merchandise management

Men’s 2014 Fall Brand Extension

Fall 2014 Men’s Brand Extension Collection

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Table of Contents

• Executive Summary of Project: 2

• Company Mission/Vision Statement and Social Responsibility: 3

• Customer Profile: 4

• Customer Narrative: 5

• Brand Extension Rationale: 6

• Mood Board/Inspiration: 7

• Group Overview Images: 8-10

• Assortment/Classification Plan: 11

• Assortment – Master Page: 12

• Cost Sheets: 13-22

• Line Sheets: 23-25

• Brand Identity/Competitive Edge: 26

• Retail Partner/Distribution: 27

• Floor Plan: 28

• Production Calendar: 29

• Purchase Order: 30

• Purchase Invoice: 31

• Seasonal Sales Projection by Item: 32

• Seasonal Sales Projection – Master Page: 33

• Marketing Plan/Budget: 34-36


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Executive Summary

This report provides an in-depth report of the new Salvatore Ferragamo brand extension that will debut as the 2013 fall collection. The house of Ferragamo believes that a brand extension to capture the trendy shopper is needed and has decided create this collection in the traditional Ferragamo way, but by incorporating a trendier style. Ferragamo recognizes that the fashion industry is always evolving and styles change many times throughout the year and wants to fulfill the needs of other shoppers that do not fall into the bracket of our core customer. We have done this in a unique and innovate way, offering new cuts, and fabrics while maintaining the classic Ferragamo DNA. Long known for the classic and luxurious Italian look, Ferragamo is branching into new territory by launching this collection. Ferragamo is a well-known established house within the fashion industry and has partnered with UNICEF for many years to provide charitable donations to children in developing countries. While we already have our core customers, this report goes in depth on the new customers that we are trying to attract by launching this brand extension. Our research shows that while there are many trendy clothing lines, there are not many that do it in a classic ways of the well known established houses. Ferragamo saw this as a problem in the market and saw an opportunity to create a line that would address this problem and please the customer that is looking for this style of clothing. The solution detailed in the report was conducted and resolved over the period of a few weeks where market and customer research was done. Our finings were to keep clean and classic silhouettes but update them by using different fabrics that are not normally used by our label. We see this as a time to fulfill this void since our competitors have not done so. By being the first label to do this, we can set ourselves from our competitors, set the standard and gain new customers to add to our core customers. The information in this report includes everything in detail from market research, inspiration, the actual collection with fabrics being utilized, the cost of each garment, marketing analysis and the budget set for the brand extension which will launch in the fall of 2014.


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Company Mission/Vision Statement

Mission Statement: Salvatore Ferragamo is the leading Italian luxury fashion house known for its impeccable, clean and prestige designs. Ferragamo strives to provide luxury apparel for the classic and modernist

man and woman.

Vision Statement: Our vision is to become the industry’s leading fashion house by providing our customers

globally with impeccable, one of a kind designs and unmatched customer service.

Social Responsibility: The United Nations Children’s Fund (UNICEF). Provides long-term humanitarian help to children and mothers in developing countries. UNICEF is mandated by the United Nations

General Assembly to advocate for the protection of children's rights, to help meet their basic needs and to expand their opportunities to reach their full potential. UNICEF mobilizes political will and material resources to help countries, particularly developing countries, ensure a "first

call for children" and to build their capacity to form appropriate policies and deliver services for children and their families.


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Customer Profile Geographic Segmentation:

• Region: Northeast Coast or West Coast • City Size: 100,00+ • Population density: Urban city • Climate: Climate varies throughout the year depending on region ranging from hot,

temperate, and cold Demographic Segmentation:

• Age: 20-39 • Gender: Male and female • Household size: 1-2 • Income: $60,000 - $150,00 • Education: Varies • Occupation: Varies

Sociocultural Segmentation:

• Social Class: Middle-class and upper-class • Culture: Varies • Sub culture:

o Religion: Varies o National origin: Varies o Race: Varies

• Marital status: Varies • Psychographics: Achievers

Affective and Cognitive Segmentation:

• Degree of knowledge: Expert • Benefits sought: Prestige • Attitude: Varies

Behavioral Segmentation:

• Brand loyalty: Varies • Store loyalty: Varies • Usage rate: Varies • User status: Varies • Payment method: Credit card • Media usage: All forms of social media. Twitter, Facebook, Google +, Instagram • Usage situation: Varies


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Customer Narrative Every morning at 7:00 AM Michael, the 27 year old junior fashion editor for W Magazine wakes up to get his day started. Upon waking up, Michael proceeds to take a shower and have breakfast. He is very health conscious and enjoys eating healthy, clean meals throughout the day and for breakfast has made a vegetable egg white omelet. During breakfast, Michael takes the time to read the news and often reads the same publications daily, which include CNN, Huffington Post, Women’s Wear Daily, and the Business of Fashion. As a fashion editor, he feels the need to be updated with not only what is happening in the fashion industry, but everywhere else in the world. After reading the news and finishing getting ready, he proceeds to make his way to work. Living in New York City, Michael makes use of the subway to get to work and around the city. He usually stops at his favorite local coffee shop (La Colombe) close to his apartment and grabs a latte before heading to the subway to go to his office. Being a fashion editor, he is always exceptionally dressed and receives comments from other people on the subway. His work schedule is busy throughout the mornings attending many meetings and reviews the works that will be published in the magazine. For lunch, he prefers to grab something light in the area that he works in. Sometimes, he will meet clients at well-established restaurants to conduct business meetings, but today he grabbed a salmon salad from the health food store two blocks away from his work. The rest of his afternoon is also busy and he will usually have more coffee to keep him going before finishing his work around 5:00 PM or 6:OO PM. After leaving work, Michael usually makes a stop at Whole Foods to buy some groceries for the night/week. Making a salary of $85,000 a year, he has a larger disposable income and enjoys spending money on good food since he enjoys cooking. He does occasionally meet friends for dinner throughout the week in the trendy neighborhoods of NYC like Tribeca or Soho, but generally prefers to cook. Before cooking dinner, Michael goes to his local Equinox gym where he works out for one to two hours. After the gym, he goes home where he cooks a healthy vegetarian meal for the night. His nights after work are usually relaxing and he does not spend it watching TV. He usually spends them catching up on work or shopping online for designer clothes on websites like Mr. Porter or Luisa Via Roma. He occasionally watches a movie when he has the free time. On this particular night, Michael is meeting his friends at his favorite champagne lounge called the Bubble Lounge in the Tribeca neighborhood, which is also where his apartment is. He enjoys a bottle of champagne with his friends before heading home at 10:00 PM. Michael gets home, takes another shower and reads a book before finally going to sleep.


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Market Research Analysis

Company: Salvatore Ferragamo Consumer: Male, Age 18-30, College or Young Professional, Casual Store visited: Barneys New York Brands Consumer Are Buying: Marc-By-Marc Jacobs, Burberry, Kenzo, Balenciaga, and Balmain Ideas for brand extension: Salvatore Ferragamo is currently in the process of doing a brand extension for our men’s label. In recent times, we have noticed a growing trend in our industry in which men are now looking for more trendier/edgier looks. Although our company has always maintained its integrity by providing luxurious and classic Italian looks, we feel that as a growing industry, we too must expand our operations. Ferragamo recognizes this growing trend of edgier looks and feels the need to offer a brand extension of trendier men’s apparel to our current customer base, but also to attract new customers in the long run that are already shopping for this type of apparel. Salvatore Ferragamo has done extensive research to see how these customers shop, where they shop and what specific trends they are buying. Our research indicated that these young and trendy customers are shopping in higher end stores like Barneys New York. We sent a team to the Barneys New York shop in Chicago to conduct market research to see what these customers are buying. Our findings were that these customers are buying apparel in fun and bright prints, primarily with shirts. The shirts that customers are buying come in bright colors or colors outside of the plain ones with abstract or geometric prints on them. Some of the shirts come in metallic, iridescent, leather and sheer fabrics. The same can be said about the t-shirts that these men are purchasing at Barneys New York. The general price point for t-shirts ranges from $55.00 - $275.00. Regular dress shirts on the other hand range around $79.00 - $895.00. The same said can be said about men’s pants and shorts. Customers are shopping for these garments in different colors and even in different prints. Pants and shorts can be found in colors like blue, green, red, yellow among many others both in bright and pastel tones. Prints on these garments also include abstract prints, paisley and flower prints. The fabrics utilized for these garments include cotton, wools and leather. The price point for these garments varies and ranges between $80.00 - $1,775.00. After conducting this research, our company has concluded that we must move forward with creating an extension brand by offering trendier clothes, but done without scarifying the brand’s integrity that has been known for many years.. Our company can do this by offering shirts and pants in new colors, abstract prints, new silhouettes and new fabrics that have not been used by the house of Ferragamo. By doing this, we will be able to position ourselves in the industry as the fashion house that appeals to a wide array of consumers.


