Concept for Women\'s Retail Brand

1. ANDERSON
BRAND
“CREATING A CONTEMPORARY BRAND”
BY
RIC ANDERSON

2. ANDERSON BRAND
Table of Contents
Executive Summary p. 3
Vision p. 3
Core Values and Brand Strategy p. 4
Merchandising Strategy p. 7
Marketing Strategy p. 10
Online Strategy p. 10
Financial and Inventory Strategy p, 12
Operations Strategy p. 13
Culture p. 15
ANDERSON BRAND 2

3. ANDERSON BRAND
EXECUTIVE SUMMARY
This is a very high level outline of two major strategies. The first is the re-invention of
ANDERSON as a well-know but under utilized national brand, into a focused unique,
classical and casual woman’s lifestyle brand. The second element is the creation of a
new, innovative Brand and Revenue Model. The Model is a vertical, limited
partnership that uses a multi-product, multi-revenue channel concept strategy. It is
the union of a Limited Partnership of Vertical Vendors that specialize in specific
products essential to the Customer Value Proposition, this insures customer focus,
proven design, uniform quality, timeliness, and higher profits.
This Summary is by no means complete nor does it address the necessary financial
needs, flow or parameters. Its goal is to first, enable the investor to have a “Vision”
of a tactical plan to re-build a brand and in the process create a new, “Blue
Ocean” go-to-market strategy for a brand.
VISION
The Customer Value Proposition starts with a multiple product assortment of congruent
products and ends with a better than expected Customer Experience; one where
each shopping experience is always an “Adventure”. The actual product is the
“Adventure”. The categories sold are the tools to a successful “Adventure”. Every
element of this “Woman’s Lifestyle” is to be scrutinized; from morning to evening;
from home to work; from weekday to weekend. The focus will be on those
categories that will create the strongest emotional (and profitable) interaction
with the customer. Whether it is an apparel garment, a shoe, a gift or a service;
the result will be the ultimate emotional connection to the “ANDERSON
Woman” as possible.
The goal is to develop ANDERSON into a classic, casual, life-style brand with a
socially iconic culture. The brand is a “Mecca” of all the elements that touches
this woman’s life. A store, where she is never disappointed by the merchandise, by
the shopping experience or the overall value received. One visit by a customer
evolves into a continually repeating lifetime experience that develops into a mind
set for the customer: “She will find a unique or valued item each and every visit;
each experience is an expected enjoyable one, with those perceptions being
fulfilled”.
The business model is built to influence a large number of congruent women, to have
top-of-mind consideration for the brand, shop it frequently, spend more time in the
store/online, increased spending on each transaction, to be an ambassador of the
brand by “word of mouth” marketing and have the mindset of “the brand as a
means to allow her to be unique while providing solutions to many of her needs”. By
creating the brand as an “Oasis for the “ANDERSON Woman”, the overall financial
opportunity through multi-revenue channels is increased and maximized.
ANDERSON BRAND 3

4. CORE VALUES and BRAND STRATEGY
UNIQUE PROFILE TO THE CUSTOMER
Creation of a “Shopping Oasis”* for the “Woman” that enjoys an upscale,
contemporary, and classic lifestyle through a career, as a wife and/or a mother.
Differentiation and divergence is the key! Re-position and re-launch the ANDERSON
Brand as a brand that portrays as one that “always has unique, fun, updated,
contemporary classic products with exception intrinsic value”. Position the Brand for
the future, based on classic roots but not on what used to be. Times and market
niches have changed; classical is not what it used to be. Limit Product Categories for
the Brand while expanding those that can be a perception changing, while making
the most sustainable profit.
CUSTOMER
Narrow the scope of the customer’s profile to increase the window of opportunity to
build a strong emotional connection with the customer. She will always return for a
great experience.
The core customer is;
 A 25-50 year old woman
 Understanding of the quality/value equation.
 Recognizes and has desire to have exceptional service
 Has or will make the time to shop when she has confidence in the experience.
 Above average discretionary income.
 Perceives herself as an accomplished woman; either at work, in the home or in
the community.
THE ANDERSON BRAND POSITION
 “The Woman”: confident, sophisticated, fashion forward, concerned with
health and fitness, and with impeccable taste! When SHE walks down the
street, people will KNOW she is an ANDERSON Woman.
 An engaged woman, through a career, an involved wife, mother, or individual
in the community.
 A store that every young girl will aspire to shop.
 A brand that every man knows is the perfect gift.
 The brand will supply every need for this Woman from Clothing, Footwear,
Accessories, Cosmetics, Services and Gifts.
 Every woman knows she has obtained a certain status in life by being able to
obtain ANDERSON products.
ANDERSON BRAND 4

