buckle promotional campaign
DESCRIPTION
Enhancement of Buckle Inc. clothing company and there promotional campaigns through an extensive business audit. We created a marketing plan on how to revamp the company's loyalty and rewards program to entice participation, and ultimately enhance company gains. We then presented our proposal to the Buckle Inc. representatives.TRANSCRIPT
Prepared by STAA Consultants, LLC: Stephanie Short, Taylor Pickering, Aaron Motsenbocker, Alix Gorshow
2013
CONTENTSEXECUTIVE SUMMARY....................................................................................................1
Situation Analysis...............................................................................................................1
Internal...............................................................................................................................1
External..............................................................................................................................1
Goals.....................................................................................................................................2
Objectives..........................................................................................................................2
Tactics.................................................................................................................................2
Effectiveness Evaluation.............................................................................................2
Timeline.............................................................................................................................2
INTERNAL ANALYSIS.......................................................................................................3
Mission Statement.........................................................................................................3
Organizational Demographics..................................................................................3
4 P’s: Product, Place, Price and Promotion.........................................................4
Product...........................................................................................................................4
Place.................................................................................................................................5
Price.................................................................................................................................6
Promotions...................................................................................................................8
Finance.............................................................................................................................10
Information and Technology..................................................................................11
Operations and Production.....................................................................................12
Research and Development....................................................................................13
EXTERNAL ANALYSIS....................................................................................................15
Industry Analysis.........................................................................................................15
Competition and Substitution................................................................................16
Social Trends.................................................................................................................17
Laws and Regulations...............................................................................................18
Economics.......................................................................................................................20
Nature...............................................................................................................................21
Technology.....................................................................................................................21
SWOT Analysis..................................................................................................................23
Guest Connect Promotional Campaign Page 1
Business Need...................................................................................................................24
Target Market...................................................................................................................24
GOALS AND OBJECTIVES.............................................................................................26
TACTICS...............................................................................................................................28
EFFECTIVENESS EVALUATION.................................................................................33
IMPLEMENTATION SCHEDULE................................................................................37
BUDGET...............................................................................................................................38
RESOURCES........................................................................................................................40
APPENDIX A.......................................................................................................................44
The Buckle Company SWOT Analysis................................................................44
APPENDIX B.......................................................................................................................46
Concept #1 Refer-a-friend to Guest Connect..................................................46
Concept #2 Refer-a-friend to Guest Connect..................................................47
APPENDIX C.......................................................................................................................48
Concept #1 Refer-a-friend to Guest Connect..................................................48
Concept #2 Refer-a-friend to Guest Connect..................................................49
APPENDIX D.......................................................................................................................50
The Buckle’s Net Sales for 2010, 2011, 1012.................................................50
APPENDIX E.......................................................................................................................51
The Retail Industry’s Total Sales (in Billions of dollars)...........................51
Total Holiday Spending Totals for 2012...........................................................52
Consumer Shopping Behavior and Preference..............................................53
Demographic Variables Compared to Shopping Behavior and Preference......................................................................................................................54
International Consumer Prices.............................................................................55
Consumer Confidence Scores 2011 to 2013...................................................56
Guest Connect Promotional Campaign Page 2
EXECUTIVE SUMMARY
This strategic promotional plan outlines an extensive business audit of Buckle,
Inc. Summarizing the general state of the company, the plan is geared towards
revamping the company’s guest connect program to entice participation and thus yield
higher returns from the promotional service.
Situation Analysis
Internal
The Buckle is comprised of nearly 430 stores, in 43 states. The company is
planning 13 new stores majorly across the eastern coast of the United States and
currently employs nearly 6000 people. The Buckle filters through bad employees and
holds on to the good ones through the self-motivation of the people they hire. This
allows turnover to take care of itself. Product is disbursed nationally from the
company’s headquarters in Kearney, Nebraska, as dispatched by the company’s
exclusive Intranet system. In 2012 the company earned $1.124 billion dollars in sales,
and expects to see the same increasing returns for 2013.
External
During even hard economic times the Buckle continues to thrive. As consumer
confidence scores continue to rise (Trading Economics.com, 2013) and the employment
rate continues to increase (U.S. Bureau of Labor Statistics, 2013), Buckle should continue
to expect an increase in market share and product demand. Various laws and
regulations plague the retail industry such as The Marketplace Fairness Act, impacting
internet sales tax collection. All being said, consumers today are interested more in
keeping their dollars local and investing before products hit the market. Buckle also
faces fierce competition within the locations it targets; shopping malls, Pac Sun,
Hollister, Abercrombie and Fitch, etc. notoriously plague the market.
Goals
Primary goals for Guest Connect include increasing awareness for the service,
increasing participation from existing guests, raising store traffic from Guest Connect
leads, and developing a Guest Connect customer relations database.
Guest Connect Promotional Campaign Page 1
Objectives
In essence, the objectives of this plan are to increase enrollment in Guest
Connect by 100 guests per store, set employee driven goals to recommend the program
10 times per shift, and increase response to Guest Connect recommendations by 20 per
email blast by the end of 2013. This plan is also developed to increase new to Buckle
Guest counts through various strategies. The current system requires a removal of all
inactive guests and should be integrated to include stores within surrounding areas.
Integrating the system with a mobile phone application.
Tactics
Tactics for the strategic campaign as well as the newly developed system include,
task management, various pieces of collateral and store signage and the outsourcing of
software development.
Effectiveness Evaluation
In calculating return on investment, the volume at which collateral is brought
back to the store, the analytics as they are designed to report back to the user and the
increase in sales are all connected to the tactics of the plan.
Timeline
The plan in all its’ entirety will be fully implemented by the end of 2014
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INTERNAL ANALYSIS
(See Appendix D for charts and graphs)
Mission Statement
The Buckle started in 1948 as a men’s clothing store in Kearney, Nebraska. Over
the last 65 years the company has grown to include more than 430 stores across 43
states, making it a leading retailer of clothing, footwear and accessories for fashion-
conscious young men and women. It is the company’s mission “to create the most
enjoyable shopping experience possible for our guests.” Everyday, the Buckle team,
from the corporate office to the front-line employees work together to make this dream
a reality with exceptional, personalized service that makes every guest feels special.
Organizational Demographics
The Buckle has been very successful in achieving its mission, and boasted over $1
billion in sales for the first time in 2012. In many ways, this is due to the company’s
commitment to educating quality personnel through internal and college campus
recruiting programs. From the merchandising department, to marketing, to finance and
accounting, the company’s more than 6,000 employees have helped to shape the
company into what it is today.
Beyond their commitment to education, the Buckle has created an environment
of incredible loyalty. The company’s 19 district managers have an average of 23 years of
experience with the company; the board of director’s have an even longer history. Dan
Hirschfield took over as president of the company in 1965 from his father David
Hirschfield. In 1991, Dan became the chairman of the board and passed along the
president’s position to Dennis Nelson. Nelson started with the company more than 30
years ago. Nelson is one of Buckle’s many veterans. The buying team has combined
experience of more than 63 years and Kari Smith, acting vice president of sales, has over
25 years of experience. According to the team, “her attitude, inspiration, and passion for
people, provide great motivation. ” (Annual Buckle Report, 2011) Alongside the
company’s other leaders and board members, this team will continue to drive the
Buckle’s success for the future.
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Employees believe some turnover in the company is positive. If employees are
not open-minded to learn and adapt to new concepts, they probably should move on.
Buckle doesn’t want complacent people. Emily Villano says, "In my 18 years with the
Buckle, I enjoy the challenge and development of and with others. It is not an easy job.
It is not just retail." She enjoys that every day is different and that she is able to hire the
team and decide who is the best fit for the environment. She believes bad turnover, is
when ‘good’ assets to the team leave- which might be for personal life changes or to try
something that is a better fit for them. Either way, if they don’t want to be at work, then
they are note a good asset to the team. The teams generally aim for a split force of male
and female, but most actually consist of 60 percent women 40 percent men (Emily
Villano, 2013).
4 P’s: Product, Place, Price and Promotion
Product
Not only did Buckle achieve more than $1 billion in sales in 2012, but the
company sold more than five million pairs of jeans—making it “one of America’s favorite
denim destinations.” Buckle carries more than 1,000 denim styles from over 20 brands.
To supplement the company’s diverse and unique denim collection, the Buckle carries a
broad range of merchandise—including everything from casual tops and outerwear to
perfumes and accessories.
