S T R AT E G I C I N I T I AT I V E
KENDRA SCOTT
Contents 1. Intro 2. About 3. Promotional 4. Target Consumer 5. Omni Channel Audit 6. Strategic Initiative 7. Market Overview 8. Financial Plan 9. Conclusion
A Brief History Kendra Scott started her business
in 2002, with just $500 and a spare bedroom. Designed and operated in Austin, Texas, Scott went door to door to different boutiques selling her jewelry line. After selling her necklaces, rings, earrings, and bracelets to several small stores, Scott was eventually picked up by Nordstroms and her empire began to grow. Now, 14 years later, Scott has opened 38 stores across the United States and is sold in over 6,000 stores including large department stores such as Nordstroms, Bloomingdales, and Neiman Marcus. This coming year Scott plans to open 30 new storefronts, and another 30 in 2017. Scott also hopes to expand into foreign markets, and opening stores in Canada. In addition to the large number of physical stores and carriers, Kendra Scott has a thriving online business, seeing identical numbers of sales. Scott’s Mission and Values include Family, Fashion, and Philanthropy. The most important part of Scott’s business is giving back. Having donated over $1 Million and 50,000 pieces of jewelry to over 1,000 organizations. Kendra Gives Back sought out to help women and children organizations, but will help anyone in need. Scott also has 3 charms dedicated to raising money. The The Seton Breast Care Center, MD Anderson Cancer Center, and the National Down Syndrome Congress. 20% of the proceeds are donated to each of the foundations. Scott thrives to expand her company through helping others and raising awareness to organizations she believes in.
Family “When I built my company, I wanted an atmosphere that thrives on the notion of family first. At Kendra Scott, not only is each of our families extremely important to us, but we also treat each other like family. We have the wonderful privilege to carefully handselect our company family, and years of experience have taught me how truly valuable it is to have the right people standing by you. Family is the glue that binds us all together.” Fashion “At Kendra Scott, our love of fashion drives us to design beautiful, quality pieces that our customers will want to wear for years to come. We create product that is both fashion forward and timeless. I find inspiration for my collections in everything from the runways to my own personal travel, drawing ideas from art, architecture, people, nature and everything in between.” Philanthropy “To me, there is truly no greater joy than of giving back to others in need. Having philanthropy as one of our company’s pillars adds to the positive, radiant energy in the Kendra Scott office. We have a special place in our hearts for charities that support women and children’s causes, though we never say no when someone asks for help. I believe that at Kendra Scott, we always have something to give.” -Kendra Scott
“The truest form of success is to give back in a meaning ful way.”
Omni Channel Audit Website
1.66 Million Views Content: Product, Review Company Information Review: Easy to use & reflects the aesthetic of the brand
344,000 Followers Content: High quality images Frequency: 2-4 daily Activity: 2,771 posts Purpose: Promotes Kendra Scott lifestyle Purchasing: Links to Website
51,900 Followers Content: Similar to Facebook & Insta Frequency: 2-4 daily Purpose: Promotes Kendra Scott lifestyle Purchasing: Links to Website
Tumblr & Pinterest
Content: High quality images Frequency: 2-4 daily Purpose: Promotes Kendra Scott lifestyle Purchasing: Links to Website
175,000 Likes Content: Product Exposure, Lifestyle, & Events Frequency: 2-4 daily Activity: Replies within a few hours. Purpose: Reaches a vast audience of various demographics Purchasing: Links to Website
Target Consumer Demographics Gender: Female Age: 22-30 Years Old Education: College Income: $45,000 Location: Small Urban Cities
Income: Upper Mid Homeownership: Mix, Renters Employment Levels: Professional Ethnic Diversity: White, Asian, Mix
Vals - Experiencer Wants to be a part of everything. First in and first out of trend adoption. Are up on the latest fashions. Believe themselves as very sociable. Spontaneous. Have a heightened sense of visual stimulation.
PRIZM - Up & Comers US Households: 1,677,101 (1.37%) Median Household Income: $52,930 Lifestyle & Media Traits Travel to South America Watch Fox Network Active and Health Conscious
Up-and-Comers is a stopover for younger, upper-midscale singles before they marry, have families, and establish more deskbound lifestyles. Found in second-tier cities, these mobile adults, mostly age 25 to 44, include a disproportionate number of recent college graduates who are into athletic activities, the latest technology, and nightlife entertainment.
