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Project AJ 117 - Going online

TEAM 10
e-Concept Development
Semester 2
Project 2
Group 6
18-05-2015

Justinas Jasilionis

Email: ypsilionis@gmail.com
Tel +45 28 72 78 34
Graduated from Multimedia design Communication from Aarhus Business Academy 2014. I worked with international scale projects where I have experienced both
as software engineer and front-end developer.

Morten Specht Larsen


Email: mospecht@hotmail.com
Tel: +45 40 11 31 82

Graduated as Multimedia Designer 1 year ago. I love design and music. My goal is
develop my skills within communication and idea generation.

Jens Juhanson
Email: jens.markus@gmail.com
Tel: +45 71 51 84 09

I am from Tallinn, Estonia. I have a background in design and communication, and


also experience with crowdfunding and assembling ever changing digital needs for
a private.

Anna Smoralova
Email: smolar.anna@gmail.com
Tel: 22 35 61 07

I am an enthusiastic and committed marketing manager with a track record of


meeting targets. Additionally I focus on strategic digital concepts and entrepreneurship.

Alexander Bo Larsen
Email: Psynx1990@ gmail.com
Tel: 31 41 39 66

Multimedia designer and fitness-athlete. Have the desire to one day found my own
company.
Competencies in website development, marketing and report writing.

Christian Petersen
Email: christian@scanteak.dk
Tel: 28 74 01 09

Partner at Greenify and manager at Scanteak.dk.


I have experience with design, planning, E-commerce. I have experience with controlling and manage E-business projects.

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TABLE OF CONTENT
1.0 INTRODUCTION 4
1.1 PROBLEM AREA 4
1.2 CLIENT GOAL
4
2.0 PROBLEM FORMULATION 4
2.1 LINES OF ENQUIRY
4
3.0 SITUATION ANALYSIS 5
- QUANTITATIVE RESEARCH, ONLINE SURVEY
5
- EXPERT INTERVIEW
5
3.1 TARGET GROUP
6
3.2 BEHAVIOR OF MODERN CONSUMERS
6
3.3 INDUSTRY TRENDS
6
3.4 COMPETITORS AND POSITIONING
7
3.5 CSR 7
3.6 CUSTOMER JOURNEY
8
3.7 BUSINESS MODEL CANVAS
8
4.0 INSIGHTS 9
- CMS 9
- POS SYSTEM
9
- WOOCOMMERCE
9
- PAYMENT SYSTEMS
10
- SUB CONCLUSION
10
5.0 STRATEGY, CONCEPT DESCRIPTION
- E-COMMERCE SOLUTION
5.1 SUPPLY CHAIN MANAGEMENT
5.2 MULTI-CHANNEL
5.3 THE WEBSHOP
- SUB CONCLUSION

11
11
12
12
12
13

6.0 KPIS FOR PROJECT AJ 117


6.1 LAUNCH PLAN AND PLATFORM CHOICES
6.2 COMMUNICATION STRATEGY

13
13
14

7.0 BUDGET (Appendix 8) 14


8.0 CONCLUSION 14
9. PROJECT MANAGEMENT BREAKDOWN

15

10. PROJECT MANAGEMENT BREAKDOWN

15

1.0 INTRODUCTION

The Danish fashion brand Project AJ117 was launched in 2011 as a result of collaboration between
two companies: Copenhagen Jade and CPH Fashion Pool. The brand is targeting mid-class women
who want to dress sexy and practical at the same
time.
Copenhagen Jade has the skills in fashion design, material outsourcing and future trends.
On the other hand, CPH Fashion Pool has been
specialized in the business side. Project AJ117
differentiates itself from other clothing brands by
using a special technique of staining that leads to
a unique, luxurious and outstanding appearance.
Furthermore, the Project AJ117s collections are
characterized by unique details, which creates a timeless, casual and cool look. Moreover, the brand
goes back to made in Europe1 and combines
both the best of Scandinavian design traditions
and simplicity with the Italian workmanship and
finishings.

1.1 PROBLEM AREA

One of the main clients challenges is to determine


the possibility of opening their own international
webshop that will compete with retailers without
spoiling the already established relationships between them and the brand. The company explores
its own possibilities to create an e-commerce solution that would be beneficial not only for attracting more retailers, but also with the opportunity
to run their own B2C e-shop worldwide. In fact,
through this they hope to build a greater brand
awareness for consumers, wholesalers and retailers. Furthermore, the entire inventory and logistical part must follow, when the client wants to run
efficiently operating webshop with short delivery
time and establish customer-centric culture.

2.0 PROBLEM FORMULATION

Which e-commerce solution and strategy should


be implemented to http://www.project-aj117.com
and how will it increase sales, create awareness
and gather feedback from customers to Project
AJ117?

2.1 LINES OF ENQUIRY

- How can Project AJ117 prove to retailers that



their new webshop is going to be also

beneficial for them due to the data ana
lytics?
- How can it be ensured that retailers will not

lose existing customers of Project AJ
117?
- Which supply chain management fits best

when considering both B2B and B2C

type of businesses?
- What is the best solution for a successful mar

keting strategy?
- What are the strengths and weaknesses of

having an international e-shop?
- Which existing Danish brand has succeeded

to build a prosperous international

e-shop and can be used as an example

to demonstrate feasibility of the presen

ted e-commerce solution?

1.2 CLIENT GOAL

How to develop an e-commerce solution that


creates strong brand awareness towards Project
AJ117 and a closer relationship with their customers worldwide by 2016.

1 http://www.project-aj117.com/about/

3.0 SITUATION ANALYSIS


In order to gather empirical data and conduct research, both quantitative and qualitative methods
have been used.

