θωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψυι οπασδφγηϕκλζξχϖβνµθωερτψυιοπασδφγη ϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζξχϖβ νµθωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψ ASSORTMENT PLANNING υιοπασδφγηϕκλζξχϖβνµθωερτψυιοπασδφ RALPH LAUREN’S BLACK LABEL COLLECTION γηϕκτψυιοπασδφγηϕκλζξχϖβνµθωερτψυι οπασδφγηϕκλζξχϖβνµθωερτψυιοπασδφγη ϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζξχϖβ νµθωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψ υιοπασδφγηϕκλζξχϖβνµθωερτψυιοπασδφ γηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζξχ ϖβνµθωερτψυιοπασδφγηϕκλζξχϖβνµθωε ρτψυιοπασδφγηϕκλζξχϖβνµρτψυιοπασδφ γηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλζξχ ϖβνµθωερτψυιοπασδφγηϕκλζξχϖβνµθωε INSTRUCTOR: Nancy Bombard ρτψυιοπασδφγηϕκλζξχϖβνµθωερτψυιοπα σδφγηϕκλζξχϖβνµθωερτψυιοπασδφγηϕκλ BY: ζξχϖβνµθωερτψυιοπασδφγηϕκλζξχϖβνµθ Sonam Srivastava ωερτψυιοπασδφγηϕκλζξχϖβνµθωερτψυιο 200-‐149-‐631 πασδφγηϕκλζξχϖβνµθωερτψυιοπασδφγηϕ κλζξχϖβνµθωερτψυιοπασδφγηϕκλζξχϖβν
STANFORD MALL, PALO ALTO CA
Assortment Planning & Purchasing Instructor: Nancy Bombard
POPULATION DEMOGRAPHICS FOR SANTA CLARA COUNTY
I am a new buyer for the Ralph Lauren women’s Black Label collection at Stanford Mall, Palo Alto CA. I researched the population of Santa Clara County and picked up 94086, 95051, 95014, 94043, 94303, 94024, 95070 and 95030 zip codes for my target market. I used US Census and SRDS.com to gather information about population demographics for my store.
GENDER & AGE
NUMBER
PERCENTAGE
Total Population Female Age: 20-‐24 Age: 25-‐29 Age: 30-‐34 Age: 35-‐39 Median Age
1,762,754 877,447 53,047 64,620 66,727 69,452 36.2
100% 49.8% 3.0% 3.6% 3.7% 3.9% X
INCOME (Household)
NUMBER
PERCENTAGE
$50,000-‐$74,999 $75,000-‐$99,999 $100,000-‐$149,999 $150,000-‐$199,999 $200,000 or more Median Household Income Median Family Income Median Female Income
84,596 75,974 114,630 67,269 75,807 89,064 103,255 54,843
14.1% 12.7% 19.1% 11.2% 14.7% X X X
EDUCATION (age 25+)
NUMBER
PERCENTAGE
High School Graduate Some College /Associate Degree Bachelor’s Degree Graduate / Professional Degree and higher
191,675 206,024 302,219 235,430
16.2% 17.5% 25.6% 19.9%
Sonam Srivastava 200-‐149-‐631
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Assortment Planning & Purchasing Instructor: Nancy Bombard
POPULATION PSYCHOGRAPHICS FOR SANTA CLARA COUNTY
Top three claritas.com lifestyle groups in the researched zip codes (4086, 95051, 95014, 94043, 94303, 94024, 95070 and 95030) are:
LIFESTYLES
DESCRIPTION
Young Digerati
Urban; wealthy; elite; 25-‐44 years of age range; family mix; homeowners; management; graduate & higher; diverse ethnicity. Movers & Shakers Suburban; wealthy; elite; 35-‐54 years of age range; HH w/o kids; mostly homeowners; management; graduate & higher; white, Asian, mix. Bohemian Mix Urban; upper-‐mid; moderate; <50; family mix; homeowners & renters; white collar, mix; college graduate; white, black, Asian, Hispanic, mix.
