LEANNA
CONNER
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Table of Contents
Visual Merchandising Displays Project...........................................................................8
Forecasting Project.........................................................................................................................15
Trend Analysis Proje ct..............................................................................................................27
Buying Plan Project & 6 Month Financial Plan....................................................,,.31
Global Sourcing Project...............................................................................................................38
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Visual Merchandising
Displays Project
Select window displays created by retailers that provide examples of the visual merchandising
elements discussed in class. Four different topics will be covered: color schemes, elements of
design and composition, types of displays and display settings, different display window
constructions, and alternatives to mannequins.
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Analogous Window Display
Bergdorf Goodman's 2012 Fashion Week
window, in New York City, features an
analogous color scheme. The radiant
and bright pink, orange, red, and yellow-orange highlight and enhances the
beauty of the dress designs.
The combination of these colors give a bright
and glamorous effect to the rough and dark
backdrop. The dark shadows create an air
of mystery, drawing the customer inside the
store.
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Neautral Window Display
Ralph Lauren's store in New York City displays a
neautral color scheme with soft colors such as ivory, white,
taupe, beige, and brown. These hues are all without color and have a light value with low intensity. A neautral
color scheme creates a feeling of calmness, while casting
a neautral feel from the earthy tones. This color scheme
creates a peaceful flow throughout the store.
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Dominance Window Display
With the help of the arrows, Louis
Vuitton, artistically draws the eye first
to the center and focal point of the
window display, the jeweled tone
purple pumps. As the arrows
condense into a bullseye around the
heels, they also change colors along
the color wheel from yellow to purple.
The color change and the direction of
the arrows draws the eye to the center where the heels are being displayed. Louis Vuitton’s display is fun,
creaive, and effectively displays the
domanince of the merchandise.
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Line Rhythm Window Display
Line rhythm is perfectly achieved in
Louis Vuitton’s display. The customer’s
eye follows the track from the bottom
left, up through the upside-down loop,
to the finish at the bottom right.
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By placing the merchandise on the
track, the customer not only follows
the path, but also views the
merchandise at the same time. The
use of the track holds the viewer’s
eye until the entire display is seen.
Related Merchandise Promotion Window Display
Prada’s 2013 winter window features a related
merchandise display. The mannequin is
surrounded by four separate bags and two
pairs of shoes. Any of these pieces can be mix
and matched to be paired with the mannequin’s
outfit in order to create a fully complete look.
By displaying products of the same
material you give the customer an option to
tailor their own look to their taste all while
staying in fashionable style.
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Flying Technique Window Display
Lanvin beautifully and artistically
uses the flying technique to
emphasize the bird theme of this
display. The merchandise featured
in the display resembles a parrot’s
feathers with their bright colors, and
the loose fit and flow of the dress
create an airy feeling.
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By not using a typical mannequin
and instead flying the dress with the
bird wings, Lanvin uniquly portrays a
free and flowing feeling to his
customers.
Forecasting
Project
Lululemon Company
Background:
Lululemon’s founder, Chip Wilson, sought a better alternative
to
cotton for athletic-wear. He
tested out varying fibers on
yoga
instructors and found successful
substitutes. The first Lululemon
store was founded in 1998 in
Vancouver. It shared its space
with a yoga studio and took off
from there. Now
Lululemon can be found in
countries all over the world
Lululemon Target Market:
- Urban dwellers
- Upper-middle class status
- Women, ages 20s-40s
- All ethnicities & marital statuses
- Active lifestyle
- Sporty and health-conscious
- Brand conscious
- Comfort seekers
Lululemon in the News:
Faulty, see through, Luon
fabric was approved. 17%
of the bottoms that were
created were flawed.
Lululemon recalled all
bottoms and resold them
after adding more
coverage. This mistake cost
Lululemon $67 million in
revenue. The company now
uses thicker Luon,
“Full-On Luon”
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Project Info:
I chose one existing apparel company
(targeting American or global markets) as
a client and provide forecasting information to support new product development/
marketing strategies for Fall/Winter 2015.
I conduct initial research to analyze the
characteristics of the target market,
company brand image, positioning of the
company, and current issues/problems of
the company (e.g., lack of understanding of
changing characteristics of the target
market, wrong products or styles for the
target market, a lack of differentiation from
the competitors, etc.). Based upon my company analysis, I proposed trends, colors,
fabrics, and styles that best fit for the client.
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Fall/Winter 2015 Theme:
“Inner Amity”
This theme reaches the minimalist consumer who thrives in a cocoon
atmosphere, both in their home and by way of dress. Neutral and
muted colors keep designs feeling calm and comforting. Subtle detailing
and lined silhouettes add a chic and modern air to the designs.
