TEAM A - ITMG 1B – MKTG 1102

Prepared for:

Morgan Westcott

November 20, 2015

Presented by: Andrew Anderson

A00925997Daniil Kim

A00969142Diego Gonzalez

A00961462Kyle Mitchell

A00967954

TABLE OF CONTENTS

Navdeep Hehar (Nav)A00954116

Rahul Sandhu

A00968360Tsz Chiu Sum (Mickey)

A00854893

Problem Statement _____________________________________________________________________________ 1

Key Findings and Assumptions ________________________________________________________________ 2

Environmental Analysis ________________________________________________________________________ 3

Target Market ___________________________________________________________________________________ 7

Competitive Analysis ___________________________________________________________________________ 8

Alternatives ____________________________________________________________________________________ 10

Solution _________________________________________________________________________________________13

Implementation Plan __________________________________________________________________________ 15

Course Concepts _______________________________________________________________________________ 17

References _____________________________________________________________________________________ 18

Appendix _______________________________________________________________________________________ 21

PROBLEM STATEMENT

OVERVIEW OF SITUATIONStella & Dot has experienced rapid growth over the past 12 years, reaching over 30,000 Stylists globally and over $200 million in sales. Stella & Dot is looking to go public within the next five years, and is aiming to double their sales revenue prior to going public. Without compromising the core integrity of the company, which is empowering and inspiring women, Stella & Dot will need to find a way to expand their current distribution plan (Wilson, 2015).

PROBLEM STATEMENTThe problem statement that our team identified is, “How can Stella & Dot modify or adjust its current distribution strategy and achieve $500 million in revenue by 2021?”

1

KEY FINDINGS AND ASSUMPTIONS

Through research, our team found the following key findings and made the following assumptions:

KEY FINDINGS Stella & Dot’s standard shipping is $5.95 for 10-day delivery, and its fastest shipping is

$19.95 for 4-day shipping. Shipping for trunk shows work the same as an online purchase (Stella & Dot, 2015)

55% of shoppers who buy online prefer to purchase from a retailer with a physical store than an online store (Forbes, 2014)

62% of females would prefer to buy apparel in store, rather than online (eMarketer, 2015) Stella & Dot’s revenue in 2012 is $200 million (Ernst & Young, 2015), and its revenue in

2013 is $220 million (Los Angeles Times, 2014) 51% of shoppers don’t want to wait to receive their item (Morrison, 2014) Stella & Dot has three companies: Stella & Dot (jewelry and accessories), Ever (skin care),

and Keep (collectives), we chose to focus on Stella & Dot

ASSUMPTIONS Fashion, costume, and specialty jewelry belong to the same classification Movements among specialty jewelry will imitate the fashion market Stella & Dot’s behavior is categorized as an online retailer as its shipping procedures,

shipping prices, and trunk shows frequency does not fill the gap for in-store availability and experience

Trunk shows are classified as a personalized experience towards social selling, and filling the customer needs to try fashion products before buying

2014 revenue for Stella & Dot is $250 million as its growth rate is 13.6% (PrivCo, 2015)

2

ENVIRONMENTAL SCAN

Stella & Dot’s current environmental scan, internal strengths and weaknesses, and external threats and opportunities.

Table 1: SWOT Analysis

Strengths Weaknesses

High growth ratesHighly profitable business modelDirect sales distribution model

No retail outletsCurrent expenses and costsSmall business units

Opportunities ThreatsMultiple unused distribution channels in the USEnvironmentally and socially aware marketGlobal markets: Emerging economies

Counterfeit productsIncreasing labour wagesDangerous chemicals in jewelry

The next section will analyze the Table 1 data in detail.

