Case Study- Mendocino by FZ Yassin

Fatima Zahra Yassin | Retail Buying-1 | October 26, 2015
Mendocino
FALL/WINTER 2016-17 - WOMEN DRESSES COLLECTION

INTRODUCTION 3
COMPANY PROFILE 4
MENDOCINO 4
M FOR MENDOCINO 4
THE PRODUCT 4
BRANDS- DRESSES 5
CUSTOMER PROFILE 6
MARKET SEGMENT/BASES 7
GEOGRAPHIC DATA 7
DEMOGRAPHIC DATA 7
SOCIOCULTURAL DATA 7
AFFECTIVE & COGNITIVE DATA 8
COMPETITIVE STORE SURVEY 9
PART 1- CUSTOMER PROFILE 10
PART 2 - VISUAL PRESENTATION 11
PART 3 - MERCHANDISE SELECTION 12
PART 4 - OVERALL REVIEW OF THE STORE 13
STRENGTHS 13
WEAKNESSES 14
TREND REPORT 15
THE VISION 15
ELEMENTAL- MAKING SIMPLE 16
ARTISAN- FOLKLORIC 24
REMASTER- DRAMATIC 34
SILHOUETTES 45
HIGH-NECK DRESS 46
RACER NECKLINE DRESS 48
ONE IS ENOUGH DRESS 50

MENDOCINO ASSORTMENT PLAN- DRESSES A/W 2016-17 52
MERCHANDISE BUDGET 52
THE ECONOMY 52
THE WEATHER 53
BUDGET DECISION 53
SIX-MONTH MERCHANDISE PLAN 54
BUDGET PLAN 54
MERCHANDISE ASSORTMENT PLAN 56
CLASSIFICATION 56
SUB-CLASSIFICATION 56
RESOURCES: 63

Introduction
As a buyerof dresses forMendocino,my jobis to selectwhatitemswill be stockedinthe stores
based on my predictions about what will be popular with our consumers.
I work at the head office in downtownToronto, but I make frequent trips to our nine boutiques
across the GTA.
I am responsible formaintainingstore inventoriesandforecastingcustomerdemand,andIwork
closelywithourstore managersto get theirfeedbackandto properlydisplaythe clothinginthe
most marketable positions.
Everyseason,whenIamplanningandselectingthe assortmentof dressestosellinourboutiques,
I take on consideration few factors when making purchasing decisions, such as the following:
o Customer demand including price, quality and availability;
o Market trends;
o Store policy and vision;
o Financial budgets.
I have prepared a report outlining our target market, our competition, the chosen trends and
colors for our Fall/Winter 2016-17 collection, and a six-month merchandise plan.

Company Profile
MENDOCINO
Created by a Canadian family in 1987, Mendocino celebrates over 25 years as Toronto’s leading
boutique forcutting-edgeglobal fashionandthemost-wantedbrands.Withnineboutiquesacross
the GTA,Mendocinohasbeencommittedtoandpassionateaboutbringingdesignerstyleandthe
most sought-afterlabelshome toTorontoseasonafterseason.Distinguishedforitsstrongpulse
on current trends and coveted brands, Mendocino continues to inspire and dress local fashion
enthusiasts at the frontier of Toronto’s retail scene.
M FOR MENDOCINO
In 2009, M for Mendocino opened its first boutique on Queen Street West as a sister brand to
Mendocino.Ithasnow11locationsacrossthe GTA,andofferstoTorontowomenwhoare looking
for accessible style the season’s must-have runway looks at affordable price points. M for
Mendocinoisdedicatedtohelpingwomenputtheirpersonaltwistontheseason’stoptrendsand
offering them a fun and vibrant shopping experience in a unique boutique atmosphere.
THE PRODUCT
Mendocinooffersavariedselectionof productstoitscustomerstocomplete theirwardrobewith
the latesttrendsof fashionclothing.Whetherit’sforwork, a nightout withthe girls, a dinnerat
the restaurant,or a sophisticatedoutfitforthe weekend,Mendocinogirl isconsciousof how she
looks, and can choose from a wide assortment of merchandise to find what she’slooking for at
the store:
o Tops o Party Skirts
o Dresses o Little black dress
o Denim o Coats and jackets
o Jumpsuits & playsuits o Knitwear
o Trousers and Leggings o Cardigans
o Maxi dresses o Fur & Leather
o Shorts o Blouses
o Accessories o Co-ords

BRANDS- DRESSES
MendocinooffersdifferentbrandstoTorontowomen fromParis,London,Australia,Los-Angeles,
NewYok,BeverlyHills,etc...The retailprice of the dressesrage from$88 to $400. Here are some
brands sold in our boutiques.