RANK 4 3
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According to SRDS.com, the lifestyle traits of the target population is: Psychographics: • 70% more likely to have a duty to recycle; • 67% more likely to do some sport/exercise once a week; • 55% more likely to look for special offers; • 76% more likely to pay more for environment friendly products; • 68% more likely to look for brand names always; • 52% more likely to stand out in crowd. Food & Beverages: • 49% more likely to try new recipes; • 67% more likely to believe nutritional value is most important; • 51% more likely to enjoy eating foreign foods; • 53% more likely to often snack (healthy) between meals. Apparel & Jewelry: • 20% more likely to believe function is important factor in clothing; • 65% more likely to feel that everything I wear is the highest quality; • 30% more likely to keep up with latest fashion; • 40% more likely to enjoy shopping; • 70% more likely to see comfort as the most important factor in clothing. Sports & Leisure: • 96% more likely to go walking/running for exercise; • 40% more likely to go to rock concerts; • 27% more likely to go to yoga; • 43% more likely to do photography; • 27% more likely to go backpacking/hiking; • 86% more likely to go to beach/lake. The residents of the target market are very expressive, keep up with fashion, and care about their health and the environment. They know what quality merchandise they want and can pay more for it. They are well educated and have elite jobs. They believe that they are responsible for the environment and society. They work hard and party harder.
Sonam Srivastava 200-‐149-‐631
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Assortment Planning & Purchasing Instructor: Nancy Bombard
SEGMENT ANALYSIS
Customer Profile 1: Kayla Young Gender & Age: Female; 22-‐25 Income & Profession: $100,000-‐$150,000 individual income; IT professional Education: Graduate Degree Kayla is young, single IT professional living in Silicon Valley. She rents a two-‐bedroom apartment with her boyfriend. She enjoys outdoor activities liking hiking, running, skiing, etc. She likes to hangout with her colleagues and friends on weekends at clubs, bars and parties. Kayla is fashionable and keeps up with latest fashion. Customer Profile 2: Mrs. Kennedy Gender & Age: Female; 30-‐37 Income & Profession: $200,000 and more; Homemaker Education: Bachelor’s Degree Mrs. Kennedy lives in her dream home in Palo Alto with two toddler twins and husband Prof. Kennedy. Prof. Kennedy is lecturer at Stanford University. Mrs. Kennedy is a stay-‐at-‐home mom and a homemaker who loves to blog and socializes. She shops at Stanford mall for premium brands. She likes to spend on apparel & jewelry and loves to stay classy & sophisticated. Customer Profile 3: Ashley Hoover Gender & Age: Female; 28-‐35 Income & Profession: $200,000 and more (household); Branding Professional & Homemaker Education: Graduate+ The Hoovers are newlyweds and owns a beautiful townhome in Cupertino. Mr. Hoover works in a software company whereas Ashley works with apparel industry in San Francisco as Brand Manager. As a couple they love to go out together on Friday evenings. Being in the apparel industry, Ashley loves to shop and keep up with fashion. The Hoovers enjoy travelling and going for wine tasting. Customer Profile 4: Nikki Long Gender & Age: Female; 21-‐25 Income & Profession: $200,000 and more (household); student and part time freelancer Education: Bachelor’s Degree, on-‐going Graduation Nikki just moved back to Bay Area (her home) after graduating from FIT New York. She lives with her parents and sister in Palo Alto. Her father is the vice-‐president of a networking company in Silicon Valley and mother is a socialite. Nikki is studying at Stanford and a part-‐time freelance graphic designer. She loves to travel, photography, and recently learned pottery. Being the part of a very social family, Nikki loves to attend parties and entertain family & friends with her mother.
