Business Plan - Development

Business Plan Developmententr 4433- 005

Presented to: Douglas macdonald

Becky Freeman: 201234784Chelsey Davies 201494098Terra Fillmore 201470549

ThreeSixty Jean Boutique

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Table of Contents

Business Concept Executive Summary 1The Opportunity Gap 3ThreeSixtys Technology 3ThreeSixtys Value Proposition 3Company Overview 3Denim Suppliers 4Exhibit 1 Clothing and Accessory Suppliers 4Store Layout 5

Market Opportunity The Retail Industry 5The Market 5Technology Trend 6

Target Market Calgary Market 6Target Demographic 7

Location Analysis Characteristics 8Exhibit 2 2012 Census Data 8Leasing Details and Costs 8Location Requirements 9Transportation, Parking and Traffic 9Competition 9

Pricing QualityPricing Strategy 9Exhibit 3.0 Price Quality of Jeans 9Exhibit 3.1 Price Quality of Shirts and Dresses10Exhibit 3.2 Price Quality of Accessories11

Advertising and Promotion StrategyExhibit 4 Advertising and Promotion Strategy12Marketing Strategies13

Industry CompetitionIndustry Competition14Exhibit 5 The Competitive Matrix16Legal Legal Structure 18Risks18Insurance Package18Exhibit 6.0- Investment and Ownership Structure 19Shareholders Agreement 19Management Team19Job Descriptions19Exhibit 7.0- Shareholders & Key Management Team20Exhibit 8.0- GANTT Chart 21

Financial InformationExhibit 9.0- Start Up Costs22Exhibit 10- Sales Forecast 23Exhibit 11- Proforma Income Statement23Exhibit 12- Proforma Balance Sheet24Exhibit 13- Statement of Cash Flow25Exhibit 14- Ratio Analysis26Exhibit 15- Start Up Costs 26Assumptions27

Work Cited28

Executive SummaryOur focus is to provide fashion-oriented women exclusive fashions while also featuring, made to measure, as well as ready to wear premium jeans. By using a 360-degree body scanning technology, we can utilize an upcoming trend in the fashion industry that has not yet been introduced into the Calgary market. ThreeSixtys belief is that providing an excellent customer experience is just as important as selling a pair of jeans. We provide a 360-degree experience by carrying a unique and selective clothing line of both fashionable and urban chic pieces, while our jeans are designed by you, only for you.

The global denim market is expected to reach $56 billion by 2018 with the highest spending in North America. Our target market is the Urban Young, with an age range from 25-44, with the disposable income to spend from their upscale salaries. This target market is said to account for at least 84% of Canadas population.

ThreeSixtys projected revenue is $650,000 in the first year and $700,000 in the second year. This would yield a net income of $13, 042 in the first year and $36, 823 in the second year. This will bring a return on investment of 5.22% in the first year and 14.73% in the following year. We are seeking a cash loan of $200,000 for our company.

The legal structure of our company will be incorporated. Doing so will allow greater access to capital, lower corporate taxes rates as well as limited liability well also permitting us to utilize a specialized management team. Our primary partners will consist of Becky Freeman who will be the Marketing & Communications Manager. The second partner will be Terra Fillmore, the Operations Manager and finally, Chelsey Davies will be our accountant. All three owners are well experienced in the retail industry and have completed their BBAs. Strong mentors support all three partners.

ThreeSixty is set to locate them selves in Kensington at 100-10A St. NW, Calgary, Alberta. This location is in very good proximity to our target market, is within a fashionable and trendy area and is in a good building thats fairly new construction. This location has high traffic flow and is also a transit hub for many major bus and train routes.

Our current competition consists mainly of other leading premium jean companies. These competitors focus their business on providing their customers with premium jeans, which emphasise high quality and fit. With the exception of one company, none of these competitors offer made-to-measure jeans; while zero offer a specialized technology such as ThreeSixtys. By offering a unique storefront with a strong specified product line and accompanying technology, knowledgeable staff and a strong commitment to womens fashion, we can sustain a competitive advantage.

Our pricing strategy will encompass the follow-the-leader strategy and will offer premium products that differ in price accordingly. Our pricing will be customer based and will employ accuracy and quality to our customers. The high disposable income and priority on high accuracy make our target market relatively inelastic. Our promotional strategy combines a diverse group of marketing strategies, social media exposure and public events to create a close customer relationship and will create strong brand loyalty. These methods will require moderate funding, but will have a large impact on our customers.Confidentiality AgreementThis agreement is to acknowledge that the information provided by ThreeSixty Inc., in this business plan is unique to this business and confidential; therefore, anyone reading this plan agrees not to disclose any of the information in this business plan without the express written permission of ThreeSixty Inc. It is also acknowledged by the reader of this business plan that the information furnished in this business plan, other than information that is in the public domain, may cause serious harm or damage to ThreeSixty and will be kept in the strictest confidence. Upon request, this document is to be immediately returned to ThreeSixty Inc.

