BUYING PLAN SPRING 2016
INÉS ARIMANY ALEJANDRA CRESPO
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1 ABOUT SIZE AND SCOPE
swot
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TARGET MARKET
COMPETITOR ANALYSIS marketing strategy
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PRODUCT CATEGORY
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BUYING PLAN
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CONT—
ABOUT
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., MISSION
BARNEYS NEW YORK IS A LUXURY SPECIALITY RETAILER KNOWN FOR HAVING THE MOST DESCERNING PRODUCTS FROM THE WORLD’S BEST DESIGNERS. KNOWN FOR BEING EXCLUSIVE AND UNIQUE, BARNEYS NEW YORK GIVES EXCEPTIONAL CUSTOMER EXPERIENCE AND IS CONSTANTLY SEARCHING FOR MODERNITY THROUGH UPCOMING DESIGNERS.
T
I
M
E 1980
1923
The new logo for Barney’s is created by the advertising visionary Ivan Chermayeff. Barney’s establishes itself as a store where women and men go for innovative design. CO-OP is born.
Barney Pressman opens its first 500square store on 7th Avenue and 17th Street specialized in men’s discount store.
1960 Fred Pessman transforms Barney’s into a luxury store destination. During this time, they collaborate with top designers such as Givenchy and Pierre Cardin. A new concept is born: men’s designer clothing. Later on in 1970, women’s designer clothing will appear..They strart to introduce foreign designers.
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1990 Barney’s opens stores across the country and expands into Japan. In 1993, they open their largest store in New York City.
1986 Opens the legendary , still-talked 17th street store for women. This store was equipped with a restaurant, hair salon, ecletic designer mix and cheeky windows designed by Simon Dooman, quickly becomes a Wdowntown destination. Barneys advertising campaigns set new standards of creativity in the industry and uses emerging phorgraphers and models.
2000’S Barneys continues to expand with new store locations. In 2011, with CEO’s arrival Mark Lee, Barney’s brand enters a new era of reinvention and innovation by creating original advertising campaigns with promotional partnerships and exclusive collaborations.
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CATEGORIES Women’s and men’s ready-to-wear Accessories Shoes Jewelry Cosmetics Fragrances Home
15 10 5 Stores
Warehouse
Restaurants
TARGET MARKET
The average customer ages are from 25-55 they have a high income or have a high profile financial background status. They are highly educated. They are creative and sophisticated who love to wear cutting-edge pieces. They are innovators and trendsetters “If you are a good person and you work hard, you get to go shopping at Barneys. It’s the decadent reward.” — Sarah Jessica Parker, to Vanity Fair
Elise Wong
International Customer
age: 26 Income: $180,000 anually Hometown: Hong Kong education: PRATT institute alumni occupation: Owns an art gallery Martial status: Single hobbies: Visits NY at least once a month, goes to pilates and loves to visit the MoMa museum. Music: Loves Chet Faker and Florence + The Machine. personality: Confident, open to change, rational decision making. ‘thinker’ she is well educated, professional, has high resources and she is motivated by her knowledge.
Xristos Smith AGE: 31 Income: $320,000 anually Hometown: Rhode Island education: Wharton School of Business occupation: Credit Analyst at JP Morgan Martial status: Engaged hobbies: Crossfit and Boxing Music: Mumford & Sons and Drake Personality: Self motivated, rational, genuine and charismatic ‘achiever’ his goal is to excel both at his job and family. Well balanced. He is motivated by experience.
Olivia Miller
AGE: 44 Income: $245,000 Hometown: Washington DC education: Studied Interior Design, London occupation: Works at Christian Lahoude Martial status: Married hobbies: Goes to SoulCycle and pilates Music: James Taylor, Crosby Still and Genesis Personality: Self motivated, rational, energetic, perfectionist ‘Thinker’ well educated, hard worker,motivated by passion and devoted to her work.
Gibran jones
AGE: 57 Income: $1.2 M Hometown: San Francisco education: Masters in business at BABSON occupation: Owns several enterprises Martial status: Divorced hobbies: Rides his motorcycle, plays squash Music: Eagles, Phil Collins and Jimmy Buffet Personality: Determined, has a strong personality, goal achiever, competitive and hard worker ‘innovator’ independent, individual taste, he always wants to achieve the finest things in life.
