Buckle promotional campaign

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


APPENDIX C.......................................................................................................................48



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


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.


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


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.


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.


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


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


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)


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.


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.


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


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


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


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


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


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


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.


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.


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


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.


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


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


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


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.


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


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.


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.


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.


TACTICS


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


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


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.


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)


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 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)


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:


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.


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.


EFFECTIVENESS EVALUATION

(Refer to pages 29 to 33)

Objectives for 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.



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.


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.


By the end of the 2013 business year, verify all of the inactive Guest Connect

accounts been removed from the system.



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.


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.


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.



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?


Ensuring that the newly developing system is working, run trials that force the

system to inquire all the newly desired measurements.


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.


All ten stores are trained and ready to begin operating the new Database.


All employees within the state have their own login user name and password.


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.


IMPLEMENTATION SCHEDULETime line established to enact previous goals, objectives and tactics effectively


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


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


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legislation-how-three-bills-could-affect-small-retailers/2012/12/13/d67d0010-4545-

11e2-8e70-e1993528222d_blog.html

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Studies/TheApparelIndustrysNewReality_CKPWhitePaper.ashx

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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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affect-holiday-shopping.html?_r=2&

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Insider. Retrieved from http://www.businessinsider.com/the-10-hottest-consumer-

trends-for-2013-2012-11?op=1

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trends-for-the-retail-industry-in-2013.aspx

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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


tax rates for businesses


APPENDIX B

Concept #1 Refer-a-friend to Guest Connect Tri-fold enrolment cards for Back to School promotion


Concept #2 Refer-a-friend to Guest Connect Tri-fold enrolment cards for Holiday promotion


APPENDIX C

Concept #1 Refer-a-friend to Guest Connect In Store Signage for Back to School promotion with incentive of shopping spree


Concept #2 Refer-a-friend to Guest Connect Dressing Room Window Decors for Holiday promotion


APPENDIX D

The Buckle’s Net Sales for 2010, 2011, 1012

http://corporate.buckle.com/investors/annual-reports


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.


Total Holiday Spending Totals for 2012

http://www.nrf.com/modules.php?name=Pages&sp_id=449


http://www.nrf.com/modules.php?name=Pages&sp_id=449

Consumer Shopping Behavior and Preference

http://ojs.cnr.ncsu.edu/index.php/JTATM/article/view/486/359


Demographic Variables Compared to Shopping Behavior and Preference

http://ojs.cnr.ncsu.edu/index.php/JTATM/article/view/486/359


International Consumer Prices

http://online.wsj.com/article/SB10001424127887324582004578457164283144142.html


Consumer Confidence Scores 2011 to 2013

http://www.tradingeconomics.com/united-states/consumer-confidence


Buckle promotional campaign

Marketing

Transcript of Buckle promotional campaign