BUYING & MERCHANDISING PROJECT
TABLE OF CONTENT
This presentation will include the following points: ➔ ➔ ➔ ➔ ➔ ➔ ➔ ➔
Brand Concept - ‘ MORG’ Moodboard of the brand Products offered Target customer and customer profile Competitor Analysis “MORG” Seasonal Budget “MORG” Product Season Planning “MORG” Best sellers Product Catalogue
BRAND CONCEPT
MORG is a minimalistic brand with the main value “less is more”. A brand where complexity and simplicity goes hand in hand. Our designs have to bring calmness to the customer. An atmosphere that that make you escape from the the chaotic world we live in. MORG plays around with lines and geometric shapes with a basic and minimal colour palette. The collections are designed in such a way that they stay contemporary and relevant. Our minimalistic approach has the aim to give the customer a breath of fresh air. To offer a clothing line that offer value to a customer’s closet.
PRODUCTS The Luxury brand MORG offers a variety of products ranging from: ➔ ➔ ➔ ➔ ➔ ➔
Denim Shirts and T-shirts Trousers Jackets and Coats Bags Shoes
TARGET CUSTOMER
The prospective customer for MORG is: ➔ ➔ ➔ ➔ ➔ ➔ ➔ ➔
Females aged 20-45 years. Middle or upper class with a high-income level (products are seen as investment pieces) They are highly educated Work in creative industries e.g. in fashion, graphic design and architecture. Lives in city centre Enjoy watching films, travelling, going to the theatre, art, architecture and shopping. Reads Vogue, Purple magazines She can be described as self-confident, optimistic, creative, outgoing, unconventional and eccentric.
CUSTOMER PROFILE ➔ ➔
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Hi my name is Bo, I’m 27 years old Work as junior architect for AART architects (Denmark) Obtained a master degree in urban architecture at Aalborg University in Denmark I live by myself in a rented apartment, with a minimalistic interior decoration and lot’s of natural light. I spend a lot of hours at the office but if I’m not II enjoy having people around me, I don’t mind throwing a dinner party at my place and enjoy some nice food and a glass of wine I care a lot about my health, organic food is a must. I spent a lot on natural skincare and makeup. I like an afternoon of shopping, which I normally spend at stores such as MORG, DAGMAR and COS. I describe myself as ambitious, always optimistic and a real go-getter.
FLAGSHIP STORE- STOCKHOLM Stockholm is known for its stylish women often seen at Stockholm Fashion week wearing a neutral coloured blazer, jeans, t-shirt and some boots. Our general aesthetic is inspired by the women of stockholm and how they dress making them a signiďŹ cant target market. Stockholm, capital of Sweden has a population of 952,058 people spread across the 14 islands that making up for 22% of the whole countries population. Stockholm is voted the most popular scandinavian city and is growing rapidly (expected to hit 3m by 2045) making it the perfect place for a new brand like morg to establish. By establishing the main ag ship store in such a rapidly growing city it will allow for Morg to remain true to its values and concepts whilst accommodating to its original and potential customers which are visiting from other countries.
FLAGSHIP STORE- CONCEPT
MORG’s stockholm flagship store follows the brands image and values of remaining feminine and minimalistic. The store reflects this through its unique architecture and visual merchandising allowing for the customer to be fully immersed in the Morg concept. The colour scheme for the store reflects the collections colour palette with natural minimal tones. By keeping the space open and free thinking it allows for the customer to shop the collections with a free mind that isn't interrupted with bright colours or loud music.
FLAGSHIP STORE - LAYOUT
PRODUCT CATALOG
COATS
Grey
Navy
Light blue
Black
White
Sand
JACKETS
Grey
Navy
Soft Pink
Light blue
Black
White
PANTS Charcoal
Camel
Navy
Black
Sand
DENIM
Charcoal
Navy
Lily
Black
White
T-SHIRTS
SHIRTS
Grey Navy
Soft Pink
SHOES
Light Blue
White
Sand
White
Black
BAGS
Soft Pink
COMPETITOR ANALYSIS
ABOUT & HISTORY
House of Dagmar is a Swedish fashion brand which was founded in 2005 by three sisters, Karin Söderlind, Kristina Tjäder and Sofia Wallenstam. The brand was named after their grandmother in celebration of her legacy. She was a tailor and model of confidence with an extraordinary sense of craftsmanship and style. Not only does her name carry the brand today, her sense of quality and ambition to create timeless fashion is still very much alive. House of Dagmar creates sustainable and expressive collections with knitwear at the core. Much of the inspiration behind the garments comes from architecture and contemporary art. They also pride themselves in creating minimalistic garments.
