fall 2013 buying plan - women’s outerwear
ashima chauhan
table of contents
Store Profile
3
Customer Profile
7
Demographics/ Psychographics
8
Six-month Business Plan
11
Stock Assortment Plans
12
Market Purchases and Justifications
15
Sales/ Marketing/ Training/ Promotion
74
store profile Barneys New York is an American chain of luxury department stores spread out across more than 40 locations in the United States, including ten full-size flagship stores. Its headquarters in Manhattan, New York.
It was founded in 1923 by Barney Pressman, and was recently acquired by Perry Capital, which is a private hedge fund firm. The store sells designer apparel for men, women, and children; as well as shoes; accessories; and home furnishings. It mainly caters to an upscale clientele and is perceived as a prestigious shopping destination for the affluent. Its competitors include Bloomingdale’s, Brooks Brothers, SAKS Fifth Avenue, to name a few.
chicago store The Barneys in Chicago was opened up in 1992. It is located on Oak Street. It includes services such as: Bridal/Gift Registry, the Personal shopping service, as well as Fred’s Restaurant, which is a signature restaurant to certain Barneys stores; Chicago being one of them. The store itself is located in downtown Chicago among a lot of high-end designer labels and restaurants, and therefore, expects an upscale clientele.
new york store Â
The New York store is located in
Manhattan and has the same services provided by the Chicago store with the addition of a few more services like: Studio service, which is a sort of discreet shopping service mainly available for stylists, designers, and celebrities; Concierge service providing, restaurant reservations, tickets, car services, etc.; they also have Make-up Artists in residence; and a Completely Bare, Hi-Tech Spa for luxury spa services. These services draw the attention of the likes of various celebrities. In addition to these services, the store incorporated a 22,000 square-feet section recently dedicated to women’s shoes, in July. Due to the enormity and location of this store, along with the fact that it is the flagship store, the New York Barneys has the highest amount of importance.
boston store The Boston store is located at Copley Place, which is a mall in Boston and was opened in 2004. Its structure emulates a store-within-a-mall layout. The mall itself carries a variety of high-end luxury brands. The Barneys includes services such as the Concierge Service, Personal Shopping service, and Make up Artists in Residence.
customer profile Â
Our customer is a young professional
woman who lives in the city, has a challenging job in a higher level profession, with a high income and household size of around 1-3. Despite her hectic job, she still goes out, spends time with her friends and family, dresses up when she feels like and is open to changing her look everyday. Her income lies in the six figures bracket. She is well educated and has a good sense of high-fashion brands and relies on them for their quality and unconventional designs, especially outerwear.
demographics/ psychographics When we go into the Demographics/Psychographics of each city, we can see a lot of similarities in all three cities. Race, for example, there are predominantly white people in all of these areas. New York has a higher number of Hispanic/Latino population, which we need to keep in mind when buying different colors of the same product. While Chicago has a higher number of Asian demographics, which could impact sizing decisions. They are mainly between the ages of 30-49, which includes new families as well as established families with a discretionary income of about 20-30%. Their incomes are higher especially in between the $75,000-$200,000 bracket, which means that the people living in these areas are quite well off and are more likely to be able afford expensive products. Most of these people are employed in the Management and Professional sectors in all three cities. Most of the people in New York and Boston are single, however, more people are married in the area in Chicago, which makes spending less conservative in NY and Boston, while people in Chicago might spend more conservatively due to other family expenses they incur. Most of these people are educated and have either a Bachelor’s degree or Graduate degree. This ups their chances of being aware about luxury brands, drawing them to the store even more.
demographics/ psychographics Income
Age
0 to 9 10 to 19 20 to 29 30-49 50-79
80+
Race 100.0% 80.0% 60.0%
Chicago
40.0%
Boston
20.0%
New York
H
O th er
ia n As
Bl ac k
te
W hi
is p
an i
c
0.0%
0+ 00 0, 20
00 ,0 $7 5
-3 4, 9
$1 0
,0
0%
00
<1 0
10%
99
,0 00
20%
,0
30%
$3 5
40%
00 -
35% 30% 25% 20% 15% 10% 5% 0%
50%
demographics/ psychographics Educational Achievement
Marital Status 60% 50%
50% 40% 30% 20% 10% 0%
40% 30% 20%
<9 th
gr ad e 912 H .S th .G ra du So at m e eC ol leg e As so cia te 's Ba ch elo r's G ra du at e
10% 0%
Never Married Separated Widowed Divorced Married
