Back On Purchases Of Claiborne's Clothing Products example essay topic

Liz Claiborne's Mission The mission of Liz Claiborne is to design and manufacture comfortable clothing for the professional working woman at reasonable prices. It is our mission to extend our enterprise globally in order to achieve maximum competitiveness and cost effectiveness in this increasingly complex business environment. Furthermore, Claiborne will provide a new line of fashion for both men and children. Fragrances will be added; along with cosmetics and accessories. All of our products will accompany exceptional quality and price value for our customers.

Environmental Analysis Macro environmental: Some retail competitors who sell their clothing may carry a lower priced line of professional women's apparel. However, the quality isn t always what a retail customer expects. Years ago, before women entered the work force, there had never been a market for apparel specifically designed for the professional woman. Today unfortunately, many women have to work 2 jobs to make ends meet and oftentimes, they can not afford to spend an outrageous amount of cash to look good at work. As a result, many women are forced to bargain shop. Today's women usually look for sales and bargains on designer clothes, but sometimes, even the sales can be very expensive.

As retailers constantly search for new ways to sell their designer products at reasonable prices a struggle usually occurs between both the retailer and the customer. For instance, some retailers will purchase women's clothing from manufacturers that produce clothes with cheap fabric. This is not the desire of most customers. Also, some retailers may purchase clothes that are out of season or defective in some cases. causing them to ultimately lower the prices on designer items tha would otherwise be very expensive.

This can be a loss to most retailers, and a loss to the customer as well. Micro environmental: From the corporate end of the spectrum, Claiborne's best retail market customers can predictably end up in serious financial trouble. If this happens, then Claiborne is in trouble. For example, Bloomingdales may over spend in advertising and marketing; coupled with the fact that sales may be low for that particular quarter.

If this happens; in which case it often does, bloomingdale's will inevitably cut back on purchases of Claiborne's clothing products, and put their current merchandise on sale in an attempt to push their backlog out the door. Huge sales will facilitate a major financial loss although there will always be an opportunity for recovery. STRATEGY To find out what kinds of clothing professional woman want and look for competent employees who posses exceptional talents and expertise in the area of clothing design. They will get hired at entry level with full benefits and opportunity for growth; but they will be the best.

This strategy will save Claiborne money in designing costs. Countries such as Mexico will usually mass produce for a lower price than the American production industry. Claiborne will use this to our advantage. We will purchase the finest material to produce our garments because quality is very important. It would not be to Claiborne's advantage to conduct business with a vendor who sell their clothing material below market value just to save money in the area of supplies. Low cost material will probably mean that it would lack in the quality that customers look for when making a purchase.

Claiborne will not make this sacrifice. however, we will not spend alot of money to have our garments made. We will search for an economically efficient way to get our clothes made. Another strategy is to purchase quality material in bulk to receive a larger savings and stop requiring the retail industry to purchase 50,000 dollars worth of apparel. Once Claiborne lowers it's production cost, it could possibly offset the monies not being made through selling our finished goods to Macy's or Dillard's for 50,000 dollars.

Instead of requiring established retailers to make 50,000 dollars worth of purchases on our product, Claiborne can require that established retailers buy 30,000 dollars worth of our collection. This would appear to be more reasonable. Furthermore, Claiborne can sell it's products to J. C penny, Mervyn's, Kohl's and Bealls. This strategy will ensure guaranteed business on a monthly basis. Our products will definitely sell in the lower end retail establishments because retail customers usually look for quality. Quality clothing at affordable prices is what Claiborne will offer.

GOALS Claiborne's goal is to bolster our sales by 92 percent and lead the company into new areas of growth and expansion. Claiborne will partner with other like-minded professionals that have already established a regular business with low-end industries such as kohl's, bealls etc. Our goal is to remain the clothing line of choice for women. Men, girls and boys clothing will be a result of our expanding line of merchandise. Claibornes goal is to redefine how we do business by adjusting our supply chain to increase profitability and get closer to our customers. Claiborne's goal is to produce 200 million units per year while maintaining sales volume that exceed 4.5 billion dollars per year.

We are expecting to keep 8000 employees working in facilities located in different parts of the United States and abroad. Our goal is to continue to provide retail customers with the same quality that they ve come to know with Claiborne's merchandise. POLICY Claiborne will have an information infrastructure that is open and flexible. Claiborne's knowledge of the industry will ensure that customer demands are met with a 98% satisfactory rating.

If however, the remaining 2% of customers are not satisfied with his / her purchase for any reason, the merchandise may be returned (customer must have a reciept) to any one of Claibornes outlet centers. Claibornes outlets are scattered throughout all major cities in the United States. It is our policy to provide exceptional service and treat all customers with respect and understanding of their immediate needs. SWOT ANALYSES Strengths: We recognize that there is a market for a professional segment of women's clothing. Since 1976, women have been entering the work force and few companies were producing clothes for them. With the addition of men and children clothing; Claiborne will lead the competition in this industry.

Weaknesses: There are stipulations on marketing clothing in today's industry. In other words, anyone can design clothes specifically for an untouched segment of this industry and be highly successful. If other designers and manufacturers create clothing in the same line as Claiborne, it could affect our future revenues; in other words, profits may start to decline. We cannot patent ideas. Opportunity: Claiborne can open up other lines such as men's professional apparel; a children's line and even a sports line. Claiborne can also appeal to big and tall and petite sizes.

Claiborne has the opportunity to communicate with retail stores all over the world with the implementation of information technology. With IT incorporated into the way Claiborne does business, we maximize our profits and expose our name to everyone world wide. Threats: Competitors who carry low-priced lines of professional clothing for women. Retailer who make unintelligent decisions in marketing and advertising can really be a threat to Claiborne.

The fact is, if our customers (retailers) don t make money; or misuse funds, then we don t make money. TACTICS To produce a low-cost line of clothing and broaden Claiborne's product line. This needs to be done while protecting the brand name Claiborne from public scrutiny. Claiborne can merge with Russ Togs; who already produces these three product lines: Crazy Horse, The Villager and Red Horse. Now, instead of unnecessarily upgrading and redesigning Claiborne's current product line, we can form a partnership with Russ Togs at a 60/40 split.

This tactic will generate substantial revenues because Claiborne is a household name and Togs line is known throughout the discount merchandising industry that serves the general clothing market. RECOMMENDATIONS It is recommended that Claiborne DOES NOT sell clothing through established retailers such as: Macy's, Abraham and Strauss, Bloomingdales and Dillard's for 50,000 dollars worth of purchase. This seems to be outrageous and unreasonable. Instead, Claiborne should lower this price and implement a different strategy to accomplish the same goal.

It is recommended that Claiborne consistently create new business relationships, one on one relationships. Marketing programs should be created and Electronic Commerce should be embraced; That is, Internet-based clientele. This will allow Claiborne to react quickly to customer demands, reduce costs of supplies and build customer loyalty. It is recommended that Claiborne understand and fulfill the needs of its customers before competitors do.

It is recommended that Claiborne invests aggressively in technology; i. e... Data warehousing and network / systems management.