2. Forever 21: Fast Facts
-Founded in 1984 by CEO Do Won
Chang in Los Angeles, California.
-Operates over 600 stores worldwide
under the Forever 21, XXI Forever, For
Love 21, and Heritage 1981 (Forbes, n.d.)
-Launched E-Commerce site in 2003.
-Sells literally everything! (Shoes,
Accessories, Hats, Handbags, Apparel,
Phone Accessories, and more!)
3. Digital Strategy
● Lookbooks & Trend Boards
○ Visual aids that help to educate the
customer on current trends and encourage
them to purchase products
● Email Marketing
○ Call-to-Action Messaging
■ Want the customer to go to the E-
Comm site and in-store to purchase
merchandise advertised in the
email
● #F21xMe Instagram Campaign
○ Campaign that features customers that
use #F21xMe on F21 account and linked to
the bottom of the E-Comm website
○ “Get the Look” buttons embedded
underneath photos on website
● Product Linkage Posts
○ Social media posts include direct linkage
to product advertised
● Mobile Application
○ Small scale version of E-Comm website
○ Embeds social media accounts
○ Store Locator & Order Status handles
○ #F21xMe handle
4. Non-Digital Strategy
● Magazines
○ Forever 21 magazine has seasonal
issues, each highlighting the newest
trends, both in fashion and in beauty
○ Company ads also present in:
■ Teen Vogue
■ GLAMOUR
■ FASHION
■ Seventeen
● Billboards
○ Centered around highly populated
cities, highways, shopping malls
○ Minimalist and simplistic design
5. Strengths
-Caters products for women, men, young
adults, and teens
-Strong online and mobile presence
-Company is worth $4.4 billion
-Affordable pricing strategy
-Strong brand recognition
-Loyal customers
Weaknesses
-Duplicates ideas from other designers
-Stores tend to be understaffed and
chaotic
-Does not have a rewards system nor do
they provide coupons
-High staff turnover rates
Opportunities
-Should utilize search engine
optimization.
-Rewards program
-Mobile Point-of-Sale implementation
-Radiofrequency Identification Tags (RFID
Tags)
Threats
-Competitors include Zara and H&M.
-Negative reputation amongst high
profile designers in regards to “knocking
off” merchandise.
- Speed of technological advancement
introductions
-Port Strikes
Current SWOT Analysis
SWOT Analysis information pulled from various online sources.
6. Geofencing Strategy
-Creation of a “virtual fence” within a specific radius of a
Forever 21 store
-Beacons will detect phone signal and send push
notifications persuading user to visit the nearest Forever
21 to partake in promotional event.
-Can also encourage users to visit the E-Commerce site
-According to a source, by implementing geofencing,
retailers can experience a 60% lift in in-store traffic
(Sterling, 2014).
-Strategy Cost: $50,000 (~$4,167 per month)
-Metrics To Measure:
1. CTR (click-through rate)= # of
clicks/impressions
2. Impressions
3. Frequency
4. Conversion Rate= # of conversions/total # of
clicks (E-Comm) or # of conversions/total # of
visitors (in-store)
7. Search Engine Optimization
-Forever 21 is not within the top
three positions on Google.
-Appears only in the organic
section.
-The most clicks typically go
towards the ads that show up in
the top three positions (Lyngbo,
2012).
-In this particular situation,
Forever 21 could possibly lose
sales to the brands shown
above them.
8. Search Engine Optimization
-By utilizing a third party SEO
company to help in managing SEO
practices, Forever 21 can get their ads
moved to the desired top three
positions and experience more site
traffic and increased conversion rates.
-Strategy Cost: $6,000 per year
($1,200 per month)
- Metrics to Measure:
1. CTR (Click-Through Rate)= #
of clicks/total # of impressions
2. CPC (Cost Per Click)= cost x #
of clicks
3. Conversion Rate= # of
conversions/total # of clicks
9. Forever 21 Men
● #Forever21Men
● Launched in the summer of
2015
● First two months obtained
38,000 followers and
generated 8,000 post tags
● Style bloggers for promotion
● Daily Newsletters
10. Facebook and Twitter F21 Men Expansion
● By expanding their Forever 21 Men campaign to
Facebook and Twitter they can reach out to even
more of their male audience
● Post different looks that are currently trending
● Have contests each week for best look and give
out prizes to the winner
● Interact and personally engage with consumers
● Strategy cost:
○ Facebook $30,000 ($2,500 per month)
○ Twitter $24,000 ($2,000 per month)
● Metrics to Measure:
○ CTR (Click-Through-Rate)=
clicks/impressions
○ Engagement
○ Impression
○ Reach
○ Likes (Organic & Paid)
11. Mobile POS
● Using mobile POS will allow for faster
transactions
● Shorter lines and faster conversion rates
for stores
● Generates less waste as receipts would
be completely paperless.
● Strategy Cost:
○ 20 iPod touches (@ $200 each)
○ 20 Mobile Scanners (@ $310 each)
○ Total $10,200
● Metrics to measure:
○ Conversion rate= # of
conversions/clicks
○ Average dollar sale (ADS)= Total
Sales/Number of transactions
12. RFID Tags
● Allows for greater accuracy of
inventory management
● Greater organization for stores
● Associates can actually find
individual products
● Strategy Cost:
○ 8 RFID readers (@ $3,000
each)
○ 58,000 RFID tags (@ $0.10
each)
○ Total $29,800
● Metrics to measure:
○ Shrinkage Rate= Inventory
Loss for the Period/Total
Sales
13. Proposed SWOT
Strengths
-Mobile Point-of-Sale implementation
-Radiofrequency Identification Tags
(RFID Tags)
-Strong online and mobile presence
-Utilizes SEO (Search Engine
Optimization)
-Forever 21 Men’s Campaign is
successful and has gained traction on
Facebook and Twitter
Weaknesses
-Still testing out different and new
technology
-Duplicates ideas from other designers
Opportunities
-Rewards program
-Interactive mobile app
-Have more digital interactions than
competitors
-Have more available staff and
organized stores
-Reduce the size of brick-and-mortar
stores
Threats
-Competitors include Zara and H&M.
-Negative reputation amongst high profile
designers in regards to “knocking off”
merchandise.
-Port Strikes
14. Cost Breakdown
Allocated Budget: $150,000
Facebook Men Campaign
Strategy
$30,000
Geofencing Strategy $50,000
Mobile Point-of-Sale System $10,200
Search Engine Optimization $6,000
Radio Frequency Tags (RFID
Tags)
$29,800
Twitter Men Campaign Strategy $24,000
Amount Used $150,000
