juicy couture 6 months plan

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Jacqualine Li

Planning and Control

Part I

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Customer Situational Analysis

Department Summary

Class 1Print T-shirts are 30% of the women department sales

35% of sales are in $58 price point 45% of sales are in size S 35% of sales are in white

Class 2Tracksuits are 45% of the women department sales

40% of sales are in $82 price point 42% of sales are in size S 35% of sales are in black color

Class 3Swimwear is 15% of the women department sales

38% of sales are in $92 price point 45% of sales are in size S

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38% of sales are in purple color

Class 4Handbags are 10% of the women department sales

52% of sales are in $188 price point 42% of sales are size S 36% of sales are in purple

The tracksuits generate the biggest proportion of sales; they account for 45% of the women’s

department business. Also, the Juicy trademark print t-shirts are the most popular classification, which

contributes 30% of the sales in the women department. The balance is 15% swimwear and 10%

handbags. Most of the items are priced around $50 - $90, except the handbags, priced from $128-$215.

Based on the sales, the major sizes in the department are size S and the dominant color is purple.

Customer Profile

Customer Specs:

Female College degree or above $35,000 - $60,000 per year salary Generation Y and Z Love to play sports, such as yoga and tennis Enjoy life and love music Love to shop at Tiffany’s, Nordstrom’s, Sak Fifth Aveune and more upscale boutiques.

Susie Mayer is a 25 year old female, who just graduated from FIDM and works as a visual

merchandiser at an upscale boutique in San Francisco, California. She loves all kinds of music and enjoys

her life every day. Although she works full time, she still goes to yoga every Tuesday and Thursday night.

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She also loves partying and hangs out with her friends and family in her spare time. She lives in a small

apartment in the inner sunset in San Francisco with her boyfriend, Johnny. Therefore, she loves cooking

at home with Johnny and spending time with him watching movies and surfing the internet.

In the weekends or her day offs, she like to go shopping around downtown San Francisco or to drive to

other large shopping areas, such as Stanford Shopping Mall and Valley Fair. She is a shopaholic,

therefore, every time she goes shopping she must buy lots of stuffs. She loves spending all her money on

fashion clothing and handbags that makes her very fashionable and upscale looking. However, she

always sells her old and out dated clothing to the second hand buying store to make money back. Also,

she loves to watch fashion shows and read magazines to update her knowledge in her career and also

for her own fashion style. In addition, she loves music and cannot live without her ipod everyday at work

and during transportation.

Floor Plan

Juicy Couture 2nd floor Women Clothing @ San Francisco Downtown

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Population Analysis - Demographics

Location: San Francisco, CA

Department: Juicy Women’s department

Analyze area: San Francisco, San Francisco County, CA

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I analyzed the information regarding to the San Francisco County because Downtown, San Francisco is a shopping area that not only attract the people lives around there, but also tourists and people from different cities. Therefore, I used the data from The Lifestyles Market Analyst 2008 and The US Census Bureau to figure out my ideal target market for the Juicy Couture’s women department.

Gender Number Percent

Total Population 757,604 (X)Male 385,376 49.2%Female 372,228 50.8%

AgeMedian Age (Years) 47.618 -24 years old 9,992 3.1%25-34 years old 65,108 20.2%45-54 years old 69,298 21.5%

EthnicityWhite 282,636 43.3%Black 43,081 6.6%Asian 215,404 33%Other 112,270 17.1%

EducationHigh School ( 4 years) 82,474 13.9%College (1 -3 years) 132,314 22.3%College ( 4+ years) 267,001 45%

Household Income$30,000 - $39,999 25,463 7.9%$40,000 - $49,000 25,785 8%$50,000 - $74,999 53,505 16.6%$75,000 - $99,999 39,967 12.4%

Population Analysis – Psychographics

The top ten ranking lifestyles in San Francisco, California are as following:

1. Own an apple/ Macintosh PC 303 Point2. Foreign Travel 238 Point3. Attend Cultural/ Arts Event 205 Point4. Frequent Flyer 192 Point5. Snow Skiing Frequently 173 Point

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6. Gourmet Cooking/ Fine Foods 164 Point7. Tennis Frequently 161 Point8. Wines 154 Point9. Fashion Clothing 147 Point10. Running/ Jogging 143 Point

After analyzing the data reported in the Lifestyle Market Analyst of 2008, most of the

population in the San Francisco, California, loves to go traveling and attending cultural and arts events.

