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1.

0 Executive Summary

Ralph Lauren is a global leader in the design, marketing and distribution of


premium lifestyle products including mens, womens and childrens apparel,
accessories, fragrances and home furnishings. Ralph Laurens functional benefits include
increasing the luxuriousness of your life with their high quality items. The emotional
benefits of this brand are that it increases your self-esteem and leaves you feeling high
class and classic. Ralph Laurens self-expressive benefits include its ability to allow your
self-expression to be show through your clothes while giving you a classic feel. They
claim theyre the best at designing these products, marketing them, and getting them
where they need to go. Its all encompassing. Ralph Lauren targets a more wealthy
market. Polo has made their products meant for pure luxury. According to United States
Census Data 2010 25.3% of families make $100,000 dollars or more a year. That is a
great percent rate for Ralph Lauren because it means that they can make greater affluence
out of their clothing. The graph below gives you an idea of how the top 5% of the market
is breaking away from all other percentiles with a much faster increase in income. The
biggest reasons we can sell our luxurious products at a rather high price is that this
segment is willing to spend overly high prices to wear a brand with a great brand image.

Income Distribution

Source: US Census

Polo Ralph Lauren Corporation is embarking on a major expansion of the


company in the years to come. The company has realized the market for luxury apparel is
increasing quite drastically and is aiming to be the world leader in high end apparel. The
current position of Polo Ralph Lauren Corporation gives them a great opportunity to
expand considering their high profit margins.

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2.0 Situation Analysis

In the previous years the economy has experiencing a rescission which has led many
companies into a struggling or failing market. Whereas Polo Ralph Lauren has been able to
maintain a steady increase of cash and customers even through these hard times. This is because
the depression has been focused on the lower income bracket rather than the higher income
bracket. Even though that there are struggles, luxury items and life style is still a necessity and
want. The market for luxury items is exceptionally high in the Asian market place. Ralph Lauren
wants to make a presence internationally and understands the need for a bigger international
market. Thus creating a global leader in luxury.

2.1 Market Summary

Ralph Lauren is a business that focuses on the customers. They offer clothing for all

ages. They do not segregate to who can buy their clothing. They have also grown into home

dcor. Ralph Lauren has a huge competitive market. Luxury clothing and products are a hard

market to win in. You have to compete with your competitors without setting your standards or

quality to low. For more than 34 years Ralph Laurens distinctive image has grown based on

expanding their well-known brands and products. The Company operates in three segments:

Wholesale, Retail and Licensing. Ralph Lauren has always had a great demand for their clothing

and dcor. With the great rise in internet use Ralph Lauren has used that to their ability by

creating wonderful advertisement and special offers that will raise their sales.

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2.1.1 Market Demographics

Ralph Lauran attracts a whole variety of customers. Ralph Lauren does not limit their

customers to one specific need or want. Ralph Lauren has become very know as a luxury type of

brand and is redefining American style. They offer men, women, children, baby and even home

products.

US Household Income
4.90% 3.50%
25.30% Less than $10,000
$100,00 or 8.70%
more $10,000 to $14,999
$15,000 to $24,999
9.50%
$25,000 to $34,999
$35,000 to $49,999
14.00%
14.40% $50,000 to $74,999
$75,000 to $99,999

19.80% $100,000 or more

United States Census Data

People shop at Ralph Lauren expecting to get only but the best quality of clothing. Ralph

Lauren is known for excellence in preservation, architecture and design. Ralph Lauren targets

professionals, people who are wealthy and leisure. Also people from affluent communities,

people with multiple residences and especially people who sail, ride horses and who participate

in sports such as rugby and polo.

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According to United States Demographics Profile 2012, 15-64 years of age is 66.8% of

the U.S. population. They have really have done a great job advertising for all ages through 15-

64 years of age. They have had most of their models and

website design laid out for that age market.

Below is the chart representing the percentage rates of U.S.

Age Target Percentage Growth

0-14 years: 20.1%

15-64 years: 66.8%

65 years and over 13.1%

United States Demographics Profile 2012

Ralph Lauren targets a more wealthy market. Polo has made their products meant for

pure luxury. According to United States Census Data 2010 25.3% of families make $100,000

dollars or more a year. That is a great percent rate for Ralph Lauren because it means that they

can make greater affluence out of their clothing. They do have a demand for keep building their

company image. Below is the graph that proves the need for their demand in luxury clothing

built off of US household income in 2011.

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2.1.2 Market needs

Ralph Lauren has always provided a unique,

slick and luxury items to their customers. With Ralph

Lauren their customers have been provided with quality

products that are sure one of a kind. They offer a

clothing line that not only is fashionable but is also

durable when it comes to their uses. They have offered clothing that could be worn not only for

a fashion statement but can have a significant benefit towards other uses, for example some

prefer to wear Polo when they are playing Polo or any other luxury sport.

Ralph Lauren is always trying to meet these specific market needs:

Luxury quality items

All ages have enjoyed Ralph Lauren

Home dcor

Wealthy type of Atmosphere

Sports needs

Ralph Lauren will continually work on making their products a pure luxury item for their

customers and will always work towards customer appreciation and loyalty. They are always

looking for new ways to keep their market needs met.

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2.1.3 Market Trends

Internet:

The internet has become a huge influence on businesses. The internet can provide you with

so much use-full information and now you can go shopping without ever leaving your house. As

you can see from the graph below it proves how much the internet has grown within the past

seventeen years navigators.com

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Social Media:

Social media has had such an influence on businesses as well. According to socialtimes.com
there are some statistics on how much social media has a huge significance on businesses. Here
are some statistics on social media.

50 percent of businesses in the U.S. use websites such as Twitter to connect and engage
inform existing customers
In the U.S, 55 percent of firms encourage their employees to join social networks such as
LinkedIn and Xing;
38 percent of U.S. companies dedicate up to 20 percent of their marketing budget to
business social networking activity
Globally, the survey reported a seven percent increase in the proportion of businesses
successfully recruiting new customers through social networks such as Facebook

Ralph Lauren has used their Facebook page for a great advertisement tool. Ralph Lauren has
kept up on Market trends and they will plan of keeping up with them.

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2.1.4 Market Growth

Ralph Lauren has made their own ways to continually grow here they are

**$100 invested on 3/31/06 in stock or index, including reinvestment of dividends. Index calculated on month-end
basis.

Copyright 2011 S&P, a division of The McGraw-Hill Companies Inc. All rights reserved.

Continue to Build and Extend the Brand:

Ralph Lauren Corporation is one of the world's premier brands, universally recognized and
associated with distinct design, luxury and quality. Our integrated approach to advertising
and marketing uniquely showcases the world of Ralph Lauren.

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Focus on Specialty Retail:

Our retail strategy starts with product and Ralph Lauren continues to design the best and
most sought-after products in the marketplace. We continue to increase the amount of
exclusive or limited-distribution product in our Ralph Lauren stores. By adding experience
and strength to the leadership of our specialty retail group and coupling it with the right
merchandise and marketing support, we are making significant advances in how we operate
our retail stores.

Expand International Presence:

International expansion presents a wealth of opportunity for Ralph Lauren Corporation.


Our approach to each world region is specific to its business climate and structure, while our
common goal is to broaden our reach through increasing direct brand ownership and control
with new specialty retail store openings. Our strong, flexible infrastructure allows us to
capitalize on opportunities and grow our businesses around the world.

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2.2 SWOT Analysis
Polo Ralph Laures strengths can be accentuated and further capitalized on, and the
weaknesses must be addressed appropriately. The environment outside the company contains
situations that can be used to the companys benefit. These are opportunities. The external
environment also contains possible threats that pose a danger to the company. These are threats.
To maintain the sustainability of the company, all four categories must be analyzed and acted on
to ensure the companys continued prosperity.

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2.2.1 Strengths

The wide variety of luxury goods and services offered caters to a vast segment
of ages and price ranges.

The affluence of their typical customer facilitates prestige and luxury pricing.

Their customers are very loyal to the brand; this creates repeat purchases.

The exclusive nature of the high end products caters to the elitist customer, while
the still expensively priced lower end products appeal to the newly affluent and
the strivers

The good employee relations is an asset to the company

The experience of the employees is an asset to the company

The online presence via facebook and the Ralph Lauren website is exceptional.

2.2.2 Weakness

The company cannot assure the successful implementation of their growth


strategies.
Ralph Lauren has weak distribution channels in Europe.
Ensuring the hire and retention of quality employees in expansion to foreign
geographic areas, and in domestic operations.
Ralph Lauren, himself, is getting old. Hes 72. Losing him would hurt business
terribly, as hes played an important part in the design and marketing processes.
The increasing costs of goods sold and employee compensation cut into profits.

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Ralph Lauren has exclusive relationships with certain customers on some
products. The loss or significant decline in business of these customers would
have a negative effect.
A computer systems and or website disruption would have a negative impact.
A privacy breach could damage Ralph Laurens reputation.
Their manufacturers could fail to use acceptable business practices.

2.2.3 Opportunities

There is a tremendous opportunity for growth in the retail sector.


Untapped foreign markets are another opportunity.
The procurement of manufacturing facilities could unlock further profit.
Ralph Lauren could further utilize social media to further the brand.
Acquiring competitors would allow for greater dominance.
They could branch out even further in the product world, anywhere from
collaborations with other companies to launching new products with the Ralph
Lauren stamp of luxury.
They could widen their demographic scope to babies and the very elderly if
profitable.
Ralph Lauren could further diversify their advertising to include more television ads
to further create awareness. And also targeting events at which more affluent people
will attend to promote the brand.

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2.2.4 Threats

The companys business could be adversely affected by any financial instability of


their customers.
Uncertain economic conditions could have a negative impact on major customers
and suppliers.
The absence of suitable financing, and lease properties could inhibit international
growth.
The uncertainty of weather and engineering complications on the construction of
international stores is a liability.
The companys business is subject to risks associated with importing products.
The companys business is exposed to domestic and foreign currency fluctuations.
The fluctuation of tax obligation and rates coupled with the possibility of audits in
multiple jurisdictions poses a threat.
Their business is subject to ownership changes in the retail industry.

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2.3 Competitive Analysis.
Polo Ralph Lauren (NYSE: RL) is a premier global player in the design, distribution and
marketing of lifestyle products such as mens, womens and childrens
apparel, accessories, fragrances and home furnishings. RL's product lines
range from relatively inexpensive brands (such as Chaps) to expensive,
exclusive pieces (Ralph Lauren Collection). As a result of Ralph Lauren's
wide range of brands, it faces competition in every price point from
discount to luxury (Polo).

Information on Ralph Lauren's upper tier competitors (such as Giorgio Armani and Zegna) is
difficult to obtain due to the fact that many of them are privately-held companies. Of the
publicly-owned firms, three of Ralph Lauren's close competitors are Abercrombie & Fitch
Company, Nautica (V.F. Corporation) and J. Crew Group (Polo).

J. Crew Group

J. Crew Group (JCG) is a producer and


retailer of men's, women's and children's apparel
and accessories. Its product assortment is
traditional and mid-ranged in terms of pricing.
However, it has been making an entry into the high-end market through collaborations with
luxury brands such as Mackintosh and Globetrotter. J. Crew is a smaller company than Ralph
Lauren, both in terms of sales and number of stores. In addition, J. Crew merchandise is sold
only through its own boutiques, whereas Ralph Lauren goods are sold in retailers from Macy's
Inc. (M) and Saks (SKS) in addition to its own standalone boutiques. In addition, J. Crew's
merchandise stays mainly in the mid-range level, with some expensive luxury pieces. Ralph
Lauren, on the other hand, runs the gamut from discount (Chaps) to luxury (Ralph Lauren
Collection), increasing its target demographic (Polo).