5. CUSTOMER VALUE PROPOSITION-CVP
The ANDERSON brand touches every aspect of this Woman’s life from the time she
gets up, gets the family off for the day, works a full day, returns home, her evening
and as she retires for the night. Develop her experience as one that connects with her
on several emotional levels: exploration for newness satisfies need for acceptance,
answer to any gift needs, place to turn for answers of propriety, etc.
 Have complete insight into the needs, desires and wants of the “ANDERSON
Woman”.
 Create the ANDERSON brand in the image of the ideal women. One that
becomes the icon that every woman wishes to be, every girl dreams about,
and every mother wants her son to marry.
 Be the arbitrator of what she needs; good taste, apparel, gifts, health and set
the values for her lifestyle.
 Find unique products that fit in her life, that make her life more interesting than
any other person’s world.
 Engage the “ANDERSON Woman “on and with as many Emotional
Touchpoints as possible
 Store
 Products
 Values
 Visuals
 Easy of Shopping
 Internet Kiosks
 Marketing: all levels.
 Services: Customer Service is the least expensive of any Customer
Perception Changing Elements - What services could be added that
have little to no increased cost?
 Free Gift Wrapping on Categories during relevant times of the
year.
 E-mail Birthday card
 Reminders of important dates in her life.
 Etc.
 Expanded Internet Strategy
 Community: Develop template strategies for each store to be involved
and engaged in the local community.
ANDERSON BRAND 5

6. CUSTOMER SERVICE
Develop Service Levels above high end Retail Stores; become the
“Concierge” that fulfills the needs of the “ANDERSON Woman”; a searcher for the
answers to every lifestyle situation.
 Selection of Sales Associates: Training, expectations, empowerment,
development of screening test for Sales Associates.
 Know birthdays, anniversaries, graduations
 Personal Registry for every single occasion
 Birthdays
 Weddings
 Anniversary’s
 Graduations
 Birth’s
 Promotion’s
 “What I would like if you are looking”
 Develop special nights for specific events
 Career Night
 The Cruise
 Husbands Only
 Shoe Events
 Birthday Events
BUILD CUSTOMER LOYALTY
Refine the Customer Reward and Loyalty Program so that it is SIMPLE, more
recognizable for it’s true purpose, easier to understand, and has actual value to the
customer! Co-Market with companies that have congruent customer profiles to
exchange information and rewards.
 Earn Services rather prices
 Status levels take the customer to another service treatment level
 Send Chocolates, bottle of Champagne, Day at Spa
INTERIOR AS BRAND PROFILE
Use the store interior as an element to shape the image of the ANDERSON brand in
the customer’s mind.
 Create a relaxed, soft, bright, and open atmosphere with good design, where
one product category are presented as shop concepts and naturally flow from
one to another.
 Use of all natural elements – Marble, Stone, Glass, Metal, Wood and Open
Space, will allow this customer to feel more connected and relaxed as a part
of the experience rather than as a place to be sold.
 Use product merchandise to create different shop concepts; Casual Apparel,
Footwear, Accessories, Intimate, etc.
 Have several internet kiosks where the customer can set up ideas of registry,
make comments, have product sent to other customers.
ANDERSON BRAND 6

7. MERCHANDISE STRATEGY
CORE PRODUCTS
Categories that have high margin, fast turn and develop the most intense customer
loyalty are the DNA and foundation the merchandise assortment. Shop Concepts are
built around the Core Products of Apparel, Shoes, Accessories/Jewelry/Gifts, (possible
Cosmetics) and Intimate Apparel.
 Casual Sportswear: Slacks, Shirts, Blouses
 Weekend Sportswear: Denim, T-shirts, Shorts, Swim
 Shoes: Large Shoe Departments with great values of Career, Casual, and
Comfort footwear.
 Intimate Apparel: Sleep, Daywear, and Panties
 Accessories: Handbags, Small Leathers, Sunglasses, Hosiery.
 Jewelry: Silver, Semi-precious and Costume.
 Gifts and Soft Home: Picture Frames, Large Leather goods, Sheets, etc.
 Cosmetics: Private Brand products from foundation to scents.
USE OF PRODUCT CATEGORIES AS A BRAND STRATEGY
“Sell their mind” before they ever leave their home. Create ANDERSON product
categories that the customer sees as destination products. A brand with multiple
products that serve as “must haves” or “always great items”; a Brand where there are
a multitude of products that are relevant to their lives. It is not possible to win the price
war, so win the mind war. Win their heart and soul through meaningful products. The
ANDERSON Brand strives to become a cultural icon.
 Basics Strategy: Build a small collection of “Incredible Value” in Key Basics for
each Product Category.
 Small Category Strategy: Focus Products that have high emotional
connection, high margin, competitive advantage, high Change Perception:
Food: Chocolate, Coffee, Cookie Mix, Books, Stationary, etc.
 “Must Have” Key Item Strategy: Each Category identifies seasonal or lifestyle
statement items; negotiates the item to have “extreme value”. Creates a
competitive advantage while building a repetitive purchase situation.
 Item Strategy: Creation of “Fun Unique Items” that are easy seasonal
destinations: Collection of White Blouses, Fashion fun Flip Flops, wide
assortment of Earrings, and extreme value of panties in styling, materials, fit,
comfort, and feel.
ANDERSON BRAND 7

