BP_Proposal_Pipers_Denim

Piper’s Denim

[1]

Mission Statement-

“It is our promise to supply quality designer denim to the greater Seattle Area. We offer a one stop shopping experience

with trained denim experts and onsite tailoring. Denim is a staple in wardrobes of all ages. Our focus is to ensure quality

denim pierces that will turn into an investment. We are committed to providing each individual with the perfect fit, quality,

materials, and style.”

Products-

PD specializes in specific premium denim brands. Each brand that we carry is in the maturity

stage and already obtains a strong presence of brand loyalty. PD offers denim for men, women, and

children. Select apparel and accessories from the chosen brands are also available for men and women.

PD will be carrying 5 premium denim brands listed below during the first 12 months of opening.

Piper’s Denim

[2]

Location & Market-

The location of the proposed business

will be located on 6th Avenue in Downtown

Seattle. Right in the center of The Retail Core of

Seattle provides a variety of upscale restaurants

and retailers. There are a variety of shopping

environments to choose from such as

department stores, boutiques, or shopping

centers. Seattle is home to one of the largest

shopping centers in the region.

Placing Piper’s Denim next to existing retail locations and competitors means that our client

base is already present. This could lower advertising costs, and ensure an established target market. PD

will also be in walking distance of several hotels and tourist attractions. Visitors from locations outside

the Seattle area generally make downtown a necessary stop. PD will be surrounded by a large number of

businesses and office buildings that bring in a number of commuters Mon-Fri. The proposed location of

PD is an attractive one and can be viewed as an asset to our company.

Opening Date-

The proposed opening to be advertised by PD will be the first weekend of September 2012. The grand

opening event will be the counterpart of PD’s quiet, non-advertised soft opening that will be held prior

during the third week of August.

Funding-

PD will be receiving a 30% startup loan from Bank of America. PD will be using 40% of personal funds

and 30% will be received from an investment offering.

Place Amount

Bank of America startup loan 30%

Personal Funds 40%

Offering 30%

Piper’s Denim

[3]

Success Factors-

Location

The chosen location is on 6th Avenue in Downtown Seattle, the retail core of the city. Currently

there is not a store in Downtown Seattle strictly geared towards denim with more than one

brand available.

Research shows that Downtown Seattle is a prime location for opening a business such as PD.

Seattle is one of the top cities for starting a new business. Consumers in the Seattle are further

educated compared to the United States as a whole. Residents fall into the middle to upper

middle class bracket. Meaning they obtain the median household income of our target market.

Research shows that Downtown Seattle attracts a large portion of pedestrian traffic. The retail

core location is already positioned in the market and currently attracts PD’s clientele.

By opening a business in this location PD will find it easier to build clientele based on

established customers and passers. Downtown Seattle also attracts a large amount of tourists that

will be beneficial to PD’s success.

Products

PD will offer brands that already have brand loyalty. PD has chosen to offer designer denim

brands such as 7 for all Mankind, True Religion, Hudson, Naked and Famous, and Joes Jeans

because they attract an upscale clientele. They are also brands that have proven to be successful

in the market place.

PD offers premium brands that customers already expect paying higher amounts for, high profit

margins will drive our business.

Unlike department stores PD will be able to carry classic styles of certain items while marketing

new designs and items that larger department stores may not carry. PD will have more leeway

providing customers with a unique merchandise selection

PD will offer a kids section providing customers with designer denim for kids in more styles

than surrounding retailers. This aspect supports PD’s image as a family one stop denim shop

PD will offer onsite tailoring. Although many premium denim brands are offered in short length

(also offered at PD) they are still too long for many customers. This is to be expected with

designer denim. Therefore PD will offer onsite tailoring for customers so they can get all their

shopping needs done in one place. This is a large selling point for PD

Piper’s Denim

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Timing

PD is planning to open in September. This is around the time students are purchasing back to

school clothes for the fall and winter. To compete with back to school sales PD will be having

our “After School Special Sale”. “Afterschool Special” will be one of our first promotional

events. If successful we plan to make it a yearly happening. This event will take place in late

September. The idea of this promotion is to offer a sale after the back to school rush. PD will

provide a week of marked down denim for back to school or fall reasons, but at promotional

prices. The end of September is when the weather starts getting colder and denim is no longer an

option but a need. We feel this event will attract many students all the way through college level

to invest in this year’s premium denim.

PD’s main attraction is our denim selection. Denim is a fashion item that remains a staple in

today’s wardrobe. Men, women, and children all wear denim.

Seattle’s climate averages to be 50 degrees annually, and has a high precipitation rate. Denim

jeans are perfect for these conditions. Seattle’s climate creates a high demand for merchandise

sold at PD.

Strategy

The simple one stop shop method and brand selection will be an attractive strategy for PD.

PD has a strict policy on maintaining good vendor relationships. This will ensure that all of our

client’s needs are met when promised.

PD will ensure that all employees are trained properly to ensure quality customer service. PD will

also work together as a team with clear communication between employees. This is an important

strategy because it eliminates individual competition. Both employees and customers will benefit

from a comfortable environment.

PD offers rewards and benefits for our frequent shoppers. They are referred to as our exclusive

clients. Because of the high price point our merchandise holds we feel it is important to provide

special benefits to our loyal customers. By advertising an exclusive sections and creating select

promotions will cause interest for other clients to join the club as well.

PD will use a premium pricing strategy with generous advantages to loyal clients in order to

achieve customer satisfaction and to match competitor prices. Together our premium priced

denim, quality merchandise, and customer benefits will be an effective pricing strategy that

works well with this business model.

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PD will use line pricing to increase the stores sales volume and the number of registered

transactions per day. By utilizing line pricing to increase the stores sales volume and registered

transactions per day will be an effective pricing strategy that works well with our business

volume.

Achievable Milestones

Establish ourselves as the go to denim retailer. This is important because PD is based around

denim and we want to offer our clients with expert denim knowledge. We also want to be

known in the Seattle area as the go to denim retailer so customers come to us first when

shopping for denim.

Brand expansion; PD knows there are many premium denim brands available, and many that are

fresh to the market utilizing new fabrics and technological finishes. After the opening of PD we

will work on providing more brands and a larger selection to clients. This is important because it

will help our client base grow as well as our business. It will also add to our reputable image as a

denim expert and one stop shop.

Based on market research conducted, and supporting evidence, opening a boutique like Piper’s

Denim in the retail core of Downtown Seattle will be an asset to the Seattle community. The opening of

PD proves to be a profitable business move and opportunity for an entrepreneur and investor. Piper

should be synonymous with denim after establishing a solid image in the Downtown Seattle market

place.

Piper’s Denim

[6]

Section Summaries-

The Company Overview-

The basic business concept of Pipers Denim is explained. As well as the hierarchy between

employee positions, and a detailed list of tasks performed by each.

A strategic plan and chart prior to the grand opening of PD is illustrated.

Company objectives including long term and short term goals are discussed along with methods

and actions to follow.

Expected problems that business could potentially run into are explored along with actions and

solutions.

Market Analysis-

A complete analysis of Piper’s Denim target consumer is depicted through their demographic

and psychographic traits.

A commercial snap shot of PD’s consumer profile is illustrated through brand examples

correlating with brands sold at PD.

Competition, Location, climate, history, tourism, political, economic, cultural, and legal factors

surround or may directly affect the business are researched and analyzed.

Marketing Strategy Plan-

The marketing mix including brand and product descriptions are described.

Product charts showcasing the brands life cycle ad price ranges are illustrated.

Promotional planning is discussed. Marketing, advertising, and PR options are described as well

as budget sheets.

Vendor contact info and methods of shipment can also be found in this section.

Operations Plan-

Methods of merchandise planning, forecasting, and inventory control are explained.

Human Resources and general employee information is described.

Facility maintenance such as opening/closing duties, POS equipment, security options, and

janitorial serviced are all elucidated.

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Financial Plan-

Start- up Budget.

Projected Income Statement, including best case and worst case.

Opening and closing inventory.

Opening and closing balance sheet including best and worst case.

Supporting charts and graphs

Appendices-

A. Personal Resume

B. Sources

C. Product Photos, Floor Plan

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Business Concept-

Piper’s denim is a premium denim one stop shop. We offer quality brands and a personalized

experience with onsite tailoring. This factor alone separates us from our competitors. Our consumers are

brand conscious and fashion savvy. They value quality over price. We adhere to middle and upper class

families, along with young adults managing a disposable income. Our goal is to become a common

household name. Piper’s denim should be the place to go for your individual denim needs. Designer

jeans will continue to be a staple in the fashion industry. It’s important that our clients understand

Designer jeans are investment pieces, not just denim to wear.

At Piper’s denim we offer an exclusive selection of brands, styles, and fits available for men,

women merchandised on the first floor. Located on the second floor of our store is a selection of

designer denim for kids, clearance items, and fitting rooms.

PD carries merchandise and styles that may not be available at competing department stores.

Our selection and client attention is the focal point of our sales and defines our customer service. PD

offers customer benefits and will continue to remain active within the local community. With a specific

focus on the local fashion scene and long term goals of company and brand expansion as the business

matures.

It is vital that our image represents the quality and passion we share for the perfect pair of jeans.

The proposed location, Downtown Seattle, provides a climate for the need of denim. PD’s product mix,

location, premium image, and attentive customer service provides PD with numerous competitive

advantages over the current market. Piper should be synonymous with denim after establishing a solid

image in the market place.

Piper’s Denim

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Ownership-

Piper’s Denim will start out as a Sole Proprietorship. PD falls under the category of a small

business. The business will be owned by one person whom will take on the responsibilities of running a

business. The owner will own all assets and profits generated by the business. The owner will also be

responsible for any liabilities or debts the business may incur. The advantages of categorizing PD as a

Sole Proprietorship outweigh the disadvantages due to the current business size and concept. Below is a

bulleted list of the advantages of a Sole Proprietorship that endorse this form of ownership for PD.

Advantages of a Sole Proprietorship:

Easiest and least expensive form of ownership to organize.

Sole proprietors are in complete control, and within the parameters of the law, may make

decisions as they see fit

Sole proprietors receive all income generated by the business to keep or reinvest.

Profits from the business flow directly to the owner's personal tax return.

The business is easy to dissolve, if desired.1

1 http://www.themoneyalert.com/businesstypesofownership.html

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Organization Chart-

Piper’s Denim is a small business with a manageable amount of employees for our stores size.

Chart A illustrates an organizational flow chart separating PD employees by hierarchy. The store

manager works closely with Sales Leads and PD’s seamstress. The Assistant manager obtains the task of

managing PD’s sales associates which remain at the bottom of the hierarchy. At PD it is important that

all members of the team are involved. We provide each position with the task of working together with

management for marketing and promotional ideas. Chart B, below A, goes into more depth highlighting

important responsibilities each position represents.

Store Owner

Caitlin Scully

Sales Lead

PD Employee

Seamstress

PD Employee

Sales Lead

PD Employee

Sales Associate

PD Employee

Attorney

Legal

Store Manager

Caitlin Scully

Accounting

Boutique Financial

Assistant Manager

PD Employee

Store Manager

•Owns business

•Hiring process

•Accounting/payroll

•Vendor relationships

•Managing staff

•Conducts meetings

•Marketing and promotions

•Visual merchandising

•Inventory

•Works closely with Sales Leads to train for higher positions

Assistant Manager

•Aids in managing staff

•Works closely with Sales Associates to train for lead positions

•Skilled and adept at completing store paper work and running store operations

•Marketing and Promotions

•Sales floor duties

•Visual merchandising

Sales Leads

•Efficient and trained to sell

•Extensive product knowledge

•Running store operations'


•Some marketing and promotional work

•Setting up displays

•Inventory and stock control responsibilities

Sales Associates


•POS

•Recovery

•Cleaning

•Training opportunity for sales lead

•Some marketing and promotional work

•Some display work

Seamstress

•Tailoring

•Record keeping of clients and sizes

•Knowledge of products and minor sales floor duties

•Clean work section that represents PD's premium image

A.

B.

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Strategy-

Below is a timeline chart of scheduled tasks and deadlines to complete prior to the grand opening in

September 2013.

0 2 4 6 8 10 12

September

October

November

December

January

February

March

April

May

June

July

August

September

Piper's Denim Timeline Chart

Grand Opening

Soft Opening

Hire/Train Employees

Start Advertising/Create Website

Contact Vendors/SecureMerchandise

Electric and Plumbling

Higher Interior Designer/BeginBuilding

Secure Business Licsence

Secure Location

Plan Loan

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Below is a detailed list of the tasks illustrated above.

Plan Loan: Obtain a small business loan through Wells Fargo following their lending steps. PD

will obtain the 7A loan. Most small businesses are familiar with this loan. For example PD will

pay back month to month payments over a period of time, such as 25 years.

Secure Location: We will secure our location on 6th Avenue, the Retail Core, by contacting an

agent and moving forward with payment agreements and paperwork; terms.

Secure Business License: PD will go through the proper national, state, and city processes that

will allow PD to acquire a business license and run within the city of Seattle.

Hire Interior Designer/Begin Building: Image is of major importance to PD and the shopping

experience as a whole. Customer service is major, but without a comfortable environment,

customers won’t receive the best service, and experience possible. Therefore PD is planning to

hire an interior designer to help execute the planned vision for our store. Our hired interior

designer will design a floor plan and will design and purchase furniture accordingly to our

inspiration provided. We will provide a budget for the interior designer to purchase fixtures and

all other items necessary.

Electric and Plumbing: PD wants to have electric and plumbing throughout the building taken

care of 4 months before opening. This will allow us to prepare our store thoroughly. This will

also be major so we can hire employees and train them in the store earlier to allow a denim

expert staff.

Hire Visual Team: PD will hire a visual team in March and they will continue perfecting our

floor plan until April. Our hired visual team will work with the fixtures purchased by PD and

chosen by our interior designer. We are allowing two months for the design to ensure the best

possible results.

Contact Vendors/Secure Merchandise: Throughout the prior year PD will have traveled to all

the showrooms for our chosen denim brands. Throughout April and June we will finalize

purchase orders and secure merchandise for the fall and early winter seasons.

Start Advertising/Design Website: PD wants to start advertising in April. We will start subtly

and progress advertising mediums to broader markets as we get closer to our grand opening. At

the same time we want to hire a web designer and start our website. As the PD site is under

construction, we will provide a promotional advertisement provoking curiosity to those who

stumble upon our site until it is open for review.

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Hire/Train Employees: PD has planned to start the employee hiring process in June and

continue through August if necessary. We will start first by hiring managers and assistant

managers and trickle down to sales associates, and fill our onsite tailoring position. The reason

PD is starting the process so early is to ensure a fully trained sales staff that is comprehensively

trained in every aspect of our company.

Soft Opening: During the third week of August PD will have a soft opening. The opening will

be quiet and not advertised. This will allow us to see what kind of foot traffic clientele our store

attracts on a daily bases. This will help PD understand what works for our store and what we

need to change to ensure top business success.

Grand Opening: The grand opening will take place during the first weekend of September. The

grand opening will be advertised throughout chosen mediums and special promotions and

events for the day will be planned and performed accordingly.

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Company Objectives-

Short term (ST):

1. Denim Fashion Show: PD wants to position itself in Seattle’s fashion scene. Along with getting

involved with Seattlefashions.com PD would like to host and sponsor a denim oriented fashion show to

spread awareness about the store, and provide local and upcoming designers with a chance to showcase

their designs.

Methods and Actions:

Network with local businesses and clothing boutiques such as Sway and Cake, Deli, Vain Hair

Salon, Ian etc.

Participate within Seattle’s local fashion scene

to get Piper’s Denim name recognized and

trusted through personal and online networking

with businesses such as CRAVE.

“CRAVE innovatively connects urban gals to

the sassiest, gutsiest, most inspiring people they

need to know. Our modern marketplace of

soirees, gatherings and online networking serves as your ambassador to everything there is to

CRAVE about Seattle.”2

Scout local designers through fashion shows, trade shows such as CAPSULE; an annual denim

trade show. Scouting through local design schools such as the art institute during fashion shows.

Advertise idea and positions through websites, newspapers, social media etc. such as the

magazine D-List, facebook.com, craigslist.com etc.

2. New Brand Introduction: The goal for PD is to grow and position ourselves as successful local

retailer in Seattle. This also means expanding our brand selection. Right before September towards the

end of August PD will introduce a new premium denim brand. PD will choose this selected brand based

on trend reports and trade show exhibitions.


Began planning a year in advance for the introduction. Explore and answer questions regarding

what brands we want to showcase, what lines, what season etc.

Analyze current denim trends to base answers off of to ensure successful profits

Research up and coming or profitable brands

2 http://thecravecompany.com/seattle/

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Attend fashion oriented events such as MAGIC or CAPSULE

Choose new brands to be introduced based on researching and trend forecasting that clearly

demonstrate profitability for Piper’s Denim

Advertise new brand introduction heavily offering promotions for loyal customers and place

emphasis on a larger selection of merchandise

3. Established Premium Denim Image: PD’s goal is to be Seattleites go to one stop denim shop.

After a year in business it is crucial that PD continues to create and maintain this image through a well

thought about merchandise selection, customer service, promotions, advertisements, events et cetera.

This goal can successfully be completed with constant focus and care on the business. Being attentive to

all areas of the company such as appearance, staff, accounting, merchandise selection, tracking sales,

inventory and stock control, successful advertising, networking, relationship building, utilizing all outlets

offered in downtown Seattle, strong customer service, loyal customer benefits, onsite tailoring etc. All

aspects create the whole of the business, the methods and actions to ensure a reputable image are quite

clear, but the difference between saying and doing is the strong focus, determination, confidence, and

strong management, such as me, will be the deciphering factor between saying and doing. Below are key

points to utilize on the to PD’s success.


Stay true to PD’s premium denim image. A one stop premium denim shop with a stylish and

personal atmosphere for the whole family

Ensure a trained staff familiar with Piper’s Denim mission statement, product knowledge, store

operations, and sales techniques

High focus on customer service

Promotions, advertisements, events, sales, customer benefits etc.

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“Growth is driven by referrals, local, national and international marketing,

strategic alliances and general business development, proprietary toolbars,

editorial, coordinated non-profit press, grassroots promotion, fundraising

initiatives and more. It's the marrying of these benefits that create true success.”1

Long term (LT)

1. Showcase local designers and encourage the success of Piper’s Denim as a small business:

Along with premium denim brands PD will work with local designers that that create merchandise

congruent to the stores theme.


After establishing an image in the market place PD would like this

fact to be one of the stores many known benefits for designers and

customers. PD will utilize the assistance of SFI, Seattle Fashion

Incubator.

“SFI membership is for new designers and small home based businesses to give them the tools

to plan or grow their existing businesses without costly trial and error mistakes.”3

2. Benefit the greater good: The location of Downtown Seattle is important to PD because it offers a

beautiful location for our business. PD would like to return the favor by saying thanks to the city.


Charity events, donations to for nonprofit organizations, involvement

with local business groups, donations and support for fashion

programs. Activities such as these can be in done in partner with the

help from groups such as Giving Corps.

1. Expand business: Eventually PD will want to expand their business in the future to other locations

in the Seattle area. This will add more employees and change the businesses organization internally.


Analyze current store data and profits to determine whether business expansion is a profitable

investment

Research and look into finding a partner, and legalities.

Monitor employees, conduct monthly meetings, and recruit potential employees through visiting

various retailers

Find a proposed location for expansion and research all elements such as demographics,

psychographics, financial information etc. and create proposal.