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Abercrombie & Fitch Company

Abercrombie & Fitch Company (ANF)


sells premium-priced apparel under four different
brands: Abercrombie & Fitch, Abercrombie,
Hollister and Gilly Hicks. Abercrombie and
Hollister compete with Ralph Lauren's children's
line. Abercrombie & Fitch competes with Rugby. ANF clothing is sold only through its 1,098
stores and its website. Ralph Lauren sells through retail stores and online as well as wholesale
through department stores. Both companies have a product assortment that ranges from premium
to lower-priced apparel; however Ralph Lauren's products reach the luxury market, whereas
Abercrombie & Fitch is an affordable luxury retailer, which is lower-priced than luxury goods
but more expensive than retailers such as Gap (GPS) (Polo).

Gap

Gap (GPS): GPS targets customers (15-25 year-old males and females). Gap has clothing lines
for the 25-40 year-old age group and a strong Baby Gap clothing line for toddlers. It has a much
more extensive store network throughout the U.S. and has been an
established player in the market for many years (Polo).

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V.F. Corporation

V.F. Group, which is a holding company whose subsidiaries run the


gamut from mass brands (Lee, Wrangler, Nautica) to high-end lines
(John Varvatos, Seven for All Mankind) as well as The North Face
and JanSport. Nautica has the traditional, preppy styling that is most
similar to the Ralph Lauren ethos, and the two have a common
retailer--Macy's. Although Nautica produces apparel for men and women, the women's line is
only available at the website www.nautica.com and selects Nautica outlet stores due to the line's
lower sales in relation to menswear. Nautica's products are priced to attract a mid-tier consumer.
The line does not have a high-fashion, high-priced division like Ralph Lauren does. V.F.
Corporation operates 750 for its brands throughout the world (Polo).

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Positioning Map | 5 Years Ago

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Positioning Map | Present

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2.4 Service Offering
Ralph Lauren stores offer unparalleled customer assistance and many special services.
The sales associates are very distinguished and have a vast knowledge on our products. They are
trained to cater to everyones needs and make the shopping experience one-of-a-kind. All of the
Ralph Lauren Stores have many different unique services such as: (Store Services)

o Private Wardrobe Consolations


o Private Shopping Hours
o Concierge Services
o Pet Services
o Corporate Gift Giving
o Gift Servicing
o Gift Cards
o Same-Day Delivery Service
o Monogramming and Engraving
o Expert Tailoring and Alterations
o Made-to-Measure Clothing
o Replenishment Services
o Back-to-School Wardrobe

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2.5 Keys to Success

The keys to success are to meet the demand for an upscale retail store with a very wide
selection and focused customer attention for a one-of-a-kind experience. Because Ralph Lauren
is such a well-known and large brand the keys to success is to find new ways to expand Ralph
Lauren. The key elements to the strategy are to continue to build and extend the brand, focus on
specialty retail, and expand international presence.

Continue to Build and Extend the Brand

As Ralph Lauren Corporation is already one of the worlds primer brands and universally
known, Ralph Lauren will continue to uniquely showcase the world
of Ralph Lauren. The retail stores continue shoe the physical world
of the global brand. As a specialty retail business, Ralph Lauren
looks to extend the brand to a wholesale business, merchandise mix
and excellent customer services.

Focus on Specialty Retail

The retail strategy starts with a product and Ralph Lauren continues to design the best
and most sought-after products in the marketplace. Increasing the amount of exclusive or
limited-distribution product in the Ralph Lauren stores.

Expand International Presence

International expansion is a wealth of opportunity for Ralph


Lauren. The flexible infrastructure allows capitalizing on
opportunities and growing the business around the world.

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2.6 Critical Issues
Will the customers of Ralph Lauren continue to loyally purchase and will they respond well to
Ralph Lauren extending their brand?

Will the customers continue to enjoy the exclusive and limited distribution items?

Will having Ralph Lauren expand around the world make the brand less exclusive for the current
customers?

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2.7 Porters Five Forces

As many other company in the clothing industry, Polo Ralph Lauren faces many
competition among existing companies. As a result, customers can retain a high bargaining
power, therefore, customers can buy Polos product at a better price and constant improving

style.

Potential
New
Entrants
(LOW)

Threat of Rivalry Bargaining


Substitute Among Power of
Products Competitor Buyers
(HIGH) (HIGH) (HIGH)

Bargaining
Power of
Suppliers
(MODERATE)

2.7.1 Threat of New Entrants: LOW

There will always be a threat of new entrants in the fashion retail industry, but it is
incredibly difficult and expensive to match the scale economy of Polo Ralph Lauren. The
company has dominated the market by creating and selling popular designs, and by creating
global operations of manufacturing, licensing, and retail.

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2.7.2 Rivalry among Existing Competitor: HIGH

The fashion retail industry is constantly growing with


several competitors, including Tommy Hilfiger, The Gap, Liz
Claiborne, Lacoste, and Express. Polo Ralph Lauren has
managed to retain a large portion of the market with a
competitive edge by introducing popular designs and branching
into new markets such as interior decorating. The company is
expanding and increasing sales overseas by acquiring smaller retail and manufacturing
companies around the world. The popularity of the Internet has brought more sales opportunities,
which has led to an increased development of online marketing. While entry barriers for
matching Polo Ralph Laurens large-scale operations are very high, the cost of entering new
markets is not so high in its position. This is why home furnishings,
interior decorations, and fragrances have been added to its product
mix. Licensing, opening new stores, and maintaining a global
infrastructure are also keys for future growth.

2.7.3 Bargaining Power of Buyers: HIGH

Polo Ralph Laurens customers understand that when purchasing its products, they are
buying quality merchandise and a much respected brand name at a fair cost. Sales at retail
locations attract customers with less spending power, but customers are generally willing to pay
the prices assigned to Polos products. However, in todays market, customers have a very high
bargaining power because they can choose not to buy clothing from Polo and can still find
similar products at competitors stores. High bargaining power of buyers is a result of high threat
of substitute products mentioned in 2.7.5.

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2.7.4 Bargaining Power of Suppliers: LOW

The overwhelming volume of supplies needed for Polo Ralph


Laurens operations makes it a hot customer for providers of
materials such as fabrics and packaging. Several possible providers
of cotton and other fabrics result in competition among suppliers and reasonable costs for
resources.

2.7.5 Threat of Substitute Products: HIGH

Substitution plays a large role in the scope of Polos marketing strategy. Some of its
direct competitors attempt to introduce new styles to increase demand, while other companies try
to mimic the designs created by Polo. In order to compete, Polo Ralph Lauren must remain a
respected innovator of quality fashions and expand into other markets. The Polo Ralph Lauren
brand name is part of the appeal of its products and is essential to its profitability.

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2.8 External Environment

2.8.1 Economics

Polo Ralph Lauren markets its product to a large set of consumer, ranging from
discount to luxury. In an economic downturn, richer segment of the target market have
minimal change to their behavior against clothing and fashion.

However, Polo Ralph Lauren doesnt just market to richer segment of the society. During
any economic recession, the attitude of middle and lower class changes significantly. In
the midst of a global crisis, fashion tends to drop down a few notches in priority, but the
garment industry is hardly something to ignore in times of trouble. According to the
Garment Industry Development Corporation, New Yorks fashion industry alone employs
about 100,000 people with a sales volume of $14 billion. This isnt just an issue of being
able to afford the newest Fendi clutch; the fashion industry is a massive operation
affecting several overlapping economies and controlling thousands of jobs, and the recent
crisis is taking its toll.

Fashion is suffering in large part because of its dependence on credit, which has
been hard to come by this fall. For design houses, the dilemma goes beyond meeting
payroll: The industry operates under a tight calendar of production; turning out garments
months before they hit the racks, so borrowing money for materials and factory expenses
is the norm. (Josip.)

Polo Ralph Lauren employs different strategies to adapt to economic recession. Our
strategies include (but not limited to): changes in pricing, change design theme, develop
new relationship with manufacturer and material suppliers (raw and processed).

2.8.2 Competitors

Polo Ralph Lauren markets its product to a large set of consumer, ranging from
discount to luxury. As a result of Ralph Lauren's wide range of brands, it faces
competition in every price point. Refer to section 2.3 Competitive Analysis for more
details.

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2.8.3 Social

As time proceed, younger generation take over the economy, we will have a
different set of fashion taste. Polo Ralph Lauren fully recognizes this force and constantly
made changes to the design in order to fit new generations taste.

2.8.4 Political

Political forces are as important. These following list are feasible factors which can
heavily impact our business:

- The imposition of additional regulations relating to imports or exports.

- The imposition of additional duties, taxes and other charges on imports or exports.

- Changes in social, political and economic conditions or terrorist acts that could result in
the disruption of trade from the countries in which our manufacturers or suppliers are
located.

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2.9 Macro-Environment

Ralph Lauren is a very competitive brand in this


industry. Ralph Lauren has an undeniable image and high quality
of standards for customer stratification and brand loyalty. Some
of the Ralph Lauren biggest public competitors are Abercrombie
& Fitch Company (AFN), Nautica and J Crew Group (JCG) since
some of the companies below information is hard to obtain
because they are privately owned. Both companies Ralph Lauren
and Abercrombie & Fitch Company (AFN) companies have a product assortment that ranges
from premium to lower-priced apparel; however Ralph Lauren's products reach the luxury
market, whereas Abercrombie & Fitch is an affordable luxury retailer, which is lower-priced
than luxury goods but more expensive than other retailers. Nautica has the traditional, preppy
styling that is most similar to the Ralph Lauren ethos, and the two have a common retailer--
Macy's.
Although Nautica produces apparel for men and women, the women's line is only
available on their website and selects Nautica outlet stores due to the line's lower sales in relation
to menswear. Nautica's products are priced to attract a mid-tier consumer. The line does not have
a high-fashion, high-priced division as Ralph Lauren does in this industry. And J Crew Group
(JCG) J. Crew merchandise is sold only through its own boutiques, whereas Ralph Lauren goods
are sold in stores and online through retailers from Macy's and Saks in addition to its own
standalone boutiques. In addition, J. Crew's
merchandise stays mainly in the mid-range level,
with some expensive luxury pieces

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3.0 Marketing Strategy
Ralph Lauren has three main marketing strategies. Keep customer services and customer
satisfaction, Target demographics and their environment, and keep the brand. The first strategy is
to keep their customers happy and to keep appealing to the customers. Ralph Laurens products
must appeal to a broad range of customers worldwide.

The second strategy is to target demographics and their environments. Ralph Lauren chooses to
keep their target markets very broad. It reflects the wide range of stores the brand can be
purchased from. The target market consists of the whole family. They have brands for the baby,
young girl, teenager, mother, father, grandmother, grandfather and every relative in-between.

The third strategy is to keep the brand. The brand focuses on business casual attire for the
modern American family. The brand focuses on the world of Ralph Lauren. They want to keep
the original symbol of the modern preppy lifestyle.

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3.1 Mission Statement
Redefine American style, provide quality products, create worlds, and invite people to
take part in our dreams.

Our mission statement agrees with how we run our company. Ralph Lauren is known as a
leader in the design, marketing, and distribution of premium lifestyle products. We are the
innovators of lifestyle advertisements that tell a story and the first to create stores that encourage
customers to participate in that lifestyle. The products we offer can make your entire world
Ralph Lauren with the apparel, home, accessories and fragrances.

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3.2 Value Proposition
Ralph Lauren is a global leader in the design, marketing
and distribution of premium lifestyle products including mens,
womens and childrens apparel, accessories, fragrances and
home furnishings. They propose they are the global leader in the
world of luxury lifestyle products that include clothes,
accessories, fragrances, and home furnishings.
Ralph Laurens functional benefits include increasing the
luxuriousness of your life with their high quality items. The emotional benefits of this brand are
that it increases your self-esteem and leaves you feeling high class and classic. Ralph Laurens
self-expressive benefits include its ability to allow your self-expression to be show through your
clothes while giving you a classic feel. They claim theyre the best at designing these products,
marketing them, and getting them where they need to go. Its all encompassing
(Ralph Lauren.com).