Customer Profile
Charlotte Jane is a 23 year old Graduate student studying Interior Design. She lives in North
Beach, California, and spends her days traveling for different internships and catching up on class projects. Charlotte starts her busy day with an iced coffee sitting in the cup holder of her car. Long days mean that Charlotte must be prepared to take on whatever the day throws at her. Whether she’s running to a class or meeting with friends for a drink in the evening, Charlotte always has her phone or laptop by her side. She is constantly checking updates on her phone and Instagramming her everyday travels and findings. Charlotte’s schedule does not allow for a lot of time spent in stores so she primarily shops online by using her mobile device. She does not like to waste time so Charlotte makes quick, but well thought out decisions.
Technology & Implemen For our initiative we plan on creating a phone app that allows Kendra Scott customers to have access to the store anywhere they go. In addition to the retail service, the app will also provide the Kendra Scott Color Bar, links to social media, and link to website. In addition to the already established Kendra Scott channels, we want to also include new features that set it apart from online and in store. These new features are discussed in The App section.
To achieve out goal of an innovative and exclusive app, we are working with Amadeus Consulting out of Boulder Colorado to build our app. Amadeus has been helping customers since 1994 with software and app development. With over 60 employess, Amadeus works on 200+ projects annualy and has a customer satisfaction rating of 94%. The companies number one principle is “everyting is possible� and we believe that they have our best interest in mind to create an app. To begin we will work on creating an app for iPhone, feeling that our Kendra Scott Target Market will mostly be iPhone users. We will discuss further about the cost of how much it takes to create the app, as well as upkeep and future features.
ntation
Market Overview Jewelry has always been a way for people to adorn themselves in ways to signify beauty, or that of social status. According to the 2014 Accessories Census, jewelry accounted for 32% of sales within accessories as the largest percentage sector.Branded jewelry currently accounts for 20% of the overall jewelry market, according to a McKinsey Report. However, this percentage is expected to grow to 3040% of the overall jewelry market by 2020. While the growth rate is expected to be rather slow, it will increase due to the rising younger market demographic that will view branded jewelry as a “means of self expression and self-realization.”The size of the jewelry and watch sector in the United States was $78.08 billion, as of 2014. This showed a 1.5% increase in sales from the previous year.As of 2013, each US household spent approximately $612 on fine jewelry and watches.
According to the 2014 US Jewelry State of the Market Report, they state the profile of the biggest spender in fine jewelry as “A married person between the ages of 55 and 64 years old who lives in an urban area in the Midwest with a population of 1-2.5 million. This person has a bachelor’s degree, works as a manager or professional, has a spouse who also works, and their joint annual income is $150,000 or higher. They own a house and have a mortgage. According to this survey, this person is white and has no children.”The average spending on jewelry increases with higher annual income. There are two age ranges that spend the most on jewelry and watches. These age ranges are mid-20s to mid-30s and ages 55 to 64. These age peaks are correlated to when most people marry (mid-20s to mid-30s) and when they reach their highest income status (ages 55 to 64). People that live in the Midwest have been noted as spending the most on jewelry, while those living in the South spend the least. There is also a correlation between higher education and an increase in the amount of money spent on jewelry. Within the overall jewelry market, their largest sales sector is diamond jewelry at 38%. Fashion jewelry is the 5th largest sector at 7%.
Initiative Competitors Current Sephora currently has a feature entitled “Virtual Artist� in which consumers can try on various shades of lipstick and lip gloss through their app. This app eases the frustration many makeup consumers feel when shopping for cosmetics in stores, such as not knowing which shade will look right on them or feeling obligated to buy the products that artists use on them. Thus, consumers can fearlessly try on any shade they like within the comfort of their own home, and save images with different shades to compare and contrast what looks best.
Snapchat has been dominating the field of filters, specifically with their geofilters. Users can snap a picture of themselves and apply one of the various geofilters atop of it. Such geofilters include hearts over the eyes, puppy face and face swapping. Snapchat just released customized filters in which users can create their own for five dollars a piece. The price is dependent on several factors, yet Snapchat is cultivating upon its own success and timing their launches in accordance with user engagement.
