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This report was written at the request of Dr. Jung Ha-Brookshireof the Department of Textile and Apparel Management at the

University of Missouri for Chicos FAS, Incorporated.

by

Katherine Furrie

Firefly

On behalf of Group 6

Tam 4990: Capstone

Spring 2013

May 15, 2013


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137 Stanley Hall (573) 882-6425

Columbia, MO 65211 Fax: (573) 882- 3289

May 15, 2013

Mr. David F. Dyer

President and Chief Executive Officer, Director

Chicos FAS, Inc.

11215 Metro ParkwayFort Myers, FL 33966

Dear Mr. Dyer,

As requested by our Professor Dr. Ha-Brookshire, we have prepared a business plan for you

introducing a new sustainable sportswear brand into the Chicos FAS family.

This business proposal is an informative guide into our complete thought process for the

planning of Firefly. The following business plan includes the following subsections:

1. Introduction

2. Situation Analysis

3. New Product Line Launch Strategy4. Marketing Strategy

5. References

6. Appendices7. Resumes

Through our extensive research and analysis, we have determined that pursuing the missing gapof sustainable womens contemporary sportswear in the market. The addition of Firefly to the

Chicos FAS family will allow Firefly to reach an already loyal customer base and bring in new

customers who care about the environment and sustainable clothing.

Thank you for giving us the opportunity to present you with our business plan. We appreciate

your time and consideration and truly believe that Firefly is exactly what Chicos FAS needs in

order to broaden the customer base and increase revenue.

If you have any comments or concerns regarding the document, please do not hesitate to contact

us [email protected]

Thank you again for your time.

Sincerely,

Katherine Furrie

On behalf of Firefly
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Executive Summary

I. Purpose of Report

The purpose of this report is to address the issue at hand: there is no brand that is meeting the

needs womens sustainable contemporary sportswear so this is an area that Chicos FAScouldadd to their already diverse family. The brand of FIREFLY would offer a different assortment of

merchandise through its being sustainable but would also blend nicely with the Chicos

customer base. The FIREFLY fall collection will offer simple, effortless, and classic silhouettes

that can be stand alone pieces that she can add to her wardrobe or outfits that she can mix andmatch universally with other items that she has bought from FIREFLY.

II. Part One: Situation Analysis

Currently there are no sustainable brands or companies that are within the moderate price range

and give the customer great quality that goes hand in hand with the pricing. After examining the

market, we found significant competitors in the womens contemporary sportswear market suchasBanana Republic,Ann Taylor, andEileen Fisher. These companies are all within different

price ranges but share the commonality of selling womens contemporary sportswear. However,

we found that onlyEileen Fisheroffers sustainable clothing line in addition to her other lines.Through bringing FIREFLY to fruition, it allows Chicos to enter a new market within womens

contemporary sportswear.

III. Part Two: New Product Line Launch Summary

Chicos FAShas the opportunity to cement their position as a market leader within the realm of

womens contemporary sportswear. The niche market of companies being sustainable and selling

sustainable merchandise is slowly on the rise and ifChicos FAStakes action now they cancement their place as one of the first and top brands to carry out a fully sustainable brand. We

have identified our target consumers as follows: the Working Women, the Working Women with

Family, Single Working Women with Family, and the Retired Women. Being mindful of each

type of women for each of them are unique in their lifestyles, personalities, and values. Due toour extensive research in branding, FIREFLY has put a lot of thought into the design elements

such as our logo, and tagline. Also the concept of how FIREFLYS line would allow Chicos a

similar and diverse market tapping into the customer base who buy sustainable merchandise.

IV. Part Three: Marketing Summary

Finally, the business plan ensures the complete and successful implementation of FIREFLY into

all aspects of the Chicos FASfamily. In order to fulfill this vision, FIREFLY will implement

various social media avenues to catch the eye of their customers and future customers and incitetheir interest. Things such as the FIREFLY blog, e-commerce site, mobile app, and use of

Facebook will all play an important role of successfully launching the marketing segment of

FIREFLY. The layout of the FIREFLY store will create both an accessible and pleasant


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shopping experience not just for the women shopping, but their children or spouses who come

along and wait while she shops. To ensure customer loyalty and retention, FIREFLY has

proposed service tactics for before, during, and after the sale, along with several Public Relationactivities such as donating and planting a tree in America with the purchase of Plant a Tree with

Style bag. FIREFLY will also have special event nights where we will donate twenty percent of

all sales to the national charity Dress for Success.

V. Overall Recommendations

Through extensive research of the womens contemporary sportswear apparel industry, it has

been determined that it is essential to provide a premium service and bring about an all new

brand that will launch Chicos FASto a whole new level within the industry. It is about trying tomeet the needs of many without losing the benefits they expect and want with the price. With

Chicos FASbringing FIREFLY into the family it will allow Chicos FASto become one of the

leading companies that offer sustainable brands.


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Table of ContentsPage

LETTER OF TRANSMITTAL.......................................................................................................iiEXECUTIVE SUMMARY....iii

LIST OF TABLES..v

LIST OF FIGURESviINTRODUCTION....viii

Section

Part I: Situational AnalysisBusiness Objective...2

Market Segmentation...2

Competitor Analysis6

Banana Republic..6Ann Taylor.12

Eileen Fisher..17

SWOT Analysis for Banana Republic...22SWOT Analysis for Ann Taylor....23

SWOT Analysis for Eileen Fisher.24

GAP Analysis25Summary of Situation Analysis.27

Part II: New Product Line Launch StrategyBusiness Objective.29

New Product Line Value Proposition....29

Brand Owner..30Target Consumer38

Branding Strategy..46

Value Chain Strategy.52

Summary of New Product Launch Strategies55

Part III: Marketing Strategy

Business Objective.57Product Strategy.57

Multi-Channel Strategy..67

Merchandising and Pricing Strategy..72Promotion / Communication Strategy...78

Service92

Implementation Plan / Controls.97

Budget Statement103Summary of Marketing Strategies...104


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REFERENCES106

APPENDICES110Appendix A: Merchandise Plans

Appendix B: Resumes


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List of Tables

Part I: Situational AnalysisTable 1.1 - Banana Republic SWOT Analysis

Table 1.2 - Ann Taylor SWOT Analysis

Table 1.3 - Eileen Fisher SWOT AnalysisTable 1.4 - Price vs. Quality GAP Analysis

Table 1.5 - Age vs. Price GAP Analysis

Part II: New Product Line Launch StrategyTable 2.1 - Annual Growth for Chicos

Table 2.2 - Global Sourcing Map

Part III: Marketing Strategy

Table 3.1 - FIREFLYS Project Sales per Square Foot Information

Table 3.2 - FIREFLYS Projected Annual Sales

Table 3.3 - FIREFLYS Markup StrategyTable 3.4 - FIREFLYS Markdown Strategy

Table 3.5 - FIREFLY Merchandise Plan

Table 3.6 - FIREFLY Alterations Price ListTable 3.7 - FIREFLY Rollout Schedule

Table 3.8 - FIREFLY Human Resources Management Strategies

Table 3.9 - FIREFLY Corporate SalariesTable 3.10 - FIREFLY Corporate Employee Benefits

Table 3.11 - FIREFLYS Budget Statement For Year 1


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List of FiguresPart I: Situational Analysis

Figure 1.1 - Banana Republic Brand Logo

Figure 1.2 - Banana Republic Brand Image

Figure 1.3 - Banana Republic Store FrontFigure 1.4 - Banana Republic Interior and Atmosphere

Figure 1.5 - Banana Republic Customer Review

Figure 1.6 - Ann Taylor Brand Logo

Figure 1.7 - Ann Taylor Brand ImageFigure 1.8 - Ann Taylor Store Front

Figure 1.9 - Ann Taylor Interior and Atmosphere

Figure 1.10 - Ann Taylor Customer ReviewFigure 1.11 - Eileen Fisher Brand Logo

Figure 1.12 -Eileen Fisher Brand Image

Figure 1.13 - Eileen Fisher Store Front

Figure 1.14 - Eileen Fisher Interior and AtmosphereFigure 1.15 - Eileen Fisher Customer Review

Part II: New Product Line Launch Strategy

Figure 2.1 - Chicos FAS Inc. Brand LogoFigure 2.2 - Shows All Of The Brands Under Chicos FAS

Figure 2.3 - Chicos FAS Officers

Figure 2.4 - Displays Current Product OfferingsFigure 2.5 - Travelers Collection Starter Kit

Figure 2.6 - Chicos Black Label

Figure 2.7 - Oprah WinfreyFigure 2.8 - Business Wear

Figure 2.9 - Julia Roberts With Family

Figure 2.10 - Parents With Graduate

Figure 2.11 - Demi Moore With DaughterFigure 2.12 - Single Mother With Daughter

Figure 2.13 - Diane Keaton As Retired Women

Figure 2.14 - Women GardeningFigure 2.15 - FIREFLY Brand Name

Figure 2.16 - FIREFLY Tagline

Figure 2.17 - FIREFLY Brand LogoFigure 2.18 - FIREFLY Electronic Storyboard

Figure 2.29 - FIREFLY Brand Image

Part III: Marketing Strategy Report

Figure 3.1 - FIREFLY Flats and costing


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Figure 3.2 - FIREFLY Flats and Costing

