University of the Arts London

PG Certificate: Buying & Merchandising

Buying and Merchandising Assessment

MOO13406023

Amanda Moore-Karim

5/15/2014Word Count: 1,567

Table of Contents

Executive Summary 2

Introduction 3Debenhams 3

Principles by Ben de Lisi…………………………………………………………………………………………………… 3 Brief 3Research Methodology………………………………………………………………………………………….4Research Findings & Analysis……………………………………………………………………………….7 Market Position……………………………………………………………………………………………………..7 Brand Position………………………………………………………………………………….…………………...8 Comparative Price Matrix…………………………………………………….………………………..…..9 Principles by Ben de Lisi Consumer………………………………………………………………………9 Consumer Profile/Pen Portrait…………………………………………………………..……………10 Key SS14 Trends…………………………………………………………………………………………………11 Key Themed Campaigns…………………………………………………………………………………11 Key Colours…………………………………………………………………………………………………...12 Key Shapes…………………………………………………………………………………………………….13 Review of Current SS14 Range……………………………………………………………………………..14 Product Category Mix……………………………………………………………………………………14 SWOT Analysis…………………………………………………………………………………………………...15 Gaps Discovered……………………………………………………………………………………………15 Conclusion of research reached………………………………………………………………………..…16Recommendations and analysis………………………………………………………………………….17 Proposed SS14 Range……………………………………………………………………………………….17 Gaps filled by Range……………………………………………………………………………………..17 Top Down Range Plan……………………………………………………………………………………….18 Bottom Up Range Plan……………………………………………………………………………………...18 Buy Plan…………………………………………………………………………………………………………...20 Proposed Product Category Mix………………………………………………………………………...21 Proposed 8 Weeks Sales Forecast……………………………………………………………………...22 Sales Forecast Rationale……………………………………………………………………………..22 Proposed Planned Deliveries & 4 Weeks Cover…………………………………………………23 Size Allocation…………………………………………………………………………………………………23 Colour Allocation………………………………………………………………………………………23 Weekly Sales Stock Intake………………………………………………………………………………...25Overall Conclusions………………………………………………………………………………………………

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EXECUTIVE SUMMARY

This report was completed to perform thorough analysis on Debenhams brand, Principles by Ben di Lisi.

The purpose of this report was to analyse and interpret the Principles by Ben Di Lisi consumer and

identify any weaknesses/gaps in the current range. This was achieved by conducting secondary research

as well as primary research. Primary research included in store questionnaires, interviews with the

Debenhams staff, an accompanied shop and a mystery shop of competing retailers. Research findings

were assessed regarding the company’s price position and market position, major competitors and target

consumer. After collecting these findings, a consumer profile with a supporting pen portrait was

constructed. Thorough research of the brand allowed an efficient interpretation of weaknesses for the

current season of Spring/Summer 2014 to be accomplished. The trend forecasting completed to support

the results extracted are listed in this report including key shapes, colours and themed campaigns, which

were illustrated on mood boards. A conclusive product line was drawn together based off the gaps

discovered in the current range.

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DebenhamsDebenhams is an international leading department store, specialising in sales in clothing, beauty

products, and home furnishing. Trading out of 240 stores in over 28 countries (Debenhams UK | About

Debenhams), gross transaction value for the first half up to 26 weeks to 01 March 2014 was reported at a

6.8% increase internationally and like-for-like sales turnover up 2.1% (Debenhams UK | RNS

Announcements). Debenhams is a leader in premium beauty products and has the 11th largest UK online

presence based on traffic volume (Debenhams UK | About Debenhams). The retailer sells a diverse

range of individual brands such as Ted Baker, Betty Jackson, Jasper Conran, and Principles by Ben de

Lisi (Debenhams | About Debenhams).

Principles by Ben de LisiOriginal Arcadia Group, Principles, was relaunched in Debenhams in February 2010 and endorsed by

designer, Ben de Lisi (Shields 2010). The brand offers a range of casual wear and business wear as well

as an exceptional variety of occasion dresses. Principles by Ben de Lisi has a well-established size range

of 6-20, reaching out to its more petite consumers.

