Carmine Lingerie

FSH 633 Retail Management and Operations

Final - Business Plan for Independent Retail Boutique
Emelia, Tanya, Annabelle, Ashley
 Mission Statement
We want to make women feel that wearing lovely lingerie is an everyday luxury, and help women feel beautiful
and confident, starting from the inside out.

Vision Statement
Captivating customer experiences that drive long term loyalty and deliver sustained growth for our
shareholders.
Core Value

Our stores foundation is built on our core values,

which distinguishes us and guide our actions. We
conduct our business in a socially responsible and
ethical manner. We respect the law, support
universal human rights, protect the environment and
benefit the communities where we are.

Local source
Hand on service
Specialist preconize
Commit to international market
Stay on trend
Find local designer
Good customer service
Ethics Policy
Ethical Trade
We promise to dedicate on ethical trade, and we want to make our
business more ethically aware and responsible. We strive to doing the
best to deliver the ethical trade.
Where our lingerie come from: We work with local designer, and we
want to work with our partner that share our responsibilities and values.

Ethical Trade in Practice

We strive to have good partnership with our partner. Listening to the
views of our partners and understanding their needs has become
essential to our approach to ethical trade and we continue to explore
new ways to do this.

Charity Commitments
We want to help more and more people, so we have donated to some
U.S charities such as No kid Hungry.

Health & Safety

We provide our employees working on the health and safety workplace.
PESTLE Analysis

Political Factors
Since Donald John Trump become the current President of the United States, there are some political
reform have changed in the United States, especially it affects California a lot. One of the biggest issue is
immigration policy of Donald Trump. He build a substantial wall on the Mexico-United States border to keep
out illegal immigrants and require that Mexico should pay for it. In addition, Trump signed executive order to
ban the admission of immigrants from seven predominantly Muslim countries such as Iran, Iraq, Syria, Sudan,
Libya, Yemen and Somalia, and many people protest against this order. Even though he revised order to give
specific exemptions for permanent residents excluded Iraq, people still protest it. As the most populous state
in the United States, California is fighting back against President Trumps Administration, and California has
started protesting and want to become an independent country.

Moreover, the California statewide sales and use tax rate will decrease by 0.25% from the 7.50% to the
new rate of 7.25% since January 1, 2017, according to California State board of equalization. However, most
main cities still remain higher than the statewide rate because of local voter-approved district taxes in those
areas. Therefore, if a retailer charges an incorrect tax rate from their customers, they must refund to their
customers or pay the excess tax to the Board of Equalization (BOE).
Economic Factors

The United States economy is currently emerging from a period of considerable turmoil because
many factors such as political party alternation, high unemployment rate and foreign exchange rates.
Political party alternation can be a one of the most important reasons to affect economy. Since the
election of the President, the economy is unstable. After Trump become a current President, he signed
some orders to affect economic factors. For example, Trump proposal to raise tariffs on Chinese and
Mexican exports to the United States. He also abandoned the member of Trans-Pacific Partnership (TPP).
These will affect retailer exports product from other countries.

Moreover, the California statewide sales and use tax rate will decrease by 0.25% from the 7.50% to
the new rate of 7.25% since January 1, 2017, according to California State board of equalization.
However, most main cities still remain higher than the statewide rate because of local voter-approved
district taxes in those areas. Therefore, if a retailer charges an incorrect tax rate from their customers, they
must refund to their customers or pay the excess tax to the Board of Equalization (BOE).
Economic Factors (continued)

In addition, high unemployment rate also is a big issue for the economy factor even though the
unemployment rate is not higher than before, but Californias unemployment rate is still higher than
average unemployment rate, according to. High unemployment rate will cause economic depression
and inflation, and it will affect people the desire of shopping. Finally, foreign exchange rates affects
apparel industry a lot because many company vendors are from abroad countries, so it directly impact
companys financial performance.

