of women in the UK are wearing the wrong sized bra

85%

Is here to change it

Let’s start the Bra-volution!

Love at first Cup

A business development proposal for customized perfect fitting bras in the

UK

Andrea González Doris Blaha Eve Dansault Marion Ecard Stephanie Widmann

CONTENT

1. Introduction

2. Situation Analysiso Choice of online lingerie sectoro Sector Analysiso Competitive positioning

3. The brand "Love at first Cup"o The concepto How it workso Being responsibleo Target

4. 5 year plano Launcho Short termo Medium termo Long termo Timeline

5. Advertising approach

6. KPI framework

7. External resources

8. Conclusion

9. References

10. Appendices

INTRODUCTION

• Our idea: letting customers design their ideal bra in terms of comfort and style

• Online customization provides superior customer value by producing goods and delivering services that meet individual customer needs

• By involving consumers in the process, businesses are moving away from the “company knows best” model to “consumer knows best”

• Consumers place a higher value on goods they create themselves (Windisman, 2012)

• Generates increased customer engagement and interaction

• Our mission: to provide a level of fit, quality and comfort that cannot be achieved from mass-production techniques

• Wearing a bra that properly fits the body can absolutely change the way you look and feel

SITUATION ANALYSIS

CHOICE OF SECTOR

The online lingerie sector in the UK was chosen because it presents huge opportunities:

• Online purchasing of clothing and footwear has increased by 13 percentage between 2009 and 2011, making it the fastest growing category bought online (Mintel Fashion online, 2012)

• Over the next four years, the underwear market will grow by 9% till 2016 (Mintel Underwear UK, 2012)

• Emerging global trends: Globalisation 2.0, declining trust of customers, sustainability, technological convergence, cashless societies, growth of e-commerce and customization (Smith, 2011)

• Mass Customization: core strategy for successful enterprises (Walcher and Piller, 2012)

• In our concept, three consumer needs are targeted:

• to be part of the design process

• Individuality

• the perfect fit (Windisman, 2011)

SECTOR ANALYSIS

Strengths/Opportunities Weaknesses/Threats/Challeng

E-commerce• Growing potential customer base. Forecasted

growth in the UK of 86% between 2011 and 2016, to reach almost 9,4£billion*

• Number of 25-34s in the UK is predicted to grow by 10% between 2011 and 2016. This segment has great spending power and emerges as the most prolific online shoppers within the clothing category*

• Over eight in ten (81%) web surfers have bought items online in the UK over the last 12 months*

• 85% of Internet users think that shopping online helps in avoiding crowds in the shops and 74% think that browsing online reduces the time spent in stores*

• Opportunity of providing augmented reality, “virtual fitting rooms", catwalk videos and social shopping

• Opportunity of global expansion to increase our revenue potential while providing a great breadth of choice and relatively low prices

• Loyalty and satisfaction of customers, thanks to responsive and relevant offers

E-commerce• 61% of internet users think that differences in size

make shopping online difficult (challenge)*

• Delivery of less than 48 hours is a must

• Trust is a key factor in online shopping as you cannot try on the clothes before purchase

* Mintel Report, 2012

SECTOR ANALYSIS

Strengths/Opportunities Weaknesses/Threats/Challenges

Underwear• Solid growth of 6% since 2006 (UK market value:

2,6 £billion)*

• Strong mental connexion for women between the fact of wearing underwear and feeling good (basis for our marketing message)*

• 85% of women wear the wrong bra size in the UK (White and Scurr, 2012)

• 61% of women consider comfort more important than style*

Mass customization• The current dynamism in mass customization is

driven primarily by innovative startups

• About 83% of firms are founded exclusively with the purpose of mass customization, while 17% run their mass customization business in addition to their standard business (Walcher and Piller, 2012)

Underwear• US brands offering customizable underwear might

reach the UK market

• In 2011, only 4% of underwear bought by women in the UK were bought through online retailers*