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3.3 Customer Experience

3.3.1 The In-store Customer Experience

Ralph Lauren stores offer unparalleled customer assistance and a unique set of special
services. Our sale associates are distinguished for their courteous manner and vast knowledge of
our products and are trained to individualize each shopping experience to suit your needs. We
invite you to enjoy countless store services. From the beautiful storefront to the amazing
customer service, going to a Ralph Lauren store is compared to pampering yourself. With Private
Wardrobe Consolations, Private Shopping hours, Concierge Services, Pet Services, Corporate
Gift Giving, Gift Services, Gift Cards, Monogramming and Engraving, Expert Tailoring and
Alterations, and Made-to-Measuring Clothing. We make sure our storefronts embody everything
we are, our stores are very neat and beautifully decorated on the inside. Everything is to make
everyones experience amazing and invite people into our
world.

3.3.1.1 Private Wardrobe ConsultationsOur sales


associates are trained to work with you to help build
out your wardrobe. We can create entire looks for
youfrom the basic components to the finishing
accessoriesas soon as our collections arrive in our stores. And with our online and in-
store Trunk Show events, we can even help you select items from upcoming collections
even before they hit the sales floor.

3.3.1.2 Private Shopping Hours Our sales associates are happy to arrange shopping
hours to fit your schedule. They will also come to your home or office for special
tailoring appointments.

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3.3.1.3 Concierge Services To make your shopping experience truly relaxing and
enjoyable, our sales associates would be pleased to
bring snacks or refreshments to you or your
children as you shop. And, as in a fine hotel, our
sales associates are also on hand to assist you with
a number of needs you may have outside of our
stores, such as making restaurant or salon
reservations. Because our goal is to provide the ultimate,
personalized shopping experience, these services are
always offered.

3.3.1.4 Pet ServicesAll Polo Ralph Lauren retail stores


are pet-friendly. We will be happy to provide your pet
with a gourmet treat in the store, or take them for a walk while you shop.

3.3.1.5 Corporate Gift GivingOur staff is ready to partner with your company to
deliver personal and unforgettable gifts from our vast selection of home furnishings,
clothing and accessories.

3.3.1.6 Gift ServicingOur sales associates will provide gift ideas for any occasion,
tailored to your preferences. We also offer signature gift packaging for any purchase at
our store.

3.3.1.7 Gift CardsIdeal for any occasion, our gift certificates


are honored at all Ralph Lauren, Rugby, RRL and Polo Ralph
Lauren Factory Stores in the U.S. and Puerto Rico and at
RalphLauren.com. They may be purchased in person at any
location, online at RalphLauren.com or by phone from any Polo

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Retail store.
3.3.1.8 Same-Day Delivery Service After shopping at any of our Polo Ralph Lauren
stores theres no need for you to lug your bags around. Let us deliver them to your home
or hotel. Please contact the individual store for any restrictions that may apply.

3.3.1.9 Monogramming or Engraving We are happy


to personalize your purchase by monogramming your
sheets and towels or engraving a sterling card case, for
example. Contact customer support or the store nearest
you for more information.

3.3.1.10 Expert Tailoring and Alterations Our sales


associates are trained to ensure the proper fit and shape of every garment, whether you
are altering a new purchase or updating a Ralph Lauren classic. Each store can arrange a
fitting to suit your schedule. Contact customer support or individual stores for more
information.

3.3.1.11 Made-to-Measure Clothing Let our


mens clothing sales associates take you through our
vast selection of fabrics and silhouettes to create
tailored classics with custom details. Contact
customer support to find the locations offering this
service. New menswear fabrications and silhouettes
are featured twice a year during trunk shows at
select locations, and our made-to-measure service is available year-round. Check Store
Events or ask the stores nearest you for dates and details.

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3.3.1.12 Replenishment ServicesWhen you purchase items that need occasional
replenishment, such as hosiery, T-shirts or yearly agenda pages, you may request
assistance with our replenishment services and a sales associate will contact you and send
refills for any of our product lines.

3.3.1.13 Back-to-School Wardrobe Let our sales associates create looks for your
childs wardrobe needs. We have Store Events in select stores that make creating your
childrens school wardrobe an
annual experience to look forward
to. We can also help you with
wardrobe basics for summer camp
and well even sew your childs
name labels in those purchases so
you dont have to.

3.3.1.14 Eco-Friendly Tote bags Exclusively available at Polo Ralph Lauren Factory
Stores the organic cotton tote bag is re-usable, durable and encourages conservation by
reducing waste and saving trees. 100% of the net proceeds from
the sale of the tote will be donated to the Polo Ralph Lauren
Foundation for environmental initiatives.

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3.3.1.13 The Online Customer Experience-- RalphLauren.com takes participation to a new
level as a rich and exciting destination. When shopping online at Ralph Lauren you are
transported into the world of Ralph Lauren. You can shop for great products for yourself, your
home, learn about adventure, style and culture in RL Magazine and on RL television. You can
also find the one-of-a-kind vintage pieces and exquisite gifts. Not only can you shop for products
online you can also design your own adding your own flair to Ralph Lauren. For certain shirts
and hats you can chose the colors of the shirt and the color of the famous polo pony. You can
also have your initials embroidered on for an extra special touch. RalphLauren.com shows you
the world of Ralph Lauren and how everyone can be a part of their world and their vision.

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3.4 Marketing Objectives

Polo Ralph Laurens marketing objectives for the next three years of operation include:

Improve profitability by 15% annually


Grow revenues by 13.7% annually
Increase market share to 20% of total luxury apparel
Build and operate 75 new retail stores
Open website access to 5 new countries annually
Increase foreign markets by 200%
Focus on bringing 1/3 of total market to Asian countries(eurbanista.com)
Repurchase company brands currently outsourced to 95% ownership.

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3.5 Financing Objectives

Polo Ralph Lauren Corporation will have the following set of goals, with time frames ranging
from annually to triennially, to assure that our marketing plan for the term of 2013-2015 is
successful:

By the year 2013 annual revenues have reached $6.4 billion.


By the year 2014 annual revenues have reached $7.2 billion.
By the year 2015 annual revenues have reached $8.2 billion.
Expense a total of $760 million in promotion for the next three years.
Expense $1.8 billion towards company expansion projects throughout the following three
years.
Maintain operating expenses at $2.5 billion.
Grow annual profitability to $1.1 billion by 2015
Acquire no loans leading to a total debt of $0 (investing.businessweek.com)

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3.6 Target Market

Since 1967, our distinctive brand image has been consistently developed across an
expanding number of products, price tiers and markets. Our products, which include apparel,
accessories (including footwear) and fragrance collections for men and women as well as
Children swear and home furnishings, comprise one of the world's most widely recognized
families of consumer brands. Polo Ralph Laurens target market covers a great range of
consumers income as well as age demographic.

Our primary target markets include:

- Single Men and Women of high income bracket ($100,000 a year or higher):

Men and Women of this income bracket inarguably have more to spend
on clothing. They also have a higher sense of fashion and care more about their
looks. Generally, people of this bracket will need the following qualities: sharp,
modern, classic look, handmade, luxury. With a sharp, modern attitude, Ralph
Lauren Black Label (Men) is the essence of sophisticated dressing for men.
Ralph Lauren Purple Label (Men) will deliver the time-honored tradition of
bespoke clothing and haberdashery. Ralph Lauren Blue
Label (for women) will deliver modern and eclectic with a
sexy, youthful spirit look; while Black Label (for women) is the
essence of sleek, modern sophistication for women.

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- Single Men and Women of moderate income bracket ($99,999 a year to $44,000):

Men and Women of this income bracket might have less to spend compare to
higher income bracket but they inarguably can. People in this bracket can afford to live a
decent life; therefore, they have a high sense of fashion and want to personalize their
style. We will concentrate on delivering the following qualities: Authentic, iconic, classic
styles, downtown styles, sporting looks, polished, and a more affordable price. Polo
sportswear and tailored clothing present a one-of-a-kind vision of menswear that is
stylish, timeless and appeals to all generations of men. Earthy and unpretentious with an
emphasis on rugged individualism, Denim & Supply for men and women is Ralph
Lauren's nod to a generation that prides itself on creating a totally personal style.

- Family with children and baby (of both moderate and high income bracket):

Parents of this target market wont have children unless they knew they can give
them a decent life. Parents will try everything they could to give them an equal if not
better childhood. Children of these families will inarguably have access to variety of
goods, and clothing is a big spending factor. Ralph Lauren Childrens wear is designed to
reflect the timeless heritage and modern spirit of Ralph Lauren's collections for men and
women. Signature classics, including iconic polo knit shirts and luxurious cashmere cable
sweaters, are interpreted in the most sophisticated and vibrant colors.

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3.7 Positioning

External Competition:

Polo Ralph Lauren Corporation is currently positioned through most of the middle to
high end luxury apparel market. Competitors in the top right corner of the present positioning
quadrant below are our largest concern consisting of J. Crew, Liz Claiborne, Burberry, and
Brooks Brothers. The position is one with constant pressure from other companies trying to gain
a portion of the wealth in this high income market. Brooks Brothers is currently receiving a large
portion of our suit sales because of a lower price comparable product and we are currently
developing suits in a similar price range in response. Brands in the other three quadrants pose a
future threat if a close watch isnt kept but currently our main focus are our closest rivals.

Polo Ralph Lauren will focus on keeping a brand with a high status well many of its
current competitors are focusing on bringing prices down with quality surely dropping alongside.
Tommy Hilfiger is currently stained with a bad brand image from their failure to maintain a high
end view but may once again take a chunk of our market as they restructure the company. The
future looks bright for Polo Ralph Lauren as we are well placed to take to expanding the
company to a brand known globally for its classicly retro luxury lines of apparel as well as many
other high end products. The company will eventually hold a majority of the upper right hand
corner of the quadrant as seen in the Future Positioning Map below with our quality never
reaching below

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Internal Competition:

Internaly Polo Ralph Lauren has slight competition between a small number of its brands.
Chaps, focusing on a price conscience consumer, and Polo, social conscience customer, will see
slender sales decreases from one another. The conflict is nothing that would disrupt the company
but one simple solution is to place Polo at a slightly higher price but the loss of price conscience
customers would be too great of a risk.

Polo Ralph Lauren Corporation feels that the placement of its brands has been done with
the utmost precision in order to forsee its own compition. Therefore the future of the brands
already in place at Polo Ralph Lauren will remain constant. An addition of a new line may be set
in place bridge gaps in the market.

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Positioning Map | Present

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Positioning Map | Future

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3.8 Strategy Pyramid
Ralph Lauren will continue to be a model to allow a company or organization to focus limited
resources on the best opportunities to increase sales and thereby achieve a sustainable
competitive advantage.

Marketing

Mix

Market Strategy

Business Goals

The three most important parts of the strategy pyramid are the following:

1. Business Goals: Customer Services and Customer Satisfaction


Our success depends in large part on our ability to originate and define fashion
product and home product trends, as well as to anticipate, gauge and react to changing
consumer demands in a timely manner. Our products must appeal to a broad range of
consumers worldwide whose preferences cannot be predicted with certainty and are
subject to rapid change. We cannot assure that we will be able to continue to develop
appealing styles or successfully meet constantly changing consumer demands in the
future. In addition, we cannot assure that any new products or brands that we introduce
will be successfully received by consumers.

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2. Market Strategy: Target Demographics and their Environment
Polo Ralph Lauren itself does not really have a place within the luxury market. It
tends to be associated with other brands sold in mainstream department stores.
However, Polo positions itself slightly above most of those other brands through its
quality product and respected heritage. It also positions itself as the perfect brand for
the male aspirational consumer. The current Polo Ralph Lauren Target market is very
broad which reflects the wide range of stores the brand can be purchased from. The
target customer can range from the aspirational customer buying a polo at his local
Macys to a member of a beyond money household purchasing a pair of Nantucket
Red shorts at Saks Fifth Avenue. Similarly, the target market consists of males from
high school age as well as their father, grandfather, and every male relative in
between.