Comfortable and thick fabrics allow the body to feel relaxed and warm.
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Theme Board
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Color Board
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Fabric Board
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Style Board
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Fall/winter 2015 Theme:
“Sleek Transient”
This theme reaches the urban resident
who lives an active lifestyle. It is based
off of the megatrend, idiosyncratic. This
megatrend presents a new generation
of multi-functional fabrics in active wear
that offer added comfort and function
to existing favorites through embedded
technology and intelligent fabrics.
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Monochromatic hues dominate
her wardrobe, but energetic accents bring bold life to it. Performance fabrics are utilitarian and
fluid, as she’s constantly moving,
both for her routine and her
wellbeing.
Theme Board
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Color Board
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Fabric Board
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Style Board
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Trend Analysis
Project
Execute secondary and primary research of a garment or ensemble from the past and to compose and revise an illustrated paper presenting that research. Provide an overview of the time
period and fashion of the times in whcih the garment was worn. Explain how the garment relates
to fashion magazines and newspapers of the time., include selected pictures to illustrate connections or differences in styling. Summarize how your garment fits into the bigger picture of fashion trends of its time.
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Jennifer Duke, a petitie 20-year-old college student poses with her boyfriend at
his senior “Ring Dance” in April of 1980 at Texas A&M University.
The strapless, sweetheart necklie and empire wasit, floor-length dress with
matching bolero jacket, was sewn from a pattern by Jennifer’s grandmother.
Was this formal dress in current, style, ahead of its time, or behind the times in
1980?
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The 1980s marked a time of transition into the “technology-driven
world we know today”
(Farell-Beck). The economic
hardships from the 1970s carried
over into the beginning of the
period and things gravely
worsened from 1981 to 1983;
however, once the economy turned
around, many people were
better off than before (Farell-Beck
& Parsons). As a result of this
turnaround, consumption was on
the rise for Americans, and so was
the attempt for a higher standard
of living. The social life of the
period was that of transformation
due to significant demographic
shifts, and a creation of a
billionaire class. As baby-boomers
began to age, women took a
superwomen approach to life“they could work, have families,
and maintain a home, juggling it al
at one time” (Farell-Beck & Parsons). Marketers focused on mostly
the professional women and the
“yuppies” who were interested in
the new and improved technology
of the times.
These social shifts and
postmodern trends reflected
in the fashhion of the times
through a sense of lavishness
and glamour. Now, more than
ever before, women had the
freedom to wear whatever they
pleased. While American
designers, like Calvin Klein and
Ralph Lauren, were influential
still, the real lux and
extravagance of the time came
from the French designers.
Their glamourous and elaborate
designs could be seen in fashion
magazines, such as Harper’s
Bazaar and Vogue. No single
silhouette or hem length
dominated the decade, and
often silhouettes opposed each
other, like the broad square
shoulders and more body
conscious fits.
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“The 1980s fashion press noted a
dichotomy in women’s clothng, with
conservative, tailored clothing for
working hours and glamorous,
feminine, and sexy clothing for leisre
time.” -Totora & Eubank
In the 1970s, the “tubular silhouette
predominated,” and the early 1970s
evening dresses resembled daytime
dresses with “soft, clingy jersy gowns”
minus the longer length found in
eveningwear. Formal dresses from
the late 1970s were slinky, tubular
and straight.
Pantone cited the 1980s colors as “vibrant and
saturated, reflecting prosperous times and an
upbeat mood.” With the economy picking up,
bright colors and jeweled tones were
taking over from the darker muted colors of
the 1970s.
Although the dress was worn in early 1980, I believe that her
formal dress had more of the minimalist and simple style feel
as seen in the late 1970s, as compared to the extravagant and
glamorous 1980s.
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Business & Buying
Plan Project
6-- Month Financial Plan
Business Plan: The objective of this part of the project is to create a business plan for a selected retail
company/department for the Spring/Summer 2016 (February 2016 – July 2016). The
executive summary of your business plan should summarize and emphasize the key elements and
features of the business plan such as the company/department objectives and performance goals
over time, in order to help top decision makers at a firm grasp key elements and features of the
report with a quick look. Include a company/department analysis, a retail strategy analysis, finanicial
goals, and a suggested buying plan.
Buying Plan: The objective of this part of the project is to develop a merchandise buying plan for the
Spring/Summer 2016 (February 2016 – July 2016) season for the retail company/department for
which your project group developed the business plan. Form two merchandising teams of two
students each within your project group. Each merchandising team determines a merchandise
classification for which they want to develop a buying plan. Include a merchandise classification
summary, market research includng competitor evaluations and industry trends, a merchandise plan
including 6-month budget and pricing plans, and an assortment plan for February 2016.