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Assortment Planning & Purchasing Instructor: Nancy Bombard
MERCHANDISE MIX MODIFICATIONS FOR FALL 2013
Ralph Lauren’s Black Label (women’s) makes very sophisticated contemporary apparel for upper middle class and higher. The location of this store targets the market having an exceptional level of quality & class and ready to pay for it. This store can be even more profitable with a few merchandise changes. According to my research there is a concentration of working professionals and fairly wealthy family groups. All are well educated and care about their health, style and environment. Changing the quantities of merchandise based on price points and sizing can make huge difference for this store. SWEATERS: Ralph Lauren has beautiful cashmere sweaters in different solid colors. Rather than having equal amounts of all price points, I would suggest to have more of between $455-‐$555 range. According to population psychographics, I believe that since the target market is very much health conscious and have fit body types, we can have more of sizes S, M, L and less of XL. I would also like to do changes in color according to season forecast. Instead of pink/purple, blue, sky blue, green, and yellow/orange, I would include mauve, teal, light blue, red, and black. DRESSES: Ralph Lauren has a decent price range for dresses; I would not change anything in that classification. But I would like to change the quantity of sizing. Again we can have more of sizes 2-‐10 and less of 11 & 12 as market being health conscious. I would also like to do changes in color according to season forecast. Instead of green and orange, I would include red, and black. SKIRTS: For skirts I would suggest to add more in price points of $600-‐$1100 and decrease in the range of $1600 and above for more price ranges. It’s the collection for Winter 2013, so I believe market would prefer more of woolen/silk dresses and pants instead skirts. According to population psychographics, I would also like to have more of sizes2-‐10 and less of 11 & 12. I would also like to do changes in color according to season forecast. Instead of deep blue, I would include black. PANTS: Ralph Lauren has different variety of pants based on their price range. I would like to reduce the quantity of $400 price range which include sweat pants and would increase the quantity of dress pants in price range of $500-‐$700. The market shops for formal and party wear from Ralph Lauren’s Black Label collection and not active wear. Again we can have more of sizes 2-‐10 and less of 11 & 12 as market being health conscious. I would also like to do changes in color according to season forecast. Instead of orange and green, I would include black and beige. OUTERWEAR: There are only two price points for outerwear. I would like to have equal quantity in both $1400 and $1700 and the products are worth for this high price range. I would also like to have more of sizes2-‐10 and less of 11 & 12. I would also like to do changes in color according to season forecast. Instead of deep blue and green blue, I would include black and teal. TOPS: Although Ralph Lauren has most beautiful silk tops but they are still basic. I would like to have 60% quantities in lower price range of $200-‐$500 and 25% & 15% in the ranges of $600-‐$700 & $800-‐$1000 respectively. Since the target market is very much health conscious and have fit body types, we can have more of sizes S, M, L and less of XL. I would also like to do changes in color according to season forecast. Instead of deep yellow/orange and green, I would include red and yellow.
Sonam Srivastava 200-‐149-‐631
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Assortment Planning & Purchasing Instructor: Nancy Bombard
MARKET TREND ANALYSIS
FACTORS OPPORTUNITY (% change) Company Sales 1.5% Economic T rends 0.5% Social Trends 1% Political Factors 1% Competitive Changes 0.5% Promotional Plans 1.5% Fashion Trends 1% TOTAL 7% Net I ncrease/Decrease 3% I ncrease
THREAT (% change) 0 1% 0.5% 0.5% 1.5% 0% 0.5% 4%
COMPANY SALES: PERIOD 2012 SALES (mil) 2011 SALES (mil) 2010 SALES (mil) RD 3 Quarter $1,815.4 $1,195.6 $1327.1 Fiscal Year $6,678.8 (2.1%) $5,481.8 (1.4%) $4795.5 Ralph Lauren’s annual sales (via investors.ralphlauren.com and hoovers.com) states $6,678.8 million in 2012. This indicates huge improvement in terms of sales. In addition to this shoppers might seek value and trading down to competitors for more price range and purchasing power. FASHION TRENDS: According to stylesight.com & WGSN.com, fall trends include soft looking women apparel in more versatile colors rather than vibrant ones. I also include prints, plaids and tweeds. Sophisticated and comfortable styles are every woman’s desire. Nice woolen pants, skirts and dress are great additions. According to the news article on WWD January 29, 2013 “Ralph Lauren Embraces Tweed for Fall”; the designer showed an assortment of tweed fabrics in each of his three cornerstone collections: Purple Label, Black Label and Polo. The offerings ranged from soft, washed variations to hearty, authentic Harris tweeds. This will be a big addition in the upcoming collection. Whereas another article on WWD November 4, 2012 “Ralph Lauren Beats Expectations in Q2” states; the company said that after the second quarter ended, the firm approved a plan to discontinue its Rugby brand operations “in order to focus resources on higher growth, more scalable global opportunities with the core Ralph Lauren