AGENDA
EXECUTIVE SUMMARY 1.  Background and Key Facts
2.  SWOT Analysis
3.  Strategy & Goals
4.  Action Plan
5.  Project Time-Line
KEY
FACTS
EXECUTIVE SUMMARY •  Topshop is a retailer of women’s fashion and clothing, with the extra
store Topman that sells cloths for men.
•  With 300 stores in Britain and 100 international outlets (all franchises)
in Asia, Europe and Latin America.
•  The chain made around $200M profit (before tax) in 2008 on revenues of
$1.14 billion.
•  The United States is becoming a target market based on its attractive
population size, affluence, and increasing interest in European high
fashion.
THE
U.S. MARKET
EXECUTIVE SUMMARY •  In 2007, Topshop launched the “Kate Moss Topshop” collection in 19
Barneys stores to better understand the US market.
•  In 2009, Topshop launched its first North American retail location in New
York (Soho).
•  Today, Topshop has two stores in US (NYC & Chicago), with the
objective to open 13 additional stores.
•  First year gross sales forecast for their NYC store: $30M to $40M.
BRAND
POSITIONING
EXECUTIVE SUMMARY •  The Company Mgt decided to
stop competing just on
price in the 90’s.
•  The decision was made to
create a fashion authority.
•  Now the attributes associated
with Topshop fit adequately
with the “affordable luxury”
category as well as
“competitive price".
(a) Source: Topshop Final Report
(a)
PRODUCTS
EXECUTIVE SUMMARY •  Topshop offers large varieties of products and services in order to
accommodate the very diverse audience they draw and provide “basics to
cutting edge” trends, keeping Topshop (and its customers) “ahead of the
style game”.
- Topshop lines : “Mainline”, “Premium”, “Boutique” and “Unique”.
- Topshop services: “Style Advisor,” “Topshop To Go” and
“Topshop Express”.
PRICING
EXECUTIVE SUMMARY •  Prices vary from line to line to accommodate all aspects of the
spectrum:
-  “Mainline”, one of their most popular lines, is geared toward
affordability offering classic styles at reasonable price.
- Topshops “Premium” line is focused on shoppers of quality
products who are looking for apparel made with superior materials,
intricate detail and sturdy craftsmanship, but are on a higher price
point scale.
AUDIENCE
EXECUTIVE SUMMARY Demographics (a)
•  Target customers are women aged btw 18 - 35 years.
•  Income range from $10,000 to $50,000 per year.
•  Target audience is young fashion-conscious people on a budget.
(a) Source: Topshop Final Report – Survey (150 people)
AUDIENCE
EXECUTIVE SUMMARY Psychographics:
•  According to VALS II (a),
there are 8 segments:
innovators, thinkers,
achievers, experiencers,
believers, strivers, makers
and survivors.
•  Topshop targets two of
these segments:
achievers &
experiencers (b).
(a) Source: http://www.strategicbusinessinsights.com/vals.shtml
(b) Source: Topshop Final Report
AUDIENCE
EXECUTIVE SUMMARY Psychographics(a)
•  Achievers have goal oriented lifestyles and a deep
commitment to career and family.
Image is important to Achievers; they favor established,
prestige products and services that demonstrate success to their
peers.
•  Experiencers are motivated by self expression. They are
young, enthusiastic, and impulsive consumers.
Their purchases reflect the emphasis they place on looking good
and having "cool" stuff.
(a) Source: http://www.strategicbusinessinsights.com/vals.shtml
COMPETITION
EXECUTIVE SUMMARY •  Main Topshop Competitors are: H&M, Zara, French Connection and
GAP. (a)
(a) Source: Topshop Final Report - Qualitative survey conducted in Boston with a sample of 150 people
DIGITAL
INSIGHT
EXECUTIVE SUMMARY •  NY Direct Searches - Website Comparison: Topshop Vs Competition. (a)
Us.topshop.com (b)
•  Monthly visitors: 225,000
•  Backlinks: 437
•  Google Page Rank: 5
VS
Topshop.com (b)
•  Monthly visitors: 2,700,000
•  Backlinks: 169,000
•  Google Page Rank: 7
(a)  Source: Google Insight
(b)  Source: http://domainsoutlook.com/u/site/us.topshop.com.html and http://bizinformation.com.my/www.topshop.com
DIGITAL
INSIGHT
EXECUTIVE SUMMARY Us.topshop.com
(b) ispionage.com
(a) Alexa
(c) Google Trends
SWOT
ANALYSIS
EXECUTIVE SUMMARY STRENGTHS
•  High quality and competitive price.
•  Innovation and creativity.
•  International brand and huge media
support.
WEAKNESSES
•  Line mostly limited to women.
•  Overwhelming range of line for
traditional consumers.
OPPORTUNITIES
•  Mobile devices and Internet mobile
usage are growing at a rapid pace.
•  Target group is open to new brands
and fashion according to studies.
THREATS
•  Strong established competition.
•  New competition coming from Asia
(e.g. Uniqlo).
•  Economic downturn.
GOALS
EXECUTIVE SUMMARY Goals period starts from April 2012 and end in March 2013 in current US market.
1.  Increase online revenue by 30% over the 12 months period.
Assumptions: total US revenue = $65M ($40M NYC + $25M Chicago) (a)
Assumptions: average online sales = 4.5% of the total revenue (b)
4.5% of $65M = 3M -> 3M * 30% = 900K of increase.
