The eclectic assortment quickly assembled behind it a fiercely loyal fan base, and this fueled the opening of Unrestricted Society’s first brick-and-mortar store in the Orlando suburb of Lake Mary in 2000, along with the birth of unrestrictedsociety.com in 2004, and the first mail-order catalog arriving in homes during the summer of 2005.
Unrestricted Society is much more than a women’s clothing brand. At the heart of our community is a unique and evolving bond with our customers. We explore the lifestyle of our girl, encouraging self-confidence and self-expression; the ability to identify what she loves is our secret to offering her the best product assortment and experience possible.
II. Strategic Focus and Plan
This section covers three aspects of corporate strategy that influence the marketing plan: (1) the mission, (2) goals, and (3) core competencies that provide Unrestricted Society with their competitive advantage.
MISSION
The mission and vision of Unrestricted Society is to market lines of high-quality, eccentric, bohemian, women’s clothing at exceptional prices that satisfy consumers in this rapidly growing segment while providing competitive career opportunities for employees and above-average returns to stockholders.
GOALS
For the coming five years, Unrestricted Society seeks to achieve the following goals:
Nonfinancial Goals:
1. To retain its current image as the largest brand of bohemian women’s clothing in which it competes.
2. To add a new product line every second year.
3. To open 3 new brick and mortar stores every year in new metropolitan markets.
4. To achieve international expansion in two countries by 2019 (Year 1) and four by 2022 (Year 4).
Financial Goals:
1. To obtain a real growth rate of 10 percent per year in earnings per share over time.
2. To obtain a return on equity of at least 25 percent.
3. To offer 5 percent more public stock by the year 2019.
4. To increase ecommerce sales by 5-10% each year we operate.
CORE COMPETENCY AND SUSTAINABLE COMPETITIVE ADVANTAGE
In terms of core competency, Unrestricted Society seeks to achieve a unique ability to provide distinctive, high-quality women’s clothing and related accessories using our background in clothing, music, and home décor to excite the urban and bohemian tastes for these products and to deliver these products to the customer using effective and efficient manufacturing and distribution systems that maintain Unrestricted Society’s aesthetic and quality standard.
To translate these core competencies into a sustainable competitive advantage, Unrestricted Society will collaborate closely with designers, suppliers, and distributors to build relationships necessary to satisfy the high taste standards of our customer.
III. Situational Analysis
This situational analysis starts with a snapshot of the current environment in which Unrestricted Society finds itself competing in by providing a brief SWOT (strengths, weaknesses, opportunities, threats) analysis. After this overview, the analysis probes fine levels of detail: industry, competitors, company and consumers.
SWOT ANALYSIS
Figure 1 shows the internal and external factors affecting the market opportunities for Unrestricted Society. Stated briefly, the SWOT analysis highlights the great strides taken by Unrestricted Society since it first appeared as a swamp shop in Orlando, Florida. In Unrestricted Society’s favor, its strengths internally consist of an experienced management and design team, board of directors, excellent acceptance of its product lines in which the brand competes, and a strong manufacturing and distribution system to serve the myriad of markets in which it exists. Favorable external factors or opportunities include the increasing appeal of discount stores, new international markets, and the increasing popularity of ecommerce.
Figure 1. SWOT ANALYSIS FOR UNRESTRICTED SOCIETY
INTERNAL FACTORS STRENGTHS WEAKNESSES
Management Experienced and creative management, designers, and board of directors Small designer and management can restrict options in the job market
Offerings Unique, high-quality, higher price pointed product lines Myriad of lower-priced, lower-quality competitors
Marketing Distribution within current markets with tremendous reception No international awareness of the brand unless consumer travels to the U.S.
Personnel Efficient, largely expanded store level work force; small efficient designer and management with little turnover Small gap if store-level employee leaves, large gap if key designer or management leave
Finance Exponential growth in sale revenues Limited resources may restrict growth opportunities in international markets
Manufacturing Internal designers outsourcing to single supplier to ensure high quality Lack of economies of scale to larger competitors
R&D Continuing efforts to ensure innovative, unique designs delivered in quality products Lack of reliability and guarantee of success due to trends in the industry in which we compete
Consumer/Social Upscale market likely to stabilize; Bohemian clothing is a rapidly growing segment of women’s clothing due to growth in music festivals and desire for unique clothing Price point may lead to limitation in mass or international markets; consumers value the strong brand name
Competitive Distinctive name and kitting for packages across all stores and ecommerce Product lines are not patentable; competitors can mimic product for a lower price
Technological Handmade pieces and touches on product cannot be produced by factory Competitors can mimic product at a rapid pace
Economic Consumer income is high; convenience important to U.S. consumers Many households would rather shop online through ecommerce
Legal/Regulatory High tax and tariff on imports eliminates some competitors outsourcing manufacturing an distribution Cannot patent products therefore cannot regulate mimics by competitors
Among unfavorable factors, the main weakness is the lack of discounted product lines from Unrestricted Society in comparison to its competitors. Other adverse factors include the relatively small design and management team which limits the economic impact in the job market. Threats include competitors mimicking products for a lower price and the danger of the high-price point product lines potentially limiting access to international markets.