Customer Profile
Sarah is a Mendocino Girl. She is 38 years old, lives in Oakville, and works Downtown Toronto.
She loves Fashion, Travel, Décor, Healthy Living, Art, and Music. She is career- oriented, very
confident, extravert, smart, daring and forward thinking woman. Being a lover of life, her busy
daily routine doesn’t stop her from treating and enjoying herself. Her nails are perfectly
manicured,she wearssunglassesonherhead,andherfeminine lookalwaysmakesherstandout
fromthe crowd.Sarah maynot be wealthybutshe hasan aura of sophisticationabouther.She’s
alwaysinterestedinthe latestfashiontrends,andlikestopresenthersoul to the outside world.
She lovesflatteringfitdresses,whether forworkor a nightout, she alwaysfindsherperfectone
at Mendocino. Sarah is a big fan of black little dresses; she feelssexy and empowered in them,
but sometimes she wears lace dresses to feel flirty and sweet, or a long dress when she’s in a
romantic mood!
Sarah is simply beautifully intense and eternal optimist!

Market Segment/Bases
GEOGRAPHIC DATA
Geographic Area Greater Toronto Area
The GTA is defined as the central city of Toronto, and the four regional
municipalities that surround it: Durham, Halton, Peel, and York.
It's a leading international centre of business, finance, arts, and culture
City Size 7,124.15 km2 (2,750.65 sq mi)
Population GTA is the most populous metropolitan area in Canada
According to the latest census data from 2011 from Statistics Canada,
the population is 6,054,191
Density 849/km2 (2,199/sq mi)
Climate Humid continental climate; with warm, humid summers and cold winters.
DEMOGRAPHIC DATA
Age 25 to 55
Gender Female
Household Size 1- 4 Persons
Household Income $100,000+
Occupation Business, Management, Public Relations,
Marketing, Freelancers, Artists
Education Educated women with College or University Degree
SOCIOCULTURAL DATA
Culture North American
Subculture
- Religion All Religions
- National Origin Canadian
- Race Various

Social Class Middle- Upper Class Women
Marital Class Single, In a Relationship, Married
Psychographics Sophisticated, Fashion Driven, Confident, Bohemian, Status Conscious
Lover of Life, Audacious, Extravert, Forward Thinking Woman
AFFECTIVE & COGNITIVE DATA
Degree of Knowledge Visualizer, Conscious,Identify, Recognise, differentiate, Consider, Examine
Experience
Benefits Sought Latest Trends, Feminine Look, Flattering Fit, Feeling Sexy and Empowered
Stand Out From The Crowd
Attitude Outgoing, Assertive, Spontaneous, Optimist, Self-Image Conscious,
Tolerant, Goal Driven, Doyen
Behavioural Data
Brand Loyalty Exclusive Loyalty
Store Loyalty Exclusive Loyalty
Usage Rate Medium- High
User Status Current- Prospective
Payment Method Cash, Debit, Credit
Media Usage Instagram, Twitter, Facebook
Usage Situation Work, Weekend Outings, Evening, Special Occasion

Competitive Store Survey
Buyer: Fatima Zahra Yassin
Store I am Shopping: GUESS Date: October 22nd, 2015
Day of the Week: Thursday Time of Day: 5:15pm
Store Location: Oakville Place Centre
Type of Retailer: Clothing and Accessories