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Mood/Inspiration Board


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Assortment Master Page


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Assortment Classification Plan

1: Year 1. 2013 2. 2014 3. 2015 4. 2016

2: Season A. Spring B. Summer C. Transition D. Fall E. Winter F. Resort

3: Class 1. Tops 2. Bottoms 3. Outerwear

4: Sub Class 1. Tops

1. T-Shirt 2. Short Sleeve Button Down 3. Long Sleeve Button Down

2. Bottoms 1. Shorts 2. Pants

3. Outerwear 1. Jacket 2. Coat 5. Color 1. Black 2. Green 2. Hunter Green 3. Navy 4. Brown 5. White 6. Fabrication 1. Cotton Canvas 2. Leather 3. Chiffon 4. Jersey 5. Silk


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Master Classification

• Chiffon Long Sleeve Shirt w/ Contrast Polka Dot Print #1D1331

• Cotton Pants w/ Contrast Side Piping #1D2261-2, -4. -6

• Leather Shorts w/ Zipper Applique #1D2121

• Chiffon Long Sleeve Shirt w/ Leopard Print #1D1335

• Cotton Leopard Print V-Neck T- Shirt #1D1167

• Leather Pants w/ Zipper Applique #1D2221

• Leather Jacket w/ Zipper Applique #1D3121

• Cotton Canvas Coat w/ Contrast Leopard Print #1D3211 -2, -3

• Cotton Polka Dot Print Crew Neckline T-Shirt #1D1161-3, -5

• Short Sleeve Silk Polka Dot Print Shirt #1D11251 - 3


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Cost Sheets

Style #: 1D1167 Season: Fall 2014

Wholesale Price: $125.00 Suggested Retail Price: $250.00

Date: June 11, 2013 Product Description: Leopard Print V-Neck T-Shirt Sizes: XS - L Colors: Leopard Print (Multi) Material:

• Jersey Fabric: 2 yards at $9.00 = $18.00 • TOTAL MATERIAL COST = $18.00

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • TOAL TRIMMING COST = $0.45

Labor:

• Labor to produce garment: $10.00 • TOTAL LABOR COST= $10.00

TOTAL COST OF PRODUCT: $28.45


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Cost Sheets



Date: June 11, 2013 Product Description: Polka Dot Print Crew Neck T-Shirt Sizes: XS - L Colors: Polka Dot in Black, Navy, and Charcoal (Multi) Material:

• Jersey Fabric – 2 Yards at $7.00 = $14.00 • TOTAL MATERIAL COST: $14.00

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • Contrast Patch Pocket: 1 pocket at $0.50 • TOTAL TRIMMING COST: $0.95

Labor:

• Labor to produce garment: $10.00 • TOTAL LABOR COST: $10.00



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Cost Sheets



Date: June 11, 2013 Product Description: Chiffon Long Sleeve Shirt w/ Contrast Polka Dot Print Sizes: XS - L Colors: Black Material:

• Chiffon Fabric: 2 Yards at $9.00 = $18.00 • Polka Dot Silk Print: ½ Yard at $15.00 = $7.50 • TOTAL MATERIAL COST: $25.50

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • Front Placket Buttons: 6 Buttons at $0.41 = $2.46 • Sleeve and Collar Buttons: 6 Buttons at $0.35 = $2.10 • Interfacing: ½ Yard at $3.00 = $1.50 • TOTAL TRIMMING COST: $6.96

Labor:




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Cost Sheets



Date: June 11, 2013 Product Description: Chiffon Long Sleeve Shirt w/ Leopard Print Sizes: XS - L Colors: Black Material:

• Chiffon Fabric: 2 Yards at $9.00 = $18.00 • Leopard Print: ½ Yard at $20.00 = $10.00 • TOAL MATERIAL COST: $28.00

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • Front Placket Buttons: 6 Buttons at $0.41 = $2.46 • Sleeve and Collar Buttons: 6 Buttons at $0.35 = $2.10 • Interfacing: ½ Yard at $3.00 = $1.50 • TOTAL TRIMMING COST: $6.96

Labor:




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Cost Sheets

Style #: 1D22161-2.-4.-6 Season: Fall 2014


Date: June 11, 2013 Product Description: Cotton Pants w/ Contrast Side Piping Sizes: 29 - 34 Colors: Black. Green. Brown, Red Material:

• Cotton-Viscose Blend: 2.25 Yards at $9.00 = $20.25 • TOTAL MATERIAL COST: $20/25

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • Zipper: 1 Zipper at $1.00 = $1.00 • Metal Button: 1 Button at $7.00 = $7.00 • Interfacing: ½ Yard at $1.50 = $0.75 • TOTAL TRIMMING COST: $6.10

Labor:




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Cost Sheets


Wholesale Price: $1,000.000 Suggested Retail Price: $2,000.00

Date: June 11, 2013 Product Description: Leather Pants w/ Zipper Applique Sizes: 29 - 34 Colors: Black Material:

• Leather: 2 Yards at $75.00 = $150.00 • Cotton Lining: 2 Yards at $7.00 = $14.00 • TOTAL MATERIAL COST: $164.00

Trimmings:

• Labels: 3 Labels a $0.15 = $0.45 • Metal Button: 3 Buttons at $2.00 = $6.00 • Zipper: 6 Zippers at $1.50 = $9.00 • Interfacing: ½ Yard at $1.50 = $0.75 • TOTAL TRIMMING COST: $ 16.20

Labor:




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Cost Sheets


Wholesale Price: $750.00 Suggested Retail Price: $1,500.00

Date: June 11, 2013 Product Description: Leather Shorts w/ Zipper Applique Sizes: 29 - 34 Colors: Black Material:

• Leather: 1 Yard at $75.00 = $75.00 • Cotton Lining: 1 Yard at $7.00 = $7.00 • TOTAL MATERIAL COST: $82.00

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • Metal Button: 3 Buttons at $2.00 = $6.00 • Zipper: 4 Zippers at $1,50 = $6.00 • Interfacing: 1 Yard at $1.50 = $1.50 • TOTAL TRIMMING COST: $13.20

Labor:




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Cost Sheets


Wholesale Price: $1,250.00 Suggested Retail Price: $2,500.00

Date: January 11, 2013 Product Description: Leather Jacket w/ Zipper Applique Sizes: XS -L Colors: Black Material:

• Leather: 2 Yard at $75.00 = $150.00 • Satin Lining: 2 Yards at $9.00 = $18.00 • TOTAL MATERIAL COST: $164.00

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • Metal Button: 4 Buttons at $2.00 = $8.00 • Front Zipper: 1 Zipper at $3.00 = $3.00 • Interfacing: 1 Yard at $1.50 = $1.50 • Zipper Applique: 3 Zippers at $1.50 = $4.50 • Shoulder Pads: 2 Pads at $1.00 = $2.00 • TOTAL TRIMMING COST: $18.45

Labor:

• Labor to produce garment: $55.00 • TOTAL COST OF LABOR: $55.00



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Cost Sheets

Style #: 1D3211-2, -3 Season: Fall 2014

Wholesale Price: $750.00 Suggested Retail Price: $1,500.00

Date: January 11, 2013 Product Description: Cotton Canvas Coat w/ Contrast Leopard Print Sizes: S - L Colors: Black, Green, and Navy Material:

• Cotton Canvas: 4 Yards at $10.00 = $40.00 • Cotton Lining: 4 Yards at $7.00 = $28.00 • Leopard Print: 1 Yard at $9.00 = $9.00 • TOTAL MATERIAL COST: $77.00

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • Metal Button: 6 Button at $2.00 = $12.00 • Interfacing: 1 Yard at $1.50 = $1.50 • TOTAL TRIMMING COST: $13.95

Labor:




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Cost Sheets

Style #: 1D1251-3 Season: Fall 2014


Date: January 11, 2013 Product Description: Short Sleeve Polka Dot Print Shirt Sizes: S - L Colors: Black, Navy Material:

• Polka Dot Silk Print: 2 Yards at $15.00 = $30.00 • TOTAL MATERIAL COST: $30.00

Trimmings:

• Labels: 3 Labels at $0.15 = $0.45 • Interfacing: ½ Yard at $1.50 = $0.75 • Front Placket Button: 6 Buttons at $0.41 = $2.46 • Collar Button: 2 Buttons at $0.35 = $0.70 • TOTAL TRIMMING COST: $4.36

Labor:




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Line Sheets

• Season: Fall 2014 • Delivery Dates: July - August 2014 • Order Cut Off Date: January 30, 2013 • Order Minimums: 200 • Sales Representative Contact Information: Mariacarla Boscono (212) 567-8765

[email protected]


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Line Sheets


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Line Sheets


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Brand Identity/Competitive Edge

Selling Point: The chief selling point of our brand extension is our attention to detail. This detail is seen in the way our garments are cut, and the attention on how we stitch our garments. We use the best machines, cutters, sewers, and materials to ensure the best construction from each and every one of our garments. This attention to detail allows for the best fit that the Ferragamo brand is known for. By doing this, all our products will preserve their life and maintain their timeless and luxurious looks. Selling Characteristics: Selling characteristics of our brand/brand extension are the use of prints, fabrics, and different silhouettes done in a modern trendy way while maintaining the classic and luxurious Italian look that the house of Ferragamo is known for. Three Adjectives to Describe Brand:

• Classic • Quality • Luxury


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Retail Partner

Retailer: Barneys New York. 8 locations located across the United States in major cities. Cities include: New York City, Chicago, Los Angeles, San Francisco, Seattle, Las Vegas, Scottsdale, and Copley Place. Brand extension will be available across all Barneys locations.


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Retail Floor Plan

• Introduction Stage: Positioned at the front of the store in front of the main staircase for

maximum exposure hanging of wired racks,

• Maintenance Stage: Positioned behind the introduction stage on wired racks.

• Clearance Stage: Clothes will be moved to the backside wall on the clearance rack.


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Production Calendar

• November: Market research for the new collection begins. Inspiration is gathered

from previous collections, current street trends, and what is currently selling in

stores or has sold within the last year.

• December: Inspiration is taken and the design and sketch process begins.

• January: Sourcing for fabric and material begins.

• February: Samples of each garment are produced leaving enough time to do proper

fittings and final adjustments before production begins.

• March: Collection is show during Fashion Week in Milan, Italy.

• April: Early production of collection begins. Prospective buyers look at

merchandise in studios and place their orders during this month.

• May: Major production of the collection begins during this month.

• June: Production continues and all invoices are sent to retailers.

• July: Early shipments begin to be sent out to retailers.

• August: Shipping continues, fulfilling orders until the end of August.

• September: Follow-up with retailers to conduct research of what products sold and

what product did not sell.

• October: Finish all final documents and tasks associated with the current collection

and begin preliminary steps for the new collection that will be designed and

produced.


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Purchase Order

Vendor#: 232464 Vendor Name: Salvatore Ferragamo Begin Shipment: June 10, 2014 Terms: 3/10, n/30 FOB Factory Label: Department: Men’s Designer Season: Fall 2014 Buyer: Linda Fargo Date: February 2, 2014 PO#: G676876 Retailer: Barneys New York

ORDER

Style# Description Color Sizes Ordered: TTL Units: Wholesale: Retail: 1D2131 Leather Jacket Black XS (1), S (2), M (2) 5 $1,250.00 $2,500.00

1D1131

Chiffon Shirt/Polka Dot Print Black

XS (3), S (5), M (5), L (2)

15 $225.00 $450.00

1D2221 Leather Pants Black XS/29 (1), S/30 (2), M/32 (2)

5 $1,000.00 $2,000.00

1D2161 Cotton Pants Black XS/29 (1), S/30 (2), M/32 (2), L/34 (1)

6 $250.00 $500.00

1D2162 Cotton Pants Green XS/29 (1), S/30 (2), M/32 (2), L/34 (1)