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Dillard’s is an upscale department store chain with 280 locations throughout the Southwestern and
Southeastern United States. Dillard’s caters to middle and upper-middle income women and is popular
with this demographic due to our ability to carry both exclusive store brands and
national labels in a wide range of price points. Dillard’s women’s clothing and accessories
comprise over 35% of the company’s annual sales (Hoover’s, 2015).
Dillard’s women’s formal dress department consists of both floor length and cocktail length gowns, with
sleeved and sleeveless options. The price points range from $47 to over $1,200 per dress, depending
on the designer, brand, and materials. We take pride in our various customer service efforts, including
the Dillard’s credit card, well-trained and friendly sales associates, alternations, gift-wrapping,
shopping guides with the new and hottest trends, and even personal shoppers. We communicate to our
loyal and future customers through means of advertising, sales promotions, an inviting store atmosphere
with visuals, personal selling, through our website and through
promotional emails.
Since formal dresses do not have as quick of a turnover as other women’s apparel due to their price
point, we hope to have a turnover of 1.6 for the Spring/Summer 2016 season, with a gross margin around 38%, and GMROI of 125%.
Dillard’s brand slogan is “Style of Your Life”. Our business is structured around this slogan by
providing high quality merchandise of classic and contemporary styles to cater to a variety of
demographic segments. In more recent years, we have restructured our brand image to shift more
upmarket to differentiate from others by carrying unique, fashionable, and classic brands of both
private and name brand labels. Dillard’s has been moving away from the basic department store
merchandising of endless merchandise racks to more of a boutique setting for each
department. Changing the shopping environment for our customers, as well as adding more
on-trend pieces, provides the experience and style of merchandise they desire.
Market Segments to Serve:
Dillard’s geographic markets are
primarily in the Southeastern and
Southwest U.S. Our biggest markets
that we serve are Texas and Florida,
which account for about one third of
our total stores (Hoovers, 2015). By
realizing our customer demographics
we are better able to target and buy
merchandise for our customers.
Dillard’s caters mostly to
middle- and upper-middle-income
women. (Hoovers, 2015). Our
customers are looking for formal
dresses above Macy’s and Belk’s
products but below high-end chains
such as Nordstrom.
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Typical Customer & Buying Motivations:
Our typical Dillard’s customer wishes for
something greater than basic and simple
transactional retailing; she’s looking for a
loyal relationship defined by exceptional customer
service and a unique and well-selected
merchandise selection from which to shop.
She comes to our stores to feel good about
herself and her purchases. Our customers return
to Dillard’s knowing what to anticipate with every
visit (MarketLine, 2014). According to the business
director of women’s formal dresses at the
Dillard’s store in the La Cantera Mall in San
Antonio, Texas, shoppers during the spring
season are typically looking for a dress to wear
as a wedding guest or a prom dress. She says her
customers’ range in a household income from
30-60 thousand dollars.
Women’s Cocktail Dresses
Sleeved
Cap Sleeve
3/4 Sleeve
Sleeveless
Long
Sleeve
Spaghetti
Strap
Halter
Strapless
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Market Research
Both Belk and Macy’s price points are slightly below Dillard’s price points. This is especially true
with the competitor’s markdowns—most merchandise is marked down both in store and
online, so that prices are much lower than the original price points. Belk and Macy’s sell many
of the same lines, and neither store sells a private-label brand cocktail dress. Dillard’s already
does, but can further fill the gap in the market for private-label cocktail dresses exclusive to Dillard’s. Compared to competitors, Dillard’s offers a wider variety of both private and
name brand choices like Gianni Bini and Vince Camuto that contribute to customer loyalty
in cocktail dresses. Furthermore, there is a space in the market for strapless and spaghetti (thin)
strap cocktail dresses, as well as additionally on-trend items such as the two-piece cocktail
sets and bohemian styles that Dillard’s could fill in Spring 2016.
Competitor #1: Macy’s, Inc.
Location: 1790 Galleria Blvd., Cool Springs Galleria, Franklin, TN 37067
Macy’s and Dillard’s share similar retail mix
strategies. The stores and departments are
organized and merchandised into the same
categories, and specifically the women’s formal
dress department carries many similar styles and
brands as Dillard’s. Furthermore, like Dillard’s,
Macy’s has multiple retail channels, including
storefront and online, and uses advertising
through print to drive traffic.
Dillard’s varies from Macy’s most evidently in
promotional advertising and spending.
