ipl-logo

Revitalization And Modernization Of Vera Bradley

1601 Words7 Pages

Vera Bradley has been hurt by weak overall sales momentum in the last couple of years, which has led to a greater use of promotions and marketing schemes in order to incentivize customer transactions, culminating in a sharply reduced level of operating profitability. Although the share price for Vera Bradley had a 40% increase in 2016, thanks to rebounding sales and earnings growth for the industry as a whole, their sales only rose 1% and net income fell 9%. (Vera Bradley 10K, 2018) Strategic issues Product revitalization and modernizing Vera Bradley has built an empire on quilted handbags, backpacks and luggage with cheerful explosions of floral and paisley. The Baby boomers and teens love this new innovative casual style. Yet between those …show more content…

(Anderson, 2015) Department stores such as Dillard’s, Macy’s and Nordstrom, have experienced challenges, the channel's long slump raises questions about the overall health and relevancy of the department store sector. Let's be honest; department stores for the most part are being 'out-retailed' by the specialty stores and online shopping. The favorable sales growth Vera Bradley showed in 2016 was driven by new store openings rather than an increase in comparable store sales. Although revenue rose 1% year-over-year in 2016 Q1, its total comps, including e-commerce, actually fell 4.6%. (Vera Bradley 10K, 2018) This is telling me that if Vera Bradley hadn't opened several stores during the quarter, their revenue would have declined. This also means that sales at the established stores are still declining year-over-year. In Vera Bradley’s proxy statement they attributed that decline to its intentional reduction of promotional activity, which boosted margins but reduced both online and brick-and-mortar traffic. (Vera Bradley 10K, 2018) This strategy creates a catch 22, to strengthen its bottom line, they must reduce promotions, but to generate stronger sales that feed into the bottom line, they need to increase promotions or open new stores. In 2010 Vera Bradley embarked on a new initiative to expand brand awareness in Japan. This was the first campaign designed to create recognition …show more content…

The traditional products are not attracting enough new customers to the brand. This issue is in part, simply the nature of the business. It is an innovative industry and competition is intense. Larger more established brands like Louis Vuittoisn, Gucci, Prada, Coach, and Kate Spade have a very strong brand image and loyal customer base. Vera Bradley`s current strategy is to follow the strategies of these established leaders in the market to maintain its business. Since the competition is intense, simply copying others will not be enough to continue growth. Vera Bradley is failing to innovate and differentiate their product

Show More
Related

  • Vera Bradley Executive Summary

    1952 Words  | 8 Pages

    Their handbags and other merchandise is less than its luxurious high end competitors, however, many people cannot afford to pay for luxury purses and accessories so they purchase generic or non-name brand products that they can afford. None of its substitutes can give their customers the same unique designs, but price is definitely a factor when purchasing handbags, wallets, luggage, etc. Plus, there are thousands of cheap brands out there and readily available so it is easier for customers to purchase these items than it is for them to purchase Vera Bradley products. Therefore, Vera Bradley must continue to try pull in new customers that would usually purchase a substitute product because the threat is relatively high for the

    Read More

  • What Is Vera Bradley's Growth Strategy

    146 Words  | 1 Pages

    Vera Bradley has two options for their growth strategy. One option is to use market penetration and increase their number of retail and outlet stores to expand their exposure and be more readily available to existing consumers. With only 99 stores open at the end of 2014 contributing to the $536 million in revenue, an increase to 150 stores can contribute almost $275 million in additional revenue. The second growth strategy Vera Bradley could implement is diversification. Vera Bradley can create a new line of products using their new higher quality materials to attract new customers and they can penetrate a new market.

    Read More

  • The Revolutionary Coco Chanel's Impact On Fashion

    2271 Words  | 10 Pages

    Gisselle Lavariega Mrs. Johnson Senior paper Date (The Revolutionary Coco Chanel) Gabrielle Bonheur Chanel, known to most as Coco Chanel, “Arguably the most influential fashion designer of all time, Coco Chanel revolutionised the way women wore clothes and paved a new way for the fashion brand, capitalising on the changing times she was living in and her status as a fashion icon”(Dunne). Her clothing designs, from the use of jersey to the Chanel suit demonstrate her rebellious to the common norm. Her impact changed the fashion industry completely to something once dominated by tight fitting, near strangulation attire to a more loose and comfortable fit suitable for every occasion.

    Read More

  • Vera Bradley Case Summary

    520 Words  | 3 Pages

    Summary Vera Bradley happens to be one of the exclusive accessory store, offering a distinctive range of products like bags, purses, handbags, jewelry and backpacks for women. The brand is well-known for its famous tailored cotton items with vibrant designs and often available at discounts. You can further save on probably all the products in this shop by using our completely free Vera Bradley coupon codes. So, quickly go through this page and see what’s in here for you.