ORGANIZATION The organization of the brand relies on the fact that the brand is a family owned business. It aims to produce sustainable fashion in order to contribute to the ecological society.
PRODUCT RANGE AND PRICE Dagmar offer a wide range of products which cater to women of all sizes. (36-42) They offer all clothing categories as well as accessories , however they do not offer shoes. Each garment is priced accordinging which matches the brand positioning and targeting.
COATS
499 EUR
369 EUR
569 EUR
JACKETS
345 EUR
589 EUR
839 EUR
T-SHIRTS
79 EUR
79 EUR
SHIRTS
169 EUR
289 EUR
189 EUR
TROUSERS
219 EUR
249 EUR
199 EUR
DENIM
189 EUR
189 EUR
BAGS
1 209 EUR
495 EUR
289 EUR
DISTRIBUTION Dagmar oer an interactive e-commerce site as their main form of distribution. This matches their brand values as they believe in being sustainable and creating minimal waste. Their online store ships worldwide allowing them to have an international customer base. Dagmar also has 2 physical retailers in stockholm, Sweden. This allows for them to keep their strong swedish heritage and operate remotely.
ONLINE WEBSTORE
BRICK AND MORTAR STORES
PRODUCT PLANNING
GLOBAL BUDGET PLANNING We decided to divide our budget of 400,000 euros between each category accordingly. Taking into factor the production costs and potential popularity of some items over others. We allocated most of our budget to coats, jackets, bags and shoes as these categories have the highest production cost. In order to produce a good amount of units of these categories we uplifted their budget. We allocated 25% of our budget on bags, as part of our strategy. We expect to generate most sales through our range of high quality investment piece bags. The lowest allocated budget was to the T-shirts category. This was due to the low production costs, allowing us to produce a large quantity of products for a little price. The cost of producing trousers is higher than the production cost of a t-shirt but lower than the cost of producing coats and jackets. As trousers and denim are essential pieces in a wardrobe we allocated accordingly 10% and 6% of our budget. This dierence can be explain due to a lower denim production cost.
SALES PLANNING PER CATEGORY
As projected in the graph, we planned on generating most sales through our bags and shoes product line. This as part of the brands strategy, as we want to stand out for producing timeless, high quality shoes and leather bags. We want to become a brand that is mostly known for it’s bags and shoes. The second largest sales generating categories are coats and jackets. This can be explained as our coats and jackets retail for higher prices that the other ready to wear categories.
STOCK ALLOCATION STRATEGY
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We decided to allocate more stock to our Stockholm agship store as that is our primary store where the brand originated. We believe that Stockholm resonates with the target customer therefore will our products and values match those of the aesthetics shared amongst the stockholm citizens demand. Secondly we allocated the second largest quantity of stock to New York as we believe they share the same values and style as stockholm, however less intensely. We also decided to allocate less stock to Paris and London as we believe they embody a more creative and less minimalistic aesthetic, therefor consuming less of the MORG product range.
PRODUCT CATEGORY END OF SEASON ANALYSIS
T-SHIRTS
T-SHIRTS ANALYSIS The category t-shirts generated in total 69 595 €. 82% of the seasonal sales were generated by the MORG line. The company didn’t reached the sales target of 74 063 €. They missed the target with 6%. As seen in the graph the MORG LUXE line preformed pretty well, were the generated sales differ 1% from it’s sales target
BEST MONEY GENERATING SUB CATEGORY In this chart we can see that the MORG t-shirt line was generating most sales. Making up 82% of the overall t-shirt sales. This can be easily explained as we bought MORG t-shirt in higher quantities that the MORG LUXE t-shirt line.
