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Image1: Whistles AW14 Source: The Jade aesthetic, 1 2014..

Table of Contents 04 Introduction 04 Executive Summary 06 Methodology 08 Chapter 1

Brand bring back: The goals established to achieve the projected outcomes by Jane Shepherdson and team through takeover.

24 Chapter 2 Marketing Strategy

44 Chapter 3

Supply Chain and logistics

70 Chapter 4

The brand’s current growth strategies, including product diversification and the internationalisation of the brand.

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Image2: Whistles AW14 Source: The Jade aesthetic, 2014..

86 Chapter 5

Conclusion: Potential growth strategies within next five years.

Apendix 103 106 114 116 118 120 122 124

1, 2, 3, 4, 5, 6, 7, 8,

SWOT PESTEL 7Ps Financial Store observation Questionnaire and analysis Team minutes Ethical clearance 3

Introduction Whistles has been an independent brand since buying-back from Mosaic Fashion group - now Aurora Fashion group in 2008. Sales growth has been up to 24% and £49.3m in January 2013. The success of Whistles is because of the former Topshop brand director Jane Shepherdson taking over CEO position, ever since Jane Shepherdson has taken over CEO, she has reinvented the identity of the brand (Retail Week, 2014). Shepherdson’s arrival also led to a repositioning of Whistles towards a younger target market, which has evidenced very popular among its central market of female professional performance. New ranges of clothing also have been launched such as footwear, limited edition and menswear. Whistles now positions itself as a contemporary brand, which is a bridge between Primark to Prada (The guardian, 204).

Whistles has replaced its whole IT and logistics since the parting way from Aurora Fashion Group and appointed David Mold as logistics director of Whistles.

By contracting with third party logistics provider - Clipper to manage its whole logistics activities and the growth strategy internationally, which including wholesale, e-commerce worldwide and department stores in China. The growth strategy allows Whistles to pursue their international expansion as the business continues to grow its customer base and sales (Bdaily, 2014). Retail Week points out that Whistles is the fastest growing brand in the UK, and will see the potential growth in the future (Retail Week, 2014).

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Executive summary This report has been commissioned to examine the overall business structure from the year 2008 when Jane Shepherdson stepped up as the C.E.O and the brand was relaunched, and develop an understanding of the brand’s potential growth in the next five years. This report is divided into five sections. The first section draws attention to Jane Shepherdson’s journey of moving from Topshop to Whistles. This section also discusses the change in the character and identity of the brand. The next section evaluates the marketing strategies of Whistles through examining its product offers, brand identity, customer loyalty and brand communications. At the end, this section will provide a few recommendations for the brand to enhance consumer loyalty and brand awareness.

The third section will examine the efficiency of supply chain, logistics, development of information technology and the CSR activities of the brand. The next section assesses the growth of the brand in terms of product diversification and internationalisation.

To conclude, this report analyses the financial summary of the brand Whistles, to be able to make recommendations. This study reveals the shortcomings of the brand in the menswear product offerings, brand awareness and customer loyalty. Through the primary research data, it was noted that the brand’s menswear is not as well received and lacks in breadth and depth. Despite the brand receiving encouraging reviews from the press, the primary research reveals the brands customer loyalty needs to be improved.

It is recommended: • The brand must take an honest look at their promises • Consider localising the givebacks • With the menswear market forecasted to grow Whistles must seriously consider further developing their men’s line.

• The brand should add technological features and experiences to the physical locations thus encouraging a more satisfying experience of the modern shoppers, which in turn will lead to better brand awareness and loyalty in the future.

• It is suggested that Whistles could employee Balanced Scorecard model to critically examine its efficiency of supply chain.

Image3 : Stay warm in Whistles. Source: Dominic Alari, 2014.

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Methodology Our team methodology has adapted an Interpretivism philosophy, focusing on a subject that associated with social setting and culture, which in this case is Whistles organisation and its relationship with customers within the UK and outside. The report has been conducted by using both Deductive and Inductive research approaches.

Most of the research has been adapted an Inductive approach by making a range of specific observations from secondary and primary sources and exploring via general observations and a range of theories. Therefore, we have gathered both qualitative and quantitative data through sources including academic literatures, articles, news from magazines, online and newspapers that related to Whistles.

Meanwhile some of the chapters have adopted a Deductive approach which is concerned with developing a hypothesis based on existing theory, and then designing a research strategy to test the hypothesis (Wilson, 2010). Beiske (2007) informs that deductive research approach explores a known theory or phenomenon and tests if that theory is valid in a given circumstances.

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We have used Survey and Action research as our research strategies. We have engaged in the process of planning, action and reflection including having feedback from the project tutor and testing the quality of the questionnaire before distributed. Survey strategy has been chosen as it is the most suitable way for the team to reach the precise demographic and to gather customers’ perspective about the brand within a limited of time. A questionnaire has been conducted, focusing on the consumer’s perspective about Whistles. Quantitative data from the questionnaire has been analysed to compile with qualitative data from secondary sources and store-observation. All of data has been analyzed to critically evaluate the brand’s current strategy that either leads to support or against the hypothesis. Strategic analysis tools have been employed to analyze external and internal factors surrounding Whistles including SWOT Analysis, PESTEL analysis and 7P’s of marketing mix. We have also implemented several business models and theories within each chapter. The results have been used to make recommendations and feedbacks to ensure the success of Whistles in the future.

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Image4: Whistles womenswear AW14. Source: Whistles. com, 2014.

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The goals esta Shepherdson and

Chapter 1 Brand bring back:

ablished to achieve the projected outcomes by Jane d team through takeover.

Author : Radhika Jain 9

Brand bring back

Introduction Introduction: “The product is always the thing that your business hangs on. Get the product right first, then shout about it afterwards.”

Jane Shepherdson. Events/ Two of a Kind: The Business of Fashion., 2014.

This business report concentrates on the middle market British brand Whistles. This chapter is

disintegrated into three main objectives. The first objective will debate on Jane Shepherdson’s ideology to leave home brand Top Shop and her journey through Top Shop, People Tree and Oxfam to Whistles. The identity change of the brand from frills, bows to office wear (The Guardian., 2012). Whistles conquers the ‘middle market’ of British womenswear, the challenges for Shepherdson to overcome. Finally critically evaluating the financial summary of Whistles and its competitors over the past few years and international expansion to define the desired goals during the take-over in 2008.

Further in this section, the objectives mentioned above will be discussed using theories, models, secondary and primary data as tools to evaluate the aims and outcomes of the new management team that was brought in by Jane Shepherdson from Top Shop, during the time of take over.

Founded in the early 1980s by Lucille and Richard Lewin, and since then until the 2008, the brand’s USP had been colourful, quirky and feminine styling with vintage feel and lots of detailing. Whistles was outfitting customers above 50, and the brand had mistook the ‘boho’ trend as a brand identity (The BOF., 2012) but with the arrival of Jane Shepherdson as the new CEO in 2008, the brand story was recreated to be called “effortless”, as said by Shepherdson, J., 2014 in an interview with Fashionista.

Image5: Whistles womenswear AW14. Source: Whistles. com, 2014.

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Methodology An interpretivism philosophy has structured this report to rationalise the rebranding strategy implemented

by Jane Shepherdson, and how has it been evident through its financial status. “Deduction begins with an expected pattern that is tested against observations, whereas induction begins with observations and seeks to find a pattern within them� (Babbie, 2010, p.52). Alternative to deductive approach is inductive approach, and the following table guides the choice of specific approach depending on circumstances:

Table 2. Deductive vs. Inductive research approach.

Source: http://research-methodology.net/research-methodology/research-methodology/deductiveapproach-2/.

So forth, directing it to a deductive approach, in which the evaluation of the study is drawn from secondary data and tested observations. With the combination of appropriate secondary and primary data, an assessment supported by various models and theories will be extended to demonstrate a successful repositioning of the brand as a high-street aspirational brand, also carrying out related online articles, websites and external analysis (SWOT and PESTEL [Appendix]), providing information in support of it. Furthermore, using the mixed methods through a longitudinal time-horizon to examine the financial summary of the retailer brand in the past five years, and finally analysing the projections for potential growth in the next five years.

Keywords: Jane Shepherdson, Re-branding, Finance advances, International expansion.

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RE-INVENTING WHISTLES

Lucille Lewin in 1998 sold the company to Richard Caring, who further sold it to the Icelandic investment group ‘Baugur’, who owned brands like Coast, Karen Millen, Oasis and Hamleys. The store at that time had product lines by designers like Jean Paul Gaultier, Dries Van Noten and John Galliano as well as some in-house collections that were at one point in time sold to wholesale American department stores (CONTI, S., 2008).

Later in 2004 Mosiac Fashions (now Aurora Fashions) acquired the retailer and it was selling in 40 stores across UK, 40 concession stores and online. With the collapse of the Lehman brothers in 2008 (Appendix 2), Jane Shepherdson took-over of the retailer. 20% of the stake was owned by herself and her former Top Shop team and Mosaic kept 49% of the stake. The takeover was initiated by Jane Shepherdson just before the collapse and so the Icelandic bank Glitnir sponsored and supported the team. Months later, the bank collapsed and was nationalized, so its share in Whistles (ten percent) was transferred to Reykjavik (Fashion United., 2012). The fashion chain in 2009, made a major pre-tax loss of £5.1 million on sales of £35.2 million in the year to 31st January 2009. The shareholders were not paid any dividend but, they were supportive and pleased to see the progress that the brand had made and were certain about the brands progress in future (The Guardian., 2010).

Shepherdson had made major implications in different sectors of the brand.

According to Kapferer., 2008, brands do not originate as brands, but as new product or service who has different characteristics.

Fig. 1. Life cycle of a brand as explained

by Kapferer.

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Image6: Whistles womenswear AW14. Source: Whistles. com, 2014.

Table 2. Wansink, B (2000) Brand revitalisation scorecard, Brand Marketing, August, p 78.

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Over the past years, the brand had mistaken the ‘boho’ trend as a brand identity under Dries Van Noten. Jane Shepherdson re-established the brand by changing its identity to an effortless, minimalist and clean brand. She had to make the brand again and to become a brand, it must prove itself as a new product.

Angela Ahrendts the former CEO of Burberry had taken up similar actions to revamp the brand and regain its lost identity of the traditional Burberry check. The above figure clearly illustrates the stages that makes the brand from a tangible entity to an intangible and aspirational entity. With an existing brand that needs re-inventing, a culture already exists, together with a tradition, an attitude and a reputation, often a long-standing one (Olins, W., 2008, pp. 55). A reference to the act undertaken by Shepherdson as she entered the brand could be made to the ‘Wheel of retailing’ (McNair, 1958). This theory explains three stages that are represented in the figure below

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Fig. 3. Wheel of Retailing.

According to the theory, Whistles was at Stage 1- Entry Phase, which the brand should have crossed earlier, but was stagnant. In 2008, implementing the work approach as Top Shop, she brought the brand to the Stage 2- Trading up phase. At this stage the brand had revamped stores, more service like the e-commerce (selling products through ASOS, etc.) at moderate high street prices resulting in higher sales, and high quality products. Her distinctive strategy of revamping has been her career history, for example Top Shop (Appendix 1).

Image7: Boy meets girl. Source: Raspberry, 2015.

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Image8: Jane Shepherdson. Source: Whistles.com, 2014.

TOP SHOP – OXFAM & PEOPLETREE - WHISTLES

As a junior allocator Ms. Jane Shepherdson initiated

During the time between from leaving Top Shop to

her career at Top Shop in 1982. Shepherdson describes

joining Whistles she was getting a lot of offers from brands

the brand Top Shop to be buying ‘Hunza dresses, really

from the UK and US. Of one’s own accord, she joined Oxfam

stretchy disco dresses, clingy, really tasteless’ (The

as a consultant as they were planning to introduce new

Guardian., 2008), but the sales of this product at that time were up to a thousand pieces a week. Later in 1999 when Jane Shepherdson took over as the brand director, the annual profit turnover was £9 million. After being under Shepherdson for six long years the brand in 2005 received an annual profit of £110 million and became a trade sensation. In 2006, Jane Shepherdson resigned from

product lines. Director of trading David McCullough said: “We haven’t done as good job as we keep telling people about the things we sell” (The Guardian., 2007). In 2007 People Tree was the fair trade label where Shepherdson joined as a product adviser and member of the advisory board (Retail Week., 2007). By gaining a view of the supply

the top position of a brand director from Top Shop. As per

base and dealing directly with the suppliers who didn’t

online news reports (The Guardian., 2008; The Telegraph.,

sub-contract, and this was very hassle-free as it was a

2015; BBC News., 2006 to name some) the notice was give

very small business during the take-over. Whistles in its

in to Sir Philip Green right after Kate Moss had been hired

‘our responsibility’ segment states about their values of

to design a collection for Top Shop as Shepherdson was not

fairness, integrity and transparency (whistles.com).

consulted over the decision. But, denying all the rumours it was also stated by her in many interviews that ‘You cannot do the same thing forever’ and she was moving on (BBC News., 2006).

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In a collaboration with Fawcett Society- UK’s leading gender equality and women’s rights charity, Whistles in 2014, had campaigned for women’s right in the labour market, as primarily approached by Elle magazine. For this cause, Whistles had redesigned Elle magazine’s iconic ‘this is what feminist looks like’ t-shirt. The production of the t-shirts took place in the CMT factory, Mauritius. In an audit carried out from 17-20 November, 2014 by SMETA (Sedex Ethical Members Trade Audit), the CMT factory was proved to provide all workers with a pay above than government-mandate minimum wage, increase in pay according to individual skills, and healthy living and working conditions (whistles.co.uk). Jane Shepherdson’s knowledge and involvement with Peopletree would be the reason for Whistles being an ethical high-street brand (Appendix 2).

She says that, ‘I felt it wasn’t right, to be so incredibly successful at the expense of other people.

It crept me, more and more’. (The Guardian., 2008). Alongside being the CEO of Whistles in 2008, she is active as the creative advisor for Oxfam and non-executive director for Peopletree Fair Trade Fashion (Show Studio).

Image9: Whistles womenswear AW14. Source: Whistles. com, 2014.

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Image10: Whistles womenswear AW14. Source: Whistles. com, 2014.

Brand bring back

At present day, the most critical piece of her

As said by a staff member at the St. Christopher’s

part is to build the heading, the stylish, and

Place flagship store, Jane Shepherdson was

what the brand remains for. The Designers and

earlier involved with the production department.

Buying groups make every gathering, and Jane

When she took control of the retailer, there were

Shepherdson continues weighing in with them

many expectations from her as to her excellent

to guarantee that they are all as yet meeting

performance with Top Shop in the previous years.

expectations towards the same vision. They're

David Mold, head of the IT development at Aurora

completely included in what they are doing,

Fashions was recruited to oversee a project that

however she can be objective, and from that

would result in Whistles handling its own IT

position, she can see the state of it – the broad

systems. Time was limited and there were a lot of

view, so to speak. The part likewise includes

goals to achieve, the first step being to link the IT to

settling on choices on where and when to open

logistics. “If you can’t get stock into the warehouse

new stores, both in the UK, and abroad, and

it doesn’t take long for a backlog to develop, and

how best to contribute for what's to come. The

you can’t get the product into the stores” (Retail

Management Team of 2014 consisted of Jane

Week, 2011). Whistles’ success mantra included

Shepherdson herself as the CEO, with two of her

earlier restocking even more than first drops,

former Top Shop marketing and finance directors.

premium price point that makes it aspirational

Jo Farrelly and Keith Wilks were appointed as the

for high-street shoppers, the Duchess influence,

marketing director and finance director at Whistles

online presence on social media (Appendix 1) and

respectively.

the ‘inspiration’ blog (editd.com., whistles success formula proof in data., 2012).