Figures 3.3 - FIREFLY Flats and Costing

Figures 3.4 - FIREFLY FlatsFigures 3.5 - FIREFLY Shopping Bag

Figures 3.6 - FIREFLY Tote Bag

Figures 3.7 - FIREFLY Clothing TagFigures 3.8 - Romeo and Juliet Eco-Friendly Infinity Scarf from Storiarts Etsy Store

Figures 3.9 - Eco-Friendly Infinity Scarf from MiniRuin Etsy Store

Figures 3.10 - Eco-Friendly Jewelry from Illuminista Etsy Store

Figure 3.11 - Marsilia Yeungs Obi Belt Etsy StoreFigure 3.12 - FIREFLY Store Layout

Figure 3.13 - FIREFLY Store Layout

Figure 3.14 - FIREFLY Store LayoutFigures 3.15 - FIREFLY E-Commerce Site

Figures 3.16 - FIREFLY Mobile App

Figures 3.17 - FIREFLY Promotion

Figures 3.18 - FIREFLY PromotionFigures 3.19 - FIREFLY Sneak Peak Email Blast

Figures 3.20 - FIREFLY Advertisement

Figures 3.21 - FIREFLY AdvertisementFigures 3.22 - Dress for Success Logo

Figures 3.23 - Facebook Promotion for Dress for Success

Figures 3.24 - Amour Vert Eco-Fashion ManufacturerFigures 3.25 - FIREFLY Eco Shopping Bag

Figures 3.26 - FIREFLY and Amour Vert Promotion

Figures 3.27 - FIREFLY BlogFigures 3.28 - FIREFLY Facebook Like Page

Figures 3.29 - FIREFLY Pinterest Page

Figures 3.30 - FIREFLY Mobile AppFigures 3.31 - FIREFLY Loyalty Card

Figures 3.32 - FIREFLY Thank You Email


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Introduction

This business plan introduces FIREFLY a womens contemporary sportswear company to theChicos FAS family.

The following document consists of these parts:

Part I: Situational Analysis Part II: New Product Line Launch Strategy Part III: Marketing Strategy Report References Appendices


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Business Objective

When creating a new brand or emerging into a new market, considerable research and analysismust be completed in order to understand the existing state of the Womens ContemporarySportswear Market. After conducting some research, it has been discovered that there are three

major brands that dominate that market. In this section, their current business practices andofferings will be analyzed, as well as locating a possible entrance for a new brand into theexisting competitor mix. This proposal will include a Market Segmentation Overview,Competitor Analysis, SWOT Analysis, GAP Analysis, Summary of Situation Analysis, andReferences.

MARKET SEGMENTATION

Introduction

When analyzing the market for Womens Contemporary Sportswear, it is apparent that there is asignificant gap in the sustainable sportswear market that has the potential to be filled. The marketfor sustainable clothing is rather limited, and there are few included in the higher price point of aContemporary clothing line. This section will include the following findings: the GeneralDefinition of Womens Contemporary Sportswear, the Economic Impact of this Industry, theIndustry Structure, the Industry Trends, and the Market Force Analysis for ContemporarySportswear.

Definition of Womens Contemporary Sportswear

Contemporary Sportswear is a price point that falls at equal or greater than the Better category(Fasanella, 2009). Contemporary Sportswear consists of separates that are in the higher pricerange, comparable to designers such as Talbots,Michael Kors, Vince,Diane Von Furstenberg,and Eileen Fischer (Fasanella, 2009). Contemporary sportswear consists of more fashion-forwardmerchandise, and is one of the most popular segments in the fashion industry. Sustainablefashion, on the other hand, is defined as clothing that supports and nourishes the earth and thelives of all the people involved in the processes of growing, manufacturing, and distributing theclothing, while reducing environmental impact.

Economic Impact of Industry

Over the past few years the fashion industry has had many economic impacts. From 1996 to2011, the U.S. apparel manufacturing industry experienced many job losses averaging 323 masslayoff events per year("Fashion," 2012). However, the womens apparel industry is making acomeback. By 2014, the womens clothing industry is expected to exceed $621 billion dollars,marking a 12% increase in five years ("Fashion," 2012). At almost 65%, clothing retailersaccount for the largest share of the market in terms of value. Although consumers made lesspurchases during the economic recession, retailers currently find themselves with a product


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surplus. The U.S. womens wear industry was affected severely by the economic crisis in 2008.With higher unemployment rates, people had less disposable income and had to cut back onclothing. In 2009, the industry fell nearly 5%. Thankfully, the industry had a 0.5% growth in2010 and continued to grow in 2011("Women's Clothing Industry: Market," n.d.). By 2014,China is predicted to become the global leader in the womens wear market, exceeding 72.4

billion ("Women's Clothing Industry: Market," n.d.). Overall, consumer confidence is rising andpeople are beginning to buy clothes again.

More specifically, in the womens contemporary sportswear market, ecommerce and online salesare gaining in popularity over the store experience ("More Female Baby Boomers," 2010). Manyof the shoppers in this market have a surplus of time and money to spend; yet do not wish to dealwith the hassle that can be found in a store. Therefore, they are making their purchases online.This is a change in a market that had largely been focused on the in-store experience. Because ofthis, stores selling contemporary sportswear are refining and updating their websites to includemore product descriptions, videos of the garment being worn, and better photographs with zoomabilities. To this end, they are once again giving the customer the power to have a pleasant

experience both in their brick and mortar stores, as well as online.

Industry Structure

The industry structure for womens contemporary sustainable clothing is very small. There arevery few companies such asEileen FisherandJ.Jill that are found in this specific industry. Sincethis industry is quite limited, there are only 386 businesses that make up womens contemporarysportswear (NAICS, 2008). However, this industry has a big chance to grow. Womenscontemporary sportswear with a sustainable focus is a small, yet fragmented industry, for all thefirms are small in size and there are not that many of them (Jain, 2002).

Industry Trends

Research has shown that vendors are still price focused. The industry took a major impactbetween 2008-2009 with the economic downfall and housing crisis. Due to those two factors,women had less disposable income to spend on clothing ("reportlinker.com," 2012). Theeconomy has since gone up; therefore, women now have the flexibility in their budgets to spendmore on apparel. This indicates that an economic shift is occurring towards spending more onhigher priced clothing with the disposable income that consumers now have more of("reportlinker.com," 2012).

The industry is also shifting towards purchasing more sustainable goods and also shopping

small. Research reflects that consumers are becoming more inclined to purchase from aspecialty store or a local boutique over a department store ("reportlinker.com," 2012). Bothsustainability and spending money locally reflect a social shift fueled by consumer preferences toshop smart and shop small.There has also been a lifestyle shift in the industry towards marketing women of ages 40 andolder. Many of these women are empty nesters, which increases their discretionary spending by10% (AIO, 2012). As an industry, the focus is on these women because they enjoy indulgencesand are focusing on spending locally as well as buying stable products (AIO, 2012).


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This industry is facing technological shifts with the rise of ecommerce and online shoppingwithin the womens clothing industry. More women shoppers are going online and becomingsavvier with making purchases (AIO, 2012). This means that the industry must cater towardsthese shoppers as they are becoming more tech-friendly and have more buying power online.

Retailers should ensure that their online sites are user-friendly for newer users and make thewhole process very quick and simple. These buyers are influenced by their child to purchasesmart phones and shop online, which means that online sales in this industry will also be risingbecause of that.

MICHAEL PORTERS5FORCESMODEL

In the following section, the Womens Contemporary Sportswear market is analyzed using theMichael Porters Five Forces Model. This model includes the following determinants: Threat ofNew Entrants, Threat of Substitutes for Products or Services, Bargaining Power of Buyers,

Bargaining Power of Suppliers, and Rivalry Among Existing Competitors (Porter, 2007).

Threat of New Entrants

The barrier to entry is high, since there is a large economy of scale, high capital requirements,access to distribution channels, and a loyalty to existing brands. Technology and knowledge ofthe industry are specific advantages that existing retailers have in this market. These competitorsalready have the manufacturing processes, technology, and infrastructure to maintain anadvantage over the industry. A large financial investment is required for entry into this market,since launching a new brand is extremely costly. Existing companies have financial stores forapparel and production, as well as for the costs of advertising and marketing. Pre-existing

companies in this industry have access to distribution channels and know which ones are thetrustworthiest. With this, a new entrant into the industry would have to take some considerabletime to determine the best distribution channel for their company, as well as a way to access it.Last, there are many brands in this industry that carry a loyal following. Customers have beenshopping with these brands (some have incentives for frequent shoppers) for years, sometimesdecades, so breaking into a market where loyalty is high is decidedly more difficult for a newbrand.

