these are the case study and questions.

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 Calpary, including Alexander McQueen, Christian Dior, Mare Jacobs, Rachel Roy, Nina Ricci, and Zac Posen. Successful brands to be camied already available in Calgary include MARC by Marc Jacobs, Nanette Lepore, and Twenty\&Twelve. Of these recognizable brands, the ones already offered in Calgary are only available at Holt Renfrew. Service of Ondraya will be first class: the pltimate. 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 curtomers 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, dye to.the. fact that the majority of Canadian suppliers do not carry the brand names K. Ondraya wishes to camy. Orders would be placed through sales representatives where a distribution contract wonld be signed. Supplier sources for brands carried would be: - Alexander McQueen (New York City) - Christian Dior (Paris, France) - Marc Jacobs (New York City) - Rachel Roy (New York City) - Nina Ricci (Paris, France) - Zac Posen (New York City) - MARC by Marc Jacobs (New York City) - Nanette Lepore (New York City) - 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. Rue. 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: - Welcoming and pleasant, going beyond what customers expect - Educated about all products and brand names camed - Clean, attractive, and polished appearance - Up to date on furrent trends in industry - Tailoring and measurement skills - Basic skills required to use computer propgams 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 colouss. The size of the store will be 747sqft. Competitive Analysis Indastry Overniew The Canadian Apparel Market is a competitive environment. According to Statistics Cansis, in 2020 the market conasited of 2,150 ectablichments and employed 69,911 indrividuals. The Cenadian womenswear market includer dresses, ruits, coats, jackets, shirts, skirts, blocses, sweatshirts, sweaters, and tmdenwear. The sale of dresses, shirts, and trousers accounts for 42.4% of the market's value. According to Data Mocitor, the market grew by 6.7% in 2020 , generating revenves of $12.6 billion. The market is furecart to have sales of $17.8 ballion in 2025,a41.2% 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 wumber. of high-euality retailers incloding Gap, Old Navy, and Banana Republic (20% of the market). The high end of the market is 30% of the total market in Camada 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 accessories - almoat double the amount spent on men'c Research shows that with the $307 billion pent in retail, there is only a $2 billicn difference between clothing/accessories and gasoline motor oil. Calgary accounts for 1.15% of the total Canadian womenswear market and in Calgary the retail indatry leader is Holt Renffew. Sales of women's clothing stores in malls grew in 2020 by 15.4%6 in Alberts, higher than any other Canadian province. Specialty apparel had the strongent sales growth in the Alberta market. Summary: Womenrwear market rize in Canada in 2020_._ 512.6 bullion Competition K. Ondraya will be competing against 337 womea'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 two are at the secondary level. All information for analysis was gathered through personal interviewz, 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 exelusive to Holt Renfrew: cames 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 altemative 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. Pur''s largest downfall is their lack of promotions. Word of mouth and location are their only sources. Focus Clothing a contemporary, strictly womenswear, store offers a umique 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., majocity. of the products being handmade, many are distinct and one of a kind. The small space is very imviting 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 Clnb 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 Monaco-as 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, sfaryes 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 increased 6% 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: 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 - Uniqueness of design - Materials nsed - Handmade/machine made - Attention to detail - 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. 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 Calpary. Stephen Avenue contains the bulk of the young working professionals' group, due to the. majocity. 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 "Farhion Central" community allows each consumer to easily locate and/or contact the stores they want to visit. Because "Calgary's urban renidential is rapidly growing, especially in the downtown areas such as Eay Claire, and the Beltline, all within wallang distance to the Fashion Central, the projected future population for reaident occupancy will reach 85,000 in downtown Calgary alone. In addition to the walk-by traffic on Stephen Avenue (60,000), drve-by on 8th, amounts to 11,000 vehicles, and 1 "Street amounts to nearly 30,000 vehicles. Competitors located on the Stephen Avenue block are Holt Renfrew and Shisomiso. DEFINE THE MARKET CPPORTUNIY THAT EXSTS IN THE CALCNAY MAREET. TARGET MAPKET SECMENT Deseribe target market (cirele all that apply): Cont'd below. Psychographics: What are the psychographic characteristics of your target customers? Identify key competitors in the market: Size of target market Growth rate of target market MSPCETAS PLN CeJECTVES. List objectives of your marketing plan: Brand Names: List brands you will sell. Why these brands? PRODUCT LIFE CYCLE What stage of the product life cycle are the products that you are going fo sell in? Introductory Maturity Decline SERVCES 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: PRICE COMPARUSON Compare your price to your competitors for the brands that you are going to sell. Use the competitive matrix file. Brand: Exclusive: Yes No Explain why your prices are abovelat paribelow the prices of your competitors. Discounts Circle discounts. if any, you will offer to your customers: Quantity Cash Seasonal Promotional Rebares Promotion Strategies Describe: MEDIN BE SURE YOU CNN AFFORD THE COST (WHUT \% OF SALES) INOICATE A BUDCET FOR PRDAOTNG YOUR PRODUCTS. PUBUC RELATIONS ACTIVITES Describe how you will use public relations, if any, to achieve your objectives. List public relations activities: PERSONA SELING 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 SOCIN MEDW Describe how you will use social media to achieve your goals: Which social media tools will you use? SALES FORECAST Justify your numbers. Show bow yeu calcalated them. Hint: Canadian market size: $ Calgary Market size: $ Target Market segment 41 Market Stare of Oadrwn 91 (store size of Ondrwa divided by the total retail space for all 5 competifors). Use the competitive matrix data in the file attached with this assignsent. MARKETING PLAN: IMPLEMENTATION Identify measures you will take to control performance of your marketing plan: i. 