The e-commerce had successfully gone live on the 29th and 30th January in 2011. Whistles worked with a lot of suppliers like Bt Expedite, Retail Assist, Clipper and Vodat. In order to take over the logistics from Aurora Fashions completely, Jane Shepherdson approached Clipper Logistics in 2010. As a business, Clipper has been well known for a range of environmentally sustainable projects and initiatives, and has received a number of environmental awards for their commitment in reducing carbon emissions (clippergroup.co.uk). They would fully provide a great support in goods in, pick and dispatch and, e-commerce, accommodating the brand’s future growth plans. Ross Lee was appointed as the General Manager, alongside whom Mold worked to assist the cutover from Aurora to its Distribution Centre in Milton Keynes (Clipper Group., 2015).

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ACTION OUTGROWTH Jane Shepherdson’s idea of refurbishing the brand could be interconnected to ‘Brand Extension’ (Kapferer., 2008). Choosing where to expand, so what is the market the brand should extend to? The brand had made its early investments in accessories and womenswear fashion, but with a change in identity that resulted in shift of the customer profile from yummy mummies of 50+ to an all-time favourites of among office workers (an age group of 20-50). In 2014, the brand launched its first menswear collection increasing their product offer (Appendix 1 and 2).

Whistles is a brand associated with a lot of history (Appendix 1): a portfolio of stores, an existing place in the market and a client base (SCMP., 2015). But according to Kapfrer., 2008, ‘when the positioning strategies are adopted to revive sharply declining sales, everything possible is done in general to preserve the core values and assets of the brand.

As a results, the measures eventually adopted are uninspiring. It would be preferable to give free rein to energy and creativity during the research phase, even to the point of allowing consumers themselves to later decide whether the proposed new strategy should be changed back to reflect more the brand’s original identity’. International expansion was another evident plan actioned by Jane Shepherdson.

Whistles as recorded in 2014 (Fashion United., 2014) had 50 stand- alone stores in UK and a series of concessions in Amsterdam, Berlin, Munich, Hamburg, Paris, Moscow, Shanghai and Hong Kong. A major concession was opened at Le Printemps, with Le BHV Marais in France with a French website for the local customer (Fashion and Mash., 2014). The next step of expansion was taken to China within department store Lane Crawford, and at Bloomingdale’s flagship at New York’s 59th Street (Appendix 1).

The results of the actions taken to re-brand Whistles resulted in creating its own niche market, but the price points of the products have made it an occasion wear rather than a casual wear (Appendix 1).

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Image11: Whistles womenswear AW14. Source: Whistles. com, 2014.

Fig. 4. Assumptive Brand Positioning map.

Similar aims targeted by different clusters would be called as competitors to each other. Reiss, COS, Ted Baker and Whistles portrays the brand profile as ‘effortless’. The competitors to Whistles, are the brands like Reiss, COS, Ted Baker, and some others would be Oasis, Jigsaw, Warehouse, Karen Miller, French Connection, Coast, Monsoon (Appendix 6). These brands could be competed with Whistles on the basis of the price range, product range (type and colour), target market and market positioning. The results of the primary research has concluded that Reiss with 2.84% on an average is the most preferred brand in terms of brand experience and one of the top competitors, followed by Whistles with 2.80%, COS with 2.24% and Ted Baker with 2.13% (Appendix 6). Some brands to which Whistles look up to, and according to them ‘who is doing it right?’ would be Byredo, Le Labo and Comme des Garcons (YCN., 2014-15. Awards).

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EVALUATION

The finances of the brand from the 2008 to 2014, since the take-over of Jane Shepherdson stated a 60% growth in the turnover (Appendix 4). A constant downfall had been noted in the initial years from 2008-2011, and the brand wasn’t able to set fixed costs as at those stages Whistles was undergoing major changes and setting up systems and services for customer satisfaction. By 2012, a successfully running IT and logistics system resulted the rise in turnover and fixed costs. Regardless of a 5.5% increment in deals the control has fallen by under 2 %.

This shows that the retailer brand is effectively ready to control the boundaries.

On the other hand, the ascent in the account holders is a worry. With venture into global business sector and presentation of menswear there has been a precarious ascent in the account holders. The travel time is much higher for administers market. The figures have bounced in the years 2013 and 2014. Resulting in a higher demand of womenswear of 45% ascertains the brand to have a stand in the market as a womenswear brand and is on the right path to establish itself as a successful menswear brand too. The results and conclusions drawn above are on the basis of secondary data that has been found from the referenced online articles and websites. Some theories and models have also been applied that were suitable according to the content. In terms of brands awareness and appeal among the 4 competitors, Reiss was ranked as first with 2.84%, followed by Whistles with 2.80%, COS with 2.24% and finally Ted Baker with 2.13% (Appendix 4). International expansion has been the success mantra of the brand since the past few years and this could be one of the major reasons for international recognition in the future, for the brand as this would help in increasing the customer base.

Image 12: Whistles Stutterhiem Raincoats. Source: F.TAPE , 2015

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Chapter 2 Marketing Strategy Author : Issaree Chulakasem 24

Image 13: Brand to watch. Source: BoF, 2014.

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Marketing strategy

Keywords : Whistles, Marketing Strategy, Brand Identity, Product offers, Digital marketing strategy, Customer loyalty, Communications

Aims and Objectives This chapter aims to produce an evaluation of the Whistles’ marketing strategy associated with the internationalization of the brand. By examining through its product offers, brand identity, customer’s need, brand communications including multichannel strategy and digital strategy, simultaneously with its promotional activities and primary research on the customer’s perspective to identify its potential problems and to propose a range of solutions and recommendations for the brand to enhance brand awareness and consumer loyalty.

Methodology Adopted an Inductive research approach, this chapter has been conducted through data gathered from secondary sources including news and articles related to Whistles as well as several academic literatures associated with marketing models and multichannel communications to generate overviews of the Whistle’s marketing strategy. Strategic analysis tools have been employed to analyze external and internal factors surrounding Whistles including SWOT Analsis, PESTEL analysis and 7P’s of marketing mix. To generate comprehensive understanding of the evaluations within this chapter, theories including The Three levels of product, The Retail life cycle, AIDA model and Promotional mix have been occupied.

Primary research has been conducted by observing through Whistles’ online channels including Facebook page, Twitter, Instagram and Pinterest to collected data about the brand online engagement comparing with its competitors including Cos, Reiss and Ted Baker.

Due to the limitation of time and access to primary sources, a questionnaire has been conducted to investigate consumer loyalty to the brand. It contained both open-ended and close-ended question forms with multiple choices. The participants are 73 fashion conscious people aged between 20-50 years old. The result has been analysed to generate recommendations for the brand’s marketing strategy to ensure the future success of the company.

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Image14 : Whistles look book SS15 Load Ashbury, 2015

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PRODUCT OFFERS AND BRAND IDENTITY

Whistles has been described as ‘the thinking woman’s fashion brand’ for its mix of contemporary casual and workwear for women. The brand has established its own niche market between high street fashion brands and luxury brands by offering an effortless yet luxurious way of dressing, which has become one of the favorites among female office workers (Telegraph, 2013). The philosophy of Whistles is to keep thing simple, which has been expressed through branding. It has established only one range of clothes and one website globally (Econsultancy, 2014), the logo of the brand is simply black sans serif capital letters on the white background refers to minimal and modern lifestyle.

According to Jane Shepherdson (BOF, 2012), before the time she took over, the brand was targeted an older customer base and she needed to change the brand to reach a younger customer base who has potential to increase the brand’s profit. Therefore, she has shift the brand’s customer demographics to age between 25-45 years old (appendix 3). Whistles was well known for its Womenswear for a period of time and after the brand re-launched in 2008, the product offers and collections have been completely transformed. The product offers has become the mix of well-designed classic pieces alongside with some stylish pieces that were not just for one season yet timeless quality (Whistles. com, 2015). The most famous items of Whistles are signature jumpsuit, cashmere knitwear and printed dress at the price ranges from £95- £500, as shown in 7P’s of marketing mix in Appendix 3.

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Image15 : Brand to watch. Source: BoF, 2014.

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Marketing strategy

The price architecture (figure 1) has been divided into 4 sections: 1. Entry Price point (Lowest Price) begins at £15 to £95 for T-shirt and Accessory 2. Medium Price begins from £95 – £250 for shoes, dress and jumpsuit 3. Premium Price begins from £300 – £600 for dress, jacket and trench coat 4. Top price begins from £600 – £1500 for Long coat and Fur coat

Figure 1: WHISTLES BRAND PRICE ARCHITECTURE.

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Marketing strategy Whistles’ Womenswear consists of a season ready-to-wear collection and a Limited collection premium sub-brand provided from size 6 to 16. The season ready-to-wear collection contains more simple pieces in simple tones in the lowest price range to premium price, while the limited collection features a lot of details in silhouette designing and printing which the price starts from mid-price range to top price range. Store observation, as shown in appendix 5, has shown that the brand has placed its product varies according to local demographic. The limited collection has been displayed only in the Flagship stores, including at Dover Street and Christopher’s place as well as at some others premium department stores such as Selfridges and Harrods, which give the brand an opportunity to showcase the collection to international buyers (Shepherdson, 2012). Meanwhile, the product offers in John Lewis are much simpler like basic knitwear in slightly cheaper price range, from £40 – £150.

The brand was doing well with it Womenswear, however in 2014 Whistles has integrated menswear according to the customers’ feedback. In an interview with Jane Shepherdson with Telegraph in 2013, she has claimed that ‘We have had feedback from customers and their other halves asking why we don’t do menswear.’ The UK menswear market grew by 18% between 2008 and 2013 to reach £12.9 billion in 2013 (Mintel, 2014), shown in PESTLE analysis appendix 2, therefore, It was the most intriguing opportunity for Whistles to move into this market. As with its Womenswear, men’s collection is contemporary casual with simple silhouettes and some sporty looks. However, the price for menswear is slightly cheaper due to the fact that its actual customers are aged between20s to late 30s (Telegraph, 2014).

Emerging menswear is considered as a part of the product diversification strategy which will enable the brand to widen its targets and eventually expand to international markets. As to reach into the profitable menswear market, Kate Ormrod, an analyst at Verdict has suggested that Whistles need to build an appeal to menswear to engaging male customers. Most of the Whistles’ standalones are too small, therefore it is difficult for the ranges to be clearly segmented and stand out in stores. The brand also need to establish editorial content to boost awareness of the ranges and encourage sales as it is one of the marketing objectives (Verdict, 2013). This topic will be discussed further in this report.

Image16: Whistles womenswear. Source: Whistles.com, 2014.

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Marketing strategy

COMMUNICATIONS

Figure 2 is showing The Three levels of product theory of Philip Kotler which demonstrates the levels of benefit that customers will receive when they purchased a product. Apart from the core product benefits, the actual product benefits and augmented product benefits are also essential for the brand to encourage customer loyalty (Blythe, 2005). Whistles clearly have strength in product design, function and quality that are part of the actual product benefits. However, according to SWOT analysis in appendix 1, the brand’s weakness is the lack of brand awareness, within UK itself and internationally.

Hence, it should consider to enhance its ‘brand name’ and ‘the image that appeal to menswear and womenswear’ through communications during the internationalization.

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Marketing strategy

Figure 2: The Three levels of product theory of Philip Kotler

Image17 : Brand to watch. Source: BoF, 2014.

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Marketing strategy

Whistles has implemented 2 main marketing strategies for global expansion, Department store strategy and Digital marketing strategy, ensuring the brand to communicate its message to the right target customers.

Digital marketing – Multichannel communications “I think for us, in a sense, digital marketing is kind the most obvious way forward because we are becoming an international brand and there are no boundaries online. It gets everyone in the same way.” (Jane Shepherdson, 2014) Digital marketing including e-commerce has been playing a vital role for established brands to enter into foreign markets (Moth, 2014). According to an interview of Jane Shepherdson with BOF, she has mentioned that the brand has been using online website to test the markets before actually expands into any country because she doesn’t want to rush.

“I don’t want to make any mistakes and I also want to find out which markets work and which don’t.”

(Businessoffashion, 2012)

Figure 3: WHISTLES retail life cycle

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Marketing strategy

The retail life cycle, as shown in Figure 3, can be used to describe this strategy. Whistles is now in the Introduction phase for its international expansion. Therefore, it need to be careful not to rush into the growth stage. According to Jane, the brand has started with making communications through online channels, learning through feedbacks and not instantly creating localized content that doesn’t reflect well on the brand (Moth, 2014).

PESTLE analysis (appendix 2), has shown that there were ÂŁ10.7billion spent on fashion online in the UK in 2014 (expected to reach ÂŁ19billion by 2019), which has indicated that the online channel was remarkably essential for the fashion retail brands in order to boost their overall sales. These are online channels that Whistles has been using:

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Image18 : Brand to watch. Source: BoF, 2014.

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1. Official website Whitles.com has been designed under a minimal concept match up with the brand’s simple philosophy. Around 20% of the site traffic comes from international visitors but they only account for 12%-15% of total online sales due to the conversion rate (Econsultancy, 2014). Nevertheless, it is not just an ordinary selling website but contains several interesting features such as Look Book, Journal and Inspiring articles. In the 21st Century, lifestyle has a great impact on consumer behaviour and brand preferences. Very often, consumers tend to choose brands that are considered appropriate for their self-image (Sciencedirect.com). Accordingly, Whistles intended to make this site to be its own blog, magazine style homepage sharing lifestyles, stories and ideas from the brand’s perspective to connect with consumers on a more personal level. This strategy seems to capture some attentions from fashion conscious customers, 22.70% of respondents in the questionnaire (appendix 6), said they know about Whistles promotional activities and news of updating products from its official website, whiles 16.35% said they notice it from social networks and magazines. However, 30.32% of the respondents not really know about news from Whistles. The number is remarkably high, marking the brands to improve its communications.

2. Social media Whistles had launched first campaign that collaborated with Garance Dore, a famous French blogger, when expanded into the US and France in 2014. The campaign was called #bellsandwhistles, features women who represent the brand’s DNA, strong, modern and stylish women, dancing, clapping and whistling. Apart from launching the campaigns in Dore’s blog, the shorter version of the film was posted to Instagram and Twitter using hashtag to generate attentions (FashionandMash.com, 2014). On the other hand, according to an observation on Whistles’ social media to comparing with its competitors like Cos, Reiss and Ted Baker, Table 1 has shown that Whistles has not used its own online channels effectively considered from the small number of followers. It has got 35,894 likes on Facebook while Cos and Reiss almost reach 200,000 likes and Ted Baker has reached 354,000 likes, which was ten times more than Whistles. As well as other social media, Whistles got a lot fewer followers than its competitors. Noticeably, this was not occurred mainly from the content within the pages but due to the lack of brand awareness. A primary research in appendix 6, has shown that 95.31% of fashion conscious respondents are not subscribing to any Whistles media channels. This has pointed out that Whistles still need to invest in improving its communications through digital campaigns to generate Word-of-mouth which will increase brand awareness.

Table1 : Number of social media followers of Whistles and competitors Observed on the 7th March 2015

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Marketing strategy

Image19 : Brand to watch. Source: BoF, 2014.

