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Moriah Lutz-Tveite LXFM 730

March 7, 2012 Final Marketing Plan Paper

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Table of Contents

Executive Summary p. 3 Part 1 About Ralph Lauren p. 4 Company Introduction p. 4 Company History p. 4 Mission Statement p. 5 Company Information p. 6 Brand Introduction p. 8 Polo Ralph Lauren Description p. 8 Products Offered p. 8 Product Features and Benefits p. 9 Current Status of the Brand p. 9 Current Positioning in the Luxury Market p. 9 Current Target Market p. 9 Situational Analysis p. 10 Market Environment p. 10 Competitive Analysis p. 11 Consumer Analysis p. 13 Product Analysis p. 14 Part 2 The Importance of the Brand p. 15 Brand Values and Attributes p. 15 Qualifications as Luxury p. 15 Target Consumer Profile and Customer Attitudes p. 16 Current Marketing 4P Analysis p. 17 SWOT p. 19 Core Competencies and Competitive Advantages p. 20 Risk Factors vs. Success Factors p. 20 Proposal 1: Merchandise and Distribution Expansion Plan p. 21 Marketing Goals & Objectives p. 21 Target Market Profile p. 22 Competition p. 24 Market Trends & Dynamics p. 27 Marketing Strategy p. 28 General Description of the Strategy p. 28 Budget Allocation & ROI p. 28 Branding p. 28 Product p. 29 Pricing p. 29 Place p. 30 Promotion p. 32 Measurement & Evaluation p. 34 Risk Analysis & Assumption p. 34 Expected Outcomes and Long Term Goals p. 34 Citations p. 35

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Executive Summary Polo Ralph Lauren has been one of the most popular American brands over the past 40 years. As a lifestyle brand, the company caters to the customer’s desire for a traditional East Coast prep look. The Polo brand currently focuses on business casual wear; however, due to the economic recovery more and more men are looking to buy suits and other professional attire. Polo Ralph Lauren is well positioned to take advantage of this market potential. To do so, they must first develop an expanded line of suiting options for professionals of all ages. In order to create a personal connection between the customer and the brand during the suit purchase, Polo Ralph Lauren should create direct retail stores to specifically serve men interested in classic American style.

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About Ralph Lauren Brand Introduction Ralph Lauren is one of the most well-respected American brands currently on the market. It is well known for producing garments for the whole family ranging from casual to formal with accessories and everything else necessary to create a true lifestyle brand. The company is guided by its legendary namesake whom Harold Koda, the curator at the Costume Institute at the Met, has called, “Like a Henry James character, he is the last true idealist about America's imagination of itself. That makes him the greatest ambassador of American style” (NYMag.com/RalphLauren).

Brand History Ralph Lauren was founded in 1968 when Lauren began selling ties and menswear to Bloomingdales in New York. In 1971, Lauren added womenswear to his company. The following year, he introduced his signature polo shirt. In 1983, the brand added home furnishings with the first flagship store following three years later. In 1999, Lauren opened his first restaurant adjacent to the Chicago flagship store. The brand focused on expanding their luxury goods selection throughout the 2000s including adding the Black Label (NYMag.com/RalphLauren).

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Mission Statement Ralph Lauren has no explicit mission statement. However, the below message from Mr. Lauren speaks about create a lifestyle brand that transports the customer to their dream life (RalphLauren.com/About).

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Company Information Ralph Lauren is a publicly owned company traded under the name Polo Ralph Lauren Corporation (Ralph Lauren p. 1). In 2011, the company had $5.66 billion in net revenues with about half coming from wholesale and retail business each and a small portion from licensing activities (Ralph Lauren p. 2). The net income for 2011 totaled $568 million (Ralph Lauren p. 41). The below figure from the 2011 annual report shows financials for the past two years.

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Polo Ralph Lauren Corporation has numerous brands within the company. They are organized as detailed by the annual report below (Ralph Lauren p. 6-10):

