Mock Brand Winter Season Buying Plan and Analysis

BUYING & MERCHANDISING WINTER PROJECT

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.

WINTER THEME SCANDINAVIAN ALPS MORG winter collection is inspired by the scandinavian alps. This theme is rich to MORG’s identity as the values include a minimalist aesthetic. This theme will include a monotone, minimalist colour palette made uo of the colours you may ďŹ nd in the middle of winter on the scandinavian alps. These colours, White, Grey, light blue and silver create a bold collection with a visible theme and story.

CHRISTMAS COLLECTION THEME

In contradiction to MORG’S minimalistic winter aesthetic the christmas collection will be presented in all red. This bold colour statement oers a festive product approach whilst still remaining monotoned. An all red collection of winter based products is a clear representation of the traditional christmas colours.

MORG has designed the christmas collection to coincide with the winter collection, allowing both collections to be styled together seamlessly.

As this collection will only be present during the christmas period we can justify it to customers as a strictly theme based collection which will not damage our brands stylistic presence.

CHRISTMAS MOODBOARD

PRODUCTS The Luxury brand MORG offers a variety of products ranging from: WINTER COLLECTION ➔ ➔ ➔ ➔ ➔ ➔

Shirts and knitwear Trousers Jackets and Coats Bags Shoes hats, gloves, scarves ( christmas)

SEASON KEY PRODUCTS

COATS

Grey

Light blue

White

Black Silver

Red Sad

JACKETS

Grey Grey

Light blue

White

Black Silver

Red Sad

€ 255

SHIRTS

€ 135

€ 475

KNITWEAR € 1375

TROUSERS

600€

600€

DENIM

JACKET 600€ CARRY OVER

JEANS 500€

BAGS

SHOES

KEY PRODUCTS XMAS COLLECTION

€ 360

€ 360

€ 360

€ 360

Grey

Sad

XMAS COLLECTION PRODUCTS

Mohair Long Coat

Puffer Jacket

Silk shirt

V neck sweater

Retail Price: €999

Retail Price: €859

Retail Price: €140

Retail Price: €525

XMAS COLLECTION PRODUCTS

ROUND BAG Retail Price: €755

ANKLE HIGH HEEL BOOTS

SKINNY LEATHER TROUSERS

OVERSIZED DENIM JACKET

Retail Price: €380

Retail Price: €335

Retail Price: €225

WINTER SEASON PLANNING

GLOBAL BUDGET PLANNING STRATEGY

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Most budget planned on coats and jackets (35%) ○ Highest cost prices ○ More units for winter season Third largest budget planned for knitwear (12%) ○ High cost price ○ Warm clothing for winter 15% planned on Xmas collection

BUDGET PLANNING STRATEGY MAX

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Total budget shirts 55 760 € ○ Represents 8% of the global budget ○ almost 50-50 divided over MORG & MORG luxe ○ Most MORG unit buys Total budget knitwear € 83 925 ○ Represents 12% of global budget ○ almost 40-60 divided over MORG & MORG luxe ■ Cost of MORG luxe almost 4x cost of MORG line ○ Most MORG unit buys

BUDGET PLANNING STRATEGY ORION

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Total Coat budget - 132,505€ -Majority made up by the Morg Range.

-20,000€ more allocated to coats than jackets due to the higher cost prices.

- represents 19% of the global budget.

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Total jacket budget - 111,825€ Morg range budget is 4x higher than the Morg luxe range due to the number of units and more product options. represents 16% of the global budget.

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BUDGET PLANNING STRATEGY GEORGIA 16% 6,720€

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60% 16,800€

84% 35,280€

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40% 11,200€

Total budget trousers 42,000€ ◆

Represents 6% of the global budget

◆

16%/84% split in favour of the MORG line as it had the highest sell through in the previous season

Total budget denim 28,000€ ◆

Represents 4% of global budget

◆

60%/40% divide in favour of MORG Luxe as last season it had a higher sell through

BUDGET PLANNING STRATEGY RENE

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Total Budget for shoes - 70075 € MORG ; 43200€ which represents 62% of the budget MORG LUXE ;26875€ which represents 38% of the budget Why? People tend to buy more simplistic shoes in winter for convenience Total Budget for bags - 69810€ MORG ; 25800€ which represents 37% of the total budget MORG LUXE ; 44010€ which represents 63% of the total budget Why? Morg customers invest more in top luxury bags as they are seen as staple pieces