As the American economy begins its recovery and employment rates increase, the
menswear market is predicted to markedly improve with it. According to IBMs
Retail Analytics division, menswear sales are expected to grow by 8.3% in the first
quarter compared to 2.4% for womens apparel (Berk). Jill Puleri who works as a
global retail leader at IBM also strongly believes that men are seeking a more
polished look in favor of the business casual look that has been popular in offices
over the past decade (Berk).

3. Marketing Plan: Keeping the Brand


The brand currently focuses on business casual attire for the modern American
man. Polo Ralph Lauren is viewed as the iconic brand from Ralph Lauren that is
accessible and serves as an entry point for most male consumers into the Ralph
Lauren Empire. The annual report describes Polo Ralph Lauren as the following:
Authentic and iconic. Polo is the original symbol of the modern preppy lifestyle.

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3.9Marketing Mix
Ralph Lauren has always stood for providing quality products, creating worlds and
inviting people to take part in our dream. We were the
innovators of lifestyle advertisements that tell a story and
the first to create stores that encourage customers to
participate in that lifestyle. And satisfying customers on
an international scale to achieve our goals
(global.ralphlauren). Ralph Lauren has gone above and
beyond to create these experiences for his company and to
help distinguish his competitors.

3.9.1 Product Strategy/ Services Strategy


Since 1967, our distinctive brand image has been consistently developed across an expanding
number of products, price tiers and markets. Our products, which include apparel, accessories
(including footwear) and fragrance collections for men and women as well as Children swear
and home furnishings, comprise one of the world's most widely recognized families of
consumer brands. Reflecting a Distinctive American perspective, we have been an innovator
in aspirational lifestyle branding and believe that, under the direction of internationally
renowned designer Ralph Lauren, we have had a considerable influence on the way people
dress and the way that fashion is advertised throughout the world. We combine consumer
insight with our design, marketing and imaging skills to offer, along with our licensing
alliances, broad lifestyle product collections with a unified vision:
- Apparel: Products include extensive collections of men's, women's and children's clothing;

- Accessories: Products encompass a broad range, including footwear, eyewear, watches,


jewelry, hats, belts and leather goods, including handbags and luggage;

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- Home: Coordinated home products include bedding and bath products, furniture, fabric and
wallpaper, paint, tabletop and giftware; and

- Fragrance: Fragrance products are sold under our Big Pony, Romance, Polo, Lauren,
Safari, Ralph and Black Label brands, among others.

Ralph Lauren Purple Label: In the time-honored tradition of bespoke clothing and
haberdashery, Ralph Lauren Purple Label presents a level of
sartorial craftsmanship unparalleled today. Refined suitings are
hand-tailored from an exclusive selection of the world's finest
fabrics. Custom-tailored Made-to-Measure suits are hand-
constructed by artisans trained in the art of handmade clothing.
Sophisticated sportswear and dandy-inspired dress furnishings are
designed with meticulous attention to every detail. Dedicated to the highest level of quality
and elegance, Ralph Lauren Purple Label is the ultimate expression of luxury for the modern
gentleman. Ralph Lauren Purple Label also offers bench made footwear and Made-to-Order
dress furnishings, accessories and luggage, as well as hand monogramming and custom
engraving services of the highest quality. Ralph Lauren Purple Label is available in Ralph
Lauren stores around the world, in an exclusive selection of the finest specialty stores, and
online at RalphLauren.com.

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Ralph Lauren Men's Black Label: With a sharp, modern attitude, Ralph Lauren Black
Label is the essence of sophisticated dressing for men. Classic
suitings feature razor-sharp tailoring and dramatically lean
silhouettes. Luxe, racy sportswear is crafted from the finest fabrics
and designed with subtle references to technical performance wear.
Ultra-stylish yet timeless, the Black Label collection is sleek, bold
and masculine. Ralph Lauren Black Label is available in Ralph
Lauren stores around the world, a limited selection of specialty
stores and better department stores and online at RalphLauren.com.

Polo Ralph Lauren: Authentic and iconic, Polo is the original symbol of the modern preppy
lifestyle. Combining Ivy League classics and time-honored
English haberdashery with downtown styles and All-American
sporting looks, Polo sportswear and tailored clothing present a
one-of-a-kind vision of menswear that is stylish, timeless and
appeals to all generations of men. Often imitated but never
matched, Polos signature aesthetic - along with our renowned
polo player logo - is recognized worldwide as a mark of
contemporary heritage excellence. Polo is available in Ralph
Lauren stores around the world, better department stores, select specialty stores and online
atRalphLauren.com.

Lauren for Men: Classic and polished, Lauren for Men conveys a spirit of tradition with a
contemporary attitude. A complete collection of mens tailored clothing, including suits,
sport coats, dress shirts, dress pants, tuxedos, topcoats and ties, the Lauren men's line offers
the sophisticated spirit and preppy heritage of Ralph Lauren menswear at a more accessible
price point. A soft, natural shoulder and modern construction details ensure elegant styling
with superior comfort and the integrity of a well-made garment. Lauren for Men is available
at select department stores

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Ralph by Ralph Lauren: Superior fabrics and a precise, impeccable construction define the
distinguished aesthetic of the Ralph by Ralph Lauren collection for men. Suit separates, sport
coats, vests and topcoats are all fashioned with the hallmarks of better men's suitings, from
half-canvas jacket constructions and high-quality Bemberg linings to hand-finished seams,
felled cuffs and hems and reinforcements at natural points of wear. Timeless and
unmistakably Ralph Lauren, the Ralph by Ralph Lauren collection offers refined luxury at an
excellent value. Ralph by Ralph Lauren is available exclusively at Dillard's stores.

Ralph Lauren Women's Collection: Each runway season, Ralph Lauren's most dramatic
vision of women's fashion is presented to the world. Timeless and
sophisticated, Womens Collection reflects Ralph Lauren's definitive
design philosophy in its groundbreaking juxtapositions of feminine
glamour with impeccable tailoring once found only in menswear.
From exquisite hand-embroidered evening gowns worn on the red
carpet to luxurious hand-finished cashmere tweed suitings to chic
vintage denim inspired by rustic Americana, Women's Collection is
the epitome of modern, rarefied fashion as only Ralph Lauren can
express it. Ralph Lauren Women's Collection is available in Ralph Lauren stores around the
world, in an exclusive selection of the finest specialty stores, and
online at RalphLauren.com.

Ralph Lauren Women's Black Label: Black Label is the


essence of sleek, modern sophistication for women. Proportions
are chic and dramatic, ranging from mens wear inspired
silhouettes to shimmering and feminine eveningwear. Fabrics are
ultra-luxe and textural, color statements are rich and striking, and
racy technical references infuse this glamorous collection with a bold, sexy edge. Black
Label is offered in Ralph Lauren stores, designer boutiques, fine specialty stores, better
department stores and online at RalphLauren.com.

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Ralph Lauren Blue Label: Modern and eclectic with a sexy, youthful spirit, Blue Label
embodies the iconic Ralph Lauren sensibility in its mix of vintage Ivy League prep, heritage
equestrian, romantic bohemian and rugged Western inspirations. Unmistakably Ralph Lauren
in its elegance and sophistication, Blue Label defines a fresh, free-spirited femininity. Blue
Label is offered in Ralph Lauren stores around the world, better department stores and online
at RalphLauren.com.

Lauren by Ralph Lauren: Lauren translates the sophisticated luxury of Ralph Lauren
women swear into an affordable wardrobe for every occasion. From timeless essentials with
special finishing touches to polished silhouettes with a chic, modern spirit, Lauren maintains
an elegant, feminine heritage while making strong seasonal fashion statements. Lauren
Active infuses a fashion sensibility into practical sports apparel for golf, tennis, yoga and
weekend wear. Lauren Jeans Co. presents a fresh perspective on denim with a breadth of
exceptional styles and a complementary collection of sportswear items. Lauren Handbags
and Small Leather goods were introduced in the fall 2010 season, adding to a wide range of
accessories offerings from Lauren, including belts, scarves, gloves, footwear and jewelry.
Lauren offers a range of true, consistent fits from Petites to Women's sizes. Lauren is sold in
select department stores in the U.S., Europe, Canada and Mexico. Lauren is also available
online at RalphLauren.com.

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Pink Pony: Established in 2000, Pink Pony is
Polo Ralph Lauren's worldwide initiative in the
fight against cancer. Pink Pony supports
programs for early diagnosis, education,
treatment and research, and is dedicated to
bringing patient navigation and quality cancer
care to medically underserved communities. A
percentage of sales from all Pink Pony products benefit the Pink Pony Fund of the Polo
Ralph Lauren Foundation. Pink Pony consists of feminine, slim-fitting women's sportswear
and accessories crafted in luxurious fabrics. From hooded sweatshirts and cotton mesh polos
to canvas tote bags and cashmere yoga pants, all Pink Pony items feature our iconic pink
Polo Player - a symbol of our commitment to the fight against cancer. Pink Pony is available
at select Ralph Lauren stores and online at RalphLauren.com. Pink Pony was introduced at
Bloomingdale's in October 2009, and is available on select occasions. To learn more about
Pink Pony and Polo Ralph Lauren's other philanthropic efforts, please visit
RalphLauren.com/Philanthropy.

RRL: RRL captures an authentic American spirit with a focus on integrity, character and
timeworn charm. Founded in 1993 and named after Ralph and Ricky Lauren's "Double RL"
ranch in Colorado, RRL offers a mix of selvage denim, vintage apparel and accessories and
cool, rugged sportswear with roots in work wear and military gear. With denim at the heart of
the brand, RRL is dedicated to time honored details and the highest quality workmanship -
from ring-spun long-staple cotton yarns to traditional dyeing techniques to hand applied
artisanal finishes that result in one-of-a-kind, exceptionally durable pieces. Exclusive denim
fabrics and rare limited editions have attracted a loyal following among collectors of special
clothing. In Spring 2010, RRL launched womens wear with the same vintage heritage. RRL
is available exclusively at RRL stores and select Ralph Lauren stores.

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RLX: Created to answer the demand for superior high-performance outfitting, RLX for men
and women unites the highest standards of luxury, technology and style. From cutting-edge
functional gear for professional athletes to exceptionally luxe lifestyle apparel for modern
living, RLX defines the next evolution of design with a philosophy focused on purity of
form, unrivaled construction techniques and the world's most innovative fabrications. The
RLX line is available around the world at select Ralph Lauren stores, top specialty and
department stores and online at RalphLauren.com.

Ralph Lauren Denim & Supply: Earthy and unpretentious with an emphasis on rugged ind

ividualism, Denim & Supply for men and women is Ralph Lauren's nod to a generation that
prides itself on creating a totally personal style. Rooted in genuine denim, with an emphasis
on "found" pieces a distressed pair of jeans, a faded T-shirt, a worn denim jacket
Denim & Supply finds inspiration in iconic Ralph Lauren sensibilities, from Navajo to
nautical to surplus. Its authentic spirit is rooted in how the elements are put together:
eclectically, naturally and effortlessly. Denim & Supply will be available in the Fall 2011 at
select department stores around the world.

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Polo Jeans Co.: In 1996, Ralph Lauren launched Polo Jeans Co. for men and women,
combining a heritage philosophy with a fresh, irreverent spirit. With a focus on exceptional-
quality denim - most notably the use of time-honored manufacturing techniques and pure
indigo dyes - Polo Jeans Co. denim and sportswear collections embody authentic American
style with a design aesthetic that ranges from vintage and iconic to bold, modern and urban.
Polo Jeans Co. is available in Asia and Europe.