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Issaree Chulakasem

Marketing strategy

Department store strategy Whistles has continued broader expansion by partnering with a number of premium department stores within the UK and international markets, including China, Hong kong, France, USA, Germany and Russia (Wang, 2014). As with the digital strategy, Department store strategy allows the company to test the markets before spending larger capital outlays (BOF, 2014). Moreover, opening stores within the premium department stores can expose the brand to international customers and reach to the right targeted customers (WGSN, 2014), especially office workers who can shop after work due to the longer opening time. According to Jane Shepherdson, Whistles tends to perform better in markets where there is more competition, rather than less, because of the huge demand for contemporary fashion (WGSN, 2014).

Whistles has operated a concession, e-tail and wholesale-led approach to international development which appear to be clever (Retail week, 2014) due to some risks that occurred from cultural differences when entering into a new market. It encompasses language, beliefs, religion and behaviors that shared by the members of a society (Blythe, 2005).

Therefore, it is easier for Whistles to aim for countries with the same psychological proximity with similar cultural aspects, like the US or Europe.

It operates concession model in Europe and the US to control over stock and brand image by itself (Wang, 2014), while maintains a wholesale relationship with Lane Crawford in China and its Russian partners as it still need to take the advice from natives to understand the markets and learn how to communicate effectively.

Issaree Chulakasem

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Promotion mix As mentioned in the previous topic, the lack of brand awareness is the most significant problem of Whistles. The brand tended not to invest in advertising that much but use more of PR and Sales promotions to promote the brand.

PR In general, public relations is about creating favourable images of the brand in the minds of customers. Therefore, it often involves a story or event that brings the brand to the public attention. A news story is more likely to be read than an advertisement, and is more likely to be believed (Blythe, 2005). PR activities often follow AIDA approach, as shown in figure 4, It must get the consumer’s attention (A) and arousing interest (I) or even stimulate desire (D).

Figure4 : AIDA Model In the case of Whistles, the brand once has raised its image and profile when the Duchess of Cambridge Kate Middleton wore Whistles’ dresses to several events, even though according to Jane Shepherdson, in an interview with BOF, has noted that it didn’t effect on the sales that much but it was certainly created word-of-mouth and a lot more people have visited Whistles stores and website since then. The brand has become associated to high society and stimulate consumer’s desire. Whistles should consider more on using celebrity endorsement to generate this kind of effect because it will eventually increase brand’s awareness and sales.

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Sales promotion Recently in March 2015, Whistles has been promoting a sales promotion activity that collaborated with Grazia UK, the magazine that targets the same demographic audience as Whistles, the 25- to 44-year-old urban, upscale, modern women, leading busy lives (campaignlive, 2005).

Customers who buy the magazine will get 25% off for Whistles SS15 collection offered online and in-store. It was one of the short term activities to generate a temporary increase in sales (Blyth, 2005) by driving the desire of customers to take action (the D and A of AIDA). The brand has integrated sales promotion with the advertising in magazine which according to the book ‘Essentials of Marketing’, the combination of the two will lead to the ‘ratchet effect’ which means sales get a rapid boost from discounting promotions and then build gradually over the life of an advertising campaign (Moran, W.T., 1978). However, Whistles should be aware of the results from repeating sales promotions due to the fact that it will become part of the consumer’s expectation as well as discounting on price can damage the brand value.

Image 20: Brand to watch. Source: BoF, 2014.

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Marketing strategy

Customer Loyalty After the brand has re-launched in 2008, most of the

In order to enhance the customers’ experiences,

old customers of Whistles were not happy with Jane

Whistles can consider to integrate technology within

Shepherdson’s decision to overhaul the brand. She has

the product or in the physical store. As shown in the

taken a risk to relinquish the existing customer loyalty

PESTLE analysis (appendix 2), In-store shopping is being

and move to attract younger shoppers instead. Only

developed through innovations that are both creative

one in ten of the old customers still shops there now

and functional. By adding technological features and

(Telegraph, 2013). However, the strategy has paid off

experiences to the physical location, the brand can

well, as like-for-like sales were progressing at double-

encourage a more satisfying experience that meets the

digit rates for a significant part of the year to January

heightened expectations of modern shoppers, and that

2015. Whistles has won strong reviews from the fashion

can also create a brand awareness and brand loyalty in

press for its new style and it has become a favourite

the digital age.

with female office workers, particularly in the creative

The move into menswear seems to be a wise decision

industries (Ruddick, 2013).

while the menswear market is forecast to increase, but

On the other hand, according to the primary research

success is far from guaranteed as a number of higher

(appendix 6), the respondents were asked to rate the

profile retailers have previously failed to move into

overall experience including product, price, service and

the market (Massey, 2014). The respondents of the

in-store environment of Whistles and of its competitors

questionnaire were asked to select the product that they

including Ted Baker, Cos and Reiss. The result shows that

usually shop from Whistles, 45% of respondents choose

Whistles ranks 3rd from these four brands with 12.73%.

womenswear and 31.56% choose accessories, while only

While, 50.91% or equally half of respondents choose

18.15% choose menswear. The percentage shows that

Ted Baker and 25.45% choose Cos. These numbers have

from the customer’s perspective, they still think Whistles

indicated that customers still choose its competitors

as a brand for women more than for men. Therefore,

over the brand when comparing the overall experiences.

Whistles will need to improve a strong image that

Even though the reviews from the press were very good

appeal to men and women, which could set the brand in

and the sale figure is still increasing but the strategy to

a good stead for international expansion in the future.

grow customer’s loyalty still need to be improved.

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Issaree Chulakasem

Image 21: Fashion roundup. Source: sweats and shirts, 2013.

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image22 :Whistles menswear AW14. Source Š 2015 MARKSMAN LIMITED, 2014.

Chapter 3

Supply Chain and Logistics

Author : Meng-Hsi Chin

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Introduction

Historically, Whistles logistics was managed by Aurora Fashion group in sharing equipment with four other brands. Since Whistles has become an independent fashion brand, the IT and logistics functions had to be replaced from former provider Aurora Fashion. The requirements of change include an overhaul of IT infrastructure, logistics, payroll, finance and new warehouse and data centre. David Mold-the former head of IT business development in Aurora Fashion was appointed as IT and logistics director in 2010.

Whistles contracted with Clipper (an logistics firm) to manage the complete logistics activities in 2010. The first mission was working alongside with Whistles to facilitate the cutover from Aurora Fashion to its committed distribution centre in Milton Keynes, and “go live” which includes entirely operational on Goods In, e-commerce and Pick and dispatch. In 2011, Clipper supervises the warehouse that would accommodate the Whistles contract next to an established client. Due to the growing in popularity and increasing demand for the clothing retailers, it has became essentially to find an alternative logistics providers in order to address the flexibility and facilities to help brand’s growth plan in the future (Clipper, 2014).

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Image 23:Whistles menswear AW14. Source © 2015 MARKSMAN LIMITED, 2014.

Executive summary This paper is to critically evaluate the efficiency of Whistles’ supply chain on implementing third parties logistics providers and technology adoption into the supply chain, also critically evaluate the Whistles’ corporate social responsibilities policy in order to generate recommendation for Whistles on supply chain management. Both inductive and deductive approaches have been conducted in this paper to produce the hypothesis model of Whistles supply chain. Literature review and secondary research have been used to develop the model, and evidenced by relevant news and case study. Primary research also has been employed to demonstrate the customer perspectives on customer satisfaction and reverse logistics.

Secondary research is to use supporting the point of view from the author.

In further recommendation, the balanced scorecard model has been introduced to measure the efficiency of supply chain, also suggested multiple strategies for Whistles’ current CSR policy.

Methodology

By conducting both inductive and deductive approach methodology, this paper is aim to develop a hypothesis model of Whistles’ supply chain in further purpose of examining the efficiency of the supply chain management and end customer satisfaction, also critical evaluate the Whistles’ ethical trading policy, Through adopting the existing theories, models and concepts which include supply chain management, third parties logistics and the advanced information technologies adoption to develop an assumptive model of Whistles’ supply chain, also carrying out related articles and news to support hypothesis model. Furthermore, using the quantitative research method to examine the customer satisfaction through questionnaire to demonstrate the efficiency of Whistles’ supply chain management and to generate recommendations for its further development related to supply chain.

Key words: Corporate social responsibilities (CSR), information technology (IT), Value-added, Warehousing, customer satisfaction, reverse logistics, competitive advantage, balanced scorecard model.

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Supply Chain and Logistics

Objective To examine the efficiency of Whistles’ supply chain in customer satisfaction, achieving competitor advantage and implementing CSR policy. Due to the reason that Whistles’ supply chain information is limited so that Whistles’ supply chain is assumed on the knowledge of supply chain management integrates with logistics third parties and advanced information technologies to improve the flow processes and increased customer satisfaction.

In general, supply chain management (SCM) has been defined as an integrative philosophy to manage the flows of total channels from supplier to the ultimate consumer. The concept of SCM is considered as placing between verticallyintegrated system and each channel member that operates individually (Lisa and Martha, 1993). The wider vision of integrated supply chain management (ISCM) has been increasingly adopted by many organizations. The core of ICSM requires coordinating the total flow of physical products from material sourcing, manufacturing to the consumption, also entails the flows of information and funds related with products when they move along in the whole value chain to the final purpose to meet the customers’ needs (Institute of management accounts, 1999).

The ISCM model sees figure 1.

Figure 1, ISCM model: shows the flow of goods, information and funds in supply chain. Source: Institute of management accounts, 1999.

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Meng-Hsi Chin

Supply Chain and Logistics

The rapid changes in business environment have increased the unpredictability and complexity more than before. More and more organizations have adopted the third-party logistics firms (3PLs) in order to address more seamless supply chain operation (Appendix 2 PESTEL-environmental). The 3PLs can make improvement on the logistics processes by allowing the organizations to concentrate on their core capacity that decrease the costs and increase customer satisfaction. 3PLs companies provide services such as rate negotiation, warehousing solution, shipping and auditing (Cheong, 2005).

Figure 2 Three main types of services provided by 3PLs. Sources: Cheong, 2005.

Cheong suggest that there are three main types of services (sees figure2) provided by 3PLs firms: a. Supplier management solution: the 3PLs firms organize the flow of raw material and components from suppliers and offer the manufacturers constant refilling to meet short lead time needs. b. Order fulfillment solution: 3PLs manage the arriving products from manufacturers or brands and deal with picking, packing and delivering from end customers’ orders. c. Reverse logistics solution: 3PLs manage the product returns, repairs, rescues and the feedbacks from customers (Cheong, 2005).

Meng-Hsi Chin

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Furthermore the services that 3PLs providers may also establish the information technology system in order to manage inventory and consumer fulfillment services. LaLonde and Masters (1994) state that information technology system is essential to maintain logistics processes. Information technology deals with most of the activities of routine logistics automatically such as warehousing, distribution and packaging, which allowing managers to concentrate on core competencies and strategies. In addition, information technology such as EOS, POS and EDI could meet the requirements from customers and quick respond to customers’ needs effectively, and the order lead time could be reduced to improve service levels (Rana and Sheikh, 2012) figure3 shows the role of information flow in logistic processes.

Figure 3: the role of information flow in logistic processes.

Source: Rana and Sheikh, 2012.

Supplementary service - value added 3PLs also provide supplementary services in supply chain. Figure 4 shows that from manufacturing to warehousing and distribution, the supplementary service is carried out in the middle. The value-added is generated by the several operations along the supply chain such as assembly and packaging. The value-added services are normally carried out before warehousing and distribution but after manufacturing (Remko, 2000).

Figure 4: Chain context of supplementary third party logistics services transactions. Source: Remko, 2000.

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Globalization and economic liberation are the driving forces for labor rights and corporate social responsibilities. Growing awareness of working condition and social responsibilities has drawn attention to firms. Goods that are produced in developing countries under poor working condition led to dilute firm’s reputation. Thus, firms must have to held responsibilities for labor practice of global suppliers Therefore it is important that firm takes corporate social responsibilities into account to ensure the equity in supply chain operation. The rise of ethical trading and corporate labor

Corporate Social Responsibilities

code has become standard responsibilities to firms in their supply chain management (Barrientos and Smith, 2007).

Through store observation (Appendix 5) in product tags indicate that Whistles’ products have been manufactured in several developing countries such as China, Turkey, Mauritius Lithuanian and India. As corporate social responsibility now is a standard code for firm, it is necessary that Whistles has ensure its ethical trading and labor condition is in fairness.

Image24 : Stay warm in Whistles. Source: Dominic Alari, 2014.

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Supply Chain and Logistics

Image25 :Whistles menswear AW14. Source © 2015 MARKSMAN LIMITED, 2014.

In Whistles’ case, Retail Assist and BT Expedite were

In 2014, Whistles has contracted with Clipper a new

chosen to support supply chain and store solutions.

4 years contract to help the international growth

According to David Mold, Retail Assists and BT expedite

strategy. The contract includes the whole logistics

worked together at Rubicon and Aurora Fashion. Also

processes, handles 120 retail outlet stock destinations,

the platforms of Merret (developed by Retail Assist)

e-commerce worldwide, wholesale, pre-retail services

and BT Fresca (developed by BT Expedite) were already

such as quality control, hanging and steam tunneling

integrated. “We needed specialists with expertise in

to make sure that customers receive the products are

their own fields, and with the ability to integrate with

in perfect condition. Following the recent changes of

other parties” said Mold (Logistics Manager, 2011).

supply chain processes, all garments will now be sent

The Merret supply chain management application is an

to the Clipper facility in flat pack form - Milton Keynes

integrated warehousing and merchandising solutions;

(4-traders, 2014). Whistles partners with suppliers

the Merret application form plays a role in driving

including Retail Assist, BT Expedite and Clipper. The key

the multiple channels businesses forward through

element of whistles supply chain success is by bringing

interfaces to BT Fresca e-commerce of Whistles, BT

all the parties work together closely and getting them

Expedite’s Store6 EPoS in shops of Whistles and store

to coordinate to achieve the success (Retail Week,

system in concessions such as Selfridges, House of

2011).

Fraser, Brown Thomas and John Lewis (Retail Assist, 2011).

In final, by undertaking theories, models, concepts and the articles related with Whistles’ supply chain to create an assumptive model of Whistles’ supply chain to critical evaluate the Whistles’ supply chain efficiency.

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Meng-Hsi Chin

Supply Chain and Logistics Figure 5 Whistles' supply chain model.

Information flow Physical goods flow Fund flow

Reverse logistics

Value- added

Integrated system

Customers Meng-Hsi Chin

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Supply Chain and Logistics

Thrid party logistcs (3PLs)

Logistics traditionally was operated by the firm internally. However the external environment changes has reinvented the traditional logistics activities. More and more firms are considering outsourcing third-party logistics providers to manage the logistics flows. There are two major factors that drive forces behind outsourcing including: globalization of business and Just In Time principles (Appendix 2 - PESTEL). The growth strategy in global market and sourcing material has placed growing demands on the international logistics function. Also Just In Time requires quick respond in delivering and meets the customer requirements. Due to lack of global market knowledge of consumption and infrastructure in destination, which has driven firms to outsource third-party logistics provider, especially in small firm (Sheng, 1998).

Logistics is part of the supply chain process, which implements, plans, and controls the efficient, effective forward and reverse flow of inventory, services and information which between origin and consumption in order to meet the end consumers’ needs. The parities that take over the logistics activities are called third-party logistics (3PLs) providers, which provide transportation service and warehousing services. Recently, 3PLs have extended their services with more various and complicated activities to address satisfying and serving more consumers (Stefansson, 2005).

Logistics play an important role in achieving customers’ satisfaction, Daugherty and others state that logistics activities can be placed in distribution channel in order to the addressing of customer services at competitive cost-levels in the supply chain.