PART 1- CUSTOMER PROFILE
1. How many customers were in the store area when you were shopping? If there were an unusually
large number of customers, why?
There were three people in the store when I went in, and three others came in for the time I spent in the
shop; about 30min
2. What was the average age of the customers? How many were men? How many were women?
Four women were around 35 years old,one women 45 years old,and one young male around 25 years old.
3. Were any customers making purchases?
One lady came out from the fitting the room and purchased a Top and a Jacket.
4. Were there enough sales associates to accommodate the number of customers?
There were two sales associates on the floor. I think it was enough for the amount of traffic in the store.
5. Do you think this was a typical customer sampling for the store or area?
Yes, I think it was a typical sampling for the store in the area of Oakville.
6. Did the store environment parallel the type of customers present (i.e., Did the store’s visual
presentations reflect the customer shopping?)?
There was a 30% promotion going on the day of my visit; there was a signage at the entrance and on the
display window. The visual presentation promotes more dresses, tops, and winter items; however
customers were more shopping around for pants and handbags.
7. Summarize the customer profile by describing the target customer for this store or area.
The location overview:
Oakville place has been undergoing some changes; many stores closed down in the past few years for
different reasons, such as Jacob, Mexx, Birks, Aeropostal, Globo Shoes…etc.
Being the largestshoppingmall in Oakville,the organization has invested multi -million dollaron makeover,
and developed a re-merchandizingstrategy that consists on bringingin morebrands or names that may, or
may not, be new in the area to give a true personal,conciergetype experience to all its shoppers.The goal
of the new strategy is not aimingfor an ultra-lux demographic,it’s more to refine the market by expanding
the women’s fashion, footwear and accessory offering. The Oakville Place renovation and new marketing
strategy follow on the heels of similar undertakings across the Greater Toronto Area, including major
upgrades at Mississauga’s Square One Shopping Centre and Toronto’s Sherway Gardens.
Guess core customer is a style-conscious consumer primarily between the ages of 20 and 35; they are
students, working juniors in their fields,middle-upper classindividualswho areeducated, fashionable,and
share an adventurous lifestyle.
Duringmy visitto the OakvillePlaceGuess shop,I have observed that the customers who were shoppingin
the store were women ranging from 35 to 45 years old.
Based on the 2011 Census Population,the demographic core target market of the company is present only
in 15% of the population; however 31% of the population is between the age of 20 and 45 years old, and
many of them share the same lifestyle targeted by the company, so for this store location the target
customer is more mature than the primary target of the company; which was reflected in the customers
who were shopping in the store during my visit.

PART 2 - VISUAL PRESENTATION
1. What kind of signage was used? Describe.
There was a sidewalk and a windowsignageatthe entrance of the storefeaturing a 30%promotion for new
and existing Guess customers. Inside the store as well, there were small signage of the promotion
everywhere, on the shelves,tables,by the counter and in the fitting rooms.At the back of the store, on the
side wall, there was a 50% sign for already reduced items.
2. How was the department merchandising visually? By color, category, size or a combination?
The visual merchandisingwas a combination of colors and items category. At the front in the middle, there
were tables and racks featuring some items in black and red colors,which have the Holiday’s spiritof the
season such as dresses, co-ords, skirts, silk shirts, and some handbags.
Behind it, atthe far back there was a selection of winter items such as jackets,coatigans and knitsweaters.
Both front sides zones were featuring different categories of new items; racks on the left zone present
jackets and outwears grouped together, and the wall was a combination of new items. Dresses were
dominating the assortment presented on the walls; the rest was a blend of tops, skirts, two-pieces sets,
blazers, and jumpsuits.
The shop carried a wideselection of pants, denims, and leggings; there were featured around the store on
tables and some shelves. Sweaters were also presented on some tables grouped by style and color along
with some basics such as T-shirts and tank tops.
This location doesn’t have a men department, but 20% of the shop was dedicated to a zone featuring two
categories which are (1) casual clothing, (2) handbags and accessories.
Finally, at the far back there was a small wall of clearance items, which contained old products reduced
with an extra 50% off.

PART 3 - MERCHANDISE SELECTION
1. What type of merchandise is stocked? List a minimum of five categories.
Pants and leggings
Dresses
Outwear
Tops
Handbags
2. What brands are carried?
Guess shop carries their exclusive own brand, GUESS?
3. What are their private labels? How do they compare in quality and price?
The shop carries only one private label, GUESS?
4. What are the price points? Lowest? Highest? Average?
The price points of the dresses were:
Lowest: $98
Highest: $168
Average: $133