BEST MONEY GENERATING PRODUCT The product with in our t-shirt category that generated most money is TS3M, A soft pink cotton jersey t-shirt that retailed for 65 EUR. This piece makes up 18% of the t-shirts overall sales. A possible explanation is that we bought more units of this product compared to the MORG LUXE unit buys, this together with the higher pricing than other products in the MORG category. Another explanation to support my ďŹ nding could be that soft pink was highly preferred colour by our clients.
BESTSELLER The bestsellers for MORG have a sell through of 78% 1. TS03M: soft pink cotton jersey t-shirt 2. TS05M: white fitted cotton jersey t-shirt The bestseller for MORG LUXE has a sell through of 94%. It’s a white oversized cotton jersey t-shirt. This t-shirt is the category’s bestseller. This high sell through can be justified as their were less units bought compared to the MORG line and because of the fact that white is the most basic and versatile t-shirt colour.
WORST SELLER The worst seller for MORG has a sell through of 58% with reference TS1M, A light blue oversized cotton jersey t-shirt. The worst seller for MORG LUXE has a sell through of 42% with reference TS1ML. A sand coloured v-neck cashmere t-shirt. Explanation: light blue is a more niche colour targeting a smaller audience as well is sand. Another explanation could be, that our audience prefers round necks above a v-neck
BESTSELLER
WORST SELLER
SHIRTS
SHIRTS ANALYSIS The category shirts generated in total 179 390 €. 71% of the seasonal sales were generated by the MORG line. The company didn’t reached the sales target of 192 563 €. They missed the target with 7%. As seen in the graph the MORG LUXE line performed better than well, were the generated sales exceeded the sales target with 1%.
BEST MONEY GENERATING SUB CATEGORY In this chart we can see that the MORG shirt line was generating most sales. Making up 71% of the overall shirt sales. This can be easily explained as we bought MORG shirt in higher quantities that the MORG LUXE shirt line.
BEST MONEY GENERATING PRODUCT The product with in our shirt category that generated most money is SH2M. A basic white cotton poplin shirt that retailed for 150 EUR. This can be explained as we bought more units of this product compared to the MORG LUXE unit buys, this together with the higher pricing than other products in the MORG category. A white basic shirt targets a wide customer audience, with is timeless and versatile design and colour.
BESTSELLER The bestsellers for MORG has a sell through of 77% with reference SH2M, a white cotton poplin shirt. The categories overall bestseller is a shirt from the MORG LUXE line with a sell through of 98% and reference SH2ML, an oversized white cotton poplin shirt. This high sell through can be justiďŹ ed as their were less units bought compared to the MORG line and because of the lower pricing with in our MORG LUXE product category. On the other hand is white the basic shirt colour, versatile and timeless
WORST SELLER The worst seller for MORG shirts has a sell through of 50% with reference SH4M,, A grey/white striped cotton shirt. The categories overall worst seller is a shirt from the MORG LUXE line with a sell through of 44% and reference SH3ML, a light blue/white striped cotton poplin shirt. Here we can concluded that low sell through is due to the stripe design.
BESTSELLER
WORST SELLER
NEXT SEASON IMPROVEMENTS + LESSONS LEARNED T-shirts: 1. The t-shirt with basic colours like white and black were more popular that our sand and light blue coloured t-shirt. Soft pink on the other hand was the bestseller and most money generating product in this category. This implies that we could oer next season more black and white coloured t-shirt in dierent shapes and designs. 2. The MORG LUXE t-shirt line had an overall high sell through and actual sales were only 1% lower than sales target. This implies that there is a great demand for top luxury priced t-shirts among our audience. From this we can conclude that we can increase the MORG LUXE t-shirt unit buys for next season, Shirts; 1. The stripe printed shirts had the lowest sell through within the brands shirt category. This implies that there was no big demand for stripes among our customers. From this we can conclude that our audience prefers solid color designs. 2. The MORG LUXE shirt line had an overall high sell through and actual sales were higher than the sales target. This implies that there is a great demand for top luxury priced shirts among our audience. From this we can conclude that we can increase the MORG LUXE shirt unit buys for next season,
COATS
COAT ANALYSIS
The category coats generated a total of 238,445€, Morg making up 186,000€ and Morg luxe making up 50,400 € The sales target for the coast category however was 248,603€ making the difference 10,158€. Amongst the total sales Morg generated 78% of the overall sales as there was more allocated stock to this category as well as more options and units.