GLOBAL SALES TARGET

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Overall sales target: € 3 180 391 ○ 1,1 million (36%) generated through coats & Jackets ■ Highest retail pricing ○ Almost 0.5 million (15%) generated through Xmas collection ○ Almost 1 million (32%) through rest of RTW ○ Almost 600 thousand (18%) accessories

STOCK ALLOCATION STRATEGY

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Most stock allocated to the E-shop (28%) ○ Serve a global audience Secondly, 26% allocated to Stockholm ○ Flagship store ○ Brands beating heart ○ Minimalistic values 20% New York ○ Wide target that resonates with brand values Paris/London the least stock ○ More creative mindset

PRODUCT CATEGORY END OF SEASON ANALYSIS

TROUSERS + DENIM

ACHIEVED SALES VS. SALES TARGET

TROUSERS: ➔ ➔ ➔

Total sales target: €249,750 Total sales: : €198,398 Variance: -21%

DENIM: ➔ ➔ ➔

Total sales target: €144,388 Total sales: €124,295 Variance: -14%

Overall Sell Through VS Profit Made ➔ ➔ ➔

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Best selling sub category MORG Denim with 68% sell through Worst selling sub category MORG Luxe Denim with 55% sell through Highest profit achieving sub category MORG Trousers at $106,386 Lowest profit achieving sub category MORG Luxe Trousers Higher margin on MORG line plus more sales equals increase in profitability of sub category

BEST MONEY GENERATING PRODUCTS: TROUSERS MORG ➔ ➔ ➔ ➔ ➔

TR03M - Tamara stretch crêpe tapered pants Represents 17% sales Retail Price: €600 Easy flattering fit with stretch waist Classic colour

MORG LUXE ➔ ➔ ➔ ➔ ➔ ➔

TR01ML - Ellie cropped ribbed cashmere blend wide leg pants Represents 16% sales Retail Price: €1200 Luxurious fabric that is chic but also warm Classic color Easy flattering relaxed fit

MORG

Tamara stretch crêpe tapered pants Retail Price: €600

MORG LUXE

Ellie cropped ribbed cashmere blend wide leg pants Retail Price: €1200

BEST TROUSERS Bestseller ➔

TR03M - Tamara stretch crepe tapered pants in white

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Sell through 81%

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Classic colour and relaxed fit: easy to mix and match and layer even with extra winter kilos

Worstseller ➔

TR01ML - Ellie cropped ribbed cashmere blend wide leg pants in grey

➔

Sell through 50%

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Best selling in terms of unit sales: higher quantity bought equals lower sell through

BEST SELLER

Tamara stretch crêpe tapered pants (white) Retail Price: €600

WORST SELLER

Ellie cropped ribbed cashmere blend wide leg pants (grey) Retail Price: €1200

BEST MONEY GENERATING PRODUCTS: DENIM MORG ➔ ➔ ➔ ➔

DE02M - high-rise skinny sculpt jeans in white Represents 13% sales Classic colour Best selling shape of previous season and most popular for MORG customers

MORG LUXE ➔ ➔ ➔

DE01ML - jacket with cutwork embroidery in white Represents 18% sales Classic colour

MORG

High-rise skinny sculpt jeans Retail Price: €355

MORG LUXE

Jacket with cutwork embroidery Retail Price: €500

BEST & WORST SELLER DENIM Bestseller ➔ ➔ ➔ ➔

DE02M - High rise skinny sculpt jeans in white Sell through 73% Best selling denim fit from previous season Skinny high rise jeans most popular for the MORG customer

Worstseller ➔ ➔ ➔ ➔ ➔

DE02ML-CO - Oversized white denim jacket Sell through 52% Second highest unit sales in MORG Luxe Higher quantity bought equals lower sell through Carry over style from previous season - reaching point of fatigue

BEST SELLER

High rise skinny sculpt jeans (white) Retail Price: €355

WORST SELLER

Oversized white denim jacket Retail Price: €500

CONCLUSION // RECOMMENDATIONS

TROUSERS: ➔

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Customers opted for more relaxed fits with an elasticized waist across both MORG and MORG Luxe ◆ Continue to produce these styles for Summer season in lighter fabrics Classic colours and fabrics more popular than metallic/printed styles