The Buckle generates nearly one-third of its revenue from private label
merchandise under more than 11 brands, including: BKE, BKE Denim, BKE lounge, BKE
Boutique, BKE sole, BKE sport, BKE vintage, Gimmicks by BKE, ReClAIM, Buckle Black,
and Daytrip. Additionally, the company partners with nearly 30 additional brands,
including: Buffalo by David Bitton, MEK, 7 Diamonds, Sinful, Nike 6.0, Diesel, Fossil,
RVCA, Roxy, Obey, Bed/Stu, Puma, Silver Jeans Co., O’Neill, Hurley, Quicksilver, Archaic,
Fox, Roar, Salvage Supply Co., Billabong, Reef, Affliction, Miss Me, Crash & Burn, Big
Star, G-Star Raw, and Rock Revival.
Collaborating with these brands, allows Buckle to create and offer unique and
exclusive products that encourage consumers to frequently shop their 430 stores.
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Additionally, the Buckle offers a unique array of services to its customers, including: free
hemming, gift-wrapping, layaways, the Buckle private credit card, and frequent shopper
rewards. One of the company’s most notable services is the “Get Fitted” appointment
program. Shoppers can reserve to try-on a specific style and size, and salespeople will
build entire outfits and make additional suggestions on similar styles. This program truly
reflects the personalized service that is so central to the Buckle experience that’s done
so successfully.
The following are the percentages of net sales over the past three fiscal years of
the company’s major product lines. Denims constitute the majority of net sales across
the board at 46.6 percent as of January 28, 2012, 45.3 percent as of January 29, 2011
and 42.9 percent as of January 30, 2010. Tops including sweaters, ranked second with
net sales at 32.1 percent in 2012, 34.0 percent in 2011 and 36.7 percent in 2010.
Accessories came in third, at 8.2 percent in 2012, 8.4 percent in 2011 and 7.7 percent in
2010. Sportswear and fashions followed, at 5.1 percent in 2012, 4.7 percent in 2011 and
5.0 percent in 2010. Next was footwear at 4.9 percent in 2012, 4.7 in both 2011 and
2010. Outerwear was at 2.3 percent in 2012 and 2011, and increased to 2.5 percent in
2010. Casual bottoms ranked second to last at .6 percent in 2012, .5 percent in 2011,
and .4 percent in 2010. The least ranking category was their miscellaneous at .2 percent
in 2012, and .1 percent in 2011 and 2010. Brand name merchandise accounted for
approximately 68 percent of the company’s sales during fiscal 2011. Leaving the
remaining balance comprised of private label merchandise. Refer to pages 4 and 5 of
the 2012 Annual Report for the net sales percentages of major product lines in years
2010, 2011, 2012 also displayed in Appendix D (Annual Report, 2012).
Place
The Buckle’s stores are located in high-traffic shopping malls that efficiently
serve the company’s target market. Buckle’s growth strategy is to continue opening new
stores in similar areas. The company opened up 10 new stores in 2012, with plans to
open 11 additional locations in 2013. The majority of these locations were opened on
the Midwest and Eastern territories of the Unites States, further expanding reach and
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widening the target market. Buckle plans to open 13 new stores in 2013 and remodel 7
existing; the signature store design was featured in 325 of 440+ stores in 2013 alone
(Annual Report, 2012).
Buckle stores carry the same general line of merchandise, each store’s inventory
is tailored to reflect the unique buying preferences of local customers. Store inventories
are based on historical data, local style preferences, and seasonal climate changes.
The company’s distribution center in Kearney, Nebraska utilizes an electronic
system to organize, track, and ship unique merchandise to each store. This system
provides the company incredible cost savings and efficiency—it only takes two to three
days to ship merchandise from the distribution center to every store. The goal is to have
new merchandise arriving at each store daily. This provides tremendous benefit for the
consumer, who continually has access to new and exciting products—encouraging them
to shop more frequently at the company’s 430 stores.
The vast majority of Buckle’s products are sourced from here in the U.S.
However, buyers on the merchandise team do outsource various product lines and
brands internationally. This is done only when compliance with the company’s code of
conduct and standards of engagement are met, entailing strict requirements that
ensure ethical labor practice, environmental conditions, and health standards are
adhered to.
Price
Buckle’s average price point is $48.00 per item and $103.45 per transaction.
With medium-to-better priced merchandise, the Buckle is employing multiple pricing
strategies. Prestige pricing of the company’s more elite brands allows shoppers to
experience feelings of entitlement and status; while the more moderate and bargain
pricing allows shoppers to experience the thrill of finding a deal while still participating
in the Buckle community.
Cost of the Product- The cost of each product varies due to the many vendors
and styles that Buckle carries. At the high end there are products that run roughly $300
and at the low end more in the area of $5 to $10. Cost markup information is not readily
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available, however, each markup fluctuates depending on the product, style, and
vendor. The largest profit margin is gained on the private label brands as they are the
least expensive to manufacture and do not incur the additional cost of associated brand
equity.
Channel of Supply- The Buckle has its own distribution center. The exact cost of
running the center and distributing from the center is not readily available; however,
maintaining a private distribution center lowers costs of distribution significantly. Buckle
however, is one of UPS’s largest accounts nationwide. There is a fee for guests to ship
their merchandise for special orders and alterations of $5. Buckle does a phenomenal
job of lowering costs in terms of distributing product.
Cost Objectives- Information regarding profit margin, labor cost, and sales
revenue goals, or growth objectives, are not public knowledge. Each store has a goal of
8 percent of net profits to allocate to payroll. Depending on what the store is trending,
as far as growth goals, they look at the last four weeks and as a team decide what the
month’s sales goals should be. They typically range between 10-15 percent.
Competition- There are many retailers which are competitors of Buckle with
similar merchandise and price points. Buckle competes with catalogues, the Internet,
specialty stores, and traditional as well as upscale department stores. Their main
competition revolves around H&M, Macy’s, Dillard’s, Express, Forever 21, Pacific
Sunwear, Gap, Aeropostale, Hollister, American Eagle Outfitters, and Abercrombie and
Fitch. Buckle tends to integrate these stylesto create a one of a kind piece found
exclusively at Buckle. Arguably, the only substitute for Buckle is Nordstrom, as they are
the only retailer that offers the personalized level of service comparable to that of
Buckle.
Consumer- Buckle’s target market revolves around fashion conscious guests
interested in fit specific denim, ages 15-30. Consumers are favorable towards Buckle
because they specialize in custom fits with alterations available. Buckle caters to all sizes
and shapes with denim, “we have a jean for all types.” (Buckle.com, 2013)
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Promotions
Currently, The Buckle maintains roughly eight existing promotional strategies.
For fiscal 2012 year, the company spent $10.2 million on seasonal marketing, advertising
and various promotional strategies. This number includes the cost incurred for give-a-
ways and sweepstakes drawings. Buckle also focuses a vast majority of marketing and
advertising efforts with partnered key merchandise vendors, for joint marketing efforts
(Annual Report, 2012).
Guest Connect- Buckle’s brand-informative and client-based program is Guest
Connect, which markets directly to the consumer by personal phone calls or email,
tailored to which brand the guest is most loyal to or interested in. The program allows
Buckle associates to maintain a more intimate connection directly with the guest by
consistently being in contact and updating them once new items from their favorite
brands arrive at their desired location(s).
In-store Advertisements- Partnership advertising is apparent but provided
completely by the partner brands. The merchandising team creates the products and
materials such as flyers, brochures, and banners. Buckle does use part of it’s allocated
budget (consisting of $10.2 million in 2012) to create in-store signage, such as, seasonal
window hangings, campaign signs for Spring (for example) and basic “Sale!” signs, that
stores can use to push products lingering within their location.
“Get Fitted” Appointments- Guests have the opportunity to call ahead with their
size and brand preferences with the “Get Fitted” appointments. The experienced staff
will proceed by building looks specifically for the individual. The guest and the employee
meet at the dressing room once they arrive, and the guest is given their full attention for
an hour of personalized shopping and outfit building. This makes going back to school
easy.
Promotional Give-A-Ways and Benefits- Guests have the opportunity to obtain
free merchandise regularly, with specific brand logos through purchasing certain items
usually at a predetermined price point. The value of these vendor gifts can range from
roughly $5 to $50 retail.
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Loyal guests have the option of obtaining a Buckle Primo Card, private label
Buckle Card, and the Buckle Black Card –for the most loyal guest to Buckle. The Primo
and Black, rewards cards give guests B-rewards. These B-rewards allow card holders
eligibility for periods where they receive special promotional incentives, such as free
shipping, and exclusive gifts with purchases in stores.
Events- Multiple vendors also contribute by giving out drawstring tote or duffle
bags that have the brand name or logo printed on them during specially promoted
events. These bags are not usually for sale, but are made by the vendors for the
consumers for participating in these unique events. Common themes are characterized
by “back to school” appointments, “spring into fashion” etc.