EXPERT INTERVIEW 1 (appendix 3)

The quantitative data has been collected through


online questionnaires and desktop research.
The desktop research has primarily been used
to gather information and knowledge about the
client alongside with their market information,
competitors and consumers. The questionnaires
will provide a statistical overview of the target
groups attitude towards online apparel shopping
and Project AJ 117.

When interviewing Stine, the group found out


that the major fashion brands pay trend agencies
- in order to detect the next big trend for upcoming seasons1. Then, smaller brands follow the
big fashion houses and magazines. Additionally,
they use the same type of colors and styles, but
with a few variations, so they can not be accused
of copying. For example, when looking at the
Storm & Maries self-operated webshops, Stine
said:

The qualitative data has been collected through


expert interviews with the purpose to get experts
perspective about the problem area.

QUANTITATIVE RESEARCH - ONLINE


SURVEY (appendix 1)
Through the online survey shared on Facebook,
quantitative data has been collected by 125 reponders, which provided a better understanding of
the target groups behaviour.

The main age range of the female participants was


between 18-25 (32,8%), and women in the range
of 26-31 (40,8%). Since the client pointed out at
the brief that their target group are women above
25 years, the data collected became very relevant
for this project. If Project AJ117 would launch a
well designed webshop with great user experience,
and of course brand it properly, this would increase the awareness of the brand immensely. Since
only 24,8% of the women surveyed do buy clothes
within the price range of 101-150 and above,
Project AJ117 might want to reconsider either
which products they put in their online store or
adjust the price range to suit the customers, whilst
maintaining the quality of clothing.
Looking at the data about how users find inspiration for fashion, the primary source is the Internet
(71.3%), following by physical stores (43,4%) and
social media (41,8%), (appendix 2).

The first interviewed expert was Stine Radicke, a


fitting model at Storm and Marie & PBA in textile
conveys, craft and design.

By having their own shops, they get much bigger


profit. Even if they have to hire more people to
manage them as they are growing relatively fast in a
short time, but this also provides a positive commitment to the company and the brand.
Further, Stine Radicke was asked about letting
retail customers choose another color that is different from the original color of a designed clothing
piece after the first production. Thus, the expert
was a bit sceptical about that:
I think, it sounds a bit risky, as in fact often manufacturers must buy so called fabric minimum
in advance. This can quickly turn into being very
expensive for the company, especially when the customer doesnt want to buy in a larger quantity.

EXPERT INTERVIEW 2 (appendix 4)

The second interview was conducted with a PR


expert from PRD agency based in Copenhagen.
The main contribution to this project from the
interview was that the customers are very important and many times individuals, e.g. bloggers,
are the fashion answer for people who want to
get inspired in terms of what is trendy now. Next,
brands with showrooms are not for the final customers, but for the stakeholders like magazines,
ambassadors, bloggers, and celebrities. However,
if a brand has a PR agency, the Danish media (e.g.
journalists, bloggers, magazines) are able to look
1 http://veryagency.com/media/ringe.pdf

into the agencys image bank, which is a portfolio


of all styles that are used in an article or magazine.
Further, the best way for a company to get attention is to have a strong marketing and PR strategy.
Moreover, in the fashion industry it is always a
good idea to do something different in order to
get the attention.
Finally, the expert thinks that By Marlene Birger is
a Danish fashion brand for women that has a successful international e-shop and the client could
look up to this webshop.

3.1 TARGET GROUP

All figures are placed in Appendix 2.


Project AJ 117 defines its target group as women
who are mainly between the age of 25-75 years,
mid-class, and living mostly in Europe. Because
of the low brand awareness, 91.7% of the respondents are not familiar with the brand Project A
J117 (fig. 4). The current customers are limited
to retailers webshops. This means that customers
cant buy directly from Project A J117 by themselves. The determined target group is very large,
which is rarely an effective strategy, especially
within the fashion industry, wherein the customer
needs might vary a lot compared to various circles
and ages. 40% of the interviewed people prefer
buying clothing online and in the physical shops,
while almost 15.4 % of them purchase clothes 1-2
times every two months and 27.6 % once per 3
months (Fig. 3). The most used social media platforms are Facebook, Instagram and Snapchat (Fig.
14). Only 15.2% of respondents use mobile devices to purchase clothes on e-commerce websites
(Fig. 5), where the emphasis is on the ease of use,
shipping costs, description of clothing and equipment, price, and large clear pictures (Fig. 10).
Are you familiar with the Danish clothing brand Project
AJ117?

fig. 4

3.2 BEHAVIOR OF MODERN CONSUMERS

The main characteristics of modern consumers


are diversity and unpredictability. Todays consumers design their consumption, so that it reflects
their real identity and lifestyle. Consumers strong
focus on price is also reflected in the widespread
use of cost portals, where consumers can easily
and quickly compare prices on everything from
washing machines to bank charges - and find the
place where they can buy the same product but
cheaper and even if it is elsewhere in the country
or abroad1.
The top three technologies that will improve
the average customers in-store experience are
self-checkout, free Wi-Fi and click and collect (order online, pick up in-store) technology.
Controlling price and reward programs are the
most effective ways to encourage Americans to be
loyal customers. Coupons are also well received.
Millennials are more likely to become loyal shoppers of retailers, also who are able to provide order
history and have the ability to predict other items
that they might want to purchase2.