Future Baublebar is an ecommerce site that utilizes a fast-fashion approach to jewelry. They have cultivated mass attention and popularity, even raising an astounding $20 million dollars worth of funding from new investors. Evidently, the brand doesn’t appear to be slowing down and they have already taken to positioning themselves in many social media outlets. Baublebar is seen as a competitor to Kendra Scott because of the way in which they approach trends and utilize their social media. Baublebar easily takes to new trends,while Kendra Scott has signature pieces with new additional seasonal items. Furthermore, Baublebar does portray a “girly” atmosphere like that of Kendra Scott, however, they do so in a way that broadens their target market and engages with consumers possessing various aesthetics. Baublebar shows a variety of models with different ethnicities on their social media accounts, while showcasing vast imagery of different lighting and framing. Kendra Scott, on the opposing side, has a static array of imagery on social media due to very similar lighting within the photographs and typically featuring a model that is blonde and caucasian. While this holds true to the identity of Kendra Scott, there is a possibility that consumers may not be as engaged if social media posts continue in the same manner.
Pandora, the jewelry brand currently listed in our report as one of Kendra Scott’s competitors, currently has an app available for iPhone and Android. Their app allows users to scroll through their catalogue, locate a store, access a gift finder that allows users to select their price range and certain jewelry pieces they are looking for, create a wishlist and share finds via email or Facebook. The Kendra Scott app is currently for iPhone only and also allows users to search through all of the product listings, with an addition of app-only pieces. The Pandora app could be seen as a competitor because of its gift option feature. The Kendra Scott app focuses more so on individualized attention and gratification, without the direct intent of app users’ purchases for others.
Technology Competitors Current Try It On An app for retailers and consumers to connect with one another. The app allows users to try on various jewelry items of the retailers that are partaking in it. Retailers are able to send push notifications to alert consumers of new collections and arrival dates. Customers are allowed to save their favorite pieces in a shopping cart and have accessibility of trying these pieces on again at a later time. Additionally, customers can share their TryItOn images easily to Facebook or Instagram, which is highly beneficial to the brand. Is this app a more efficient way of trying on pieces as opposed to the Snapchat-like way of “snap to face� filters that the Kendra Scott app would be utilizing?
Elements Lab is launching a Jewelry Maker app in which users can custom design their piece of jewelry by selecting the type of piece that they want, size, and certain gems or charms that they want to add. Once a user has completed designing their piece, they are able to send it to Elements Lab to be 3D printed. This technology can pose a threat to Kendra Scott’s Color Bar because consumers may be attracted to a feature that allows for more originality of their designs, as opposed to a more narrow selection of options as seen in the Color Bar. Consumers may also be drawn to the more tech savvy feature of being able to 3D print.
Long Term Success Since Kendra Scott is a late adopter to the world of social media, particularly that of Instagram and app services, the brand will have to catch up with other retailers while maintaining a stance on what is currently trending. They will also have to try to stay ahead of the times once their target market has adapted and taken on to their app services. As previously noted, there are several retailers utilizing services similar to those in our initiative, as well as services that go beyond what our initiative offers. That being said, the long term success of our initiative will more so focus on how well the features are focused on Kendra Scott consumers and the types of services that this market seeks. Our initiative isn’t particularly about being the most tech-savvy or overwhelming enriching with features because that isn’t what the Kendra Scott brand or consumer currently stands for.
The App The implementation of an app would allow mobile phone users to view the current Kendra Scott product offerings, shopping accessibility of that of the website, view current events of the store location closest to them, and access to the Color Bar, in which they can create their piece of jewelry on the app and either pick it up in store the next day or have it shipped to them. This initiative addresses the Kendra Scott target demographic of a woman on the go, ranging from a busy mom to a full time employed businesswoman. This type of consumer is constantly on their phone due to ease of access and the implementation of an app would allow them to access Kendra Scott products and services wherever they are. Some of the long term benefits of the app is better and more instant connection, as well as gratification, between the brand and the consumer. The app can provide push notifications of early access deals and events which often is more instant than that on an email.
