J. Crew Company Analysis

I. Problem Definition J. crew at S relishstown mall is having difficulty targeting San Francisco State scholarly persons to shop at their store, even when J. combination stretchs a 15% off discount to college students. J. mob is a very successful marker that reaches out to bleakborn business professionals however J. conspiracy, specifically at Stonestown mall, is having difficulty stretch out to the college students at San Francisco State University. J. Crew believes the students at SFSU are a smart target to reach, needing the University is located right next to the Stonestown mall. Although J.Crew believes the college students are smart target to reach, umpteen students are unaware of the student discount they brook. Looking over J. Crews past marketing campaigns, they energise make use ofd fourth-year flavor models. When doing our research, we noniced that J. Crews top competitors GAP (Banana Republic), and BCBG use junior, college age range, type of models. Wit h this is mind, we feel that the best advertising campaign is to follow their competitors and lease younger looking models, in order to reach out to the college market. J. Crews competitors use merriment advertising methods to reach out to a younger market.We noticed in all of GAP holiday mercantiles, the young models are jumping around having a good measure. We get a sense of fun and playful energy from the commercial, which could draw in college students. scuttle also gives off a feel of comfort, cursory and trendy style in array for the cursory college wear. We feel that if J. Crew starts advertising with younger looking models emphasizing on rudimentary wear of a typical college student, J. Crew may have interrupt success at reaching out to the SFSU students. II. Advertising Objective Our main advertising objective is to gain attention of the college students.The goal of our advertising campaign is to get to interest for the brand and thus to encourage college student s (the target audience) to make an initial purchase of a J. Crew products. Advertisement should seek to tell the market near J. Crews products, emphasize the pure tone and fashion of the products, and last besides not least build awareness of the company. We rat typically employ original advertising strategies in order to cut through other competing advertizements. III. Situational Analysis J. Crew first de exclusivelyed in 1983 as a catalog only obtain experience by Arthur Cinader.Six years later he opened its first flagship store in South Street Seaport New York. J. Crew is Ameri quite a little clothing and accessories for men and women. They recently added several line extensions such(prenominal) as Crewcuts for children ages 2-12, J. Crew weddings and Parties, and J. Crew Collection for limited edition pieces. The retailer is know for its young and preppy fashions including jeans, khakis, and other basics that are quite pricy and targeted to young professionals. They have 300 stores cosmeawide including the website and catalog. In 2003 Millard Drexler the former CEO of Gap Inc. ecame the virgin CEO for J. Crew by compressing service, step and innovation to the next level. This caused so much controversy with the two companies, being that they are major(ip) competitors. J. Crew digressners with the best fabric mills and craftsmen such as Jack Purcell, Timex, Thomas Mason, and Red Wing to get the best quality goods. J. Crew is continuing to expand their retail series with specialty boutiques such as Mens only shops that specializes in Suiting and Madewell a modernized interpretation of an American denim label founded in 1937 which targets women ages 18-40. Although we think J.Crew does good overall, the Stonestown mall wants to gain attention of the college students because they offer a student/teacher discount. The problem is many of the college students dont shop at J. Crew because they dont know much about it. Swot Analysis J. Crew for the co llege audience Strengths over 300 stores in the United States E-commerce website (convenience) Discount sales ongoing Multiple lines for different age categories Weaknesses Too Pricey for the normal college student Targeted more for the young Business professionals No commercials aired/ Advertisements are few Opportunities Target advertisements to that particular age group Possible commercial advertisement for future Expand to new segments of the young market Threats increase competition of Gap Inc. During the recession students do not have the luxury to spend on pricey clothing Increased celebrity advertisement of competitors More discounted sales at competitors IV. Target Audience Demographics For our advertising plan we leading target young college students existent in the city. These students provide be mainly females, as college female students are more willing to pay good money for their clothing than male students.Because our target audience consists generally of young college students, most will be seen as single. The typical guttler will only make about $12,000 annually or less, most with part time jobs and attending check full time. Psychographics The psychographics of our target audience will be students living in dorms and on the campus. We will also target young adults living in apartments near college campus life. Most young students dont mind a little shopping to help them cope with a bad company or too much studying.These students will be found around the mall regularly and will be shopping at competing stores like GAP. These consumers will be living the college life, learning to be professional in aim as well as out. They should enjoy social gatherings and night events where they can argue off their style. We will target students that are frequently in search for discounts at senior high end stores, looking for long lasting quality in basic casual as well as professional clothing. They need to be able to finance their money well and buy good quality products with long durability.Profile of Typical Target Consumer Female 18-25 years old Single College education Part-time job Aware of quality & price symmetrical shopper Sociable Enjoys nightlife Active in the community Stylish/Fashionable Full-time Student V. Consumers Perceptions Our consumers perception of the brand, J. Crew, unremarkably entails the style they advertise in commercials and television. J. Crew can be seen as a style with practical women in finely cut business suits and overcoats. When most flock visualize the company they visualize classy and professional clothing.The problem is they are not seen as the standard, like Gap, for instance, they lack the