ANN TAYLORIntro to Marketing- Brand Profile

Fall, 2013 Victoria Shibly

Brand Profile

Brand Choice: Ann TaylorProduct Category: Retail-Women’s Clothing

Brand Attributes

Brand Name: Ann INC. “Ann Taylor”

Brand Quality:

Ann Taylor has been known for their high quality work wear and suiting. Ann Taylor offers a variety of “only the finest fabrics” for their clothing and accessories (Anntaylor.com). All of which they have listed online with specific description of why and how they use them.

“Our production management and quality assurance departments establish the technical specifications for all merchandise and inspect our merchandise for quality, including periodic in-line inspections while goods are in production, to identify potential problems prior to shipment. Upon receipt, merchandise is inspected on a test basis for uniformity of size and color, as well as for conformity with specifications and overall quality of manufacturing.” – Ann Inc. 2012 Annual Report

Physical Characteristics of the Brand:

Ann Taylor maintains a well-structured store beginning with the store’s windows, which have clear and powerful fashion messages that engage and draw in customers. All areas of the store are neat, clean and all merchandise is purposefully organized in size order. The runway of the store supports the window ‘s fashion messaging, and mannequins are styled head-to-toe with the most up-to-date trends in Ann Taylor clothing and accessories. All Ann Taylor sales associates have a dress code to up-hold, which represents the Ann Taylor brand in a positive light and all clothing worn should reflect current Ann Taylor trends.

Brand Strategy:

“Our strategy has included: offering her more fashion in more stores, adding more selection at “approachable” price points, becoming more surgical in our promotional activity, and providing her with a more engaging shopping experience.” –Ann Inc., 2012 Annual Report

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Ann Taylor has recently tried attracting an overall younger consumer base. To do so Ann Inc. has revamped their e-commerce site to appeal to a younger clientele. The “Style for Students” is a new section in the Ann Taylor website which offers students exclusive offers, style advice, career tips and a 20 percent discount on all full-price purchases with a valid student ID. Also, in 2012, Ann Taylor saw a decline in their sales over a period of time so in order to offset the losses, “CEO Kay Krill told investors that the company plans to make four major changes. “More affordable initial prices will be offered, assortments will feature more colors, greater depth in key fashion lines will be available and customer service will be stepped up" (Wall Street Journal).

Brand Image:

Ann Taylor has been serving American women for decades, and helping them go to work, to important events in their lives, and dress for the fun times. Ann Taylor doesn’t want to be like every other retailer. They truly want to create an unfillable hole in her life, meaning being their every step of the way and being her one stop shop for style.

Brand Reputation:

When Ann Taylor first opened it was known for it’s best-selling shirtdress called the “Ann Taylor”. However, as the times changed and American women’s lives evolved, so did Ann Taylor’s stores. The company grew and is now known to offer dresses, suits, separates, shoes and accessories. Ann Taylor prides itself in being the “go-to destination for her wear-to-work, offering chic, confident style for nearly 60 years” (ANN INC. 2012 Annual Report).

Brand Price:

“Ann Taylor competes in the affordable luxury price category” (ANN INC. 2012 Annual Report).

General price points/ranges are: Suit pieces: $200 Separates: $50-$150 Dresses: $100-$230 Jackets: $150-$300 Shoes: $100 (flats)- $300 (Tall boots) Accessories: $30-$150

Brand’s Core Values:

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1. “Staying connected to women.” Ann Taylor puts their clients first when making decisions, listen and respond to changing needs, and create experiences that inspire.

2. “Embracing fashion first.” By providing great quality and value, Ann Inc. wants to reach every woman who cares about how she looks.

3. “Putting our best selves forward everyday.” This means always having good intent, being optimistic and accountable, and bring new ideas while being open for change.

4. “Honoring our full lives.” Ann Taylor encourages a healthy balance between work and everyday life. (Ann Taylor Employee Training Book)

Brand Logo and Tag Line:

Ann Taylor’s brand logo is simply Ann Taylor in all caps. It’s clean and classic in order to best represent the Ann Taylor brand. Ann Taylor’s logo doesn’t come with a tag line.

