Fashion Merchandising Promotion PlanCarmel DECA Chapter

Carmel High School520 E. Main StreetCarmel, IN 46032

Sally Pearson, Rhea Gajaria, and Manali PatelJanuary 10, 2015

Table of Contents

I. EXECUTIVE SUMMARY.......................................................................................................................................1

ll. DESCRIPTION OF THE STORE.............................................................................................................................2

lll. OBJECTIVES.......................................................................................................................................................2

IV. SCHEDULE OF EVENTS......................................................................................................................................3

A. SPECIAL EVENTS.........................................................................................................................................3

B. ADVERTISING.............................................................................................................................................5

C. DISPLAY......................................................................................................................................................7

D. PUBLICITY...................................................................................................................................................7

E. OTHER IN-STORE ACTIVITIES......................................................................................................................8

V. RESPONSIBILITY SHEET.....................................................................................................................................8

VI. BUDGET..........................................................................................................................................................10

VII. STATEMENT OF BENEFITS TO THE RETAIL ESTABLISHMENT..........................................................................11

VII. BIBLIOGRAPHY…………………………………………………………………………………………………………………………………………..11

I. EXECUTIVE SUMMARY

Plan Description: “The ON Spooky Extravaganza” aims to increase the profit of the Carmel Old Navy store by using product penetration to introduce a brand new costume line, “Little Pumpkins”, available in stores for the upcoming Halloween holiday. In addition, the Old Navy Carmel store’s partnership with the Carmel Education Foundation will build positive brand image and gain support from local customers as the community consists of higher income individuals who value exceptional educational programs. Special events, such as an exclusive in-store fashion show and Carmel’s annual Ghosts and Goblins 5k Run, will be instrumental in promoting the brand new costume line to the parental demographic and getting foot traffic in the store to purchase the current fall fashion.

Target Market: Old Navy Carmel is centered in a pristine outdoor fashion mall in one of the wealthiest and most educated communities. Carmel was rated third in Money Magazine’s 2012 “Best Places to Live.” The “ON Spooky Extravaganza’s” main target demographic is parents with children ages 0 to 9 years, which are the sizes for the “Little Pumpkins” costume line. The following Carmel demographics provide rationale as to why this plan will increase profit for the store:

16.5% of residents are children 1 to 9 years of age 47.7% of residents are married with children67.6% of adults have at least a four year college education

Promotional Methods: The “ON Spooky Extravaganza” will run from September 19, 2015, through October 31, 2015. A budget of $16,582 will support specific style events and promotion plans for the brand new costume line called “Little Pumpkins” for the upcoming Halloween holiday. Promotion of this line will begin September 19th with the release date of the costume collection where the store will be decorated in a Halloween theme and in store promotions will be available. Throughout the months of September and October, in store advertising will include heavy marketing at the cashier with bag stuffers, a plastic pumpkin giveaway to select customers, and the pitching of a brand new loyalty card. Increasing the brand image and broadening the customer base will occur in out-of-store activities including direct mailing cards, sales associate’s involvement in promoting our partnership with the Carmel Education Foundation, and staffing of a booth at Carmel’s annual Ghosts and Goblins Run.

Schedule of Events:

Statement of Benefits: The “Little Pumpkins” costume line will boost quarter 4 sales by 5% with its affordable appeal for the short Halloween season. The costume line will attract families into the store, where they will be tempted to purchase current fall fashion lines in addition to their costume, heavily increasing foot traffic into the store. The “Spooktacular Fashion Show” in addition to the Ghost and Goblins Run will increase the community’s

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Objectives of the “ON Spooky Extravaganza”- Increase profits for October by 5% through the introduction of the “Little Pumpkins” Halloween costume line- Gain a more positive brand image in order to encourage repeat customers by creating a closer relationship with the Carmel community- Appeal to the family-oriented Carmel community by creating a working relationship with the Carmel Education Foundation

awareness of the relationship with the Carmel Education Foundation, portraying Old Navy’s brand positively as more than a retail store, but as an asset of the community.

ll. DESCRIPTION OF THE STORE

Being a part of one of the most

respected and well known multinational

companies, Gap Inc., Old Navy has used its

corporate status to brand itself as one of the

friendliest and most family-oriented retail stores.