INDUSTRY ANALYSIS: TRENDS IN WOMENS CLOTHING
Compared to other industries, women’s clothing changes most rapidly. What is hot on the market today will be blasé tomorrow as seasons change, hemlines rise and fall, just as sales figures. In the U.S., the apparel market has continued to grow exponentially to $315 billion and of that, the women’s clothing industry generates 35% of that business in brick and mortar stores (Statista). However, just as fashion evolves, so does the way we obtain it (IBIS World Report 44812).
Less people are reaching towards malls and outlet stores and resorting to the comfort and convenience of e-commerce. Hectic lifestyles have demanded an increase in convenience and the women’s clothing industry responded with an expansion of online stores. Expansion to online retailing has given companies the opportunity to expand into mass and international markets. In 2016, retail ecommerce revenue amounted to $72 billion, surpassing brick and mortar sales in the U.S. alone. Women’s clothing and accessories has dominated the ecommerce world as the most popular market segment year after year. According to the current financial trends of the industry, ecommerce is projecting to reach over $124 million in revenue as of 2022 (IBIS World Report 42433).
COMPETITORS IN THE WOMENS CLOTHING MARKET
The women’s clothing industry represents over $111 million in annual sales. On average, the industry is driven by households earning more than $50,000 with 10-20% of disposable income. The industry’s product lines fall into two groups: apparel and accessories. Both are offered in brick and mortar and ecommerce. 67% of the U.S. revenue in this industry is a result of ecommerce which in turn, presents itself as a major disadvantage (Statista, U.S.Online Apparel and Fashion Revenue 2022).
As for apparel and accessory competitors, Unrestricted Society faces them from both brick and mortar and online. The most competitive brands are Nordstrom (16.6% of the market), Old Navy (8.1% of the market), J.Crew (5.1% of the market), and Victoria Secret (3.6%) of the market (Market Share Reporter 2013).
According to Chron’s analysis of the industry, most consumers prefer to shop in a physical store unless the apparel retailer offers an easier, more pleasant experience online in the convenience of their home or phone. Generating an online retail store that provides easy navigation, fast searching, easy ways to pay, and fast, if not free, shipping, has allowed this generation to avoid the stressors of accessing a brick and mortar store (Mellinger 2018).
As a result, malls in which Unrestricted Society operates, have suffered. When large department stores which drive foot traffic close, smaller retailers will lose the consumers who wandering the mall making additional, impulsive stops.
COMPANY ANALYSIS
Currently, Unrestricted Society’s products compete in the women’s clothing and accessories market, specializing in eccentric and bohemian styles. While the brand has built a loyal customer base and community with our apparel lines of woven blouses, knit top, sweaters, pants, denim, and outerwear, does not mean out product lines cannot expand. Due to the brand loyalty, expansion into product lines such as beauty products (make up, hair products, skin care), intimate pieces (bras, panties, sleepwear) and movement pieces (exercise clothing and accessories) is among our goals. With growth into these product segments, Unrestricted Society expects to broad its position in a way that can lead to an impressive market share for the new product categories and potential expansion into the international market.
As of now, Unrestricted Society using a singular outsourced manufacturer which works closely with the design team to produce consistently high-quality products. With greater volume being demanded if Unrestricted Society expands into the international market, a steady decrease in cost of goods sold is expected. By evolving the brand in such ways, the management team must find ways to maintain the high-quality and unique standard that is responsible for our consumer retention.
CUSTOMER ANALYSIS
In terms of customer analysis, this section describes (1) the profile and characteristics of customers expected to buy Unrestricted Society products and (2) the price sensitivity of consumers in the United States.
Customer Characteristics. Demographically, bohemian women’s clothing and accessories are generally purchased by customers representing a broad range of socioeconomic settings. Unrestricted Society is purchased primarily by consumers with a high school education or higher and whose disposable income is between 10-20% of their annual income. The typical household purchasing Unrestricted Society’s products range in ages 20-64 years old.