brand.” The company will close 14 stores and the e-‐commerce site over the balance of fiscal 2013. It expects to record pretax charges of $20 million to $30 million during the second half of the year, with 75 percent expected to be booked in the third quarter. COMPETITIVE TRENDS: According to an article about RL’s competitor Dior on WWD February 4, 2013 “Christian Dior Couture Sales Jump 24% in 2012”; states that their sales rose 24% in 2012, when the brand welcomed Raf Simons as its new creative director of women’s ready-‐to-‐wear and accessories. Between Jan. 1 and Dec. 31, sales at the fashion house totaled 1.24 billion euros, or $1.59 billion, with all product lines contributing to a healthy sales progression in its network of stores. At constant exchange rates, the increase stood at 17%. This is a big threat for RL. According to another article about RL’s competitor Armani on WWD November 15, 2012 “Armani Moving N. American Headquarters”; states that after 22 years at 114 Fifth Avenue here, the Italian fashion house will relocate its North American headquarters and showroom to 450 West 15th Street. The move to the Meatpacking District is scheduled for October 2013. Moving
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Assortment Planning & Purchasing Instructor: Nancy Bombard
headquarter includes lots of positive changes in the company as whole. Looking at the competitors’ presents sales and future opportunities by moving headquarters, competitive trends are huge threat to Ralph Lauren. The company with higher sales will continue attracting shoppers. On the other hand shifting headquarters to N. America indicates more future sales focus. ECONOMIC TRENDS: According to an article in WWD January 28, 2013 “NRF Predicts Slower Growth in 2013”; The Washington-‐based trade association forecast retail sales growth of 3.4% for the year, slightly above the 3.3% growth registered in 2010 and below the increase of 5.8% in 2011 and the 4.2% increase expected to be tallied for last year once final figures are in. Another article on WWD January 16, 2013 “Retail Apparel Prices Slightly Lower in December”; states, retail apparel prices fell a seasonally adjusted 0.1% in December after falling in November, as retailers instituted heavy discounts during the holiday season, the U.S. Labor Department’s Consumer Price Index. Women’s apparel prices fell 0.9%, with all of the categories declining, although dresses increased 0.9% in the month. Looking at the NRF’s prediction, there is just 0.1% growth. With growth comes sales and if sales are less then economic trends is huge threat to Ralph Lauren. Similarly, apparel prices are lower this season where as RL’s price points are very high. If this continued RL’s customers will definitely move towards competitors. POLITICAL TRENDS: According to the article in WWD January 14, 2013 “U.S. Officials Stress Industry Importance”; states, the federal government has got the fashion industry’s back. Key members of the Obama administration’s trade team told an industry conference last week that they are making concerted efforts to promote U.S. apparel and textile exports, help create jobs and streamline the importing process. Another article on WWD January 11, 2013 “Industry Imports Fall in November”; states, apparel and textile imports to the U.S. fell 0.3% in November on a year-‐over-‐year basis. Combined apparel and textile shipments to the U.S. declined to 4.2 billion square meter equivalents in the month compared with November 2011, with apparel imports rising 0.9% to 1.8 billion SME and textile shipments falling 1.3% to 2.4 billion SME. According to these articles, on one hand government is focusing on increasing exports from US and on the other hand industry imports are falling down. I believe there is an equal opportunity for both exports and imports. SOCIAL TRENDS: The residents of the target market are very expressive, keep up with fashion, care about health and environment. They know what quality merchandise they want and can pay more for it. They are well educated and have elite jobs. They believe that they are responsible for the environment and society. They work hard and party harder. According to a guest article in Forbes September 1, 2012 “The Power Of Exponentials: The Social Media Effect In Retailing”; With Product Development systems acting as a rich source of a company’s internal data, it is required to put a second-‐level analytical engine keeping in view the consumers’ preferences. Social media is rightly positioned to meet this very important need. While social media may not answer all the questions perfectly, it certainly has the potential to help companies make informed decisions to better both the top and the bottom line. According to another article in Forbes March 26, 2012 “Only One Quarter Of American Consumers Are Brand Loyal”; On the whole across all 34 markets brand loyalty checking in just under 40% as a determining factor in making a buying decision, but, that number dropped to just 25% in the US, a highly significant decrease in the number of American consumers who say brand loyalty is something that impacts their buying behavior. As per brand loyalty, I believe RL’s customers are very much quality and brand conscious, they will be loyal always. But recently seeing the trend that how much social media can affect on consumers’ choices and shopping behavior, it’s difficult to forecast sales. Although still social media is potential to help companies make decisions for their line.