Signature _________________________

Name (typed or printed) ____________________________

Date _________________________This is the business plan for ThreeSixty. The presentation of this business plan does not imply an offering of securities.

BUSINESS CONCEPT AND OVERVIEW

The Opportunity GapThe fashion industry is always evolving and it can be quite difficult for women to find the right fitting jeans that accentuate all the right curves. ThreeSixtys premium jeans are targeted towards the early adopters and fashion forward women. Our purpose is to help solve this gap by delivering customers their specific body measurements using 3D scanning technology. Once the measurements are recorded a pattern is drawn and a product can be designed to the customers choosing. Customers are able to choose specific fabrics and washes, pocket style, rise as well as embroidery. The last step is fabricating and sewing the final product together. After the process is complete clients have the option of automatically uploaded and storing their measurements into our database. This provides customers the ability to simply return and known their exact fit.

ThreeSixtys Technology The KX-16 Body Scanner is supplied by [TC]2 which is located out of Cary, North Carolina. The scanner is the same size as an average retail changing room, therefore requires no additional space. The data density on this device is about 1.5 million points for a body and is scanned from 16 fixed heads, four different angles and four different heights, this allows for accurate measures of the clients entire body. Measurement definitions as well as print output can be completely customized to the user. This device also operates automatically without the need of an attendant and will provide data acquisition within seconds. This technology gives ThreeSixty the ability to do body shape analyses, 3D product apparel development, made-to-measure clothing, as well as clothing styling and recommendations. For 3D scanner specifications refer to Appendix A-1.2. For specifications on operations parameters and costs of technology please refer to Appendix A-1.3 to 1.4.

ThreeSixtys Value PropositionFull body digitalization has been around for over fifteen years, however no company been able to find a complete solution that allows for commercial success (Appendix A-1.1). Recent new advancements in cost reduction, the introduction of more competitors into the marketplace, and increased demand for digitalization cause make the technology more affordable. It is apparent that ThreeSixty can help fill this gap by providing customers a proper visualization and details before the garment is made. This is a significant benefit compared to traditional seamstresses. Due to these advances it is said that the fashion and apparel industry will become more interesting and therefore we will start to see an increase in these specific technologies in the future (Appendix A-1.1). ThreeSixty has the technology and ability to penetrate this market before any other competitors, therefore giving us a significant advantage and head start.

Our Company OverviewNot only does ThreeSixty provide unique and very fashionable, made-to-measure jeans, we also have ready to wear jeans at a lower price point compared to our made-to-measure collection. This will offer our customers the chance to buy high quality, premium jeans but at a lower price point. Other revenue streams also include fashionable, urban chic shirts, dresses and accessories. Our boutique will provide women with an exceptional service the second they walk in the door. ThreeSixtys highly trained staff will be able to assist women in finding the right jean for their body type. Our staff will educate them on how the process works, prices as well as the different options and designs for them.

ThreeSixty is a high-end boutique located in a trendy area where our Urban Young target demographic shops. Our storefront will portray a New York City vibe with a loft feel that is enticing to our customers. Our tagline, Designed by you, only for you demonstrates the innovative and unique process set in place that allows fashion oriented women to be a part of the designing process. Premium jeans are a staple item for any woman and ThreeSixtys urban chic environment provides a memorable and enjoyable shopping experience.

Our business strategy will permit us to satisfy these womens cravings and need for affordable luxury items, while capturing a portion of their disposable income they are willing to spend on staple fashion items (Appendix A-1.6). Through ThreeSixty, we will build a national brand through our operations and marketing excellence. It will create widespread awareness of our premium, high quality jeans as well as our innovative 3D technology, to ensure we surpass the capabilities of our competitor brands.

Denim SuppliersThrough primary research of direct competitors we have found there to be a direct correlation between denim fit being one, if not the most significant factor when choosing premium denim. Legendary, Levi Strauss & Co stated that one of their current stores in San Francisco is starting to make custom, made-to-measure jeans in house, however use the traditional method of a seamstress at hand to take the individual's measurements (Appendix A-1.7 & 1.8). Nudie Jeans focuses most of their effort into various fits of jeans but did stated the potential added value of this technology to be quite applicable in the marketplace. However finds the 3D Scanning Technology a little costly at this moment in time. After talking to Noble Jeans it was also clear that they were intrigued by the technology and had said they considered it in the past. However only 5% of their business model is custom patterns as their primary focus is on special U.S. made fabrics. Through this primary research as well as our secondary research on the market, we have discovered there is definitely a trend within custom jeans in which our technology can address directly (Appendix A-1.7 & 1.8). This emerging technology within the fashion industry will be examined closer in our technology trend section.