Threat of Substitutes for Products or Services

In this market, there is a large amount of complementary products or substitutes available to the

customer. This makes it easier to create products, yet more difficult to create a differentiatedproduct. Most of the products in this industry are not of new design or are highly innovative,since the styles have been around for a very long time. This enables brands to embellish thesimple designs and differentiate their lines in creative ways to set them apart.

Bargaining Power of Buyers


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The buyer volume will be large in comparison to suppliers, with a large say in the price andquality of the goods. Since customers will be high in volume as compared to suppliers andretailers, they will have the majority in say and will be very influential in the persuasion of acompany to listen to their needs and wants. Because of this majority, it would behoovecompetitors to anticipate customers demands and listen to them when necessary. Customers also

have an easy ability to switch between products, which indicates that competitors have to workharder to retain those customers.

Bargaining Power of Suppliers

The suppliers that sustainable-minded companies will work with will have a strong positioningstyle because they are selling a unique product, with there only being a few other suppliers tochoose from in the United States. These companies could go outside of the United States,however this can ruin the image of them being sustainable, for there are suppliers in the UnitedStates that they could use but chose not to.

Rivalry Among Existing Competitors

Top competitors areAnn Taylor,Eileen Fisher, andBanana Republic. Each of these companiesare very large in size and have seen growth over the past years. There is little diversity that existsbetween the competitors. Each of these competitors products, are of high quality, ranging fromnarrow product choices to a wider selection. Competitors products are at higher price points,with the ages ranging from 25-60. High customer loyalty exists between brands; however,customers are willing to switch between brands, since it is so easily done. Exit barriers will beany existing contract with the suppliers that will be broken, otherwise exiting is relatively easy.

Conclusion

Differentiation in the Womens Contemporary Sportswear Market is the key to success, asdetermined by Porters Five Forces Model and Market Force Analysis. This market is a higherbarrier to entry, with other main competitors to battle with. While there are significant threatswithin the industry, there are also opportunities for success. Therefore, a new entrant into theContemporary Sportswear market with a strongly differentiated product, a loyal following, andhigh quality will have no problem finding success.


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COMPETITOR ANALYSIS

Based on the understanding of the Contemporary Womens Sportswear market and the MarketForce Analysis, there are three major retailers and brands that a new contemporary brand would

face competition from:Banana Republic,Ann Taylor, andEileen Fisher. When analyzing thecompetition, it is important to note their target age market, their price point, and their qualitywhen evaluating them. This section provides information about each brand and their respectivebrand identity.

Figure 1.1 Banana Republic Brand Logo

Mel and Patricia Ziegler founded Banana Republic Travel and Safari Clothing in 1978. (House,

2012) Originally, Mel Ziegler was in search of the perfect jacket to suit him on his worldlyadventures, but found none that worked for him. So, he decided to create his own. From this, Meland his wife began creating outdoor and safari clothing, housed in a fun store environment. Theysoon created a name for themselves and were bought out by Gap, Inc. in 1983 (House, 2012).Gap took over the business aspects, while the Zieglers used their creative vision to make theirstores unique. Since the Gap acquisition, their product offerings have expanded to house wares,personal items like perfume and cologne, and footwear (International Directory of CompanyHistories, 1999). Their target consumer includes white-collar young professionals exceeding theage of 25 who make more than $100,000 annually (International Directory of CompanyHistories, 1999). Reaching the end of 1983, there were fiveBanana Republic stores that grossed$10 million. However, as safari-themed apparel began to become more and more unpopular, the

company had to reinvent themselves. Eventually, the stores became more streamlined, the safari-esque clothing was dropped and more casual, yet classy wear was developed. By the 1990s theTravel and Safari Clothing name was removed, the store interior became much morestreamlined and became known for their urban lifestyle clothing (Banana Republic Inc.History, 2000). By this time, sales had skyrocketed andBanana Republic expanded to 162doors generating $300 million in sales (Banana Republic Inc. History, 2000). Now, with over620 stores, in North America, Europe and Asia, Banana Republic saw just over $2.6 billiondollars in revenue last year (Banana Republic, LLC Company Profile, 2013).


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BANANAREPUBLICSBRAND STRATEGY

Brand Image

Banana Republic holds a strong brand image as accessible luxury, meaning they offer a high-

end, luxurious product for a reasonable price (Our Brands - Banana Republic). Part of their corebrand image is that they offer their target consumer a modern, covetable workplace style forprofessional men and women.

Figure 1.2 - Banana Republic Brand Image (Banana Republic, 2013)

Brand Message

The message thatBanana Republic sends to their customers is that they dedicate the company toproviding customers with versatile clothing that can be worn from desk to dinner (Our Brands- Banana Republic)

Product Offerings

The product offerings inBanana Republic stores range from clothing to handbags, and jewelry toeyewear. Much of the clothing is business attire or business casual, with a lot of structuredblazers and silky blouses.


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Store Atmosphere

The atmosphere of the store provides a calm and high end shopping experience for the customer.The interior design of the storefronts consists of lots of sleek metal fixtures with wooden accents.Another aspect of the design ofBanana Republic locations is that the design and architecture of

each store reflects the look and feel of their distinctive communities (Banana Republic Inc. -Company). The minimalist decor of the interior ofBanana Republic adds to the luxurious brandimage of the company and matches the fashionable basics design of the product lines. Thestore associates are knowledgeable and offer great customer service.

Figure 1.3 - Banana Republic Store Front


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Figure 1.4 - Banana Republic Interior and Atmosphere

Brand Architecture

The brands within Gap Inc. each contribute to a specific segment of the brand architecture.These brands include Gap,Banana Republic, Old Navy, Piperlime, andAthleta. On a matrix ofYounger, Middle, and Older age groups versus Upscale, Average, and Budget pricing points,these brands all fall in a different category (Gap Inc. 2011 Annual).

-Gap: Average price point, Younger and Middle age groups-Banana Republic: Upscale price point, Middle and Older age groups-Old Navy: Budget price point, Younger and Middle age groups-Piperlime: all price points and all age groups-Athleta: Upscale price point, Middle age group


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Analysis of Banana Republics Product Offerings

Banana Republics Heritage Collection is a modern, limited-edition collection inspired by ourlegacy of exploration and discovery defined by craftsmanship and authenticity (BananaRepublic Heritage Collection,). This collection is filled with fun blouses, tailored jackets, and

basic shirts that come in different prints and colors that can be paired with anything.BananaRepublic Monogram Collection is distinctive, details, tailored to become the exception, ratherthan the rule. Step out of the everyday and into something extraordinary (Banana RepublicHeritage Collection). This collection is filled with cashmere cardigans, silk blouses, and fitted-but not too fitted-pants and skirts.

Companys Consumer Satisfaction and Dissatisfaction

Banana Republic is known by its customers for simple pieces, that are timeless and affordable,due to frequent sales (Jessica, 2008). Their customers enjoyBR for their comfortable pieces thatare of a slightly higher quality than their lower priced counterpart Gap. Customers state thatBR

likes to straddle the line between classic and modern, usually straying on the more classic side ofthings. In terms of fit, shoppers love the tailored feel of the blazers and pants. The pants areconsidered too long by some, but they are intended to be worn with heels.Banana Republiccaters to most body types since they have departments specifically for Womens, Womens Tall,and Petites. Customers enjoy this feature, since it is often hard to find a garment that fits everyheight and body type. They also appreciate the amount of stretch in the pants and the snugness infit along the hips and rear area. Several of the blazers, pants and blouses reviewers rated them asholy grail garments that they will only purchase fromBanana Republic. There are somequality issues with some of the garments snagging or being prone to wear and tear after washing.However, since a lot of their garments are dry clean only, this may have been a consumer errorrather than an error on the companys part. They tend to use a lot of polyester and acrylic blends

with wool and also spandex. Most people enjoy this since they are wearing many of thesegarments in professional environments, where comfort is often key. Most customers acclaim theversatility of the garments and that they enjoy wearing them to work as well as other activities(Banana Republic Customer Reviews, 2013). An example of a customer review fromBananaRepublic is shown below:

Figure 1.5 Banana Republic Customer Review (Banana Republic, 2013)


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Banana Republic Analysis of Product Offerings from a Sustainability

Perspective

Pros: Packaging and supplies and shopping bags- Made with a percentage of recycledmaterial. Shopping bags contain 15% recycled material and are recyclable; shoeboxes, whichcontain 90%, recycled material and are recyclable; and gift cards contain 88% recycled content. Store Lighting- 71% their stores energy consumption is the electricity used in stores and theyare working on improving the efficiency of the store lighting. The goal is to reduce GHGemissions by 20% by 2015.

Cons: They are recognizing that they are using a massive amount of water and they say they are goingto make changes in their factories in China but we have yet to see any. ("About Us," n.d.).


