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Fashion Merchandising Promotion Plan Badger DECA Badger High School zzo South St. Lake Geneva, WI 53i47 Maria Diliman February , 2011 Table of Contents .1 I. EXECUTIVE SUMMARY II. DESCRiPTION OF THE STORE 2 III. OBJECTIVES 4 IV. SCHEDULE OF EVENTS 4 a. Special events 4 b. Advertising 6 c. Display 6 d. Publicity 7 e. Other in-store activities 8 V. RESPONSIBILITY SHEET 8 VI. BUDGET 9 VII. STATEMENT OF BENEFITS TO THE RETAIL ESTABLISHMENT 9 VIII. BIBLIOGRAPHY 11 IX. APPENDIX 11 • I. EXECUTIVE SUMMARY • The EDUN line created by Bono and Au Hewson to promote “trade not aid” in Africa is one of the many high-end fashion lines stocking the shelves of Bloomingdale’s SoHo. Bloomie’s contemporary image, from its signature black and white tiled floors to the endless in-store labels such as Gucci and DKNY provides EDUN with the perfect platform to emerge as a leading label. The downtown Manhattan location of Bloomingdale’s SoHo emits the ideal atmosphere for EDUN’s casual yet chic fashion wit. EDUN goes back to basics with its African-based productions and loose style for “blooming” young adults. The collection boasts a distinct flair inspired by exquisite Africa. From designer print t-shirts, sexy denim pants, and sleek leather jackets for guys to organic jersey tank tops, wing dresses, and cropped trousers for gals, the EDUN fashion sense ensures a double take. The primary target market for EDTJN is fashion-conscious male and female individuals ranging from the ages of 18-35 and with a minimum income of $75,000. As marketing managers for Bloomingdale’s SoHo, we convened a series of meetings in order to formulate the best four-week promotion campaign for the EDIJN line. The following objectives have thus been established: • • • : • • Increase popularity of the EDUN line with a higher level of exposure to the fashion industry Increase sales of the EDUN line in Bloomingdale’s SoHo store by 20% and total sales of the store by 10% Promote EDUN’s identity in Africa as well as its organic and ethical values The campaign will begin on September 8, 2011 and end on October 6, 2011. The fall line promotion will take on the name “Garden of EDUN” to support EDUN’s mission of natural, sustainable fabrics and simple, effortless fashion. The campaign is packed with fresh ideas from special events to publicity. Featured special events include a Luncheon with Bono and Au, Fashion’s Night Out Appearance, Reusable Brown Bag giveaways, and NYU discount cards. The lineup for publicity and advertising is a special SoHo appearance in the New York based series Gossip Girl, and a onepage ad in the popular Nylon Magazine. The in-store campaign includes a new design for the EDUN designated floor space and weekly employee meetings. • Although these events will be costly, Bloomingdale’s has a target market of higher-based incomes. Thus the budget, as detailed in the plan, is estimated to be $47,565. • The four week campaign will benefit the store by increasing popularity of the line as well as the store which will lead to an increase in revenue. This will be accomplished by the fresh advertising and promotions detailed in the project. Introducing urban outfits to the high-end clothing realm of Bloomingdale’s will spark a flame in the world of fashion. H II. DESCRIPTION OF THE STORE Beginning with hoop skirts then transforming into one of the top stores of modern j fashions, Bloomingdale’s began in 1861 in New York. Brothers Joseph and Lyman Bloomingdale started the company by selling hoop-skirts on the Lower East Side, and in 1872 they opened the first Bloomingdale’s store at 938 Third Avenue. They quickly found out that hoop-skirts were on the out, so they began selling the hot new trend of corsets along with European fashions. When the store moved to 59 Street, it was built with large display windows that were used to promote new items. Soon enough, Bloomingdale’s popularity was growing so quickly that the store branched out to other locations, now at 26 different sites. It wasn’t until 2002 that they decided to open a branch in the up- I and-coming neighborhood of SoHo (short for “South of Houston”). Bloomingdale’s SoHo is located at 504 Broadway between Broome and Spring streets in New York City. It is a six level store that offers a ‘: variety of departments including men’s and women’s apparel, shoes, and home accessories. The store is open seven days a week, Monday to Friday from 10 A.M. to 9 P.M., Saturdays from 10 A.M. to 8 P.M. and Sundays from 11 A.M. to 7 P.M. The target market is upper class women in their upper twenties to late fifties. The price range is mid-range to high end. Designer labels in the SoHo location include Zac Posen, Diane Von Furstenberg, Thomas Burberry, Calvin Klein, DKNY, Marc Jacobs, Juicy Couture, and Miss Sixty. ‘ I - - Another one of these labels is EDUN. The company was started in 2005 by Bono and his wife Au Hewson. Their goal was to encourage trade-not-aid with Africa by manufacturing 80% of their products in Africa, mainly Tunisia, Tanzania, and Kenya. Bono and Ali’s goal of going back to basics was made clear when they produced the fashion line name EDUN: nude LIVE 3. spelled backwards. The line uses organic and sustainable materials when possible, even though their main mission is to promote trade-not-aid. This concept is designed to promote the African economy, which will increase the standard of living. It is not charity but will continue to improve the lives of natives. Under their brand, Bono and his wife started EDUN Live, a t-shirt line made exclusively in Africa, called the “grow-to-sew” initiative. For the EDUN Live project, EDUN partnered with • Made Africa, an independent charity working to promote sustainable fair trade and educational projects in Africa. The t-shirts consisted of hand drawings made by children in the Bidii School located in Kibera, Kenya, one of the largest slums in Africa. All of the proceeds from EDUN Live went back to the Bidii School. 