Golf: Tested and worn by top-ranked professional golfers,


Polo Golf for men and Ralph Lauren Golf for women
define heritage excellence in the world of golf. With a
sharpened focus on the needs of the modern player but
always rooted in the rich design tradition of Ralph Lauren,
the Golf collections combine state-of-the-art performance
wear with luxurious finishing touches for collections that
travel effortlessly between the course and the clubhouse.
The RLX Golf collection is ultramodern, graphic and
dedicated to performance-driven design. From progressive
fits and sophisticated styles to the most technologically advanced fabrics available, RLX golf
is the ultimate in functional luxury. Polo Ralph Lauren is proud to sponsor Tom Watson,
Davis Love III, Jonathan Byrd, Morgan Pressel, Luke Donald, Webb Simpson, Matteo
Manassero, Billy Horschel, Ben Martin and Charles Howell III. The Polo, Ralph Lauren and
RLX Golf collections are available in select Ralph Lauren stores, the most exclusive private
clubs and resorts and online at RalphLauren.com.

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Rugby: Launched in 2004, Rugby translates Ralph
Lauren's legacy of authentic prep into an eclectic,
irreverent collection for young men and women. Cool
and rebellious, vintage varsity and heritage classics are
reinvented with a chic downtown flair and playful, sexy
vibe for an individualistic approach to personal style.
Iconic logos, vintage patches and spirited crests give
Rugby a bold, one-of-a-kind edge. The Rugby collections are available at Rugby stores
throughout the United States and at Rugby.com. In the fall 2010, the first international Rugby
store was introduced in Tokyo, Japan.

Ralph Lauren Childrens wear: Ralph Lauren Childrens wear is designed to reflect the
timeless heritage and modern spirit of Ralph Lauren's collections for men and women.
Signature classics, including iconic polo knit shirts and luxurious cashmere cable sweaters,
are interpreted in the most sophisticated and vibrant colors. Fashionable styles are inspired by
Ralph Lauren's unique vision each season from All-American sportswear with preppy and
equestrian inspirations to tailored and elegant ensembles for special occasions. Ralph Lauren
Childrens wear is available in a full range of sizes for children, from Layette, Infant and
Toddler to Girls size 16 and Boys size 20. Ralph Lauren Childrens wear can be found in
select Ralph Lauren stores, better department stores and online at RalphLauren.com.

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Accessories (including Footwear): Ralph Lauren
accessories for men and women reflect the distinctive
design philosophies known throughout the world of Ralph
Lauren and represent a continuous dedication to
impeccable craftsmanship and iconic beauty. Ralph
Lauren accessories for women capture a wide array of
timeless styles, from a glamorous handmade alligator
Ricky Bag that takes up to 12 hours to craft to weathered
canvas saddle bags with authentic equestrian hardware to
vintage luggage-inspired handbags that recall the golden
age of travel. Ralph Lauren's signature motifs can be found throughout - from jockey-print
scarves, riding boots with equestrian hardware and vintage aviator sunglasses to striking
diamante evening shoes, romantic ruffled scarves and antique, one-of-a-kind belts and
jewelry.

Ralph Lauren accessories and dress furnishings are a man's most refined finishing
touch. Iconic and innovative neckties, which launched the Polo brand in 1967, are woven
from the finest silks. Footwear ranges from velvet monogrammed slippers and bench made
dress shoes to hand-sewn penny loafers and rugged suede and shearling duck boots.
Handcrafted luggage and leather goods combine handsome sophistication with functionality.
Each accessory is meticulously designed to complement Ralph
Lauren's menswear collections - from vintage-inspired
eyewear and Savile Row-inspired haberdashery to sleek silver
engraved cuff links and engine-turned belt buckles to luxe
cashmere scarves and hand-sewn shearling gloves. Ralph
Lauren accessories are available in Ralph Lauren stores, select
specialty stores and online at RalphLauren.com.

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Ralph Lauren Watches and Fine Jewelry: In 2008, Ralph
Lauren launched his premier collection of watches in partnership
with internationally renowned luxury group Compagnie
Financiere Richemont SA ("Richemont"). The three timepiece
collections - the iconic Ralph Lauren Stirrup, the refined Ralph
Lauren Slim Classique and the performance-inspired Ralph
Lauren Sporting - embody Ralph Lauren's passion for impeccable
quality and exquisite design. Ralph Lauren timepieces feature the
finest in Swiss Made manufacture movements and the world's most luxurious materials -
from pure platinum and polished 18-carat gold cases to enamel dials, traditional guilloche
patterns and full-cut diamonds. Ralph Lauren Watches are available at select Ralph Lauren
stores around the world and only the finest watch retailers.

Fragrance: In 1978, Ralph Lauren expanded his lifestyle brand to encompass the world of
fragrance, launching Lauren for women and Polo for men. Since then, Ralph Lauren
Fragrance has captured the essence of Ralph Lauren's men's and women's brands, from the
timeless heritage of Lauren and Polo to the sophisticated beauty of Polo Black for men and
Romance for women to the modern, fresh Ralph fragrances for her, designed to appeal to a
younger audience. Women's fragrances include Safari, Polo
Sport, Ralph Lauren Blue, Lauren, Romance, the Ralph
Collection, Notorious and Love. Men's fragrances include
Safari, Polo Sport, Polo Blue, Romance, Romance Silver,
Purple Label, Explorer, Polo Black, Double Black and the Big
Pony Collection. Ralph Lauren fragrances are available in
department stores, specialty and duty free stores, perfumeries,
select Ralph Lauren stores and our domestic
RalphLauren.com Internet site.

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Ralph Lauren Home: As the first American fashion designer to create an all-encompassing
collection for the home, Ralph Lauren presents home furnishings and accessories that reflect
the enduring style and exquisite craftsmanship synonymous with the name Ralph Lauren.
Whether inspired by time-honored tradition, the utmost
in modern sophistication or the beauty of rare objects
collected around the world, Ralph Lauren Home is
dedicated to only the finest materials and the greatest
attention to detail for the ultimate in artisanal luxury.
The collections include furniture, bed and bath linens,
china, crystal, silver, decorative accessories, gifts,
garden and beach, as well as lighting, window
hardware, fabric, trimmings, wall covering and area rugs. Ralph Lauren Home offers
exclusive luxury goods at select Ralph Lauren stores, trade showrooms and online at
RalphLauren.com. The complete world of Ralph Lauren Home can be explored online at
RalphLaurenHome.com.

Lauren Home: Lauren Home presents a signature design sensibility that combines heritage
elegance with a fresh, modern flair. Finely crafted and highly accessible for any well-
appointed home, Lauren Home offers a wide array of collections that range from classic to
modern, including bedding, bath, furniture, tabletop, gifts, decorative accessories, area rugs
and lighting. Launched in 2007, Lauren Spa offers a certified collection of 100% organic
bedding in all eco-friendly packaging. Lauren Home is available at select department stores,
home specialty stores and online at RalphLauren.com. Information on Lauren Spa is
available at RalphLauren.com/Spa.

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Ralph Lauren Paint: Introduced in 1995, Ralph Lauren Paint offers exceptional-quality
interior paint ranked high in the industry for performance. Inspired by classic and modern
lifestyles from the world of Ralph Lauren, Ralph Lauren Paint features a signature palette of
over 500 colors and a collection of unique finishes and innovative
techniques. An extension of the Ralph Lauren Home lifestyle,
Ralph Lauren Paint is an attainable product designed to reach a
selective audience. Ralph Lauren Paint is offered at select specialty
stores. The complete color palette, paint how-tos and a guide to
professional painters are online at RalphLaurenPaint.com.

Club Monaco: Founded in 1985, Club Monaco is an international destination for affordable,
stylish luxury. Each season, Club Monaco designs, manufactures and markets its own
clothing and accessories for men and women, offering key fashion pieces with modern, urban
sophistication and a selection of updated classics - from the perfect white shirt and black
pencil skirt to refined suiting and Italian cashmere. The brand's signature aesthetic is defined
by clean, contemporary design and a palette of versatile neutrals infused with pops of vibrant
colors. Club Monaco apparel and accessories are available exclusively at Club Monaco stores
around the world.

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Global Brand Concepts

American Living

Launched exclusively at JCPenney in February 2008,


American Living offers classic American style with a fresh,
modern spirit and authentic sensibility. From everyday
essentials to special occasion looks for the entire family to
finely crafted bedding and home furnishings, American
Living promises stylish clothing and home products that are exceptionally made and offered
at an incredible value. American Living is available exclusively at JCPenney and JCP.com.

Chaps

Chaps translate the classic heritage and timeless aesthetic of Ralph Lauren into an accessible
line for men, women, children and the home. From casual basics designed for versatility and
ease of wear to smart, finely tailored silhouettes perfect for business and more formal
occasions, Chaps creates interchangeable classics that are both enduring and affordable. The
Chaps men's collection is available at select department and specialty stores. The Chaps
collections for women, children and the home are available exclusively at Kohl's and
Kohls.com.

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3.9.1.1 Service Strategy
Ralph Lauren stores offer unparalleled customer assistance and a
unique customer special services. Sales associates are
distinguished, courteous manner and vast in knowledge of
products to have a individualize shopping experience for each
customer. Private Wardrobe consultations, Private Shopping
hours, Concierge Service making salon and restaurant
reservations and snack and refreshments to customers, Pet
Services all retail stores are pet friendly, Corporate Gift Giving,
Gift Servicing, Gift Cards, Same-day delivery, Monogramming
and Engraving, Expert Tailoring and Alterations, Replenishment
and Back to School Wardrobe (stores.ralphlauren). Ralph Lauren has tailored his company retail
stores for the customers need to help ensure customer satisfaction and their need.

3.9.1.2 Product and Service Strategy


Ralph Lauren has always being interested in his product would affect markets on a global level
and to sale a quality product and involve the customer service
strategy that include all the extra amenities his company offers
same day delivery, monogramming and engraving to continue
on with customer service and offering a quality product that his
consumer will enjoy.

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3.9.2 Price Strategy

Ralph Lauren has a very unique strategic price strategy and has adapted to a assortment
of markets having different brands at a wide range of prices to include a Global Brand
Concepts. Ralph Lauren brand Chaps sold exclusively at Kohls creates inter changeable
classics that are both enduring and affordable and the price of $20.00 for selected items
and range to $439.99 for Luggage and other items (kohls). He also has an American
Living Brand sold exclusively at Jcpenny starting off $6.00 and up for selected items and
range to $275.00 for home dcor (jcpenny).

Ralph Lauren has ultimately giving consumers a low price entry level without
lowering standard and quality of his brand and image and having that customer
experience of his brand. Ralph Laurens home paint is was introduced in 1995, and offers
exceptional-quality interior paint ranked very high among others in the industry for
performance and has a starting price of $39.99 per gallon.
Consumers can have a piece of the brand his high quality
brand in their homes at an affordable price. Ralph Lauren
Fragrance expanded his lifestyle brand has a world of
fragrance for men and women starting at a $49.50 and
ranging to $110.00 allowing consumers to enjoy a wide
variety of fragrances.

Denim & Supply has a price point of $34.50 and


range to $185 dollars. This selection emphasis on rugged
individualism for men and women and nod to a generation
that prides them-selves on creating a total personalized look and the price range is
affordable. Ralph Lauren Children and Baby collections offer a price range of $15.00 to
$375 for the timeless style for them.

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Golf and RLX Golf price point is $75.00 and range to $325. The Golf collections
combine state of the art performance wear with luxury for a sophisticated style and driven
design.

Rugby was launched in 2004, and translates into a legacy of authentic prep for
men and women with a one of a kind edge and prices range from $35.00 to $548.00.
Polo Ralph Lauren also has the same prices range as Rugby but offering that original
symbol of modern preppy lifestyle and has a one of a kind timeless look and appeal to all
generations of men.

Other brands on his website include Lauren and Lauren Home price range starting
at $79.99 to $4,848 for the look of a modern look.

Ralph Lauren collection has a price range from $125 to $18,500 carrying some of
his finest collection of jewelry accessories and luxury bags. Ralph Lauren also has a
prestige pricing for refined suits are hand-tailored from an exclusive selection of the
worlds finest fabrics and sophisticated looked priced from Black Label $78.00 for T-
shirt up to $2,498.00 and Purple $95.00 for a scarf to $4,995.00 outwear creating a strong
brand strategy for the upper class and a luxury item for them and the customer experience
his company gives allow for his strategic price ranges (ralphlauren.com). Ralph Laurens
company defines itself as a lifestyle brand when its products promote a more than a
product with key benefits and attributes (jdrazure). Ralph Laurens Price strategy is
adjusted to increase production and revenue doing so affectively and not tarnishing his
image from one spectrum to the next and contributes to his success.

