JMUCC 2011 - Birks 24 Hour Case - UBC

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JMUCC 2011 - Birks 24 Hour Case - UBC

  1. 1. BIRKS<br />A Breath of Fresh Air<br />Cappellacci | Ghosh | Herberts | Jang<br />
  2. 2. This is not a jewellery store<br />
  3. 3. A Clear Strategy and Plan for Execution<br />Strengthening the Birks Brand by <br />Enhancing Exposure Through Multiple Channels<br />Outcomes<br /><ul><li>Improved Brand Awareness
  4. 4. Attract more customers
  5. 5. Increased store and Social Media traffic</li></ul>Outcomes<br /><ul><li>Attract more customers
  6. 6. Increase transaction total
  7. 7. Greater customer retention</li></ul>Outcomes<br /><ul><li>Assessment of Current State
  8. 8. Evaluation of Options
  9. 9. Proposal Development</li></li></ul><li>Presentation Timeline<br />Determining Strategic Direction<br />Developing the Optimum Solution<br />Implementation and Impact<br />Clarification of Scope and objectives<br />Developing the pre-purchase experience to drive awareness<br />Financial Implications<br />Company Mission and Vision<br />Communicating Change<br />Enhancing the purchase experience to drive in store sales<br />Analysis of Current State<br />Mitigating Risk<br />Long Term Vision for Future Expansion in foreign Markets<br />High Level Decision<br />
  10. 10. Determining Strategic Direction<br />Developing the Optimum Solution<br />Implementation and Impact<br />Clarification of Scope and objectives<br />Company Mission and Vision<br />Analysis of Current State<br />High Level Decision<br />Determining Strategic Direction<br />Objectives:<br /><ul><li>Analysis of Customer, Industry and Company position
  11. 11. High level strategy decisions</li></li></ul><li>Clear Issues to Define Objectives<br />Our recommendation encompasses a multi-faceted and integrated <br />strategy to make Birks more relevant to Gen X and Y<br />
  12. 12. Birks Under the Microscope<br />Given the high brand value of Birks, how can Birks effectively handle <br />the current economic situation while improving it’s cash flow?<br />
  13. 13. Total Value of the Jewellery Industry in Canada: $1.7 billion<br />Jewellery industry is highly seasonal with a focus on Valentine’s Day and Christmas<br />A look at Ms. Birks:<br />In the last 5 years<br /><ul><li>Minimum 2 fine jewellery pieces valued at $1,500+</li></ul>In the last 10 years<br /><ul><li>Minimum 2 non-engagement items valued at $1,000+</li></ul>Birks is positioned as a luxury jewellery store <br />Market trends focus on the basics<br />Source: Kantar Media 2010<br />
  14. 14. Brand Perception is the Key Differentiator in the Competitive Canadian Jewellery Market<br />Tiffany & Company<br />Holt Renfrew<br />Birks<br />Luxury<br />Middle<br />Value<br />Peoples<br />Spence Diamonds<br />Perceived Quality<br />The Bay<br />Sears<br />Ben Moss Jewellers<br />Charm<br />Costco<br />Winners<br />Zellers<br />Walmart<br />Low<br />High<br />Main competitor<br />Price<br />Competitor<br />How can Birks position and differentiate itself to successfully compete?<br />Source: Kantar Media 2010<br />
  15. 15. The Generational Differences Between Consumers<br />Generation Y<br />1982-2002<br />Baby Boomers<br />1940-1059<br />Generation X<br />1960-1981<br /><ul><li>Least likely to change spending habits based on external factors
  16. 16. Will lead the world out of the global recession
  17. 17. Seek approval from others when making purchases
  18. 18. Online shoppers – research and purchase
  19. 19. Self indulge in product that make them feel youthful
  20. 20. Redefined aging, life is just beginning at age 60
  21. 21. Marriage is important
  22. 22. Career driven
  23. 23. Catalogue shoppers
  24. 24. Highly educated dual income families
  25. 25. Family oriented with a significant value on relationships
  26. 26. Rely heavily on personal recommendations
  27. 27. Demand healthy work-life balance
  28. 28. Diverse population</li></ul>How can Birks define and represent a consistent brand <br />given the differences between these three generations?<br />Source: Statistics Canada, Packaged Facts<br />