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Assortment Planning & Purchasing Instructor: Nancy Bombard
MARKETING/PROMOTIONS: According to the news article on Luxury Market December 13, 2012 “Ralph Lauren is 2010 Luxury Marketer of the Year”; states: Polo Ralph Lauren Corp. has been named Luxury Marketer of the Year, the most prestigious award in luxury marketing. “Creating a luxury brand is one thing, but maintaining its marketing aura across good times and bad, traditional media and new, takes genius and Ralph Lauren,” said Mickey Alam Khan, editor in chief of Luxury Daily, New York. Ralph Lauren’s marketing strategy operates on the principle of “merchantainment” – the blending of commerce and culture, according to David Lauren, chief marketing officer of Ralph Lauren. The key concept underlying the philosophy is that the luxury shopping experience is not just about transaction, but immersion as well. “The most important thing for us was using technology in a way that expands on our brand’s philosophy,” Mr. Lauren said. “We start with the philosophy and then apply technology to tell our story.” My prediction will include increase in private sales for RL’s elite and loyal customers. Customer recognition is becoming more and more vital.
Sonam Srivastava 200-‐149-‐631
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Assortment Planning & Purchasing Instructor: Nancy Bombard
CITIED
Financial Highlights -‐ Financial Overview -‐ Ralph Lauren Investor Relations. (n.d.).Company Profile -‐ Corporate Overview -‐ Ralph Lauren Investor Relations. Retrieved from http://investor.ralphlauren.com/phoenix.zhtml?c=65933&p=irol-‐fundsnapshot Retrieved from http://subscriber.hoovers.com.subscriptions.fidm.com/H/company360/overview.html?companyId=40369000000000 http://www.wwd.com.subscriptions.fidm.com/menswear-‐news/fashion/ralph-‐lauren-‐embraces-‐tweed-‐for-‐fall-‐ 6672440?navSection=option http://www.wwd.com.subscriptions.fidm.com/business-‐news/financial/ralph-‐lauren-‐posts-‐better-‐than-‐expected-‐q2-‐ results-‐6467977?navSection=option http://www.wwd.com.subscriptions.fidm.com/business-‐news/financial/christian-‐dior-‐couture-‐sales-‐jump-‐24-‐6689203 http://www.wwd.com.subscriptions.fidm.com/retail-‐news/trends-‐analysis/nrf-‐predicts-‐slower-‐growth-‐in-‐2013-‐ 6666860?module=retail-‐news-‐trends-‐analysis-‐page-‐1 http://www.wwd.com.subscriptions.fidm.com/business-‐news/government-‐trade/us-‐officials-‐stress-‐industry-‐ importance-‐6606691?navSection=business-‐52 http://www.wwd.com.subscriptions.fidm.com/business-‐news/government-‐trade/industry-‐imports-‐fall-‐in-‐november-‐ 6595000?navSection=business-‐52 http://www.forbes.com/sites/ciocentral/2012/11/09/the-‐power-‐of-‐exponentials-‐the-‐social-‐media-‐effect-‐in-‐retailing/2/
