Barneys Marketing Plan

Stagnant sales performance has caused Harrington Collection to explore new avenues for improved performance, including the launch of a new active-wear line. Recognizing an emerging trend of low price and rapid style turnover in the women’s apparel market, along with tremendous growth in the active-wear segment, Harrington needs to work strategically to capture this profitable market opportunity. After careful analysis, it was determined that Harrington should implement a new active-wear line.

Because of this rapid growth several challenges can present themselves. A primary challenge that can present itself is the lost of the boutique feel because of the hundreds of locations. Even though each boutique is different and personalized, opening too many locations may cause the retailer to lose its niche in the market. Another challenge is the many changes the company has gone through in upper level management. Because of the changes investors have been discouraged, as mentioned before, and shares were down 16% after the changes.

Over the last 10 years’ gym memberships within the United States have increased from 41.3 million to 54.1 million. The biggest trend over the last few years is becoming fit, more and more each day people are finding ways to live fit and healthier lifestyles. From eating the right nutritional foods, working out and people just wanting to follow the latest and greatest trends. The increase in gym memberships and the amount of people working out leads to the increase in athletic attire. For this exact reason athleisure wear was born, it is the newest fashion trends were people wear athletic clothing regardless if they intend go to the gym or not that day. People are wearing it to the office, shopping, to run errands and other social events. Athleisure wear consist of articles of clothing such as spandex, leggings, yoga pants, sports bras and fashionable sweats. Over the last 10 years an increase in athleisure wear has spread at a rapid rate globally, particularly in the women’s fashion industry. Since 2013 the increase in athleisure wear apparel has grown by 14% and accounts for 18% of the total clothing retail market. With this trend still catching on, active wear is expected to continue to grow at an average rate of 3.3% annually. Due to this rapid increase in purchasing athleisure wear the apparel industry will continue to grow especially Nike because they are the market leaders in active sportswear. For that exact reason I believe that Nike is a

Barneys New York target market supply to costumers that are middle upper class and upper class people. Both men and women split Barney statistics. This company attracts wealthy sophisticated shoppers and to one of the well known audiences of “fashion’s trendsetters” in the country. Most of the costumers have a yearly income of at least $200,000. Barneys New York’s stores are known as the “ a celebrity hangout spot” implying the you must be wealthy or at least accomplished.

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

For this growing population, we can track the merchandises and find out what kind of items the customers spend money on. We gather the data and analyze the pattern and what style the customer is looking for. We send e-mails to the customers when getting new items that fit the customer’s dress preference with style suggestions.

Promote more causal dressing with a great line of clothes that can be worn by customer of all types. Just like David Hagenbuch stated in his article, “Positive experiences will be remember then negative,” (The Conversation, 2015)

Although the market for separates is certainly viable given promising growth in test markets, it is not a market that makes sense for Hart, Schaffner & Marx (HSM) to compete in. The trend certainly shows a divergence in how some customers view their needs with regards to semi-formal clothing, but the firm runs the risk of diluting not only the perceived quality of its clothing, but also alienating its current client base that is partial to the experience HSM offers in its stores. This experience includes personalized expertise on new fashions, custom tailoring, and the status associated with purchasing and wearing the company’s clothes.

In fact, based on data collected by the U.S Commerce Department and the U.S Census. E-commerce sales for 2015 were estimated at $341.7 billion which was an increase of 14.6% from 2014. If you look at the graph you will see a consistent increase even when adjusted for seasonal variables like holidays. 3.

Nordstrom is the store you prefer to use when you want purchases made with special discounts achievable with discounted purchases usually made from it. There is a newer feature that they are operating with an online store which delivers items chosen and sold to consumers who make these orders through phone or use of smart phones and computers as the easiest way to purchase.

Lowe’s plans in marketing are to use the visual elements of marketing to attract customers, such as videos on social medias and commercials. Lowe’s started a “Make Your Home Happy” campaign in 2016 to replace 2011s “How To” campaign. The goals for marketing are to grow around 6% from 2015’s sales report. The strategies Lowe’s is using for its marketing are a customer-focused culture, humor, and various visual aids. Lowe’s spent $315.4 million for media advertisement in the U.S. from 2015-2016.

One of the things they use to looking for is about the trends of the people. They try to understand their behavior in order to find new ways to increase their sales. One of the major trends that has affected the apparel industry is the increase of customers buying online. The use of internet to buy has been growing because it is comfortable and easier for people without the need to go to the physical store. Technology has changed the traditional way that customers use to buy.

According to the US Commerce Department, online shopping rose by 20% in 2006, extending a seven-year trend of double-digit growth. The US online retail sales are predicted to reach $130 billion by 2006, up from $34 billion in 2001. By 2008, US online retail sales are forecasted to reach $271 billion. UPS is a leading facilitator of global e-commerce. The company provides a portfolio of solutions that streamline the customer 's shipment processing and integrate transportation information into the retailer 's business applications. With the expected growth rate of

Macy's is one of the premier retailer franchises within the United States. To begin, Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. Macy's, with its ride array of assortments and products continues to grow as it attempts to capture market share from failing competitors. Macy's is also unique as it operates in a unique market demographic. It is upscale, but not to the extent of Saks Fifth Avenue or a Nordstrom. It is also not as low scale as a JC Penny

Euromonitor estimated that global e-commerce sales totaled over 500 billion dollars in year 2012, resulting in a 14.8% growth per year from 2007 to 2012. This rate is much higher than total retail sales which only increased 0.9% from 2007 to 2012 annually. While online sales percentages sound drastic, the reality is that only 4% of global retail sales accounted for actual online retail sales. The below chart from Euromonitor shows the 2012 online retail sales as a percentage of total retail sales per selected countries.