The Organic Collection by J.CREW

Executive Summary

•! Established in 1983

•! Multi-channel national brand

•! Offers sophisticated and affordable clothing

Situation Analysis

•! Environmentally aware consumer

•! Popularity of organic clothing

•! Increase in demand

•! Consumers are looking for alternatives

•! The Organic Collection by J.CREW

Market Trends: Organic Apparel

•! Increase in demand for green apparel

•! Consumers are more convinced that green

can be fashionable

Market Growth: Organic Apparel

Geographic Segmentation

Demographics

•! Women

•! Age 18-30

•! College educated, young professionals

•! “Preppy” upper-middle class

Behavioral Factors

Target Market

•! Environmentally conscious

•! Educated and young professionals

Our Unique Benefits

•!Product assortment

•!Accessibility

•!Design capabilities with organic and sustainable product

•!Competitive pricing

SWOT: Strengths and Weaknesses

•! Strengths

•! Evangelist customers

•! Customer-centric operations

•! High quality products

•! Distinctive, inviting, and sophisticated retail environment

•! Consistency of the line with our current product offering

•! Weaknesses

•! Appealing only to a small niche market

•! Heightened cost of organic fabrics

•! Slightly higher price points

•! Limitations in colors, fabrics, and designs

SWOT: Opportunities and Threats

•! Opportunities

•! Increased interest and demand for organic clothing

•! Concern for the environment

•! High demand of J. Crew’s classic garments

•! Threats

•! Increase in cost of raw materials

•! Economic and financial uncertainty

•! Third party manufacturers and distributors

Overcoming Threats and Weaknesses

•! Increase in manufacturers trying to meet demand

•! Increase in number of suppliers offering organic fibers,

yarns, and fabrics

•! Decrease in cost of organic raw materials

Chart: Growth in manufacturer demand for organic cotton:

Competitors

Keys to Success

•! Bold and distinguished logo

•! Our uncompromising commitment to

quality and to customer service

•! Wide assortment

•! Successful niche marketing

Marketing Strategy

•! Location

•! Emotional appeal: focus societal pressure to

go “green”

•! Promotion to increase awareness of our

green line among existing shoppers, to and

capture new (enviroconscious) customers

Marketing Objectives

•! Encourage and

empower

consumers

•! “Pull” campaign

•! Increase overall

sales by 1.5% per

quarter

Business and Financial Objectives

•! Achieve first-year sales revenues of $13

MM;

•! Keep first-year losses to less than $5 MM;

•! Break even early in the second year; and

•! Reach profitability by the end of year two.

Positioning

•! Goal: Incorporate an environmentally and socially

conscious message to our current positioning

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Marketing Mix: Product

•! Product attributes

•! Variety,

•! Color, and

•! Sophistication

•! Stylish while making

positive changes to the

environment

Merchandise Mix-Styles

•! Tops, camis, shirts

•! Hoodies, jackets

•! Knits

•! Dresses

•! Skirts

•! Chinos, short

chinos

22

Organic Colors Dyes

23

Sourcing Organic Fibers

24

Organic Fabrics

•! Cotton

•! Linen

•! Bamboo

•! Hemp

Price!

•! Price-points similar to J. Crew “Classics”

•! Organic products will be styled and paired with J. Crew’s

higher-end items

•! Goal: Emphasize quality and similarity to these non-

organic staples

Place

•! New York, NY

•! Los Angeles, CA

•! www.jcrew.com

Promotion

•! Print Advertising

•! E-marketing

•! Public Relations

•! Sale promotions

•! Direct-mail

Action Programs: January-July ‘09

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Limited Edition Catalogue

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Desk-side meetings

Homepage teasers

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Media

Outreach

Mass e-mail

distribution

26th Anniversary/Launch event!

Short & Long Term Projections

Short & Long Term Projections

Crew Cuts Menswear!

EXPANSION!

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