3 http://seattlefashionincubator.org/SFI/Services.html

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Expected Problems-

1. Shrinkage numbers grow

Contingency Plan

Increase Security

Employee bag checks

Hire temporary personal shoppers

Rid store layout of blind spots

2. Poor economy

Contingency Plan

Provide more promotional sales

Advertise an understanding of the poor economy and market PD as still a need

Buy cheaper merchandise during this time

Prepare savings and extra funds for problems such as stated above

3. Certain merchandise won’t sell based on trends

Contingency Plan

Place merchandise on clearance

Display merchandise in appealing ways or near the cash wrap

Try and sell to a discounted retailer

Turn pieces not being sold into promotional opportunities

4. Employee turnover too high

Contingency Plan

Background checks

Revaluation of management and training programs

Recruit sales associates personally from similar retailers

5. Failed advertising methods

Contingency Plan

Analyze what went wrong, and how can we revamp or fix the problem

Utilize advertising agencies or outside help

Analyze and research our target more clearly and successful advertising strategies in the local area

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Demographics-

The following research provides facts about the proposed location and demographic of a PD

(Piper’s Denim) customer. PD plans to conduct business in the retail core of Down Town Seattle.

Surrounding the city are neighborhoods of potential clients. Seattle offers a large amount of tourist

traffic as well. Along with a desirable client base Seattle also offers a premium location for a retail

business. Retail investment is breaking out all over. Two prominent commercial Real estate brokerages

placed the Puget Sound area in the top three regions expected to bring the greatest potential for retail

growth and investment. The following facts are provided from an article in the Seattle Times.

• Westfield South Center will swell by as many as 100 stores as part of a

$220 million expansion adding 550,000 sq. ft.4

• Northgate Mall (Seattle), the nation’s first mall, is spending $100 million to add

100,000 sq. ft. of shopping, a library branch, a community center, a 16-screen cinema

and 500 units of housing5

• The Bravern (Bellevue), a mixed-use development with hotel, office and living space,

will house the country’s 40th Neiman Marcus location6

• Kent Station, a contemporary urban village replete with a community college branch

campus, completed a new phase in October 2006 7

• Lincoln Square (Bellevue) opened at a cost of $500 million with its brand of high-end

retail, residential and office space8

• The Landing (Renton) opens 2007 with the title of 10th largest shopping complex in the

region and plans for a 14-screen theater, 1,000 residential units and a $390 million price tag 9

The facts stated above secure Seattle’s image as being a prime location for retail investment. This

is important PD because in order to run a successful business, external factors, such as location, need to

have positive success rates and business growth. Business growth also means an expanding customer

base to build off of. There are 4,507,000 people residing in the Seattle-Tacoma DMA making it the 13th

largest DMA in the United States, and 3,226,700 (72 percent) reside in the Seattle-Tacoma-Bellevue MSA

(Metropolitan Statistical Area), making it the 15th largest MSA in the nation. Annual retail sales in the

Seattle-Tacoma DMA are $74,243,858,000 ranking 12th among the nation’s other DMA markets, and 73

4 www.theseattletimes.com 5 IBID 6 IBID 7 IBID 8 IBID 9 IBID

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percent ($53,865,825,000) of those retail sales are made in the MSA10 Annual retail sales in the Seattle-

Tacoma area prove to be high compared to the rest of the country.

Startups and Established Companies-

Seattle is among the most attractive locations to start a new business because it offers the “total package”

(demographic, economic, financial, taxes, cultural) according to Expansion Management Magazine.

Topping the list of reasons why so many companies – upstart and Fortune 500 alike – are choosing

Seattle as the region’s educated workforce:

• With more than half of adults older than 25 holding a bachelor’s degree,

the U.S. Census Bureau ranks Seattle the smartest U.S. city

• Seattle is the most literate city in the nation, based on factors including

newspaper circulation and the number of area bookstores

• Washington schools got an “A” for academic achievement, success of

low-income and minority students, a 21st century teaching force and

overall return on investment from the U.S. Chamber of Commerce

• Four Bellevue schools made Newsweek’s 2007 list of best High Schools

in the nation

• Nearly one in five Seattleites has a graduate or professional degree 11

Information regarding successful business rates in Seattle is helpful in choosing the correct location for

our store. The Puget Sound’s area is one of the top three regions expected to bring the greatest potential

for retail growth and investment. This is a positive aspect for Piper’s Denim because we will be opening

a store in a blossoming retail environment. Seattle also holds the title of an attractive location to start a

business. This is due to a constructive demographic, economic, financial, and cultural environment. Also

noted, more than half of adults older than 25 hold a bachelors degree, and nearly one in five local

Seattleites has a graduate or professional degree. This is a positive aspect to our client base because the

majority of this group tends to reside in the middle to upper class neighborhoods. This can also assure a

knowledgeable employee base as well.

10 IBID 11 www.seattletimes.com

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The primary consumer for Pipers denim is Upper Middle Class families. Individual salaries

ranging from $80,000 to $150, 000 or $300, 000 combined. Not only do Mom and Dad shop here but so

do brother and sister. Mom and Dad both have secure jobs, and the financial ability to fulfill the needs

and wants of their children and themselves. Our secondary consumer Young Achievers, are a single and

younger crowd consisting of both male and female. They belong to an Urban Uptown social group. They

live or shop in communities with clothing boutiques and casual restaurants. They have a Median house

hold income of $88,728. As noted in the graph below Seattle and surrounding cities have the desired

average household income of our target market.

Wealthiest Zip Codes in Washington Based on IRS Figures for Adjusted Gross Income

State City Zip # of Returns

Adj. Gross

Income

Inc. Per

Return

Salary Per

Return

Tax Paid Per

Return

WASHINGTON Medina 98039 1,514 827,810 $546,770 $373,653 $174,068

WASHINGTON Seattle 98154 40 11,141 $278,525 $285,647 $80,947

WASHINGTON Bellevue 98009 799 211,335 $264,499 $83,600 $151,234

WASHINGTON Mercer Island 98040 11,614 1,818,661 $156,592 $111,075 $43,729

WASHINGTON Preston 98050 317 47,268 $149,110 $114,152 $46,537

WASHINGTON Redmond 98053 13,166 1,809,771 $137,458 $125,040 $39,231

WASHINGTON Bellevue 98004 11,914 1,593,524 $133,752 $97,783 $38,050

WASHINGTON Issaquah 98029 10,405 1,280,310 $123,048 $104,463 $31,897

WASHINGTON Seattle 98112 11,748 1,402,987 $119,423 $85,054 $33,564

WASHINGTON Woodinville 98072 16,386 1,891,576 $115,439 $93,376 $30,602

WASHINGTON Bellevue 98006 16,811 1,805,611 $107,407 $88,551 $28,775

WASHINGTON Bellevue 98005 8,769 922,932 $105,249 $86,531 $34,502

WASHINGTON Seattle 98124 921 95,419 $103,604 $89,390 $20,940

WASHINGTON Kirkland 98033 16,467 1,573,843 $95,576 $74,666 $23,999

WASHINGTON Redmond 98052 24,485 2,271,255 $92,761 $84,288 $24,902

http://wealth.mongabay.com/cities/WASHINGTON.html

http://wealth.mongabay.com/cities/WASHINGTON.html

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Seattle-98101

Household Income

Occupation

<$10,000 7.6% (among employed persons over 16)

$10,000-$14,999 7.4% Mgt./Professional 25.1%

$15,000-$24,999 12.9% Service 16.8%

$25,000-$34,999 18% Sales/Office 28.6%

$35,000-$49,999 18.9% Farm/Fishing/Forestry 0.3%

$50,000-$74,999 19.4% Construction/Extraction/Maint. 9.3%

$75,000-$99,999 7.3% Production/Transportation 19.8%

$100,000-$149,999 6.4% Unemployment/Poverty

$150,000-$199,999 1.1% Unemployed 3.7%

$200,000+ 1% Below Poverty Line 10.6%

Although Seattle’s median household income as a whole does not fit our desired target market,

subsections and surrounding cities do. We will be relying on most of our customer base to be coming in

from surrounding suburban areas and tourism. Pipers Denim will be located on 6th Avenue in the retail

core of Downtown Seattle, zip code 98101.

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[22]

Tourism-

The Seattle-King County area attracts more than 9.4 million overnight visitors annually who spend $4.75

billion and contribute more than $419 million in state and local tax revenues. There are 11,890 hotel

rooms in downtown Seattle’s central business district and more than 32,000 hotel rooms in the

Seattle/King County area.12 There are more Asian visitors here than average. This year, an estimated

35,000 people from China will visit Seattle, drawn by Alaskan cruises, as well as the opportunity to tour

Boeing’s giant factory in Everett. That’s half the number of visitors from Japan. But tourism officials

expect tourists from China to grow rapidly in numbers.13 Seattle is consistently ranked among the top

U.S. tourist destinations. Many attractions are located in the pedestrian-scale downtown area or within

easy access by bus and monorail.14 Major department stores and designer boutiques are located

downtown within walking distance of hotels and in suburban shopping centers throughout the area.15

2009 VISITOR IMPACT TO SEATTLE/KING COUNTY

Seattle-King Co. Visitor Volume

Total Overnight Visitors 8.8 Million

Visitor Expenditures

Food Stores $71 Million

Food Service $553 Million

Lodging $533 Million

Retail Sales $257 Million

Local Transportation and Gas $498 Million

Arts/Recreation/Entertainment $206 Million

Visitor Air Transportation $376 Million

Total Visitor Expenditures $6.9 Billion

Source: Dean Runyan Associates for Seattle’s Convention and Visitors Bureau

Visitor Profile

Median Age 40 yrs.

Median Household Income $74,300

Average Travel Party Size 2.1 people

12 www.seattle.gov 13 The Insider | Puget Sound Business Journal 14 www.city-data.com 15 IBID

http://www.bizjournals.com/seattle/stories/2010/09/13/newscolumn1.html#ixzz1DuLrwklM

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Per Day Travel Party Expenditures $204

Average # of Nights Stayed 5.7

Source: CIC Research, Inc., compiled over most recent four-year survey period

via visit intercept surveys

Purpose of Trip

Visiting Friends/Relatives 37%

Pleasure/Vacation/Special Events 43%

Business 10%

Convention/Conference/Meetings 5%

Other 5%Source: CIC Research, Inc., compiled over most recent four-year survey period

The highlighted sections show the potential client base that comes from tourism each year.

Retail sales average $275 million a year, the average income is roughly close to our desired target and the

majority of travelers are here for pleasure or vacation. Shopping fits into this category.

Piper’s Denim

[24]

Psychographic-

Consumer Preferences and Free Time Activities-

Piper’s primary consumer is brand loyal and fashion savvy. They’re knowledgeable about quality

brands and designers. Favorite brands will always remain a staple in this consumer’s life, but trending

items also attract their eyes. The preferred stores they shop at are tantamount to their favored brands. A

disposable income allows them to eat out often and favor certain establishments over others. Whether

it’s fine dining or a quick smoothie; taste, quality, and experience are more important than price. Piper’s

consumer sees all the box office hits and is up to date on the top TV shows. Since our consumer has

more financial freedom their leisure activities allows a variety of actions such as weekend vacations to

resorts, or playing with that new Ipad.

Clothing Brands Stores Restaurants

True Religion Joes Jeans Citizen’s of Humanity Hudson 7 for all mankind AG Jeans DIESEL Rock and Republic Mavi Jeans J Brand Paige Denim Coach Bailey 44 Williams Rast James Perse The North Face

Nordstrom Barneys Lord and Taylor Neiman Marcus J Crew True Religion Lucky Lulu Lemon Atheletica Sternavants Tiffany & Co. Microsoft Store Apple Bose Pottery Barn Williams-Sonoma

The Cheesecake Factory Wild Ginger P.F Changs Blue C Sushi Ruth’s Chris Steakhouse Gordon Biersch Pagliacci Jamba Juice Red Mango Starbucks Coffee Tully’s Coffee

Movies TV Leisurely Activities

Source Code Sucker Punch Iron Man 2 Easy A Despicable Me Harry Potter and the Deathly Hallows- Part 1 Kick Ass The Social Network Toy Story-3 Inception

American Idol The Bachelor NCIS Glee Dancing with the Stars The Game House Bones Criminal Minds Grey’s Anatomy Keeping Up with the Kardashians

Weekend Family Vacations Snowboarding Skiing Camping Boating Movies Eating Out Shopping Working Out Grooming Technology; video games, computer’s, I-pods etc. School or work related events

Piper’s Denim

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A Day in the Life-

A Piper’s Denim Family-

A typical Monday morning in the life of the Waylon family starts at 6:30 am. The Waylon family

consists of Dad, Mom, Sister, Brother, and 2 dogs. They live more than comfortably in a trendy upper

middle class neighborhood. Style is of the essence. The whole family takes pride in their image and

remains brand loyal to fashionable, quality brands. Dad is in his late thirties and he gets ready first

because he works full time as an Engineering manager for an Architecture firm. Dad awakes out of bed

in his Ralph Lauren Lounge pants. He quickly runs through his morning routine and changes into his

Calvin Klein undershirt and underwear which are worn under his Hugo Boss suit. This is a professional

look for work, on the weekends he usually throws on his favorite pair of True Religion Jeans and 7 for

all Mankind Flannel. Dad’s job requires him to be there early so he stops by the nearest Starbucks for

coffee and breakfast on his way to the firm. Mom, who is also in her late thirties, has a different job than

Dad in the mornings. She runs a trendy website from home, and does personal styling on the side. In the

morning Mom comes downstairs in her Burberry Checkered Lounge Pants, matching Burberry Henley

and starts breakfast. At this time Joe and Sarah, brother and sister, are getting ready for school. Joe is 15

and Sarah is almost 17. Image, appearance, and clothing brands are of major importance to them at this

time in their lives. Sarah comes down to breakfast in an Ella Moss sweater, her favorite pair of Joes

Jeans, and her Tory Burch Flats. Brother Joe comes down to breakfast in his Nudie Slacker Cut Boot

Cut Jeans, Alternative ‘game’ V Neck Tee, and his True Religion Brand Stitch it Sneaker. After a

homemade breakfast the kids are off to school and Mom has a styling appointment at noon. Her client is

laid back so a nice pair of jeans and blouse will be the perfect outfit. She finally decides on her J Brand

‘babe’ Flare Leg Stretch Jeans in a dark wash and a Bailey 44 ‘green thumb’ ruffle front blouse.

Weekend outfits depend on the family’s whereabouts. Outerwear such as the North Face or

Helly Hansen may be appropriate for the mountains, casual wear for family dinners, or perhaps a BCBG

floral party dress for Sarah as she goes out on the town. Maybe Joe puts on a nice pair of rare and raw

Japanese denim, Naked and Famous designer jeans for a date. While Mom and Dad dress in their

favorite brands such as James Perse for her and DIESEL for him as they go out to the Gordon Beirche

Brewing company to spend some quality time alone.

Piper’s Denim

[26]

Consumer Motivation-

VALS offers us a specific set of psychological traits and key

demographics. Two critical concepts for understanding

consumers are primary motivation and resources. This

combination determines how a person will express him or

herself in the marketplace. Our primary consumer is narrowed

down into two types Achievers, Strivers and Experiencers. 16

Knowing these two details can aid in brainstorming ways to

attract customers to our clothing. We can tailor appealing

features regarding our merchandise molded for specific

personalities. PD’s consumer motivation traits are split up into

three categories listed in the paragraphs below.

Achievers-

Motivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep

commitment to career and family. Their social lives reflect this focus and are structured around family,

their place of worship, and work. Achievers live conventional lives, are politically conservative, and

respect authority and the status quo. They value consensus, predictability, and stability over risk,

intimacy, and self-discovery. With many wants and needs, Achievers are active in the consumer

marketplace. Image is important to Achievers; they favor established, prestige products and services that

demonstrate success to their peers. Because of their busy lives, they are often interested in a variety of

time-saving devices.17

PD appeals to clients demonstrating personalities with “achiever” motivation because important

characteristics to them are image, premium items, and exclusive services. PD offers an upscale image by

displaying premium denim brands. Our onsite tailoring service and exclusive client perks clearly

illustrates a sought after appearance to peers.

16 www.strategicbusinessinsights.com 17 IBID

http://www.strategicbusinessinsights.com/


Piper’s Denim

[27]

Strivers-

Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are

concerned about the opinions and approval of others. Money defines success for Strivers, who don't

have enough of it to meet their desires. They favor stylish products that emulate the purchases of people

with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack

of skills and focus often prevents them from moving ahead. Strivers are active consumers because

shopping is both a social activity and an opportunity to demonstrate to peers their ability to buy. As

consumers, they are as impulsive as their financial circumstance will allow.18

PD appeals to clients demonstrating personalities with “striver” motivation because important

characteristics to them peer approval, stylish items emulating wealth, and shopping appears an activity to

them. Owning designer denim demonstrates an upscale image to society. Obtaining a wealthy image

clearly helps a “striver” define their image. Shopping is an activity to this type of individual. Therefore

PD provides an atmosphere with an entertaining shopping experience leaving room for impulse

purchases, another important trait of a “striver”.

Experiencers-

Experiencers are motivated by self-expression. Young, enthusiastic, and impulsive consumers,

Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek

variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in

exercise, sports, outdoor recreation, and social activities. Experiencers are avid consumers and spend a

comparatively high proportion of their income on fashion, entertainment, and socializing. Their

purchases reflect the emphasis that they place on looking good and having "cool" stuff. 19

PD appeals to clients demonstrating personalities with “experience” motivations because

important characteristics to them are looking good, obtaining “cool” merchandise, and favoring exciting

social activities. Most of PD’s customers that fall under this category will be our younger clientele. PD’s

younger consumers have a disposable income because they rely on family for their purchases, or an after

school job. Owning an expensive pair of jeans illustrates a cool appearance to peers that also doubles as

18 www.strategicbusinessinsights.com 19 IBID



Piper’s Denim

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an attractive feature for the owner. Fashionable items are a main concern of “experiencers”. This

youthful group strives in an exciting atmosphere and feeds off of social interaction. PD will provide an

entertaining shopping experience with a sociable staff. This provides an environment that that can easily

be turned into a social activity whether with a group of peers or solo.

Prizm-

Prizm is a snapshot of consumer market segments. This includes demographic traits, lifestyle

preferences, and consumer behaviors. PD’s consumers have been divided into three separate market

segments. Below is a description of the categories.

Winners Circle- At Piper’s denim our audience also prefers jewelry and luxury goods,

fragrances/cosmetics, and home furnishing. 20 This customer also shops at retailers like Nordstrom or

Barney’s as well as boutiques and specialty stores. They belong to an elite suburbs social group. They

exist at stage in life where they have an accumulated wealth that can be spent personally or on the whole

family. A customer in the winner’s circle group is typically older and has an established family. This client

is one of our driving forces at PD. They have a disposable income of 18%-27%. This is a large portion

of earnings that can be spent on shopping.

Young Digerati- Our young single consumer deals with a disposable income. This group usually goes

out on the weekends and shops for trendy and stylish items. Their lifestyle traits involve reading The

Economist, watching the Independent Film Channel, and driving Audi A4’s. 21 This group of clientele

has a disposable income of 8%-15%. This consumer is generally apart of PD’s young adult audience.

They may recently be college graduates supporting themselves therefore having extra spending cash. Or

they may be in college and still being supported by mom and dad who are a part of the winner’s circle.

Tween/Teen- This group and children has significant spending power because all of their income is

disposable. Teens account for one of the largest growing spending segments. They are the Key Shoppers

in dual income or single parent families. Our younger client base that shops here will most likely have

parents that are brand loyal to our merchandise as well. The disposable income for a tween is between

20 www.quantcast.com 21 www.claritas.com

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8% and 15%.22 A PD tween consumer belongs to a wealthy family that has the funds to support their

shopping habits.

23

A shopper at Piper’s Denim is motivated by Self-actualization, Esteem, and Love/Belonging.