Source from: U.S. Bureau of Labor Statistics

Social Factors

Lingeries market is growing in popularity in Bay Area, which represents a real opportunity for our
business, as we sell high quality lingerie. However, Bay areas population is aging, which means that we
cannot ignore the older demographics. Second, social media has large influence on customers decision, so
we need to make sure that we deliver the greatest information of our products to our customers, and how
and where to invest our advertising to create more productivity.

Technological Factors

Technology is a very important consideration in US. Online shopping, including shopping for clothing is
on the rise in US; therefore, we have to make sure that have a robust and user-friendly online store opening
in concert with our physical location. One area that needs to be considered is the integration of mobile
technology into the physical store. Second, the technology is growing, and also develop the way that
customer pay for products through smartphone (like Apple pay, Android Pay, Samsung Pay) in store and
online store.
Legal Factors

With the rise of human rights awareness, many apparel industries are focus on labor right and work
environment. Many company started to promise that they have achieved the minimize salary for their labor.
In addition, the gender distribution of employees appears to be much more even in the general ranks.
Moreover, the work environment is also one of the big issues.

Environmental Factors

According to the latest market report published by Persistence Market Research, titled U.S. Market
Study on Men's Underwear and Women's Lingerie: Driven by Proliferation of Modern Retail Format and
Online Store during the Forecast Period, the online store segment is expected to be the most valuable
segment in terms of revenue throughout the forecast period. The U.S. womens lingerie market revenue is
anticipated to expand at a CAGR of 5.4% from 2015 to 2021. Therefore, there is a growing power in
lingerie industry. Second, to sustain our business, we need to consider making products with fair trade
and using recyclable fabric to decrease the unnecessary waste and pollution.
Demographics
Female
Ages 25-35
In a relationship
Disposable income
College educated
Travels often
Lives in California
Has her own
apartment/house

Psychographics
Fashion/trend driven
Concerns about the
environment
Pays attention to product
background
Health conscious
Prefers shopping at
boutique stores
Supports local products
Primary Target Customer
Kate
28 years old
Masters degree graduate
Works at an advertising agency
Earns $90,000 annually
Lives in San Francisco, California

Spends free time hanging out in the mission

district and other trendy neighborhoods in the
city
Enjoys shopping at boutique stores
Exercises regularly, preferably yoga
Is in a committed relationship and lives with
partner
Travels often both for work and leisure
Demographics
Female
Ages 18-24
High school/college educated
Single
Lives in California
Lives in college dormitory or
with parents
Works part time

Psychographics
Active
Sociable
Into art, music, fashion
Outgoing
Enjoys shopping boutique
stores
Trend/style driven
Social media user
Secondary Target Customer
Caroline
19 years old
Freshman at San Francisco State University
Works part-time at the Urban Outfitters store
Earns $20,000 annually from part-time job but
also has support from parents
Lives in San Francisco, California

Fashion/trend driven
Frequently shops at malls and boutique stores
Spends free time outdoors; going to Dolores
park and hanging out with friends
Avid technology and social media user
Shops both online and instore
Demographics
Male/Female
Ages 25-35
College educated
Disposable income
Single/in a relationship
Lives in California

Psychographics
Gift givers
Fashionable
Trend/style driven
Sociable
Is a sister, friend, or
boyfriend
Technology and social
media user
Tertiary Target Customer
Nate
32 years old
Business owner
Earns $120,000 annually
Married
Lives in San Francisco, California
Owns a house in the Marina

Family oriented
Pays attention to detail
Enjoys celebrating special occasions with
friends and family
Fashion/trend driven
Often buys gift for his loved ones
Travels often
Avid technology and social media user
Location Analysis
Type of Location
This location is unplanned because it is freestanding and is
not a part of a shopping common space. Furthermore it
exists as a part of the mission on Valencia which, over the
last five to ten years, has become a gentrified residential
area. The area has gone through significant development
as the influx of affluent people has spread to various parts
of San Francisco and caused redevelopment in urban
areas as there is a demand for more convenient
entertainment and shopping near where they live. This
sense of convenience shopping which will be sought out
by our customers will affect how we can do business as
well as aspects of our merchandising strategy.