The highest ranking is to own an apple product. Therefore, their income should be more than $50,000 to

afford all those activities and be able to purchase expensive products. Also, the data shows that the

population enjoys sport activities, such as snow skiing, tennis, running and jogging. Therefore, they will

need to buy sportswear and equipments to go with the sports. Moreover, fashion clothing is also a big

thing in San Francisco. The ratio is 147, higher than other country, which means people would love to

spend more money on clothing and care about how they look.

Segments Analysis - 4 Different Target Customer Segment for Juicy Couture’s Women Department

Customer 1

Age: 25-33 Gender: Female Ethnicity: White, Single Education: Some College Income: $30,000 – $35,000

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Lifestyle: She loves Fashion clothing, but she doesn’t have much extra money to spend. Therefore, she will pick the best quality. She owns an apple laptop, likes to spend time with friends and family. She loves jogging and yoga twice a week after work, and eats healthy.

Customer 2

Age: 27-34 Gender: Female Ethnicity: Asian, Just Married Education: Master’s Degree Income: $45,000 - $60,000 Lifestyle: She has a professional job and works full-time. She loves to spend money on clothing

and accessories. She also owns apple laptop and ipod. She loves hanging out with friends and her husband, spending time with them and traveling. She always search for fine foods in the cities and enjoys playing yoga and tennis.

Customer 3

Age 35- 45 Gender: Female Ethnicity: Asian, Single Education: Bachelor’s Degree Income: $40,000 - $55,000 Lifestyle: She loves partying, hanging out with friends and family. She enjoys listening to music

and carries her ipod everywhere she goes. She is a very active girl that loves all kinds of sports, such as snowboarding, basketball, tennis, yoga and running. Therefore, she loves to wear comfortable clothing like tracksuits and casual wear when she doesn’t have to work. Also, she loves eating a lot, so that she often dines out and tries for new restaurants.

Customer 4

Age: 38-45 Gender: Female Ethnicity: Black, Married with two kids. Education: Some College Household Income: $80,000 - $100,000 Lifestyle: She spends all her time with her family when she doesn’t work. She loves shopping

with her kids. She enjoys cooking at home and watching movies with her family at night after

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dinner. She personally loves fashion, music and looks very trendy. In her spare time, she always plays sports with her kids.

Merchandise Mix Modification

Based on the analysis, the San Francisco County population seems to have a higher range of

income, from $30,000 - $100,000, than the other cities. They loves spend money on fashion

clothing and especially sport wear and casual wear. Therefore, Juicy Couture fits to the target

markets they try to sell. However, if they can make a bigger range of the price points, they may able

to attract more target customers to purchase their products. Also, the San Francisco population

loves to have sports during their spare time, so that they may have better, healthy body shapes. In

order to increase the sales, they can adjust the size range a little to fit the target market.

I didn’t make many changes for the merchandise mix. The changes that I did are only giving a

bigger range of price points and the sizes.

Classification 1: Print T-shirt

In this classification, the ratio of print T-shirts is right to the department, because our population is a

big fan of casual wear. Therefore, I will just make a bigger range of the price points, in order to

attract more customers. The price points will be from $48, $62, $88 and $102. Also, the proportions

in the price points will mostly buy for the average price range, which is $62 and $88. Therefore, I will

increase the total percentage of $62, from 25% to 40%, and also increase the price point of $88 to

35%. For making these changes, I will buy 20% of the $48 print t-shirts instead of 35% and the rest

will be in price point of $102. The proportions in sizes, I will increase the size XS from 15% to 25%,

and decrease the Size M to 25%.

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Classification 2: Tracksuits

For the tracksuits’ section, I didn’t make many changes because I think it fits the target market

strongly in the department. However, the only thing I want to make corrections is the proportions of

the sizes. I will buy more the size XS, from 13% increase to 30%, and decrease the size M from 38%

to 21%.

Classification 3: Swimwear

The swimwear classification will remains mostly the same, except getting more size XS, from 12% to

30%, and decrease the size M, from 40% to 22%.

Classification 4: Accessories Handbag

The price point, size and color and the proportions of the department are good for the target

market. Therefore, I will only get less size S handbag, from 42% decrease to 20%, and get more of

the Size L, from 23% to 45%. The reason why I do that is because the San Francisco population loves

outdoors activities and loves to carry their apple products. Therefore, they may need a larger size of

handbags to carry their personal belongings out.

Market Trend Analysis

Company: Juicy Couture

Department: Women’s Clothing

Season: Spring 2010

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Current Sales

From Juicy Couture’s report, their net sales of first quarter are $132 million in 2009, which

represents a decrease of 22% in the sales from last year. Comparing the net sales from last quarter, their

net sales fell 6% in the store at Downtown San Francisco. Also, they just closed down one of their main

flag store on Madison Ave, New York. Therefore, they are having trouble with their sales now. However,

Juicy launched a new fragrance line that they confidently think it can boost up the sales in the future.

