Essay on Clothes R Us

936 Words Dec 3rd, 2012 4 Pages
Corvinus University of Budapest

Marketing Department

Clothes ‘R’ Us

Point-of-Sale Initiative

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Duzsek Réka, oso9ef

MSc Marketing

Consumer Relationship Management

Course leader: Agárdi Irma

November 28, 2012

Clothes ‘R’ Us was a leading apparel store in the United States with more than four hundred national stores. They offered hip, but affordable clothing for men, women and children. Between 1990 and 1997 the company had great financial growth, but this revenue growth began to slow down in 1998. By 2000, Clothes ‘R’ Us had over-expanded and had the worst gross margins in the industry. In 2001 to reduce costs and regain its competitiveness they started to analyze the
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What is the business value of the new POS system for Clothes 'R' Us?

According to the ROI analysis in the case the project would return $15 million per year after development and full-scale deployment and this didn’t include the revenues from the implementation of the CRM system. This return came from an average of $37,000 per store per year through the above mentioned decreased operating costs, long-distance phone costs, and increased operating efficiencies and store sales due to improved customer interaction and service.

3. What are the consequences of the delayed GUI sign-off and of the loss of the product management team on the project? (look also at Exhibit 5)

Getting the sign-off from the operations steering committee presented the program’s first obstacle. They were very serious on this issue, especially on the design of the POS graphic user interface (GUI). They couldn’t decide how the store managers would see and use the system; they wanted to minimize the keystrokes and touch-screen clicks for the applications. It took four weeks that the operations steering committee to accept it. Because of the tight integration between the POS GUI and the credit application, the requirements for the latter were also delayed in sign-off.

The next step, the Design, had also a huge problem. Orlin was informed about the resignation of the product managers during this phase. This also set back the project with another four

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