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![Market Trend Analysis and Considerations
Niketown SF Women’s Running Apparel Department Analysis & Considerations
By Meghan Fuller 2. Psychographic Analysis: Population
In order to complete an in depth understanding of the San Francisco County, California population, information
concerning how the population lives, how they spend their time and money, what activities they pursue, and their attitudes
1. Demographic Analysis: Population and opinions about the world they live in needs to be collected. These variables will further aid in the development of how
to properly serve the Niketown Women’s Running Apparel customer.
Niketown is located in San Francisco, CA and serves the San Francisco County population. In order to better serve the
Niketown Women’s Running Apparel customer base and maximize profits, a complete and thorough understanding of the Using SRDS.com the San Francisco County, CA population can be further analyzed and described as follows:
geographic region and its population needs to be completed. The information for the San Francisco County population =3&'3#-"63$F3))$F(830.$-*$
demographics was compiled using information from the US Census Bureau, and is described in Table 1.1. =3&'3#-"63$7*&3$F(830.$-*$="&-('(D"-3$ ="&-('(D"-3$(#$-@"#$-@3$E3:"(#(#6$
F(13)-.03$G(-03$ (#$-@"#$-@3$E3:"(#(#6$H!$=*D,0"-(*#$ H!$=*D,0"-(*#$
Table 1.1 =).'@*6&"D@(')I& & &
!"#$%&"#'()'*$+*,#-./$+"0(1*&#("$ I+#4L4B#4;&*+&#A4&$L#B& G17& &
23#43&$"#4$563$ Z*O4&#"&B#$+;&")#&*+&$&JL"[;& G.7& &
7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ >4%D&"+&9$=$*+4B&#"&O44(&*+M"L94;& G-7& &
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3$%4& 0-,/-1.& .-567& 'L4M4L&B(4J*$%#D&B#"L4&]^J&"M&49(%"D44&O+"[%4;=4& HH7& &
849$%4& 2:6/2:,& 0:527& <%[$DB&%""O&M"L&]L$+;&+$94& .7& &
34;*$+&<=4& 2,5.& && F(13)-.03$+"-36*&.I$5DD"&30$J$K3L30&.$ & &
<=4&>$+=4&?@*=A4B#&C4+B*#DEF& && && U);=4#&$%%"[B&#"&])D&;4B*=+4L&J%"#A4B& .G7& &
<=4B&G.&#"&20& H16/:00& G-5:7& Z*O4&#"&O44(&)(&[*#A&#A4&%$#4B#&M$BA*"+B& 0-7& &
<=4B&2.&#"&00& H20/6:6& H1567& 8*LB#&$9"+=&ML*4+;B&#"&#LD&+4[&B#D%4B& 2,7& &
<=4B&0.&#"&..& H-:/1,1& H2517& 8)+J#*"+&*B&9"B#&*9("L#$+#&M$J#"L&*+&J%"#A4B& & 07&
9#'*:3$>?*,)3@*04A$ F(13)-.03$+"-36*&.I$%**4$J$M3N3&"63$ & &
7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ !LD&#"&4$#&=")L94#&M"";&[A4+4R4L&("BB*]%4& 2-7& &
!"#$%&@")B4A"%;B& 221/-HG& && _B)$%%D&"+%D&B+$JOB&"+&A4$%#AD&M"";& H:7& &
@")B4A"%;&I+J"94&?@*=A4B#&C4+B*#DEF& && && X)#L*#*"+$%&R$%)4&9"B#&*9("L#$+#&*+&M"";&4$#4+&& HG7& &
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34;*$+&@")B4A"%;&I+J"94&& K6H/60.&& && T"&]*JDJ%*+=& H,7& &
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B4,'"-(*#$
7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ The psychographic analysis indicated the San Francisco County population is a liberal group, interested in the arts
'"()%$#*"+&G.&P4$LB&$+;&QR4L& 1G-/-H-& && and culture. They like to “stand out in a crowd”, and be noticed. They shop from specialty stores and appreciate a high
@*=A&SJA""%&TL$;)$#4& ,,/-H:& H05G7& level of employee knowledge in those stores. The population is concerned with style and fashion, and prefers
U$JA4%"LVB&C4=L44& H:0/.H-& 2H507& designer/brand labels. They budget for designer items, and as indicated by the income levels the population can support
TL$;)$#4&"L&'L"M4BB*"+$%&C4=L44& HG-/6:G& H:5.7& high-end retailers. This population is more likely to be the first among their friends and social groups to try new styles,
C'',D"-(*#$ essentially making them “trend setters”. They lead active lifestyles, and incorporate various sport and leisure activities
7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ into their routines. The combination of sport related activities and the fact that they are more likely to snack on healthy
W9(%"D4;&'"()%$#*"+&H1&P4$LB&$+;&QR4L& 001/11.& && foods where nutritional value is essential, suggests they are a health conscious society.
3$+$=494+#/&U)B*+4BB/&SJ*4+J4/&$+;&<L#B&QJJ)($#*"+B& GH:/0H.& 0:5H7& According to Claritas.com the top 3 lifestyle groups among the San Francisco County, California population can
S4LR*J4&QJJ)($#*"+B& 6,/:6,& H6567& be classified and described as:
S$%4B&$+;&QMM*J4&QJJ)($#*"+B& H-2/-,:& G25H7& • Money and Brains: Age 45 – 64, homeowners, married with children. They possess a graduate degree, and are
X$#)L$%&>4B")LJ4B/&Y"+B#L)J#*"+/&$+;&3$*+#4+$+J4&QJJ)($#*"+B& H6/1G6& 25:7& employed at a management level. This group can be described as wealthy with sophisticated tastes, and they live in
'L";)J#*"+/&!L$+B("L#$#*"+/&$+;&3$#4L*$%&3"R*+=&QJJ)($#*"+B& G6/..1& 15G7& fashionable homes on small manicured lots.
E"'3$ • Young Digerati: Age 25 – 44, renters and owners, with a varied family mix. They possess a graduate degree, and are
7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ tech-savvy. This group is attracted to trendy neighborhoods with restaurants, bars, and coffee shops. This group is
!"#$%&'"()%$#*"+& ,-./012& && affluent and ethnically diverse.
NA*#4& 0H0/.G0& .H5.7& • Bohemian Mix: Age 55 or younger, primarily renters. They are a progressive mix of young singles, couples, and
U%$JO&"L&<ML*J$+&<94L*J$& 0:/20:& 15H7& families. They lead liberal lifestyles and are early adopters who are quick to check out the latest movies, nightclubs,
<B*$+& G1:/-.-& 22507& laptops, or microbrews. This group is ethnically diverse, with college degrees.
3. Segment Analysis 4. Merchandise Mix Modifications
Customer segments shopping in the Women’s Running Apparel Department, based on the demographic and Niketown is associated with delivering quality, high performing, specialty products; all attributes the San Francisco
psychographic research of the San Francisco County, California population, can be identified and defined into four main County population is looking for. The modifications in the merchandise mix primarily need to be in the areas of size,
segments. color, and price. The healthy lifestyle, high activity level, and race mixture of the demographic suggest and support the
allocation of smaller sizes. The vibrant attitude and demand for style and trends are indicative of inclusion of a color
1. The Hardcore Athlete: Becky assortment beyond the standard black and white. Also, the economic characteristics of the population show that they are
Gender: Female less price sensitive and their budget allows for brand name clothing.
Age: 28 to 38
Income (Individual): $45,000 to $55,000/ year Class 1: Jackets and Hoodies
Education: Bachelor’s degree or higher First, I would increase the class total by 5% to adjust to the seasonal demand for warmer, layering pieces common with
Lifestyle: The Hardcore Athlete eats, sleeps, and trains. Exercise and maintaining a healthy lifestyle are highly important. the transition into Fall. Jackets and Hoodies in the $85.00 price range will be increased to 20%, reducing merchandise at
She participates in sports at a competitive level. She is often training for a marathon or triathlon. When she is not training, the $55.00 price point to 10%. This change is made for two reasons: heavier, more expensive materials are used for the
she still incorporates sport related activities into her lifestyle (commutes via bicycle, walks the dog, goes hiking). Her Fall merchandise, and the higher price point is still in our target customer’s budget. To maintain color trends throughout
schedule as a nurse allows for flexible hours to accommodate her busy lifestyle. She looks for performance and durability the department, an increase in the Red tones will be added, and the lighter colors (White) will be reduced. A change in the
in her apparel, and needs her clothing to be functional and versatile. She will invest in key pieces, and is budget conscious size mix is minor but will be necessary to adjust for the way the styles are worn for fall (layered). An increase in size
with respect to other purchases. Small, with a decrease in size Extra Small will still provide enough sizes for the petite/fit frame of our client, while also
addressing the styling issues.
2. The Trendsetter: Alexandria
Gender: Female Class 2: Tops
Age: 30 to 40 Tops will still remain the highest percentage of merchandise in the department, but with a slight reduction of 5%. The
Income (Individual): $50,000 to $65,000/ year decrease is necessary to improve other classes, and to continue to provide our client with the most complete wardrobe. No
Education: Bachelor’s degree or higher adjustment needs to be made concerning price. Allocation is appropriate, as the higher price point is associated with the
Lifestyle: The Trendsetter appreciates style, and wants to look fashionable even at her most casual. The Trendsetter long sleeve and mock zip performance shirts, all of which are suitable for Fall. Also, reduction in the tops in the $30.00
prefers brand names, and likes the associations about identity made with regard to wearing such labels. She leads an active price range would be a poor decision as our customers like to layer and wear our clothes to the gym indoors where long
lifestyle, where she balances both work and social activities. She works in Public Relations. When she is not working and sleeve styles are not comfortable. The San Francisco County population appreciates color and style; therefore maintaining
entertaining clients, she likes to spend the weekends with her girlfriends. Her workout routines include weekly yoga the vibrant color assortment is essential. Orange will be a dominate color in the Tops classification, outnumbering the
classes, or long runs in the Marina. She is more concerned with style and fit than overall performance. The Trendsetter is previous seasons Red tones, therefore to reflect the change the class color will be changed to Orange from Red. Also, a
less-price sensitive, but is still conscious due to the economic climate. reduction in White tones will reflect the change in season.
3. The Young Mother: Kate Class 3: Pants
Gender: Female I will maintain the class percentage at 15%. The shift in this class will mainly be made in the price range. The full length
Age: 32 to 45 and thermal pants, in the higher price range, represent the increase in merchandise at the $75.00 price point. The decrease
Income (Household): $150,000 to $200,000/ year in the $55.00 price range reflects the decrease in capri styles, not as popular for the Fall season. To account for better sell
Education: Bachelor’s degree through, allocation to small sizes needs to be made, reducing the assortment in size Extra Large. Black has always been
Lifestyle: The Young Mother is a stay at home mom. Her day is spent taking the kids to the park or on play dates, and the highest selling color for Pants, so it will stay at 50%. Pants in the Yellow classification will be introduced to match the
completing other various household chores. Her weekend routine involves meeting girlfriends for coffee and walking, or collections in the department and serve the style/trend conscious consumer in the area.
going to pilates class. She shops at Whole Foods Market, and prefers organic products. She prefers designer clothes and
her budget allows her to buy them. Price is not an issue. She looks for style and function, as she is often on the go. She Class 4: Shorts
takes fashion cues from magazines and the women in her social groups. She will update her wardrobe seasonally to Shorts will only be decreased by 5%. Even though we are transitioning into Fall, this style still remains at the basis of
incorporate new trends. Her family travels to Palm Springs for long weekend getaways, and takes at least one major every consumer’s workout wardrobe. An increase in the higher price range will be made because not only are shorts
vacation a year. always in demand, but the sell through at a higher price point will improve profits, and we know from research our
consumers budget will allow for this change. Size allocation is appropriate. All color pallets are represented and minor
4. The Baby Boomer: Peggy changes were made based on season, trends, and how merchandise could be paired through each classification.