3.3 INDUSTRY TRENDS

One important focus in the fashion e-retail turns


around the fact that more users browse the web
on mobile than on desktop these days. Google
announced lately that having a mobile optimized web will have now a serious importance in
the search results of a page ranking3. Therefore,
e-retailers have to adjust to this trend or fear
losing customers. Secondly, the social shopping is
gaining ground: people want to share theirs and
investigate others shopping experiences. In the
era of Instagram, fashion companies have to allocate time to be active there and dive in where their
customers are, e.g., to social buying-selling platform Depop, or similar4. Providing customized
solutions, like the Fitanalytics, helps to provide
1 https://www.danskerhverv.dk/MinBranche/handel/
Forbrugerpolitik/tendenserogundersoegelser/Sider/portraetafdenmoderneforbruger.aspx
2 http://www.retailcustomerexperience.com/news/
omnico-releases-study-on-millennial-shopping-behavior/
3 http://googlewebmastercentral.blogspot.
dk/2015/04/rolling-out-mobile-friendly-update.html
4 http://www.depop.com/

right products to the right people1.

3.4 COMPETITORS AND POSITIONING

cal shops, and it does not influence sales as much


as word of mouth, online store design and physical store placement etc.

In the client brief, Project AJ117 listed their


competitors for both their physical stores and
potential online store. The group has divided these
brands into different sections, based on the levels
of impact they have on Project AJ117s market
status.

Showrooms:
By Malene Birger - The brand has 16 showrooms
in different countries, making it the largest showroom distributor on the market.

Current competitors:
By Malene Birger - A large international brand serving more than 40 countries worldwide through
department stores, both online and in their own
physical stores. The price range of this competitor
is significantly higher than Project AJ117 average price, meaning that the competition is set to
medium.

Custommade - Has 15 showrooms, making it the


second largest player on the showroom scale.

Baum Pferdgarten - Founded in 1999, targeting


with own specific design for older customers than
does Project AJ117.
Custommade - Entered the fashion scenery in
2002, which means it has almost the same seniority as the client. Furthermore, their average price is
similar to the one of the client, making the competition higher.
Day Birger Mikkelsen - The brand was established
in 1997, making it as the brand with most experience and seniority on the market. The competition
is high due to the price range and collection size.
When it comes to online stores, all above mentioned competitors have their own webshops. This
means that their competitiveness is strong on the
market right now, but it gives also Project AJ117
the possibility to come out stronger and better,
since they can study their competitors and come
up with a new design and features which competitors have not taken into consideration yet.
Each designer has their own showroom, making
the competition level mediocre because these days
most designer stores have showrooms in their lo1 https://www.fitanalytics.com/

Baum Pferdgarten - Has 13 showrooms.

Day Birger Mikkelsen - has currently 11 showrooms placed in 11 different countries worldwide.
The difference in showrooms counted is rather
small, making the competition level mediocre.
Also the actual visual appearance of each showroom is more important than the number of showrooms.

3.5 CSR

CSR stands for corporate social responsibility,


and classifies as the responsibility of enterprises
for their impacts on society2. The importance of
having a good image as a brand has always been
significant, but since there is today so much focus
on the environment, human resources and similar areas - CSR has become more important than
ever. Due to the wide information available on the
Internet, it is extremely easy to figure out whether
or not a company has good CSR reputation, which
can ultimately affect the potential customers
choice in purchasing of product from a certain
brand.
Apart from providing a fast delivery, one of the
reasons why Project AJ 117 has chosen to put
their production in Italy is because the country
is under the law and regulations of the European
Union. Some examples of their CSR is limited
water spilling, good working conditions, no heavy
metals use and approved dying materials that do
not harm the environment.
2 http://www.social-economy-training.eu/index.
php/m-news-events/m-vet-eco-eu-news/72-new-eu-csr-policy?showall=&start=1

Another important case that the client outlined


is that they have a policy towards animals and
fur - e.g. how animals are being raised, handled
etc. This is very important to emphasize, because
many people worldwide are against animal cruelty or using fur from certain species where some
people will immediately stay away from a brand,
if they find out that they buy their materials from
companies that does not have a proper policy towards animal handling.
In the solution part the CSR information about
the client should be incorporated in order to
strengthen the brand, and create a positive image
towards it.

3.6 CUSTOMER JOURNEY (appendix 5)


3.7 BUSINESS MODEL CANVAS

The Business Model Canvas can best be described


through nine building blocks that show the logic
of how Project AJ 117 intends to create value for
female customers and make money. The nine
blocks cover the four main business areas: customers, offer, infrastructure, and financial viability1.
See BMC Map in appendix 6.
1. Customer Segment: Project AJ 117 business
model targets a niche market, which consists of
a segment of middle-class women from 25 years
and above, desiring to buy clothes made in Europe. These clothes combine the best of Scandinavian design traditions and simplicity with the Italian
workmanship and finishes.
2. Value Proposition: As in the fashion industry,
design is particularly important part of the value
proposition created by Project AJ 117. Additionally, the brand Project AJ 117 wants be perceived by
women as a high-quality brand emphasizing on
state of mind. Project AJ 117 also states that not
2 styles are 100% identical, which demonstrates
the uniqueness of each item2.
3. Channels: Project AJ 117 could soon reach its
customers through the new international e-shop
1
Osterwalder, A. & Pigneur, Y. (2010) Business Model Generation
2 http://www.project-aj117.com/care/