Rental Price
$7,300 a month. For a retail space that runs around 1000
sq ft on a prime shopping street like Valencia and
intersecting on 20th Street, this is an average monthly
rental rate.
Location Market Analysis
This area holds about 935,000 people in a 5-mile radius, and has foot traffic of about 45,700 people a day over a 1
mile radius. The people living in this area have an average household income of about $119,500 and the largest
segment of this population are men and women 25-34, making up 22.4% of the total population in a 5-mile radius,
approximately 202,100 people. To classify, this area commonly sells to three segments of customers.

The majority are San Francisco locals residing in the mission as well as neighboring areas such as Noe Valley.
These people can vary in age and marital status but typically have in common relatively high incomes and a
preference against big brand names. They value local goods designed in the US, and preferably close to or in San
Francisco. Furthermore, they value the perceived uniqueness of a product based on the background it comes
from. They have an eye for overarching trends but care less than other consumers about being fashion forward and
instead like to think they retain a higher sense of individual style.

The second group of consumers often found are somewhat younger audiences often with somewhat less
disposable income who are in the area for Dolores Park or other parts of the mission, this group also shops based
on convenience but with less intent to actually shop so less dedication to making purchases.

The third group consists of tourists who visited the area because either they are with someone from the city or they
heard about the mission as an up and coming area. They can vary in income status and taste but are often more
willing to make purchases because they perceive all items to be things they cant find at home.
Store Layout
910 Valencia St, San Francisco, CA
94110

This space is about 1,139 sq ft with

about 4/5 of the space dedicated to an
open selling floor, and 1/5 for a restroom
and storage. The space itself is
rectangular and very deep with little
width so little natural lighting and only 2
storefront windows. The immediate
surrounding area includes an art gallery,
a clothing store, an ice creamery, and a
bookstore.
Retail Mix
Location: This is an unplanned location situated on 910 Valencia Street close to the corner of 20th Street. It is
situated in a high traffic area amongst various other retailer and eateries.

Merchandise Management: We plan on having the majority of our merchandise being bras and lingerie, but we
also plan on selling nightwear and a limited selection of perfume with thoughts of some expansion into beauty
products.

Pricing: Bras:$70-$120 Bralette:$90-$165 Panties: $40-$95 Lingerie: $95-$250 Beauty products: $55-$160
Customer Service: Seeing that our boutique is small, we believe we have
the perfect opportunity to provide good personalized customer service
with the option for each customer to be fitted and given product
suggestions based on their style and need.

Store Design and Display: The store itself will have limited space so we
would like to have several racks of single size runs of each product and
certain items featured along the middle of the store. We would also like
to provide good ambient lighting to adhere to the intimate feel of what
we think a lingerie store should present, and we would dedicate a certain
amount of space to a fitting room and seating for individuals
accompanying customers.

Communication Mix: As a boutique in the Mission, most of our

customers would be walk ins or people who shop with us based on
word of mouth. Very few of the shops in this area do much in advertising
other than a good presence on social media. Also given the average
income of our customers, we would probably do few to no promotional
sales but perhaps feature a brand as a part of a pop-up
Competitors
There are no direct competitors in the neighborhood we want to start business in, however individuals in
this neighborhood still look to businesses in San Francisco or online for comparable products.

Direct Competitors - Victorias Secret

Currently Victorias Secret dominates the lingerie and loungewear market making up about 61.8% of total
sales. As such, their target market is diverse and they sell several lines to several types of customers varying
in age, location, and household income. Really the only common theme of their customers is that their
products are bought by or for women.
Location: 335 Powell St, San Francisco.
This location is unplanned but in the heart of Union Square, a highly populated shopping district with a lot of
foot traffic and popular retail brands.
Merchandise Management
They sell bras, bralettes, panties, lingerie,
athletic wear, sleepwear, and beauty products.
The majority of their sales are dedicated to their
bras and panties with lingerie as a second
highest selling category.

