New York City: May 2014

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The trip to New York City was absolutely great. I’ve included a few photos in the slideshow above. As mentioned in my previous post, the trip was an elective for school. This was my last elective class for my undergraduate degree.

We went to a variety of companies/designers/brands. We visited Tory Burch, Ross, Foxcroft, Maker & Co., Ralph Lauren, Saks Fifth Avenue, JCPenney, The Container Store, Fossil, Macy’s, and Oscar de la Renta. I had a great time and learned a lot! So glad I had the opportunity to travel to NYC and visit great companies.

As a group, we also did a great food tour in Greenwich Village and saw Motown: The Musical. It was great! I already miss the food from the food tour (the arancini and pizza was the best!). The broadway show was so great too! We also visited the Metropolitan Museum of Art. Anyone could easily spend an entire day at the MET.

We also had free time. For me, my free time consisted of sightseeing and food. I visited a variety of places in NYC including a few stores (UNIQLO & NikeTown), The Empire State Building, Central Park, and the 9/11 Memorial just to name a few places. As far as restaurants, I ate at Joe’s Shanghai Chinese, McGee’s Pub, Havana’s, Europa Café, Serendipity, a cute café in Bryant Park, Amici Il, Ferrara Italian Bakery, on top of the Marriott in Times Square at the rotating restaurant (forgot the name), and The Halal Guys.

I had so much fun and already missed NYC! I cannot wait to go back.

NYC Market Resource Guide

Retail Store Analysis of UNIQLO

Visual Merchandising

            Window Displays.

            UNIQLO has unique window displays. The mannequins in the window displays rotate in circles. All of the mannequins were synchronized. The mannequins are clear with eccentric garments (see Appendix A, figure 1). Spotlights focused on the mannequins (see Appendix A, figure 1). This allows customers to clearly view the unique window displays. The spotlights also block the customers’ view from seeing directly into the store. This is a great strategy because blocking the view into the store will cause customers to want to enter the store. When I first saw the window display I was in complete shock. I had never seen such a unique window display or a display with clear, rotating mannequins (see Appendix A, figure 1). The items on the mannequins also provoked me to search for the items within the store.

            Interior Visual Merchandising.

After I entered the store, I was taken away by the enticing displays. When I first walked in I saw stairs with lights that had a variety of words (see Appendix A, figure 2). I had never seen stairs with scrolling words. The theme also reminded me of a stock exchange scrolling screen. I then saw similar mannequins to the window display mannequins. All of the mannequins were clear with bright lights. I also saw interior window displays that showed the MoMA special editions shirts. The interior displays were unique. The Airism display had a row of similar mannequins dressed in the Airism special shirts (see Appendix A, figure 3). Each mannequin was close to the corresponding article of clothing. As previously mentioned, the mannequins were synchronized and all had some sort of pattern. The inside displays were organized by lines and parallelism. The displays were not out of place and everything had strict order.

Store Characteristics, Layout, and Appearance

            Characteristics.

            The lighting was bright and created focus on the items. The lighting caused customers to stay awake and engaged with the store because of the lighting. The store was organized and in place, which meant that everything was convenient to access. The store had three floors and had unique stairs leading the customers upward. The store also had escalators with bright red lights (see Appendix A, figure 4). The store had a contemporary setting. The store reminded me of a mix of Times Square, Wall Street, and Tokyo. The store was very vibrant, colorful, clean, and organized.

A unique aspect of the store was the iPads that were located at the front of the store on the top floor (see Appendix A, figure 5). The iPads allowed customers to view the products and purchase online. This expressed UNIQLO’s unique mindset towards the future of retailing.

            Layout.

The store’s layout consisted of a bottom floor, a second floor, and a third floor. Each floor had a variety of products. The first floor had men’s and women’s graphic tees. The second floor had graphic tees and the MoMA special edition shirts. The third floor had a variety of men’s and women’s apparel. The left side of the third floor had women’s dress clothing, basics, casual wear, work wear, pajamas, specialty items, and lingerie. The right side of the store had more women’s clothing, men’s clothing, and graphic tees. Each floor had a unique feel and had hallways separating each section of the store. The hallways had a variety of products.

            Appearance.

            The store was organized and clean (see Appendix A, figure 6). All the items were in place and everything was folded correctly. Sales associates were constantly folding clothing items, so nothing was out of place. The hallways had dim blue lights with mirrors and a parallel line of mannequins. There were television displays discussing each product type and the benefits. The television displays were located in every part of the store (see Appendix A, figure 7). The television displays were also synchronized, which enhanced the theme of the synchronized displays (see Appendix A, figure 8). Everything within UNIQLO was coherent and went together. Nothing was out of place and all of the displays, layout, and items were in perfect order.

Merchandising Analysis

            UNIQLO sold a variety of items. They had items for men and women, as well as unisex items. They showed unique fashion leadership through the merchandise in their store. They had a wide assortment of items for men and women. The breadth and depth of the assortment also varied, but since they sell basics the breadth and depth was wide. UNIQLO is a fast fashion retailer and the products range from $5 to at least $30 for a basic item.

Merchandise Assortment.

Women’s.

UNIQLO sold a variety of women’s apparel. When I first entered the store I saw unisex graphic tees. The second and third floor carried an assortment of women’s items. They sold basics, winter wear, lingerie, nighttime, graphic tees, sportswear, work wear, and casual wear.

Men’s.

The men’s merchandise was similar to the women’s. They sold graphic tees for men, dress clothes, casual clothes, basics, underwear, sportswear, and nighttime clothing. The men’s clothing reflected the simplistic image of the women’s clothing.

Fashion leadership.

UNIQLO stands for unique. UNIQLO was originally a typo and was originally meant to mean unique clothing. UNIQLO is truly unique compared to other fast fashion companies. The store environment reflects the fashion choices from UNIQLO. They had special edition shirts from the MoMA with artists such as Andy Warhol (see Appendix A, figure 9). Pop art is a great design for a graphic shirt. UNIQLO’s graphic shirts were all unique and innovative compared to other companies.

UNIQLO also sells specialty clothing such as their Airism line. Airism is very lightweight, stretches, and allows the wearer to stay cool during physical activities. Not many fast fashion companies have speciality products that are unique to their brand. No other fast fashion company has a product like the Airism line. UNIQLO also sells lingerie made from the Airism line.

Breadth and depth of women’s basics.

            UNIQLO is known for their basics. There was one shirt in particular that came in eight different colors and in seven sizes. The shirt colors came in light gray, dark gray, blue, green, black, white, purple, and pink. The sizes were extra-extra small, extra small, small, medium, large, extra large, and extra-extra large.

Price range.

            As mentioned, UNIQLO is a fast fashion retailer. A basic shirt could be around $10 while a special edition graphic shirt is $20. Most of UNIQLO’s products are less than $50 and more than $5. For the price, the quality of UNIQLO’s products is of high quality.

Customer Service

            In every area of the store there were great sales associates. The customer service was amazing for a fast fashion retailer. I saw sales associates constantly fixing displays, folding clothes, and organizing the racks. There was not a second where a sales associate was slacking off. About five sales associates approached me to ask if I needed help. When I was in the dressing room I realized I could not try on one of the package items. The associate in the dressing room gave me a sample size and helped me choose what would fit best. When I was trying on the clothes, I noticed a sign in the dressing room about alterations. UNIQLO offers alterations on any UNIQLO pants that may fit incorrectly (see Appendix A, figure 10). The sales associates wore all black and were extremely friendly. They were punctual and organized. I had watched a sales associate in the graphic shirts area and he folded the clothes efficiently and quickly. Overall, the sales associates were knowledgeable in their products and friendly towards the customers.

Store Image

            UNIQLO’s target customer consists of males and females who are young adults and make around $10,000 to $24,000 a year (Assad, Markowski, Mawer, Setiawan, & Wong, 2013). The target market is a millennial who is interested in constantly changing their fashion for an inexpensive price (Fashion Target Market, n.d.). Their target market is interested in quality products for a lower price.

The store’s image varied once I visited the store. I have always loved what UNIQLO stood for as a company and liked their website. Unfortunately, the website does not do the company justice. The website is organized and clean, but does not express the unique quality of UNIQLO. When I visited the store I was amazed at the environment. I really enjoyed the store experience and was taken away with the culture. I knew UNIQLO would be unique, but I did not realize that UNIQLO would be such an eccentric store.

I did not know about UNIQLO’s special line such as the Airism products. The Airism products are very helpful for people who may workout or want to wear clothing that keeps them cool. I also did not know that UNIQLO would alter the products for the customer. I have never heard of a fast fashion retailer who would alter clothes for the customer.

The merchandising and display techniques were so unique. I had never seen a spinning, clear mannequin in any store. I also had never seen the use of light at a store like how UNIQLO uses light. The lights really created a consistent focus on the products, while keeping the customer entertained. The parallel lines and synchronized displays were also of interest to me. To stay consistent with the simplistic and organized image, UNIQLO used parallel lines and synchronized images throughout the entire store.

UNIQLO is unlike any fast fashion retailer I have ever visited. They may sell somewhat similar products, but the environment and customer service top any other fast fashion retailer. UNIQLO’s displays create a fun and exciting environment to shop in. UNIQLO almost seemed futuristic for 2014. What impressed me about the store was the organization and cleanliness of the store. I was also fascinated with the bright lights and light signage.

Appointment Summaries

Tory Burch

            Tory Burch was created in 2004. Mrs. Burch decided to create the designer label when she noticed a gap in retail. Designer brands had high-end with high prices. There were no middle-point designer brand labels. The company sells a variety of products including fashion apparel and accessories. Tory Burch has 100 stores global and channels through customer and wholesale. The company is all about the business and big data. They focus on how customers shop so they can tailor to their customers’ needs. Everything is customized at Tory Burch. The brand tells a unique brand story throughout all channels of the business. They embrace the Americana style, while focusing on the local DNA of every location.

Miki Berardelli had a variety of experience prior to Tory Burch. In 2009, she became the Chief Marketing Officer of Tory Burch. She had previously worked for a client management company. She has always navigated the arts and sciences, meaning that she worked with her left and right side of the brain. The CMO position allowed Berardelli to use both sides of her brain and work creatively while working analytically. Her advice was to find a great mentor and work with people who believe in you.

Lindsey Waller is the head of digital branding. She works with the corporate market. Instead of return on investment, she focuses on return on brand. She originally earned her Bachelors of Fine Arts in Textile Design. She has experience in multiple agencies but discovered that passion is the most important quality when succeeding in the work field. She had experience with RGA Nike ID, Ralph Lauren, and The Zoe Report. At Ralph Lauren, Waller met Mrs. Berardelli. She worked with the interactive house agency, which dealt with project manager skills, interactive digital experiences, and unique displays. Her advice was to work for a company with a great company culture and to not be afraid to take calculated risks. She believed that it is important to own your mistakes and learn from them.