• Apparel o Menswear

! Ralph Lauren Purple Label (retail and wholesale) ! Ralph Lauren Black Label (retail and wholesale) ! Polo Ralph Lauren (retail and wholesale) ! Lauren for Men (wholesale to department stores) ! Ralph by Ralph Lauren (wholesale exclusive to Dillard’s)

o Womenswear ! Ralph Lauren Women’s Collection (retail and wholesale) ! Ralph Lauren Women’s Black Label (retail and wholesale) ! Ralph Lauren Blue Label (retail and wholesale) ! Lauren by Ralph Lauren (retail through website and wholesale) ! Pink Pony (retail as special collection)

o Men’s & Women’s Joint Brands ! RRL- (retail only) ! RLX- (retail and wholesale) ! Ralph Lauren Denim & Supply (wholesale only to department stores) ! Polo Jeans Co. (retail and wholesale in Asia and Europe) ! Golf (retail and wholesale) ! Rugby (retail only)

o Ralph Lauren Childrenswear (retail and wholesale) • Accessories

o Footwear (retail and wholesale) o Bags (retail and wholesale) o Watches (retail and wholesale) o Fine Jewelry (retail only)

• Fragrances (retail and wholesale) • Home Goods

o Ralph Lauren Home (retail and wholesale) o Lauren Home (retail and wholesale) o Ralph Lauren Paint (wholesale only)

• Club Monaco (retail only) • American Living (retail exclusively at JCPenney) • Chaps (retail exclusively at Kohl’s) The following products are handled by Ralph Lauren’s licensing partners: Polo Ralph Lauren underwear and sleepwear, fragrances, eyewear, Chaps, American Living, and Ralph Lauren Home (Ralph Lauren p. 15).

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Brand Introduction Brand Description The annual report describes Polo Ralph Lauren as the following: “Authentic and iconic, Polo is the original symbol of the modern preppy lifestyle” (Ralph Lauren p. 6). The brand currently focuses on business casual attire for the modern American man.

Products Offered Polo Ralph Lauren offers a full range of business casual wear for men. This includes polos, khakis, shorts, and sweaters. Additionally, Polo offers a selection of sports coats, dress shirts, and ties. The brand also offers a very limited selection of suits. A full range of shoes and accessories is also available from Polo.

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Product Features and Benefits The main benefit of Polo Ralph Lauren products is that the customer can rely on the brand year in and year out to create the type of comfortable, preppy, and traditional clothing they enjoy wearing. The brand features a classic style that does not drastically change style year to year. Current Status of the Brand Polo Ralph Lauren is viewed as the iconic brand from Ralph Lauren that is accessible and serves as an entry point for most male consumers into the Ralph Lauren empire. Current Positioning in the Luxury Market Polo Ralph Lauren itself does not really have a place within the luxury market. It tends to be associated with other brands sold in mainstream department stores. However, Polo positions itself slightly above most of those other brands through its quality product and respected heritage. It also positions itself as the perfect brand for the male aspirational consumer. Current Target Market The current Polo Ralph Lauren Target market is very broad which reflects the wide range of stores the brand can be purchased from. The target customer can range from the aspirational customer buying a polo at his local Macy’s to a member of a beyond money household purchasing a pair of Nantucket Red shorts at Saks Fifth Avenue. Similarly, the target market consists of males from high school age as well as their father, grandfather, and every male relative in between.

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Situational Analysis Market Environment

Current Business Trends

As the American economy begins its recovery and employment rates increase, the menswear market is predicted to markedly improve with it. According to IBM’s Retail Analytics division, menswear sales are expected to grow by 8.3% in the first quarter compared to 2.4% for women’s apparel (Berk). Jill Puleri who works as a global retail leader at IBM also strongly believes that men are seeking a “more polished look” in favor of the business casual look that has been popular in offices over the past decade (Berk).

Market Potential

The above research clearly points to a focus on menswear being good for business, so Ralph Lauren should find a way to capitalize on this trend. The more expensive Ralph Lauren brands already carry professional wear, so Polo is the best brand to add merchandise. There is a great deal of market potential for a brand that could provide businesswear attainable for and attractive to the average American professional.

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Competitor Analysis Current Competitors Nautica

Nautica was founded in 1983. The brand features apparel for men, women, and children. The menswear collection includes sportswear and business casual items. The brand operates 170 stores and is also distributed in many of the same large-scale department stores like Macys and Dillards as Polo Ralph Lauren (Natuica.com/About).

Tommy Hilfiger

Like Ralph Lauren, Tommy Hilfiger offers preppy apparel and accessories for the whole family. The brand was founded in 1985 and has current annual sales of $4.6 billion. Tommy Hilfiger is sold in many of the same department stores as Polo Ralph Lauren. Since these brands are sold in the same location, there can easily be a great deal of customer overlap.

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Strengths and Weaknesses

One strength of both Nautica and Tommy Hilfiger is that both brands offer similar products as Polo Ralph Lauren for lower prices. A Nautica or Tommy Hilfiger polo cost around $50 while a Polo Ralph Lauren polo costs about $85. Both competitors have strengths in producing quality products as part of a lifestyle brand; however, the price differential is the major strength the two brands have over Polo Ralph Lauren.

