Tri-part Business Report

Page 1

Business Report

o N The Eyewear Boutique Boutique

Tiffany & Co. Store Brand

1 Saks Fifth Avenue Department Store


Table of Contents


01

The Eyewear Boutique p. 07 - p. 18

02

Tiffany & Co p. 23 - p. 34

03

Saks Fifth Avenue p. 39 - p. 50


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The Eyewear Boutique


Boutique


History

The Eyewear Boutique has a unique business philosophy. The company’s caring service, and impeccable taste for style allows for its brick and mortar to be for a complete “eye opener”. They’re vision is to sell experiences, not eyewear, and have a mission of making people see better, look better, and feel better. The Eyewear Boutique was founded by Werner Fourie. Fourie graduated as an optometrist from the Univeristy of the Free State in two thousand eight, after which he was immediaely offered a full time employment by Dirk Kotze in George.1 In the year two thousand nine, Fourie opened his own eyewear boutique under the name “Werner

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07

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Fourie Optometrists”. Several months after was the beginning of “The Sunglass Shop”. In two thousand ten the company had made shifts in their business plan, and remodeled the company’s structure. Through research and store sales, they realized a need for a more exclusive and fashion oriented shopping experience which led to the exclusive trademark done for South Africa. Two thousand eleven proved to be the year of charity. The company registered the Non Profit Organization “Project Cat-Eye”, with the motto of “helping people seeing better”.2 Project Cat-Eye was established to give back to the community, including giving free

2011

eye tests and spectacles to those in need. As the business grew and continued to succeed The Eyewear Boutique had expanded to Johannesburg, and in two thousand thirteen, acquired an establishment from PG Optics. This resulted in the very first “Eyewear Boutique” in Gauteng. Furthermore in two thousand fourteen, the George practice was sold to Eyeland and the second Eyewear boutique was opened in Meyersdal, Johannesburg. The Eyewear Boutique has become an eyewear destination serving the fashion conscius of Gauteng.

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Brand as a Person

Brand as a Product Stylish Chic Creative

Sporty Youthful Professional

Project Cat-Eye Hand picked Frames

Brand as a Symbol

09

Brand as an Organization

“Caffeinated Optometry”


B r a I n d d e n t i t y

The Eyewear Boutique is identifiable with a fashion conscious, stylish, and creative personality. its brand is built upon bringing beauty to the world through vision. The brand's product assortment consist of trendy frames from designers around the world. It offers an aesthetic range of sporty, elegant, sophisticated, and classy. As a symbol, the brand is defined by a pink horn rimmed frame glasses, with detailed embellishments surrounding the words "The Eyewear Boutique". As an organization its brand is consistent with three main cultural ideas. "We love coffee", "project Cat-Eye", and Hand selected frames by Fourie to fit the companies personality and values. The Caffeinated Optometry embodies freshly brewed coffee everyday within the boutique, offering customers a warm cup of coffee while they shop the finely selected range of frames. Project Cat-Eye is its charitable non profit organization designed to give glasses to those in need.

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Social Media Audit

The Eyewear Boutique currently solely operates via one social media platform. Its twitter reaches two hundred seventy nine followers, with seven hundred sixty tweets.

279 Followers

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The company's social media presence has been limited on the outreach of consumers due to its minimal selection of platform usage. I feel the company can exand in this way in reaching more customers through the use of more popular, and fastly growing social media platforms


Strengths Fashion Forward Aesthetic Maturing Brand

Opportunities Company expansion through new boutiques in different locations

Weaknesses

S W O TA n a l y s i s

Low Social Media Presence Low Brand Awareness

Threats Higher end brands with more brand awareness Increase competition

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Customer Ashley Cho Demographic Information Gender: Female Age: 30 Occupation: Law Associate Income: $100,000 annually Education: Keele University