STRENGTHS

High growth rates

One year growth rate of 13.6% (PrivCo, 2015) Three year growth rate of 12.5% (PrivCo, 2015) Online women’s accessories sales grew 7% to $7.1 billion in the fiscal year ending March

2014 (NPD, 2014) Three out of seven accessories categories have experienced double-digit dollar sales gains

during the March 2014 fiscal year (NPD, 2014)o Bag sales accounting for 24% of the women’s total accessories market, increased

by 17% (NPD, 2014)

Highly profitable business model

Stella & Dot’s revenue has been growing each yearo 2012 $200 million (Ernst & Young, 2015)

o 2013 $220 million (Los Angeles Times, 2014)

o 2014 $250 million (assumption)

3

ENVIRONMENTAL SCAN

Direct sales and distribution

Full-service personalized customer interactiono Stella & Dot can reach customers through social networks and sales

representatives More knowledge about customers’ needs and desires

WEAKNESSES

No retail outlets

Customers cannot try on items and products if there are not any trunk shows Difficulty to return products Specialty jewelers are losing current market share to retailers, wholesalers, and

manufacturers (Gaille, 2013)

Expenses and costs

Stella & Dot pay a 20% to 30% commission to their Stylists (PrivCo, 2015) Training representatives is an expensive process (New Era Consulting, 2015) Sales costs for design and materials

o Use of sterling silver and semi-precious stones (Stella & Dot, 2015)

o Stella & Dot manufactures and designs its products (Stella & Dot, 2015)

o Maintaining and managing website and inventory for online store

Small business units

Jewelry expense for households is typically $167 annually (ESRI, 2015) Stella & Dot sells costume jewelry not fine jewelry

o Costume jewelry is 12% of the market share, while fine jewelry is 88% of the

market share for jewelry (International Euromonitor, 2014)

4

ENVIRONMENTAL SCAN

OPPORTUNITIES

Multiple unused distribution channels in the U.S.

Currently, Stella & Dot only does online sales and peer-to-peer sales (Womens Wear Daily, 2011)

Stella & Dot does not use any retail outlets or physical stores (PrivCo, 2014)

Environmentally and socially aware market

Today, social and political concerns are serious factors considered when purchasing fine jewelry (Polygon, 2014)

Gem mining is a major concern in environmental studies; conflict minerals (gold), and blood diamonds are one of the main issues considered by consumers (Source Intelligence,2014)

Fashion jewelry is mainly produced by artificially-crafted materials like acrylic, sterling silver, brass, rhinestones, etc., which brings the new wave of social and environmentally friendly customers

Global market: Emerging economies

Emerging economies are expected to grow two to three times faster than developed nations (Forbes, 2015)

High GPD per capita, retail sales increasing year by year, and continuous growth (CNBC, 2014)

Emerging economies include Argentina, Brazil, Chile, Colombia, México, Indonesia, etc. (Forbes, 2015)

THREATS

Counterfeit products

Customers look for low cost alternatives The number of IPR seizures reached 23,140 in 2014 (CBP Public Affairs, 2015) Counterfeits not only deprive revenues for the company but also dilute its brand image

(Marketline, 2015)

5

ENVIRONMENTAL SCAN

Increasing Labour Wages

The labor cost for companies is risingo Tight labour markets, increased overtime, government mandated increases in

minimum wages, and a higher proportion of full-time employees are increasing labour costs (Marketline, 2015)

Higher cost of living is increasing the rates of wages across the countryo Wage rate in the US, which remained at $5.15 per hour since 1998, increased to

$5.85 per hour in 2008, increased to $6.55 per hour in 2009, and to $7.25 per hour in 2010 (Marketline, 2015)

o See Appendix B for the minimum wage increases in the past year in different

states Increasing wages can reduce the profit margin

Dangerous Chemicals

Research from the Ecology Center found the lead, cadmium, chromium, and mercury levels are higher than recommended, in a sample from three retailer’s fashion jewelry (Daily Mail, 2012)

Fast spread of communication can stop customers from purchasing products, as they will link Stella and Dot’s jewelry with the chemical founds in the fashion jewelry

6

TARGET MARKET

Stella & Dot’s primary market is middle-aged American Caucasian women. In order to further expand Stella & Dot’s well established direct sales model, we will need to expand current reach and become more accessible to the normal consumer.