This app can be downloaded free of charge in the Apple App Store and will be formatted with a plethora of features and benefits for our customers to enjoy. Upon opening the app, the customer will be prompted to input their user name and password or alternatively create an account on the app if they are a first time user. The customer is then transported to the app home page where they can view the newest seasonal collection, trending pieces, and even personalized Kendra picks for them based off of previous search history. Viewers will also be able to see the most recently posted Instagram photos that feature the hash tag #caughtinkendra. This app will enable customers to interact with the Company’s signature Color Bar to exclusive and unique pieces that fit their personal style. Additionally, the app will feature a wide array of tabs for customers to browse product on pages devoted to sale, jewelry, accessories, and new arrivals, among others. A unique feature of the app that we are looking to implement is pieces that are exclusive to the app and therefore can only be purchased through this avenue. We are hoping this will drive customers to download and begin utilizing the app, while also giving them a reason to return with every collection that is introduced seasonally. This app will also feature a tab in which allows customers to click and find the nearest Kendra Scott location that is closest to their location. By including this addition within the app, we are looking to bridge the gap between online and in store shopping, giving the customer an Omni Channel experience. Customers will have the option of purchasing through the app and receiving their items through traditional shipping or picking up their item in store next day. We are hopeful that since more than half of Kendra Scott shoppers do so from a mobile device, that this app will be a successful step forward for growth within the company!
App Features Color Bar | be able to make and create unique, personalized Kendra Scott pieces to and preview the finalized item before you purchase it. Live Chat | Available for customers to click on within the app to launch a one on one conversation with a helpful Kendra Scott representative Filter | Color filters, snap to face filters, etc. Direct to Social Media | FB Twitter IG | App has the ability to link with your social media so you can post your newest purchase or color bar creation after your purchase to show off to all of your friends. Account Log In | Store payment information & shipping- Create or log into your Kendra Scott account through the app which allows the user to keep payment, billing, and shipping information saved within the app for quick and easy transactions. Link to Website | Items saved in the app while you are logged in to your account will also link to the Kendra Scott website and when a customer is logged into their account on the website, their saved items or items placed in their cart can be viewed there as well. Personalized Home Screen with Personal Picks | Based on previous searches, this personalized home screen will feature Kendra’s picks made with you in mind! Current Location & In Store Pick Up | The app will be able to link with location services within the iPhone, and when enabled, will tell you the location of a Kendra Scott store near you in addition to providing the option of picking up your purchase in store the next day! Promotion/Discount Through App | weekly Wednesday code that is offered and is the same code provided in store during that night’s in-store Girl’s Night Out Party. Exclusive App Pieces | The app will also feature exclusive jewelry pieces, ones that you can’t find online or in-store. Seasonal Launches | new collections will be offered on the app a day before it is available for sale in store. Featured Looks | will serve to highlight recent promotional articles featuring Kendra Scott pieces that have been shown in a magazine or on a blogger’s site, etc. Sign Up for Email | have the ability to sign up for Kendra Scott emails within the app to be alerted to all the most current information within the brand. Saved Color Bar Creations | encourages App interactivity and exploration for the consumer to be able to preview custom designs without buying.
Future App Additions “Wish List” Consumers can create a wishlist of items that they can save or send to friends/family members for holidays and/or birthdays. Kendra Scott can have monthly “give back” events via app in which one app consumer will win their wish list items. Can possibly be the wish list of a person in need via a charity or organization.
“Kendra’s Closet” Create a Kendra character can send push notifications of inspirational Kendra quotes, even send alarm notifications in her voice character can travel through digital version of Kendra’s closet. Users can create their own closet. This is to attract younger demographic to aspire to more luxurious and higher-end tastes.
