store in general. They knew a few basic facts, yet relied on management to answer any difficult questions.

Greeted immediately by very friendly employees whom asked if we needed any assistance.

No required uniform, yet the employees were dressed quite well. Very high fashion clothing was worn (stiletto heels, black tight clothing, large jewelry)

The store does many special orders on gowns as they only carry a few sizes in the store.

Business cards available at front cashier.

1,000 sq ft. 800 16th Avenue SW One level with one main entrance.

In 10 minutes, 4 people entered the store.

One large sign above the main entrance, small "Store Hours" sign, as well as stickers on the windows displaying a few brand names they carry.

The store did not have any displays in their windows.

No parking spaces other than the street.

Internal atmosphere very contemporary and very open. It was a very light space as half of the walls are windows. The music being played a radio station and was played at a medium level.

Small signs were placed throughout the store above the clothing to state what brand you were looking at. There was also a large now hiring sign at the front desk.

Most of the clothing was hung on hangers; there was one table display. The clothing was very tidy and was organized according to the brand. The jewelry was all displayed in large display cases throughout the store. There were also 6 mannequins throughout the store, yet only 3 of them were dressed; however, they were dressed very professionally and well accessorized.

Varies from a $50 tee to a $800 leather jacket.

Prestige Pricing

Advertising is done through Avenue Magazine, local restaurant fashion shows, word of mouth, and their location.

no

Shisomiso

Women's clothing, jewelry, vintage sunglasses, purses, pillows, belts, handmade plates and mugs, hats, specialty items (baby dresses and baby tank tops)

Variety of exclusively Canadian brands including Lapuz, Nokomis, Paperbird, Guido & Mary, and Sessa.

Unique one-of-a-kind items strictly from Canadian designers. The designs throughout the store were somewhat casual, yet high maintenance to care for as most items are handmade.

The fabrics used throughout the store were mostly knits, silks, and cottons. It was easy to determine that the items were handmade as there was much attention to detail used on the designs. The designs were very feminine and we found soft embroidery was throughout. The fabrics used on the purses is imported from India.

Very knowledgeable employee who was full of information about the different designers as well as where the clothing was from. The employee also was well informed about each of the designers the store carried.

Greeted by very friendly employee and asked how we were doing.

No required uniform. The employee working was dressed very casually in jeans and a dark sweater.

The store will contact the local designers to do special orders. This includes special orders in home accessories and clothing.

Business cards available at the indoor front entrance on small table.

800 sq ft. 105 100 7th Avenue SW Main level of Art Central building. There are two entrances to the shop--one street entrance as well as one indoor entrance.

In 10 minutes, 3 people entered the store.

Six signs of actual name--one large sign above outdoor entrance, 4 on the outdoor windows, as well as a smaller fabric sign inside the Art Central building beside their door. Also a sign on door stating store hours.

One window display seen from the street, which consisted of 4 female mannequins . The window display also featured a framed newspaper review of the shop.

Imperial Parking lot directly across the street, but other than that no parking spaces other than the street.

Internal atmosphere very comfortable and old fashioned. There were a variety of different antiques (sewing machines, art) throughout the store, which gave it a very home-like feel. The music was quite low and soft.

Signs were not used inside the store.

All of the clothing was hung on hangers. There were table displays but they were displaying the purses, pillows, and baby clothing. The clothing and table displays were very neat and everything was colour coordinated. The jewelry was displayed in 2 different vintage glass cases. There were 3 mannequins inside the store dressed very neatly.

Varies from a $15 sleeveless top to a $300 knit sweater.

Prestige Pricing

Advertising is done mainly through Avenue Magazine and word of mouth. They also do a number of art shows in their shop, dress local television personalities, and have a great location based on their target market.

Yes, and there are links to the different designers they carry so it is easy to make online purchases.

questions

Define the market opportunity that exists in the Calgary market?.

Target Market Segment

Describe target market (circle all that apply):

Gender	Type	Age	Income level (pick
Male	Urban Professional/ non professional/ Tourist/Rural	____	_______ (high/medium/ low)
Female	Urban Professional/ non professional/ Tourist/Rural housewives	____	(high/medium/ low)
Pick from the above choices

Cont'd below.

Psychographics: What are the psychographic characteristics of your target customers?

brand positioning. what will be ondraya's brand positioning?

Identify key competitors in the market:

Size of target market

Growth rate of target market

marketing plan Objectives.

List objectives of your marketing plan:

Objective
1.
2.
3.

marketing mix strategy.

Product

Product description

Brand Names: List brands you will sell. Why these brands?

Product Returns

Products purchased on-line can be returned online? Yes No

Products purchased on-line can be returned in-store? Yes No

Products purchased in store can be returned online? Yes No

Company will pay for shipping on customer returns? Yes No

Product Life Cycle

What stage of the product life cycle are the products that you are going to sell in?

Introductory Growth Maturity Decline

Services offered.

List all the special services you will offer your customers in the store to gain competitive advantage.

pricing

Strategy

Circle the pricing strategy you will use:

Penetration

Skimming

Prestige Competitor

Based

What stage is your market in?

Introductory

Growth

Maturity

Decline

How will this affect your pricing strategy?

Price Comparison

Compare your price to your competitors for any 2 brands that you are going to sell.

Brand _______: Exclusive: Yes No

Competitor	Price	Your Price
Brand _______Exclusive: Yes
1. No 2. 3. 4. 5.

If serious price differences exist, how you will justify them.

Discounts

Circle discounts, if any, you will offer to your customers:

Quantity Cash

Seasonal Promotional Rebates

Special Pricing Tactics

Circle special pricing tactics you will use:

Single-price Flexible price Service pricing

Leader pricing Odd-even Bundling

promotion Objectives

Communication objectives:

Communications Strategies

Describe:

Design

Promotional tools designed by: In-house personnel

Outside agency

Combination

Media: Be sure you can afford the cost (what % of sales). Indicate a budget for promoting your products.

Select media for promotions:

Television (stations)	Radio (stations)	News-papers	Magazines	Outdoor (cities)	Internet (sites)	Social Media

Public Relations Activities

Describe how you will use public relations to achieve your objectives.

List public relations activities:

Personal Selling

Describe how you will use personal selling through sales personnel to achieve your objectives.

How will you compensate them?

Salary only Salary + Commission

Commission Only Other

Social Media

Describe how you will use social media to achieve your goals:

Which social media tools will you use?

Blogs Social networks

Microblogs Media sharing sites

Social news sites Review sites

sales forecast

Year 1 Year 2 Year 3

Sales Revenue -------- -------- --------

Justify your numbers. Show how you calculated them.

Hint:

Canadian market size: $ ___________

Calgary Market size: $___________

Target Market segment % __________

Market Share of Ondraya % ________ (store size of Ondraya vs total

retail space for all 5 competitors)

marketingPLAN: IMPLEMENTATION

Identify measures you will take to control performance of your marketing plan:

Which measurement is most important?

Why?

What is the financial impact of marketing if performance standards are met?

If performance standards are not met?