5. What was “front and forward”? What was in the back of the department?
The front and forward of the shop was the Holiday’s items,fall and winter outwear, dresses,knitsweaters,
and a wide selection of denim and legging.
The back of the department was in onezone casualwear and handbags,and theother zone some fall/winter
items and a small hidden wall of clearance merchandise.
6. Was clearance merchandise available and where was it located?
Yes, clearance merchandise was available at the very back of the shop in a hidden side wall.
7. What percentage of the merchandise was new or current? What percentage appeared to be
basics? What percentage was clearance?
New and current merchandise: 85%
Basic items: 10%
Clearance: 5%
8. Did the merchandise meet your customer analysis?
Yes, the merchandiseassortmentmeet my customer analysis.Theshop offers a widevariety of dresses that
appeal to my target customer at competitive price points.
PART 4 - OVERALLREVIEW OF THE STORE
1. Why do you think this store will provide competition for your store?
Guess and Mendocino offer fashion-forward collection of dresses to the same market. Both shops cater to
women who are lover of life,confident, sophisticated,forward thinking, quality conscious,and interested
in the latest trends; they also sharea healthy livingand adventurous lifestyle, and fit in the middle-upper
class.
In addition to that, both shops market lifestylecollection of contemporary apparel for women that reflect
the American lifestyle and European fashion sensibilities worldwide.
2. How can you overcome their strengths, and take advantage of their weaknesses?
Strengths
o Guess is a global lifestylebrand with a full range of denim, apparel and accessories,and they are
already known in the Canadian marketplace and around the world.
o Guess designs,markets, distributes,and licenses thecompany’s apparel under varioustrademarks
including GUESS, GUESS U.S.A., GUESS Jeans, GUESS?, G by GUESS, GUESS by MARCIANO and
MARCIANO. The lines includecollections of clothing,includingjeans,pants,skirts,dresses,shorts,
blouses, shirts, jackets, knitwear, and intimate apparel. The company also selectively grants
licenses to manufacture and distribute a range of products that complement its apparel lines,
includingeyewear,watches,handbags,footwear,kids’and infants’apparel,outerwear,swimwear,
fragrance, jewelry, and other fashion accessories.
o Their stores arelocated in almostevery mall, and their outlets can be found in almost every outlet
mall across Canada. In addition, their private label products is also present at department stores
such as The Bay.

o The other strength of Guess shop is that their full collection is available and can be purchased
online.
Weaknesses
o It’s a store destination for denim and accessories, and they cater these products to both men and
women between the age of 20 and 35 years old.Their advertisingcampaigns alwaysfeatureyoung
sexy girls,very slimand audacious.On theother hand they also offer merchandisefor moremature
women such as dresses,blouses,skirts, outwear…etc., however their marketing promotions don’t
touch this segment of their market.
o The marketing strategy of my store, Mendocino, should be concentrated more in this segment of
the market to advantageously gain it, and to be their store destination.
o It’s true that beingpresent everywhere is profitably important,however itcan also lead consumers
to believe that Guess merchandiseis less exclusiveor of low quality especially thatitcan be found
at discount department stores such as Winners. It also can lead the customer to wait for the
merchandise to go on sale or to shop for it at the outlets instead of purchasing right away.
o This is a weakness in favor of my store that is known by its exclusive coveted brands and
merchandise at a competitive rage of prices, and our strategy is to continue on offering our
consumers and target market the most unique of the latest trends, and anticipate a selection of
items for compulsive shoppers who are status-conscious.
o Mendocino is a Canadian company that promotes Canadian brands such as Amuse Society, Brave
Leather, Jackson Rowe, La Marque, Mackage, Mitchie's Matchings, Mooseknuckles, Nobis, and
Soia & Kyo. Supporting Canadian brands is important for both, the company and the consumer;
which makes Mendocico one of the few destinations of Canadian labels in the middle-upper
marketplace.

Trend Report
The Vision

ELEMENTAL- MAKING SIMPLE
Inspiration
As simple as possible, that is creativity, less is more!
A soft sense of movement is the key for Fall/Winter 16/17; expressing the trend by bringing
sensational nature to life with mild tones, frosty and dusty colours creating a de-stressed
atmosphere.
Fluffy and soft surfaces combined with relaxed designs contribute to highlight comfort, fluidity,
and simplicity.
The romantic style is powerful projecting a youthful energy.