GEOGRAPHICStella & Dot should focus on the US market, trying to capture the 20 main cities for retailing (Forbes, 2010), see Appendix A for listed cities.

DEMOGRAPHICThe main demographic for jewelry and apparel is Caucasian women in the age range of 35 and 55 years. The individuals in this market have an average income of $78,000 and spend on average of $750 per year between jewelry and apparel ( U.S. Bureau of Labor Statistics, 2012).

PSYCHOGRAPHICOut of the identified market, 32% prefer to shop via methods that are not online (PwC, 2014). The reason for using retail locations is the desire to receive product immediately, avoid shipping costs, and the ability to physically handle the product before purchasing (PwC, 2014).

MARKET VALUESStella & Dot’s core concept of empowering and inspiring women should remain intact to be socially responsible. The solution must not negatively impact the current distribution method of direct sales through Stylists.

MARKET SIZEUtilizing the total population of Caucasian women between 35 and 55 years, which is 40 million women, and taking away the online segment, leaves a potential market of 8.96 million (Census Bureau, 2010). In order to accomplish a revenue of $500 million by 2021, Stella & Dot will need to acquire at least 6,700 women.

7

COMPETITIVE ANALYSIS

The competition Stella & Dot faces is both direct and indirect distribution channels within the jewelry and apparel market.

DIRECT COMPETITORDirect competitors are companies that are competing directly with Stella & Dot, and their current distribution model.

Table 2: Stella & Dot’s Top 5 Direct Competitors

Direct Competitor

Chloe + Isabel Lia Sophia

Silpada Designs Origami Owl

Jewels by Park Lane Inc.

Most Expensive Item(USD)

$188 $118 $329 $54 $769

Least Expensive Item(USD)

$18 $3 $3.50 $5 $4

Median Price (USD)

$72 $89 $89 $22 $95

Revenue(USD)

$0.36 million$121.9 million

$164 million $250 million $179.9 million

Market Share(%) 0.01% 4.3% 5.5% 8.3% 6%

Distribution Strategy

Online + Personal Merchandiser

Online Outlet + Designer (Closing)

Online + Personal Representative

Online + Personal Designer

Online + Personal Representative

As seen in Table 2, we are establishing direct competitors as the companies that sell fashion jewelry and base their distribution strategy in direct selling and online retail.

Origami Owl has the greatest share of the market, targeting their segment based on a lower price strategy and Jewels by Park Lane has the highest prices.

8

COMPETITIVE ANALYSIS

INDIRECT COMPETITORFine jewelry is more than half the market of purchased jewelry with 36.6 billion items (Golan, 2015). Fine jewelry is still an option for customers to consider while buying jewelry.

Table 3: Stella & Dot’s Top 5 Indirect Competitors

Tiffany Zales Kay Blue Nile HelzbergDistribution Strategy

Online + Retail

Online + Retail

Online + Retail

Online Online + Retail

Sales (USD) $1,805 million

$1,888 million

$4,209 million

$488 million $692 million

Main Product

Rings Diamonds Rings Diamonds Diamonds

Market Share

5.4% 5.6% 13% 1.4% 1.9%

In Table 3, we can see overall revenue in fine jewelry is approximately 9 times greater than fashion jewelry. Kay earns the most revenue, in comparison to other competitors.

STELLA & DOTStella & Dot stands close to Origami Owl with an 8.3% share with $250 million in revenue (as we assumed before) but presents a higher value product.

Stella & Dot’s Stylist have a better performance per person, as 30,000 generate almost the same revenue as Origami Owl’s team of 50,000 designers (Forbes, 2014).