Mass customization

• The barrier to entry is low, copycats follow quickly

• Patents or other forms of IP (Intellectual Property) do not provide much help

* Mintel Report, 2012

COMPETITIVE POSITIONING

• Currently no lingerie label in the UK focusing on mass customization

- Niche market

- Offering an innovative product can help a business establish itself as a pacesetter within the industry

• To compare our brand with existing lingerie labels, the competition was evaluated in terms of the customization level of UK lingerie brands, comfort level, target group and price in two positioning maps

• No direct competition, but high indirect competition from well-established international lingerie brands

• Need to focus on the customization aspect of the brand to provide a USP to our target market and promote our more detailed way of measuring sizes

• Price range: £30 to £60, depending on the material and degree of customization1

1The price is an estimation based on competition analysis Price setting advantages of the niche market

COMPETITIVE POSITIONING

High comfort (individual

fitting)

Low comfort (standard

sizes)

High customization (choice of

patterns/colours/styles)

Low customization (patterns/colours/styles

given)

Closest competitors in customization/comfort

COMPETITIVE POSITIONING

Closest competition in price/target

Target age 45+Target age 25+

Price (high)

Price (low)

THE BRAND “LOVE AT FIRST CUP”

THE CONCEPT

Customizable bras and underwear to find the perfect fit

• The idea: Mass customization affordable lingerie online shop specialized in perfect fitting bras. Possibility to choose between a wide range of shapes, materials, colours and patterns to create your perfect bra that will be adapted to your measures to ensure an ideal fit

• Vision: nearly 85% of women in the UK wear a bra that is not the right size (White & Scurr, 2012). The conventional measuring technique does not provide a perfect fit. We think that every woman should feel comfortable in her underwear without compromising style. Everyone deserves to be happy with their bra!

• Mission: To deliver perfect fitting bras using professional measurements and customizable to suit all different styles. Intrinsic brand: doing the best for women

• Our identity: young, fun, fearless, stylish, helpful, friendly, affordable

• Our values:

HOW DOES IT WORK?

• It is an online shop and bras are only produced when ordered, which requires flexibility and fast delivery but eliminates inventory costs

• Emphasis on the fitting: all bras adapted to the customers’ measurements. Special section on the website dedicated to the ‘perfect fit’ and how to measure yourself. Create a digital profile and submit a simple form with your measurements before processing the order*

• Four lines to satisfy different needs and styles:• Basic: Everyday wear• Fashion: more patterns and colours• Sexy: lingerie for special moments with luxurious fabrics• Sport: stylish sports bras that provide the best comfort

• Matching panties and accessories

*Bra fitting using professional criteria as recommended by a study on bra sizing by Portsmouth University. See Appendix 3

HOW DOES IT WORK?

Customization options: all changes will be reflected in the price and only the available options for the selected line/style will show. £30 – £60 range

1. Choose the line: Basic, Fashion, Sexy or Sport

2. Choose your shape: select a shape and choose padding and underwire options

3. Choose your material: different for the different lines, possibility to combine more than one fabric

4. Choose your colour or print

5. Add some glitz: customizable details such as fantasy straps, ribbons or sequins

HOW DOES IT WORK?

BEING RESPONSIBLE

Transparent Accountable Responsible

Informing customers about production methods and procedures on website (video)

Conduct market studies --> facts

Intrinsic Brand: -Focus on women's well-being-Meet individual customer needs-Propose affordable prices

Being present on social media, consumer involvement, satisfied consumers become brand ambassadors - C2C recommendations

No outsourcing in developing countries for production -> Creation of employment in UK

Respect the employees: fair remunerations and working conditions

Conduct a satisfaction survey (comfort and quality of the product) and display results on our website

Reporting of business KPIs and advertising measurements

Partnership with breast cancer research

Obtain official and known eco-labels for our organic products

Professional marketing and advertising (according to guidelines): use 'real women' as models

Sustainability: -No waste of energy with just-in-time delivery, no stock, no warehouse -Organic cotton line

TARGET

Core target:

• 25-34's (predicted to grow by 10% between 2011 and 2016, Mintel 2012)

Wider target:

• Women all ages living in the UK

• Britain is the biggest online shopping nation in the developed world, with almost two-thirds of adults using the internet to buy goods or services (Hall, 2012)

• 56% of all online shoppers are female (Buysight, 2010)

• The average age of online shoppers is 42 (Buysight, 2010)

Characteristics of target market:

• Students as well as working women

• Women who are buying lingerie for themselves

• Interested in online shopping

• Looking for something unique and special, but affordable

5 YEAR PLAN

LAUNCH

Goal: Generate Brand awareness and trial

Objectives: Establishing the brand positioning

25% of brand awareness within the target after year one

0.3 % market share in the UK lingerie market (online and offline)2

How: Launch of the brand and online store

Heavy online and offline promotion

High advertising investment

Good warrantee (responsible marketing): Free return if products don't fit

1 This 5 year plan is based on assumptions and on statistics (Keynote Lingerie, 2013)2 Competitors such as Triumph have a market share of 1.5% while the number 1 player, M&S has 27% market share in the UK lingerie sector

SHORT TERM

Goals: Emotional attachment, build trust, establish customer relationships

Objectives: Brand awareness of 35%

UK lingerie market share of 0.5%

Customer retention

Be known for our USP: the best fitting bras

How: New offerings (patterns, fabrics) to keep customers interested

Loyalty scheme or "Tell a friend" bonus to build relationships with customers and get positive WOM

Build community on social media + Youtube Channel showing videos of production (transparency)

Partnership with Cancer Research: donate 1€ for every bra sold

Market research for market expansion + translation of website

MEDIUM TERM

Goals: Customer engagement, increase customer expenditure + expansion to other EU countries (Ireland, France, Germany, etc.)

Objectives: UK brand awareness of 50%

Build brand awareness in foreign markets

UK market share (lingerie + swimwear) of 1%

Expand our target to younger consumers

How: Expand patterns and cuts

Expand into swimwear

Expand the loyalty benefits: offer birthday gifts, etc.

"Your first bra" campaign: attract teenage consumers

Digital shopping app (M-commerce)

Delivery in other European countries (Ireland, France, Germany): Brand awareness in foreign markets through social media campaigns, customer engagement and E-WOM

LONG TERM

Goals: Go offline and build brand awareness in EU markets, increase customer expenditure and retention

Objectives: Brand awareness in the UK of 65%

UK market share of 3%

Brand awareness in foreign markets of 30%

How: Flagship Store in London to show transparency: How does our brand work? Possibility to feel the materials and order online from the store; experiential marketing

Offer shapewear and lingerie accessories (stockings, corsets…) --> Product line extensions

TIMELINE

should say "UK brand awareness"

should say "UK market share

short-term social media is not focusing on europe but UK

ADVERTISING APPROACH

ADVERTISING APPROACH

• Investing in Brand Building – long term with advertising (70%) rather than Brand Activation – short term with promotions (30%)

• Focus on brand attachment and customer engagement. Promotions only used in the context of CRM

• Stable investment strategy - Pulsing advertising schedule (Shimp, 2007): some advertising is used in every period of the campaign, but the investment is higher in the peak periods when more advertising is required (new launches or when entering new markets)

• 10% innovation intensity: 10% of marketing budget invested in innovative techniques

Series10

1

2

3

4

5

6

PHASE 1: High investment in advertising during launch

PHASE 2: Lower investment after the launch to maintain brand awareness

PHASE 3: Increase in investment to promote the new swimwear line and enter new markets

PHASE 4: Increase in investment to promote the new shapewear line and flagship store opening

ADVERTISING APPROACH

PHASE 1:• High investment to raise awareness. Online and offline heavy advertising• Fashion, health and lifestyle women's magazines• Google adwords, Facebook advertising, etc.• PR: commission a study about bra fitting in the UK + press releases & blogger relations• Social Media: videos about fittings, sharing of creations (C2C)• Guerrilla Marketing: actions on the street to create buzz

