Forever 21 By Alyssa Donigan Britney Dimick Eva

Forever 21: By: Alyssa Donigan, Britney Dimick, Eva Diep, Kalesha Kirby, and Shamein Williams

Table of Contents: SWOT Analysis Media Choices Media Strategy Media Objectives Marketing Objectives

Company and Internal Trends:

Company Profile: q. Opened in 1984 q. Corporate headquarters is located in Los Angeles q. Supervised under the CEO Don Chang q. Offers inexpensive fashion-forward apparel q. Privately held company q. About 500 stores nationwide/ Some international locations (Korea, Japan, Canada) q. Functions under the banners: Forever 21, Forever XXI, Faith 21, Twelve by Twelve, Heritage 1981, Love 21, For Love 21, and Gadzooks. Forever 21. com

History: 2006 - At 40, 000 1984 - The first store is opened under the name Fashion 21 in Los Angeles. 1995 - Forever 21 2001 - Forever 21 Inc. opens in Miami, which is the first store outside California. By 1997 there are 40 locations opens its XXI flagship store in Texas, Miami, Chicago, Los Angeles and Edmonton. Average store are 24, 000 square feet. 1989 - Expansion of stores to 5, 000 square feet and the first store opening in a mall. 1999 - Forever 21 Inc. expands its average store to 9, 000 square feet. The clothing store begins to appear in prime mall locations. Forever 21. com square feet, Forever 21 Inc. opens its largest store to date in Pasadena California. 2005 - The company operates at 355 locations nationwide with brands Forever 21, Forever XXI, For Love 21, and Gadzooks.

SWOT Analysis: Strengths Weaknesses • Offers Current Fashions at a Great Value • Strong Customer Base • Prime Store Locations • Merger (Gadzooks Inc. 2005) • Variety of Fashion Line (Heritage 1981, HTG 81, Faith 21) • Emporium Style Store Format • Self-Serve Format • Intellectual Property Violations (Lawsuits: ex. Express, Trovata, Anthropologie) • Too Trendy • Does not offer a Catalog • Quality of Product Net. Advantage

SWOT Analysis: Opportunities Changing Customer Tastes Threats Internet Distribution and Sales Competitors such as Wet Seal Inc. , H&M Hennes & Mauritz AB, and Charlotte Russe Holding Inc. Mergers (Gadzooks, Gottschalks) State of the Economy Expansion of Fashion Lines (Kids, Men, Plus Size, Couture) Lack of Employment Opportunities International Growth (Japan, Korea, Canada, Europe) Changing Customer Attitudes Emporium Style Store Format Inventory Levels Net. Advantage

Internal Company Trends: • Total Market Sales: $150 Billion (2009) • Forever 21 Sales: $2. 2 Billion (2009) • 1. 47% Share in the Market Share in Apparel Industry Segment Growth • Accessories (For 21) • Beauty Products (love & beauty) estimated $60 million in sales • Menswear (Heritage 1981) • Extended Sizes (Faith 21) • HTG 81(Children’s Wear) • “Couture” Inspired Fashion (Twelve by Twelve) • Store Expansion in Europe • Shoe Line • Intimate Wear Segment Stagnation http: //www. firstresearch. com/Industry-Research/Clothing-Stores. html

Internal Company Trends: Trends in ad/IMC Gained $2. 2 billion in revenue (2009) which allows for expansion of store and customer base. Rapid expansion in a time of industry downsizing, demonstrates large SOV in its industry. There is a demand for stores. Use Facebook (Fan Page), Contests, Website

Industry and Market Trends:

Trends in Retail Stores: Industry Trends Seasonal Trends Consumer Trends Financial Trends in Sales

Industry Trends: Retail stores in America have been growing in energy conservation and organic clothing creation: • Reusing materials sold in stores that are still fashionable • Trends: recycling post-consumer goods to be turned into entirely new items in stores JC Penney: develops products in weeks, not months: • Cycle Time Reduction initiative • Shortens time to create products H&M: speeds up production cycle: • Uses designer-inspired clothes such as Jimmy Choo Charlotte Russe and Wet seal are making profits: • Consumers are buying only what they know is already popular and paying sellers 35% to 50% of the price for which they plan to resell each item

Financial Trends: • Increase attention rate Financial to increase profitability supply chain management: Companies consider: • Operations • Financial aspects Retail stores: • H&M, JC Penney, Kohl’s – know benefits of financial sales in their company Mid-Market stores: • Gap and American Eagle – under pressure as compared to sales of above retail stores Retailsailes. com