Self-actualization- PD has classified a customer who is motivated by self actualization as follows. This

shopper typically has an established family and is more concerned with personal preference rather than

the influence of others. They are brand loyal and have a clear image of their merchandise needs.

Esteem- PD has classified a customer who is motivated by esteem as follows. This shopper can be from

all different types of consumers. They are satisfied by the approval of others and strive towards a

confident image. They are motivated by brand image and search for popular styles. Consumer’s from the

Tween/Teen group fall largely into this category.

Love/Belonging- PD has classified a customer who is motivated by love and belonging as follows.

Shoppers from this category are motivated by family and relationship needs. For example parents

22 A Buyers Life 23 http://meediastudies.blogspot.com/2010/10/maslows-hierarchy-of-needs.html

Maslow’s Hierarchy of needs

consists of five different types of

motivation to purchase products

which can be seen in the right

hand image.

http://meediastudies.blogspot.com/2010/10/maslows-hierarchy-of-needs.html

Piper’s Denim

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shopping for their toddlers first pair of designer jeans. They are doing this from the intention of

supplying their family with what they deem to be safe and socially acceptable.

The motivations listed above relate directly to the psychological motivations that fuel a PD

consumer, and the lifestyle traits that support their habits. A commonality shared between our target

market regardless of age, sex, or race is an income for our products, knowledge of brands and the market

place, and a desire for quality fashion. Regardless of classification all PD clients as a whole possess the

need to acquire an elite, attractive image. Socializing and defining themselves as currently hip strives both

lifestyle habits and purchasing drive. At Piper’s Denim it is important for us to learn, recognize, and

understand the traits of our consumer. Learning about each individual’s lifestyle and personality traits

can help employees better connect with customers. Motivating factors which prompt our clients to buy

are important in regards to the layout and floor set of the store, selling styles, chosen promotions,

advertisements, and the overall appeal of the business. Understanding these defining descriptions Sales

Associates can build a strong client base founded on a genuine and knowledgeable connection between

employee and customer. Customer service is our number 1 concern and gaining a profit is our number 1

goal. Memorizing consumer motivation and audience characteristics is valuable and beneficial to the

success of Piper’s Denim.

Piper’s Denim

[31]

Target Market-

Market Location-

The location of the proposed business will be

located on 6th Avenue in Downtown Seattle. Right in the

center of The Retail Core of Seattle provides a variety of

upscale restaurants and retailers. There are a variety of

shopping environments to choose from such as department

stores, boutiques, or shopping centers. Seattle is home

to one of the largest shopping centers in the region.

“Here you can enjoy a variety of public events

including the Holiday Carousel in the winter, and the

Out to Lunch concert series in the summer.” 24 “As of

2010, Seattle (zip 98101)'s population is 11,010 people.

Since 2000, it has had a population growth of 18.78

percent. Compared to the rest of the country, Seattle

(zip 98101)'s cost of living is 76.80% Higher than the

U.S. average.” 25

Placing Piper’s Denim next to existing retail locations and competitors means that our client

base is already present. This could lower advertising costs, and ensure an established target market. PD

will also be in walking distance of several hotels and tourist attractions. Visitors from locations outside

the Seattle area generally make downtown a necessary stop. PD will be surrounded by a large number of

businesses and office buildings that bring in a number of commuters Mon-Fri. The proposed location of

PD is an attractive one and can be viewed as an asset to our company.

24 www.downtownseattle.com/content/visitors/DTNhoods.cfm 25 bestplaces.net/zip-code/Washington/Seattle-/98101

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Market History-

“Seattle’s spectacular growth from 3,533 in 1880 to 237,194 by 1910 created the modern

metropolis. Not even a devastating fire in 1889, which turned most of downtown into what Rudyard

Kipling called “horrible black smudge,” slowed Seattle’s growth. The Klondike Gold Rush of 1897-1899

accelerated the process. Rapid growth also created the first distinctive neighborhoods. New streetcar and

cable railway systems spurred annexation of outlying

communities, bringing the various areas together

under a single political administration.” 26

“Downtown Seattle began to take shape in the early

twentieth century, after the University of Washington

relocated from the site of the present-day Fairmont

Olympic Hotel (built in 1924) to its land-grant

campus in northeast Seattle. City Engineer R. H.

Thomson launched an aggressive program of regrades

that flattened the area’s hills, including Denny Hill

(near the present site of the Westin Hotel), which blocked downtown’s northward expansion.” 27

“The Seattle World's Fair in 1962 brought new

economic dimensions to the region, establishing

Seattle as a tourist and entertainment center. As a

result of the reduction of federal support for

aerospace projects in the 1970s, the city's reliance

on the aircraft industry shifted to development of

its position as a transportation hub in the

international market. Since 1975 Seattle has

undergone renewed economic expansion to

become the financial, industrial, and trade center for the Pacific Northwest. Seattle made international

headlines in 1999 when the city played host to the World Trade Organization meeting. Forty thousand

demonstrators gathered to protest globalization; city leaders had hoped that the summit would showcase

Seattle as a world-class friend to free trade. The event highlighted the tension between those who liked

26 www.historylink.org/index.cfm?DisplayPage=output.cfm&file_id=7196 27 IBID

Piper’s Denim

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the new high-tech, high-wealth Seattle and those who believed that Seattle is losing its small-town

charm.” 28

Seattle’s history illustrates the story of a diverse and growing city. Seattle provides home to

various individuals belonging to a vast range of social groups. Through questioning times Seattle has

managed to find logical solutions to problems while enhancing their image as an intelligent US city.

Seattle offers much opportunity to new businesses through innovative technology and strategies. The

promotion of business and appearance is equally important. Seattle offers PD a desirable target market,

location, and promising history of flourishing endeavors.

28 city-data.com

Piper’s Denim

[34]

Geographic Analysis-

Land Area: 84 Sq Mi Population: 612,000 as of April 1st 2010 Population Density: 7826 people per sq mi

PD will rely heavily on foot traffic and volume for store sales. Below is a chart describing the

pedestrian counts by neighborhood throughout August 2010, and December 2010. The proposed

location of 6th Ave also receives the highest amount of pedestrian traffic. This is a positive aspect for PD

because it will attract a customer base.

“Downtown pedestrian traffic is generally higher in the summer than in the holiday season. Retail Core locations at 6th & Pine and 4th & Pine tend to be the busiest sites, especially during the holiday (December) wave. The site seeing the greatest difference between summer and holiday is the Waterfront (Alaska and Seneca) with an average traffic 74 percent higher in the summer.”29

The pedestrian count chart gives PD an expected number of expected foot traffic throughout

the summer and winter season. With this information we can be prepared to encounter this volume of

passers.

Pedestrian Counts

Neighborhood Location August 2010 December 2010

Uptown 1st Ave & Mercer ST 1,320 1032

South Lake Union Westlake Ave & Harrison ST

1679 1741

Denny Triangle 7th Ave & Stewart ST 2235 2299

Denny Triangle 9th Ave & Westlake Ave 2664 1895

Belltown Western Ave & Broad ST 1219 908

Retail Core 4th Ave & Pine ST 5891 5425

Retail Core 2nd Ave & University ST 2650 2605

Retail Core 4th Ave & Pike ST 2976 3472

Retail Core 6th Ave & Pine ST 7081 6505

Waterfront Alaskan Way & Seneca ST 5408 1288

First Hill Madison ST & Minor Ave 1797 1730

Capitol Hill Broadway & Olive Way 982 925

Pioneer Square 1st Ave & Yesler Way 3597 1963

International District 5th Ave and Weller ST 2608 2671 http://downtownseattle.com/content/download/NHoodProfile/DowntownSeattleProfile.pdf

Aside from foot traffic and local residents PD’s location can be accessed through automobile,

carpool, railroad, bus service, harbor facilities, Fishermen’s Terminal, and Seattle-Tacoma International

Airport.

29 http://downtownseattle.com/content/download/NHoodProfile/DowntownSeattleProfile.pdf

Piper’s Denim

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Climate-

Temperature by: Fahrenheit / Centigrade

Seattle C.O. Temperature Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual

Avg. Temperature 41.3 44.3 46.6 50.4 56.1 61.4 65.3 65.7 60.8 53.5 46.3 41.6 52.8

Avg. Max Temperature 46.1 50.6 53.7 58.1 64.2 69.6 74.1 74.1 68.8 60.0 51.5 46.2 59.8

Avg. Min Temperature 36.4 38.0 39.5 42.7 47.9 53.2 56.4 57.2 52.9 46.9 41.0 37.0 45.8

Days with Max Temp of 90

F or Higher 0.0 0.0 0.0 0.0 < 0.5 < 0.5 1.0 < 0.5 < 0.5 0.0 0.0 0.0 1.0

Days with Min Temp Below

Freezing 7.0 4.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 < 0.5 2.0 5.0 19.0

Seattle C.O. Heating and

Cooling Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual

Heating Degree Days 735 580 570 438 276 123 44.0 58.0 144 357 561 725 4611

Cooling Degree Days 0.0 0.0 0.0 0.0 0.0 15.0 54.0 80.0 18.0 0.0 0.0 0.0 167

Seattle C.O. Precipitation Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual

Precipitation (inches) 5.3 4.0 3.8 2.5 1.8 1.6 0.8 1.2 1.9 3.2 5.7 6.0 38.0

Days with Precipitation

0.01 inch or More 18.0 15.0 17.0 14.0 11.0 9.0 5.0 6.0 8.0 11.0 18.0 18.0 151

Monthly Snowfall (inches) 2.9 0.9 0.6 0.0 < 0.05 0.0 0.0 0.0 0.0 < 0.05 0.7 2.2 7.3

Other Seattle C.O.

Weather Indicators Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual

Clear Days 3.0 3.0 4.0 5.0 7.0 7.0 12.0 10.0 9.0 5.0 3.0 3.0 71.0

Partly Cloudy Days 5.0 6.0 8.0 9.0 10.0 8.0 10.0 10.0 8.0 8.0 6.0 5.0 93.0

Cloudy Days 23.0 19.0 19.0 16.0 14.0 15.0 9.0 11.0 13.0 18.0 21.0 23.0 201

Percent of Possible

Sunshine 28.0 34.0 42.0 47.0 52.0 49.0 63.0 56.0 53.0 37.0 28.0 23.0 43.0

http://www.climate-zone.com/climate/united-states/washington/seattle-co/index_centigrade.htm

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“Seattle (zip 98101), WA, gets 36 inches of rain per year. The US average is 37. Snowfall is 11 inches. The average US city gets 25 inches of snow per year. The number of days with any measurable precipitation is 155. On average, there are 164 sunny days per year in Seattle (zip 98101), WA. The July high is around 75 degrees. The January low is 37. Our comfort index, which is based on humidity during the hot months, is a 71 out of 100, where higher is more comfortable. The US average on the comfort index is 44.” 30

Seattle’s climate is generally average with a temperature of 50 degrees. Seattle’s average rainfall is

in par with the United States recorded average rainfall. The climate that Seattle emits is perfect walking

weather for locals and tourists alike. A portion of PD business will rely solely on foot traffic.

30 http://bestplaces.net/zip-code/washington/seattle-/98101

climate-zone.com

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Market Scope-

Median Family Income by State 2010

New York $103,600

San Francisco $99,400

Los Angeles $63,000

Boston $91,800

Seattle $85,600

Chicago $75,100

Minneapolis $84,000

Denver $75,900

Atlanta $71,800

Houston $44,500

HUD FY 2010 / Metro Areahttp://www.huduser.org/portal/datasets/il/il10/index.html

Education of Persons Over 25, Comparisons of US Cities, Percentage Completed

BA or Higher High School

English Not

Spoken at Home

Seattle 56.0 92.5 20.8

San Francisco 52.0 85.9 44.2

Washington, DC 48.5 87.1 12.6

Boston 44.7 85.5 33.6

Denver 40.3 84.3 25.6

New York 34.0 79.2 47.5

Chicago 33.1 80.3 34.3

Los Angeles 30.3 73.6 60.5

Miami 22.3 68.6 77.1

Detroit 12.4 77.0 11.3

Source: U.S. Census Bureau, 2009 American Community Survey

Seattle and the surrounding area has a higher medium income than the the countries average.

Residents of the Seattle area are highly educated compared to the rest of the US. These facts provide our

company with statistical information about our demographic. Research shows that placing PD in Seattle

would be profitable because residents of the area have our desired income bracket, and educational level

that provides high paying jobs.

http://www.huduser.org/portal/datasets/il/il10/index.html

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Below is a compiled list of PD’s surrounding zips and their economic indicators. This segment

focuses on the median household income of each area. The median household income in each can be

identitfied through its highlighted blue color that emphasizes the sums. Each individual graph should be

looked at as a whole for research purposes. After analyzing the highlighted numbers in the following 5

graphs below an analysis and summary of the surrounding zipcodes and their median household incomes

will be discussed

1. (Seattle, WA 98148)

Economic Indicators Household Income

Occupation


$10,000-$14,999 7.4% Mgt./Professional 25.1% $15,000-$24,999 12.9% Service 16.8% $25,000-$34,999 18% Sales/Office 28.6% $35,000-$49,999 18.9% Farm/Fishing/Forestry 0.3% $50,000-$74,999 19.4% Construction/Extraction/Maint. 9.3% $75,000-$99,999 7.3% Production/Transportation 19.8%


$150,000-$199,999 1.1% Unemployed 3.7% $200,000+ 1% Below Poverty Line 10.6%

Median Household Income: $37,411

2. (Mercer Island, WA 98040)


Occupation


$10,000-$14,999 2.8% Mgt./Professional 65.3% $15,000-$24,999 4.5% Service 5.4% $25,000-$34,999 5.6% Sales/Office 23.5% $35,000-$49,999 10.5% Farm/Fishing/Forestry 0.1% $50,000-$74,999 14.1% Construction/Extraction/Maint. 2.3% $75,000-$99,999 13.5% Production/Transportation 3.4%


$150,000-$199,999 8.3% Unemployed 1.9% $200,000+ 18.4% Below Poverty Line 3.2%


3. (Bellevue, WA 98006)


Occupation


$10,000-$14,999 1.6% Mgt./Professional 58.9% $15,000-$24,999 4.3% Service 7.4% $25,000-$34,999 5.2% Sales/Office 25.4% $35,000-$49,999 11.7% Farm/Fishing/Forestry 0.1% $50,000-$74,999 20.2% Construction/Extraction/Maint. 2.8% $75,000-$99,999 15.6% Production/Transportation 5.4%


$150,000-$199,999 8.6% Unemployed 2.3% $200,000+ 10% Below Poverty Line 3.2%


32

31 zipskinny.com

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4. (Kirkland, WA 98034)


Occupation


$10,000-$14,999 2.3% Mgt./Professional 45% $15,000-$24,999 7.2% Service 11.3% $25,000-$34,999 9.6% Sales/Office 28% $35,000-$49,999 16.2% Farm/Fishing/Forestry 0.1% $50,000-$74,999 25.5% Construction/Extraction/Maint. 6.7% $75,000-$99,999 16.4% Production/Transportation 8.8%



Median Household Income: $60,043 33

5. (Issaquah, WA 98029)


Occupation


$10,000-$14,999 1.4% Mgt./Professional 59.7% $15,000-$24,999 3.9% Service 7.6% $25,000-$34,999 5% Sales/Office 24.9% $35,000-$49,999 8.4% Farm/Fishing/Forestry 0.2% $50,000-$74,999 16.5% Construction/Extraction/Maint. 3% $75,000-$99,999 18.7% Production/Transportation 4.7%



Median Household Income: $91,146 34

It can be noted that 4 out of 5 zipcodes relevant to the home of a PD shopper and chosen for

research meet or exceed the expected household income of our target market. Seattle’s median

household income falls into the lowest bracket. This should not have a negative impact on business in

the Downtown Seattle location due to other appealing factors the area has to offer such as its significant

impact of tourists and foot traffic that Seattle attracts on a local, national, and international level. The

importance of knowing economic indicators in surrounding neighborhoods is imperative because our

target consumer resides in Seattle’s surrounding suberbs.

32 zipskinny.com 33 zipskinny.com 34 zipskinny.com

Piper’s Denim

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Market Size and Growth Rate-

Population Growth in the Northwest 1970-2010

Year Seattle, Greater Seattle Area*, Cascadia Region**

1970 530,831 1,939,000 7,738,635

1980 493,846 2,240,000 9,508,809

1990 516,259 2,748,867 11,000,384

2000 563,374 3,275,847 13,379,320

2010

(estimate)

612,000 3,707,400 15,069,765

Sources: WA State OFM; BC Stats; & U.S. Census Quick Facts. *King, Snohomish, Pierce and Kitsap counties. **Washington, Oregon and British Columbia

Population by Race 2010

Race/Ethnic Group Seattle

King

County

Washington

State

TOTAL population 563,374 1,884,200 6,587,600

White 394,889 1,428,353 5,566,607

(70.1%) (75.8%) (84.5%)

Black or African American 47,541 114,619 237,917

(8.4%) (6.1%) (3.6%)

American Indian & Alaska

Native

5,659 17,987 109,792

(1.0%) (1.0%) (1.7%)

Asian & Pacific Islander 76,714 257,932 470,361

(13.6%) (13.7%) (7.1%)

Hawaiian/Pac. Islander 2,804 - -

Chinese 19,415 - -

Filipino 15,867 - -

Japanese 8,979 - -

Korean 4,863 - -

Vietnamese 11,943 - -

Other Asian 12,843 - -

Pop Hispanic/Latino ethnicity (any

race)

29,719 127,933 613,929

(5.3%) (6.8%) (9.3%)

Two or More Races 25,148 65,309 202,922

(4.5%) (3.5%) (3.1%)

Other race 13,423 - -

(2.5%)

Source: U.S. Census 2000; Washington State OFM 2008 Population Estimates

Seattle’s population has been on a steady rise minus a dip in the 1980’s. A steady rise means a

constantly growing market. As Seattle’s population raises so does opportunities to expand to other

markets and create a bigger clientele.

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[41]

Attractive Features-

First store of its kind

Currently there is not a store in Seattle that offers the services and products that Piper’s Denim will such

as a one stop premium denim shopping experience for a wide age group.

On site tailoring

Onsite tailoring will appeal to customers who always need to get their denim altered. On site tailoring

will also appeal to the customer with a busy lifestyle who can buy their jeans and take care of the details

all in one experience.

Kids section is offered

PD will make it easy for families to find premium denim for their children in styles not offered at

department stores. Parents can buy for their children as well as themselves while shopping here.

Prime location- The Retail Core of Seattle

The Retail Core of Seattle already offers the city with booming businesses, repeat clientele, and tourist

traffic. All of which are positive features regarding location of the proposed business.

Seattle is a growing market and one of the top ten cities for entrepreneurs

Many residents in Seattle its surrounding area are college educated with respected careers. Seattle was

listed as one of the top ten cities for starting a business and is number one for the use of innovative

technology.

Events and Holidays

Events and holidays in Seattle will provide a window of opportunity for increased monthly sales and

opportunity for advertising.

Difficulties-

Parking

Unfortunately Seattle does not offer a large selection of parking without paying money. There are also no

parking lots or garages directly located near Piper’s Denim. All are within 2-3 blocks away.

Establishing a strong customer base due to tourism

An important factor at our store is establishing a loyal, repeat, client base. This may be hard to achieve

with clients who are tourists, or visitors from an outside suburb.

Undesirable weather conditions may reduce foot traffic

PD will rely on foot traffic for a majority of customers. Rainy, windy, or dark weather conditions may

divert foot traffic that would normally be encountered with accommodating weather conditions.

Piper’s Denim

[42]

“Eco-friendly” is a large aspect of Seattle culture and there is a large market that are against

numerous features of high fashion and retail

Large portions of Seattle’s population are independent individuals who resist corporations,

fashion/beauty markets, and overall consumerism. Placing a premium denim store in a city with

individuals motivated to resist such businesses may prove challenging due to non interest.