Social Media- The company’s social media presence is well established through
their involvement in Facebook, Pinterest, Twitter, Instagram, YouTube, and their blog
Threads. Through these various outlets, Buckle is able to display to and be followed by a
wide audience. Social media allows their guests to be exposed to their latest looks and
fashion trends, new inventory, sales, and job offers. There is room to increase the
amount of interactive media to further engage guests, which are avenues Buckle is
always revamping.
Banner Ads and Other Online Advertising- The Buckle.com allows guests to shop
from home and order offline. This enables guests to also explore inventory prior to
setting foot in the actual brick and mortar store. Pop up and banner advertising engages
customers in exploring other brands and items they otherwise would not be exposed to.
Opt-in email options are also available to online guests, in which they receive
notification of everything fashion and everything Buckle.
Press Releases- Public relations is something Buckle approaches to further instill
and promote transparency. Net sales reports for shareholders and various outside
influencers are noted in these reports. Common topics include laws and regulations that
are effecting or are going to affect the company. Press releases function as a formal
informative medium of exchange for the general health and direction of the company.
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Finance
Despite economic conditions, the Buckle has steadily grown over the past 10
years. The company has not only increased the number of stores in operation, but has
also increased its annual net sales. In 2013, of February alone, the company’s sales were
$1.124 billion; this figure increased nearly 5.7 percent over total sales in February 2011.
Shareholders received a diluted earnings per share of $3.44 per share, the company as a
whole is receiving 14.6 percent of its total sales as net income.
Revenues are trending an increase throughout the year due to several factors,
including: new locations, rising retail prices, the number of units per transaction, and
the number of transactions per store. Buckle can continue on the same growth
trajectory if it continues to build upon these metrics every year.
In addition to these factors, the Buckle grew its online sales by 25 percent over
2011; Internet sales accounted for $78 million in revenues. As society continues to
become even more connected online, this revenue stream will become even more
valuable. To stay up-to-date with the continually changing Internet, the company should
continue to invest in upgrades for store technology, new store construction and
renovations. The company invested a total of $35.1 million in 2009, $36.2 million in
2010, and $32.5 million in 2011 for upgrades.
Although revenues increased, profits as a percentage of net sales remained
steady at 44.1 percent from 2010 to 2011. This bodes well for the company’s
stockholders, who can look forward to steady and rising stock prices. Earnings per share
have steadily increased from $1.69 in 2008 to $3.23 in 2012. Plus the company has
consistently declared dividends.
Another contributing factor the financial health of Buckle can be attributed to
last year's accomplishment of installing camera surveillance systems in 99 percent of the
company's stores, decreasing inventory shrinkage by .4 percent of net sales in the fiscal
years, 2012, 2011 and 2010.
The company has spent a lot of money building new stores and further
enhancing existing stores, and has plans for massive future growth. The obstacle lies
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now in the risk of eventually cannibalizing market shares and revenues with internal
competition against existing stores and the threat of stealing existing customers. This is
an evident problem companies such as Starbucks have been faced with and have
worked through, by emerging into unsaturated national markets. Growing at the current
rate, Buckle may face issues when trying to sustain this level of expansion in the future.
The company also appears to be essentially debt-free, leaving room to leverage
resources and spend some income on advertising and marketing, a medium with proven
returns on investment.
Information and Technology
The company’s headquarters and distribution center are located in Kearney,
Nebraska. “The company spent $4.1 million, $18.7 million, and $15.5 million in fiscal
2011, 2010, and 2009, respectively, in capital expenditures for the corporate
headquarters and distribution facility. The capital spending for the corporate
headquarters and distribution center during fiscal 2009 included $5.5 million invested in
the expansion of the company’s online fulfillment infrastructure within its current
warehouse and distribution center in Kearney, Nebraska.” The company went live in
June 2009 and doubled size of the previous infrastructure.
Buckle uses exclusive email and customer tracking database technology for
frequent shopper programs and Guest Connect. The company’s management
information systems (MIS) and electronic data processing systems (EDP) consist of a full
range of retail, financial, and merchandising systems, including: purchasing, inventory
distribution and control, sales reporting, accounts payable, and merchandise
management. Buckle uses an expense inventory point-of-sale system (POS) for PC based
POS registers in each store. (Annual Report, 2012)These registers are polled nightly by
the central computer using a virtual private network for collection of comprehensive
data.
Virtual private networks for communication with the stores also support the
company’s Intranet site. The Intranet allows stores to view various types of information
from the corporate office. Stores also have access to a variety of tools such as a product
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search with pictures, product availability, special order functions, printable forms, and
links to transmit various requests and information, allowing them to enhance the speed
and efficiency of their customer service with their guests.
The Rewards and Guest Connect programs involve limited customer relations
management tracking. The systems are capable of tracking purchase size, styles and fits,
as well as returns, for the sake of responding to the guests via email with product
information in Guest Connect. There is room for improvement. By enhancing the
tracking and the amount of additional brands and styles purchased, Guest Connect has
the potential to not only track consumer demographics, purchase behavior,
effectiveness evaluations, sales connections and overall preferred and trending brands,
it could also autonomously update the inventory received daily and automatically send
arrival notifications to guests who haven’t received a promotion within a certain period
of time. Additionally, there is room to integrate all databases used by the company, not
just use this information at one store. This program is too manual and could be
expanded by being more automatic. In its current state, employees have to mentally
calculate who is interested in what brand, if that brand has arrived on the day they are
working, when the last time the guest received a promotion, and if they are an opted-
out guest. This is an extensive amount of work for a Buckle team member or manager.
Operations and Production
The company purchases a portion of its private label merchandise through
sourcing agents in foreign markets. In addition, some of the company’s domestic
vendors manufacture goods overseas (Annual Report, 2011). Many of their private label
brands are created through reference to other brands and companies such as
Nordstrom.
"Buckle believes consumers have a choice in where they spend their money, and
they have the integrity to choose responsibility. When our guests leave our stores with
the best brands and their favorite jeans, they bring clothes into their homes with the
assurance of knowing they were sourced responsibly.” “We have established guidelines
to assist us in our effort to identify potential suppliers who share our commitment not
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only to quality products, but to quality business and human rights relationships as well."
(Annual Report, 2011)
Pursuant to the requirements of the California Transparency in Supply Chains
Act, Buckle makes the following disclosures of efforts to eradicate slavery and human
trafficking from the supply chain: verification, auditing, certification, internal
accountability and training; resulting in a socially responsible company that trickles
down to a socially responsible supply chain (Annual Report, 2011).
Buckle stresses an extensive prevention and allocation system that minimizes the
shrinkage of inventory. Essentially, the company follows FIFO (First-In, First-Out)
ensuring rotations keep products fresh and new to the eyes of their guests every day.
The secret in minimizing shrink, not only lies within getting the first arrival out first, but
if they don’t sell for whatever reason, those products are sent to a store that hasn’t
carried them or has a proven track record of selling those products and brands.
The company capitalizes on the experience of a highly skilled and informed
buying team. The vice-president of women’s merchandising and vice president of men’s
merchandising lead the national and international buying decisions. Buckle, operates
with its central manufacturing and distribution center in Kearney, Nebraska. From here,
the company’s management information systems (MIS) and electronic data processing
systems (EDP) manage the inventory of what’s stored and sorted at the center (Annual
Report, 2012).
Upon product arrival, the distribution center sorts the products to direct them to
their respective locations. They are then tagged, unless the manufacture’s UPC code will
be used and or if the merchandise came pre-ticketed from the vendor. From there,
product is sent out to the stores on a daily basis. The guests at Buckle will always have
new product options.
Research and Development
The merchandising department conduct’s its own research on consumer trends.
They are constantly shopping all the trends and looking ahead. Their tactics are to shop
various other retailers based on what is currently selling, and have product
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development teams and managers give feedback on how new product is doing on the
sales floor. No information is purchased from a third party research company, all
research is done in house. The private label products and the BKE brands are developed
by shopping other retailers and boutiques; for instance, comparing 3 shirts from
Nordstrom and taking the different concepts from each one, inspires Buckle’s unique
style. That is what makes BKE and the other family lines so individual. Because these
pieces are so exclusive, consumers will not find them anywhere else (Emily Villano,
2013).