Victor Abakey, also known as Vic, works in the digital commerce market. He originally grew up in the Dallas-Fort Worth area and studied broadcast journalism. He had work experience at a variety of digital marketing agencies. He enjoyed the small environment because he was able to learn a little bit of everything within the company. He works part-time at Tory Burch and owns his own agency. He had started Range, which later turned to iProspect. He works with search engine marketing and search engine optimization. His advice was to think about the culture of a company, because it will be a massive piece of what [you] will want enjoy.

Gary Chang works in Customer Relationship Management and database marketing. Mr. Chang enjoys measuring the results of CRM. His official title at Tory Burch is the CRM Manager. He studied economics with a variety of other business related studies at New York University. He had internships in customer research and had a passion for analytics. He worked for Ralph Lauren as a Marketing Intelligent Agent. He would take numbers to make strategies for the company. His advice was to understand the work community and environment before accepting a job opportunity.

Ellie Stoving is the Director of Marketing. She worked with Ann Taylor as a Marketing Coordinator with account services. She started to follow Tory Burch on the variety of social media, which led to her ultimate passion for the company. She had experience in traditional and international marketing. She focuses on product and company objectives. Her advice was that if you are passionate about something to go for it and to have a point of view.

The speakers at Tory Burch inspired me to go after what I am passionate about. The speakers also gave me great insight on all aspects of a business. The appointment benefitted me because of the great content to further my knowledge in retail.

Ross Corporate

            Ross Corporate had three speakers that included Isabella, Ryan, and Melinda. Isabella is a college recruiter, Ryan works for Dee Dee’s Discounts, and Melinda worked in the junior’s department. There are 1,200 Ross stores and 145 Dee Dee’s Discount stores. Ross and Dee Dee’s is based on the treasure hunt, so the store environment is filled with a variety and assortment of products.

Ryan is a location planner at Dee Dee’s. He attended the University of Maryland and completed the Ross internship. Retail was on his mind while studying in college. He studied supply chain management. Ryan mentioned that they plan each store by the specific region. The company will look at demographics, climate, socio-economic income. Ryan will look at regional data to measure what type of products should be in each location. He plans the store and region plans. He will decide how many products will be in the store as well as plan classes of inventory in each region. He mentioned that Dee Dee’s has a lower price point compared to Ross.

Melinda has worked in the junior’s department for one year. She attended the University of Texas and studied Fashion Merchandising. She worked at JCPenney as a buyer as well as Buffalo Exchange. She mentioned that the price point is very different from JCPenney, which was interesting to see. The markup on the product relates to the relationship with the vendor. It is important to be the first person the vendor calls with an opportunity. Ross has no terms, cost concessions, and is very straight forward, which vendors appreciate. She said that a typical week consists of a variety of things. On Monday she will create reports. She mentioned that it is important to track orders from vendors during this time. Monday is also a time when to view what is working for the company and what is not working. Tuesday through Thursday Melinda is in market. On Friday she visits competitors to figure out what would be best for Ross’ junior customer. She mentioned it is important to communicate with the vendors because if something goes wrong, then the vendor can look for in-stock items to ship immediately.

Overall, Melinda and Bryan focus on what the customer wants and needs. Each store and product assortment is determined by the customers’ tastes, style, and preferences. The items chosen are also dependent on the business strategy and company metrics.

Foxcroft

            Foxcroft is vendor that specializes in making shirts for a variety of brands. For example, Foxcroft has worked with Nordstroms and Von Mauer. The company has also worked with private labels such as Dillard’s, Brooks Brothers, and Chico’s. The typical price point of a Foxcroft top would range anywhere from $69 to $99. The New York City office works in women’s wear with a sales department, design department, production department, and technical design department.

Buyers visit the Foxcroft shop when interested in purchasing products for their company. Most of Foxcroft’s items are woven and contain a wet-finish property. The wrinkle-free shirts are performance driven. They use a wet-finish with high temperatures to set the property of non-iron in the products. They use technology for women with a need for great performance. The technique can be used on any fabric and print. They are also the only company who has created a wrinkle-free Tencel fabric. Foxcroft wants to make a product that will focus on how the end consumer will look. They want them to look great when they leave the house and go out after work.

The company culture is open. They have an open door policy. All meetings are open. They have weekly and monthly department meetings where everyone will come together to discuss the products. There is also a creative-side to the business. It is important to always listen to what others have to say about a product. Their input can be helpful. Of course, decisions must be made by the end of the day. All decisions made must result in the best interest in the company and the client. The company must look at the bigger picture.

Foxcroft works with Nordstrom. Nordstrom will ask for a number of products during their annual sale, which means Foxcroft will have to sacrifice one month’s of revenue. The sacrifice results in a great relationship with Nordstrom.

Foxcroft has an internship program in the Spring, Summer, and Fall. The majority of the internships are at The Apparel Group in Dallas, Texas. The new laws in New York City make it difficult for Foxcroft to have internship opportunities.

The business is creative, but it is important to focus on the business and to sustain it. To work in Foxcroft it is important to understand math and Excel. The worker must know the product and understand the analytics as well.

Workers will test products. Natural products or certain products have a natural property that could cause a reaction, such as wrinkling, which is why the company tests all products. They choose trends, but create a way to make the product trendy and exciting.

I never understood how manufacturers worked. Foxcroft definitely opened my eyes to the business and allowed me to see a new aspect of retailers. The speakers benefited me by giving great information about the industry.

Maker & Company

            Maker & Co., also known as Maker, was founded in 2010. The owner created the company because he wanted to create his own concept. He wanted to create an authentic company that had a great heritage. His company story involves a family who had moved to New York City from Ireland that created unique handmade products with the best craftsmanship. He works in private labels and larger companies. With larger brands he can charge higher prices because of the unique brand image.

The New York City office has a sales department, design department, and a marketing department. The products are sold in a variety of private labels and companies including Nordstrom and Bass Pro Shop. The company focuses on the ‘makers’ in a variety of aspects to express the brand image. For example, the owner wanted to feature a boat maker in the products to emphasize the ‘maker’ quality of the brand.

He also stressed that it is important to use both sides of the brain, similar to what they mentioned at Tory Burch. He believes it takes creativity and analytical thinking to own a business. He also believes that “we must be true to our DNA and not chase fashion.”

Each product is unique to Maker. He works with a family in Italy to develop unique products for maker. He travels the country to view trends and find inspiration. He will look at the detail in the marketplace when making decisions on products. He wants to be unique and different from retailers such as Ralph Lauren or Vineyards.

The target market is a man who is comfortable in his own skin. They are also well educated, loves to travel, is diverse, and knows the quality of the products. Everything Maker presents expresses the DNA of the brand. He wants to focus on the European mindset, which means the products are meant to last forever and be worn until they fall apart. He does not like the U.S. mindset about fashion. Most U.S. style focuses on fast fashion that can be quickly worn out and thrown away. He also does not like the concept of creating logos on the products. Each product, fabric, and details have an interesting background.

His ultimate goal is to open a storefront. He would like to start locally in New York City and eventually expand. He would like to have stores that are around 1,200 sq. ft.

The logo was created because the penny was greater than the farthing in the U.K., which is why they used the unique bike for the logo. In conclusion, he had a passion to create his own company because he wanted to do what made him happy.

The company benefited me by allowing me to understand the true passion of retail owners. The owner was passionate and caring about his business. The appointment benefited me because I was able to understand how small businesses can thrive.

Ralph Lauren

            Ralph Lauren had a unique store environment. Every room and floor was color coordinated in a rainbow pattern. The leather products were also arranged by leather type. For example, suede shoes were in one section while Italian leather products were in another area. Each room had unique displays that featured a lifestyle around the products. Each room had a different lifestyle image. For example, the building was surrounded by paintings, but each room had unique decorations to create unique experiences to the room. Each room was unique and had its own story to tell.

The Rylander family built the original mansion in 1897. The Rylander family had lived across the street when Mr. Rylander had passed away. A family had not actually lived in the Ralph Lauren building until the Ralph Lauren “family” moved in.

Each floor had unique products. The first floor had men’s and men’s accessories, the second floor also had men’s products, the third floor had Polo Ralph Lauren products, and the fourth floor had unique gifts. The fourth floor had gifts including a poker set, odd gifts, a ciclotte class exercise bike, and a teckell krystal foosball table.

Ralph Lauren had a great environment that was very inviting and unusual to experience. I had talked to the Store Director to compliment the appearance of the store. She mentioned that the store appearance was actually in the worst shape because they had been very busy with appointments with clients.

The appointment benefitted me by giving me a different experience compared to what I am usually used to. The store environment was very unique compared to other fashion-related retailers.

Saks.com

            Saks Fifth Avenue had great information on eCommerce and the digital side of the business. Michael Burgess is the Digital Director of the Hudson Bay Company. This includes a variety of stores such as Saks Fifth Avenue, Off 5th, Hudson Bay, and Lord & Taylor.

Lincoln is the Chief Site Merchant for Saks.com. He works with merchants who buy the products for the website. He will work to get correct emails, events, and important information on the side from the merchant prospective.

Irene is part of Digital Marketing. She works with natural search, search engine marketing, affiliate advertising, and mobile advertising.

Mayra works on the email program, online promotions, the online loyalty program, and the vendor-marketing program.

Saks Direct was originally launched and the Off 5th website later launched. They are focusing on building one platform. Around 70% of Saks consumers are shopping online. 10% are transactions online, 20% includes in-store purchases based online, and 40% involves digital in some way, but with an in-store purchase. More people visit Saks.com versus visiting the physical store. The consumers are continuing to move online, which means Saks must align the channels. All products must show a coherent customer trend.

There are buyers online and in-store who buy/research trends for both channels. This is because the various channels should be seamless. The digital marketing department incorporates store and online testing in an omnichannel way. The content on the site is a collaborative experience with all departments.

Saks Fifth Avenue is planning on expanding their digital space, which means the company must focus on the omnichannel experience. Saks plans on achieving an omnichannel experience by creating a large plan that focuses on technological systems and better customer experience. They want to make sure the customer can shop seamlessly. As far as digital marketing, digital marketing strategists work for online marketing to focus on driving traffic in-store. They will focus on the promotional campaigns on creativity and content. This relates to the spending amount on paid and organic. They will measure the efficiency of the advertisements through return on ad spend, track spend on every level in the store, and look at visits/clicks to track the amount of spend per conversion.

As far as the buying department, the buyer will have two to four people working with eCommerce buys. The merchandise analyst is under the merchandising team and will look at sales. They will eventually become buyers.