  29. 29. The Generational Differences Between Consumers<br />Generation Y<br />1982-2002<br />Baby Boomers<br />1940-1059<br />Generation X<br />1960-1981<br />Affluent Market<br /><ul><li>Some like to show off their wealth by purchasing brands that are perceived as luxury goods
  30. 30. Price is less of a factor in making purchase decisions
  31. 31. More likely to use credit cards for purchases – don’t see the immediate expenditure of money
  32. 32. Make up 20% of the population and contribute 50% of household income
  33. 33. Often concerned with being fashionable as they have the means to keep up with trends
  34. 34. Likely to keep up with technological trends – early adopters</li></ul>Provided that they there are many similarities among affluent people of <br />all generations, how can Birks capitalize on this lucrative market?<br />Source: Statistics Canada, Packaged Facts<br />
  35. 35. The Opportunities Available to Birks<br />Birks and Mayors<br />Competition<br />Very strong brand equity<br />$1.7B industry with high seasonality<br />Variance across the three generations<br />Differentiation is defined by the brand<br />Customer Preferences<br />Canadian Jewellery Industry<br />Reevaluate current product mix to align with all three generations<br />Engage a new brand spokesperson in addition to Heil and Rochette<br />Development of a promotional campaign to drive awareness<br />Redefine the in store experience to appeal to all three generations of consumers<br />Creation of products in collaboration with other luxury brands<br />Sponsorship of local artistic events<br />Capitalization on these three opportunities to drive sales<br />
  36. 36. Evaluating Alternatives to Enhance the Brand<br />
  37. 37. Evaluating Alternatives to Enhance the Brand<br />Capitalize on Birks’ promotional mix, in-store experience and sponsorship opportunities to create loyal customers and increase sales<br />
  38. 38. Determining Strategic Direction<br />Developing the Optimum Solution<br />Implementation and Impact<br />Developing the pre-purchase experience to drive awareness<br />Enhancing the purchase experience to drive in store sales<br />Long Term Vision for Future Expansion in foreign Markets<br />Developing the Optimum Solution<br />
  39. 39. Birks position is synonymous with luxury and reflects its proud roots of exceptional quality<br />The Birks experience is one of such exclusivity many Generation X and Y consumers may feel excluded from the brand<br />Strengthening the Birks Brand by Enhancing Exposure in Multiple Channels<br />A Well Marketed Brand Captures the Imagination<br />Our strategy encompassed a multi-faceted and integrated <br />strategy to make Birks more relevant to Gen X and Y<br />Source:1 to 1 media.com<br />
  40. 40. Touchpoints are the key to building a strong Brand<br />By focusing on enhancing specific touchpoints the brand can be promoted and position to better attract Gen X and Y without alienating current customers <br />Billing & customer service<br />Promotion<br />Product quality<br />Web Presence<br />Pre purchase experience<br />Post purchase experience<br />Brand promise<br />Earned Media<br />Product performance<br />Purchase experience<br />Point of Purchase display<br />Product delivery<br />Customer Service<br />Consumers that engage with 3 or more channels spend six times more than the average consumer<br />Touchpoints are becoming increasingly digital and are highly related to internet use<br />Enhancing pre-purchase and purchase experience experiences for target demographics is key to a strong brand<br />Source: NPR Consulting<br />
  41. 41. Determining Strategic Direction<br />Developing the Optimum Solution<br />Implementation and Impact<br />Developing the pre-purchase experience to drive awareness<br />Enhancing the purchase experience to drive in store sales<br />Long Term Vision for Future Expansion in foreign Markets<br />Developing the pre-purchase experience to drive awareness<br />Objectives:<br /><ul><li>Engage users with products to drive awareness
  42. 42. Create an emotional connection and purchase incentive
  43. 43. Drive awareness through brand association in key demographics
