Retail Buying Stimulation
Daniel Green
Fall Quarter 2015
Created by: Makayla Hirst
Jasmine Shields
Pan Wang
Daniella Gonsalves Adriana Jastram
Table of Contents 1.)Brand Identity 2.)Mission Statement 3.)Size and Scope 4.)Customer Profiles -Claire Corrigan -Grace Hampton -George Axton -Martin Guidarelli 5.)Marketing Venues 6.)Key Competitors 7.)Handbag Trends -Sports Backpack -Cross Body Handbag -Drawstring Bucket Bag -The Clutch -The Tote Bag -The Double Strap Handbag 8.)Corporate Buying Plan 9.) Dallas, Texas Buying Plan 10.)Fort Lauderdale, Florida Buying Plan 11.)Assortment Plan 12.)Final Statement
Brand Identity
Timeless Luxury Classic Quality Chic
Mission Statement Our goal at The Neiman Marcus Group is to excel in each aspect of our business - merchandise, customer service and marketing. We strive to be the best luxury and fashion retailer. We will continue to innovate, adapt and engage our customers so that they can shop with us anytime, anywhere and any place.
Size and Scope
Neiman Marcus has 41 stores across the United States with their flagship store located in Dallas, Texas. Their flagship store is also one of their oldest locations and contains one of the highest loyal customer base within Neiman Marcus. Other store locatons include, Atlanta, Beverly Hills, Boston, Chicago, Las Vegas, Minneapolis, San Francisco and St. Louis.
Customer Profiles
Claire Corrigan u 30 years of age u Graduated from NYU with a masters in journalism u Lives Chicago, Illinois u Works as a Chief editor for a big time magazine, “The Row” u $120,500 per year u Is independent and single u Owns a dog named Louie u Loves to travel u Interested in art and culture u Yoga, environmentalist, reading u Spends free time in local coffee shops
Grace Hampton u 63 years old u Lives outside of Boston, Massachusetts u Head of an interior design firm “Classic Interiors” u $140,754 a year u Enjoys timeless fashion and always has the largest transaction when shopping u Culturally Diverse, travels a lot, enjoys spa days, eye for art u Married to her rich husband Charles for 38 years u Never had children u Organic and very health conscious u Artistic qualities (painting and drawing)
George Axton ² Graduated with a masters in Film Production at UCLA ² Lives in Los Angeles, California ² Film Producer ² 35 years of age ² Engaged to his Fiancé Caitlyn Mara ² Owns a house overlooking the water ² $130,900 per year ² Owns a Porsche ² Loves to travel, eat out at nice restaurants, culturally diverse ² Plays polo, golf ² Belongs to a country club
Martin Guidarelli ² Owns several Italian family owned Restaurants know as “Guidarelli” ² Miami, Florida ² 55 years old ² $1,234,876 a year ² Married to Elizabeth ² Two young boys named Mark and Beckham ² Family vacations every Christmas ² Owns a Golden retriever named Rocky ² Enjoys spending time with his family ² Enjoys yachting and being out on the water
MARKETING VENUES Neiman Marcus “the book” is released every month, and available for subscription. It has the style of a magazine. The content includes trend reviews by the fashion director, important events and news in the fashion industry related to the company. In addition, it creates interviews with important people from the industry and includes ads from all the Neiman Marcus Group stores. Neiman Marcus is famous for its anual christmas catalog and also offers a cook book. Neiman Marcus digital blogs include “The Blog” and “InSite.” The blog mostly features street fashion, editor’s picks and in store events. “InSite” is a creative fashion catalog in the website that features the latest trends in fashion and has links that direct the reader where to find these items in the Neiman Marcus website.
Neiman Marcus is interested in maintining long-lasting loyal relationships with their customers. With the InCircle card customers earn two points for every dollar spent, and once $10,000 are spent, Neiman Marcus will mail a $100 Point Card to that customer. In addition, if customers sign up for email they will obtain a 10% discount off their next purchase, and useful information about trends and runway news, events, tips from NM stylists and more. Neiman Marcus have an app that enhances customer experience. Its latest features include making InStore purchases with the app as well as being able to communicate with sales associates at the user’s nearest store. Also, it adds events to a personal calendar exploring new designer arrivals and more. Neiman Marcus has a broad social presence on Instagram, Facebook, Twitter, and Pinterest. Neiman Marcus recognizes bold women with bold voices who are making their mark on the world. NM invites customers to get involved with the #NMMakeSomeNoise, which is the latest hashtag on Instagram.
Competitiors
They successfully reach a younger customer segment. Saks has an edgy aesthetic. Saks gets involved in celebrity collaborations. The latest collaboration was with the movie Scandal, where they produced a collection based on the movie in addition to window displays. Shipping costs are highest in comparison to competitors.