Gender: Female
Age: 50 to 60 Class 5: Tank Tops
Income (Household): $100,000 to $150,000/ year Despite the movement towards more fall merchandise throughout the department, an increase in Tank Tops should be
Education: Bachelor’s degree made because of consumer demand. Our customer leads an active lifestyle, and likes to layer their apparel. The sport
Lifestyle: The Baby Boomer is entering into retirement and is working less. She now has more time to participate in performance tanks compliment the Jackets and Hoodies, and they are appropriate for the many activities our customer is
hobbies and pursue new activities. She is active in her community and is a member of the San Francisco Museum of participating in (yoga, pilates, running). To test to see if the department would benefit from an increase in this
Modern Art. She enjoys travel, and is in the process of planning travel excursions to South America and Europe. Her classification, 5% will be a safe addition. More specifically, the sport tanks in the $55.00 price range will be introduced.
husband also leads and active lifestyle, where sports and leisure are equally important. Together they play golf and tennis, Adding a neutral color, and a burst of color with this seasons popular Orange tones will best serve the style needs of the
and in the winter they go cross-country skiing. Style, function, and durability are all important purchasing considerations. target market in this classification.
Versatility will become increasingly more important as she begins to travel. She will invest in core pieces, and add on new
styles seasonally to update the basics. Price is not an issue, as long as it translates to quality.
10](https://image.slidesharecdn.com/meghanfullerportfolio-120926154151-phpapp02/85/Meghan-Fuller-Portfolio-10-320.jpg)
![Sample Purchase Order
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Buyer's Signature: Meghan Fuller
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Buyer's Signature: Meghan Fuller
14](https://image.slidesharecdn.com/meghanfullerportfolio-120926154151-phpapp02/85/Meghan-Fuller-Portfolio-14-320.jpg)
![Preview Business Proposal and Target Market Research
2 SM2 by Stella McCartney 2. Collection
SM Brand and Store Development: Identifying the Target Market
By Meghan Fuller
The Stella McCartney design house will evolve beginning Fall/Winter 2013 with the launch of: SM2.
2.1 SM2
! SM2 is an activewear collection for Men, Women, and Children. Inspired by the new reality,
SM2 will support the demands of everyday life by seamlessly blending the worlds of sport and luxury.
1. Background
By pairing performance and sophistication, both elegance and comfort will be emphasized.
1.1 Stella McCartney
British Fashion designer, Stella McCartney is best known for her sharp, simple, feminine and
2.2 Objectives
wearable day brand. Her interest in fashion developed at the early age of 13, when she began designing
The introduction of SM2 will provide important benefits for the Stella McCartney design house.
and making her own clothes. Three years later, she had an internship with Chrisian Lacroix.
The SM2 label will work to achieve the following objectives:
McCartney completed her education at the prestigious London school, Central Saint Martin’s College
• Create a brand that is innovative and easy to participate with.
of Art and Design. She was appointed creative director of the Parisian fashion house Chloe in 1997. In
2001, she teamed up with the Gucci Group to develop her own label as a global luxury line. The same • Engage loyal consumers, and cultivate new customers:
year she debuted her collection at Paris Fashion Week, where her father Sir Paul McCartney sat in the ! Reach desired market segments, and grow relationship with the contemporary market
audience. In 2004 she established a long-term partnership with Adidas, and created the collection through proper branding and merchandising strategies.
Simply Adidas by Stella McCartney. Today the collection has evolved into a wide range of sportswear ! Stella McCartney Design House: opportunity to design Men’s Sportswear, allowing for
including, winter sports, golf, tennis and yoga clothing. More recently, she designed clothes for an easier future entrance into the Men’s market segment for the Stella McCartney
Madonna’s Revolution tour. design house.
Stella McCartney operates 23 freestanding stores as of 2012. She is a vegetarian and tremendous ! Leverage relationship with Adidas to support line that merges sport and fashion.
supporter of animal rights. She never utilizes fur or leather in any of her designs. In March 2012, she • Compliment and expand current assortment mix:
introduced a Sportswear line that was designed specifically for the British Olympic team. ! Increase activewear category by introducing more fashion items into the Men’s,
Women’s, and Children’s classifications.
1.2 SM2 • Participate with current trends and fashions.
Environmental and ethical considerations are the guiding force behind all decisions, in both the
professional and personal world of Stella McCartney. Sustainable and ethical practices are highly
important, and influence the operations, design, and future of Stella McCartney. The creative vision
behind SM2 came about naturally, as Stella McCartney is always looking to improve its carbon
footprint. Green living, health and wellness, and sustainable practices are more prevalent in society.
The mindset is shifting towards new directions, where the individual is seeking truth, demanding
change, and not afraid to challenge reality. The concept of New Reality embraces an organic attitude.
SM2 is here to fashion the “New Reality” and support the beliefs that have always been true to Stella
McCartney.
3. Demographic Analysis: Population Table 3.1 Continued:
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- 1. Meghan Fuller FASHION INSTITUTEOF DESIGN & MERCHANDISING PROFESSIONAL PORTFOLIO
- 2. Meghan Fuller 795 SW83rd Ave Portland, OR 97225 September 26, 2012 To Whom It May Concern: My name is Meghan Fuller, and I am a recent graduate of the Fashion Institute of Design and Merchandising. I have spent the last year completing the Professional Designation Merchandise Marketing program. I am actively interested in pursuing a career in the areas of buying, merchandising and allocation, customer relationship management, and brand management. I am now at a point in my career where I would like to contribute to the growth of business, but from a corporate level. Through my education and experience with FIDM I have developed a new set of hard skills, and expanded my network of contacts. FIDM and its many opportunities have taught me to be goal-oriented, self-directed, resourceful and energetic. I look forward to the opportunity to apply these attributes and excel in the demands of the retail industry. My previous successes in the festival and event management industry and my experience in retail provide me with the skill set necessary for positions in the Merchandise Marketing career paths. Having worked in the event industry for over five years I have become accustomed to working in a challenging, fast paced environment. I have learned that this environment requires extra efforts to see a project to completion, and that time management is key. As a result of those lessons, I have successfully been able to balance my work in the festival and event industry with school and other full time work. My participation, as a sales associate, specialist, vendor, manager, and student, have enabled me to appreciate the many aspects of a business, and in turn allows me the capability to more effectively understand and relate to the needs of each party. I would be grateful for an opportunity to bring my experience and dedication to the retail industry. Thank you for taking the time to review my Portfolio. If you have any further questions regarding my resume or portfolio, please feel free to contact me by phone or via e-mail. Sincerely, /l%t*,t"{ufure Meghan Fuller Enc.
- 3. MEGHAN FULLER 795 SW 83rd Ave • Portland, OR 97225 • (503) 381-2007 • meghanrosefuller@gmail.com PROFILE Highly motivated professional with nine years of experience in the festival and event management industry, and four years of sales experience in the luxury retail industry. Strong planning and coordination skills paired with keen ability to solve problems in fast-paced environments. Excellent communication skills, effective follow-through, and proven commitment to providing positive customer and client service. EDUCATION Associate of Arts, Fashion Institute of Design and Merchandising, San Francisco, CA September 2012 Professional Designation program, Merchandise Marketing concentration, Cumulative GPA: 4.0 Bachelor of Science in Business Administration, University of Oregon, Eugene, OR September 2006 Sports Business and Marketing concentration, Charles H. Lundquist College of Business La Trobe University, Melbourne, Australia, July – December 2005 EXPERIENCE Ice Cream Booth General Manager, The Waterfront Blues Festival, Portland, OR Summers 2003 – Present • Manage two high volume ice cream booths over four day time period • Fundraise for the Oregon Food Bank, raising net donations of $90,000 over nine years • Hire and train 20 employees each year by teaching set up, operations, and break down duties • Secure Health and Food Handlers Permits at the Multnomah County Health Department • Establish and manage a budget of $30,000 • Order and obtain $15,000 worth of supplies by working with outside suppliers and distributors Sales Consultant, BCBG Maxazria Specialist, Saks Fifth Avenue, Portland, OR September 2006 – July 2010 • Meet individual monthly sales goal of $30,000 • Design visual displays and merchandise floor to increase sales for selected products • Monitor sales of products to identify top selling merchandise from poor performers • Submit monthly sales reports to vendor • Educate sales associates on product line through seasonal seminars to improve selling strategies • Build personal client book through appointment selling • Respond to customer complaints in an efficient manner and involved management as needed Wine Judging Assistant, The Oregon State Fair, Salem, OR June 2006 – September 2006 • Organized over 300 amateur and professional wine submissions for wine competition and tasting event • Collaborated with the OSF Sponsorship Coordinator to develop a sponsorship packet for the OSF Wine Department • Prepared competition results for press release and updated wine awards booklet • Met and established a strong working relationship with the Oregon Wine Board • Assisted wineries and caterers during wine awards celebration for move-in, event hours, and clean up Marketing Intern, The Portland Rose Festival Foundation, Portland, OR March 2005 – June 2005 • Coordinated and managed merchandise sales at all PRFF sanctioned events • Designed spreadsheet to accurately track sales and inventory of merchandise • Planned members-only VIP Cruise for 350 guests on the Portland Spirit • Designed invitations, ordered decorations and collaborated with the Portland Sprit staff on activities • Filled souvenir pin board orders with retailers in the Portland metropolitan area • Organized and delivered benefits package for membership and sponsors ACTIVITIES • Premier Marketing Group, Fashion Institue of Design and Merchandising, Member, January 2012 - Present • Chi Omega National Sorority, Psi Alpha Chapter, University of Oregon, Personnel Chair & Member, October 2002 - Present • Festival & Event Management Workshop and Certificate Program, University of Oregon, October 2002 – May 2006 SKILLS Proficiency in Microsoft Word, Excel, PowerPoint, Access and Adobe InDesign
- 4. Executive Summary The following portfolio highlights the key areas of study, with the learning outcomes and skills I have developed as a result of my education. Each subject matter was properly learned through classroom lectures and completion of projects. Presented are highlights, excerpts, and samples from key projects that facilitated my understanding of the following subject matters: — Buying Strategies — Branding Strategies — The Retail Environment & Merchandising Strategies — Trend Forecasting My participation in Internship Opportunities enhanced my education, and contributed to the overall development of my own personal Best Practices. Projects in their entirety and in original or digital format are available upon request. 4
- 5. Table Of Contents 1.Buying Strategies………………………………………………. 6 • Outcomes and Skills…………………………………………………………. 7 • Niketown Women’s Running Apparel Department Analysis • and considerations: • Power Point Presentation………………………………………….. 7 • Market Trend Analysis & Considerations……………………. 10 • Sample Excel Spreadsheets……………………………………….. 12 • Sample Purchase Order…………………………………………….. 14 2. Branding Strategies……………………………................. 15 • Outcomes and Skills…………………………………………………………. 16 • Case Study: TOMS Brand Audit and Review……………………….. 16 3. The Retail Environment & Merchandising Strategies………………………………………………………. 19 • Outcomes and Skills………………………………………………………… 20 • Case Study: The GAP……........................................................... 20 4. Trend Forecasting……………………………................... 23 • Outcomes and Skills………………………………………………………… 24 • Trend Board……………………………………………………………………. 24 • Trend Board Layouts……………………………………………………….. 25 • Business Proposal & Target Market Research…………………….. 28 5. Internship…………………………………………….............. 30 6. Best Practices…………………………………………………… 32 5
- 6. Buying Strategies The fundamentals of retail math were learned through activities where mathematical applications were applied to retail situations. A complete seasonal merchandising plan incorporating a customer profile, assortment plan, financial plan, and a gross margin projection, were developed. Evaluation of sales, profitability performance, and management, were achieved through application of computer generated reports, where the buying experience was simulated. Profit maximization techniques, vendor negotiations, purchasing terms, discounts, and open to buy management were also learned. KEY PROJECT Niketown Women’s Running Apparel Department Analysis and Considerations Featured: § Power Point Presentation § Market Trend Analysis and Considerations § Sample from Excel workbook: 6 Month Sales Plan, Assortment Plan, and Open to Buy Analysis § Sample Purchase Order 6