COATS SUBCATEGORY ANALYSIS
Over the whole category of Coats the sell through was 72% although the ideal sell through is 75% it is understandable as out collection is a summer range of products which means customers are not as willing to purchase a coat at this time. Morg had a sell through of 72%, 2% higher than our more luxury sub category Morg Luxe. This may be due to the more accessible prices as well as the more seasonally appropriate styles and colours.
COATS SEASONAL SALES Majority of the coats in the morg range performed well and generated sales over 25,000 EUR. In total the category generated 236,400 Eur. We can also see that the morg luxe sales are signiďŹ cantly lower, due to less stock allocation and lower sell throughs. However, from this graph we can suggest that even in a summer product range there is still a market for coats.
COATS INDIVIDUAL PRODUCT SELL THROUGH ANALYSIS Product wise in the coat section the best sellers in each sub- category wereMorg- Black Lightweight Trench with a 91% sell through Morg Luxe- Black trench with a 100% sell through The reason these two items performed so well is because of the classic style and easy to wear colour. Stockholm, Paris and New York ( Stores with more allocated stock) oer a more minimalistic trend there for these coats would suit the targeted customer best. The worst sellers in this category wasMorg- grey coat with a sell through of 61% Morge luxe- with a sell through of 47% This may be because people are not wanting to buy a long coat in the summer and prefer to spend their money on a safter trench coat colour like black, apposed too sand.
BEST AND WORST SELLERS
Morg luxe black trench coat. 100% ST
Morg luxe sand trench coat. 47% sell through
JACKETS
JACKETS ANALYSIS
The category Jackets generated a total of 170,533€, Morg making up 135,938€ and Morg Luxe making up 33,000 € The sales target for the coast category however was 242,626€ making the difference 72,093€. Amongst the total sales Morg generated 73% of the overall sales as there was more allocated stock to this category as well as more options and units.
JACKETS SEASON SALES
As you can see the products generating the most sales were from the morg range. This maybe because of the colour choices- black being classic and easy to wear, and white being a summery colour. It is also clear that the morg luxe range generated signiďŹ cantly less sales. This is due to less units ordered and low sell throughs on products.
JACKETS INDIVIDUAL PRODUCT SELL THROUGH ANALYSIS Over the whole category of Jackets the sell through was 71% although the ideal sell through is 75% it is understandable as out collection is a summer range of products which means customers are not as willing to purchase a jacket at this time. Morg had a sell through of 73%, 10% higher than our more luxury sub category Morg Luxe. This may be due to the more accessible prices as well as the more seasonally appropriate styles and colours and the amount of units supplied.
JACKETS SUBCATEGORY ANALYSIS Product wise in the jacket section the best sellers in each sub- category wereMorg- White Summer Jacket Morg Luxe- White Leather And the overall jacket categories best seller was the White Leather Jacket from the Morg Luxe range with a 95% sell through. This was because there were only 20 units divided between the 4 stores. The reason these two items performed so well is because of the classic style and easy to wear/more seasonally appropriate colour.
BEST AND WORST SELLERS
Morg white summer jacket. 92% ST
Morg luxe grey blazer 30% ST
NEXT SEASON IMPROVEMENTS + LESSONS LEARNED - in both the jackets in coats category the colour “sand� seemed to generate a low sell through. For the next season i would suggest that the colour sand be replaced with the colour white for next seasons products as products in this colour had a higher sell through.. - I would also suggest a decrease in the amount of Coats in the MORG line as the sell through for 3 out of the 5 products was below 70%. The budget from these products could be allocated into buying more Black Trench coats which was the most popular product for the morg brand with a sell through of 100%.