Color Direction
Color Update
The Elemental colors palette for the A/W 2016-17 season are the cold pastels, pearly metallics,
moody greys, bramble green, intense blue, and lighter shades of the sweet pink. The new
approach of the use of the pastel colorsin the lilacand baby bluesare combinedwithgreysand
beige tonesmakingthispalettesweepsfrompale,breezyneutralstoheavier,moodygreys.Ittugs
between hard and soft, light and dark, creating luxurious richness in fashion.
This calming and contemplative palette whispers sophisticated womenswear. Soft utility of
sandstone and off-white are dominant when combined with the simple tones of pale aqua and
stone grey. This offers an essential refreshed sense of feminity for the season.

Color Moods- Cold Pastels/ Soft Wear

Color Mood- Stones and clay

ARTISAN- FOLKLORIC
Inspiration
The nextfall seasonisaboutartisanal designs!Tapestrydresses,craftedtops,feather-embellished
skirts, and much more are spotted on runways for A/W 2016/2017.
Tribal inspiration is taking the season on an exotic journey filled with a multicultural beat.
The exquisite excessof embellishment, decoration of feathers, multicolored crocheted pieces,
indigenousadornment, laméand brocade fabrics are eye-catching and captivating the runway.
The Artisan trend gives fashion an emotional energy that feels immensely authentic!

Color Direction
Color Update
Artisancombinesclassicdenimandworkwearcolourswithavulnerable,sensitive range of tinted
neutrals.
The rusticwarmth of coppergingerelevatesdarkmaroonandpine green,while parsnipbringsa
calm,neutral base to the palette.Denimblue iselevatedbythe autumnal warmthof lumberjack
and terra-cotta red.
The use of Indianablueiskeyinthispalette,itbouncesoffthe baseandbringsaninkyandintense
richness to this crafted collection of colour.
The palette suggestspoeticauthenticity,andbringsasense of value andsophisticationtocasual
living.

Color Mood- Rust and Stardust

Color Mood- Ethnic Fusion

Color Mood- Fire and Ice

REMASTER- DRAMATIC
Inspiration
The seasonis a junctionof extremes!Designersare takinghistoriccostumesand deconstructing
it for looks that suit a modern concept. Silhouettesare cut up and layered over another, edges
are raw, and designs appear sensual and seductive; or sophisticated but striking.
Remaster actively connects the old and new for future world, adding "drama" to the look. The
sense of crafted and masterfully made designs is dramatically combined with new technology,
creating contemporary dramatic styles.

Color Direction
Color Update
This story is moody and mysterious. The palette expresses colorsof old master paintings.Dusty
colour settlesonthe season,Scarletis a keywinterbright,and Egyptianblue is addedto mark a
new approach to the oil-pastel paintings and enhance an energetic youthful edge.
Softandsmoky expressedwhen chalkypinkfiltersthroughdarkespressobrown, bringingasofter
side to the sumptuous brown borders
Drawing-roomredfiresupthe palette;itheightensgoldentones,andprovidesanaddeddose of
drama. A beaconof vividlightsitsinthe centre,andshineswithunconventional sophistication.
Mustard and outdoor green also couple up, and used to bring another dimensionto deep, dark
bases.

Color Moods- Golden State

Color Moods- Egyptian Blue and Gold

Color Moods- Heavy Metals

Color Moods- Burnt Out

Silhouettes
The essential dresssilhouettesforFall/Winter16-17 that I will be focusingonwhile shoppingin
the marketare the high-neckdress,the racerneckline dress,andthe “one isenough”dress.I
believethese styleswill be ahitinour boutiques,andwillcreate a“goingout” feel for
Mendocinogirl whoisalwayslookingforsophisticatedanddistinctivefashion.
I will be alsofocusingoncertaincolors (see below) fromthe palettespresentedbeforethatsuit
betterourcustomerand make themfeel empoweredandsexy.

HIGH-NECKDRESS
SilhouetteDetails
The highneck dressbecomesa key itemfor Fall/Winter16-17. The focuswill be on dressesthat
boast a high neck detail with a cut-out waist.

RACER NECKLINEDRESS
SilhouetteDetails
There isa move towarda high-cutracerneckline thathonours classiccolumnshapes andgives a
delicate sport’s feelforFall/winter16-17. Sculptedarmholesandstrap-workdirectsattention
ontothe shouldersandarms.The highneckline andcutawayarmhole silhouette isdramatic.