4 EDUN has a target market of men and women between the ages of 18-35 with an annual income higher than $75,000. The clothing would be described as trendy, loose, and casual yet sophisticated: leather and denim pieces for the guys and for the girls a chiffon or jersey tank top paired with shorts. Not only casual, the EDUN line also boasts baggy wing dresses, urban cover-ups, and classy accessories such as scarves and hand-made bracelets that bear the EDUN label. The pieces in the collection usually fall between $45 and $300. ‘• H iii. OBJECTIVES For this fashion promotion plan, we will focus on EDUN’s fall line at Bloomingdale’s. All of our advertisements, displays, and promotions will focus around the theme of “The Garden of EDUN.” We chose this theme to promote the idea of world trade that is key to the EDUN brand, as well as increasing fall sales by using the proximity of Bloomingdale’s SoHo to NYU and its “blooming” young neighborhood. To do this, our team came up with the following objectives of: • • • • Increase popularity in the urban realm of the EDUN line with a higher level of exposure to the fashion industry Increase sales of the EDUN line in Bloomingdale’s SoHo store by 20% and total sales of the store by 10% Promote EDUN’s identity in Africa as well as its organic and ethical values IV. Schedule of Events A. Special events 1. Fashion’s Night Out 2011 NYC Kicking off the fall promotion for EDUN, Bloomingdale’s SoHo will -i participate in Fashion’s Night Out on September 8, 2011. The night I, is pumped up with designers, celebrities, and upcoming fashions. Bono and Ali will be present at Bloomingdale’s SoHo in order to market their fresh fall line for EDUN. This premier night will be the perfect start for the “Garden of EDUN.” 2. NUDEfor EDUN Customers who buy merchandise from the EDUN brand of $250 or more will receive an invitation to the “Garden of EDUN” themed party on October 7, 2011, from 9 P.M. to midnight. The party will take place on the third floor of Bloomingdale’s SoHo. Guests will receive complimentary Appletinis and “forbidden fruit trays”. Guests will be requested to wear “Adam and Eve” costumes, and those voted on as best dressed will receive a special prize. 3. Luncheon with Bono and All In order to promote sales specifically for EDUN and utilize the celebrity ownership of Bono and Au, with each purchase of five hundred dollars or more, the customer will be entered into a drawing for a personal luncheon with Bono and Au in Café 504 located on the second floor of Bloomingdale’s SoHo for them and a friend. The contest will begin on September 8 and the drawing will follow the ending of the four-week Garden of EDUN line promotion campaign • on October 6. The luncheon will take place on Saturday. October 8. 4. Reusable Brown Bag • First designed by Massimo Vignelli in 1973, the iconic Brown Bag has since been trademarked by Bloomingdale’s. As a gift, each customer who purchases any piece from the EDUN line will receive a free re usable brown bag signed by Bono. This will be during the limited four week period of the “Garden of EDIJN” promotion while supplies last. Not only will this promote sales for the EDUN line, but it will continue to promote Bloomingdale’s in the hands of fashion trendsetters walking the streets of New York. 5. NYU Student Discount Bloomingdale’s is easily accessible for New York University (NYU) students with less than a ten minute walk down Broadway. NYU’s fall classes begin on September 6 for the 2011 school year; no doubt students will be looking to update their wardrobes for the new school year. Since Bloomingdale’s wants to shift its target market towards the coming-of-age generation, / during the four-week Garden of EDUN campaign, NYU students will receive a 10% discount on I any in-store purchase by simply scanning their student id. This will increase the popularity of the EDUN clothing line and create trends that will spread through city and beyond. B. Advertising 1. Nylon Magazine Ad : We will place an ad in Nylon Magazine for the September 2011 issue. The ad will N 3’ I feature the slogan “Out of Africa, Into Bloomie’s.” The ad will have information on the activities going on at the Bloomingdale’s SoHo location as well as a model wearing a piece from the fall line, “Garden ac of EDUN.” Our signature will consist of the Bloomingdale’s and -, . Facebook logos. 2. Gosszp Girl 1’ After a meeting with Josh Schwartz, executive producer of the hit CW show Gosszp Girl, he agreed to film a scene for the first episode of season five (due to air on Sept. 12) at Bloomingdale’s SoHo, showcasing the EDUN line. The episode will show characters shopping inside of Bloomingdale’s SoHo and wearing a piece from the EDUN collection later in the episode. We will be providing the show five EDUN looks and a three hour time-frame to shoot the episode where we will have to close off part of the store. The filming date has yet to be decided. C. Display 1. Storefront I - The architecture at Bloomingdales is second to none and we would like to leave our mark boasting of the EDUN Line. The two main display windows on the main level will feature the slogan, “Welcome to the Garden of EDUN.” One window will feature a woman’s EDUN look, while the other a men’s look. Both will emit a Garden of Eden atmosphere with trees made out of sustainable or recycled items and leaves hanging from the ceiling. On the top windows, every other rectangular window will feature photos of models and celebrities adorned with pieces from the new fall line, including EDUN Live t-shirts. 2. Store Layout • We will leave the store layout mainly untouched except for the third floor where the EDTJN line will be featured. The line will take over the northwest corner of the floor, approximately 1500 square feet. It will feature four mannequins and similar posters to the ones featured on the exterior of the store. D. Publicity 1. Social Networking We will remodel the Facebook page for the Bloomingdale’s SoHo location. The page will include updated events, discussions, and photos of everything happening at the location. Hopefhlly it will serve as a model for other Bloomingdale’s locations. On top of the new Facebook page, we will also create a Twitter account for the SoHo location, offering the same promotions as the Facebook page. Both will include special deals such as coupons and sales for • • Facebook and Twitter users. Tweets will go out daily promoting the upcoming special events. 2. Press Release • We will issue a press release to local media outlets (such as Social Life Magazine, New York Magazine, WNBC 4, WPIX TV 11, and New York Daily News) in the SoHo area as well as to other areas of Manhattan. The press release will have information about Bono and Ali’s visit to the Bloomingdale’s SoHo location on September 8, 2011 for Fashion’s Night Out. I•. E. Other in-store activities ( 1. Trainingfor Employees We will hold weekly Monday morning meetings thirty minutes before the store opens to clarify plans for the week and designate jobs for special events and promotions. The meetings will also offer an opportunity for employees to give feedback as to how the promotion is going 1’ ; i ii H and discuss room for improvement. V. RESPONSIBILITY SHEET I - Employee Title 1. Store Manager (1) Mark Tomlin Duties and Responsibilities 1. Organize and conduct weekly Monday meetings 2. Confirm Au and Bono’s arrival for Fashion’s Night Out (September 8) 3.Confirm “Luncheon with Bono and Ali” (October 8) 4 Confirm the NUDE for EDUN promotion (Sept 17) 4. Contact Josh Schwartz to verify filming the scene on Gossip Girl 5. Submit one-page spread layout to Nylon Magazine 2. Store Supervisors (7) 1. 2. 3. 4. 5. 6. 