Brand Design and Packaging:

Ann Taylor is classic when it comes to their brand design and style. Merchandise incorporates the latest trending fashions while still maintaining a chic and traditional “Ann” look. All merchandise is folded properly, wrapped in tissue paper and sealed with an Ann Taylor sticker before being placed in a quality paper bag and given to the client.

Brand Customer Satisfaction/Warranties:

Ann Taylor states that “No matter what we are doing, our client is the center of everything!” –Employee handbook.

Ann Taylor’s Return Policy: “Unwashed, unworn merchandise may be returned or exchanged at any Ann Taylor location. We will credit you for returns, accompanied by an original receipt, received within 60 days of the purchase for the price paid either in the original form of payment or as a merchandise exchange. Returns accompanied by an original receipt, made more than 60 days after the purchase, will be credited for the item's current selling price either in the form of a merchandise credit* or as a merchandise exchange. One price

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adjustment on full-priced merchandise may be made within 7 days from the original date of purchase. Returns without an original receipt will be credited for the item's current selling price on the date of the return, in the form of a merchandise credit. Merchandise without an original receipt, with a selling price on the date of the return that is deemed Final Sale, may not be returned or exchanged. Final sale merchandise may not be returned or exchanged” – Anntaylor.com

Brand Equity:

Ann Taylor is a brand built upon the idea of servicing women and their full lives. Beyond the “high-quality collection of wear-now pieces”, Ann Taylor is a company that supports all of women’s successes (Ann Taylor Employee Handbook). Customers can rely on the quality of Ann Taylor products, as Ann Taylor has been a leading specialty retailer of women’s apparel, shoes, and accessories for 60 years now. Ann Taylor has been known to support those milestones in a women’s life from “the first interview, to the first day of work, to the first big meeting and everyday in between” (Ann Taylor Employee Handbook). Customers can gain a sense of community in Ann Taylor store as sales associates are actively engaged in helping, understanding and getting to know clients needs, wants and preferences.

Ann Taylors Unique Position: Affordable luxury Amazing quality and fit Emotional connection Fashion experts Stellar shopping experience

“All of the combined are the unique experience that is Ann Taylor. It’s why she loves us and what keeps her coming back.” –Ann Taylor Employee Handbook

Brand’s Primary Competitors:

Ann Taylor competes with certain departments locally, nationally and even internationally, with other stores, catalogs and e-commerce businesses that offer similar merchandise. Some of Ann Taylors Competitors are listed below:

• Banana Republic• Fifth & Pacific• Talbots• Chico's • Donna Karan• J. Crew• J. Jill Group

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• Benetton• Bernard Chaus• Caché• Lands' End• Macy's• New York & Company• Nordstrom• Ralph Lauren• St. John Knits

(Above information from “Hoovers”)

Consumer Buying Behavior

Primary Target Audience:

Ann Taylor’s primary target audience is women approaching their 30’s and beyond who are affluent, fashion conscious career women. Ann Taylor caters to women who are animal-friendly as well. The company has taken a stand against real leather and fur when it comes to their clothing.

Consumer Buying Decisions:

Ann Taylor is a specialty retailer of women’s clothing where ultimately, affluent and career driven women are most likely to shop. Therefore, it is the female customers who ultimately make the buying decision. However, Ann Taylor’s stylists and sales associates are there to act as the consumer’s best girlfriend. Sales associates aren’t paid off commission and so there is no pressure to push items that aren’t going to work for the client. This works well because associates can freely offer their honest opinion and help find the client and outfit that truly fits her.

Product Packaging

Ann Taylor’s product packaging isn’t extremely unique in it’s design. All Items are wrapped in a layer of tissue and sealed with a sticker before being placed in a high quality paper bag and given to the client. Online services used to use the same format of tissue sealed with a stamp but has switch to plastic bag covers. Then the item is placed in a box, thoroughly taped, and shipped.