“Girl’s Night In” Video or live stream of girls night out parties for app consumers that are unable to attend or not close to a Kendra store location where they can still feel like they are a part of the events
The Instagram In order to increase customer awareness and profitability of Kendra Scott stores, the brand should establish Instagram accounts for the regions in which stores are located. For example, this could include the South and Midwest. With the addition of these accounts, Kendra Scott would not only increase their social media presence, but they would additionally be able to better target their consumers; especially pertaining to in-store events that the brand consistently partakes in. =Consumers are highly engaged in social media and more are turning to Instagram as opposed to other platforms, such as Facebook. Instagram allows consumers to quickly scroll through pictures and then pause upon those that grab their attention. Although Kendra Scott currently has a main Instagram account, its presence is not quite strong. What this account is lacking is the voice of all Kendra Scott customers. The customer that shops in Chicago stores are very different than that of Austin. In order to better represent those differences, the establishment of various accounts would help consumers directly engage with the locations that they shop at and feel as if they can actually connect with the store and personnel that they frequent. The long term benefits of several Instagram accounts would be higher social media engagement with consumers, increased customer service and customer loyalty, and stronger connection between personnel and consumers.
The strategic initiative in which we look to implement at Kendra Scott is the addition of store based Instagram accounts. Currently as a company, all social media is run by the corporate office with the exception of Facebook pages. Individual store based Facebook pages are succeeding in bridging the gap between store and customer, in a more personalized way than that of the company’s general account. This account will be able to feature each store’s unique gatherings, events, and celebrations such as weekly Girls Night Out and community philanthropic events that the location is involved in, a cause vital the Company’s core. Through extending into another branch of store level social media, we feel as though the company will see a large spike in personalized communication between store and customer which will drive the sense of community that the brand so deeply values. As a result, consumers will feel more apart of the brand as they will have the opportunity to join local store events in which will be advertised through each individual Instagram account. Another key element in which we believe will result in growth through implementing this strategic initiative is brand awareness. Looking to the Company’s projected growth in the next two years, 60 brick and mortar locations are set to open. As a result of this rapid growth rate, we feel as though this is the optimal time to begin the implementation of store based Instagram accounts as the store representative would be able to promote the new store location and partner with other compatible business in the same location to begin creating awareness about the opening. Creating relationships and capturing the feel of a small, intimate company is very much a driving factor for the Kendra Scott brand. We feel as though their is much opportunity in this venture for growth and expansion within the brand while still keeping with company values and aspirations.
Communication & Prom Integrated Communication Plan We plan to incorporate communication surrounding our new app through primarily social media marketing. We will be promoting the app on all the Social Media platforms that the Kendra Scott brand utilizes including Facebook, Snap Chat, Twitter, and Instagram among others. As the Kendra Scott company is not one to focus on advertisements or spending money on marketing materials, this is going to be the optimum communication plan for this promotional strategy. Leveraging in store conversations between associates and customers will also be essential, as they will be our verbal app ambassadors for the brand. They will be responsible for spreading the news to all customers who come into the stores and sharewith them aboutwhat is coming to our company. They are to exude passion when speaking about the app and they should be well informed about the primary features and benefits to be able to fill customer inquiries and get shoppers excited about whats to come! We will be planning an in store launch party to create buzz surrounding the app launch which will be promoted on the website, through social media, and through word of mouth communication within the store. We hope that creating a fun and memorable night with our customers will make them want to engage with the
app and experience it for themselves right there in the Kendra Scott store and at home thereafter
motional Plan Pre-launch As a pre-launch strategy, we will begin posting announcements about the app’s launch as well as begin exposing preview images of some of the features integrated within the app. Customers will begin to become familiar with the new app through all channels of social media that the Company participates in and through the store level as well. We will have our store associates begin familiarizing all customers they come in contact with about the company’s newest feature. The associates will be responsible about sharing app details with customers such as the launch date, app capabilities, app exclusive jewelry pieces, as well as information about the launch party. Beginning two weeks before the app is due to go live, we will begin putting invitations to the in store launch party into every shopping bag that is handed out to a customer. This physical reminder of our event is sure to drive attendance to the event while still keeping that personalized feel that is signature to the brand.