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Figure 1.6 Ann Taylor Brand Logo

Ann Tayloris a well-known American specialty retailer for the professional woman. They areinfamous for their quality suits, separates, dresses, shoes, and accessories with a polished classiclook. Robert Liebeskind founded the originalAnn Taylorstore in New Haven, Connecticut. ThenameAnn Taylorwas chosen to represent the target consumer, there was never an actualAnnTaylor. The companys classic look became popular soon after the grand opening, and theystarted opening more shops in eastern college towns such as Boston, Providence, andGeorgetown. In the late 1970s, Liebeskind sold his stores to Garfinckel, Brooks Brothers, MillerRhodes Corporation. With the change in management, Ann Taylor stores began to spreadquickly (Julie, 2013). At this time, the company began working with European, upscaledesigners. This led to the conclusion that loyalAnn Taylorcustomers were willing to pay morefor a sophisticated, unique look, but not as likely to pay the prices found in designer boutiques.

This also concluded that by carrying a select few designer labels and brands, they had lesscompetition and more pricing flexibility. As a part of Garfinckels, in 1981 Ann Taylorwasbought byAllied Stores Corporation and soon became the most profitable group of the Alliedretailers (Julie, 2013). By 1991,Ann Taylorspread from the East Coast, to Jackson, Mississippi,generating profits from 58 outlets and 176 stores (Julie, 2013). Looking to make more revenue,Brooks decided to getAnn Taylorinvolved in the stock market. The company sold seven millionshares for $26 per share, making the stores planned expansions possible (Julie, 2013). The end ofthe 1990s was spent expanding theAnn Taylor LOFTidea, which was prominent and profitablefor the company (Julie, 2013). In the year 2000,Ann Taylorinvested into retail shopping online,making it easier to reach out to the consumers and provide excellent customer service (Julie,2013). The company capitalized on attracting career professional workingwomen. The company

has recently celebrated its 50th anniversary, and continues to grow, featuring its fashion iconsfrom the past in order to sustain the classicalAnn Taylorlook from the 90s, while keeping itsmodern design (Ann Taylor stores corporation history, 2005).


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ANNTAYLORSBRAND STRATEGY

Brand Image

Ann Taylorportrays an image as a brand that provides women with a unique combination of

fashion, work, and a flattering fit.Ann Tayloris one of the leading retailers in womensbusiness wear, and provides a balance between classic work attire and up-to-date fashion trends.

Figure 1.7 - Ann Taylor Brand Image (Egan, 2012)

Brand Message

The message this sends to the target consumers ofAnn Taylorstores is one the exudes high-quality clothing for professional women in todays working world who still want to dress in afashionable sense.

Product

Ann Taylorprovides product offerings in apparel, shoes, accessories, and even wedding andbridal items. The apparel items all exude a very clean and sophisticated look, while still finding abalance between timeless classics and fashion-forward trends (Julie, 2013).


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Store Atmosphere

The atmosphere inside of anAnn Taylorstore corresponds with the product offerings inside. Theinterior of the store is very bright, white, and clean, providing a polished look that is very classic

and professional. The feel of the store is very calm and the customer service inside is veryhelpful to the customers.

Figure 1.8 - Ann Taylor Store Front

Figure 1.9 - Ann Taylor Interior and Atmosphere


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Brand Architecture

Ann Inc. is composed of two different brands:Ann TaylorandLOFT. These brands both target adifferent market segment and allow Ann Inc. to reach consumers of various ages and incomes.

On a matrix of Younger, Middle, and Older ages versus Upscale, Average, and Budget pricepoints, here is where the brands ofAnn Inc. fall in their brand architecture.

-Ann Taylor: Upscale price point, Middle and Older age groups-LOFT: Average price point, Younger and Middle age groups

Analysis of Ann Taylors Product Offerings

Ann Taylors cashmere collection allows the customer to be a little more luxurious with thesimple designs that they employ in their sweaters. In their regular apparel collection, theyemploy the same basic tailored silhouettes in their blouses, shirts, pants, and skirts.Ann Taylor

uses fun, bright colors and playful prints that make the outfit fun, but not make it too young forthe wearer.

Ann Taylors Consumer Satisfaction and Dissatisfaction

There are several negative views about the downturn inAnn Taylors product quality andcustomer service.Ann Tayloris renowned for their affordable, yet classic work wear that was ofan attainable price point and quality. However, customers are upset thatAnn Taylorhas, turnedinto this cheap and classless store with too many synthetic, cheap looking fabrics and toomany wasteful trends (Jenn, 2013). Many of the customers agreed with Jenns statements,saying that the quality ofAnn Taylors garments have gone downhill over the past few years.They say this is a coincidence between the declining product quality and aiming towards ayounger market.Ann Tayloris trying to aim towards youngsters and is ditching the womenssuit that they are so famous for (Julie, 2013). This has aggravated many of their customers andnow they feel forced to shop elsewhere. One customer in particular claimed that they wouldcompare the product quality as, FAR below TargetorWal-Martquality (Stephanie, 2013).This reduction in garment quality was found in nearly all of the reviews. Customers expressedfrustration in their shipping experiences withAnn Taylorand the lack of correspondence theyhave received from the company. While this is not apparel related, this affects the likeliness thata shopper will continue to shop there.


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An example of a customer review is shown below:

Figure 1.10 Ann Taylor Customer Review (Stephanie, 2012)

Ann Taylor Analysis of Product Offerings from a Sustainability

Perspective

Pros: Shopping Bags- Eliminates the use of plastic shopping bags, with 40% post consumer waste. Life Cycle Assessment Tool- They use a life cycle assessment tool that evaluates differentpackaging and hanger material options. It helps measure the impact of decisions that the

procurement teams make when making business decisions. Marketing paper- they use primarily source Forest Stewardship Council certified paper fortheir marketing products and strive to include post consumer waste in their content. Store Designs- they are using more sustainable materials and procurement practices. Theynow have motion sensors in appropriate rooms and spaces, energy efficient technology and he isof sustainable materials where possible. They also use low VOC paint and flooring, low-E glasswindows and recycled content in their ceiling tiles. In new stores they now have water efficientplumbing.Cons: Ann Tayloris becoming aware of water consumption and making changes in their new storesby installing low flow plumbing. Although they are making changes involving water, they are

not yet doing anything about the amount of water they use to make their clothes.


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Figure 1.11 Eileen Fisher Brand Logo

Eileen Fisherwas founded in 1984(International directory of company histories, 2004). EileenFisher specializes in making womens loose-fitting, business casual clothing that scarcely

changes from year to year. The companys style has been categorized as sophisticatedsuburban, their neutral colors make it simple to mix and match the different styles. Thecompanys mission is to inspire women to celebrate who they are. They demonstrate simplicity,beauty, comfort, ease, function, well-being and versatility. The target market is women aged 35-55 (International directory of company histories, 2004). Eileen Fishers career in designingclothes took off in 1984 at the New York Fashion and Boutique Show (International directoryof company histories, 2004). She made four articles of clothing: a vest, a boxy top, a sleevelessblouse, and a pair of flowing crop pants. She collected $3000 worth of orders, and turned thatinto $40,000 after making the new apparel (International directory of company histories, 2004).Fishers business strategy of taking things one step at a time had revenues reaching $1.3million in 1988 (International directory of company histories, 2004). She then expanded her

company by selling toMarshall Field, Saks Fifth Avenue, andNordstrom, along with owningthree of her own stores in Manhattan and one in Chicago. In 1993 sales advanced to about $25million dollars, with the company maintaining its simple, flowing separates made of silk, linen,rayon, cotton, and various knits (International directory of company histories, 2004). In 1995Eileen Fisherwent global, boosting sales up to over $50 million dollars, when about 750,000units were shipped (International directory of company histories, 2004). At this point she wasrunning 28 in-store shops. In the spring of 1998 she came out with a higher-priced bridge line(International directory of company histories, 2004). The items ranged from about $100-$400,consisting of cashmeres and silks. In 1999 she moved her entire line into the higher-pricedbridge line, which was wholesaling between $38-$188 (International directory of companyhistories, 2004). After moving her line to the higher price point, Eileens sales have increased

11%, to about $143 million dollars (International directory of company histories, 2004). Shecontinues to sell the same items at similar prices to this day and remains successful(International directory of company histories, 2004).


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EILEENFISHERSBRAND STRATEGY

Brand Image

The brand image ofEileen Fisheris Simple. Sensual. Beautiful. Timeless. Functional.

Figure 1.12 - Eileen Fisher Brand Image (Exclusive Interview, 2012)

Brand Message

The messageEileen Fisherbrings to the consumers is beautifully simple clothing designed tomove with real life (One Design Culture, 2012). The brand stands for timeless clothing withclean lines, sensual fabrics, and simple shapes that can be worn in a variety of different ways for

a long time.

Product

The product offerings inEileen Fisherare very simple and basic. The classic looks of the itemsrange from simple blazers to classic sweaters, but all of the apparel in the line exudes the highquality and sensual fabrics that are expected with the Eileen Fisher brand. The productofferings also include shoes and accessories. Within the design collections,Eileen Fisheralsooffers an Eco Collection, which is mostly composed of classic sweaters in timeless colors. TheEileen Fisher brand is sold in both high-end department stores andEileen Fisherspecialty stores.