Buckle anticipates opening 13 new stores in 2013: 11 are to be in heavy traffic
shopping malls and 2 lifestyle centers. When pursuing new markets, Buckle evaluates
the following criteria:
1. Market area- including proximity to existing markets to capitalize on name
recognition
2. Trade area population (number, average age, and college population)
3. Economic vitality of market area
4. Mall location, anchor tenants, tenant mix, and average sales per square foot
5. Available location within a mall, square footage, storefront width, and facility of
using the current store design
6. Availability of experienced management personnel for the market
7. Cost of rent, including minimum rent, common area, and extra charges
8. Estimated construction costs, including landlord charge-backs and tenant
allowances
The size of the location is typically between 4200 to 5000 square feet and
development costs are typically planned to be roughly $900,000 per store including;
construction; general opening and licensing costs; and the cost of acquiring inventory to
stock the store.
In looking further into the future, Buckle's further expansion (beyond 2013) is
going to depend on the general state of the economy, as well as the business and the
health of the company. The full impact of expanding is yet to be fully defined and
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measurable for the future of Buckle (Annual Report, 2012).
EXTERNAL ANALYSIS
(See Appendix E for charts and graphs)
Industry Analysis The economic recession of 2008 has impacted the economy on every level; some
industries have recovered more readily than others. The retail industry however, as a
whole, has seen slow-continual growth since its low point in 2009. The U.S. Department
of Commerce recently announced, March 2013, retail sales only grew 1.6 percent over
March 2012—it is a small, but definite improvement. Refer to Appendix B showing the
past five-years of growth.
Retail spending in the United States is seasonal, fluctuating with the holiday
calendar. The majority of retail spending occurs between back-to-school shopping in
August, peaking on Black Friday and then continuing through the end of the year. In
2012, back-to-school shopping totaled $83.8 billion and winter holiday shopping totaled
$586.1 billion. On Black Friday alone, more than 89 million shoppers braved the stores
on Thursday and consumers spent a total $59.1 billion over the whole weekend. These
numbers were up from the previous year, and growing sales during the upcoming
holidays will have major implications for 2014. Refer to Appendix C for an example of
the consumer retail spending trends
In reference to the general health of the retail industry, the Financial Stability
Oversight Council released a report to congress detailing four major problems that could
negatively impact consumers and retail business. High-yield bonds, money-market
funds, too-big to fail banks and government controlled housing giants e.g. Fannie Mae
and Freddie Mac, threaten the safety of the stock market (Marketwatch, 2013). Buckle,
like any retail company is negatively impacted by economic downtown turns on the
stock market.
Generally speaking, the retail industry is stable and right now has no identifiable
threat to long-term sustainability. Only the above-mentioned threats pertaining to all
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retail companies trading on the stock market, are the foreseeable and worrisome issues
for the general state of business. Cato was down 11 percent, Costco up 6 percent, Ross
up 2 percent, TJX was down 2.1 percent, and the Buckle broke even with no decrease or
increase in its share value (WSJ, 2013). Looking at retail stock, the general picture is
currently lower sales, in comparison to last year. In response to the increase in taxes for
the 2013 fiscal year, more consumers are making the decision to save their refunds and
wait for increase in income (National Retail Federation, 2013).
Competition and Substitution
Competition- The apparel industry is incredibly competitive. There are thousands
of retailers fighting to gain market share, especially in high-demand shopping malls. The
Buckle believes its primary competitive advantages are its diverse merchandise selection
and customer service, as it competes with both specialty retailers and department
stores.
Due to a shared target market and the differing genders the company caters to,
there are changes to the companies that directly compete with Buckle. This includes not
only various lifestyle stores but department stores as well, that vary depending on
which sex the marketer refers to.
For men, Buckle’s biggest competitors are: Abercrombie & Fitch, American Eagle
Outfitters, Hollister, Aeropostale, Gap, Express, Pacific Sunwear, and Tilly’s –as lifestyle
stores. Dillard’s, Macy’s, and Nordstrom, as department stores, also directly compete
with the Buckle. Each of these retailers offers a similar selection of products—with
similar quality and pricing strategies.
For women, Abercrombie and Fitch, American Eagle Outfitters, Hollister,
Aeropostale, Gap, Express, Pacific Sunwear, H&M, Maurices, Wet Seal, Forever 21, and
Vanity –in referring to lifestyle stores. In looking at department stores for female
competition, Buckle competes with Dillard’s, Macy’s, Bon-Ton Stores, Nordstrom, and
many other small retail and department stores (such as Ross or Marshalls), as well as
online retail companies.
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North Carolina State University (2013) claims the majority of consumers spend
their dollars at department and discount-based stores (such as Ross, Marshalls,
Nordstrom Rack, etc.) rather than in the shopping mall, at specialty or ‘lifestyle’ stores.
Refer to Appendix D charting retail competition and substitution data.
Substitution- Arguably, Buckle has no direct substitution. It is with regard to the
high level of service offered by Buckle and staff that this is made true. None of these
direct competitors such as Abercrombie or Pacific Sunwear offer personal fit
appointments or credit cards and rewards programs to the extent Buckle does.
Therefore, there technically is no direct competitor that offers the same product and
service as a lifestyle store.
Nordstrom does however offer the same level of service, credit card resources
and customer loyalty rewards and incentives. However, being a department store
separates them into a different market category. The main similarity amongst the two is
they both, most frequently, are found at high traffic shopping malls.
Social Trends
Proposed and noted trends for 2013 include a massive movement for not only
getting involved in developing products before they’re known, but moving from using
them to funding them as well. Consumers are beginning to dive back into investment
and entrepreneurial values, to become “Presumer and Custowners.”
(trendwatching.com. 2013)
Business and marketers in particular, can expect to see even further movements
toward mobile devise utilization. Consumers are now more than ever going to utilize
their devices every single moment they possibly can, to take advantage of every single
opportunity possible. One of the most popular tactics in which business will experience
this is with geographic marketing in which smartphones pick up the connection either
via an app or a frequently visited store, in which a promotion they are close to pops up
on their phone, benefiting business but the consumer as well. Technology is only going
to continue advancing.
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Buying local and keeping local money: Local is another social trend that seems to
be on the rise. As more and more consumers become aware of economic leakage,
demand will continue to rise for local man for local manufacturing and local jobs. Other
trends include the environmental/sustainable movements. Not only are consumers
demanding it, it’s becoming a standard my producers to actually place ‘life’ inside of
their products. For example, throw the bag of Sun Chips you just ate, because the bag
will only decompose and numerous botanic plants grown from it (BuinessInsider, 2013).
Other sustainable trends are spanning far beyond the environment, but after
economic catastrophes such as what was experienced in 2008, companies more than
ever are going to be forced by consumers to win their support by remaining transparent,
and exposing every sector of themselves to maintain validity and thus consumer's
loyalty.
In terms of retail, everyone is seeing the trends for colored jeans return and the
everlasting desire for more fashionable, well-fitted, and trendy style of denim.
Consumer preference in consistently yielding in this direction.
It's also predicted that more and more brands are going to have to actively
participate in applications and get themselves on mobile devices (Forbes, 2013). This
coincides the movement of consumers only taking advantage of everything with mobile,
because everything is becoming so dependent upon it. “Todays consumer is hardwired."
(Forbes, 2013)
Laws and Regulations
Legality- In the normal course of conducting business, Buckle is faced with
periodic litigation and claims disputes. As of the present date, there are none the
company is currently facing.
Federal Trade Commission Rules and Regulations- Like all companies and
organizations in the United States, Buckle must abide by and adhere to the regulations
and guidelines set forth by the FTC, in which, the main expectation is to never falsely
market or represent a product or service. Compliance with the FTC further ensures
Guest Connect Promotional Campaign Page 18
ethical behavior and protects the consumer. Refer the Rules and Guidelines at:
business.ftc.gov/legal-resources
Legislation- The Marketplace Fairness Act, the Marketplace Equity Act, and the
Main Street Fairness Act, are three bills coming in 2013 that are going to impact online
sales tax collection, essentially forcing business to collect online sales tax. The Market
Place Equity Act essentially exempts a business from collecting tax if its online sales are
below $500,000 –to the state in which this applies. The Marketplace Fairness Act
complicates requirements slightly, to the state in which this law applies, if applicable,
online sellers under $100,000 are exempt from collecting online sales tax, however all-
other would be exempt only if their sales are under $1M. The Main Street Fairness Act,
works in correspondence with the State Sales and Use Tax Agreement (SSUTA) in which
states must be signatories. If and when they are signatories, this exempts them from tax
collection if the business makes less than $500,000 through online sales (Washington
Post, 2012).
This impacts the general well being on business who utilize e-commerce because
the forced collection of tax or an increase in tax collection, forces companies to loose
revenues from either paying the tax, or lowering prices to compensate for the decrease
in demand.