Occupation 80% 70% 60% 50% 40% 30% 20% 10% 0%
Chicago
M
an ag em
en Se t Sa rv les ice /O ffi ce Fa C on r str m uc Pr tio od n uc tio n
Boston New York
stock assortment plan Product: Women’s Outerwear Classification
August
Trench coats & Rainwear
30%
35%
30%
23%
20%
20%
Leather, Suede & Shearling
30%
40%
23%
17%
12%
5%
Down/Puffer
10%
3%
17%
40%
32%
30%
Wool & Cashmere
15%
17%
13%
13%
23%
25%
Fur & Faux Fur
15%
5%
17%
7%
13%
20%
100%
100%
100%
100%
100%
100%
Total
September October November December January
stock assortment plan
45% 40% 35%
Trench coats & Rainwear
30%
Leather, Suede & Shearling Down/Puffer
25% 20%
Wool & Cashmere
15% 10% 5%
Se p
A ug
us t&
te m be r& O ct ob er & N ov em be r& D ec em be r& Ja nu ar y&
0%
market purchases
august purchases
Class
Planned
Actual
Trench coats & Rainwear
$118,000
$117,600
Leather, Suede & Shearling
$118,500
$118,395
Down/ PuďŹ&#x20AC;er
$39,500
$39,390
Wool & Cashmere
$59,200
$57,130
Fur & Faux Fur
$59,200
$58,550
Total
$395,000
$391,065
september purchases
Class
Planned
Actual
Trench coats & Rainwear
$242,100
$240,155
Leather, Suede & Shearling
$276,700
$272,025
Down/ PuďŹ&#x20AC;er
$20,700
$20,680
Wool & Cashmere
$117,600
$116,875
Fur & Faux Fur
$34,600
$34,063
Total
$691,700
$683,798
november purchases
Class
Planned
Actual
Trench coats & Rainwear
$18,700
$17,920
Leather, Suede & Shearling
$13,800
$13,200
Down/ PuďŹ&#x20AC;er
$32,500
$32,265
Wool & Cashmere
$10,600
$10,320
Fur & Faux Fur
$5,700
$5,670
Total
$81,300
$79,375
january purchases
Class
Planned
Actual
Trench coats & Rainwear
$63,900
$63,085
Leather, Suede & Shearling
$16,000
$15,520
Down/ PuďŹ&#x20AC;er
$95,900
$94,925
Wool & Cashmere
$79,900
$79,330
Fur & Faux Fur
$63,900
$63,105
Total
$319,700
$315,965
sales, marketing, training & promotion
august 2013
S
M
T
W
T
F
S
4 Window Display Contest
5 Email blasts
6
7
8
9
10
11
12
13
14
15
16
17
18 Window Display Contest winner announced
19
20 Customer Review
21
22
23
24
25
26
27
28
29
30
31
Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Window Display Contest - Most Innovative idea by any employee is given a free ticket to watch Broadway play in October (inclusive of travel and lodging expenses)
s eptember 2013
S
M
T
W
T
F
S
1
2 Labor Day Sale
3
4
5 Email blasts
6
7
8 Moda Operandi Partnership
9
10
11
12
13
14
15
16
17
18 Customer Review
19
20
21 Moda Operandi Partnership concludes
22
23
24
25
26
27
28
29
30
1
2
3
4
5 Email blasts
Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Labor Day Sale - Offers a one day sale of upto 20-30% Moda Operandi Partnership - Barneys partners w/ Moda Operandi for the â&#x20AC;&#x2DC;Moda Operandi Collection - Exclusively at Barneysâ&#x20AC;&#x2122; campaign, whereby customers can actually view and buy runway garments from Fashion Week, as opposed to online.
october 2013 S
M
T
W
T
F
S
6
7
8
9
10 Augmented Reality installation promotions begin
11
12
13
14
15
16
17
18
19
20 Augmented Reality Party
21
22
23
24 Customer Review
25
26
27
28
29
30
31
1
2
Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Augmented Reality installation - Customers download an app on their phone through which a storefront is brought to life right before them. They can immediately buy the products from where they are. Augmented Reality Promotional Party - Customers are greeted with champagne and hors dâ&#x20AC;&#x2122;oeuvres while they shop, prepared at Fredâ&#x20AC;&#x2122;s Restaurant (exclusive to Chicago & New York), while the app and details are explained.
november 2013
S
M
T
W
T
F
S
3
4
5 Email blasts
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25 Customer Review
26
27
28 Thanksgiving Sale
29
30
Email blasts - Every 5th day of the month. Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products. Thanksgiving/ Black Friday Sale - Select items offered at 30-35% discount.
december 2013
S
M
T
W
T
F
S
1
2
3
4
5 Email blasts
6
7 Holiday Season Employee Workshop
8 Holiday Season Employee Workshop
9 Private Sales begins
10
11
12
13
14
15
16
17 Customer Review
18
19
20
21 Private Sales concluded
22
23
24
25
26
27
28
29
30
31
1
2
3
4
Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Private Sales - to exclusive Barneysâ&#x20AC;&#x2122; preferred customers. Holiday Season Employee Workshop Program - Seasonal + regular employees are trained and given one-on-one education about what is to be expected during the holiday season, etc.
j anuary 2013
S
M
T
W
T
F
S
5 Email blasts
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26 Employee Appreciation
27 Employee Appreciation
28 Employee Appreciation
29 Employee Appreciation
30 Employee Appreciation
31 Employee Appreciation
1 Employee Appreciation
Email blasts - Every 5th day of the month Customer Review - Make calls to loyal customers/ ask about satisfaction w/ products Employee Appreciation Month - Employee of the Month winner is announced at the end of the month, while employees compete to have highest number of sales. Last week includes different, innovative challenges headed by the department manager. Winner is given a $5,000 bonus.