3. Sales Associates 1. Remind customers of the Brown Bag promotion and NYU student discount 2. Incorporate friendly personal selling tactics 3. Assist with Fashion’s Night Out 4. Assist with monitoring NUDE for EDIJN as well as handing out invitations to customers who spend over $250 5. Aid customers in locating merchandise 6. Keeping organized store environment I (V (55) Execute in-store layout design and window display Create Bloomingdale’s Facebook and Twitter pages Supply Sales Associates with reusable Brown Bags Monitor employee performance and sales Contact and organize four models for Fashion’s Night Out Monitor lines for NUDE for EDUN and control who gets in iL I —, VI. BUDGET After meeting with Mark Tomlin, the store manager, we have calculated the following I I,., expenses for the events during the four-week campaign. These are estimates based on researched costs. I I II - 1 I - Financial plan 1. Fashion’s Night Out Includes models, food for Bono and Au as well as the models, make-up and hair 2. NUDE for EDUN Includes food and beverages (using Scott’s Food Court Catering) 3. Luncheon with Bono and Au Four meals from Café 504 4. Reusable Brown Bag Order brown canvas bags for first 1000 customers to buy from the EDUN line 5. Nylon Magazine Advertisement One-page spread in color 6. Gossip Girl Scene Five outfits given to costume design department for Gossip Girl cast 7. Window Displays Print cost and design cost, main window display materials GRAND TOTAL ESTIMATION Cost $5000 x 4 models $250 for food and beverages $250 for other expenses Total: $20,500 $2.95 per person for fruit x 100 $15 per person for drinks x 100 Total: $1,795 $60 x 4 meals Total: $240 $1.52 x 1000 bags Total: $1,520 $17,530 x 1 page Total: $17,530 $256 (on average) x 5 outfits Total: $1,280 $75 x 20 posters $1,000 for construction of windows $2,200 for design cost Total: $4,700 $47,565.00 VII. STATEMENT OF BENEFITS TO THE RETAIL ESTABLISHMENT The “Garden of EDUN” fashion promotion plan for Bloomingdale’s SoHo is sure to benefit not only the EDUN line but also the entire store. Using the EDUN line as a starting point, the line will draw in a younger clientele from the SoHo area and will help show that frI Bloomingdale’s is not just for the older client. We believe this plan will help expand the target 4 market and redefine the store. We would like the store to not only continue to compete with Macy’s, Barney’s, and Bendel’s, but also Urban Outfitters, Anthropology, and other small but edgy boutiques in New York and other metropolitan areas. The appearance by Bono and Au in the store for Fashion’s Night Out will increase revenue, bring in new customers, and create a buzz in New York. It will also get the word out about the benefits to Africa and its connection to the clothes by in-store posters and advertisements. • By giving discounts to local NYU students, Bloomingdale’s SoHo will see a fresh group • of customers. The fact that the promotion will be happening just as school is starting will • encourage them even more to buy EDUN pieces to complete their back-to-school look. The Re• • usable Brown Bag promotion will put Bloomingdale’s name in the hands of hip young customers as well as promote the current trend of giving back to the world, which fits perfectly with the • • EDUN line. The use of the popular television show Gossip Girl will help promote both the store and • Bono’s line and his mission to help Africa to young people across the country, and will specifically reach out to people in New York. The Nylon Magazine ad will have the same effect as it is also popular with younger, edgier people who would not normally shop at Bloomingdale’s. All of the above promotions and advertisements, along with the NUDE for EDUN promotion, store atmosphere, and social networking, will help to achieve the goals our team has set. By using this campaign, Bloomingdale’s SoHo will not only see an increase of sales but also adapt to meet the younger, edgy world of fashion, just like it did 1872 when they met the needs of the ever-changing fashion world. I N. VIII. BIBLIOGRAPHY “Bono Offers Clothing with a Conscience Entertainment Music TODAYshow.com.” - I N - - TODAYshow.com. Ed. Associated Press. 15 Mar. 2005. Web. 15 Dec. 2010. <http ://today.msnbc.msn.comlid/7 1 82840/ns/today-entertainment/#>. N N Tishgart, Sierra. “Mingle with Designers at Bloomingdale’s in Soho on Fashion’s Night Out: N I N I I I N : N Talking Fashion: Style: Teenvogue.com.” Teen Vogue. 30 Aug. 2010. Web. 15 Dec. 2010. <http://www.teenvogue.comlstyle/blogs/fashionl2010/08/mingle-with-designersat-bloomingdales-in-soho-on-fashions-night-out.html?printable=true>. IN; I I I N N N “Bloomingdale’s Press Releases.” Shop Bloomingdales.com. 17 Oct. 2002. Web. 15 Dec. 2010. - <http ://www.bloomingdales.comlabout/company/press/detail .ognc?newsID3 1>. N N IX. APPENDIX I N N N ‘N Press Release I Contact: Maria Diliman [email protected] 504 Broadway FOR IMMEDIATE RELEASE: I N Fashion’s Night Out features Bono and Au’s EDUN New York, NY 10012 212-729-5900 NN New York New York—August 15, 2011 Fashion’s Night Out is the highlight of the fall season — I when stores across Manhattan open their doors past normal hours for a night sure to be in every shopaholic’s dreams. Celebrities, designers, and models flood the stores to promote their favorite lines. The date is set for September 8, 2011. Bloomingdale’s SoHo is not left out of the party; the store will be featuring EDUN’S new fall line the “Garden of EDLTN.” The fall line will be going back to basics just as EDUN’s owners, Bono and Au Hewson, intended when they created the brand in 2005. !‘ :f N Bono and Au will be present the whole night to promote EDUN and its ethics. EDUN apparel is based out of Africa to promote “trade not aid.” They incorporate sustainable and organic materials for their clothing as much as possible. & Fashion Merchandising Promotion Plan Marcus High School DECA Marcus High School 5707 Morriss Road Flower Mound, TX 75028 Kathryn Gaines April 30, 2011 Table of Contents I. Executive Summary 1 II. Description of Store 2 III. Objectives 3 IV. Schedule of Events 3 A. Special Events 3 B. Advertising 6 C. Display 7 D. Publicity 8 E. Other In-Store Activities 8 V. Responsibility Sheet 9 VI. Budget 10 Vu. Statement Benefits to the Retail Establishment 10 VIII. Bibliography 11 #44 EXECUTIVE SUMMARY About H&M: H&M is an international clothing store with one goal: to offer quality and fashion at the best price. The store opened its first store in Sweden in 1947 and has since moved worldwide, notably to the United States in 2000. H&M is frequently recognized in fashion magazines as a store that has the latest styles for reasonable prices. Though H&M currently caters to sizes 2 to 14 and S to L, H&M has determined that brand expansion into plus sizes 14 to 24 and XL to 3XL to be a promising