Availability of Cotton

Uncertainty in the cotton market causes fluctuating denim prices. This may prove unfavorable to

customers expecting the usual fixed price.

Existing Demand for Product/Service-

Weather creates a need for warmer clothes such as denim

Weather conditions in Seattle provide a need for clothes that can endure conditions such as denim,

especially premium denim that provides greater warmth due to quality materials and manufacturing.

Denim, especially in the men’s market is a growing trend.

Trends in the denim market prove to be growing. New styles and designs are being created, such as the

denim shirt for men which will be a hot item for the upcoming A/W 11/12 season.

New technology in the creation of denim

New technological advances are being tested in the creation of denim. New materials and finishing

processes are being discovered. Laser innovation will soon replace denim washing, this technique will aid

in saving large amounts of water being wasted from current practices. If the denim market can advertise

sustainability, then PD will have a better chance at appealing to unreachable existing markets.

Denim continues to be a classic and a staple in wardrobes of all ages

The need for denim has never dissipated. Denim has turned into a staple item.

Premium denim brands such as True Religion maintain a strong position in branding and success

as a business

Established denim brands continue to be successful in the market place, capturing a loyal customer base.

PD will offer brands that clients already know, love, and trust. PD will offer styles not found in

department stores and classic fits.

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[43]

Composite SWOT-

Piper’s Denim has compiled, condensed and co-related charting of non-redundant areas of

strategic interest and implication with our business venture. The emphasis resides in how Piper’s Denim

compares to our major competitors and illustrates the strategies to overcome obstacles as well as those

to better leverage our company growth. Our top three competitors are Nordstrom (N), True Religion

(T), and Deli Boutique (D). All three companies share similar competition characteristics. They are all

within less than a mile of PD; all serve the same target market as PD, each offer a unique shopping

experience related to their store. The chart below gives a brief company description of each.

Company Description

Nordstrom 6th & Pine Seattle, WA 98101

One of the nation’s largest upscale retailers

Sells clothes, shoes, and accessories through 110 locations and 70 outlet stores

Easy Return Policy

Reputable customer service

True Religion 6th & Pine Seattle, WA 98101

Markets upscale denim wear

Also sells other merchandise

Merchandise also offered in Nordstrom as well

Operates in about 900 high end US boutiques

Deli Boutique 1st & University Way Seattle, WA 98101

Houses independent designers and contemporary lifestyle brands

Sought after brands

Top quality clothing

Large men’s selection

On the next page is a chart explaining the strengths, weaknesses, opportunities, and threats

between PD and its competitors.

Piper’s Denim

[44]

35 www.city-data.com

Strengths Competitors

Located in the shopping center, retail core, otherwise known as Downtown Seattle (All three)

Store in an established location or mall; currently obtains exclusive image in the market (T) (N)

Offers a large selection of merchandise in a wide price range (N)

Location brings through a significant amount of foot traffic (D)

Piper’s Denim

Strength of our premium denim selections obtain a strong brand image and international presence

PD offers a more diverse selection of merchandise and more personalized shopping experience

Offers a family friendly environment with children’s merchandise, while remaining tasteful and fashionable

Location offers PD an established target market

Weaknesses Competitors

Styles are limited to certain brands (N) (T)

Large retail environment results in less customer service (N)

Merchandise geared towards a specific style or gender (T) (D)

Weak advertising strategies (D)

Piper’s Denim

Deli, our growing competitor offers a larger selection in men’s premium denim and alternative brands

PD carries only high priced denim

Statistics point out an overall decrease in women’s denim sales

Consumers may choose to spend their money at other retail establishments, or on other activities such as fine dining or tourist attractions

Opportunities Competitors

Increase online sales (N) (T)

Expand customer base (D)

Brand presence may increase foot traffic (N) (T)

Attract tourism (All three)

Piper’s Denim

“Shopping in Seattle can be a unique experience where high fashion merchandise and recreational gear coexist on shop counters”35, creates opportunity for future trends

Opportunity to create a solid employee base

Opportunity to create a new need/demand in the market

Opportunity to market PD as a tourism attraction by advertising in Seattle travel oriented material

Threats Competitors

Competition from surrounding luxury retailers (N) (T)

Threat from discounted sister store, Nordstrom Rack (N)

Threat from cheaper brands/fast fashion retailers (All three)

Brands are sold at nearby competitors (All three)

Piper’s Denim

Local boutiques promoting a premium image such as Sway and Cake, Deli, All Saints, True Religion, etc.

Threats from larger department stores with an established and trusting image such as Nordstrom or Barneys

Threats from imitation; counterfeits could take away a portion of sales

Threats from ordinary or medium brands that can ultimately expand their product lines to premium denim brands in the future

Nordstrom (N), True Religion (T), Deli (D)

Piper’s Denim

[45]

Indirect Competition-

Our indirect competition would be Moritn’s Steak House located on 6th & Pine. Moritn’s Steak

House appeals to all ages and most importantly families. PD offers merchandise for upper middle class

families. Instead of choosing to buy denim at PD our consumer may choose to spend their money on

other activities such as fine dining. Moritn’s is PD’s indirect competition because they are located across

the street from PD’s proposed location and their menu prices and bill total may equal or exceed the price

of merchandise offered in our store.

Piper’s Denim

[46]

Economic Issues-

PD has evaluated economic issues at a National, State, County, City, and Sub City level. Each

section is split up into its own category and discusses economic indicators that are of importance to the

business of Piper’s Denim.

National-

Current reading and trend

The projected cyclical peak would be the lowest in the 45-year sample period.

Our forecast of real GDP growth in the second quarter of 2011 is now 3.6%, down from 4.0% in January 2011. 36

This chart is of importance to PD because it clearly illustrates the nation’s steady economic rise out of

the current recession. Although the projected peak is at its lowest in over 40 years it is clearly better than

36 http://www.russell.com/Helping-Advisors/Markets/BusinessCycleIndex.asp

http://www.russell.com/HelpingAdvisors/Markets/BusinessCycleIndex.asp

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[47]

what the US has been experiencing. Improvements with the economy could mean a secure cash flow for

retail businesses alike.

Current reading and trend

Monthly gains in nonfarm payroll employment are expected to remain at a modest plateau level at about 215,000 jobs per month through the autumn of 2011, although isolated spikes above that level are possible.

With these job gains, the unemployment rate is expected to average 8.4% in the fourth quarter of 2011. 37

The unemployment rate still stands at 10% and the housing market is on a steady decline. Rod

Kurtz, writer for smallbusiness.aol.com suggests that with more people out of work, individuals are more

prompted to put their recreational business plan into action. He states “Perhaps more importantly,

companies tend to hunker down during a recession -- meaning that entrepreneurs who know how to

seize opportunity find themselves with cheaper real estate, an abundance of available talent and

37 http://www.russell.com/Helping-Advisors/Markets/BusinessCycleIndex.asp

http://www.russell.com/HelpingAdvisors/Markets/BusinessCycleIndex.asp

http://smallbusiness.aol.com/

http://smallbusiness.aol.com/category/real-estate/

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[48]

weakened competition.” 38 Less competition means an easy way to profitability. Having a weakened

market means people are more willing to accept new business models resulting in a quick startup growth.

The Forbes Global 2000 are public companies with the top composite scores based on their

rankings for sales, profits, assets and market value. 39 The list below focuses on the largest retail

companies. This is of importance to PD because it is important to know which successful brands are

which and what ones have a higher success rate in different areas of the US and world. Fashion is a trend

shared by many nations. This knowledge provides awareness towards the merchandise and brand

selection sold in our store. The United States owns four retail companies on the list all of which are in

the top ten. This is a positive aspect. Many retail companies own the same brands. A majority of denim

brands are made in the US and owned by the same company. It is a positive fact for PD that our

merchandise selection is already available in a satisfactory market.

The World’s 10 Top Retail Companies

1. Christian Dior, France

2. Nike, United States

3. Swatch Group, Switzerland

4. Luxottica, Italy

5. Toray Industries, Japan

6. VF, United States

7. Coach, United States

8. Polo Ralph Lauren, United States

9. Hermes International, France

10. Pou Chen, Taiwan

38 http://smallbusiness.aol.com/2010/09/05/is-now-a-good-time-to-start-a-business/ 39 http://www.forbes.com/2011/04/20/biggest-sales-global-2000-11-top-25_slide.html

Piper’s Denim

[49]

Washington-

Below lists the top ten jobs in Washington State by Sector, Retail falls into 5th place.

Construction- 7,754

Finance/Insurance/Real estate- 25,497

Manufacturing- 5,762

Retail- 11,894

Services- 128,900

Wholesale Trade & Utilities- 15,500

Government- 35,293

Education- 1,691

Small-business owners are seeing opportunities in the soft commercial real-estate market, trying

to renegotiate their office, retail and industrial leases for less money.40 As of March 4th 2011 The

Washington State Revenue and Forecast Council state that job growth, housing, and inflation is neutral.

Charts available by WSRFC state that gross domestic product growth is picking up after a large dip in

2008 through 2009, with real consumer spending still higher. Credit card debt increased by 3.5%

(seasonally adjusted annual rate) in December after 27 consecutive months of decline. 41 Consumer

confidence also showed improvement. A negative impact to businesses is the consistent rise of food

prices and spiking gas prices. According to the economic review of WSRFC, the analysis credit

conditions for small businesses are improving, but remain tight. PD will start out as a small business, as a

company we need to be aware of all financial aspects that affect the success rate of our business.

Tourism migration fell below average during the recession but is picking up. In the US, Washington

State, and Seattle rental vacancy rates are declining. This could be due to the housing market. An increase

of more tenants in Seattle creates opportunity for more clients. Seattle is known as being technologically

advanced and his home to Microsoft, one of the top employers in the area. WSRFC explains that

software publishing employment is expected to grow at about 5% per year, improving the job market for

generation Y. Washington will recover faster than the US regarding employment recovery as will

personal income. 42 In conclusion, for Washington State 2011 will prove to be a year of transition to

stronger growth and it is predicted that Washington is still likely to outperform the nation. 43 Data such

as the information obtained from WSRFC is valuable to the planning of our business. Statistics and data

40 http://smallbusinesswa.blogspot.com/2011/03/commercial-real-estate-negotiation-good.html 41 http://www.erfc.wa.gov/forecast/documents/ec20110304color.pdf 42 IBID 43 IBID

Piper’s Denim

[50]

point out and provide pleasing evidence that supports valid reasons for why PD should exist in

Washington State. PD will obtain the advantage of lower retail prices and or cheaper options for

preparation, while rising successfully as a business, with a population rising successfully out of a

recession.

Piper’s Denim

[51]

King County-

“The job ratios shown above for the King County, Pierce County, Washington and the nation not only portray a number of important trends, they also serves as a thumbnail guide to evaluating an economy's capacity to generate enough jobs fast enough to absorb the increasing number of workers attendant to a growing population. The job ratio is the number of full-time and part-time jobs by place of work, divided by population.”44 The graph above illustrates King County has a better success rate at generating enough jobs to

support population growth in its area. This is an important factor to Washington’s economy because

they are generating enough cash to support employment. By opening PD in a largely employed area

provides a financially stable environment. PD would also benefit from the circulating employee

experience and provide jobs for the growing population.

44 http://washington.reaproject.org/reap-report.php

http://washington.reaproject.org/reap-report.php

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[52]

“The graph above compares the decade average growth rates for King County noted in the previous

graph with the corresponding decade averages for Pierce County, Washington and the nation. As the

chart reveals, King County's average annual employment growth outpaced Pierce County's average

during the 1970s (3.11% vs. 0.65%), surpassed Pierce County's average during the 1980s (3.55% vs.

2.75%), topped Pierce County's average during the 1990s (2.28% vs. 1.78%), and amounted to less than

Pierce County's average over the 10 year period for this decade, 2000-2009 (0.62% vs. 1.79%).”45

Rank County of Residence County of Work Worker Flow

1 Snohomish, WA King, WA 103,334

2 Pierce, WA King, WA 80,78

3 Kitsap, WA King, WA 14,960

*Snohomish, Pierce, and Kitsap County provide the largest amount of worker flow into King County.

45 http://washington.reaproject.org/reap-report.php

http://washington.reaproject.org/reapreport.p

http://www.ofm.wa.gov/economy/co2co/

Piper’s Denim

[53]

Income (2011 est.)

Per Capita Average

Household Median Household

Regional* $31,684 $79,119 $62,250

King County $35,339 $84,862 $64,764

City of Seattle $36,285 $76,734 $55,832

Downtown Seattle $36,437 $56,446 $34,966

*King County obtains the Average household income PD is looking for.

Seattle-

Highlights from 2010

Seattle is the primary economic driver in the region, which ranked as the strongest economy in the

nation in 2010, up from #12 in 2009. 46

Seattle ranked #2 for growth potential in the next decade. 47

Seattle is the economic hub of Washington State, which recently ranked #2 in the nation for

state economic structure that personifies the New Economy. 48

Eighth-best retail investment outlook based on supply and demand indicators.

Seventh-lowest retail vacancy rate in the U.S. retail market.

Among three cities projected to be the “first markets to

stabilize, with fundamentals buoyed by low vacancy and

Above-average job additions49

46 2010 Economic Strength Ratings by Policom, a independent economic research firm 47 Kiplinger Personal Finance, July 2010 48 2010 State New Economy Index, Information Technology and Innovation Foundation 49 http://downtownseattle.org/content/download/transient/SOD2011EconomicReport.pdf

http://downtownseattle.org/content/businesses/Demographics.cfm

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[54]

In 2010, numerous companies made news when they located or announced plans to open their

U.S. headquarters or regional office in Downtown Seattle. This information supports facts affirming the

Metropolitan Seattle area as a prime location for start up business growth. This is important to PD

because we will be a start up business. A successful company will have a better chance at a growing in a

location surrounded by growing companies. The list below first describes the name and directly across

the type of business announcing new locations.

Amazon.com ______________________________ Online Retail Banyan Branch __________________Social Media Consultants Blue Nile _________________________________ Online Retail Bracewell & Giuliani LLP _______________________Law Firm Cognera___________________________________ Accounting Facebook_____________________________ Interactive Media First Tech Credit Union_________________________ Financial Hulu_________________________________ Interactive Media Institute for Systems Biology _______________ Biotechnology Isilon Systems_________________________Business Services LiveMocha ____________________________ Interactive Media NewBay Software Inc ___________________ Interactive Media PATH ___________________________________ Global Health Russell Investments ___________________________ Financial Salesforce.com ________________________Business Services TechStars ______________________________ Venture Capital Weber Shandwick _________________Public Relations Agency Zynga________________________________ Interactive Media50

50 http://downtownseattle.org/content/download/transient/SOD2011EconomicReport.pdf

Piper’s Denim

[55]

Seattle’s Top Ten Employers

1. Boeing- about 70,000 employees

2. Microsoft- about 40,000 employees

3. University of Washington- about 25,000 employees

4. Amazon- about 15,000 employees

5. Weyerhaeuser- about 10,000 employees

6. Group Health Cooperative- about 9,000 employees

7. Fred Meyer- about 8.7000 employees

8. Bank of America- about 7,300 employees

9. Quest Communications- about 7,000 employees

10. Nordstrom- about 6,000 employees 51

Nordstrom is a recognized high end retailer that specializes specifically on customer service.

They offer merchandise for the upper middle to wealthy class. The importance of Nordstrom being one

of the top employers in Seattle, Washington is the measurable amount of trained associates that are

available for recruiting to PD. Nordstrom will be located 1 block away from PD. This could ease the

process of hiring and training. The benefits of reducing training days and inexperienced associates could

save PD money and image. These associates are already knowledgeable of the brand, familiar with high

end retail, and specialized customer service.

51 http://seattle.about.com/od/largecompanies/a/topseattleemployers.htm

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Employment by Neighborhood

Census Tract Neighborhood % of Total Employees

81 & 82 Central Business District 36.1

93 SODO 17.3

72 & 73 Denny Triangle & South Lake Union

15.4

85 First Hill 8.9

80.01 & 80.02 Belltown & Waterfront 7.4

74, 83, & 84 Capitol Hill 6.4

71 Uptown 5.1

91 & 92 Pioneer Square and International District

3.4

* Central Business District is comprised of the Retail Core and West Edge neighborhoods and a portion

of the Waterfront neighborhood. 52

Retail Core locations at 6th & Pine and 4th & Pine tend to be the busiest sites, especially during

the holiday (December) wave.53 The proposed location for PD is in Downtown Seattle, the retail core.

According to the chart above the highlighted section represents Downtown, and more specifically the

Retail Core shows that the majority of Seattle employees by neighborhood prove to be in this locality.

This is a major beneficial factor for PD in two ways. One being finding and seeking employees for our

store. This location provides us with a variety of individuals. Also the second factor is the amount of

already qualified and trained professionals seeking employment who have experience working in

Downtown Seattle. Not only are they experienced working largely with the public, the chances of

individuals with credible retail experience is higher in the Retail Core of Downtown Seattle. This ensures

a trusting, trained, and personable staff for PD. Customer service that represents our anticipated image is

our number one focus and Downtown Seattle offers beneficial factors that reinforce this vision.

52 http://downtownseattle.com/content/download/NHoodProfile/DowntownSeattleProfile.pdf 53 IBID

Piper’s Denim

[57]

Downtown Seattle/Retail Core-

Downtown Seattle consists of only 5% land mass but within this core lays 50% of jobs. As of

2010 there are 4,663 street level businesses, 1,163 are a mix of recognized and independent retailers.

According to Marcus & Millichap 2010 National Retail Report, Downtown Seattle has 8th-best retail

investment outlook based on supply and demand indicators, the 7th-lowest retail vacancy rate in the U.S.

retail market, and is among three cities projected to be the "first markets to stabilize, with fundamentals

buoyed by low vacancy and above-average job additions. At the end of 2010, Seattle’s Downtown Seattle

had approximately 5.5 million square feet of retail space with a vacancy rate of 10.7%. 54 From 2009 to

2010 retail vacancy rates increased from 10.0% to 10.7% and lease rates decreased from $30.63 to

$30.59. 55 In the Central Business District, the end of 2010 saw the vacancy rate at 3.9% and average

lease rates $46.44. 56 In 2010, more than 60 retailers opened stores or announced plans to locate

Downtown including AllSaints Spitalfields, Forever 21, Harry & David, Hipcooks, Michael Kors, Mud

Bay, Omega Watch, Paper Hammer, Target, University of Washington Husky Central Store and Weldon

Barber. 57 The present outlook for The Retail Core of Seattle seems to be a promising and growing one.

Opening PD in an area with a growing audience will have more success in capturing a target already

searching for new shopping experiences. Changes in this location are creating a retail friendly

environment that was significantly smaller years ago. New and desired brands/stores locating to Seattle

brings in target customers to the location of PD, thus building a customer base. The overall position of

Seattle’s retail market presents itself as a successful environment for retail investments correlated to

recognized and independent retailers alike.

54 http://downtownseattle.org/content/businesses/Retail.cfm 55 IBID 56 IBID 57 IBID

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[58]

Political Issues-

National-

On May 18th the National Retail Federation lunched a 60 day advocacy campaign to preserve

swipe fee reform. It was estimated that this law would save customers and retailers $1 billion a month by

lowering swipe costs.