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Store Atmosphere

The atmospheres of both kinds of locations for the brand provide a luxurious environment inwhich the clothing takes center stage, and the customer service-oriented salespeople provide a

high-end shopping experience for the customers.

Figure 1.13 - Eileen Fisher Store Front

Figure 1.14 - Eileen Fisher Interior and Atmosphere


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Brand Architecture

Eileen Fisheris the only brand under the name. Based on the brand architecture matrix ofUpscale, Average, Budget price points against Older, Middle, and Younger age groups,Eileen

Fisherfalls in the Upscale price point and Older age group.

Analysis of Eileen Fishers Product Offerings

Eileen Fishers eco collection is primarily made up of different types of sweaters, basic shirtsand blouses, undershirts, both loose and tailored pants, and flowy and structured skirts. Thecolors are basic white, grey, and black, along with some shades of blues and purple. The rest ofEileen Fishersproduct offerings that is not eco-friendly are more fashion forward and fun. Butthey still carry that same level of elegance that is also evident in the eco-friendly collection.

Eileen Fishers Consumer Satisfaction and Dissatisfaction

Eileen Fisherfosters a lot of brand loyalty among its customers, who purchase for the brandshigh quality, color range, and flattering silhouettes. Blogger andEileen Fishercustomer, SallyMcGraw stated, There were certainly soft neutrals, muted tones, and loads of black dominatingthe garments that we saw, but, as always, the colorful items caught my fancy about the 2011line that deviated from the neutral garments of the past (McGraw, 2011). Customers say thatwhen they wearEileen Fisher, they are comfortable and confident in their appearance, and thatthe clothes dont need to scream to be seen and heard (Breanna, 2011). The comfort factor theysay lies in the fact that the clothing tends to run larger than most, but it is not a complaint; theyenjoy the coziness and the fact that it is not body hugging. Seemingly, a lot of the women talkabout how they thrift theirEileen Fisherpieces and scout for them at estate scales. Since theyare confident in the quality of the pieces and also know retail price, most shoppers will jump at aused garment fromEileen Fisher. The largest dissatisfaction is the price point. Cynthia, ablogger, stated that, EFhas always just been one price point above what Im comfortable with,which often prevents her from buying (Cynthia, 2011). However, the items they do purchase arevery prized possessions. Carrie admitted that she, did splurge on a black 60-style swing coat afew years ago and adore it every time I open the closet (Carrie, 2011). Due to the higher prices,buyers tend to purchase staple items that can create a foundation for every outfit and arewearable season to season. Without the flexibility of the garment, the high price is often hard tojustify for them.


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An example of a customer review is shown below:

Figure 1.15 - Eileen Fisher Customer Review (Already Pretty, 2011)

Eileen Fisher Analysis of Product Offerings from a Sustainability

Perspective

Pros: 70% of Eileen Fishers cotton is organic. In the Spring 2012 line they transformed how they dyed by reducing chemical usage by 45%and water usage by 25%. In 2006, they discovered Peruvian organic cotton that could be mistaken for cashmere sothey developed a fair trade supply chain centered on it. In 2008 they started their eco jeans program where they sourced denim with organic cotton

and now almost all their jeans are eco friendly.Cons: Fewer colors used in clothing. High price point. Organic cotton is expensive to grow.

Conclusion

Eileen Fisheris a good example of a sustainable brand. The brand is recognizing all thedifferent ways to be sustainable and they are taking action. The brand is using sustainable

fabrics such as cotton as well as designing different programs inside of their brand that maketheir products sustainable. Eileen Fisheras a brand is more expensive and because they are sosustainable the colors and patterns used are limited.


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SWOTANALYSISBanana Republic

Strength: Strong financial services. Acknowledged market Cost advantages.

Weakness: Too narrow a product line.

Opportunity: Favorable demographic changes. Faster market growth.

Threat: Growing bargaining power of customers or suppliers. Entry of lower cost foreign competitors.

Table 1.1 - Banana Republic SWOT Analysis

Banana Republic is a well-known and well-shopped brand. Its strengths lay in the strongfinancial services that allow them to try new collections that tie in with popular culture. Thesingular weakness they face comes from their basic lines that offer too narrow of a product line.Banana Republic has the opportunity to have a faster market growth and to have more favorabledemographic changes. This means thatBanana Republic is able to market to people in urbanareas, while still gaining business from people who are not located in urban areas. The threatthat they face is the entry of lower cost foreign competitors that have the same offerings, but at acheaper price point. Therefore, growing the bargaining power of the customer or suppliers.

Customers like to feel like they are getting a deal when they shop.


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Ann Taylor

Strengths:

Strong and loyal customer base. Strong financial resources. Better manufacturing capacity.

Weakness:

Missing some key skills or competencies.Lacking managerial depth and talentViewed as not the best quality.

Opportunity: Changing buyer needs and/or tastes.

Threat:Adverse demographic changes.

Table 1.2 - Ann Taylor SWOT Analysis

Ann Taylors strengths lie in their strong and loyal customer base, having strong financialresources and better manufacturing capacity. Their weaknesses are a big problem for the brandfor they are missing some key skills or competencies. One main weakness is their lack ofmanagerial depth and talent. Several customers have complained about their less thansatisfactory treatment in the store. Another weakness that their brand faces is several negativereviews where they are not viewed as having the best quality and/or silhouettes. An opportunitythat they could use for their benefit is the changing buyer needs and/or tastes. The threats thatAnn Taylorfaces are that their adverse demographic changes, such as getting rid of things thatset them apart and not letting their customer base know that they are changing their target market.


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Eileen Fisher

Strength: Ahead on experience curve.

Strong financial services. Acknowledged market.

Weakness: Higher overall unit costs relative to key competitors.

Opportunity: Unmet needs in the marketplace. Identified need for related products.

Threat: Economic shifts that decrease demand.

Table 1.3 - Eileen Fisher SWOT analysis

Eileen Fisherhas many strengths, for one they have the experience on having an eco-friendlycollection that consumers seem to enjoy. They have the overall experience compared to the othercompanies we have discussed thus far. They have the opportunity to expand their offering andmeet other needs that are in the marketplace that would mesh with what they already offer totheir customers. Their only weakness is that they have higher overall costs due to being a semi-luxury brand. Then there is always the threat of another economic downturn, which would leadto a large decrease in customers shopping at this brand.


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GAPANALYSIS

Shown below are two Market Segmentation Maps, which help visualize a gap in the market forthis brand. Included in this analysis are graphs for Age vs. Price and Quality vs. Pricecomparison.

First, in the Price vs. Quality Map, it is established that there is a gap between Eileen FisherandBanana Republic in which could be filled by a new brand.

Table 1.4 - Price vs. Quality Gap Analysis

Second, in the Age vs. Quality Map, it is found that the gap is located on the line that straddlesbetween younger and older, while still high in price.

Table 1.5 - Age vs. Price Gap Analysis


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CRITICAL GAPS TO BEFILLED

Price versus Quality

The critical gaps in the marketplace are within the high price and high quality segments. Fillingthis gap fulfills the need of a customer who wants something of high quality but doesnt exactlywant to pay a ridiculously high price for a blouse or jacket. Another gap that needs to be filled isin the high price but low quality category. However, fulfilling this need could be brand suicide.If the brand or store expects to charge their customer a high price shopping with them, then theyas a company or brand need to fulfill the customers needs and expectations of having a better orhigh quality. Failure to meet these expectations will result in lost customers, along with thepossibility of bad reviews online or by word of mouth.

Age versus Price

There are critical gaps in the marketplace within the middle aged and middle priced segments.This segment is crucial to be filled because there are many companies who cater to a young orold woman, but there are is a gap for middle aged women. Also, the price is either low or high,and there are not really any moderately priced brands. Another gap in this analysis that could befilled is the younger age and lower price category, however this gap does not fit in with thedefinition of womens contemporary sportswear, as it could come off as junior and moreinexpensive.

Nature of the Gap

The nature of the gap is that there is not a middle ground within the high price and high quality.This is a great place for a new brand to be implemented, especially if the brand has sustainablepractices. It can be difficult to find sustainable brands that are relatively affordable, becausemany of them can be overpriced. Developing an affordable sustainable brand allows customersto make the choice in potentially purchasing sustainable items. By customers purchasingsustainable items over their regular items, they are becoming more environmentally consciouswhilst purchasing a stylish item all at the same time.


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SUMMARY OF SITUATION ANALYSIS

To better understand the competitors within the Womens Contemporary Sportswear Market,extensive research and analysis was conducted to further understand the brand strategies,identities, and histories ofEileen Fisher,Ann TaylorandBanana Republic. Through the Market

Force and Market Leader Analysis, as well as the SWOT and Gap analysis, a clear gap in theindustry has been established as well as the competition necessary to be successful.


