+ by katie yaeger marketing 4250h nov. 11, 2014 most admired retailer
Post on 17-Dec-2015
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About LOFT
Established in 1996 by ANN Inc. as Ann Taylor LOFT, an extension of the Ann Taylor brand. ANN Inc. brands offer “a feminine, polished approach to updated classic style.”
More value-conscious and casual than Ann Taylor.
Had 544 store locations in the U.S., Canada and Puerto Rico as of August 2014.
+Retail Strategy
Target market: 28- to 40-year-old fashion-forward, value-conscious female professionals.
Location: Enclosed malls, lifestyle centers
Assortment: A moderate amount of items in apparel; private labels
Pricing strategy: Upper moderate with sales
+Retail Strategy
Communication mix: TV/magazine, online, mobile
Store design/display: Neutral walls, free-form layout, displays, designated petite and sale areas
Customer service: Modest
Long-term sustainable competitive advantage: Quality, casual and fashionable professional wear at an affordable price
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Private, house brandsMerchandise consists only of private brands.
Most merchandise is the LOFT brand.
• Lower-priced and more casual than the Ann Taylor brand.
• Had larger growth (8%) than Ann Taylor (1%) as of Q4 2013.
Launched activewear line Lou & Grey in 2014, sold in LOFT stores, online and at a few freestanding stores.
+Supply Chain Advantages
“The quality of our products begins with the treatment of the people who manufacture them.”
Provides public with outline of policies and programs concerning workers’ rights and environmental protection.
Emphasizes engaging with suppliers and supporting women throughout supply chain process (factories to suppliers to stores).
Has one distribution center (in Louisville, Kentucky); is a zero-waste facility.
+ Pricing Strategy
Price range: Upper-moderate
Implements a high/low pricing strategy
• Almost always sale emails or in-store/online specials.
+Multichannel Marketing
LOFT uses multichannel marketing fairly effectively.
Brick-and-mortar: Combined inventory across stores and digital channel, sales
Catalog: Shipped to homes
Online: Easy-to-navigate website, emails with sales and trends
Mobile: Love LOFT loyalty program, ANN INC. BFF, mobile-optimized website
+ Retail Locations and Site Selection
Urban and suburban areas where younger, upper-middle-class professionals live
Enclosed malls and lifestyle centers
+Store Layout
Free-form layout
Clothing segmented into areas: New arrivals Casual wear Business casual wear Petites (sign) Lou & Grey Sale (sign)
+Store Design
Promotional and point-of-sale signage
Window and freestanding displays
Entrance with “decompression zone”
Utilized wall space
Clean, well-lit, spacious, attended dressing rooms
Cash wraps with jewelry and other accessories
+Secret Shop
Customer service: 3 Cashier sounded very bored; saleswoman asked if I was
“still” finding everything OK; saleswoman was helpful in dressing room.
Ease of finding items: 4 Sale section not well organized.
Advertisement of price: 4 Sale specials well marked; dress had further, unmarked
discount.
Atmosphere: 5 Good lighting, relaxing, not cluttered
+Financial Results
ANN Inc. (NYSE: ANN) Return on assets: 10.17 Stock price (as of Nov. 10, 2014): $36.05
The Gap, Inc. (NYSE: GPS) Return on assets: 16.71 Stock price (as of Nov. 10, 2014): $38.60
J. Crew Group, Inc. is a private company.
ANN Inc. has a lower return on assets and stock price than The Gap, Inc.
+SWOT Analysis
Strengths
Company brand recognition, association with quality
Customer loyalty
On top of trends
Multichannel retailing
Opportunities
International expansion
Beauty products
Personal stylist
Weaknesses
Customer service
Lack of formalwear
Threats
Imbalanced product mix (2013)
Poor PR
Reduced mall traffic
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Marketing TacticProblem: LOFT has gotten bad PR in recent months for manipulating photos to make models look skinnier.
Solution: Eliminate digital manipulation and feature diverse women of all body types.
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