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KEY: S > SWEATER D > DRESS SK > SKIRT P > PANTS O > OUTERWEAR T > TOPS > MANNEQUINS
Stanford Mall, Palo Alto Women Department FLOOR PLAN entrance bags
bags
accessory
accessory
S
T
S
P
round table
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O D SK O O D P S
bags
SK P T O D T O P S
SK
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way to other departments
way to other departments
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sitting area decor
accessory
mirror
book shelf
door Sonam Srivastava 200-149-631
Department Analysis Student Name: SONAM SRIVASTAVA Class 1 SWEATERS Class % 25%
Store Name, Location, Department: Season, Year: RALPH LAUREN, STANFORD MALL; WOMEN BLACK LABEL; W 13
Price Points % of Total Sizes % of Total Colors % of Total
$398 25% S 25% Pink/Purple 15%
$455 25% M 25% Blue 25%
$555 25% L 25% Sky Blue 25%
$1,098 25% XL 25% Green 25%
Price Points % of Total Sizes % of Total Colors % of Total
$1,100 25% 2,3,4 25% Print 25%
$1,200 30% 5,6,7 25% Green 25%
$1,300 25% 8,9,10 25% Blue 25%
$1,400 20% 11,12 25% Orange 25%
Total 100% Total 100% Total 100%
Price Points % of Total Sizes % of Total Colors % of Total
$600 25% 2,3,4 25% Plaid (b/w) 40%
$800 25% 5,6,7 25% Blue (swede) 30%
$1,100 30% 8,9,10 25% Deep Blue 30%
$1,600 20% 11,12 25%
Total 100% Total 100% Total 100%
Price Points % of Total Sizes % of Total Colors % of Total
$400 20% 2,3,4 25% Blue 25%
$500 20% 5,6,7 25% Orange 25%
$600 30% 8,9,10 25% Green 25%
$700 30% 11,12 25% Plaid 25%
Total 100% Total 100% Total 100%
Class 5 OUTERWEAR Price Points Class % % of Total 20% Sizes % of Total Colors % of Total
$1,400 70% 2,3,4 25% Plaid 25%
$1,700 30% 5,6,7 25% Blue 25%
8,9,10 25% Deep Blue 25%
11,12 25% Green-‐Blue 25%
Total 100% Total 100% Total 100%
$250 25% S 25% Print 25%
$450 25% M 25% Blue 25%
$650 25% L 25% Yelw/Orng 25%
$850 25% XL 25% Green 25%
Total 100% Total 100% Total 100%
Class 2 DRESSES Class % 15%
Class 3 SKIRTS Class % 10%
Class 4 PANTS Class % 15%
Class 6 TOPS Class % 15%
TOTAL DEPT % 100%
Price Points % of Total Sizes % of Total Colors % of Total
Yelw/Orng 10%
Total 100% Total 100% Total 100%
Merchandise Mix Modifications
Student Name: Class 1 SWEATERS Class % 25%
Class 2 DRESSES Class % 15%
Class 3 SKIRTS Class % 10%
Class 4 PANTS Class % 15%
Class 5 OUTERWEAR Class % 20%
Class 6 TOPS Class % 15%
TOTAL DEPT % 100%
Store Name, Location, Department: RALPH LAUREN, WOMEN Season, Year: Fall 2013 Stanford Mall, Palo Alto Black Label Collection
SONAM SRIVASTAVA
Price Points % of Total Sizes % of Total Colors % of Total
$398 20% S 30% Mauve 15%
$455 35% M 30% Teal 25%
$555 25% L 30% Light Blue 25%
$1,098 20% XL 10% Red 25%
Price Points % of Total Sizes % of Total Colors % of Total