ONE ISENOUGH DRESS
SilhouetteDetails
There isa focuson asymmetrical shouldercutsforFall/Winter16-17 as stylesare constructedto
sitjust off the shoulder,offering the dress shapesof subtle sensuality,

Mendocino Assortment Plan- Dresses A/W 2016-17
MERCHANDISE BUDGET
Our company, like every other business,works within the confines of a budget, which indicates
how much we can spend on various departments. We first analyze sales data, then we forecast
and plandifferentvariables tocreate amerchandise budgetplan thatwillputourbusiness inthe
best position to make a profit.
The variableswe forecastare the components of the merchandise budgetplan,whichare sales,
stock levels, reductions, purchases, and mark ups.
Every season, I have to project customer demand for my department. Understanding what
consumer demand for merchandise is likely to be in the future allows me to devote adequate
resourcestobuyingstockand managinginventorysoasnotto misssalesopportunities.Demand
forecasting relies on an analysis of past sales data, as well as a projection based on upcoming
products, fashiontrends,changesincustomerbuyinghabits,andeconomicandweatherchanges.
The two major factors that I need to consider for my budget planning are (1) the economy, and
(2) the weather.
The Economy
The Canadianeconomyexperiencedamildrecessioninthe firsthalf of 2015 as a dropinoil prices
led to a substantial decline in business capital investment.
The recessionisnowbehindus,andthe economyisexpectedtopostsolidgrowthforthe second
half of 2015. According to the survey from Nanos Research, consumers’ confidence in the
economyspikedtoitshighestlevelthisyearfollowing theLiberalelectionvictory.The democratic
change of government made people feel hopeful about the future.
“Not only is there political optimism but the research suggests there has been a spillover of
optimismrelatedtotheeconomy.” saidNanosResearchheadNikNanos,asquotedatBloomberg.
The quarterlyeconomicforecastreleasedby The ConferenceBoard of Canada onNovember19,
2015, provideshighlights of the CanadianOutlookreport; I pickedupsome relevantpointsfrom
this report to help me forecast the economic changes that could influence the business of our
company:
o Next year, the economic growth is expected to accelerate to a more respectable 2.3 per cent,
driven by a pickup in exports and steady consumer spending;
o The Bank of Canada is expected to keep its overnight rate at its current level until 2017, as the
economy slowly returns to potential;
o Strong growth in spending on semi-durable goods;
o Spending on services related to dwelling and property growing at a steady pace;
o Housing—Regional differences dominate;
o Markets in Toronto and Vancouver are hot … others much softer;
o Residential investment expected to rise modestly;
o International trade—Getting back on track;

The Weather
Mendocino,as a retailerofferingwomena broad assortmentof merchandise,we needto know
how to planour budgetdistributionforeachdepartment,how muchto order, how to distribute
the goods, and how to promote it. We rely on The Weathertrends360 every season to guide us
through these critical decisions by providing us with weather forecast a year ahead along with
sales analytics and sales planning tools.
TheWeathertrends360isacomplete,global,websolutiontohelpretailersandsupplierscapitalize
on the weatherandits influence onsalesandmarketingplansup to a year ahead. It’s a team of
business advisors and techies who are constantly challenging processors to analyze massive
amounts of "big data" from hundreds of thousands of weather reporting stations around the
globe asfarbackas150 years. Theyworkwithamassiveamountof datatocome upwithformulas
that give better ways to help businesses and people around the world.
As a retailer,we learnthroughThe Weathertrends360how to become proactive vsreactive with
the weather in every phase of our business - how much inventory to buy, where to allocate
more/less, when to run weather-optimized advertising and marketing campaigns -.
Last year, the forecasting report from The Weathertrends360 indicated that the temperatures
from November 2015 to March 2016 are expected to be the 2nd warmest of the past 14 years
and the warmest in 4 years in the U.S. and Canada, except the Southwest where frequent rain
and cloud cover can keep daytime temps cooler. According to that, we’ve made a decision to
allocate less budget for winter coats, and more budget for the other departments such as my
department, Dresses, which was one of the most profitable departments in the store as sales
reached $850,675 for the August- January season 2015-16.
Here are some predictions from The Weathertrends360 for the year ahead:
o The 2016 Atlantic hurricaneseason will bemuch more activewith very likely thefirstMajor (cat3)
land-falling hurricane in over 10 years. The hurricane drought will finally end (Florida biggest
threat).
o A moderate to severe drought will encompass a large area from Montana to Indiana into the
Middle Atlantic States by summer 2016.
o Corn prices will soar to $6.50+ in summer 2016.
o Q4 2015 and Q1 2016 U.S. gross domestic product will get a +2% bounce due to the warmer
weather, despite billions in damage to homes and infrastructure out West.
o El Niño collapses in 2016 with Weather Trends International expectinga strongLa Niña winter next
year (2016-2017) - a return to frigid conditions;
o Winter 2016-2017 will be epic across much of the Northern Hemisphere with cold and snow as a
major La Niña develops and the 30-year PacificDecadal Oscillation Cycle(PDO) plummets back into
the cold phases.
Budget Decision
Basedon markettrendsand the factors examinedabove,ourmanagementdecidedtoallocate a
good budget for winter items for the next Fall/Winter season especially for winter coats
department in order to increase sales opportunities and satisfy the consumer demand we are
expecting. My department will get slightly less budget than what was allocated last year;