While maintaining an all-American style, Old

Navy dominates the fashion industry by providing affordable clothing without sacrificing the quality of their

merchandise. Old Navy Carmel’s optimum location in Carmel’s pristine outdoor fashion mall, Clay Terrace, has put

them in the best position as one of the mall’s leading anchor stores with a strong customer base. Their existing

reputation as being an iconic branch of one of the most respected companies in the world, in addition to their

notable customer service as a local flagship store, has made Old Navy Carmel a popular destination for shoppers.

lll. OBJECTIVES

Increase profits during the month of October by 5%

o Through “The ON Spooky Extravaganza”, Old Navy Carmel increases revenue by expanding their

product line. This implementation will provide a greater number of reasons for customers to

purchase from Old Navy Carmel during the month of October due to the autumn season and

holiday of Halloween. Old Navy Carmel’s typical quarter 4 growth fluctuates anywhere from 1% to

6% depending on the situation, so 5% is a realistic goal.

Create a strong community-oriented brand image

o The favorable image we will create from our partnership with the Carmel Education Foundation in

addition to the interaction between sales associates and customers at the in store fashion show

and promotional Ghosts and Goblins Run will forge lasting relationships with our customers.

Instead of feeling treated like a source of profit, our customers will be impressed with the consistent

friendly ambiance amongst our associates and will want to come to Old Navy Carmel. They will feel

that their money isn’t just going towards fashion clothing, but a friendly and fun shopping

experience. In order to achieve this objective, we propose the following tactical objectives:

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Carmel at a Glance

Carmel United States

AverageMedianIncome

$101,494 $48,374

4 YearCollege

Grad

37.64% 17.88%

Married with Children

47.73% 32.53%

Income Group within Region

Have at least one sales associate on the sale floor at all times to aid customers and to

inform them of our brand new costume line.

Engage each customer, specifically when they are checking out, informing them of

upcoming special events regarding the “ON Spooky Extravaganza”.

Create a working relationship between Old Navy Carmel

and the Carmel Education Foundation

o By having a strong partnership with the Carmel

Education Foundation, Old Navy Carmel will be

able to create stronger ties with the Carmel

community and demonstrate their caring, all-

American image. Customers will be more inclined

to purchase clothing from the retail store, due to

family-friendly policies and practices.

IV. SCHEDULE OF EVENTS

A. SPECIAL EVENTS

Event Date Rationale

Little Pumpkins Costume Line Release

September 19, 2015

● Get customers excited about our future events for the costume line

● Inform community of upcoming seasonal promotions

Spooktacular Fashion Show October 3, 2015

● Provide exclusive event for members● Convince non-members to get a loyalty card● Promote the “Little Pumpkins” costume line● Portray Old Navy Carmel as a family store

Ghosts and Goblins Run Sponsorship

October 26, 2015

● Build more community-oriented brand image● Expand customer base through direct contact

with Old Navy employees

Little Pumpkins Costume Line Release: Old Navy Carmel will introduce the new

clothing line, “Little Pumpkins,” in early September 19, 2015, consisting of

Halloween costumes for boys and girls ages 0 months to 9 years of age. This

costume line is intended to get families and their children excited for Halloween and

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provide an introduction to aid our special events. If customers choose to purchase one of the costumes the day of

the release, they will receive 20% off their purchase and a plastic pumpkin displaying the “ON Spooky

Extravaganza” logo. The costumes will be displayed on children mannequin at the front entrance of the store and

black and orange balloons will be displayed around the store. Figure 1

provides an example of this fun costume line.

Spooktacular Fashion Show: Old Navy will hold its

very first Fashion Show on October 3, 2015,

specifically targeting mothers and their children as

they purchase costumes and fall clothing for the

upcoming Halloween and current Fall season. The

“Little Pumpkins” line will be promoted at this event.