site, which is currently not built yet. At this moment retailers and agents are the main channels
for reaching clients customers internationally (e.g.
rikkesolberg.dk, magasin.dk, bahne.dk, fashionbyemma.dk, serafine.dk, madammy.dk, perfectlybasics.nl). These channels have five distinct
phases, awareness that raised by Project AJ 117;
evaluation about how Project AJ 117 customers
evaluate the brand; purchase; delivery of clothing
and after sales, which provides post-purchase
customer support, e.g. free returns.
4. Customer Relationships: Project AJ 117 aims
first to maintain already existing relationships
with customers and through more awareness
the company could acquire new customers, and
finally the client can boost sales by upselling. This
can be done through automated services and in
the future also through the co-creation, like for
example the Japanese company Muji, which has
proved that many of its most successful products
have been the result of its move towards co-designing with customers3. Muji often responses to
customer feedback from the companys Internet
service. This means that Project AJ 117 can engage
women to assist with the design of new in clothing
items. Moreover, the client could engage customers even through social media like Facebook
by letting them vote for their favorite items as at
this moment there is only Instagram available for
customers.
5. Revenue Streams: The client aims for loyalty and
repeated purchases by women who associate with
the brand through cool quality clothing made in
Europe. Revenue streams are supported by customer-focused culture and Fitanalytics4, which can
help keep the return rate as low as possible in the
future.
6. Key Resources: The key resources of Project AJ
117 can be categorised into physical resources
(warehouse, showroom), intellectual resources
(brand, partnerships with wholesalers, retailers
and agents), human resources (designers and
knowledgeable sales force) and financial resources.
3
Volberda et al (2011) Strategic Management
4 https://www.fitanalytics.com/

7. Key Activities: Key activities must reach international markets where Project AJ is already selling
and maintain customer relationships with the
brand through created awareness. Production is
the key activity, as Project AJ 117 design, let make,
and deliver in quality clothing items. Another key
activity are merchandising and marketing.
8. Key Partners: This block represents the network
of suppliers, retailers and partners like agents that
all make the Project AJ 117 business model work.
For instance, long-term manufacturer partnership in Italy ensures production of high quality
clothing items. Thus, there are some cross-border
challenges in order to have and gain the right
agents. On the other side, some of the motivations
for partnerships would be optimization and economy, or reduction of risk and uncertainty.
9. Cost Structure: The last building block contains
the most important costs incurred within the
Project AJ 117 business model. The clients business is value-driven, as it is crucial that the Italian
workmanship and finishings are of a high quality
in order to offer women luxurious clothing items.
Other costs will include salaries, rents, stock commitment costs, costs through current high return
rate, add-costs and freight costs.
Finally, by looking at the business model pattern,
Project AJ 117 can best use the open business
mode1l as the company can create and capture
value by systematically collaborating with outside
partners like manufacturers or retailers.

4.0 INSIGHTS
CMS

A Content Management System (CMS) is a system


that makes web pages. CMS is used to publish and
manage websites, for example with texts, pictures,
newsletters, news, video, etc. CMS allows the user
to adapt the site for years to come, without having
special experience in the coding of websites.
1
Osterwalder, A. and Pigneurs, Y. (2010) Business
Model Generation

Design and location of content can be adjusted,


modified and published very fast, compared to
having to code it from the scratch. Furthermore, it
is possible to tailor the system and to meet individual needs. This could be an advantage when
differentiating on a competitive market like the
fashion market. There is a lot of different CMSs
on the market. Some of the most popular ones are
WordPress, Joomla! And Drupal2.
Choosing the right CMS system for an e-commerce web shop from the start is very important, as
it can be time consuming to change the system.
Especially if it is a big company with a lot of different products. Choosing the one that fits companys needs is done on several criterias, such as
business size, product size and range, etc. Project
AJ117 is already using WordPress to manage their
website, which is optimal since it works with most
point-of-sale systems (POS).

POS SYSTEM

A point-of-sale (POS) system is a computerized


network operated by a main computer and linked
to several checkout terminals3. A POS system
enables the user to calculate when there is a need
to reorder, and analyzes inventory levels on an
item-by-item basis. It updates right at the moment when a purchase is done, so the inventory
records are always up to date. This minimizes risks
along the way when keeping track of products and
inventory.
Since WordPress hasnt any integrated POS system, Project AJ 117 will need to facilitate their
existing site with another provider of a POS
system. There is a lot of different platforms to
choose from and WordPress is working well with
many4.

WOOCOMMERCE

WooCommerce is a free WordPress plugin with


a high number of users. It has been downloaded
2 http://www.version2.dk/artikel/open-source-cmssystem-gratis-33154
3 http://www.entrepreneur.com/encyclopedia/pointof-sale-pos-system
4 http://www.softwareadvice.com/retail/

3,2 million times1, which means there is a large


community of users to learn from and share ideas
with. It also increases the likelihood for developers to create new extensions for WooCommerce
since it is so popular. The popularity is due to
the user-friendly interface and it provides the
user with many options to customize the shop
according to their specific needs. It is possible to
get started with the system without having much
knowledge about the technical part, and users can
easily categorize products, add different sizes and
colours or fix prices, etc.

WooCommerce offers many different themes all of


which can be customized and the platform offers
a lot of possibilities for the user, such as tracking
orders, update delivery statuses or change the
shipping and tax options so it fits with the right
country.
Another very important tool in WooCommerce
is analytics, which allows the user to keep track
with the websites statistics. In the analytics tool it
is possible to see individual customer behaviour,
total sales and sales of specific products etc. Most
of the statistics are shown via graphs, which make
them nice and understandable.