strategy. With the integration of sizes 16 to 24 in the store, H&M will kick off a promotional campaign in the United States with the release of the 2011 Fall Line, advertising the release of the new additional sizes. Goals for the year following the promotion: • Increase number of customers by 30% • Increase total profit in the United States from the addition of plus sizes by 10%, in addition to the projected annual 15% increase, for a total of 25% increase in profit • After having great responses from the addition of new women sizes, H&M will next look to incorporate men’s plus sizes Promotional Campaign: The campaign will be a national campaign throughout all H&M stores in the United States. The campaign will have two parts: promoting the new fall fashion line, while incorporating the promotion of the new sizes. The campaign will be themed “Leaves Aren’t the Only Things Changing,” and will span four weeks, beginning in mid-August and ending September 15. The campaign will advertise the new sizes, while avoiding the blatant singling out of plus size women. Primary promotions will occur through our customer database, appearances in NYC Fashion Week, University events, scholarship opportunities, internet advertising, and in-store promotions. In addition to planned advertising and promotions, all stores will undergo modified displays. Budget: After assessing the figures from previous sales years, H&M is expected to have a profit in the United States of approximately $1.3 billion dollars from the 2010 sales year. From this profit, H&M will invest $879,975 in the four-week plus size/fall line promotion. This should result in a 25% profit increase for the year directly following the promotion, with total profit up to $1.62 5 billion from United States sales. 1 II. Description of the Store H&M is an international retailer, selling clothing, accessories, and cosmetics. The store is dedicated to providing high quality products while maintaining low prices for their customers. H&M’s target market is anyone with an interest in fashion, including women, men, and children. The store offers an extensive variety of clothing as well as constant shipments of new things, easily catering to all tastes. The company launched its initial store in Sweden, and is still exploring new markets today. H&M can now be found in 35 markets and has 1,988 stores worldwide. The United States ended the 2009 sales year with 189 stores, but has since opened several more and has plans to continue the growth. The United States stores are predominately located on the East Coast and/or in large cities. However, H&M is in a minority with many retailers today in that it does not offer online shopping for American consumers. H&M remains a special treat to shoppers because what is found in the store can be found nowhere else, adding a unique feeling about purchases. H&M has recently explored alternative additions to enhance their sales. The headquarters have come to the consensus that the addition of plus sizes will increase overall sales and contribute to the targeting of “all who appreciate fashion.” H&M has embraced the expansion of sizes based on surprising, current statistics. The average sized woman in the United States is a size 14; 67% (75 million) of American women wear a a size 14 or larger. Surprisingly, only 17% of apparel is made for size 14 or larger, limiting options for plus size shoppers. Currently H&M only produces women’s sizes ranging from 2 to 14, similarly, small to large in tops. With the addition of plus sizes H&M will increase its clientele, targeting an increase in profit margin as well. With the addition of the new sizes, H&M will now compete with retailers that also sell similar sizes, such as: Forever 21 (Faith 21), Target, and Torrid. Through the innovative H&M Fall 2011 fashion promotion, the store hopes to gain the advantage over these competitors. III. Objectives Through H&M’s two-part promotion, “Leaves Aren’t the Only Things Changing,” the popular brand has discussed three main objectives to be achieved in the first year after promoting: • Increase number of customers by 30% • Increase total profit in the United States from the addition of plus sizes by 10%, in addition to the projected annual 15% increase, for a total of a 25% increase in profit • After having great responses from the addition of new women sizes, H&M will next look to incorporate men’s plus sizes IV. Schedule of Events A. Special Events After evaluating the typical H&M shoppers, it has been determined promotions need to be geared toward a range of teenagers to thirty-year olds, with the full range of sizes. Young adults are our largest group of shoppers. Each event or mode of promotion has been designed to attract a particular group of the identified target markets. The first promotional event will target the teenage shoppers, particularly of high school age. The event will be the ‘H&M Scholarship” offer, with the application available on the website, as well as advertised through Fastweb Scholarships (a popular scholarship online database for high school seniors). The scholarship will be available for rising college freshmen interested in pursuing a career in fashion. The application will require an essay based on “A time you felt out of place,” as well as mandatory registration for the H&M mailing list. There will be five scholarship winners, first place awarded with $10,000; second and third $5,000; fourth and fifth - - $2,500. Applications for the scholarships will open the third week in August and will close September 15. The next promotional event will target our newly acquired plus size shoppers. H&M will participate in NYC’s Fashion Week by modeling the new line in OneStopPlus.com’s plus size fashion show. The fashion show appearance will directly advertise the addition of plus sizes, as well as gain publicity from fashion media, which will help reach a broader audience. In addition to participation in the plus size fashion show, H&M will have representatives at a booth be set up the entire week. These representatives will be there primarily to further excite shoppers. NYC Fashion Week will take place September 8 -15 and will preview looks for Spring/Summer of 2012. The “Leaves Aren’t the Only Things Changing” campaign will conclude here to excite interested shoppers for prospective buys for future seasons. At this point in the campaign, word will be out regarding the fall line, so therefore this event serves primarily to interest our plus size shoppers, assuring H&M’s new sizes are a permanent addition. The last promotional event, University to University, will take place at universities throughout the nation: Ohio State University, University of Minnesota, University of Central Florida, University of California Los Angeles, University of Washington, and Boston University. Not only are these some of