Core problems There are several issues for Eddie Bauer, Inc. to tackle, low profit margin ratio, high sales return and high inventory level, and brand positioning. Analysis of the problems Eddie Bauer yielded the lowest net income among its competitors like The Gap, A & F and Land’s End. It achieved similar gross profit margin but got a poor performance on overall net income at 1% because it suffered from high expenditure on SG&A in both retail and catalog operations which accounted for 37% of its total net sales. This is extraordinary high while compared with its main competitors like A & F, and the Gap whose SG&A amounted to 22% and 27% of their net sales respectively (Table 1). A & F and Eddie Bauer are similar in size, …show more content…
We could put more women’s items setup in window display at the entrance of each store. If the same products are available in all channels, customer can shop at the stores with all sizes, style and color, and the estimated sales will increase in retails. In addition to the promotion of women’s items at shop such as shoes, swimwear and dress would widen the choices for the customer. They could offer crossover brand name products and sponsor the qualified and famous explorers, athletes and celebrities to attract the customer’s attention and boost up more sales. Combined with both advertising and more items available in retail, the sales is forecast to increase at 5% for the 1st year at $27M (Table 9) since brand building is a long term strategy and we cannot expect miracles only after several campaigns. On I-media, Eddie Bauer should implement more promotion campaigns and new-items launch date. It should gradually shift more information from catalog to I-Media since its cost of developing selling information is lower than printing content for catalog. Both professional and higher quality elements should be added to the I-Media since 50% of I-media customers are affluent male who are looking for quality to fit their life style. To increase the brand synergy, more women’s items or feminine visuals could be added on the front page
housing market. In order to increase sales, Eddie Bauer must grab a significant market share from its competitors, which is a difficult task in this industry. However, progress in sales and market share will become more complicated if the slow growth of the industry remains unchanged. Thus, one of the company’s key success factors in increasing profitability is to reposition its brand in the market as a premium brand, which would require an effective advertising campaign, changes to store layout and location, and increased customer experience. However, it does not fully guarantee that the company will be successful in repositioning its brand from its old brand positioning that lasted for many decades. Moreover, it is uncertain that a premium brand for the modern outdoor lifestyle would satisfy the ever-changing taste of consumers; thereby, posing a risk for the company. Although management of Eddie Bauer identified optimal store sizes and locations in line with its new strategy, this success factor will heavily rely on the availability of retail space and the ability to re-negotiate existing
When customers walk into the store, they first try to adjust themselves according to the surroundings of the store. It is very important to get the customers attention.By viewing the setup and location of the store in relation to the shopping, Paco
There are almost 14000 retail business in Australia which exhibit great diversity in their size of business, region, format of retailing, nature of goods the sell. JB Hi-Fi and Harvey Norman both of the companies belong to retail industry that mainly focus on selling of wide varieties of electronic goods. Their price range of different goods they sale is vary though the range of price difference is insignificant. Hence, it would be worth full to mention a little comparison of difference in price range of goods they offer of these Australian based retailers and those of US based retailers. For instance, the same LG refrigerator costing $2500 at Harvey Norman – is available to American consumers from Amazon for just under US$1500. (Keane 2011, p. 1). Though this example is more related to marketing analysis of these companies but still I just wanted to point out the difference in their profit making ability which is followed by this huge difference in price range and moreover this big difference in their offered price would have effect on their cash flow statement
Due to the economy downturn period, Macy’s and many other retailers were suffering. Fortunately, Macy’s has chosen the beneficial marketing strategy to fit the objective of business. This paper will analyze the company’s situation from its financial aspect, industry aspect, the competitive part and Macy’s marketing strategies to conclude that Macy’s could have stable profit in the next three to five years.
The purpose of this term paper is to discuss the similarities and differences between Talbots Inc. ("Talbots") and Chico's FAS Inc. ("Chico's"). This paper will detail the nature of each company's respective business, past financial performance, and expected future outlook. The paper is divided into two sections. The first section will discuss each company's history, business structure, and future plans independently from each other. The second section will discuss several important financial ratios and provide a detailed analysis comparing the two companies. By the end of this analysis, the reader will have a better understanding of these two retailers and the industry in which they operate.
In order to gain a better understanding of the profit generating differences between small and large cap companies within the clothing industry, this report will focus on two companies: Urban Outfitter and L. Brands Inc. Within this report, Urban Outfitters will serve as the target company and it will be compared L. Brands Inc., the benchmark company.