PAYMENT SYSTEMS

When managing an e-shop, Project AJ 117 will


also need a system to handle the checkout payment options. There is a long list of different
providers that all offer different opportunities.
And there is a long list of of course pros and cons
to them as well. First of all, it is important that the
solution works well together with the chosen CMS
system. Knowing in which country to sell, is also
an important factor as some providers for instance
dont allow payments via DanKort. In that case
it may be preferable use more than 1 provider of
payment systems. According to FDIH, 84% of
customers prefer payment by card as opposed to
1 http://baltimoredrew.com/why-woocommerce-wordpress-ecommerce/

bank transfer in 20122. The same is the case in


our survey (Appendix 1), where it is 80% of the
participants who prefer credit card payment. Since
Project AJ 117 is a Danish brand, they have many
Danish customers. Therefore, the company needs
a system that enables Danish people to pay with
DanKort, but also allows other payment options,
so they wont lose customers by not providing the
right option.
As a payment solution provider Epay is recommended for Project AJ 117. Epay is one of the cheapest options and it is easy to integrate and easy to
use for both their customers and Project AJ 117.
Epay has made an effort to focus on security and
reliance. This is contributing to create trust from
the customer towards Project AJ 117 and it helps
customers to feel safe when shopping at Project
AJ 117. The monthly fee for Epay is DKK 150 and
that includes 500 transactions a month. If Project
AJ 117 have more transaction it is of course possible to buy more.
The company NETS is the only one offering Dankort payment option, so Project AJ 117 will need
to make an agreement with NETS. To offer international payment cards, Teller is recommended
by NETS. Teller and NETS used to be the same
company but are now working together which
makes it more convenient in many ways. NETS
costs DKK 1000 a year and Teller is DKK 1200 per
year. This combination with QuickPay, NETS and
Teller allows Project AJ 117 to offer Dankort and
international payment cards for DKK 4000 a year,
excluding signup fees and card transactions.

SUB CONCLUSION

To facilitate Project AJ 117s need for an e-commerce solution, WooCommerce is suitable and
recommended as the right platform. It is free and
easy to implement on the existing website, and
it will be an advantage that it is a very popular
and user-friendly platform. The user-friendliness
enables Project AJ 117 to manage it in-house and
quickly categorize products and add sales prices,
etc.
2
FIDH: 2012 Dansk e-handelsanalyse, page 31:
Payment by card is preferred. https://www.yumpu.com/en/
document/view/29831739/danish-e-commerce-survey-fdih

10

WooCommerce will also provide Project AJ 117


with analytics, which can be used in order to
maintain current and future partnerships with
retailers. And since it is free, the only thing Project AJ 117 need to invest in is time. The recommended payment system is a combination of Epay,
NETS and Teller with a cost of DKK 4000 a year.

5.0 STRATEGY, CONCEPT DESCRIPTION


Based on the information that the group gathered
from the client and the additional research, the
concept has been divided into two separate, but
complementing parts: e-commerce solution and
communication strategy with retailers.

E-COMMERCE SOLUTION

As the group found out, most successful fashion


brands sell their clothes to wholesalers and operate at the same time with a self-managed webshop.
Project AJ 117 is currently lacking the latter, for
which reason our main focus is on establishing a
successful business-to-consumer webshop from
scratch. This will help to create awareness about
the brand inside-out, and add an additional flow
of money to the business.
The group believes that poor traffic acquisition
was the main reason why Project AJ 117 webshop
did not take off in 2011. Therefore, the new shop
should be inexpensive to implement and operate
with, which will leave more money every month
to be invested in traffic acquisition. Also, the
group calculated that the upper limit of products
for the soon-to-be webshop will be 500 pieces,
at least in the first years. This is why it is recommend to use the WordPress based e-commerce
solution WooCommerce. Since WordPress is the
current content management system for Project
AJ 117, WooCommerce will be simple to integrate, and moreover, the solution is completely free
and suits perfectly for shops with low volumes. A
password protected version of the very same shop
can be used for wholesale customers, which makes
it easy to handle both B2C and B2B in the same
environment, costless.
The shop will be optimized for mobiles and tab-

lets, whereas for the client is still expected that


main customers will complete their purchases on
desktop version. Very strong focus is on SEO, as
the current website is lacking performance in this
area. Implementing SSL, taking advantage of all
on-site SEO opportunities and investing in SEM
for certain keywords, especially for the brand
name itself, will already ensure decent monthly
traffic to the shop.
The new B2C web-shop will create competition
in the market: Project AJ117 current retailers
might see the e-shop as a threat to their business.
Therefore, the group has created an easy to follow,
step-by-step communication messages to use with
the retailers. This shows that both sides Project
AJ117 as well as retailers will gain positive impact from the proposed e-commerce solution.
1. More awareness means more money.

The web-shop, together with social me

dia and word-of-mouth, will get hold of

more people and reach to a larger

segment out in the market. Therefore,

the sales volumes are expected to go up,

which will create profit to both Project

AJ 117 and retailers as well.
2. Invaluable data will be shared with you.

Implementing Google Analytics or other

customer insight tools to the web-shop

will bring a lot of data about the custo

mers and their behavior. For example,

different shopping behaviors in

differentgeographical areas or age

groups, will be part of that. Then,

the retailers can optimize and strategize

their business even better as well.
3. We direct people from our webshop to your
store.

Project AJ 117 could present the availa

bility of every product in each retailers

brick-and-mortar store. This creates

more value to the customers, since it

will give them the opportunity to decide

where to buy, whether online or offline

store. Both the web-shop and retailers
11

will gain from that, since it works as


cross-promotion tool.

5.1 SUPPLY CHAIN MANAGEMENT


SCM upstream - b2b

Since Project AJ 117 consists of 2 companies working together, they both have their role in the company setup. To get a better overview Copenhagen
Jade takes care of the following: design, sourcing,
production, inbound logistics and branding. CPH
Fashion Pool takes care of sales, administration,
warehousing, outbound logistics and customer
service.
When retailers pre-order products from Project AJ
117 for their stores, it takes roughly 6 months from
ordering it, producing it and then arriving in their
stores. Since Project AJ 117 has their production
in Italy and their warehouse in Germany, they can
minimize transport costs and time, compared to
having production in China or similar. Furthermore they have outsourced their warehouse handling,
which takes away warehouse management, transportation etc. and makes them able to put more
focus on their design, branding and getting their
products sold.
When retailers place orders, there is a chance some
of them will cancel an order or change certain
pieces of their order, there will of course be some
items that goes to waste. This is usually extremely
hard to resell unless you have a webshop. However, it requires a high work load, but highest profit
potential.