the largest public and private universities nationwide, they are also located in cities with at least one H&M store or a store location nearby. This event is geared toward our college student market, stimulating an interest in the new fall line. In addition to reaching young adults, statistics show that 34% of Americans (20 years and older) are overweight; allowing the fashion shows to reach both markets. Fashion shows will be held at the universities. All attendees will receive promotional, fall-themed coupons. The models will be all sizes and model different looks. At the conclusion of fashion show, the H&M University to University competition will be announced to the student bodies. The competition will begin September 1st and include the six universities who participated in the fashion shows. The university students will have two weeks to purchase fall-line items. At the time of purchase, students will identify the university they attend, by showing a student ID, to the store. At the end of the two-week period, stores will tally the sales sold from the students and corporate offices will compare results between participating schools. The school with highest total dollar sales will win a free private concert by OneRepublic. B. Advertising Through today’s low-expense advertising, H&M will focus on capitalizing on online advertising beginning August 15. H&M will use all of the resources to not only promote the new line, but also inform people of upcoming events and promotions. H&M will advertise both the fall line and new sizes on their Facebook fan page. H&M will continue advertising via social networks through their capitalization on Twitter by creating an account. H&M will select one item a day from the new line to advertise on Twitter, Facebook, and the already existing H&M app. H&M will showcase this item by incorporating the item into three different looks and displaying the samples on these media outlets. Through these updates, “fans” will be notified of the premiered item daily. H&M will also purchase a banner ad on OneStopPlus.com, an online “shopping mall” for plus size shoP4 addition, H&M will send e-mail blasts to the customer database; the e mail will include the monthly newsletter with a feature article about the new sizes. Another method of advertising involves the purchase of Google key word association, meaning when “plus sized clothing” (or something similar) is searched in Google, H&M will be a top result. The final method of online advertising will come from the promotion released online through Groupon. Groupon members will choose to accept H&M’s proposed “deal,” and then print their voucher and bring into H&M stores to enjoy for discounted shopping. The “deal” will be proposed one day near the beginning of the campaign and will be applicable to purchases for the remainder of the promotion. In addition to online advertising, H&M will continue their other modes of advertising including: print ads, television commercials, and outdoor advertising. One change that will come about through this campaign is the addition of scan icons on the magazine ads; these icons allow SmartPhone owners direct access to the H&M home page their cell phones. C. Display A unique aspect of the “Leaves Aren’t the Only Things Changing,” campaign is the assimilation of the new sizes into the rest of the store’s sizes. H&M’s overall goal is to find a balance of promoting the new sizes without offending the women who wear the new sizes. Sizes will not be split into different areas of the stor women’s sizes will be placed on racks together, for we want all women to feel equal. In order to further equalize women, H&M will invest in larger mannequins, which will be placed and dressed on display along with the current mannequins. Large signs will be purchased for front windows reading, “Now carrying sizes 2-24.” In order to satisfy the fall portion of the campaign, all displays will be changed to reflect the fall season. All store displays will coordinate our methods of online advertising in order to also feature the “Item of the Day” in stores. All stores will have three mannequins displayed with the item while incorporating the item into a “different look”. In store changes also include the playing of the hit CD “Waking Up,” recorded by H&M’s partner band: OneRepublic. D. Publicity Press releases and media kits will be sent to fashion magazines such as: Marie Claire, Seventeen, and Elle. These releases will be sent to the companies in June, so articles may be published in the August editions of the magazines. In addition to the magazines, all of these companies have websites as well as iPad/iPhone/iPod apps that constantly update with fashion trends and news. E. Other In-Store Activities With the strong emphasis on this campaign, H&M believes it is important to have store employees motivated as well. Not only will the employees be enthusias:ic about the sales, they will also new fall line while at work. As further incentive for the employees during the four-week period to succeed at work, a contest will be held in order to determine which employee can sell the most clothing items. When customers checkout, they will be asked to identify the employee who helped with the sale for the day, and if plus-sized, that employee will receive two credit marks for each plus-sized item purchased. For all other clothing purchases, each sales employee will receive one credit mark. All employees will rotate positions in the store, allowing for equal opportunity to influence the same number of sales. At the end of the period, the sales associate with the highest number of items sold from each store will receive a $200 bonus. V. Responsibility Sheet A. Corporate Offices • Set up appearance in NYC Fashion Week, particularly modeling in OneStopPlus.com’s show • Set up scholarship application on Fastweb and determine winners • Approval with OneRepublic for private concert and verification of CD playing throughout stores; purchase CDs • Send media kits to identified companies in June • Decide on universal display materials and items for all stores • Subscribe to Groupon and assign regional managers meetings with Groupon representatives to create reasonable promotion • Determine Item of the Day and update Twitter, Facebook & H&M app daily • Purchase banner ad for OneStopPlus.com • Specific Assignments regarding: Columbus, Minneapolis, Orlando, Los Angeles, Seattle & Boston locations: 1. Contact six universities and arrange for fashion show to be held first week of September 2. Order promotional fall coupons for handouts at shows 3. Split assignments and organizations between all managers in same city and implement a system counting student purchases for contest 9 Send e-mail blasts Purchase Google key-word association Manager (Specific to six cities) Participate in University fashion show th 9 