Manolo Blahnik Project 2015 (Doc) - Part 1

Manolo Blahnik Hangisi Pump Justice Coburn, Courtney Woodard, Marissa Smith, Sidney Rosene Applied Concepts in Fashion Business 27-2910-02 Fall 2015 Date Submitted: December 3rd, 2015 Purpose: To Broaden Knowledge of The Merchandising Mathematics and Use of Excel in Decision Making Instructor: Sandra Henderson Williams

Table of Contents ● Overview of the Item: Page 2 ● History of the Brand and Competitors: Page 3 ● Ideal Retailer: Page 4 ● Demographics and Psychographics of the Customer: Page 4 ● Retail Selling Price: Cost and Markup: Page 5 ● Fixtures and Sales Per Square Foot: Page 5 ● Marketing Direction: Page 6 ● Merchandising Plan: Page 6 ● Merchandising Plan (With Formulas): Page 7 ● Cost Sheet: Page 8 ● Works Cited: Page 10 ● PowerPoint: Page 11

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Overview of the Item The Manolo Blahnik Hangisi Jeweled Pump was made famous on “Sex in the City.” It’s an iconic blue satin pump adorned with a sparkling crystal ornament with a four inch heel. The salon shoe has a textile upper (satin) with a dèleather lining and sole, and are made in Italy. They retail for $965. When purchased, the shoes are packaged in a white shoe box complete with a black Manolo Blahnik logo, and the shoes themselves are placed in an off-white dust bag featuring “MANOLO BLAHNIK” in white across the center. The box also has a white label that outlines the details of the shoes including the style/model, color, size information, and logo.

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History of the Brand and Competitors Manolo Blahnik, the designer of this iconic shoe, was born and raised in Spain. He graduated from the University of Geneva with a degree in Literature and Architecture, later he studied Art at the Ecole des Beaux-Arts in Paris, and then Stage Set Design at the Louvre Art School. Some of his previous jobs included working at a vintage clothing store, and later he worked for a boutique, Zapata, in London. His shoe empire was launched in 1970 not long after the editor and chief of US Vogue, Vreeland, looked him straight in the eye and said “Young man, do things, do accessories, do shoes;” and that’s exactly what Blahnik did. With a £2,000 loan, Blahnik bough Zapata from its owners and opened his own boutique. In 1977, his shoes began being sold in the United States at Bloomingdales. He was the first man to be featured on the cover of U.K. Vogue, and has won over ten awards for his remarkable designs and creativity. Today, his shoes are sold in 20 different countries.

The main competitors for Manolo Blahnik are Louboutin, Prada, Jimmy Choo, YSL, Valentino, and Alexander McQueen. Blahnik is set apart from his competitors though because he doesn’t change the style of his shoes much from season to season. He remains somewhat constant with his styles, and believes that is what his customers want and appreciate.

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Ideal Retailer Manolo Blahnik started out with shoes only at Bloomingdale’s, but now his shoes can be found at pretty much any luxury department store. The retailer that would be ideal for his shoes is Nordstrom. This is a well-known and accessible retailer that can be found in the U.S. The retailer’s requirements for sales associates in the shoe department are: have a high school diploma (or equivalent), proving ability to set and achieve sales goals, competitive drive and entrepreneurial confidence to succeed in a commission-based environment, demonstrate ability to develop relationships with customers and coworkers, knowledgeable and enthusiastic about fashion, excellent communication and interpersonal skill. Additionally, this retailer has about 610 associate in the shoe salon. A brief history of Nordstrom is that it was founded in 1901 by John W. Nordstrom and Carl F. Wallin. They began as solely a shoe retailer and then later expanded to offer other luxury goods that they are known for today. Nordstrom has over 300 stores in the US and Canada.

Demographics and Psychographics of the Customer Manolo Blahnik customers can be defined as educated women age 25-50 with a large disposable income. Blahnik shoes are especially popular with brides because of the elegant, timeless style.

Additionally, Blahnik is widely known among “Sex and the City” viewers since the famed Hangisi Pumps were worn by the main character, Carrie Bradshaw.

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Retail Selling Price: Cost and Markup The raw materials of the shoes include satin fabric (evening primed shine), two inch jewel embellishment with crystal-encrusted sparkles, four inch stiletto heel (105 mm)—self covered, leather sole—finished with paced leather lining and inside. It can be estimated that the fabric costs $40-$60, the jewel embellishment costs $75+, the heel costs $30. Then approximately $40$60 for labor. Then shipping and distribution from the Italian factory could cost $20-$30. This leads to a wholesale price of approximately $250 for the shoe. Other factors such as distribution to retailers and packaging are additional costs. Then with retail markup, that would bring the shoes to a selling price of $965.

Fixtures and Sales Per Square Foot As for displays and fixtures, the shoes would be displayed on high quality shoe fixtures. There would be about 2-6 units per each table in only one sample size. In the back there would be approximately 4 units per each size, color, and style. There would be about 30 square feet for the shoes leading to a recommended $6,060 sales per square foot. There are 11 Chicagoland Nordstrom stores that sell Manolo Blahnik which would equal 330 total square feet and $2 million

net

sales for the Chicagoland area.

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Marketing Direction Manolo Blahnik is not a brand that does advertising or promotion. Any advertising done involving the brand is done by the stores that sell the shoes such as Bergdorf Goodman. Blahnik has been quoted regarding the matter “Manolo, who doesn't advertise or show his collections, says he tries to "never get into the trap of trends", preferring instead to maintain his hallmark light, feminine look. "My shoes don't change drastically from season to season," he says. "I think it's awfully rude to ask someone to pay a lot of money for a pair of shoes, and then have them be 'out' the next season. People are not stupid. They know what they want, and they should get it. “ – Hello Magazine

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Merchandising Plan (With Formulas)

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COST SHEET Style #: _352385__________________________ Date: ___ 11/28/2015_____ Description: _

Satin Jeweled Pump_____________________ Season: _Fall 2015_________ Fabric: _Satin and Leather (sole) _______________________________________________

Size (US)

6

6.5

7

7.5

8

Size (Italy)

36.5

37

37.5

38

38.

5

Material Satin

Yardage 1

Leather

1.5

Total Material

2.5

Trim/Findings Crystal Buckle Thread

Quantity 1 1 spool

Insole label

1

Stiletto Heel

1

Total Trim

Price 85.00/ yd 48.00/ yd

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5 39

Cost 85.00 72.00 157.00

Price 2/150 4.18/ spool 100/ 20.50 50/ Heel

Cost 75.00 4.18 4.88 50.00 134.06

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Labor

Cost

Shoemaker 18.19/Hr Account Executive Commission Total Labor

40.00

Shipping Duty Overhead

20.04 60.04 Description Water Wool Warehouse

Cost 5.00 17.00 13.00

Total Manufacturing Cost: $___386.00__________ Markup: (Manufacturer) $___579.00___________________ Cost to Retailer: $____965.00________________________

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Works Cited

"Life's Work: Manolo Blahnik." Harvard Business Review. N.p., 01 Dec. 2010. Web. 27 Nov. 2015.

"Manolo Blahnik 'Hangisi' Jeweled Pump (Women) | Nordstrom."Nordstrom. N.p., n.d. Web. 19 Nov. 2015.

"Manolo Blahnik." Vogue UK. N.p., n.d. Web. 19 Nov. 2015.

"Manolo Blahnik / - Design/Designer Information." Manolo Blahnik / - Design/Designer Information. N.p., n.d. Web. 28 Nov. 2015.

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