SCM downstream - b2c

As stated, CPH Fashion Pool mostly takes care


of the downstream SCM. This is means that they
are in position of influencing customers directly
through sales and customer service. As Project AJ
117 currently only has physical stores, creating an
online store would mean that they would enter a
new B2C market and would have to expand their
current supply chain. Due to restrictions from the
client, this was all the data we could collect about
their supply chain management.

5.2 MULTI-CHANNEL

Multi-channel marketing is a strategy where you


target potential customer through different channels both offline and online. This can be printed
media, websites, social media, physical shops,
events, smartphones, apps etc. A multi-channel
strategy makes it easier for a company to reach
a customer on a channel of their liking. If the
customer has the opportunity to research about a
product on for instance social media before purchasing, it is much more likely that the customer
will make the purchase. In the clothing sectors
multi-channel customers spend, on average, 82%
more than single-channel customers1.
A multi-channel customer is more engaged and
better informed about the brand. If a potential
customer has seen some Projects AJ 117 products
in a shop and thereafter makes a related search
online, then visit the web shop or one of the social
media channels; this customer is more likely to buy
the products. The customer journey for a multi-channel customer is shown in appendix 5.
When talking social media platforms, the group
recommend Project AJ 117 to be active on Facebook and Instagram. Project AJ 117 newly created
an Instagram profile, but do not post that frequently. To get people to know the brand and increase awareness we will recommend making daily
relevant updates. Additionally, it is recommended
that Project AJ 117 makes a Facebook page. This
will give customers much greater opportunities to
interact with the company, which will contribute
to the multi-channel customer journey and in that
way increase revenue.

5.3 THE WEBSHOP

Seeing the opportunity to share all the data, which


the company can collect through the webshop
and share with retailer customers, so they do not
destroy their B2B clients business, but enhances
it through closer interaction built on the collected
data and sharing this knowledge about customers.
Therefore, the group decided to use Wordpress as
CMS.
1 http://www.business2community.com/consumer-marketing/why-do-multi-channel-consumers-buy-more-0575693

12

Themes are easy implementable, and Woocommerce shop feature is free and can be installed as
a plugin. The group has chosen a theme called
Blaszok that is customized so it look like a lookbook which is appealing to both consumers and
retailers. (See appendix 9, 10, 11) Further, it has
been added some extra features via the plugins-section in Wordpress in order to customize the
webshop even more to fit Project AJ 117s needs.

SUB CONCLUSION

Most successful fashion brands sell their clothes


to wholesalers and operate at the same time with
a self-managed webshop. Our solution are created
due to the fact that it has to appeal to both consumers and retailers customers. Projects Aj 117 need
to increase their brand awareness on social media
platforms like instagram and facebook which will
contribute to the multi-channel customer journey
and in that way increase revenue.

6.0 KPIS FOR PROJECT AJ 117

Key performance indicators (KPIs) are goals that


helps a company to achieve success. Monitoring
them will help to identify the progress toward
sales, marketing, and customer service goals.

A performance indicator is a measurement of data
that is used to improve performance relative to a
goal. As an example, a goal could be to increase
webshop conversion by 2% in the next year. Relative to this goal, a performance indicator could be
the number of new visitors the site receives daily
or the device that visitors are using when visiting
Project AJ 117s homepage. KPIs are precise measurements that shows if a business is progressing
toward its goal or not.

Relevant KPIs have been created for Project AJ
117 in order to help them grow their business
in the b2c market and creating brand awareness
towards consumers.

Attract 3500 unique visitors to the webshop in
the next year.
-Use Google Analytics to measure which channels are most effective - Measure which social
content have the highest click through rate too.

A/B test (wishlist, contests, discounts, informational content)


- Use nich tag descriptions to rank higher on
google
- Provide users with informational content on
facebook to increase the
- track open rate on email marketing and number
of followers

Increase the total number of retailers by 20%
through online sales in the next year and attrac
B2C customers.
- Reward loyal retailers and customers to increase
the number of returning visitors
- Measure the click through rate on displayed
related products
- collect data from b2c customers that can benefit
the retailers webshops and physical stores.

Recommendations:
- Measure the click through rate on the most sold
products
- Measure local trends or styles people in one area
likes the most, then share the data with the company retailers.

6.1 LAUNCH PLAN AND PLATFORM


CHOICES (appendix 7)
The main focus is e-commerce platform where
B2B and B2C relationships are developed by using
the same platform Wordpress with Woocommerce. Content needs to be prepared before launch,
which includes professional pictures that entice
the users, and descriptions of the items.
In order to create e-commerce solution available
and filled with content, it should be considered
having professional hosting client. Users are only
patient about 2 seconds1 of loading time, so to
optimize the webshop is really important and if
the scale of selling products in different countries
will grow it means that external servers needs to
be implemented into solution. Product description needs to fit all the criteria from user perspective so it is easy to read and understand or even
1 https://blog.kissmetrics.com/speed-is-a-killer/

13

better scan the text1. Product description is also


part of the SEO since Google likes unique text and
keywords of the products.