The event will be held from 4:00 pm to 7:30 pm so

children will be home by their typical bedtime. The fashion show will be an exclusive event for customers with brand

loyalty cards or store credit cards. The exclusivity of the Fashion Show event will make customers eager to sign up

for one of the loyalty programs. Figure 2 is an approximate idea which shows the outside of the Old Navy Carmel

store. There will be an “Orange Carpet,” which includes a backdrop featuring the Carmel Education Foundation and

Old Navy logos. Mothers will be encouraged to pose with their children on the carpet for a free picture. The photo

will be given inside a photo sleeve with a classy Halloween themed border. Once inside, customers will be able to

participate in kid friendly events such as a supervised pumpkin carving station and a face painting station where a

professional will be providing free services. Refreshments such as bite-sized snacks with a Fall theme will be

served. Snacks include hot cocoa, apple cider, pumpkin chocolate chip cookies, and miniature apple pies. This

provision of delicious treats and beverages will increase sales because customers are in a positive mood.

Managers and sales associates, along with their children, will walk down the runway set up in the middle of the

store. The adults will be wearing clothing from Old Navy’s Fall fashion line from the women’s department while the

children will be wearing costumes available for purchase in the store from Old Navy’s brand new children's line of

Halloween costumes. Customers will receive a brochure entailing every single item that will be presented on the

runway that night and will be able to mark those items for purchase that night in the store or can reserve the fashion

for purchase at a later date if stock runs out.

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Figure 2

Ghost and Goblins Run: Old Navy will sponsor the city of Carmel’s annual Ghosts and Goblins Run held on

October 26, 2015, where families are encouraged to dress up in creative Halloween costumes and participate in a

5k or 2k run. The Ghosts and Goblins Run donates all of its proceeds to the Carmel Education Foundation,

providing grants to teachers. The affiliation Old Navy will build with this Foundation that is supported by most of Old

Navy’s target market, parents, will encourage our customers to purchase from a store that is supporting the

community. Race t-shirts that runners can pre-purchase during the registration process will feature Old Navy’s logo.

Figure 3 provides a visual representation of the shirts that will be worn by runners; the front being Figure 3 with the

Ghost and Goblins Run logo and the back being Figure 4 listing the sponsors, the Carmel Education Foundation

and Old Navy. In addition, the banner at the end of the race will have Old Navy’s logo. Sales associates and the

store manager will have a booth set up after the race where people may accept a recyclable bag whose contents

will include a free water bottle to quench thirst in addition to a coupon for

five dollars off any purchase of at least thirty five dollars or above

redeemable towards their next visit to Old Navy Carmel. Employees

scheduled to work the booth will be required to wear Old Navy

merchandise. Managers working the booth will bring along their children

dressed in the “Little Pumpkins” costume line to provide a visual aid to

runners. The availability of friendly employees will build close relations and

encourage repeat customers to Old Navy Carmel. This partnership with the Carmel Education Foundation will

create a positive brand image in a city that values education and will encourage Carmel’s parental demographic to

purchase from Old Navy.

B. ADVERTISING

To create a successful campaign, Old Navy will use a variety of

advertising techniques to spread the word and attract customers to the “ON Spooky Extravaganza.” Sales

personnel will be trained to engage customers and get them excited about Old Navy’s upcoming events, which is

key to get a large customer base involved during the short duration of the “ON Spooky Extravaganza.”

Direct Mailing: The direct mail campaign will send information about the “ON Spooky Extravaganza” directly to

Carmel families. The flyer will have a Halloween theme to reinforce our seasonal costume line, will reveal the

opening date for the “Little Pumpkins” line, and will inform recipients of a 20% promotional discount off their entire

purchase in store with the purchase of a costume, as seen in Figure 4.