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ALTERNATIVES

Alternative 1 – Indirect Distribution

Alternative 1 is to completely re-haul Stella & Dot’s current distribution model from direct sales through Stylists to well-established brands and retailers such as Macy’s and Nordstrom.

ADVANTAGES Refocus on production of products Reduce amount of interactions Stella & Dot needs to manage Easier to manage while scaling revenue growth

DISADVANTAGES Less control of the representation of Stella & Dot’s products Alienates the Stylists and current customer base Completely revamping a business model is a highly risky strategy

OVERVIEWFor our target market, the ease of access to the products, and the more standardized approach to sales is potentially appealing. As stated earlier, 32% of women between the ages of 35-55 do not use the internet when making jewelry purchases (PwC, 2014). By modifying our distribution method and utilizing multiple retail channels, Stella & Dot can expand its production and improve relations by reducing the number of interactions they deal with, to reach their sales goal of $500 million in annual sales.

10

ALTERNATIVES

Alternative 2 – Hybrid Distribution

Alternative 2 is to combine Stella & Dot’s current distribution method with the addition of major retail outlets such as Nordstrom and Macy’s. This allows the target customers, middle-aged Caucasian women, to choose whichever method of purchase is most convenient to them.

ADVANTAGES Adding more distributers, increases potential to capture the full market Potential growth of revenue is very high Provides a physical location for women to go, handle, and try on the product before

committing to a purchase, without having to wait for trunk shows

DISADVANTAGES Balancing channel conflicts when dealing with multiple distributors is very difficult Additional marketing channels are very expensive

o Need to hire staff to manage and maintain the channels

o Need to either provide or accommodate shipping in mass amounts to retail

locations Could potentially harm the income and negatively impact the women Stella & Dot are

trying to empower and inspire

OVERVIEWUsing the current established direct sales distribution model Stella & Dot has, and the indirect distribution of major retail outlets, the company can capture their target market. Current research shows that 32% of women want an alternate method of purchasing products aside from the internet (PwC, 2014). Currently, Stella & Dot only has 3.9% of their sales at fairs, exhibitions, and malls (Direct Sellers Association, 2015). By using these additional channels of distribution, they can increase their revenue to reach their target of a $500 million increase in revenue within the next 5 years.

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ALTERNATIVES

Alternative 3 – Direct Distribution

Alternative 3 is for Stella & Dot to open physical retail outlets using selective distribution and a full personal service. The specialized retail outlets can work side-by-side with the Stylists.

ADVANTAGES 67% of jewelry shoppers prefer buying in-store (PwC, 2014) Full control over service representation since it is operated by Stella & Dot Omni-channel approach for better customer experience

DISADVANTAGES Increased operational expenses due to additional salaries and on-site software Threat of reduced sales for the Stylists Additional distribution channels make inventory management more difficult

OVERVIEWStella & Dot can create retail outlets to allow more sales channels for the customers without harming their Stylists. All distribution and sales will be handled directly by Stella & Dot, allowing complete control over the representation of the brand. This gives the most potential to capture the goal of 67,000 additional customers per year.

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SOLUTION

We recommend Stella & Dot to strategically expand its direct sales model, and open retail stores to capture the interest and appeal to middle-aged American women. Therefore, by adjusting its current distribution strategy, Stella & Dot will achieve $500 million in revenue by 2021.

ARGUMENT Specialty jewelry sales were $33.6 billion in 2014 (Golan, 2015)

o 82% is done in-store (Golan, 2015)o 7% is done through online sales (Golan, 2015)o 10% is done through direct sellers (Ibis World, 2015)

48% of people research online before buying jewelry (PwC, 2014)o 67% will buy in-store compared to 26% online (PwC, 2014)

The main reasons why people chose to buy in-store instead of online:

Figure 1: People Who Purchased In-Store Rather Than Online (PWC, 2014)

As seen in Figure 1, 73% people decided to buy in a physical store over online. Among the top three reasons, avoid to pay for delivery and immediate access to the purchase, are reasons why consumers prefer to buy in a physical store rather than online (PwC, 2014).