Pricing

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Suggested Retail Price:

“Merchandise is typically sold at its original marked price for several weeks, with the length of time varying by individual style or color choice and dependent on client acceptance.”-Ann Inc. 2012 Annual Report

“At Ann Taylor, we have started focusing on opening at good price points [under $100] rather than better and best. That strategy is working very well. I think in uncertain economic times, value becomes more important.” –CEO Kay Krill, Bloomberg Businessweek

Product Value:

With Ann Taylor’s merchandise, customers understand they are paying for quality clothing. Merchandise made with 100% silk, cashmere of wool will list that on the tag. Also, customers are paying for the right fit for them. Ann Taylor clothing comes in regular misses, petites and talls, so whatever body type she may have, there’s a fit for her. With the brand Ann Taylor, customers can expect their clothing to last. If in fact it doesn’t, Ann Taylor would be sure to help customers find a solution that best fits their situation.

Pricing Set in Relationship to the Marketplace:

Ann Taylor sets their price at the marketplace competition pricing.

Pricing Strategy: Competitive Pricing strategy

Product Manufacturing

“Ann Taylor does not own or operate or operate any manufacturing facilities and depends on independent third parties to manufacture its merchandise” (MarketLine- ANN INC. SWOT)

In August 2013, Ann Taylor partnered with Camuto Group, founded by Vince Camuto, to help oversee and source Ann Taylor’s shoe program. The partnership increase Ann’s footwear assortments by twice as much. Though Camuto group manages Ann Taylor’s footwear collection; all shoes are still branded as Ann Taylor. (Business Source Complete)

“Substantially all of our merchandise is developed by our in-house product design and development teams, who design merchandise exclusively for us. Our merchandising groups determine inventory needs for the upcoming season, edit the assortments developed by the

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design teams, plan merchandise flows and arrange for the production of merchandise by independent manufacturers, primarily through our in-house sourcing group.” – Ann Inc. 2012 Annual Report

Product Distribution

Ann Taylor uses only Direct Distribution to get their product into the consumer’s hands. Ann Taylor clothing is sold through only the following distribution channels:

- Ann Taylor Stores (U.S.)- Ann Taylor Canada- Ann Taylor Factory- Anntaylor.com

Product Promotion

Advertising:

Ann Taylor’s primary selling message to consumers is ““At Ann Inc., We Get Women.” When it comes to advertising, Ann Taylor always puts forth a message that will better help them connect to women.

Ann Taylor relies highly on gaining e-mail contact and forming client profiles in sales associates client books. In this way, Ann Taylor stores can connect with specific women in their area and learn the best way to contact them, whether it be through e-mail, direct mail, or phone.

Ann Taylor also uses social media as a tool to engage with audience. Ann Taylor has a Facebook, LinkedIn, Instagram and Twitter in which they can promote sales, events and special promotions.

Sales Promotion:

Ann Taylor runs point-of-sale promotions, which can apply to both full-price and markdown merchandise, temporarily reducing the merchandise’s selling price. Ann Taylor commonly uses reduced price promotions and very rarely uses an added value promotion. However, there is sometimes a difference between the company’s in-store and online promotions. This is confusing to clients and makes it difficult because then the company has to then compete with itself to get the sales of the customers.

Public Relations:

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On Ann Taylor’s corporate website, Anninc.com, the company openly communicates with potential investors in the company about stock information, financial information, corporate governance and resources. Press releases and annual reports are easily found and understood.

Charity: In 2007, Kay Krill, president and CEO, launched Ann Inc.’s charitable platform, ANN Cares. Ann Cares works with both clients and associates to raise money for programs that aid in women’s and children’s health and well-being.

- Breast Cancer Research Foundation: During Breast Cancer Awareness month Ann Taylor sells ANN Cares cards in which 90% of the proceeds go directly to the BCRF and customers get discounts on their merchandise purchased.