Hold in-store meeting on July 2 Order necessary merchandise to stock stores Order display arrangements (mannequins, signs, fall arrangements, and CD) from headquarters • Order Fall Catalogs to leave for shoppers at cashier C. Assistant Managers • Design store displays when decorations arrive • Review acceptable outfits for employees to wear; all fall line items • Review and record sales count for employee contest daily D. Sales Associates • Wear fall line outfits when working • Rotate working sales floor; when working, encourage customers to try new items and educate about new sizes Budget • • B. Store • • • • VI. 1romqiona1 Jyeflt CD Purchases 1 .500.00 Private Concert Set Up I O.000.00 OneRepublic Fees 1 OOMOO.O0 Plus Size 1 34375M0 Mannequins • Additional Fall Display New Sizes” Banners Show Costs for all Universities Banner Ad • OneStopPlus.com Goole Word Association — I 07.500.0() 43000.00 60000.00 5.000MO 600.00 Scholarship Awards 25.000.00 Sales Bonus 43.000.00 Participation in Show 300,000.00 • Booth and Table Space 50.000.00 $879,975.00 Total Costs 10 VII. Statement of Benefits to Retail Establishment In addition to the rewards this campaign hopes to achieve through meeting its objectives, H&M will become an even further respected name in the fashion industry. Through the introduction of the new sizes, H&M will expand its target markets, and be known as a store anyone can enjoy. As a result of carrying out this campaign and with the addition of the new sizes, H&M will have expanded its target market to meet one of the company’s primary missions, to satisfy “all who appreciate fashion.” The two part promotion will attract a new group of shoppers as well as increase excitement amongst all shoppers; resulting in increased profits. VIII. Bibliography • http://www.hm.com/us/#/startns/ • http://www.doughroller.net/education/the-1 0-largestuniversities-in-the-united-states/ • http://www.cdc.gov/nchs/fastats/overwt.htm • http://www.channelone.com/video/ • http: //www.nvcfashioninfo.com/fashion-week.aspx • http://www.saddle-records.com/studio rates.htm • http://women.timesonline.co.uk/tol/life and stvle/women/fashi on/artic1e5622399.ece • http://www.groupon.com/learn 11 #41 FASHION MERCHANDISING, PROMOTION PLAN I 4 White House DECA White House High School 508 Tyree Springs Rd White House, TN 37188 “€J3oA&9iwe O41 DDiard Molly Alexander February 4, 2011 Table of Contents I. EXECUTIVE SUMMARY 1 II. DESCRIPTION OF STORE 2-3 III. OBJECTIVES 3 IV. SCHEDULE OF EVENTS 3-7 V. VI. VII. VIII. IX. A. SPECIAL EVENTS 3-5 B. ADVERTISING 5-6 C. DISPLAY 6-7 D. PUBLICITY 7 E. OTHER IN-STORE ACTIVITY(IES) 7 RESPONSIBILITY SHEET 7-8 BUDGET 8-9 STATEMENT OF BENEFITS TO THE RETAIL ESTABLISHMENT 10 BIBLIOGRAPHY 10 APPENDIX 11 I. Executive Summary It is a memory of high school that is not quickly forgotten. It is a momentous occasion that many teenagers look forward to from the time they enter high school. It is none other than the Senior Prom. Prom is such an exciting and memorable time especially for a teenage girl. Preparing months in advance; girls want to find that “perfect dress” that matches their unique personality. Diliard’s has a wide variety of designer dresses to choose from. The ‘oi promotional campaign is designed to give girls the access to get their unique, one- of- a- kind prom dress while giving them a memorable experience. ‘€i1t Ot” will take customers down the streets of New York City to a vintage boutique where they can find their dresses and prom accessories. This campaign was designed with a focus of accomplishing 3 objectives. • • • To increase sales by 20% To ensure the target market receives a one- of- a- kind experience To attract new clientele and create long- lasting relationships with the customers Although Dillard’s is a department store that can service a wide variety of customers from men, women, to infants and provide for the customers’ clothing, intimates, beauty and even household needs, this campaign will be focused on a smaller segment of the store’s overall target market. The ‘lotL Oivty” campaign will have a target market of females between the ages of 14 to 19 with a parental supported household income of $45,000 and higher. All promotional events and advertisements will be focused to this specific group of customers. The campaign will be built around five special events with the “Style is Forever” fashion show and the “Style 101” two-day event being the primary emphasis. These two events will work together to provide the customers with a one- of- a- kind look from the dress, to the hair and even the make-up; all of which can be provided at the local Dillard’s store. A sweepstakes has been created for all customers making a prom- related purchase during a designated period. “Cruise to Prom in Style” is the sweepstakes providing the chance for a limo ride to prom for one randomly selected customer. Additional special events to supplement the campaign include two promotional discounts for the customer as well as a referral promotion. The special events of the campaign cannot work alone; therefore advertising is important in order to communicate to the target audience about the events and special promotions. This campaign will utilize direct response mailing to local customers’ lists, as well as social networking sites such as Facebook along with the national Dillard’s website. A specially designed mobile application will be created to provide an inventory of all prom styles at the customers’ fingertips. National print ads will be placed in national publications such as Teen Vogue and Seventeen to support each local store’s effort. The campaign’s promotional efforts will continue with a complete reconstruction of the junior’s formal dress department into a New York style boutique from the professional lighting, wall displays and the mannequins. This will bring the Vintage appeal to life for the customer as they visit each individual Dillard’s location. The employees will be motivated to add to this memorable experience by providing the ultimate level of customer service through the development of an incentive and bonus program. This promotional campaign can be implemented in more than 300 stores across the nation for a total cost of $1,716,063; with each local store only having to pay $5,700 from the local store’s promotional budget. The benefits that result from the implementation of this campaign will far surpass the initial investment. A memory will be created that will result in a loyal Dillard’s customer. A vintage experience for a teenage girl looking to stand out in a crowd. DlliaffTh The Style of Your Life. 1 II. Description of Store Dillard ‘s is an upscale department store chain with more than 300 locations in twentynine states. Dillard ‘s sells a diverse collection of merchandise from designer clothing to furniture and bedding. Since 