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SOLUTION

OBJECTIVES The overall market value is based on the average jewelry sales of $750 annually per

person (BLS Expenditure, 2011) Utilize the new trend of “web rooming”

o 73% of customers will research online before buying in store (PwC, 2014)

Physical stores will help reach 22% of the 35 to 55 year-old Caucasian women, who do not buy jewelry online and prefer in-store shopping for no shipping fees and delivery time (Ibis World, 2015)

o Stella & Dot will capture 1% of their yearly spending in jewelry of $50 million, a market increase of 67,000 women yearly. Achieving the goal of a 100% increase in revenue of $500 million by 2021 (Appendix C)

Having a physical store will lower the 30% return rate (average for the fashion industry) to 20%, by decreasing the poor fit returns (70% of total returns); therefore, decreasing costs (Neasle, 2013)

Physical stores will have an objective to refer to a Stylist, for a fully customized experience and to avoid channel conflict. Hence, it will align with Stella & Dot’s “our mission and our passion for creating flexible entrepreneurship for women” (Herrin, 2014)

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IMPLEMENTATION PLAN

1-2 YEAR1. Use prime retail locations to maximize potential customer traffic2. Design and plan a good layout for retail outlets that represent Stella & Dot’s brand’s goal

of empowering and inspiring women3. Organize the retail sales model to empower the Stylists, use a personalized one-on-one

service, and prevent a negative impact on their job4. Prices will remain the same as the online store5. Introduce a recommendation system, allowing customers that use retail outlets to

recommend their Stylists 6. Stella & Dot products will work by time-based competition7. Physical stores will create a better experience to casual shoppers and customers that

prefer immediate products. Also, it will generate loyalty by recommending Stylists to give more value and personalized experiences to the clients

8. Open 20 pilot stores across large cities in the USA for retailing (Forbes, 2010): Phoenix, AZ Los Angeles, CA San Diego, CA San Francisco, CA San Jose, CA Denver, CO Chicago, IL Indianapolis, IN Jacksonville, FL Boston, MA

Charlotte, NC New York, NY Columbus, OH Philadelphia, PA Nashville, TN Austin, TX Houston, TX San Antonio, TX Dallas, TX Seattle, WA

Refer to Appendix A for cities’ data.

Costs and revenue for 1-2 year implementation plan:

Total opening costs: $30,834 per locationExtra monthly costs: $8,997 per location (additional cost for in-store strategy)Average monthly revenue first two years: $29,761 per storeTotal revenue first two years: $33,600,000

Refer to Appendix C for costs and sales breakdown.

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IMPLEMENTATION PLAN

3-5 YEAR1. Expand to additional retail outlets based off the success of pilot stores2. Long-term goal to have multiple retail locations within each state3. Having nearby retail outlets will allow women to have a fully customized experience. The

referral program allows Stylists to still recommend products to their friends and families and doesn’t impact the current model negatively

4. Open 140 stores across the main cities and malls

Costs and revenue for 3-5 year implementation plan:

Total extra costs yearly (all stores): $1,259,580 (additional cost for in-store strategy)Total revenue yearly (all stores): $260,400,000 Total revenue yearly (Stylists): $412,500,000 (assuming a 13% growth (PrivCo, 2015))Total revenue in 2021: $672,900,000Refer to Appendix C for costs and sales breakdown.

BACKUP PLANIf Stella & Dot does not achieve 100% growth in revenue by 2021, that is $500 million dollars, alternative 2: hybrid distribution will be implemented, supporting our solution.

We will reassess the selective distribution and go for a broader scope of distribution channels. Utilizing both direct and indirect distribution will allow Stella & Dot to reach the maximum amount of customers, thus developing a horizontal marketing system with Nordstrom and J.C. Penny.