basic necessities to attract young college students. J. Crew just wants to maintain its professional status, but attract a younger crowd who are establishing their position in the real world applying and interview for jobs. When walking into the store, consumers see bright lights and a clas s of fabrics and styles. The dresses range from simple around the house to dressy date-night dresses. The one-thing consumers can expect to see when entering J. Crew is the variety of clothing.Consumers can perceive clothing brands base on what they see on television, advertisements, and magazines. For instance, there was a point during the election, when Michelle Obama was exhausting all J. Crew clothing. After seeing this, consumers then compare their own lives to the prototypal Lady and the President. It gives off the intention that people wearing J. Crew are wealthy and extremely successful individuals. This perception is false because not everyone needs to be wealthy to afford this clothing. Many people are looking for a good way to be fashionable and professional at the same time.J. Crew provides high quality clothing for a good price. This store may seem more expensive, but price goes hand and hand with quality. College students can discern to buy cheaper clothes, but the y cant be guaranteed to last as long as higher quality fabrics. While, if they were to buy clothing from J. Crew, a high-end clothing company, their clothes would last longer and there would be no need for repurchasing products. According to youlookfab. com one of the customers comment on how the preppy and fashionable products were expensive, but the quality and drape were impeccable.Other opinions on J. Crew revolve around the age range of the clothing. Most people look at J. Crew as clothing for older more mature audiences. They believe it should be for women in their 40s or older. This is a common misconception as the style is in general for a professional look, but for a young professional style. Models often used in the J. Crew magazine, most recently, are younger looking professionals with a modern feel to them. The store has become more mainstream recently, but still continues to maintain innovative colors and ensemble combinations. J.Crew sustainments their nice basics an d people can often leave the house wearing their attire from head to toe. Consumers often perceive J. Crew as currently declining in quality and have problems with sizes and overall fit. As sizes and fit compare depending on the consumer, the fit would be made specifically for younger professionals. As for quality, our prices may have been declining, but our quality can be just as durable as before. As all retail stores were hit hard in the economy, many stores have decreased in overall price. Quality can often be an issue to those who have over indistinct a piece of clothing.Many customers will mention J. Crew products at a rack store or a second hand store and buy them there. Even though they are usually a few years older, they still remain in good condition as if they had never been worn. This contributes to the proof of quality as well as durability in J. Crew clothing. Consumers will always find a way to agree or disagree, but the best we can do to keep those customers conte nt is to create good quality clothing at a sufficient price, producing long lasting and stylish clothing for both professional and casual occasions. VI. The Competition Swot Analysis GAP INC. Strengths 3,143 stores in the United States 518 stores Internationally (Ireland, Canada, Japan, United Kingdom, France) Dominants clothing market clothes for the family Socially responsible campaigns VOTE, (RED) aids awareness, reducing waste, and strongly concerned about supply chain Lots of commercials aired daily Many young celebrity endorsements Multiple lines for different age groups (Banana, Piperlime, grey-haired Navy, Athleta) Weakness Consumers can view low prices as low quality products Not fashion forward for college students more concentrated on Basics Does not create a unique niche in marketOpportunities Continue to gain attention with popular celebrities amongst college age students Continue to expand on the new denim line, with high quality fabrics Started working with new upco ming designers to feature in stores at a low cost Expand accessories Threats H&M is a high threat for Gap Inc with low priced fashionable goods and widespread Competitors lowering prices due to the economical downturn Swot Analysis BCBG Max Azria Strengths orbicular womens contemporary fashion 9,000 stores over 45 countries and 5 continents Make women look and feel beautiful Recognizable brand and customer loyalty E-commerce website Specializes in fashionable business attire and special occasion dresses Mailers to customers due to in-store customer database Multiple lines for different age groups Weakness Not to many advertisements No commercials in truth pricy for college students Opportunities Expand on advertisement Expand on BCBGeneration stores (targeted to college students) and only can be found at Macys. Threats Due to the recession consumers are looking for fashionable goods at a low price at stores such as H&M, ZARA, and MANGO. Being mass distributed to chains such as Nor dstrom, Macys, and Bloomingdales where they can offer sales promotions, which will deter consumers to go to actually BCBG stores. VII. The Creative Strategy A. The Single Most Compelling Benefit Our Brand Can tornado to Our Target Consumers For J. Crew, we are using a differentiation strategy using their special student discount, which makes it unique and puts it up against regular retailers whom do not offer such discounts. J. Crew offers a special student and teacher discount of fifteen percent off of all regular priced items, sale items are not included in the discount.This offer is valid for any in-store purchase until the student graduates, and all that is needed is a student identification card. In our current economic situation today, people are more conscious with their spending and hold on to tighter budgets. Luxury clothes are not as affordable as they used to be. Most consumers perceptions of J. Crew are that it is an expensive clothing brand. They think that they get be tter deals from retailers who have the same clothes for cheaper prices. As we promote J. Crews student discount and basic clothing items, we have a particular target market in mind.We are looking at this offer as an option or alternative for example, against the retail competition. It is an offer whose benefits are best maximized around college campuses and young professional