“A provision in last year’s Wall Street reform bill will reduce the fees by an estimated 70 percent, saving about $14 billion a year that retailers plan to pass along to their customers through discounts or other benefits, but the credit card industry is spending millions to delay the reform.” 58 “The banking industry has engaged in a massive multimillion-dollar campaign of misinformation and threats intended to deprive consumers of the savings they are entitled to under reform,” said NRF Senior Vice President and General Counsel Mallory Duncan. “We'll work aggressively to set the record straight and keep banks from taking this landmark reform away from the Main Street retailers who are the lifeblood of our economy.”59

Piper’s Denim would benefit from lawful advances such as the issues stated above. By saving us

money, the retailer, we can spend that extra savings investing in marketing campaigns and customer

benefits.

“Aside from concerns over gasoline prices and worries over jobs, apparel prices are having an impact too. Apparel stores have already started passing on raw material price rises for goods made of cotton and for underwear and the month-on-month figures could turn negative during the summer as more price raises filter through to the shop floor. Analysts also expect price rises to impact the autumn season with reports that department stores are ordering more cautiously on concerns over consumer resistance to higher-priced clothes and accessories.”60

This quote was taken from an article analyzing potential global issues that could affect the

economic condition of the retail industry. This could affect PD projected denim sales, and cause reliance

on major shopping holidays to meet goal. Price rises and harder attainable materials will affect price

points.

58 http://www.pymnts.com/national-retail-federation-launches-major-60-day-advocacy-campaign-to-preserve-swipe-fee-reform-20110518006516/ 59 IBID 60 http://www.wgsn.com/content/report/News/2011/May_Stories/May_06/News_Story_May_061.html

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Washington-

“Washington's jobless rate is down to 9.1 percent after the state added an estimated 5,800 jobs in April. Employment Security Commissioner Paul Trause said Wednesday that Washington is starting to see real momentum in job growth and that it's tough not to feel optimistic about the progress. The jobless rate in March was 9.2 percent. The construction industry led the way in April, adding about 2,400 new jobs. State officials say about 2,500 government jobs were lost. About 308,000 people were unemployed and looking for work in April. Washington has added an estimated 41,500 jobs over the past year. The unemployment rate in April 2010 was 9.8 percent.” 61

This is a very encouraging sign for entrepreneurs. Growth and numbers such as the ones stated

above provide constructive facts supporting the start up of PD in Seattle, WA. A better economy will

help Washington and Seattle improve, providing tremendous room for new business growth, and clients

with earnings that can be spent on leisurely activities such as shopping.

King County-

“One of the biggest municipal annexations in King County in years will take place just after midnight Tuesday, adding 31,000 people to the Eastside city of 48,000. Property taxes on a $495,000 home in the annexation area will drop from $5,788 to $4,763 next year, according to the city. When the city's utility tax, cable-franchise fee and surface-water fee are taken into account, the net household tax burden is expected to fall by $539. King County Executive Dow Constantine said in a statement that annexation "brings local services closer to local residents — from police to permits to roads." 62 63

This annexation will bring more residents to Kirkland, WA. Kirkland is one of the surrounding

zip codes that contain PD’s target market. This is positive for PD because our potential client base is

growing. Another positive factor about the conduction of the municipal annexation is the amount of

money that potential client will be saving on property taxes, and household taxes. This is income that can

be set aside as disposable and spent on other items, such as denim.

61 http://seattletimes.nwsource.com/html/localnews/2015084893_apwawashjobless.html 62 http://seattletimes.nwsource.com/html/localnews/2015183918_kirkland30m.html 63 http://seattletimes.nwsource.com/ABPub/zoom/html/2015184837.html

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“As of July 5, vehicles with four or more unpaid parking tickets in the collections process could be

immobilized and impounded even if they are parked legally at the time. The City Council's Public Safety

Committee got a briefing on the parking scofflaw program Wednesday morning. As of May 15, there

were 34,283 vehicle license plates in "scofflaw status," committee members were told. Of that number,

the Municipal Court estimates about 23,000 are eligible to be "booted," immobilized with a special

device. The cash-strapped City is implementing the scofflaw program to bring in needed revenue. Nearly

$26 million is owed to the City for outstanding parking citations, officials say.”64

“The agency is hiking fares for express buses and link light rail starting Wednesday, June 1:

-King County will become one zone.

-Trips that start and end in the same county will have a one-zone fare.

-Adult trips that cross a county (zone) line will cost $3.50.

-One-zone youth fares will be $1.25.”

Public transportation seems to be not so public anymore. The cost of one trip to Seattle is

almost $4.00 not including round trip. Parking already deters many Washington residents to post pone

Seattle trips until free parking times. Unfortunately free parking times down town are anytime after 7pm,

closing hours for PD, and Sundays, shorter business days. With the fresh rise in public transportation

prices and a constant trend of new parking laws and fees being put in place could have a negative impact

on visitors outside of the Seattle area who depend on automobile. This could lower sales make building a

clientele difficult.

64 http://www.seattlepi.com/local/article/Seattle-pay-your-tickets-or-your-car-will-get-1404738.php

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Legal Criteria-

Washington-

The first step to starting a business in Washington State is to obtain information. This can be

found through the Small business association. The SBA resource guide provided includes information

and issues related to starting a business and can be narrowed down to the specific county and chosen city

for PD. Before taking any further steps PD must chose the legal structure of our business which is a sole

proprietorship. After deciding on a legal name PD can begin issues regarding financing. Loans can be

obtained from Community Capital Development or the SBA. “CCD provides small business loans and

technical assistance for small businesses through the Business Assistance Center”. 65 The SBA also offers

small loans.

“The Washington Secretary of State is the chief corporations officer in Washington state. Prior to obtaining any license, an entrepreneur should register with the corporate division of the Secretary of State’s office. Corporate organizing documents must be approved before the organization’s legal existence may begin”66

By completing this step PD can register as a business.

“Businesses incorporating in Washington State are required to obtain a state business license, issued by the Washington State Department of Licensing (DOL). Obtaining a Washington state business license requires filing a Master Business Application with DOL. The Master Business Application can be used to obtain a Unified Business Identifier (UBI) number and to register trade name.”67

A trade name will provide records of all business owners. After these steps are completed PD

must register locally through county and city levels. Steps and regulations vary between locations.

Tax Regulations: “Washington State does not impose a corporate, unitary, or personal income tax. However, most businesses will be subject to a business and occupations (B & O) tax, a retail sales/use tax, and state property taxes. The state also imposes taxes on such activities as public utilities, carbonated beverages, fish, timber, tobacco products, litter, refuse collections, petroleum products, and hazardous materials. However, some industries may be able to benefit from one of several state tax incentives” 68

65 http://www.seattle.gov/economicdevelopment/pdf_files/10-steps-biz-startup.pdf 66 IBID 67 IBID 68 IBID

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King County-

“King County does not require a general business license. Any business operating within the city limits of any of the major cities within King County is required to have a city business license. However, if a business is located in unincorporated King County – an area outside of city limits – and engages in a regulated activity, a King County regulatory license must be obtained for each regulated activity. The King County Department of Development and Environmental Services (DDES) issues most licenses to businesses engaged in regulated activities.”69 PD will be operating within city limits therefore legal issues in King County regarding business

start up must be done at state and city levels.

Seattle-

“Business License. Each business engaging in business activities in Seattle must obtain and

annually renew a city business license unless the business activity is specifically exempted from

licensing and taxes. Anyone engaging in business activities within Seattle is required to obtain a

Seattle business license whether or not a place of business is maintained within city limits. A

branch business license is required for each additional venue doing business. The Revenue and

Consumer Affairs (RCA) Division of the Department of Executive Administration is responsible

for business licensing.” 70

“Regulatory License. The city of Seattle further regulates specific business activities and requires

entrepreneurs to obtain a City of Seattle regulatory license for each regulated activity. Unless the

business activity is specifically exempted, the entrepreneur must obtain a city business license in

addition to the City of Seattle regulatory license(s). RCA is responsible for issuing regulatory

licenses.”71

In order to open a business in Seattle PD must obtain a business license and a regulatory license. PD will

renew our business license annually and register for a regulatory license for each regulated activity.

Tax Regulations: “All businesses in King County are required to file a personal property tax affidavit. The King County Assessor’s Office is responsible for assessing personal property used by a business. Personal property typically includes items used by a company to conduct business, and generally does not include property attached to a building or the land. Once a Master Business License is obtained from the state, an account is established for your business and personal property tax affidavits are mailed at the end of each year requesting information about business asset.”72

69 IBID 70 IBID 71 IBID 72 IBID

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“Most commercial related permits are issued by the Department of Planning and Development (DPD), which is responsible for developing, administering, and enforcing standards for land use, design, construction, and housing within city limits. However, depending on the industry and intended business activities, entrepreneurs may need to obtain permits from other city agencies, such as the Department of Transportation (SDOT), Seattle Public Utilities (SPU), or the Seattle Fire Department (SFD). DPD provides entrepreneurs with comprehensive information on how to obtain permits from various City departments and it is essential that entrepreneurs consult with DPD early in the process.” 73

Types of Permits

Use- Seattle land use regulates business activities based on the use of real property. Seattle land

use is in compliance with city zoning.

Construction- The Seattle Building Code regulates business activities based on the intended use

of a physical structure. This ensures projects comply with structural and fire/life safety

regulations.

Over the Counter (OTC) Permits- “DPD issues thousands of over-the-counter permits annually,

including electrical permits, fire alarms, boiler permits, pressure vessel permits, refrigeration

permits, single family/duplex mechanical permits, and side sewer/drainage/sewer capping.”74

Plumbing Permits- Required installing, relocating, or changing a plumbing system.

Street Use Permits- Over 60 different types of permits are available from the SDOT for work

and use in the public rights of way.

Tax Regulations: “Every person or entity doing business within the city limits is subject to the business

license tax unless specifically exempted by the Seattle Municipal Code. Seattle maintains a general gross

receipts business license tax and a gross receipts utility tax.”75

73 IBID 74 IBID 75 IBID

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Seattle Good Business Network is a non-profit venture that promotes, connects, and empowers Seattle-

area businesses that care about the future of our place. Our members are locally owned, independently

operated businesses of all kinds... breweries and banks, restaurants and retailers, producers and

professional services.76 At PD we will be selling already established, recognizable name brands. It is also

important to us as a company that we grow, adapt to new trends, and appeal to customers especially

locals. In order to keep up with trends such as alternative and underground brands, which play a large

part in the Pacific Northwest Scene, we will want to expand our contacts and sources to better position

ourselves in the market. PD wants to keep its trendy image, established customer base, and pursue

attraction to other markets. We want to keep our quality promise and offer an environment that

demonstrates respect for our customer and neighbors. Requesting a membership to places such as

Seattle Good Business Network helps in creating these opportunities.

“OED supports current and forming Business Improvement Areas (BIAs). A BIA provides an annual budget to fund services and improvements in neighborhood business districts by assessing property and/or business owners who benefit from the improvements. BIA funds can be used for services such as parking, joint marketing, cleanup and maintenance, security, special events, beautification, and professional management. The City contracts with each BIA, and each BIA is governed by a ratepayer's advisory board. The City collects the assessments and reimburses BIA expenses. Current neighborhoods with BIAs are Broadway, Chinatown/International District, Columbia City, Downtown, Pioneer Square, University District, and West Seattle77”

Seattle is booming with associations that help businesses in this sub city of Seattle succeed,

survive, and benefit the community. Notable groups include the Downtown Seattle Association (DSA).

DSA has created a variety of programs. Their programs are made possible through partnerships public

and private organizations in the community. The DSA created the Metropolitan Improvement District

(MID). “(MID) to enhance the urban environment of Downtown Seattle. The DSA has developed and

managed the MID’s maintenance, safety, marketing and business development programs.”78 Commute

to Seattle is a program that shows DSA concern about transportation. “DSA partnered with the City of

Seattle and King County Metro to form the Commute Seattle. This new organization develops resources

for Downtown employers and commuters to encourage transit use and reduce the volume of single

mode drivers.”79 Commute to Seattle can be a very important topic to support and become involved in

as a business because potential PD employers may rely on transportation to get to work. The most

76 http://www.seattlenetwork.org/ 77 http://www.seattle.gov/economicdevelopment/support_tools.htm 78 http://downtownseattle.org/content/programs/Overview.cfm 79 IBID

http://www.broadwaybia.org/

http://cidbia.org/

http://www.columbiacityseattle.com/

http://downtownseattle.com/

http://pioneersquare.org/

http://pioneersquare.org/

http://www.udistrictchamber.org/

http://www.wsjunction.com/

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relevant program to PD that DSA has created is their marketing and communication program.

“This program helps to improve the vitality and attractiveness of Downtown to visitors, businesses and

residents. DSA implements a comprehensive marketing plan that includes multi-media advertising,

public relations and a series of events throughout the year.”80 Downtown Seattle places major focus on

how their businesses are represented and perceived. PD will become involved with the support of DSA

marketing plan, multi media advertising, and public relations to enhance our overall business, marketing,

and sales techniques. Working with associations that better the city only help better out company, and

demonstrates are respect and appreciation for Downtown Seattle.

80 IBID

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Social Issues-

Educational Level-

“Seattle public schools spend $5,072 per student. The average school expenditure in the U.S. is $5,678.

There are about 18.9 students per teacher in Seattle.”81 The two graphs below demonstrate the Seattle

area as a highly educated location. This is important to the business of PD because higher paying jobs

are obtained from secondary education. Higher paying jobs offer higher salaries which in turn offer the

opportunity of a disposable income that can be spent on leisurely activities, and quality merchandise such

as denim.

BA or Higher High School

English Not

Spoken at Home

Seattle 56.0 92.5 20.8

San Francisco 52.0 85.9 44.2

Washington, DC 48.5 87.1 12.6

Boston 44.7 85.5 33.6

Denver 40.3 84.3 25.6

New York 34.0 79.2 47.5

Chicago 33.1 80.3 34.3

Los Angeles 30.3 73.6 60.5

Miami 22.3 68.6 77.1

Detroit 12.4 77.0 11.3

Source: U.S. Census Bureau, 2009 American Community Survey

Major Universities and Colleges

# of Students Internet Home Page

University of Washington (public) 46,653 www.washington.edu

Seattle University (Jesuit) 6,616 www.seattleu.edu

Seattle Pacific University

(Wesleyan,

Evangelical Christian)

4,000 www.spu.edu

Art Institute of Seattle (design,

media arts, fashion, culinary)

2,300 www.ais.edu

DigiPen Institute of Technology

(production animation; game design,

interactive simulation, computer

engineering/science)

883 www.digipen.edu

Cornish College of the Arts 800 www.cornish.edu

Seattle Community Colleges, four

campuses

50,000 www.seattlecolleges.com

Enrollment figures for Fall 2008-2009.

81 Bestplaces.net

http://www.seattle.gov/oir/datasheet/education.htm

http://www.bestplaces.net/schools/Washington/Seattle

http://www.bestplaces.net/schools/Washington/Seattle

http://www.washington.edu/

http://www.seattleu.edu/

http://www.spu.edu/

http://www.ais.edu/

http://www.digipen.edu/

http://www.cornish.edu/

http://www.seattlecolleges.com/

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Family Size and Structure-

There are 60,000 individuals that live in the Downtown area, 38% of these residents work

downtown. That leaves a large selection of potential employees for PD. Some common facts regarding

population in Downtown Seattle are as follows:

Downtown Seattle’s population has grown 76 percent since 1990, compared to 19 percent

citywide for the same period, and 26 percent since 2000 – accounting for more than one quarter

of the city’s population growth 2000-2010.

Two-thirds are between the ages of 25 and 54 (compared to half city-wide).

The number of families living Downtown has increased more than 30 percent in the past 10

years, and that number is expected to grow 7.6 percent in the next five years. Families currently

comprise approximately 17 percent of Downtown households.

Of those age 25+, 45 percent have a bachelor’s degree or higher (compared to 36 percent for the region).

The Downtown population is more racially diverse than that of the city, county and the nation as

a whole, another factor that makes Downtown living desirable for both residents and the

businesses who serve them.82

Among the fastest-growing groups:

Those with advanced academic degrees – master's degrees and doctorates.

People age 55 and older.

Children between the ages of 10 and 14.

Hispanics.83

The information above shows population growth throughout Seattle. Because of the rising

population growth PD can expect our target market to have growth. The diverse population

creates a diverse target market creating new marketing opportunities. It is beneficial that among

the fastest growing groups are children between the ages of 10 and 14 because PD can acquire this

group as new clientele that can expand our loyal customer base and grow as the business grows.

82 http://downtownseattle.org/content/businesses/Demographics.cfm 83 IBID

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Gender Ratio (2011 est.)

Male Female

Regional* 50% 50%

King County 50% 50%

City of Seattle 50% 50%

Downtown Seattle 59% 41%

Downtown Seattle has more male residents. Denim is a large item for the male gender group.

Therefore PD will offer staple merchandise that is attractive to local residents.



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Birth Rates-

Residence Occurrence

County and City Total Rate2 Male Female Total

State Total 89,242 13.4 45,692 43,549 89,200

Adams 456 25.3 234 222 650

Asotin 233 10.8 116 117 1

Benton 2,485 14.7 1,272 1,213 4,244

Kennewick 1,293 19.2 654 639 1,487

Richland 583 12.3 291 292 2,398

Chelan 1,046 14.4 530 516 1,568

Wenatchee 601 19.4 298 303 1,458

Clallam 655 9.4 370 285 608

Port Angeles 239 12.4 107 132 483

Clark 5,578 12.9 2,893 2,685 5,515

Battle Ground 332 19.4 179 153 6

Camas 265 15.6 130 135 0

Vancouver 3,593 21.8 1,858 1,735 5,472

Columbia 32 7.8 17 15 0

Cowlitz 1,299 13.0 642 657 1,183

Longview 576 16.0 274 302 1,178

Douglas 537 14.3 300 237 1

Ferry 60 7.7 27 33 2

Franklin 1,687 23.2 893 794 381

Pasco 1,433 26.3 758 675 379

Garfield 18 8.0 7 11 0

Grant 1,630 18.9 819 811 1,239

Moses Lake 500 26.4 252 248 1,161

Grays Harbor 839 11.8 425 414 623

Aberdeen 274 16.7 146 128 613

Island 901 11.2 459 442 606

Oak Harbor 531 22.7 265 266 390

Jefferson 194 6.7 94 100 153

King 25,057 13.1 12,792 12,264 29,668

Auburn 1,149 18.9 577 572 973

Bellevue 1,480 12.3 746 733 4,307

Bothell part 327 18.9 161 166 3

Burien 468 14.7 234 234 969

Covington 248 14.1 122 126 0

Des Moines 359 12.3 186 173 0

Federal Way 1,370 15.5 693 677 1,384

Issaquah 656 24.4 323 333 4

Kenmore 245 12.0 129 116 3

Kent 1,850 20.9 984 866 2

Kirkland 903 18.4 464 439 4,730

Maple Valley 348 16.7 172 176 3

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Mercer Island 128 5.6 70 58 1

Redmond 1,014 19.5 548 466 9

Renton 1,809 21.6 914 895 3,988

Sammamish 452 11.1 224 228 4

SeaTac 422 16.4 218 204 1

Seattle 8,041 13.4 4,057 3,984 12,946

King County and more specifically Seattle have the largest populations which is a benefit to our

store because it is located around potential clients. This is important because PD will have a larger

population of potential clients to market to and bring into the store. “As of 2010, Seattle's population is

602,560 people. Since 2000, it has had a population growth of 6.87 percent.”84

84 Bestplaces.net

Measures of Maternal-Child Health - Total Population

Number Rate per 1,000 Rate per 100,000 United States

Births3 79,028 13 � 4,021,726 / 13.9

Teen Births 7,5174 333 � 445,944 / 43

Teen Birth Rate of Change12 -35 � � -26.2

Preterm Births (% of live births)3 9.6 � � 12.1

Low Birth Weight3 4,604 � � 314,077

Low Birth Weight (% of live births)3 5.9 � � 7.8

Infant Deaths2 459 5.8 � 27,568 / 6.8

Child Death Rate5 � � 18 22

Teen Death Rate5 � � 43 50

% Mothers 1st Trimester Care3 83.4 � � 83.7

% Children Immunized6 73 � � 78

http://www.ehd.org/health_state_data.php?stateno=48

http://www.ehd.org/health_state_data.php?stateno=48

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Housing-

Occupied Housing Units (2011 est.)