Favourite Frames Brand Miu Miu Etnia Barcelona Jimmy Choo

Leisure Time Likes: Sunday brunch, travelling Favourite Brands: DVF, DKNY

Social Media Activity

Enjoys: Reading criminal law novels

Instagram: Active every 3 hours Facebook: Active every 2 hours Twitter: Active hourly


Profile Social Media Activity Instagram: Active hourly

Leisure Time

Facebook: Active every 2 hours Likes: Travelling, Daily workouts Favourite Brands: Public School NY, Prada

Twitter: Active hourly

Enjoys: Watching standup comedy

Favourite Frames Brand Prada Bvlgari Mango

Demographic Information Gender: Female Age: 25 Occupation: Lifestyle Editor at Vogue Income: $40,000 annually Education: SCAD

Trina Jei

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Merchandise Assortment

The Eyewear Boutiques are known for their wide range of select frames including Prada, Miu Miu, Jimmy Choo, Ray Ban, Vogue, and more. The Eyewear Boutique is home for more than fifteen designer brands, including its license with Oakley's. Its merchandise assortment of frames include different shapes, styles, and reflective technology. Its most popular sellers are RayBan and Oakley. Its product assortment include polarized lenses that block horizontal light rays, and reduces glare of flat surfaces such as roads and water. The Eyewear boutique also utilizes a product that allows the consumer to test their eyes through an HD 3D testing system.

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Oakleys

Sunglasses

Reading Glasses

Polarized Lenses

$80 - $200

$200 - $300

$70 - $200

$80 - $140

Pricing Strategy


Visual Merchandising

The Eyewear Boutique has a coffee bar stationed within each location. Serving customers fresh, hot coffee, as they shop through the store. The coffee shop adds a home sweet home feel to its rustic, vintage shelves stocked with designer named frames. Dark painted walls, and plantation adds to the vintage showroom feel that is the Eyewear Boutique. Its key products are set on center shelves in custom made frame holders that suit its exclusive frames.

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Financials

The Eyewear Boutique has shown constant progression through recent publications, and advertisements through celebrity shots. The company is constantly finding ways to give back to the community, and in doing so it is my opinion that it is assisting the brand in boosting their exposure and attracting more attention to the company.

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In two thousand ten, the company had undergone a rebranding, which revealed to me that sales during this year may have reached close to its lowest, sparking the company to make adjustments in their business plan. Following rebranding and no attractions in frames the company benefited in store expansions, and opened new establishements in Guateng.

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Tiffany & Co.


Store Brand


History

In eighteen thirty seven, two young entrepreneurs named Charles Lewis Tiffany and John Young established the start of a very prestigious brand. Tiffany’s was opened as a small “fancy goods” store located in New York City, on 259th Broadway street. Both men had a mutual goal and desire, and worked together to build a brand on simplicity, harmony, and clarity. In eighteen seventy eight, Charles Lewis Tiffany made a purchase of one of the world's largest and finest yellow diamond from a diamond mine located in South Africa. The Diamond being so astonishing, was then named The Tiffany Diamond, and built the legacy of Tiffany's craftmanship. Charles Lewis Tiffany then

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received the title of "Diamond King" after purchasing the crown jewels belonging to France and Spain. In nineteen o two, Louis Tiffany, the son of Charles Tiffany, becomes the first official design director of Tiffany's. This leads to many changes and establishments over the years, one being the official flagship store of Tiffany & Co. located on fifty seventh street and fifth avenue. The flagship store was opened in nineteen forty in New York City, and feautures an art deco influence, with granite and limestone counter tops. In the year nineteen sixty one the world famous movie "Breakfast at Tiffany's" is released and becomes one of the most popular movies of all time.