Exhibit 1 - Clothing and Accessory SuppliersSupplierHead Office Manufactured InKey Criteria

Free People NYC, L.A. & ChicagoChina Currently present in 1000 specialty stores worldwide Women aged 25+ Boho and contemporary style

TULLE N.Y.C. China Vintage inspired, modern clothing Showcases femininity and creativity

Rebecca MinkoffN.Y.C.NYC & China Industry leader in accessible luxury apparel Extremely high quality Popular among young women and celebrities

Dolce VitaN.Y.C. & SeattleChina Broad range of clothing Stand out pieces 2Youthful, contemporary and relaxed

*For more information on suppliers see communications in Appendix A- 1.7

Store LayoutThreeSixtys retail location will be 1,571 square feet (Appendix E-1.4). The shape of our location is very long and narrow so therefore will be following a free flow layout, which is ideal for small stores under 5,000 square feet, making it conducive for browsing customers. The free flow layout is also said to be ideal when you are selling the same type of merchandise such as fashion apparel (Appendix A- 1.5) The feature for our boutique will be our denim wall, which showcases numerous spools of fabrics for the customer to choose from when designing their made-to-measure jeans. There will also be glass cases throughout the boutique to showcase specific denim designs or features of the season. Featured clothing such as dresses, tops and accessories will be on either side of the check out counter in the front as well as the back end of the store. This is shown in Appendix A- 1.5.

CALGARY MARKET OPPORTUNITY

The Retail IndustryWe are operating in the womens retail clothing industry. This market is starting to see positive growth as it continues to recover from the recession and is expected to continue (Appendix B- 1.5). The Canadian apparel market is reaching a point where intense competition is starting to become present as brands and trends start to reach a more saturated environment. Previously Canadians were faced with a lack of available designer brands, fast fashion trends and courant apparel. However this is starting to rapidly change due to intense competition such as H&M, Forever 21, Zara, J Crew and others entering the Canadian market (Appendix B- 1.8). Notably the strength of the Canadian economy will greatly influence the success of the apparel industry in the coming years, as both high and low end segments are expected to see very strong growth (Appendix B-1.8).

The MarketThreeSixty will be focusing on the accessible luxury brands, as known as affordable luxury, within the clothing apparel market. The Canadian apparel industry has seen an increase in sales dollars as well as volumes of products that are considered affordable or accessible luxury (Appendix B- 1.8). Canada has a large percentage of middle and upper class incomes that have trended towards higher spending on luxury-clothing items, which makes the accessible luxury brands more attainable to this demographic. These individuals will ultimately seek out these brands, in attempt to differentiate themselves from others buying the cheap-chic retailers such as H&M and Zara, which have recently been dominating the marketplace (Appendix B- 1.8).

Asia Pacific and North America make up half of the jean market globally, however the market for womens jeans is stronger within North America. Canada also leads the world in spending per capita on denim jeans as seen in (Appendix B- 1.0) below. The global denim market is also expected to reach $56 billion by the year 2018 (Appendix B- 1.9)

In 2012 it was estimated that the jean industry increased by 2% to reach total sales of slightly over $2 billion, with premium jeans growing the fastest with the highest margin of 5% within Canada. (Appendix B- 1.5). Over the forecasted period of the next few years, jean sales are expected to remain mostly stagnant; nonetheless premium jeans are expected to lead the jeans segment with a compounded annual growth rate of 2% (Appendix B- 1.5). According to Cotton Incorporated Lifestyle Monitor, premium jeans have done exceptionally well even throughout the economic downturn. A study done in the U.S. stated that 78% of consumers love or enjoy wearing denim jeans, as it is estimated that 60% of U.S. citizens wear jeans to work and often will wear denim up to four days a week. Within this survey only 16% of people mentioned price as a top concern, while nearly 50% of women conveyed fit as a top priority (Appendix B-1.4).

The fact that denim shoppers are less concerned about price but focused on style and fit proves that ThreeSixty is able to attract consumers with our premium jeans. The idea of premium denim has changed consumers mindsets, which have been demonstrated above. It is said when, Consumers today see jeans for $150 dollars, and they feel if the jeans fit well and are from a visible brand, it is worth the investment. This customer's willingness to spend more money on jeans has been stretched, which positively affects the higher-end brands. (Appendix B-2.0). RETAIL TECHNOLOGY TRENDS

Technology TrendIt is stated that previous generations of these body scanners have been too expensive for companies to integrate into their businesses, however Bodymetrics like our [TC]2 technology are a fraction of the cost and can be installed within a few hours. This technology has the ability to transform the apparel industry by providing new levels of personalized customer service as well as reducing the number of clothing items that are returned due to incorrect fits, which is often a significant problem for retail stores.