8. UNIQUE ITEM BRAND STRATEGY
Each item will stand alone and be able to be sold as a unique product! Create an
emporium atmosphere of items directly related to a congruent customer base. It is
the era of “being unique” not one of conformity. The era of mix and match
collections is over! The brand should strive to develop a reputation as a place of
always finding something special; a brand that the customer perceives as the
authority for the newest updates of classics for our time. It defines who they are, to
themselves and to the world. Create a marketplace of individual items and product
categories, all complementary and relevant to the “ANDERSON Woman” that has
new treasures for each shopping experience.
PRICING STRATEGY
Competitive Advantage Pricing Strategy that is based on being able to sell extreme
quality/fashion ratio products at full price with the ability to clear goods before
clearance pricing hits product cost.
 Understand the value of each product category in relation to fashion, quality,
availability and competition. Price as a Competitive Advantage where
possible.
 Full Price and Clearance Price Strategy: Promotional, Entire Stock and Extra
Percent off sales only lower the Brands Value Perception, reduces the
company's depth of inventory in its best categories, styles, sizes and colors at
lower margins. This type of sale makes clearing the rest of the inventory more
expensive in the total life of the inventory. It is a short-term gain with long-term
implications.
 Flexible pricing strategies depending on Season, Product, Promotion
 Some products allow higher MU% than others. Use some as brand
builders, others as volume etc.
 Drive Seasonal businesses.
 GMROI builders
CLEARANCE STRATEGY
Automatic Turns and exit strategies by product are an essential elements of the
Financial Strategy.
 Surgical and proper depth of markdowns must be taken on problem items
quickly. Within 30-45 days make determination of the degree of the problem.
 Graduated markdown schedule based on rate of best return and check out
rate needed for exit date. The first markdown can be anywhere from 20% to 40
% but must increase rate of sell to the timetable of the products exit date.
 Establishment of a Permanent Clearance area that becomes a destination
path within the store for the Customer.
 Clear old merchandise to Outlet Store on monthly basis to keep store clean,
fresh and establish a sense of urgency with the Customer.
ANDERSON BRAND 8

9. SPECIAL INTEREST AREAS
Create new limited life special interest product areas that are related to the customer
profile. I.e. a magazine rack stock with related topics to the customer, fun gifts for
Women executives or for the office, Seasonal Foods or Home products.
MINE CUSTOMER DATA
One of the most important elements of the Merchandise and Inventory Strategy is
Customer Data. Mine and use shopping, sales, and competitive data to in all decision
making processes: Product, Marketing, and Customer Experience.
 KNOW who the customer is; her needs wants and desires.
 Use of Credit Card Strategy to obtain:
 Socio-Economic
 Race
 Cross Selling
 Political
 Religion
 Day of week, time,
 Product propensity to buy?
 Clearance schedule: Start of Clearance by category and depth of Clearance
in timely manner for Exit
 Penetration of Product Categories
 Cross Shopping Experiences
 Create formulas for number of times a customer buys a particular category vs.
profit and is consider GOOD customer.
 Build Relationships on your GOOD customers.
 Understand cross shopping elements between Product Categories: frequency,
profit, loyalty, and use of space.
FLOW OF MERCHANDISE
 Determine the most productive time window by Product Category to arrive in
stores and to exit.
 A continuous flow of merchandise is needed to insure newness and develop
desired repeated visits by the customer.
 Exit Strategies for EVERY product – even Basics.
ANDERSON BRAND 9