The brand image of both Nautica and Tommy Hilfiger can be seen as a weakness. In particular, Tommy Hilfiger was overexposed a brand during the 1990s when it became wildly popular with celebrities (White). A tie to brand fan Snoop Dogg and other rappers who don’t portray the traditional prep lifestyle seems to have damaged Tommy Hilfiger with its target market.

Additionally, the flip side of Tommy Hilfiger and Nautica having lower prices is that there is little to separate them in pricing strategy or brand image from teen oriented mall brands like American Eagle.

Potential Future Competitors

If Polo Ralph Lauren chooses to add professional business options, they will place themselves in direct competition with Brooks Brothers. This competitor is discussed in greater detail in the Proposal section of this paper; however, Brooks Brothers merchandise and direct retail business model may help inspire Polo Ralph Lauren with a means to take advantage of the growing menswear market.

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Consumer Analysis Consumer Characteristics

As previously discussed, the Polo Ralph Lauren consumer cannot be easily described based solely on demographic characteristics like income or age. However, as a lifestyle brand the most important characteristics of the customer are what they desire to get from their clothing company. Polo Ralph Lauren customers want traditional and quality clothes. They do not seek fashion forward items inspired by Euopean trends. Instead, they prefer the classic American preppy look.

Potential Target Customers

The potential target customer is only a slight twist on their current Polo consumer. The company should seek to target their “core” consumer. The core consumer is an individual who purchases Polo products regardless if they are on sale. They choose to buy Polo Ralph Lauren shirts over similar products from brands like Tommy Hilfiger and Nautica despite the price difference. These customers have either worn Ralph Lauren products their whole life beginning in childhood or they desire to associate themselves with the Ralph Lauren heritage and image.

Consumer Segmentation The target market can be divided into two major groups of young, unmarried customers and family men with established careers. The Young Guns

• College students and young professionals who like to dress preppy. • Grew up wearing Ralph Lauren and starting to make their own shopping decisions. • Offer a more affordable selection to bait them now as a lifelong customer.

The Family Man

• Married with kids and a job in the corporate world. • Trusts Ralph Lauren as a great brand already and wants reliable fashion. • Expand current Polo suiting options to create new interest in the brand for established

professionals.

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Product Analysis Current Merchandising Strategy The current Polo Ralph Lauren merchandising strategy focuses on business casual staples. These products are offered in department stores ranging from Macy’s to Neiman Marcus. Additionally, Ralph Lauren offers Polo products through their website, flagship stores, and in small quantities in Ralph Lauren retail stores. Opportunities and Weaknesses Opportunities

• Expand suit selection to take advantage of expanding menswear market. • Reset pricing strategy to be more competitive. • Open specific Polo Ralph Lauren stores. • Create new products that appeal to a younger generation.

Weaknesses

• No strongly defined target market. • No signature place to shop for Polo Ralph Lauren. • Limited suit selection. • Priced higher than both current and potential competitors.

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The Importance of the Brand Polo Ralph Lauren is an essential part of the Ralph Lauren legacy. It is the brand that Lauren started his business under in 1968 that led him to sell ties and menswear to Bloomingdales. It is also the brand that launched the iconic polo shirt in 1972 (NYMag.com/RalphLauren). As Lauren has expanded his business to include higher priced lines, Polo Ralph Lauren has remained the brand that inspires images of the East Coast Prep lifestyle and has served as the inspiration for Lauren Ralph Lauren for women and the wildly popular Ralph Lauren Kids Collection. Brand Values and Attributes Above all, Polo Ralph Lauren values a lifestyle. Whether a customer truly lives the East Coast prep lifestyle or just aspires to, the brand provides them with the clothes to do so in. Polo values stylish clothing that places traditionalism over trends. Quality construction and design is an essential attribute of the brand. Although the pony logo of Polo Ralph Lauren is an essential part of the polo shirt design, the brand overall favors a quieter approach to announcing its presence. Refinement and taste are important components of the Polo Ralph Lauren lifestyle. Qualification as Luxury While other Ralph Lauren brands like the Purple and Black Label can easily be viewed as luxury, Polo Ralph Lauren might be seen as a brand for the aspirational consumer based on its pricing. However, the lifestyle and images of leisure that the brand promotes are certainly in line with a luxury company. Therefore, the product may not qualify as a luxury but the brand promotes an image of privilege and status. Additionally, Polo Ralph Lauren serves an important purpose to build brand loyalty among customers who can currently or will in the future be able to purchase items for the Purple or Black Label.