The analytics team is under the marketing and analytics department. They are responsible for the site such as the navigation and the analytics of the site. The site merchandise operations will work on A/B testing and market research. Overall, the departments work with data and analytics on eCommerce.

Saks benefitted me in many ways. I was excited to hear the company speak about eCommerce, since they were the first company to focus on the eCommerce side of business. I also like the responses to my questions. Saks seems like a great company who is expanding in eCommerce in a positive way.

JCPenney

            JCPenney has 1,100 stores. There are opening a new JCPenney store in the summer. James Cash Penney started the company in 1902. The New York City building was originally a competing store with Macy’s as shown in Miracle on 34th Street. The building is also connected to the subway, so JCPenney and other retailers receive a lot of traffic.

The current location of JCPenney opened in 2009. They have hard shops and soft shops in the store. The hard shops are permanent and cannot be moved. The type of floors and fixtures can identify a hard shop. For example, hard shops will have wood floors. MNG by Mango is an example of a hard shop within JCPenney. Soft shops can be changed and do not have features that cause the shop within a shop to be permanent.

Mannequins are silent sales people within any retail store. JCPenney believes their mannequins are their silent sales people, which is why their visual displays are the most important aspect in drawing customers into the store. They will strategically place mannequins depending on the season, upcoming holiday, etc. JCPenney also has a People Magazine style watch display. They have multiple People setups throughout the store. The displays will have a variety of apparel to reassure customers of JCPenney’s classic style. The mannequins will drive customers to purchase the products.

JCPenney has many private labels. The private labels have individual areas in the store with their own unique look and feel. Each area is organized by brand, style, then color. They have multiple signs to draw customers into each individual shop area of JCPenney. Every JCPenney has the same displays and signing.

JCPenney must comply with ADA standards. This means they must make each rack, aisles, and space within the store to comply with disabilities.

JCPenney had some unique designs that I had noticed. To draw in a millennial consumer, JCPenney had the mobile application display behind the checkout area. I also noticed a few negatives about the store appearance. Many of the hangers were unorganized and had batwings. Batwings are when a garment fell off a hanger exposing one side of the hanger in the air. The store was over packed and crowded. Since the ceiling was low to the ground, it would be best for JCPenney to clear out some of the merchandise on the floor to make the area not seem overwhelming.

I benefited from this appointment because I was able to view a New York City location of JCPenney. I am usually used to Texas locations and it was interesting to compare local stores to a NYC store.

The Container Store

The visual merchandising techniques of The Container Store located in New York City are very unique compared to other The Container Store. The atmospherics of The Container Store enhances the store image because it evokes the senses. The merchandise is displayed in a lifestyle setting throughout the store. The atmosphere that the merchandise creates evokes sight and encourages multiple sales because the items are paired together. The color coordination of the merchandise also enhances the atmospherics.

The Container Store has a variety of fixtures to display merchandise. One of the main fixtures in The Container Store to display merchandise are the straight arm fixtures on a slat wall. The fixture allows for variety of merchandise to be viewed by the customer and allows for the use of the wall. The Container Store also uses various fixtures to display clothing as a way of displaying their Elfa closet organization collection. The fixtures at The Container Store were displayed appropriately and fit the context of the merchandise sold at the store.

The Container Store uses color, line, and space as design elements within the store. The merchandise within the store is color coordinated. They also use line within the displays of the products to create a cohesive look. The Container Store also creates space through lifestyle displays instead of just displaying their products on a simple wall display.

The Container Store uses balance, unity/variety, and proportion as design principles in the product displays. The store creates balance through the products on the shelf. All of the products are similar in size and relate to one another. The store also exhibits unity/variety in their product displays. The Container Store arranges similar products together, unity, but then creates variety though color. Finally, The Container Store also uses proportion as a design principle in the product displays. Many of the products have a variety of sizes that are placed beside one another. The Container Store also has another back wall elevation that displays hooks for the home. The wall elevations in The Container Store show a creative use of displaying products.

The appointment benefited me because I was able to see a New York City store compared to The Container Store Texas locations. The appointment showed the students how unique The Container Store’s visual appearance is compared to other home-furnishing retailers.

Fossil Showroom

            Fossil is a manufacturing company. They make the Fossil brand as well as designer brand watches. The company is vertically integrated, which means everything is done within the company. They have their own manufacturers.

Fossil has a unique internship program. They will set students up with a variety of departments. For example, a student could intern with the buying and planning department. There are also digital aspects in the public relations internship program. In New York City, the internships are primarily around sales. The speakers gave us some great advice to make sure we keep in contact with everyone we meet. There are also many teams at the Dallas location that offer internships. There are always opportunities on the website.

The environment of the office was open and peaceful. The products were organized in an appealing manner. The windows overlooked the city. The environment was very modern and organized. The office is a place for buyers and designers to come to view new products to purchase for their brand or company.

There were five speakers: Katie, Liz, Sarah, Kirsten, and Laura.

Katie attended FIT and studied buying and merchandising. She had experience in the past with buying. She works with the Marc Jacobs and Tory Burch watch boutique. She spends most of her time on the computer using Excel and sending emails.

Liz is the account executive. She has been at Fossil for five years. She applied for an internship at Fossil and got the job. She originally worked in public relations, but was passionate about sales. She started off as an associate account executive. She worked with a team and moved her way up to the account executive position. She works with the Marc by Marc Jacobs watches, DKNY, and Karl Lagerfeld.

Sarah is the sale coordinator. She had a degree in political science. She really did not enjoy what she studied and had always loved Fossil. She started off in customer care at Fossil. She was later promoted to sale report. She has now been in New York City for three months. She found her current position by viewing job opportunities online. She tracks weekly sales and receives reports.

Kirsten is a sales coordinator. She works with the account executive. She gave an important piece of advice: “Be like a sponge and absorb everything.”

Laura is the showroom manager. She is in charge of making the showroom look perfect. There is a market in February, May, August, and November. During this time she has to work hard to attract buyers to purchase Fossil products. She originally studied art and design.

Fossil is a great company. There are more job opportunities at the headquarters in the Dallas area. I benefited from this appointment because it opened my eyes to the sales side of the Fossil products. I did not know that buyers would come to Fossil to purchase products for their store.

Macy’s Corporate

            Danique, the store recruitment, works will HR and collect relations. She is in charge of hiring new interns and recent graduates.

Macy’s is one hundred and fifty years old. They have over eight hundred stores in forty-five states throughout the United States. Macy’s Inc. included Bloomingdale’s and Macy’s stores. Macy’s is known for the Macy’s Herald Square location because it is the largest Macy’s store. They are also known for their Macy’s Day Parade during Thanksgiving. They have an exciting store environment with great atmospherics.

Macy’s is a company that gives back. They are known for giving back. They give back to the local community as well as larger charities.

Macy’s is a growing company. They focus on diversity and hiring people from all backgrounds. They added $4 billion to change the company during the economic downfall. This resulted in a $27.8 billion profit in 2013.

Macy’s is a great place to work. They recently hired over 1,000 recent graduates. Their internship focuses on leadership, communication skills, analytical skills, and people skills.

Macy’s has a MOMM strategy.

M stands for My Macy’s. This focuses on localization to be personalized. They focus on districts, regions, and understanding each customer.

O stands for omnichannel. The omnichannel focuses on order fulfillment. This allows Macy’s a 360 degree view of the customer. For example, the customer can buy online and pick up in the store.

M stands for Magic Selling. Magic selling means that Macy’s will make a connection with their customer. They provide great customer service. They will ask questions and listen to the customers to make the best customer experience. They will give options, give advice, and inspire to buy.

M stands for Millennials. The millenials have a $64 billion buying power. Macy’s wants a percentage of the millennial buying power.

I benefitted from the Macy’s appointment because I learned a bit about their internship program. I did not know they had an internship program before the appointment.

            StyleSight is a trend forecasting company. The Internet has changed the way businesses work. This caused trend forecasters to go online. Trends can be published 24/7 online versus traditional trend books that only were published a few times a year.

Four to five months ago, WGSN acquired StyleSight. WGSN is also a trend forecasting company.

Trend forecasting is two times a year for the future. There are trend days when all teams of the company come together to discuss trends. They will discuss trends in fashion, technology, socioeconomic trends, and megatrends. It takes two years for mega trends to be fully researched and forecasted. Eventually, the trends will trickle down to the masses.

The content team works on product development. They will research runways and festivals for trends. They will end up developing reports based on what they see.

StyleSight is known for the large signature photo trend library. The trend library is ingrained in everything. They focus on the now and the future. They will forecast two years in advance based on the past trends or upcoming trends.

Trends are heavily image driven, which is why StyleSight is image driven. A variety of companies use StyleSight for trend forecasting such as GAP and Macy’s. There are different teams that research different trends.

StyleSight was launched in 2005 and WGSN was launched in 1998. The culture is laid back and a great environment for inspiring trend forecasters.

The appointment benefitted me because I never knew how trend forecasting worked within a company. The appointment allowed me to fully understand the process of trend forecasting in a business.

Oscar de la Renta

            Oscar de la Renta is a fashion luxury brand. We had seven speakers from different departments in the company speak to us about the brand.

Melissa Lefere-Cobb the SVP of Merchandising and Sales – Lifestyle Brands studied Merchandising in college. She believes that sales and customers are key. She thinks conceptually and analytically. She mentioned that retail math is very important for a career in merchandising. The product team creates cost sheets and adjusts the prices. They also follow the course of development. They work with the marketing team to promote the brand and products. They will work on three seasons at a time for future products.

Robert Kogan the VP of International Sales is an FIT graduate. He wanted to start working in fashion and started by working in the fashion industry through internships. He was involved in associations at FIT. He wanted to create a strong network in the fashion industry. He also worked in a contemporary line showroom. He would hang up items and take orders. The foundation of his career was sales-driven. He wanted more of a strategy, so he applied for Michael Kors. He then went on to Dolce and Gabbana for three years. In 2008 he started as an account executive for Oscar de la Renta. He then moved to international sales. Oscar de la Renta only sells 70% daywear and 30% eveningwear. His advice was to “hone your eye, take art history.” He said we should know about art books and read WWD, BOF, and WSJ.

Erika Bearman the SVP of Communication and runs OscarPRGirl. She started the OscarPRGirl Twitter, Instagram, and blog, which is only 10% to 15% of her actual job for the company. She oversees the press and events. She worked with the event at the MET. She also is in charge of dressing celebrities in Oscar de la Renta. She said it is difficult to measure PR. She travels a lot with her job as well.

Elkin Nance the Director of eCommerce started in Merchandising. She left Oscar de la Renta to work at J.Crew. She then came back to Oscar de la Renta after three years at J.Crew. She creates the site to be like a personal shopper. There are also buyers for online products who measure sales. She also makes sure assortment flows and goes together. She will pull the best sellers to learn trends online. They also focus on becoming an omnichannel retailer. She works with Google Analytics. They may have a low conversion rates, but they have a high average order value. They also have free shipping and free returns. They have higher repeat customers versus new customers to the website.