6.2 COMMUNICATION STRATEGY

Link building from: Facebook - Instagram. They


have to create a big consistent network.
Every channel has to be involved in the process
of promotion and then also be part of keeping
the customers. Content is reshared and promoted
within Facebook. Post has to be provided with a
short description or a headline with the mission
to make the receiver feel a desire to explore the
content further and go to attached source link.
Before the webshop launch officially Project AJ
117 needs to create awareness about it on social media. During the e-commerce developing
process the main focus are going to be users and
the communication with them. Project AJ 117
is going to be active on social media during the
campaign and communicate with its consumers
(appendix 7).
Following content flow is suggested:
1. Content such as articles, videos is created by
Project AJ 117 editorials team.
2. Content is published on Facebook or Instagram.
3. Content is reshared and promoted within Facebook. Post has to be provided with a short description or a headline with the mission to make
the receiver feel a desire to explore the content
further and go to attached source link.
4. Users are moved from Facebook to Webshop.
Potential benefits are:

a. Project AJ 117- increased traffic,

users have chance to explore the websi

te further and generate even more

traffic or can become a regular custo

mer or newsletter subscriber, users are

getting familiar with webshop visual
identity.

b. Instagram- visitor can potentially

become a new follower or leave a like.

1
Steve Krug, Dont make me think (24 Dec, 2013),
page number.

Facebook
The smart way to use Facebook have a lot of
positives sides not only sharing the new post to
attract new customers to webshop. Facebook also
contains a powerful tool which allows to collect
information about users behaviour and track information such as demographics. The information
could be used in the future to prepare new marketing strategy.
Instagram
Instagram is one of the most popular platforms in
the fashion industry. It is recommended to interact with the content and people under hashtags
related to the industry. Comments, likes, replies,
follows should be given from webshop profile. In
result, people will like/follow/comment back. If
such an activity is maintained consistently Instagram reach and network is expanding fast.

7.0 BUDGET
see Appendix 8

8.0 CONCLUSION

The rise of mobile and e-commerce is changing


the todays fashion industry and therefore it is
time to catch up for many brands. The young Danish brand Project AJ 117 could benefit from a
modern e-commerce solution through its own international webstore, whilst maintaining existing
retail customers.
As stated previously in this report, poor traffic
acquisition and marketing have harmed the success of their first webshop that didnt create value
neither for customers nor sufficient revenues for
the company. Since the supply chain management
for the B2C market at the moment only exists offline or in the form of physical stores, entering the
market of online shopping will give Project AJ 117
a new possibility of generating revenues. Furthermore, it has been revealed that the client did not
engage with their customers directly through
social media platforms such as Facebook or Instagram. Thus this is highly recommended as social
networks and apps are not to be neglected in the
rise of e-commerce. This is also because shoppers
tend to seek out user-generated online content
14

before making any purchase. Instagram, fashion


and lifestyle blogs, and even new emerging apps
like Depop, a social buying and selling platform,
are used along the customer journey ahead of
completing a purchase.
Concluding on this, in the future Project AJ 117
can create more awareness by moving from the
multi-channel approach to the omni-channel
perspective with the potential of increasing sales
indirectly. Additionally, retailers would benefit
from the customer information gathered through
the Project AJ 117 webshop. A successful Danish
brand with an online presence and to look up to is
By Malene Birger as this brand has already overcome several challenges of having an international
e-shop. At the end, the most applicable marketing
strategy can be one of the clients biggest strengths.
Its vital for the client to know and understand the
female customers and by clarifying the age-range,
using exploration elements in the online shopping
experience together with an unique brand image state of mind, made in Europe or Italian
workmanship - Project AJ 117 can win a significant market share over their competitors both
nationally and internationally, and women will
not only wish, but need to have their high-quality clothes.

9. PROJECT MANAGEMENT BREAKDOWN

Project management provides help to accomplish


the defined goal set. To develop a good and solid
concept it is important that the project is structured and has a plan that we as a group can easily
follow. The group started out by assigning the
project manager role so someone would keep an
overview of the project status.

Each day was started off with a short meeting to
determine the process of everyone the day before
and what to do doing after the meeting. This helped everyone stay focused and keep an overview
of the task.

9.1 Project Management Communication

In order to have an efficient work atmosphere, all

group members had to have contact with each


other at all times.

Facebook.com: The group created a Facebook
group, for people to talk and post thoughts and
ideas regarding the project. Facebook was also
used for communicating if any members where
members were late or sick.

Google Drive: To ensure that all group members
had access to all project documents at all times,
the group made a Google Drive folder. This ensured that all group members could constantly review and edit the project in real-time, while being
accessed by everyone at the same time.

9.2 CONCEPT DEVELOPMENT


PROCESS

After doing the insight part of the project of


gathering information, brainstorming followed
and it all ended up with a lot of small ideas, that
the group combined into a package. Some ideas
has been scrapped along the way as the group felt
it became too crowded with the amount of things
to be focusing on.

9.3 GROUP REFLECTIONS ON


DEVELOPMENT PROCESS

The group workflow went really smooth all the


way throughout the project. It has been managed
to have a good time, while keeping focus on the
task at hand, and pretty quickly has been decided
where the group wanted to take the project. The
selection of project management tools worked
really well and kept everyone gathered around the
project and up to speed with what was happening.
Generally the process went good, and the group
didnt experience any issues working together.