PHASE 2:• Lower investment after launch period• Concentrated online: social media, SEO, SEM and CRM

PHASE 3:• Higher investment to enter new markets – online advertising + magazines + social media• Higher investment in online advertising when launching the swimwear line: guerrilla marketing to create buzz, magazines, social media and other online advertising

PHASE 4:• Combination of online and offline advertising to promote the flagship store opening• Guerrilla marketing and online teaser campaign

KPI FRAMEWORK

KPI FRAMEWORK

KPI Measures Actions to be taken

Market shareThe size of Love at first Cup in the UK compared to the UK lingerie market and our competitors

If the market share does not reach the objectives=> find out the problems and activate the right leverage (PR, advertising, launch of new products, pricing etc.)

Gross margin %

The difference between the selling price and cost of goods sold. A minimum of 50% of gross margin on each product is set

A continuous calculation of the cost is essential, particularly before the launch of new range, offerings etc.

# new customers

The number of new customers: Increasing new customers on a steady basis will be one of our main objectives

In order to achieve a certain number of new customers, a demographic analysis of prospective customers to create a strategic marketing plan can be conducted

# existing customers

The revenue generated by segments and profitability by customer segments

Check client turnover and distinguish between voluntary

(unsatisfied, high prices) and involuntary reasons

(relocation, death…)

Customer retention rate

Customer retention. Objective: retain every 3rd customer, in later years every 2nd customer

Loyalty scheme, birthday gifts, targeted newsletter and social media involvement to keep customers

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KPI FRAMEWORKCo

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KPI Measures Actions to be taken

ROI of advertising

The effectiveness of a campaign and comparison of different campaigns in terms of generated revenues

An analysis to determine which type of campaign for which type of event ( store opening, new range ...) and for which segment is needed

Level of awareness

The level of awareness of Love at first Cup before and after a PR or an advertising campaign

Create and build on WOM and eWOM without losing the uniqueness attribute of the brand

Incremental Sales

The contribution of marketing efforts on sales

Communicate the figures to investors and insights to continue improving the results

Engagement Score

The social media buzz of our brand (E-WOM) based on social media interactions such as Facebook likes, shares, Twitter followers, tweets etc.

Develop highly engaging content that will encourage the audience to engage (complete a survey, subscribe to the newsletter, likes on the facebook fan page…)

Traffic Sources Traffic coming from websites, blogs, google keywords and social media

Improve the SEO thanks to a daily monitoring, get in touch with the best traffic generators especially bloggers to reward them and establish long term relationships

End action rate

How well the landing page is at getting visitors to perform a desired action. A minimum of 20% is set for the conversion rates

Follow closely during adwords/banner campaigns with a specific landing page. Allow adjustments during the campaign

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PR

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EXTERNAL RESOURCES

EXTERNAL RESOURCESCo

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In order to help implement the plan and strategy, we will need a number of external resources and stakeholders to manage

• Stakeholders:

• Bank (loan for capital)

• Suppliers (lace, cotton, hooks, underwires, threads, packaging etc.)

• Distributor (will be outsourced, 24hr delivery is a must)

• Employees: sewers, designers, website designer/social media marketing, accountant...

• Online payment services (credit cards, paypal)

• Customers

• Marketing:

• Relations with magazines/bloggers/PR journalists

• Advertising agency

• Digital web agency

Other resources needed:

• Real estate (headquarter and factory),

• Equipment (sewing machines), furniture & fittings

HOW DO WE MANAGE EXTERNAL RESOURCES?

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e

Bank: business plan presentation, regular reporting of KPIs

Suppliers: Look for suppliers with similar values/missions, present our business idea to them by demonstrating how we produce and convince them about the in-time-delivery by focusing on the sustainability aspect

Distributor: select distributors based on price and reliability, offer fair price conditions and contracts

Online payment services: select based on price and reliability, offer fair conditions and contracts

Employees: Pay fair wages/working hours; give employees discount on bras; encourage positive relationship with the company by company events and trainings. For sewers we will have a specific arrangement with permanent and temporary contracts according to the needs of production.