BriefDue to the fast pace of the industry, it is nearly impossible for fashion retailers to recognise all key trends

entering into the market. Consumers are becoming more commercially aware. This factor contributes to

the complexity of fashion business, making demand for fashion more frequent. The objective of this report

is to thoroughly analyse the current seasonal range of Debenhams brand, Principles by Ben de Lisi, in

order to properly assess any gaps and/or weaknesses. From this information, recommendations for the

current range being assessed will be suggested in accordance with the brand’s competitiveness and its

proper target consumer.

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Research Methodology:The purpose of this research is to explore the current business structure for Debenhams brand, Principles

by Ben de Lisi. In order for an accurate analysis to be interpreted, extensive exploration was completed.

The structure of businesses amongst the high street were taken into account as well as placement of

competition against Debenhams. Secondary research was conducted by Group 4 and included social

media, an online database, and a Drapers interview with Ben de Lisi. Results gathered from these means

of research are as follows:

Table 1 – Secondary Research

Primary research was collectively sought by students of the graduate course to further understand the

current successes of the company and any discovery of weaknesses that can be improved:

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Table 2 – Primary Research *Above table lists each Research Method conducted (with respective research groups) along with the date, sample size & location conducted. The remaining list is on the following page:

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Table 2.1 – Primary Research Continued

The limitations of this research are recognised for the sample size of each method is relatively small, time

frame was short, and participation amongst consumers was scarce. Due to these limitations, the literature

of this report could demonstrate a sense of consistency and subjectivity. However, the primary research

rendered from these methods allows a solid understanding of how the brand is perceived by a range of

individuals and how this information can be beneficial to the ongoing business improvements for the

company.

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Research Findings and Analysis:Research findings summarise the key attributes surrounding the business of Principles by Ben de Lisi

including market positioning, brand positioning, the company’s competitors, and its target market.

Market Position: Mass Market (Doyle)

Figure 1 – Market Position

Figure 1 illustrates the market positioning of Debenhams compared to its competitors located on the

High Street (from Bond Street to Oxford Circus) and Regent Street. Market positioning for Debenhams

is within the Mass Market due to its brand reputation of elegance, quality and cost efficiency.

Debenhams’ main competitors in regards to its consumer are Marks & Spencer, Next and Wallis.

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Brand Positioning for Debenhams: Principles by Ben de Lisi

Figure 2 – Brand Positioning Matrix

Market positioning was based off of the price-positioning matrix. The price positioning is displayed in

Figure 2. Fashionability and price were taken into account when analysing. Debenhams’ positioning is

based on its fairly priced merchandise and standard fashion consciousness. Compared to other

brands, Principles’ pricing is relatively higher and its fashion isn’t considerably on trend.

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Comparative Price Matrix between Principles and other competitors

Table 3 – Comparative Price Matrix

Figure 2.1 was extracted from the Mystery shop. Market entry and exit are shown for each product

category. Wallis has the lowest price range compared to competition with Principles coming second.

Although Principles’ price range falls lower than competitors, Next and M&S, the market entry for its

product categories is unusually high.

Principles’ by Ben de Lisi Target ConsumerResearch findings summarise the consumer to be between ages 35-45. A conservative, independent

woman from England; classified under Acorn status Group L, Type 37*. She shops for durability and

reservation. From our research methodology findings, the following pen portrait was created to

accompany the consumer profile.

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Consumer Profile + Pen Portrait

*Brief of Acorn Status is found in Appendix

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Key Trends for Spring/Summer 2014

Key trends were analysed through extensive trend forecasting such as WGSN reports, shop

windows, fashion subscriptions and street fashion. The key trends analysed for the Spring

Summer 2014 include themes, colours, and shapes. The following key trends are summarised

in the next few pages:

Key Themed Campaigns:

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Table 4 – Description of Themes

Key Colours

Table 4.1 – Main Colours

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Key Shapes

Table 4.2 – Description of Key Shapes

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Current review of SS14 range/category mixFrom an in-store observation, it was identified the current range consists of three

separate collections. Primary colours used were pastel coloured palettes, mint blue and soft

pink as well as navy blue; black & cobalt blue; and orange & black. Colour range of pastels

and navy were incorporated into a pattern with an Aztec influence. Key shapes consisted of

tailored trousers, wide legged trousers, pencil skirts, shift dress, maxi dress, box shaped

blouses and a modernized trench. Some key colours were absent in the current range such as

strong accents of red, green and yellow. The graph below illustrates the category mix for the

current range:

5%

12%

13%

16%

12%

25%

4%

7%

6%

Product Category Mix

OuterwearKnitwearJersey TopsWoven TopsDressesCasual TrousersTailored JacketsTailored TrousersTailored Skirts

Figure 3 – Product Category Mix

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S|W|O|T: Principles by Ben di Lisi

Table 5 – SWOT Analysis

Table 5.1 – Definition of Gaps

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Conclusions of research presented so farThere is a sense of detachment between the brand and its consumer for they aren’t aware of

the brand’s perception. The SWOT analysis introduces the brand’s successes by taking into

account their strong bottom: top ratio, wide product range, and Ben de Lisi endorsement.