References list

Osterwalder, A. & Pigneur, Y. (2010) Business


Model Generation, 1st edition, Hoboken New
Jersey, John Wiley & Sons, Inc.
Volberda et al (2011) Strategic Management;
Competitiveness and Globalization, Concepts and
Cases, 9th edition, Hampshire UK, Cengage Learning EMEA, p. 133-170
15

Appendix
Appendix 1: Online Survey

16

17

18

Appendix 2:
Online survey results

19

20

21

22

Appendix 3:
Expert interview 1
Interview with PR expert (PRD Agency based in Copenhagen)
Questions:
1. Who sets the trends, e.g. in DK?
2. How about pay trend agencies?
3. About show rooms, do have brands with e-shops showroom (both online and offline) for retailers?
4. Do you know a successful Danish brand that has an e-shop (international also) and the e-shop havent
harm the relationship with retailers? - here I was thinking about Ganni???
5. What is your recommendation for a successful international (mainly in Europe) e-shop?
Answers:
Pascal:
1. Personally, I think also the consumers do. Also, magazines, blogs etc. that are the fashion answer of many
people to get inspired.
2. I dont understand the question?
3. Brands with show rooms are not for the final consumer but the stakeholders e.g. magazines, ambassadors,
bloggers and celebs. IF the brand is having a PR agency, the Danish media (journalists, bloggers, magazines,
etc.) are able to look in the Agencys image bank, which is a portifolio of all the styles - e.g. to be used in an
article or the magazine.
4. I would use By Malene Birger
5. Make sure to have a strong marketing/PR strategy in order to get attention.
ok, thank you, just last think how to get attention??? The 2nd question was about, if you are familiar with pay
trend agencies?
Pascal: I am not familiar with pay trend agencies. How to get attention? Well.. That is a whole marketing/
PR strategy - you know how much it takes. BUT... In the fashion industry, it is always good to do something
different to get attention.
ok, thanks a lot, and last thing are you familiar with online showrooms?
Pascal: Not really. The online thing I know, is the image bank.
ok, how it works and its also for customers?
Pascal: I just described it in question 3, its not for customers.
ok, the same, thank you

23

Appendix 4:
Expert interview 2
Stine Radicke - Fitting model with Storm and marie & five units - PBA in textile conveys, craft and design.
What is your background in the fashion industry?
I have been employed in Bestseller, MUUSE, Storm and Marie and Five units over the last five years, has
contributed to the fit clothes make constructions, corrections of clothing. Everything behind before products
reach the store.
2. Who do you see as the trendsetters in the fashion industry?
The major fashion brands such as pay trend agencies to find the next big trend in the coming seasons. Then,
smaller brands follow the big fashion houses and magazines. They use thereby the same type of colors, styles
with a few variations so they can not be accused of copying.
3. When have established Storm and Marie their e-shop and own flagship store?
They started with wholesale sales of their clothing collections. But went quickly to also have their own sales
channels. the owners have had a good network to draw upon.
By having their own shops they get much bigger profit, they had to hired more people to manage it because
it is grow relatively large in a short time. But it also provides a positive engagement to the company and the
brand.
They are still selling as a wholesaler of their own clothes to stores worldwide.
4. How do they advertise to wholesale customers?
They do Lookbooks with what comes, they have a selling like running around.
Storm and marie starts one year before making the collections as they are put into production and the fit,
then the sales samples as their salesperson drives around to the dealers, so they can see the product before
they order.
The clothing styles in the collection the salesperson isnt succeeded to sell. Will Storm and Marie sell in their
own shop and e-shop.
5. Do they use social media?
Yes they use Facebook and Instagram.
6. Why their clothes produced?
It comes from Asia and the delivery time are 2 months
7. Do they handle own product and warehouse in house?
All styles comes in stock which the seller sell is to stores, it who do not sell removed from the collection.
8. Can you explain the steps that are from design to product?
24

The designer draws a design drawing and gives it to the constructor who gets all measurements that are
sent to the manufacturer. Next comes a sample item home which is addressed to be corrected. Then this item
becomes the sale sample that the salesperson can show the retailers.
9. How important can the real name have for a clothing company?
Its easier to have a good name and a bad product than vice versa. But it is not impossible if you manage to
hit your target.
10. Project aj117 says that they retail customers choose a different color than the original designed piece of
clothing after the first production. What is your view on this?
This, I think sounds a little dangerous, too often must buy a minimum of fabric. This can quickly turn out to
be very expensive for the company, if the customer wants a large enough quantity.
11. What is your attitude to clothes are on offer?
I would point facing the negotiators that the clothes should not be on offer as the ones clothes to look cheap
out. so rather keep private stock sales or do as storm and marie has a backyard shop where they sell the sales
and collection samples.

25

Appendix 5:
Custommer journey

26

Appendix 6:

BMC - Business Model Canvas

Designed for: Project AJ 117

Casual and cool look, quality of

Value
Propositions
used materials, timeless brand
the same time.

that feels luxurious and in at

Design
Brand/Status

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Types of resources
Physical: warehouse, logistics
infrastructure
Intellectual: AJ 117 brand, data
Human: designers, sales force
Financial: cash, credit

Key Resources

Production
Merchandising
Marketing

Key Activities

The Business Model Canvas


Key Partners
Network of suppliers,
manufacturer,
wholesalers, retailers
and agents.
Motivations for
partnerships
Optimization and
economy Reduction of
risk and uncertainty

Cost Structure
Value-driven (focused on
value creation, premium
value proposition)
Other costs: salaries,
rents, stock commitment
costs, costs through
current high return rate,
ad-costs and freight costs.

DesigneD by: Strategyzer AG


The makers of Business Model Generation and Strategyzer

Designed by: Group 6, KEA Copenhagen

Customer
Relationships
Automated
Services
Co-creation

Channels

Project AJ 117 website


Wholesalers, retailers
and agents.

Channel phases
1. Awareness
2. Evaluation
Purchase
Delivery
After sales
3.

4.

5.

Revenue Streams
Cool and luxurious
fashion items
manufactured in
Italy priced through
the real-timemarket.

Date: 12/05/15

Customer
Segments

Women above 25 +
worldwide with specific
need for quality clothing
made in Europe, mid class

Niche
Market

Version: 1

strategyzer.com

27

Appendix 7:
Launch plan

28

Appendix 8:
Budget

29

Appendix 9:
frontpage

30

Appendix 10:
Shop

31

Appendix 11:
Product page

32