10. MARKETING STRATEGY
MARKETING: LASER FOCUS TOWARD THE CUSTOMER
The Customer Marketing Strategy is the combination of all print advertising, in-house
collateral, product mix, store décor, profile of average associate and service levels
offered by category. All merchandise and marketing elements must be within the
laser focus of the “Customer Profile” and “The Vision”. No deviation can be allowed if
the customer is to emotionally connect with the ANDERSON brand.
 All Marketing no matter the type must reflect the overall CVP.
 Develop multi-media plans for both short term and long term.
 Co- Marketing with Congruent Companies of the customer
 OWN all Personal Celebrations: Births, Graduation, Promotion, Birthdays,
Mother’s Day, Fathers Day, Halloween,
 Use of “BIG” GWP’s to drive sales, increase brand awareness, create image,
and build community interaction.
 DVDs
 Roses in the Spring
 Chocolate
 T-Shirts
 Golf Balls
ONLINE STRATEGY
USE OF THE WEB
Essential to the emotional bond with the customer is a complete “Internet Customer
Connection Strategy” that engages the ANDERSON clientele and creates
“Authority” for the Brand:
 Economic Commerce Website: categories that the company can WIN!
 Shoes
 Handbags
 Blouses
 Features and Benefits on Products
 B2B: Ability of local businesses to use and obtain Corporate Discounts
 Loyalty Programs: Built on Relevant Services
 Easy to understand
 Simple to use
 Emotional Connections to the customers needs
 Hair Salon
 Car Tune-up
 Free Tax Return
ANDERSON BRAND 10

11.  Social Media:
 Blogs:
 What is going on in this Woman’s life: Health, Children, Managing
Work and Home life.
 Recipes,
 Best of Everything in a City: “Hotels, Trips, Restaurants etc.
 etc.
 Personal Networks: Face Book type site
 Profile – birthdays, politics, favorite foods,
 You Tube Contest of Ads for the Store by College Students
 Photo program that allow a person to see themselves in many different
garments or colors
 Tutorial on quality of products, how best to use them
 Online ANDERSON Magazine with congruent marketing:
 Relevant and timely articles
 Recipes of the month
 How to Do tips
 Decorating ideas
 Home tips Online Closet- how to put things together.
 Registry Strategy: Registry is more than just gift giving, it is list of everything she
every wanted, needs or didn’t know that she wanted:
 Birthdays
 Anniversary’s
 Graduations
 “if you are looking this is what I want”
 E-mail strategy:
 Clearance opportunities, new product, or Services
 Personal congratulations – birthdays, graduations, births.
 Time and use based emails: product has worn out, product use is over,
out of product, improved product
 New Products
 Community Events
 Seasonal: Winter Merchandise, Swim
 Virtual Mailers by Product Category
 Store Operations:
 Training for Stores,
 Best Practices
 Innovative Ideas.
 Surveys:
 Customer insights to store, services, future product
 Store: What do they need? What is missing? Competition? New
Innovations and ideas! Best Practices!
 Vendor information and training
ANDERSON BRAND 11

12. FINANCIAL MODEL
LIMITED PARTNERSHIP OWNERSHIP MODEL
Create a Limited Partnership with key companies that have specialized product
categories. Companies will have production, product development background,
and overall expertise in product category. They will have a vested financial interest in
building the brand. Direct sourcing from China, background in design, or history of
building brands will be the focus for investment partners.
REVENUE CHANNELS
Establish 7 Channels of Revenue; each with its own set of goals for the brand beyond
more profit:
 Stores: Retail Stores in Lifestyle Centers and Outlet Malls.
 Direct to Customer: This can be Direct Mail, E-mail, or Virtual Catalogs
 Internet Commerce:
 Product focused selling website.
 Affiliate Sales from in-store Internet Shopping: Flowers, Types of Gifts,
Specialty Shoes, Health Care Items, Expanded assortment from
categories.
 B2B Strategy: Templates that allow easily presentable solutions to large
congregation of women; companies, organizations, charities, etc..
 Wholesale & License Opportunities: There are many areas in the country that it
will never be economically to open a store. In these areas, it makes sense to
investigate the ability to take product categories of the store and create a
Wholesale Divisions. Example: Sweaters, Shoes, Sleepwear may be individual
categories that could have strong enough brand identity to have Wholesale or
License opportunities.
 Franchised Concept Shops by Product Category, within contractual brand,
pricing, and location structure.
 Advertising Revenue from Web-based Customer Connection Strategy and
Online Magazine
SPECIALTY PRODUCT SHOP P & L
Break the Store down to Specialty Shop Areas that have Big Picture fiscal results that
can be determined and analyzed as to overhead, marketing, square ft.,
warehousing, logistics etc.
 Store Space Allocation Strategy
 Sales per Sq. Ft., GM$ per Sq. Ft., GMROI
 Crossover Products affinity that lead to customers decisions.
 Transition of Customer through the store
 Penetration of destination, loyalty, frequency and profit by Product.
 Competitive Advantages by Product Categories or Items.
 Stockrooms, Marketing, Customer Service expense
 Upside of sustainable growth, profit and penetration to Market
ANDERSON BRAND 12