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Target Consumer Profile and Attitude towards Brand As an affordable lifestyle brand, demographics are not particularly helpful in determining the Polo Ralph Lauren target consumer profile. Since it is attainable for anyone from the middle class and up and desirable for even members of beyond-money households, Polo Ralph Lauren’s target consumer can be any male from an American white-collar family. The age of the target can also range from a high school student to a retiree. While Polo Ralph Lauren certainly espouses an East Coast Prep lifestyle it is far from necessary to reside on the East Coast to be a target consumer for the brand. What matters most in developing a target consumer profile is looking at their psychographics and the social behavior. Anyone who shares the same values of traditionalism and style as Polo Ralph Lauren can be considered a target consumer. (Please refer to the Target Market Profile section within the Proposal section of this paper for more detailed information on this). In order to assess customer attitude towards Polo Ralph Lauren, I conducted a survey of 30 male acquaintances in their early to mid-20s who would make great lifelong Polo customers to find out what they think about Ralph Lauren particularly in regards to suiting. The responses are as follows:

• 63% wore Ralph Lauren as a child or teenager. • 77% currently own a Ralph Lauren polo, khakis, or other business casual attire. • Only 20% own a Ralph Lauren suit of any kind. • Most plan to spend between $700-$1200 on their next suit purchase • Respondents were split when asked if they would consider purchasing a Ralph Lauren

suit. • Those who said yes, did so because they respect the brand and its quality. • Those who said no, expressed concern that Ralph Lauren doesn’t offer a good, affordable

suiting option. While my study is by no means representative of all Polo Ralph Lauren customers, it gives a glimpse at a handful of the target market.

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Current Marketing 4 P’s Product The current Polo Ralph Lauren products include the following categories:

• Polos • Sport Shirts • Dress Shirts • Sweaters • Jackets & Outerwear • Sweatshirts & T-shirts • Rugbys • Pants • Chinos • Jeans • Shorts • Swim • Sport Coats • Suits • Shoes • Ties • Belts • Bag & Leather Goods • Hats, Gloves, & Scarves • Sunglasses • Sleepwear and Robes • Underwear and Socks • Fragrance

Clearly, the variety of Polo Ralph Lauren products is extensive; however, the products are currently concentrated around business casual attire. The suiting selection is currently limited to two types of suits and a tuxedo. Price Polo Ralph Lauren is priced as an affordable brand for the majority of American professionals. Most items including polos, chinos, button downs, and shorts are priced between $75-$150. Items like cashmere sweater and sports coats can cost between $200 and $500. The current suiting options offered are priced between $1400 and $1500. (ralphlauren.com/polo)

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Place Polo Ralph Lauren is currently available through RalphLauren.com and Polo Ralph Lauren Factory Outlet Stores. It is also available at Ralph Lauren Flagship stores and in limited quantity and variety at Ralph Lauren stores. Polo Ralph Lauren is also distributed through a wide range of department stores including Belk, Macy’s, Dillard’s, Nordstrom, and Sak’s Fifth Avenue. Promotion Polo relies on print and online ads to promote its brand. These ads reflect the lifestyle promoted by the brand as seen below.

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SWOT Strengths:

• Brand name recognition and heritage. • A wide range of quality business casual items. • A reliable and quality brand. • Wide distribution and availability.

Weaknesses:

• No set target market. • No signature place to shop for Polo Ralph Lauren. • Limited suit selection. • Priced higher than their competition.

Opportunities:

• Expand suit selection to take advantage of growing menswear market. • Reset pricing strategy to be more competitive. • Open specific Polo Ralph Lauren stores. • Create products that appeal to a younger generation.

Threats:

• A sudden downturn in the menswear market if the economy worsens again. • Increase in production costs. • Competitors increase their market share.

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Core Competencies and Competitive Advantages Polo Ralph Lauren’s core competencies all revolve around their aptitude at creating a lifestyle brand that fulfills their customer’s desires for apparel that is both traditional and stylish. Their competitive advantages are their customer’s brand loyalty and their place amongst a vertically integrated American fashion empire. Because of this Polo Ralph Lauren has the financial means to invest in large-scale projects and market its brand on a global scale. Risk Factors vs. Success Factors The risk factors for Polo Ralph Lauren include making a poor investment in the brand that could have a negative effect on the rest of the company and introducing a product that does not entice the current target market. Another risk factor is that strengthening Polo Ralph Lauren and adding additional merchandise to its line may harm the Ralph Lauren Purple and Black Label. However, I believe the Polo products will have enough differentiation as far as price and target market that the labels will not work against eachother. The success factors are the company already has a strong following and has a consistent track record of producing great clothing for that following.

