HANDBAGS
KRYSTAL DURAN BLAKELEY GRAHAM PHILINA LOR KRISTI TAYLOR HALEY TURPIN
OBJECTIVETARGET CUSTOMERCOMPETITOR ANALYSISFINANCIALSBIG IDEASRECOMMENDATIONSQ&A
AGENDA
OBJECTIVEBuild a 3 year plan for Handbags, recapturing lost sales to grow the
handbag business to $32M by 2019. Include product mix, pricing, store
presentation, and marketing. Include both brick and mortar and online business.
CUSTOMER PROFILES
CUSTOMER PROFILE #1• Age: 55+• Income: Moderate to High• Personality Type: Treasure
Hunter• Likes: Quality, Structure,
Compartments
CUSTOMER PROFILE #2• Age: 35-54• Income: Moderate
to High• Personality Type:
Super Mom• Likes: Utility and
Style
CUSTOMER PROFILE #3• Age: 17-34 • Income: Low to Moderate• Personality Type:
Adventurous• Likes: Latest Trends
INTERNAL ANALYSIS
SWOT ANALYSISStrengths
Serve smaller marketsVersatility
Weaknesses
Inability to advertise all brandsLimited square footageNew customer retention
Opportunities
Introduce new or updated brandsGrow existing customer baseDrop ship
Threats Off-price retailersLarger department stores
SURVEY RESULTS
63% have shopp
ed Stage
65% ages 18-29
66% prefer crossbody
Color
Trend
Brand
Price
0 10 20 30 40 50 10% 20% 30% 40% 50%
PRODUCT ASSORTMENT
Tote35%
Crossbody28%
Satchel13%
Hobo9%
Other15%
Tote28%
Crossbody35%
Satchel15%
Hobo10%
Other12%
Before
After
COMPETITOR ANALYSIS
COMPETITOR: MACY’S
• Key Callouts: Tailored Shop by Brand, Glass Display Cases, Mirrors, Cross Merchandising
• Price Range: $40 - $1000+
COMPETITOR: TJ MAXX• Key Callouts: Push
to Shop Online, Assistance Buttons, Color Stories
• Price Range: $15 - $1000+
COMPETITOR: H&M• Key Callouts: Confusing Signage, Cross Merchandising
• Price Range: $10 - $150
STAGE STORES• Key Callouts:
Coupons, Security Devices, No Mirrors
• Private Label: Signature Studio, Valerie Stevens
• Top Brands: Bueno, London Fog, Nine West, Jessica Simpson, Yes!
• Price Range: $15 - $390
E-COMMERCE: MACY’S• Handbag Top Level
Category
• Easy to Understand
Navigation
• Extensive Filtering
E-COMMERCE: TJ MAXX
• Handbag Top Level
Category
• Difficult to Navigate
• Limited Filter
Options
E-COMMERCE: H&M• No Top Level
Category for
Handbags
• Handbags not
Primary Focus
E-COMMERCE:
STAGE STORES• Handbag Top Level
Category
• Easy to Understand
Navigation
• Extensive Filter
Options
FINANCIALS
FINANCIAL HISTORY
* Refer to Page 3 in Handout
Sales LY Sales $ % Chg LY ECOM SLS $ PEN TO TTL
2015
2016
SALES HISTORY
27,000,000$ 29,612,564$ -8.8% 808,000$ 3.0%
29,612,564$ 31,942,786$ -7.3% 883,446$ 3.0%
3 YEAR PLAN
BIG IDEAS• NEW PRIVATE LABEL• CREATE AN OMNICHANNEL
EXPERIENCE• IN-STORE EVENTS• LOCALIZATION
NEW PRIVATE LABEL 1
“Millennials are more into newness, than established brands. They prefer to support emerging and exclusive brands rather than designer labels.” – Who What Wear, 2016
PROPOSITION• Target niche market• Offer trend to existing customers• Model after Fast Fashion• Exclusivity • Higher margin• Cost control• Lower price point
Always edgy, always on trend, enhance your wardrobe with our carefully curated pieces for every woman in every stage of her life.
ELEVATE DOOR ROLLOUTDoor Count Sales
PlanFall 2017
300 $450,000
Spring 2018
500 $710,000
Fall 2018
All Doors
$1,008,000* Refer to Page 4 in
Handout
ELEVATE COST SHEET• Cost: $13.00 - $22.00• Retail: $29.98 - $49.98• Inventory Investment
Cost: $335,000• E-commerce: 6% of Total
Units* Refer to Page 5 in Handout
PRIVATE LABEL FUNDING
• Betsey Johnson$60,000
• Nicole Miller$260,500
• Madden Girl$312,000
• Relic$370,500
• TOTAL$1,003,000
STORE PRESENTATION
CREATE AN OMNICHANNEL EXPERIENCE
2
HEAT MAP
• Attracted by
Banner
• Frequently
Used:
• TLC for Handbags
• Recommended products
UNBOXING• Popular new way to create content marketing• Gets viewers interested in box contents• Surprise element• Allows for product description• Influences viewers to purchase
Maria Alfaro - 43,000 FollowersInstagram: @Maria_AlfaroWebsite: styletoblogabout.com
POTENTIAL BLOGGERSApril AthenaInstagram: @Aprilathena7YouTube: www.youtube.com/watch?v=ed6s25vMZkUJade Kendle - 230,000 Followers Instagram: @LipstickncurlsYouTube: youtu.be/8Htg_K6wBdM
Kate - 122,000 FollowersInstagram: @LonestarsouthernWebsite: www.lonestarsouthern.com
- 160,000 Followers
UNBOXING COST
* Refer to Page 6 in Handout
ENCOURAGE CUSTOMER INTERACTION
INSTAGRAM SHOPPING
CURRENT
NEW
IN-STORE EVENTS 3
1. ELEVATE LAUNCH EVENT• Top 30 handbag
doors• #Elevate
#Stage props• Get Millennials
involved• Back to School
* Refer to Page 7 in Handout
BUZZ EMAIL
LAUNCH EMAIL
SOCIAL MEDIA MARKETING
2. HANDBAG TRADE-IN EVENT• Customers
donate gently used handbags
• Receive 25% discount
• Donated bags benefit local charities
LOCALIZATION 4
GAMEDAY BAGS
• Texans: 52 stores – comprises 10% of total handbag sales
• Cowboys: 42 stores – comprises 7% of total handbag sales
• Saints: 45 stores – comprises 7% of total handbag sales
• Meet NFL requirements (clear or 4” x 7”)
• Focus on Texans, Cowboys, and Saints
• Colors: white, black, tan, red, navy and clear
CROSS MERCHANDISING: TEXANS
CROSS MERCHANDISING: COWBOYS
CROSS MERCHANDISING: SAINTS
RECOMMENDATIONS
VISUAL RECOMMENDATION #1• Cross
merchandise throughout store
• Fully style and accessorize all mannequins
• Display “the whole look” by brand
VISUAL RECOMMENDATION #2• Add “Stage
Exclusive” Signage
VISUAL RECOMMENDATION #3• Add full-length
mirrors
• The Skinny Mirror
• Increases motivation
to purchase
VISUAL RECOMMENDATION #4• Individual Security
Tags• Less clutter on
handbag tables• Easier for customers
to shop
VISUAL RECOMMENDATION #5• Add artificial turf to
football tables• Sold by the foot – Home
Depot
VISUAL COST SHEET
* Refer to Page 7 in Handout
• Capture Millennials with new brand
• Focus on our online presence
• Create buzz with In-Store Events
• Cross Merchandise• Focus on Localization
RECAP
QUESTIONS
THANK YOU!