Bodymetrics a 3D full body scanner based out of the UK and has been installed in Selfridges stores for a number of years already. Selfridges, a UK luxury chain has embraced this technology, which in return has boosted their jean sales by a total of 20%. (Appendix A-1.9).

According to Lectra, a world leader of integrated technology solutions states that 3D scanners can be a priceless competitive advantage within the fashion environment. With these new advancements in the technology, designers and merchandisers are now able to understand the applications more efficiently, allowing them to be creative within a few days or even hours. This provides them with a simplified process, without having to sacrifice power. Previously seamstresses had to measure the individual several times in order to get the persons accurate fit, which could often be a lengthy and expensive process. This technology provides accurate measurements in a few seconds, while also reducing cost. 3D technology at the design stage can help companies reduce their costs and time to market, ultimately making them more efficient and profitable in the long run. Additional benefits to this particular technology include virtual fit checking, improved pattern modeling, increased speed to market profits as well as reduced carbon footprint as the company no longer needs to produce numerous prototypes (Appendix A-2.0)

Calgary MarketAccording to Canada 411, there are currently 507 womens clothing stores in Calgary (Appendix B-2.1). This number does not indicate that these stores are all boutiques or operating in the same consumer market, however it does give us a rough idea of how many similar stores are operating within the same industry. Due to the size of Calgary, 507 womens clothing stores is relatively low compared to a lot of other metropolitan cities such as Vancouver or Toronto. Our market is not seasonal, as it will operate year round. We will bring in seasonal collections four times throughout the year, however should not see any significant fluctuations throughout the year, as women tend to shop year round.

Target Demographic- We will be focusing on the Urban Young demographic but more specific the Electric Avenues and the Young Digerati demographic (Appendix B-1.1). These younger, upscale urban trendsetters mainly consist of single or young couples as 58% of them are considered to be a non-family, while 22.6% are couples without children. These individuals are living in fashionable in-town neighbourhoods in metropolitan cities such as Calgary, Toronto, Ottawa and Vancouver. This middle to high class individuals are typically aged 25-44 in white collar or service sector jobs. These individuals are highly affluent and often live in expensive high-rise apartments or condos mainly in inner city areas. This demographic thrives on enjoying the liveliness of the city by trying out new bars, fitness clubs or coffee shops. These people also enjoy shopping the latest fashions at nearby boutiques. Due to the majority of them have yet to start families, they have both the time and discretionary income to spend money on them selves. These two demographics have upscale average salary ranging anywhere from $85,000 to $130,000. Within the Urban Young demographic, 42.7% is considered to be 25-44 years old.

The average household income of the Young Digerati demographic is $112, 613 back in 2008. In 2008, it was recorded that the Young Digeratis account for 79% of the entire population in Canada. As shown in Appendix B- 1.1 the Calgary area is said to have an average penetration level of Young Digeratis living within the city. According to this consumer, it is stated that they are, Prepared to pay more for products that are a little bit different from those that one may not see all over (Appendix B-1.1).

Within the Electric Avenue demographic, 84% of Canadas population is ranked within this demographic (Appendix B-1.1). Their average household income is $78, 357. The city of Calgary is considered to have a high penetration rate of these Electric Avenues as seen in Appendix #. Large portions of the Electric Avenues attitudes are focused on looking good. My confidence is greatly enhanced when I know I look my best, demonstrating the desire for products like our own (Appendix B-1.1).

In Alberta alone there was approximately 316, 980 individuals earning $100,000 or more back in 2011 (Appendix B- 1.3). On average this is considered a very good income, therefore the assumption can be made that this group can spend less frivolously on affordable luxury brands. This does not assume that all these people are within our target market, however we are able to develop an understanding of how many potential buyers there are within our income bracket that we can potentially capture. In 2009, on average Albertans spent $3,395 dollars on clothing alone. In 2009, Calgarians specifically were said to have spent $3,997 on clothing (Appendix B- 1.6). Looking at the highest quintile income bracket in Canada, which in 2009 was considered to be an income of $83,500 (after taxes) and above, the average expenditure on clothing was $5,881. (Appendix B- 1.7) As you can depict from these statistics, there is a large market of high quintile, or high-income individuals who tend to spend a large amount of money on clothing in general. Due to this we believe our boutique and our accessible luxury brands we sell, will greatly appeal to our target demographic.

The GIS map of Calgary shown in (Appendix B-1.2), highlights the downtown core of Calgary as well as inner city area mainly in black which represents the highest average spending on clothing in 2012. The average spending ranges anywhere from $1,425.77 to $10,336.16. Although this is a large range, it represents the large amount of money as well as spending habits that are apparent within Calgary. It also demonstrates the fact that the majority of this income is located in downtown or inner city areas where our target market tends to spend most of their time. This is also the reason we have chosen to situate our business in this area.

