Mint As In Final

FAR EASTERN UNIVERSITY Institute of Accounts Business and Finance MINT BOUTIQUE STORE Benevolent Rulers Company ANGELES, Angelica BALISTOY, Ramil E. CALIP, RAYMOND DE GUZMAN, Jose mari GAVIA, Marjorie Joyce P. HAGOSOJOS, Claribelle D. ROXAS, Juzzel Mae P. SINAON, Mark Philip TORRELIZA, Vanessa R.

ACKNOWLEDGEMENT

First of all we would like to thank GOD who gives us the knowledge and the strength to do this retail plan. To him we prayed solemnly that this research would be a success and will help anyone that will be given an opportunity to read this. Secondly to all the people who help us in doing in this RETAIL PLAN for the year 2010 in making this possible especially our parents that have been always in our side supporting morally and financially. We would like to acknowledge and give our sincere thanks to the main office and employees that has given us the additional information about their store. Also to each member of the group for their cooperation, hard-work and patience. Without them this paper would not be completed. Although there comes a time that we have misunderstandings we were able to work together and finished this research proposal. And lastly we would like to give our whole-hearted thanks to our beloved professor Sir Rhomy Nuqui for the motivation, inspiration and to the support that he gave us and for the knowledge that he imparted to us.

Executive Summary Mint Clothing is a fashion line conceived in 1999 by designer Jodi Arnold. The line is often referred to as MINT by Jodi Arnold. He came up with the line and

discovered it during the time he sipped a cup of mint tea in Paris, France and this was his conceptualization as he designed and introduced Mint Clothing that is elegant and flirty here in the Philippines. MINT Company is dynamic as the people that wear their energetic clothing line. This dynamism is proven by its fast paced opening of chain of stores in major malls across Philippines. The presence of this retail store in the malls has provided a fresh and trendsetting collection of clothing garments. Mint currently has more than 20 stores nationwide and has acquired the calmness in operating in a very dynamic world. Being a purveyor of the ever-changing fashion industry, Mint has always kept abreast with the discriminating and changing taste of the fashion-conscious Filipino. The collections of this clothing line was first meant for the ladies apparel, for them to be more recognizable and continuously attract customers they chose Riza Santos and Cristine Reyes as their top celebrity endorsers. As years have passed Mint introduced Mint Men in 2006 and tagged Jericho Rosales as their Mint Men ambassador. This promotional skill expand a very interesting stuff in the part of men society wherein they could now shop in this kind of clothing store knowing that this was for ladies wear only. This is currently creating a stir in the country’s fashion setting with almost the same product line of Folded and Hung, Tomato, and Genevieve. Mint arises from the interrelation between a quality product with a distinctive design and a unified brand image. It’s somehow like whatsoever looks of outfit you desire; Mint is the place to go. The store offers different apparels and accessories which are easy to fit on and ensemble. As the fashion and retail industry tends to be overly youth focused. However, by closely following generational fashion trends as well as the customers' purchasing preferences, we made the Mint as one of the retail stores that will cater the different needs and wants that the fashionistas and on-the-go adults will be solely focused. Anyone who chooses to visit any of Mint stores will surely want to come back and explore further surprises because our group decided to create a pleasant presentation and developments, specifically, in retail plan that our customers will

definitely and certainly appreciate the collections of the mint clothing line as well as for them to experience the extreme enjoyable shopping. Our group aims to give a full overview of the strategic plan that we will implement for the whole year of 2010 with the objectives of making the appropriate decisions on various techniques that can be used in strategic planning which specifically done to avoid or beat the competition and eventually outperforms them in the future state of the company and also improved services to cope up in the ever-changing trends and wants of the target consumers. This plan also involves monitoring and getting feedback from implemented processes to fully control the operation. Ultimately, we want Mint not just to sell either clothing or accessories. We want them to sell the look. We want them to be part of the activity, part of the memory, part of the tradition of dressing in the latest fashions.

II. RETAILING ENVIRONMENT ANALYSIS •

INDUSTRY TRENDS The retail fashion industry is a solid business with ever-changing styles and everpresent consumer demand. While supercenters and megastores ruled the past two decades, more and more consumers are looking for change. They’re searching for a more serene and customer-friendly shopping experience. This is true especially for those nearing retirement age. In reality, as the Baby Boomers numbers decrease, there will be fewer older Generation X-ers to sell to. However, this market decrease will not occur for at least twenty years. Even then, clothing will always be in high demand.