S W O T
- Curation of the product -Loyal customers - In-store experience Technology innovation: *Instore iPad check-out, touch screen in restaurants *Customer services: personalization of content to individual’s taste - Responsive design, a state-of-the-art approach to web design - Known for their creative and massive window displays *Saturday night life, 60 years of Chloé, Andy Warhol -Original in-store brand positioning - Original advertising campaigns *Such as the “Better than ever” campaign (2015) - Promotional partnerships and exclusive collaborations *Jay Z, Opening Ceremony, Lady GaGa - High presence in social media (Instagram, Twitter, Facebook) *Large audience in their blog “The Window” now a printed edition
- Confusing in-store brand positioning - Return policy (with tag) within 30 day contrary to competitiors with a flexible return policy -Lack of brand awareness outside of New York
- International expansion - Networking with young, upcoming and new designers - Expansion of Millenials into the luxury market
- Competitive market with a similar target consumer: Saks Fifth Avenue, Bergodorf Goodman, Neiman Marcus - Competitive market with discounts and promotions - Slowdown in the luxury market economy
COMPETITOR ANALYSIS
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bri
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- Founded in 1899, in New York
- Founded in 1898, in New York
- High-end products
- High-end products
- Target: upper class
- High level of customer loyalty
- Devoted customers
- Strong multi-channel platform
- Strong menswear department
- Highly innovative and creative
- Renowned for their services, staff and personal shopping
- Overseas shipping to 101 countries (12 day-shipping)
- Promotional methods (sales)
- Substantial shoe store, it has its own zip code 10022-SHOE - Promotional methods (sales)
- Owners are known by their product selection - Collaboration with brands and designers - Interested in emerging homegrown designers - Extensive collection of variety of brands, including up-and-coming designers - Adopts a multi national approach to retail - Creative environment, stores are highly original - Strong online and social media presence - Hosts events
-Strong luxury brand portfolio + has own private lable - Own BergdorfGoodman - Multi-channel retail formats - Customer loyalty -InCircle customer rewards program - Superior customer service - Premium segment shoppers
- Under the umbrella of Macy’s Inc. - Easy to navigate and personalize online site - Lower price points that appeal their customers - Home to a handfull of restaurants - Fun, fresh and hip ambiance - Targets younger generations, mostly college students
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- Well rounded company in terms of product assortmen
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- Quality luxury items - Uses Google free tools to run customised AdWord campaigns - Expansion online with customers in 190 international markets and 70% of all sales are now coming from outside the UK - Luxury experience - Over 400 established and emerging designers - Offers 24/7 advise through MyStyle, a dedicated fashionconcierge team - Affiliates program - Established as the world’s premier luxury fashion destination - Exclusive designer merchandise with high product quality and brand recognition - Reaches audience over six million thorugh their global multi-channel ecosystem - Magazine EDIT, PORTER magazine - Express woldwide shipping to more than 170 countries and same day delivery to Manhattan, London and Hong Kong. - Luxurious packaging - Easy returns and exchanges
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marketing strategy
AD cAMPAIGNS
the window OUR TOWN Created in honor of the new Chelsea flagship, the Spring 2016 campaign captures the vibrancy and diversity of Barneys hometown with a series of images and short films lensed by Bruce Weber. BETTER THAN EVER For our Spring 2015 campaign, Bruce Weber shoot some of the most iconic women from the past four decades of fashion. Titled Better Than Ever, the campaign is the latest in a series of collaborations between Barneys and Weber. BROTHERS, SISTERS, SONS & DAUGHTERS The Spring 2014 Campaign, was a success featuring transgender individuals with diverse experiences and unique personal stories. Original advertising campaigns.
DIGITAL Provides articles such as latest trends in beauty, fashion spreads, travel, food, wellness and current events. PRINT Barneys Blog is now printed.
technology collaboration IN-STORE Embracing in-store technologies at its newly opened Chelsea flagship. Launch iBeacon technology that allows to share multimedia content it also allows customers to create a personalized experience. They also have a free cashier station , as it is enabled with Apple Pay. ONLINE Omnichannel personalization platform to deliver personalized recommendations of content to users.
RUSSEL WESTBROOK Collaboration with Russell Westbrook Oklahoma City Thunder player. Creating a mens line inspired by the Thunder player.