SHOES
SHOES ANALYSIS BASED ON SALES VS SALES TARGET
When taking a look at the sales generated by the shoes as opposed to the sales target planning, it can be seen that the MORG line missed its target by 19% as they only obtained a total of €150 140 when the sales target was €184 450. The MORG LUXE line surpassed its sales target by achieving a total of €71 950 when their initial sales target was €65 250.
SHOES SUBCATEGORY ANALYSIS BASED ON SELL-THROUGH 63%
When taking the entire category of shoes into account, the average sell through came to 63%. This is a disappointment to the company due to the fact that the ideal sell through is 75%. Nonetheless, Morg managed to achieve a sell through of 60%, and Morg Luxe obtained a sell through of 83%. Seeing as shoes are investment and timepieces it would make sense as to why the top luxury products were able to sell out more than the luxury ones.
SHOES INDIVIDUAL PRODUCT SELL THROUGH ANALYSIS
By looking at each product and the sell throughs that they were able to generate, it can be seen that the heels had the highest sell throughs with 87%. This is safe to say that the best selling product were the high heels. The lowest sell through was the espadrilles, with 52% and the lace up sandals following right behind with a sell through of 55%. The worst selling products of the season were the espadrilles.
SHOES BESTSELLER ANALYSIS BASED ON SELL-THROUGH DATA
MORG LUXE
MORG
When analyzing the products in their respective subcategories, it can be seen that in the MORG subcategory, the black mules were the best sellers with a sell through of 72%. This is justiďŹ able as it is summer and many customers are seeking to an open and comfortable shoe to wear during the season. In the MORG LUXE subcategory, the shoe that ranked as best seller is the black high heel shoe with gold studs as it obtained a sell through of 87%. During the summer season, our clients are looking for a beautiful yet comfortable shoe to wear throughout the day, and can comfortably take them into the night time. This black high heel shoe is the one.
Total sales generated over the season €210 988
SHOES ; PRODUCT GENERATED SALES ANALYSIS AND BEST MONEY GENERATOR DETERMINATION In totality, the shoes category generated a total of €210 988. When analyzed by product it is clear to see that the mules generated the most sales with a total of €42 900. This is suffice to say that it was the best sales generator of the season. The worst sales generator was the Lace Up shoes, only ranking in €11 520 by the end of the season.
BAGS
BAGS ANALYSIS BASED ON SALES VS SALES TARGET
When taking a look at the sales generated by the bags as opposed to the sales target planning, it can be seen that the MORG line missed its target by only achieving €105 167 when its sales target was €123 113. Even though this line missed their target sales amount, it still managed to achieve 85% of its total target. The MORG LUXE line also underperformed when to came to its sales target by only achieving a total of €219 200 when their initial sales target was €260 250
BAGS SUBCATEGORY ANALYSIS BASED ON SELL-THROUGH 64%
When taking the entire category of bags into account, the average sell through came to 64%. This is a disappointment to the company due to the fact that the ideal sell through is 75%. Nonetheless, MORG managed to achieve a sell through of 64%, and Morg Luxe obtained an average of 64% as well. Similar to shoe, our luxury bags can be seen as investment and timepieces.
BAGS INDIVIDUAL PRODUCT SELL THROUGH ANALYSIS
By looking at each product and the sell throughs that they were able to generate, it can be seen that the ‘neverfull’ bag had the highest sell through with 75%. This is safe to say it was the best selling product of the season. The lowest sell through in the bag product category was the duffel bag, with 47%, following with the cross body bag at 57% and the satchel bag at 59%.
SHOES BESTSELLER ANALYSIS BASED ON SELL-THROUGH DATA
MORG
MORG LUXE
When analyzing the products in their respective subcategories, it can be seen that in the MORG subcategory, the backpack was the best seller with a sell through of 66%. In the MORG LUXE subcategory, the bag that ranked as best seller is the neverfull handbag shoe as it obtained a sell through of 75%. This is an ideal sell through for a product so it has performed well.
