Barneys Marketing Plan

1630 Words Jan 2nd, 2011 7 Pages
BARNEYS MARKETING PLAN

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

žStrengths:
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

žWeaknesses:
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.

žOpportunities:
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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