LOCATION ANALYSIS

CharacteristicsKensington is Calgarys urban village and considered to be one of Calgarys premiere shopping destinations (Appendix E-1.8). ThreeSixty will be located at the heart of this trendy neighbourhood along 10th street and Kensington Road northwest. The retail location is 1,571 square feet and located in a three-story building. The first level is underground parking, the second level is the street level composed of retail space, while the third level is composed of 80 condo units and offices (Appendix E-1.4) The easy accessibility and the centralized location of Kensington makes it a sought after retail location.

In the next ten years Kensington is estimated to see a 25% increase in residential populations, as many condominium developments will be leading this change (Appendix D-1.7). The following information, displayed in Exhibit 2 is from Census data collected in 2012 (Appendix E-1.4).

Exhibit 21 km3 km5 km

Population19,267116,929209,510

Average Household Income$116,871$107,897$114,748

According to Calgary Police Services during the past three months in the Kensington area there have been seven reported incidences related to theft which all occurred on the same day, relative to the total violations in Calgary of 10,676 one would consider Kensington a very safe neighborhood for both businesses and people (Appendix E-1.5).

Leasing Details and CostThe lease term will be five years at a rate of $30.00 per square foot, which includes taxes (Appendix E-2.0). In addition, the annual operating costs will be approximately $13.03 per square foot plus the cost of electricity (Appendix E-1.4). Therefore the total leasing cost is $43.03 per square foot. The leasing costs include: all exterior maintenance and improvements, insurance, taxes, trash and sewage removal, and utilities excluding electricity. The costs not covered are: interior improvement and renovations, electricity, and parking. Terms and condition pertaining to escape clauses and transfer of lease must be specified and agreed upon prior to signing of lease contract (Appendix E-2.0)

The rent expenditure that ThreeSixty will incur on an annual basis is $47,130, while operating costs will be $20,470 per year. Thus the total annul rent expenditure is approximately $67,600, which is equivalent to 11.27% of ThreeSixtys total revenue of $650,000. Compared to the Canadian industry average expenditure of 11.30%, ThreeSixty will be on par with the industry (Appendix E-1.0).

Location RequirementsAdding a business sign on the exterior space provided by the building, as well as repainting the interior (upon approval) will be the only renovations required before commencing business. According to the City of Calgary Bylaw, ThreeSixty is considered to be a retail dealer premises and is subject to a new business license fee of $161, in addition to a new fire inspection fee of $80.00 (Appendix E-1.1). This permit will allow ThreeSixty to operate at this location upon signing the leasing agreement.

Transportation, Parking and TrafficThreeSixty will be located on the very busy streets of Kensington Road and 10th Street Northwest with daily average traffic volumes of 9,000 and 15,000, respectively (Appendix E-1.3). Kensington is a very accessible neighbourhood with plenty of transportation options as it is located near: the LRT Sunnyside Station; Calgary Transit bus routes from Bowness, Varsity, Huntington; and the Community Shuttles (Appendix E-1.8).

For individuals who chose to drive there is plenty of parking options such as metered street parking, several parkades, and free street parking after 6pm as well as Sundays and holidays (Appendix E-1.6)

CompetitionKensington is home to over 250 unique shops, restaurants, and services. At the heart of this trendy neighbourhood ThreeSixty will have neighbouring tenants such as BMO, Julios Barrio, Bernard Callebaut, and Crave Cupcakes who help draw customers into the area time and time again (Appendix E-1.4). There is no direct competition for ThreeSixty in the Kensington area. Although there is indirect competition, as nine womens apparel boutiques are located within two kilometers of the storefront (Appendix E-1.9). For more information on competition please see Exhibit 5 below.

PRICE QUALITY

Pricing Strategy For our pricing strategy ThreeSixty will encompass the follow-the-leader strategy, which is the approach of using a particular competitor as a pricing-model. ThreeSixty is a small boutique in a very prominent competitive industry; our store is not in a position to consider itself a price leader as it is still to new of a concept with regards to the 3D technology (Appendix F-1.1)

Product costs differ quite substantially from piece to piece, therefore the mark-up price would vary accordingly. The service costs associated with the customer service and design of jeans will be built into the cost of products themselves, this is due to the substantially different product designs and resources needed dependent upon customer desires. Although in saying that ThreeSixty will aim to maintain a gross margin that is within the industry range of 45%.

Explanation of Exhibits These exhibits are based on the value of sales being $1,000 per square foot for Calgarys Chinook Centre, which was provided by Canadian Directory of Shopping Centers (Appendix F-1.2). Levis Chinook also considered this number to be on par. The quality perception is solely based on information gathered from Exhibit 5 the Competitive Matrix, as it is the most appropriate manner of evaluating the competitors.