Pricing:
Bras: $20-$65
Bralette: $20-$45
Panties: $9-$25
Lingerie: $30-$98
Athleticwear: $15-$37
Sleepwear: $20-$72
Beauty: $18-$52
Customer Service: Victorias Secret has excellent customer service with individuals always on
hand ready to offer any customer general help or the chance to be measured for the right bra fit.
They also provide very tailored service from store floor to dressing room to purchasing counter.

Store Design and Display: Their store sizes and locations can vary but they all have very common
design themes of trademark shades of crme and pinks with accents of black. They also use
many body mannequins throughout the store to display merchandise. One can often almost
instantly recognize a Victorias Secret store by the pink stripes and advertisements of famed
Victorias Secret models in angel wings, high heels, and beautiful underwear.

Communication Mix: They have strong brand recognition, and advertise and promote by social
media, email marketing, mobile marketing, promotional offers, monthly coupons, semiannual
sales, television commercials, and through their annual fashion show.
Strengths:
Strong personalized customer service
Offers for bra measurements
Great Sales and promotional deals
Strong media presence
Strong Brand Recognition

Weaknesses:
Lack of exclusivity because of national
presence
Price points are potentially lower than our
customer wants
Brand is often over-sexualized
SWOT Analysis

Strengths Opportunities
Brand value/customer loyalty Expansion into e-commerce
Locally sourced products Opening more stores
The only lingerie store in the More product assortment
area Technological systems to
Customizable products improve data keeping
Customer service
Social media marketing
Weakness Threats
Low brand recognition Economical
Limited product instability
assortment Competitors
Single channel retailing Increase in rental
price
Brand Positioning Stylish

Affordable High price point

Casual
Competitive Advantages

Professional customer service

Personal tailoring service offered
Products are locally sourced
Trending shopping destination for
tourists.
The only lingerie store in the
neighborhood
Each styles are limited to prevent
overstocking and to always keep up with
the latest trend
Competitive Strategy
Financial Objectives
Our companys profitability continue growth in every year.
To increase number of the store in the United States.
Maintain the financial sustainability during periods of economic turmoil.

Societal Objectives
Establish successful pricing.
To provide an innovative variety of product with local desiger.
We are a eco-friendly marketing company, so we use all recycled products in day-to-day operation of
the business.
Establish cost-effective logistics
Consider our customer health, our products are marketing no chemicals or additives.

Personal Objectives
To increase our brand awareness and reputation and become a well-respected company.
To entry the international market.
To offer the good customer service to satisfy our customer
Competitive Strategy- Goals and Objectives

Long Term Goals (3~5 years): Short Term Goals (1~3 years):

To increase sales revenue. To build our brand awareness and

To open additional 2~3 stores. reputation.

Continue to expand categories. To start e-commerce business.

Carry more unique products with more local To expand 1 or 2 categories such as

designers. seasonal product- swimwear.

Our e-commerce business continues growth and To open 1 retail store in 3 years.

drive becomes stable business. To build customer loyalty.

Start to entry international market, so we begin to To give our customers good shopping

deliver our products to other countries. experience to get positive feedback.

To get 95% positive feedback for our customers.

Bras

$70-$120
XS-L
Bralette

$90-$165
XS-L
Panties & Thongs

Bundle packs also available

$40-$95
XS-L
Nightgowns & Robes

$95-$170
XS-L
Bodysuits

$150-$250
XS-L
Bridal Collection
We also offer bridal lingerie
collections ranging from bras to
garters, to night gowns. Our
specialized sales staff will assist
customers with special orders as
well as fittings.