Owners Renters Total

Regional* 925,594 546,898 1,472,492

King County 484,674 316,198 800,872

City of Seattle 137,279 149,215 286,494

Downtown Seattle 5,862 30,841 36,703



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“In 2005-2009, Seattle city had a total of 297,000 housing units, 7 percent of which were vacant. Of the total housing units, 50 percent was in single-unit structures, 49 percent was in multi-unit structures, and less than 0.5 percent was mobile homes. Eighteen percent of the housing units were built since 1990. The median monthly housing costs for mortgaged owners was $2,200, nonmortgage owners $618, and renters $923. Forty-two percent of owners with mortgages, 18 percent of owners without mortgages, and 46 percent of renters in Seattle city spent 30 percent or more of household income on housing.” 85

“The median home cost in Seattle is $361,940. Home appreciation the last year has been -8.83 percent. Compared to the rest of the country, Seattle's cost of living is 42.60% Higher than the U.S. average.” 86

According to the information above more residents rent in Seattle and the cost of living is

higher. Therefore PD can expect local clients to have a fast paced and higher expectation of living. PD

can appeal to those clients by offering premium merchandise in an upscale environment.

85 86 Bestplaces.net

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Poverty-

Below lists the percentages of racial and ethnic differences evident in poverty circa Seattle 2000.

White- 8.5%

Black or African American 23.0%

Asian-16.2%

Native Hawaiian & Other Pacific Islander- 25.3%

American Indian & Alaska Native- 29.1%

Hispanic- 21.6%

Multi Race-18.9%

Some Other Race- 20.7%87

The data below compares Washington State and US poverty statsics via 2009.

“For people reporting one race alone, 72 percent was White; 8 percent was Black or African American; 1 percent was American Indian and Alaska Native; 13 percent was Asian; less than 0.5 percent was Native Hawaiian and Other Pacific Islander and 2 percent was some other race. Four percent reported two or more races. Six percent of the people in Seattle city were Hispanic. Sixty-nine percent of the people in Seattle city was White non-Hispanic. People of Hispanic origin may be of any race.”88

Seattle is hub to a homeless population. The city provides access to low income housing options

and food services. This could be a negative aspect to opening a business in Seattle because it could dilute

PD’s target market which is upper middle class markets.

87 http://www.seattle.gov/dpd/cms/groups/pan/@pan/documents/web_informational/dpds_006763.pdf 88 http://factfinder.census.gov/servlet/NPTable?_bm=y&-geo_id=16000US5363000&-qr_name=ACS_2009_5YR_G00_NP01&-ds_name=&-redoLog=false

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Crime Rates-

Below is compiled data and charts regarding crime rates in Seattle. The charts compare statistics

between Seattle, Tacoma, and National averages.

http://seattle.areaconnect.com/crime/compare.htm?c1=Seattle&s1=WA&c2=Tacoma&s2=W

A

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Latest 2006 Crimes per 100,000 People:

Seattle, WA Tacoma, WA National

Murder: 5.1 10.5 7

Forcible Rape: 22.1 71.26 32.2

Robbery: 285.6 341.3 205.8

Aggravated Assault: 398.4 618.8 336.5

Burglary: 1285.6 1644.1 813.2

Larceny Theft: 4090.6 4849.3 2601.7

Vehicle Theft: 1395.6 1807.2 501.5

According to the data above crime resulting in the theft of valuable property is higher in Seattle

than the national average. This means that it is important for PD to make customers feel safe and secure

about their purchase. It is also important for PD to ensure a safe work environment to ensure our

employees, and valuable property is safe.

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Cultural Issues-

Ethnicity and Ethnic Mix-

Population by Race in 2010

Race/Ethnic Group Seattle

King

County

Washington

State

TOTAL population 563,374 1,884,200 6,587,600

White 394,889 1,428,353 5,566,607

(70.1%) (75.8%) (84.5%)

Black or African American 47,541 114,619 237,917

(8.4%) (6.1%) (3.6%)

American Indian & Alaska

Native

5,659 17,987 109,792

(1.0%) (1.0%) (1.7%)

Asian & Pacific Islander 76,714 257,932 470,361

(13.6%) (13.7%) (7.1%)

Hawaiian/Pac. Islander 2,804 - -

Chinese 19,415 - -

Filipino 15,867 - -

Japanese 8,979 - -

Korean 4,863 - -

Vietnamese 11,943 - -

Other Asian 12,843 - -

Pop Hispanic/Latino ethnicity (any

race)

29,719 127,933 613,929

(5.3%) (6.8%) (9.3%)

Two or More Races 25,148 65,309 202,922

(4.5%) (3.5%) (3.1%)

Other race 13,423 - -

(2.5%)

Source: U.S. Census 2000; Washington State OFM 2008 Population Estimates

http://www.seattle.gov/oir/datasheet/demographics.htm

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Overall, Seattle is separated by neighborhoods with distinct cultural differences. These

differences are not just subject to race but by lifestyle, history, industries, colleges, and geographical

differences. Below is a list of Seattle’s neighborhoods and their cultural and ethnical influences. Towns

with art, retail, and colleges dominate the market heavily. PD is targeted towards these personalities.

PD’s goal is to target people who express themselves through art and culture. This broadens our target

all across Seattle.

Neighborhoods Cultural Appeals

Ballard Historic appeal

Bellevue & Eastside Dining, retail, parks

Capitol Hill Hip, urban, unique retail

Columbia City Historic Appeal

Downtown Seattle Key attractions, dining, retail, historical appeal

Freemont Bohemian offbeat lifestyle

Georgetown and SODO Industrial bohemian chic, music and sport venues, industrial district

China Town/International District Ethnic and cultural diversity

Lake Union Area Stylish, unique businesses and homes

Madison Park Residential enclave

Pioneer Square Historical, waterfront appeal

Queen Anne Museums, historical, and elite appeal

Southside Seattle Diverse neighborhoods

Southeast Seattle Museums, retail, and outdoor appeal

University District (U District) Dining, retail, youthful, relaxed appeal

West Seattle Founding point heritage, recreational activities, ethnic farmers market

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Nightlife-

Downtown Seattle has 600 restaurants to pick from Belltown to Pioneer Square. Seattle prides

itself on its music scene, which is heavily impressive compared to other US cities. Every weekend local

shows and larger shows are available to attend in all genres of music. Tickets can range from $5 to $ 35.

Many bars double as music venues. Shows are a popular activity that applies to both males and females

in ages ranging from 14-40; therefore PD fashion will be an important aspect concerning apparel worn

to these shows. We have the opportunity to market ourselves as a destination spot for denim choices

chosen for nightlife apparel, especially in young males.

“Seattle has no shortage of local bars that are sure to make any visitor feel like a real Seattleite. Blues clubs, British bars, Irish pubs, lounges, dive bars and college bars are just a few of the varieties of drinkeries that Seattle has to offer. Seattle also has a number of different locations in the city to imbibe. From Belltown’s posh lounges to the University District’s college bars to Capitol Hill’s gay friendly atmosphere, Seattle has something for everyone. The Pike Pub & Brewery is a great place to start getting to know Seattle nightlife. Pike Place Market is a Seattle landmark that attracts throngs of tourists, but don’t let this discourage you—there’s good reason for this. For a smaller, less touristy bar, Honeyhole Sandwiches is a great Seattle pick. They serve up unnaturally strong drinks alongside delicious sandwiches. Seattle bars are simply the best starting point for those of age to begin getting to know the city and the people who love to call it home.” 89 Because the Seattle nightlife, food, and music scene, are closely related PD can expect to appeal

to an infused population and generalized target market.

89 http://www.seattle.com/nightlife/

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Sports-

Below is a list of professional sports teams and stadium names that are local to the Seattle area.

Locals are supportive of Seattle’s sports teams. Sporting events are something a PD client might attend.

By understanding this PD can explore customer benefits, advertising, and marketing strategies involving

an interesting hobby that appeals to our clients. Because of Seattle’s high population density PD can

expect to attract a number of sports fans as clients. PD can appeal to this market with promotions

during sports events.

Seattle Mariners (Safeco Field)

Seattle Storm (Key Arena)

Seattle Thunderbirds (Key Arena)

Seahawks (Qwest Field)

Seattle Sounders (Quest Field)

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Civic Center, Parks and Events-

The first Thursday of every month brings in the most traffic to Seattle. This is due to the art

walk that Pioneer Square holds, where art surrounds streets/local businesses, and all museums in Seattle

are free. Seattle holds other free festivals such as The North West Folklife Festival, The Bite of Seattle,

or Hempfest. These are just examples of many attractions that bring copious amounts of foot traffic to

Seattle that had the potential to strengthen our sales and customer base. Certain festivals will also go

along with PD image; this will be an attractive aspect to the innovative, shopping Seattleite.

Washington State has a strong visual appeal, and landscape that creates many attractions

involving nature. Parks are a very important attraction to Seattle. Most parks in Seattle are free and

display a lot of art work. Seattle Center is home of the Space Needle, fountain, Pacific Northwest Ballet,

Experience Music Project etc. Seattle Center is a common place to visit when touring the city. Its

placement is outside of the retail core, but amenities and event calendar located here should be noted in

case they interfere with customer traffic and overall sales.

PD can expect people who are from out of town to have visited or who are expected to visit one

of these attractions. PD can appeal to this crowd by advertising tourist attractions in our store through

images and promotions to give our visiting customers a more immersive experience in Seattle.

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Museums-

Below is a chart listing the categories and names of museums in the Seattle area. Highlighted are

the museums that are most likely to attract the same target audience as Piper’s Denim. Understanding

information such as this will help in understanding our indirect competition and creating the opportunity

for new advertising and marketing ventures in these locations. There will be no threat from museums

and parks with free admission.

Art Galleries

Aviation and Transportation

History and Heritage

Maritime and Military

Science and Nature

Pop Culture

Kid Friendly

Seattle Art Museum

Museum of Flight

Suquamish Museum

Klondike Gold Rush National Historic Park

The Burke Museum

Experience Music Project

The Seattle Children’s Museum

Henry Art Gallery,

Future of Flight and Boeing Tour

Wing Luke Asian Museum of the Asian Pacific American Experience

The Center for Wooden Boats.

Washington Park Arboretum

Science Fiction Museum & Hall of Fame

The Burke Museum

Frye Art Museum

Flying Heritage Museum.

Nordic Heritage Museum

Pacific Science Center,

Bellevue Arts Museum

Northwest Railway Museum

Seattle Metropolitan Police Museum

Seattle Asian Art Museum

http://www.seattleartmuseum.org/


http://www.museumofflight.org/

http://www.museumofflight.org/

http://www.suquamish.org/Museum.aspx

http://www.suquamish.org/Museum.aspx

http://www.nps.gov/klse/





http://www.washington.edu/burkemuseum/


http://www.empsfm.org/



http://thechildrensmuseum.org/



http://www.henryart.org/

http://www.henryart.org/

http://www.futureofflight.org/



http://www.wingluke.org/







http://www.cwb.org/

http://www.cwb.org/

http://www.cwb.org/

http://www.cwb.org/

http://depts.washington.edu/uwbg/gardens/wpa.shtml










http://fryemuseum.org/

http://fryemuseum.org/

http://www.flyingheritage.com/TemplateHome.aspx?contentId=1

http://www.flyingheritage.com/TemplateHome.aspx?contentId=1

http://www.nordicmuseum.org/



http://www.pacsci.org/



http://www.bellevuearts.org/



http://www.trainmuseum.org/



http://www.seattle.gov/tour/policemuseum.htm







Piper’s Denim

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Religious Issues-

35.07% of King County’s population is linked to a religious congregation. The US average is

48.34%. Washington is below the countries average. Seattle has several religions that are practiced here,

with Catholic being the largest. Religious issues that may impact our business are recognized holidays,

not specific to just one religion, but are practiced by large amounts of the populations throughout the

nation and state. Such as Christmas, Hanukkah, Easter etc.

Religion Seattle, WA United States

Percent Religious 35.07% 48.34%

Catholic 15.35% 21.76%

Protestant 0.00% 0.00%

LDS 2.58% 1.66%

Baptist 1.98% 8.38%

Episcopalian 0.67% 0.53%

Pentecostal 2.79% 1.78%

Lutheran 2.28% 2.49%

Methodist 0.91% 2.98%

Presbyterian 1.29% 1.07%

Other Christian 4.93% 5.20%

Jewish 1.60% 1.81%

Eastern 0.11% 0.05%

Islam 0.56% 0.64%

Because most of the population belong to Christianity PD should appeal to more Christian

holidays such as Christmas and Easter. Even though PD is aware of the religious demographics we do

not plan to put our focus into religious denominations.

http://www.bestplaces.net/city/washington/seattle#

http://www.bestplaces.net/city/washington/seattle

Piper’s Denim

[83]

Technological Advances-

“The clean technology industry in Seattle/Washington State accounted for 61,775 jobs in 2009 in the sectors of energy efficiency, renewable energy, reducing pollution and pollution cleanup. The sectors of wind, solar, biomass, wave/tidal and geothermal energy employ 17,000 people in an estimated 2,008 companies that received $635 million in venture capital investments in the 2006 to 2008 period. Washington State has the largest coordinated hydro-electric system in the world, providing 73% of the state’s electrical power.” 90

According to the Seattle Times, Seattle is a very innovative city, utilizing some of the world’s

newest technology. Seattle obtains a large population with higher education, top literary skills, and

leading companies like Microsoft. The Seattle Times stated that downtown is a prime location for

entrepreneurs due to these factors. Because of Seattle’s trend for new technology and energy advances,

PD plans to use innovative textiles and market clothing production that utilizes clean energy and

technological advances.

90 IBID

Piper’s Denim

[84]

Environmental Issues

LEED Compliance-

PD will achieve LEED certification to practice

sustainable business and building procedures. “LEED provides

building owners and operators with a framework for identifying

and implementing practical and measurable green building

design, construction, operations and maintenance solutions.”91

“The benefits of using LEED as approach to sustainability will

result in measurements of PD’s;

Water efficiency

Energy and atmosphere

Materials and resources

Indoor environmental quality

Innovation in design

Awareness & education regarding green practices

“Participation in LEED gives building owners and operators the tools they need to have an immediate and measurable impact on their buildings' performance. There are both environmental and financial benefits to earning LEED certification.”92

To achieve LEED certification PD must strategically plan out green functions within the interior

of our store. “LEED points are awarded on a 100-point scale, and credits are weighted to reflect

their potential environmental impacts”. 93Going green is a trending lifestyle in the Northwest.

Residents are conscious of environmental issues such as recycling and using organic items. As a business

in an environmentally conscious neighborhood PD will to keep this trend going in respect to our city

and clients. PD will utilize all resources that we can to better serve the planet.

91 http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1988 92 IBID 93 IBID

Piper’s Denim

[85]

Promotional Plan-

Image Statement-

Indigo Denim

The first word that comes to mind when walking into Piper’s denim is indigo. The walls will be

painted an indigo throughout. The floors will be a dark hardwood, very rustic looking. Fixtures will

correspond with this image. The shelving units will be white and the surfaces throughout will play with

different types of wood. All upholstery and linen will be made out of leather. T-stands will be the only

metal fixture in the store. This image will add to the uniqueness and quality expected from brands sold at

Piper’s Denim. Merchandise will be assorted by gender, then by brands, then by sizes. The main entrance

is on the first floor of the building and will bring you into both men and women’s. There will be feature

areas in both the men and women’s section displaying trending items. Along the walls will be shelves and

face outs with classic denim styles and fits. Tops and accessories will be incorporated into the chosen

floor set for a specific time period.

The second floor holds Children’s merchandise, all clearance, and a fitting room area. It is

smaller than the first floor and overlooks the store resembling a loft style. I have chosen to place kids

and clearance up stairs because our children’s section is smaller and contains fewer brands. Our clearance

section is also small because the majority of our items do not get marked down. Merchandise that would

get marked down will consist of seasonal tops, sweaters, shorts, a specific denim wash trending for a

season etc. The clearance section is by the fitting rooms so clients will notice it before trying on their full

price items, and add on more to their sale. By placing the fitting rooms in top of the store customers will

be inclined to spend more time browsing as they make their way to the fitting area.

The merchandise will be presented in an appealing way with easy navigation. Part of our sales

associate’s job requires personalizing the shopping experience and showing customers items they may

have missed. Our team will be trained to know where all merchandise is. All merchandise will be

presented in an attractive and organized way. The most productive areas in the store will take place on

the first floor; right when you walk in through the entrance both men and women’s feature areas

trending new merchandise can be sighted.

Piper’s denim is located on 6th Avenue in down town Seattle. This is the retail core of the city. It

is surrounded by all types of businesses consisting of food, retail, and specialty shops. In store signage

depends on promotions, seasons, and brand advertisements. Clearance always stays up stairs. Men,

women, and our kids sections will remain in their designated areas along with brand sections. Temporary

signage will be used on feature areas and windows for promotional events. Signage attracting impulse

purchases will come from brand appeal.

Piper’s Denim

[86]

Inspiration-

Piper’s Denim

[87]

Marketing Mix-

Product-

PD will be start out carrying 5 premium denim brands and expand after the first 12 months in

business. Below is a brief description of each brand and merchandise selection carried in our store.

1. 7 For All Mankind: 7 for all Mankind can be considered leaders in the

Premium Denim industry. In a sense they were the start of the denim

crazy. Twelve years since their launch in 2000 and they are still going

strong. They are an established and trusted denim brand.

*Darker dyes and classic fits such as boot-cut are the most likely to stay in style.94

* Seven for All Mankind is taking advantage of the multi-channel strategy by utilizing distribution to

boutiques and department stores along with a new retail chain of their own.95

*Companies that have a strong consumer base, like Seven for all Mankind, can extend

Their product lines to create a lifestyle brand. 96

We will be carrying men and women’s premium denim. This consists of classic styles and fits in

petite and long lengths, and trending styles. We will also be carrying a smaller selection of blouses,

sweater, jackets, and accessories for women, and a smaller selection of shirts, sweaters, jackets, and

accessories for men.

2. True Religion: True Religion’s commitment to perfect fit, timeless style

and that hippie bohemian chic flair have solidified True Religion’s brand

position as a leader in premium denim. True religion jeans are guaranteed

impeccable. Although this seems hard to believe, it is the company still

standard jeans true religion to make a perfect pair of jeans. They have done something right, because

they are generally accepted at stores across the country, being suitable for the perfectionist. 97

We will be carrying classic fits and styles from True Religion. We will also be carrying trending

denim and tops for both men and women. True Religion will also be the highlighted brand for kid’s

premium denim.

94 What to Buy Before Cotton Prices Rise - Spending Deals - SmartMoney.com http://www.smartmoney.com/spending/deals/what-

to-buy-before-cotton-prices-rise/#ixzz1GWmZ6nqi 95 http://www.nctextileconnect.com/documents/Premium%20Denim%20Edited.pdf 96 IBID 97 http://hubpages.com/hub/Fashion-True-Religion-Jeans-Outlet-2011

http://www.smartmoney.com/spending/deals/what-to-buy-before-cotton-prices-rise/#ixzz1GWmZ6nqi

http://www.smartmoney.com/spending/deals/what-to-buy-before-cotton-prices-rise/#ixzz1GWmZ6nqi

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3. Hudson: The source of Hudson Jeans quality comes in the

way of pride and consistency. Hudson Jeans are produced and

manufactured in countries like Japan and Italy, countries which have always been known for the quality

and pride they infuse in their products. The detailing adds to this quality. Through double-seam stitching

and the addition of designer rivet buttons, Hudson Jeans transform even the most mundane cuts into

high-quality jeans that appeal to a person’s sense of style and aesthetics. The future challenge of Hudson

Jeans is to continue to appeal to its main demographic (the teen) while reaching out to adults in search of

a subtler, more down-to-earth style. With such a heterogeneous mixture of potential clients, the powers

behind Hudson Jeans have their work cut out for them as they try to address each customer’s wishes

with an open mind. 98

We will be offering classic styles and fits for both men and women along with trending style.