$1,100 25% 2,3,4 30% Print 25%
$1,200 30% 5,6,7 30% Red 25%
$1,300 25% 8,9,10 30% Blue 25%
Price Points % of Total Sizes % of Total Colors % of Total
$600 25% 2,3,4 30% Plaid (b/w) 40%
$800 30% 5,6,7 30% Blue (swede) 30%
Price Points % of Total Sizes % of Total Colors % of Total
$400 15% 2,3,4 30% Blue 25%
$500 25% 5,6,7 30% Black 25%
Price Points % of Total Sizes % of Total Colors % of Total
$1,400 50% 2,3,4 30% Plaid 25%
$1,700 50% 5,6,7 30% Blue 25%
Price Points % of Total Sizes % of Total Colors % of Total
$250 30% S 30% Print 25%
$450 30% M 30% Blue 25%
AVG. RETAIL
Total 100% Total 100% Total 100%
$626.50
$1,400 20% 11,12 10% Black 25%
Total 100% Total 100% Total 100%
$1,250.00
$1,100 30% 8,9,10 30% Blackl 30%
$1,600 15% 11,12 10%
Total 100% Total 100% Total 100%
$1,025.00
$600 30% 8,9,10 30% Beige 25%
$700 30% 11,12 10% Plaid 25%
Total 100% Total 100% Total 100%
$550.00
$1,550.00
8,9,10 30% Black 25%
11,12 10% Teal 25%
Total 100% Total 100% Total 100%
$650 25% L 30% Red 25%
$850 15% XL 10% Yellow 25%
Total 100% Total 100% Total 100%
$550.00
Black 10%
Actual -‐ Last Year Beg.Month Stock STS Ratio Sales Sales % Total Markdowns Markdown % Total Purchases End Month Stock Future Sales STS Ratio BOM Plan -‐ This Year Beg.Month Stock STS Ratio Sales Sales % Total Markdowns Markdown % Total Purchases End Month Stock Future Sales STS Ratio BOM
Aug $202.8 6.0 $33.7 11.7% $14.7 36.6% $50.6 $205.0
Sep $205.0 5.0 $40.9 14.2% $6.7 16.7% $86.0 $243.4
Oct $243.4 4.9 $49.6 17.2% $3.4 8.5% $106.8 $297.2
Nov $297.2 3.6 $81.8 28.4% $3.0 7.5% $10.1 $222.5
Dec $222.5 4.2 $52.7 18.3% $10.4 25.9% $35.8 $195.2
Feb $39.5 5.2 207.3
Aug $208.9 6.0 $34.7 11.7% $15.1 36.6% $52.1 $211.2 Feb 40.7 5.2 213.5
Jan Total Actual Markdown $195.2 $1,366.1 $ % 6.6 $40.2 13.9% $29.4 $288.2 10.2% 100.0% $2.0 $40.2 Average Stock 5.0% 100.0% ACT $43.5 $332.9 $224.8 $207.3 $1,370.6 Turnover ACT 1.3 MARKUP %
Sep $211.2 5.0 $42.2 14.2% $6.9 16.7% $88.6 $250.7
Oct $250.7 4.9 $51.1 17.2% $3.5 8.5% $110.0 $306.1
Nov $306.1 3.6 $84.3 28.4% $3.1 7.5% $10.5 $229.2
Dec $229.2 4.2 $54.3 18.3% $10.7 25.9% $36.9 $201.1
Jan $201.1 6.6 $30.3 10.2% $2.1 5.0% $44.8 213.5
55.0%
Total Actual Markdown $1,407.1 $ % $41.4 13.9% $296.8 Sales Change % 100.0% 3.0% $41.4 Average Stock 100.0% PLN $342.9 231.5 $1,411.7 Turnover PLN 1.3 MARKUP %
ASSORTMENT PLAN Name Store/ Dept
Sonam Srivastava RALPH LAUREN, STANFORD MALL; WOMEN BLACK LABEL; W 13
This Year TOTAL Plan BOM Sales Markdowns Purchases UNITS TO BUY EOM (next mo. BOM)
AUG 208.9 34.7 15.1 52.1 67 211.2
SEPT 211.2 42.2 6.9 88.6 114 250.7
OCT 250.7 51.1 3.5 110.0 142 306.1
NOV 306.1 84.3 3.1 10.5 13 229.2
DEC 229.2 54.3 10.7 36.9 48 201.1
JAN 201.1 30.3 2.1 44.8 58 213.5
Total 1407.1 296.8 41.4 342.9 443 1411.7