Trends in Sales: Consumers who make early purchases: • Pay premium price for new styles Trends in sales: • Large number of retailers with convenient shopping opportunities Consumer spending: • More convenient due to internet shopping Consumers more sophisticated and knowledgeable: • Understand what is offered and available, due to catalogs, magazines

Consumer Trends: These retail stores have had: • 93% of the most coupons/discount s available to consumers in the past year. Discounts and coupons: • Increase sales and make products more valuable Retailers have been developing innovative approaches: • Lower costs • Satisfy wants/needs Three important Trends: • Target Market (women 18 -24) • Growing ethnic diversity • Increasing sophistication of shoppers

Seasonal Trends: GROWTH: • Forever 21 is growing their line of clothing to “Plus Size” women and to a “Men’s” clothing line LACK OF GROWTH: • Forever 21 is purely a fashionably trendy line of clothing and sticks to that appeal. SEASONAL TRENDS: • Retail stores bring out clothing lines before the season begins. • “The timing effect, ” is effective with the sale of clothing for a particular time period. Seasonal merchandise early: • Consumers get products faster • Merchandise is sold at a discounted retail price

Industry Structure and Competition:

Market Value: üHere are some competitors and their competitive position in 2008: Abercrombie & Fitch Subsector Share % Men, women and Children 1. 1 Rank 7 Gap Inc. Subsector Women’s Outerwear Men’s Outerwear Children's wear Share % 5. 05 4. 13 4. 43 Yahoofinance. com Rank 1 1 1

Economic Trends: Before 2000 a lot of people could shop and afford expensive items. Now in the recession a lot of consumers are becoming “savvy shoppers” looking for discounts and sales. This is where Forever 21 plays an important role, creating affordable clothes. Table of Unemployment rate for 2009. December 2009 November 2009 December 2008 New York State 9. 0 8. 6 6. 6 United States 10. 0 7. 4 New York City 10. 6 10. 0 7. 0 Yahoofinance. com

Economic Trends: Unemployment rates reflect: • How a lot of Americans are not spending as much due to mortgages, car notes, grocery bills, etc. • If consumers do spend they watch for discounts and sales to save money. • Compared to 2008, where the unemployment rate was 7. 4% in the US, more consumers were spending and did not worry about prices. Now in 2009 where the rate is 10. 0%, a lot of people worry about quality and quantity to determine what is a “good” price. http: //www. portal. euromonitor. com. rlib. pace. edu/Portal/Document. Vie w. aspx

Competition: Some of the main direct competitors and their strategies are: • H&M • Operates in 36 countries. • Starting to use more sustainable materials. • Wet Seal • Leading specialty retailer • Operates 504 stores and 80 Arden B. stores • Had an comparable store sale increase of 4. 7% up from -6. 6% from the pervious year. • Abercrombie and Fitch • Aggressively pursuing organic growth strategy. • Refuses to join competitors in slashing prices. • Plans to open 17 stores in FY 2009, including 11 domestic and six international stores.

Competition: Main indirect competitors and their strategies are: GAP MACY’s JCPennys • Extending existing lifestyle brands & developing new brands. • Signed franchise agreement to introduce GAP and Banana Republic in the Philippines, opening 12 stores there by 2012. • Launch first accessories-only branch of Banana Republic called Edition in 2009. • Gap is the largest specialty clothing retailer in the US. • Continued to be the leading department store operator in the US in 2009. • Phased out Bloomingdales by mail catalogues in early 2009. • In may 2008, established agreement with FAO Schwarz to open toy stores within its department stores. • One of America’s leading retailers • Executing a strategic lone range plan that consists of 4 integrated strategies. Yahoofinance. com

How the 4 P’s Work: Forever 21 locations are key to it’s success, having hundreds of stores all around the country and making them all department size stores will set it apart from other specialty retailers. Forever 21 now operates more than 450 stores in the U. S. , with international operations in Canada and Japan. Placement "We've always had this vision of a fashion department store; our owner always wanted to go in that direction at some point, " Meyer, CFO said.

How the 4 P’s Work: They created several lines to include in stores: • Twelve by Twelve- French inspired line • Faith 21 - inspired for plus size consumers • Heritage 1981 - inspired for the more modern consumer Forever 21 is known for improvement and innovation by creating new lines, setting it apart from it competition. Product

Target Audience and Analysis Segments

Target Audience Analysis and Segments: Who are the current users of Forever 21? • Forever 21 appeals to a junior audience who are likely teenagers to young adults. • Cater to young women and men who are on a budget. • Focus on individuals who are style conscious and are trend savvy shoppers.