In distribution channel displays can be gathered, delivering can be provided and products can even be met to order (Remko, 2000). Reverse logistics is a reverse flow process that contains the product returns, repairs, rescues and the feedbacks from customers (Cheong, 2005).

According to 4-traders released news, Whistles has contracted with Clipper (3PLs) firms to deal the whole logistics activities including: warehousing, delivering to end customer, worldwide e-commerce, wholesale, pre-retail services such as hanging, packaging and ironing (value-added), returns and feedbacks from customers (reverse logistics) (4-traders, 2014), which directly link to customer satisfaction and reverse logistics in order to achieve seamless supply chain efficiency.

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Meng-Hsi Chin

Image26 :Whistles menswear AW14. Source © 2015 MARKSMAN LIMITED, 2014.

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Supply Chain and Logistics

Also, Warehousing is an important part of logistics activities where products are collected at and ready to be transported to end distribution. There are two other major operations come alongside with warehousing operation: movement and information flow. In another term that frequently used is associated with Distribution Centres. Dawe (1995) has compared warehousing with distribution centres operation, and concluded that the role of distribution centres is much narrower, which including receive and ship as main activities, while warehousing is much broader including: receive, ship, store, pick and pack (Stefansson, 2005).

Richardson (1992) points out that warehousing operation includes marketing, transportation, packaging, distribution, import and export. This is acceptable since 3PLs do have some role in responsible where products are stored, how products are packaged and choosing the best transportation way to the end customers. Also value-added services are carried out in the warehousing operation. Value-added services include assembly and quality control (Sheng, 1998). Customers service and value-added are linked. Customer services could be seen as a way where value is added to the product-service package bought by customer. Value has become the amount that customers are willing to pay for the product-services provided by vendor. The vendor has to make the decision that: will the value-added services make the marginal cost be increased by the marginal revenue it earns (Gattorna and Walters, 1996).

Secondary research has been conducted to demonstrate the value-added service that Clipper (3PLs) provided. The figures below show the Whistles’ financial report to prove the performance of Whistles’ operating cost and profit.

Figure 6 shows the Whistles’ cost of sales from 2010 to 2014. Since Whistles has approach with Third parties logistics firms to manage its whole logistics activities, the value-added services also have been handled. Ever since the Third parties logistics firms have managed the value-added service in the supply chain and logistics flows, the cost of sales has increased since 2010. Gattorna and Walters (1996) explain that value-added services include: Merchandising, inventory management, Market activities and Distribution activities etc. the figure 7 below explains the value-added services and the relation with third parties logistics.

Figure 6: the Whistles’ cost of sales (Appendix4).

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Meng-Hsi Chin

Supply Chain and Logistics

Figure 7 the value-added service. (Source: Gattorna and Walters, 1996)

The value-added service provided by third parties logistics firms seem to have strong performance on Whistles’ Gross profit (Figure 8), which means the value-added services in logistics activities have evidenced the efficiency of third parties logistics firms operating in Whistles’ supply chain.

Figure 8: the Whistles’ Gross profit (Appendix4)..

Meng-Hsi Chin

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However, the customer satisfaction and reverse logistics show the different results on performance. Primary research has been conducted to demonstrate the efficiency of Third party logistics operating in logistical activities, which related to customer satisfaction and reverse logistics.

Through questionnaire is aim to approach customers’ perspective on packaging, on time delivery and refund (Figure 9, 10 and 11), the result shows that customers are not actually feel satisfied on its packaging and on time delivery. On the packaging, majority of customers are rating on scale 3.

The average scale is 2.68. On the on time delivery, 38% of customers have received their order on time, but 40% of customers have not received their order on time. In addition the refund service has indicated that more serious problem on reverse logistics. 51% of customers have not received their refund on time. As the results, it could be seemed that the Third parties logistics providers have not been very efficient on customer satisfaction.

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Image27:Whistles menswear AW14. Source Š 2015 MARKSMAN LIMITED, 2014.

Figure 9

Figure 10

Figure 11

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Image28 :Whistles menswear AW14. Source © 2015 MARKSMAN LIMITED, 2014.

Supply Chain and Logistics

Information Technology (IT)

Technology adoption in logistics activities to achieve competitive advantage and efficiency Earlier mentioned that 3PLs providers may also develop information technology system in order to manage inventory and consumer fulfillment service. Information technology system is essential to maintain logistics process such as shipment consolidation, warehouse management, carrier selection, product returns and order fulfillment (Appendix 2 -PESTEL). Logistics has changed from passive role and supportive role to a primary role. It could benefit firms to achieve competitive advantage by delivering consumers with greater services, decreasing cost and increasing capability. Information technology has become essential to support logistics activities.

The Global Logistics Research Team (1995)

The usage of information technology in handling the

has announced that information technology is supply chain has drawn attention in the recent year. one of seven important components for logistics And how information technology can offer a sustained activities integration and global performance. competitive advantage for a firm has become one Information technology can help run routine of the key issues in supply chain management. By logistics activities automatically, hence allowing embedding information technology in supply chain managers to concentrate on strategic issues and core can facilitate the development of supply chain competencies. Sanders and Premus (2002) further capabilities, which include four scopes: information demonstrate that firms have implemented high excha nge, internal firm ac tivit y integration, level of information technology have shown higher coordination and supply chain responsiveness. Every achievement on performance, such as cost control, scope reflects a capability to perform cross-functional cycle time reduction, quality improvement and as well as internal and external organizational customer services enhanced (see as Lai et al, 2006).

activities. In addition, the nature of supply chain

Also, information technology can improve logistics capabilities that allow firms to respond and learn to activities’ efficiency and flexibility such as distribution environment changes in order to achieve competitive is supported by the used of information technology advantage (Wu et al, 2005).

(Lai et al, 2006).

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Supply Chain and Logistics

In Whistles’ case, Retail Assists and BT expedite as third parties logistics were selected to provide information technology system for Whistle’s supply chain. The platforms of Merret (developed by Retail Assist) and BT Fresca (developed by BT Expedite) have already integrated to provide warehousing, merchandising and stores solutions for Whistles.

Ever since Whistles has implemented Merret and BT Fresca as its information technology in 2010, the Whistles’ financial report has shown its high performance on Net margin. From 2009 to 2014 the Net margin (Figure 12) has increased every year.

Figure 12: the Whistles’ Net Margin (Appendix4).

Also the primary research has been conducted to examine the competitive advantage through customer’s brand preferences within Whistles and other competitors due to the reason that Whistles positions itself as contemporary brand so that the market is highly competitive among peers such as Reiss, COS and Ted baker (Appendix 1 - SWOT). The result (Figure 13) shows that customers prefer Reiss as their no.1 brand, the following ranking are Whistles, COS and Ted baker. Whistles is preferred as no.2 brand among selected competitors. So that it could have seen that Whistles has achieved competitor advantage in overall ranking, but still need to make improvement.

Figure 13

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Meng-Hsi Chin

However, one of drawbacks of using third parties logistics providers is that the companies have no direct control on their operation. Companies are relying on third parties logistic provider to deliver promised services to end-customers. If the damage has occurred that third parties logistics providers failing to deliver products on time, the companies have to take the whole blames from customers (McDunnigan, 2012).

Therefore, A concern of coordinating third party logistics into supply chain is required critical measurement of performance. Especially when third parties logistics functional areas involve in multiple activities of supply chain and customization of product and service offering to end customers (Van Hoek, 2001).

Image 29:Whistles menswear AW14. Source Š 2015 MARKSMAN LIMITED, 2014.

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Corporate social responsibilities (CSR)

According to Whistles’ official website, Whistles claims its CSR policy is:

“ Our values of fairness, integrity and transparency are encompassed in all that we do and are extended to those who touch our products so that they share in our growth and prosperity. We are committed to ensuring that our products are safe for consumers’ use and manufactured under safe, fair, and humane working conditions. We are dedicated to reducing our environmental impact and we strive to make a positive difference within the local and global communities in which we work. We will actively engage with critical stakeholders who want to contribute to our progress in a positive way (Whisltes.com). ”

Image30 : Stay warm in Whistles. Source: Dominic Alari, 2014.

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By employing CSR concept and stakeholder theory that can explain the statement of Whistles’ SCR policy. Corporate social responsibilities concept has increasingly become an important issue for firm and organization. Adopting corporate social responsibilities is required firm and organization undertake obligation to institutions and individuals beyond the legal and economic minima. The obligational range is very broad include covering obligations to employees such as wages and salaries, health and safety, working condition, working opportunities and working environment; the obligations outside the firm include commitment to local communities, environmental issues and marketing practices (Mitchell, 1992)

Freeman’s Stakeholder theory states that managers have to fulfill the variety of constituents such as customers, suppliers, workers and local communities who could affect firm outcomes.

Donaldson and Preston further expand the theory that ethical and moral dimensions of CSR together with the business case to engage in CSR activities. Stakeholder theory implies that manager should not only focus on stockholders’ needs, but focus on engaging CSR activities that could be beneficial for the firm (see as McWilliams et al, 2006). As Whistles claims that it is important to find stakeholders that are willing to devote in CSR activities instead of commercial interest.

However, Whistles seems to have failed its commitment of its own SCR policy. According to the guardian news, the feminist T-shirt that collaborates with Elle was made in sweatshop. The Fawcett society has evidenced the T-shirt was produced by female workers in Mauritius. The Fawcett society states the evidences that: “1) all workers were paid above the official minimum wage and that their wages reflected their skills and years of service. 2) The standard working week was 45 hours, and workers were paid for any overtime. 3) Workers could join a union and there was a union presence at the factory. 4) Staff turnover levels were low and workers were offered training and development (Theguardian, 2014).” It is obviously that Whistles has against its statement of CSR policy. The consequence of failing CSR policy could lead to losing consumer trust and firm’s reputation (Business news daily, 2014). Whistles should be more captious on management of CSR policy.

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Recommendation The overall performance of Whistles’ supply chain is analyzed in this paper. The results show in the Whistles’ financial report that has indicated strong performance on achieving profit growth and efficiency. However, primary research results show the different outcomes of Whistles’ performance on customer satisfaction. Implementing third parties logistics providers into supply chain required management control and measurement on cross-functional area. A number of authors suggest that, performance in the supply chain cannot be fully controlled and monitored by using financial measurements. Usually, financial measurements are conceptual and couldn’t be able to get the insights into operation practices. Thus, it is suggest that direct, qualitative and operational measurements are also should be taking into account to make measurements directly reflect to the operating process.

Ploos and D’Hert (1996) have established a set of performance measurement for logistics operation and suggested that measurements should be chosen based on the characteristics of logistics operating like value and volume of products. This measurement suits the best inside the business process and viewpoint of customers in kaplan and Norton’s (1996) balanced scorecard model (Figure 14) (see as Van Hoek, 2001). The balanced scorecard model supplemented the traditional financial measurement with principles that measured performance from three additional viewpoints - internal business processes, customer and learning and growth. It enables companies to track financial performance and meanwhile monitor progress in setting the capabilities and gaining the intangible advantages that would need for future growth (kaplan and Norton, 2007).

Due to the reasons that even financial performance has high achievement, but the customer satisfaction has average low performance. Whistles should be careful on measuring the serveries that provided by third parties logistics provider and adopting balanced scorecard model into management system.

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Figure 14: Balanced scorecard model.

Source: kaplan and Norton, 2007.

Image 31: Whistles Stutterhiem Raincoats. Source: F.TAPE , 2015

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Supply Chain and Logistics

Recommendation On the CSR, the recommendation for Whistles is re-reviewing the statement that whistles’ has built at the first place. If Whistles wants to achieve the statement and approach to further success that must build consumer trust and brand authenticity as the top priorities. The following suggestions are to create brand identity that bond into CSR policy.

1. Take an honest look at company’s promises: companies need to examine themselves and discover if they truly care about doing the right things, or just about looking great on reputation. Honestly, if companies only focus on looking good on reputation, it is still the way for boosting CSR policy through out the companies’ strategies.

2. Localise the giveback: Gray and others (1996) assert that social contracts theory as ”a series of social contracts between members of society and society itself”. In CSR, social contracts theory is not about how business might operate in a responsible manner, but how society expects business to operate. Donaldson and Dunfee (1999) further develop integrated social contracts theory as a way for managers to make decision in an ethical issue. They distinguish between macrosocial and microsocial contracts. The macrosocial contract stands for communities.

For instance, community would expect that business offer some support to local community. The microsocial contract is more specific in involvement. Hence Whistles could bring social contracts theory into CSR policy, to think about what Whistles could actually help the local communities.

3. CSR leader: make someone as CSR manager for company’s CSR policy. This individual manager requires being the one to motivate the whole team and focus on CSR policy into company’s culture (Business news daily, 2014).

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Image32 : Whistles look book SS15. Source: Load Ashbury, 2015.

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Image33: Brand to watch. Source: BoF, 2014.

Chapter 4 The brand’s current growth strategies: including product diver sification and the internationalisation of the brand.

Author : Karishma Deole 71

The brand’s current growth strategies

Key Words- growth, product, expansion, marketing, economies, globalisation, Jane Shepherdson, menswear, womenswear, annual accounts, whistles, economy

Introduction Whistles has been successful in fighting the dreadful year of 2008 to become amongst the most appreciated brands on the high street. (The Telegraph,2013) The scale of its turnaround and successful reinvention makes it stand out. Jane Shephardson has turned the brand around from an unremarkable high street chain into a tattler of desirable clothes for women who don't want to fall into fashion victim territory. It hasn’t been an easy path for Jane Shephadson. During her tenure several events stagnated the growth of the company. The initial years were tough for Jane Shephardson with the global financial crisis and the collapse of the Icelandic banking sector. Things were not proceeding the way Jane had planned for. (Business of Fashion ). The crucial problem to be address was that everyone had been doing the luxe boho look that Whistles is known for and it had no point of difference.

Image34 : Fashion roundup. Source: sweats and shirts, 2013.

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Methodology

Fig1. The research onion. Mark Saunder, Philip Lewis and Andrian Thornhill, 2011

An interpretivist philosophy has been structured in this

“Deduction begins with an expected pattern that is

chapter to examine the retail brand’s growth from the

tested against observations, whereas induction begins

time of its re-launch in 2008, when Jane Shepherdson

with observations and seeks to find a pattern within

took over as the CEO until the year 2014. Interpretivism

them” (Babbie, 2010, p.52). Beiske (2007) informs that

involves researchers to interpret elements of the study,

deductive research approach explores a known theory

thus interpretivism integrates human interest into a

or phenomenon and tests if that theory is valid in a given

study. Accordingly, “interpretive researchers assume

circumstances. A deductive approach relies heavily on

that access to reality is only through social constructions

logic. An inductive approach starts with the observations

such as language, consciousness, shared meanings, and

and theories are formulated towards the end of the

instruments” (Myers, 2008, p.38). An interpretivist can

research and as a result of observations (Goddard and

sometimes come up with surprising findings when external

Melville, 2004). A combination of appropriate secondary

view is taken from outside the area of social context being

and primary data collection methods has been used

studied (Bryman, 2003, p.g 18) However this philosophy

throughout this chapter. Several relevant theories

has some limitations and disadvantages. Bryman (2001)

like the Ansoff Matirx, Porters 3 Generic strategies

quotes Diener and Crandall (1978) as identifying four main

and William and Churchill growth model have been

areas of concern: harm to participants, lack of informed

applied in this chapter. The data collected has been

consent, invasion of privacy, and deception. Another

analysed to study the factors affecting the company like

limitation of this philosophy could be participant’s bias

SWOT, PESTLE and Marketing Mix. Tools such as store

approach. Both deductive and inductive approaches have

observations and questionnaires have been conducted

been conducted within this chapter.

to collect data. Furthermore, using the mixed methods through a longitudinal time-horizon to develop a better understanding of the brand’s growth.