Customers of Unrestricted Society are not limited to one style of self-expression through our apparel and accessory lines. We label our lines as “girls” who represent a certain style that Unrestricted Society encompasses in order for our customers to have a personal connection to the brand. Harley is a carefree, laid back, girl who is down to earth. Her wardrobe consists of jeans and vintage t-shirts. Teagan is the true essence of the bohemian side of the brand who wears loose flowing dresses and tops and can often be found wearing accessories made from what nature offers. Wyatt is the naturally alluring, charming girl of the group who loves a night out on the town in tight dresses that accentuates the true beauty of a women. Lastly, Chandler is the romantic of the girls who loves any delicate lacey piece that adds the perfect feminine touch to any outfit.
As a brand, we believe that designing and providing product lines with the attributes of each of these girls allows us to increase our reach and market share instead of limiting our product line potential.
Price Sensitivity. Consumers in the U.S. are concentrating more on price while making purchasing decisions in stores and online. Approximately eight out of every 10 consumers are consistently looking for discounts and deals while they shop whether it is waiting for promotional sales or coupons. Close to 92% of millennials said that promotional deals influence their shopping lists and 51% stated that their coupon usage has increased in the past year. After initial exposure to a brand of product, whether in store or online, 84% on consumers searched for coupons.
Currently, Unrestricted Society operates at a higher price point than its competitors but offers promotional deals throughout seasons and holidays in efforts to make room for new product and discounts for your birthday month. Instead of stressing the occasional promotional deals, Unrestricted Society places emphasis on the quality and uniqueness of its products (Gauzente 2010).
IV. Product-Market Focus
This section describe the five-year marketing and product objectives from Unrestricted Society and the target markets, points of difference, and positioning of its lines of Unrestricted Society apparel and accessories.
MARKETING AND PRODUCT OBJECTIVES
Unrestricted Society’s marketing intent is to take complete advantage of the brand’s potential while building a base of other product lines from which other lines of revenue can be sourced – both in brick and mortar and ecommerce segments.
These are detailed below:
- Current Markets. Our current markets will be expanded at the retail level by offering a variety of product assortment. In addition, sales will grow due to consumer awareness, consumer retention, and repeat purchases, thereby leading to more efficient warehouse distribution channels.
- New Markets: By the end of 2019, Unrestricted Society’s product lines will be expanded into two international countries metropolitan markets. By the end of 2022, year 5, an additional two international countries metropolitan markets will be added to our shares. This will represent a 10% real growth rate and an additional 5% growth in stock offerings.
- Ecommerce: With the expansion of Unrestricted Society to an ecommerce site, all product lines will be distributed in the U.S. and internationally to existing and new markets. Sales are expected to grow 10% by the end of each year given that Unrestricted Society implements a new prod
uct like every other year. - New Product Lines: Unrestricted Society’s brand presence will be expanded at the retail level by introducing the following product lines: beauty products (make up, hair products, skin care) at the end of Year 1, intimate pieces (bras, panties, sleepwear) at the end of Year 3 and movement pieces (exercise clothing and accessories) at the end of Year 5. This will be accomplished through extensive research and development in the beginning of Year 1 to identify areas of potential product line growth. Additionally, the brand must be licensed to select the categories.
TARGET MARKETS
The primary target market for Unrestricted Society’s product lines are college, post-graduate, customers in search of unique, high-quality designs ranging in age 20-64.¬ These households acquire a 10-20% disposable income of their annual. Expansion into other product lines such as beauty, intimates, and movement position the company as a lifestyle brand in which consumers need both identity and well-being fulfilled.
CUSTOMER VALUE PROPOSITION
Unrestricted Society offers the modern women a line of clothing that caters to their intelligence, creativity, and individuality in brick and mortar and ecommerce storefronts while maintain its high-quality and undeniable recognition as Unrestricted Society.
POINTS OF DIFFERENCE
The “points of difference” – characteristics that make Unrestricted Society apparel and accessories unique relative to competitors – fall into four important criteria:
Unique Designs. No known competitors offers high-quality, unique designs like Unrestricted Society’s. Our design teams work closely with our distributor to offer piece with handmade embroidery, design, and fabrics from all over the world.
Brick & Mortar/Ecommerce Experience. With the expansion of ecommerce and the limited traffic to brick and mortar stores, Unrestricted society offers a clientele base. Every customer, whether returning or not, receives a customer profile where they place sizes, preferences, styles based on the girls of our brand, as well as notification preferences for promotional deals and new product. Our packaging in stores are composed of all items wrapped neatly in tissue and then place in a cloth reusable bag with Unrestricted Society’s print and logo on them for marketing. The same bag designs are allocated to online orders as well to provide a consistent brand image.