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3.9.3 Promotion Strategy

Ralph Laurens company strategy is to reach as many customers as possible and the best
ways the company achieves that is by mobile marketing, online marketing and television
marketing. Consumers can sign up for Ralph Lauren mobile alerts by texting RALPH LAUREN
to 23000 or by going to the mobile site and entering their mobile number (mobilemarketer).
Also the internet is a great place where they have virtual tours of store to create a more
personalized experience before the customer goes to an actual store or location and provide that
whole customer with-out stepping a foot in the stores. Social media is also important on Face
Book and Twitter you can engage with videos, photo and the clothing line, this is an excellent
way to see who actually like and support your brand and a excellent way to promote your-self on
social media. Television ads have well know celebrities or beautiful faces and bodies that
captivate the viewers. Ralph Lauren has found that technology in every way has helped his
business to be successful.

3.9.4 Place and Distribution Channel Strategy

The Companys Wholesale segment sells its products to department stores, specialty
stores and golf and pro shops, both domestically and internationally. As of April 2, 2011 the
company Ralph Lauren-brand products were sold through approximately 10,000 doors
worldwide. Department stores like Macys and Blooming Dales and others are wholesale
customers in North America. In Europe, the whole-sales customers varying in mix of sale to
both department stores and specialty shops. Also the collection brands-

Women Ralph Lauren Collection and Black label and Mens Purple Label-are distributed
through limited number of premier fashion retailers. And the company also sells excess and out-
of-season products through secondary distribution channels including factory outlet stores. In
Japan, its whole sale products are distributed primarily through shop within shops at premiere
and top-tier department store, and the mix is to weigh upon the blue label.

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In Asia the wholesale products are sold in mid and top-tier department stores and the mix
of business is primarily on the Mens and Women Blue level. In Asia and on a worldwide basis,
products distributed through concession-based sales arrangements are reported with the retail
segment. Basic product, such as knit shirts, chino pants and oxford shirts can be order any time
through its basic stock replenishment program in the distribution channel (reuters.com). Ralph
Lauren has found a profound way to expand its global marketing strategy and distributing to
stores within his market.

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3.10 Customer Experiences and Satisfaction:

We monitor customer satisfaction through various methods of marketing research. As part of an


ongoing relationship with customers, we must continually measure and improve how well we meet
customer needs.

First we must understand customer needs. And it is the first step in setting up a system to
measure customer satisfaction. As a person grow up or going through changes in their life, their needs,
wants, and expectations might change. We must carefully analyze the characteristics of our products that
really matter to customers. We also need to remain constantly alert to new elements that might affect
satisfaction. One of our resources is American Customer Satisfaction Index, which is a nationwide tool to
provide information about customer satisfaction with product quality. Base on the rank we received in the
index, we can have an idea how well we served customer needs and wants. If we constantly drop rank, we
would know that we didnt meet customers expectation, and start to make changes. We also use data
from market research firms to build a better picture of our customers.

Next we need to obtain customer feedback. Were going to constantly improve our feedback
channel. One of them is toll-free phone numbers. In general, we have a plan to increase interactive
representative to collect customer feedback. However, we will cut or increase the number of
representative based on the trends. Another one is website survey. Website survey is our critical
feedback channel since it is the fastest growing channel in todays society. Online survey requires less
overhead cost to collect and analyze customers satisfaction. We constantly offer in-store cash incentive
to boost customers feedback through this channel. We promote online survey by sending a postcard
along with customers purchases. We also introduce online survey to in-store customers, and give them
bigger incentive to complete the survey.

Evaluating customers feedback. We have collected feedback from customers through toll-free
phone calls, and online survey. Customers are satisfied when:

- ACSI rank of our company keeps increasing.


- Sales keep increasing by at least 3% annually.
- Customers feedback consist of at least 70% satisfied customers.

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3.11 Product Life Cycle
3.11.1 Product Life Cycle:

The product life cycle describes the sales pattern of a product over time.
Generally, the time span begins with product introduction and ends with its obsolescence
and replacement. While the form of the life cycle is fairly standard, it is subject to
variations.

Ralph Lauren product life cycle has been up and down just like any other product. It is
expected that their business is up during the October and January months. This is where they
will have the biggest increase in their revenues. During the rescission there is a greater
expectancy of revenues over all. Ralph Lauren has kept up with their competitors and over
time they have done well for their brand.

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Introduction Stage
The introduction stage begins when the product is first launched and made publically
available. At this point, sales and revenues are usually low, as customers have not had much
contact with the product, and can be slow to recognize the product as superior to previous
offerings. As such, advertising revenues are often high as companies are trying to increase the
levels of customer awareness and customer acceptance of the new product. As such, and
coupled with the costs of distribution, profits are often low or negative in this stage. One strategy
companys can try to use to avoid this is to announce the product before it is launched, hence
building up customer anticipation.

Growth Stage
The growth stage occurs once customer awareness and acceptance of the product has
grown, and hence ever increasing numbers of customers begin to buy it, thus revenues grow
rapidly. This stage is also marked by a self-reinforcing cycle: as customers demand the product
more distribution channels offer it, which further increases the level of awareness and hence
increases customer demand. However, this period is also often the first point at which
competitors can enter the market with their competing products, developed during the
introduction phase, and hence competition levels increase. As such, this phase is often
accompanied by price or promotional competition, as firms attempt to convince customers that
their product is superior to competing offerings

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Maturity Stage
When a market reaches maturity, customer demand is generally more stable. This makes
this the most profitable stage, as companies have generally established their market position and
market share, and can work on exploiting it. As the rate of sales growth slows in this phase, there
is less incentive for new entrants to enter the market, and hence the incumbents can concentrate
on maximizing their own profits. This will be helped by strong levels of brand awareness built in
the growth phase, which mean that companies do not need to advertise as much. However,
competitive pressures may still be strong as existing incumbents battle for market share and
continue to try to demonstrate the superiority of their product Indeed, as the market develops so
competing products will become increasingly similar as companies better understand customer
demands, and being to imitate the most successful products. This can lead to companies focusing
strongly on differentiating their product from competing offerings, and encouraging customers to
switch to their offering.

Saturation and Decline Stage


Eventually sales levels will begin to fall as levels of competition become so high that
firms start developing new products to attract customers out of the market. In addition, the
product itself may become technologically obsolete and customer tastes are likely to change.
Products with superior levels of brand loyalty will tend to maintain their profitability for longer,
and will be helped as competitors enter the market. Eventually, the market shrinks so much that
most firms exit the market, leaving just a few left to serve greatly reduced customer demand. The
product may disappear altogether if it is completely unprofitable, however the production often
remains on the market as a collectors item or to serve people who depend on it. One example of
this is long playing records, which are still sold by some dealers to people who are familiar with
them prefer them to more modern options such as CDs or MP3s.

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3.11. 2 VALS Theory & Concept

V: VALUES A: ATTITUDES L: LIFE S: STYLES

VALS:
A science of using the demographics and psychology profiles to understand the
consumers in a better and in a proper way. Thus VALS have been defined which has been
divided on the basis of lifestyles and attitudes of the consumer.

o Innovators
o Thinkers
o Achievers
o Experiencers
o Believers
o Makers
o Strivers
o Survivors

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The major tendencies of the groups with higher resources are as follows:

1. Innovators:
These are the successful people who are always active in their activities in all their works.
They are the people who have high self-belief, high self-confidence and high self-esteem. Their
purchases always use to reflect the tastes of cultivation. They are basically related with up-scale
and niche oriented products and services. They have the great volume and highest amount of
income, they have very good image of creativity and they have finer tastes in their life. They
never depend on others and they follow the strategy of high character.

2. Thinkers:
Polo Ralph Lauren is very much mature and satisfied people who have financially strong
resources and they are motivated from their ideals. They are very much responsible in their
duties honestly and whole heartedly and they are very much professionalized in terms of
education.

3. Achievers:
Polo Ralph Lauren consumers are the people who are very much goal-oriented and want
to become successful in their fields of work. They are that type of consumers who have a high
resource group and they also get motivated by their achievements.

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4. Experiencers:
They have high income and higher amount of resources where they get motivation from
their self-expression, from their self-abilities and self-activities. These people are basically very
young, highly energetic from their nature and also from their activities. These people are very
well organized and enthusiastic as well make the environment also energetic. They are coming in
the age group of 25 35. They have lot of energy and they seek fun and excitement with high
income on fashion, entertainment and socialization. They spend most of their money in friends,
hang-outs, foods, music, movies and many more. Polo Ralph Lauren understands that this not of
their highest consumer rates, but knows that there is still a demographic for it.

The major tendencies of the groups with lower resources are as follows:

5. Believers:
When we talk about believers, they are the people who have low resources who are very
much conservative sort of nature. They have lot of superstitions and they believe in Gods and
traditions as well as cultures to live their life. Their incomes are also modest. They have high
belief on family, church, community or nation and they always think about all these.

6. Makers:
These people are always down to earth and never feel superior in terms of achievement,
education, profession, qualification, relationship or any other because these types of people are
very practical and they like to do their own work themselves. They favor mostly the American
made goods or products which have practical as well as functional benefits and uses.

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7. Strivers:
These people have low resources and they are very friendly and fun-loving entertaining people
who always use to make the people laugh by some sort of jokes or funny talks. They also like to
have style in their style and personality so they always appreciate stylish products and greater
material wealth.

8. Survivors:
These people have very low incomes and they are very much old in age. They are most
eldest of all the segments but the positive thing about them is they are brand royal and they look
for change.

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3.11.2 Maslows Hierarchy of Needs

Social Needs

Once a person has met the lower level physiological and safety needs, higher level needs
become important, the first of which are social needs. Ralph Lauren understands the social needs
in which are those related to interaction with other people and may include:

Need for friends


Need for belonging
Need to give and receive love

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Ralph Lauren is great at understanding the demands of their customers. Ralph Lauren
shows the social wanting to belong. Ralph Lauren markets to luxurious crowd and understands
that it is part of a wealthy crowd and wealthy culture. Once one has acquired the money and the
means to buy luxuries things they will feel that they belong to a higher crowd and will be part of
a different social circle.

Esteem

Once a person feels a sense of "belonging", the need to feel important arises. Esteem needs may
be classified as internal or external. Internal esteem needs are those related to self-esteem such as
self-respect and achievement. External esteem needs are those such as social status and
recognition. Some esteem needs are:

Self-respect
Achievement
Attention
Recognition
Reputation

Ralph Laurens products, not just the clothing but the accessories will create a higher self -
esteem and great a better quality in life and personal esteem. Ralph Lauren recognizes that the
clothing products and accessories will bring over all happiness.

Polo Ralph Laurens fragrance line and different denim line will help and boost up and
bring a better quality of life.

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Self-Actualization

Self-actualization is the summit of Maslow's hierarchy of needs. It is the quest of


reaching one's full potential as a person. Unlike lower level needs, this need is never fully
satisfied; as one grows psychologically there are always new opportunities to continue to grow.

Self-actualized people tend to have needs such as:

Truth
Justice
Wisdom
Meaning

Ralph Lauren has recognized their market in the higher and wealthier products, based on
the needs of the costumers. These costumers have reached their self-actualization and have had
the ability to spend their wealth on high quality products, and accessories. In which you can refer
to section, 3.6 our Target Market section. Polo Ralph Laurens product lines may be the
following in which may be considered the cream of the crop;

The Black on Black Label for Men:


The Purple Label

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4.0 Financials, Budget, Forecast

Net Sales (in millions of dollars)

9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2011 2012 2013 2014 2015

4.1 2013-2015 Sales and Expense Forecast

Net Sales
2011 2012 2013 2014 2015

5,481.8 6,084.8 6,754.1 7,497.1 8,321.8

These projected numbers were extrapolated using the numbers from previous
years obtained from Ralph Laurens Annual Report. All numbers in this section are in
millions of dollars.