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 Calpary, including Alexander McQueen, Christian Dior, Mare Jacobs, Rachel Roy, Nina Ricci, and Zac Posen. Successful brands to be camied already available in Calgary include MARC by Marc Jacobs, Nanette Lepore, and Twenty\&Twelve. Of these recognizable brands, the ones already offered in Calgary are only available at Holt Renfrew. Service of Ondraya will be first class: the pltimate. 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 curtomers 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, dye to.the. fact that the majority of Canadian suppliers do not carry the brand names K. Ondraya wishes to camy. Orders would be placed through sales representatives where a distribution contract wonld be signed. Supplier sources for brands carried would be: - Alexander McQueen (New York City) - Christian Dior (Paris, France) - Marc Jacobs (New York City) - Rachel Roy (New York City) - Nina Ricci (Paris, France) - Zac Posen (New York City) - MARC by Marc Jacobs (New York City) - Nanette Lepore (New York City) - 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. Rue. 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: - Welcoming and pleasant, going beyond what customers expect - Educated about all products and brand names camed - Clean, attractive, and polished appearance - Up to date on furrent trends in industry - Tailoring and measurement skills - Basic skills required to use computer propgams 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 colouss. The size of the store will be 747sqft. Competitive Analysis Indastry Overniew The Canadian Apparel Market is a competitive environment. According to Statistics Cansis, in 2020 the market conasited of 2,150 ectablichments and employed 69,911 indrividuals. The Cenadian womenswear market includer dresses, ruits, coats, jackets, shirts, skirts, blocses, sweatshirts, sweaters, and tmdenwear. The sale of dresses, shirts, and trousers accounts for 42.4% of the market's value. According to Data Mocitor, the market grew by 6.7% in 2020 , generating revenves of $12.6 billion. The market is furecart to have sales of $17.8 ballion in 2025,a41.2% 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 wumber. of high-euality retailers incloding Gap, Old Navy, and Banana Republic (20% of the market). The high end of the market is 30% of the total market in Camada 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 accessories - almoat double the amount spent on men'c Research shows that with the $307 billion pent in retail, there is only a $2 billicn difference between clothing/accessories and gasoline motor oil. Calgary accounts for 1.15% of the total Canadian womenswear market and in Calgary the retail indatry leader is Holt Renffew. Sales of women's clothing stores in malls grew in 2020 by 15.4%6 in Alberts, higher than any other Canadian province. Specialty apparel had the strongent sales growth in the Alberta market. Summary: Womenrwear market rize in Canada in 2020_._ 512.6 bullion Competition K. Ondraya will be competing against 337 womea'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 two are at the secondary level. All information for analysis was gathered through personal interviewz, 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 exelusive to Holt Renfrew: cames 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 altemative 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. Pur''s largest downfall is their lack of promotions. Word of mouth and location are their only sources. Focus Clothing a contemporary, strictly womenswear, store offers a umique 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., majocity. of the products being handmade, many are distinct and one of a kind. The small space is very imviting 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 Clnb 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 Monaco-as 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, sfaryes 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 increased 6% 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: 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 - Uniqueness of design - Materials nsed - Handmade/machine made - Attention to detail - 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. 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 Calpary. Stephen Avenue contains the bulk of the young working professionals' group, due to the. majocity. 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 "Farhion Central" community allows each consumer to easily locate and/or contact the stores they want to visit. Because "Calgary's urban renidential is rapidly growing, especially in the downtown areas such as Eay Claire, and the Beltline, all within wallang distance to the Fashion Central, the projected future population for reaident occupancy will reach 85,000 in downtown Calgary alone. In addition to the walk-by traffic on Stephen Avenue (60,000), drve-by on 8th, amounts to 11,000 vehicles, and 1 "Street amounts to nearly 30,000 vehicles. Competitors located on the Stephen Avenue block are Holt Renfrew and Shisomiso. DEFINE THE MARKET CPPORTUNIY THAT EXSTS IN THE CALCNAY MAREET. TARGET MAPKET SECMENT Deseribe target market (cirele all that apply): Cont'd below. Psychographics: What are the psychographic characteristics of your target customers? Identify key competitors in the market: Size of target market Growth rate of target market MSPCETAS PLN CeJECTVES. List objectives of your marketing plan: Brand Names: List brands you will sell. Why these brands? PRODUCT LIFE CYCLE What stage of the product life cycle are the products that you are going fo sell in? Introductory Maturity Decline SERVCES 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: PRICE COMPARUSON Compare your price to your competitors for the brands that you are going to sell. Use the competitive matrix file. Brand: Exclusive: Yes No Explain why your prices are abovelat paribelow the prices of your competitors. Discounts Circle discounts. if any, you will offer to your customers: Quantity Cash Seasonal Promotional Rebares Promotion Strategies Describe: MEDIN BE SURE YOU CNN AFFORD THE COST (WHUT \% OF SALES) INOICATE A BUDCET FOR PRDAOTNG YOUR PRODUCTS. PUBUC RELATIONS ACTIVITES Describe how you will use public relations, if any, to achieve your objectives. List public relations activities: PERSONA SELING 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 SOCIN MEDW Describe how you will use social media to achieve your goals: Which social media tools will you use? SALES FORECAST Justify your numbers. Show bow yeu calcalated them. Hint: Canadian market size: $ Calgary Market size: $ Target Market segment 41 Market Stare of Oadrwn 91 (store size of Ondrwa divided by the total retail space for all 5 competifors). Use the competitive matrix data in the file attached with this assignsent. MARKETING PLAN: IMPLEMENTATION Identify measures you will take to control performance of your marketing plan