Total sales generated over the season €324 367
SHOES ; PRODUCT GENERATED SALES ANALYSIS AND BEST MONEY GENERATOR DETERMINATION In totality, the shoes category generated a total of €324 367. The sales target for the season was €383 363 meaning that the sales that were eventually achieved were less than expected. When analyzed by product it is clear to see that the casual day bag generated the most sales with a total of €72 900. This is suffice to say that it was the best sales generator of the season. The worst sales generator was the backpack, only ranking in €15 767 by the end of the season.This product only brought in 5% of the entire revenue.
NEXT SEASON IMPROVEMENTS + LESSONS LEARNED
B A G S - When taking a look at the performance of
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the bags throughout the entirety of the summer season, it can be seen that majority of MORG’s customers prefer to purchase bags similar to the neverfull bag, seeing as it was the most successful. They do not respond well to backpacks, so the strategy for the next season would be do decrease bags that have a similar style to backpacks and focus more on handbag designs.
S H O E S - The shoes did not perform too well as a category in this speciďŹ c season. As expected, the mules were the best performing product of the category due to the season along with the open toe high heels. What can be deduced from these statistics is that the customers who purchase MORG are looking for comfortable and open shoes for the summer season as opposed to closed shoes (as seen by the unfavourable performance of the sneakers)
TROUSERS
TROUSERS ANALYSIS The trouser category generated a total of 169,950â‚Ź for the Summer season. however still missing out on the overall season sales target (220,688â‚Ź) by 23%. Out of the season sales for the category, 76.5% were generated by the MORG line and 23.5% went to the MORG LUXE line, Out of the two sub-categories, MORG was the better performing, being 22% down on sales whilst MORG LUXE performed at 26% less than the target.
BEST MONEY GENERATING SUB CATEGORY Overall in the trouser category, the best money generating sub-category was MORG generating 76.5% of sales as reflected in this chart. This is explained by the strategy chosen for the business on the whole, opting to have the majority of the offering of products in the lower luxury line MORG as they can achieve a higher profit margin for the business, therefore, more of a product offering equalling a higher percentage of sales.
BEST MONEY GENERATING PRODUCT BASED ON OVERALL SALES The product which generated the most money overall in the trouser category was the TR04M, a soft, drapey, sand coloured pair of trousers, making 28,400₏ and 17% of the overall sales for the category. This is likely because it is lighter in colour and a lighter fabric than most of the other trousers in the oering and most of the cities in which the stores are located experienced longer than normal summers with above average temperatures, increasing the need for lighter weight trousers.
BEST MONEY GENERATING PRODUCT BASED ON PROFIT ACHIEVED The best money generating product based on profitability was again the TR04M trouser generating 20,756€ profit and 17% of sales overall for the category.
BEST SELLER The best selling product for the trousers, at 79% sell through, was: 1. TS04M: Sand Crepe de Chine Wide Leg Pant This can again be explained by the nature of the fabric being lightweight and perfect for warm weather. And both in second place at 64% sell through were: 2. TR05M: Navy Crepe Wide Leg Pant 3. TR01M: Black Cotton Blend Twill Slim Leg Pant Reasons for higher sell through in these two styles could be: colour, both classic colours easy to match with other colours; fabric, easy to take care of, and both relatively lightweight; style, both are classic styles which atter a wide range of body shapes; price point TR01M performing better than its similar top luxury counterpart TR01ML as the customer feels they are getting value for money.
WORST SELLER The worst seller in the trousers category was the TR03M with a sell through of only 42%, closely followed by the TR06M with only 44% sell through; these were the only two trouser styles in linen with a paperbag waist, so the reason the customer did not connect with either of these pant styles is likely because either they did not find the paperbag waist flattering or they felt the linen fabric did not fit their lifestyle.