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4.1.1 Sales Forecast

The sales forecast numbers were extrapolated based on the numbers from
previous years. Our attainable yet ambitious goal is to increase sales by 11% each year.
We achieved a 14% increase from the 2010 fiscal year to the 2011 fiscal year, so 11% is
feasible and sustainable.

4.1.2 Expense Forecast

The expense forecast numbers are extrapolated from the numbers from previous
years found in the Annual Report. The Lease expenses are the actual contractual lease
payments due in the years 2013-2015. Selling, General, and Administrative expenses
combined with the Cost of Goods Sold make up total expenses. Interest, wholesale, retail,
licensing, corporate, and lease expenses are included in the cost of goods sold and selling,
general, and administrative expenses.

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4.2 Yearly Sales and Expense Forecast

Sales and variable expenses tend to be highest during Christmas season and holiday seasons like
Valentine s Day, 4th of July and summer months when customers are more likely to do more
shopping, and lower in off seasons when people tend to shop less for special occasions.

4.2.1 2013-2015 Yearly Sales Forecast

The sales for each month reflect an estimation of what percentage of total monthly, with
holiday months increasing more than non-holiday months are calculated in millions.

2013 Yearly Sales Forecast


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Sales 550 552 551 553 555 560 563 560 565 566 588 592.1 6,754.1

2014 Yearly Sales Forecast


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Sales 600 605 605.5 608 610 612 614 615 617 640 670 700.6 7,497.1

2015 Yearly Sales Forecast


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Sales 670 675 678 679 680 681 682 682.3 685 699 740 770.5 8,321.8

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4.2.2 Yearly Expense Forecast

The variable expenses are proportionate to the sales projected for those months, the remaining
expenses are typically consistent each month. Although some expenses are likely to increase
from year to due to the increasing operational, but they are likely to remain fairly consistent
month to month.

2013 Yearly Expense Forecast


Expenses Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Selling,
General, &
Administrative
245 245 245 245 245 246 247 248 247 245 249 260 2,955.7

Interest Expense 1.2 1.25 1.3 1.35 1.45 1.55 1.6 1.65 1.7 1.85 2.5 3.0 20.4
Cost of Goods
Sold
229.0 231.0 230.0 233.0 233.5 235 236 235.5 236 237 245 252 2,833.8

Whole Sale 3.2 3.3 3.35 3.3 3.5 3.6 3.65 3.7 3.75 3.8 4.0 5.75 44.9

Retail 13.0 13.5 14 13.5 14.5 15 15.5 16.0 16.5 16.8 18.8 25.20 192.3

Licensing .20 .20 .20 .20 .20 .20 .20 .20 .20 .20 .20 .20 2.4

Corporate 7.41 7.42 7.43 7.44 7.45 7.46 7.47 7.48 7.49 7.50 7.51 7.84 89.8

Compensation 7.30 7.32 7.33 7.34 7.36 7.37 7.38 7.37 7.39 7.40 7.45 7.89 88.9

Lease Expenses 19.05 19.05 19.05 19.05 19.05 19.05 19.05 19.05 19.05 19.05 19.05 19.05 228.6

Total expenses 516.635 520.51 520.635 525.16 531.995 535.23 536.85 537.45 539.08 542.60 560.55 656.39 5,789.5

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2014 Yearly Expense Forecast
Expenses Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Selling,
General, and 269.93 269.95 270.00 270.00 270.00 270.5 271 270.5 270.5 271 275 280.22 3,251.2
Administrative

Interest
1.70 1.70 1.70 1.71 1.72 1.74 1.75 1.76 1.76 1.78 1.89 1.95 21.4
Expense

Cost of Goods
255 255 256 257 258 259 260 258 258 260 267 274.2 3,117.2
Sold
Whole sale 4.3 4.35 4.4 4.45 4.45 4.46 4.46 4.45 4.43 4.47 5.87 7.00 53.5
Retail 17.00 17.1 17.15 17.1 17.2 17.25 17.3 17.3 17.31 17.3 17.5 18.3 207.9
Licensing .20 .20 .20 .20 .20 .20 .20 .20 .20 .20 .20 .20 2.4
Corporate 7.85 7.85 7.85 7.85 7.85 7.85 7.95 7.85 7.85 7.85 7.85 7.95 94.4
Compensation 8.0 8.0 8.01 8.03 8.05 8.05 8.10 8.09 8.1 8.15 8.36 8.9 97.9
Lease
17.92 17.92 17.92 17.92 17.92 17.92 17.92 17.92 17.92 17.92 17.92 17.92 215.0
Expenses
Total expenses 599.03 599.20 600.36 601.37 602.52 604.10 605.81 604.2 603.20 605.80 618.72 633.77 6,398.4

2015 Yearly Expense Forecast


Expenses Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Selling,
General, and 297.0 297.5 297.6 297.8 297.9 298.25 298.5 298.0 298.1 298.2 299.9 300.3 3,576.4
Administrative

Interest
1.8 1.8 1.8 1.81 1.83 1.81 1.84 1.82 1.8 1.85 1.89 1.93 22.5
Expense

Cost of Goods
284.74 284.74 284.78 284.79 284.74 284.74 285.0 285.0 285.0 285.70 287.84 289.84 3,428.9
Sold
Whole sale 4.8 4.8 4.81 4.83 4.84 4.86 4.88 4.86 4.85 4.86 5.00 5.52 58.9
Retail 18.1 18.2 18.2 18.3 18.4 18.4 18.6 18.4 18.6 18.65 19.00 20.86 223.7
Licensing .25 .25 .25 .25 .25 .25 .25 .25 .25 .25 .25 .25 3.0
Corporate 8.6 8.6 8.6 8.6 8.6 8.6 8.8 8.6 8.6 8.6 8.6 8.8 103.6
Compensation 9.0 9.01 9.0 9.02 9.03 9.04 9.06 9.04 9.04 9.06 9.25 9.65 109.2
Lease
16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 199.2
Expenses
Total expenses 640.89 641.50 641.7 642.0 642.55 642.58 643.09 642.57 642.84 643.77 648.33 653.75 7,005.3

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4.2.3Annual Break Even Analysis

Our bare minim to maintain a profitable corporation

Annual Break Even Analysis


7000
Sales in Millions

6000

5000

4000

3000
Sales
2000
Fixed Cost
1000 Total Cost
0

Units

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4.2.4 Annual Profit Analysis

To reach a reasonable profit, Polo Ralph Lauren Corp. would have to reach sales above
$4 billion. As seen below in the chart our fixed cost of running the company without cost
of good is $2.8 billion. After factoring in the cost of producing goods, its Polo Ralph
Laurens mission to reach at least $100 mil a steady cash flow.

Annual Profit Analysis


7000
Sales in Millions

6000

5000
Profit of 100 Mil
4000

3000
Sales
2000 Fixed Cost

1000 Total Cost

Units

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5.0 Controls
In 3.0 Polo Ralph Lauren Corporations marketing objectives for the upcoming three years
were listed out:

Improve profitability by 15% annually


Grow revenues by 13.7% annually
Increase market share to 20% of total luxury apparel
Build and operate 75 new retail stores
Open website access to 5 new countries annually
Increase foreign markets by 200%
Focus on bringing 1/3 of total market to Asian countries(eurbanista.com)
Repurchase company brands currently outsourced to 95% ownership.

This section will focus on making sure all of these objectives are on route by measuring,
evaluating, and monitoring. The steps of the marketing control process as seen in the image
to the right start with setting standards of what you want to reach. Then comparing the results
of the strategy against the standards you set. The final step is to correct or alter your strategy
to reach greater successes for the following year

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5.1 Implementation Milestone
Polo Ralph Lauren Corporation is embarking on a major expansion of the company in the
years to come. The company has realized the market for luxury apparel is increasing quite
drastically and is aiming to be the world leader in high end apparel. The current position of Polo
Ralph Lauren Corporation gives them a great opportunity to expand considering their high profit
margins. On the way to carrying the brand to new growth and maintaining the whole brand
image many milestones must be met to ensure the success of the marketing approach. The
Implementation Milestones that will be mentioned were previously discussed in sections 3.0 and
4.0, and will be broke into projects and promotions. The Milestone Timelines show how each
project or promotion will line up with each other throughout each year of operations. Succeeding
each Timeline is a Milestone Data Table that will give a budget, specific start and end date, as
well as who is responsible for the success of each milestone. The progress of each milestone will
be assessed monthly to ensure that actual results meet expected results.

5.1.1 Project Implementation Milestones

2013 Projects:

With the start of a global expansion venture Polo Ralph Lauren Corporation has many
projects that must be started and many that are ongoing in the year of 2013. The initial projects
are the legal fees to move into a new selling market which have seemed to be very demanding in
the Asian countries the company is focusing on. The actual building and running the business is
estimated at $10 million for the first 10 years with addition of 15 new retail stores going in 2013.
Websites will also add to the cost of expanding with new sites being added for each new country.
A new cell phone application will be developed for our mobile savvy customers consisting of
both a shopping assistant and lifestyle tools. Ongoing projects will include creating a new eye
appealing theme in the store as well as the website, designing new product lines that coincide
with the brand image, and researching past successes and possible futures for the company.

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2013 Project Milestones Timeline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Website Upkeep
Website Expansion
New Cell Phone App
New Retail Stores
Store Revamp
Legalities
Product Evolution
Market Research
Key: Colored Cells=Milestone Occurs; White Cells=Milestone Does Not Occur Source: Internal Research Data

2013 Project Milestones Data Table

Promotions Start Date End Date Responsibility Budget


st st
Website Upkeep Jan 1 Dec 31 Tech Department $2,000,000
Website Expansion Aug 1st Sep 31st Outsourced $3,000,000
New Cell Phone App Mar 31st May 22nd Outsourced $50,000
New Retail Stores Jan 2nd Oct 30th Board Members $150,000,000
Store Revamp Aug 1st Aug 3rd Store Managers $5,000,000
Legalities Apr 18th Jul 20th Firm Lawyers $15,000,000
Product Evolution Jan 1st Dec 31st Designers $10,000,000
Market Research Jan 2nd Oct 28th Marketing Sector $500,000
Source: Internal Research Data

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2014 Projects:

Continuation of our global expansion will continue through the year of 2014. The start of
20 new store fronts will take place year with an investment of $200 million. If all milestones are
met for the 2013 year of projects and market research continues to show a place for our
corporation ongoing projects will be continued but otherwise a shift in our strategies towards
expansion may be made. Ongoing projects will have price increases because of company growth
as well as inflation.

2014 Project Milestone's Timeline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Website Upkeep
Website Expansion
New Retail Stores
Store Revamp
Legalities
Product Evolution
Market Research
Key: Colored Cells=Milestone Occurs; White Cells=Milestone Does Not Occur Source: Internal Research Data

2014 Project Milestones Data Table

Promotions Start Date End Date Responsibility Budget


st st
Website Upkeep Jan 1 Dec 31 Tech Department $2,250,000
Website Expansion Aug 1st Sep 31st Outsourced $2,000,000
New Retail Stores Jan 2nd Oct 30th Board Members $200,000,000
Store Revamp Aug 1st Aug 4th Store Managers $6,000,000
Legalities Apr 18th Jul 20th Firm Lawyers $12,000,000
Product Evolution Jan 1st Dec 31st Designers $12,500,000
Market Research Jan 2nd Oct 28th Marketing Sector $650,000
Source: Internal Research Data

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2015 Projects:

In the year of 2015 Polo Ralph Lauren Corporation will plan on being in full speed of the
expansion of the company. This will depend on the acceptance of new markets and total brand
image as a world leader and if Polo Ralph Lauren Corporation cant maintain these we may have
to slow down some aspects of growth. This year expansion will include an additional 25 new
stores with websites being put in place for language barriers. The ongoing marketing projects
will also all be increased slightly in size again and marketing research for this year will give
forecast of what our 2016-2018 marketing plan will look like.