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Proposal 1: Merchandise and Distribution Expansion Plan Goals & Objectives The main goal of this plan is to capitalize on the growing menswear market. The plan will specifically focus on men’s renewed interest in purchasing suits. As a major corporation, Ralph Lauren is extremely well positioned to take advantage of this expanding market. The company already offers professional wear for their higher priced men’s lines. By expanding the suit selection of Polo Ralph Lauren and opening direct retail stores, the brand will be able to successfully target professional American men of all ages who value the classic aesthetic of Ralph Lauren. The specific goals of this plan are as follows:

• 10 direct retail stores opened in the initial year. • 25 direct retail stores open by the third year. • 80 retail stores open by the tenth year. • $10 million in additional Polo Ralph Lauren sales in the initial year. • $50 million in additional Polo Ralph Lauren sales in the third year. • $240 million in additional Polo Ralph Lauren sales in the tenth year.

(Note: I state the financial goals as “additional Polo Ralph Lauren sales” because there is no financial information on how much Polo Ralph Lauren currently sells. These sales goals are based on what the added merchandise and retail stores will be able to add to current Polo Ralph Lauren sales.)

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Target Market Profile The target market will be the current Polo Ralph Lauren “core” customer. By this I mean, the type of customer who currently purchases Polo products because they value their quality construction and classic look not because the item happens to be on sale at their local department store. This customer either directly relates to or aspires to be a part of the East Coast preppy lifestyle Polo Ralph Lauren represents. There is no age restriction on the target market. A 16 year old high school student and his 80 year old grandfather may very well purchase the same suit from Polo Ralph Lauren. Similarly, any of the “Five Species of Luxury Consumer” named by Boston Consulting Group from “The Aspirationals” to “Beyond Money Households” could be a part of this target market (Frank). For the aspirational consumer, defined by the study as making over $85,000, purchasing a Polo Ralph Lauren suit would be viewed as an exciting way to be part of the Ralph Lauren brand. For a man from a beyond money household, buying such a suit may merely be a simple purchase of quality apparel that espouses the classic American aesthetics he holds dear. So perhaps the best way to profile the target market for Polo Ralph Lauren is to refer to a study conducted at the University of Southern California’s Marshall School of Business. The study, published in the American Marketing Association’s journal, divides consumers into four categories based on their wealth and their need for status (Han, et al. p. 17). The figure on the following page illustrates the relationship between the four groups.

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While some Polo Ralph Lauren customers might be viewed as Parvenu or Poseur since they think the brand will gain them recognition and status, the true target customer is a Patrician. While all Polo Ralph Lauren customers may not have the financial means as a Ralph Lauren Purple or Black Label customer, they share the same innate sensibilities. This core customer does not desire recognition for wearing flashy or logo heavy clothing. Instead, they prefer to wear what the study would define as “quiet” clothing that signals to others taste and refinement.

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Competition Brooks Brothers The primary competition for this new plan is Brooks Brothers. The company was founded in 1818 in New York City as the first American ready-to-wear clothing store (brooksbrothers.com/aboutus). In 1845, Brooks Brothers began offering the first ready-to-wear suits in the country and since then have experienced great success dressing American men including Abraham Lincoln (brooksbrothers.com/ourheritage). Today the brand operates 180 stores within the United States as well as stores in 15 other countries with annual sales of $221 million (LexisNexis). Brooks Brothers specializes in men’s suits and professional wear in addition to a selection of more casual and business casual items. The brand also offers women’s and children’s clothing

The main line of Brooks Brothers suits is called the 1818 collection. They offer four basic cuts in a wide variety of colors and fabrics. They also offer all suits to be made to measure for no additional cost.

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In 2007, Brooks Brothers introduced the Black Fleece Collection designed by Thom Browne (brooksbrothers.com/ourheritage). This line is competitive both in price and design aesthetic with Ralph Lauren Black Label.

In the fall of 2011, Brooks Brothers introduced their Collegiate Collection with sweaters, dress shirts, and polos emblazoned with logos from 15 universities (Eppich).