However, their lack of brand recognition and misconstrued brand image can present threats to

their business including decrease in productivity and reduction in consumers. Opportunities

were recognized and threats can be overcome; the opportunity of enhancing their variety and

fashionability by becoming more commercially aware. Also, offer differentiation is a way for

them to fight the risk in reduction of turnover in this highly competitive market.

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Recommendations and analysis

Spring Summer Proposed Range Plan

The proposed range for SS14 consists of pieces relative to key shapes of the current season.

The Art Pop themed line incorporates the use of bold accents, Technicolor printing, and colour

blocking. Keeping the conservatism of the target consumer in mind, proportions and lengths of

the garments were considered. Sport Luxe is also incorporated into the given range.

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Top Down Range Plan

The table above shows the merchandising planning for allocation to Debenhams’ 161 stores including

store grades 1-3 and online shop. Total sales value by store was calculated as well as number of lines.

Allocation was strategically assessed for each grade in order for the lines to be distributed accordingly.

Bottom Up Range Plan

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Bottom Up Range Plan continued

The following tables show the merchandise planning for each item in the proposed range with regards

to Open to Buy. Rate of Sale was determined by risk assessment (the closer to 1, the lower the risk)

as well as store allocation. From this calculation and characteristics of each style (size and colour), the

total quantity planned to purchase was calculated. The margin percentage was also strategically

planned for. The less risky styles were placed slightly below target margin while riskier items were

placed slightly higher; leaving room for possible error. Selling prices were strategically solved taking

into account the current price range as well as gaps. Cost was calculated based on Selling Price and

Margin. Proper analysis allowed a margin of 71% to be reached with an Open to Buy amounting to

£1,449,872.

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Buy Plan for Proposed SS14 Range

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Proposed Product Category Mix

The category mix was designed to fit into the existing category mix as well as fill any minor

gaps. A quarter of the proposed mix consists of dresses, another quarter consists of skirts and

tailored jackets, and the remaining range is allocated evenly by 8% of the range.

25%

8%

8%

8%8%

17%

8%

17%

Proposed Category Mix

DressesKnitwearJersey TopsWoven TopsCasual trousersTailored JacketsTailored TrousersSkirts

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Proposed 8 weeks sales forecast/Rationale*

The proposed sales forecast is based off of the rationale presented above. Sales Intake over

four weeks cover is presented on the following page:

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Proposed Planned Deliveries/4 Weeks Cover

Size/Colour Allocation

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Size Allocation for the proposed range was based on logical reasoning, allocating larger

percentages to average UK size for women, 16 (You Gov 2013). Small sizes within the range were

allocated less than 15% where the larger sizes were allocated 10%. Colour allocation was also

conducted for the V-neck tops with a 60% ratio for white and a 40% ratio for yellow.

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WSSI including 2 weeks markdowns

Weekly Sales Stock Intake displays 75% of planned Open to Buy allocated over the first eight

weeks of the season with the remaining 25% to be marked down in weeks 9&10. Planned

Stock Level calculated from the Sales Forecast is presented within the first five weeks. For

week 9, a 50% markdown was factored into the equation and planned sales amounted to 55%

of the new opening stock level (markdown amount). An additional 20% was marked down from

the Opening Stock for week 10 and planned sales amounted to 45%. Closing stock of week 10

amounted to 2.5% of Open to Buy.

Overall Conclusions

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Based on the analysis of the research methodology and its findings, a

reasonable resolution was assessed. Principles by Ben de Lisi has the potential to

build their brand image by enhancing fashion consciousness in their current product

range. Proper evaluation of the weaknesses in the current range allowed a beneficial

range recommendation, contributing to the improvements of the brand’s captivation

and rejuvenation of the target consumer’s buying behaviour. The target consumer

described needs to be acknowledged and the commerciality of this proposal will

create a more stimulating experience.

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