Dillard’s maintains value pricing, unlike Macy’s,
which uses heavy promotional markdowns
and advertising to drive sales, due to its national
size. Dillard’s price point is slightly higher than
Macy’s Surprisingly, Dillard’s variety of cocktail
dresses is more than double Macy’s variety with
slightly higher price points. Macy’s does not carry
any private-label brands in formal or cocktail
dresses, while Dillard’s offers many. Macy’s brand
selection primarily targeted an older customer
with more classic styles, and the displays mainly
promoted Lauren by Ralph Lauren. Dillard’s had
multiple featured designer presentations.
Lastly, Dillard’s customer service offered by
sales associates was much more involved than
Macy’s employees.
Competitor #2: Belk
Location: 1800 Galleria Blvd, Suite 5000, Cool Springs Galleria, Franklin, TN 37067
Belk is similar to Dillard’s in company size and
location, with a smaller amount of stores. The
stores are merchandised in similar ways with
garment racks and mannequins as visual
merchandising.
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Belk differs from Dillard’s in communication
mix and promotional efforts. Belk spends
more heavily on advertisement of sales through
print, television commercials, and e-commerce,
Dillard’s maintains everyday value. Dillard’s
price point is slightly above Belk’s. In the Belk
women’s dresses, nearly every garment rack had
sale advertisements on top. Belk had the formal
dress department organized by dress type, unlike
Dillard’s whose day, cocktail, and formal gowns
were all mixed together. Belk does not offer any
private-label cocktail dresses, like Dillard’s, and
has only about half the selection of formal dresses
that Dillard’s has to offer in-store. Dillard’s wider
selection offered trendier styles, as well
as more well-known designer names like Vince
Camuto and Michael Kors.
Spring 2016 Industry
Trends:
Nina Ricci
From left to right: Marques’Almeida, J.W. Anderson, Luisa Beccaria, Lanvin
Bohemian looks incorporating romantic white lace, and ruffles are predicted to be
big in upcoming dress trends coming off the runway for our younger customers, with
more subtle elements of these runway trends carrying over to our older and more
conservative customer (Bickham, 2014). Lace, pastels, floral prints, and whites will be
big in Spring 2016, just like they are every spring season. With our older target
customer, hem lines will not be as short, but you can expect to see the forgiving
waistlines with feminine updates in the dress department (Soo Hoo, 2014).
Spring 2016 Sales
Potentials:
With the economy becoming more stable, the
Sales have the potential to be higher in the
apparel industry is expected to, and already
spring seasons as a result of many holidays and
events during this time, such as Easter, Mother’s on its way, to improving in performance within
the coming years. The apparel industry, as a
Day, Prom, graduations, and the spring/summer
whole, is expected to have an overall net worth
wedding season. These events all influence
potential sales during these six months. Hopefully of $472.4 billion in 2018 and a 27.3% increase
in sales from 2013 to 2018 (MarketLine, 2014).
these formal wear fashion trends and seasonal
This is great news for growth in women’s apsales will boost Dillard’s dress sales to their
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parel
and formal dresses, which will hopefully
predicted expectations.
result in increased sales.
Women’s Cocktail Dresses Buying Plan:
Spring 2016 Seasonal Sales: $3,010,000
Reductions (% of Sales): 41%
Gross Margin: 42%
Inventory Turnover Plan: 1.6
GMROI: 1.16
Average Inventory (R) Planned: $1,881,250
Average Inventory (C) Planned: $1,091,125
Actual Average Inventory (R): $1,738,920
Actual Inventory Turnover: 1.73
Initial MU: 58.87%
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Six-Month Plan
February
March
April
May
June
July
TOTAL
14.0%
19.0%
17.0%
18.5%
17.5%
14.0%
100.00%
$421,400
$571,900
$511,700
$556,850
$526,750
$421,400
$3,010,000
17.1%
16.0%
15.1%
15.1%
18.7%
18.0%
100.00%
4. Reductions ($) by Month & Total
$211,031
$197,456
$186,349
$186,349
$230,777
$222,138
$1,234,100.00
5. BOM Stock-Sales Ratio
3.70
3.20
3.45
3.30
3.40
3.70
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6. BOM Stock
$1,559,180
$1,830,080
$1,765,365
$1,837,605
$1,790,950
$1,559,180
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7. EOM Stock
8. Purchases R - Month y A ition
to Stock
9. Purchases C - Month y A ition
to Stock
$1,830,080
$1,765,365
$1,837,605
$1,790,950
$1,559,180
$1,830,080
-
$903,331
$704,641
$770,289
$696,544
$525,757
$914,438
$4,515,000
$371,583
$289,852
$316,857
$286,522
$216,269
$376,152
$1,857,234
1. Net Sa es Distri ution % y
l
b
( )b
Month
2. Net Sales ($) by Month
3. Re uctions Distri ution % y
Month
d
b
( )
( )
( )b
l
dd
l
dd
March and May are projected to have the highest sales distributions because based upon market
research from the FORMOR project; in 1998 women’s clothing stores had the highest sales distributions in March and May, followed closely behind in April and June, and with February and July having the lowest percentage (National Retail Federation, 1998). March, April, May, and June have higher
planned sales because of spring events that women will need a cocktail length dress for, such as
Easter, weddings, and graduations.