1940

Breakfast at Tiffany's single handedly puts Tffany & Co. on the map as Audrey Hepburn is seen staring into at the fine jewelry through the window. In two thousand twelve, Tiffany & Co. celebrates one hundred seventy five years of legendary style. Tiffany & Co. is committed to obtaining precious metals and gemstones, and crafting jewelry in ways that are socially and environmentally responsible.3

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2012

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“Timeless, Endless, Illuminating, Powerful�

Brand as a Person

Brand as a Product

Mature Sophisticated

Luxury Exquisite

Illuminating Elegant

Brand as a Symbol

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Brand as an Organization

Timeless


B r a I n d d e n t i t y

Tiffany & Co is an exquisite company established during the year eighteen thirty seven. According to the company's annual report the brand as a person is a modern, sophisticated, and mature individual who appreciates the finer things in life. The individual enjoys treating themself to one or two things that are timeless and elegant. The brand as a product is luxurious, elegant, and exquisite. With each product being made with precision, and handled with care, the brand creates an environment where each product is treated with the utmost quality. The brand as a symbol can be identified with a classic blue box. irreplaceable by any other brand, Tiffany & Co. has a legendary brand identity through the world's favourite blue box. As an organization, the brand is timeless, with a long line of history associated with fine jewelry. Illuminating and powerful, as the tiffiany diamond, and cut are specific to the brand and its heritage.

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Social Media Audit 3M Followers Tiffany & Co has an omni-channel strategy that stretches across all major social media platforms. Their target consumer have evolved to latch on to the many social media forums ranging from Instagram to snapchat. Their top three platforms are visibly Facebook, Instagram and Twitter. Tiffany & Co. has successfully created a presence on social media, and has produced entirely new outlets to reach their consumer aside from legendary catalogues, and brick and mortar's.

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5M Followers 8M Followers 200k Followers


Strengths Strong Brand Identity Brand Equity Wide Product Categories Industry Leader in Sustainability Mining practices

Opportunities Opportunity to merg didgital with retail space Increase in younger marriages Growth in the Asian luxury market Product Line Extensions

Weaknesses

S W O TA n a l y s i s

Sales are impacted by cautious and emotional spending of jewelry Consumer spending/purchases fueled by emotions

Threats Counterfeit/Duplicate goods of Tiffany products Increase competition Increase in Labor wages.

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Customer Jenny Wales Demographic Information Gender: Female Age: 32 Occupation: Nurse Income: $60,000 annually Education: NYU

Favourite Jewelry Pieces Necklace bracelets

Leisure Time Likes: Travelling Favourite Brands: Chloe

Social Media Activity

Enjoys: Game nights with friends

Instagram: Active every 5 hours Facebook: Active hourly Twitter: Active hourly


Profile Social Media Activity Instagram: Active hourly

Leisure Time

Facebook: Active every 2 hours Likes: Yoga, Swimming

Twitter: Active hourly

Favourite Brands: Burberry, Coach, Louis Vuitton Enjoys: Movie Nights with the family

Favourite Jewelry Pieces Necklace Ring Watch

Demographic Information Gender: Female Age: 29 Occupation: Entrepreneur Income: $70,000 annually Education: Syracuse, NY

Chara Chi

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Merchandise Assortment

Tiffany & Co. has a wide product assortment in its brick and mortar establishment. Its product categories include fine jewelry, sterling silver goods, china, watches, leather goods, eyerwear, and more. The Tiffany & Co. company also has a few licensed agreements for eyewear and design materials through third party licensee groups.3

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Engagement

$10k - $50k

Jewelry

$200 - $1500

Accessories

$200 - $500

Watches

$3k - $8k

Wedding Gifts

$20 - $500

Pricing Strategy


Visual Merchandising

Tiffany & Co. flagship store is placed in a modern, seven story building.4 The facade on the front of the building is made out of granite, limestone, and marble and anchors the world famous Atlas clock. The nine feet in height figure is known to be the mythological figure shouldering a clock that is approximately four feet in diameter. A key fact is that this same statue original stood foot above the first Tiffany's store on Broadway. As their flagship store is one of a masterpiece, the main floor served as a set for the well known film Breakfast at Tiffany's, as well as films such as Sleepless in Seattle, and Sweet Home Alabama. Their products are designed within a space that will enhance both its beauty and luster as the design of the building was fixed with luxurious furnishings and hand-painted porcelain vases to match the timeless and exquisite jewelry.