Demographics: In the past Forever 21 catered to young women and men on a broad scale. At present there’s a Forever 21 for every one. There’s cutting edge fashion for infants and new children's wear collection, which will be carried in 62 doors starting Friday 29 th, 2010. Forever 21 is a formidable competitor, they now have a segment for Plus size women. The new line Twelve by Twelve aim for the “New 30”. The new Forever XX 1 concept would help the chain appeal to customers over age 24, a demographic that represents more than one-third of Forever 21's customers, with 45 percent falling between 18 to 24 and 20 percent under 18.

Demographics: 2009 Statistics: US • Households: 1, 272, 397 (1. 10%) • Median HH Income: $32, 163 • Lifestyle Traits • Shop at The Gap • Go to movies • Read Ser Padres • Watch Noticiero Telemundo • Volkswagen cars Demographics Traits: §Urbanicity: Urban §Income: Lower-Mid Income §Producing Assets: Low Age §Ranges: <35 §Presence of Kids: Family Mix §Homeownership: Renters §Employment Levels: WC, Service, Mix §Education Levels: Some College §Ethnic Diversity: White, Black, Asian, Hispanic http: //www. claritas. com/My. Best. Segments/Default. jsp

Target Audience Analysis and Segments: Female who are African American, Asian and Hispanic are the top shopper at forever 21. � 26% are from ages 13 -17 � 46% are from ages 18 -34 who are buyers and users � http: //www. quancast. com

Psychographics: Apparels-quick, new and exciting creative clothing designs, young and fun. � Fashion/Cosmetics/ Shoes-the driving force behind the fashion industry. Young women express themselves because at forever 21 is indulgent, fast fashion, edgy looks and inexpensive. � Consumer confidenceenthusiastic consumers � Personal Finance-Price lower 2% than competitors inexpensive yet luxurious. � Impulse shopper- hot trend turnovers for any season. � Brand loyal-value oriented products with cutting edge fashion. � Image leader-trendy and classy � DISC Personality- provides what consumers want and needs whether color, size for any season. �

Geographics: United States, Canada, Japan, Korea Forever 21 is mainly located in urban populated areas and the surrounding suburban areas There are stores in Southern California to Florida and reaching the northeast Internationally two stores in Tokyo

Target Audience Analysis and Segments: Actual or Porential Usage In 2001 expect to record$400 million in sales. International growth increase and is of importance to Forever 21, which did an estimated $2. 2 billion in sales for 2009. Turnover is great daily deliveries to restock an average 1, 500 styles carried in each store. An average store, about 7, 000 square feet, pulls in about $400 a square a month, or $4, 800 a year. Top location average $1, 000 a square. Expect to hit $10 million and $30 million in sales its first year for the new forever XX 1. Permits a larger selection in categories such as lingerie, swimwear, shoes and plussize apparel, than the fast-fashion chain is able to accommodate in its average stores of about 40, 000 square feet.

Positioning

Positioning: Current Economic situation: • Recession • Therefore, consumers would have to : • Cut costs • Save money How does it differ from competitors? • Fast-paced • “Disposable” clothing • Products have limited “life”

Positioning: H & M: Style: “urban chic” Price: can reach the hundreds, markdowns in 1 month Availability: Limited time with limited sizes Price: low price but no markdowns Style: Cute and colorful Clothing Quality: low

Positioning: Customer Wants: • Affordable • Low Price • Fashionable/Trendy • “almost indistinguishable from designer clothes” • Released own magazine

Positioning: Customers want to Look and stay young: Therefore, Forever 21 released new lines of clothing: • Twelve by Twelve • more mature audiences • Faith 21 • Plus sizes for the “Big and Beautiful Women” • Forever XXI • Men

Marketing Plan

Our Product: Patricia Field: Stylist for Sex and the City Forever 21 Clothing Chain Clothing Line for Forever 21 by Patricia Field

Our Product: “Patricia for Forever 21” • Designer Clothing for a lower price • Price Range: $20 -200 • Clothing, Shoes, and Accessories • Sex and the City Theme • New Logo

Indirect and Direct Competition: Direct: Indirect: H&M: Jimmy Choo Bloomingdales Zara Macy’s Urban Outfitters Lord &Taylor Ambercrombie & Fitch Nordstrom

Target Audience

Demographics: Age: 18 -24 Gender: Female Income: Upper-Mid ($45, 000+) Martial Status: Single, Not Married Education: Some College, College Grad http: //www. claritas. com/My. Best. Segments/Default. jsp