Shoplifting- The Organized Retail Theft Investigation and Prosecution Act of
2010, establishes a -specific to shoplifting- governing body that addresses the issue of
shoplifting 95 percent of retailers can say they’ve endured. However, the current
economic situation has resulted in budget cuts and the body's full potential is not at its
optimal operation. (National Retail Federation, 2013)
Development and Building Restriction- The building and zone restriction are so
specific to each individual location, but no doubt are regulations that impact the
development of Buckle locations.
Accepted United States Filing Standards and General Accepted Accounting
Principles- As a publically traded company, Buckle has to comply with GAAP in ending its
fiscal year and filing is year-end financial reports.
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Economics
Recession and Recovery- The economy appears to be in recovery. The White
House states we are debt free, and some economist are saying the country should
borrow even more money at this time because of low interests rates (Wall Street
Journal, 2013). The nation's economy is currently on the rise. However, we still show
symptoms of a recession and obtaining financial stability is still no clear horizon for the
U.S.’s future.
2013 Fiscal Policies- As sourced from an article, “One threat the Fed highlights: is
the rest of the U.S. government. ‘Fiscal policy is restraining economic growth,’ U.S. tax
and spending policies aimed at short-term budget-deficit reduction are hindering full
recovery." (WSJ, 2013)
The U.S. government currently has no set or agreed upon tactic for handling the
financial crisis, and one thing that remains is the country’s currency goal (although in
sequence with Japan and Europe) is falling short.
Consumer Confidence Scores- A great sign for the general state of business is the
rise in consumer confidence index scores. We have seen an increase from 61 to 68 in
the month of April (Trading Economics.com, 2013). (See Appendix G) If all else, business
can hopefully, bank on consumers spending more of the income over the course of the
coming months in confidence concluding the second quarter for the 2013 year. An
increased consumer index score, verifies consumer perception of the general health of
the economy and hopefully, this is a trend that will continue.
Slow Employment Growth and Unemployment Rates- National employment in
retail, in March of 2013, was down 24,000 positions (U.S. Bureau of Labor Statistics,
2013). This could still be a number reflecting the decrease in employment from holiday
lay-offs, but the overall employment opportunities nationally for retail labor are dismal.
Most employment opportunities are showing themselves in professional service,
business service, education, health services, and in construction work. Though the
overall economy has experienced an additional 1.36M jobs, none of them are directly
related to retail. (See Appendix H) Hopefully, these are statistics that only reflect the job
Guest Connect Promotional Campaign Page 20
market for this short time, in the second quarter, and will continue increasing by the
end of the third quarter.
Nature
Natural disasters, including hurricanes, floods, and tornados may affect not only
store and distribution center operations but also consumer spending and stock shares.
When Hurricane Sandy hit, in 2012, there were logistics problems and merchandise
delivery delays. Some retailers, trying to keep inventory lean during uncertain economic
times, gave themselves little room for error: shipments of holiday toys, for instance,
were down 13 percent that year, to the lowest level since 2007, according to the global
trade research firm Panjiva. RetailNext, which tracks shopper traffic, said store visits and
sales in the Northeast were down about 25 percent during the storm and afterward (NY
Times).
In the first days of trading, after Japan was ravaged in 2011 by earthquakes and
tsunamis, shareholders of all sizes were selling off stocks of American companies. High-
priced products aren’t high on anyone's priority list when they're distracted by constant
news reports about death, destruction, and nuclear meltdown. Some of The Buckle’s
competitors such as The Gap, Banana Republic, American Apparel, and Abercrombie &
Fitch were hit hardest since some of their stores were physically in Japan. The Japanese
disaster demonstrates that whatever happens anywhere on the globe, affects everyone
on the globe (Retail Industry). Additionally, retailers are affected by the changing
seasons, when the back-to-school and spring and fall fashion introductions, drive sales
peaks (Sikich).
Technology
As retailers look to better connect with their customers through more relevant
campaigns, integrated marketing and digital campaign management solutions are of
increasing importance. These systems help to dynamically manage content across digital
channels, as well as, measure and optimize return on investment (ROI) on their digital
marketing investments. Predictive analytics and big data will be another technology
focus area in 2013. In order to remain competitive with a growing variety of shopping
Guest Connect Promotional Campaign Page 21
alternatives, retailers must seek new ways to deliver the most value, revenue and
loyalty. To do so, they must harness the increasing volume and availability of data using
technology to process large amounts of data into meaningful reports and insights as
quickly as possible (Technet).
Over the past few years, the rapid consumer adoption of emerging technologies
has completely changed shopper behavior. From group buying to flash sales, mobile
commerce to social media, both retailers and consumers alike continue to adapt to the
new ways they interact with each other. Looking ahead, technology and social
networking are areas where stores should work on providing the kind of functionality
that their customers need. Within two years, more customers will access the Internet
via mobile device than with a computer. Plus, customers are responding favorably to
those retailers that move at their speed and make it convenient for them to shop via
mobile. In addition, retailers are now in the process of developing more mobile
capabilities on their sales floor, including testing mobile checkout and equipping their
sales people with better tools at point of sale so they are more responsive to the mobile
customer (iStockAnalyst).
The onslaught of mobility, social media, and online commerce is creating a
power shift from associate to shopper. Increasingly, consumers on the floor know more
than the sales staff about the store's products and price points — and competing offers.
Some retailers are responding with clever innovations. Old Navy deployed a mobile
payment checkout device over Christmas. Nordstrom and Home Depot also announced
large-scale mobile solutions for their associates to help digitally enabled shoppers (HBR).
“E-commerce has quickly become an independent force in fashion — one that shows no
signs of curbing its exponential growth. In just a few years, e-commerce has become an
integral retail component for monolithic brands, department stores and fledgling
designers alike”. (HBR, 2012)
Not a lot is needed in terms of marketing with social media sites like Pinterest
and Tumbler where a picture is posted and then re-blogged 200 times. It’s a visual
platform that is a breeding ground for early adopters (Mashable). Integrated
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multichannel retail capabilities, strategies and management solutions are poised to have
significant impact on the industry, as more retailers move to make omnichannel a
reality. With consumers having increased options for how and when they shop, retailers
need to deliver a seamless customer experience across all their channels. Optimizing
and integrating their shopping channels as part of a single strategy for driving
compelling customer experiences has become a must. (Technet)
SWOT Analysis
(See Appendix A)
Upon review of the internal and external analysis, The Buckle has the following
strengths and weaknesses as a company. One of the company’s biggest strengths is its
size. With more than 430 stores in existence today, as well as plans to build more in the
future, the company has incredible brand equity—it has a presence in 43 states. Being
so visible to consumers, it has positioned itself as a leading retailer of denim and
fashionable apparel for its target market.
In addition to its size and visibility the Buckle has an incredibly efficient
distribution system. Taking advantage of economies of scale, the Buckle can make
shipments to its stores daily—keeping the merchandise fresh, and consumers coming
back again and again. Coupled with its diverse and specialized product lines, Buckle can
look forward to years of future success.
Contrasting these strengths, the Buckle also has several notable weaknesses.
First and foremost, the company’s stores are very individualized, and share little
information with each other. These stores are essentially competing with one another
for sales and market share. For example, Colorado has 10 Buckle locations—but the
stores have little capability to look up customers and merchandise from store to store.
Based upon this information, the company has the following opportunities and
threats moving into the future. The Buckle’s biggest opportunity is to more efficiently
track consumer purchasing behavior. Although the companies distribution system is
incredibly effective, the merchandise is allocated to each store based on historical data.
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With a more sophisticated tracking system, the company would be more equipped to
predict future trends.
The Buckle’s biggest current threat is the potential for market cannibalization.
With 430 stores and more on the way, the company could potentially start to
cannibalize on one location’s sales to sustain a new location. It is incredibly important
for the Buckle to keep this, along with its other strengths, weaknesses and opportunities
in mind as it moves forward.
Business Need
Based on the marketing audit consisting of the internal analysis, external
analysis, and the SWOT derived from those, the business need of Buckle includes a re-
introduction to the consumer of the Guest Connect campaign, in which, current guests
participate in referring the program, and two seasonal campaigns aid in showing the
benefits of using it throughout the year.
In addition to the themed campaigns, Guest Connect requires a new database
system in order for it to be fully effective and efficient. Purchasing and implementing a
new system that adheres to the following goals and objectives of the campaign will
satisfy the needs of the company and Guest Connect. Overall, Guest Connect needs
more participation, awareness, and a better means of tracking consumer utilization and
sales resulting from the system.
Target Market
The Buckle’s target market is made up of fashion-conscious young women and
men between the ages of 15 and 30 years. This includes members of both Generation Y
and Generation Z. They are the children of Baby Boomer’s -Generation X. These
consumers are highly influenced by technology and the individualization it promotes.