Based on the data that I analyzed, I estimate that in spring 2010 their sales will do better than now, sales

will have 5% threats in the San Francisco’s store because they will have a new line of fragrances coming

out to the market. Therefore, I think they will have 1% opportunities to help their business improve.

Economic Trends

Based on the Consumer Confidence Survey reports for July 2009, the Consumer Confidence Index

has a decrease from 49.6 to 46.6. According to the Conference Board, The Present Situation Index,

which measures shoppers' current assessments of the economy, has declined to 23.4 from 25 last

month. The Expectations Index measures shoppers' outlook over the next six months fell to 62 from 65.5

in June. The economists mention that many of the consumers worry about their jobs. Franco, one of the

economists, points out that "More consumers are pessimistic about their income expectations, which

does not bode well for spending in the months ahead." Therefore, consumers are not willing to

purchase anything in this moment because jobs cut rates is still increasing in the few months. However,

there is good news that the housing market is showing some good signs of stabilization. The decrease of

the housing is getting better than the last few months. Therefore, less people are bankrupt than before.

Based on the information from the Consumers Confidence Survey, I would estimate that the

economic will continue to decrease. However, if the foreclosure houses get more stable than before, I

still think there will be a 2% threats on the recession market on spring 2010.

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Social Factors

According to the recession, the consumers are buying clothing in lower price ranges. They buy

what they thinks is durable and fashionable. The fashion forward consumers will get cheap clothing in

Forever 21 and Wet Seal instead of buying brand names. Therefore, they can stay trendy and save

money. Moreover, technology is getting better nowadays. In Trendwatching.com, they mention that the

consumers would rather shop online instead of going out to the store because they can compare and

search for the lowest price that they can get.

I definitely think that this trend will continue to be larger and larger in the future. Therefore, it

will affect the sales in the Juicy Couture store at Downtown San Francisco. I would estimate that it

should be a negative effect on the sales that will be a 1.5% threat in spring 2010.

Political Factors

I don’t think there will be any significant effect on political factors in spring 2010 since we

already elected our new president and no special elections are coming up in this few months.

Climate

Based on the Farmer’s Almanac and the Weatherchannel.com, they predict that the weather in

the Northern California will be warmer last year because of the global warming. According to the long

range weather forecast for spring 2010, northern California will have less rain than past years.

Therefore, it will help to increase sales in some cases. However, the weather is getting warmer, which

affect our tracksuit in the department because those are all long sleeves and more appropriate for the

colder weather. Therefore, I assume that Juicy will have 2% opportunities because of the less raining

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days and more sunny days in summer to sell the swim wear in the next spring. On the other hand, I put

1% threat because the warmer weather can affect Juicy sales in the tracksuits with long sleeves.

Competition

In the Juicy Couture’s Downtown store, there are many competitors in the area. Based on

Hoover’s, the biggest competitors are H&M and Guess. For H&M, they have very positive results in the

first quarter during this big recession. H&M’s prices and assortments are totally better than Juicy. Also,

they will launch an exclusive clothing and accessories line with Jimmy Cho in this coming fall. I can

assume that they will also launch new lines with other famous designers for their spring collection in

2010. Therefore, they will totally affect Juicy sales on the next coming. For Guess, their clothing is

somehow different from Juicy. However, their store is always on sale and in promotion. That may also

affect to our sales because the Guess store is only 1 block away from Juicy. So according to all of those

affect, I estimate that Juicy will have 2% threats on spring 2010.

Fashion Trends

Juicy has a high positive rating on the fashion trend because the upcoming trend is more into

sporty looks, with bright colors. That is what Juicy’s women line is selling it right now. In the

Stylesight.com forecasts for the spring and summer 2010, they have a category named Jubilation. This

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fits Juicy clothing perfectly. It mentions that “Happiness is the secret to staying young,” and also “Stay

young, Stay Bright” which blends the trend with the store for sure. Moreover, the colors that Juicy have

in the store right now, it is the exact colors that the trend is going for in next spring.

In addition, there is a trend of being Princess Narcissists, people who wearing clothing with

pinky and princess style. It must be one of our biggest trends in the store because the merchandise that

we are selling, such as pink t-shirts, pink tracksuits and pink handbags, will definitely sell in the next

spring too. Also, Juicy will create an exclusive clothing line for customizing your own words on their

tracksuits. It will be a great idea to have it when most of the consumers love to purchase exclusive

products now. However, most of the consumers will buy cheaper price ranges for the clothing in the

future. It may affect Juicy sales a little bit of because we selling high quality and middle to luxury price.