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Figure 3

SPONSORS

Figure 4

Brand Loyalty Card: Currently, Old Navy offers a store credit card to customers to encourage loyalty through

special promotions. However, the current incentives lack customer interest. In addition, a concern is that the

Carmel community’s general knowledge potential damage to their credit score through multiple credit lines makes

them hesitant to sign up for the program. During the months of September and October, incentives will be offered to

sign up for the new brand loyalty card system. Incentives include VIP invitations to style events, such as the

upcoming “Spooktacular Fashion Show,” 20% off purchases during the week of their birthday, and early access to

sale events such as Old Navy’s famous “One-Day-Wonders”. The “One-Day-Wonders” events offer a

specific piece of popular merchandise heavily discounted for a limited time to create urgency for customers to get to

an Old Navy before stock runs out. Figure 5 is a visual of our card. Once members of the card system, customers

who register for the Ghosts and Goblins Run can get 30% off the purchase of a “Little Pumpkins” costume with a

portion of the proceeds going to the Carmel Education Foundation. This offer not only promotes the run but also

creates loyal customers. These incentives would take into account the best

interest of the customers, company and the Carmel Education Foundation.

Promotional Bags: In order to bring awareness to shoppers of Old Navy

Carmel’s fun Halloween-themed promotion the store will distribute

promotional bags starting September 19th through the end of October. Bags

will display the Old Navy Carmel and the Carmel Education Foundation’s logo. The main avenue

of marketing will lie with the distribution of plastic shopping bags, or the bags that clothes are placed in every day.

These bags will display the new “ON Spooky Extravaganza” logo. This advertising will spark interest in the events

Old Navy Carmel is involved in during Halloween and increase foot traffic in the store.  Throughout October and

late September, these bags will be used, reminding customers of the new costume line and the “ON Spooky

Extravaganza”.

Instagram: The benefits of social media as a free medium with which to inform interested customers of events and

promotions at Old Navy Carmel for the first ever “ON Spooky Extravaganza” will be used through Instagram.

Customers in our specific target market, mothers, will be able to feel completely immersed in the Halloween

celebration at Old Navy Carmel. They will be able to see pictures of employees and customers interacting at

themed events such as the “Spooktacular Fashion Show” in addition to seeing daily photos of fun things going on at

Old Navy like decorating the store in Halloween décor and much more while following our account.

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Figure 4

September 19th

20% off*With purchase of a costume

deREWARDS BY YOU

Figure 5

C. DISPLAY

The “ON Spooky Extravaganza” will give Old Navy a new, exciting look that will attract customers immediately.

Festive window displays and decorations, such as pumpkins, fake spider webs, and broomsticks will be used to

give the store an immediate attractive aesthetic related to Halloween. Regarding the actual display and set up

inside of the store, the “Little Pumpkins” costume line, displayed on mannequins, will be placed near the front

entrance so customers are immediately hooked. The area of display is shown in the Figure 6. A Merchandising

Manager will be on board to figure out the exact specifics of item location and general store set-up.

D. PUBLICITY

Old Navy Carmel will host a contest open to any child or teenager from Carmel

Clay Schools, given parental consent. Students of Carmel with a strong passion for

fashion merchandising will have a rare opportunity to develop and design a

costume for Old Navy’s 2016 “Little Pumpkins” line. Old Navy managers will

choose a winner with the most creative and aesthetically pleasing costume. The

winner will receive a $1,000 scholarship towards their college tuition from the Carmel Education Foundation, will

have their costume included in the 2016 “Little Pumpkin” costume line, and will have a front cover spread in the

local newspaper, “Carmel Current.” This spread in Carmel Current will serve as positive publicity for Old Navy

Carmel. The spread will reach a broader demographic in Carmel, who will then be aware of Old Navy’s new

costume line, and be excited to see it next year. The publicity will give Old Navy Carmel a more positive brand

image since customers will see the competition as a creative and innovative way that Old Navy is fostering career

interests for young Carmel residents.