Daniel Lawler the VP of Footwear Design started in Jimmy Choo. He designed the current line in the headquarters. Everything varies so he had to think globally. It is a love/hate relationship, but they will end up with great products in collaboration with merchandising. He constantly draws and designs shoes.

Taylor Cantrell the Sales & Merchandising Assistant of Lifestyle Brands did not major in fashion. She interned at Tory Burch for ten months and ended up working there for two years. She later worked for Saks evening wear. Her focus is on what is always around in trend. Networking is also important. She says to be concise.

Claudine Jorgensen the VP of Human Resources appreciates handwritten notes. She says to ask great questions in interviews.

I benefitted from this appointment because I never understood the business side of a luxury brand. I never realized how many people work for a luxury brand designer.

Unique Retail Concept

The M&M’s World store located on 1600 Broadway in New York City has a very unique concept in merchandising. The store environment is very different compared to traditional retailers. When I walked into the store I was surrounded by upbeat music and a variety of colors. The first thing I saw in the store was a giant blue M&M Elvis that spun around in a circle. I then saw a variety of souvenirs ranging from a Statue of Liberty M&M dolls to color coordinated nightgowns. The M&M store has three floors and is arranged by product assortment. The second and third floor had a wall of M&M’s with different types of chocolate, colors, and flavors. They has types of M&M’s specific to New York City as well as unique colors that are not in a traditional bag of M&M’s. The music stood out to me as well because every song was upbeat. The store did not play any slow songs, which kept the crowd upbeat and constantly looking around. The store also had a color-coordinated section filled with apparel, accessories, and knick-knacks. The M&M store was so enticing I had to buy a souvenir and a bag of M&M’s.

The M&M store is very successful due to the unique store environment. The colors, the music, and the elaborate displays cause the customer to feel as if they are in a different world. The music will make any customer feel as if they are in a great mood. The colors and elaborate displays create a surreal feeling for the customer. The personalization of the bag of M&M’s also can cause a customer to feel closeness with the brand. The fact that customers can choose their M&M colors and type of M&M’s really allows customers to feel as if the product is their own. The M&M store also has an option to customize messages on the M&M’s, which is great for the customer experience in personalizing the products.

The M&M store is very different from an everyday retailer. The store environment is very unique compared to traditional retailers such as Target or Walmart. The M&M store has an inviting environment and is exciting for customers. The M&M store is very active compared to Target or Walmart. The customers at the M&M store are very engaged with the environment and excited about the products. The customers in the store seemed to view the store as if they were in a fantasy world, like Disney World or Disney Land. The customers were joyous and excited. Everyone had a smile on their face. At traditional retailers, such as Target or Walmart, customers seem to not enjoy themselves. The customers look as if they are not excited about shopping at traditional retailers. The M&M customers compared to customers at Target or Walmart seem happy and excited. The M&M store is different from traditional retailers because of the active and bright atmosphere that invites customers to shop in the store.

The Golden Triangle Mall, located in Denton, Texas, has a lack of traffic. The mall is located in a college town with two large universities. The Golden Triangle Mall could take a few pointers from the M&M store on Broadway. For example, the mall could create an exciting environment by playing upbeat music. The Golden Triangle plays outdated and slow music, which makes consumers feel tired and unexcited to shop. If the mall played upbeat music, like at the M&M store, customers would feel engaged and “ready to shop”. The mall could also incorporate the exciting colors and displays that the M&M store had throughout the store. Instead of a green M&M Elvis, the mall could have excited displays that rotate and show the merchandise. The Golden Triangle Mall could use many of the displays, organization, and tactics to attract customers into the mall.

References

Assad, M., Markowski, V., Mawer, A., Setiawan, C., & Wong, T. (2013, December 2). UNIQLO            Marketing Research Report. In WordPress. Retrieved May 26, 2014, from                                  http://adammawer.files.wordpress.com/2014/03/gbmp-509-uniqlo-report-final.pdf

Fashion Target Market. (n.d.). In UNIQLO. Retrieved May 26, 2014, from                                                           https://sites.google.com/site/r490uniqlosite/home/fashion-target-market

UNIQLO

During my trip to New York City, I visited UNIQLO for a class assignment. I had to research UNIQLO and study their visual strategies. The NYC UNIQLO was a very unique store and had a crazy vibe. Definitely different than any other fast fashion retailer I have visited.

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Little Italy

I researched Little Italy before visiting New York City. I researched the history, the location, transportation methods, sightseeing, restaurants, shops, and things unique to Little Italy. I ended up visited Little Italy when I was in NYC and ate at Amici II. Best Italian food ever! I also bought delicious Italian desserts from Ferrara.

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Advanced Merchandising Applications Final Presentation on The Gap

Gap is a very unique company. The Gap was created by Don and Doris Fisher because Don could not find a ‘perfect pair of jeans.’ The Gap was a leading brand in the 80s and 90s, but has continued to decline because of the lacking consumer. The consumer is either interested in value and shops at Old Navy or is interested in great quality (or the name) and shops at Banana Republic. The Gap will need to undergo many strategies to stay successful with their other brands of business and to once again become a great brand for young adults.

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Web Analytics Analysis for MyStore.com

Abandonment rate is 77.8% and has increased over the past three years by an average of 73.1%. The increase of abandonment rate could be due to found the product at a competitive price, product not on sale but advertised on sale, did not find all the products they were looking, and possible shipping rate was too high. From abandonment rate, we calculated shopping carts created.
Equation: Shopping Carts Created = (1+Orders)) / Abandonment Rate. There has been a steep decrease from 2011 to 2012. Items ordered decreased by 6,775,538, which results in a decline of sales in 2012. The orders also decrease greatly from 2011 and 2012 after the cut in market and inventory buys. Unique visitors had continued to increase until the marketing and inventory buys were
cut. There was a slight decrease by 3,990,514. We found both conversion rates from the given data. We found conversion rate
(orders / session) and conversion rate (buyer / visitor). The percentage was close, both declining throughout the years. Average Order Value has continued to decrease since 2009. Average Unit Retail has also continued to decrease. After reviewing the data, there was only one KPI that showed steady growth (no declines) since 2009 to 2012. Page views continued to increase. Bounce rate and abandonment rate increased and showed growth, but in a negative manner. It is not a good thing to have a high bounce rate or high abandonment rate. We calculated the data with orders / session (conversion rate). The conversion rate has continued to decrease since 2009. There was a 27% decreased from 2011 to 2012. The orders / session conversion rate is a difficult measure to increase. Our goal is to slightly increase the conversion rate to at least 3%. Increasing the conversion rate will mean an increase in sales. Bounce rate is another metric we want to decrease to drive positive growth. Bounce rate has continued to decrease. Bounce rate is the percentage of viewers that leave the site after viewing one page (like the homepage). The bounce rate for MyStore.com is not terrible compared to other retailers. Decreasing the Bounce Rate to a percentage lower than 20% would still increase positive growth. The bounce rate would show that customers are continuing to view the products and possibly adding
to cart and purchasing the product. Unique visitors should also be increase to drive traffic to the site and possibly increase sales and positive growth. The abandonment rate has continued to increase and become a higher percentage since 2009. In 2012, the rate had been at an all time high of 77.8%. In 2011, the rate was 74.6%. When the sales were the highest, in 2010, the rate was 70.2%. The lower
the rate the higher the sales amount. If we lower abandonment rate, then
MyStore.com will see a positive growth in sales.
Shopping carts created is part of abandonment rate. The shopping carts created has
continued to decrease since 2009. In 2012, the carts created was 6,706,469.
MyStore.com will want to increase the amount of shopping carts created as well as
lower the abandonment rate because they will have a direct correlation with
conversion rate and sales. AOV had decreased since 2009. From 2011 to 2012, there was a 4% decrease from
$91.60 to $88.19. AUR decreased from $27.53 to $26.60. AUR has a 3% decrease.
AOV and AUR has a direct correlation with conversion rate and sales. As shown in
the past, MyStore.com has higher AOV and AUR. The higher these numbers, the
higher the sales. We want to increase AOV and AUR to drive sales.
It is important to look at the Units Per Order. Historically, the Units Per Order have
been around 3 items. If we could increase this number, while increasing the AOV and
AUR, we could possibly increase sales.
We want to focus on AOV and AUR as a metric to drive growth back to MyStore.com. Increasing the amount of sessions on MyStore.com could have a positive correlation
with conversion rate and the increase in sales. Increasing sessions would mean that
more users are viewing the site. This leads to the next topic → conversion rate.
By increasing conversion rate, the sales will increase. We can focus on orders/
session and buyer/visitor conversion rates. Each metric will have a correlation with
the amount of sales that MyStore.com will generate. Orders/session simply means
that the amount of orders per the session will continue to increase. The buyers per
visitor will, hopefully, result in a positive amount of visitors that buy the products.
With online stores, it is always a great idea to strive for a low shopping cart
abandonment rate. Our goal is to lower the abandonment rate because it will result in
a positive conversion = revenue for the company. We also calculated the amount of
shopping carts created. Increasing the shopping carts created in relation to lowering
the abandonment rate will result in a positive increase of sales.
Lowering the bounce rate will result in viewers staying on the page. This could result
in an increase in engagement which could lead to an increase in sales. Another strategy to achieve sales of $662 million will be to increase average order
value and average unit retail.
By increasing average order value, MyStore.com will have a higher amount of the
value of the order. So if the customer previously ordered $10 on average, we want to
increase the AOV to $20 or more. The AOV from 2011 was $91.60. We would like to
match close or above $91.60 so MyStore.com will see a profit of $662 million.
The AUR in 2011 was 27.53. To find AUR from the data, we divided AOV/Units Per
Order. The Units Per Order in the past had always been “3”. On the data we decided
to keep the Units Per Order as 3. Based on historical data, we ended up increasing
AUR from 27 to 31. The best results of AUR was when the number was closer to 31.
The higher the AUR the higher the cost of the AOV. So if AUR is higher = the product
cost is higher.
Overall, increasing the marketing spend will result in a positive growth. Increasing the
spend will increase the positive results of the metrics. Which will ultimately increase
the amount of sales. MyStore.com had originally lowered the marketing spend and
the inventory because of the economic crisis.

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FinalProjectData_Excel

Final Project Presentation for Virtual Merchandising

The overall project presentation for the Little Teacup. During the course, we created a working e-commerce site on Magento.

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Company Focused Project: The Gap

Situational Analysis

Company Background Information.

Company History.