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COURSE CONCEPTS

Channel Conflict – Primary goal of our solution is to create an environment for the Stylists and retailer that does not create conflict between the distribution channels.

Customer Value – Main focus while developing the case.

Direct Distribution – Primary alternative and solution is a direct distribution method.

Hybrid Distribution – Second alternative is hybridizing the direct and indirect distribution models.

Indirect Distribution – First alternative is indirect distribution.

Level of Service – Full service is our type of service in direct distribution.

Marketing Mix – Followed the four Ps in the implementation of the solution.

Secondary Research – Used throughout the case using library resources (PrivCo, Business Source Complete), retail surveys, and jewelry statistics.

Selective Distribution – Retail outlets managed and distributed, our primary solution, is a form of selective distribution.

SMART – Guideline to identify the problem to solve.

SWOT Analysis – Environmental scan of the internal strengths and weaknesses as well as the external threats and opportunities of Stella & Dot.

Target Market – Identifying our target market by geographic, demographic, psychographic, and behavioral.

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REFERENCES

U.S. Bureau of Labor Statistics. (2012, September). Consumer Expenditure Survey. Retrieved from U.S. Bureau of Labor Statistics: http://www.bls.gov/cex/2011/Standard/age.pdf

CBP Public Affairs. (2015, April 2). CBP, ICE HSI Report $1.2 Billion in Counterfeit Seizures in 2014. Retrieved 11 18, 2015, from US Customs and Border Protection: http://www.cbp.gov/newsroom/national-media-release/2015-04-02-000000/cbp-ice-hsi-report-12-billion-counterfeit-seizures

Census Bureau. (2010). Age and Sex Composition. Retrieved from United States Census Bureau: http://www.census.gov/prod/cen2010/briefs/c2010br-03.pdf

CNBC. (2014, June 20). 10 Best Emerging Markets for Retail. Retrieved from CNBC: http://www.cnbc.com/2014/06/20/retails-10-best-developing-markets.html?slide=11

Daily Mail. (2012, March 19). Pretty, shiny and a major health risk: How scientists have found high levels of dangerous chemicals in costume jewellery. Retrieved from Daily Mail UK: http://www.dailymail.co.uk/femail/article-2117157/Claires-Forever-21-H-M-costume-jewellery-contains-high-levels-dangerous-chemicals.html

Direct Sellers Association. (2015). Industry Stats. Retrieved from DSA: http://dsa.ca/the-industry/industry-stats/

eMarketer. (2015, August 20). Brick-and-Mortar Remains Best Fit for Apparel Shoppers. Retrieved from eMarketer: http://www.emarketer.com/Article.aspx?R=1012886&ecid=MX1086

Ernst & Young. (2015, July 01). Jessica Herrin, Stella & Dot: Entrepreneurship on her own terms. Retrieved 11 11, 2015, from EY: http://www.ey.com/GL/en/Services/Strategic-Growth-Markets/ey-exceptional-july-december-2015-2-jessica-herrin-stella-and-dot

ESRI. (2015, January 01). Where Are the Big Spenders on Things That Bling? Retrieved 11 10, 2015, from ESRI: http://www.esri.com/data/esri_data/jewelry-map

Forbes. (2010, December 13). America’s 25 Best Cities For Shopping. Retrieved from Forbes: http://www.forbes.com/2010/12/13/best-cities-for-shopping-forbes-woman-time-retail-walmart-sales-tax_slide_1.html

Forbes. (2014, October 22). $250 Million For A 14-Year-Old's Big Idea: Origami Owl. Retrieved from Forbes: http://www.forbes.com/sites/karstenstrauss/2014/10/22/250-million-for-a-14-year-olds-big-idea-origami-owl/

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REFERENCES

Forbes. (2014, July 25). Retail. Retrieved from Forbes: http://www.forbes.com/sites/barbarathau/2014/07/25/report-amazons-got-nothing-on-brick-and-mortar-stores/

Forbes. (2015). Why Invest in Emerging Markets? Retrieved from Forbes.