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Business Objectives

In order to achieve the objective of making sustainability stylish and pragmatic, it isnecessary to focus not just on the sustainable side but also focus on the target customersneeds and wants. This section includes analyses of the new product line value

proposition, the brand owner, target consumers, branding strategy, and value chainstrategy. Through implementing these objectives, FIREFLY plans to make sure torecognize the customers needs and make sure that we are true to this brand.

NEW PRODUCT LINE VALUE PROPOSITION

FIREFLY is a sustainable company that makes misses contemporary sportswear. Theclothing is focused on the silhouette and line of the garment. The target customer islooking for quality or quantity. They will shop at FIREFLY because they are looking forpieces that they can mix within their wardrobe. All the pieces created will be designed as

separates, although they will be able to match with other things in the collection.FIREFLY is targeting a gap within the market for women who are looking for moreexpensive items than what they would get at Ann Taylor and better quality than BananaRepublic, however, something that is not as expensive as Eileen Fisher. They do howeverwant the same quality that Eileen Fisher offers their customers. FIREFLY will be placedslightly below and to the left of Eileen Fisher in regards to price and target age.FIREFLY is giving her the quality that she wants, along with meeting a need that is not arequirement by her, but the brand delivers it to her all the same. FIREFLY is asustainable company, that is there to meet her needs but also to fill the need for her to beenvironmentally safe, and so that her children will have a better environment to prosperin.


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BRAND OWNERIntroduction

In this section, the retailer who would carry the line will be identified. Included in this,

the history of this company, their size, their product offerings, their position and image inthe market, their performance, and how our line would make this retailer better off willbe explained.

It has been decided that the retailer that would be ideal to carry FIREFLY would beChicos FAS, Inc.

Figure 2.1 - Chicos FAS Inc. Brand Logo (Chicos, 2013)

Brief History

This well-known womens retail company was established in Sanibel Island, Florida in1983. A couple, Marvin and Helene Gralnick, founded the company under the nameChicos Folk Art Specialties (Chicos FAS, Inc. History, 2012). They sold Mexican

folk art, with cotton sweaters being their only apparel merchandise sold at that time. Aftersoon realizing that their clothing was in high demand, they decided to primarily sellapparel and opened a new store in Captiva in 1985 that housedChicos brand apparelonly (Chicos FAS, Inc. History, 2012). Only a year later, they opened up a franchise toa Minnesota woman. Over the years, they kept franchising in order to expand theircompany, designing apparel for theirChicos in house line and making a name forthemselves in the womens sportswear market. In 1990, they shortened the name toChicos FAS, Inc (Chicos FAS, Inc. History, 2012). By 1992, Marvin Gralnick wasCEO, Jeff Zwick was President, andChicos had over 60 stores (Chicos FAS, Inc.History, 2012). Only one short year later, they went public on the NASDAQ. By thistime, the Gralnicks were receiving a sizeable income and had thoughts about retirement.They decided to leave the company. Without them, the company lost its vision and beganto fail. In 1994, after Jeff Zwick retired, the Gralnicks returned to fix the company theybuilt from the ground. A new president, Melissa Payner, was hired and she helped to turnthe company around. They also began to turn their franchises back into Chicos ownedstores, so they had more control over the quality and store appeal. Melissa Payner left thecompany in 1997 and Marvin Gralnick took over as CEO and president (Chicos FAS,Inc. History, 2012). With the Gralnicks running things again, they returned to theirroots and focused on serving their best target market: aging baby boomers. With the


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utilization of the 0-1-2-3 sizing, high attention to the customer experience in the store,and showing appreciation to their customers by offering a discount after spending $500 inthe store, the store became wildly successful yet again and began its climb. With theirhuge success, they moved from the NASDAQ to the New York Stock Exchange as CHS.This was a strong indicator of their success and their ability to grow despite tough

economic environments and other womens retailers failing. The CFO Charles Klemanwas quoted in 2001 as saying that the Chicos shopper was going to spend on apparelwhether the stocks are up or down, since the last thing she will give up is her looks(Funding universe, 2012) acquired White House Black Market in 2003, and thenestablished the brand Soma in 2004, and Boston Proper was the most recently acquired in2011 (Chicos FAS, Inc. History, 2012).

Figure 2.2 Brands under Chicos FAS (Chicos, n.d.)

Demographics

Currently, there are 600 Chicos retail stores, with 100 outlets; 402 White House BlackMarket Stores, with 45 outlets; and 206 Soma Intimates stores, with 16 outlet stores(Chicos, 2013). Each of these stores maintain a storefront, a catalog, and an e-commercewebsite. The stores are located in the United States as well as Puerto Rico and the U.S.Virgin Islands (Chicos FAS, 2013). They plan on testing stores for theBoston ProperBrand this year. They are headquartered in Fort Myers, Florida, not far from where thecompany began its origin. Chicos FASemploys 4,950 people, which is a rather low

number compared to other larger retailers (Macroaxis, 2013). The figure below showsthe positions and names of the officers ofChicos FAS.


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Figure 2.3 - Chicos FAS Officers (Chicos FAS, 2013)

Product Offerings

At Chicos stores across the country, a shopper will find fashion conscious; yet figure

flattering and comfortable garments (Chicos FAS, 2013). Their products give theone-of-a-kind appeal and are more eclectic in nature. They offer womens apparel,accessories, and jewelry. Within apparel, Chicos makes jackets, tops, pants and jeans,skirts and dresses, Garments are designed specifically to fit their shoppers lifestyle byutilizing special design techniques and fabrics to work with womens bodies and need forflexibility. Their sizing is very unique in that it is on a 00 (XS, Size 4-6), 1(S, Size 8-10),2 (M, Size 12-14), 3 (L, Size 14-16), 4 (XL, Size) scale for their clothing (Chicos,2013). This also includes half sizes. A size scale such as this provides simplicity, whilealso making women feel better about the size they wear. Most of the garments tend tocover up the arms, conceal the tummy area, while highlighting the legs, which can oftenbe a womans favorite body part.


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Figure 2.4 - Current Product Offerings at Chicos (Chicos, 2013)

Innovative product offerings can be seen in their Travelers line, in which garments are

wrinkle-free, to enable worry-free packing and easy wear while on vacation (ChicosFAS, 2013).

Figure 2.5 - Travelers Collection Starter Kit (Chicos, 2013)


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Chicos also offers a Black Label line, where the price point is higher than their normalgoods and has a focus on clean, modern lines, but with a playful sensibility.

Figure 2.6 - Chicos Black Label (Chicos, 2013)

Position in the Existing Brand Mix

In the Market Segmentation and Critical Gap analyses from Part One (Figures 1.11 and1.12), FIREFLY] would fulfill a missing segment of the brand mix. There is not a high-medium price point line aimed at average ages, with a sustainable angle. There are veryfew sustainable brands that are focused on garments that are more business apparel, likeFIREFLY. Also, Eileen Fisherhas a sustainable line, however,Eileen Fishertends toaim at an older age bracket with more flowy clothing selections and less structuredbusiness wear. Therefore, FIREFLY is the perfect line to fill the void that exists. Middle-aged women, who are aware of sustainable issues and who still want to look professionaland put together both in work and play, will enjoy our line.


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Market Image

Chicos has been around for 30 years and their image and presence in the market has onlystrengthened over time, due to their innovations in design and willingness to change.They have a large following due to their ability to accommodate larger sizes, flattering

clothing, unique tastes, and attentive salespeople. The demographic that shops in thesestores loves being assisted in compiling outfits and deciding what flatters them, so goodsales people is essential for success as Chicos. Customers find the sales ladies non-judgmental and honest with them about fit, which they feel is a digression from otherretailers in the market. Therefore, they have a positive appeal to women of a larger andolder demographic. Within younger female shoppers, however, they have a slightly oldappeal. To these younger shoppers, they are looking to show off their figure with tight,revealing clothing. This is not Chicos appeal, so they are often turned off by it.However, with the creation of the Travelers collection, Chicos is able to retain thosepotentially lost younger clientele. Since the garments can be balled up in the bottom ofyour suitcase, but still be wrinkle free is great for young travelers looking for basics that

they can wear and go. Young women also find the attentive sales ladies as one ofChicosmore positive points.

FIREFLY will provide a sustainable benefit to Chicos, which is something thatconsumers are now thinking more about and is a hot topic among retail companies.Aiming towards sustainability and eco-friendliness is a strategy for success, sinceconsumers will be more cognizant of the life cycle of their garment and companies willbe forced to respond to their demands. Chicos is considered a highly innovative brandthat was recognized in 2006 by the National Retail Federation as the U.S. Retail IndustryInnovator of the Year (Farfan, 2013). This would be an advantage, since they would bemore likely to adopt a sustainable brand like FIREFLY in order to stay on the cutting

edge of innovation.


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Recent Performance

Sales forChicos FAShas been steadily increasing over time, as is shown in the figurebelow.

