Juicy Couture 6 Months Plan
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Transcript of Juicy Couture 6 Months Plan
P a g e | 1
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%
Class 2 Price Points $72 $82 $128 $148 Total% of Total 22% 40% 24% 14% 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%
Class 3 Price Points $82 $92 $128 $148 Total% of Total 34% 38% 20% 8% 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
Class 1 Price Points $48 $62 $88 $102 Total% of Total 20% 40% 35% 5% 100%
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%
Class 2 Price Points $72 $82 $128 $148 Total% of Total 22% 40% 24% 14% 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%
Class 3 Price Points $82 $92 $128 $148 Total% of Total 34% 38% 20% 8% 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