6 $250.00 $500.00

1D2164 Cotton Pants Brown XS/29 (1), S/30 (1), M/32 (1)

3 $250.00 $500.00

1D1135

Chiffon Shirt/Leopard Print Black

XS (4), S (4), M (4), L (3)

15 $225.00 $450.00

1D2121 Leather Shorts Black XS/29 (1), S/30 (2), M/32 (2)

5 $750.00 $1,500.00

1D3211 Cotton Coat Black S (1), M (1) 2 $750.00 $1,500.00

1D3213 Cotton Coat Navy S (1), M (1) 2 $750.00 $1,500.00

1D3212 Cotton Coat Green S (1) 1 $750.00 $1,500.00

1D1161 Polka Dot T-‐Shirt Black XS (2), S (2), M (2), L (1)

7 $125.00 $250.00

1D1161 Polka Dot T-‐Shirt Charcoal XS (2), S (2), M (2), L (2)

8 $125.00 $250.00

1D1251 Polka Dot Short Sleeve Shirt Black

XS (2), S (3), M (4), L (2)

11 $200.00 $400.00

1D1253 Polka Dot Short Sleeve Shirt Navy

XS (1), S (1), M (1), L (1)

4 $200.00 $400.00

1D1167 Leopard Print V-‐Neck T-‐Shirt Multi

XS (3), S (5), M (5), L (2)

15 $125.00 $250.00

Total Merchandise Sold: 110 Total Wholesale Cost: $36,000.00 Total Retail Cost: $72,000.00


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Purchase Invoice

Via Tornabuoni 2 Florence, Florence 50123 Phone: 1-866-337-7242 E-Mail: [email protected] Web: www.salvatoreferragamo.com Invoice

Bill To: Barneys New York 660 Madison Ave. New York, NY 10065 (P) 212-‐826-‐9800 (F) 212-‐833-‐2293

Ship To: Barneys New York 660 Madison Ave. New York, NY 10065 (P) 212-‐826-‐9800 (F) 212-‐833-‐2293

Invoice No.: G676876

Customer ID: 232464

Date Order No. Sales Rep. FOB Ship Via Terms Tax ID

02/02/2014 G676876 Mariacarla Boscono X UPS Express 3/10, n/30 N/A

Quantity Item Description Discount Taxable Unit Price Total

5 1D2131 Leather Jacket $0.00 $0.00 $1,250.00 $6,250.00

15 1D1131 Chiffon Shirt/Polka Dot

$0.00 $0.00 $225.00 $3,375.00

5 1D2221 Leather Pants $0.00 $0.00 $1,000.00 $5,000.00

15 1D2261-‐2, 4 Cotton Pants $0.00 $0.00 $250.00 $3.750.00

15 1D1135 Chiffon Shirt/Leopard $0.00 $0.00 $225.00 $3,375.00

5 1D3211-‐2, 3 Cotton Coat $0.00 $0.00 $750.00 $3.750.00

15 1D1161-‐2 Polka Dot T-‐Shirt $0.00 $0.00 $125.00 $1,875.00

15 1D151-‐3 Polka Dot Short Sleeve $0.00 $0.00 $125.00 $1.875.00

15 1D1167 Leopard Print V-‐Neck $0.00 $0.00 $200.00 $3,000.00

5 1D2121 Leather Shorts $0.00 $0.00 $750.000 $3,750.00

Subtotal: $36,000.00

Tax: $0.00

Shipping: $0.00

Miscellaneous: $0.00

Balance Due: $36,000.00


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Seasonal Sales Projection by Item

Introduction -‐ 4 wks. Product Units Sold On Hand

Leather Jacket 5 2 3 Chiffon Shirt/ Polka Dot Print 15 4 11

Leather Pants 5 3 2 Cotton Pants 15 5 10

Chiffon Shirt/ Leopard Print 15 6 9 Leather Shorts 5 2 3

Leopard Print T-‐Shirt 15 6 9 Cotton Coat 5 2 3

Polka Dot T-‐Shirt 15 6 9 Polka Dot Short Sleeve Shirt 15 4 11

Total 110 40 70 Maintenance -‐ 4 wks.