HOW DO WE MANAGE EXTERNAL RESOURCES?

Corp

orat

e

Customers: Encourage customers to engage on social media platforms, focus

on positive E-WOM, positive crisis management.

Marketing:

Magazines/bloggers/PR journalists: Short-term/launch: contact lifestyle

magazines & fashion bloggers invite representatives of magazines, journalists

and bloggers to observe the production and let them try a customized bra. Give

them one for free in exchange for press coverage. Long-term: Develop positive

long-term relationships with the media - this is very important for positive media

coverage.

Advertising agency/Digital web agency: selected after pitch competition, 3

years contract. We will be a professional client, respect the agency's

contribution, be honest and act as partners.

REFERENCESCo

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Brown.T(2013) KPIs, Dashboards and Operational Metrics. Doing more with Less [Online]. Available at: http://www.klipfolio.com/resources/kpi-dashboard-operational-metrics-top-10-guidelines

Buysight (2010) Who's Shopping Online? [Online]. Available at: http://www.buysight.com/blog/2010/04/23/whos-shopping-online/ (Accessed: 29 April 2013).

Hall (2012) Britons are biggest online shoppers in developed world [Online]. Available at: http://www.telegraph.co.uk/news/uknews/9054400/Britons-are-biggest-online-shoppers-in-developed-world.html (Accessed: 29 April 2013).

Key Note (2013) Lingerie Market Report 2013 [Online] Available at: http://www.keynote.co.uk/market-intelligence/view/product/10771/lingerie/chapter/1/executive_summary (Accessed on: 29 April 2013).

Lenskold.J ( 2003). Marketing ROI: The Path to Campaign, Customer, and Corporate Profitability, McGraw-Hill Professional

Mintel. (2012). Underwear - UK - February 2012 [Online]. Available at: http://0-academic.mintel.com.emu.londonmet.ac.uk/display/612445/?highlight=ture#hit1. Last accessed 01.05.2013.

Mintel. (2012). Fashion Online - UK - March 2012 [Online]. Available at: http://0-academic.mintel.com.emu.londonmet.ac.uk/display/590053/?highlight=true. Last accessed 01.05.2013.

REFERENCESCo

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Stern, J. (2010). Social media metrics: How to measure and optimize your marketing

investments, Hoboken, NJ: John Wiley & Sons, Inc.

Shimp, T. A. (2007). Advertising, promotion, and other aspects of integrated marketing communications. South-Western Pub

Smith, David (2011) The Futures Report [Online] Available at: http://www.thegff.com/Groups/175830/Global_Futures_and/Reports/The_Future_report/The_Future_report.aspx. (Accessed on: 30 April 2013)

White, Jenny and Scurr, Joanna (2012) Evaluation of professional bra fitting criteria for bra selection and fitting in the UK. Ergonomics, 55 (6). pp. 704-711.

Walcher.D and Piller.F (2012) The Customization 500 [Online]. Available at: http://mass-customization.blogs.com/files/previewmc500.pdf. Last accessed 01.05.2013

Windisman (2012) How Clothing Brands Are Getting Personal [Online]. Available at: http://sparksheet.com/clothing-brands-get-personal/ (Accessed: 29 April 2013).

