merchandise management

B.

by Balenciaga

By: Danielle Hecht

B. by Balenciaga B. by Balenciaga B. by Balenciaga

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Table Of Contents

Executive Summary of Project, 3

Company Mission Statement, 4

Vision Statement, 4

Social Responsibility Partnership, 4

Customer Profile – Broad Synopsis, 5

Customer Narrative – One Customer, 6

Brand Extension Rationale, 7

Inspiration Images – Mood Board Sheet, 8

Group Overview Images, 9 – 10

Assortment/Classification Plan, 11 – 13

Assortment – Master Page, 14

Cost Sheets – Per Product, 15 – 24

Line Sheets – Per Item, 25 – 29

Brand Identity/Competitive Edge, 30

Retail Partner/Distribution, 31

Production Calendar, 32

Purchase Order/Unit Distribution Sheet, 33

Seasonal Sales Projection by Item, 34

Sales Projection – Master Page, 35 – 36

Floor Plan, 37

Marketing Plan (Objectives/Strategy/Tactic/Control Method), 38 – 40

Marketing Budget, 41

Bibliography, 42


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Executive Summary

B. by Balenciaga was created to fill a niche in the market that is not always addressed carefully. Women today want quality clothing for what they are paying. Balenciaga itself is a well-respected brand name in the fashion industry; however, there is a market that was not being reached mainly because of the prices of its products. B. by Balenciaga provides women of this new market with clothing that still maintains the highly respected Balenciaga reputation, has signature looks that fans of Balenciaga love, and makes it all more affordable and wearable.


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Company Mission Statement

• We are committed to bringing out customers the best quality products that we possibly can.

• B. by Balenciaga provides women around the world with affordable, quality, and luxurious fashions.

Vision Statement • We believe that every woman should be able to wear fabulous, quality fashions.

• B. by Balenciaga brings luxurious fashions to women at a more affordable price.

Social Responsibility Partnership

B. by Balenciaga works closely with the non-profit organization Fashion Fights Poverty (FFP). The mission of FFP is to raise awareness for initiatives that encourage and support creative, effective, and sustainable means of challenging poverty. We believe that the industries of fashion, textiles, and design offer unique and effective opportunities for designers, craftsmen and consumers alike to contribute to the alleviation of poverty through trade, skill-building and community empowerment


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Customer Profile


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Meet Natalie

When Natalie wakes up in the morning, she knows she has a long day ahead of her. She

makes herself a much-needed cup of hazelnut-flavored coffee ready for when she leaves to go to

work. Having an early morning that usually starts around 5:00 am, she does not have lots of time,

or energy, to spend on picking out a dramatic ensemble, so she picks something black and simple

from her closet to wear to work. She puts her hair up in a bun to keep it out of her face during the

day. Less usual than most other professionals in the city, Natalie leaves her Wrigley Ville

apartment every morning and heads to a close suburb where she works as a manager at a

Nordstrom department store. Natalie spends her first hour at work sipping on her coffee and

snacking on dry Mini Wheats cereal in her office. She checks emails, prepares for her day, and

spends the next eight hours or so managing the merchandising team for the day. She shares her

lunchtime with a friendly co-worker. When she leaves work for the day she stops to run a few

errands and heads home. There, her loving pooch, Harry, greets her. She adopted her American

Bulldog from a shelter about a year prior. After grabbing a quick snack at home, Natalie decides

to take Harry to the dog beach when she gets home. She jogs there from her apartment so their

trip also doubles as her exercise for the day. When she and Harry get home in the early evening,

Natalie makes herself a Caesar salad for dinner, which is her favorite, and then decides that she'll

spend her Tuesday night doing some much needed cleaning up in her apartment. She lives by

herself at the moment, so she loves that she is able to turn on her music nice and loud to entertain

herself while she tidy's up. When she is finally finished cleaning, she is wiped out for the day.

She takes a shower at night so that she is ready to start the next morning quick, and she heads off

to bed for the night.