DENIM: ➔ ➔ ➔ ➔

MORG bottom line: continue to buy higher quantities of high waist skinny jean styles MORG: Increase budget split percentage in MORG:: this season’s sell through (68%) higher than MORG Luxe line (55%) MORG Luxe: continue to introduce new styles in white denim jackets as these have been best sellers two seasons in a row MORG Luxe: remove or reduce unit buy of carry over jacket style as sell through has reduced. ◆ Can create feeling of exclusivity less units: increasing customer desire for the product once again

SHIRTS + KNITWEAR

ACHIEVED SALES SALES TARGET

Shirts: ★ ★ ★ ★

Total sales target: € 241 425 Total sales: : € 209 280 Overall variance: -13% MORG & MORG luxe line performed quite the same missing their sales target with respectively 13% & 14% Knitwear:

★ ★ ★ ★

Total sales target: € 338 719 Total sales: € 244 900 Variance: -28% MORG performed better than MORG luxe missing their sales target with respectively 24% & 32%

CATEGORY & SUBCATEGORY PERFORMANCE ★ ★

Shirts are best performing category with 65% ST knitwear performed less with an overall ST of 56% ○ MORG luxe sold approx. half of the units bought (ST 52%) and performed the worst

BEST MONEY GENERATING PRODUCTS SHIRTS ★

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MORG ○ SH01M - Oversized double button cotton shirt (grey) ○ Represents 17% sales ○ RP: € 180 ○ Higher margin (85%) ○ Basic color ○ Basic design MORG LUXE ○ SH01ML - Paneled cotton-poplin shirt (white) ○ Represents 16% sales ○ RP: € 225 ○ Higher budget → more units bought ○ Basic color

MORG

Oversized double button cotton shirt RP: € 180

MORG LUXE

Paneled cotton-poplin shirt RP: € 225

BEST & WORST SELLER SHIRTS

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Bestseller ○ SH01M - Oversized double button cotton shirt (grey) ○ Sell through 84% Worstseller ○ SH03ML - Ruffled cotton-poplin shirt (white) ○ Sell through 47%

BESTSELLER

Oversized double button cotton shirt RP: € 180

WORST SELLER

Ruffled cotton-poplin shirt RP: € 225

BEST MONEY GENERATING PRODUCTS KNITWEAR ★

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MORG ○ KN02M - Puffed sleeved ribbed merino turtleneck sweater (white) ○ Represents 14% sales ○ Higher margin (83%) ○ Basic color MORG LUXE ○ KN03ML - tie-back wool-blend turtleneck sweater (grey) ○ Represents 18% sales ○ Product with high sell through (70%) ○ High retail price

MORG

Puffed sleeved ribbed merino turtleneck sweater RP: € 550

MORG LUXE

tie-back wool-blend turtleneck sweater RP: € 1274

BEST & WORST SELLER SHIRTS

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Bestseller ○ KN03M - Dropped shoulder cropped sweater (white) ○ Sell through 76% Worstseller ○ KN04M - Oversized wool sweater (grey) ○ Sell through 33%

BESTSELLER

Dropped shoulder cropped sweater RP: € 475

WORST SELLER

Oversized wool sweater RP: € 475

CONCLUSION ★ ★ ★

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Shirts globally performed the best of the RTW categories with a ST of 65%, Almost same shirt performance over both seasons (summer ST of 68%) MORG luxe shirts show potential, as the average ST was lowered by the categories worst seller with a ST of 47%, while the other products had a high ST of 73% and 74% ○ We could had have a higher overall ST for MORG luxe if we had chosen a more basic shirt design over the big ruffles.

Knitwear performed the worst of the RTW categories with a ST of 56% The best selling knit was a cropped sweater while the worst selling knit was a longer oversized design ○ customer prefer shorter designs above longer knit designs Overall we can conclude that the colour white was the most popular among the knits The silver knit had a low ST 37%, as we allocated more budget to this product, we had a higher number of unit buys compared to the other MORG luxe knits. ○ Silver is niche colour, we should have had allocated more to the basic colours and less to the silver knit For the knitwear we can conclude the demand of MORG luxe products is very low. The demand for MORG knitwear was slightly higher but has to be reviewed.