Don and Doris Fisher opened the first Gap store in 1969. Don Fisher could not find a pair of jeans that fit, which is why they opened Gap (Our Story, n.d.). The Gap was a reference to the “generation gap”, which Doris and Don belonged (Our Story, n.d.). In 1973, Gep debuted the iconic “fall into the Gap” jingle.

Shortly, in 1973, Gap when public, offering 1.2 million shares of stock (Our Story, n.d.). In 1983, the company acquired Banana Republic, started GapKids in 1986, Old Navy was born in 1994, and Athleta in 2008 (Our Story, n.d.).

Gap expanded online in 1997 and later opened the online-only store, Piperlime in 2006. Gap introduced their first Corporate Social Responsibility in 2004 (Our Story, n.d.). By 2010, Gap expanded their global e-commerce reach to more than 80 countries with four stores in China (Our Story, n.d.).

The Gap is one of the brands that shaped retailing and consumer culture in the 1990s (Gross, 2006). The Gap had popular advertisements and influenced the way people dressed. The Gap’s sales rose from $1.9 billion in 1990 to $11.6 billion in 1999 (Gross, 2006). Since the millennium turned, The Gap started to decline.

Mission.

According to the Gap.com corporate website, the mission statement for Gap stores “Gap, Inc. is a brand-builder. We create emotional connections with customers around the world through inspiring product design, unique store experiences, and compelling marketing” (Farfan, n.d.). Gap also has a purpose statement. Their purpose is to make it easier to express style throughout the customers’ life (Farfan, n.d.).

Current Marketing Plan.

Product.

According to Gap.com, The Gap sells a variety of products for women, men, children, toddlers, and babies.

As far as women’s fashion, The Gap sells trendy, classic items. They sell tees, tops, shirt, blouses, sweaters, sweatshirts, dresses, skirts, pants, khakis, shorts, jeans, shoes, accessories, outerwear, and blazers. The Gap sells everything that a woman needs for either casual wear or for work wear. The Gap also sells exercise clothing and maternity wear. They have special sizes including petite and tall. They also include trending items.

Similar to women, The Gap sells a variety of products for a male consumer. The Gap sells t-shirts, tanks, polos, short and long sleeved shirts, sweaters, sweatshirts, outerwear and blazers, jeans, pants, shorts, sleepwear, underwear, shoes, and accessories.

The girl products including shirts, t-shirts, tanks, graphic t-shirts, sweatshirts, sweaters, jeans, capris, jeans, overalls, rompers, shorts, leggings, outerwear, dresses, skirts, active wear, swim, sleepwear, underwear, socks, shoes, and accessories. There are a few varying items compared to the women’s category, but overall very similar products.

The boy products include shirts, polos, t-shirts, graphic t-shirts, sweatshirts, sweaters, jeans, pants, shorts, outerwear, active wear, swim, sleepwear, underwear, socks, shoes, and accessories.

The toddler products contain a simpler list of products including shirts, graphic tees, sweaters, active wear, shorts, swimwear, pants, jeans, outerwear, sleepwear, shoes, and accessories.

Finally, The Gap sells items for babies’ ages 0 to 24 months of age. The Gap sells bodysuits, tops, shorts, dresses, skirts, one-pieces, pants, leggings, jeans, outerwear, sweaters, fleece, swimwear, accessories, and sleepwear.

Price.

The Gap sells products that range from anywhere to $12 to close to $100. For example, a pair of pants may cost $30 or they may cost around $80. The Gap sells accessories, which are closer to $12 or under. The shirts cost around $30. Sweaters cost around $40. The Gap’s prices fit a middle class consumer. The pricing strategy allows consumers to meet their needs and budgets (Auden, 2012). The pricing strategy of The Gap makes the consumer believe that the products are of great quality.

Place.

The Gap tends to be located in strip malls, outlet malls, and in shopping malls. The Gap is usually not a stand-alone store. The Gap will be located in malls near similar retailers such as Abercrombie & Fitch, Aéropostale, American Eagle, and Buckle. The reason The Gap is located to the listed stores is because they have similar target markets. The listed stores are also Gap’s competitors. The Gap is also located throughout the United States, United Kingdom, Canada, China, France, Ireland, Japan, and Italy (Key Facts, n.d.).

Promotion.

As far as promotional strategies, The Gap is known for their mass-market television commercials that vary with season (Auden, 2012). The Gap appeals to the “everyman” through generalized advertisements (Auden, 2012). The Gap is known to advertise toward young adults interested in classic style. The Gap also advertises online and through traditional forms of media.

Target Market.

The target market consists of males and females, ages 17 to 25, comprised of single teens and young adults, and young married couples (Target Market Segmentation, 2010).

Gap shifted to target a younger consumer, the millennials, after previously seeking a wide audience with neutral workplace basics, classic denim and bright scarves (Lutz, 2011). The millennials are entered the market, so Gap decided to make bold and deliberate changes (Lutz, 2011). According to Bloomberg, there are more than 60 million 18-to-35-year olds in the United States, which is about 20 percent of the population. The Gap targets a younger consumer to reach out to a large amount of the population.

S.W.O.T. Analysis

Strengths.

Global brand recognition.

Gap Inc.’s logo is one of the most recognized apparel brands worldwide.

Global market presence.

Gap has stores located in the US, Canada, the UK, France, Ireland, Japan, China, and Italy. With a global presence Gap is able to tap into most major retail markets.

Product assortment.

Gap offers products appealing to most middle and upper middle class consumers. Their product assortments are geared towards casual and business casual wear.

Digital strategy.

Well built website offers consumers a great way to shop online. The website is clean and easy to navigate with a very large product assortment. Gap has also done a great job using social media to promote the brand. Gap has 5,867,763 likes on Facebook, 385,000 followers on Twitter, and 321,818 followers on Instagram.

Weaknesses.

Third-party vendors.

Nearly all merchandise depends on third-party vendors, which are all outside of the US. Third-party vendors can cause product shortages, shipment delay, and increased cost.

Less trendy clothing.

The Gap’s clothing is less appealing to consumers looking for more trendy clothing than competitors. They do not offer a product line that is appealing to young trendy generations. Gap has not followed their changing consumer.

Decreasing market share.

Since 2000, Gap stores have been in a constant decline. Since 2006 close to 2,000 stores have closed due to financial trouble. Competitors have been growing at a constant rate offering trendy clothing targeted towards younger demographics.

Opportunities.

Expand into Europe and China.

Growing markets in Europe and China offer Gap an opportunity to expand their global presence and compete with competitors on the global stage. In 2011 Gap announced it would be closing 200 stores in the US and would be opening new stores in Europe and China. (Chang, 2011)

Penetration of e-commerce.

Gap has done a very good job developing a great digital strategy and they have an opportunity to grow that side of their business. With mobile shopping on the rise and new marketing technologies Gap has an opportunity to target specific demographics with advertisements tailored to that demographic.

Threats.

Strong competition.

Retailer like UNIQLO, H&M, Zara, and Forever 21 are offering consumers trendy clothing that is more appealing to younger demographics. Many of Gap’s customers are now shopping with competitors because Gap does not offer trendy appealing products.

Growing cost.

Rising cotton and manufacturing prices affect Gap’s profit margins, which limit available capital for advertising and new product development.

Cautious shoppers.

Consumers tend to reduce their discretionary spending when economic times get hard. The most recent recession caused many consumers to be cautious with their spending and only buy products they know they will use.

Industry Trends.

Eroding middle class.

According to the New York Times, consumer indicators across a wide range of industries suggest that businesses targeted at the middle classes are faltering, while both high-end and low-end retailers are thriving. Researchers have found that in 2012, the top five percent of earners were responsible for 38 percent of domestic consumption, compared to 28 percent in 1995. The trends hold true across a number of different sectors including restaurants, retailers, hotels, casinos and appliance makers.

Economists say, however, that the increasing divide could undermine the nation’s long-term economic health and create more volatility in the markets since discretionary spending among the affluent tends to fluctuate in line with the ups and downs of the market (Batley, 2014).

High-Low strategy.

The middle-class is shrinking and successful retailers have noticed this trend. Retailers such as Target have done a great job of offering high and low end products appealing to both ends of the consumer spectrum. T.J. Maxx has seen a steady increase in sales due to their high-quality high-value strategy. Dollar stores are taking advantage of their new customers and expanding their offerings, including more brand name products and foods like meats, fruits, vegetables, milk and eggs. Retailers targeting middle of the road consumers will not survive as the middle class shrinks decreasing their buying power.

Mobile moves to center stage

Mobile devices, specifically smartphones, have seen a rapid growth since the launch of the first iPhone. Marketers now see mobile devices as the center of the multi-screen landscape. From 2012 to 2014 the percent of mobile ad spending has increase from 2.6 percent to 8.4 percent and expected to increase even further to 18 percent by 2017 (Elkin, 2013). This trend gives retailers an opportunity to target consumers using specific demographic data and will allow for detailed metrics to track their marketing efforts.

Competitor Analysis.

According to NASDAQ, The Gap competes directly with Abercrombie & Fitch, Aéropostale, American Eagle Outfitters, ANN Inc., and Buckle. According to Hoovers, The Gap competes with the TJX Companies, Inc., American Eagle Outfitters, Inc., and J.Crew Group, Inc. The competitors have a similar target market and sell similar simplistic styles.

Proposed Strategies

Problem #1: The Lost Consumer

Since the millennium turned, The Gap has continued to decline and lose sales. Since 2000, Gap stores have been down by 12 percent in 2001, down by 7 percent in 2002, and down by 5 percent in 2005 (Gross, 2006). The fiscal sales in 1999 were around $1,000,000 and only about $830,000 in 2005 (Gross, 2006). The Gap has continued to close stores and continued to lose a profit. The trend is continuing. In February 2006, The Gap’s traffic worsened versus the fourth-quarter trends, which caused a lower sales unit velocity (Gross, 2006). Basically, the continuing loss has led to significantly lower merchandise margins. Some experts say that the declining same-store sales are due to cannibalization, but since 2006 close to 2,000 stores have closed (Gross, 2006). Gap North America’s sales went from $5.7 billion to $5.4 billion, which means the unit accounted for a loss of $5.9 billion in sales (Gross, 2006). So what happened with The Gap?

Other 1990s mega-retailers survived, like Starbucks or Staples (Gross, 2006). Many clothing retailers did not survive the turn of the millennium. The consumers’ lifestyle, incomes, lives, and taste had changed. The Gap sold clothing for consumers, who lacked an interest in fashion, who wanted to purchase affordable clothing (Gross, 2006). Overtime, The Gap’s customer started to dress better and had varying style preferences. According to Slate, it is hard to imagine how The Gap could not find valuable “land” in a country that has a growing population and plenty of vacant property. The problem was that The Gap lost sight of their consumers. The consumer had changed. The consumer shopped at other stores and preferred other companies. In the age of mass luxury and two Americas shopping, the middle market is nowhere (Gross, 2006). Consumers who want to save money on apparel will shop at H&M, Target, Kohl’s, or Old Navy. They have chosen other retailers to purchasing clothing from. Even the wealthier consumer will shop at Nordstrom, Banana Republic, or Barneys (Gross, 2006). In a way, Gap’s other stores, Old Navy and Banana Republic, have taken away consumers from The Gap and partake in cannibalization. Unfortunately, The Gap must realize whom their target market consists of and who their possible target market could be.