Barneys features exclusive content from newest designers
Nordstrom has a wider price range and customer base.
Very edgy and modern aesthetic.
Topshop and Madewell partnerships attract a younger target market.
Barney’s partnered with HUGE to update their e-commerce website which resulted in a 34% sales increase.
Social Media Innovation instagram #Like2Buy features instagram posts where customers can buy the merchandise with just a click.
Won the OMA advertising creativity award Innovative touch screen table.
Private Label brand strategy Treasure and Bond Strong Social Responsibilty program
Handbag Trends
Lifestyle and Technology Trends
CORE COMPENTENCIES
Strong Brand Portfolio
Neiman Marcus holds approximately 850+ luxury brands from A-Z. Some of their top designer and beauty brands include: Akris, Armani Prive, Burberry, Chanel, Chloe, Diane von Furstenberg, Eileen Fisher, Fresh, Givenchy, Lela Rose, Oscar de la Renta, Tom Ford, and Vince.
Multi-channel Mix
At Neiman Marcus, the merchandise is sold through multiple channels, in order to enhance the market. The diversity in channels, provide a positive shopping experience for the customers. In addition, this improves the company’s sales and inventory turnover.
Successful Inventory Management
The company meets the needs of the customer by managing the inventory, efficiently. In order to satisfy the demands of customers and increase the overall sales, the company monitors the inventory levels and product mixes through the use of merchandising and within the distribution facilities.
Solid Investments
The company plans to invest approximately 7% of its 850 + designer shops, while increasing the number of designer’s shops by 20%. This is in an effort to modernize stores, increase productivity, and strengthen relationships with designers. The company believes that the goal of spending is to “increase customer traffic and generate significant returns.”
Increased revenue compared to its competitors.
Sales increased to $1.22 billion from $1.16 billion, as of May 2015. When it comes to their revenue, the company holds approximately $3.9 billion since the third quarter ended this past May.
Domestic Expansion
High demand for luxury fashion in major hubs like New York City and Dallas Texas.
Market Updates
The ability to update market each season to meet consumer needs. A buyer’s job is to create and maintain a sustainable flow of receipts. With this in mind, the company plans to increase the number of designers’ shops by 20%. In addition, they plan to increase their form of payments, which will appeal to younger consumers.
Maximizing Technology
According to Daily Journal of Commerce, luxury retailers like Neiman Marcus and Nordstrom are testing new ways, such as, “smart mirrors” to display their merchandise. The smart mirror will be placed in all of the fitting rooms, snapping screen shots and providing comparisons as well as suggestions on how to wear each piece.
GROWTH PLANS
Exclusive Shopping Experience
Approximately 40% of their brands can’t be found on competitors.
Strong Brand Identity The Company has a strong brand portfolio, consisting a wide array of branded and private label merchandise, a strong brand image, and high quality, luxury product lines. Neiman Marcus holds approximately 850+ luxury brands from A-Z.
Loyalty Programs The company’s loyalty program, “InCircle,” features private in-store events and the ability to accumulate reward points on certain purchases. The purpose of this program is to create long term relationships with Neiman Marcus customers.
Strong Online Presence
The company believes that over 75% of luxury spending from customers are influenced through their e-commerce site, “neimanmarcus.com.” Approximately 26% of purchases were transacted online for the fiscal year of 2015.
Target Audience Average Age is 50+
The average age of the Neiman Marcus customer is 51. As a result, they lack the ability to reach their younger target market.
Only Offers High Price Points
The average price range is roughly around $150-$2,000.
Execution of Omni channel Management
Neiman Marcus has separate buying teams for e-commerce and their brick and mortar stores as oppose to one big team.
International Shipping Restrictions
•Shipping charges may apply for any orders outside of the U.S.
Opening of New York Flagship Stores
Neiman Marcus plans to open two new locations in New York: “Roosevelt Field” (expected in 2016) and “Hudson Yards” (expected in 2019).
Sales of Luxury Goods
Consistent growth in the global luxury goods market.
Targeting the Millennials
Young Adults Are Drifting Away From Fast Fashion.
Exclusive Brand Portfolio
Many of their brands are not offered at other retailers, like Nordstrom or Bloomingdales.
Competition
A majority of the suppliers work with the competition.
Vertical Integration
Brands at the company may want to go vertical.
Counterfeits/Knock-Off Merchandise Many fast fashion retailers create copies of expensive designs in cheaper fabric and/or materials.