- 7. Power Point Presentation Outcomes & Skills • Analyze demographic and psychographic data to develop a comprehensive customer analysis • Demonstrate strong research skills through the analysis of current business and market trends by identifying threats and opportunities to the NIKETOWN SAN FRANCISCO business Women’s Running Apparel Department Analysis Presented By Meghan Fuller • Develop analytical skills by formulating a 6-month merchandise financial plan • Complete an assortment plan based upon the financial plan “ *IF YOU HAVE A BODY, YOU ARE AN ATHLETE ” – Bill Bowerman, co-founder of Nike and department analysis • Evaluate the impact of planning decisions by completing a detailed ! NIKE, Inc. is the world's leading innovator, operating statement for marketer, and distributor of authentic athletic designated planning period footwear, apparel, equipment and accessories. • Calculate Open to Buy, Gross Margin Return on Inventory, Cash Discounts, and complete a purchase order • Calculate closing book inventory and determine overage/shortages 7
- 8. Market Segment Analysis Women’s Running Apparel The Hardcore Athlete: Becky The Trendsetter: Alexandria Gender: Female Gender: Female NIKETOWN: the company's Age: 28 to 38 Age: 30 to 40 premiere retail space for Income (Individual): $45,000 to $55,000/ Income (Individual): $50,000 to $65,000/ year year showcasing innovative products Education: Bachelor’s degree or higher Education: Bachelor’s degree or higher and deepening Nike's connection to consumers. NIKETOWN San Francisco The Young Mother: Kate The Baby Boomer: Peggy 278 Post St Gender: Female Gender: Female San Francisco, CA 9410 Age: 32 to 45 Age: 50 to 60 Income (Household): $150,000 to Income (Household): $100,000 to Department: Women’s Running Apparel $200,000/ year $150,000/ year Education: Bachelor’s degree Education: Bachelor’s degree S.W.O.T. Analysis Merchandise Mix Brand, Store, & Department Women’s Running Apparel STRENGTHS WEAKNESSES • Market power: ability to drive innovation • Collaborations have not trended into the at every level - brand, product, retail, area of “designer” collaborations operations, events, and communication. • Negative press concerning supply Chain • Consumer engagement issues • Skilled at taking digital technology and • Moderate inventory turnover pace Jackets/Hoodies Tops Pants Shorts Tank Tops advancing it – NIKE+ platform $55.00 - $95.00 $30.00 - $60.00 $55.00 - $75.00 $30.00 - $55.00 $30.00 - $55.00 Merchandise mix modifications include: OPPORTUNITIES THREATS ! Color: respond to trends through added color options, while • Runway fashions are incorporating • Adidas Originals has teamed up with the retailer Opening Ceremony for a maintaining balance with neutrals in key product SKU’s athletic influences into their designs • Fitness communities are growing, as capsule collection influenced by the ! Size: Increase in smaller sizes, with wardrobing and styling issue traditional means of exercise are London Olympics for Fall/Winter 2012 considerations evolving, changing the consumers • Competition growing as fast fashion ! Allocation: Increase in Tank Top classification to balance out the mindset retailers are broadening assortment mix styles among the assortment mix with activewear 8
- 9. Six Month SalesPlan !"#$%&'()*&+,#-& !! !! ./0& !! 1,2& !! 345& !! 678& !! 9,4& !! :#$& !! !! !! '75#"& .45/#"&;#-<=7>$*& Private Label Program "#$%!&'()*!+)',-! !./01%2!! !./03%4!! !./56%/!! !.401%5!! !./47%2!! !./27%6!! !.08959%6!! .! :! Women’s Running Apparel +;+!<=>'! 1%2! 5%2! 9%6! 4%1! 9%/! 1%1!!! !.9/%3!! 09%2:! +=?#@! !.45%6!! !.94%1!! !.5/%3!! !.37%0!! !.51%0!! !.40%4!! !.421%3!! 1#",*&?(#$0,&@& +=?#@!:!;')=?! 00%7:! 09%/:! 07%/:! /3%9:! 03%4:! 02%/:! 022%2:! 1%5:! The Private Label Collection is a clothing line that will support the &=A-B'C(@! !.05%7!! !.7%0!! !.4%1!! !.4%/!! !.00%0!! !./%0!! !.9/%3!! .8,-#0,&1574<& &=A-B'C(@!:!;')=?! 41%1:! 01%7:! 3%5:! 7%5:! /5%6:! 5%2:! 022%2:!DEF! ! demands of everyday life by seamlessly blending the worlds of DGA,*=@#@! !.54%6!! !.60%1!! !.004%7!! !.02%3!! !.43%0!! !.91%4!! !.459%9!! !./46%9!! !! sport and fashion. By pairing performance and design, both style H(B!&'()*!+)',-! !./03%4!! !./56%/!! !.401%5!! !./47%2!! !./27%6!! !.//2%3!! !! '/-$78,-& !! !! !! !! !! !! !! !! !! DEF! ! and comfort will be emphasized. IG)GA#!+=?#@! A,B& & && !! !! !! !! 0%4!!! !! !.9/%27!!!! && !! !! !! !! !! !! The primary objectives this program will achieve are: +;+!<=>'! 5%/!!! && !! !! !! !! ;#-</2&@& !! ! To stimulate sales growth across the Women’s divisions Planned increase of 6.5% for Fall 2012 as a result of current business trends and ! Compliment and expand current assortment mix market trend analysis. ! Engage loyal consumers, and cultivate new customers ! ECONOMIC: Easier lending standards expanding consumer credit, ! Participate with current trends and fashions unemployment levels at their lowest in three years, and a positive consumer ! Offer products at a competitive price confidence index ! SOCIAL: Launch of NikeFuel Band in response to growing interest of health and " The line will launch Fall 2012. Receipts will arrive August 2012, with a second wellness among consumers delivery in October 2012. ! PROMOTIONAL: New contract with the NFL- season kickoff September 2012 Private Label Program Private Label Program Sample Line Sheet Sample Color & Fabric Swatches Niketown, Powell St. Fall 2012 Private Label Merchandise Assortment ()*+,-./0,0123)4156.(7)869-:.;01.3),,.'<$'.!15=)8-.")4-,.>::018*-?8 August/October Delivery August/October Delivery (8M,-.N !"#%%$ !"#%$ !"#%' !"#%& !"#!$ /0,01.N >CDI$< >CDI$< FGHI$< FJKI KJH$< @>A$ >CFDI$< >CFDI$< FG!EI K>(!$< !BC$ Description Style Cost Retail Description Style Cost Retail Vest Tank PL-TT1 $6.30 $18.00 Jogger Pant PL-P1 $12.25 $18.00 GFKG$< >C!I >C!I FK>(!$< D"E' August/October Delivery August/October Delivery October Delivery >CFI >CFI F@L"%$< D"E$< FDI$< Description Style Cost Retail Description Style Cost Retail Description Style Cost Retail Couture Tee PL-T1 $9.10 $26.00 Fabric Top PL-T2 $9.80 $28.00 Draped Top PL-T3 $9.80 $28.00 Store Promotions Promotion Women’s Running Apparel Objectives ! Measure in-store traffic ! The promotional coupon will be NIKETOWN invites ! Promote specific distributed through all race NWM2012 runners to enjoy participants registration packets merchandise to improve 20% off your purchase of all ! Select merchandise will be on Class % to Total Department: October sell through Women’s regular priced display and available for Jackets and Hoodies, and purchase at the Expotique ! Engage and reward loyal 15% off your purchase October 11th - October 13th 25.00% NIKETOWN SF Jacket/Hoodies storewide. Offer valid in ! 45 Additional coupons will be customers who are not Tops store and online October 11, awarded to @NikeSF twitter Pants 2012 to October 31, 2012. followers who participate in Shorts Tank Tops participating in the race twitter feed “re-tweet and win” contest, scheduled for October 11th, 12th, and 13th 9
- 10. Market Trend Analysisand Considerations Niketown SF Women’s Running Apparel Department Analysis & Considerations By Meghan Fuller 2. Psychographic Analysis: Population In order to complete an in depth understanding of the San Francisco County, California population, information concerning how the population lives, how they spend their time and money, what activities they pursue, and their attitudes 1. Demographic Analysis: Population and opinions about the world they live in needs to be collected. These variables will further aid in the development of how to properly serve the Niketown Women’s Running Apparel customer. Niketown is located in San Francisco, CA and serves the San Francisco County population. In order to better serve the Niketown Women’s Running Apparel customer base and maximize profits, a complete and thorough understanding of the Using SRDS.com the San Francisco County, CA population can be further analyzed and described as follows: geographic region and its population needs to be completed. The information for the San Francisco County population =3&'3#-"63$F3))$F(830.$-*$ demographics was compiled using information from the US Census Bureau, and is described in Table 1.1. =3&'3#-"63$7*&3$F(830.$-*$="&-('(D"-3$ ="&-('(D"-3$(#$-@"#$-@3$E3:"(#(#6$ F(13)-.03$G(-03$ (#$-@"#$-@3$E3:"(#(#6$H!$=*D,0"-(*#$ H!$=*D,0"-(*#$ Table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`"==*+=^L)++*+=& G.7& & KG--/---&"L&3"L4& 26/,.-& HH527& Wa4LJ*B4&M*R4&"L&9"L4&#*94B&$&[44O& GG7& & 34;*$+&@")B4A"%;&I+J"94&& K6H/60.&& && T"&]*JDJ%*+=& H,7& & 34;*$+&I+J"94&M"L&849$%4/&8)%%&!*94&N"LO4L& K.G/,-0&& && W+`"D&4+#4L#$*+*+=&(4"(%4&$#&A"94& HH7& & B4,'"-(*#$ 7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ The psychographic analysis indicated the San Francisco County population is a liberal group, interested in the arts '"()%$#*"+&G.&P4$LB&$+;&QR4L& 1G-/-H-& && and culture. They like to “stand out in a crowd”, and be noticed. They shop from specialty stores and appreciate a high @*=A&SJA""%&TL$;)$#4& ,,/-H:& H05G7& level of employee knowledge in those stores. The population is concerned with style and fashion, and prefers U$JA4%"LVB&C4=L44& H:0/.H-& 2H507& designer/brand labels. They budget for designer items, and as indicated by the income levels the population can support TL$;)$#4&"L&'L"M4BB*"+$%&C4=L44& HG-/6:G& H:5.7& high-end retailers. This population is more likely to be the first among their friends and social groups to try new styles, C'',D"-(*#$ essentially making them “trend setters”. They lead active lifestyles, and incorporate various sport and leisure activities 7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ into their routines. The combination of sport related activities and the fact that they are more likely to snack on healthy W9(%"D4;&'"()%$#*"+&H1&P4$LB&$+;&QR4L& 001/11.& && foods where nutritional value is essential, suggests they are a health conscious society. 3$+$=494+#/&U)B*+4BB/&SJ*4+J4/&$+;&<L#B&QJJ)($#*"+B& GH:/0H.& 0:5H7& According to Claritas.com the top 3 lifestyle groups among the San Francisco County, California population can S4LR*J4&QJJ)($#*"+B& 6,/:6,& H6567& be classified and described as: S$%4B&$+;&QMM*J4&QJJ)($#*"+B& H-2/-,:& G25H7& • Money and Brains: Age 45 – 64, homeowners, married with children. They possess a graduate degree, and are X$#)L$%&>4B")LJ4B/&Y"+B#L)J#*"+/&$+;&3$*+#4+$+J4&QJJ)($#*"+B& H6/1G6& 25:7& employed at a management level. This group can be described as wealthy with sophisticated tastes, and they live in 'L";)J#*"+/&!L$+B("L#$#*"+/&$+;&3$#4L*$%&3"R*+=&QJJ)($#*"+B& G6/..1& 15G7& fashionable homes on small manicured lots. E"'3$ • Young Digerati: Age 25 – 44, renters and owners, with a varied family mix. They possess a graduate degree, and are 7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ tech-savvy. This group is attracted to trendy neighborhoods with restaurants, bars, and coffee shops. This group is !"#$%&'"()%$#*"+& ,-./012& && affluent and ethnically diverse. NA*#4& 0H0/.G0& .H5.7& • Bohemian Mix: Age 55 or younger, primarily renters. They are a progressive mix of young singles, couples, and U%$JO&"L&<ML*J$+&<94L*J$& 0:/20:& 15H7& families. They lead liberal lifestyles and are early adopters who are quick to check out the latest movies, nightclubs, <B*$+& G1:/-.-& 22507& laptops, or microbrews. This group is ethnically diverse, with college degrees. 3. Segment Analysis 4. Merchandise Mix Modifications Customer segments shopping in the Women’s Running Apparel Department, based on the demographic and Niketown is associated with delivering quality, high performing, specialty products; all attributes the San Francisco psychographic research of the San Francisco County, California population, can be identified and defined into four main County population is looking for. The modifications in the merchandise mix primarily need to be in the areas of size, segments. color, and price. The healthy lifestyle, high activity level, and race mixture of the demographic suggest and support the allocation of smaller sizes. The vibrant attitude and demand for style and trends are indicative of inclusion of a color 1. The Hardcore Athlete: Becky assortment beyond the standard black and white. Also, the economic characteristics of the population show that they are Gender: Female less price sensitive and their budget allows for brand name clothing. Age: 28 to 38 Income (Individual): $45,000 to $55,000/ year Class 1: Jackets and Hoodies Education: Bachelor’s degree or higher First, I would increase the class total by 5% to adjust to the seasonal demand for warmer, layering pieces common with Lifestyle: The Hardcore Athlete eats, sleeps, and trains. Exercise and maintaining a healthy lifestyle are highly important. the transition into Fall. Jackets and Hoodies in the $85.00 price range will be increased to 20%, reducing merchandise at She participates in sports at a competitive level. She is often training for a marathon or triathlon. When she is not training, the $55.00 price point to 10%. This change is made for two reasons: heavier, more expensive materials are used for the she still incorporates sport related activities into her lifestyle (commutes via bicycle, walks the dog, goes hiking). Her Fall merchandise, and the higher price point is still in our target customer’s budget. To maintain color trends throughout schedule as a nurse allows for flexible hours to accommodate her busy lifestyle. She looks for performance and durability the department, an increase in the Red tones will be added, and the lighter colors (White) will be reduced. A change in the in her apparel, and needs her clothing to be functional and versatile. She will invest in key pieces, and is budget conscious size mix is minor but will be necessary to adjust for the way the styles are worn for fall (layered). An increase in size with respect to other purchases. Small, with a decrease in size Extra Small will still provide enough sizes for the petite/fit frame of our client, while also addressing the styling issues. 2. The Trendsetter: Alexandria Gender: Female Class 2: Tops Age: 30 to 40 Tops will still remain the highest percentage of merchandise in the department, but with a slight reduction of 5%. The Income (Individual): $50,000 to $65,000/ year decrease is necessary to improve other classes, and to continue to provide our client with the most complete wardrobe. No Education: Bachelor’s degree or higher adjustment needs to be made concerning price. Allocation is appropriate, as the higher price point is associated with the Lifestyle: The Trendsetter appreciates style, and wants to look fashionable even at her most casual. The Trendsetter long sleeve and mock zip performance shirts, all of which are suitable for Fall. Also, reduction in the tops in the $30.00 prefers brand names, and likes the associations about identity made with regard to wearing such labels. She leads an active price range would be a poor decision as our customers like to layer and wear our clothes to the gym indoors where long lifestyle, where she balances both work and social activities. She works in Public Relations. When she is not working and sleeve styles are not comfortable. The San Francisco County population appreciates color and style; therefore maintaining entertaining clients, she likes to spend the weekends with her girlfriends. Her workout routines include weekly yoga the vibrant color assortment is essential. Orange will be a dominate color in the Tops classification, outnumbering the classes, or long runs in the Marina. She is more concerned with style and fit than overall performance. The Trendsetter is previous seasons Red tones, therefore to reflect the change the class color will be changed to Orange from Red. Also, a less-price sensitive, but is still conscious due to the economic climate. reduction in White tones will reflect the change in season. 