Psychographics: Early Adopters: Quick to check out new trends and experiment with new clothing (vertical: 40. 62% horizontal: 6. 25%) � Brand Name Oriented: More likely to buy designer name clothes (vertical: 33. 82% horizontal: 4. 95%) � Bargain Hunters: Look for steals on brand name clothing (vertical: 54. 52%, horizontal: 3. 41%) � Fashion-Forward: Ready to buy new trends and make a fashion statement (vertical: 32. 73% horizontal: 7. 05%) � Simmons Choices 3, http: //www. claritas. com/My. Best. Segments/Default. jsp

Psychographics (cont. ): � � � Brand Loyalty: Interested in clothing with recognizable name and theme (vertical: 63. 9% horizontal: 3. 46%) Liberal: (vertical: 56. 58% horizontal: 3. 31%) Enjoy Shopping as an Activity: (vertical: 65. 77% horizontal: 7. 21%) Regular Movie-Goer: (vertical: 19. 85% horizontal: 4. 79%) Interested in Nightlife Simmons Choices 3, http: //www. claritas. com/My. Best. Segments/Default. jsp

Geographics: Mainly Urban Areas and Surrounding Suburban Areas United States Based Possible International Expansion

Store Locations Google. Maps. com

Magazine Ads

Cosmopolitan Fashion advertisements in Cosmopolitan is a magazine that focuses on fashion, dating advice, and sex tips 29. 1 percent of Cosmopolitan readers are 18 – 24 year old women 23. 2 percent of people who read fashion magazines are 18 -24 year old women http: //www. mriplus. com/site/index. a spx? Aspx. Auto. Detect. Cookie. Support =1

Vogue Fashion advertisements in Vogue is a magazine focusing on fashion, hair, and make-up trends. 24. 6 percent of Vogue readers are 18 – 24 year old women 23. 2 percent of people who read fashion magazines are 18 -24 year old women http: //www. mriplus. com/site/ind ex. aspx? Aspx. Auto. Detect. Cookie Support=1

Glamour Fashion advertisements in Glamour is a magazine that focuses on fashion, beauty, sex, and health 24. 6 percent of Glamour readers are 18 – 24 year old women 23. 2 percent of people who read fashion magazines are 18 -24 year old women http: //www. mriplus. com/site/index. as px? Aspx. Auto. Detect. Cookie. Support=1

Patricia Field for Forever 21 It’s just a step away. .

Patricia Field for Forever 21 What’s your luxury?

Limited Edition Catalog

Limited Edition Catalog Patricia Field for Forever 21 will have a Limited Edition Catalog This catalog will be advertised in Cosmopolitan, Vogue, Glamour Magazines, and commercials The first 500 people to buy this limited edition catalog will receive discount coupons, and VIP to store sneak peak event at Union Square.

PATRICIA FIELD FOREVER 21 Limited Edition Catalog! Details inside catalog buy one now!

Limited Edition Catalog Patricia Field for Forever 21 OVER 100 FASHIO N TIPS! Sex And The City Look inside for a VIP ticket to our store opening! Contests, Fashion Tips, Coupons and more!

FASHION LAUNCH Advertisement in Limited Edition Catalog Promotes coupons for Patricia Field meets Forever 21 store line Promotes VIP ticket for the store’s premiere opening Flip the page for your VIP pass, store coupons, and more! Page 133, Fashion Encourages Sex and the City 2 movie premiere Store premiere is on May 28, 2010 and movie premiere is on May 27, 2010

Admits One VIP PASS Patricia Field for Forever 21 VIP pass This pass admits one person to the store sneak peak and the sex and the city 2 premiere Store sneak peak – May 26, 2010 Carrie on. . Store sneak peak and movie ticket! Movie premiere – May 27, 2010 Store opening – May 29, 2010

I-Phone App

Forever You Free to download Forever 21 website

Forever You This season’s hottest style Gift ideas Function Randomized outfit Mix and Match outfits

Forever You “Save” and “Share” option “Order Now” button Monthly contest

Facebook Group

Facebook Advertisements 34. 5% of Facebook users are 18 -24 year old women Links back to Forever 21 website http: //www. mriplus. com/site/index. aspx? Aspx. Auto. Det ect. Cookie. Support=1 facebook. com

http: //www. facebook. com/Forever 21

Forever’s Promotions Increase interaction with fans New contests • Ad contest • Forever You contest Forever 21 cares New tab • “Patricia Fields” tab

Billboard Ads

BILLBOARD ADVERTISEMENT Billboard will be up by April 29, 2010 to May 1, 2010 4 week net rate for billboard ad 8% of marketing plan budget will be devoted to billboard space http: //www. mta. info/mta/network. htm Price for billboard space roughly around $600 - $3, 500

