Barneys Marketing Plan

1630 Words Jan 2nd, 2011 7 Pages

Executive summary

Barneys is planning to extend the target market by embracing budget fashionistas as well as current target customers who are fashion connoisseurs with a high disposable income and cutting-edge taste. It is because, according to Spending Pulse, Sales of luxury goods fell 27.6% in December 2009 compared with December 2008 including credit cards and cash. The pullback in luxury spending due to the deteriorating economy brought about a sharp slowdown and a torrent of extraordinary markdowns last year. The competitors including Bergdorf Goodman, Saks Fifth Avenue, and Neiman Marcus have been saddled with excess inventories and double-digit sales decrease. In order to do extend target market, Barneys
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The recent promotion was offering merchandise at a 75% discount last year.

S.W.O.T. analysis

Hip image of providing unique mix of established designers and new costumers

Private labels allowing full control and high markups

Co-op offering chances to draw budget fashionistas with its young, experimental, downtown feel merchandise

Good store locations appealing to both tourists and locals

Aggressive expansion strategy derived from the new owner’s desire to recoup the investment: this has greatly increased expenses for opening stores.
Lack of leadership: The former president and chief executive, Howard Socol, resigned in 2008 July and hasn’t yet to be replaced.

Taste level which is not widely accepted: with its cutting-edge image, Barneys has a narrower appeal and customer base than other luxury department stores.

Growing trends towards contemporary apparel and accessories: customers started to look for practical and wearable items in everyday life rather than expensive statement outfits.

Continuing strong growth in online sales: according to the report from the Census Bureau of the US Department of Commerce, online purchases amount has increased by more than 9% to $34.61 billion in the second quarter of 2009 compared with the amount during the same period of 2008, and online sales of apparel has generated $26.6 billion.
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