Pricing

Profits & Markups in the Fashion Industry  

How does Banana Republic make a profit when they have a line of products that are discounted? 

If Banana Republic discounts their clothing 80% more people will come and buy their clothing so they will make a profit if they sell the maximum number of discounted items. If they do not make a profit, keystoning is an example of what can happen. Keystoning is the practice of marking up prices by 100% or doubling the cost. If people are dedicated customers they will buy their product even if the price went up. All companies want to accomplish in their business is to reach their breakeven point. 

It also depends on the demand. The change in the price will have a big impact on sales. 

Why did Banana Republic discount their products by a large amount?

In response to Lindsey Pinault

Best Green Companies in the U.S.

The link above gives a list of the best green companies in the United States. For example, in the retail industry Kohl's is the leading green company.

They have 137 locations with solar power, 761 energy star labeled stores, 305 leed certified buildings, and 60 electronic vehicle charging stations. Now you tell me what company is more eco-friendly then Kohl's. 

Marketing Channels and Supply Chain

During class we talked about Recycline and their marketing channels and supply chain. Other companies besides Recycline carry their products in stores. Agents and brokers are wholesaling intermediaries who facilitate the sale of a product by representing channel members but do not take title to goods. For an example, Alex and Ani is an eco-friendly, positive energy products that empower the spirit and body designed by Carolyn Rafaelian. She believes it is her lifes work to support communities and organizations while inspiring her customers. Alex and Ani products are sold in other stores such as,  Rumanoff's, Ciao Bella Moda Int'l, The Paper Store, Bloomingdal'es and more. The website attached shows the stores where customers can buy Alex and Ani  jewelry. 

http://www.alexandani.com/locations. 

Do you think that Alex and Ani are a big jewelry company now because of their marketing techniques? 

In Response to Ariana Barone

Would you agree that public affairs is the most important form of public relations?

I definitely believe that public affairs is the most important form of public relations. Companies want to make an impact on community around them. Public affairs should be in important part of a companies overall plan.  This is likely to require a much higher degree of interaction with their target audience. Having someone specifically working on publicity would be a good idea. Getting the name and idea of the product out in a creative way will make others remember the product. Building strong ties with the community is another important factor. 

Gender Segmentation

There are some products that are sold that are specifically for a gender. Below is a youtube video of a Miller Lite commercial. Gender segmentation is the process of dividing a total market into groups with relatively similar products needs to design a marketing mix that matches those need. This commercial displays gender segmentation because light beer is not for men. But in the commercial the man is wearing a scarf that he believes in style so the bartender gives him a light beer because he is not manly enough.

In Response to Kevin Provost

So why are they closed when they could be having their biggest day of the week???

This video is an example of what your explaining. Banks should be open after the normal work hours because everyone works during the normal work hours and are not able to go to the bank. Motorcycle stores are probably closed on the weekends because the workers need to have a break from work to. It wouldn't be fair to have motorcycle stores open on the weekend when the employees have worked all week and want to be with their families. 

Social Influences on Consumer Buying Decisions

When you are buying something important such as a car or a house, the opinions of others matter. People look for help through different reference groups. Reference group is a group in society that influences an individual's purchasing behavior. The primary membership group is usually the group of people where the opinions will matter while purchasing a house or selecting insurance for your car. This group consists of people who interact regularly in an informal, face-to-face manner, such as family, friends, and co-workers.

Do you think reference groups reduce the search and evaluation of decisions?