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Vera Bradley Goes to France

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Alex Chistolini

on 4 December 2013

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Transcript of Vera Bradley Goes to France

Femininity-Masculinity
Femininity
Quality of life is important
Work in order to live
Competition between work colleagues is not favored
Material signs of success are not flashy
Management is supportive

Survey Results
.
9
French Girls ages
22-26
.
3
had heard of Vera Bradley
.
1
owned a small coin purse
.Girls owned
4 to 6
handbags
.In store shopping
.
Bright quilted handbags
currently in France
.Printemps, Galeries Lafayette, Le Bon Marche

.To be "a girl's best friend"

.Brand vision: accessible luxury that inspires a casual, fun and family-oriented lifestyle

Mission & Brand
Vera Bradley
.Leading designer, producer, marketer and retailer of stylish and highly-functional accessories for women

.Known for:
-High quality
-Distinctive styling
-Functional design
-Frequent design releases


Strengths
Individualistic and vibrant style
Fully integrated product design
Customer loyalty
Multi-Channel Distribution
Product Offering
Weaknesses
Insignificant market share
Limited Stores
Low Net Income
Employee Costs
Tax Rates
Opportunities
International Demand
Growing disposable income
Increase in travel and vacation
Recovery from recession
Emerging Markets
Threats
Competition
Trade Costs
Import Limitations
Cost of cotton
Interest rates

.Founded in 1982 by Patricia & Barbara

.Idea generation: lack of feminine-looking luggage

.Named after Barbara's mother

.Indiana: headquarters
History
Core Competencies
1. Patterns
.Bold colors & design
.Hard to copy
.Constant Pattern development

2.Variety of bags & accessories
.Multitude of styles
.Styles come in all patterns

3. Strong Online Store Sales & Promotion

.Constant online sales and promotions
Social
-50% of population is between ages of 15-50
-52% of population is women
-Urban Population is 85% if total population
-French: national language
-Family is country's social adhesive
-Business Behavior: courtesy & degree of formality
-Direct in communication
-French Pride
-Embrace style & sophistication
-Like to observe people and their belongings
-All people greet each other, even strangers
-Shopping is an elaborate process

Economic
-Use the Euro

-5th largest nominal gdp

-Europe’s 2nd largest economy

-4th in the Fortune Global 500

-Among least indebted populations in developed world

-Leading industrial sectors: telecommunications, aerospace and defense, chemicals, textiles

-Twice as many French with assets over US$10,000

-4 times as many French with assets of over $100,000 than the world average


Competition
-Approximately 10 major competitors in bag industry in France

-Louis Vuitton: only competitor with significant retail value representing 16.8% of the industry

-59% of industry: competitors with less than 2% of overall French market share
Technology
-High research & development spending is 2.26% of GDP

-France is the leader in nuclear technology export

-Top 3 in European E-Commerce industry

-Low levels of involvement in social media

-Online shopping not as popular as in store shopping
Regulatory
-Taxes levied by gov & collected by public administrations made up of
1.Central Gov
2.Local Gov
3.Social Security Association

-Taxes (impôts):apply to production, importations, incomes
-Social contributions:part of total wage paid by an employer to an employee for completed work

-VAT (consumption tax): applies to all goods and services located in France
-Current VAT tax is 19.6%

Political
-Politically stable
-2012 Presidential Election:Francois Hollande
-New government aims to:
1.Cancel recently enacted tax cuts and exemptions for wealthy
2.Raise top tax bracket to 75%
3.Restore retirement age to 60
4.Restore 60,000 jobs cut from public education
5.Regulate rent increases


Natural
-Cool winters and mild summers

-Occasional strong, cold, wind known as mistral

-Mostly flat plains or gently rolling hills in north and west
-remainder is mountainous

-Natural disasters: Flooding, fires, droughts, and earthquakes
Power Distance
High
Hierarchy
Formal attitudes towards managers
Power is highly centralized, Paris centralized administration, transport

Individualism-Collectivism
Individualism
Favor individual and private opinions
Take care of themselves and immediate family rather than belonging to a group