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Brand Extension Rationale

• This brand extension is a more cost affordable line of clothing as a branch off of Balenciaga. The way that the clothing by Balenciaga has always been constructed is very structured. In more recent years, the architecture of the clothing has only become more significant, and Creative Director Nicholas Ghesquiere has added very futuristic prints, themes, and colors to the line as well. This less costly brand extension of Balenciaga will continue to represent some of these same attributes, but obviously work on cutting down cost of fabric and production.

• As of right now, Balenciaga does not have a clothing line like this one. Many women admire the work of Nicholas Ghesquiere and see the value in the brand, but unfortunately cannot afford it in any way. Creating this line would open up a completely new market of consumers to the brand name itself.


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B. by Balenciaga Fall 2012

The Fall 2012 Collection for B. by Balenciaga will include colors like Charcoal, Maroon, Brown, and

Grey. It will also use simple touches like buttons, lace overlay, and gathering for a full look.

Style # 12FAAC29mrn07s

Style # 12FATP17wht07s Style # 12FATP 18wht07s

12FABT21mrn09s 12FABT22mrn06s Style # 12FADR27mrn04s


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Style # 12FADR27gry04s

Style # 12FADR27br04s Style # 12FADR27gry04s


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Product Classifications

Style Numbering System: B. by Balenciaga

1- Year 12 – 2012 13 – 2013 14 – 2014 15 – 2015

2- Season SP – Spring SU – Summer FA – Fall W – Winter

3- Class TP – Tops BT – Bottoms OT – Outerwear DR – Dresses AC – Accessories

4- Sub-Class 1 – Tops 10 – Polo 11 – Button Down 12 – T-shirt 13 – Sweater 14 – Crew Neck 15 – V-neck 16 – Hooded 17 – Long Sleeve 18 – Short Sleeve 2 – Bottoms 19 – Linen 20 – Khaki


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21 – Denim 22 – Shorts 3 – Outerwear 23 – Blazer 24 – Jacket 25 – Vest 4 – Dresses 26 – Long 27 – Short 28 – Wrap 5 – Accessories 29 – Scarf 30 – Belt 31 – Hat

5- Color multi – Multi blk – Black wht – White red – Red org – Orange yel – Yellow grn – Green blu – Blue br – Brown kh – Khaki gry – Grey

6- Fabrication

01 – Cotton 02 – Nylon 03 – Khaki 04 – Pique 05 – Cotton/Polyester 06 – Wool 07 – Woven 08 – Leather 09 – Denim


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010 – Line

7- Size S – Small M – Medium L – Large XL – X-large OS – One Size


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B. by Balenciaga Fall 2012 Style Numbers:

1. 12FADR27gry04S

2. 12FADR27mrn04S

3. 12FADR27br04S

4. 12FADR27gry04S

5. 12FAAC29mrn07OS

6. 12FATP18wht07S

7. 12FATP17wht07S

8. 12FABT22mrn06S

9. 12FABT21mrn09S

10. 12FABT21gry09S


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SS dress with drop back, lace covering and gathers (brown, maroon, natural) Style # 12FADR27br04s

$100/$200

SS drop back printed dress with buttons (grey, natural) Style # 12FADR27gry04s

$120/$240


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2

¾ sleeve dress with scarf (maroon, oatmeal)

Style # 12FADR27mrn04s $130/$260


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¾ sleeve , short dress with drop back and gathers (charcoal, oatmeal)

Style # 12FADR27gry04s $130/$260

Heavy wool scarf (maroon, oatmeal)

Style # 12FAAC29mrn07s $40/$80


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SS shirt with buttons down back (white, natural)

Style # 12FATP 18wht07s $64/$128

L/S shirt with buttons down back (white, natural)

Style # 12FATP17wht07s $80/$160


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Wool shorts (natural, maroon)

Style # 12FABT22mrn06s

$96/$192

Denim skinny pants (maroon, charcoal,

brown) Style #

12FABT21mrn09s $96/$192

Printed skinny pants maroon, charcoal,

brown) Style # 12FABT21gry09s

$80/$160


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Brand Identity

-‐ Clean. -‐ Quality. -‐ Chic.

