Module 1 Discussion

2a.– D14: Tot. Solids Purchase of Class 10

– D17: Tot. Fancies Purchase of Class 10

2b. 15 (including private label)2c.

– Class 10: moderate price, full-cut

– Class 20: higher price, full-cut

– Class 30: designer, full-cut

– Class 40: designer or better price, fitted

Module 1 Discussion

2c.– Best seller: class 10 (94,680 units)– Second: class 40 (43,460 units)– Third: class 30 (38,590 units)– Fourth: class 20, Recommendation?– F (units sold), H (% sold), O (gross sales)

Module 1 Discussion

2d.– Class 10: middle class & conservative– Class 40: higher income & young professional– Class 30: prefers designer brands &

conspicuous consumers– Class 20: prefers expensive

Module 1 discussion

3a. Row 503b.

– Solid or fancy? (%? Price? Cell?)

• Solid 65%, fancy 35%

– Spread or buttondown? (%? Price? Cell?)

• Spread 70%, buttondown 30%

– Outsell %?

Module 1 Discussion

3c.

– Solids + fancy

– Buttondown + spread

– SB+FB+SS+FS

– Tot. units purchase (D50) - Tot. units in stock (E50)

Module 1 Discussion4a.

– Highest: class 20 FS (58.49%)

– Lowest: class 10 FS (47.23%)

– Why % rather than $?

• % can be compared with different price points and it has finite range (0-100%)

• ($2-$1)/$2 = 50% ($20-$10)/$20 = 50%

4b. 50% is ind. avg. & Look at KC data

Module 1 Discussion

4c. Compare with KC– Our TO is higher.– Our avg. price is lower.– Our MU is lower except SB.– Net Sales

- COGS ----------------- Gross Margin

- Tot. exp. -----------------

Profit

Projections (Assignment)

Read Page 26.Sales forecast for the upcoming season

– Men’s dress shirt business for Fall/Winter 2003

– Research information

• Men’s fashion trends

• Consumer behavior

• Economic trends…

Projections (Assignment)

– Increase/decrease department business %– Increase/decrease class by class %– Increase/decrease styles (%) within classes

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