Sense of Community. With the rise of ecommerce, an application for smartphones is projected to increase our sales. In order to build a sense of community, we offer an segment like Instagram but specifically for our products. Society Us is an extension of our application that allows our customers to post photos in our products all around the world. These can be viewed in an interactive new feed where you can list the products worn and shop them directly from the image.
Lifestyle Brand. Expansion of our product lines into beauty, intimates, and movement move Unrestricted Society into the lifestyle brand category. By offering different product lines that encompass the carefree urban spirit of the brand, we in turn are increasing our market share and revenue.
V. Marketing Program
The four marketing mix elements of Unrestricted Society’s marketing program are detailed below. Note that our “offering” is a unique, high-quality lifestyle brand and our “product” is the line expansions of beauty, intimates, and movement.
PRODUCT STRATEGY
Product Lines. Currently, Unrestricted society offers lines of apparel (woven blouses, knit top, sweaters, pants, denim, and outerwear) and accessories (jewelry, handbags, shoes, hats, belts). This marketing plan extends these lines further into a lifestyle brand. Our beauty line will offer skin care products, hair products, and a make-up line. The intimates line will offer bras, panties, and sleepwear. The movement line will offer a series of exercise clothes and accessories such as yoga matts and blocks in efforts to promote a healthy lifestyle.
Unique Product Quality. Our design and management teams work closely with our distribution center to provide high quality apparel. Each item of clothing is design with inspiration from our girls’ styles and each has appropriate care of the garment instructed on the tags to ensure the life of the product. Our fabrics and resources are ethically sourced, meaning no real leathers, furs, or feathers are used to create our products.
Packaging. Reflecting the “uniqueness” of its products, our packaging conveys our ethical duty to our customers. Each “package” or purchase in store is wrapped in recycled tissue paper to protect the items’ integrity and place in a cloth reusable bag depicted with our logo and design for easy brand recognition. Customers are encourage to bring bag our reusable bags for their next purchase to receive 15% off their entire purchase. For our online orders, the same logo and design are place on a 100% recycled box in which the items are wrapped in the same tissue from our store to promote a sense of consistency and experience within Unrestricted Society’s stores and online store front.
PRICE STRATEGY
Unrestricted Society’s pricing ranges anywhere from $28-$500 for a product in order to reflect the time that goes into each piece as well as the uniqueness and availability of our products. However, due to increasing consumer price consciousness, we have on-going promotional sales such as 3 for $30 socks, 3 for $12 hair scrunchies, 3 for $30 panties, and the occasional additional percentage off of our sale items. In order to build report with our loyal customers, we offer a 14-day price adjustment period where if you purchase an item and within the allotted days, the item goes on sale, we honor the difference back to your original form of payment.
PROMOTION STRATEGY
Key promotional programs consist of testers, birthday exclusives, and movement events.
Testers. With expansion into our beauty line, Unrestricted Society brick and mortar stores offer a series of testers in order to try the products before you buy them. Employees receive additional training on each product and how to keep it clean in a store base. These products include makeup, skin care, and hair products.
Birthday Exclusives. For our brand loyal customers and those who receive our marketing emails, we offer a promotion of 15% off every full-priced item you buy in the month of your birthday. This coupon is applied automatically to your customer profile in store and online to promote consistency across all platforms we serve.
Movement Events. With expansion into the movement line of exercise clothing, we offer a series of events in potential markets. To promote a healthy lifestyle brand, we pair with a local yoga studio in the market in which we would like to expand and offer a free class to those who sign up. We then send a capsule sample of the movement product line and accessories for the customers to try and buy. In efforts to excite the prospected area about the product line, we also raffle off a year membership to the partners yoga studio and a $500 gift card to Unrestricted Society.
DISTRIBUTION STRATEGY
Unrestricted Society is distributed in its present markets through our single distributor. The distributor manufactures the product, warehouses it, and then distributes it to our brick and mortar stores. Any ecommerce purchases are sent directly from the warehouse inventory unless the last of the product is left in a brick and mortar stores’ inventory. If this is the case, the store is then designated to package the product and ship it to the customer.
VI. Financial Data and Projections
PAST SALES REVENUES
Historically, Unrestricted Society has had a steady increase in sales revenue since its introduction into the market back in 1995. With the introduction of our first brick and mortar store in 2000 we witnessed an exponential growth largely due to accessibility. Sales have continued to rise due to a combination of promotional sales, product expansion, and market expansion but at a reduced rate. The trends in Unrestricted Society’s sales revenues is depicted in Figure 2.