therefore,thesaleswilldecreaseby2.43%,andsalesgoal willbe $830,000 forthe August- January
2016/17 season.
In mypointof view,by examiningthe economicandweatherchanges,Iamexpectingconsumers
tospendmoneyoneveningandholidaydressesmorethanlastyear.Iwillconsiderthisprojection
when making my assortment planning decisions in order to dedicate adequate resources to
buying merchandise, and put the business in the best position to make profit.

SIX-MONTH MERCHANDISE PLAN
BUDGET PLAN
DepartmentName: WomenDresses Season: F/W 2016/17
Buyer: Fatima-ZahraYassin
SalesDecrease: -2.43% PlannedSales: $830,000
Reductions: 20% PlannedReductions: $166,000
Initial Markup: 55%
PlannedPurchasesatCost: $425,491 PlannedPurchasesatRetail: $945,536
FALL/WINTER AUGUST SEPTENBER OCTOBER NOVEMBER DECEMBER JANUARY
SEASON
TOTAL
SALES $ Plan 182,600 174,300 157,700 132,800 83,000 99,600 830,000
% to
Sales 22% 21% 19% 16% 10% 12% 100%
STOCK/SALES
RATIO Plan 1.9 2.1 1.9 2.4 3.0 2.5
BOM STOCK $ Plan 346,940 366,030 299,630 318,720 249,000 249,000
EOM STOCK $ Plan 366,030 299,630 318,720 249,000 249,000 296,476
RUDUCTIONS Plan 16,600 16,600 24,900 33,200 16,600 58,100 166,000
% to
Sales 10% 10% 15% 20% 10% 35% 100%
PURCHASES $ Plan 218,290 124,500 201,690 96,280 99,600 205,176 945,536
(RETAIL)
PURCHASES $ Plan 98,230.50 56,025.00 90,760.50 43,326.00 44,820.00 92,329.20 425,491
(COST)

MERCHANDISE ASSORTMENT PLAN
CLASSIFICATION
Based on past years sales records, the evening dress was always a big seller in our
Mendocino stores, followed by the day dress, then the holiday dress; and by analyzing the
factors forecasted before, I am expecting less demand for day dresses next year due to the
cold weather. Our customer will still need it, but she will use it less than past years, and
wear a pair of pants for work in the cold snowy days. Therefore, I have decided to decrease
the allocation percentage for the day dress this year by 5%, and distribute it as: 4% more
for the evening dress and 1% more for the holiday dress.
Here are the allocations for women’s dresses for the season Fall/Winter 2016-17
Classification % of Assortment
The EveningDress 54%
The Day Dress 30%
The HolidayDress 16%
Total 100%
SUB-CLASSIFICATION
The followingsub-classificationsare basedonpastyear’ssalesrecordsandthe Fall/Winter
2016-17 trend forecast.
All the sizesare distributedbasedonpastrecords sales.