- Race For The Cure: Ann Taylor associates have participated locally in the Susan G. Komen Race for the Cure for over 16 years now.

- ANNpower Initiative: ANNpower Fellows are selective nationally from high school juniors and seniors through a competitive application process. These students are sent to Washington D.C for a 3-day leadership training program free of charge. Fellows are then asked to implement their ideas in their communities and become eligible for grant money.

- St. Jude Children’s Hospital: Currently happening at Ann Taylor stores, Ann Taylor works to raise money for St. Jude during the holiday season by participating in the St. Jude Thanks and Giving campaign. Special St. Jude jewelry are sold and half of the proceed gets donated to St. Jude.

Other Marketing Disciplines:

Celebrity Endorsement: For the 2004 holiday season Ann Taylor came out with a slogan for their 50th anniversary campaign that read, “I AM ANN TAYLOR.” It featured ads with past fashion icons as well as newer faces in the industry. Unfortunately, the campaign didn’t bring in the attention Kay Krill was hoping for and Ann Taylor had a net loss of $12 million.

However, Ann Taylor continues incorporate power, positive women into their ads campaigns. Celebrity actresses Milla Jovovich, Heidi Klum, Naomi Watts, and Katie Holmes, and other younger women previously unassociated with Ann Taylor's more mature heritage helped aid the transition to a more modern and stylish Ann. “Seeing the likes of Holmes or Klum through the company's advertising fed

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the renewal trend Ann Taylor tried to implement.” – Gale Virtual Reference Library

The award-winning actress Kate Hudson signed on to be Ann Taylor’s ambassador in Fall 2012 and has continued to work with Ann Taylor to this current day. In fact, Kate Hudson has been more than just the face of the brand and has played a larger role in the company, being a design influence and charitable ambassador for the 2013 Spring and Summer collections. “We are thrilled to continue our collaboration with Kate, someone who leads a full life and who captures the spirit of the Ann Taylor woman. She truly represents our continued commitment to celebrating women of substance and style," said Brian Lynch, Brand President of the Ann Taylor division of ANN INC

Brand Profile Summary: a SWOT analysis

Strengths:

- Ann Taylor is phenomenal when it comes to giving back to their community. By showing support for women and their interests, Ann Taylor receives great praise and support back from their female consumer base.

- Ann Taylor has found an approach that works in trying to reach a younger target market through their approachable price point, engaging window displays and trendier, fashion forward takes on the classic Ann Taylor look.

Weaknesses

- Ann Taylor struggles with unifying their promotions between their multiple distribution channels. Ann Taylor stores should have the same point-of-sale promotions as the e-commerce Anntaylor.com. When customers notice this difference, the price-value relationship of the merchandise change. Also, Ann Taylor stores are then left to compete with Anntaylor.com to get the better sale.

- Ann Taylor’s change in focus from suits to separates turn customers who have favored the signature Ann Taylor suits away. Older Ann Taylor customers, who enjoyed the classic looks, don’t appreciate the trendy “now” looks and assume the brand is cheapening its apparel.

Opportunities

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- With Ann Taylor’s e-commerce website, Ann Taylor can expand their reach to international customers. Ann Taylor is a notable brand internationally and has an international fan-base who make it their mission to shop in Ann Taylor stores while they visit America. E-commerce makes shopping convenient and accessible to more customers.

- The collaboration with Vince Camuto was a great move for Ann Taylor. Camuto is known for its fashion forward, high-quality shoes. This gives Ann Taylor the opportunity to truly make their store well rounded when it comes to all aspects of style and dress.

Threats

- Ann Taylor is in the business of women’s retail, which is highly competitive. Ann Taylor fits into the affordable luxury category, therefore competes with a wide range of other companies from the lower, more affordable work wear to the pricier luxury apparel. This type of competition leaves no room for errors on Ann Taylor’s part, because if women lose interest in the company they can easily find a new shopping destination.

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