1938, Dillard’s has focused on offering attractively- priced, national brand merchandise. Today, a major part of Dillard’s marketing philosophy is based off the founder William Dillard’s keen interest in retail and awareness of the value of effective advertising in building a business. In the early 90’s, Dillard’s moved to a more balanced pricing approach. The pricing strategy was designed to create loyalty and confidence among Dillard ‘s customers. This has proven effective in the multiple departments Dillard ‘s offers. Dillard ‘s offers designer brands in women, men, juniors and children. They also have a formal wear department which focuses on evening wear and prom dresses. This department, in connection with the Juniors’ department, will be the focus of the proposed fashion promotional plan. Dillard’s major competitors include Macy’s and J.C. Penney’s. Due to the recent economic recession, additional competitors include Kohl’s, Target and other discount retailers. Dillard ‘s target market includes middle- to upper-class consumers with premium-priced brand clothing and private label clothing, accessories, cosmetics and home goods. This targeted group of consumers has an annual household income of $45,000 to $79,999. The upper class annual income of the targeted consumer is $80,000 and higher. Therefore, the shopping experiences, along with the high quality brands, are important in the consumers’ purchasing decisions. Dillani The Style of Your Life. 7 Therefore, this promotional plan will focus on communicating a unique experience to assist Dillard ‘s in standing out among the larger retailer competitors. III. Objectives This promotional campaign is designed to reach teenage girls between the ages of 14 to 19 with a parental supported household income of $45,000 and higher. The campaign is focused on providing this target market a shopping experience uncommon in the typical department store. Shopping for the perfect prom dress has grown into a memorable experience for most young girls including months of planning and many shopping visits. Teenage girls want to find that one- of- a- kind dress made just for them. Therefore, the shopping experience provided by Dillard should be one- of- a- kind. The idea is to transform ordinary racks of formal dresses and accessories into a unique, vintage- style boutique, taking the customer to another place as if they were walking through the streets of New York City finding the perfect dress for prom. The campaign will focus on achieving the following objectives: 1. To increase sales of formal wear by 20% over last prom season 2. To ensure the target market receives the personal attention they deserve to have their oneof- a- kind prom look 3. To attract a new clientele and create lasting relationships with customers IV. Schedule of Events: Promotional activity(ies) must include the following: A) Special events: 1. “Style is Forever”: There will be an in-store fashion show located in the juniors department on March 5, 2011. The customer will be able to view current prom styles and receive ideas on how to get her one- of- a- kind prom look. There will be a model search at select Dillard ‘s to pick the girls who will be in the fashion show on February 12, 2011. Di1ani The Style of Your Life. 3 Ten girls will be selected to appear in the fashion show at their local Dillard’s. To be selected, girls will put together their own prom look from the Dillard’s selection. The ten most unique, one- of- a- kind outfits will be selected to appear in the fashion show. 2. “Style 101”: There will be a two- day event, March 4-5, 2011, inviting girls to get advice and assistance for obtaining their one- of- a- kind prom look. i. Sales consultants will be available to assist the customer in finding the right dress and accessories to go along with their selection. ii. The juniors department will partner with the make-up department. Consultants will be able to help girls get make-up advice that matches their personality and the look they are trying to create for prom. The make-up department will be there to help assist the customer in making their shopping experience even more memorable. iii. Dullard’s Salon and Spa will assist each customer to create her perfect oneof- a- kind look. 3. “Cruise to Prom in Style”: The customer will automatically be entered in a drawing when they purchase a dress for a chance to win a limo for her and six of her friends to arrive in style to their prom. The drawing will begin January 10 through March 21, 2011. The winner will be randomly selected at each Dillard ‘s location and announced on March 26, 2011. 4. Special offer: $10 off purchase of prom accessory with purchase of dress. Di1ani The Style of Your Life. 4 5. Referral Card: When customers purchase a dress they will receive “Style Points” to give to their friends. The recipient will then present the “Style Points” and receive $ (15) off their purchase and the customer will then receive a twenty dollar gift card through the mail. 13) Advertising: 1. Direct Response Mailings: Dillard’s will be mailing through the postal service “Prom Guides” to current credit card holders who have purchased items from Dillard ‘s junior department informing them about upcoming events during the campaign. This promotional booklet will contain the upcoming events, prom dresses and different options for ideas on hair and make-up for the target market to try. It will be a minicatalog presented in a magazine format that will be teen- friendly. 2. Magazine Ad: There will be an ad placed in the following fashion magazines with a target market focused on girls between the ages of 14-19. The ad will showcase the atmosphere of the promotional event. The ad will contain information about where girls will be able to find various offers and events available at Dillard ‘s during this time. The ad will be placed in Seventeen and Teen Vogue. 3. There will be a mobile application created for easy access to all the prom items available at Dillard’s right from your mobile phone. The mobile application will allow viewers to browse items, view the current prom styles, and create their own prom look with the dress-up Di1 The Style of Your Life. 5 feature on the site. This provides an instant shopping companion. It will allow customers to pre-shop at Dillard ‘s while also providing them with instant comparisonshopping while at nearby competitors. 