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Aims and Objectives This chapter aims to generate an evaluation the growth of the brand from 2008 until 2014. The chapter will study the growth through product development a n d d i v e r s i f i c a t i o n , m a r ke t d e v e l o p m e n t a n d internationalisation. The report also aims at analysing the financials of Whistles and understand the problems faced by the brand. To conclude this chapter will make a few recommendations for the brand.

Main Discussion

This chapter adopts the Ansoff Matrix model to examine the brands growth into new markets and its product diversifications. The matrix proposed by Ansoff (1957), provides a useful framework for considering the relationship between strategic direction and marketing strategy. According to Ansoff there are four basic growth alternatives. A business can grow through increased market penetration, market development, product development or diversification. This chapter will examine each of the growth blocks to formulate a better Fig.2 Ansoff Matrix

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understanding of the retail brands growth and finance.

Image35: Brand to watch. Source: BoF, 2014.

Porters three generic strategies model can be adopted to understand the brand position. Using this model, Whistles observed as a retailer offering products with premium pricing targeting mainly the working class (Appendix 6) The brand can be seen using the differentiation strategy attracting a broad customer base of 25-40 years with high quality products and premium pricing (Appendix 3) Whistles offers high quality garments, accessories and most recently they launched their menswear line.

Fig3. Porters 3 generic Strategies

Adapting the William and Churchill growth model, it is clear that Whistles in now in the Stage Four of growth as the company has made its first profit since its relaunch (Appendix 4)

Fig.4 Churchill and Lewis growth Model representing Whistles (Author’s Own)

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The brand’s current growth strategies

Market penetration

Market penetration is the simplest of the four strategies for growth. The retail brand already had a presence in the market before its re-launch in 2008.

The brand is a womenswear retailer started by Lucille Lewin in 1998. Market penetration strategy involves mounting the income by promoting and advertising of the products in order to sell more, either to existing customers or targeting new market (Ansoff, 1957). Jane Shepherdson worked towards completely shifting the demographics of the brand. Initially the retail brand was popular among the older age groups. Jane Shepherdson states, “most of the customers when I first went round the stores — when we bought into the brand — most of them had grey hair, which is fine, but it led me to believe that it was an older customer base and there weren’t any new, younger customers coming into the brand.” (Business Of Fashion, 2012) The company’s customers are now aged between 25 and 50 (Appendix 3).

Market penetration also contains advertising the products to make them more attractive to the current customer or new clients who it the target market (Eagle and Brennan, 2007) Jane Shepherdson admits ‘I suppose with the build-up of editorial and word of mouth and people finding out about us, people have started to say, ‘Actually there’s something here.’ I seriously think it’s a combination of talk about the brand and absolutely, suddenly getting that product right. It’s got so much better, it’s got so much more confident, and it’s got a real point of view’ The complete clothing range has been re furbished and the number of old customer has gone down marginally.(The Telegraph, 2013) Endorsements from actress Keira Knightly, presenter Alexa Chung and Kate Middleton helped drive profit.

(Drapers, 2011) The brand experienced an increase in sales of its spring 11 white silk, embroidered scallop-edged blouse after the Duchess of Cambridge wore it for her official engagement photos.

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Karishma Deole

Image 36: Brand to watch. Source: BoF, 201

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Product Development and Diversification

Baker and Hart (2007) suggest that the range and variety of products play a very important role in customer attraction and retention. According to Porac, Polloc and Mishina(2004) there is a significant relationship between new product development and firms growth. In product development growth strategy, new products are introduced into existing markets. Product development can differ from the introduction of a new product in an existing market or it can involve the modification of an existing product. Jane Shepherdson admits, “One of the key drivers for growth of the retail brand is its product”. (Business Of Fashion, 2012) The product offerings have undergone significant changes since the re-launch. Initially, the retailer offered boho, pretty, slightly girly-frilly women’s wear clothing. The retail brand now offers a wide range of products with varied price architecture.

It has introduced The Limited collection, Accessories and most recently the menswear each catering to a select target market.

(Appendix 3)

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Image37: Brand to watch. Source: BoF, 2014.

The brand has won strong reviews from the fashion press for its mix of contemporary casual and work wear for women. (The Telegraph, 2013) ‘Since its re-launch in 2008, Whistles has become a wardrobe staple for fashion editors and industry leaders, characterised by its contemporary and effortless style’ (Whistles.com) The boho frilly dresses were tuned to classy and fashionable outfits. Jane Shepherdson says “Today, it is an edited collection for contemporary women who want fashion but don’t necessarily want to slavishly follow trends.”

The Limited Collection was launched in September 2012

Following the growing demand for better choice of trend-

(Vogue,2012) "We decided to stretch our creative wings

led men’s clothing Whistles has very recently launched

this year and allow ourselves the luxury of designing a

their menswear line in September 2014. The menswear

small tightly-edited collection of what we consider to

reflects the womenswear aesthetics offering tightly

be the most covetable pieces of the season, in the most

edited wardrobe of classic pieces (Appendix 5). The

luxurious and desirable fabrics," said Jane Shepherdson

collection focuses on longevity and quality rather than

just before the launch of the collection. (Vogue.com)

flash-in-the-pan trends. “We’ve been considering doing

With an emphasis on exclusivity, select pieces from the

menswear ever since we took over at Whistles in 2008,”

collection were produced in batches of 20. The first range

says Jane Shepherdson (The Independent, March 2015)

featured 70 luxury pieces spanning both contemporary

Whistles man is confident, stylish and has an innate

daywear and evening wear (Vogue,2012) The Limited

sense of style.” Says Nick Passmore (The Independent,

Collection offers exclusive pieces in high quality fabrics

March 2015). However, space allocation in stores is an

including leather, cashmere, silk crepe and jacquard.

issue due to Whistles’ small standalones (Appendix 1)

(Appendix 3) This collection offers contemporary yet

The menswear is not well segmented and is sometimes

fashionable products. The collection represents the

unnoticed. The flagship store on Dover Street in London

brand value of ‘effortless dressing’ this collection is

does not offer their menswear (Appendix 5). The other

available only at select stores and only a small number

flagship store at St Christopher’s in London offers a well-

of each piece is available. The limited collection pieces

segmented section for the menswear (Appendix 5) The

are not well very differentiated from the other product

brand however has a very limited range of menswear

offerings. The collection does not appeal as an exclusive

products. Whistles also offers a range of accessories and

range. This collection can be differentiated from the

footwear for both women and men. The wide range of

rest by the garment label and the higher pricing only.

accessories offered are handbags, wallets, sunglasses,

(Appendix 5)

belts, earrings, cuffs and clutches (Appendix 3).

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The brand’s current growth strategies

Market Development and Internationalisation

Fig 5 Graph representing the turnover of Oversees market. (Data collected from Annual Reports)

Fig 6. Graph representing the turnover of domestic market. (Data collected from Annual reports)

Porac, Pollock and Mishina (2004) argued that product extension and market development notably and significantly affect firm’s growth. Johns and Pineb (2002) suggest markets can be explored outside the current markets or unexplored needs and wants of current markets.

Comparing Fig 5 and Fig 6 there is a notable fall in the turnover from the overseas market during the initial years after the re-launch in contrast to a rise in the turnover from the domestic market. Until 2011, the retailer focussed more on consolidating the domestic market. Whistles operated from 34 standalone stores, 36 concessions and eight overseas outlets. (Retail Week, 2007). Currently, there are 46 standalone Whistles stores across the UK and 57 concessions within leading departmental stores such as Harvey Nichols, Harrods and Selfridges. The company, which was operating mainly from U.K and Europe, has entered the Chinese, Russian, French and most recently the American market. ‘We had decided that we would test the brand within a premium department store in all of the territories that we felt appropriate’ (Jane Shepherdson, 2014) However, of all the international markets the highest income is generated from Ireland(Whistles Annual Reports) In 2014, the company generated a turnover of 2.3m pounds of which Ireland alone generated a revenue of 1m pound. (Whistles Annual Report) This strategy of expanding to geographically close and culturally similar territories is proving to be successful for the brand.

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Image 37: New territory. Source: Half moon magazine, 2014

Whistles opened its first US outpost with a shop-in-shop space at Bloomingdale's flagship store on 59th Street in Manhattan, New York. Jane Shepherdson believes the Americans have a similar dressing as the English, slightly minimal aesthetic. She says “ I don’t think there is anyone else doing it on the same fashionable level.”

The concession reflects the feel of the brand's London flagship on Dover Street in London. (The Telegraph, 2014) The company follows a wholesale, retail and concessions format. The company wholesale to ASOS in the UK, Lane Crawford in the far east and Podium and Tsvetnoy in Russia (Whistles Annual Accounts, 2014). The retail brand follows a wholesale format in countries like China and Russia due to regulatory and bureaucratic complexities of doing business in those territories. Although following this model is not exactly beneficial, however it allows the company to assess the foreign markets before making larger capital expenditure.

In Europe and US, Whistles operates through concessions model. This type of a model helps the brand to have a good control over the stocks and image. The model also allows the retailer to earn a larger sales margin.

Whistles continues to grow within the UK and oversees. Jane Shepherdson is also eyeing the Australian market since it has been doing extremely well online (Jane Shepherdson, 2014). It can be assumed, the Australian market shares a similar cultural environment as the UK; and thus is easier to expand into that market. With similar cultural environment the risks involved are much lower.

Table showing the presence of Whistles oversees(data collected from the website Whistles.com)

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Image38 : Boy meets girl. Source: Raspberry, 2015

Diversification Diversification involves moving simultaneously into new markets and new products. Diversification can take place into related or unrelated products. (Proctor,Tony 2015) Diversification strategy is the most risky strategy for any brand. For a business to take a step into diversification, they need to have their facts right regarding what it expects to gain from the strategy and have a clear assessment of the risks involved. It involves touching into a totally diverse line of business, selling different new products to a different new market. Diversification includes brand extensions or new brands and, in sometimes product modification can create a new market by introducing new uses for the product. Currently, the retail brand has only been diversifying its product range and has begun to enter into new markets. However, the retailer’s product offerings remain the same with a few additions like the menswear and accessories. It is assumed the brand will still take a few years until it enters the diversification phase.

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The brand’s current growth strategies

Conclusion At the time of re-launch, in 2008 the UK economy The primary research suggests the retailer’s menswear was at a slow paced growth. With the fall of Lehman is not as well received as its womenswear (Appendix brothers (Appendix 2) and collapse of Icelandic 6). Analyst Kate Ormord suggests, it’s important banks the brand was facing difficult conditions. The for Whistles to build a unisex image to appeal to be years 2008 and 2009 were economically slow years. successful in menswear (Verdict, 2013) The menswear Analysing the company financials (Appendix 4), it collection lacks breadth and depth. The product is noted that the performance of the retail brand offerings are very limited and usually go unnoticed has been poor during the initial period, with the in the stores. (Appendix 5,3) With the men’s fashion retailer making losses. The company reports suggest market growing by 4.8% in 2013 to reach £12.9 the retailer operated primary in the UK. 99% of billion and more clothing retailers have turned their the sales were driven from their domestic market, attention to menswear (Mintel, March 2014) there is (Whistles annual reports available on company scope for the retailer to excel in menswear. house) indicating the performance of the company Af ter several years of re-launch of the brand is certainly largely influenced by the economic profitability has finally been fully restored in the conditions within the UK. The sales and the margin year 2013-2014. Whistles in proving to be one of UK’s are moving in line with the UK economy. (Fig7 and 8) fastest growing retail brand (The Retail Week, 2014) Whistles made its first Operating Profit in 2013. It was There has been a growth of 60% in the past five years incurring cash losses till then. As it sales increased, from the time of its re-launch in 2008 and a growth of its debtors have increased by 10 days from 22 to 13% from the year 2013 to 2014 alone (Appendix 4).

32. There is a marginal increase in stocks also by 2 two days from 38 to 40. The Gross margin has fallen from 68.3% to 64.7% in 2012 and 2014 respectively.

(Appendix 4) Under this scenario, financials of Whistles limits its ability to take risks involved in the diversification strategy as defined in the Ansoff Matrix. To de-link from this this strong relation, Whistles needs to diversify atleast into other markets, products and geographies. It is recommended that

Fig 7 Graph representing the GDP growth rate of UK. (Data collected from worldbank )

Whistles continue its current cautious product and market development, and use franchise model to enter foreign markets, which limits its investment and risks until it gains necessary financial strength to take risks associated with a full fledged diversification.

Fig 8 Graph representing the% change in turnover of Whistles.

(Data collected from Annual report)

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Fig9. Graph representing UK quarterly GDP (www.bbc.co.uk)

Image39: Brand to watch. Source: BoF, 2014.

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Image 40: Boy meets girl. Source: Raspberry, 2015

Chapter 5 Conclusion Potential strategies within next five years.

Author: All members

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Analysing the financial data of WHISTLES (Appendix 4), Whistles has seen a growth of 60% in the turnover from the year of its re-launch in 2008 until 2014. The company’s turnover stagnated during 2008-2010 around 33.5m pounds, a period when Jane Shepherdson had just taken over and the retail brand was going through several modifications. The turnover has been on a rise since 2011. The growth however has remained inconsistent, rising and falling. The growth mirrors the GDP growth of UK during the same period (Fig 7 & 8 in Chapter 4). The cost of sales initially increased in line with the turnover and showed higher increase in 2013 and 2014, which has reduced the gross margin from 68.3 in 2012 to 64.7% in 2014. This could be result of adding and closing stores, introduction of menswear, accessories, the launch of WHISTLES at Bloomingdales in New York and international business.

Whistles continued to incur losses till 2013 due to high fixed costs despite a health gross margin of over 60%. 2012, Whistles broke even with a marginal loss of 0.5 m. During 2013 to 2014, though the gross margin were lower, net margin continued to increase indicating gains from contribution coming from additional sales, albeit at a lower gross margin. At 4.9% net margin, Whistles lags behind it competition. (Appendix 4) Whistles exhibits a strong logistic and stock management control as it stock levels have only increased by 2 days despite a 60% increase in Turnover. Its debtors have however gone up by 10 days indicating additional sales are coming from increased credit to gain sales. It may also be the result of overseas sales that have a longer invoice to cash cycle.

Image41: Boy meets girl. Source: Raspberry, 2015

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Chapter three has examined the efficiency of Whistles using third parties logistics to enhance customer satisfaction that has not actually achieved the efficient purpose.

However, the recommendation has suggested using Kaplan and Norton’s balanced scorecard model to measure the management efficiency and performance. In this chapter is aim to provide potential management strategy in supply chain for Whistles within the next five years. Due to the reason that Whistles just contracted a 4 years contract with Clipper in 2014 so that it is necessary Whistles undertakes new measurement and management to adjust the current operations to achieve potential growth within next five years.

Kaplan and Norton (2007) further expand their balanced scorecard model to more wider assessment tool for strategic management. It is useful for Whistles’ potential growth within five years. The model includes two methods to critically examine the firm performance and in further expanding strategic management, which are translating vision and strategy with four perspectives and managing strategy with four processes. By adopting balanced scorecard model it allows firm to critically examine its performance without relying on short-term financial measurement. And in further, the scorecard allows firm introduces 4 new management processes that combine and contribute to link the long-term strategy with short-term actions. For whistles, using this model is not only for firm’s internal assessment but also to critical evaluate the third parties logistics providers. It is easier to apply this model if Whistles consider third parties logistics providers (Clipper, Retail Assist and BT expedite) as part of its department.