Exhibit 3.0: Price Quality of Jeans

In Exhibit 3.0 The larger market share of 3x1 is attributed to the fact that they have nearly double the square footage of every competitor. The much smaller market share of ThreeSixty is attributed to the company being a new comer to an already established and competitive market. In addition to this, every competitor has sales in the millions, where as ThreeSixtys prospective sales are based on a conservative estimate of $650,000.

Exhibit 3.1: Price Quality of Shirts and Dresses

In Exhibit 3.1 excludes 3x1, as they do not sell shirts or dresses, therefore their market share is zero. In addition both 7 For All Mankind and True Religion do not sell dresses, which means a much smaller share as they have less products for customers to choose from. Levis only sells denim shirts and dresses, which results in less selection and variety thereby affecting their perceived quality. Joes sells both shirts and dresses, therefore increasing their market share. ThreeSixtys market share is again due to a product range and variety much larger than its competitors.

Exhibit 3.2 Price Quality Accessories

In Exhibit 3.2 neither 3x1 or Levis sell accessories, therefore their market share consequently is zero. 7 For All Mankind only sells scarves and Joes only sells hats which results in both competitors having smaller product ranges, thus decreasing their possible market share. True Religion sells a wider variety of accessories than most of the other competitors but not to the extent of ThreeSixty. Contrary to the competitors, ThreeSixty will have a large selection and variety of accessories; therefore it would be sensible to have a larger market share.

For further details on the breakdown of information found in the exhibits please see Appendix F-1.0.

Media / DescriptionType of Media & FrequencyCirculationExpenseAudience

EXTERIOR TRANSIT WRAPSeventy Posters (Back of the bus)

Advertising

26 week term Broad reach High frequency Powerful impact for the lowest cost per thousand of any media Reaches thousands of people every day$360 per 4 weeks26/4= 6.5($360)=$2,340 + $75 (production cost)=$2,415 Will circulate along major city routes from the suburbs to the downtown core Motorists, pedestrians and transit patrons

CALGARY WOMENS SHOW10x10 (100sq)Advertising/PromotionalOnly happens Twice a year Longest running womans show Backed by $140,000 in multimedia female- focused advertising$1,464 (including taxes) Fashion forward suburban moms Progressive boomers Trendsetters

AVENUE MAGAZINEFull page front and back color advertisement

Advertising

Choosing to be present in 5 issues /year. These specific issues directly relate to fashion or lifestyle topics Delivered to over 1600 different businesses Can easily promote the magazine and our ad through social media channels since majority accesses it through tablets, smartphones etc. 7 out of 10 readers will actually visit one of the recommended storesApprx $500/issueX 5=$2,500 Directly targets professionals and other businesses. 76% of Avenue readers are women, which is part of our T.M. Average reader has an income of over $100,000 Avenue magazine is often a medium for fashion related articles and topics

VIP SALEInvite select group of people to attend special event Promotional

Couple days prior to grand openingCreate buzz about the event by inviting ideal customers with influence in the community and friends. Give them a guest pass and send them a flyer or brochure with tantalizing details Small refreshments and champagne

=$500 (apprx)Directly targets individuals within T.M. who have influence. This can make word spread easily and build interest in the store

FASHION FLASH MOBWill take place in a high traffic area of Kensington (T.M. neighborhood)Advertising

Four times throughout the year (one show for every season) Unique and creative advertising, gets people talking, builds awareness. Takes place in trendy shopping area where apprx 19,000-117,000 people live within 3 kms (Appendix E-1.4)FREE

Will use volunteer models Spur conversation and catch people off guard. Will influence people to stop and watch. People will snap photos, tweet, check us out on social media channels etc.

DIRECT MAILAdvertising through Canada Posts services Advertising/Promotional

Four times throughout the year 95% of Canadians open their mail the day it arrives 70% of Canadians are likely to respond to flyersSet a budget of =$2,500By using Canada Posts Audience & Insights Solutions we can zero in on specific individuals based on specific demographics

REUSEABLE BAGSbags use guerilla marketing strategyAdvertising Year round, will then change advertisement Will be given out every time a customer makes a purchase 0.26 /Piece 10,000 bags=$2,500

Directly engages our T.M. and provides them with a reusable bag for groceries etc., which features loud advertisement for others to see

TOTAL= $11, 879Exhibit 4 - ADVERTISING AND PROMOTION STRATEGY

The promotional and advertising strategy aims to reach our target demographic through a broad range of initiatives. ThreeSixty is focusing on implementing unique and creative ways in order to increase awareness and customer loyalty. Through each of our advertising and promotional strategies, ThreeSixty will be able to effectively bring traffic into our boutique by building advocacy among our customers and providing women within the Calgary market, a valuable boutique for that perfect pair of jeans theyve been looking for!

