Fashion Retail Management

Retail Strategic Growth Plan for Showpo

Executive Summary
In this report, a detailed strategic retail plan has been conducted on the pure online
retailer, Showpo. The front-end of the strategic retail plan conducted a situation analysis
on the brand. From this, answers can be found and observations can be made. After the
initial failure of two physical stores, Showpo chose to channel all their efforts towards the
most scalable part of the business: online sales. Their biggest strength has been their
domination of social media, successfully using it to market their brand. With their
business rapidly growing, it is time for Showpo to develop strategies in order to fully
maximise their brands capabilities and potential. The opportunity for growth and
development is the driving factor as to why Showpo should establish a physical
presence. An OBM analysis of the brand shows that Showpo are very customer value
focused. This said, the lack of any physical store leaves a gap in the brands relationship
with customers. Opportunities and threats for Showpo were identified using PESTE
analysis tables. They reveal that their customers are demanding to connect with brands
on all levels (head, hands & heart). The brands opportunities and threats can then be
paired with their strengths and weaknesses. A TOWS analysis suggested the expansion
of the brands current small customer market e.g. to cater for plus size women. Possible
locations for a Showpo bricks-and-mortar store are analysed with Highpoint shopping
centre being shown to be the best location for the store.

To continue the process of creating a Showpo store in the Highpoint Shopping Centre,
S.M.A.R.T objectives are set, using strategies and formulas to produce achievable
goals. The store estimates annual sales is $497,600 with an estimated profit of 9%.
Customer awareness and acquisition objectives are also outlined. Primary and
secondary target market personas correspond to earlier findings, but provide a deeper
insight into the Showpo customer. Through a positioning statement and map, location
based competitors are shown to be Kookai, Universal Store and Sportsgirl. Two strategic
approach methods are used in relations to the stores objectives. They assist at plotting
strategic approaches e.g. increasing customer intimacy and moving towards a
differentiation strategy. These strategic approaches and brand objectives are kept in
mind when creating a wide range of strategies. These strategies are based around the
7Ps marketing mix. From there, plans for operations are made. This includes employee
rosters, merchandise planning, Gantt chart and risk analysis. The budgets profit and loss
statement reveals a total profit of $45,715 after the first year of the Showpo Highpoint
store. Lastly, evaluation and improvement plans are investigated. They focus on looking
at ways of constantly improving the Showpo store and methods of achieving goals.
Table of Contents
P.5 1.0 Background
P.5 1.1 Introduction and brief history of Showpo
P.5 1.2 Rationale for the establishment of a new store
P.6 1.3 Number and location of existing stores
P.6 1.4 Online presence
P.6 1.5 Primary fashion goods / service category
P.7 2.0 Situation Analysis
P.7 2.1 Osterwalder Business Model (OBM) Analysis
P.7 2.1.1 Value propositions:
P.7 2.1.2 Customer segments
P.8 2.1.3 Customer channels and relationships
P.8 2.1.4 Environmental and social benefits and dis-benefits
P.8 2.1.5 Revenue streams, cost Structure, key resources, activities & partners
P.9 2.2 Environmental Analysis
P.10 2.3 TOWS Analysis
P.11 2.4 Competitor Analysis
P.12 2.5 VRIO Analysis
P.13 2.6 Location Decisions
P.14 3.0 Objectives
P.14 3.1 Sales
P.14 3.2 Profit
P.14 3.3 Image
P.14 3.4 Customer Acquisition
P.15 4.0 Target Market
P.15 4.1 Primary Target Market Persona
P.16 4.2 Secondary Target Market Persona
P.17 4.3 Positioning Statement
P.18 5.0 Competitive Strategy
P.18 5.1 Strategic Approach
P.18 5.1.1 Treacy and Wiersemas Values Discipline Approach
P.19 5.1.2 Bowmans Strategic Clock
P.20 5.2 Marketing Strategy
P.20 5.2 Product Strategy
P.21 5.3 Pricing Strategy
P.22 5.4 Place Strategy
P.22 5.5 Promotion Strategy
P.23 5.6 Physical Evidence
P.24 5.7 People
P.24 5.8 Process
P.25 6.0 Operations Plan
P.25 6.1 HR Plan
P.26 6.2 Merchandising Plan
P.26 6.3 Gantt Chart
P.27 6.4 Risk Analysis
P.28 7.0 Budget
P.29 8.0 Control
P.29 8.1 Evaluation Plan
P.29 8.2 Improvement Plan
P.31 9.0 Reference List
P.XXXVI 10.0 Appendices
P.XXXVI 10.1 Appendix 1
P.XXXVIII 10.2 Appendix 2
P.XL 10.3 Appendix 3
P.XLVII 10.4 Appendix 4
P.XLVIII 10.5 Appendix 5
P.L 10.6 Appendix 6 A, B, C
P.LI 10.6 Appendix 6 D
P.LII 10.6 Appendix 6 E
P.LIV 10.7 Appendix 7 A
P.LIV 10.7 Appendix 7 B
P.LV 10.8 Appendix 8 A
P.LV 10.8 Appendix 8 B
P.LVI 10.9 Appendix 9
P.LVII 10.10 Appendix 10
P.LVIII 10.11 Appendix 11 A
P.LXIII 10.11 Appendix 11 B
P.LXVIII 10.11 Appendix 11 C
P.LXIX 10.11 Appendix 11 D
P.LXXI 10.12 Appendix 12
P.LXXII 10.13 Appendix 13