Selling Appeal

The focus in developing my clothing line is to make it very clean and chic. The clothing is made with great quality and it shows in every garment. While nothing about the pieces are too extreme, the attention getter is the fact that while the pieces are still relatively simple in most aspects, they have very interesting and attractive detail at some place. While some may have unique buttons in one lace, another may have a simple lace overlay. The customer of B. by Balenciaga can dress simply and still stand out because of unique touches on the garments. The quality of the collection is also very high. When people spend more money on clothing, they want the clothing to last for a longer time. I create quality clothing by picking fabric and materials that will sustain a longer life.

-‐ Unique touches/details on the pieces in the collection -‐ Both clean and quality finishes to every garment -‐ Good price points for quality that customers receive

Distinct Characteristics The products in my line are able to accommodate a large age range. Teenage girls up to women in their late thirties can wear my clothing line. By creating a line that is appropriate for many ages, I can increase my target market. My line is also not your typical “spin off” of a high-‐end designer line of clothing. When some brand names allow extensions, these lines end up looking like cheap knock offs of the real thing. My line differentiates itself enough to be its own entity, but also keeps in mind some of the details that stem from Cristobal Balenciaga’s original pieces. Another aspect that is in mind when creating the garments is how it will fit ALL customers. My designs will be flattering on more women than most others are. The fabric that is used creates structure and does not cling to the body in most cases, making it easier for women of very different sizes to wear my clothing line.

-‐ Classic pieces that will always be in style -‐ Conforms to some signature Balenciaga styles in a contemporary way -‐ Fits a wider range of women in terms of size (flattering to more sizes)


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Retailer Partner B. by Balenciaga clothing line will be offered in Bloomingdale’s stores across the country. I think that this department store would be a good choice because of the price point that it is sold at. It will reach a better market if it is sold here. Geographic Locations

-‐ Chicago, North Michigan Avenue -‐ Illinois, Old Orchard -‐ New York, SoHo -‐ New Jersey, Willowbrook -‐ Massachusetts, Chesnut Hill


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Sales Projection INTRODUCTION – 40% sell-thru

-‐ 4 weeks -‐ first 2 weeks, merchandise sits as a statement in a aisle position, introducing

the arrival of the brand into the store -‐ second 2 weeks, merchandise sits on a aisle, but within a department. -‐ not as visible now, but still is because it is on a aisle -‐ will project to sell 40% of merchandise during this phase -‐ 95 units must be sold during this phase

MAINTENANCE – 20% sell-thru

-‐ 5 weeks -‐ during this time, merchandise is more or less mixed in with other brands in

the department -‐ it is not as much of its own entity at this point, but still full priced unless on a

promotion because of a sale in the store -‐ will project to sell 20% of merchandise during this phase -‐ 47 units must be sold during this phase

CLEARANCE – 40% sell-thru

-‐ 4 weeks -‐ first 2 weeks, clearance is 40% off of the original price, with additional

promotions during big sales -‐ second 2 weeks, merchandise goes down to the 50% off clearance price

permanently, with additional promotions during big sales -‐ will project to sell 40% of merchandise during this phase -‐ 95 units must be sold during this phase

PRODUCT ASSORTMENT

-‐ Dresses – 79 -‐ Accessories – 16 -‐ Tops – 54 -‐ Bottoms – 88


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1 INTRODUCTORY PERIOD 40% sell thru Beginning On Hand 237 Sales 95 Ending On Hand 142

2 MAINTENANCE PERIOD 20% sell thru Beginning On Hand 142 Sales 47 Ending On Hand 95

3 CLEARANCE PERIOD 40% sell thru

Sales Ending On Hand Week #1 36 59 Week #2 13 46 Week #3 32 14 Week #4 14 0 Beginning On Hand 95 Sales 95 Ending On Hand 0


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Floor plan

The idea will be to have a shop set up in all major Bloomingdale’s locations for the B. by Balenciaga line. The floor plan below represents the mood of the shop; wood floors, dark colors, and simple layouts in terms of merchandising.


