analyzing business
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Analyzing Business. Introductory Training Course for Store Managers. Agenda. Presentation and Group Discussion (30 mins .) Define variables that impact our business performance Review the resources available to you in division for these variables - PowerPoint PPT PresentationTRANSCRIPT
Analyzing Business
Introductory Training Course for Store Managers
Agenda
Analyzing Business
Presentation and Group Discussion (30 mins.)
• Define variables that impact our business performance
• Review the resources available to you in division for these variables
• Discuss examples of these variables in our business
Activity: practice identifying variables (10 mins.)
Marketing
Analyzing Business
What is marketing?• Marketing is communicating a message to the customer• Activities include: advertising, promotions, in-store signage, and
visual display
What resources are available?• Visual books provide examples of window displays and in-store
signage• Talk to business partners, such as Visual and Merchandising to learn
about marketing plans
Marketing Example
Analyzing Business
• What message is conveyed to customers about styles that are featured in the store windows or on a front table?
• What’s the impact to sales?
Competition
Analyzing Business
Where does competition come from?• Other companies (e.g. Target, Macy’s, J Crew)• Other company brands (Old Navy, Gap, Banana Republic, Outlet)• Other items within the store (e.g. knit dresses vs. woven dresses)
What resources are available?• Visit other companies and brands to understand product assortment,
pricing strategies, and visual point of view.• Review other companies online sites to learn key messaging
including new products, key trends and pricing changes.• Visit our own stores to learn what customers like/dislike,
opportunities for improvement in product, pricing and store placement.
Competition Example
Analyzing Business
What can we do to differentiate our brand’s style?
Example: women’s rib tank top
Special Events
Analyzing Business
What are special events?• Special events include holidays, promotions, or Give & Get (Friends &
Family). • Can account for increase in sales.• Watch for holidays that shift dates every year as this impacts
customer traffic.
What resources are available?• Review information from Marketing, Company Planning, and other
business partners.• Look at fiscal calendar and identify holidays that may have impacted
sales.
Special Events Example
Analyzing Business
Easter 2008 Easter 2009
• How long before Easter do customers typically shop?
• What impact will the Easter date shift have on sales?
Fashion and Product Trends
Analyzing Business
What is fashion?• Defined in multiple ways, including:
Vision of the designer Interpretation by the masses Expression of the individual All of the above
• Mix of the past and the present• A fashion trend reflects the latest style
What resources are available?• Analyzing where different fashion and product trends are in their life
cycle (emerging, peaking, or fading) can help you understand business performance.
Fashion and Product Trends Example
Analyzing Business
What can we do when sales of knit dresses are starting to decline?
Jan Feb March April May June July August0
200
400
600
800
1000
1200
1400
New Products & Store Concepts
Analyzing Business
What are new products and store concepts?• New products can range from a new wash for an existing denim
program to a new category, such as sunglasses. • New store concepts typically are collections of product, for example
“Red” at Gap.
What resources are available?• Information on new products and store concepts are communicated
through business partners including Merchandising, Design and Visual.
New Products & Store Concepts Example
Analyzing Business
Banana Republic’s Monogram Collection
The Monogram product collection highlights the elegance and refined expression of the brand through quality fabrics and details.
Distribution
Analyzing Business
What is distribution?• Each brand has different store groups based on store capacity.• Store groups can range from all stores to only flagship stores.• Merchandising works with Visual to determine how many programs
can be distributed to each store level.
What resources are available?• Assortment Costing Tool (ACT): store level information available.
Report lists all styles and cc’s for a season and specifies store level distribution by cc.
Distribution Example
Analyzing Business
Key driver programs are typically distributed to all stores since the larger store grouping provides the best opportunity to maximize sales.
Inventory Ownership
Analyzing Business
What is inventory ownership?• Weeks on hand (WOH) is a key metric to review to determine if a
program had sufficient inventory to support sales.• Low WOH can indicate that sales were lost due to lack of inventory.• Best way to determine if WOH is high or low is to compare similar
programs in the same department.
What resources are available?• Mid-Week Sales Trend, Week-Ending Sales Trend, Monday Morning
Recaps and MARS Ad Hoc reports: all contain WOH information by program.
Inventory Ownership Example
Analyzing Business
• Assuming all of these programs are comparable, what do you notice about the WOH data?
• What does this suggest about inventory?
Basic T Pocket T Scoop-Neck T V-Neck T Long-sleeve T0
1
2
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9
3.2
5.77
6.4
7.8
WOH
WOH
Product Flow
Analyzing Business
What is product flow?• New product assortments are delivered throughout the year to the
stores in structured groupings called flows. • The timing of each flow is determined based on seasonality (i.e.
climate), holidays (e.g. Thanksgiving), and customer traffic patterns.• Examining the affect of product flow may indicate opportunities to
improve your business.
What resources are available?• Assortment costing tool (ACT): product flow information is available
in ACT. Reports provide flow description, season code, in-store dates and number of weeks at regular price at the program and cc level.
Product Flow Example
Analyzing Business
All short sleeve programs are beating plan and have an APS twice the rate of long sleeve programs.
What does this indicate to you?
Short Sleeve T-shirt
Long Sleeve T-shirt
Pre-Fall Flow: September APS
APS = 5APS
= 10
Price Point
Analyzing Business
What is price point?• Retail ticket prices are determined by Merchandising. • Factors considered when deciding on a retail price include historical
analysis (sales performance and price relationships of past programs), pricing on similar product in competition, costing of the product and customer perception of the price versus value relationship.
What resources are available?• Assortment costing tool (ACT): price-point information is located in
ACT at the program level.
Price Point Example
Analyzing Business
Short Sleeve T-shirt
Long Sleeve T-shirt
Units shipped = 60Units sold = 56
Increase the retail price on similar programs that haven’t shipped yet from the factory…
$29.99 $34.99
Analyzing Business
Any questions?