3. The Young Mother: Kate Class 3: Pants Gender: Female I will maintain the class percentage at 15%. The shift in this class will mainly be made in the price range. The full length Age: 32 to 45 and thermal pants, in the higher price range, represent the increase in merchandise at the $75.00 price point. The decrease Income (Household): $150,000 to $200,000/ year in the $55.00 price range reflects the decrease in capri styles, not as popular for the Fall season. To account for better sell Education: Bachelor’s degree through, allocation to small sizes needs to be made, reducing the assortment in size Extra Large. Black has always been Lifestyle: The Young Mother is a stay at home mom. Her day is spent taking the kids to the park or on play dates, and the highest selling color for Pants, so it will stay at 50%. Pants in the Yellow classification will be introduced to match the completing other various household chores. Her weekend routine involves meeting girlfriends for coffee and walking, or collections in the department and serve the style/trend conscious consumer in the area. going to pilates class. She shops at Whole Foods Market, and prefers organic products. She prefers designer clothes and her budget allows her to buy them. Price is not an issue. She looks for style and function, as she is often on the go. She Class 4: Shorts takes fashion cues from magazines and the women in her social groups. She will update her wardrobe seasonally to Shorts will only be decreased by 5%. Even though we are transitioning into Fall, this style still remains at the basis of incorporate new trends. Her family travels to Palm Springs for long weekend getaways, and takes at least one major every consumer’s workout wardrobe. An increase in the higher price range will be made because not only are shorts vacation a year. always in demand, but the sell through at a higher price point will improve profits, and we know from research our consumers budget will allow for this change. Size allocation is appropriate. All color pallets are represented and minor 4. The Baby Boomer: Peggy changes were made based on season, trends, and how merchandise could be paired through each classification. Gender: Female Age: 50 to 60 Class 5: Tank Tops Income (Household): $100,000 to $150,000/ year Despite the movement towards more fall merchandise throughout the department, an increase in Tank Tops should be Education: Bachelor’s degree made because of consumer demand. Our customer leads an active lifestyle, and likes to layer their apparel. The sport Lifestyle: The Baby Boomer is entering into retirement and is working less. She now has more time to participate in performance tanks compliment the Jackets and Hoodies, and they are appropriate for the many activities our customer is hobbies and pursue new activities. She is active in her community and is a member of the San Francisco Museum of participating in (yoga, pilates, running). To test to see if the department would benefit from an increase in this Modern Art. She enjoys travel, and is in the process of planning travel excursions to South America and Europe. Her classification, 5% will be a safe addition. More specifically, the sport tanks in the $55.00 price range will be introduced. husband also leads and active lifestyle, where sports and leisure are equally important. Together they play golf and tennis, Adding a neutral color, and a burst of color with this seasons popular Orange tones will best serve the style needs of the and in the winter they go cross-country skiing. Style, function, and durability are all important purchasing considerations. target market in this classification. Versatility will become increasingly more important as she begins to travel. She will invest in core pieces, and add on new styles seasonally to update the basics. Price is not an issue, as long as it translates to quality. 10
- 11. 5. Market TrendAnalysis: Nike Women’s Running Apparel Fall 2012 Social Trends WGSN (5 Key Consumer Spending Trends for 2011, Dec. 28, 2010) reports key trends in consumer spending with Factors Opportunities Threats “commsumption” and Co-created Own Brands (COBs) as trend areas. In addition, American Express Spending and Company Sales 1.5% Savings Tracker reports that 76% of consumers will spend more on health/fitness this year, up 6% from 2011 Economic Trends 1.5% (Americanexpress.com, Jan. 12, 2012). Consumers are consuming as communities, as a result of the rise in online Political Factors 1.0% -0.5% shopping and social networking. Also, consumers have the desire for personalization and the opportunity to co-create with Social Trends 0.5% brands. NIKE is active in both areas, as they were innovators in personal customization with NIKE-ID, and continue to Competition 2.0% -1.0% develop a connection with the consumer through levels beyond the product (online Facebook communities, NIKE+, NTC Promotional Plans 1.0% Fashion Trends 0.5% app). As more consumers begin to apply these trends, NIKE has an opportunity to capture this newly engaged market and Total 8.0% -1.5% push them through the company’s brands. There is an opportunity for customers to recognize NIKE as an innovator in this Net Increase/Decrease 6.5% area, since they had an early presence in these trends, further emphasizing their authenticity and credibility. WGSN also found that consumers are demanding and using mobile health applications on smartphones. They predict that by 2015 Current Sales around 500 million consumers will use health-related mobile applications. This indicates a growing concern for the NIKE, Inc. is the worlds leading innovator in athletic footwear, apparel, equipment, and accessories. inclusion of health and wellness, which will influence consumers to add exercise and lead an active lifestyle, which in turn NIKE, Inc. revenue was up 10% to a record $20.9 billion for fiscal year 2011. A strong second quarter was a result of will benefit the NIKE brand. In addition to their catalogue of health inspired app’s, NIKE unveiled the NikeFuel growth in every geography, except Japan, and in all key categories except Action Sports (NIKE, Inc. Second Quarter measurement wristband on January 19, 2012, with limited sales beginning February 22, 2012. MarketWatch reported that Income Statement Review). The combined NIKE, Inc. portfolio proves to be a powerful tool in generating growth. this wristband will change the way people view physical activities, and allow them to upload and connect to the internet, Moving forward in a volatile global economy, leveraging the strengths of the portfolio will be essential in the ability to Facebook, and other online communities. Because NIKE has already been responsive to early consumer interest in mobile manage risk. applications, this launch moves them into another level further developing the 24/7 relationship with the consumer. The The positive trend in growth should continue as a result of future activities, but with many unknown variables in this growing interest of health among consumers will benefit the industry, and the launch of NikeFuel contributes to my challenging economy, I estimate growth, due to sales alone, to be at 1.5%. estimated 0.5% opportunity. 2011 2010 Percent Change Annual Revenue (mill) $20,886 $19,014 10% Competition Quarter 2 Revenue (mill) $5,731 $4,842 18% *Fiscal Year-End: May The 2012 Summer Olympics will be held in London. This monumental event is an opportunity for top sports brands in the industry to showcase their connection to sport and according to WWD big brands like Nike, Adidas, and Puma, are Economic Trends confident their marketing spends will translate into healthy sales. The industry and direct competition will all be using this The US Bureau of Labor Statistics reported a 0.9% decrease in the national jobless rate, from November 2011 to as an opportunity to market to consumers making it a competitive event and potential threat, however the overall tone of December 2011. The US unemployment rate currently stands at 8.5%, with California at 11.1%. Although California is the games, what it represents, and the inspiring spotlight it places on the industry allow me to confidently estimate a 1.5% above the national average, the unemployment rate has seen a 1.4% decrease from December 2010 to December 2011. opportunity. The San Francisco jobless rate fell to 7.6%, which is below the national average, and is considerably less than the rest of Stylesight announced Adidas Originals has teamed up with the retailer Opening Ceremony for a capsule collection the state. The National Retail Federation forecasts a retail industry sales growth of 3.4% in 2012. Growth is derived from influenced by the London Olympics for Fall/Winter 2012. The growing trend in designer collaborations and the consumer credit, employment, and consumer confidence factors. With easier lending standards expanding consumer customers’ responsiveness to this strategy present a possible threat, as this collaboration has the potential to cross over credit, unemployment levels at their lowest in three years, and a positive consumer confidence index, I estimate a 1.0% into current market segments. This presents a 1.0% threat. opportunity for Fall 2012. Lululemon, located a few blocks from NIKEtown SF, is a close competitor. Recent scandal and controversy in their From a global perspective, Women’s Wear Daily (WWD) reports that the European debt crisis will continue to weigh company among employees and products has sparked bad PR for the company, as reported by the Huffington Post in a on the global markets for 2012, and if there is no resolution soon, Greece, Italy, and Spain will face a tough year for November 9, 2011 article. This presents an opportunity to capture their customer. I estimate a 0.5% opportunity. consumer spending, threating a shut down of Europe’s retail business (WWD, 12 for ‘12: The Year’s Hottest Topics, Jan. 9, 2012). However, in Quarter 2, NIKE, Inc. reported an increase in revenues in Western Europe of 2% on a currency- Promotional Plans neutral basis, and Central and Eastern Europe revenues grew 19% on a currency-neutral basis. Positive sales results Reebok’s contract with the NFL is ending after 12 years, and NIKE is taking over the reigns to provide new technology abroad during economic hardship indicate further opportunity for growth for the company. I estimate this to be a 0.5% in the design and performance of the NFL’s jerseys. The New York Times reported that “nearly half of the NFL’s income opportunity. from licensed goods comes from apparel and headwear.” According to the NFL schedule, kickoff to the 2012 season is September 6, 2012. The added publicity and chance to showcase the performance and durability of NIKE goods presents a Political Factors 0.5% opportunity. With an election on the horizon, a heated political atmosphere in Washington D.C. translates into an uneasy The 9th NIKE Women’s Marathon will take place October 14, 2012. NIKE registration information reported a sold out environment. According to WWD, the 2012 presidential race will be particularly concerned with unemployment and race for 2011 with approximately 22,500 participants. The growing popularity of the event, and demand for race entries health care, and other issues facing retailers and the industry (trade and sourcing legislation) will go unanswered (WWD, has increased significantly over the years and presents an opportunity to connect directly with the bay area customer. 12 for ‘12: The Year’s Hottest Topics, Jan. 9, 2012). The confidence in our leaders’ spirit in their ability to forge ahead is Added promotional events and a series of contests will be introduced for the 2012 marathon. The most recent contest not enough; with no actual actionable efforts made in 2012 this leads me to estimate a 0.5% threat. announced was through NIKE+, for registered teams to earn a guaranteed opportunity to purchase a race entry into the According to WWD, January 18, 2012, California Governor Jerry Brown launched a campaign to secure voter approval 2012 marathon, which will be effective January 15th, 2012. Overall, the Marathon creates a 0.5% opportunity. to temporarily increase sales tax by half percent and raise personal income taxes on the wealthy. The increase in personal income taxes would take effect this tax year and last through 2017. WWD continues to report, that retailers are in favor of Fashion Trends this proposal and a recent Public Policy Institute of California survey found that 60% of likely voters favor the governor’s One Spring/Summer 2012 runway trend Harpers Bazar identified was “Sports Authority” where designers such as twin tax increase proposal (WWD, California Governor Pushes for Tax Hike, Jan. 18, 2012). In addition, here in Silicon Alexander Wang, Rag & Bone, and Narciso Rodriguez utilized athletic influences. According to Vogue, Marc Jacobs Valley, the expected “Facebook Effect” and the possibility of hundreds of millions of dollars of additional state revenues even incorporated the trend, by pairing sneakers with skirts, and casual sweatshirts with bottoms that featured lace, sequin, related to Facebook’s IPO’s, also provide an opportunity. Combined, the proposed taxes and the pending Facebook stock or other more elegant materials. The acceptance of athletic styles into the fashion industry introduces a sporty vibe into offerings lead me to estimate a 1.0% opportunity. the consumer marketplace, making this an opportunity for a 0.5% increase. 