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Financials According to the company's annual report for the fiscal year end twenty fifteen, Tiffany & Co. has reported an annual revenue of four thousand two hundred forty nine point nine hundred thirteen million dollars. This amount is seen to be a five point four percent increase over the fiscal year twenty fourteen. The company reported in the first quarter for the year twenty sixteen report at a worldwide net sale decline of three percent. Whilst sales also reported to be negatively affected by the rise in strength of the United States dollar and decline in tourist spending in different markets. This references back to the company's weakness when it comes to lower consumer spending, and the purchasing power of consumers being highly affected by the change in emotional spending on lavish goods.

Research shows that although their were declines in sales in the opening year of twenty sixteen, the company is consistently thinking of ways to grow and expand the Tiffany & Co. market. Tiffany & Co.'s marketing team is constantly seeking openings for emerging markets that can reap potential growth for a Tiffany's store. Key factors that play a mojr rule when seeking an ideal market for a new Tiffany & Co. store are the demographics to be served, consumer demand, proximity of competitors, and location of existing Tiffany & Co. stores.

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Saks Fifth Ave. Department Store


History

Saks Fifh Avenue was founded by Horace Saks and Bernard Gimbel during the early nineteen hundreds. The two opened an independent retail store on the streets of New york located on 34th street at Herald square. Saks and Gimbel's dream was to build a unique specialty store that would become known for a fashionable, and gracious living. The official store opened in nineteen twenty four, on forty ninth and fiftyth street, thanks to the joint financials between the two families. Saks Fifth Avenue immediately became the first largest retail operator to be located in what was known as a primary residential district. In nineteen twenty six, Adam Gimbel became president of Saks Fifth Avenue,

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1926


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offering the finests quality of men and women's fashion, with a family of great customer service assistance. Saks became known for taste and elegance. under Adam's presidential reign, more than twenty new stores were opened, along with outlet stores in Franklin Mills and Pennsylvannia. In nineteen seventy three Saks was acquired by BATUS Industries, through its acquisition of Gimbel Bro's Inc. Following this acquisition Philip Miller was appointed chariman and chief Executive Officer. In nineteen ninety four Saks Fifth acquired four former I. Magnin stores in Beverly Hills, San Diego, and Phoenix. Their Beverl Hills location became the largest specialty store in Beverly Hills by the year nineteen

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ninety five. Nineteen ninety six was a major year for Saks Fifth Avenue. The company announced itself as a publicly traded company, and traded shares on the New York Stock Exchange under the symbol "SKS", up until the year nineteen ninety eight. Many mergers and acquisitions later, in two thousand thirteen Saks Fifth Avenue had fallen under the leadership of Hudson Bay and Lord & Taylor.

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Brand as a Product

Brand as a Person

Fashion Forward Trend Setter

Luxury Stylish Designer Label

Fashionable Lifestyle Major Leader within the industry

Brand as a Symbol

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Brand as an Organization

Tasteful and Elegant


B r a I n d d e n t i t y

Saks Fifth Avenue vision is to serve as a unique luxury store for fashionable living.4 The Saks Fifth identity is globally associated with luxury and style bleeding through each store's location. The Brand as a person is fashion forward and stays up to date with the latest trends. As a product the brand is focused on high quality, and luxurious status. The brand is committed to providing its customers with only the best quality its designers and labels have to offer. As a symbol the brand is recognized by italicized writing of its company's name Saks Fifth Avenue, and Saks off Fifth in regular san serif print. As an organization the brand, the company is a major leader in the industry and is keen to staying on top of new opportunities and outlets for thriving markets for new Saks Fifth Avenue stores.