Table 2.1 - Annual Growth forChicos. (Chicos FAS, 2013)

By adding the sustainable brand FIREFLY to Chicos FAS, the company will beexpanding their clientele to cater to those consumers who are more conscious of theirenvironmental footprint. Along with adding a more sustainable consumer, FIREFLY willattract current customers ofChicos FASbrands, therefore expanding revenues withcurrent customers along with attracting new ones.


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Long-term and short-term Goals

Chicos Main Long term Goal is to achieve double digit growth over the course of ameaningful period of time, while not very specific, those aspirations show motivationtoward continued growth (News Break, 2013). Since they have been seeing growth like

this for the past ten years or so, picking up our line, FIREFLY, their sales would go up.Their sales would increase, because the new line would draw loyal customers in to seewhat is new and also new Chicos customers, who are intrigued by a different line beingoffered. Since the Chicos brand hasnt differentiated itself in the past 10 years, besidesacquiring other companies, adopting FIREFLY would be a way to keep profits high andgrowing, as well as keeping Chicos relevant in the market and with its customers.Therefore, by Chicos taking on FIREFLY, they would have a step up on theircompetitors by having something different from their current offerings and the draw ofsustainable garments and manufacturing processes.

Their short-term goals as a company is to develop a relationship and an ongoing dialogue

with their customers, in order to determine the needs and wants and to adapt accordingly(Hessinger, 2011). Chicos plans on doing this through clearly showing that there is a twoway relationship between customer and company, where feedback is given and receivedregarding tastes and preferences. To do so, Chicos must extensively study the dataprovided by their customers sales, returns, online and offline shopping behavior,shopping data, and other demographics. This allows them to customize the experiencethat the customer will receive in the way that they have said they prefer. By doing so,they can guarantee success. With the integration of FIREFLY under their brand name,FIREFLY encourages correspondence between consumer and company, thereforeallowing a more transparent relationship. This will enable any possible changes to bemade in the future line creations. Since the line is new, it would provide a suitable way to

start up their data collection on sales and shopping data. Then, they would be able to seeFIREFLYs success, as well be able to utilize this data tracking process with the rest ofthe lines underChicos FAS.

Conclusion

In this section, extensive research was done on Chicos FAS, as the potential brand ownerfor FIREFLY. In doing so, greater light was shone on their company history,demographics, position in the existing brand mix, image in the market, performance, andtheir long term and short-term goals. All of these things will help in determining Chicoseligibility as owner of FIREFLY.


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TARGET CONSUMER

Introduction

FIREFLY will target older successful women and provide them with classic,sophisticated contemporary clothing that can be transformed from day to night. In orderto satisfy each exceptional women, FIREFLY used different famous celebrities forinspiration and target consumers were segmented into the following categories: Workingwomen, working women with family, single working women with family, and retiredwomen. With this, FIREFLY has been made to fit womens wants and needs based ontheir personal lifestyles.

Description of Target Consumer

FIREFLY is a collection designed for the ultimate powerhouse woman. This collection

targets successful older women from all different demographics. The targeting age rangeis from 40-55+. The average income ranges from $60,000 and above. These women arewell-established women who have worked hard to get where they are. They enjoydressing nice and always want to look their best no matter the occasion. FIREFLY isappealing to them, because with such busy schedules, they can wear these clothes frommorning to night. FIREFLY is transformable for a woman who works during the day,then goes out and grabs dinner and drinks at night.

The Working Woman

When it comes to the quintessential workingwoman, Oprah Winfrey takes the cake.

Oprah is a great example of a successful woman who worked hard to get to where she isnow. She has a full time career and has devoted her life to her job.

Figure 2.7 - Oprah Winfrey (JennerJahnReport, n.d.)

The big secret in life is that there is no big secret. Whatever your goal, you can get thereif you're willing to work.-Oprah


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Figure 2.8 - Business Wear (Complete Well Being, n.d.)

Similar to Oprah, the workingwoman has dedicated all her time to her career. Claire is41 years old and works in finance. After graduating from the University of Virginia,Claire moved to New York City. With her busy schedule she does not have much timefor dating. She makes around $85,000 a year after taxes. Claire believes that to have thebest, you must be the best. Claire is very in tune with technology, and you can alwaysfind her with her blackberry glued to her ear. When she has time, Claire enjoys runningand going to Broadway plays. Working such long hours, Claire likes clothes that can gofrom day to night. Shopping is something she does not have a lot of time for so she trysto stick to basic items that can be interchanged. FIREFLY fits Claire perfectly. Claire isyoung and although she has a very busy career she still likes to go out when she has thechance. FIREFLY fits Claires needs because the brand is interchangeable from day tonight. Claire can look professional at work and then go straight out to happy hour andstill feel comfortable and stylish. When Claire does shop, she usually will go to boutiquesor major department stores such as Nordstrom. Claire has made a name for herself in theworkplace and she does not plan on stopping anytime soon.

3 Must- Haves Claire the Working Woman Needs:1) Day Planner to help organize her meetings2) Blackberry to make business calls3) Flexible hours because she works a lot


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Working Woman With Family

Julie Roberts is a great example of workingwoman with a family. Julia and her husbandDaniel; prove that you really can have it all.

Figure 2.9- Julia Roberts with Family (Vipphoto, n.d.)

I'm just an ordinary person who has an extraordinary job.-Julia Roberts


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Figure 2.10 - Parents with Graduate (Health.howstuffworks, n.d.)

The workingwoman with a family are working a part-time or full-time job and makes$65,000 after taxes. She has a four-year college degree and is successful in the office andat home. She knows that in order to provide for her family she has to work. The workingmom is a pro at juggling her career and her household. Above is a picture of Shannonand her family. Shannon is 48, and lives in Kansas City with her husband and son. Sheis a hospital director and a loving mother and wife. Shannon and her husband recentlyjust celebrated their son Jacks graduation from college. Shannon spends about 10 hours a

week doing household chores such as laundry, cooking and cleaning. When Shannon hastime off she likes to spend it with her husband. The two enjoy wine tasting and history.When Shannon gets alone time she likes to watch Dancing With the Stars and read thelatest popular book. Shannon is very in tune with social media and has a Facebook.Shannon also has an iPad and an iPhone. Shannon wants the best for her son so sheworks very hard to give him the life he deserves. Having a family, Shannon is moreaware of the clothing she buys. Before she had a family, Shannon would buy all thelatest fads. Now with a family, Shannon only buys clothing that are versatile and longlasting. Having a family and a career, Shannon has to attend many different kinds ofevents. FIREFLY is a perfect brand for Shannon, because it is affordable for her andbasic. From meetings to her sons graduation, FIREFLY will provide many different

looks for Shannon without having to buy a ton of different clothing.

3 Must Haves Shannon the Working Woman With a Family Needs:1) Skype so she can Skype her son that is at college2) IPhone so she can be in contact with her job and family3) Cookbook to make nice family meal with


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Single Working Woman With Family

When it comes to being a working single mom with kids, Demi Moore sure knows howto do it. Demi Moore is a hard-working single mother who takes care of her kids aloneand still manages a successful career.

Figure 2.11 - Demi Moore with Daughter (hollywood5, n.d.)

I had worked my whole life. Until I became a mother, that's the only way I measured myvalue. Demi Moore


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Figure 2.12 - Single Mother with Daughter (hiddentreasurecomunity, n.d.)

The single workingwoman with a family is a full time parent as well as a full timeemployee. The single workingwoman is the only provider for the family and takes onmany responsibilities. Ann is 42 years old and is a full time lawyer. Ann and her 15-year-old daughter Stephanie live in Houston, Texas where Ann is a Lawyer. Ann makesabout $100,000 a year after taxes. Ann has to give 100% at the office in order to providefor her daughter. Ann also has to give 100% at home because she is the only parent

helping raise Stephanie. Ann attended a four-year college in Texas and later went to lawschool at UT. On her spare time Ann likes to ride bikes with her daughter, train formarathons, and bake. Ann enjoys shows like CSI and Desperate Housewives. Annwants to give her daughter everything including a college education, so she is very awareof her spending. Ann is a very busy woman and needs clothing that she can wear all dayand into the night. Many times Ann leaves work to go see her daughters volleyballgames so she likes to have clothes that are fitting for work and play. Ann likes to dressnice especially when she is entertaining a client, but she will only spend a certain amounton clothing because she has to raise her daughter alone. Since Ann is on a budget,FIREFLY is an ideal brand for her because she can get many looks out of just a fewoutfits. The clothing at FIREFLY are made to mix and match allowing the buyer to get

several looks out of just a few pieces. FIREFLY is a perfect brand for Ann because shewill look professional and stylish in her price range.

3 Must Haves Ann the Single Working Woman with Family Needs:1) iPhone for work and her daughter2) A budget because she is the only source of income for her and her daughter3) Parenting magazine to read about how to balance a career and a child alone


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The Retired Woman

Diane Keaton is a very successful woman who made a name for herself in the movieindustry. Diane made a career, had kids, and now even has grandkids. She is a greatexample of a woman who worked hard and had a career and is now taking the time to

enjoy life and not work as much.