  44. 44. Increased awareness of the Birks Brand</li></li></ul><li>Strong social media engagement<br />Improving Pre Purchase Experience <br />Birks is proactively engaging consumers but has few impressions<br />Innovative print advertising<br />Simple mobile app<br />Four tactics to connect to Young Generations driving sales and awareness<br />Strategy<br />Outcome<br />
  45. 45. Comprehensive Mobile App<br />The Birks Jewellery Mobile app will provide a full updatable catalogue with connections to social media, pick up and appointment booking functions<br />Tactic Overview<br /><ul><li>Appeal to those who need more information
  46. 46. Affluent users use catalogues and mobile devices more than other consumers
  47. 47. Focus on a Wedding Ring builder
  48. 48. Applications for Blackberry and Apple</li></ul>Objectives<br /><ul><li>Increase product quality awareness
  49. 49. Appeal to growing mobile shoppers
  50. 50. Drive store foot traffic
  51. 51. Connect to consumers more comprehensively</li></li></ul><li>Birks Birthday Program<br />Birks Birthday will send registered clients a customized birthday <br />congratulations two weeks prior to the day with an offer for 10% their purchase <br />Tactic Overview<br /><ul><li>Registered users will receive an elegant card in the mail two weeks before their birthday
  52. 52. The card will offer a discount as well as an invitation for an appointment
  53. 53. Exclusive Birthday service when an appointment is booked</li></ul>Objectives<br /><ul><li>Creates emotional association to Birks
  54. 54. Ensures customer’s loyalty
  55. 55. Drives traffic to the store and customer connection
  56. 56. Drives sales without seasonality</li></li></ul><li>Sponsor Local Arts Openings<br />Create a sponsorship package for mid-size Arts Openings to drive awareness <br />Tactic Overview<br /><ul><li>Key Message: Timeless Artistic Design
  57. 57. Target mid-scale high end art, theatre and musical production Opening Parties
  58. 58. Provide branded flyers and banners for the event
  59. 59. Four Metro Regions: Vancouver, Calgary, Toronto, Montreal
  60. 60. 40 different events between $1000 - $3000 </li></ul>Objectives<br /><ul><li>Establish brand association with cultural events
  61. 61. Increase brand awareness and perception</li></li></ul><li>Use “This Is Not” Campaign more Effectively<br />Tactic Overview<br /><ul><li>Rework concept to appeal to younger demographic
  62. 62. Incorporate concepts of sustainability and social responsibility
  63. 63. Use mass promotion channels to build awareness
  64. 64. Leverage earned media through sponsorship and other events
  65. 65. Highly used channels by affluent customers</li></ul>Objectives<br /><ul><li>Increase brand awareness at key sales periods
  66. 66. Increase foot traffic and sales conversions
  67. 67. A broad geographic reach</li></li></ul><li>Promotional Costs within Budget<br />Specific parts of the plan can be implemented <br />based on budget or preference requirements<br />208,000$<br />Promotions: $48,000 Radio Ads<br /> $120,000 Magazine Ads<br /> $40,000 Social Media Advertising<br />Birks Birthdays: $30,000 Printing and Distribution<br />$30K<br />$ 428 000<br />$100,000<br />Arts Openings: $80,000 sponsorship cost<br /> $20,000 flyers, banners and other media<br />$120,000<br />Mobile Apps: $100,000 development cost<br /> $20,000 promotion expenditure<br />
  68. 68. Determining Strategic Direction<br />Developing the Optimum Solution<br />Implementation and Impact<br />Developing the pre-purchase experience to drive awareness<br />Enhancing the purchase experience to drive in store sales<br />Long Term Vision for Future Expansion in foreign Markets<br />Enhancing the purchase experience to drive in store sales<br />Objectives:<br /><ul><li>Attract more customers
  69. 69. Increase transaction total
  70. 70. Greater customer retention</li></li></ul><li>Current Limitations in Key Customer Experience Factors <br />Key Customer Experience Drivers Overall Score Excellent CE<br />Strategy<br />Mitigations<br />Birks Birthday<br />Knowledgeable staff<br />Current Customer Experience Limitations and Implications<br />Poor customer experiences leading to poor brand perception<br />http://www.peppersandrogersgroup.com/view.aspx?DocID=32706<br />