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Conclusion

Figure 1: Balanced scorecard and further expanding strategic management model.

Source: Kaplan and Norton (2007)

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All team members

Conclusion

The first process is translating the vision that assists managers construct agreement around the firm’s vision and strategy. The second process is communicating and linking that helps managers to communicate strategies to go around every corner in the firm and link it to individual and departmental objectives. Traditionally, individual incentives are bound to short-term financial goals and departments are assessed by their financial performance. The scorecard provides managers a way of making sure that all levels of the firm realize and understand the long-term strategy. The third process is business planning that facilitates firms to integrate their financial plans and business. When mangers make use of ambitious goals to set for balanced scorecard measurement as the foundation for distributing resources and priorities that enable firm move forward to undertaking and coordinating long-term strategic objective. The fourth process is feedback and learning that helps manager to collect existing feedback and review processes to concentrate on if departments or individual employees have achieved the financial goals. And with scorecard in the central management system, firm could monitor the short-term result from three extra perspectives (customers, learning and growth, and internal business process) that evaluates strategy in the spotlight of current performance. Together with scorecard that allows firms to adjust strategies to reflect real-time learning (Kaplan and Norton, 2007).

Image42: Whistles womenswear SS15. Source: Whistles. com, 2015.

All team members

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For the marketing part, Whistles could develop more on the same path using multichannel strategy in the next 5 years but the brand need to consider in building an image that appeal to both men and women as the analysis in chapter 2. Having a loyal female customer base, Whistles’ move into menswear will not just attract male shoppers but will also encourage existing customers to buy for their partners. However, the brand still need to put an effort on winning male customers by introducing relevant editorial content to increase awareness of its ranges.

Additionally as its menswear offer will only be available in select stores, Whistles must extend its reach by making click and collect available across its entire network of standalone stores which will eventually set the brand in a good stead for international expansion.

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Online network and technology will also be one of the most important factor, in order to enhance the customers’ experiences, Whistles can consider to integrate technology within the product or in the physical store or in fashion show event. As shown in the PESTLE analysis (appendix 2), In-store shopping is being developed through innovations that are both creative and functional. By adding technological features and experiences to the physical location, the brand can encourage a more satisfying experience that meets the heightened expectations of modern shoppers, and that can also create a brand awareness and brand loyalty in the near future.

Image43: Brand to watch. Source: BoF, 2014.

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Luxury daily, 2013 Helmut Lang exec: Contemporary fashion marketers must compete globally to survive [online]. Available at: http://www.luxurydaily.com/helmut-lang-exec-contemporary-fashionmarketers-must-compete-globally-to-survive/ [Accessed 08 March 2015].

Logistics manager, 2011. Whistles migrates to new logistics and IT system [online]. Available at:http:// www.logisticsmanager.com/2011/11/17315-whistles-migrates-to-new-logistics-and-it-system/ [Accessed 12 March 2015].

Lai, F., Zhao, X., Wang, Q., 2006. The impact of information technology on the competitive advantage of logistics firms in China [online]. Available at: http://www.emeraldinsight.com/doi/pdfpl us/10.1108/02635570610712564 [Accessed 08 April 2015].

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Red giraffe advisor, 2014. Rising luxury prices? No problem, say today’s contemporary brand [online].

Available at: http://www.redgiraffeadvisors.com/rising-luxury-prices-problem-say-todays-contemporarybrands/#sthash.8fNTdJd0.dpuf [Accessed 10 March 2015].

Rana, S., Sheikh, Z., 2012. Role of Third Party Logistics Providers with Advanced it to Increase Customer Satisfaction in Supply Chain Integration [online]. Available at: http://www.hrmars.com/admin/pics/569. pdf [Accessed 01 April 2015].

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Retail Assist, 2011. Whistles implements Merret [online]. Available at: http://www.retail-assist.co.uk/ whistles-implements-merret/ [Accessed 02 March 2015].

Retail Week, 2011. Whistles while you work [online]. Available at: http://www.retail-week.com/ technology/whistle-while-you-work/5029008.article [Accessed 04 March 2015].

Real Results, 2010. Managing the Risks Every Organization Values Supply Chain Visibility but Sharing Information Can Be a Dangerous Proposition [online]. Available at: http://www.jda.com/ realresultsmagazine/view-article.cfm?did=2065 [Accessed 11 March 2015].

Remko, I., 2000. Role of third party logistic services in customization through postponement [online].

Available at: http://www.emeraldinsight.com/doi/pdfplus/10.1108/09564230010355395 [Accessed 09 March 2015].

The guardian, 2014. Feminist T-shirts made in ethical conditions, says Fawcett Society [online].

Available at: http://www.theguardian.com/world/2014/nov/04/feminist-t-shirts-made-ethicalconditions-fawcett-society [Accessed 09 April 2015].

Wu, F., Yeniyurt, S., Kim, D., Cavusgil, T., 2005. The impact of information technology on supply chain capabilities and firm performance: A resource-based view [online]. Available at: http://www.sciencedirect. com/science/article/pii/S0019850105000751 [Accessed 07 April 2015].

Stefansson, G., 2005. Collaborative logistics management and the role of third-party service providers [online]. Available at: http://www.emeraldinsight.com/doi/pdfplus/10.1108/09600030610656413 [Accessed 19 March 2015].

Sheng, C., 1998. Outsourcing of logistics functions: a literature survey [online]. Available at: http:// www.emeraldinsight.com/doi/pdfplus/10.1108/09600039810221667 [Accessed 10 March 2015].

Van hoek, R, I., 2011. The contribution of performance measurement to the expansion of third party logistics alliances in the supply chain [online]. Available at: http://www.emeraldinsight.com/doi/pdfpl us/10.1108/01443570110358431 [Accessed 08 April 2015].

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Karishma Deole Jane Shephardson, interviewed by Imran Amed for Business of Fashion, 28 OCTOBER, 2012 AVAILABLE ON : Proctor, Tony. Strategic Marketing : An Introduction. London, GBR: Routledge, 2000. ProQuest ebrary.

Web. 4 March 2015 accessed on 1/03/2015 www.bbc.com Jonathan Groucutt , Foundations of Marketing, Palgrave foundations, 2005.

The Telegraph, December 2013 available at : https://www.duedil.com/company/01514754/whistleslimited/documents Competitive advantage: Creating and sustaining superior performance

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Beiske, B, 2007, Research Methods: Uses and Limitations of questionnaires, interviews and case studies, GRIN Verlag http://www.retail-assist.co.uk/men-take-note-whistles-launched-menswear-collection/ http://www.independent.co.uk/life-style/fashion/features/whistles-first-contemporary-menswearcollection-is-all-about-clean-cuts-9702650.html rnational-expansion-whistles-enters-us-bloomingdales.html Pelissier, R. (2008) “Business Research Made Easy” Juta & Co. Jane Shephardson, interviewed by Lisa Wang for Business Of Fashion, 19 May 2014 available on http://www.businessoffashion.com/2014/05/continuing-international-expansion-whistles-enters-usbloomingdales.html http://www.theguardian.com/business/2011/oct/09/whistles-profits-in-the-pink http://fashionista.com/2014/05/whistles-ceo-jane-shepherdson Jane Shephardson interviewed by Sarah Karmali for Vogue, 2012 available on : http://www.vogue. co.uk/news/2012/08/24/whistles-limited-edition-line-launches-online-and-in-store http://www.vogue.co.uk/news/2013/10/10/whistles-launches-debut-menswear-collection http://www.theguardian.com/business/2013/oct/10/whistles-fashion-chain-menswear http://www.drapersonline.com/news/shepherdson-unveils-vision-for-whistles/1583995.article#.

VPuIL_ysUd0 http://www.retail-week.com/city-and-finance/retail-week-knowledge-bank/did-you-know-thatwhistles-has-reported-its-first-profit-since-the-2008-management-buy-in/5062560.article http://nymag.com/thecut/2014/05/meet-the-woman-behind-whistles-cult-following.html http://www.businessoffashion.com/2014/05/continuing-international-expansion-whistles-enters-usbloomingdales.html http://fashion.telegraph.co.uk/article/TMG9497670/Whistles-introduce-Limited-Edition-range.html http://www.retail-week.com/city-and-finance/retail-week-knowledge-bank/did-you-know-thatwhistles-has-reported-its-first-profit-since-the-2008-management-buy-in/5062560.article http://www.businessoffashion.com/articles/ceo-talk/ceo-talk-jane-shepherdson-chief-executiveofficer-whistles Beiske, B, 2007, Research Methods: Uses and Limitations of questionnaires, interviews and case studies, GRIN Verlag Gulati, PM, 2009, Research Management: Fundamental and Applied Research, Global India Publications Pelissier, R. (2008) “Business Research Made Easy” Juta & Co. Snieder, R & Larner, K, 2009, The Art of Being a Scientist: A Guide for Graduate Students and their Mentors, Cambridge University Press Goddard, W. & Melville, S. (2004) “Research Methodology: An Introduction” 2nd edition, Blackwell Publishing Mark Saunders, Philip Lewis, Andrian Thornhill, 2011, “Research Methos for Business Students”, Pearson Publications. http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?page=2

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List of illustration Chapter 1 Fig. 1. A collection by the designer Dries Van Noten - http://beoordelingencasino.nl/wp-content/uploa ds/2014/10/05-10-2014-20-01-05-1851.jpg Fig. 2. Life cycle of a brand as explained by Kapferer - Kapferer, Jean-Noel. [Re]Inventing The Brand.

Milford CT: Kogan Page, 2001. Print.

Fig. 3. Wheel of Retailing – December in class presentation.

Fig. 4. Assumptive Brand Positioning map – Author’s own.

Table. 1. Wansink, B (2000) Brand revitalisation scorecard, Brand Marketing, August, p 78.

Table 2. Deductive vs. Inductive research approach - http://research-methodology.net/researchmethodology/research-methodology/deductive-approach-2/

Chapter 2 Figure 1: WHISTLES BRAND PRICE ARCHITECTURE, own diagram.

Figure 2: The Three levels of product theory of Philip Kotler [online] Available at: http://www. learnmarketing.net/threelevelsofaproduct.htm [Accessed 14 Apr. 2015].

Figure 3: WHISTLES retail life cycle, own diagram Figure 4: AIDA Model. [online] Available at: http://marketingmannen-tv.nl/marketingmodellen/aidamodel-van-strong/ [Accessed 14 Apr. 2015].

Figure 5: Whistles’ Instagram Table1 : Number of social media followers of Whistles and competitors, own table.

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Chapter 3 Figure1, ISCM model: Institute of management accounts, 1999. Implementing integrated supply chain management for competitive advantage [online]. Available via http://www.imanet.org/docs/defaultsource/thought_leadership/management_control_systems/implementing_integrated_supply_chain_ management_for_competitive_advantage.pdf?sfvrsn=2 [Accessed 03 March 2015], fig.

Figure 2 Three main types of services provided by 3PLs: Cheong,F., 2005. New Models in Logistics Network Design and Implications for 3PL Companies [online]. available via http://web.mit.edu/sgraves/ www/Michelle%20Final%20Thesis-Aug05.pdf [Accessed 04 March 2015], fig.

Figure 3: the role of information flow in logistic processes: Rana, S., Sheikh, Z., 2012. Role of Third Party Logistics Providers with Advanced it to Increase Customer Satisfaction in Supply Chain Integration [Online].

Available via http://www.hrmars.com/admin/pics/569.pdf [Accessed 04 March 2015], fig.

Figure 4 Chain context of supplementary third party logistics services transactions: Source: Remko, I., 2000. Role of third party logistic services in customization through postponement [Online].

Available via http://www.emeraldinsight.com/doi/pdfplus/10.1108/09564230010355395 [Accessed 01 April 2015], fig.

Figure 5 assumptive Whistles’ supply chain model: own diagramed Figure 6 the Whistles’ cost of sales: Appendix4.

Figure 7 the value-added service: own diagram.

Figure 8: the Whistles’ Gross profit: Appendix4.

Figure 9: own diagramed.

Figure 10: own diagramed.

Figure 11: own diagramed.

Figure 12: the Whistles’ Net Margin: Appendix4.

Figure 13: Balanced scorecard model: Kaplan, R., Norton, D., 2007. Using the balanced scorecard as a strategic management system [online]. Available via Http://www.hbrreprints.org. [Accessed 04 April 2015], fig.

Figure 14: Balanced scorecard model: Kaplan, R., Norton, D., 2007. Using the balanced scorecard as a strategic management system [online]. Available via Http://www.hbrreprints.org. [Accessed 04 April 2015], fig.

Chapter 4 Fig1. The research onion. Mark Saunder, Philip Lewis and Andrian Thornhill, 2011 Fig 2. Ansoff Matrix available at : http://research-methodology.net/wp-content/uploads/2013/02/ Ansoff-Growth-Matrix.png Fig 3. Porters 3 Generic Strategies available at : http://blog.browncompany.com/wp-content/ uploads/2011/10/PortersModel.jpg

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Image BoF, 2014. Brand to watch [online]. Available via: http://www.businessoffashion.com/community/ companies/whistles [Accessed 14 April 2015] img.

Dominic Alari, 2014. Stay warm in Whistles [online]. Available via: https://plus.google. com/107500090812025651666/posts [Accessed 10 April 2015] img.

F.TAPE, 2014. Whistles Stutterhiem Raincoats [online]. Available via: http://ftape.com/media/?p=89792 [Accessed 12 April 2015] img.

Half moon magazine, 2014. Black and white one: New territory [online]. Available via: http:// halfmoonmagazine.com/2014/10/08/whistles-new-territory/ [Accessed 13 April 2015] img.

Load Ashbury, 2015. Whistles look book SS15 [online]. Available via http://lordashbury.com/whistlesss15/ [Accessed 12 April 2015] img.

MARKSMAN LIMITED, 2014. Whistles menswear AW14 [online]. Available via: http://www. marksmanstyle.com/whistles-menswear-launch/ [Accessed 10 April 2015] img.

Raspberry, 2015. Boy meets girl [online]. Available via: http://raspberry-rouge.com/2015/02/15/howto-make-a-casual-look-more-sexy-feminine/ [Accessed 09 April 2015] img.

Sweats and shirts, 2013. Fashion roundup [online]. Available via: http://sweatshirtsanddresses.com/ tag/whistles/ [Accessed 13 April 2015] img.

The Jade aesthetic, 2014. Whistles AW14 [online]. Available via: http://www.thejadeaesthetic. com/2014/08/whistles-aw14.html [Accessed 12 April 2015] img.

Whistles.com, 2014. Whistles womenswear AW14 [online]. Available via: http://www.whistles.com/lookbook/ [Accessed 12 April 2015] img.

Whistles.com, 2014. Jane Shepherdson [online]. Available via: http://www.whistles.com/whistles/ janeshepherdson.html [Accessed 13 April 2015] img.

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Appendix1 - SWOT STRENGTHS • Old and established British label and has built a trust amongst its customers.

• Jane Shephardson as the CEO, when took over had 20 years of experience in the retail industry working with Topshop.

• Recently launched the menswear line, adding to their product offer • Whistles now offer menswear, womenswear and accessorieslike handbags, shoes, sunglasses etc at affordable prices.

• High product quality.