E. OTHER IN-STORE ACTIVITIES

Text Service: Signs will be displayed throughout the store

alerting customers that if they send the text message “No trick,

just treat” to 5442 (Old Navy Carmel’s store number), they will

be able to receive 10% off their purchase of a “Little Pumpkins”

Halloween costume. Along with receiving the coupon,

customers will then be sent messages on upcoming in-store

special events such as the “Spooktacular Fashion Show” and

basic sales events. Figure 7 provides a preview of the advertisement.

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Figure 6

Costume Line

Figure 7

“

Presentation of Carmel Education Foundation at Register: As one of Old Navy Carmel’s goals is to create a

relationship with the Carmel Education Foundation, customers will be presented with a brief explanation of the

Foundation and asked if they are interested in donating money to it at checkout. This tactic will spread awareness

about the Foundation and demonstrate that Old Navy Carmel is taking interest in the education of students in

Carmel. The approach is designed to attract more families with children and increase profits through a visible

partnership.

Old Navy Plastic Pumpkin Giveaway: On the “Little Pumpkins” release date customers will receive a free plastic

pumpkin with the Old Navy logo displayed on the back if they include a costume from the line in their purchase

during that in store style event. When young children go around trick or treating through their neighborhoods, they

will be proudly showing their Old Navy Carmel logos. This publicity will demonstrate Old Navy’s community

interaction with Carmel while providing a public relations promotion tool to enhance the Old Navy image.

V. RESPONSIBILITY SHEET

In order to efficiently promote our brand new product, the Old Navy Carmel store employees will need to

work in a hierarchical fashion to meet sales quotas and to get both current and new customers to sign up for our

brand loyalty program. The loyalty program will provide a medium for the store to keep customers informed of Old

Navy’s style events, the “Ghost and Goblins Run,” and the annual “Spooktacular Fashion Show.” For a maximized

profit, all positions play an imperative role. Below are listed the specific tasks assigned to the sales associates and

specialized managers to guarantee our success.

Sales Associates:

Promote brand loyalty card along with the accompanying features and special events that loyal customers

will be able to attend

Inform customers of sale events and upcoming promotions during checkout

Insert flyers containing information on the Ghosts and Goblins Run and “Spooktacular Fashion Show”

inside each bag during checkout

Ask customers during their checkout if they’d like to donate to the Carmel Education Foundation, the

incentive being a five off thirty five coupon for future use as a later date.

Be available at the booth at the Ghost and Goblin’s Run to build customer relations

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Walk the runway at the “Spooktacular Fashion Show” along with their kids, if applicable, who will model the costume line

Store Manager:

Schedule an in-store meeting on September 11th as well as a check-up meeting and team evaluation on

October 2nd to ensure employees are fulfilling their roles

Create the Old Navy Carmel Instagram, ensuring pictures of the “Little Pumpkins” costume line are being

posted in addition to pictures promoting our special events and additional creative visuals relating to the

“On Spooky Extravaganza”

Maintain a close relationship with the Carmel Education Foundation and address any of the Foundation’s

concerns

Reserve a booth at the Ghost and Goblins Run in the month of September in addition to supplying flyers

and candy to give to people to promote Old Navy Carmel’s “Little Pumpkins” costume line

Order sufficient amount of direct mailing packages, promotional shopping bags, and race t-shirts from

corporate

Advertise the first “ON Spooky Extravaganza” competition for children in the “Carmel Current” and at the

Carmel Clay Schools through the Carmel Education Foundation. Lead the process to select the event

winner

Merchandising Manager:

Style the sales associates using Old Navy Fall line merchandise for the fashion show as well as dressing

the kids of the employees in the “Little Pumpkins” costumes

Ensure merchandise is being properly displayed at point of purchases

Hang posters in the store windows promoting style events and the 5k run

Styling mannequins in the fall and costume line and ensure the appropriate amount of stock in store to

meet customer demand

Display “Trick or Treat” text service in store and other signage on days of promotion

Hiring Manager:

Ensure sales associates are following guidelines regarding promoting the “ON Spooky Extravaganza” on

the sale floor and especially at the cashier

Schedule a sufficient amount of people to work the fashion show, farmer’s market booth, and Ghost and

Goblins Run

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Train sales associates on how to promote the “ON Spooky Extravaganza.”

o Advise associates on how to build relationships with customers

o Show associates how the line must be represented and promoted

Consistently supervise sales floor along with the working associates

VI. BUDGET

Promotion DescriptionCost

*note that the cost includes all expenses for the specific event

Little Pumpkins Costume Line

Since Old Navy Carmel is in such a family oriented community, this event is going to offer Halloween costumes to children up to the age of 9 starting in September.