This Year Plan BOM Sales Markdowns Purchases UNITS TO BUY EOM
Class: AUG 52.2 8.7 3.8 13.0 21 52.8
SWEATERS SEPT 52.8 10.5 1.7 22.2 35 62.7
Class %: OCT 62.7 12.8 0.9 27.5 44 76.5
25% NOV 76.5 21.1 0.8 2.6 4 57.3
Avg Retail: DEC 57.3 13.6 2.7 9.2 15 50.3
$626.50 JAN 50.3 7.6 0.5 11.2 18 53.4
Total 351.8 74.2 10.4 85.7 137 352.9
This Year Plan BOM Sales Markdowns Purchases UNITS TO BUY EOM
Class: AUG 31.3 5.2 2.3 7.8 6 31.7
DRESSES SEPT 31.7 6.3 1.0 13.3 11 37.6
Class %: OCT 37.6 7.7 0.5 16.5 13 45.9
15% NOV 45.9 12.6 0.5 1.6 1 34.4
Avg Retail: $1,250.00 DEC JAN 34.4 30.2 8.1 4.5 1.6 0.3 5.5 6.7 4 5 30.2 32.0
Total 211.1 44.5 6.2 51.4 41 211.8
This Year Plan BOM Sales Markdowns Purchases UNITS TO BUY EOM
Class: AUG 20.9 3.5 1.5 5.2 5 21.1
SKIRTS SEPT 21.1 4.2 0.7 8.9 9 25.1
Class %: OCT 25.1 5.1 0.4 11.0 11 30.6
10% NOV 30.6 8.4 0.3 1.0 1 22.9
Avg Retail: $1,025.00 DEC JAN 22.9 20.1 5.4 3.0 1.1 0.2 3.7 4.5 4 4 20.1 21.4
Total 140.7 29.7 4.1 34.3 33 141.2
This Year Plan BOM Sales Markdowns Purchases UNITS TO BUY EOM
Class: AUG 31.3 5.2 2.3 7.8 14 31.7
PANTS SEPT 31.7 6.3 1.0 13.3 24 37.6
Class %: OCT 37.6 7.7 0.5 16.5 30 45.9
15% NOV 45.9 12.6 0.5 1.6 3 34.4
Avg Retail: DEC 34.4 8.1 1.6 5.5 10 30.2
$550.00 JAN 30.2 4.5 0.3 6.7 12 32.0
Total 211.1 44.5 6.2 51.4 94 211.8
This Year Plan BOM Sales Markdowns Purchases UNITS TO BUY EOM
Class: AUG 41.8 6.9 3.0 10.4 7 42.2
OUTERWEAR SEPT 42.2 8.4 1.4 17.7 11 50.1
Class %: OCT 50.1 10.2 0.7 22.0 14 61.2
20% NOV 61.2 16.9 0.6 2.1 1 45.8
Avg Retail: $1,550.00 DEC JAN 45.8 40.2 10.9 6.1 2.1 0.4 7.4 9.0 5 6 40.2 42.7
Total 281.4 59.4 8.3 68.6 44 282.3
This Year Plan BOM Sales Markdowns Purchases UNITS TO BUY EOM
Class: AUG 31.3 5.2 2.3 7.8 14 31.7
TOPS SEPT 31.7 6.3 1.0 13.3 24 37.6
Class %: OCT 37.6 7.7 0.5 16.5 30 45.9
15% NOV 45.9 12.6 0.5 1.6 3 34.4
Avg Retail: DEC 34.4 8.1 1.6 5.5 10 30.2
Total 211.1 44.5 6.2 51.4 94 211.8
$550.00 JAN 30.2 4.5 0.3 6.7 12 32.0
Assortment Planning & Purchasing OPERATING STATEMENT
SONAM SRIVASTAVA
Women's
Ralph Lauren
Black Label Collection
RETAIL
NET SALES
% OF
$296.8
1
NET SALES
2
MARKDOWNS
$41.4
13.9%
3
EM DISC
$4.5
1.5%
4
SHRINK
$5.9
2.0%
5
TOT RET REDUC
$348.6
17.4%
COST
RETAIL
MU%
MU COMP %
6
BEG STK
$94.0
$208.9
55.0%
45.0%
7
NET PURCH
$147.4
$342.9
57.0%
43.0%
8
TOT STK
$241.4
$551.8
56.2%
43.8%
9
END STK
$88.9
$203.1
56.2%
43.8%
% OF COST 10
TOTAL STK COST
NET SALES
$241.4 $6.8
11
FREIGHT
12
TOTAL COST
$248.3
2.3%
13
END STK COST
$88.9
14
WORKROOM
$1.48
0.5%
15
COGS
$160.9
54.2%
16
GROSS PROFIT
$136.0
45.8%
17
CASH DISC
$5.9
2.0%
18
GROSS MARGIN
$141.9
47.8%
Expenses 19
ADVERTISING
$10.4
3.5%
20
PERSONNEL
$40.1
13.5%
21
MERCHANDISING
$20.8
7.0%
22
DISTRIBUTION
$11.9
4.0%
23
TOTAL INDIRECT
$16.3
5.5%
24
TOTAL EXPENSES
$99.4
33.5%
25
TOT PROFIT
$42.5
14.3%