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PRODUCT CATEGORY
G R O O
M I N G
BUYING PLAN
Corporate
Fall 2016 Plan Net Sales, Fall 2016
18684.0
Est. Net Sales, Fall 2015
17300.0
Plan % Last Year:
8.00%
Average Stock, Retail:
10691.8
Inventory Turnover:
1.7
Planned Reductions, $:
934.2
Reductions % Sales: (000's)
Plan IMU %:
5% GROOMING | 6 MONTH BUYING PLAN 56%
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FALL 2016
Net Sales
2242.1
2615.8
2242.1
4484.2
5231.5
1868.4
18684.0
% Fall
12%
14%
12%
24%
28%
10%
100%
Plan BOM Stock
10313.6
10724.6
10089.4
12107.2
13078.8
9528.8
10691.8
Stock / Sales Ratio
4.6
4.1
4.5
2.7
2.5
5.1
Plan EOM Stock
10724.6
10089.4
12107.2
13078.8
9528.8
9000.0
Plan Reductions
149.5
158.8
158.8
158.8
158.8
149.5
934.2
% Fall
16.00%
17.00%
17.00%
17.00%
17.00%
16.00%
100.00%
Purchases, Retail
2802.6
2139.3
4418.8
5614.5
1840.4
1489.0
18304.6
Purchases, Cost
1233.1
941.3
1944.3
2470.4
809.8
655.2
8054.0
CHELSEA, NY
Fall 2016 Plan Net Sales, Fall 2016
1870.0
Est. Net Sales, Fall 2015
0.0
Plan % Last Year:
0.00%
Average Stock, Retail:
925.3
Inventory Turnover:
2.0
Planned Reductions, $:
93.5
Reductions % Sales:
5.00%
Plan IMU %:
56.00% CHELSEA STORE 6 MONTH BUYING PLAN
(000's) AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FALL 2016
Net Sales
224.4
261.8
224.4
448.8
523.6
187.0
1870.0
% Fall
12.00%
14.00%
12.00%
24.00%
28.00%
10.00%
100.00%
Plan BOM Stock
852.7
890.1
852.7
1077.1
1151.9
822.8
925.3
Stock / Sales Ratio
3.8
3.4
3.8
2.4
2.2
4.4
Plan EOM Stock
890.1
852.7
1077.1
1151.9
822.8
830.0
Plan Reductions
15.0
15.9
15.9
15.9
15.9
15.0
93.5
% Fall
16.00%
17.00%
17.00%
17.00%
17.00%
16.00%
100.00%
Purchases, Retail
276.8
240.3
464.7
539.5
210.4
209.2
1940.8
Purchases, Cost
121.8
105.7
204.5
237.4
92.6
92.0
853.9
LAS VEGAS, NV
Fall 2016 Plan Net Sales, Fall 2016
1500.4
Est. Net Sales, Fall 2015
1364.0
Plan % Last Year:
10.00%
Average Stock, Retail:
776.2
Inventory Turnover:
1.9
Planned Reductions, $:
75.0
Reductions % Sales:
5.00%
Plan IMU %:
56.00% Fall 2016 6 Month Buying Plan
(000's) AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FALL 2016
Net Sales
180.0
210.1
180.0
285.1
345.1
300.1
1500.4
% Fall
12.00%
14.00%
12.00%
19.00%
23.00%
20.00%
100.00%
Plan BOM Stock
684.2
714.2
684.2
798.2
862.7
840.2
776.2
Stock / Sales Ratio
3.8
3.4
3.8
2.8
2.5
2.8
Plan EOM Stock
714.2
684.2
798.2
862.7
840.2
850.0
Plan Reductions
12.0
12.8
12.8
12.8
12.8
12.0
75.0
% Fall
16.00%
17.00%
17.00%
17.00%
17.00%
16.00%
100.00%
Purchases, Retail
222.1
192.8
306.8
362.3
335.3
321.9
1741.2
Purchases, Cost
97.7
84.8
135.0
159.4
147.5
141.6
766.1
ASSORTMENT PLAN
BARNEY’S NEW YORK GROOMING AND FRAGRANCE PLANNED PURCHASES, RETAIL:
$18304.6
%
$
Classifications
Total
Purchases
SHAVING
15%
2745.7
HAIR CARE
10%
1830.5
SKIN CARE
10%
1830.5
FRAGRANCE
65%
11898.0
100%
%
$
Fragances
Total
Purchases
ESCENTRIC MOLECULES
2%
238.0
FRÉDÉRIC MALLE
6%
713.9
BOIS
10%
1189.8
BYREDO
7%
832.9
ACQUA DI PARMA
6%
713.9
TOM FORD
4%
475.9
OTHER
65%
7733.7
100%
11898.0
conclusion
The Barneys New York buying plan for Fall 2016 grooming and fragrance department anticipates a sales opportunity, where there is potential to over- achieve the sales plan. This has to do with the fact that mens grooming is a constantly increasing section of the market. The grooming market prediction is set at 20% increase by the end of the year. Now, this industry is expanding all across the globe, and is estimated to bring in $21 billion in revenue in 2016. There is a paradigm shift in men’s overall perception of grooming and self-care. Men are not only take pride in maintaining their appearance, but also enjoy these tasks as pleasurable leisurely activities they are more than willing to spend money on.