6. Private Label The Private Label line will be an opportunity to respond to the changes within each area, and continue to progress NIKE represents two of the most powerful forces in any market, innovation and sports. Our brands connect with as an industry leader. The contemporary market segment is the consumer between the age of 18 and 30. This market consumers on all levels in and around sports: physically, culturally and emotionally. Through innovation in technology, segment is commonly referred to as Generation Y, or the Millennials. This market is increasingly important to engage, and the Nike+ platform we are able to connect with the consumer on a 24/7 basis. In order to consistently innovate and because, much like the baby-boomers they will play a crucial role in driving demand and consumer spending over the create momentum that will fuel long-term growth, we will look to our Apparel and Women’s businesses to supply course of the next few decades. Therefore, creating and developing a product line that delivers the right, product, at the additional growth and drive our Sportswear business. The addition of a new Private Label line will enable NIKETOWN to right time, in the right amount, with the right fit, at the right price, with the right communication tactics, to this target develop a strong point of differentiation and continue to build consumer loyalty at the retail level. market is, and will be valuable for long-term growth. The Private Label line will launch with a test group in the San Francisco NIKETOWN, Women’s Running The fashion conscious consumer had previously been underserved as the stores business primarily catered to the Apparel department. Receipts will arrive in August 2012, with a follow up delivery in October 2012. The Private Label sports enthusiast. Not delivering to this market segment presents a huge opportunity for NIKE, as consumer tastes are line is in response to market trends and the continued mission to connect with the consumer and deliver products that meet increasingly gravitating toward contemporary fashions. Additionally, the 18 to 30 year old market accounts for the everyday demands of their life. The primary objectives of this program are: approximately 17% of the U.S. population, or about 50 million people. Introduction of the Private Label line will be the • To stimulate sales growth across the Women’s divisions first step in engaging this market, and evolving the NIKE brand into other areas of the fashion industry. • Deliver new product categories to the current market segment Ridding off of the momentum of the Summer Olympics, August 2012 is the perfect time to launch the Private • Cultivate relationships with additional market segments Label line. The heightened visibility of our brand will increase in-store traffic. Therefore, delivery of this product • Offer products at a competitive price classification will be essential in continuing to cater to consumers’ tastes, and will allow for the maximization of The Spring/Summer 2012 Runways inspired the introduction of Sport Couture into ready to wear collections, of consumer wallet share. The second delivery will hit stores in October, just in time for the NIKE Women’s Marathon, to be which continue to reign as the key trend direction for the season.1 This presentation of athletic inspired style represents the held in San Francisco. This event will attract individuals from all over, and is the perfect time to again introduce the evolving consumer mindset that includes health and wellness, functionality, and “green” living at top of mind. This trend Private Label line to the public. is not likely to dissipate as Stylesight reported on the concept of “Fashletes”, where the worlds of active and fashion coincide to create a fashion mash-up of Chic Activewear. Additionally, the Premiere Vision tradeshow examined this trend and reported it will be translated across all markets. The Private Label line will feature three key items across classifications to aid in the consumers creation of the “Fashletes” look. The assortment will include more fashion styles, with less emphasis on performance, as this line will serve to bridge the gap between athletic wear and streetwear. Sport influences will primarily translate in the design through the materials and colors, whereas the cut and style will be more fashion forward. The price point will be set below the average retail price in each classification, filling the void the current assortment lacks, and allowing for participation among consumers not currently shopping with us because of price. Fashion ready-to-wear clothing, in general, is not widely available among the current assortment mixes. Although, some products can serve multipurpose needs, on average, most of NIKETOWNS clothing is performance driven. By capitalizing on this trend, NIKE is presented with an ideal opportunity to enter into the “fashion” world. The current market segments the NIKETOWN San Francisco Women’s Running Apparel department serves, spans across the age range of 28 to 60. The Private Label line will primarily appeal to the “Trendsetter” market segment, as she appreciates style and fashion the greatest. Introduction of this line will likely strengthen the relationship with her, as currently the assortment mix is underserving her needs. Furthermore, the Private Label line will offer the flexibility to more specifically target other market segments. Upon examination of the industry, our business, and the psychographics of the population, NIKETOWN is currently underserving the contemporary market segment. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 11
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- 15. Brand Strategies The importance of building brand equity within the marketing and business environment was emphasized through the education of brand management strategies, where critical thinking was applied. How to build brand equity and the importance of brand image to the success of a product or business venture was emphasized through understanding of image, concept, trends, and customer motivation. In-depth study of the development of a specific brand was completed with a brand audit. Areas of focus were: brand loyalty, associations, delivery, and perceived quality. KEY PROJECT TOMS Brand Audit and Review Featured: — Sample portion of written case study 15
- 16. TOMS Brand Auditand Review Case Study Outcomes Highlights & Skills • Evaluate the importance, value, and impact of a brand to the success of the individual product, 1. Executive Summary management organization, and business venture The goal of this paper is to provide a case study about TOMS Shoes, Inc. followed by a complete brand audit. We begin by analyzing the business, with a comprehensive brand review. • Analyze the research Next, we look at TOMS market position, with an emphasis on consumer perceptions and associations of the brand. Third, an in depth review of their market segment is paired with a look techniques used to measure at their marketing strategies. Following, we present an industry analysis identifying TOMS and evaluate brand competitors, and the advantages and disadvantages TOMS has with respect to the market. Lastly, awareness, personality, and concluding our research is an in-depth brand audit with a look at the strengths, weaknesses and consumer purchase opportunities associated with the brand. influence The objectives of our research are as follows: • Interpret the factors that • Review the brand elements and their mission establish brand identity, • Define core brand associations and values personality, and positioning • Understand TOMS branding strategies • Recognize the target market, and their connection to the brand • Understand the • Identify competitors, and TOMS market position communication and • Develop a brand audit with recommendations extension strategies that build brand equity, brand loyalty, and global brand leadership • Analyze the strategies used to build different brand 2 types: the Corporate Brand, the Product Brand, and the Personal Brand • Research, design, and develop a brand marketing strategy , with the creation or extension of a brand 16
- 17. 3. Positioning: Analysisof Brand Strengths and Future Potential 6. Brand Audit 3.1. Building Brand Equity Through examining the brand and conducting field research (see Appendix 1, Chart 2: Field To survive in a competitive marketplace a company must build a strong brand. The power of Research Checklist for reference) a complete brand audit can be made. Our research has a brand lies within consumer’s perceptions about what they have learned, experienced, and heard proven to us that TOMS has developed a new business model that has the potential to change the about the brand. Building brand equity requires linking branding strategies with the ways in consumer marketplace. Their marketing strategies have aided in the establishment of strong which the consumer experiences the product. TOMS builds brand equity with customers through brand equity, and have also lead to the development of a substantial customer base and tribe of the development and management of each stage, as represented in the Customer Based Brand supporters. Their brand personality has shined through and has not only made TOMS a unique Equity model: company many want to model, but also one to compete with. Brand Equity In order to accomplish the four steps of brand building (identity, meaning, responses, and relationships) the six brand building blocks need to be established in order to reach brand equity. TOMS has reached the pinnacle of the Customer Based Brand Equity Pyramid, and established brand resonance through development of each stage. Brand Building Blocks: 1. Brand Identity Brand Identity has been established, as TOMS is a brand that is associated with various situations or circumstances. Block 1 Brand Salience: Both depth and breadth of brand awareness have been achieved. TOMS has established themselves as a for profit company working to promote long-term goodwill. Their shoes have become linked with the One for One mantra. They have recently expanded their product line into eyewear. Because TOMS is a giving company and it is widely know that “with every pair you purchase, TOMS will give a pair of shoes to a child in need,” they have increased 9 25 the ways in which the brand comes to mind or can be consumed, making it not only about The various branding tactics used by TOMS has helped them create the six important types of purchasing shoes, but also a way to donate or be charitable. brand building feelings: warmth, fun, excitement, security, social approval, and self-respect. 2. Brand Meaning Block 5 Brand Judgments: TOMS hold a lot of brand credibility among consumers. They are a Brand meaning has been created through the combination of performance needs and imagery market leader in that they are the original innovators of the One for One model. They are associated with TOMS. TOMS associations have contributed to the strong, favorable, and unique trustworthy, and are sensitive to the interests of customers. Also, their ability to interact and characteristics of the brand, which adds to the brand equity. engage with their consumers adds to their brand likability. TOMS is not only considered by Block 2 Brand Imagery: TOMS has taken on a personality of its own, and provides many social socially conscious consumers, but is now a fashionable item, and is among the consideration set needs. The purchase of TOMS products is convenient in that it not only fulfills the need met by of many trendsetters. The advantage TOMS has to offer, mainly through the One for One model, the product, but also, allows the consumer to “do good”. The instant gratification from being able adds to the brands superiority, and sets it above competition. to purchase something and give at the same time, is a competitive advantage for TOMS. 4. Brand Relationships Block 3 Brand Performance: TOMS shoes are popular among urbanites, and are often used as a Brand relationships have been formed at a variety of levels, and the increasing effort among shoe that is comfortable to walk in and convenient to throw on. They are reliable and durable, as consumers to perform active engagements with TOMS proves the resonance among consumers well as an efficient shoe that is priced reasonably for its use. The variety in product styles, colors, has been met. and patterns add to its character. Block 6 Brand Resonance: Brand loyalty is represented not only through repeat purchases, but 3. Brand Responses how consumers seek out more information about TOMS. The blog, Facebook page, and twitter TOMS creates positive responses that favorably impact the consumers association to the accounts are all examples by which consumers seek more information about TOMS. brand. From the logo, that resembles the Argentinian flag, where TOMS shoes were first Additionally, those social networking sites are examples of the attitudinal attachment consumers delivered to children, to the feeling you get when you put on a new pair of shoes, TOMS hits have towards the brand. The most popular posts are pictures featuring consumers wearing their emotions at every level. TOMS. The sense of community evoked through the power of sharing the experiences with Block 4 Brand Feelings: TOMS elicits emotional feelings among customers with response to TOMS has lead to the development of campus movements, and other clubs, where customers their brand. The purchase of TOMS brand immediately initiates feelings. The assortment of unite to help TOMS reach their goals of giving. Also, the “style your sole” parties are becoming marketing programs, and clubs that have stemmed from TOMS, also initiate different feelings. popular trends, and provide another way consumers can enjoy the brand together. 26 27 17