Reductions for women’s cocktail dresses are predicted to be 41%, with 36% of that being markdowns. Department store markdowns in 1997 were 20.2% of all sales (National Retail Federation,
1998). Reductions have grown over the years, especially over the past 10 years. According to the
Business Director of Women’s Dresses at Dillard’s of La Cantera in San Antonio, Texas, her markdown percentage is usually in the upper 20s to mid 30s range. We set ours at 36% in order to get
our reductions to a more reasonable overall percentage for our department. Reduction dollars for
the 6 months are predicted to be $1,234,100. June is expected to have the highest markdowns at
18.7%, which totals $230,777 of that month’s sales. July is also expected to have high markdowns of
18%. These two month have high markdown percentages due to end of summer season sales and
trying to get rid of our more summer and lightweight dresses to start making room for more fall
styles coming in. February also has high markdowns at 17.1% of its month sales due to the end of the
winter and holiday season.
Based upon the FORMOR data from 1997, department stores had an average GM% of 35.91%. We
adjusted this percentage due to inflation and change over the years to reach our women’s cocktail
dress GM% of 42%. Women’s cocktail dress’s is projected to have a gross margin return on investment of 1.16. This numbers means that our department is expected to return on its inventory 1.16
times. A GMROI ratio higher than one shows that our department is selling its inventory for more
than it costs us to obtain it.
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Global Sourcing Project
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Project Scenario:
Assume that you are international buyers
working for a retail firm based in the US. You
are involved in developing a new
product line for next seasons.
Your company is interested in expanding its
merchandise mix with international
outsourcing. Your buying team is
responsible for conducting international
market research and proposing an
outsourcing plan for the firm.
Outsorucing Stella & Dot’s Malta Bib
Statement Necklace (currently sold
for $118 USD
Why Outsource?
• Outsourcing our labor and materials will
produce lower costs
• We are highly involved in philanthropic
efforts
• We are hoping to achieve specialized
labor by working with the labor force
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Outsourcing labor to Mexico
•
•
•
•
•
•
Labor Availability:
Total Population: 122 million
50 million employed
Unemployment rate: 9.4%
Unskilled labor
Ages: 20-49
Labor cost: $4.80
Mexico’s Economic Health:
• Mexico’s GDP was worth
1260.91 billion USD
in 2013, which was an all-time
high. Its GDP
value represents 2.03% of the
world economy.
• Inflation rate: 3.14%.
• Unemployment rate: 4.7%.
Distance:
• Sharing borders and
having sea access on
both sides creates easy
access to many
forms of shipping
• Ship by air, sea, or
ground
Mexico is the United States’ 2nd largest export market & 3rd largest
trading partner. Under NAFTA we recieve free trade
Mexico’s proximate distance, stable condition,minimal risk and large labor
force, among other reasons, makes it promising for this new business
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venture.
$1 USD = 15.37 Mexican Peso *as of 4/26/2015
Balance of Trade:
● Mexico´s main trading partner is the United States
○ 80% of total exports and 51% of imports
● US runs a trade deficit with Mexico
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Vendor Selection Criteria
1. Identify potential vendors using the US Chamber of Commerce, trade magazines,
and International Procurement Office
2. Look for companies whose values align with our Code of Conducts and make
jewelry
3. Perform site visits and vendor evaluation of finalists:
• Top Five:
• level of competency
• level of commitment
• reputation and references
• relevant experience
• compatibility with existing infrastructure
4. We will select one vendor whose company’s infrastructure and company culture
aligns with ours, and who we think will create the best product for us at a fair price.
5. CIF
and a
terms covered by the vendor along with their nvoices and export licenses,
letter of credit payment style.
CIF:
• Negotiate for Cost, Insurance, and Freight terms
• Mexican vendor will cover all costs until the shipment lands in the U.S.
Letter of Credit:
• Complete protection to the supplier and shipment of the goods is
guaranteed to us
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LEANNA
CONNER
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