  71. 71. A Review on Employee Incentives<br />Impact on employee motivation after adequate compensation is met<br />Total impact on employee motivation <br />Introduce “customer service” metric as a key performance indicator (KPI) into current commission based compensation*See Appendix for implementation<br />http://www.shrm.org/hrdisciplines/compensation/Articles/Pages/IntangibleIncentives.aspx<br />
  72. 72. Leveraging organizational capabilities to produce exceptional customer experience<br />Organizational Capabilities Overall Score Excellent CE<br />Train, Empower, Sustain Culture<br />Customer Excellence Training Model<br /><ul><li>In-house
  73. 73. Eligible for promotion
  74. 74. Linked to salary increases
  75. 75. Birks University
  76. 76. Formal training
  77. 77. In-house
  78. 78. Informal training
  79. 79. Linked to CE KPI
  80. 80. Birks University
  81. 81. Eligible for promotion
  82. 82. Managerial praise</li></ul>Focus on fostering a strong customer-centric culture <br />through extensive employee training and development<br />http://www.peppersandrogersgroup.com/view.aspx?DocID=32706<br />
  83. 83. Developing an Exceptional Customer Experience to Reflect Birks Brand Identity<br />“As Canada's premier luxury jewellery brand and most respected designer and manufacturer of fine jewellery, timepieces, sterling silverware and gifts, Birks represents a heritage of trust, uncompromising quality and courteous service.”<br />Customer Experience Drivers<br />Feel: <br />satisfied with a strong understanding of Birks identity<br />Service: <br />Follow-up amenities; follow up promotions and launch details<br />Feel:<br />friendly ambiance with a sophisticated “buzz”<br />Service:<br />instant greeting by sales associate<br />Feel:<br />relaxing, fascinating, enjoyable<br />Service:<br />approachable and friendly sales associate <br />Feel: <br />luxurious products to match luxurious experience<br />Service:<br />Knowledgeable and unintimidating sales staff concerned about finding the “perfect fit”<br />Create a more memorable customer experience by ensuring exceptional customer experience from store entrance to store exit*See Appendix for implementation<br />http://www.birksandmayors.com/index.asp?cs=480<br />
  84. 84. Improving the Customer Experience to Drive Sales<br />Exceptional customer experience leads to increased volume<br /> of customers and increased sales per customer<br />
  85. 85. Determining Strategic Direction<br />Developing the Optimum Solution<br />Implementation and Impact<br />Developing the pre-purchase experience to drive awareness<br />Enhancing the purchase experience to drive in store sales<br />Long Term Vision for Future Expansion in foreign Markets<br />Long Term Vision for Future Expansion in foreign Markets<br />Objectives:<br /><ul><li>Assessment of Current State
  86. 86. Evaluation of Options
  87. 87. Proposal Development</li></li></ul><li>Strategic Planning of Expansion<br />Why does Birks & Mayors what to expand, what location best suits this objective, and when should Birks & Mayors Implement?<br />Clarification of Scope and Objectives<br />Assessment of Current State<br />Evaluation of Options<br />Project Details<br />Capital Requirements<br />Capital Available<br />Market Opportunities<br />Recommendation<br />Implementation<br />Current Locations<br />Decision Criteria<br />Other Factors<br />
  88. 88. International Expansion: Two-Sided Coin<br />Birks & Mayors must determine their capability of expanding Internationally and the returns on their time and capital<br />Affordability of Diversifying Customer Base? <br />Highest Return on Executives Focus?<br />Gained Benefits versus Failure Cost?<br />Clarification Scope & Objective<br />Con’s<br />Pro’s <br />Qualitative Factors<br />Capital Required<br />*”Don’t Go Global” Sophisticated Finance Blog, Robert Hacker, CFO One Laptop per Child and MIT Professor<br />