- 18. Brand Marketing Strategies again ties back to the association with the shoes origin, Argentina, and creates impact through TOMS has effectively communicated with their consumers and successfully managed to reminding consumers of the Argentinian lifestyle. Additionally, the use of seasonal colors, and engage new ones. We identified this through their accomplishment of creating brand resonance. materials adds to the creativity of the brand and contributes to the fun factor of the shoe. TOMS Word of mouth marketing essentially launched the brand, and gave TOMS the leverage ability to continually revamp their products through the use of colors and patterns keeps necessary to grow. TOMS is responsive to their customers. Generation Y is a culturally liberal consumers coming back. group, who take initiative and instead of accepting things for the way they are, they take on the The primary corporate branding strategies TOMS utilizes to meet their end goal are word of attitude of “what am I going to do about it?”. TOMS recognized this fact, and developed mouth marketing, cause related marketing, corporate alignment, and social media. The biggest programs that capitalize on the socially involved nature of their core demographic. Young people tool used to deliver these strategies is the Internet. TOMS has chosen to use the Internet as their started the TOMS movement, and the One Day Without Shoes campaign was a result of primary channel, and it has enabled them to become the brand that they are today. enthusiastic college students. This act, shows customer loyalty no rewards program could TOMS.com is an interactive website that extends far beyond a catalogue of merchandise for compete with. order. The story behind the brand comes to life through videos, photographs, and facts about the TOMS excels at incorporating their mission into their brand elements and activities. The logo One for One program. The interactive connection from other social networking sites, engages is based off the Argentinian flag, the place where Mycoskie first developed the idea for One for customers and develops the emotional connection that builds a strong brand. This form of One. At first sight of the logo, you are reminded of the needy children who benefit from your interaction would be difficult to recreate in a store, especially because TOMS customers are not TOMS purchase, causing the customer to be reminded of the One for One mantra. The impact is in a centralized location. Because TOMS has excelled in communicating its brand through the key in helping create brand equity. Also, included in the packaging of TOMS products, is a Internet, it makes the brand come to life for consumers and makes TOMS Shoes a lifestyle, TOMS logo sticker, and TOMS logo flag. These little gestures allow consumers to further instead of being just another product. In other words, the Internet is an appropriate channel that promote the brand. This is appropriate because TOMS at first benefited from word of mouth creates a high level of impact, is easily accessible, and an appropriate means of communication. marketing, and this tactic can help carry on that tradition along with creating brand recognition. TOMS also sells products through authorized retailers. TOMS chose the authorized retailers The TOMS Classic slip on shoe, designed after the Alpargata, is available in a wide variety of because they share the passion of giving, and want to expose their customers to the brand. Also, colors, patterns, and materials. The combination of glitter TOMS and natural burlap TOMS this channel helps reach consumers not directly in the target market, which helps add to the appeals to the fashion forward consumer, and the eco-friendly customer. Adding a vegan style to accessibility of the brand. the selection was an appropriate use of an ingredient brand. The use of these natural materials 28 29 Competition B. Authorized Retailers TOMS main competition is other shoe companies, such as crocs, vans, and BOBS by Advantages: Skechers. Each of these competitors has their own retail outlets, websites, and some of their • Exposure to consumers not in target market products can be purchased through authorized retailers that also sell TOMS. In competing with • Brand exposure/awareness these brands, and others, TOMS needs to asses their Points of Parity and Points of Difference to • Co-branding opportunities evaluate the strength of their brand. Because, TOMS does not have their own retail store, and • Instant gratification from purchase other competitors do, this could be a possible market opportunity for them to consider, especially • Cash transactions can be made if they feel it will help them gain a competitive advantage. Disadvantages: • Control issues: working with other retailers and their objectives The advantages and disadvantages of TOMS location channels are: A. Internet TOMS has done a good job at offsetting the disadvantages associated with the Internet by Advantages: leveraging the advantages of using authorized retailers. TOMS has the opportunity to expand • Portray brand image through videos, photos, and blog posts their location channels to include their own store. Although, there current locations appear to be • Engage and interact with customers working for them, this could provide them with the opportunity to compete with competitors at a • Build “community” higher level. Cost considerations should be taken into account when evaluating if this is a smart • Extensive merchandise selection move, because currently through their location channels, TOMS reaches their target market Disadvantages: affectively. In transitioning into a retail store format, TOMS could also consider Pop-Up stores. • Consumers can only pay with credit card • Consumers have to wait for their order to be shipped and delivered 30 31 18
- 19. The Retail Environment& Merchandising Strategies Introduced to the challenges facing the retail environment. In-depth study of current business practices being utilized through field research and weekly review of current events. Explored the new formats of retailing (omni-channel), and examined the application of technology to solve business problems and gain a competitive advantage. Best practices in merchandising strategies were realized through understanding the importance of product, price, place, promotion, fit, and stock levels. The importance of customer service and identifying your target market were learned through identification of CRM strategies. Critical thinking was applied to case studies, where comprehension of practical strategies was developed. KEY PROJECT Case Study: The GAP Featured: — Sample portion of written case study 19
- 20. Case Study: TheGAP Outcomes Highlights & Skills • Recognize the importance of identifying your target market and building customer relationships, as it Case Study: The GAP defines strategic The GAP is a North American mall staple. Synonymous with denim, khakis, and the merchandising decisions basic white t-shirt, the iconic brand has experienced a decline in profits and sales in the North American market. On October 13, 2011 GAP Inc. announced the plan to reduce the number of • Develop actionable points GAP brand stores in North America to 700 by the end of 2013, a 21% decrease from the 889 that support merchandise stores in operation, as of July 2011.1 The GAP was founded in 1969 in San Francisco, California strategy improvement with a single store. Today they operate 3,200 stores worldwide, and the GAP Inc. brand portfolio extends to include the GAP, Banana Republic, Old Navy, Piperlime, and Athleta.2 The GAP’s • Identify how to use available height of success came to fruition around 2000. Gap Inc.’s sales growth went from around $480 million, in 1983, to almost $14 billion in 2000, an amazing 2,400 percent increase. The first technology and buying decline since 1989 came in 2000, where comp store sales dropped 5%, and then a massive 13% systems for effective in 2001, with the Gap brand down 12%.3 Over expansion, saturation, and the effort to reach too assortment planning in order many customers hurt the brand, resulting in the need for store closures. However, the Gap has to maximize profits and sales found success in other countries, making up for lost ground in the United States. The question volume now becomes what can the company do to get back on track? In order to re-gain market share in North America the GAP needs to complete a brand audit and focus on building brand equity and • Understand the process of developing a merchandise assortment mix to position themselves for long term future success. product development, and the advantages and disadvantages associated !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1 Chang, Andrea. "Gap to Close about 200 Stores in N. America as It Expands Overseas." Los Angeles Times. Los Angeles Times, 14 Oct. 2011. Web. 18 Feb. 2012. <http://articles.latimes.com/2011/oct/14/business/la-fi-gap- with private label brands downsize-20111014>. 2 "Key Facts." GapInc.com. Gap Inc. Web. 18 Feb. 2012. compared to national brands <http://www.gapinc.com/content/gapinc/html/aboutus/keyfacts.html>. 3 Lewis, Robin. "A Case For Euthanasia? The Gap on Life Support." The Robin Report. Web. 18 Feb. 2012. <http://therobinreport.com/a-case-for-euthanasia-the-gap-on-life-support/>.! ! "! • Recognize how current issues and trends are challenging and changing business practices. (social media, mobile commerce, economic trends, sustainability, etc.) 20
- 21. Brand Audit The lack of connection between the consumer and the brand lies within the inability of To survive in a competitive marketplace a company must build a strong brand. The power of the GAP to re-examine their own brand and its identity as they have transitioned from the denim a brand lies within consumer’s perceptions about what they have learned, experienced, and heard retailer to the multidimensional store. The GAP name is still suggestive of the basics and staples about the brand. Building brand equity requires linking branding strategies with the ways in they were once so popular for, which is why the intended target market is not connecting to the which the consumer experiences the product. Before this process can begin, the GAP needs to brand. In order to rectify the situation the GAP needs to commit to this target market and define their target market. Developing and implementing strategies will be more effective when implement the four steps of brand building for a proper brand audit. an intended audience is defined. The GAP can build brand equity with customers through the development and Who is the GAP customer? In my opinion the current target demographic is the consumer management of each stage in the Customer Based Brand Equity (CBBE) model. The four steps between the ages of 25 and 35, the young professional, who is interested in trends and fashion, of brand building, in the model, are:4 but cannot afford a designer wardrobe. However, in a recent visit to the GAP located in San 1. Identity: Who are you? Francisco’s Union Square, the customers in store appeared to be older (35-45 years old), tourists, 2. Meaning: What are you? or shopping with family. The customer was not the fashion forward, younger Generation X, or 3. Response: What about you? Generation Y consumer in search of the cool factor. The décor, visuals, window displays, and in- 4. Relationships: What about you and me? store music indicated the GAP was trying to market and appeal to the younger audience, but the The CBBE model will provide the perfect platform for the GAP in making sure their strategies intended demographic was not found among the flag ship store. This suggests a disconnect align with the perceptions of their target market. Completion of this model cannot be done over between the GAP brand and consumer. night. It will require time and implementation of various strategies at each stage. In order to GAP needs to repair the disconnect with consumers by re-identifying who they are so accomplish the four steps of brand building (identity, meaning, responses, and relationships) the they can begin establishing relationships and developing a loyal customer base. The 25 to 35 six brand building blocks need to be established in order to reach brand equity. Through year old market segment is an appropriate target market for the GAP. The other GAP Inc. brands development of each stage the GAP can reach the pinnacle of the Customer Based Brand Equity will help engage consumers outside this market segment, keeping consumers within the Pyramid, and establish brand resonance where brand loyalty is represented not only through company. The current retail industry suggests a shift towards fast fashion and consumer repeat purchases, but how consumers seek out more information about the GAP. Model 1.1 demanded products. The GAP is the perfect brand, among the GAP Inc.’s portfolio to compete !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! with this marketplace trend, thus re-confirming their choice to target this market segment. 4 Keller, Kevin Lane. Strategic Brand Management: Building, Measuring and Managing Brand Equity, 3rd. ed. Upper Saddle River, New Jersey: Pearson/Prentice Hall, 2008. ! "! ! #! depicts the objectives each brand building block should establish to meet the requirements of Designer Collaborations each stage. Fast Fashion and the economy have influenced an uprising trend in business, designer Model 1.1 collaborations. High-end designers like Missoni, Versace, and Karl Lagerfeld have all recently participated in collaborations with stores, developing a moderately priced line of merchandise. The New York Times recently published an article discussing the current designer collaborations Resonance: to hit the market, and their impact on the fashion industry. The article concluded that the Loyalty, 4. Relationships: What Intense, Active Community Engagement, Attachment about you and me? Relationships collaborations have become a reliable business model for retailers.5 Target launched a design Feelings: Fun, collaboration with Missoni in September 2011. The Missoni launch created a frenzy that caused Judgments: Excitement, 3. Response: What Positive, Accessible Credibility, Quality Security, Social Approval, about you? Responses the retailer to sell out within a few days, and the surge in web traffic caused a crash of Target.com.6 WWD recently quoted Karl Lagerfeld “This is not a problem whatsoever,” in Performance: Imagery: 2. Meaning: What are Strong, Favorable, and Product Reliability, Durability, Personality and Values you? Unique Associations and Serviceability response to a question asking if his collaboration with Macy’s will dilute the image of his Chanel and Fendi designs. Lagerfeld also went onto say “The more and more your name is around, it’s Salience: Category Identification 1. Identity: Who are Deep. Broad Brand you? Awareness even better for Chanel. I am linked to that. I think this is the right moment for this. It’s pretentious to make only expensive things.” Those seeking items with luxury appeal and a tight budget will appreciate Lagerfeld’s mindset. Also, even celebrities are finding this new business Brand Marketing Strategies venture appealing, and are vying for the merchandise with the mass market. Jessica Alba was GAP has not effectively communicated with their consumers or successfully managed to one of the many who took to twitter to express their desire for merchandise from the Missoni for engage new ones. We identified this through their lack of creating brand resonance. GAP needs Target collaboration.7 The success of these collaborations and many others keeps us wondering, to be responsive to their customers and the marketplace. In addition to the brand audit, some who will be next to participate in this business trend? strategies the GAP should consider implementing to ensure that all levels of the CBBE model are met are in the areas of designer collaborations, multipurpose consumerism, and customer relationship management systems. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5 Wilson, Eric. "A Marriage of Economic Convenience." The New York Times. 16 Nov. 2011. Web. 28 Nov. 2011. <http://www.nytimes.com/2011/11/17/fashion/designer-retailer-union-remains- lucrative.html?scp=1&sq=a%20marriage%20of%20economic&st=cse>. 6 "As Profits Climb, Target Tweaks Apparel." Women's Wear Daily. 16 Nov. 2011. Web. 28 Nov. 2011. <http://www.wwd.com.subscriptions.fidm.com/retail-news/mass-off-price/as-growth-rolls-on-target-tweaks- apparel-5375263?page=2>. 7 Alba, Jessica. "Tweet." Twitter. 7 Sept. 2011. Web. 24 Oct. 2011. <http://twitter.com/#!/jessicaalba>. ! $! ! %! 21