Bras $105-$175
Bustier $280-$350
Panties/Thongs - $65-$135
Garter Belts $125-$220
Garters - $75-$105
Robes - $150-$240
Night Wear - $140-$250
Beauty Products

Perfume Body Oil Body Spray Lip Gloss Body Lotion

$55-$160
Place: distribution strategy

We sell our products through different channels. We not only sell our products through our retail store; we
also sell it through e-commerce. This method allows us to reinforce our sales through reaching the
maximum of our customers, allowing them to buy our products no matter where and when they want to
shop. Through these diversified channels we understood that our customers have different buying
attitudes and needs which will influence the way they shop.

Moreover, we through our store to offer an exceptional experience to our customers to make them
experience a special feeling of magic, fantasy, and softness. We provide a soft and feminine environment
with a very expertized selling force that assist our customers and help them in their shopping experience .
However, for those people who can not visit our store due to time , distance constraints , or feeling of
embarrassments. Our website which is another choice for customers who prefer shopping online, who
dont have the time , dont feel conformable buying in the store , or use it as a tool for information search.
Therefore , this strategy is not just to suit the different needs of customers , also can drive our sales.
Promotion: marketing strategy- customer Relationship Management
Customer contacts
Although we dont have website, but we have some social media homepage such as Facebook and
Instagram, so customer can give us feedback via these social media. We also can post our store information,
new arrival products, and promotion activities in social media to increase customer relationship.

Customer preferences
We would do customer survey to create a customer data-base, ask some questions about what kind of style
and function they like, how frequently they visit our store, why they purchase our products, to help us to
predict the specific product they may be more interesting, and offer effective promotions for them.

Loyalty programs
We have loyalty program for our frequent shoppers. We provide rewards for our customers. For example, if
the customers who has collected 1000 point, they can use points to exchange free gift.

Gift box offering

We offer gift box service to our customer, and sometime we would have limited gift box for some special
holiday such as Valentines Day or Christmas Day.
Store Information
Business Hours: 11AM-7PM, W-M closed on TUESDAYS
Holiday Hours: Closed on National Holidays
Christmas Eve 11AM-3PM
New Years Eve 11AM-3PM

Customer Policy

Exchanges & Returns

We accept returns of unused items within 14 days from the date of purchase. Items must be in
original selling condition with all tags attached. No returns will be accepted if:
Incomplete, damaged, worn, altered or washed.
Custom ordered items.
Items purchased with a discount or during seasonal sale periods. These are final sale.
Gift cards may not be returned, or redeemed for cash, unless balances are under $10.

Payment Options
The following credit cards are accepted for payment: American Express, MasterCard and Visa.
We reserve the right to request additional identification info.
Staffing - Sales Associate
Description
Sales Associates drives sales growth by flexing into multiple areas of the store including floor setup
and/or, processing, replenishing, cashiering, and selling. Serving the customer is always the top
priority regardless of work area.

Key Responsibilities:
Processes merchandise to be floor ready and maintains back room and under stock to brand
standards.
Replenishes merchandise to brand standards to ensure product is placed on the sales floor and
available for purchase.
Delivers a friendly and efficient cash wrap experience, processing customer transactions
accurately and efficiently at the Point of Sale (POS).
Proactively engages with customers, reads cues and responds effectively.
Provides customers with the perfect bra fit by asking effective questions.
Driving top line store sales results and growing the business through action and productivity.
Creating customer awareness of programs available to them, (i.e. new arrivals, sales promotions,
phone and email capture) to build customer loyalty, when applicable.
Understanding and adhering to visual merchandising brand standards.
Assisting in housekeeping of sales floor and communicating maintenance issues.
Keeping an awareness of, and building personal capability in, loss prevention.
Staffing Sales Associate (continued)
Qualifications
Exhibits an authentic desire to exceed the
customers expectations
Proven ability to meet or exceed goals
preferred
Demonstrates a sense of urgency
Has a healthy, competitive spirit, while
maintaining a team focus
Is resilient and bounces back quickly from
setbacks
Pursues opportunities to take on more
responsibility
Seeks out coaching from leaders and peers
to improve productivity; leads own learning
Staffing - Buyer/Store Manager
Description
The Buyer drives sales growth by owning and leading the product lifecycle from purchasing to
merchandising the product on the sales floor for the customer in a visually compelling way.