Objective #1-1: Find the Consumer.

The Gap has an issue with finding the correct target market. As shown in the problem, The Gap has continued to lose sight of their core customer. The Gap is uncertain of who their consumer might be. The Gap believes that their consumer is in the middle class, a young consumer, and a millennial. Unfortunately, something is missing that is attracting that consumer. The Gap needs to find their consumer.

Strategy #1-1-1: Identify by Demographics.

The Gap will need to identify the consumer. One of the biggest mistakes that The Gap makes is trying to serve all of the customers that shop at the store. Not all customers are created equal and it is the company’s responsibility to find the right strategy to identify the core customer. The Gap will need to understand what their business has to offer the consumer and then identify the customer (How can you find the “right” customers, 2012).

The Gap will need to identify the customer based on demographic data. According to the current target market, The Gap identifies their target market as a consumer from 17 to 25 years of age, who makes around $40,000 to $50,000 annually, single or married, and is starting their life.

Strategy #1-2-2: Identify by Location and Need.

The Gap will now need to identify the customer based on location and need. This is where The Gap has failed to identify their customer. Every Gap store is the almost the same. As mentioned before, not all consumers are the same. They have different needs and live in different locations. The Gap has a variety of locations throughout the United States in other countries. The same strategy for each location will not work for every location. For example, a Texas Gap store consumer will be different from a New York Gap store consumer. Each location will need to alter their products, strategies, pricing, and promotions to really attract and identify a consumer by location or need.

           Objective #1-2: Understanding the Consumer.

After finding the consumer, identifying the consumer through demographics, and through location and need, The Gap will need to understand their target customer. As shown in the problem, The Gap neither understood their customer nor attracted their customer. The current marketing strategies are not bringing the customer into the store. The Gap will need to truly understand what their customers want and what their customers need.

Strategy #1-2-1: Target and promote.

By targeting and promoting to the correct consumer, The Gap will be in the right direction to gaining their target market. The Gap has lost their consumer to their competitors and to stores like H&M or Target. H&M has a very low pricing strategy because the target consumer is interested in fast, changing fashion. The products need to be reasonably priced to target to the consumer. H&M also promotes to their consumer through advertisements on television, online, and magazines that their target market watches or reads.

The Gap can do something similar. The Gap may need to slightly lower prices to attract the millennial consumer. For example, instead of a $40 pair of pants, they could sell pants for $20. Once The Gap promotes and targets the products to the right consumer, they will get the target markets’ attention. The Gap’s consumer is a millennial. According to an article on LinkedIn, the millennial is connected, tech-savvy, and a ‘multi-tasker’ (Abbot, 2013). The main key term is tech-savvy. The millennial generation is all about technology. A way for The Gap to target the millennial generation is to engage with them on the Internet. The Gap can increase their online advertising on social media sites. They can also advertise in publications or magazines that the millennial generation views. The Gap already has a successful Instagram account, but now they will need to encourage consumers to shop in the store. Once The Gap has targeted and promoted to the correct consumer, they will need to encourage them to shop.

Strategy #1-2-2: Encourage them.

The final strategy to address the consumer problem is to encourage the consumer to shop in the store. As shown in the problem, The Gap has continually had a decline in profit and revenue. The Gap has not encouraged their customers to shop with the company. The Gap has made themselves aware in their consumers’ mind through social media and advertising, but they have unfortunately not encouraged them to shop with the brand.

The Gap will need incentives to bring the customer to the store. The Gap could create online coupons to bring the consumer in to the store or to shop online. Incentives will allow the consumers to want to shop with The Gap. The Gap could also create a customer rewards program to give incentive to shop with the company. The more purchases, the more points, the more rewards for the consumer.

The Gap could also feature the products’ benefits versus their features. Consumers are drawn to products that give a benefit factor versus just features of a product. If The Gap makes the perfect pair of jeans, then they should focus on the benefits and lifestyle value of that product.

The Gap can also encourage consumers by telling a story through the brand. Each location, need from the consumer, or demographic of the consumer could be exposed to a unique store from The Gap. If The Gap creates a story that directly aligns with their target customer, then they will encourage the customer to visit The Gap.

Overall, The Gap can encourage their target consumer through a unique vision and meaning of the brand.

Conclusion of Objective 1-1 and 1-2.

Through the given strategies in objective 1-1 and 1-2, The Gap will be able to obtain the correct consumer. The strategies will target the correct consumer, attract the correct consumer, and encourage the consumer to shop with The Gap.

Problem #2: Marketing Strategy.

In the 1990s, The Gap successfully marketed to young adults. Unfortunately, a younger target market is a mistake according to Bloomberg (Gap’s Marketing Strategy May be a Mistake, 2012). The general younger consumer population may be weighed down by higher-than-average unemployment, student loan debt, and concerns about the economy (Gap’s Marketing Strategy May be a Mistake, 2012). According to an analyst at Brean Murray Carret & Co. in New York, the age group Gap targets is only interested in sales and promotions. The consumers might be fashion-driven, but they are not willing to pay for the products. This is also a reason why fast fashion companies are popular amongst a younger consumer group.

Objective #2-1: Create innovative advertisements.

As mentioned in the problem, Gap targets a young consumer who may be facing college debt or a lack of income for the price of products from Gap. The younger consumer is interested in unique advertisements and promotions that will draw them into the store. The Gap will need to create interested advertisements that draw customers into the store.

Strategy #2-1-1: Advertising through mobile.

Young consumers are interested in technology and mobile devices. A strategy that The Gap could implement to draw the young consumers to shop would be through a mobile application or pop-up. The Gap could create an application or use mobile devices to advertise promotions and sales in the store or online. When a consumer is near a store the mobile device could be triggered and notify the consumer of promotions and sales. As mentioned before, the young consumer is interested in sales and promotions. If The Gap was able to make consumers aware of possible sales and promotions, then the consumer will be drawn into the store. The Gap could also create a unique mobile device that would allow consumer to interact with the application. Interaction would increase the consumers’ interest in the brand.

Strategy #2-2-2: Use new technology and TV shows.

Young consumers are interested in technology and the growing trend of smart TVs. Companies can advertise on smart TVs through pop-ups. The advertisement usually relates to what is being watched on the television. For example, The Gap could encourage television show actors to wear The Gap products. If a consumer is using a smart TV, then an advertisement could pop-up promoting the apparel products. Similar to the mobile strategy, an advertisement through a smart TV would allow the consumer to interact with the company and feel interest in the products.

Similar to the smart TV, there is a website and application that allows consumer to browse styles as shown on television. The website is called ShopYourTV.com. The website allows consumers to view styles from actors on popular television shows. Young consumers generally watch television that portrays fashionable characters. If The Gap promoted their products on shows that attract a young consumer, then they could attract customers to shop with the company. Consumers would be interested in the products as seen on TV and want to look like the actors.

Overall, the strategies include using technology to attract a young consumer. The Gap can create innovative advertisements and use innovative technology to attract a young consumer. Through technology, The Gap can allow consumers to stay connect and interactive with the company’s advertisements. The strategies will increase the consumers’ interest with the store through unique ways of advertising and through using new technologies.

Problem #3: Pricing Strategy

Gap targets the middle-income market, which often leaves it stuck between discounters and upscale brands (Gorenstein, 2011). With the middle-class experiencing a steady decline due to globalization and the expansion of overseas jobs, Gap’s target market is shrinking along with their stock price. Gap has lost touch with consumers and has ignored all of the data showing their target demographic is shrinking. Sears, JCPenney and many other ‘middle of the road’ retailers are experiencing similar difficulties as consumers no longer want to be labeled as ‘middle-class shoppers’.

No wonder so few Americans seem to think their economy is in recovery. They keep getting poorer. Unless they are rich, in which case they keep getting richer. The typical American family’s income has fallen every year since 2007, the year the Great Recession began, for a cumulative decline of 8.3 percent. Median income is also down 9 percent from its record high of $56,080, set two recessions ago in 1999.

Objective #3-1: Pricing realignment

As stated in the problem, Gap has found themselves stranded between consumers who are looking for a deal, and consumers who are willing to shopping for high-end goods. The Gap must reposition the brand where they are offering high value goods alongside high-end goods.

Strategy #3-1-1: High low pricing strategy

Gap, owner of Banana Republic and Old Navy, should understand that there are more consumers on either end of the income spectrum than there are in the middle where they are currently positioned. The Gap must offer high-end products similar to Banana Republic along side value products similar to Old Navy. Gap is known for their basics, jeans, khakis, and t-shirts, but many other retailers are now selling basics at lower prices. Gap must go up-market with more expensive jeans and khakis that are hip and trendy, and they must go down-market with their t-shirts and similar products. Consumers will go in looking for a high quality pair of jeans and walk out with jeans, two t-shirts, and a hoodie because the prices were too good to pass up. This will reposition Gap as a retailer offering high-end goods alongside goods with great value. This strategy will make Gap a one-stop shop for consumers looking for high-end essentials and value accessories.

Strategy #3-2-2: Product promotion with discount offerings

With a revised pricing strategy Gap will be able to promote their high quality denim and khakis with discounts on other products such as t-shirts and accessories. Giving a discount on the lower priced goods would give consumers a reason to purchase the more expensive products.

Conclusion

If Gap wants to survive, they must reposition themselves with their product offerings and pricing strategy. By increasing the price of their denim and khaki products while lowering the prices of t-shirts, dress shirts, and other similar products they reposition themselves offering high-end goods while at the same time being a value retailer.

Problem #4

The Gap structure and system was the creation of one man, Mickey Drexler, who ran the company from 1983 until he was fired in 2002. Drexler might well be the finest merchant of his generation (Birnbaum, 2012).

There are two great talents garment industry merchants must have:

• The merchant’s eye – the intuitive ability to know precisely if a particular style is saleable to their consumer.
• The commitment to design integrity – the ability to provide that specific product to their customer

Drexler had these specific traits and he was the best at what he did. He was committed to design integrity, and knew what consumers would want. The problem that he faced was scalability. Once Gap began to grow he was no longer able to work with his preferred suppliers and manufacturers and was literally forced to work with thousands of suppliers to keep up with the demand (Birnbaum, 2012).