- 22. Retailers in competitionwith the GAP and beyond have begun to adopt this strategy and representation of this model. Their One for One mantra is the model by which they operate their have discovered great success. The opportunity to collaborate with talent such as MISSONI, or business on, where for every product sold one will be donated. The Huffington Post covered the Lagerfeld does not come often, and the GAP should take advantage of this development to not launch of a new product line for TOMS.9 The brand extension into eyewear from shoes by only help increase brand awareness, but rather leverage this opportunity to engage the consumer TOMS, not only demonstrates the power of the charitable business model, but that consumers are they are seeking to target. willing to support such products in markets where there are lots of brands to choose from. The A good measurement to see if the current market will be responsive to use of this strategy mindset has also expanded into the world of e-commerce. PR Newswire reported on the launch by the GAP brand will be the gauge in the success of the DVF for GAP Kids collaboration. The of the website Community Collection.10 The website is the first e-commerce site of its kind, line will launch in March 2012. The GAP Kids and baby GAP divisions are two of GAP brand’s combining designer fashion with the world’s top charitable causes, where with each item strongest performing divisions in North America.8 Although, the children’s retail industry is purchased 20% of sales will be donated to the designers charity of choice. Department stores also different, use of this strategy among the well performing portion of the brand will still serve as a are responding to the consumers mindset. WWD covered Saks Fifth Avenues Key to the Cure good measurement for strategy implementation and hopefully demonstrate to the vertically event.11 Additionally, Forbes reported on Neiman Marcus’ efforts to revamp cause marketing by integrated retailer that in order for them to reach success among the GAP brand, strategy tying philanthropy in with the holiday catalogues “fantasy gifts”.12 These efforts are contributing differentiation is necessary. to the greater good of society and are a response to the consumers new mindset, where they want Multipurpose Consumerism to feel good about their purchases. Buyer’s remorse is a thing of the past, as “multipurpose A level of social corporate responsibility has been expected among businesses and consumerism” eliminates the notion that consumers have to choose between buying something organizations and has become a necessity to gain consumers interest. Cause marketing has been versus doing something good. a brand strategy utilized to achieve social corporate responsibility and has given rise to the trend In the past the GAP has demonstrated use of this model through their partnership with in charitable fashion of which has created “multipurpose consumerism”. In a lagging economy (PRODUCT) Red. GAP (PRODUCT) Red launched in 2006 and was one of the first examples of !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! consumers are hesitant to spend or indulge on specialty items, and the efforts by corporations to 9 Gillis, Carly. "TOMS Announces Eyewear As New 'One For One' Product." The Huffington Post. 7 June 2011. Web. 28 Nov. 2011. <http://www.huffingtonpost.com/2011/06/07/toms-eyewear-one-for-one_n_872847.html>. 10 support the mindset of conscious consumerism has influenced products, websites, and events all "Fashion Meets Philanthropy With the Launch of E-Commerce Site, Community Collection." PR Newswire: Press Release Distribution, Targeting, Monitoring and Marketing. 18 Oct. 2011. Web. 24 Oct. 2011. <http://www.prnewswire.com/news-releases/fashion-meets-philanthropy-with-the-launch-of-e- focused around the concept of multipurpose purchase; where a dollar spent not only provides the commerce-site-community-collection-132042428.html>. 11 "Saks Kicks Off Key to the Cure." Women's Wear Daily. 21 Oct. 2011. Web. 24 Oct. 2011. consumer with something new, but doubles as charity. TOMS Shoes, Inc. may be the best <http://www.wwd.com.subscriptions.fidm.com/fashion-news/fashion-scoops/saks-kicks-off-key-to-the- cure-5323204>. 12 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Dishman, Lydia. "The Priciest Items in Neiman Marcus' Posh Gift Catalog Play to Philanthropists." 8 Brady, Shirley. "Gap Taps Diane Von Furstenberg for Kids Collection." Brandchannel.com. 8 June 2011. Web. 19 Forbes. 19 Oct. 2011. Web. 24 Oct. 2011. <http://www.forbes.com/sites/lydiadishman/2011/10/19/the- Feb. 2012. <http://www.brandchannel.com/home/post/2011/06/08/Gap-Kids-DVF.aspx>.! priciest-items-in-neiman-marcus-posh-gift-catalog-play-to-philanthropists/>. ! "! ! #! cause marketing among retailers and products.13 They may have very well been an originator in emphasis on service, management can talk to sales associates and more accurately identify the the concept of multipurpose consumerism, although because its introduction was in 2006 their top performing merchandise from the poor performing merchandise. The system will only innovativeness may have gone un-noticed, as it isn’t until now that this trend is being demanded. provide numbers, but interaction with consumers firsthand can provide insight as to what was The GAP should consider re-examining this area of business. After all any element and addition wrong, or great, about the merchandise. This information can be communicated to Buyers, and of corporate social responsibility should only translate to the overall enhancement of brand Senior Management, who in turn can address the problems related to fit, style, or price, to ensure equity. it does not occur again, and new products delivered will more accurately match the needs of the Customer Relationship Management consumer, further building brand equity. Measurement of this strategy can be seen though an The brand will only be successful if there are customers present. Once the target market increase in sales and higher profits for the company. For a more in depth measurement, the GAP has been identified and strategies have been implemented to meet the needs of attracting those can also consider introducing Mystery Shoppers into their stores to further assess the quality of consumers, a customer retention strategy needs to be executed. By introducing a Customer service. However, to be fair this should be done after a clear set of personalized and standardized Relationship Management (CRM) system, or set of strategies, programs, and systems that focus service goals have been established between the retailer and its employees. on identifying and building loyalty with valued customers, resonance is surely to be generated. A CRM system is multifaceted. Successful completion of its objectives extend beyond The current GAP consumer primarily shops sale merchandise only. If the consumer begins to customer retention and work to improve the merchandise management process, where improved associate value with the brand, as the previous strategies provide, they may change their merchandise equates to higher inventory turnover, of which results in more new products for the purchase behaviors and shop full price. The best way to ensure this is through delivery of consumer, which will also stimulate the excitement of sales associates. The CRM system should excellent customer service. A store environment where sales associates simply “clerk” will not first begin with a system that allows for customer data to be collected. This can easily be win the consumer over. People shop for more than just the products, but for the environment and achieved at point of sale through the POS terminal. After data is collected it can be analyzed to overall experience. When a CRM system is in place, a higher attention to customer service from determine a pattern among customers, where the proper target market can be identified. Third, all store employees will enhance the systems performance, and more information will be placed development and implementation of programs directed towards the target market should be into the system allowing for future data analysis and identification of loyal customers. The GAP created. Programs to consider that support delivery of a higher level of customer service are, should consider offering a combined approach to service, with personalized and standardized frequent shopper programs, special customer services, personalization, and development of a services. Providing high quality service can be a challenge for many retailers, thus this approach sense of community. When the CRM system and customer service strategies work together the will offer a sustainable competitive advantage for the GAP. Furthermore, with an added outcomes benefit the whole organization. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 13 "(RED) Faq's." (RED). The Persuaders, LLC. Web. 23 Feb. 2012. <http://www.joinred.com/FAQ>. ! $! ! %! 22
- 23. Trend Forecasting Introduced to the concepts behind professional trend forecasting. The fundamentals of the trend research process were learned through the analysis of current events, social and cultural influences, and industry observation, where importance was placed on interpreting research into viable macro trends. Trend forecasting research and identification further developed with the application of the fashion forecasting process into target consumer groups, textile, and color trends in the global and domestic markets. KEY PROJECT Trend Development through Brand Extension: SM2 by Stella McCartney Featured: — Trend board with layouts: brand and macro trend, color and textile story, with sample design flats for clothing line — Sample portion of written business proposal and target market research 23
- 24. Trend Development Outcomes & Skills • Apply trend forecasting knowledge by identifying macro trends and their influences on future fashion forecasts • Compare and contrast street vs. designer influence on fashion trends • Use research strategies to find evidence that supports a macro trend • Identify and analyze global trends • Examine and explain past trends in the context of historic, economic, and social developments • Explain the importance of a current trend based on market research • Research and explain how different markets interpret trends • Examine color and its value in the fashion and textiles marketplace • Recognize the relationship of fabrics and color in trends and market segmentation 24
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- 28. Preview Business Proposaland Target Market Research 2 SM2 by Stella McCartney 2. Collection SM Brand and Store Development: Identifying the Target Market By Meghan Fuller The Stella McCartney design house will evolve beginning Fall/Winter 2013 with the launch of: SM2. 2.1 SM2 ! SM2 is an activewear collection for Men, Women, and Children. Inspired by the new reality, SM2 will support the demands of everyday life by seamlessly blending the worlds of sport and luxury. 1. Background By pairing performance and sophistication, both elegance and comfort will be emphasized. 1.1 Stella McCartney British Fashion designer, Stella McCartney is best known for her sharp, simple, feminine and 2.2 Objectives wearable day brand. Her interest in fashion developed at the early age of 13, when she began designing The introduction of SM2 will provide important benefits for the Stella McCartney design house. and making her own clothes. Three years later, she had an internship with Chrisian Lacroix. The SM2 label will work to achieve the following objectives: McCartney completed her education at the prestigious London school, Central Saint Martin’s College • Create a brand that is innovative and easy to participate with. of Art and Design. She was appointed creative director of the Parisian fashion house Chloe in 1997. In 2001, she teamed up with the Gucci Group to develop her own label as a global luxury line. The same • Engage loyal consumers, and cultivate new customers: year she debuted her collection at Paris Fashion Week, where her father Sir Paul McCartney sat in the ! Reach desired market segments, and grow relationship with the contemporary market audience. In 2004 she established a long-term partnership with Adidas, and created the collection through proper branding and merchandising strategies. Simply Adidas by Stella McCartney. Today the collection has evolved into a wide range of sportswear ! Stella McCartney Design House: opportunity to design Men’s Sportswear, allowing for including, winter sports, golf, tennis and yoga clothing. More recently, she designed clothes for an easier future entrance into the Men’s market segment for the Stella McCartney Madonna’s Revolution tour. design house. Stella McCartney operates 23 freestanding stores as of 2012. She is a vegetarian and tremendous ! Leverage relationship with Adidas to support line that merges sport and fashion. supporter of animal rights. She never utilizes fur or leather in any of her designs. In March 2012, she • Compliment and expand current assortment mix: introduced a Sportswear line that was designed specifically for the British Olympic team. ! Increase activewear category by introducing more fashion items into the Men’s, Women’s, and Children’s classifications. 1.2 SM2 • Participate with current trends and fashions. Environmental and ethical considerations are the guiding force behind all decisions, in both the professional and personal world of Stella McCartney. Sustainable and ethical practices are highly important, and influence the operations, design, and future of Stella McCartney. The creative vision behind SM2 came about naturally, as Stella McCartney is always looking to improve its carbon footprint. Green living, health and wellness, and sustainable practices are more prevalent in society. The mindset is shifting towards new directions, where the individual is seeking truth, demanding change, and not afraid to challenge reality. The concept of New Reality embraces an organic attitude. SM2 is here to fashion the “New Reality” and support the beliefs that have always been true to Stella McCartney. 3. Demographic Analysis: Population Table 3.1 Continued: ! SM2 will open a boutique located in San Francisco, CA and will serve the San Francisco County E"'3$ population. In order to better serve the customer base and maximize profits, a complete and thorough 7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ !"#$%&'"()%$#*"+& ,-./012& && understanding of the geographic region and its population needs to be completed. The information for NA*#4& 0H0/.G0& .H5.7& U%$JO&"L&<ML*J$+&<94L*J$& 0:/20:& 15H7& the San Francisco County population demographics was compiled using information from the US <B*$+& G1:/-.-& 22507& Census Bureau, and is described in Table 3.1. Table 3.1 4. Psychographic Analysis: Population In order to complete an in depth understanding of the San Francisco County, California !"#$%&"#'()'*$+*,#-./$+"0(1*&#("$ population, information concerning how the population lives, how they spend their time and money, 23#43&$"#4$563$ what activities they pursue, and their attitudes and opinions about the world they live in needs to be 7"&83-$9#1*&:"-(*#$ ;,:<3&$ =3&'3#-"63$ !"#$%&'"()%$#*"+& ,-./012& && collected. These variables will further aid in the development of how to properly serve the SM2 3$%4& 0-,/-1.& .-567& 849$%4& 2:6/2:,& 0:527& customer. 34;*$+&<=4& 2,5.& && Using SRDS.com the San Francisco County, CA population can be further analyzed and <=4&>$+=4&?@*=A4B#&C4+B*#DEF& && && described as follows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`"==*+=^L)++*+=& G.7& & S4LR*J4&QJJ)($#*"+B& 6,/:6,& H6567& Wa4LJ*B4&M*R4&"L&9"L4&#*94B&$&[44O& GG7& & S$%4B&$+;&QMM*J4&QJJ)($#*"+B& H-2/-,:& G25H7& T"&]*JDJ%*+=& H,7& & X$#)L$%&>4B")LJ4B/&Y"+B#L)J#*"+/&$+;&3$*+#4+$+J4&QJJ)($#*"+B& H6/1G6& 25:7& W+`"D&4+#4L#$*+*+=&(4"(%4&$#&A"94& HH7& & 'L";)J#*"+/&!L$+B("L#$#*"+/&$+;&3$#4L*$%&3"R*+=&QJJ)($#*"+B& G6/..1& 15G7& ! 28