Gaille, B. (2013, October 26). 14 Jewelry Industry Statistics and Trends. Retrieved 11 10, 2015, from Brandon Gaille Marketing Expert & Blogmaster: http://brandongaille.com/14-jewelry-industry-statistics-and-trends/

Golan, E. (2015, March). The 2014 US Jewelry State of the Market Report. Retrieved from Edahn Golan: http://edahngolan.com/Docs/Edahn_Golan-2015_US_State_of_the_Jewelry_Market.pdf

Herrin, J. (2014, December 11). Stella & Dot's Business Booms, But Will It Go Public? (Bloomerg, Interviewer)

Ibis World. (2015, February). Direct Selling of Jewelry & Accessories in the US: Market Research Report. Retrieved from Ibis World: http://www.ibisworld.com/industry/direct-selling-of-jewelry-accessories.html

International Euromonitor. (2014, November 25). State of the Personal Accessories Market in 2015. Retrieved 11 11, 2015, from LinkedIn: http://www.slideshare.net/Euromonitor/personal-accessories-2015

Los Angeles Times. (2014, February 09). Stella & Dot Founder Saw a Way to Dress Up Direct Sales. Retrieved 11 12, 2015, from LA TImes: http://articles.latimes.com/2014/feb/09/business/la-fi-himi-jessica-herrin-20140209

Marketline. (2015). Avon Products Inc. SWOT Analysis. Marketline.

Miller, R. K. (2006). JEWELRY. In R. K. Miller, Apparel Market Research Handbook (pp. 70-73).

Morrison, K. (2014, November 28). 81% of Shoppers Conduct Online Research Before Buying. Retrieved from Social Times: http://www.adweek.com/socialtimes/81-shoppers-conduct-online-research-making-purchase-infographic/208527

Neasle, E. (2013, May). The Search for Simplicity. Retrieved from SIASTO: https://blog.siasto.com/the-search-for-simplicity-iii

New Era Consulting. (2015). Direct v. Manufacturers’ Representative: How Best to Organize a Sales Team. Retrieved 11 18, 2015, from New Era Consulting: http://www.neweraconsulting.com/direct-v-mfg.htm

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REFERENCES

NPD. (2014, March 27). NPD Reports Online Sales of Women’s Accessories Increased 7 Percent In Otherwise Flat Market. Retrieved 11 09, 2015, from NPD: https://www.npd.com/wps/portal/npd/us/news/press-releases/npd-reports-online-sales-of-womens-accessories-increased-7-percent-in-otherwise-flat-market/

Polygon. (2014, March). Retail Jewelry Industry in the U.S. 2014. Retrieved from Polygon: http://www.polygon.net/jwl/public/documents/resource-center/industry-reports/Retail%20Jewelry%20Industry%20in%20America_Report%202014-PDF-final.pdf

PrivCo. (2014). M&A Deal Report. PrivCo.

PrivCo. (2015). Stella & Dot LLC. Retrieved from PrivCo: http://0-www.privco.com.innopac.lib.bcit.ca/private-company/stella-and-dot

PwC. (2014, October). Total Retail V Survey United States (US). Retrieved from PWC: http://www.pwc.com/us/en/retail-consumer/publications/assets/total-retail-2014-us.pdf

Source Intelligence. (2014). What Are Conflict Minerals. Retrieved from Source Intelligence: http://www.sourceintelligence.com/what-are-conflict-minerals/

Stella & Dot. (2015, January 01). About Us. Retrieved 11 16, 2015, from Stella & Dot: http://www.stelladot.com/about

Stella & Dot. (2015). Birthstone Charms. Retrieved 11 18, 2015, from Stella & Dot: http://www.stelladot.com/shop/en_ca/p/birthstone-charm-sterling-silver

Stella & Dot. (2015, January 01). Trunk Show Faqs. Retrieved 11 14, 2015, from Stella & Dot: http://www.stelladot.com/trunkshow/faqs

Stella & Dot. (2015). US Shipping & Delivery. Retrieved from Stella & Dot: http://www.stelladot.com/help/shipping-rates-us

Wilson, D. (2015). Stella & Dot Case Study. Stella and Dot Distribution Case . Burnaby, British Columbia, Canada: BCIT.