• Clean and attractive website – easy to understand and surf • known for its modern silhouettes and casual but on-trend pieces at affordable price points(business of fashion) • Whistles has partnered with high-end department stores to enter a number of new markets, launching in Paris with Printemps, in Berlin with KaDeWe, in Munich with Oberpollinger, in Hamburg with Karstadt and in Moscow with Podium and Tsvetnoy Market and China in August 2013 in partnership with upmarket department store Lane Crawford(bof) • The company is doing extremely well in the Chinese market (bof) • one of the most admired brands in the high street.(telegraph) • the company’s success in reinventing its brand – makes it stand out in a retail industry (telegraph) • Jane Shephradson has been successful in changing the clothing range and attracting new customers ranging from 25 year olds to 50 year olds.(telegraph) • Offer contemporary yet fashionable products at affordable rates for the whistles customer.

• Whistles has created its own niche in the fashion world between mainstream high street chains and luxury brands (telegraph) • Duchess Of Cambridge sporting WHISTLES at several events has made it an aspirational brand for several.

• Whistles has begun showing at London Fashion Week (bof) • Listed in the top 10 fastes growing retail companies (the retail week)

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Weakness • Brand is missing some sales because of its price that makes customer to buy it as an occasion wear rather than a casual wear.

• The brand has a product type that are offers for majorly occasion wear.

• The brand needs to concentrate on its publicity to compete with brands like Reiss and Cos. • The size of the store of the brand in UK specially are comparatively small in size.

• The brand has 2 flagship stores, which could be misleading to customers, as the product range (breadth and depth) vary, that could result in losing sales/customers.

• Product price range varies, according to the “made in” country, product quality could be tried.

• Brand awareness could be a major weakness, though the brand has found a solution to it, through their international expansion plan.

• Lack of celebrity endorsements.

• Lack of breadth and depth in menswear product range (menswear is a booming industry- theguardian; Saturday 14 June 2014; Hannah Marriott, Menswear sales catching up with Womenswear, research shows) • According to the in-store observation, the product placement of the brand is mixed style and material, but segregated on the basis of color.

OPPORTUNITY • International expansion with e-commerce before establishing new store in new market • Expand in emerging markets in both BRIC and CIVET countries • Establish Department store strategy for global expansion including wholesale and concession stores • Recently the brand has launched menswear collection which widen its customer’s target and tap into the lucrative UK menswear market • The brand has the opportunity to attract younger shopper by integrating online and offline channels to create a seamless customer experience, allowing customers to purchase online and collect from the stores in the following day • The locations of the stores are important for the brand to moving up to the higher market ( such as Flagship store in Dover Street, Selfridges, Harrods or Galleries Lafayette in France) • The brand can use more of Celebrity endorsement or others PR campaigns to attract attention from international especially from big market like China and Asian countries

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THREATS • Whistles has hired Clipper as logistic helper and integrated technological supply chain software system from Retail Assist and BT Expedite (Logistics manager, 2011). Whistles doesn’t have its own supply chain and IT infrastructure (BoF, 2011). Which means that Whistles has to share internal business information to its suppliers, distributors channel partners and transportation carriers in order to achieve high level of supply chain transparency. However, sharing information may have high level of risk to business. For example, it might have chance to exposure product details to competitors and public (Real Results, 2010).

• According to Luxury Daily, contemporary fashion market is highly competitive.

Contemporary brands compete with older, established luxury brands and peers such as Reiss, Neil Barrett and Ted Baker in targeting younger consumers with accessible, daily modern style, quality and affordable luxury prices (Luxury daily, 2013). Whistles positions itself as cutting-edge contemporary brand (whistles.com), which means Whistles has to face the threats from luxury brands and peers.

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Appendix2 - PESTEL Political and Legal - The political issue within Greece affecting the Eurozone. With Greece trying to bail out of the Eurozone it is creating a very stressful situation in Europe. As the EU tries to focus on big investment plans and ways to restore growth across the continent, another nail-biting Greek drama is hindering the progress.(BBC news, 2015) - Hong Kong protesters and politicians pushing for true democracy and travelling to London to warn the UK not to interfere. (BBC news 2015) With Whistles trading to China, this could affect the relationship.

- Trade Europe and a Strong USD with this ETF: Historically, only sophisticated investors would be able to construct a portfolio of European equities and simultaneously hedge the currency risk. Interestingly, with the invention of exchange-traded funds such as the Wisdom Tree Europe Hedged Equity Fund it is now possible for any investor to add this type of exposure to their portfolio. This gives strategic investors a special advantage of taking advantage of key world markets while also profiting from a surging U.S. dollar.

- The new retail trade law, with the support of the national antitrust authority and Prime Minister Putin amongst others, has three essential features: (1) limiting the operation of chains to no more than 25 percent of total sales within particular geographic regions, i.e. prohibition on internal expansion or merger, (2) restrictions on the ability of suppliers and retailer’s to enter into slotting arrangements and other payments for shelf space, and (3) price controls on some subset of “socially-important” goods ( BBC, 2010) - During the G20 summit (2014) held in Queensland city of Brisbane, Russian prime minister Mr. Putin sanctioned undermine trade in Russia. (BBC news 2014)

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Economic - Fashion.Telegraph, 2014 The British fashion industry is worth £26 billion to the country's economy, according to figures published today by the British Fashion Council.

At a press conference to open London Fashion Week Natalie Massenet, chairman of the British Fashion Council, announced the increase of 22 per cent; up from £21 billion in 2009.

This figure incorporates not only the direct impact of wholesale, retail and manufacturing on the economy, but also its effect on other industries including tourism and financial services. The fashion industry is estimated to support 797,000 jobs according to research

by Oxford Economics. This is a decrease of 2.3 per cent from the report published four years ago.

- BBC, 2015 Deflation in the eurozone eased in March as the unemployment rate dipped slightly in February, figures show. The unemployment rate in the eurozone fell from 11.4% to 11.3% in February.The total decline of 329,000 in the number of eurozone jobless in the three months to February is the largest three-month fall since the three months to April 2007.

The numbers suggest businesses are becoming more willing to step up hiring encouraged by very low oil prices, a markedly weaker euro and a major stimulus from the European Central Bank (ECB).

LONDON FASHION WEEK IN NUMBERS , britishfashioncouncil.co.uk , Feb 2015 • £46billion total contribution from the UK fashion industry (including indirect support for supply chain industries and induced spending of employees’ wages) • £26billion direct contribution to the UK economy from the UK fashion industry (up from £21billion in 2009) • £10.7billion spent on fashion online in the UK (expected to reach £19billion by 2019) • £160million media coverage on LFW each season • £100million of orders placed during LFW each season • 797,000 jobs supported by the UK fashion industry

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- UK MENSWEAR AND THE FASHION INDUSTRY ,britishfashioncouncil.co.uk , Jan 2015 • The UK menswear market grew by 18% between 2008 and 2013 to reach £12.9 billion in 2013 (Mintel, 2014) • Sales have grown almost 5% (4.8%) in the last year as clothing retailers have increasingly turned their attention to menswear (Mintel, 2014 • Mintel forecasts that the men’s fashion market will grow by 27% between 2013 and 2018 to reach £16.4 billion (Mintel, 2014) • There has been a significant increase in the proportion of men shopping for fashion online in the last year, jumping 13 percentage points to 65% of men in 2013 (Mintel, 2014) • Since 2013 sales of online fashion in the UK have increased by an impressive 14.5% to reach £10.7 billion in 2014 (Mintel, 2014) • Today as many as seven in ten (70%) internet users in the UK buy clothing and footwear online, making clothing and footwear the most purchased item online (Mintel, 2014) - BBC, march 2015 The UK's economy grew at a faster pace than initially estimated last year, revised official figures show. The economy grew by 0.6% in the final three months of 2014, up from the previous estimate of 0.5%, the Office for National Statistics said. The unexpected increase meant growth for the year was 2.8%, higher than the earlier estimate of 2.6%.The revised rate marks the highest pace of annual growth since 2006, when the economy grew by 3%.

An expansion in both production and services as well as household spending helped to drive the increase, the official data suggested. But the biggest contribution to the revised figure was a strong performance of exports, the ONS said.

- Telegraph UK, 30 march, 2015 The FTSE 100 group’s American business – which makes up half of its revenue and feeds clients including Amazon – is expected to show continuing growth, and this will be boosted by the strengthening dollar.

- However, continuing troubles in the wider European economy could hit its performance there. Japan is still muted and the fast-growing and emerging business could have seen organic growth weaken as the oil price crash means there aren’t so many mouths to feed on oil rigs and other remote sites. Shares in Compass have gained almost 22pc over the past year and this month reached a record closing high of £12.01.

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Social • Whistles must build unisex appeal to be successful in menswear (Retail-week.com, 2013), as the next big thing among fashion houses is the idea of creating a gender-bias or androgynous diversity in the product line.

[PROOF] In an interview by Szmydke, 2015 for WWD [online], as quoted by the following people, Alber Elbaz and Lucas Ossendrijver, head of men’s design at Lanvin, have been stretching the boundaries of men’s wear since 2006. “I’m not saying men should dress like women, but sometimes men are so considered with their masculinity.”

“The lines are blurring,” says Terry Betts, Selfridges’ men’s merchandising and buying director.

Virginie Sartres, men’s head stylist at French department store Le Bon Marché, reckons androgyny, like other fashion trends, is cyclical, with a new wave coming on stream now.

Fashion’s Bold New Future Has No Gender (Racked, 2015) • Direct and indirect celebrity endorsement by the Duchess of Cambridge. Kate Middleton has been beneficial for the retailer brand.

[PROOF] Whistles are to repeat for spring 11 the items worn by Queen-in-waiting and budding style icon Kate Middleton for her official engagement photographs following an uplift in demand.

(M retail-retail.com, 2015) Baker (2011) also indicated that high-end British retailers, Reiss and Whistles, have already reported a boost in sales from association with Prince William‘s fiancé, Kate Middleton, who has been photographed wearing the brands. The advantage of creating a strong brand image would help distinguish a retailer‘s brand from its competitors (Manikandan, 2012).

• Whistles has a strong online presence. The brand’s e-commerce site is well-tailored providing a great shopping experience for the natives. Whistles has implemented a fourstage international strategy focusing on: 1. Delivery.

2. Payment methods.

3. Translation.

4. Local Content. (Moth, 2014)

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• Ethical practice in manufacturing process is an evident practice. This could be linked to the CEO’s past association with brands like Oxfam and the green label Peopletree. A followon of this could bring on support from eco-friendly companies in the countries where the brands would expand.

[PROOF] An ethical audit into the CMT factory was carried out by SMETA (Sedex Members Ethical Trade Audit) on 9th October 2014 and a senior member of the Whistles team, along with an independent consultant, from17th-20th November 2014. The audits found that all workers are paid above the government-mandated minimum wage, and that pay is increased in proportion to the skills of employees and their duration of employment, workers receive additional remuneration for overtime, have accommodation, food and medical expenses covered and have union representation. CMT exceeds current international requirements for accommodation, providing adequate space and recreational facilities for their workers.

The Fawcett Society was adamant they had done everything they should to ensure that the T-shirts were produced ethically. Whistles and Elle both reasserted their commitment to ethical trade and all three organisations made a commitment to a swift and fair investigation into the matter.

Technology - apparel.edgl.com , 2014 •Smartphone commerce The numbers are in, and by all accounts they confirm the obvious: consumers are increasingly using their smartphones (perhaps twice as much as last year) to shop and purchase. According to Branding Brand CEO Chris Mason, "Smartphones are redefining the way retailers are connecting with consumers, and it's clearly being reflected in the bottom line." From mobile-optimized shopping experiences complete with virtual showrooms, realtime customer service and feedback, social media integration, and personalized datadriven advertising, fashion retailers are rushing to develop a mobile experience that meets the demands of today’ shoppers.

- Wearable technology Wearable tech is breaking through in tangible ways that are just beginning to resonate with popular culture. We're not just talking about watches that serve as miniature extensions of computers and smartphones, but of apparel people actually want to wear, such as clothing fitted with solar panels that charge your mobile devices, smart fabrics that optimize wearer comfort by adjusting color or texture based on environment, or apparel that purifies the air, omits fragrances, or transforms appearance in reaction to mood or sound simply for fashion's sake. It's all coming and more.

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- Fashion shows as tech events The runway has always been about creating a spectacle and pushing the cutting edge, but today more than ever before, designers and production companies are utilizing technology to elevate events to new heights. From models coming down the runways appearing submerged in pools of water thanks to holographic projections, to viewing the action remotely in 360-degree panorama, fashion shows are as much a technological extravaganza as they are a forum to unveil the latest creations out of New York, London, Paris, and Milan. Bloggers and retailers broadcast live from events, and guests plug into social media to voice their impressions and influence purchasing decisions of buyers and shoppers in real-time around the world.

- Tech in the physical space From proximity marketing, to contactless checkout and everything in between, in-store shopping is being revolutionized through innovations that are both creative and functional.

By adding technological elements and capabilities to the physical location, retailers can cultivate a more satisfying experience that meets the heightened expectations of modern shoppers. Features such as virtual fitting rooms where you can "try on" fashions without ever undressing, visual signage social media tickers that tally "likes" of individual articles of clothing, and scannable QR codes that trigger detailed product information and carefully crafted marketing displays on handheld devices are just a few ways retailers are using tech to engage shoppers in brick and mortar locations.

- The supply chain technology now is an important part of creating value and dealing information for companies/ brands. Due to the reasons of customers and suppliers have different expectations. For customers, they want the right product but they want it “when they want it�. And for suppliers, they want less inventory and less risk. To be more efficiently and achieving tight integration supply chain, companies and brands must develop supply chain software technology to make sure information transfer efficiently through the chain. These information Includes: manufacturing, warehousing, selecting appropriate components from logistics, delivering to the end customer and getting feedback from customers (Dawson, 2002).

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Environmental - The old ways of structuring the supply chain and developing logistics strategy are no longer cogent for making sure organizations/companies’ survival in global competitive field. The trend of integrated world economy and global competitive field requires more quicker respond on the need of reducing order cycle times and inventory levels, which in terms of Just in time principles. The trend drives organizations/companies to find a new way to manage the supply chain. More and more companies are outsourcing third party logistics providers on warehousing and distributing solution in order to address seamless supply chain operations (Yemesi, 2001).

- Contemporary brand is on the rise nowadays. Contemporary brands are bridging the gap between Primark to Prada, and in terms of alternative to luxury and designer brands. The opportunity of contemporary brand is to lure customers to aspirational form of luxury with affordable prices. The reality is that qualities in contemporary brands are as good as luxury brands. So now contemporary brands are becoming really competitive segments on the high street (Red Giraffe Advisor, 2014).

- Western Europe market dominates 70% of the apparel retailers. Many international companies and brands import apparel items from developing countries such as China and India, and benefit from cheaper labours. However, manufacturing processes now surrounded by intense media, government regulations and customers’ expectation of labours’ working conditions that have forced international companies and brands reconsider their ethical trading policies to ensure fair working condition for workers. Now ethical trading policies are integrated with companies and brands’ overall marketing strategy (Iwanow et al, 2005).