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Social Media Audit 442k Followers Saks Fifth Avenue has an omnichannel strategy geared to reach its customer in every way possible. The company operates on all major social media platforms with a following base of over one hundred thousand on each platform. Its leading social media site is facebook, proving facebook to be a very influential platform for increasing customer service and brand awareness.

794k Followers 900k Followers 103.1k Followers


Strengths Strong Brand Identity Brand Equity Wide Product Categories Major known department store

Opportunities Opportunity to open Saks Fifth Extensions in other areas Product Line Extensions with new designers

Weaknesses

S W O TA n a l y s i s

Parent Company Financials impact the company

Threats Growth in competitors department stores

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Customer Tiffany Hao Demographic Information Gender: Female Age: 25 Occupation: Accountant Income: $65,000 annually Education: NYU

Favourite Style Piece Handbags Shoes

Leisure Time Likes: Jogs through the park Favourite Brands: Alice + Olivia, Balmain

Social Media Activity Instagram: Active hourly Facebook: Active hourly Twitter: Active hourly

Enjoys: Dinner dates, and girl's night out


Profile Social Media Activity Instagram: Active hourly

Leisure Time

Facebook: Active every 3 hours Likes: Soccer, Travelling,

Twitter: Active hourly

Favourite Brands: Armani, Gucci Enjoys: Hanging out with his boys, Watching the game

Favourite Style Piece Watch Fedora

Demographic Information Gender: Male Age: 29 Occupation: Entrepreneur Income: $70,000 annually Education: Imperial College

David Ling

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Merchandise Assortment

Saks Fifth Avenue carries a wide range of product ctegories. Its product categories include women's apparel, clothing for men and kidswear, home goods, beauty prodcts, jewelry and accessories, and shoes. Saks Fifth Avenue has the abilit to reach a borad target market through their wide range of products. The product category spans from really expensive item, to budget keepsakes, making it a valuable one stop shop for consumers looking for designer label products and cute home decor that is pocket friendly.

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Women's Apparel

$80 - $2k

Men Apparel

$100 - 2k

Kids

$50 - $500

Handbags

$50 - $2k

Jewelry/Accessories

$50 - $2k

Beauty

$50 - $500

Shoes

$200 - 2k

Pricing Strategy


Visual Merchandising

Saks Fifth Avenue association with luxury and style is carried throughout the aesthetic of its store front and interior. Saks Fifth Avenue ensures a high level of quality on each of its interior displays, making sure it remains true to the brands values and beliefs. Each designer showcase is organized to fit the style of the designer, however, remains within the barriers of the Saks Fifth Avenue style.

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Financials Being acquired by the Hudson Bay and Lord & Taylor company has merged many of Saks Fifth Avenue's structure and financial holdings. The company's sales are reflected on the Hudson Bay's annual report, most recently reflected upon fiscal year twenty fifteen. According to the annual report the company overall had seen a significant growth over the year, resulting in established districts in four seperate countries. The company is able to reap benefits through joint ventures, mergers, and acquisition, increasing the companies capital and financial structure.

Parent company Hudson Bay is constantly seeking ways to improve each channel of retail to provide the customer with the best available shopping experience.

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Works Cited Werner Fourie. "Project Cat-Eye." Our Charity. The Eyewear Boutique, 2011. Web. Werner Fourie. "The Eyewear Boutique." About Us. N.p., 2009. Web. Tiffany & Co. "About Tiffany & Co." Tiffany & Co. For The Press | . N.p., n.d. Web. 01 July 2016. Tiffany & Co. "About Tiffany & Co." Tiffany & Co. For The Press | . N.p., n.d. Web. 01 July 2016. Tiffany & Co. "Annual Report 2015." (n.d.): n. pag. Annual Report 2015. Tiffany & Co. Web. Saks Fifth Ave. "Saks Fifth Ave - About Us." About Us. N.p., n.d. Web. Hudson Bay and Lord & Taylor. Hudson Bay Annual Report 2015 (n.d.): n. pag. Hudson Bay Annual Report 2015. Web.

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