6 MONTH BUYING PLAN
Project Model
NEIMAN MARCUS 6 Month Buying Plan Spring 2016 (000's) Focus Product Category: Handbags Spring 2016 Plan Net Sales, Spring 2016 Est. Net Sales, Spring 2015 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's) Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost
175,000.0 168,000.0 4.17% 83514.3 2.10 35000.0 20.0% 61.0%
Spring 2016 6 Month Buying Plan February 28000.0 16.0% 95200.0 3.4 99750.0 2800.0 8.0% 35350.0 13786.5
March 33250.0 19.0% 99750.0 3.0 94500.0 5250.0 15.0% 33250.0 12967.5
April 31500.0 18.0% 94500.0 3.0 89250.0 5250.0 15.0% 31500.0 12285.0
May 29750.0 17.0% 89250.0 3.0 81900.0 7700.0 22.0% 30100.0 11739.0
June 31500.0 18.0% 81900.0 2.6 63000.0 8750.0 25.0% 21350.0 8326.5
July 21000.0 12.0% 63000.0 3.0 61000.0 5250.0 15.0% 24250.0 9457.5
Spring 2016 175,000.0 100.0% 83514.3
35000.0 100.0% 175800.0 68562.0
2.10
Project Model
NEIMAN MARCUS 6 Month Buying Plan Spring 2016 NorthPark (Dallas), TX (000's) Focus Product Category: Handbags Spring 2016 Plan Net Sales, Spring 2016 Est. Net Sales, Spring 2015 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's) Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost
10000.0 9615.0 4.00% 3725.7 2.68 2000.0 20.0% 61.0%
Spring 2016 6 Month Buying Plan February 1600.0 16.0% 4480.0 2.8 4750.0 160.0 8.0% 2030.0 791.7
March 1900.0 19.0% 4750.0 2.5 4320.0 300.0 15.0% 1770.0 690.3
April 1800.0 18.0% 4320.0 2.4 3910.0 300.0 15.0% 1690.0 659.1
May 1700.0 17.0% 3910.0 2.3 3600.0 440.0 22.0% 1830.0 713.7
June 1800.0 18.0% 3600.0 2.0 2520.0 500.0 25.0% 1220.0 475.8
July 1200.0 12.0% 2520.0 2.1 2500.0 300.0 15.0% 1480.0 577.2
Spring 2016 10000.0 100.0% 3725.7 2000.0 100.0% 10020.0 3907.8
2.68
NorthPark (Dallas), Texas STORE PLAN
Project Model
NEIMAN MARCUS 6 Month Buying Plan Spring 2016 Ft. Lauderdale, FLA. (000's) Focus Product Category: Handbags Spring 2016 Plan Net Sales, Spring 2016 Est. Net Sales, Spring 2015 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's) Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost
4000.0 3845.0 4.03% 1895.4 2.11 800.0 20.0% 61.0%
Spring 2016 6 Month Buying Plan February 640.0 16.0% 2176.0 3.4 2280.0 64.0 8.0% 808.0 315.1
March 760.0 19.0% 2280.0 3.0 2160.0 120.0 15.0% 760.0 296.4
April 720.0 18.0% 2160.0 3.0 2040.0 120.0 15.0% 720.0 280.8
May 680.0 17.0% 2040.0 3.0 1872.0 176.0 22.0% 688.0 268.3
June 720.0 18.0% 1872.0 2.6 1440.0 200.0 25.0% 488.0 190.3
July 480.0 12.0% 1440.0 3.0 1300.0 120.0 15.0% 460.0 179.4
Spring 2016 4000.0 100.0% 1895.4 800.0 100.0% 3924.0 1530.4
2.11
Ft. Lauderdale, Florida STORE PLAN
ASSORTMENT PLAN
Project Model
NEIMAN MARCUS Assortment Plans Spring 2016 Focus Product Category: Handbags Planned Purchases, Retail:
175800.0
Price Range $100 - $199 $200 - $299 $300 - $399 $400 - $499 > $500
Vendors Premier Designer Contemporary Others Total
60% 30% 10% 100%
Classification Bucket Bag Double Straps Sports Backpack Relaxed Cross-Body Tote Clutch
% Total 10% 10% 15% 20% 20% 25% 100%
$ Purchases $17,580.0 $17,580.0 $26,370.0 $35,160.0 $35,160.0 $43,950.0 $175,800.0
Premier Designer Chloe Givenchy Prada Saint Laurent Valentino
% Total 8% 17% 33% 25% 17% 100%
$ Purchases 8,438.4 17,931.6 34,808.4 26,370.0 17,931.6 105,480.0
$ $ $ $ $ $
Contemporary Elizabeth and James Kate Spade New York Rag & Bone Rebecca Minkoff Tory Burch
% Total 17% 23% 17% 17% 26% 100%
$ Purchases $ 8,965.8 $ 12,130.2 $ 8,965.8 $ 8,965.8 $ 13,712.4 $ 52,740.0
Other
$ Purchases $ 17,580.0