To overcome this problem Drexler developed a system at Gap, solely to design the garments that Drexler wanted for his customers, and to ensure those products were made precisely the way Drexler wanted those products made (Birnbaum, 2012). This created a system where Gap revolved around Mickey Drexler.

The problem does not lie with Mickey Drexler, if you want to see where Gap could be look at J. Crew where Drexler is running the show. The problem was with Don Fisher, CEO and founder of Gap. Fisher did not understand why he hired Drexler and did not understand the importance of keeping Drexler around. Egos soared and ultimately Fisher fired Drexler. This was in 2002, right around the same time Gap began their downward descent. Since 2002 Gap has not been the same, they feel it, and consumers feel it.

Objective #4-1.

Gap must go back to their roots and provide consumer with well-designed high quality products. This was the strategy used by Mickey Drexler and it worked. They will not be able to find another Mickey Drexler but there is always new talent to tap into. Currently, Glenn K. Murphy is the CEO of Gap Inc. Glenn is well respected and known to be a great guy, but he is not a garment or design guy, he is a ‘numbers guy’. Typically in the garment industry it takes someone who knows the design and garment industry to do well.

Strategy #4-1-1.

Gap needs to find new suppliers and manufacturers. Their current suppliers and manufacturers were hired because they offered Gap low costs and could provide large quantities of products. Simple logic would lead you to believe this would increase profits but on the contrary consumers notice the change in quality and end up shopping elsewhere. Knowing that Gap must increase the quality of their products by sourcing new suppliers and manufactures. If this cuts back on supply, it will increase demand and Gap will be able to charge more for their goods. They need to forget about finding the cheapest suppliers and find the best quality suppliers.

Strategy #4-2-2.

When Gap lost Mickey Drexler, they lost the creative mind that built the brand to become, at one time the world’s largest apparel retailer. Drexler wasn’t worried about trends or fads. He focused on keeping things simple, yet elegant. He was specific about the design and quality of his products. Gap needs to reconnect with consumers by delivering well-designed products that consumers want to purchase. There is always new talent sprouting up looking for their chance to become the next Mickey Drexler. Gap has enormous resources available to search for and hire a team of great designers that will design products that sell.

Firing Mickey Drexler was a decision that has led Gap down a dark unprofitable road. The strategies provided would take Gap back to the times when they were growing and making a profit. As stated in Problem #3, the majority of consumers are not looking for ‘middle of the road’ type of products. They are either looking for high-end or good value. By finding new suppliers and manufacturers Gap will increase the quality of their products and will be able to charge a premium price. By bringing in a new design team Gap will hopefully be able to deliver products that people will want to buy.

Evaluation

The Gap sells products for men women and children priced from $12 to $100. A majority of their stores are located in strip malls, outlet malls, and shopping malls. Gap is known for their mass-market television commercials that vary with season (Auden, 2012). Their target market consists of males and females, ages 17 to 25, comprised of single teens and young adults, and young married couples (Target Market Segmentation, 2010).

Gap has several strengths. Gap Inc.’s logo is one of the most recognized apparel brands worldwide. They have stores located in the US, Canada, the UK, France, Ireland, Japan, China, and Italy. Gap offers consumers a wide product assortment appealing to most middle-class consumers. They have a well built website and have optimized the use of social media.

Where there are strengths there are also weaknesses with Gap. Nearly all merchandise depends on third-party vendors, which are all outside of the US. Gap has been lacking well-designed products that consumers want to buy since they fired Mickey Drexler in 2002. Competitors H&M, Zara, UNIQLO, and Forever 21 have grown as Gap has decreased in size and market share.

Gap has opportunities in Europe and China. These growing markets offer retailers an opportunity to expand their global presence and increase profitability. With their strong digital strategy Gap has an opportunity to expand the e-commerce side of their business.

The greatest threats to Gap are its trendy, fast growing, competitors. UNIQLO, H&M, Zara, and Forever 21 are offering consumers trendy clothing that are more appealing to younger demographics. Gap is also threatened by increasing costs of materials such as cotton. Cautious shoppers also pose a threat to Gap. Since the recession hit in 2008 consumers are now more cautious with their discretionary spending. If retailers are not offering products that present a good value consumers will shop elsewhere.

An eroding middle class has hit middle of the road retailers hard while both high-end and low-end retailers are thriving. Retailers are now moving towards a high-low pricing strategy where they offer premium products alongside value products.

Since the turn of the millennium, The Gap has continued to decline and lose sales. The Gap targeted consumers who lacked interest in fashion trends that wanted to purchase affordable clothing that would last. Over time their target demographic changed but The Gap did not. The Gap has lost focus on the demands of their target market and the result has been a steady decline in sales. To correct this problem, The Gap must identify their target consumer and focus on that specific demographic. For decades The Gap’s focus was to appeal to the masses. This strategy is no longer working for them and they must now pick a specific demographic and concentrate their focus there.

Along with focusing on a specific demographic, The Gap will now need to identify the consumer based on location and need. Every Gap store is almost the same, but not all consumers are the same in every geographic location. The same strategy will not work for every store and they must cater to the needs of consumers in varying locations.

After identifying the target consumer through demographics, location, and need, The Gap will need to gain a better understanding of the consuming habits of their consumer. Industry trends show that mobile shopping is on the rise and with Gap’s strong digital strategy this is a channel they could expand further into.

Once Gap has retargeted and reconnected with their target consumer they will need to encourage consumers to shop in the store. The Gap could offer consumers online coupons and reward programs to incentivize shopping in stores more regularly. The Gap can also encourage consumers by telling a story through the brand. If the gap creates a story that directly aligns with their target consumer they will encourage consumers to shop with them.

The Gap successfully marketed to young adults in the 1990s but their strategy has not worked in the 2000s. Now younger consumers are interested in unique advertisements and promotions. Younger consumers are also using mobile devices more than any other Internet connected device. A strategy that The Gap could implement to draw in the young consumers to shop would be mobile focused.

With emerging technologies such as smart TVs and streaming video services like Hulu, The Gap could advertise based on what consumers are watching. Streaming services like Hulu offer advertisers detailed demographic information on each TV series or movie being watched. The Gap can use this information to advertise to their specific consumers on the channels they are most likely to be consuming media.

The Gap must realign their pricing strategy to cater to today’s consumer. Being a middle of the road retailer no longer works. The middle class is shrinking and overall sales of retailers catering to the middle class is shrinking with it. With a revised pricing strategy where The Gap will offer premium products like Banana Republic and low-end goods like Old Navy they will appeal to two types of consumers. The first would be the consumer that is shopping for premium high-end products; an example would be a pair of jeans priced at $100 or more. The second would be the value shopper; an example would be a t-shirt priced at $8 to $10. By using this pricing strategy The Gap would not only appeal to more consumers they would also increase the likelihood that consumers would buy more while shopping.

After firing Mickey Drexler in 2002, The Gap has been going downhill fast. This is because The Gap was focused around one man, Mickey Drexler. He is a garment expert in design and quality. Upper management must bring in a team of garment experts that can offer the same quality of work that Drexler did. They must also source new suppliers that offer high quality materials, and new manufacturers that can produce premium level products.

Conclusion

The Gap has a long road ahead of them if they want to climb back up the ladder to become the world’s largest apparel retailer, but it is not an impossible feat. By identifying and connecting with their consumer and promoting the brand through the channels that their target consumer consumes media The Gap may be able to stop the decline. They will also need to revise their current pricing strategy since the middle-class is eroding at a steady rate. Even middle-class consumers don’t want to be labeled as middle-class and The Gap must realize this and act on it. Consumers now look for retailers that offer great value and great quality products, both of which The Gap is capable of providing.

With so many new ways to advertise to consumers, The Gap has an opportunity to use emerging technologies such as mobile and smart TVs to be demographic specific with their advertising efforts. Their brand appeals to younger demographics and younger demographic consumers are the number one user of these technologies.

This all sums up to one thing, The Gap must change and adapt. They must correctly identify their consumer and promote the brand through the channels that their consumer consumes media. They must engage with their consumer and appeal to consumers’ emotions through storytelling that relates to the consumer. They must realign themselves where they are not considered a middle of the road retailer that appeals to the middle-class. Finally, they must design products that people want to buy. All of their efforts will ultimately fail if they do not deliver well-designed products that appeal to their target consumer.

References

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Auden, J. (2012, October 20). Pricing/Channels and Integrated Marketing Communications of Gap Inc. In Strategic Marketing Management Blog. Retrieved April 1, 2014, from http://c570auden.blogspot.com/2012/10/week-7-pricingchannels-and-integrated.html

Bately, M. (2014, February 3). Consumer Trends Indicate Middle Class is Steadily Eroding. Newsmax. Retrieved April 11, 2014, from http://www.newsmax.com/US/consumer-indicators-faltering-retailers/2014/02/03/id/550578/

Birnbaum, D. (2012, April 12). Comment: Strategies for success (Part V) – the problem with Gap.Strategies for success. Retrieved April 14, 2104, from http://www.just-style.com/comment/strategies-for-success-part-v-the-problem-with-gap_id114112.aspx

Chang, A. (2011, October 14). Gap to close about 200 stores in N. America as it expands overseas. Los Angeles Times. Retrieved April 8, 2014, from http://articles.latimes.com/2011/oct/14/business/la-fi-gap-downsize-20111014

Farfan, B. (n.d.). The Gap Stores Mission Statement – A Global Purpose and Values Build the Brand. In About.com Retail Industry. Retrieved March 10, 2014, from http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/GameStop-Mission-Statement.htm

Gap, Inc. (n.d.). In NASDAQ. Retrieved April 1, 2014, from http://www.nasdaq.com/symbol/gps/competitors

Gap’s Marketing Strategy Might be a Mistake. (2012, March 14). In Retail Customer Experience. Retrieved April 2, 2014, from http://www.retailcustomerexperience.com/article/191717/Gap-s-marketing-strategy-may-be-a-mistak

Gross, D. (2006, March 9). The Shrinking Gap: The ultimate 90s brand slides toward the murky middle. In Slate. Retrieved April 1, 2014, from http://www.slate.com/articles/business/moneybox/2006/03/the_shrinking_gap.html

How can you find the “right” customers for your business? (2012, March 13). In Small Biz Viewpoints. Retrieved April 1, 2014, from http://www.smallbizviewpoints.com/2012/03/13/how-can-you-find-the-right-customers-for-your-business/

Key Facts. (n.d.). In Gap Inc.. Retrieved April 1, 2014, from http://www.gapinc.com/content/gapinc/html/aboutus/keyfacts.html

Lutz, A. (2012, March 13). Gap’s Targeting of Broke Young Hipsters Viewed as Flawed. In Bloomberg. Retrieved April 4, 2014, from http://www.bloomberg.com/news/2012-03-14/gap-targeting-broke-young-hipsters-seen-as-flawed-plan-retail.html

Lutz, A. (2011, July 31). Gap’s Fall Campaign Changes Core Customer. In Bloomberg. Retrieved March 11, 2014, from http://www.bloomberg.com/news/2011-08-01/gap-s-fall-campaign-changes-core-customer-in-moment-of-truth-.html

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Yousuf, H. (2013, November 4). Squeezed middle class sparks rise of the dollar store. CNNMoney. Retrieved April 10, 2014, fromhttp://money.cnn.com/2013/11/04/investing/retail-stocks-dollar-stores/

Capstone 7, 8, 9, & 10

Capstone 7

Create a Layout

Our group decided to use Magento for the final project. We chose the ‘Modern’ theme from Magento Connect. We chose a layout that would best represent Little Teacup through the use of colors and the simplicity of the layout aesthetic. We edited the template to make it fit Little Teacup by adding product image, personalized promotions, personalized text on the page, and through adding unique links.