  89. 89. Sample Cost Model of Expansion<br />$449,600 per International Store*<br />Clarification Scope & Objective<br />Clarification Scope & Objective<br />Qualitative Factors<br />Qualitative Factors<br />Capital Required<br />Capital Required<br />* “Costs of Forming in Inda” IndiaBusiness Forum<br />* “Costs of Setting up Office in India” New Zealand Trade and Enterprise<br />* “Costs of Setting up Office in India” New Zealand Trade and Enterprise<br />* See Appendix: Cost of Birks Store<br />
  90. 90. Current Geographic & Capital<br />Assessment of Current State<br />87%<br />Ratio of Indebtness to Total Capitalization<br />Capital Available<br />Current Locations<br />-16%<br />Decrease in Working Capital <br />2009 to 2010<br />$14M<br />Excess Borrowing Capacity<br />69 North American Locations<br />282,000 Retail SqFt<br />*Mike Rabinovitch - Birks & Mayors Inc. - SVP, CFO July 10, 2010 Thompson ReutuersEarningsConferenceCall<br />
  91. 91. High Level Assessment<br />Beginning to Correct Fragile Finances, Keep Positive Momentum Going<br />Assessment of Current State<br />Assessment of Current State<br />“<br />…during the past fiscal year, we achieved our primary goal of deleveraging the Company…<br />We will, however, continue to strive to improve the productivity…and limit our capital expenditures.<br />Capital Available<br />Capital Available<br />Current Locations<br />Current Locations<br />”<br />- Tom Andruskevich, President, Birks & Mayors Inc. <br />25%<br />8%<br />Reduction in Bank Indebtness 2009-2010<br />Decrease in Inventory 2009-2010<br />
  92. 92. No Expansion In the Short Term<br />Do Not Expand Until Financially Stable, Consider as Long Term Strategy<br />Fragile Financial State, Priority on Deleveraging<br />Low Working Capital or Borrowing Capacity<br />Evaluation of Options<br />Market Opportunities<br />Decision Criteria<br />
  93. 93. Lucrative International Markets<br />Evaluation of Options<br />Evaluation of Options<br />Market Opportunities<br />Market Opportunities<br />Decision Criteria<br />Decision Criteria<br />India & China Experiencing Fastest Growth in Population, Wealth, Jewelry Market<br />*”India, China to Equal US Jewelry Market” Commodity Online, July 2007<br />*”Jewelry and Watches in Canada” Datamonitor, June 2010<br />*”Jewelry and Watches in China” Datamonitor, June 2010<br />
  94. 94. 2014 Consider Indian Expansion<br />First Focus North America; if expansion in Future India is Attractive<br />Evaluation of Options<br />Evaluation of Options<br />Market Opportunities<br />Market Opportunities<br />Decision Criteria<br />Decision Criteria<br />*See Appendix for Potential Implementation Plan<br />
  95. 95. Determining Strategic Direction<br />Developing the Optimum Solution<br />Implementation and Impact<br />Financial Implications<br />Communicating Change<br />Mitigating Risk<br />IMPLEMENTATION AND IMPACT OF OUR STRATEGY<br />Objectives:<br /><ul><li>Understanding the financial Impact of the model
  96. 96. High Level timeline
  97. 97. Management next steps</li></li></ul><li> 11%<br />Financial Position Exiting Troubled Times<br />*See Appendix for Financial Data<br />
  98. 98. 11%<br /> 7%<br />Financial Position Exiting Troubled Times<br />*See Appendix for Financial Data<br />
  99. 99. Improving Debt Position but still suffering in Sales and Profit<br /> 18%<br /> 11%<br /> 7%<br />Financial Position Exiting Troubled Times<br />*See Appendix for Financial Data<br />
  100. 100. The Recession: Just an Excuse?<br />Worse relative to Competitors; Outlined Strategy To Drive Sales <br />Representedas % of 2008 Level <br />SALES 2009 & 2010<br />PROFIT 2009 & 2010<br />-2.05%<br />-7.06%<br />-9.64%<br />-4.88%<br />-9.18%<br />-5.85% <br />*See Appendix for Financial Data<br />
  101. 101. Diamond Clear Financial Returns<br />App Campaign: $404,000<br />In Store Experience: $3,482,000<br />Local Sponsorship: $2,951,000<br />Traditional Media: $1,322,000<br />Birks Birthday: $211,000<br />Three Year Additional Revenues<br />$2.73M<br />$2.70M<br />$2.72M<br />Rev<br />45<br />5<br />4<br />3<br />4<br />3<br />2<br />2<br />1<br />1<br />2012<br />2011<br />2013<br />Conservative Increase of $8.37M Revenues, $4.18M Profits Due to Campaign<br />*See Appendix for Financial Data<br />