Launch
Post-launch
During the day of the App launch, we are going to have company founder Kendra Scott takeover the company’s Instagram account to serve as our strongest push of promotion. Her posts will be duplicated and funneled out to all of the other various social media channels on which the brand is represented making sure that loyal fans and consumers alike are aware of the launch. Through out the day, we will have Kendra posting quick and easy videos of her using the app to create some of her favorite Color Bar looks which will be featured on the app’s home page for customers to view and purchase. The day will end with an App launch party at the Kendra Scott flagship store in downtown Austin, Texas where Kendra will be available for a meet and greet with her customers while everyone enjoys sips and sweets as they test out the new app. Additionally, we are going to feature these launch parties at all of the Kendra Scott store locations so that all customers can get to experience the buzz and excitement within the company as we launch and promote this new venture. As an added bonus for fan loyalty and customer responsiveness to app downloads, we will be featuring a banner across the home page with a discount code for 20% off your first app purchase. We feel as though integrating this special benefit will have customers excited to purchase through the app which will hopefully have them coming back for more!
After the app has been launched, we at Kendra Scott will continue to vigilantly monitor the sales and download progress of our app. Keeping customer’s interest and attention is critical to overall success and we feel as though we have implemented several strategies in which will create return users such as the ability to save your Color Bar creations while you are logged into you account without the need to purchase. We will continue to advertise in store through word of mouth from associates, in store signage, as well as putting take aways in customer shopping bags in which will remind them to download the app when they get home. We will run the takeaways for the first three months after the app’s launch and will assess the data at that point to determine if that is something that needs to be continued as a post launch promotional strategy.
Invitation
Financial Plan Based on the app development calculations on the Kinvey website, it is estimated that a fully loaded and functional application made for the Kendra Scott company will cost $387,968. This app will be iPhone and iPhone 6 plus compatible running with traditional iOS software. We will use an external agency to develop our app which will have the capabilities of location services, email delivery, push notifications, and analytics tracking among other features. Additionally, this app will also feature data storage, a polished user experience, and in depth security measures to ensure optimum customer satisfaction. We have chosen to bypass the integration of Application Program Interface within our product as we do not see a need at this time to incorporate API features into our software. Within the Kendra Scott App, the largest amount of funding will be allocated to handling user management. Through this, two different platforms will be conducted including the standard email and password log in, or that from a social media sight such as Facebook or Twitter. We have also planned a significant portion of the funds to go towards the development of reliability for the app. This added feature will help the app to run more smoothly for the customer, which will run with a reduced risk of bugs or digital defects due to this implementation. If the app were to experience problems and begin crashing during customers use, the added layer of protection from the reliability feature would aid in
detecting errors. We feel as though this is money worth spending in this area to ensure that our app is always functioning properly, especially since it is an e-commerce site in which will be processing many customer transactions which are vital to the success of the business.
Execution Budget The execution budget that will need to be put into action for the app will include costs surrounding app development, app maintenance, human resources, and promotions. We estimate that the app will cost $387,968 to be fully functional and launch ready for our customers. While this is a large number, we have planned to develop a premium application, hopefully devoting more funds upfront to create a better product in which will serve as a worthy investment decision in the long run. For the human resources portion of the total app cost, we estimate that it will take 388 days and 6 staffed personnel to get it up and running. Due to the fact that we are looking to build such an in depth and extensive application with a multitude of tabs for customers to explore, we feel as though it is a reasonable estimate to assume that the app will take just over a year to complete. As far as promotions and the cost associated, as Kendra Scott looks to a strategy for its marketing that is primarily grass roots, we expect to spend very little marketing our application. We are hopeful that through spreading the word to our loyal customers combined with the brand expansion and growth of 60 new store fronts within the next two years, that word will carry itself, causing customers to download and participate. One thing we will have to budget for as a company is when we feature special offers and promotions in the form of a discount code that can be redeemed through the purchase of a piece through the app. We are hopeful that even though we do offer
discount codes, the monetary loss will be combatted with repeat customers after they are able to experience the ease and convenience of the app.
12 Month Plan
13 Month Promo Plan
Conclusion Kendra Scott is a jewelry retailer with core values of
fashion, family and charity. The brand portrays a feminine mood with a clean aesthetic. It attracts a wide demographic of females, from girls in college to working women with children. In order for the brand to widen its market, we will implement several Instagram accounts for different stores as well as an app for iPhone. The app will utilize similar functions like that of the website, with a color bar service, and it will also contain special lines for app only. Since consumers are spending more money on their phones, as opposed to online, we will that this app will only further the success of Kendra Scott’s revenue.