Design a Home Page

The homepage displays six products including; grapefruit oolong tea, golden monkey tea, peach tea, black dragon pearl tea, Christmas” tea, and chocolate chip tea. The six products are the top sellers or popular products on the website.

The homepage also includes a promotional image. The promotional image advertises 30% of on a variety of tea products and accessories.

The homepage also includes a short description about Little Teacup.

The ‘Contact Us’ page includes a form that users can fill out to contact the company. The website also includes an ‘About Us’ page with a personalized letter from the owners; Chloé Halley, Thanh Doan, and Thien Nguyen. The link to the ‘About Us’ page is: drtl01.cmht.unt.edu/index.php/about-little-teacup.

The website also features an FAQ page with a variety of frequently asked questions. The link to the FAQ page is: drtl01.cmht.unt.edu/index.php/faq.

Navigation Bar

The navigation bar will be located at the top of the website. The navigation will have sub-links in the form of a tab. The overall appearance of the navigation will have links across the top of the page above the main content.

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Capstone 8

Brand Image

There are many elements that build brand image.One of the brand image elements of Little Teacup is the overall color of the website. The white background allows the viewer to flow through the website. White is clean and pure, and it helps build the brand image of Little Teacup. Another brand image is some green text in the headings on product pages and the checkout bar to resemble the color of leaves as well as nature and freshness. San serif font is another part of the brand image. It easily engages viewers to soak in the content longer. It is also more youthful to rejuvenate the viewer and can feel more relaxed than rushed. When paired with the overall theme of the website, it creates a sense of living in the present.

Components

The product images are one of the main components of the website that contributes to the brand image. The products are simplistic and give the users a visual of the tea’s appearance. The product images allow the customers to view the quality of Little Teacup products as well as a visual incentive to buy.

We also included a community poll that would allow users to vote for their favorite type of tea. The community poll allow consumers to interact with the website. The poll contributes to the brand image through giving consumers a sense of contribution to the brand products.

To incorporate the brand image on the homepage, Little Teacup included a section of popular products. The popular products will instantly display what Little Teacup sells. The homepage also included a main promotion to incorporate the brand image through the use of color and image.

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Capstone 9

Promotional Information

The promotional image advertises 30% off on a variety of tea products and accessories. The promotional image features 30% off the perfect tea maker, 30% off blueberry kona pop, and 30% of exotic iced teas collection. The 30% discount will give an incentive to customers to click on the image and purchase the product. The promotional image includes other promotions in a slideshow on the homepage.

The promotion features the main text, “Get Ready for Spring. Shop Early and Save on Iced Tea Essentials.” The text will gain the customers’ attention through the image of the iced tea maker located on the right side of the image. The image features ice cold tea that will quench the consumers’ thirst.

The color choice of the text and button matches the tea product. The color choice will bring the customers’ eyes to the product, which will draw them to click on the promotional image. The pop of color in contrast to the white background will automatically stand out to the customer when viewing the homepage.

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Capstone 10

Product Information

Each product page features a quick overview as well as a detailed product descriptions. We have 71 products and have listed 11 product information pages.

Honeybush Hazelnut.

“Our Honeybush Hazelnut combines the mellow smoothness of organic honeybush tea with the cozy creaminess of hazelnuts. Very nutty and aromatic, slightly roasty with a rounded, sweet flavor. Lingering honey-roasted nut finish. A mellow, very well-blended cup of tea. Great with just a touch of brown sugar. Completely caffeine free. Steep at 212° for 5 minutes.”

“White tea from the Fujian province of China. An airy, light tea, which yields a cup worthy of its name: very delicate body, with a clean, barely sweet aroma and effervescent texture. Snowbud is composed of only the newest leaves and buds, all gathered and dried in the early days of spring. Of all the teas we offer, our Snowbud is the lightest one. If you enjoy the subtle, gentle taste of white tea, we hope you’ll give this one a try. Steep at 195° for 3-5 minutes.”

Black Dragon Pearls.

“Hailing from the Yunnan province, this black tea version of the popular Dragon Pearl is naturally sweet and smooth with a touch of earthiness. Composed of only the highest quality leaves and buds, expertly rolled into a large pearl-like shape. Subtle cocoa notes whisper gently as each pearl unfurls delivering a superior tea experience not to be missed. We suggest using 2-3 Dragon Pearls per cup for fullest flavor. Steep at 212° for 3-5 minutes.”

Ti Kuan Yin.

“A legendary oolong tea from the Fujian province of China. Ti Kuan Yin is one of China’s most beloved oolongs and is extremely time-consuming to produce (well over a dozen distinct steps in the processing are observed). The cup is warm, soft and soothingly mineral in texture. Notes of toasted walnut and tender collard greens. Intriguing lingering floral aroma, lightly orchid, and gentle astringency. A meditative cup. Steep at 195° for 2-3 minutes.”

Herbal Piña Colada.

“From the sweet aroma to the beautiful rose colored cup, this tropical favorite will have you counting the days until your next island getaway. A mouthwatering blend of ripe pineapple, coconut, fresh apples, rose hips and tangy hibiscus. Fruit flavor with citrus notes and grounding sweetness from the coconut. Completely caffeine free, with no added sweeteners. There’s a hammock in the shade that’s calling your name… Steep at 212° for 5-10 minutes.”

Mocha Nut Maté.

“The mellow chicory-like character of our Brazilian toasted mate is a perfect platform for a favorite indulgence-chocolate! Add a bit of hazelnut and you have the perfect treat. Great straight up or enhanced with cream and sugar. Please note that all Mate varieties contains caffeine; we would not suggest it as a nightcap. Steep at 150° for 3-5 minutes. 

Amber Sugar Crystals.

“An ideal tea sweetener, these crystals are sugar in its purest form. If you like your tea sweet, there’s no better way to impart savory notes to your favorite cup. Adding a few sugar crystals will sweeten tea without distorting its flavor profile, pleasing both your sweet tooth and taste buds.”

Honey Crystals.

“Handling honey can create the legendary sticky situation with drips and spills adhering to every surface. With honey crystals, you can master this feat by keeping your tea space mess-free yet enjoying the deep sweetness of real honey. Honey Crystals are made from finely crystallized honey for the convenience of sugar but the richness of honey.”

Zojirushi Gray Hot Water Dispenser.

“Instantly have hot water whenever you’re ready for another cup of tea. Our Gray Zojirushi hot water dispenser is sleek and his a 4.0L capacity. It has four temperature settings (140 degrees, 175 degrees, 195 degrees, 208 degrees). Your tea is ready in the time it takes to steep. This dispenser also plays a song as you dispense water and the LCD on top shows the water temperature at all times. It is a wonderful addition to any kitchen.”

Kimono Fabric Tea Tins.

“This beautiful fabric is called “Nishi-jin.” Nishi-jin weaving was created in Kyoto over 1200 years ago by using many different types of colored yarns and weaving them together into decorative designs. These specialized procedures are tedious, but necessary to obtain the spectacular design needed to ensure the quality of Nishi-jin weaving. We can’t promise a specific design but will select a beautiful one for you. Holds 5oz(140g) of tea.”

Green Matcha.

“Matcha, the focal point of the Japanese Tea Ceremony, is a fine powder made by grinding green tea leaves. Only the finest, young, shade-grown gyokuro tea leaves are used to create matcha. The leaves are plucked and laid out flat to dry. Veins are removed and the leaves, now called tencha, are carefully ground in granite mills until they become the precious powder. Easy preparation is achieved by placing 1 teaspoon of matcha per cup (or to taste) in a cup, adding a few drops of hot water (160-180F) and stirring with a spoon until a paste forms. Add the rest of the water and stir. Steep at 176° for 2 minutes.”

Featured Tools

Recently Viewed Products.

There is a ‘Recently Viewed Products’ section on the homepage to allow quick reference back to products. This gives the customer a chance to come back to products on our homepage without having to browse the whole catalog again.

Community Poll.

The ‘Community Poll’ allows customers to vote for their favorite tea, which provides us with insight and metrics. It will help us understand our customers so we can provide more offers to them. We can also see which products our customers are more interested in and can ask for suggestions later on with the polls.

Customers have access to a ‘Wish List’ so they can save it for later purchases. The wish list will help us provide product offers directly to that customer based on their wishlist.

Related Products.

The ‘Related Products’give viewers another look at similar items that would interest customers. It will allow customers to have more variety when browsing our products. Customer will be intrigued to try out something different, but is still very similar to the product that they are looking at.

Email to Friend.

Customers can use the‘Email to Friend’ feature to share their interest in the tea. This will help customers share their preferences to their friends and family.   They will help market our brand by word of mouth with this feature.

Compare Products.

Customers cancompare productsto check the differences in prices and description. The side by side comparison will give the customer a chance to see which tea is more beneficial with a better price.

Newsletter Sign-up.

Customers can type in their email in the ‘Newsletter Sign-up’box to receive updates.Promotional offers and other news will be available to our customers in their email so we can track metrics on it when they click or enter an offer that was sent out by email.

Zoom on Product Images.

Customers canzoom in on product imageson certain items. They can get a complete view to make sure they received the right product. Each element can be visible with the zoom view so our products is not obscured and the customer knows exactly what they are getting.

Product Reviews.

Customers can provide product reviews on the product page. The product reviews will help market our brand by customer voices on products that we have. Good reviews are great to hear, but we can improve when we receive bad reviews. This will help understand our customers and our products.

View My Cart.

The ‘View My Cart’ tool provides customers with a quick access to their shopping cart. Customers can quickly look at the cart and continue shopping. The easy access will make shopping easier and run more smoothly for customers.

Customers can add tagson product pages to help crowd source information. Products can be added to groups so customers can search that group to find whichever product they are looking for. Since customers can tag products together, other customers can find products easily because customers know which terms to look for when products are tagged.