  102. 102. $2,349,341.96 <br />$3,728,467.79 <br />127.92% <br />203.02% <br />Return On Limited Capital for Birks<br />127% ROI<br />203% ROI<br />NPV: Program Costs Profit <br />ROI Range Conservative-Aggressive<br />$3.73M<br />$2.35M<br />$1.84M<br />COST<br />PROFIT-C<br />PROFIT-A<br />Effective Campaign Capturing Gen X & Y Yields 127%-203% ROI<br />*See Appendix for Financial Data<br />
  103. 103. Next Steps: Change Management Structure<br />Prepare stakeholders for the organizational changes <br />and provide the tools to support and sustain change<br />Sustain<br />Understand<br />Buy-in<br />Transforming the business<br />Enabling process change<br />Executive level support<br />Communication and process enabling<br />Director, management, employee <br />leadership team feedback<br />Feedback from all levels of organization<br />Senior level feedback<br />HR professional feedback<br />Input<br />Tracking progress<br />Amendment planning<br />Stakeholder needs assessment<br />Communication strategy<br />Change management project summary<br />Board approval<br />Deliverables<br />Telus Human Capital Consultanting<br />
  104. 104. Mitigating Risks<br />Our recommendation encompasses a multi-faceted and integrated <br />strategy to make Birks more relevant to Gen X and Y<br />
  105. 105. Key Objectives<br />Our recommendation encompasses a multi-faceted and integrated <br />strategy to make Birks more relevant to Gen X and Y<br />
  106. 106. Moments into Memory <br />
  107. 107. THANK YOU<br />We’d like to welcome any questions or comments<br />
  108. 108. Appendix<br />
  109. 109. Appendix – Long Term Product Mix Suggestions<br />Grow and develop Birks brand product lines to specifically target the tastes and preferences of certain consumers<br />
  110. 110. Comparison between the generations<br />Baby Boomers<br />Gen X<br />Gen Y<br /><ul><li>1960-1981
  111. 111. Demand work-life balance
  112. 112. Family oriented with a focus on building strong relationships
  113. 113. Ethnically diverse
  114. 114. Heterogeneous
  115. 115. Highly educated and dual income
  116. 116. Internet is their way of life
  117. 117. 1982-2002
  118. 118. 1/3 of the population
  119. 119. Liberal
  120. 120. Most ethnically diverse
  121. 121. Least likely to change spending habits
  122. 122. Culturally liberal
  123. 123. Technologically connected
  124. 124. Seek approval from others when making purchases
  125. 125. Online shoppers – research and purchase
  126. 126. 1940-1959
  127. 127. Dedicated to the careers
  128. 128. Life is just beginning at age 60
  129. 129. Self indulgence
  130. 130. Focus on feeling youthful
  131. 131. 34.5% heavily invested in green initiatives
  132. 132. Marriage is important
  133. 133. Career driven
  134. 134. Catalogue shoppers</li></ul>Source: Packaged Facts<br />
  135. 135. Baby Boomers, 1940-1959<br /><ul><li>Redefined aging, life is just beginning at age 60
  136. 136. Self indulge in product that make them feel youthful</li></ul>Source: Statistics Canada<br />
  137. 137. Generation X, 1960-1981<br /><ul><li>Family oriented with a significant value on relationships
  138. 138. Highly educated dual income families</li></ul>Source: Statistics Canada<br />
  139. 139. Generation Y, 1982-2002<br /><ul><li>Least likely to change spending habits based on external factors
  140. 140. Will lead the world out of the global recession</li></ul>Source: Statistics Canada<br />
  141. 141. Appendix – Birks Boreal Campaign<br />Birks Boreal Collection<br />It’s the serenity beneath the trees. The richness of the natural world. The cultural identity of our nation. This is not jewellery. It’s a way to thank Mother Nature for the little things<br />It’s the serenity beneath the trees. The richness of the natural world. The cultural identity of our nation. This is not jewellery. It’s a way to thank Mother Nature for the little things<br />Market sustainable practices to appeal to green conscious consumers<br />
  142. 142. Birks Facebook Presence<br />
  143. 143. Birks Twitter Presence<br />