The clothing retail industry includes stores specializing in family clothing (50% of industry sales; women’s clothing 25% or men’s clothing 6%; children’s clothing store includes infant wear. Accessory stores may specialize in hats or caps, costume, jewelry, make-up and perfumes. •

STRATEGY & IMPLEMENTATION

Mint recognizes the importance of marketing. And to that end, we plan to promote our retail business with an ambitious, targeted marketing campaign, which will include local media coverage, print advertising and a direct-mail campaign. Our goal is to keep our marketing budget to no more than 5% of our gross annual sales, and we will form partnership with local advertising agency such as Cosmopolitan, we already have connections in all the necessary places. These strategic partnerships will allow us to piggyback on publicity for local events, as long as they are within our targeted demographic. MINT’s initial marketing efforts will remain local as we establish a presence in our community. These will rely heavily on local print and broadcast media coverage, traditional advertising, signage, a direct mail marketing campaign and networking. A significant portion of our advertising budget will be allocated to print and broadcast media.

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MARKETING STRATEGY MINT has strong marketing backgrounds and recognizes the significance of effective marketing. We expect our strategy to draw consumers into Mint from the very beginning. Moreover we will develop and implement a strategic marketing plan and guide our publicity efforts in a cost-effective manner. Our marketing message, logo and slogans will revolve around the idea of the MINT as revolutionaries and trend setters. Party goers are in their prime and at their best, meaning these men and women deserve to be recognized as a force within the fashion industry.

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CONTROLLABLE FACTOR

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PRICE Mint is currently using a discount pricing strategy to cope up with the challenging competition of the market. While price remains the top consideration of poor

Filipinos in purchasing products, this is not necessarily true for the whole population. Filipinos are known for their penchant for foreign-made goods, particularly those made from the United States. A number of American middleclass brands have carved their niche in Philippine market, particularly among richer Filipinos in Metro Manila and other urban areas. •

PROMOTION

Mint is frequently promoting its discounts strategy to attract walk-in customers. Mint has its in-store collaterals that give their little promotion to the walk-in customers. Mint should have a solid marketing m ix. A strong marketing mix that is consistent with the brand positioning is a must for ensuring that a brand will continue to sell. Each element of the mix—product, packaging, pricing, distribution, promotions, advertising—has its own characteristics, but each must be carefully considered in its relationship with the other elements and with the overall marketing strategy to ensure that the delivery of the brand promise is maximized. This marketing mix should be balanced and made consistent with the brand’s desired position and image in the market. To have it any other way would just confuse consumers and weaken the standing of the brand in their minds. These are some of the strategy that we will use: Buzz marketing. This viral type involves getting mass media celebrities to discuss their experience with MINTS products, preferably on a provocative but always positive note. The idea is to deliberately create noise and buzz about the product among the readers, viewers, or listeners. We will also use alternative advertising which includes the: Transit advertising or what is commonly called as transport ads, to target ever-growing number of commuters that take public transport. These ads usually come in the form of wrap around posters on the body of busses or passenger jeepneys and signboards, in these aside from offering a mobile advertising it can reach wider – ranging target consumers across almost all the demographic classes. •

PEOPLE

MINT employees is a very important factor that a store should develop because as the retail industry goes as it is a strong customers focus is the main concern because nobody buys anything for what it is. Customer buys the product for what they think it does for them and a good sales person inside the store is a big factor

that can help because they should know what their customers want to buy or to purchase by having a good relationship with them to give the opportunity of repeat purchase and profit follows. •

PLACE

MINT’s location is primarily located inside the mall area which was frequented by their target market and also gives more awareness to potential customers because many people used to go and shop in malls. It is one of the most important factors in choosing a good location of the retail store which has a profound effect on the entire business life of a retail operation. A bad choice may all but guarantee failure, a good choice success.

III. COMPETITORS ANALYSIS MAJOR PLAYER

MINOR PLAYER

FOLDED AND HUNG

CINDERELLA

PEOPLE ARE PEOPLE

TOMATO

GENEVIEVE

YRYS

2. COMPETITION MATRIX

3. WINNER/LOSER ANALYSIS

BRAND

MINT

FOLDED AND HUNG

MALDITA

PRODUCT

PRICE

PLACE

PROMOTION

W

W

W

L

W

W

W

W

W

L

W

L

GENEVIEVE

W

W

W

L

4. MARKETING MIX ANALYSIS

BRAND MINT

PRODUCT

PRICE

PLACE

PROMOTION

Product lines are ladies top, men’s top, men’s shorts, ladies dresses, bags, accessories.