4. Naked and Famous: Naked & Famous uses rare and raw

Japanese denim to create premium jeans, using the highest quality

fabrics and manufacturing techniques. 99 Top brand in denim

brand highlights at Capsule Tradeshow in Las Vegas. The concept of N&F is to strip down the product

and company to its best core essentials, so they can offer the consumer these unique fabrics (i.e.

cashmere denim, silk denim, a slew of vintage produced selvedge denim, a super-heavy 21oz selvedge

denim, etc.) for ridiculously low prices. N&F jeans start at $125 at Barneys. 100 Every pair of Naked &

Famous Denim jeans are proudly and ethically made in Canada. They benefit from high quality

machinery, well-trained staff and quick reorder schedules.101

We will be offering men and women’s denim

98 http://e-articles.info/e/a/title/HUDSON-JEANS/ 99 http://www.wgsn.com/content/report/Trade_Shows/Full_Report/2011/February/a_w_11_12_capsule_las_vegas.html 100 http://definitivetouch.com/features/lifestyles-naked-famous-denim/ 101 http://www.nakedandfamousdenim.com/about-us.html

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5. Joe’s Jeans: Joe’s Jeans is as attractive an investment as it is a fashion

statement. Attention to design detail and a need for customer

satisfaction has remained important through the success of the

business. Their sales grew 15.8% to $80.1 million and their operating income grew 48% to $8.1million

for 2009. Their fourth-quarter sales increased 42% and their 4th quarter operating income increased

164% to just under $3 million. Their 2009 sales surpassed those of 2008. The Joe’s Jean consumer is one

who needs a designer brand jean as a wardrobe staple. 102 Joe's products are designed internally and

sourced to specification from suppliers primarily located in the U.S., Mexico and Morocco. Finished

goods are then distributed directly to Joe's customers from its distribution center in Los Angeles. Joe's

maintains third party showrooms in New York and Los Angeles to showcase its Joe's® and Joe's

Jeans™ products for its customers. 103

Men and women’s premium denim in classic styles, variety of fits, and trending designs. Kid’s

premium denim in available styles. Also sold; small selection of tops for both men and women.

102 http://seekingalpha.com/article/189713-why-we-bought-joe-s-jeans 103 http://phx.corporate-ir.net/phoenix.zhtml?c=84356&p=irol-homeProfile&t=&id=&

http://seekingalpha.com/article/189713-why-we-bought-joe-s-jeans

Piper’s Denim

[90]

Product Chart-

Below is a product chart separated by product, brand, products life cycle stage, and price range.

Products are separated by women’s denim, men’s denim, women’s apparel, men’s apparel, and kids wear.

Almost all of PD’s merchandise is in its growth stage, maturity stage, or in between the two. This is

because denim is a staple item. Each brand we carry has classic fits that continue to stay in the maturity

stage. They are products that are constantly accepted by consumers. A competitive feature that PD has is

the ability to offer new designs and exclusive fits that department stores may not carry. Therefore while

carrying merchandise in the maturity stage we can also advertise new products that are growing in the

market place. This is a positive aspect for PD because we can attract innovative consumers as well as

appeal to our loyal client base.

Product Brand Stage Price Range

Women’s Denim 7 for all Mankind, True Religion, Hudson, Naked and Famous, Joes Jeans

Growth-Maturity Retail- $165-$300

Women’s Apparel 7 for all Mankind, True Religion


Men’s Denim 7 for all Mankind, True Religion, Hudson, Naked and Famous, Joes Jeans


Men’s Apparel 7 for all Mankind, True Religion

Growth-Maturity Retail- $75- $225

Kids True Religion, Joes Jeans

Growth Retail- $49- $150

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[91]

Price-

The graphs below describe the price range and volume trends. At PD denim is our focal point.

The graphs are separated by women’s premium denim, men’s premium denim, kid’s premium denim,

and women and men’s apparel combined.

Based on the data above women's denim sells higher at regular retail prices. More women are willing to

splurge on prestige denim rather than promotional items. PD denim will focus firstly and largely on

regular retail priced items in classic styles and fits for women. Our second focus is prestige items and

seasonal merchandise. Promotions and markdowns will be implemented into the cycle as scheduled.

0

2

4

6

8

10

12

$98 $165 $200

Un

it S

ale

s

Price in Dollars

Women's Premium Denim Price Range

Promotional

Volume

Prestige

Piper’s Denim

[92]

Based on the data above men's denim sells higher at regular retail prices. Men are willing to buy larger

amounts of denim at promotional prices rather than prestige. PD will continue to focus largely on

regular retail items and classic styles for men's denim with seasonal markdowns and an exclusive

selection of prestige items.

0

2

4

6

8

10

12

$75 $178 $320

Un

it S

ale

s

Price in Dollars

Men's Premium Denim Price Range

Promotional

Volume

Prestige

Piper’s Denim

[93]

Based on the data above parents are willing to spend more promotional and regular retail prices rather

than prestige items. Pipers Denim will provide select styles of prestige denim for kids but focus more on

retail valued items.

0

2

4

6

8

10

12

$49 $120 $150

Un

it S

ale

s

Price in Dollars

Kid's Premium Denim Price Range

Promotional

Volume

Prestige

Piper’s Denim

[94]

Based on the data above at regular retail and prestige apparel sells in higher volumes. PD will focus more

on regular retail and prestige items for our customers. Our apparel selection is smaller than our denim

selection so it is important that we have higher priced merchandise in this department to reach our sales

goal.

0

2

4

6

8

10

12

$75 $130 $225

Un

it S

ale

s

Price in Dollars

Men and Women's Apparel (Combined) Price Range

Promotional

Volume

Prestige

Piper’s Denim

[95]

Place-

All of our brands with the exception of one, Naked and Famous, are manufactured in the United

States. Naked and Famous is native to Canada. All merchandise can be obtained and shipped via ground.

At PD we find that it is important to have more than one vendor contact for each brand in case there is

an emergency. Below lists each brands vendor, showrooms, locations, manufacturer, and transportation

methods.

Brand Vendor Location Manufacturer Transportation

7 for all Mankind Los Angeles Showroom 213-622-1043

Los Angeles, CA USA Ground

7 for all Mankind Linde Lee Inc. 214-631-4499

Texas USA Ground

7 for all Mankind New York Showroom 646-839-5400

New York, NY USA Ground

True Religion Los Angeles Showroom 110 E 9th St. #541 Los Angeles, CA 90079 (tel) 213-683-0050 (fax) 213-683-0080

West Coast (U.S) Los Angeles, CA

USA Ground

True Religion New York Showroom 599 Broadway 9th Floor New York, NY 10012 (tel) 212-966-7150 (fax) 212-966-7152

East Coast (U.S) New York, NY

USA Ground

Hudson LA Showroom 127 East 9th Street # 412 Los Angeles, CA 90015 Tel: 213-995-5550 Fax: 213-995-5551

West Coast (US) Los Angeles, CA

USA Ground

Hudson NY Showroom 231 West 39th Street # 401 New York, NY 10018 Tel: 212-871-6636 Fax: 212-871-6639

East Coast (US) New York, NY

USA Ground

Piper’s Denim

[96]

Naked and Famous

Attend Tradeshows such as Capsule in Las Vegas to make Purchase Orders

Varies Canada Ground

Joes Jeans

Showroom 903 127 E 9th ST #903 Los Angeles, CA


Joes Jeans Joes Jeans INC. 2340 South Eastern Av. Commerce, CA 90040 USA

Commerce, CA USA Ground

Piper’s Denim

[97]

Promotional Plan-

Advertising Strategy-

At PD we really want to focus on positioning ourselves firmly in the local market. PD will use a

variety of local mediums to advertise these include seattlefashions.com, seattlemag.com, Seattle

Magazine, The Seattle Metropolitan Magazine, The D-List, and flyers. All mediums use different

methods such as web page ads, blogs, and print. Advertisements such as this will capture the attention of

shoppers and tourists alike. Seattle Magazine distributes their issues to 20 luxury hotels which will

provide PD with direct linkage to affluent visitor markets. The magazine is also provided at the Sea Tac

airport. The Seattle Metropolitan Magazine is sold at 900 newsstands, specialty grocery stores, local

retailers, the Sea-Tac airport, and prominent hotels in the Downtown area. The D-list is a trendy Seattle

magazine that is free and offered throughout the city and in shopping areas such as Pacific Place,

downtown luxury mall. This will capture the attention of tourists and shoppers alike. Aside from

magazines and websites content such as business cards, flyers, and other promotional material will be

distributed to local Seattle businesses and events. PD is also purchasing keywords from Google that will

allow our business to pop up on the search engine when key words related to our company are searched

for.

Direct Marketing Strategy and Means-

The direct marketing channel that PD will focus on is member only coupon sites. This will

obtain our exclusive image while bringing customers in and building a clientele through special limited

deals. Websites such as Groupon and Living Social provide its members with exclusive coupons and

deals within a specific city. This would be a very successful for PD to build a client base and get our

name out there. PD could easily build a client base by bringing customers in with deals such as “free

tailoring with purchase” or “50% off entire purchase”. These deals would attract customers into the

store allowing PD as a company to sell ourselves as their new go to place for denim.

Public Relations Strategy and Means-

Publicly PD wants to get involved with local business associations, local Seattle art, fashion, and

music events. One idea in getting involved is to host a local fashion show within the Seattle fashion

scene. PD would host this denim oriented event and allow local designers to showcase their designs.

Proceeds from tickets would be donated a local charity of PD's choice. It is events like these and chances

to give back to the community that will give PD a respectable image as a business.

Piper’s Denim

[98]

Personal Selling and Sales Promotion-

PD prides itself in customer service and personal client relationships. PD will take the necessary

steps to train our employees on in store selling, phone etiquette, and PR for employees who represent

PD outside of the store at events. PD will hire staff early enough to provide denim expert training. PD

believes working as a team really helps businesses succeed and boost customer service 100%. Therefore

PD will focus on and provide individual and team focus to ensure all employees are educated on the

same level. At the end of each year PD hosts a meeting with all staff members conducting individual

conferences and yearly recap as a whole. Having a knowledgeable staff that are comfortable with each

other, and have achievable goals will provide PD with positive an energy, and asset to customer service.

Internet Strategy and Means-

PD has chosen to take a subtle approach when it comes to internet advertising. Some internet

advertisements take away from the tasteful image a store is trying to signify. PD will have a store website

and select local sites to advertise on. In order to maintain our image we will also purchase a space on

critique sites such yelp.com to ensure a positive impression. PD will create a website. There will be two

sections, one for the general public. This will provide a basic overview of the store. The second section

will require our exclusive clients to log in. Our exclusive section allows clients to schedule styling

appointments, tailoring appointments; invite only events, and the option to receive emails about

exclusive promotions. PD will not be selling any merchandise online as we encourage our customer to

come into the store. If our company and merchandise selection expand than an online site will be

reconsidered. PD wants to uphold its premium image. To us this means not bombarding the internet

with our pictures. PD has chosen select sites to advertise on that are geared towards Downtown Seattle

and local shopping. Critique websites that allow the public to review their experience at a particular

business are very popular and largely important to the stores image. Personal review holds a greater

importance than a magazine quote. Therefore PD will be purchasing their pages from sites such as

yelp.com. This will be successful to the store because sites like yelp.com does not filter and allows more

negative comments on pages that are not owned by the company. Any negative feedback PD receives we

want to evaluate as a team and strive to create a better experience.

Piper’s Denim

[99]

Tactical Plan

Gantt Charts-

PD has strategically planned major tasks and steps to take One year prior and post opening. The

importance of highlighting these details to ensure an organized start up and progression. Examination of

these actions must take place to develop the company.

Twelve Months Prior to Opening 09/2013

Sep Oct Nov Dec Jan Feb Mar April June July Aug Sep

Plan Loan

Secure Location

Secure Business License

Hire Interior Designer/Begin Building

Electric and Plumbing

Hire Visual Team

Contact Vendors/Secure Merchandise

Start Advertising/Create Website

Hire/Train Employees

Soft Opening

Grand Opening

Piper’s Denim

[100]

Below is a detailed list of PD’s tasks twelve months prior to the opening of the store.

Plan Loan: Obtain a small business loan through Wells Fargo following their lending steps. PD

will obtain the 7A loan. Most small businesses are familiar with this loan. For example PD will

pay back month to month payments over a period of time, such as 25 years.

Secure Location: We will secure our location on 6th Avenue, the Retail Core, by contacting an

agent and moving forward with payment agreements and paperwork; terms.

Secure Business License: PD will go through the proper national, state, and city processes that

will allow PD to acquire a business license and run within the city of Seattle.

Hire Interior Designer/Begin Building: Image is of major importance to PD and the shopping

experience as a whole. Customer service is major, but without a comfortable environment,

customers won’t receive the best service, and experience possible. Therefore PD is planning to

hire an interior designer to help execute the planned vision for our store. Our hired interior

designer will design a floor plan and will design and purchase furniture accordingly to our

inspiration provided. We will provide a budget for the interior designer to purchase fixtures and

all other items necessary.

Electric and Plumbing: PD wants to have electric and plumbing throughout the building taken

care of 4 months before opening. This will allow us to prepare our store thoroughly. This will

also be major so we can hire employees and train them in the store earlier to allow a denim

expert staff.

Hire Visual Team: PD will hire a visual team in March and they will continue perfecting our

floor plan until April. Our hired visual team will work with the fixtures purchased by PD and

chosen by our interior designer. We are allowing two months for the design to ensure the best

possible results.

Contact Vendors/Secure Merchandise: Throughout the prior year PD will have traveled to all

the showrooms for our chosen denim brands. Throughout April and June we will finalize

purchase orders and secure merchandise for the fall and early winter seasons.

Start Advertising/Design Website: PD wants to start advertising in April. We will start subtly

and progress advertising mediums to broader markets as we get closer to our grand opening. At

the same time we want to hire a web designer and start our website. As the PD site is under

construction, we will provide a promotional advertisement provoking curiosity to those who

stumble upon our site until it is open for review.

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[101]

Hire/Train Employees: PD has planned to start the employee hiring process in June and

continue through August if necessary. We will start first by hiring managers and assistant

managers and trickle down to sales associates, and fill our onsite tailoring position. The reason

PD is starting the process so early is to ensure a fully trained sales staff that is comprehensively

trained in every aspect of our company.

Soft Opening: During the third week of August PD will have a soft opening. The opening will

be quiet and not advertised. This will allow us to see what kind of foot traffic clientele our store

attracts on a daily bases. This will help PD understand what works for our store and what we

need to change to ensure top business success.

Grand Opening: The grand opening will take place during the first weekend of September. The

grand opening will be advertised throughout chosen mediums and special promotions and

events for the day will be planned and performed accordingly.

Piper’s Denim

[102]

Twelve Months After Opening 09/2014

Sep Oct Nov Dec Jan Feb Mar April June July Aug Sep

Afterschool Special

Loyalty Program

Begin Holiday Training

Black Friday

Spring Advertisements

Inventory

Denim Fashion Show

Store Maintenance

New Brand Introduction

Yearly Recap

Piper’s Denim

[103]

Below is a detailed list PD’s store plans the twelve months after the store opening.

Afterschool Special: Besides the grand opening event PD’s “Afterschool Special” will be one of

our first promotional events. This event will take place in late September. The idea of this

promotion is to offer a sale after the back to school rush. PD will provide a week of marked

down denim for back to school or fall reasons, but at promotional prices. The end of September

is when the weather starts getting colder and denim is no longer an option but a need. We feel

this event will attract many students all the way through college level to invest in this year’s

premium denim.

Loyalty Program: PD’s loyalty program begins on opening day. PD’s loyalty program is invite

only with the exception of opening week where clients will be allowed to sign up voluntarily. The

idea of PD’s loyalty program is to provide our most frequent and loyal shoppers with exclusive

sales and invitation only events. The loyalty program will also allow members to build points that

result in free gifts. Clients will have the option to have this information emailed to them, or to

their profile on our website. Exclusive clients will receive a username and password to obtain

this information on our member’s only section online.

Begin Holiday Training: Holiday training will begin will begin in October. Downtown Seattle is a

large tourist attraction during the holidays and attracts an increased number of foot traffic and

business to the downtown area. Therefore we want to make sure our staff is fully trained and

prepared for the holiday rush.

Black Friday: Black Friday is a noteworthy date; PD will have all sales staff scheduled. Prior to

Black Friday promotional advertisements and exclusive client sales will be endorsed. Staff will be

trained and educated on all promotions.

Spring Advertisements: Spring indicates a change in style, color, and denim washes. Towards the

end of winter in February PD will start advertising for the spring season, and slowly bring new

merchandise in and push old merchandise out through selling and promotions.

Inventory: Before PD receives all of our spring merchandise it is important that we do an entire

inventory check of the store. This will allow PD to have a precise understanding of sale trends

and shrinkage. These are valuable in understanding popular purchasing trends in order to plan

our merchandise selection accordingly. It is also important for PD to know their shrinkage. If

shrinkage is high PD will have to take stronger steps and security in preventing shoplifting. All

items in the store will already be censored with a working alarm prior to inventory check.

Denim Fashion Show: PD wants to position itself in Seattle’s fashion scene. Along with getting

involved with Seattlefashions.com PD would like to host a sponsor a denim oriented fashion

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show to spread awareness about the store, and provide local and upcoming designers with a

chance to showcase their designs.

Store Maintenance: During the summer months of July and August PD will conduct daily store

maintenance to prepare for another year in business. This means updating the POS system,

repainting walls, repairing broken fixtures, and a deep cleaning of the entire store to ensure all

systems are running efficiently.

New Brand Introduction: The goal for PD is to grow and position ourselves as successful local

retailer in Seattle. This also means expanding our brand selection. Right before September

towards the end of August PD will introduce a new premium denim brand. PD will choose this

selected brand based on trend reports and trade show exhibitions.

Yearly Recap: After the first year PD will conduct a staff meeting and individual conferences

with each employee. We will discuss successes and downfalls of the business as a whole, and

focus on individual profiles as well. PD wants everyone to be on the same page when it comes to

company knowledge. We want to constructively criticize and improve as a denim family. No one

will be left behind, therefore individual conferences discussing strengths and weaknesses will also

be held during the yearly recap. Being on the same page as a team obliterates competition which

is unhealthy in the work place and does not provide a genuine experience for the customer.

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Reach and Frequency Plans and Advertising Budget-

Below is a breakdown of estimated advertising costs PD will encounter monthly and annually.

The chart below is to be read across and is broken down into the type of medium used, how many

viewers it reaches, frequency of the ad, size of the ad, monthly cost, and yearly cost. At the bottom of

monthly and yearly costs column is the total expenses for each category.