BUS ADVERTISEMENTS Friends Stay Young Forever Average weekday ridership= 398, 272 Bus ads run around $600 - $10, 000 for a 4 week ad space Billboard ads will read: “Friends stay young forever” to tight into themes used

SUBWAY ADVERTISEMENTS Fashion advertising on subway billboard advertisements • Average weekday passengers = 7, 626, 264 • http: //www. mta. info/mta/network. htm

Commercial

Information on the Commercial Three target channels for commercial to appear on: • 31. 7% of all MTV watchers are female between 18 -34 years of age. • 42. 3% of all The N watchers are female between 18 -34 years of age. • 30. 8% of all VH 1 soul watchers are female between 18 -34 years of age. 15% of budget will be allocated to commercial. • Will have 4 different women • During the day each women has her own job to be at • During the night women meet up wearing their Patricia Fields for Forever 21. • Commercial ending with “Friends stay young forever” While females drink their cosmos.

Forever Night Out Premiere

What is the premiere about? Public Launch of Patricia Field for Forever 21 clothing Line. DJ Josh Madden Fabulous night of Cosmotinis and Magnolia Bakery. Located in Forever’s Union Square store. Appearance by Patricia Field and other fashionistas. Appearance of all the America’s Next Top Models.

The Show The Power!! The Wealth!! The Fashion show on top floor- models on the runway. Party on the first floor- Cosmotini and cupcakes

Premiere Rave A Night celebrating the launching of the new line- Patricia Field for Forever 21. What’s your luxury? Embracing your Wealth and Power in Fashion Splurge on clothing and sipping on cosmotini. A night of fashion, energy and fun.

Premiere Celebrate FOREVER ’S NIGHT OUT

Why cosmo and cupcakes? cosm otin i It has influence women around the world with its trend setting ways. Cosmopolitn and Magnolia Bakery are popular in Sex and the City. Women ages 18 -24 can definitely can relate.

Why America’s Next Top Model? It welcomes the most influential style setters in the fashion industry. ANTM is the #1 show in average viewers on CW 11. Models from each cycle will be show casing the New Line.

Patricia Field for Forever 21: The Contest!

The Contest Shop Buy Compete

The Contest! After the clothing line is launched, shoppers will compete with other shoppers to create the perfect outfit with the clothes. The contest will create awareness of the line after its launched. The winner will be featured in and help design an ad for the clothing line. 5% of the budget will be allotted toward this task

The Contest! The Contest will be advertised on Facebook and in store locations Patricia Forever 21 June 2010 Create your own outfit! Win a chance to be featured in our next ad!

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Works Cited Competition: Forever 21 Launches Larger Format. http: //galenet. galegroup. com. rlib. pace. edu/servlet/BCRC? vrsn=unknown&loc. ID=nysl _me_pace&srchtp=glbc&cc=1&mode=c&ste=72&tpc=Operations+%26 amp%3 B+Technology&tbst=ts. CM&tab=2&ccmp=Forever+21+Inc. &mst=forever+21&n=25& doc. Num=A 217808060&b. Conts=13223 Forever 21 Raising Profile In Japan. http: //galenet. galegroup. com. rlib. pace. edu/servlet/BCRC? vrsn=unknown&loc. ID=nysl _me_pace&srchtp=glbc&cc=1&mode=c&ste=72&tpc=Strategy+%26 amp%3 B+ Planning&tbst=ts. CM&tab=2&ccmp=Forever+21+Inc. &mst=forever+21&n=25&doc. Nu m=A 215717323&b. Conts=13223 Forever 21 Launches Larger Format http: //proquest. umi. com. rlib. pace. edu/pqdweb? index=3&did=1951135531&Srch. Mod e=2&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=126 7571954&client. Id=2088 Gap Inc, The - Clothing and Footwear – USA http: //www. portal. euromonitor. com. rlib. pace. edu/Portal/Document. View. aspx The Wet Seal, Inc. http: //wetseal. com/home. jsp

Works Cited Target Audience: Forever 21 Mulls Public Offering. Women’s Wear Daily: 5, February 18, 2005 ISSN: 0149 -5380 Lebhar Friedman, Inc Retailing Today, 46(11): 12, july 16, 2007 High-end designers stake their claim at mass. Lebhar Friedman, Inc Retailing Today, 46(11): 12, july 16, 2007 Size matter at Forever 21. Women’s Wear Daily: 13, July 26, 2006. ISSN: 0149 -5380 Fairchild Publications Inc www. Census. gov www. quantcast. com/forever 21. com. Source http: //www. claritas. com/My. Best. Segments/Default. jsp

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