BESTSELLER
TR04M - 79% SELL THROUGH
WORST SELLER
TR03M - 42% SELL THROUGH
S/S TROUSERS Sub-Categories
Reference
Description
Colour
Retail Price
Sell Through
MORG LUXE
TR01ML
Fine wool blend wide leg pant
Black
€850
60%
MORG LUXE
TR02ML
Fine wool blend wide leg pant
Charcoal Pinstripe
€850
50%
MORG
TR01M
Cotton blend twill slim leg pant
Black
€400
64%
MORG
TR02M
Cotton blend twill slim leg pant
Navy
€400
58%
MORG
TR03M
Linen cotton blend paper bag waist wide leg pant
Camel
€400
42%
MORG
TR04M
Crepe de chine Wide leg pant
Sand
€400
79%
MORG
TR05M
Crepe wide leg pant
Navy
€400
64%
MORG
TR06M
Linen cotton blend paper bag waist wide leg pant
Deep Charcoal
€400
44%
DENIM
DENIM ANALYSIS The denim category generated a total of 124,070â‚Ź for the Summer season. however still missing out on the overall season sales target (162,675â‚Ź) by 24%. Out of the season sales for the category, 77.4% were generated by the MORG line and 22.6.% went to the MORG LUXE line, Out of the two sub-categories, MORG LUXE was the better performing, only 13% down on sales whilst MORG performed at 26% less than the target.
BEST MONEY GENERATING SUB CATEGORY Overall in the denim category, the best money generating sub-category was MORG generating 77.4% of sales as reflected in this chart. This can again be explained by the strategy chosen for the business on the whole, opting to have the majority of the offering of products in the lower luxury line MORG as they can achieve a higher profit margin for the business, therefore, more of a product offering equalling a higher percentage of sales.
DENIM SALES BEST MONEY GENERATING PRODUCT BASED ON OVERALL SALES The product which generated the most money overall in the denim category was the DE05M, a high rise, black, skinny jean, making 20,590€ and 17% of the overall sales for the category. This is likely because it is the most classic shape and colour of all of the styles in the MORG category, and the MORG LUXE category did not include any offerings of jeans, therefore making it an easy choice for the customer.
DENIM PROFITABILITY BEST MONEY GENERATING PRODUCT BASED ON PROFIT ACHIEVED The best money generating product based on profitability was again the DE05M black skinny jean, generating 15,170€ profit and 17% of sales overall for the category. This is because of its low cost price and the strategic decision to buy more units generating higher margin and more profit for the business.
BEST SELLER DENIM SELL THROUGH
The best selling product for denim, at 75% sell through, was: 1. DE02ML: White Oversized Denim Jacket This be can explained by the lower unit buy for this product which therefore made the sell through of the product easier in comparison to the higher unit buy in the MORG line. It can also be noted that the customer is happy to spend the extra money on a denim jacket rather than a pair of jeans: the MORG LUXE line having an average sell through of 65% compared to the MORG sell through average of 55%. In second place at 71% sell through was: 2. DE05M: High Rise Skinny Jean Which can again be explained by the the classic cut and colour of this speciďŹ c style: meaning the customer is willing to spend on items that will last more than one season.
DENIM SELL THROUGH WORST SELLER The worst seller in the denim category was the DE02M with a sell through of only 43%, closely followed by the DE06M with only 45% sell through, both of which were the only mid-rise skinny jeans in the collection, therefore reflecting the customer’s preference to other shape offerings.
BESTSELLER
TR04M - 75% SELL THROUGH
WORST SELLER
TR03M - 43% SELL THROUGH
S/S DENIM Sub-Categories
Reference
Description
Colour
Retail Price
Sell Through
MORG LUXE
DE01ML
Oversized belted denim jacket
Black
€390
56%
MORG LUXE
DE02ML
Oversized Denim Jacket
White
€390
75%
MORG
DE01M
Cropped Mid-rise Straight leg jean
Black
€290
56%
MORG
DE02M
Mid rise skinny jean
Light Denim
€290
43%
MORG
DE03M
Cropped Mid-rise Straight leg jean
Navy
€290
55%
MORG
DE04M
Mid-rise flare leg jean
White
€290
61%
MORG
DE05M
High rise skinny jean
Black
€290
71%
MORG
DE06M
Mid rise skinny jean
Charcoal
€290
45%
NEXT SEASON IMPROVEMENTS + LESSONS LEARNED TROUSERS: Customers were overall very interested in lighter fabrics, as well as classic coloured trouser offerings, therefore in future it could be advantageous to introduce the TR04M in more classic colours such as navy and black; also creating an opportunity to increase profit as the cost price of that style is particularly low. Also opportunity to buy more units in total of this style. DENIM: Customers were relatively uninterested in pale blue denim even in the summer season so this fabrication could be dropped from the line altogether. Opportunity to add more colours in the DE05M jean as this was a particularly popular style and was the most beneficial in terms of profitability in the category. Altogether however budget should be decreased for the trouser and denim offerings and the lines reduced to only the most classic and best selling offerings in order to increase sales and profit in other areas, as both categories performed respectively at 23% and 24% below budget.