Medium Reach Frequency Size/Duration Monthly Yearly

Store Website 15,000+ Ongoing Webpage No monthly fee

$560

Exclusive Member e-mails

15,000+ Ongoing Webpage N/A N/A

Yelp.com 1 Million + Ongoing Webpage $300 $3,600

Seattlefashions.com 50,000+ Ongoing Video Free Free

Seattlemag.com 124,000 Seasonal Side Ad $500 $3,000

Seattle Magazine 124,000 Seasonal 1 pg $1000 $4,000

The Seattle Metropolitan Magazine

219,472 4 times a year 1/4th pg $600 $2,400

D-List Magazine 300,000 4 times a year 1 pg $600 $2,400

Google.com 4 Million + Ongoing Webpage $90 $1,080

Flyers 100+ 8 times a year 7” by 5” $100 $1,600

T=$3,190 T=$18,640

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Pricing Plan-

Pricing Strategy and Objective-

1. Use a premium pricing strategy with generous advantages to loyal clients in order to achieve customer satisfaction and to

match competitor prices.

PD offer’s premium denim brands only, clients expect a higher price point when dealing with

these brands.

The price of PD’s merchandise is already positioned in the market place and matches our

competitors.

PD will off exclusive customer benefits to frequent shoppers willing to pay often for our quality

brands.

Together our premium priced denim, quality merchandise, and customer benefits will be an

effective pricing strategy that works well with this business model.

2. Utilize line pricing to increase the stores sales volume and increase the number of registered transactions per day.

PD’s turnover is highest when merchandise is priced at regular retail price.

The majority of PD’s merchandise is always priced at regular retail with little markdowns.

By carrying a large selection of classic items from each brand PD can rely on this category to sell

more frequently, and in more units.

By utilizing line pricing to increase the stores sales volume and registered transactions per day

will be an effective pricing strategy that works well with our business volume.

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Markup, Markdown, Sales Plan-

The chart below describes PD markup and markdown plans according to sales and season. PD

carries high priced items so markdowns are minimal. The categories are separated by denim, apparel, and

kid’s denim. Black Friday will be are largest sale of the year and has the highest number of markdowns.

Fall and winter has the lowest markdown percentages because merchandise from this season is needed

for Seattle’s climate year round.

Product Category

MU% Retail

MD% Black Friday

MD% Spring/Summer Clearance

MD% Fall/Winter Clearance

Denim Men & Women’s

500% 15% 10% 5-10% (depending on style)

Apparel Men & Women’s

500% 20% 15% 10-15% (depending on style)

Kids Denim 100% 20% 15% 15%

Stock Turnover-

We will be measuring out STR according to this formula:

Inventory Turnover Ratio= Net Sales/ Average Inventory at Selling Price

For example, if our ITR is $100,000, our opening stock is 10,000, and our closing stock is 20,000 then

we would find the average of our opening and closing stock and apply the number to our ITR formula.

In this case the average is 15,000.

Inventory Turnover Ratio= 100,000/15,000=6.6

Based on the provided example the average 1 dollar invested in stock will turn into 7 times in sales.

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Terms of Payment-

Vendor Contacts

Brand Vendor Location Manufacturer Transportation

7 for all Mankind Los Angeles Showroom 213-622-1043


7 for all Mankind Linde Lee Inc. 214-631-4499

Texas USA Ground

7 for all Mankind New York Showroom 646-839-5400

New York, NY USA Ground

True Religion Los Angeles Showroom 110 E 9th St. #541 Los Angeles, CA 90079 (tel) 213-683-0050 (fax) 213-683-0080

West Coast (U.S) Los Angeles, CA

USA Ground

True Religion New York Showroom 599 Broadway 9th Floor New York, NY 10012 (tel) 212-966-7150 (fax) 212-966-7152

East Coast (U.S) New York, NY

USA Ground

Hudson LA Showroom 127 East 9th Street # 412 Los Angeles, CA 90015 Tel: 213-995-5550 Fax: 213-995-5551

West Coast (US) Los Angeles, CA

USA Ground

Hudson NY Showroom 231 West 39th Street # 401 New York, NY 10018 Tel: 212-871-6636 Fax: 212-871-6639

East Coast (US) New York, NY

USA Ground

Naked and Famous Attend Tradeshows such as Capsule in Las Vegas to make Purchase Orders

Varies Canada Ground

Joes Jeans

Showroom 903 127 E 9th ST #903 Los Angeles, CA


Joes Jeans Joes Jeans INC. 2340 South Eastern Av. Commerce, CA 90040 USA

Commerce, CA USA Ground

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PD understands the importance of maintaining a good relationship between buyer and vendor.

We understand that this can only be achieved through being a punctual, truthful, and loyal customer. PD

will pay all vendor bills on time. To ensure good pay we intend to pay within ten days of receiving the

merchandise unless otherwise noted in the agreement. PD promises to not push the limits of these

circumstances and will always be the first to initiate the payment, in other words PD will not wait for the

vendor to request payment. As a business it is important to obtain good credit and remain current on all

vendor relations incase background checks are initiated. PD will pay close attention to the individual

requirements of each vendor. It is important that we are truthful about time limits. If PD feels that we

must negotiate pay may inquire about lifting vendor discounts to extend payment terms, or postponing a

shipments, leaving the vendor with collateral, to create trust. Creating a foundation for long and reliable

vendor relations creates room for price negotiation in the future.

Distribution Plan-

Off-Site Sales-

Starting out PD has chosen not to offer online sales. Our website gives information about our

store, and exclusive members have a user name and password that provides them with special codes and

promotions. PD has chosen to utilize over the phone sales, coupon codes, and annual promotions, and

selective promotions for exclusive clients. Utilizing these methods of off-site sales will help increase

business.

Phone Sales: PD will allow customers to make purchases over the phone and have items shipped

to them if they are not able to come in. This service will mostly be used for returns, and

exclusive clients that have been offered select promotions. PD will have special training for

phone etiquette to positively represent our company over the phone, and provide outstanding

customer service.

Coupon Codes: PD will be working with sites such as Groupon or Living Social that offer

special promotions for out store. These sites will provide users with a special code pertaining to

the promotion. PD will also provide select coupon codes to frequent shoppers (exclusive

clients).

Annual Promotions: PD will offer annual sales such as our after school special, black Friday, and

seasonal markdowns. Information will be distributed to the public off site.

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Selective Promotions: PD will also host invite only events for our exclusive clients, and provide

them with special promotions that are not offered to the general public as a whole. Information

will be distributed off site.

Forms of Payment-

Piper’s Denim Accepted Forms of Payment

Means of Shipping and Pricing Chart-

For shipping orders PD will ship via ground with UPS.

“UPS Supplier Management services provide the management and tools to help you manage the

critical front end of your supply chain to ensure that you receive precisely the merchandise

needed from your suppliers. You get access to vital order, item, and vendor fulfillment in

formation right down to the SKU level before the order is scheduled to ship. With it you can

prevent stock outs, shortages, delivery delays, and the need to hold higher levels of inventory to

avoid these situations.”105

*Extra shipping fees are required from clients for all purchases made over the phone.

Price Chart Based on Weight

104 http://usa.visa.com/merchants/new_acceptance/benefits/index.html#anchor_5 105 http://www.ups.com/bussol?loc=en_US&viewID=metaCategoryView&contentID=ct1_solg_met_industry&WT.svl=PNRO_L1

Cash No fees, all income goes towards business

Travelers Checks No charge or contract from American express. Guaranteed payment from American express. Simple deposit into bank account.

Visa Nearly 1 in every 3 consumer purchases in the United States is made with a payment card—including credit, debit, and prepaid products. 104

MasterCard MasterCard is widely accepted at used at most businesses.

1 lb $7.47-$37.00

4 lb $17.97-$151.92

76lb $30.17-$254.76

116lb $71.85-$369.82

http://www.ups.com/bussol?loc=en_US&viewID=metaCategoryView&contentID=ct1_solg_met_industry&WT.svl=PNRO_L1

http://www.ups.com/bussol?loc=en_US&viewID=metaCategoryView&contentID=ct1_solg_met_industry&WT.svl=PNRO_L1

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Operations Plan-

Planning and Forecasting-

Piper’s Denim recognizes that proper forecasting and

planning requires proper financial planning as a foundation.

Therefore PD will be working in collaboration with boutique

financial. A charted accounting firm. Working with BF allows PD and business owner Caitlin Scully to

ensure smooth store operations are done legally and correctly. Using this service will benefit PD most as

it is a sole propietership. Services and software will be used in the areas of taxes, accounting, legality

issues, and budgeting and forecasting, and small business guidance. BF will assist in the future needs of

PD if not already listed. Below is an illustrated list from Boutique Financial displaying programs and key

components of each that PD will utilize.

.

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Utilizing these resources for the business of PD ensure that it has a sturdy foundation to obtain funding

for other aspects of planning and forecasting such as:

Trend reports and agency memberships

Trade show, showroom, fashion show, trunk show funding for said events

Accurate market research and funds to hire reliable and trustworthy assistance

At PD our merchandise reflects current trends in denim fashion. PD works 12 or more months

in advance working with a variety of mediums. Up and coming trends in denim, technology, and brands

are all analyzed as well as focusing on seasonal and climate needs. PD will work in collaboration with the

appropriate market research geared towards our client ensuring a profitable inventory. It is important to

understand up and coming trends for merchandise through trend forecasting, reports, attending

tradeshows, and group memberships that collaborate to offer current information.

PD will use vendors, which can be found on page 108, in correspondence with our planning and

forecasting methods. All of our brands with the exception of one, Naked and Famous, are manufactured

in the United States. Naked and Famous is native to Canada. All merchandise can be obtained and

shipped via ground. At PD we find that it is important to have more than one vendor contact for each

brand in case there is an emergency.

Inventory Control-

PD will conduct quarterly hand counts of inventory. The process will be completed by a

manager and assistant manager after business hours. Data results from quarterly hand counts will then be

compared to the POS system stock on hand numbers for final results.

Quality Control-

PD will use an external company twice a year in January and July for inventory counts. PD will

be using American Inventory. An inventory service conveniently located on 4th avenue in Downtown

Seattle near Piper’s Denim. Services used by American Inventory are listed below.

SKU (barcoded or not) Inventories (data collection includes SKU, Price if desired, Qty, location

and category).

Reports; a variety of report formats are offered. Reporting can be done on hard copy,

electronically, or a combination of the two.

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Human Resources-

PD is a sole Proprietorship and is owned and operated by a single manager. The store manager

deems the necessary requirements for hire in areas involving:

Hiring employees

Training employees

Developing innovative aptitudes

Staff recruiting

Planning and workforce analysis

Hiring and Training Processes-

Procedure-

To be considered for employment at Piper’s Denim the following procedures must be completed.

Meets the appropriate qualifications of the position being applied for

(Number of years) experience based on position

Filled out application along with resume

2 to 3 part interview process depending on position

New hire paperwork

Training program corresponding with position

Hiring Qualifications Assistant Manager Sales Leads Sales Associates Seamstress

AA or BS in fashion marketing, merchandising, management, design etc.

OR

5+years of retail experience

2 + years of retail management in a boutique setting

Resume and references highlighting work experience

Interest in premium denim and fashion trends

Ability to confidently manage a team

AA in fashion marketing, merchandising, management, design etc. OR

2 + years of retail experience in a boutique setting

Resume and references highlighting work experience

Interest in fashion and trending

Comfortable with leadership

1+ years of retail experience, preferably in a boutique setting

College students are encouraged to apply for part time positions

Interest in fashion

Keeping up with current trends and styles

Outgoing personality with a desire to learn

A degree in fashion or a trade school certificate is highly recommended but not required

Attention to detail

Organized

Accounting knowledge to keep up with personal clientele books

Visionary

Attention to detail

Reliability, orders get done in a timely fashion

People skills to build customer relations

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Introductory Period-

The first 90 days of continuous employment at PD will allow employees to learn job duties,

familiarize themselves with merchandise, product knowledge, sales techniques, and become acquainted

with managers and fellow team members. During the time all employees regardless of title are required

to perform satisfactory.

Training-

After being hired on and filling out the appropriate new hire paper work, future PD sales

associates will participate in a three day on-the-job training process. Training is to be conducted by

manager or assistant manager unless otherwise authorized. Considerable time and expense are spent on

educating our new employees to effectively prepare each individual for their position. Employees hired

on as sales leads will participate in a four day training process. The first three days will be the same for all

employees. Training higher up employees such as sales lead or assistant manager will be similar to the

three day process, but a fourth day will be added on for education regarding individual job specific

duties. The training process should consist of educating employees on the following each specific day.

Lessons and tasks vary based on position.

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General Training Program Outline-

Each employee at PD obtains different ways of learning. PD takes the main principles/focal

points of our basic training program and combines them with each new hires individual personality and

learning methods. The smaller size of PD allows focus on creating a closer nit team of denim experts.

This approach creates a relaxing atmosphere for customers and employees. Our staff is our most

valuable asset and represent PD’s image. It is important each one feels comfortable and confident.

Therefore our training program includes instilling the basics of store operations, sales techniques, and all

other significant jobs and tasks individual to PD. By combining this with hands on experience our

employees will be able to engage in lessons. PD requires 3, 8 hour shift days of training in which the

employee will start out with store basics such as familiarizing themselves with the layout, merchandise,

rules, and POS system. The second training day consists of job shadowing either a manger or assistant

manager. On this day selling techniques and building client relationships will be the focus. The final 8

hour shift provides potential PD employees with the opportunity to try it on their own. We call this the

audition day. Management will be by at all times for questions and suggestions. The next page provides a

general outline of how training days are conducted and what areas need to be focused on.

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General Training Program Outline

Day 1: Learning the store

Receive handbook, familiarize self with PD standards and policies.

Learn floor layout.

Learn POS system, this includes clocking on and off, practicing transactions such as purchases

and exchanges.

Learn opening and closing duties.

Studying and getting to know the merchandise.

Day 2: Understanding your customer, merchandise, and selling techniques

Lesson on product knowledge, features and benefits.

Lesson on company history, facts to discuss during the selling process/building customer

relationships.

Learn and practice selling techniques.

Practice learned techniques on customers.

Day 3: Audition Day

End of job shadowing.

Review of learned information through observation on-the job interaction such as selling,

product knowledge, customer information, and employee duties performed throughout the work

day.

Time for questions and suggestions before final training day.

Day 4: For sales lead or assistant manager position, individual training and education will vary

between each position and will be conducted by the Manager as seen fit.

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Employees at Piper’s Denim are classified as full-time nonexempt, part-time nonexempt, or exempt.

Paydays-

At PD are on Friday of every other week for work performed during the previous two-week pay

period. If a scheduled pay day falls on a weekend or holiday, employees will be paid on the preceding

workday.

Paychecks-

PD employees have the option to pick up their paychecks at the store or have it deposited

directly into their checking account. Paychecks will be available for pick up between 12:00 P M and 5:00

P M on payday. Each paycheck indicates earnings as well as state and federal deductions authorized by

the employee.

Records-

All records and files maintained by PD are confidential and remain the property of the

Company. Records and files are not to be disclosed to any outside party without permission of owner.

Confidential information includes but is not limited to financial records, payroll records, information

regarding customer transactions, customer account information, information regarding customers,

vendors, suppliers, or any documents regarding Piper’s Denim company operations, procedures, and

practices. Confidential information may not be removed from store premises without authorization.

Employee Benefits-

Vacation Pay-

PD employees are entitled to vacation pay after one full year of employment. Eligibility

requirements include working a minimum of 20 hours a week or at least 960 hours annually. Vacation

pay is for each team member’s hourly wage only and excludes commission. Prorated vacation pay is not

available for partial years of service. Vacation pay benefit accrues at the rate of:

1 week of vacation pay after year 1

2 weeks of vacation pay after years 2,3, and 4

3 weeks of vacation pay after years 5,6,7,8, and 9

4 weeks of vacation pay after or plus year 10

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Medical, Dental, Vision, and Life Insurance-

Employees in sales leads or management positions are eligible to participate in PD’s medical,

dental, vision, and life insurance plans after 90 days of service. An average of 20 hours per week or 960

hours annually is to be maintained to remain qualified.

PD pays $80.00 per month towards medical insurance.

Upon enrollment employees are automatically signed up for $25,000 of life insurance.

For dental coverage the entire premium is the employee’s responsibility.

Medical or dental premiums are the responsibility of the employee and will be deducted from the

member’s paycheck on a bi-weekly basis.

Discounts-

New hires will receive a one -time 70% off discount when purchasing an entire outfit from PD.

An outfit includes:

1 pair of regular priced denim jeans.

1 coordinating top.

1 matching accessory.

All other occasions entitle employees to a 40% discount on full priced merchandise, and a 20% discount

on all sale items.

Termination-

Voluntary-

A two week written notice is required if an employee chooses to leave Piper’s Denim. This

allows time for necessary adjustments in the stores operation. Any property belonging to Piper’s Denim

must be returned at this time.

Involuntary-

Certain situations may call for termination of the employment relationship. As an at-will

employer, Piper’s Denim reserves the right to end the employment relationship at any time, with or

without cause or notice. In the event that employment is terminated any property belonging to Piper’s

Denim must be returned at this time.

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Facilities Maintenance-

Opening Procedures-

Clock on through the POS system 1 hour prior to opening

Turn the lights on

Count the till

Fix store and merchandise, prepare for day

Follow any directions laid out on morning notes

Unlock doors at opening

Complete weekly cleaning tasks

Closing Procedures-

Lock doors

Count till, print out paperwork, place cash and deposit (if any) in the safe

Vacuum, tidy up store

Complete assigned chore for specific day

Take garbage out

Make notes for opener

Clock out on the POS system after closing procedures are finished

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Equipment-

Complete Point-Of-Sale System

- Includes full setup support via phone

- HP RP3000 Point of Sale System

- 3 Year HP Warranty

- Ruggedly designed for retail

- Easy to install 106

Security-

RCB uses Sonitrol an external security company locally based in Washington State. Services provided are:

Access control system

Intrusion detection system

Sonitrol pacific security cameras

and monitoring for both the

entrance and exit of the store

Sonitrol pacific fire monitoring

Janitorial-

PD will work with a third party, Noble Janitorial Services, located in Seattle. Cleaning of the

floors, windows, restrooms et cetera will be completed on a bi weekly basis and in conjunction with

employee chores done during closing. PD will also take advantage of Noble’s Janitorial supplies

replenishment program, allowing them to provide and stock PD with such items. A clean store will help

enhance the customers shopping experience.

106 http://www.cashierlive.com/hardware

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Customer Service-

Complaints-

All complaints that cannot be solved based on store policies or due to an employee’s position

must then be communicated to management ASAP. From there all problems will be addressed and

resolved based on the individual complaint. If management is not available sales associates must politely

take a message or give the client the manager’s business card. It should be respectfully explained that

although they do not have the authority to help any further, management does. Sales associates should

explain that someone will be available for help ASAP.

Returns-

Refunds in the same currency used for the original purchase must be returned within the first 15

days. Otherwise store credit will then be offered after the first 15 days, and will be available up to 90 days

after the initial purchase. Tags must be attached and a receipt must be present. If tags are attached and

there is no receipt customer store credit may be offered. All clearance and children items are final sale.

Returns can be tracked through our computer system. Gift receipts will be handed out to increase

customer satisfaction. Piper’s Denim return policy will be stated on the receipt and enforced during the

POS.

Sample Care Instructions

A standard disclaimer will be attached to

each garment. This will notify each

customer about specific instructions that

come directly from the manufacturer.

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Referrals-

1. Business: Piper’s Denim is a large supporter of local businesses and friendly competition. PD will

choose which businesses to communicate with and personally decide, or work together with another

retailer when providing customers with referrals. Referrals should only be suggested if PD does not have

the exact merchandise on stock or ready to be easily ordered. Referrals are also permitted when shoppers

are looking for different types or styles of merchandise that PD offers.

2. Employee: PD loves publicity and advertising word of mouth and encourages employees to promote

the business while off the clock; however there will be no discounts aloud for employee referrals, spouse,

or family. Items may be purchased as a gift solely by an employee without the company of the recipient.

Documents

BP_Proposal_Pipers_Denim