Exterior Transit Wrap: Popular with local retailers as it is possible to select route to advertise on. With that being said ThreeSixty will mainly target the inner city areas as this is where the majority of our target market resides. Through this medium we will be able to target a broad range of people with a high frequency and have a powerful impact to those sitting in traffic, taking the bus or simply walking down the street.

Calgary Womens Show: By exhibiting at this tradeshow ThreeSixty will be able to interact directly with Calgarys female decision makers. It is said that thousands of trendsetting, fashion forward women attend this tradeshow that connects both shopping with an overall learning experience. The tradeshow also provides us with many branding opportunities as well. Due to the show only happens twice a year; turnout rates tend to be very high (Appendix G-1.4).

Avenue Magazine Ad: Our ad will be present in five different issues throughout the year. These being; Fashion, Art and Real Estate, 100 Things to Love About Calgary, Power Issue (Including Fashion), Fall Fashion Arts Preview and Real Estate as well as Spectacular Summer Guide. (Appendix G-1.1)

VIP Sale: Through our VIP sale we will be able to build a sense of mystery and exclusivity about our jeans and our boutique in general. We will be offering an exclusive, pre-opening sale for friends, family as well as those in the community that have influence (money, business women, large networks, career related fields etc.). We will be providing these guests with a guest pass as well as sending them a flyer or brochure with tantalizing details regarding our boutique and the special deals they will be offered. We will also provide refreshments and champagne to create a fun and inviting experience with a group of women. Ideally we would like to host this event one or two days before the grand opening to spread word, getting the conversation going and build interest in the store.

Flash Mob Fashion Show: This will be a great kick-off to each season throughout the year and free of charge to not only the audience but ThreeSixty as well! We will use volunteer models to hit the streets showcasing new arrivals or our finest denim designs, throughout a busy area of Kensington, preferably during an event, festival or highly populated time. The idea of this event is to be sporadic and random, therefore we will not be advertising it anywhere in order to create significant surprised reactions and buzz among people. This is a great, creative idea to gain exposure as people on the street will see the crowds, seek out what it is and hopefully share the experience through word of mouth and social media channels.

Direct Mail: By using Canada Post and their software, ThreeSixty is able to target people in specific neighbourhoods and within our target market by directly mailing them thereby broadening our reach (Appendix G- 1.2). ThreeSixty also plans on sending out specific deals to existing customer as according to Canada Post 94% of Canadians are likely to open a piece of mail if they already do business with the company (Appendix G- 1.4). Through this initiative we will be able to increase profits as well track our results. Eco-friendly Shopping Bags: ThreeSixty will order custom reusable shopping bags. Through this supplier we will be able to use a guerrilla marketing technique to create very eye catching and custom bags that act as a walking advertisement for our boutique. After looking at examples (Appendix G- 1.6), our idea is to have a girls behind dressed in nice denim jeans with our, Designed by you, only for you slogan. This technique is fairly easy and does not require much effort on our end, as it will be the consumers acting as our promotional medium.

Social Media- Facebook, Instagram & Twitter: Using social media channels is probably going to be one of our most important strategies due its popularity and societies strong dependence on it. Customers want to be updated constantly and want to feel like they are a part of your network; social media is a great platform to do so. Through these channels we will be able to advertise promotions, communications, events, contests as well as new designs, trends or arrivals. Through contests we can engage our followers to participate in activities to promote our business for a chance to win a special giveaway or discount within our store. Our designed Facebook website is illustrated in (Appendix G- 1.0).

INUDSTRY COMPETITION

Industry CompetitionThe North American denim industry can be a very competitive industry to break into (Appendix C- 1.). It is filled with companies who are selling a lifestyle, not just a pair of jeans and in turn have a very loyal customer following. It is organizations such as these that are ThreeSixtys direct competitors. Small boutiques located in the downtown area of Calgary are not considered the direct competition for ThreeSixty due to that face that none focus primarily on high quality, premium jeans with a custom fit. There are boutiques who carry a small selection of lower quality jeans, but these would not present an accurate business model of ThreeSixtys true competition. There are currently two main trends in the fashion world, the skinny jeans and the desire from customization (Appendix C-1.4). These trends are things that have been identified by our direct competitors in some way or another.

3x1 is considered a direct competitor because they are the most notable store that produces custom made jeans based on exact measurements, with the ability for the customer to customize every detail (Appendix C1- 2). 3x1 is just as concerned with giving you an exceptional experience as they are with selling you a pair of jeans. Although the majority of their sales comes from their collection jeans that are sold in upscale department stores such as Barneys, they have still detected and successfully acted on the customization trend as well as made skinny jeans a staple in their collection (Appendix D- 1.4).

