HANDBAGS

KRYSTAL DURAN BLAKELEY GRAHAM PHILINA LOR KRISTI TAYLOR HALEY TURPIN

OBJECTIVETARGET CUSTOMERCOMPETITOR ANALYSISFINANCIALSBIG IDEASRECOMMENDATIONSQ&A

AGENDA

OBJECTIVEBuild a 3 year plan for Handbags, recapturing lost sales to grow the

handbag business to $32M by 2019. Include product mix, pricing, store

presentation, and marketing. Include both brick and mortar and online business.

CUSTOMER PROFILES

CUSTOMER PROFILE #1• Age: 55+• Income: Moderate to High• Personality Type: Treasure

Hunter• Likes: Quality, Structure,

Compartments

CUSTOMER PROFILE #2• Age: 35-54• Income: Moderate

to High• Personality Type:

Super Mom• Likes: Utility and

Style

CUSTOMER PROFILE #3• Age: 17-34 • Income: Low to Moderate• Personality Type:

Adventurous• Likes: Latest Trends

INTERNAL ANALYSIS

SWOT ANALYSISStrengths

Serve smaller marketsVersatility

Weaknesses

Inability to advertise all brandsLimited square footageNew customer retention

Opportunities

Introduce new or updated brandsGrow existing customer baseDrop ship

Threats Off-price retailersLarger department stores

SURVEY RESULTS

63% have shopp

ed Stage

65% ages 18-29

66% prefer crossbody

Color

Trend

Brand

Price

0 10 20 30 40 50 10% 20% 30% 40% 50%

PRODUCT ASSORTMENT

Tote35%

Crossbody28%

Satchel13%

Hobo9%

Other15%

Tote28%

Crossbody35%

Satchel15%

Hobo10%

Other12%

Before

After

COMPETITOR ANALYSIS

COMPETITOR: MACY’S

• Key Callouts: Tailored Shop by Brand, Glass Display Cases, Mirrors, Cross Merchandising

• Price Range: $40 - $1000+

COMPETITOR: TJ MAXX• Key Callouts: Push

to Shop Online, Assistance Buttons, Color Stories

• Price Range: $15 - $1000+

COMPETITOR: H&M• Key Callouts: Confusing Signage, Cross Merchandising

• Price Range: $10 - $150

STAGE STORES• Key Callouts:

Coupons, Security Devices, No Mirrors

• Private Label: Signature Studio, Valerie Stevens

• Top Brands: Bueno, London Fog, Nine West, Jessica Simpson, Yes!

• Price Range: $15 - $390

E-COMMERCE: MACY’S• Handbag Top Level

Category

• Easy to Understand

Navigation

• Extensive Filtering

E-COMMERCE: TJ MAXX

• Handbag Top Level

Category

• Difficult to Navigate

• Limited Filter

Options

E-COMMERCE: H&M• No Top Level

Category for

Handbags

• Handbags not

Primary Focus

E-COMMERCE:

STAGE STORES• Handbag Top Level

Category

• Easy to Understand

Navigation

• Extensive Filter

Options

FINANCIALS

FINANCIAL HISTORY

* Refer to Page 3 in Handout

Sales LY Sales $ % Chg LY ECOM SLS $ PEN TO TTL

2015

2016

SALES HISTORY

27,000,000$ 29,612,564$ -8.8% 808,000$ 3.0%

29,612,564$ 31,942,786$ -7.3% 883,446$ 3.0%

3 YEAR PLAN

BIG IDEAS• NEW PRIVATE LABEL• CREATE AN OMNICHANNEL

EXPERIENCE• IN-STORE EVENTS• LOCALIZATION

NEW PRIVATE LABEL 1

“Millennials are more into newness, than established brands. They prefer to support emerging and exclusive brands rather than designer labels.” – Who What Wear, 2016

PROPOSITION• Target niche market• Offer trend to existing customers• Model after Fast Fashion• Exclusivity • Higher margin• Cost control• Lower price point

Always edgy, always on trend, enhance your wardrobe with our carefully curated pieces for every woman in every stage of her life.

ELEVATE DOOR ROLLOUTDoor Count Sales

PlanFall 2017

300 $450,000

Spring 2018

500 $710,000

Fall 2018

All Doors

$1,008,000* Refer to Page 4 in

Handout

ELEVATE COST SHEET• Cost: $13.00 - $22.00• Retail: $29.98 - $49.98• Inventory Investment

Cost: $335,000• E-commerce: 6% of Total

Units* Refer to Page 5 in Handout

PRIVATE LABEL FUNDING

• Betsey Johnson$60,000

• Nicole Miller$260,500

• Madden Girl$312,000

• Relic$370,500

• TOTAL$1,003,000

STORE PRESENTATION

CREATE AN OMNICHANNEL EXPERIENCE

2

HEAT MAP

• Attracted by

Banner

• Frequently

Used:

• TLC for Handbags

• Recommended products

UNBOXING• Popular new way to create content marketing• Gets viewers interested in box contents• Surprise element• Allows for product description• Influences viewers to purchase

Maria Alfaro - 43,000 FollowersInstagram: @Maria_AlfaroWebsite: styletoblogabout.com

POTENTIAL BLOGGERSApril AthenaInstagram: @Aprilathena7YouTube: www.youtube.com/watch?v=ed6s25vMZkUJade Kendle - 230,000 Followers Instagram: @LipstickncurlsYouTube: youtu.be/8Htg_K6wBdM

Kate - 122,000 FollowersInstagram: @LonestarsouthernWebsite: www.lonestarsouthern.com

- 160,000 Followers

UNBOXING COST

* Refer to Page 6 in Handout

ENCOURAGE CUSTOMER INTERACTION

INSTAGRAM SHOPPING

CURRENT

NEW

IN-STORE EVENTS 3

1. ELEVATE LAUNCH EVENT• Top 30 handbag

doors• #Elevate

#Stage props• Get Millennials

involved• Back to School

* Refer to Page 7 in Handout

BUZZ EMAIL

LAUNCH EMAIL

SOCIAL MEDIA MARKETING

2. HANDBAG TRADE-IN EVENT• Customers

donate gently used handbags

• Receive 25% discount

• Donated bags benefit local charities

LOCALIZATION 4

GAMEDAY BAGS

• Texans: 52 stores – comprises 10% of total handbag sales

• Cowboys: 42 stores – comprises 7% of total handbag sales

• Saints: 45 stores – comprises 7% of total handbag sales

• Meet NFL requirements (clear or 4” x 7”)

• Focus on Texans, Cowboys, and Saints

• Colors: white, black, tan, red, navy and clear

CROSS MERCHANDISING: TEXANS

CROSS MERCHANDISING: COWBOYS

CROSS MERCHANDISING: SAINTS

RECOMMENDATIONS

VISUAL RECOMMENDATION #1• Cross

merchandise throughout store

• Fully style and accessorize all mannequins

• Display “the whole look” by brand

VISUAL RECOMMENDATION #2• Add “Stage

Exclusive” Signage

VISUAL RECOMMENDATION #3• Add full-length

mirrors

• The Skinny Mirror

• Increases motivation

to purchase

VISUAL RECOMMENDATION #4• Individual Security

Tags• Less clutter on

handbag tables• Easier for customers

to shop

VISUAL RECOMMENDATION #5• Add artificial turf to

football tables• Sold by the foot – Home

Depot

VISUAL COST SHEET

* Refer to Page 7 in Handout

• Capture Millennials with new brand

• Focus on our online presence

• Create buzz with In-Store Events

• Cross Merchandise• Focus on Localization

RECAP

QUESTIONS

THANK YOU!