For all the information above, I estimate that Juicy will have 5% opportunities in the next spring

because the merchandise will be more in the trend. However, they will have 1% threat because of the

price range are higher than the consumer will buy.

Promotion

Juicy will have the same promotion with 25% off for all the merchandise in the store that they

have offered for years. However, they will launch a new line called Bird to Juicy, which is more feminine

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and city-looking women in next quarter. Therefore, they will have more promotion sales going on the

coming season. We will have a in-store party to introduce our new line to customers and also we will

have advertising on magazines to report the clothing. In addition, we will have more mark downs

merchandise during the season and giving out special sales coupon to our potential customers. We can

attract the customers to come in the store with their coupon and also we can increase out sales. Based

on that, I estimate Juicy will have 1% opportunity because of their Bird to Juicy.

Other

Swine Flu will spread out to more countries now that makes less people traveling out to other

countries. Therefore, the Juicy’s store is located in Downtown San Francisco, which is the biggest tourist

shopping area, will decrease the sales because of that. For, this case I assume that Juicy will have 1%

threat in spring 2010.

Net Changes

Based on all the factors above, I estimate Juicy will have a 4.5% decrease in the sales plan for

next spring. In this recession, I think 4.5% is a reasonable estimation because people are buying less than

before. Also, they are looking for something more valuable and durable.

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Part II - V

6 Month Merchandise Plan- STS Method

6 Month Merchandise Plan – WOS Method

Assortment Plan

Operation Statement

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DEPARTMENT ANALYSIS

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Company: Juicy CoutureDepartment: Women's ClothingSeason: Summer 2009

Class 1 Price Points $58 $62 $78 $102 Total% of Total 35% 25% 20% 20% 100%

Print T-shirts Sizes XS S M L%of Total 15% 45% 35% 5% 100%

30% Colors Red Pink White Black%of Total 10% 30% 35% 25% 100%


Tracksuits Sizes XS S M L%of Total 13% 42% 38% 7% 100%

45% Colors White Grey Black Pink%of Total 30% 14% 35% 21% 100%


Swimwear Sizes XS S M L%of Total 12% 45% 40% 3% 100%

15% Colors Pink Purple Red Navy%of Total 36% 38% 16% 10% 100%

Class 4 Price Points $128 $188 $215 Total% of Total 38% 52% 10% 100%

Accessories: Sizes S M LHandbags %of Total 42% 35% 23% 100%

10% Colors Carmel Brown Navy Purple%of Total 20% 18% 26% 36% 100%

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Modified Merchandise Mix

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Company: Juicy CoutureDepartment: Women's ClothingSeason: Spring 2010


Print T-shirts Sizes XS S M L%of Total 25% 45% 25% 5% 100%

30% Colors Red Pink White Black%of Total 10% 30% 35% 25% 100%


Tracksuits Sizes XS S M L%of Total 30% 42% 21% 7% 100%

45% Colors White Grey Black Pink%of Total 30% 14% 35% 21% 100%


Swimwear Sizes XS S M L%of Total 30% 45% 22% 3% 100%

15% Colors Pink Purple Red Navy%of Total 36% 38% 16% 10% 100%

Class 4 Price Points $128 $188 $215 Total% of Total 38% 52% 10% 100%

Accessories: Sizes S M LHandbags %of Total 20% 35% 45% 100%

10% Colors Carmel Brown Navy Purple%of Total 20% 18% 26% 36% 100%

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Company: Juicy CoutureDepartment: Women's ClothingSeason: Spring 2010

Classification Plan

Feb Mar Apr May Jun Jul TotalDept Purch 65.1 225.1 240.2 153.8 229 143.7 1056.9

% TTL 6.2% 21.3% 22.7% 14.6% 21.7% 13.6% 100.0%

Classification Breakdown:

$ $ $ $ $ $ Total

Print T-Shirt 30% 19.5 67.5 72.1 46.1 68.7 43.1 $

317.4

Tracksuits 45% 29.3 101.3 108.1 69.2 103.1 64.7 $

476.1

Swimwear 15% 9.8 33.8 36.0 23.1 34.4 21.6 $

158.5

Handbag 10% 6.5 22.5 24.0 15.4 22.9 14.4 $

105.7

100% 65.1 225.1 240.2 153.8 229 143.7

$ 1,057.7

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The End

juicy couture 6 months plan

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