2.  Increase store traffic by 30% and encourage repeat purchases of the 18-35
years segment over the 12 months period.
3.  Increase brand awareness by 10% and loyalty of the 18-35 years segment
by providing targeted content through the Internet.
Assumptions: current brand awareness in NYC is 65% / Chicago 55% (c)
(a)  Assumptions based on the numbers given at the page 3. Goals do not include new store openings.
But the means to achieve the goals above-mentioned can be used for other store openings.
(b) Only 9% of clothing is sold on internet. In comparison 50% of computers and 40% of books are sold online. Apparel E-sales: 4.5% on average.
(c) In the Topshop Final Report conducted in Boston, average brand awareness was of 50%.
STARTEGY
EXECUTIVE SUMMARY ACTIONS
Develop an optimized website on IOS and
Android OS
RESULTS
Increase and support our growing mobile
purchases (a)
Develop a mobile application (TOPLOOKS) Increase online and offline purchases as
allowing users to get special offers, buy
well as engage the Topshop community
exclusivities and win prizes on a regular
basis
Execute SMS text campaign
Acquire downloads and usage of the
application as well increase sales thanks to
mobile promotions.
Utilize current marketing channels to
promote mobile techniques
Create possible synergies btw this strategy
and ongoing marketing actions
(a)  Topshop has seen mobile sales grow to 8%. Total m‐commerce s.ales are thought to be an average of 3‐4% of total e‐commerce sales, Source: http://www.powerretail.com.au/multichannel/topshop-mobile-sales-growth
MOBILE
WEBSITE
EXECUTIVE SUMMARY •
Build a mobile optimized website for
TOPSHOP USA.
•
Showcase TOPSHOP products and
exclusive offers on mobile.
•
Feature the mobile store locator by using
Google Maps API (a). No development required
•
Implement social plugins allowing users to
share and comment on special offers. No
development required
•
Enable users to purchase items from the
mobile device by adapting the existing online
shop.
•
Promote TOPLOOKS app on the mobile site.
•
Provide landing pages for QR code.
(a)  An applicaIon programming interface (API) is a set of code provided by a company to help third parties use their featrures
without having to develop it.
MOBILE
APPLICATION
EXECUTIVE SUMMARY •
Build a mobile app for TOPSHOP USA.
•
Build a website making the bridge between
the content posted by users on the mobile
app and the desktop (Toplooks.us.topshop.com).
•
Implement social plugins on
toplooks.us.topshop.com allowing users to
share and comment on the content posted.
•
Set up a weekly contest allowing the
TOPSHOP community to vote for the best
look.
•
Set up an annual competition where a movie
star or a model representing TOPSHOP
elects the best look among the weekly
winners of the year.
•
Make the bridge between the online store
and the application.
Note: The application and website associated to the app will be then used by other countries.
SMS
TEXT CAMPAIGN
EXECUTIVE SUMMARY •  Users text TOPSHOP to 33355
TOTAL
BUDGET
EXECUTIVE SUMMARY Mobile Website
•
•
•
Development
Maintainence (over one year)
Content (over one year)
$ 80,000
$ 40,000
$ 20,000
$ 20,000
Mobile Application
•
•
•
•
•
•
$ 200,000
Development
$ 70,000
Maintainence (over one year)
$ 30,000
Updates & Upgrades (over one year)
$ 70,000
Use of a Topshop Ambassador (Model or Star) (b) $ 00,000
Website Development
$ 20,000
Extra Space Storage (server)
$ 10,000
SMS Text Campaign (a)
$ 40,000
TOTAL
$ 320,000
(a)  120,000 phone numbers * 3 messages (back&forth) * $0.10 = 36,000 + 4,000 (campaign set up fee) = $40,000
(b)  Part of the current sponsoring contracts budget. This doesn’t impact our budget .
FINANCIAL
ROI
EXECUTIVE SUMMARY Mobile Web Commerce ROI (a)
= [ (Monthly Page Visits *12 Months * Conversion Rate * Average Purchase * Profit Margin) - Total Cost Mobile Web Site]/ Total Cost of Mobile Website
= [ (22,500 *12 * 5% * $40 * 20%) – 70,000]/ 70,000
= 54%
SMS Campaign ROI
= [ (Text Impressions * Conversion Rate * Value of Action ) - Total Cost of SMS Campaign]/ Total Cost of SMS Campaign
Text impressions = 12 months * 120,000 = 1,440,000
Value of action = Average purchase $40 * (margin 20% - 10% off) = $4,00 (value of action here does not include downloads)
= [ (1,440,000 * 4% * 4 ) – 40,000]/ 40,000
= 476%
Mobile Application (focused on Loyalty)
= [Downloads * Activation Rate* Value of User - Total Cost Mobile App]/ Total Cost of Mobile App
Downloads = 4% of 1,440,000 = 57,600 (according to the SMS ROI) + 50,000 (Assumption of viral effect) + 50,000 (other marketing channels)
= [157,600 * 70%* $5,00 – 200,000]/ 200,000
= 176%
(a)  Monthly visits on us.topshop.com = 225,000. Assumption: mobile visits = 10% of the website visits. Mobile visits = 22,500/month.
Source: http://domainsoutlook.com/u/site/us.topshop.com.html
TIMING
AND DELIVERY
EXECUTIVE SUMMARY