Figure 2.13 - Diane Keaton as Retired Woman (beauty.about, n.d.)

A sense of freedom is something that, happily, comes with age and life experience.- Diane Keaton


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Figure 2.14 - Woman Gardening (superstock, n.d.)

The retired woman is a woman who now has the time to stop and smell the roses. Theretired woman was once a hard workingwoman who had success in her career. Thispicture is a picture of a woman named Sandra. Sandra was born and raised in Chicago,Illinois, where she attended nursing school and became a nurse. Sandra got married andhad three kids and raised her family in a suburb of Chicago. Sandra had a verycomfortable life making around $75,000 as a nurse. Sandra worked for 47 years beforeher and her husband decided to retire. Sandra now lives in Tampa Florida with herhusband and two dogs. Sandra enjoys gardening and taking long walks with her husband.Sandra supports several different charities such as St. Jude, Mercy Home, and many

more. With all these charities that her and her husband support, Sandra has to attendmany luncheons. FIREFLY is a great brand for Sandra because it is Professional but alsostylish. Just because Sandra is old, she does not want to dress that way. FIREFLY willkeep Sandra looking young and fresh. Sandra also has five little grandchildren who shegets to only see a few times a year because they live in Chicago. Sandra and her husbandno longer support their own children, so they have a very flexible income. Sandra likesto shop and will spend her money on clothing. Being older, Sandra likes simple clothingthat is not too flashy. She also likes to spend her money on her grandchildren. Beingretired, Sandra likes to relax and enjoy the little things in life.3 Must Haves Sandra a Retired Woman Needs:1) Gardening tools to garden

2) Skype to talk to her grandchildren in Chicago3) Comfortable shoes to take long walks in

Conclusion

FIREFLY is a brand that is universal to all different kinds of women. The line fits everywomans unique lifestyle. It is a versatile line and women who are on the run can wearthis brand from day to night. FIREFLY will make every woman shine and feel special.


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BRANDING STRATEGYIntroduction

In this section, the branding strategy for FIREFLY will be explained. Stories of the

merchandise line through storyboards, brand name, logo, tagline, and image to show thepurpose and theme of the brand FIREFLY will be included. FIREFLYs branding effortwill not only benefit Chicos FASs overall business, but also benefit the targetconsumers.

Brand Name

The brand name FIREFLY was selected because it represents the specific brand imagethrough one simple, yet straightforward word. FIREFLY is simple to remember andevokes an image of luminosity in ones personality, appearance, and clothing.

Figure 2.15 - FIREFLY Brand Name

Brand Tagline

The tagline Light Up Every Room, Every Moment, Every Person also represents theversatility that FIREFLY has to offer as a brand. This tagline if simple yet effective,because it implies that by wearing the brand, she will be fashionable at any event in herlife, and she will turn heads while doing so.

Figure 2.16 - FIREFLY Tagline


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Brand Logo

The goal of FIREFLY is to keep the logo as simple as possible to maintain a high-endand sophisticated image, suitable for the older target consumers. However, FIREFLYdifferentiates by changing the color of the logo with the seasons, so that the consumer can

be aware as from which season the item is from. This would be done on the tags on thegarment as well as seen on the e-commerce website and in-store.

Figure 2.17 - FIREFLY Brand Logo


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Storyboard

FIREFLY is a brand that was inspired by versatility. The main branding benefit thatFIREFLY has to offer is a fashionable look that is appropriate from the office to happyhour. FIREFLY is designed for the busy career woman of today who needs to look

polished and classy at multiple occasions in her day-to-day life. The color paletteprovides the target consumer with a fashionable twist to a very classic design in whichshe can build upon her existing wardrobe, or mix-and-match the entire line to alwayslook fabulous at any occasion life my throw her way.

Figure 2.18 - FIREFLY Electronic Storyboard


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Brand Image/Theme

This image below (Figure 2.20) represents the image portrayed through FIREFLYsbranding strategy. FIREFLY is a contemporary sportswear collection that is versatile,fashionable, yet classic and sophisticated for the businesswomen of today. The main

image and message that FIREFLY wants to get across is that it is possible to be stylish atany occasion in todays fast-paced world with one product line that can take you fromday to night, or wherever else life may lead you. FIREFLY understands the needs of thesuper-woman of today, along with the needs of all women who just want to look goodwherever they need to be.

Figure 2.19 - FIREFLY Brand Image


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VALUESTATEMENT

Impact on the environment

FIREFLY is ethically conscious regarding the environmental impact. FIREFLY strives to

ensure that the most minimal mark as possible is left on the environment. This is becauseFIREFLY understands the responsibility they have to leave the earth a better place forhumanity.

Customer Comes First

FIREFLYs customers are valued as important and it is of the greatest priority to ensurethey have a positive and memorable experience.

Integrity

FIREFLY expects that all employees and vendors are 100% honest in order for the brandto succeed.

High Standards

FIREFLY believes in high standards. Everyone deserves the best no matter who they are.

Empowerment

FIREFLY makes sure that not only employees are empowered, but also the customers. Itis important to make sure that the FIREFLY brand makes them feel powerful and in

control of their life.FIREFLY is a company that is not just thinking about the bottom line, but is determinedto leave the earth a better place. FIREFLY focuses on the impact of the decisions that aremade and how to make better ones to leave behind something good for mankind.

Benefit of Chicos FAS

The addition of the brand FIREFLY to Chicos FASs existing product line will benefittheir business as well. Chicos FASincludes the brands Chicos, White House BlackMarket, Soma Intimates, andBoston Proper. FIREFLY differentiates itself from Chicosexisting brands because of the sustainable aspect of the line. Also, FIREFLY brands itself

as a fashion-forward brand that is versatile and multi-functional for the busy woman oftoday. FIREFLY has more business-appropriate clothing than Chicos andBostonPropers casual wear, and is a little less expensive than that ofWhite House BlackMarket. FIREFLY is the perfect addition to the merchandise gap in the existing brandswithin Chicos FASbrands.


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Benefit of Consumer

The branding strategy for FIREFLY is to show the versatility and ease that themerchandise has to offer the busy lifestyles of the career woman of today. Today, womenhave so many obligations in their daily lives; they need a wardrobe that can take them

from A.M to P.M with ease. FIREFLYs brand image of versatility will be portrayedby showing a woman multitasking many activities in her daily life, while lookingfashionable and appropriate for the occasion wearing FIREFLY clothing.

Conclusion

FIREFLY intends to differentiate its brand from competitors through the versatilityaspect of the product line. The target consumer lives a busy and professional life, andneeds a wardrobe to carry her through the demands of her chaotic life. This brandingstrategy will communicate the message FIREFLY needs to convey in order to attract theright target market for the brand to be successful.


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VALUE CHAIN STRATEGY

Introduction

When developing a value chain strategy for FIREFLY it is best if the value chain focuseson the primary components of the system. The system is used as an analyzer forFIREFLYs current operating conditions and performance activities, in order to look outfor any gaps or places to cut costs within the company. FIREFLY will be using the BuyFull Package method within the supply chain mechanism. To ensure sustainability withinthe product FIREFLY will be using an eco-friendly manufacturer, Palo, Alto inCalifornia to make the products. This is the original manufacturing plant for the clothingbrand Amour Vert (Amour Vert, 2013). These steps mentioned below are all vital inproducing the final product.

Chicos will take on the marketing and sales role in the value chain. They will then passtheir marketing idea along to FIREFLY. FIREFLY will design the garments and thenpass it back to Chicos marketing department along with any other needed informationabout the design. Chicos will use business analysts to complete any extra researchneeded for the testing of sustainability within the products. After the research iscomplete, it will then be passed back to the designers at FIREFLY to overview the plan.After reaching a decision the plan is sent to the manufacturing plant in Palo, Alto,California (a sustainable manufacturing plant that does all of its work in the UnitedStates), which will include the raw materials needed for the garments (Amour Vert,2013). The finished garments are then moved to the finished goods warehouse and putinto inventory orders (Global Logistics, 2013). At the inventory warehouse FIREFLYwill perform tests on garments, to ensure the sustainability of them. After the computerinventory system is updated, the product is available for sales/shipment to FIREFLYretail locations (based on request to make sure the stores are never overstocked) (GlobalLogistics, 2013). This will be the best solution for the garments because there will be lessadministration costs, with the ability to focus on other business activities, limitedinvestment, flexibility, and less information to obtain. FIREFLY has chosen to only use asustainable manufacturing plant in order to ensure that the products are 100% sustainable.This is also the best method for the company because this minimizes transportation andplant costs by only using one last-stop warehouse for inventory and shipment purposes.


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Table 2.2 - Global Sourcing Map

What makes up FIREFLYS quality is the fabric, fabric treatment, garment design,trimmings, and finishings. FIREFLYS apparel quality will feature physical,performance, and price. Aesthetic performance is easily judged by just looking at thegarment. Style, color, and fit are some of the most common reasons consumers buy anapparel product so it is very important that it meets all three of those poin

revised final project

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