Not only does this make these consumers more segmented, but less brand loyal than
previous generations. As such, it is incredibly important for the Buckle to remain on the
Guest Connect Promotional Campaign Page 24
forefront of technological developments and social platforms—these consumers expect
to be continually engaged.
Buckle’s market demographics consist of 60 percent women and 40 percent
men. At any one of the 430+ locations in the states, the product mix is going to be
geared to cater to a higher population of women and a lesser of men (Annual Report,
2012).
The growing popularity of denim has made it far more than a wardrobe staple
for this consumer segment; denim is an expression of self and style for Generation Y
shoppers. Some of the most popular brands include 7 for all Mankind, Diesel, Levis,
Lucky, and Citizens of Humanity among others (National Retail Federation, 2013).
Although Buckle does not carry any of these lines specifically, the company is well
known for carrying equally stylish and comparable quality products.
Due to the age and income limitations of the Buckle’s target market, it is also
especially important for the company to consider Generation X and Baby Boomers in
their analysis of the market. As parents of the primary target market, it is incredibly
important for these consumers to develop recognition for the brand and trust in its
products and quality.
Focusing primarily on Generation Y members (as they are independently the
most readily equipped to make a retail purchase), their characteristics are comprised of
independence, responsibility, and thrive in having flexibility (Martin, 2005).
Classifying Buckle as a upscale store, the primary ethnicity served by Buckle is
white Caucasian. Accordingly to North Carolina State University, white Caucasians
comprise the greatest amount of consumers who show interest in upscale, upper priced
stores (NCSU, 2012). In addition to noting race and ethnicity, the vast majority of
individuals who are going to be in the Buckle are going to be single. Married individuals
comprise a smaller percentile of the Buckle market. These individuals are more than
likely shopping with (and/or for) their kids who meet the 15-18 years of age category.
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GOALS AND OBJECTIVES
Goals for Guest Connect
1: Increase awareness of Guest Connect
2: Increase guest participation in Guest Connect
3: Increase customer store traffic from Guest Connect Leads
4: Develop a new Guest Connect Customer Relations Database System
Objectives for Guest Connect
Goal 1: Increase awareness of Guest Connect
Objectives:
1. Increase Guest Connect enrollment by 100 guests per store in Colorado by the end
of 2013.
2. Set an employee driven goal to promote the program to customers at least 10 times
per shift.
Goal 2: Increase guest participation in Guest Connect
Objectives:
1. Increase Guest Connect response by 20 guests per email blast by the end of 2013.
2. Decrease the number of Guest Connect participants who have not received an email
message in more than 4 weeks by 20 participants per week by the end of 2013.
Goal 3: Increase store traffic from Guest Connect leads
Objectives:
1. Cross-sell personal fit appointments with Guest Connect to schedule 10 personal fit
appointments per week at each store.
2. Increase the number of new-to-Buckle guests referred to the program by current
participants by 200 per store by the end of 2014.
Goal 4: Develop a new Guest Connect Customer Relations Database System
Objectives:
1. Organize the current Guest Connect system removing all participants who have
opted-out by the end of 2013.
Guest Connect Promotional Campaign Page 26
2. Design a new system to track Guest Connect participation analytics and consumer
purchase behavior, implemented by the second quarter of 2014.
3. Integrate Guest Connect into a single company-wide database by the third quarter
of 2014.
4. Introduce and train employees on the system in Colorado’s 10 stores by the fourth
quarter of the year 2014.
5. Enable employee’s access to the integrated Guest Connect database by the end of
2014.
6. Integrate the new database system with a mobile application.
Guest Connect Promotional Campaign Page 27
TACTICS
Goal 1: Increase awareness of Guest Connect
Objective 1: Increase Guest Connect enrollment by 100 guests per store by the end of
2013.
Tactic: Recommended by employees at the point-of-sale or while shopping, run a
referral-based promotion incentivized by product discounts. (See Appendix B)
Tactic: Place signage promoting the campaign in stores to “Refer-a-friend to Guest
Connect for a chance at a $1000 shopping spree” using:
11” by 17” posters
4” by 6” window decors
8” by 10” window decors
4’ by 8’ window posters
1.5’ by 5’ banners
(See Appendix B for examples)
Tactic: Give guests newly developed tri-fold business cards, with perforated edges
for admittance to incentivized promotions. (One fold easily tears off, for a friend,
who brings that tear-off back. The guest who gives the tear-off is entered to win. See
Appendix C for examples)
Objective 2: Set an employee driven goal to recommend and promote the Guest
Connect program at least 10 times per shift.
Tactic: Create a daily agenda or task list that includes the ongoing activity to
recommend the program.
Tactic: Reward employees for promoting Guest Connect beyond 10 notable times
per shift with “Buckle Bucks.” For management, design Guest Connect to track when
an employee has registered a newly connected guest.
Goal 2: Increase participation in Guest Connect
Guest Connect Promotional Campaign Page 28
Objective 1: Increase Guest Connect response by 20 guests per email blast by the end of
2013.
Tactic: Include in Guest Connect emails, promotional incentives for store visitation.
E.g. “purchase more than x amounts of brand y, and receive $5 off your next
purchase.”
Tactic: In sending Guest Connect emails, promote the fitting service for applicable
products.
Tactic: Allow employees to check applicable guests into a VIP list. (Guests qualify for
VIP status if they spend over $2000 a year at Buckle).
Objective 2: Decrease the number of Guest Connect participants who have not received
emails in more than 4 weeks by 20 participants per week by the end of 2013.
Tactic: Add this objective to the daily agenda/task list, further ensuring that
employees check the frequency of Guest Connectedness.
Goal 3: Increase store traffic from Guest Connect leads
Objective 1: Cross-sell personal fit appointments with Guest Connect to schedule 10
personal fit appointments per week at each store.
Tactic: In sending Guest Connect emails, promote the fitting service option for the
products that are applicable.
Tactic: With tri-fold Guest Connect referral tear-off cards, promote the personal-
fitting service option.
Tactic: Create a daily agenda/task list, including the ongoing activity to recommend
the program.
Objective 2: Increase the number of new-to-Buckle guests who are referred to the
program by current participants by 200 per store by the end of 2014.
Tactic: Recommended by employees at the point-of-sale or while shopping, run a
referral-based promotion incentivized by product discounts. (See Appendix B)
Guest Connect Promotional Campaign Page 29
Tactic: Place signage promoting the campaign in stores to “Refer-a-friend to Guest
Connect for a chance at a $1000 shopping spree” using:
11” by 17” posters
4” by 6” window decors
8” by 10” window decors
4’ by 8’ window posters
1.5’ by 5’ banners
(See Appendix C for examples)
Tactic: Give guests newly developed tri-fold business cards, with perforated edges
for admittance to incentivized promotions. (One fold easily tears off, for a friend,
who brings that tear-off back. The guest who gives the tear-off is entered to win. See
Appendix C for examples)
Goal 4: Develop a new Guest Connect Customer Relations Database System
Objective 1: Organize the current Guest Connect system removing all participants who
have opted-out by the end of 2013.
Tactic: Assign one employee (preferably a corporate team member) to go through all
the Colorado stores’ Guest Connect databases and delete every single guest who has
opted-out of receiving notices.
Objective 2: Design a new system to track Guest Connect participation analytics and
consumer purchase behavior implemented by the second quarter of 2014.
Tactic: Purchase a customer relations database software either pre-developed to the
new specifications or ready to be designed for such.
Tactic: Design the new system to track and measure the frequency at which a guest
receives notification, goes into a store, and makes a purchase, as well as, which
brands are the most common amongst connected guests. The system should include
the following:
Guest Connect Promotional Campaign Page 30
Product arrival updates should occur automatically. Point of sale and intranet
need to be harmonized.
In monitoring the frequency at which guests visit and purchase, it should
automatically delete guests who have opted-out.
The system should track guests who have referred new guests, the amount of
times they have and the amount of money they spend to verify if they’re
keeping their VIP status.
Allow a Search by name feature, for not only brands and other general
interests, but by guest name as well.
The system should track basic demographics and behavioral variables. (E.g.
race, gender, income, brands of preference, shopping behavior, visits more on
Saturday vs. Sunday, etc.)
Objective 3: Integrate Guest Connect into a single company-wide database by the third
quarter of 2014.
Tactic: Empower the new Guest Connect customer relations database system to
externally connect Buckle stores for a more collaborative approach by connecting
databases within a geographic region. (E.g. “BKE Boutique just arrived at Park
Meadows and Cherry Creek -just in case you are nearby one of these locations
today…”)
Objective 4: Introduce and train employees on the system in Colorado’s 10 stores by the
fourth quarter of the year 2014.
Tactic: Develop training material that assists in a clear, near flawless, transition.