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Marketing Objectives, Strategies, Tactics, and Control Methods Phase I (Introduction) Objective:

-‐ To perform a sell-‐thru of 40% of the merchandise from the first collection that rolls out into the stores.

-‐ To create awareness of the new brand extension. -‐ To create confidence in the eye of the consumer regarding the new brand

extension. -‐ To persuade the customer to make their first purchase of the product line. -‐ To boost sales within the Contemporary clothing department by 5% in all

locations.

Strategy:

-‐ To introduce a quality line of clothing to the contemporary market.

Tactic:

To introduce the brand extension to the Bloomingdale’s customers, there will be fliers sent out to existing customers to create awareness. This will help to bring in customers that shop in the stores already, which will be more beneficial than reaching out to ones that do not. There will also be coupons sent out that will be valid on purchases from the new collection within the first 2 weeks of the launch.

The launch of the collection will begin with cocktail parties at two locations that will be carrying the line. In SoHo, NY and in Chicago, IL, there will be cocktail parties the evening of the launch date to create hype around the introduction to the new line. The launch parties will include a short fashion show presenting the new looks, music, appetizers, and drinks. The event will be open to the public, but if a dress casual event. All attendees must be dressed appropriately to be allowed admission. Phase II (Maintenance) Objective:



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Strategy:

-‐ To encourage continuing sales and begin to develop relationships with a new and loyal customer base.

-‐ Tactic: This is where sales will have to be strongly driven to meet all goals. The hype will not be as present now, so the sales staff at each store will have to be sure to encourage purchases. At this point, we will be looking at the sales made by the two largest locations in New York and Chicago and analyzing what we have done that has, or has not, worked. These are the locations that featured the cocktail parties, and so will most likely have the highest possibility of meeting sales goals. Phase III (Clearance) Objective:


-‐ To gain loyalty from customers due to the release of the brand extension. -‐ To see demand for new assortments from the product line because of the

success of the first group of merchandise. -‐ To have created a reputation of good standing with a new customer base. -‐ To boost clearance sales within the Contemporary clothing department by

8% in all locations.

Strategy:

-‐ To present a challenge to all current Contemporary clothing brand names.

Tactic: In this phase, the next group of the collection will begin to roll out into stores. We will be marketing the new group, and using those marketing actions to help sell-‐thru the remainder of the previous group. There will be advertisements running that promote the additional price-‐cuts that are being added to the clearance merchandise. Huge savings will be the message in this phase. There will also be money spent on sending out coupons to customers during this time where they can receive, yet additional, discounts on clearance merchandise in the store.


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Marketing Budget

- The total number amount WHOLESALE that will be distributed to each location is $22,924.00.

- There are 5 locations that will be receiving merchandise when the new brand extension rolls out.

- WHOLESALE Total $22,924.00 x 5 Stores = $114, 620.00.

- 15% of the budget will be used to market the new brand extension.

- Total $114,620.00 x 15% = $17,193.00.

- $17,193.00 will be available to utilize through the 3 phases of business for the

brand extension. Allocation of marketing expenses, according to phases of business, will be as follows: Phase I (Introduction): 40% sell-thru

- Roughly $6,877.00 will be available to use for marketing during the first phase of business.

Phase II (Maintenance): 20% sell-thru

- Roughly $3,438.00 will be available to use for marketing during the second phase of business.

Phase III (Clearance): 40% sell-thru

- Roughly $6,877.00 will be available to use for marketing during the third phase of business.


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merchandise management

Documents

fans of balenciaga love

quality fashions

company mission statement

vision statement

quality clothing

customer narrative

mission of ffp

luxurious fashions