4. Social Networking: There will be a Facebook page created to showcase the different prom styles offered at Dillard’s. Facebook friends will be able to upload their one- of- akind prom look for others to view and add comments. They will be able to view upcoming events and special offers. In addition, there will be a twitter account created for people to view and be kept up to date on the upcoming events at their local Dillard’s store. This will provide instant updates on what dress and what style shoppers and friends are wearing. A way to guarantee that one-of- a-kind look. 5. Internet: There will be a pop-up ad placed on frequently visited sites that the target market visits such as Seventeen.com, TeenVogue.com, etc. This pop-up will remind the target market about visiting Dillard’s to find their one- of- a- kind prom look. C) Display The moment you walk into Dillard’s you will notice mannequins dressed up and ready to go to prom. Throughout the store these mannequins will all be dressed differently, showcasing the different ways one can transform an ordinary dress into your own one- of- akind look. When you reach the junior’s department, you will notice something other than racks of dresses. The junior’s department will take you down the streets of New York City into a vintage boutique where you can find that one- of- a- kind dress that you will not find anywhere else. The atmosphere takes you to the twenties with diamond chandeliers and red velvet draped on the walls. Strategically- placed lighting will bring your attention to several mannequins placed in the corners of the room, showcasing more ways to get that one- of- a Di1an1 The Style of Your Lile. 6 kind look. Dresses will be placed in racks along the outer walls opening the room up to ease traffic flow. Tables will be placed around mannequins where you will be able to find what they are wearing. Tables will also be placed in a square in the middle of the room where you will be able to find jewelry, shoes and handbags to complete your own one-of- a- kind look. D) Publicity Publicity is one of the greatest ways to raise awareness of the prom promotional plan. Best of all, it’s free. But there is no control over what is said or when the message will appear or even if a message will appear in the media. Therefore, there is no guarantee of media exposure. Planning of public relations and promotional events are vital along with the communication to all available media. Invitations will be sent to various media groups to attend the fashion show as well as the two- day “Style 101” event. Finally, there will be multiple press releases about “Cruise to Prom in Style” and “Style Points” (referral card). In addition, contacts will be made with local television stations for appearances and brief fashion shows on the networks midday news programming. E) Other in store activity(ies) Sales associates will be available for assisting the customer with their dress selection and other prom related purchases. There will be an employee incentive program to encourage and motivate sales associates to provide the ultimate customer service. Employees will be competing for bonuses that will be awarded at the end of the promotional event. Employees who show energetic and helpful attitudes, and have the most sales, will be considered for bonuses. V. Responsibility Sheet During the €i3t promotional campaign it is important for job tasks to be delegated and completed correctly. Tasks will be assigned to the Dillard’s Executive offices and general Dilhn1 The Style of Your Life. 7 management, junior department managers and assistant managers and junior department sales associates as follows: • Executives will be responsible for organizing and sending appropriate materials to Dillard ‘.s’ stores (general management) and customers/credit card holders: publicity, “Prom Guides,” “Style is Forever,” and “Style 101.” • Junior Department Manager will be responsible for the set-up of displays, “Style is Forever,” and “Style 101.” • Junior Department Assistant Manager will assist the junior department manager with set-up and will oversee customer service and sales. • Sales associates are responsible for keeping the floor clean and well stocked, keeping an energetic and helpful attitude and customer service and sales. VI. Budget This is a national campaign that is projected to cost $1,716,063.00 and cover promotions at all 300 stores across the Nation Wide. The individual store expenditure will be approximately $5,700 to be deducted from the individual store’s marketing budget. The corporate expenses in the amount of $216,247.00 will be for the printed advertisements in the national publications that will benefit each individual store. DiIut The Style of Your life. 8 PROJECTED BUDGET FOR INDIVIDUAL STORE Advertising Display ??Style Point”(Referral Card) “Prom Guide” catalog Mobile Application Invitations/Media Releases $ 670.00 $ 500.00 Lighting Wall props Mannequins(15) Counters/Tables Runway/Stage In House In House In House In House $450.00 Sound System Rental Model Search Materials Chairs(50) $250.00 $350.00 $550.00 Limo Rental $180.00 TOTAL EXPENSES $5720.21 Fashion Show Contest $ 230.46 $2539.75 GRAND TOTAL FOR NATIONAL STORE EXPENSES (300 locations) $1,716,063.00 PROJECTED CORPORATE BUDGET Advertising Seventeen $100,290.00 Teen Vogue Pop-up ad $1 15,897.00 60.00 $ Total Expenses $216,247.00 Dillanis The Sty’e of Your life. 9 Statement of Benefits to the Retail Establishment VII. Oi,t<” promotional campaign, sales will be increased by 20% over During the last prom season. This will be achieved because of the special offers customers will receive when they purchase a dress. The target market will receive the personal attention they need to have their one- of- a- kind look. During “Style 101” the customer will receive the personal attention they need to have their one- of- a- kind look. The promotional campaign will attract new clientele and will create lasting relationships with customers. With the referral card the customer will receive a discount while bringing new customers to Dillard ‘s. The main benefit of the campaign is not just an increase in sales but an increase in clientele. And most importantly this increase in clientele will not only be a customer that just dropped in and left with a questionable opinion to return. The customers of this campaign will have such a positive experience that a loyal patronage will be developed. This is the ultimate benefit in the fact that the target market is a young teenage girl that will soon be the customers with the ultimate purchasing power placed at the central focus of Dillard ‘s target market. This campaign will ultimately benefit each Dillard location by building a loyal patronage that will choose Dillard’s as the top choice retailer for years to come. VIII. Bibliography www.psprint.com www.comdenastmediakit.com/tv/genrates.cfm www.seventeenmediakit.com http ://investor.shareholder.com/dillards/?splashlink=footer investor www.dillards.com http://www.wikinvest.com/stocklDillard’s (DDS) Dillanfs The Style of Your Life. 10 IX. APPENDIX The following picture is the projected plan-o-gram for the Juniors’ department at Dillard’s. V KEY TRAFFIC FLOW DRESSING ROOM 1’ COUNTERS/TABLES . MANNEQUINS STAGE FOR FASHION SHOW Dll1an1 The Style of Your life. 11