Product Units Sold On Hand Leather Jacket 3 2 1

Chiffon Shirt/ Polka Dot Print 11 8 3 Leather Pants 2 1 1 Cotton Pants 10 7 3




Total 70 51 19 Clearance -‐ 2wks

Product Units Sold On Hand Leather Jacket 1 1 0

Chiffon Shirt/ Polka Dot Print 3 3 0 Leather Pants 1 1 0 Cotton Pants 3 3 0




Total 19 19 0


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Sales Projection - Master Page

• Introduction Stage: 36% of clothes sold during this stage. Beginning Hand:

110 total units available to sell. Sales:

40 units sold during the introduction stage. Ending Hand: 70 total units available after sales.

• Maintenance Stage: 46% of clothes sold during this stage. Beginning Hand: 70 total units available to sell. Sales:

51 units sold during the maintenance stage. Ending Hand:

19 total units available after sales.

• Clearance Stage at 30% Off: 18% of clothes sold during this stage. Beginning Hand: 19 total units available to sell. Sales: 19 units sold during the clearance stage. Ending Hand:

No merchandise available after sales.


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Marketing Plan/Budget

Budget Available for the Fall 2014 Brand Extension: $20,160.00 Introduction Stage: $14,160.00

• Budget Available: • Objective: To inform customers of the new Salvatore Ferragamo brand extension and to

lure that trendy customer into Barneys New York to purchase the new collection. Barneys New York hopes to increase sales of the overall Salvatore Ferragamo brand by 10% from July – October 2014.

• Strategy: Barneys New York and Salvatore Ferragamo will use social media, advertising, and a launch event in the hopes of reaching their objective goals to penetrate the market and increase their sales.

• Tactic: Marketing tactics for the introduction stage will include the use of social media, billboard advertising, and the having a launch event to showcase the new collection. Social media platforms like Twitter, Facebook, and Instagram will be heavily used in advance of the launch of the collection to spread the message of the new brand extension. Mass advertising will also be used and an advertising spread will be featured in GQ and Details magazine for the July and August issues. The advertising through magazines will be funded by the Ferragamo house and will not cut into the budget that has been set for the brand extension. Barneys New York will also be having a launch event for the new collection at the New York City flagship store. Important people from the fashion industry will be invited to see the new collection and in return, will provide good PR, which will increase sales. The launch event will be paid by Barneys New York and will use the budget that has been set for the collection. The event will showcase the collection, feature live music, and appetizers and cocktails will be served, some that will be paid by sponsors.


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Budget Available for the Fall 2014 Brand Extension: $20,160.00 Maintenance Stage:

• Budget Available: $4,000 • Objective: The main objective during the maintenance stage is to establish arousal within

the market about the new brand extension as well to establish the extension within the fashion industry.

• Strategy: The use of social media will still be used during the maintenance stage but a gift for purchase will be included when a customer makes a purchase.

• Tactic: During the maintenance stage, a gift with purchase will be available to establish the brand extension within the store as well as to continue to bring in customers. Since no mark downs on the clothes has been done, a pocket spray of the Salvatore Ferragamo cologne will be given to customers who purchase anything from the collection. Salvatore Ferragamo will be providing these pocket sprays and will not cut into the marketing budget that has been set for the collection. Social media platforms will be used as well to get this message across that a pocket spray will be offered with the purchase of any item. Barneys New York will also rely on the current advertising spreads that are out in current magazines.


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Budget Available for the Fall 2014 Brand Extension: $20,160.00 Clearance Stage:

• Budget Available: $2,000.00 • Objective: The objective during the clearance stage will be to move the remaining

merchandise that is left on hand. • Strategy: Inviting customers to come in shop the brand extension at a reduced price to

reduce inventory on hand. • Tactic: During the clearance stage, Barneys New York will offer the Salvatore

Ferragamo brand extension at a discount price. All items will be moved to the clearance rack at all participating Barneys locations where it will be discounted by 30%. Marketing tactics will include sending blast emails to our loyal customers so that they will be aware of the sale that will last for two weeks. Additional marketing tactics will include the use of social media platforms like Twitter, Facebook, and Instagram to attract any additional customers who may or many not be familiar with the Ferragamo brand.