The aim of this paper is to provide an insight into Hollister Co.’s marketing communications and assess whether it successfully targets my demographic of young, male recent college graduates. The paper will first introduce Hollister and provide a brief company history as well as outlining the challenges in reaching out to consumers such as myself who differ from the brand’s intended targets. It will then segue to discussing Hollister’s position within the market and any outlying challenges the brand has navigated through.
Increase sales in the men’s line by opening or converting more stores targeted towards mixed gender locations.
Eddie Morra is a scrappy was a regular man who has a book contract and dreams to become a well-recognized writer but is having a serious care of writer's block. It is so severe that he has not even written a single word of his book yet. Although he is not an alcoholic he frequently drinks and shirks his responsibilities. Sensing that he is going nowhere in life, his girlfriend Lindy decides to leave him. She says in short, that he uses her for expenses, and as the cleaning lady. She feels that he has no longer become the man she fell in love with. The wife of his landlord accurately states Eddies current state as a self-defeating, energy sucking, dirt bag, sponging off the lives of others. He runs into his Ex brother in law (Vern) who offers him a drug that will allow the user to access the 100 percent of his brain instead the regular 20 percent. Vern gets
The women's apparel market is highly competitive. With the launch of a new active-wear line from Harrington Collection's, more and more competitors will start to realise the potential value in in producing an active-wear line of their own. The active-wear market is growing so rapidly (expected to double turnover from 2007 to 2009), that eventually all of Harrington's competitors would likely be expected to launch a line of their own, relying on existing brand loyalty and high-scale advertising campaigns to capture market share and move units.
The Lululemon brand ranked highest among their competitors for “luxury fashion apparel”. Organizing a like-minded community for body-conscious and health-aware as well as fashion-pursuing female customers is one of the most fundamental parts of Lululemon’s marketing strategy. Lululemon is the first mainstream clothing company to really put the “salon” business model into every detail of their business management. Resembling the core of Apple’s retail strategy, in which like-minded thinkers came together to share their own opinions, culture, and theories. Customers go to the Apple store and salesmen will teach them how to use the products. Lululemon will do the same thing, they could teach customers. In recent retail environment, buyer and seller are put on the same sides under the effect of this strategy. Both are focused on an idea of self-betterment that overshadows the commercial transaction itself. This ethic strategy transforms the stores into a space for personal communication with low pressure. The employee have the chances to talk to the customers about their passions and pursuits, and customers will select the ideal garments with the help of the employee. The final purchase transaction comes to be an investment in customers themselves, representing their own ideas and goals. In fact, Lululemon keeps setting goal behind the counter to make customized service to guests. Salon-model strategy is a trend to interest consumers overtook the desire to just own or consume more
In effort to bring in consumers, Abercrombie and Fitch uses indirect strategies to attract and persuade its customers. Large wall photos, uplifting techno songs, and dimmed lighting make for a relaxing ambiance to draw in its buyers. Apart from its in-store attractions, Abercrombie and Fitch use commercial advertising, e-posts, and online music to bring in its consumers. With all of these unique strategies, the Abercrombie and Fitch industry has been proven successful for over 100 years.
The product life style of the department store is in the mature or declining phase of its product life style, because of the declining sales. Furthermore, according to estimates, market share has eroded away to 7 per cent, as of 2010, and is far below the desirable rate 15 per cent (Johnson, 2011, p. 3). Also, the brand image is being heavily relied upon and the bottom line is not showing significant increase in the years presented in the journal article. Macy’s is afloat due to a strong management team and the aggressiveness to deal with problems as they arise. For example, continuing to adjust its portfolio of stores, focusing on fashion, and developing private labels in bedding, outerwear, ‘tween’ clothing, increase national advertising and using celebrities. Additionally, Macy’s advertising is combining the national department store image with July 4 and the Annual Macy’s Thanksgiving Parade, which appeals to the American citizen. Solution
Demographics point to a decidedly female market with wide aged range 25-54, they could be the professional or wives of professional. Living in city or suburban area due to the store placement will be near the major cities. The income should be in upper middle class. The target market could be healthy conscious and high quality expectation. Conclusion of demographic detail as followed.
Along with the growing of online shopping, the research has shown that 80% of people have shop online at least monthly and 30% of people have shop online at least weekly. Base on this result we can imagine that online shopping trend has been grow and on the other hand which means you will have a lot competitor in the same market, that’s why Sokina said you have to be “creative”, she said “Every day when I’m woke up, I will spend at least 2 hours to just sitting here to look around, to get some inspiration from the websites, to consult the other online store website to see which kind of things I can study for and improve.” And also, she will read the comments from the customers and try to come up with different plan to promote her store because the way you promote your shop