    Read More

  • Wet Seal History

    535 Words  | 3 Pages

    Previously, Wet Seal was struggle to attract customers to their store, especially when having to compete with larger retail stores. Kathy Peckham analyzed and researched the company’s target market needs and determined the best strategy to bring people in by providing the desired products. The timing of the company’s changes was vital for their existence. With massive amounts of debt and no positive outlook, the change was effective for both the retailer and its

    Read More

  • Nordstrom Financial Analysis Essay

    575 Words  | 3 Pages

    is on the rise. The retail store has proven to do very well. This can be in part due to the different demographics that Nordstrom, Inc. appeals to. For example, Nordstrom itself attracts individuals of higher salaries whereas Nordstrom Rack, a clearance store, attracts individuals of middle income. There will always be demand in the services sector and apparel stores

    Read More

  • Macy's Financial Analysis

    1021 Words  | 5 Pages

    On the other hand, Macy’s has been struggling with maintaining continues high sales. This paper will explore these

    Read More

  • What Is The Role Of Women In The 1920s

    284 Words  | 2 Pages

    Just as the United States was on the right path to bring their economy back to life, the next world war came. At the beginning of the war, the United States remained uninvolved. However, countries like Italy, Germany, and Japan, attacked other countries. The majority of the American citizens wished that their country would stay out of the conflict. Yet, despite the citizens’ attitude, the congress voted to induct American soldiers, as well as strengthen the military.

    Read More

  • Vera Bradley's Strategic Plan

    489 Words  | 2 Pages

    Yes it does, Vera Bradley's strategic plan for 2015-2019 is well defined and designed to improve the company’s competitive position, financial performance and shareholder value over the long term. One of the strengths of Vera Bradley is loyalty to their customers. They offered the fact of Coloured products to consumers. The company’s strategic plan focused on three major areas which include: product strategy, distribution channels and marketing. For the product strategy, the company focused on producing and designs a wide range of products including handbags; accessories such as purses, eyeglass and cosmetics; and travel items such as duffle bags, clothing bags, rolling luggage, and cosmetics cases for travel, which are part of the core seasonal version.

    Read More

  • Kohl's Case Study

    192 Words  | 1 Pages

    Over a three-year span, Kohl’s’ Corporation, has seen a drop in their net income. The last two years Kohl’s decline was minimal, but nonetheless disappointing when both Nordstrom and Macy’s reported an increase in earnings. ,2,3 Earnings are cyclical in the retail industry and consumers very cautious; exhibiting post-recession buying habits.1,4,5 Along with consumers post-recession buying habits Kohl’s attributes declining sales on the weather and port disruptions. Since 2012 total sales have decreased by 2%.

    Read More

  • Board And Management Of Ace Superstore

    1057 Words  | 5 Pages

    Expanding operations by opening a new store in the midst of a tough economic climate will result in significant obstacles for the business. In addition to consumer spending being constrained, attracting new customers and building

    Read More

  • Tory Burch Research Paper

    904 Words  | 4 Pages

    Money may be a figure to most but when an open opportunity is handed to you what would you do? A simple eight-hour shift may consist of taking orders, satisfying customers’ needs, having to over-look a group of associates, in addition to satisfying a customer one on one: having to appease indecisive customers with the struggle of the two different aspects of buying one based on spending budget and another on personal style. There is more than what meets the eye when it come to purchasing high end bags such as Kate Spade and Tory Burch. When shopping for a high-end bag one does not have an endless pocketbook or the luxury of purchasing on the whim. Most women save up weeks or months to buy that special bag.

    Read More

  • Strengths And Lows Of Kohls

    887 Words  | 4 Pages

    As one would expect, the notoriety of a celebrities name increases the price (perhaps even perceived value) of the products in which they are featured. Now, when a customer goes to Kohl’s looking for the traditionally reasonably priced, moderately durable wares, they instead encounter over priced celebrity lines (Bogenrief, 2012). As Bogenrief states, “Kohl’s, then, appears to be suffering an identity crisis between what it thinks its competition has become, what it thinks its customer wants, and what it should, in turn, offer”

    Read More

  • Pest Analysis Of Victoria Secret

    1466 Words  | 6 Pages

    Victoria Secret was profitable enough in their first year, for the company to open four more physical locations, as well as a mail order catalogue. Although Roy Raymond’s policy was initially profitable, but as we will discuss in the later parts of this paper, it also had its downsides that almost led to the bankruptcy of Victoria Secret. Today, Victoria Secret is a multi billion dollar conglomerate with more than a thousand stores in more than 180 countries generating an annual income of over five billion. 2. PESTEL ANALYSIS The external environment of a company can affect everything from company policies, finances, sales, targeted customers and can be a deciding factor in whether the company remains for another season.

    Read More

  • Coach's Multichannel Distribution Model

    1420 Words  | 6 Pages

    Coach’s site selection process placed its core and fashion stores I upscale shopping centers and downtown shopping areas, while flagship stores were restricted to high profile fashion districts in cities. Coach sold their products in japan in shop in shop department store locations, where in China Coach had 66 stores in 2012 up from 41 stores in 2011. • Brand & lineage: The components of the brand are created by the business itself, making brand identity the way in which a business wants consumers to perceive its brands, not necessarily how it is actually perceived. Coach’s initial lines of 2 unlined leather bags soon developed a loyal following. Over the next 40 years Coach was able to grow at a steady rate.

    Read More

More about Revitalization And Modernization Of Vera Bradley

Open Document