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Press Kit

CONTACT

Angel Garcia Salvatore Ferragamo 1-866-337-7242 1-866-337-7242 [email protected] www.ferragamo.com FOR IMMEDIATE RELEASE

Salvatore Ferragamo is set to launch the new Fall 2013 Trendy Brand Extension Collection. Press release

FLORENCE, ITALY, FEBRUARY 01, 2014 — Salvatore Ferragamo is pleased to announce the new Fall 2013 Trendy Brand Extension Collection for the luxury Italian fashion label. By maintaining the Ferragamo luxury DNA and incorporating new fabrics and silhouettes, Ferragamo plans to reach a new market with this collection, which will be available for sale this fall. Salvatore Ferragamo has found a missing market in the fashion industry. Although many labels have done trendy clothes, none have done it in a classic and luxurious way. The house of Ferragamo saw this opportunity in which they could create a line, offering classic, Italian silhouettes but done in a modern and trendy way. Through extensive market research, Ferragamo has created a new collection, which will be available in store nationwide come this fall. Long known for their classic silhouettes and iconic pieces, fashion industry professionals who saw a private viewing of the Ferragamo brand extension collection have had nothing but great reviews. Matthew Marsden, Creative Director at Details Magazine said, “It is everything that you would expect from Ferragamo, but done in an extremely, clean modern and trendy way that will appeal to a wide array of customers.” The collection will utilize fabrics that include leathers, chiffons, and animal prints that have never been used in a men’s collection by Ferragamo. Salvatore Ferragamo is a worldwide-recognized Italian fashion house long known for its luxurious and classic silhouettes and shoe making. Salvatore Ferragamo was established by Salvatore Ferragamo is 1928 in Florence, Italy where it continues operating from with Massimiliano Giornetti serving as creative director. ###


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Designer Biography

Salvatore Ferragamo was born in Bonito, Italy in 1898, and was the eleventh of fourteen children. At the age nine he made his first pair of shoes for his sister to wear at their confirmation, upon doing so, Salvatore discovered his calling, and developed his passion for shoes. After a year of studying shoemaking in Naples, Ferragamo opened a small store out of his parent’s home. In 1914, he immigrated to Boston, where one of his brothers worked in a cowboy boot factory. Following a brief period at the factory, Ferragamo persuaded his brothers to move to California, first in Santa Barbara then Hollywood. That was where Ferragamo found much success, initially opening a shop for repair, and made-to-measure shows, which soon became prized items among celebrities of the time, which then lead to career of designing footwear for the films. Nevertheless, his thriving reputation as “Shoemaker to the Stars” only partially satisfied him, which leas him to study anatomy at the University of Southern California, to develop his shoes beyond style, but for comfort. After thirteen years in the United States, Ferragamo went back to Italy in 1927, and settled in Florence. In the same year, he began to fashion shoes for the most affluent and prominent women of the century, from Maharani of Cooch Behar to Evan Peron to Marilyn Monroe. In 1929, he launched a workshop in the Via Mannello, concentrating his efforts in experimenting with design, applying for patents for ornamental and utility models and some related inventions. Although having to file for bankruptcy in 1933, due to bad management and economic pressures, Ferragamo however expanded his business during the 1950 to a workforce of around 700 expert artisans that produced 250 pairs of hand-made shoes a day. Ferragamo serves as an inspiration to other footwear designers of his time and beyond. He was a visionary with designs ranging from the strikingly bizarre object d’art to the traditionally elegant. In 1960 Salvatore Ferragamo died at the age of 62, but his name lives on through his international company, which has expanded its operations to include luxury shoes, bags, eyewear, silk accessories, watches, perfumes, and a ready-to-wear clothing line. Today his wife, Wanda and later six children continue to run the company.


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Bibliography

Company (Salvatore Ferragamo and Barneys New York) Information Take From:

• http://group.ferragamo.com/en/

• http://en.wikipedia.org/wiki/Salvatore_Ferragamo_Italia_S.p.A.

• http://en.wikipedia.org/wiki/Barneys_New_York

• http://www.barneys.com/History/HISTORY,default,pg.html

Images Taken From:

• http://www.barneys.com

• http://www.moodfabrics.com/

• http://group.ferragamo.com/en/

• http://www.ferragamo.com/

• Google Images

merchandise management

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brand extension rationale

house of ferragamo

fall brand extensionfall

classic ferragamo dna

new customers

brand identitycompetitive

actual collection