They are currently using discount pricing strategy. They lower price at all times

Comm only located on malls

Their celebrity endorsers are Kristine Reyes and Jericho Rosales, have billboards.

SIGNIFICANT ANALYSIS: Mint mainly focuses on the girls and boys product lines. Their ladies tops are mainly one of the eye-catching line because of its colors, some are bright that catches mainly the attention of a party-goers woman. Their men’s top possesses a modern-man image. It is one of the good choices for a metro-sexual and vein guys that want to look so cool and so neat. They also has additional product lines like shades, fancy watches and bags but these are the product lines that are slow-moving. In terms of pricing Mint is using a discounting strategy. They mainly catches people’s attention by front-lining the products on sale that offers a very low price. They are always on sale on different items from 30-70% off maximum on some product lines. But it is one of the reason why Mints image was a bit degraded on its quality focus because one of the perception of the consumers is that the higher the price of the product the higher the quality of it. It is commonly located on malls which are mainly their prerequisites in putting up a branch. Their celebrity endorsers are Jericjo RosALES and Cristine Reyes. They are currently advertising in billboard in Edsa.

VI. RETAIL MARKETING OBJECTIVES GENERAL OBJECTIVES To be able to expand the market share to 50%.

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Generate repeat and referral sales.

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Generate 30% higher profit net after tax at the end of the year 2010.

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To be well known as a clothing line not just for fashionistas and on-the-go

adults but also for metro sexual men. SPECIFIC OBJECTIVES Our company aims to achieve the success of our retail plan for MINT by having these objectives: •

To have aggressive marketing campaign to outperform the competition.

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To completely renovate in-store atmosphere.

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Host a successful event that will penetrate and raise awareness in 60 percent of our targeted consumer market.

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Improving customer service. To develop customer-friendly policies, train employees to provide outstanding customer service, and learn how to create customer loyalty. To train the crews as being a fashion consultant only within the store premises as a part of our internal strategy.

VII. STORE POSITIONING

1. MINT has a new logo OLD

`

NEW

MINT’s concept arises from the interrelation between a quality product with a distinctive design and a unified brand image. Whatever look you crave for, Mint is the first place to go to. For the last word on style, Mint has provided an exclamation point. It is a fact that their patrons show diverse personalities, yet they can count on them to supply an array of choices that will match every distinct personality. They have become a Mecca of expression, which is the reason their patrons keep coming back again and again. Behind this concept, there is a great team that works day to day to ensure that the company ambition becomes a reality. In order to achieve this, they combine enthusiasm, creativity and continuous training with the values that prevail in our environment: harmony, affection and humility.

2. “I WANT IT , I NEED IT , I GOTTA HAVE IT ’’ To provide male and female’s a comfortable and quality clothing line where each gender of each diverse background can be their personality. MINT Clothing is concerned primarily with bringing unity to people through a clothing brand. The objectives are to present MINT Clothing’s ability to be distinct in a number of different market audiences. Our strategies are based on our audiences’ preferences and purchasing behaviors.

VIII. IN STORE RETAIL PLAN FOR THE MONTH OF JANUARY-JULY 2010

TIME FRAME

TITLE OF THE STRATEGY

January Februay 2010

“ MINT’s CRAZE MAGALOUGE” Fashion MiniMagazine 2010” CelebrityBuying Strategy

TACTICS

We will be coming up with a minimagazine at the same time a catalogue that has the latest trends in the clothing line showcasing the latest, hip, trendy clothing beyond the Metro’s finest young models and including fashion tips from the designers. We will team-up with Preview

TARGET GOAL OF THE STRATEGY To gain additional 40% awareness and 40% market share. To be well known as the trend-setter clothing line.

Magazine as the best fashion magazine to carry-out our mini-fashion mag

MarchApril 2010

EXCLUSIVITY CARD

We will be giving free EXCLUSIVITY CARD for a minimum purchase of Php1500. For php1000 purchase the card will be sold for php100.There will be automatic 50 points in the card and in every 300 minimum there will be corresponding 50 points. Whenever they earn a total of 100 pts they will get a free Trendy customize shopping bag which is one of the perks of the card and also there will be less 5% in the next purchase.