GLOBAL END OF SEASON SALES ANALYSIS
GLOBAL SALES RESULTS
As shown in the graph, our store did not reach its overall sales target. The store generated 16% less sales than planned (sales variance: -16%). The store’s MORG line made up the biggest part of the total sales. This is due to the fact that we bought more units and sold more MORG line products than MORG LUXE products. But our MORGE LUXE line performed better as it’s sales variance is lower than the MORG product line variance.
BEST & WORST MONEY GENERATING STORE FOR THE SEASON The store that generated the most money is stockholm. This is due to our stock allocation strategy, as we allocated most of our units to the agship Stockholm store as that is our primary store. A lot of units were sold, generating a high amount of sales, as our store represents the minimalistic Scandinavian vibe. The worst sales generating store was Paris. This can be explained, as the least units were allocated to our Paris based store.
RESULTS MORG vs MORG LUXE
The graphs on the right show that Morg generated more sales overall in comparison to Morg Luxe, as well as in all categories except for bags. The reason morg generated 66% of the annual sales is because there were more units produced there for more units sold. This is the result of the brands RTW strategy, where we decided to main focus on the MORG line instead of the MORG LUXE product line. The category bags generated more sales in the Morg Luxe range because of our chosen strategy, to oer top luxury bags
2 BEST MONEY GENERATING CATEGORIES As it can be seen in the following graph, the two best money generating categories are the bags and the coats. The bag category ultimately ranked in the highest income with over 300 000 euros in sales. This is due to the combination of unit bought and the high retail prices. The second best money generating categories are the coast, this again due to combination of unit bought and the high retail prices.
2 BEST AND WORST SELLING CATEGORY The two best selling categories are the coats with a sell through 72%, followed by jackets and T-shirts with a sell through of 71%. The two worst selling categories are Trousers with 58% sell through followed by our denim line with a 57% sell through. A possible explanation is that we bought too many units of trousers and denim units, where there was not such a high demand for both categories.
SEASONS BESTSELLER
SEASONS WORST SELLER
BLACK TRENCH COAT - 100% Sell through
SAND V-NECK T-SHIRT - 42% Sell through
GLOBAL CONCLUSION From our 400 000€ budget, the company managed to spend 399 760 EUR. The company spent 240 EUR less than the overall budget, this implies that MORG respected the budget tolerance of 1% The company didn’t manage to reach its overall sales target of 1 775 740 € as we only generated 1 494 800 €, a variance of -16%. This indicates that we generated 16% less sales than our 75% sell through sales target. The company managed to have an average overall selltrough of 66%. MORG generated in total a profit of 981 160 €. We can conclude that MORG didn’t perform that bad, yet their performance wasn’t fantastic either. There is space for optimization. From the past season we have learned to focus more on basic colours such as navy, black and white as they were globally the products with the highest sell through.
GLOBAL CONCLUSION Some of the category budget allocation has to be reviewed as for example the trousers and denim category performed badly with the lowest sell through. Here we could take away budget as there was no big demand for both product categories. If we decrease budget, we will decrease units bought, this will result in a higher sell through as we will be left with less stock. The subcategories budget mixes need to be reviewed as well. For example high sell through for MORG LUXE shirts compared to a lower sell through for MORG shirts, implies that we could increase MORG LUXE shirt budget, that on his turn will increase unit buy as there is a great demand for this top luxury product. This season sales analysis gave us a look into the company's performance and will allow us to adapt strategy and to become more proďŹ table in the future.