Levis is another direct competitor of ThreeSixty that has attempted to harness the customization trend. Levis has developed Curve ID, which is meant to solve common problems women face, while trying to find jeans that fit right. To determine which line of jeans is designed to fit your body best, a sales associate must take different measurements that leads them to one of their options. Although Levis in Calgary has attempted to address the desire of women to have great fitting jeans by custom fits, they are not able to deliver on a customizable aesthetic and therefore end up having generic jeans. A Levis store in San Francisco and another in New York, are more accurately tuned into the trend of custom jeans. A customer can make an appointment with Levis master tailor, Ryan Grant-Hays, to design and order a bespoke pair of the traditional Levis 501s (Appendix C- 1.4). Unfortunately, this process is not available online and a Calgarian would have to obtain an appointment with Mr. Grant-Hays and travel to one of the two cities.

Joes Jeans, which does not have a retail location in Canada, are famous for having a wider variety of colour selections available in the coveted skinny jeans in addition to their wide variety of rises, leg openings, and washes. Joes also has styles that are designed for specific body types. For example, women who are voluptuous and curvy should try their Honey Booty-Fit (Saks). While Joes has mastered the art of creating skinny jeans that customers love, they have yet to develop any solutions to the desire of consumers to have custom products.

7 for all mankind has developed a technology called slim illusion that they claim will make you feel at least one size smaller by using a tighter construction and with more stretch (Appendix C- 1.1). Fabrics they are experimenting with include suede and leather. 7 for all mankind has captured the skinny trend and does a good job of providing multiple styles for women to choose from when trying to find their perfect fit.

True Religion jeans are manufactured in the United States and demand that all companies in their supply chain adhere to ethical working practices. Consumers believe that True Religion flatters all different body types (Appendix C- 1.3). While a variety of people feel good and believe they look good in True Religion jeans, the brand has not taken any strides to customizing their jeans as of yet. However, True Religion also has a large variety of skinny jeans and super skinny jeans that are available to its customers.

Our indirect competitors are other womens clothing stores that carry our direct competitors as well as other designer jeans under one roof. We have identified Aritzia, Holt Renfrew, and The Bay as our top three indirect competitors. Instead of having to go to each individual store to decide which jeans fit you best, you can try them all in one stop. The downside for a consumer is that the indirect competitors store may not have a large selection as the direct competitors do as well as a potential decrease in product knowledge.

All of ThreeSixtys competitors have identified and responded to the trend of super tight skinny jeans. However, only 3x1 has truly addressed the demand for perfect with the ability for personal style. The attention that 3x1 and ThreeSixty have given to this trend is what sets us apart from the competition. Although Levis provides a custom fit to a person who is on a budget, they fail to capture the other portion of the trend, which is to have a custom look. At the current time, 3x1 is the industry leader in providing super premium using traditional means of measurement. The 3D scanning technology that ThreeSixty has harnessed not only has the ability to change the premium custom jean market but to also help mould changing industry.

For more information on ThreeSixtys direct competition, refer to The Competitive Matrix, Figure X, located on the following two pages.

Product: Exhibit 5 Competitive Matrix

ThreeSixty (Calgary)3x1 (New York)Levis (Calgary)Joes Jeans (San Francisco)7 for all mankind (Calgary)True Religion (Calgary)

Range-Large range of products -Custom made denim-Ready to wear in stock -Tops, dresses, and accessories from exclusive designers.-Large range of products -Collection-Customize a pair from the collection-Bespoke-Medium range of products -Multiple different leg options, they do not have different rises, or petite versions.

-Wide range of products.-Different rises, leg openings -Petite available -Tops, skirts, dresses, shorts, and accessories.

-Wide range of jeans-Different rises, leg openings, washes and fabrics. -Petite, short inseam, and maternity styles are available. Small variety of tops and accessories.-Wide range of jeans -Different rises, leg openings, washes and lengths. -Small variety of tops and outerwear.

Unique featuresMeasurements provided by the 3D body scanning technology allow someone to order jeans that are tailored to their own body.You can add virtually any unique feature you desire with bespoke.Levi's Curve ID is meant to solve the common problems people face with jeans not fitting properly. Offer named styles that cater to women with a specific body type.Slim Illusion technology that allows a person to feel up to one size smaller.All jeans have the same signature pocket on the back.

Quality-High quality -Eliminates the problem of ill-fitting denim -Reputable manufacturer makes all jeans in the USA. -Very high quality-Zippers from Switzerland-Hand painted buttons -Imported denim

-Good quality denim -Made from cotton that is sustainably produced-Manufactured in factories all across the World-High quality denim-Fits people of all shapes and sizes-High quality jeans -Manufactured in the USA with imported fabric.

-High quality denim -Works on all different body types-Manufactured in the U.S.

Price range-Off the rack $200+ -Custom-made $300-$425-Dresses $150-$250-Tops $80-$200 -Accessories $50-$150-Collection $225+-Bespoke