Group A

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What is ThePAC?

• Subscription Box

- Exclusive to GSOM Reward Members

• Outfit Options for Men & Women

- Style Profile

- Featuring Proprietary Brands

• Sent directly to customers on a quarterly basis

• Packaged with sleek new PacSun image in mind

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Why a subscription box?

• To boost the myGSOM Rewards Program

• To create a stronger consumer-brand relationship

• Proprietary Brand Awareness

• Drive shoppers back to retail stores

1. Growing demand for subscription services in past years2. Appeal of subscription services

myGSOM Integration

● Exclusive to myGSOM members only.

● Offers added benefit of accruing reward points faster.

Customer Interactions

With the Brand

● Giveaways and sweepstakes add a sense of anticipation and excitement.

● Anticipation of receiving a box every quarter and automated subscriptions make ThePAC a part of your life.

● Philanthropy through ME to WE.

Proprietary Brands

● Cost-efficient vehicle for marketing proprietary brands.

● Helps with the alignment of PacSun’s new image.

What’s in ThePAC?

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ThePAC Themes

• ThePAC Quarterly Drop• March - Spring Break• June - Summer Break• September - BTS• December - Holidays

• Quiz Results• Male - Bright/Neutral• Female - Boho/Essentials

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Kick it off for Spring Break!

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Fun, Fun, Fun in the Sun!

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Look Book & Coupon

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ThePAC: Launch Plan

ThePAC Launch Timeline

Month 1 (January)

● Promotion begins via e-mail blast to myGSOM members● Social Media● PacSun website to announce subscription box and pre-order

countdown

Month 2 (February)

● Pre-order begins ● Remains open for one month, or until the 10,000th order ● DC to hire temp work for box 1 execution

Month 3(March)

● Box 1 is shipped to customers the 1st of the month● Customer receives box 1● Exchanges ONLY, must be returned to DC

Month 4(April)

● Deadline to make changes to subscription or unsubscribe is the last day of the month (ex. April 30th)

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Social Media

• Social Media promotion through

Instagram and Snapchat

• Tag PacSun in photos

• pacsun.com/thepac

• #thePAC

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Social Media

• Quarterly Snapchat

teasers

• Sneak peek of what will

be included in ThePAC

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Buying/Planning

• Buying and planning four to five months ahead

• Cancellation deadlines, recurring payments, and pre-orders allow planners and allocators to execute remaining inventory accordingly

• E-commerce DC space to expand by end-of-year 2016

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Finances

• Pricing: $69.95• Wanted to avoid

cannibalising store profits

• COGS: $41.39• Clothing costs• Marketing collateral• DC processing• Shipping• Credit Card Fees

• Exchanges

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Finances

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ProForma

• Forecasted on 10,000 units for the first quarter• Average of 60,000 ecom orders per month• 3% increase each quarter

• Distribution Center:• Manpower• Equipment• Storage space

• Initial Investment: $352,000

Thank You