Appendix Appendix A
Figure I. Perceptual Map Our map shows how we rank among Kendra Scott’s competitors in both Price and Accessibility. Tory Burch, Coach, Alex And Ani, Charming Charlie, and Stella & Dot are the closest competitors, followed by Kate Spade, Michael Kors, Pandora, Francesca’s, and Baublebar. The closest competitors are broken down into Channels, Assortment, and Price Range to even further compare to Kendra Scott.
Tory Burch Channels: Brick and Mortar, Department Stores, E-Commerce Assortment: Jewelry, Bags and Accessories, Apparel Necklace Price: $595-$125
Coach Channels: Brick and Mortar, Department Stores, E-Commerce Assortment: Jewelry, Bags and Accessories, Apparel Necklace Price: $325-$95
Alex and Ani Channels: Brick and Mortar, Department Stores, E-Commerce Assortment: Jewelry, Bags and Accessories, Small Gifts Necklace Price: $98-$38
Charming Charlie Channels: Brick and Mortar, E-Commerce Assortment: Jewelry, Bags and Accessories, Small Gifts, Apparel Necklace Price: $6-$50
Stella and Dot Channels: Home Parties, Catalogue, E-Commerce, Trunk Shows Assortment: Jewelry, Bags and Accessories Necklace Price: $29-$198
Appendix B
Figure II. Jewelry Expenditure by Household Income This graph visualizes the relationship between annual income and purchases spent on jewelry. Despite a couple of offsets, such as the purchases in the $70-80k section, the graph shows the with an increased income, consumers spend more money on jewelry.
Figure III. Average Expenditure on Jewelry by Income This graph shows the average amount spent on jewelry as a percentage of household income. As denoted in the previous graph, higher income stimulates higher purchasing power on jewelry. Those with a household income of $150k and over spent 1.7% of that income on jewelry
Figure IV. Jewelry Expenditure by Age Group This graph shows the amount of money spent on jewelry within different age categories. Those between the ages of 25 to 34 years old spent the most, which is most likely in part due to the fact that this is typically the age range in which many women get married.
Figure V. Increase in Jewelry & Watch Expenditures From 2003 to 2013, there has been a steady rise and decline in sales of jewelry. Yet, as of 2013, there has been the most revenue spent which forecasts to retailers that spending power has once again increased from the recession and consumers are wanting to make investments.
Appendix C
Figure VI. 2014 Accessories Census This pie graph shows the percentage rates of money spent on various categories, as included in the 2014 Accessories Census. Jewelry was the largest sector with 32%.
Appendix D
STRENGTHS Color Bar Charity Work Strong Values Branding & Visual Merchandising
More Customer Involvement Invest in Technology Trends OPPORTUNITIES
WEAKNESSES Lack Brand Awareness Little Customer Involvement Limit Themselves Demographically
Fast Fashion Lines Competitors THREATS
Figure VII. SWOT Analysis The SWOT analysis demonstrates the strengths, weaknesses, opportunities and threats pertaining to the Kendra Scott brand. Some strengths include their charity work and Color Bar services, while some weakness are that there isn’t much brand awareness. We feel as if the brand could provide more customer involvement and the brand also has to be cautious of fast fashion lines that sell jewelry.
Appendix E
Figure VIII. Branded vs. Unbranded Jewelry This graph shows past percentage sales of branded vs unbranded jewelry and predicted sales of the two in the year 2020. This prediction shows that branded jewelry will account for 30-40% of the jewelry sector, which is a positive attribute for the Kendra Scott brand.
Appendix F
Figure IX. Push Messaging Click Rate This graph highlights the push messaging click rate per days of the week. The highest click rates appear on Tuesday and Friday, with 6% and 6.5% consecutively.
Figure X. App User Retention This line graph illustrates app user retention rate through a duration of 1-4 months via push enabled or push disabled apps. The push disabled app started with lower retention and lost retention quicker than the push enabled. This is why we have chosen to enable push notifications via our app to engage with consumers.
Figure XI. App Retention Rate This graph shows the amount of times an app was used. Apps are used very heavily towards the beginning but some lose interest very quickly and fall to the wayside. However apps that are geared to listening to the user and changing with the users interest, the higher the retention rate.
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