Uncertainty Avoidance
High
Planning is favored
Certainty through academic work
Need for detailed context and background
Teaching and training is more deductive

Financial
1.Increase annual income by 20%

2.Increase market share

3.Improve profit-revenue margin

4.Decrease fixed operational expenses

Non-Financial
1.Increase international exposure

2.Open store in Champs-Elysees

3.Develop profitable indirect retail
channels via French department stores

4.Work towards economies of scale

5.Develop an efficient international communications system

6.Increase brand prestige in France

7.Develop loyal customer base


Target Markets & Market Segmentation
Consumers
Women aged 18-34
College students
Post-Grad "Newly in Workforce"
Young Moms
Middle-aged women
Target Market in France
Supply Chain
Design
Market Research
Merchandise Management
Sales
Marketing
Sourcing
Global Buyer Behavior
Slow of adopt mobile shopping
Big Savers
Growth on Online shopping
Value luxury products
Reliance on Specialty retail stores
Global Competitor Analysis
The Vera Bradley brand is more price accessible than many competing brands, which allows us to attract a wide range of consumers and inspire repeat purchases.
Handbags $25-$125
Accessories $10-$35
Travel and Leisure Items: $15-$130
Import rate into France is 3%
VAT tax is 19.6%
Promotion
Catalogs: Key vehicle for brand and product portfolio
Advertising: Print and Outdoor
Public Relations and Product Placement
Social Media and Online Marketing
Place
International Resources
1. 1,800 sq. ft. space at Champs-Elysées

2. Indirect marketing through:
- Printemps


- Galaries Lafayette


- Le Bon Marché

Data to Monitor & Frequency
MERCI BEAUCOUP!
SWOT
Environmental Scan
Hofstede's Cultural Dimensions
Marketing Plan Objectives
Global Industry Analysis & Market Needs
The Future of Vera Bradley
Implementation
Evaluation & Control
International Marketing Mix Strategies
Product
Handbags: Primary component of every signature collection
Accessories: Wallets, ID cases, eyeglass cases, cosmetics
Travel and Leisure Items: Duffel bags garment bags, travel bags, travel cosmetic cases
Product
Broad range of female customers
Casual luxury
Create feeling of home
High quality, distinctive, and vibrant styling
Frequent releasing of new patterns
Vera Bradley is a colorful way of letting customers express individuality and sense of style
Positioning
Price
Organization Chart
Percentage of Retail Value of Bags and Luggage
Percentage of Retail Value of Accessories
Goes to France .
Product-Market Analysis
Kids
Tweens
Teens
Full in price store: Convey Vera Bradley life style
Indirect Retailing
E commerce: Customized shopping experience
Sales
Growth Rate
Market Share
Profit
Trends
Monitor quarterly
With the flexibility of the Vera Bradley brand it is important to continually monitor customer behavior
Marketing Mix Modifications
"Tweens"
Trolleys
Satchels
Travel Bags
Action & Timing
Budget
Global Company Business Portfolio Analysis
Champs-Élysées
Kids
-Birth rate inceased 2% beweten 2005-2012

-Young students tend to dress in comfortable clothing but not too casually

-Satchel-style bags aka ‘le cartable’ popular in bright colors and patterns

-The search for the perfect ‘cartable’ can be a stressful for French moms

Tweens
(Backpacks, lunch bags, travel bags)

-Ages 9-12 reached 3.1 million in 2012

- 18% of children between 10-14 complain of back pain once a week

-Switching to trolleys on wheels and other alternatives

-Develop backpack on wheels

Teens
(Backpacks, travel bags, weekend bags)

-Spend their early holidays away from home

-Schools organize skiing holidays

-'Colonies de vacancies’: holiday camps

-French teenagers are fashion-savvy

-Like to shop in malls

-77% 11-17 use internet daily

1,800 sq ft space

Per Sq Meter - $17,770
Annual Rent - $3,020,900
Monthly - $251,741.667
(Satchel Bags)
Growth Rate

17.4%
Full transcript