$5,210

Ghosts and Goblins Run

Old Navy Carmel is going to sponsor the run held on October 26, 2015, which is a 5k or 2k run where all proceeds go to the Carmel Education Foundation.

$3,887

Spooktacular Fashion Show

On October 3, 2015, Old Navy Carmel is going to have their first fashion show that will specifically target mothers and their children as they are purchasing their costumes and fall clothing.

$6,898

In store handouts Flyers will be given to the customers as they are checking out and they will have a $5 off any $35 or more spent in the store. Quantity - 6,000

$587

Total $16,582

The budget for the current campaign is going to be $16,582 and this is an appropriate amount reflecting the

store’s location and size. Since Old Navy is a large corporation, television advertising is not required. Since last

year, Old Navy has cut back on television advertisements because they believe it is very expensive and that many

customers already know of their brand.  For each event that Old Navy is sponsoring, the amount needed will go

directly to starting up the event. By using the money to start up these events, Old Navy’s return on investment is

going to be very high because the popularity of these events is so high. Many customers have mentioned the fact

that they wished Old Navy sold Halloween costumes, so once this is implemented, the sales are going to increase

in the months of September and October.

VII. STATEMENT OF BENEFITS TO THE RETAIL ESTABLISHMENT

Old Navy Carmel will put themselves on the map in the Carmel community as one of the most respected

retail stores. With their “ON Spooky Extravaganza” Old Navy Carmel will successfully increase their store profits

through the introduction of their brand new costume line “Little Pumpkins.” In addition, they will excite their current

customers and encourage new shoppers through their creative theme-based promotion and family fun in-store

activities.  As customers are intrigued by our new costume line, they will be drawn to our store where they will be

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introduced to our current fall merchandise. Gaining foot traffic will increase sales of all departments. Thus, our

customer base will be increased as well as our profit margins. Old Navy will be recognized by the Carmel

community as a family oriented one-stop-shop to purchase not only basic necessities, but affordable, trendy fashion

for all seasons and various events.

More importantly, Old Navy Carmel’s reputation will be boosted through our new relationship with the

community based organization, Carmel Education Foundation. Being associated with a foundation that provides

grants to teachers and scholarships for Carmel students, Old Navy Carmel will be seen as one of the leading retail

stores with Carmel’s best interests at heart. The in-store fashion show and direct relationship sales associates will

build with customers at the Ghost and Goblins Run booth will help the store be seen as an environment for families

to shop and enjoy each other’s company with happy and genuine sales associates. Old Navy Carmel will be the

first known retail store to partner with a not-for-profit organization to give Carmel’s younger generation an amazing

opportunity to design their own costume. This activity will show the surrounding community that Carmel promotes

educational development by giving children a competition to highlight their creative and innovative ideas.

VIII. BIBLIOGRAPHY

"Carmel Education Foundation." CEF. N.p., n.d. Web. 11 Nov. 2014.

"Economy in Carmel, Indiana." Economy in Carmel, Indiana. N.p., n.d. Web. 11 Nov. 2014.

"Oldnavy.com | Old Navy." Oldnavy.com | Old Navy. N.p., n.d. Web. 11 Nov. 2014.

"People in Carmel, Indiana." People in Carmel, Indiana. N.p., n.d. Web. 20 Nov. 2014.

"United States Census Bureau." Indiana QuickFacts from the US Census Bureau. N.p., n.d. Web. 11 Nov. 2014.

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