environments. The discount solves the problem for students who want a back to school shopping spree that is easier on the budget. When we look at dollar value with regards to J. Crew, it is not just the discount itself that we are looking at but also the long- bourn utilization of the back to school basic items that have multi-purpose uses.So when you think of J. Crew clothing you might want to consider it as an investment, not as an expensive luxury. After all, same with any product you consider buying, you would rather put your money on quality and dependability over a cheaper product that will not last you nearly as long. What is even better about J. Crew is that it is a long term savings on your clothing budget and it will not be as affected by rising clothing prices due to its special student discount. You get more quality per dollar with J. Crew than any other clothing store.With more quality per dollar, consumers can wear their clothes for longer and consume less clothing, which means a lot of savings on their clothing budget. Consumers will feel comfortable wearing J. Crew because they know they are wearing a luxurious brand and saving money at the same time. Now consumers do not need to shop at the cheaper retailers as often as they used to and keep their money in their wallets for much longer. B. Support Why Should College Students Shop Here? J. Crew is prominently known for being a luxurious clothing brand with higher prices.The brand features collections of mens and womens clothing, accessories, and shoes, in classic styles with a J. Crew twist. Many of the products feature l uxury materials such as Italian cashmere and leather, Czech glass buttons, and British wool. J. Crew is the perfect brand to wear every day because it does the savings for you. When buying the back to school basics, you are not only using these items for a professional setting, but also in your everyday school and recreational outfits. The average college student would not normally be interested in shopping at J.Crew, but if they are informed of the college student discount and the basic clothing items that they offer, it will be more enticing to shop there. The biggest push is raising awareness of the student discount because most students are unaware of it. Since J. Crew is not advertize often, it would be most efficient to raise awareness to college students on college campuses with flyers or online through Facebook. When they become aware, it will make them interested to see what the store sells and perhaps beguile the student to visit a local store or shop online.During a vis it in store or online, the consumer will notice the advertised Back to School Basics and special student discount emphasizing the basic clothing items. These basic clothing items will be more charitable to students who now know that they can get regular discounts on clothes that they can wear everyday for any occasion. Basic clothing items and professional items will be a great investment for the average J. Crew shopper and many others. The average J. Crew shoppers are females ranging from ages 18-49.Most of these consumers are young professionals or part of families with incomes of $60,000 and greater. The shoppers who are in the age range of 18-49 and do not necessarily have the money to regularly shop at J. Crew, should have a opportunity to purchase basic clothing items and young professional attire. The important idea of buying J. Crew clothing is that it can not only be worn on teachers and students at school or in everyday recreation, but also when you graduate and get a jo b in the real world you can still wear the clothes for casual or business attire. C.Tone of Advertising When it comes to J. Crew, consumers original thoughts are expensive, elegant, and older professional. We would like to use a tone to raise awareness to college students and young professionals that would slightly alter a consumers thoughts. The tone that we would like to use would be young, playful, trendy, and basic. The tone would push the young professional look and Back to Basics slogan around back to school shopping time. J. Crew does not have commercials so implementing commercials with a young, playful, and happy tone would be most effective.These commercials would include young, professional looking adults jumping and dancing around with popular music in the background. The actors in the commercial would be wearing a mixture of basic items and professional items that are in all different colors to make the commercial appealing to the kernel and promote the basics that peo ple may not have noticed before. The idea in this would be to make J. Crews advertising more like GAPs and have it start appealing to more of the college kids and young professionals. GAPs 2009 Holiday Commercial is the perfect example of the tone J.Crew should promote. Most importantly, these advertisements and commercials need to promote money savings (such as the student/teacher discount) and Back to School Basics. The most important things to a college student is saving money, and looking good while doing so. If J. Crew follows this newly thought out plan, they will accomplish just that VIII. The Creative Brief J. Crew, specifically at Stonestown mall, is having difficulty reaching out to the college students at San Francisco State University. J. Crew is mainly categorized as expensive and for an older professional.By changing their advertisement strategies to have a younger feel, we hope to gain awareness of college students at SFSU. Our advertising plan will focus on college s tudents and young professionals. These students will be mainly females and most will be seen as single. They will make about $12,000 annually or less, most with part time jobs and attending school full time. College students usually enjoy social gatherings and night events where they can show off their style. They are looking for long lasting quality in basic casual and trendy clothes. Most college students visualize J. Crew as classy and old professional clothing.The brand is seen as expensive but college students regard J. Crew products as being high quality. The single most compelling idea we need to communicate to our target market is that fact J. Crew allows college students to wear high quality and fashionable clothes, while saving money at the same time. J. Crew is prominently known for being a luxurious clothing brand with higher prices. But the brand has also basic clothing items for the typical college student on which they can get regular discounts. Our desired brand tem perament/tone of J. Crew should be a young, playful, and trendy