COATS + JACKETS

COAT SALES VS SALES TARGET

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in both Morg and morg luxe the sales target was not met.

MORG - 106,996 difference MORG Luxe17,604 difference.

MORG vs MORG LUXE SELL THROUGH ★

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Morg sell through is higher due to the higher number of units and more accessible price points.

10% difference between Morg and the Morg luxe range

BEST & WORST SELLER COATS ★

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best seller- MORG Luxe silver trench coat. reasonscolour and style.

Worst seller - Morg luxe grey cashmere belted coat. reasons- style may not fit the aesthetic of the brand.

BESTSELLER Morg Luxe

Silver trench coat RP: € 2,800

WORST SELLER Morg Luxe

Grey cashmere belted coat RP: € 3,200

JACKET SALES VS SALES TARGET ★ ★ ★

both categories sales targets were not met.

MORG - 67,942 difference.

MORG Luxe- 19,201.

MORG vs MORG LUXE SELL THROUGH

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Morg had a higher sell through.

Reasons- More units were produced at a more affordable price.

5% difference between the two.

JACKET BEST AND WORST SELLER ★

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best seller - white denim jacket. reasons- colour and style, easy to wear. worst seller- white puffer jacket. reasons- style and colour ( easy to stain.)

BESTSELLER Morg

White denim jacket RP: € 810

WORST SELLER Morg

White wrap puffer RP: € 900

COATS AND JACKETS CONCLUSION

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Over all in both categories the MORG Luxe range generated more sales. This is due to the more units and product options at more affordable prices. however majority of the products did not reach the ideal sell through of 75% therefore in future we may need to look at the styles and colours.

From the statistics i can conclude that in future MORG as a brand will continue to produce white denim jackets in both summer and winter collections as that is a popular product with a sell through of 78% I can also conclude that the style of larger oversized jackets and coats do not connect with our customers as they both had low sell throughs.

BAGS + SHOES

Bags Sales vs Sales Target As seen in the above graph, the bag category under performed when compared to the sales target. The category managed to obtain an amount of â‚Ź231 542 when the estimated sales target was â‚Ź278 535.

Bags Category Sales vs Sales Target ➔

When taking a look at the sales versus the sales target in the respective brand categories, it can be seen that both MORG and MORG LUXE under performed.

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In the MORG category, the sales target was €122 363 And the sales that the category achieved was €168 455

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In the MORG LUXE category, the sales target was €156 173 And the sales that the category achieved was €111 031

Bag analysis through sell through

Overall: 67% ➔

When analyzing the performance of the bag category through sell through, it can be seen that the overall sell through was 67%.

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In each respective category, the MORG category achieved sell through of 53% and the MORG LUXE category achieved a sell through of 67% .

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Considering that an ideal sell through is 75% for any category, it can be deduced that both categories underperformed.

Bag product analysis through sell through

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Now to take a look at the individual products through analyzing sell through. It can be clearly seen that the best sold product is the clutch bag at a sell through of 70% and the worst sold product is the neverfull bag.

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This is disappointing as in the previous season, the neverfull bag was the one that obtained the highest sell through.

Nonetheless, there was no product in the bag category that surpassed a sell through of 75% which is an unfavorable result.

Bags Best Sellers through analyzing sell through

In each of the respective brand categories, the classic handbag was the best seller in the morg category with a sell through of 67% and the clutch bag was the best seller of the Morg luxe category with 70%

BAG - Best sellers in their respective categories

Clutch Bag Category ; MORG Color ; White Price ; €2 445

Classic Handbag Color; Transparent Category ; MORG Price ; €755

Bags - Sales generated by each product

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When taking a look at the sales generated by each product in bag category, it can be seen that the classic handbag generated the most money with € 46,810.

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The least money generating product is the duffel bag only bringing in € 10,150

Shoes Sales vs Sales Target ➔

As seen in the above graph, the shoe category under performed when compared to the sales target.

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The category in total managed to obtain an amount of €260 751 when the estimated sales target was € 297 750.

Shoes Category Sales vs Sales target ➔

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When taking a look at the sales versus the sales target in the respective brand categories, it can be seen that both MORG and MORG LUXE slightly under performed.