Tactic: Schedule and conduct employee training.
Begin with the busiest stores. The training process will work top-down, from
corporate implementers- to store managers- to shift leaders- to
crewmembers.
Guest Connect Promotional Campaign Page 31
Objective 5: Enable employee’s access to the integrated Guest Connect Database by the
end of 2014.
Tactic: Upon training completion -launch the database- assigning employees user
names and passwords, to effectively monitor their client and referral activity.
Tactic: Reward employees for referring and signing guests up.
Objective 6: Integrate the new database system with a mobile application.
Tactic: Using the same tech savoy employee or a third party, design an application
that will sync with the Guest Connect customer relations database system, so guests
may take their appointments and notifications on the go.
Tactic: Allow guests a VIP fit-appointment link option with their preferred brands
through the application.
Tactic: Send Buckle Promotions through the application.
Tactic: Link Buckle credit cards through the application.
Guest Connect Promotional Campaign Page 32
EFFECTIVENESS EVALUATION
(Refer to pages 29 to 33)
Objectives for Guest Connect
Goal 1: Increase awareness of Guest Connect
Objectives:
1. Increase Guest Connect enrollment by 100 guests per store in Colorado by the
end of 2013.
2. Set an employee driven goal to promote the program to customers at least 10
times per shift.
Goal 1, Objective 1:
Using the present date of the promotional campaign as a starting point, sum the
total of active guests enrolled for the initial count of active guests. At the end of
December 2013, recount the total of active guests on Guest Connect and confirm
an additional 100.
Through record at the point-of-sale, record the amount of guests that took
advantage of the, “refer a friend and receive 5 percent off” promotion. Perhaps
through a survey, or pop-up note made in the system. The higher this number is,
the more effective the store teams have been in promoting the Guest Connect
program.
Create a small survey, embedded in the POS system that records, per entry of
the employee, whether the guest pursued the “5 percent off” or “$1000
Shopping Spree” promotions, from word of mouth, Guest Connect email, store
signage, etc.
At the point of sale, acquire and save the tri-fold tear-offs to be counted monthly
for an effective measurement of receiving 100 tear-offs per month, and for a
quarterly shopping spree drawing.
Guest Connect Promotional Campaign Page 33
Goal 1, Objective 2:
Through observation, the ‘Buckle Sign-Up Sheet’ or the Guest Connect customer
relations database system via account access logs, monitor the frequency at
which employees recommend or mention Guest Connect.
Record the amount of ‘Buckle Bucks’ given to employees. The higher the Buckle
Bucks, the more productive the employee is, in essence, the more successful
Guest Connect.
Goal 2: Increase guest participation in Guest Connect
Objectives:
1. Increase Guest Connect response by 20 guests per email blast by the end of
2013.
2. Decrease the number of Guest Connect participants who have not received an
email message in more than 4 weeks by 20 participants per week by the end of
2013.
Goal 2, Objective 1:
At the point-of-sale, require guests to mention whether they are in Guest
Connect, noting if they’re purchasing the required amount of brands and
receiving $5 off of their purchase. In this way, Buckle knows that the guest is
participating in not only Guest Connect, but promotions as well, and whether or
not this promotion draws guests in.
When guests enter into the $1000 shopping spree, track whether they found out
via the tri-fold Guest Connect card, through in-store promotions, etc. evaluating
which method is more effective.
Through the Guest Connect customer relations database system, monitor the
amount the VIP’s and whether or not this number is increasing.
Goal 2, Objective 2:
By the end of the 2013 business year, verify all of the inactive Guest Connect
accounts been removed from the system.
Guest Connect Promotional Campaign Page 34
Goal 3: Increase store traffic from Guest Connect leads
Objectives:
1. Cross-sell personal fit appointments with Guest Connect to schedule 10 personal
fit appointments per week at each store.
2. Increase the number of new-to-Buckle guests who are referred to the program
by current participants by 200 per store by the end of 2014.
Goal 3, Objective 1:
Beginning in June of 2013, utilize the month to measure how many fit-
appointments are scheduled; this is a base number to measure effectiveness.
Upon scheduling fit-appointments moving forward (July-December), note the
source of incentive for the appointment, Guest Connect Email vs. Tri-fold
business card. The promotional strategy with more response is the more
effective strategy, thus the one that should be pursued further.
Goal 4: Develop a new Guest Connect Customer Relations Database System
Objectives:
1. Organize the current Guest Connect system, and remove all participants who
have opted-out by the end of 2013.
2. Design a new system to track Guest Connect participation analytics and
consumer purchase behavior implemented by the second quarter of 2014.
3. Integrate Guest Connect into a single company-wide database by the third
quarter of 2014.
4. Introduce and train employees on the system in Colorado’s 10 stores by the
fourth quarter of the year 2014.
5. Enable employee’s access to the integrated Guest Connect database by the end
of 2014.
6. Integrate the new database system with a mobile application.
Goal 4, Objective 1:
Guest Connect Promotional Campaign Page 35
Beginning June 2013, start deleting Guest Connect accounts that have opted-
out. Check the progression of the monthly, to ensure that the number is
decreasing.
At the end of December 2013, are all of the opted-out and inactive guests
deleted from the system?
Goal 4, Objective 2:
Ensuring that the newly developing system is working, run trials that force the
system to inquire all the newly desired measurements.
Goal 4, Objective 3:
Is the system connecting all the desired and relevant variables amongst store
within the reasonable geographic location? At this point, absolutely no glitches
within the system in running a query should be present. Effectiveness requires
none.
Goal 4, Objective 4:
All ten stores are trained and ready to begin operating the new Database.
Goal 4, Objective 5:
All employees within the state have their own login user name and password.
Goal 4, Objective 6:
Application is designed and on the market. Effectiveness evaluation relies on the
amount of people downloading the application; a measurement goal of at least
100 downloads per month.
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IMPLEMENTATION SCHEDULETime line established to enact previous goals, objectives and tactics effectively
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Thrid Quarter
Guest Connect System is connected to all Colorado locations
Employees are trained to operate the system and given logins and passwords
Promotional Pieces and Creatives ordered
Application Designed, and put on the market -Just in Time for the Holidays!
Second QuarterThe New Guest Connect System is fully designed, final glitches are worked out In-store team plan for promoting chosen tactics designed
First Quarter of 2014Purcahse CRM Software Assign Employee(s) to the project and design the system to include initiatives of Goal
4, and its objectives
Fourth Quarter of 2013Verify that all opted-out guests are completly removed from the system
Second-Third Quarter of 2013Total Count of Active Members in Guest Connect Begin removing guests who have opted-out of Guest
ConnectConfirm creative designs/promotional pieces for the
Guest Connect Campaign
BUDGET
Guest Connect Campaign Creative Quotes
Company Type Unit Quantity Cost
Signazon
1.5' by 5' vinyl banner $19.53 20 $390.60
8" by 10" vinyl window décor $37.12 100 $3,712.00
4" by 6" vinyl window décor $4.56 100 $456.00
4' by 8' window vinyl posters $98.10 40 $3,924.00
11" by 17" posters $15.77 150 $2,365.50
tri-fold Business Cards $66.95 24,000 $669.50
(for 2500) tax n/a
Total $11,517.60
Raven Printing
1.5' by 5' vinyl banner n/a 20 $920.00
8" by 10" vinyl window décor n/a n/a n/a
4" by 6" vinyl window décor n/a n/a n/a
4' by 8' window vinyl posters n/a 40 $5,140.00
11" by 17" posters n/a 150 $160.23
tri-fold Business Cards n/a 24,000 $949.48
tax $573.73
Total $7,743.44
FedEx (kinkos)
1.5' by 5' vinyl banner n/a 20 $1,320.00
8" by 10" vinyl window décor n/a 100 $364.00
4" by 6" vinyl window décor n/a 100 $110.50
4' by 8' window vinyl posters n/a 40 $5,632.00
11" by 17" posters n/a 150 $225.60
tri-fold Business Cards n/a 24,000 $4,350.25
tax n/a
total $12,002.35
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To best utilize the given resources, the preferred budget will be derived from a
cross order between Raven Printing and FedEx Kinkos, in which the 1.5’ by 5’ banners, 4’
by 8’ window posters, 11” by 17” posters and tri-fold business cards will be completed
by Raven Printing, with the 8” by 10” and 4” by 6” window decors printed by FedEx
Kinkos. Please refer the Appendix for example of the creatives to be given to the print
companies. Electronic format will be given, upon which their completion of the project.
This cross order minimizes costs to best economical value, while still enabling the full
extent of the campaign.