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Appendix3 - 7Ps Product Womenswear – Contemporary casual and workwear , Minimalist, Wearable day and night Signature jumpsuit, Cashmere knitwear, Silk dress, Print Accessories ( scarf, hat, sunglasses, Earrings, Key ring, Phone case) Shoes, Bags and Leather goods Menswear - Contemporary casual, Functionality with premium materials, Clean print, Simple silhouettes Sportswear, Indigo blue and cool greys tone Accessories ( Socks, Caps) Shoes, Bags and Leather goods

Price Premium price range, between middle high street and luxury Range from £30 - £400 Womenswear - Starting Price point with T-shirt at £30 - £95 Dress £85 - £ 300 Jacket and Coat £ 95 – £1,500 (Fur) Jumpsuit £140 - £295 Shoes £130 - £300 Accessories £15-£300 Menswear - Top £30 - £155 Jacket £95 -£400 Trousers £85- £175 Shoes £145 - £250 Note: Menswear price range is slightly lower than womenswear

Place Office based in London Stores locations

UK – Flagship stores, Concession stores in Department stores

China mainland and Hong Kong – Lane Crawford Department store ( Wholesale)

France – Printemps, Bhv Marais, Galleries Lafayette Germany Holland Ireland

Russia – Moscow (Wholesale) Switzerland

USA – Bloomingdale’s (Concession stores) Online store : Whistles.com Manufactures in : China for Cotton, Silk, Knitwear Turkey for Fine Fabric and leather Portugal for T-shirt India for Leather and Fur Lithuania for Cheap suit and parka

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Promotion

Aims to move towards younger customers and working ages (25-50 years old)

Global expansion with Department store strategy

Ecommerce site – online store ( Just one main website) Marketing PPC/search

Social (including social medias and mobile) Affiliates Content Email Communications

Advertising campaigns – Short Video #belleandwhistles, Print Ads

Social medias – Facebook, Instagram, Twitter, Pinterest, Youtube

Blogging – Whistles Official websites ( Journal, Inspiration, Lookbook, Film) Partner with Bloggers ( Garance Dore)

London Fashion week ( Started on Feb 2014)

People 500-1,000 employees Involve people at every level in most decisions Country manager for each overseas ( no hub) Target customers age 25-50 years old ( Office workers)

Process

Keep delivery new styles into stores every week (10-15 styles/ week) and every 3 wholesale.

weeks for

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Appendix4 - Financial Whistles report Turnover

2008

2009

2010

2011

2012

2013

2014

34.5

32.9

33

37.8

39.1

48.6

55.2

(in mio.GBP)

% change in TO

-4.64%

0.30% 14.55% 3.44% 24.30% 13.58%

Cost of Sales

(in mio.GBP)

12.7

13.4

12

12.7

12.4

16.1

19.5

Gross Profit

(in mio.GBP)

21.8

19.5

21

25.1

26.7

32.5

35.7

63.2%

59.3%

63.6% 66.4% 68.3%

66.9%

64.7%

(in mio.GBP)

16.2

16.1

16.6

18

18.5

20.5

22.7

(in mio.GBP)

4.7

6.4

6.9

7.7

8.7

10.3

10.3

(in mio.GBP)

0.9

-3

-2.5

-0.6

-0.5

1.7

2.7

2.6%

-9.1%

-7.6%

-1.6% -1.3%

3.5%

4.9%

3.6

4

2.7

3.2

3.6

5.1

6

38

44

30

31

34

38

40

2.1

1.9

2.6

2.3

2.8

3.9

4.9

22

21

29

22

26

29

32

Gross Margin

Operating Profit Net margin Stocks

(in mio.GBP)

No of Days Sales Debtors

(in mio.GBP)

No of Days Sales

Reiss report

Turnover

2008

2009

2010

2011

2012

2013

2014

60,637,758

73,948,935

77,683,000

87,568,000

91,060,000

91,960,000

98281000

21.95%

5.05%

12.72%

3.99%

0.99%

6.87%

26,003,033

27,151,000

29,346,000

31,755,000

34,138,000

35,829,000

50,532,000

58,222,000

59,305,000

57,822,000

62,452,000

% change in TO Cost of Sales

19,250,423

Gross Profit

41,387,335

Gross Margin Admin Expenses Other Operating income

Operating Profit Net margin

Stocks No of Days Sales Debtors

116

47,945,902

68.3%

64.8%

65.0%

66.5%

65.1%

62.9%

63.5%

33,108,687

44,024,080

46,625,000

49,994,000

52,943,000

55,037,000

56,336,000

550,027

331,709

394,000

307,000

309,000

395,000

221,000

8,828,675

4,253,531

4,301,000

8,535,000

6,671,000

3,180,000

6,337,000

14.6%

5.8%

5.5%

9.7%

7.3%

3.5%

6.4%

8,722,005

9,614,844

9,202,000

9,536,000

11,668,000

10,873,000

12,129,000

53

47

43

40

47

43

45

15,417,561

17,214,018

12,353,000

13,290,000

17,960,000

18,698,000

16,180,000

93

85

58

55

72

74

60

Ted baker report

Turnover

(in 000 GBP)

2008

2009

2010

2011

2012

2013

2014

142,231

152,661

163,586

187,700

215,625

254,466

321,921

7.33%

7.16%

14.74%

14.88%

18.01%

26.51%

% change in TO

(in 000 GBP)

Cost of Sales

(in 000 GBP)

59,560

63,295

63659

71923

83419

Gross Profit

(in 000 GBP)

82,671

89,366

99,927

115,777

132,206

Gross Margin

58.1%

58.5%

61.1%

61.7%

95740 123,451

158,726

61.3%

62.4%

198470 61.7%

Distribution Cost

(in 000 GBP)

48,320

56,744

64,573

73,690

101,357

82,358

123,211

Administrative Expenses

(in 000 GBP)

17,844

20,990

21,145

24,259

29,640

32,984

43,381

2,814

2,614

1046

142

234

Execptional costs Other operating income

(in 000 GBP)

5,635

5,529

80

142

Other operating expense

132

Licence Income Operating Profit

(in 000 GBP)

22,142

Net margin

15.6%

17,161 11.2%

5943

6,733

6,733

7,509

8,888

19,782

24,132

24,269

29,514

39,588

13.7%

9.5%

9.2%

12.1%

12.9%

(in 000 GBP) Stock

(in 000 GBP)

No of Days Sale Debtors

(in 000 GBP)

No of days sales

29,315

29,315

33,450

42,492

51,872

67,673

80,432

75

70

75

83

88

97

91

8,710

14,128

19,698

24,112

30,587

34,124

34,793

22

34

44

47

52

49

39

UK GDP growth Year GDP Growth rate

2008 -0.3

2009 -4.3

2010 1.9

2011 1.6

2012 0.7

2013 1.7

2014 2.7

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Appendix5 Store observation • Stores Visited: 1. London

Dover Street flagship

St Christopher’s flagship

Harrods at Knightsbridge

Harvey Nichols at Knightsbridge

Selfridges at Oxford Street

Parsons Green at Parsons Green lane

South Milton Street Store

St Pancras International Station

Thayer Street Store

House of Frasier

Reiss flagship (competitor) 2.

Nottingham Store 3.

Bath Store 4.

Manchester Store

• The brand has two flagship stores, which could be misleading for the customers. Not many people are aware of the two flagships.

• The flagship on Dover Street is comparatively small. The store does not offer menswear. The products offered in this flagship are very limited and only few select pieces are available. The store in has two levels, a ground level and an underground level.

The ground level displays the women’s-wear products with 3 sales assistants always ready to help.

The underground level has a huge TV screen continuously showcasing the ramp walks and latest collections. This level displays the accessories and bags. There is a wide range of sunglasses at this level. The level displayed the previous season collections at the back.

The Dover Street store neighbours luxury stores like Victoria Beckham and Chanel. This could be misleading, as Whistles is not a brand offering that price range. The store was not very busy with one customer walking in every 30 mins.

The sales assistants suggested tourist usually frequent this store more than locals. They also said the store had a fixed set of local clients who visit when new collections are displayed. The store is said to be extremely busy during the sales period.

• The flagship at St Christopher’s is very well located. The store is surrounded with offices (the target market of the brand) The store has 2 entrances. One entrance directly to the menswear and the second entrance to the womenswear. The menswear section has one level whereas the womesnwear section has 3 levels- a ground, upperground and lower ground. This flagship has a wide range of menswear products with the latest seasons collections.

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The sales assistance suggested the store is more frequented by women than men. Women always accompany the men. The store is extremely busy during the lunch hours and after 5p.m. The store is most frequented by working women who attend offices in that area.

The ground level displays the latest womenswear collections. The upper ground level is comparatively small offering a smaller range of T-shirts and Blouses. The underground level displays the sales collections and the previous seasons collections.

Young college girls who aspire this brand also frequent this store. The sales assisted informed about the store being most frequented by these young girls aged 20-25/26 during the sales period to buy their favourite pieces. The store is also busy during the Grazia magazine offer season.

We were told Jane Shepherdson visits the store twice a week. During her visit she tries on a few garments for the fit and comfort. There are sometimes pieces unknown to her, as she is not very actively involved with the production.

• Whistles stores sales shoot up during the sales period as the customers look forward to their favourite pieces prices falling. The stores are also busy during and after Christmas and black Friday.

• The price range of the products range according to the made in country. Some of the price ranges noted of some products were, 1. Made in China – £130 2. Denim made in Turkey - £85 (price range for denims starts from £75) 3. T-shirts made in Mauritius - £45 Some of the cheapest products come from India, Portugal and Mauritius, Belarus and compared to that products made from Lithuania are expensive.

• There is one common factor observed in all the stores, no point of difference seen in different collections. The Limited collection, their most expensive collection is not very well displayed and differentiated from the rest of the stock. This collection sits with all the other collections. The sales assistant at Harrods informed us that the customers are usually unaware of the product lines and buy the pieces they like. The concessions at Harrods neighbours Reiss. With the similarity in display and product offerings, it is very difficult to differentiate the two brands.

• The product display of the stores is miscellaneous in terms of material and product type. The display is arranged to create a look of the season, which inspires the customers to buy the other product too and are colour co-ordinated.

• The store receives very few returns, mostly of products bought.

• Very few customer’s walk-in into the store for alterations, mainly men. But mostly the product offers a comfortable fit.

• As a new introduction to the menswear collection, the brand has dedicated a large section at the Christopher’s Place flagship store, compared to accessories, shoes and bags.

• New stock- slow fashion is the concept majorly.

• Every month four major new looks are released for the season.

• At the Reiss flagship store, many similarities in product range were noticed.

• Mostly men of the age group 25-35 were noticed buying formal clothing or office wear.

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Appendix6 - Questionnaire and Analysis Questionnaire We are researching about a fashion retail brand Whistles, and as part of that project are interested in your experiences and views about the brand. The information you provide will be collated with others and analysed. It will be treated in strictest confidence and you will not be individually identified in any presentations of the results. All questionnaires will be kept in accordance with the Data Protection Act and destroyed at the end of the project.

Your participation in this study is completely voluntary. There are no foreseeable risks associated with this report. However, if you feel uncomfortable answering any questions, you can withdraw from the survey at any point. It should take about five minutes of your time. Thank you very much for you support.

The participants are 73 fashion conscious people within the UK. 1. Gender Female 60.78 % Male 39.22% 2. Age 18 -25 years old 27.40% 26-35 years old 20.55% 36-50 years old 52.06% 3. What product do you usually shop from Whistles ?

Menswear 18.15% Womenswear 45% Bags 4.69% Shoes 9.36% Accessories 31.56% 4. Have you subscribed to any Whistles media channel? (Such as Facebook, Instagram or Twitter) No 95.31% Yes 4.69%

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5.vHow do you know about Whistles promotional activities?

Official website 22.70% Social media 16.35% Blog 3.17% Magazine 16.35% Newsletter 3.17% Word-of-mouth 7.94% Not really notice it 30.32%

6. How do you rate the packaging of a Whistles product on a scale of 1 to 5? ( 1= lowest, 5= highest) 1 : 6.45% 2 : 15.81% 3 : 46.77% 4 : 26.13% 5 : 4.84%

7. Do you receive your order on time whether from in-store or online?

Yes 38.33% No 40% I have never bought/ ordered from Whistles 21.67%

8. In case of a cancelled order, have you received your refund on time?

Yes 27.12% No 50.85% I’ve never return the product 22.03%

9. How would you rate the following retail brands with respect to overall experience (Product, Price, Service, and In-store environment) on a scale of 1 to 4 with 1 = lowest.

1.

TED BAKER (1: 25.45% 2: 12.73% 3: 10.91% 4: 50.91%) Score : 2.13

2.

COS (1: 14.55% 2: 20.00% 3: 40.00% 4: 25.45% ) Score : 2.24

3.

WHISTLES (1: 30.91% 2: 30.91% 3: 25.45% 4: 12.73 ) Score : 2.80

4.

REISS (1: 29.09% 2: 36.36% 3: 23.64% 4: 10.91% ) Score : 2.84

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Appendix7 - Team minutes RESPONSIBILITIES Andy

Nan

Radhika

Karishma

Supply chain, Logistics Technology, Environmental Threat

Graphic Designer, Researcher, Co-ordinator

Marketing Economy, Technology Opportunity

Monitor evaluator, Graphic Designer, Co-ordinator

Branding Social Weakness

Planner, Proof reading, problem solver,

Layout, Primary research

, Primary research

collector IT support, Analysis, Notes keeper

Growth strategies, product diversification Planner, Proof reading, Data analysis Co-ordinator, Political, legal Finalising Strengths

ROLLING ACTION PLAN ACTIVITY Secondary Research-­‐ company history and profile Relted Reading -­‐ Journals, newpaper and other sources Refering to last years work Individual Chapter research Store Analysis-­‐ London SWOT analysis PESTLE analysis Store Observation Nottinghm Store observation Manchester Preparation for Primary Reserch Compilation of Individual Chapters Compilation Of Document Editing Printing Draft Submission

122

RESPONSIBILITY

TIME FRAME

STATUS

All

26 Jan-­‐ 02 Feb

70% Completed

All

25 Jan-­‐ 05 Feb

All All All All All All Radhika All

Feb Feb Feb-­‐19 Feb-­‐22 Feb28-­‐Mar5 Feb 27-­‐Feb28 5-­‐Mar March 20-­‐30

Incomplete In progress Done Completed In Progress Completed Completed In complete

All

March 10-­‐13

Incomplete

All Andy All

March 13-­‐15 March 10 -­‐ Mar 15 Mar-­‐15 Mar-­‐16

Incomplete Incomplete Incomplete

COMMENTS

Team minutes 90 mins Library

Karishma Nan Radhika

Final GANTT Chart Assigned responsibilities Assigned Chapters Discussed strength and weakness Read through existing articles and news

120 mins Library (Group study table 'F')

Andy Karishma Nan Radhika

13th February 2015 Friday

Plan store observation Discuss progress

120mins Library (Group study room 6)

Andy Karishma Nan Radhika

10th February 2015 Tuesday

Group tutorial

30 mins Arkwright 103

Andy Karishma Nan Radhika

24th February 2015 Tuesday

Discussed SWOT Brought together store observation findings Discussed agenda Tentative table of contents

60mins Library

Andy Karishma Nan Radhika

25th February 2015 Wednesday

Group tutorial

30 mins Waverly 113

Andy Karishma Nan Radhika

2nd March 2015 Monday

Chapter sub-­‐topics discussion Mind mapping Finalised topics to submit for draft

120 mins Library

Andy Karishma Nan Radhika

9th March 2015

Team Minutes Agenda Rlling Action Plan

60 mins NTSU

Andy Karishma Nan Radhika

17th March 2015

Mock presentation

195 mins Group Tables C & H

29th January 2015 Thursday

Constructed initial GANTT Chart Discussed brief

5th February 2015 Thursday

28th March 2015

Finance Agenda for 29th

29th March

Finishing date Presentation Team Statement Questionnaire for primary TOTAL

1st April

Karishma Nan Radhika Andy (absentee)

120 mins Study Inn -­‐ conference room

Karishma Radhika

150 mins Group study room 2

Andy Karishma Nan Radhika

1,095 mins

Draft Feedback

30 mins

Andy Karishma Nan Radhika

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Appendix8 - Ethical Clearance

124

125