- 29. The psychographic analysisindicated the San Francisco County population is a liberal group, 5. Segment Analysis interested in the arts and culture. They like to “stand out in a crowd”, and be noticed. They shop from 5.2 Men’s specialty stores and appreciate a high level of employee knowledge in those stores. The population is Customer segments shopping in the Men’s Department, based on the demographic and psychographic concerned with style and fashion, and prefers designer/brand labels. They budget for designer items, research of the San Francisco County, California population, can be identified and defined into four and as indicated by the income levels the population can support high-end retailers. This population is main segments. more likely to be the first among their friends and social groups to try new styles, essentially making them “trend setters”. They lead active lifestyles, and incorporate various sport and leisure activities 1. The Hardcore Athlete: Tim into their routines. The combination of sport related activities and the fact that they are more likely to Gender: Male snack on healthy foods where nutritional value is essential, suggests they are a health conscious Age: 28 to 38 society. Income (Individual): $45,000 to $55,000/ year According to Claritas.com the top 3 lifestyle groups among the San Francisco County, Education: Bachelor’s degree or higher California population can be classified and described as: Lifestyle: The Hardcore Athlete eats, sleeps, and trains. Exercise and maintaining a healthy lifestyle • Money and Brains: Age 45 – 64, homeowners, married with children. They possess a graduate are highly important. He participates in sports at a competitive level. He is often training for a degree, and are employed at a management level. This group can be described as wealthy with marathon or triathlon. When he is not training, he still incorporates sport related activities into his sophisticated tastes, and they live in fashionable homes on small manicured lots. lifestyle (commutes via bicycle, walks the dog, goes hiking). His career in the service industry allows • Young Digerati: Age 25 – 44, renters and owners, with a varied family mix. They possess a for flexible hours to accommodate his busy lifestyle. He looks for performance and durability in his graduate degree, and are tech-savvy. This group is attracted to trendy neighborhoods with apparel, and needs his clothing to be functional and versatile. He will invest in key pieces, and is restaurants, bars, and coffee shops. This group is affluent and ethnically diverse. budget conscious with respect to other purchases. • Bohemian Mix: Age 55 or younger, primarily renters. They are a progressive mix of young singles, couples, and families. They lead liberal lifestyles and are early adopters who are quick to check out 2. The Pacesetter: Grant the latest movies, nightclubs, laptops, or microbrews. This group is ethnically diverse, with college Gender: Male degrees. Age: 30 to 40 Income (Individual): $50,000 to $65,000/ year Combined, the demographic and psychographic collection of information support the decision to Education: Bachelor’s degree or higher launch the SM2 line with a boutique located in the San Francisco County. The information indicates Lifestyle: The Pacesetter appreciates style, and wants to look stylish even at his most casual. The that the population’s mindset and economic status will adequately support the store and ideals at the Pacesetter prefers brand names, and likes the associations about identity made with regard to wearing core of the brand. such labels. He leads an active lifestyle, where he balances both work and social activities. He works in Consulting. When he is not working and entertaining clients, he likes to spend the weekends out with friends. He is in the “know”, always checking out the latest restaurants and events. His workout routines include weekly rock-climbing classes, or long runs in the Marina. He is more concerned with style and fit than overall performance. The Pacesetter is less-price sensitive, but is still conscious due to the economic climate. 3. The Entrepreneur: Eric 6. Market Trend Analysis Gender: Male The growth of the Stella McCartney brand, SM2 core concept, and directional changes in the Age: 32 to 45 business are a result of the shifts in the consumer mindset and industry demands. The idea of health, Income (Household): $150,000 to $200,000/ year wellness, fitness, and acceptance are all prevalent themes across multiple categories, and are greatly Education: Bachelor’s degree valued by Stella McCartney. The mega trend “New Reality” is important on multiple levels. It Lifestyle: The Entrepreneur is a bay area transplant. He moved here after college to begin a start up embodies the spirit and passion at the core of the brand, and is important for realizing future growth business in technology, and after experiencing success with his business he is moving into the second strategies. phase of his life: family. Recently married, the Entrepreneur is still concerned with work, and is driven The core contributing factors that have influenced the current mindset and created the market by his success. He likes to unwind from the hectic workweek by spending his weekends trying new demands are as follows: restaurants, escaping to Sonoma, or taking his boat out on the bay. The Entrepreneur has a lot of • A renewed sense of the importance of what’s real, what’s now and it’s potential. hobbies, and is always up on current trends. His wife also keeps his calendar full with social events and ! The consumer is considering different realities and exploring contemporary cultures, activities. The two are starting to plan a family, as they both want children. His wife does most of the lifestyles, science and technology to create new ideals and beliefs. shopping and heavily influences his wardrobe purchasing decisions. Quality and style are important. ! The leaderless movement, commonly referred to as Occupy Wall Street, has identified a He looks for styles that can go from work to the weekend. trend in the consumer mindset suggesting that a change needs to be made, and that everyone, each individual, holds the power to contribute to create progressive change. The 4. The Baby Boomer: Steve movement has reached a global level, and shows the power in which the current generation, Gender: Male Generation Y, holds. Age: 50 to 60 ! We as a society have been faced with an overabundant amount of change recently, only Income (Household): $100,000 to $150,000/ year naturally resulting in the expression of emotions from people. Education: Bachelor’s degree • New streams of products make health, fitness, and well being top of mind 24/7. Lifestyle: The Baby Boomer is entering into retirement and is working less. He now has more time to ! Self-motivation and assessment are more easily reached with new tools available. The participate in hobbies and pursue new activities. He is active in his community and is a member of the ability to share and participate with friends, strangers, and people across the globe is a Lake Merced Golf Club. He enjoys travel, and is in the process of planning travel excursions to South possibility with the innovations in smartphone applications and exercise tools. America and Europe. His wife also leads and active lifestyle, where sports and leisure are equally • Fitness communities are growing as more alternative options for exercise are emerging. important. Together they play golf and tennis, and in the winter they go cross-country skiing. Style, ! Shifts within the market invite new and updated performance collections, “as designer function, and durability are all important purchasing considerations. Versatility will become details, trend-driven color harmonies and aesthetic overhauls push the envelope in terms of increasingly more important as he begins to travel. He will invest in core pieces, and add on new styles traditional design for active apparel, accessories and footwear.” seasonally to update the basics. Price is not an issue, as long as it translates to quality. ! Working out is no longer confined to the gym. Traditional means of exercise and competition are experiencing a dynamic shift as the current mindset is evolving. The basic ideals associated with “staying fit” and the concept of well-being has been re-designed. • Brands are currently inspiring individuals to find their inner athlete and are working towards fulfilling the idea that the consumer wants to not only feel good, but also to look good while working out. 29
- 30. Internship Sales and MerchandisingCoordinator Intern Elie Tahari, San Francisco, California April 2012 – June 2012 My work with Elie Tahari reemphasized the importance of merchandising strategies and the critical role they provide in supporting business objectives. Everything from the education about the product line through delivery of a seminar at an all store meeting, to the simple tasks such as making sure all merchandise is hanging on wood hangers (not plastic), are equally important and require the same amount of attention. It was rewarding to apply my classroom studies to my role as the merchandising coordinator intern. My internship also provided me with the opportunity to: — Merchandise deliveries according to Elie Tahari corporate standards in Union Square department stores: Saks Fifth Avenue, Bloomingdale’s, Macy’s, and Neiman Marcus — Communicate with Elie Tahari coordinator about merchandise re- orders and store recaps — Assist department managers, specialists and sales associates in promoting and selling merchandise to achieve sales plan — Provide sales support and interact with customers shopping in the Elie Tahari Shops within the Bay Area department stores 30
- 31. Elie Tahari Shop Bloomingdale’s SanFrancisco Centre 31
- 32. Best Practices “Best Practices” is often a method used by businesses, where the processes involved in conducting daily business activities evolve to support the business in achieving a sustainable competitive advantage. As a student, professional, and individual I too have developed a series of “Best Practices” that have helped me meet and achieve my goals. Through my studies as a Professional Designation student I have developed a set of habits that have not only been beneficial to my education, but have aided in my ability to comprehend and understand the dynamic nature of the retail industry. As an Undergraduate in the Lundquist College of Business, at the University of Oregon, I learned the importance of scanning your environment, of which helps businesses identify their strengths, weaknesses, opportunities, and threats…which for me translated into reading local publications, logging onto business blogs, and participating in symposiums, seminars, and conferences. At FIDM, through a series of courses I studied Trend Forecasting, and was re-introduced to the concept of the “Zeitgeist”. Also known as “The Spirit of the Times”, understanding the role of the Trend Forecaster and how they define and interpret the Zeitgeist into trend development, reminded me of my best practices that formed during my undergrad education. These practices have evolved to adapt to my new environments and include not only understanding what is going on in the retail industry, but also familiarizing myself with the other aspects of society that indirectly influence and shape the direction of our future. 32
- 33. My Best Practicesconsist of reading daily publications and blogs, participating in popular social media activities, and visiting retailers, businesses, and popular locations. Trend Forecasting taught me to create a source binder, of which holds pertinent information, that in theory should be used to discover macro-trends in fashion, but in reality it provides a proficient source of evidence for recognizing current trends, challenges, and offers an insight into the successful and failed best practices of industries, businesses, and individuals. Also, through FIDM I have been privileged to access phenomenal and significant resources. The library has provided me with: • Access to industry wide trade publications • Fashion trend reports • Exposure to original works from renowned designers, apart of the schools vintage collection, and complete collections of Vogue and Harper’s Bazaar (dating back to the 1950’s) The most notable has been my ability to access the trend forecasting services of Stylesight and WGSN. Even though they specialize in serving the professional industries of style, fashion, and design, their collection of information and resources spans across a variety of categories and can be applied to a variety of industries, and is particularly helpful in understanding the inner-workings of the consumer. As I move forward into my professional career, I will continue applying my “Best Practices” to my work, and will hope that new discoveries and outcomes will result from my efforts at working to achieve my own competitive advantage. 33