2015 Project Milestone's Timeline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Website Upkeep
Website Expansion
New Cell Phone App
New Retail Stores
Store Revamp
Legalities
Product Evolution
Market Research
Key: Colored Cells=Milestone Occurs; White Cells=Milestone Does Not Occur Source: Internal Research Data

2015 Project Milestones Data Table

Promotions Start Date End Date Responsibility Budget


Website Upkeep Jan 1st Dec 31st Tech Department $3,000,000
Website Expansion Jan 1st Sep 31st Outsourced $4,000,000
New Cell Phone App Mar 3rd May 22nd Outsourced $100,000
New Retail Stores Jan 2nd Oct 30th Board Members $250,000,000
Store Revamp Aug 1st Aug 5th Store Managers $8,000,000
Legalities Apr 18th Jul 20th Firm Lawyers $8,000,000
Product Evolution Jan 1st Dec 31st Designers $15,000,000
Market Research Jan 2nd Oct 28th Marketing Sector $750,000
Source: Internal Research Data

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5.1.2 Promotional Implementation Milestones

2013 Promotions:

The past ten years into the technology revolution Polo Ralph Lauren has been the first to
adapt many new innovative techniques. They saw how far ahead japan was and started using QR
codes and created a Mobile app. The companys strategy for promotions remains similar today;
give customers the feeling of a brand with a complete lifestyle image by using innovative tools to
portray a simplistic view of what is offered. Polo Ralph Lauren Corporation produces a
magazine that shows most of its apparel worn by models in everyday situations. They also use
this same, many products in use, style single page magazine ads and RL T.V. to give people an
idea of what they will feel like when wearing the brand. Polo Ralph Lauren Corporation will
have one T.V. Add Campaign for the 2013 year with only a few showings as to create a deeper
meaning to the add. Surveys and personal Interactions will add some word of mouth promotion
and help sell to wholesale. The year will also include two Fashion shows. One show will be at
the start of summer to show off the summer line of apparel, and one in November to finish off
the year. Sports Sponsorship will add a great form of promotion through sports of tennis and
rugby with major players sporting the Polo Logo.

2013 Promotional Milestone's Timeline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Magazine
T.V. Ad Campaign 1
RL T.V.
Surveys
Personal Interactions
Fashion Show 1
Fashion Show 2
Sports Sponsorship
Key: Colored Cells=Milestone Occurs; White Cells=Milestone Does Not Occur Source: Internal Research Data

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2013 Promotional Milestones Data Table

Promotions Start Date End Date Department Budget


st st
Magazine Jan 1 Dec 31 Marketing $5,000,000
T.V. Ad Campaign 1 Mar 1st Apr 31st Markating $2,000,000
RL T.V. Jan 1st Dec 24th Marketing $5,000,000
Surveys Jan 1st Dec 20th Marketing $250,000
Personal Interactions Jan 1st Dec 31st Marketing $500,000
Fashion Show 1 May 7th May 8th Designers/Marketing $250,000
Fashion Show 2 Nov 7th Nov 8th Designers/Marketing $250,000
Sports Sponsorship Jan 1st Dec 31st Board Members $3,000,000
Source: Internal Research Data

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2014 Promotions:

The Promotional milestones that must be accomplished in 2014 will only be started after proper
adjustments have been made from a successful or unsuccessful year of promoting in 2013. The strategy
will be similar to the previous year with a new theme for the year as well as slight increase in the size of
the promotions leading to about a 5-10% in budgeting. There will also be an additional ad campaign
focusing on the Christmas shoppers.

2014 Promotional Milestone's Timeline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Magazine
T.V. Ad Campaign 1
T.V. Ad Campaign 2
RL T.V.
Surveys
Personal Interactions
Fashion Show 1
Fashion Show 2
Sports Sponsorship
Key: Colored Cells=Milestone Occurs; White Cells=Milestone Does Not Occur Source: Internal Research Data

2014 Promotional Milestones Data Table

Promotions Start Date End Date Department Budget


st st
Magazine Jan 1 Dec 31 Marketing $5,100,000
T.V. Ad Campaign 1 Mar 1st Apr 31st Markating $2,200,000
T.V. Ad Campaign 2 Nov 7th Dec 31st Marketing $4,000,000
RL T.V. Jan 1st Dec 24th Marketing $7,500,000
Surveys Jan 1st Dec 20th Marketing $500,000
Personal Interactions Jan 1st Dec 31st Marketing $750,000
Fashion Show 1 May 7th May 8th Designers/Marketing $750,000
Fashion Show 2 Nov 7th Nov 8th Designers/Marketing $500,000
Sports Sponsorship Jan 1st Dec 31st Board Members $4,000,000
Source: Internal Research

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2015 Promotions:

Polo Ralph Lauren Corporations promotional strategy will be a major investment hoping to win
the hearts of new countries citizens and convince the true luxury of the brand. All strategies will
change slightly in design and be widespread on a global basis. Budget will increase another 10%
and one more T.V. ad will be created to rekindle the spirit of Ralph Lauren during the summer
months.

2015 Promotional Milestone's Timeline

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Magazine
T.V. Ad Campaign 1
T.V. Ad Campaign 2
T.V. Ad Campaign 3
RL T.V.
Surveys
Personal Interactions
Fashion Show 1
Fashion Show 2
Sports Sponsorship
Key: Colored Cells=Milestone Occurs; White Cells=Milestone Does Not Occur Source: Internal Research Data

2015 Promotional Milestones Data Table

Promotions Start Date End Date Department Budget


st st
Magazine Jan 1 Dec 31 Marketing $7,500,000
T.V. Ad Campaign 1 Mar 1st Apr 31st Markating $2,500,000
T.V. Ad Campaign 2 Nov 7th Dec 31st Marketing $6,000,000
T.V. Ad Campaign 3 Jul 1st Jul 31st Marketing $2,000,000
RL T.V. Jan 1st Dec 24th Marketing $5,000,000
Surveys Jan 1st Dec 20th Marketing $750,000
Personal Interactions Jan 1st Dec 31st Marketing $1,000,000
Fashion Show 1 May 7th May 8th Designers/Marketing $1,000,000
Fashion Show 2 Nov 7th Nov 8th Designers/Marketing $2,500,000
Sports Sponsorship Jan 1st Dec 31st Board Members $5,000,000
Source: Internal Research Data

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5.2 Marketing Organization

David Lauren is Executive Vice President of Advertising, Marketing, and Corporate


Communications for Ralph Lauren Corporation. In his role, he is responsible for the global
advertising and marketing campaigns for the Company. David is responsible for the Companys
corporate and fashion communications, strategic marketing partnerships and the development of
RalphLauren.com. David Lauren is the big key to how well Ralph Lauren Markets. For Fiscal
2011, Ralph Laurens total sales grew 14.3 percent to $5.5 billion while profits jumped 18.3
percent to $568 million. So whatever David Lauren is doing, he must be doing it right.

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5.3 Contingency Planning

5.3.1 Revenues Exceed Projections:

Good side: A sudden high surge in revenues brings more cash on hand for the
cooperation, which can in turn be converted into many different applications. Those applications
include (but not limited to): increase marketing budget by 10%, open new location worldwide,
improve employees benefit to keep employee turnover as low as possible, provide daycare
service for employees, etc. We may also choose to hold on to the cash, because the more cash we
have on hand, the more flexible our strategies can be. Depend on the amount of surge, we will
choose appropriate action.

Bad side: If the surge is at such a high volume, our supplies could fall short for a period
of time if we dont have plan for it. Fortunately, 70% of our partnered-manufacturers are only at
80% capacity (2013) and 20% of those manufacturers promised to keep their production at 90%
or lower of their potential capacity. Some of our manufacturers are excellence at hire part-time
worker in the time they need them. With all consideration taken in, only if we have 100%
increase in revenues should we have a problem with supply.

5.3.2 Revenues Miss Projection:

Theres no good side to this section except it give the corporation more incentive to
innovate. We, in clothing industry, face intense competition every day. Therefore, we have to
prepare for this.

The root of this issue could be: product design missed target markets life style, product
missed target markets affordability, Polos image as a whole is damaged, low quality control,
bad return policy, marketing campaign failed, etc.

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Another factor is pricing pressure. The apparel industry is subject to significant pricing
pressure caused by many factors, including intense competition, consolidation in the retail
industry, pressure from retailers to reduce the costs of products and changes in consumer
spending patterns. These factors may cause us to reduce our sales prices to retailers and
consumers, which could cause our gross margin to decline if we are unable to appropriately
manage inventory levels and/or otherwise offset price reductions with comparable reductions in
our operating costs. If our sales prices decline and we fail to sufficiently reduce our product costs
or operating expenses, our profitability will decline. This could have a material adverse effect on
our results of operations, liquidity and financial condition.

If revenues miss projection, we have to re-evaluate our product design and conduct new
study on our target markets. Re-innovate product design could bring us closer to target market,
make our product unique and better, and consequently, have more control over pricing. But in
order to bring our products closer to target market, we have to study target market carefully first.

5.3.3 Economy Recesses:

Our target market is middle class and higher class, but there will always be lower class
customers who try to live a middle class life by wearing appropriately. Economic recession took
away the buying power of middle class men and women as well as lower class. This could
consequently damage our sale figures. If this was the case, we might have to lower the price of
goods targeted at middle class customers to make it more affordable.

In contrast, the life of high class customer wouldnt change significantly. They will be
more cautious to buy, but they wouldnt stop buying because clothing is just a small portion of
their spending.

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5.3.4 Economy Recovers:

In economic recovery, the buying power of consumers went up. We have two options:
first is to increase the price to make up for the losses in revenue during the recession, or second,
we could keep the same price in order not to upset customers, and use sales quantity to offset the
revenue made otherwise.

5.3.5 Conditions are unsafe for drivers:

No matter how careful we plan, there will always be a potential of disaster which may
hinder our driving shipping-method. We have a budget to make shipment by plane. And depend
on the severity of the disaster; we might increase the budget accordingly.

5.3.6 Natural Disaster at our stores location:

We cant prevent disaster nor we can predict it many years ahead. Depend on the
severity at our stores location; we might have to choose from closing the store permanently to
relocate it elsewhere.

5.3.7 Natural Disaster at our supplier manufacture:

We compete with other companies for the production capacity of our manufacturers.
Some of these competitors have greater financial and other resources than we have, and thus may
have an advantage in the competition for production. If we experience a loss of a manufacturer,
we may have to expand our third-party manufacturing capacity. We cannot guarantee that this
additional capacity will be available when required on terms that are acceptable to us.

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5.3.8 Security issue with customer information system:

If there is a security breach with customer information system, our first action is to
temporarily terminate the service. The next thing we do is to investigate the causes and fix the
problem. Third, we need to inform customers who are affected. If this is caused by outsider
(hacktivist) we might have to send a warning to our customer to have them protect their credit
card information, they will do it better than us. It is important not to keep it a secret because no
matter how careful we are, we cannot forbid the fact from spreading. If it will spread anyway, we
should not hide it. Instead, we should inform customer early to have them take action. Hiding
security issues could damage our image and reputation.

5.3.9 Security issue with online ordering:

This issue is somewhat similar to section 5.3.8 except that this occurs when customer
placed an order. This security breach wont affect customer on a large scale. However, we still
need to take action as section 5.3.8 to protect our image and reputation. Hiding it do us no good.

5.3.10 Volume of electronic orders exceeds the capacity of our system:

First step is to temporarily terminate the service, and inform customers of the temporary
downtime. Next we will have to identify the causes to see whether its a real outburst, or a DDoS
attack. If its a real outburst, nothing can be done in a short period of time unless we have a
backup plan ahead of time. DDoS attack can be solved. We will have to contact expert and have
them help us. The key is to have a plan ahead of time to control this issue.

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