The Sales Plan of Mens Accessories in a Women Only Accessories Stores - Research Paper Example

? Buying and Merchandising Table of Contents Executive Summary 3 Aims and Objectives 3 Range Plans 4 Price Architecture 5 Range width and depth 6 Profit range 6 Reference 7 Executive Summary This is a business report which has been professionally developed by the market research. It has been made based on the current market scenario and trend of apparel and fashion accessories market of United Kingdom. The demand for apparels and fashionable accessories always remains high and also in an increasing trend. The reason behind this is the disposable income of the young generations is increasing day by day and the producers and the marketers of these products keep focus on these influencing characteristics of the segment of potential consumers. People especially the young generations are becoming highly brand conscious and the marketers are using this factor of consumer behavior for the marketing planning which includes promotions and mainly the sales plan (VERDICT, 2006, p.4). Pricing and promotions are the two key are of marketing plan mainly for apparels and fashionable accessories of women as well as men. At earlier day’s top retailers in this market used to focus only on the female accessories and apparels as the trend women fashion industry was always high but now a days the demand for fashionable and braded men accessories like tie, wallet, belt etc are in growing trend. So, retailers are including men’s accessories in the women accessories stores. So, this report is all about the sales plan of men’s accessories in a women only accessories stores and the pricing of the men accessories from basic price range to premium (Evanchitzky, Vogel & Ahlert, 2007, p.15). Aims and Objectives The main aims and objective of this business report is to develop an effective sales plan for the men’s essential accessories like tie, wallet and belt. This sales strategy of these products has been made considering the gap or weakness of the value retailers like the top brands. This sales plan includes mainly the price and the place, the two most important factors of marketing mix. Effective implementation of these key factors of sales plan can create a higher demand these products to the potential target customers. The objective of placement of these products is to add the men’s accessories in female only accessories store in the high streets. Pricing objective is to develop a price range of these products considering the increasing personal disposable income of the younger generations and their follow of new trends. So these objectives of this business report will be satisfied if the gap or weakness of the sales strategies of the value retailers or the top brands are find out. Range Plans From the efficient market research it has been found that the accessories market in the United Kingdom has a steady growth and this growing trend of this market was due the earlier female fashion trend. But now the trend of using fashionable essential accessories of men’s can be found in this market and this gap or the weakness of the luxury brands. There is huge market size of the potential buyers who wants to keep their lifestyle with the new trend. But these are younger school and college going boys who only have the personal disposable income for buying these essential but fashionable products. So the price range for these products needs to be of a diverse like from basic range to standard price range not the premium range of products which the value retailers have already focused fort the professional men with high income level (Mintel. 2012, p.12). These men’s accessories will be added with the women products in high streets female only accessories shop. As there are many younger men comes to these high streets shops with their female friends and they are the potential customers. In the basic categories there needs to be three different sub categories based on the slightly price difference so that the consumers of basic products categories can satisfy with varieties of price along with the color variety. These customers are the potential and higher in numbers especially in the high street stores. Secondly the premium luxury range will be of better quality and of unique designs so that apart from potential buyers of this category the first categories consumers also attracted by these designs and quality (ICM, 2012, p.1). Price Architecture Price of the products need to be of two different categories. One is basic range and another is standard luxury range for the people with comparatively higher level of personal disposable income. The basic range of price will be $9 to $14 for and the luxury category will be of $29 to $40. In the figure 1 it has been shown that the there will be two different range of price in each of the two category of price, basic and luxury. So there will be total 18 categories of products based on the price range. The three different categories of products like tie, belt and wallet will be having two broad sub categories like basic and luxurious. In these two broad categories there will be three different price ranges with close price gaps. Figure 1: Price range of the men’s accessories Price category Products Color range Price Cost of goods Profit per unit Basic Polyester tie Four $9, $11, $13 $6.5, $8, $9 $2.5, $3, $4 Basic Faux wallet Three $11, $12.5, $14 $7, $8.5, $9.5 $4, $4, $4.5 Basic faux belt Two $12, $13.5, $15 $9.5, $10.5 $11 $2.5, $3, $4 Luxury Polyester tie Four $29, $33, $37 $22, $23, $25 $7, $10, $12 Luxury Faux wallet Three $31, $35 $39 $23, $24, $26 $8, $11, $13 Luxury faux belt Two $33, $37, $40 $23, $24, $25 $10, $13, $15 The consumers for the accessories products are generally desire more varieties in terms of colors, designs and quality. But price variety is also another factor which influences people to make purchased decision. So the design of each of the price segment must be different as the colors may be the same this is the only factors which can provide the reasons of price difference of each category of products. The pricing strategies will be a comparative market pricing strategy and this will be only factor of attraction of the potential target customers. Range width and depth Width and depth of different price range refers to the price range of each of the two broad price categories and also the sub price ranges with small gap among each other. The broad gap has been made to distinguish the quality and the unique design of the luxury category than that of the basic categories. Basic categories has range of $9 to $15 i.e. the gap is$6 and in this small price gap three sub categories have been made to offer the various design with different worth. The luxury category has comparatively higher gap as the price is higher and it is $29 to $40, a gap of $11. Here also the same strategy has been taken to develop the sub categories. Profit range Profit range from each category is near about equivalent to the price gap and so costs of goods are also different for the design only and in broad category for the quality and design both. There is not possible to make equivalent profit margin based on the price range as the cost goods are not similarly changes with the sales strategy. The basic category provides lower unit profit for each category compared to the luxury category as investment is lower for this category. But as a the target customers are the young school college goers and the buying behavior of these customers depends on the personal disposable income only, so, the basic categories products will be higher focus by the shop owner than the premium categories and this will provide higher sales than the luxury category (HBS, 2000, p.44). Reference Evanchitzky, H., Vogel, V. & Ahlert, D. 2007. Consumer price knowledge in the market for apparel. [Online]. Available at: https://pure.strath.ac.uk/portal/en/publications/consumer-price-knowledge-in-the-market-for-apparel(d9456642-945a-4c93-9e46-5d29d280f199).html. [Accessed on June 05, 2012]. HBS. 2000. Cost transparency. [Pdf]. Available at: http://www.business.ulster.ac.uk/intlbusiness/courses/bmg814m1/Sinha.pdf. [Accessed on June 05, 2012]. ICM. 2012. Retail marketing principles. [Online]. Available at: http://www.icm.ac.uk/icm-qualifications/single-subject-diploma/retail-management/retail-marketing-principles/. [Accessed on June 05, 2012]. Mintel. 2012. Men’s Ties and Accessories – UK. 2001. [Online]. Available at: http://oxygen.mintel.com/sinatra/oxygen/display/id=77223. [Accessed on June 05, 2012]. VERDICT. 2006. Accessories retailing 2006. [Pdf]. Available at http://www.verdict.co.uk/Marketing/dmvt0334m.pdf. [Accessed on June 05, 2012]. Read More