To retain loyal customers. To generate repeat purchase from existing and new customers.

MayJune 2010

JulyAugust 2010

“Philippine Fashion Week participant” “Scene-Stealer with MINT”

MINT:

I Am Sensational

Make It Naturally Trendy

Thousands of spectators, more than a hundred designers, 30 shows, 9 days, and one big event. This year's Philippine Fashion Week Holiday 2009 will be held on May 26 to June 3, 2009 at the grounds of SM Mall of Asia and SMX Convention Center. Fashion and top retailer brands like Bench, Penshoppe, Kashieka, Human and Plains & Prints would also participate in the 9-day event.

To be well known as a clothing line with a afforduxury garments.

We will be calling the attention of the party-goers to attend the night at the Blue Onion Bar at east wood, the hosts of the said event are the Boys Night Out known as popular Radio DJs in the Philippines. We

To be able increase the market share.

To continuously generate profit.

will also invite the two ambassadors of Mint, Jericho Rosales and Cristine Reyes. This seems to be the shining collaboration on the event. .

IX. IN STORE RETAIL MERCHANDISING PLAN FOR 2010 1. ACTUAL LAY-OUT OF THE STORE

The actual current lay-out of the store is too compact and unrefined. From the moment pass-by the store you will not be enticed to get in because of the small space in the entrance and looks like overcrowded inside because of the unorganized discount corner and other product category. The cashier as you will notice is at the side with so many accessories all over the cashier and we have observed that this will be one reason of changing the minds of the customer to pay for the product for another reason that the cashier is very small and not so accessible within the other side of the store because when the cashier is far from the clothing lines there will be a possibility that consumers would change their minds while walking near the cashier. One problem is that they only had one fitting room that’s why there are certain instances that the customer will not have the willingness to fit for the clothes and just leave it behind. The bags are located at the back of the mens category so there are misleading instances that they are not interested in taking a look at the bags and also because it is located up the shelves. NEW PROPOSED STORE LAYOUT

The window display should be on the two different sides of the store and the mannequins are separated from ladies line at the left and mens line at the right side to ensure uniformity and differentiation. The entrance should be wide and looks like welcoming in the eye of the consumers or the passers-by. The New product line should be emphasized in the center of the store to be given a full attention to the consumers. The store should look like a round one so that there will be a flow and ensure that they will be going around the store. The discount corner should be located in every corner of

the store so that when the customer is taking a look on the discounted line they will also take a look on the regular priced category and will have the possibility of buying them when they realized that the clothes is good and they will be encourage to buy even if it is not in discounted price. The ladies and the mens line should have alignment to avoid confusion to the customers and in line there the fitting room which is 2 rooms for girls and two for boys. The cashier should be at the center so as to avoid changing of minds of the customers in buying a certain product.

2. TRADE CHECKS OF SKU’s OPTIONAL LIST/STANDARD LIST THAT ARE SUBJECT FOR: •

EXPANSION LADIES TOP

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ADDITIONS BAGS, ACCESSORIES, BELT, SHADES

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NEEDS TO MAINTAIN MINT LUSH DRESSES

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NEEDS TO IMPROVE MINT LUSH TOP

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FOR PULL-OUT MINT LUSH BOTTOM

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NEW CATEGORY KILLER MENS TOP

3. NEEDS IMPROVEMENT

The decor of the store should be a good representation of what is all about. Mint signifies a cool store with bright colors and flamboyant. They should have famous faces displayed on their walls wearing fashion from the store and it will be an additional attraction.

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INVENTORY To avoid in store traffic delay like having items that is out-of-stock we

proposed that the MINT inventory tracking system should tell the management what merchandise is in stock, what is on order, when it will arrive, and what was sold. With such a system MINT can plan purchases more intelligently and quickly recognize the fast moving items that need to reorder and the slow moving items that should markdown or specially promote. 4. WINDOW DISPLAY

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The window display should be eye-catching. If

it takes only a few seconds to walk past a store window. It should grab their attention, so that the store will not lose the sale. Priority one is to divert the focus of the shopper to the store. At a minimum, your store windows need to be more edgy and engaging than the competition next door to you and across the street.

X. CONTINGENCY PLAN/CONTROL 1. SAFETY NET/BACK UP PLANS

After the said activities and plans are implemented it is very important to continuously monitor and evaluate the status of the plan-as important as identifying strategic issues and goals. This also used to ensure that the company is following the direction established during strategic planning.