The cost of acquiring the newly developed Guest Connect Database software is
as follows with the chosen software:
Costing roughly $2500.00 per store, for 10 stores in the state of Colorado,
implementing Infusionsoft will come to a grand total of $25,000.00.
This cross order minimizes costs to best economical value, while still enabling the
full extent of the campaign. Including the price of the CRM software, the full budget
implement the campaign (not including labor costs) is as follows:
Raven Printing $7743.44
FedEx Kinkos $474.50
Infusion Soft $25,000.00
Total $33,217.94
Guest Connect Promotional Campaign Page 39
RESOURCESAldrich, S. (2012, December 31). Online Sales Tax Legislation: How Three Bills
Could Small Business. The Washington Post. Retrieved from
http://www.washingtonpost.com/blogs/on-small-business/post/online-sales-tax-
legislation-how-three-bills-could-affect-small-retailers/2012/12/13/d67d0010-4545-
11e2-8e70-e1993528222d_blog.html
The Apparel Industry. (2013). Checkpoint: Helping Retailers Grow Profitability.
Retrieved from http://www.checkpointsystems.com/~/media/Files/White-Papers-and-
Studies/TheApparelIndustrysNewReality_CKPWhitePaper.ashx
Buckle Corporate. (2013). Buckle Careers. In www.buckle.com. Retrieved April
2013, from http://www.buckle.com/jobscareers/why-buckle
Buckle. (2011). 2011 Buckle Annual Report. Buckle Corporate, 5, 1-46. Retrieved
from http://corporate.buckle.com/investors/annual-reports
Buckle. (2012). 2012 Buckle Annual Report. Corporate Buckle, 6, 1-30. Retrieved
from http://corporate.buckle.com/investors/annual-reports
Carolyn A. Martin, (2005) "From high maintenance to high productivity: What
managers need to know about Generation Y", Industrial and Commercial Training, Vol.
37 Iss: 1, pp.39 – 44
Carpenter, J. (2009). Consumer Demographics, Retail Attributes, and Apparel
Cross Shopping Behavior. Journal of Textile and Apparel, Technology and Managemenr,
1. Retrieved from http://ojs.cnr.ncsu.edu/index.php/JTATM/article/view/486/359
Clifford, S. (2012, November 19). Retailers Add Politics and Nature to Their
Holiday Worry List. The New York Times. Retrieved from
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http://www.nytimes.com/2012/11/20/business/election-storm-and-shaky-economy-
affect-holiday-shopping.html?_r=2&
Crutchfield, D. (2013, January). 4 Consumer Trends that Will Drive Marketing
Growth in 2013. Forbes. Retrieved from
http://www.forbes.com/fdc/welcome_mjx.shtml
FTC. (2013). Legal Resources. In www.FTC.com. Retrieved April 29, 2013, from
http://business.ftc.gov/legal-resources/1/33
How Fashion Retailers Are Redefining E-Commerce With Social Media. (2011,
March 7). In www.mshable.com. Retrieved April 29, 2013, from
http://mashable.com/2011/03/07/fashion-retailers-social-e-commerce/
Nisen, M. (2012, November). The 10 Hottest Consumer Trends for 2013. Business
Insider. Retrieved from http://www.businessinsider.com/the-10-hottest-consumer-
trends-for-2013-2012-11?op=1
NRF. (2011). Organized Retail Crime Survey. The National Retail Federation, 1-10.
Retrieved from http://www.nrf.com/modules.php?
name=News&op=viewlive&sp_id=1132
O'Meara, B. (2013, January 7). Top Technology Trends for the Retail Industry in
2013 [Online forum comment]. Retrieved from
http://blogs.technet.com/b/vertical_industries/archive/2013/01/07/top-technology-
trends-for-the-retail-industry-in-2013.aspx
Villano, Emily. Personal Interveiw. Email. April, 2013
Retail Challenges [Industry Intelligence from First Research]. (2013, January 7). In
Guest Connect Promotional Campaign Page 41
www.sikich.com. Retrieved April 2013, from
http://www.sikich.com/find-solution/industries/retail/retail-challenges
Retail Salis. (2011, March 16). How Is Technology Changing the Retail Industry. In
www.istockanalyst.com. Retrieved April 28, 2013, from
http://www.istockanalyst.com/article/viewarticlepaged/articleid/4974252/pageid/3
Skinner, S. (2011, March 4). Engaging Shoppers with Intelligent Stores. The
Harvard Business Review. Retrieved from
http://blogs.hbr.org/cs/2011/03/engaging_shoppers_with_intelli.html
The Staff U.S. BLS. (2013, March). Current Employment Statistics Highlights. In
www.bls.gov. Retrieved May 1, 2013, from
http://www.bls.gov/web/empsit/ceshighlights.pdf
U.S. Retail Industry Feels the Aftershocks of the Japanese Earthquake and
Tsunami as Stock Prices Suffer Collateral Damage (COH, TIF, GPS, APP, ANF, APPL, COST,
WMT, TOY). (2011, March 15). In www.about.com. Retrieved April 2013, from
http://retailindustry.about.com/b/2011/03/15/u-s-retail-indstry-feels-the-aftershocks-
of-the-japanese-earthquake-and-tsunami-as-stock-prices-suffer-collateral-damage-coh-
tif-gps-app-anf-appl-cost-wmt-
Unites States Consumer Confidence. (2013, April). In
www.tradingeconomics.com. Retrieved April 29, 2013, from
http://www.tradingeconomics.com/united-states/consumer-confidence
WSJ. (2013, April). Consolidated Summary of March Retail Sales Results. The Wall
Street Journal, p. 1. Retrieved from http://online.wsj.com/article/BT-CO-20130411-
709198.html?mod=WSJ_qtnews_wsjlatest
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APPENDIX A
The Buckle Company SWOT AnalysisSTRENGTHS:
430 stores and expanding
Brand Equity, Well-known, present in 43
states
Efficient distribution center that ships
merchandise in 2-3 days
Diverse Product Lines, Specialized
inventory to reflect local tastes
Incredibly loyal staff, management team
and board members
Private-label and exclusive merchandise
Little debt
WEAKNESSES:
Fluctuations in comparable stores net
sales results
Very localized markets with stores that
compete against each other
No company-shared customer
management system (store specific)
Reliant on key personnel (leadership
team), small number of full-time
employees
Reliant on foreign producers
Lack of social media presence (recycled
instead of targeting promotions)
OPPORTUNITIES:
Anticipate and respond to changing
customer demands and preferences more
efficiently
Source merchandise more efficiently
(more top-selling/competitive brands?)
Further developing consumer perception
of quality
Develop technology systems to keep up
with consumer/social developments
THREATS:
Brand saturation and possibility of
cannibalizing sales
Retail industry is highly competitive,
specifically for: fashion, selection, quality,
price, location, service and atmosphere—
especially in mall
Time-sensitivity of
inventory/merchandise
Rising product and labor costs
Reliance on consumer spending
trends/consumer confidence
Growing costs of healthcare and changing
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tax rates for businesses
Guest Connect Promotional Campaign Page 45
APPENDIX B
Concept #1 Refer-a-friend to Guest Connect Tri-fold enrolment cards for Back to School promotion
Guest Connect Promotional Campaign Page 46
Concept #2 Refer-a-friend to Guest Connect Tri-fold enrolment cards for Holiday promotion
Guest Connect Promotional Campaign Page 47
APPENDIX C
Concept #1 Refer-a-friend to Guest Connect In Store Signage for Back to School promotion with incentive of shopping spree
Guest Connect Promotional Campaign Page 48
Concept #2 Refer-a-friend to Guest Connect Dressing Room Window Decors for Holiday promotion
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APPENDIX D
The Buckle’s Net Sales for 2010, 2011, 1012
http://corporate.buckle.com/investors/annual-reports
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APPENDIX E
The Retail Industry’s Total Sales (in Billions of dollars)
http://online.wsj.com/article/BT-CO-2013041709198.html?mod=WSJ_qtnews_wsjlatest
This graph shows the decline resulting from the end of the 2012 holiday sales and the
growing first and second quarters of the 2013 fiscal year.
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Total Holiday Spending Totals for 2012
http://www.nrf.com/modules.php?name=Pages&sp_id=449
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Consumer Shopping Behavior and Preference
http://ojs.cnr.ncsu.edu/index.php/JTATM/article/view/486/359
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Demographic Variables Compared to Shopping Behavior and Preference
http://ojs.cnr.ncsu.edu/index.php/JTATM/article/view/486/359
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International Consumer Prices
http://online.wsj.com/article/SB10001424127887324582004578457164283144142.html
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Consumer Confidence Scores 2011 to 2013
http://www.tradingeconomics.com/united-states/consumer-confidence
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