13. OPERATIONS STRATEGY
INVENTORY ANALYSIS
Profitability will be determined as much by the distribution of merchandise to the
Stores, in stock ration, penetration of Product, Sizes, Widths, Color and Store Profile.
 Tools and Manpower have to be in place for proper analysis of merchandise
distribution down to the Store Level.
IT – STRENGTH OF SYSTEMS
Quality of IT systems is difference between OK and Outstanding results
 Inventory Distribution is completely dependent on the proper IT systems.
 Merchant and Inventory systems: easy, fast, ability to look at information in
many different viewpoints.
 Ability to dive into information to analyze Categories, ROI, Cross Shopping, etc..
MANAGEMENT AND ASSOCIATE ACCOUNTABILITY
Development, retention and training of Key personnel in the stores will be a major
element in the success of the Strategic Plan.
 Develop effective “Management Reward System”
 Train associates from top down!
 Career Path needed for key employees
 Training methods developed on Internet, from Vendors and in-Store Supervisors.
 Development of a test/survey that exposes the correct mind set for a Sales
person in this Brand Concept. Consideration for salary and bonus
arrangements important to the success of the concept.
LOCATION STRATEGY
 Evaluate all store locations as to correct customer profile and future of that
customer in the location.
 Establish Home Court Advantage. Create a regional “Real Estate Growth Plan”:
Use a Southern, warm climate location strategy as they are more likely to
perpetuate the classic, casual lifestyle brand. This will allow the Merchant and
Inventory Teams to concentrate on one customer data profile. Savings can
come from freight, advertising, training, and customer awareness.
 Identify new locations within marketing ranges (word of mouth, radio,
newspaper, TV) of current stores.
USE OF TRUE OUTLET STORES
 Monthly deliveries from Stores to Outlet Stores. Keep Regular Retail Stores clean
from old age and over abundance of goods.
 Position far enough away from Regular Retail but in locations that would allow
the ANDERSON Brand to extend: Destin, FL , San Antonio, TX – locations that
are more travel and tourist related vs. local customers.
 Determine the number of Outlets per Regular Retail needed.
 Test new products in outlets at reduced prices to find acceptance levels.
STORE SERVICE EMPLOYEES
Create "Best in Class” profile on the type of Sales Employee needed
 Develop questionnaire and interview template to screen prospective
employees.
 On-line Training tests and updates
ANDERSON BRAND 13

14. CULTURE
EXECUTIVE POSITIONS
 President: There should be a seasoned President that understands Retailing,
Product Development, Team Building, Culture Strategy and most important –
how to build a brand. Position acts as the decision maker for both
Merchandising and Brand building.
 CFO: the CFO should have both financial and operational experience
 Internet Director: this person has to have a wide background in commerce,
social marketing, and alternative uses.
 Merchants: One key merchant per large product category.
 Inventory Directors: Reports to Merchants.
MERCHANDISING
Core team of Merchants, Inventory, Marketing and Operations meet monthly to
discuss Brand in terms of Product, Services, Stores and personnel as on going review of
the best fit.
 Does product fit into Profile?
 Does it hit quality, fashion, value and emotional standards?
 Does it add to the overall Value Proposition?
 Do the stores continue to represent the customer?
 Does the website offer more value?
MAXIMUM PRODUCTIVITY OF PEOPLE
 Build a team that understands, knows how and wants to “THINK” about a
Strategy that evolves builds the brand, sustainable and profitable.
 Empower employees to participate in all strategies, processes, and policy:
 Open discussion
 Exchange of ideas
 Tests of Innovation
 Reward insightfulness, passion, innovation, engagement
 Cut all those that cannot accept or participate
INCREASE MARKET SHARE
“Create internal organizational attitude of improving overall brand experience.
 Make sure that each employee knows who its current customer really is and
the traits that are common to each of them.
 Having and using this knowledge maybe in instrumental in creating the proper
merchandise mix and marketing strategy.
 Independently, have each employee list 10 factors that are common to each
their customers. The answers may reveal some illuminating unknown facts of
the ANDERSON customer.
 Know your competition and develop strategies to sway their customer base to
different shopping decisions.
 Use a “Best Practices” methodology of competitor’s practices as a means to
improve the brand and increase profitability. What can be used, borrowed,
changed etc?
 Culture of Test/Learn, Innovation, and an open mentally to new ideas.
COMMUNITY
Each store should be an extension of the community in which it is located. Marketing
funds have to be available to allow each store manager to able to make investments
in areas such as local charities, schools, etc.
ANDERSON BRAND 14