Sub-classification- The Evening Dress % of Assortment: 54%
PlannedPurchases at Retail: $ 510,589.44 PlannedPurchases at Cost: $ 229,765.14
Our customeris a careerorientedandforward-thinkingwoman;she likestoshow hershoulders
because she’sveryconfidentandstrong,thereforewe willofferherthe RacerNecklinedress,and
the allocationpercentage foritwouldbe 45%.Mendocinogirl isalsoinnovative andfashionable,
so we will suggestforherthe One is EnoughDress,and the allocationpercentage foritwouldbe
20%. The rest,35%, will be allocatedforthe HighNeckDress,whichwastestedthisyearandhad
a good success with our customer.
The colors would be Black, dark espresso, Indiana blue, drawing room red, and sand stone. The
selected colors are based on the trend forecast, adding the black color as it’s always needed by
our customers.
Silhouettes % of
Assortment
PlannedPurchases at Retail PlannedPurchases at Cost
HighNeckDress 35% $ 178,706.30 $ 80,417.80
One isEnough Dress 20% $ 102,117.89 $ 45,953.03
Racer Neckline Dress 45% $ 229,765.25 $ 103,394.31
Total 100% $ 510,589.44 $ 229,765.14
Colours % of Assortment
Black 30%
Dark Espresso 25%
IndianaBlue 15%
DrawingRoomRed 20%
Sand Stone 10%
Total 100%

Sizes % of Assortment
X-Small 20%
Small 25%
Medium 25%
Large 15%
X-Large 15%
Total 100%

Sub-classification- The Day Dress % of Assortment: 30%
The allocationsare mainlybasedonpastyearssales.I’ve onlyincreasedthe allocationof the Knit
Dressby 10%, taking5% fromShortSleevesDress,and5% fromthe Casual Maxi Dress.Againthis
decision is based on next year weather conditions that were forecasted which will create more
demand for knit dresses, and I want to make sure that our stores are ready to satisfy our
customers’ wants and needs.
Colors for this classification of dresses would be black, intense blue, canyon rose, and dark
marron.Thisisagainbasedonpastyearssalesrecordsandthe trendforecastfornextFall/Winter
season. I will be allocating 40% of dresses in this category in black, and the rest, 60%, will be
distributed evenly between the trendy colors of the season.
Silhouettes % of Assortment PlannedPurchases at Retail PlannedPurchases at Cost
Short SleevesDress 40% $ 113,464.32 $ 51,058.92
Long SleevesDress 25% $ 70,915.20 $ 31,911.83
KnitDress 20% $ 56,732.16 $ 25,529.46
Casual Maxi Dress 15% $ 42,549.12 $ 19,147.10
Total 100% $ 283,660.80 $ 127,647.30
Black 40%
Intense Blue 20%
CanyonRose 20%
Dark Marron 20%
Total 100%

Sub-classification- The Holiday Dress % of Assortment: 16%
For the holidaydress,we alwaysgowithtwosub-classificationsbasedonourcustomerdemand:
short 70% and long dresses 30%.
We will offerthe holidaydressinfivecolorstogive ourcustomerplentyof choicestochoose and
pick from. Our customer usually gets more than one holiday dress per season, and we want to
make sure she findsabroadassortmentof stylesinourstorestopickheroutfitsforallherevents.
We will provide her with black, gold moss, tomato red, Egyptian blue, and stone grey.
Silhouettes % of Assortment PlannedPurchases at Retail PlannedPurchases at Cost
Short Dress 70% $ 105,900.03 $ 47,654.99
Long Dress 30% $ 45,385.73 $ 20,423.57
Total 100% $ 151,285.76 $ 68,078.56
Black 30%
GoldMoss 20%
Tomato Red 20%
EgyptianBlue 15%
Stone Grey 15%
Total 100%

Sizes % of Assortment
X-Small 15%
Small 15%
Medium 30%
Large 20%
X-Large 20%
Total 100%

Resources:
https://www.mendocino.ca
https://www. Guess.ca
https://www.mformendocino.ca/about-us#sthash.OC4YL8nF.dpuf
https://en.wikipedia.org/wiki/Global_city
http://www.instyle.com
http://www.pinkstudio.nl
http://www.thechicfashionista.com
http://wearesodroee.com
http://www.conferenceboard.ca/e-library
www.WGSN.com
www.weathertrends360.com
2011CensusPopulationbyAgeGroupandWard.xlsx
The Why of the Buy: ConsumerBehaviorandFashionMarketing,by PatriciaMinkRath,Stefani
Bay, PennyGill,RichardPetrizzi

Case Study- Mendocino by FZ Yassin

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