Key Responsibilities:
Responsible for the overall appearance and presentation of seasonal merchandising strategies through
brand guide planning, mapping, and execution.
Responsible for all merchandise flow activities, including leading teams in processing and
replenishment.
Responsible for merchandise flow standards, assessments, inventory and backroom organization.
Leads physical inventory inclusive of scheduling, planning and follow-up.
Responsible for talent life cycle of direct reports, including recruitment, hiring, onboarding, training,
development, performance management, terminations and succession planning.
Delivering top line sales results and growing the business through business insight to action.
Effectively managing and controlling expenses.
Understanding, demonstrating and enforcing Company values.
Staffing - Buyer/Store Manager (continued)
Qualifications
Previous experience buying and leading teams.
Demonstrates ability to improve customer satisfaction
and drive customer loyalty.
Proven ability to effectively delegate, follow up and
communicate with all levels of the organization.
Demonstrates ability to manage complex and competing
priorities through time management and organizational
skills.
Demonstrates business acumen with strong strategic
and analytical skills.
Demonstrates strong visual merchandising skills.
Schedule flexibility that includes evenings, weekends,
holidays, and non-business hours.
Staffing - Visual Merchandiser
Description
The Visual Merchandiser supports in-store
experience by focusing on merchandise presentation
to drive sales growth.
Key Responsibilities
Participates in preparation and execution of floor
activity.
Supports execution of merchandising and sell
down strategies leveraging current visual
merchandising tools.
Conducts daily review and inspection of sales
floor to ensure all brand standards are in place.
Implements window installations and interior
displays.
Optimizes and maintains the use of visual assets
such as fixtures, props and marketing; ensures all
marketing and creative layer is current.
Understanding and demonstrating Company
values.
Qualifications
Visual merchandising experience, ideally
with a leading specialty retailer preferred.
Demonstrates the ability to execute brand
direction.
Demonstrates ability to follow through on
projects in a timely and efficient manner.
Demonstrates strong organizational and
communication skills.
Demonstrates the ability to multitask with
attention to detail.
Possesses and demonstrates a genuine
desire to provide excellent customer service
to both internal and external customers.
Ability to stretch, bend and lift moderate
weight.
Comfortable on ladder at various heights.
Schedule flexibility that includes evenings,
weekends, holidays, and non-business
hours.
Dress Code
Employees must be clean and well-groomed.
Grooming styles dictated by religion and
ethnicity are not restricted.

Clothing must be work-appropriate. Clothes

that are typical in workouts and outdoor
activities are not allowed.

Clothing must project professionalism. Clothes

that are too revealing or inappropriate are not
allowed. Skirts must be at or below the knee.

Clothing must be clean and in good shape.

Discernible rips, tears or holes are not allowed.

Clothing must be in neutral colors.

Employees appearance reflects the companys

image. Heavy makeup or facial piercings are
not allowed.
Training
New recruited employees will undergo a short
briefing with the store manager on the first day on
the topics of company values and standards. Then
they will be shadowing another associate for
on-the-job training including operating the cash
wrap, product knowledge, selling standards,
fittings, etc. Employees must also be aware of
safety standards and loss/theft prevention.
Store Security
CCTV
Surveillance cameras will be installed throughout
the store for precaution and theft prevention.
Cameras will be located by the entrance, cash
wrap, and stock room.
Burglar and smoke alarm systems
Burglar alarm system will be installed at the
entrance to prevent intrusion during non-business
hours.
Loss prevention & safety training
All employees will undergo basic safety training
and guide to theft prevention. It is at our best
interest to keep our employees and customers
safe.
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