  144. 144. Appendix – Compensation KPI changes<br />Include “Customer Service” as a key KPI for employees to add <br />incentive to provide an exceptional customer experience<br />Proposed Compensation Structure<br />*Assumption: average senior sales employee<br />65<br />%<br />35<br />%<br />KPI based commission<br />Base salary<br />Accomplishment of sales targets: 20%<br />Accomplishment of customer service targets: 10%<br />Accomplishment of leadership targets: 5%<br /> 20% 10% 5%<br />Implementation Plan<br />
  145. 145. Appendix – Sales Staff Placement Changes<br />Proposed staff placement<br />Current staff placement<br />Sales manager<br />Sales manager<br />Sales staff<br />Sales staff<br />1. Opportunity for most amicable sales staff to be at front-of-house<br />2. Allow sales manager to monitor high margin sales (closer to luxury products)<br />3. Create a more inviting and unintimidating experience by greeting customers within seconds of entering<br />Strategically place sales staff to create more inviting experience <br />for all customer segments<br />
  146. 146. Appendix – Product Placement Changes<br />Proposed product placement<br />Current product placement<br />Baby boomers<br />Generation X/Y<br />Expectant/current<br />Mothers<br />Home<br />Baby boomers<br />Generation X/Y<br />Expectant/current<br />Mothers<br />Home<br /> Move Gen X/Y products closer to the front of store to be closer to the younger/friendly staff and increase the chances of being greeted instantaneously<br />Allow staff to be more specialized in a particular department (increase staff knowledge)<br />Strategically place products to create more inviting experience <br />for all customer segments<br />
  147. 147. A Marriage Between our Strategy and the Birks Culture<br />Our recommendation adheres to Birks’ six key principles<br />
  148. 148. Appendix: Cost of Birks Store<br />
  149. 149. Appendix: Working Capital, Net Income, and Debt to Assets 2008-2010<br />
  150. 150. Appendix: Financial Data<br />
  151. 151. Appendix: Financial Data<br />
  152. 152. Appendix: Financial Data<br />
  153. 153. Appendix: Traditional Marketing Reach<br />
  154. 154. Appendix: Financial Projections Conservative<br />
  155. 155. Appendix: Financial Projections Aggressive<br />
  156. 156. Appendix: NPV and ROI<br />
  157. 157. Appendix: Upsell and New Sell Estimates<br />
  158. 158. Appendix: Working Capital, Net Income, and Debt to Assets 2008-2010<br />
  159. 159. Fostering the Luxury Culture in India<br />Issue<br />Solution<br />
  160. 160. Strategic Placement of physical locations to support Luxury Brand<br />Create exclusivity through strategic placement of physical stores<br />
  161. 161. Personalize Retail Ambiance to Create Birks & Mayor Experience<br />
  162. 162. Partner with Luxury Mall Developers<br />Increase Quality of Footfalls<br /><ul><li>Influence
  163. 163. Autonomy</li></ul>Implementation Details<br /><ul><li>Top Floor (Luxury Floor)
  164. 164. High Ceilings
  165. 165. Increased square footage
  166. 166. Customized drywall/window placement
  167. 167. Lighting and walkways</li></li></ul><li>Create Flagship Store in Bangalore<br />A Store with Luxury status and European Flair<br />
  168. 168. Support Product to Upsell<br />Goal<br />Loyal Customers<br />Repeat Purchasers<br />Big Ticket Purchases<br />
  169. 169. Increasing Product Presence<br />Establish Inspirational desire for Birks & Mayor in an emerging target market<br />
  170. 170. “I’ve Made it”<br />
  171. 171. Increase brand awareness through Bollywood exposure<br />Award Shows<br />Swag Bags<br />Product Placement<br />500 Units<br />Paid Endorsement<br />Mumbai<br />Delhi<br />1000 Units<br />Women:Pendandt Unit Cost $1280 Example Client: AshwariaRai<br />
  172. 172. Create a VIP Program<br />Expected Annual Cost: $100,000<br />
  173. 173. VIP Program Metrics<br />Brand Awareness and Perceived Status within local community<br />Sales per customer at Birks & Mayor stores<br />Action Items<br />Hire a director of sales in India $60,000<br />Pilot program in India, long term global expansion<br />
  174. 174. Project Timeline<br />
  175. 175. Mitigating Risks<br />
  176. 176. Project Resources<br />

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