In the morg category, the sales target was €230 075 And the sales that the category achieved was €291 033 In the MORG LUXE category, the sales target was €87 875 And the sales that the category achieved was

Shoes Sell Through analysis based on brand categories

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By taking a look at the sell throughs of the respective categories it can be seen that as a category, the MORG category performed better by achieving a sell through of 68%.

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MORG LUXE on the other hand only managed to obtain a sell through of 68% which is under the industries desired sell through of 75%.

Shoes individual product analysis

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When taking into account the analysis of each product based on sell through, it can be seen that the product with the most sell through - ultimately meaning they were best selling are the loafers at a sell through of 75%.

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Following in second place of the highest sell through are the ankle boots at 70%.

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The worst selling product with the lowest sell through was the Hunter design boots with a sell through of 46%.

Best selling products based on sell through

The best selling products in their respective categories were as follows; âž”

In the MORG category, the Loafers were the best selling product with a sell through of 75%

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In the MORG LUXE category, the best selling product was the sneaker shoe at a 62% sell though

BAG - Best sellers in their respective categories

Loafers Category ; MORG Color ; White Price ; €360

Sneakers Category ; MORG LUXE Color ; Blue Price ; €1 030

CONCLUSION BAGS AND SHOES

When taking into account the shoe and bag categories it can be seen that they did not perform as well as expected.

Considering that on a global scale there were only 2 products that managed to either come close or surpass the 75% sell through mark is a let down.

With that being said however, it can be seen that a pattern for the MORG customer is developing whereby, in the summer seasons they prefer more closed and small bags and in winter they prefer more small and compact bags in order to get around.

In terms of shoes, the sneaker category is popular cross seasonally which goes to show that our customer prefers shoes of that design for comfort and convenience.

WINTER SEASON END OF SEASON SALES ANALYSIS

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Total achieved sales € 2 574 546 Total sales target; € 3 178 272 Variance: -23% Worst performing category knitwear with a variance of -28%

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is

2 best money generating categories ○ Coats made up 19% sales ○ Jackets made up 16% sales

BEST & WORST MONEY GENERATING STORE

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The E-shop generated most money Paris worst money generating store

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The Parisian shop performed the best with a sales variance of -18% the others performed the same, missing all their sales target with 19%

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Total sales MORG: € 1 490 113 Total sales target MORG € 1 801 906 Total sales MORG LUXE: € 676 964 Total sales target MORG LUXE € 884 899

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Sales variance MORG: -17% Sales variance MORG LUXE: -23%

BEST & WORST SELLING CATEGORY ★

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Best selling categories: ○ Shoes ST 66% ○ Shirts ST 65% Worst selling categories: ○ knitwear 56% ST ○ Jackets 57% ST

BESTSELLER SEASON

Oversized double button cotton shirt RP: € 180 ST: € 84%

WORST SELLER SEASON White wrap puffer RP: € 900 ST: 39%

CHRISTMAS COLLECTION

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Total achieved sales: 407 469 € Total sales target:491 468 € Variance: -17%

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Best money generating product: ○ CO1XMAS red long mohair coat

BEST & WORST SELLER XMAS COLLECTION

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Bestseller ○ SH1XMAS - Silk crepe de chine shirt ○ Sell through 71% Worstseller ○ SC1XMAS - red wool ombre scarf ○ Sell through 47%

BESTSELLER

Silk crepe de chine shirt RP: € 140

WORST SELLER Wool Ombre Scarf RP: € 360

CONCLUSION From our 700 000€ budget, the company managed to spend 698 925 € . The company spent 1 075 € 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 € 3 178 272 as we only generated € 2 574 546 ,, a variance of -23%.

This indicates that we generated 23% less sales than our 75% sell through sales target. The company managed to have an average overall selltrough of 62%. We generated a profit of € 1 611 037, while last seasons profit was 981 160 €.

Out of above mentioned generated sales the Xmas line generated €407 469, and missed it’s target with 17%. An average sell through of 62% was obtained.

Main focus of the brand in the future should be the Morg product line, as they performed better in all the categories. Secondly our MORG bags and accessories performed the best with a sell through of almost 70%, this could have more potential in the future.