Womens Wear Daily. (2011). Stella & Dot Expand Offer. Retrieved from WWD: http://wwd.com/accessories-news/fashion-scoops/stella-dot-expands-into-family-of-brands-7811877/

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APPENDIX

APPENDIX ATable 4: Top 20 Cities for Retailing (Forbes, 2010)

Cities Retail Locations Shopping Centers Sales Tax Women PopulationPhoenix, AZ 11,992.00 40 9.30% 765,455 Los Angelex, CA 40,170.00 15 9.75% 1,972,290 San Diego, CA 9,948.00 22 8.75% 683,595 San Francisco, CA 14,412.00 9 9.50% 504,845 San Jose, CA 5,421.00 13 9.25% 504,845 Denver, CO 8,476.00 11 7.72% 420,263 Chicago, IL 30,234.00 22 9.75% 331,500 Indianapolis, IN 5,955.00 18 7.00% 438,778 Jacksonville, FL 5,190.00 25 7.00% 439,492 Boston, MA 17,098.00 7 6.25% 341,716 Charlotte, NC 6,225.00 21 8.25% 418,748 New York, NY 75,619.00 9 8.88% 4,332,072 Columbus, OH 5,712.00 32 7.75% 428,010 Philadelphia, PA 20,970.00 29 8.00% 823,786 Nashville, TN 5,955.00 18 7.00% 331,676 Austin, TX 5,347.00 31 8.25% 450,903 Houston, TX 16,938.00 54 8.25% 1,115,271 Dallas, TX 19,069.00 28 8.25% 640,500 San Antonio, TX 5,913.00 41 8.13% 735,589 Seattle, WA 11,549.00 9 8.80% 334,171

APPENDIX BThe minimum wage increases in the past year in different states:

Arizona $7.9 in 2014 to $8.05 in 2015 (Marketline, 2015) Florida $7.93 in 2014 to $8.05 in 2015 (Marketline, 2015) Colorado $8 in 2014 to $8.23 in 2015 (Marketline, 2015) Alaska $7.75 in 2014 to $8.75 in 2015 (Marketline, 2015) Washington $9.32 in 2014 to $9.47 in 2015 (Marketline, 2015) Oregon $9.1 in 2014 to $9.25 in 2015 (Marketline, 2015)

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APPENDIX

APPENDIX C

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35-55 Us Women White women In Store buyers Average spending Total spending Needed Goal Revenue Summary Description40,000,000.00 70% 32% $250,000,000 $286,111.11 Per Store40,000,000.00 28,000,000.00 8,960,000.00 $750 $6,720,000,000 1% $50,000,000 $35,000.00 Per month

22% 66,666.67 People

Sales associates Sales Salary Total Associates Regional Manager Average Rent Utilities Other expenses Total2 $1,760 $3,520 $2,500 $1,877 $300 $800 $8,997

Spread cost 1 year Expense $359,8805 year Expense $1,619,460

Rent and Operation Arrengements Miscellaneous IT Marketing Public Relations Total Costs$4,899 $7,650 $1,560 $6,165 $8,900 $1,670 $30,844

# Stores 2 year 40 $1,400,000.00 $16,800,000.00 $33,600,000.00# Stores 5 year 180 $6,300,000.00 $75,600,000.00 $226,800,000.00

$260,400,000.00Revenue 2021 Stylists 250000000 412500000 $672,900,000.00

OPERATING COSTS

SALES

OPENING COSTS

Table 5: Sales, Operating Costs, and Opening Costs