APPENDICES

APPENDIX 1Co

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Market shareCompany's Sales Revenue in Time Period X) / Market's Total Sales Revenue in Time Period X

Gross margin % (Revenue-COGS)/Revenue

# new customers Number of new customers acquired

# existing customersRevenue generated by segments of the customer population

Customer retention rateCustomer retention rate – (total number of customers – new acquisitions) / total number of customers in the previous period

ROI of advertising Value of sales/spending on campaign

Level of awarenessPeople who recognize the product ÷ total people gathered

Incremental SalesRevenue generated by marketing initiatives - Baseline sales

# social interactionsEngagement Score

# of valuable social interaction (likes, tweets, retweets…) summarized over X period--------# of leads generated /# of contacts made

Traffic Sources # of visitors for each source

End action rate# of users that start activity / # of users that complete activity

APPENDIX 2Co

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Details on competitors - closest competitors to LafC:

Victoria‘s SecretWell-known US lingerie brand with currently 2 stores in the UK and 3 more to open soon. No individualised products (shop by style, padding level, collections). Provide advice on how to measure and how to find the perfect bra. Prices £40 upwards, target age: 25+. http://www.victoriassecret.com/bras/about-our-bras

Gilda&PearlOffer handmade collections of lingerie with the possibility to customize them (colour, material and extras like bows) by contacting the company. They offer handmade individual measurements as well, but only for bras without underwire (but working on providing this service in the future). Prices range from £50 upwards for collections; price on request for individualized products. Target: UK market, affluent women, aged 30+. http://www.gildapearl.co.uk/bespoke.php

Rigby&PellerUK lingerie stylists offering collections but also a made-to-measure service. Personal appointments are necessary, individual measurements, customer can decide on material, colour, shape etc. Hand-made, high quality lingerie with prices based upon request. Prices of collections £40 upwards, average £80, target: affluent women, quality conscious, aged 30+. http://www.rigbyandpeller.co.uk/bespoke-lingerie/sc3432.aspx

FigleavesOnline UK lingerie brand without brick-and-mortar outlet. Offering a wide range of products, targeted at young people, aged 25+; prices £20 up. Focus also on lifestyle and provide video advice on how to find the perfect bra. http://www.figleaves.com/uk/

APPENDIX 2Co

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Competition - international lingerie brands

M&SUK lingerie market leader. Offer measurements in shops and a fitting and style guide, but do not provide customization concerning size or style. Well-known retailer, many outlets plus an online store. Affordable prices (£15 upwards), target age 35+. http://www.marksandspencer.com/Bras-Lingerie-Underwear-Womens/b/43246030

TriumphOffer a wide range of products in different colours, but no customization regarding size and material. Prices £30 up, target age: 30+. Well-known lingerie brand with an online store and several stores in the UK. Offer an online measurement tool. http://www.triumph.com/uk/

MaidenformOffer in-between sizes, but no individual measurements. Affordable prices (£25 upwards). Ireland-based but also operating in the UK. Target: mainly women aged 30+. http://www.maidenform.co.uk/brand/speciality/

Competitors – taylor-made lingerie in the UK

FitelleOffer totally individualized lingerie: They measure your size individually (by visiting their shop or coming to your home), design individual patterns and offer individual choice of material and extras. Price on request, once you give your measurements, it is 50% off future purchases. Target: UK market, affluent women, aged 45+. http://fitelle.com/contact_fitelle.html

OptifitOffer customized bras for women with back problems. Very specialised, but not our target market. Price on request, target age: 45+ http://www.optifitbra.com/store/

APPENDIX 3Co

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Bra fitting criteria

All bras will be produced and fitted to the consumers according to the bra sizing study by Portsmouth University which recommends professional fitting criteria instead of the traditional method used by mainstream lingerie companies (White & Scurr, 2012).

Criteria:

• Band -Too tight: flesh bulging over top of band; subjective discomfort ‘feels too tight;’ too loose: band lifts when arms are moved above head, posterior band not level with inframammary fold

• Cup – Too big: wrinkles in cup fabric; too small: breast tissue bulging above, below or at the sides

• Underwire – Incorrect shape: underwire sitting on breast tissue laterally (under armpit) or anterior midline; subjective complaint of discomfort;

• Straps – Too tight: digging in; subjective complaint of discomfort; carrying too much of the weight of the breasts; too loose: sliding down off shoulder with no ability to adjust the length

• Front band – Not in contact with the sternum

• Rating of bra fit – Pass: no errors or if hooks or straps can be adjusted to allow correct fit; fail: any other ticks