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While Polo Ralph Lauren certainly does not want to completely copy how Brooks Brothers operates, there are a few things they can learn from the competition. First, Brooks Brothers provides a fantastic selection of suits for right around $1000. This places the product at an affordable level for most professionals. Secondly, Brooks Brothers bases their business around a direct retail model. This allows them to remain in complete control of their brand image and the relationship consumers have with their brand. This model allows the male customer who may not be too keen on the shopping experience to quickly enter a store, consult a knowledgeable salesperson, and make a speedy purchase, which can be an excellent means to build brand loyalty. Both companies understand what it means to build a lifestyle brand. Ralph Lauren has clearly expanded more to include home and other products to support the ideal of an East Coast preppy lifestyle. However, Brooks Brothers has also been successful in developing an image for their customer as the “Brooks Brothers Gentleman” with even a line of books teaching the customer how to become this ideal.

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Market trends and dynamics According to IBM’s Retail Analytics division, menswear sales are expected to grow by 8.3% in the first quarter compared to 2.4% for women’s apparel (Berk). Jill Puleri who works as a global retail leader at IBM also strongly believes that men are seeking a “more polished look” in favor of the business casual look that has been popular in offices over the past decade (Berk). As the economy turns around, more and more men will be looking into purchasing a new suit as they go on interviews and start new positions. Eric Jennings, men’s fashion director at Saks Fifth Avenue states, “If they (men) learned one thing from the recession, it’s that looking schlumpy is not going to help you keep your job, get promoted, or get a new job. I think they’re taking their appearance more seriously” (Clifford). Additionally, popular shows like Mad Men and Boardwalk Empire are credited for a renewed interest in suits among American men (Clifford). According to their 2011 annual report, expanding direct to consumer business is Ralph Lauren’s primary long-term strategic goal (Ralph Lauren p. 12). My plan to provide new suiting options for Polo Ralph Lauren while opening direct retail stores clearly helps fulfill this goal set by the company while taking advantage of the current market trends.

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Marketing Strategy General Description of the Strategy The strategy to capitalize on the growing menswear market is twofold. First, the company will greatly expand the suit selection currently offered by Polo Ralph Lauren. This merchandise will be described in detail in the Product section of this paper. Secondly, the company will open direct retail stores solely to sell Polo Ralph Lauren merchandise. The stores will focus on the new suits as well as business shirts and ties; however, the store will also offer a selection of traditional Polo Ralph Lauren merchandise such as polos and khakis. More information about these stores is provided in the Place section of this paper. Budget Allocation & ROI Ralph Lauren should plan on budgeting $2 million dollars for the design and installation of each store. Additionally, they should budget about $8 million dollars for a 10-year lease and operating expenses on each space. This places the initial investment for opening ten stores at $100 million, or a $10 million dollars for each store. Over a ten-year period, each of the original ten stores should produce about $23 million in revenues each based off of the previously stated financial goals. Therefore, the ROI over a ten-year period for the initial investment will be 1.3 (($230 million-$100 million)/$100 million). Branding This plan does not require Polo Ralph Lauren to rebrand itself. As part of Ralph Lauren, it is already respected as a great brand. Adding suits as new merchandise will only expand the idea of Polo Ralph Lauren as a lifestyle brand. The man who has for so long golfed, socialized, and relaxed in Polo apparel can now purchase Polo to wear to work. The addition of direct retail stores will strengthen the current brand by allowing the customer to have an in person experience with the company’s store and employees.

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Product The product is one of the key factors in this plan. Polo Ralph Lauren will of course continue to carry all of the great casual and business casual pieces they are known for. However, they will now add a wide selection of suits. The suit collection will feature the four following cuts:

• The Ralph- Basic American cut inspired by the current Polo Ralph Lauren suit. • The Hunter- Cut for the athletic frame wider in the chest and slimmer in the waist. • The Preston-A slimmer cut suit perfect for the fit professional. • The Blaine-European inspired slimmest cut suit.

These suits will be offered in a wide range of colors, fabrics and prints including black, navy, charcoal, tan, stripes, herringbone, and plaid. In the summer, linen and seersucker suits in all four cuts will be available. All suits will be available to be made to measure if the customer requests for no additional charge. Additionally, Polo Ralph Lauren will continue to offer their signature tuxedo. One additional suit called The Chase will be cut like The Preston; however, The Chase will be made out of stain resistant fabric making it the perfect suit for college students and young professionals to wear while socializing. Nanotex has developed such a fabric that repels liquid while retain fabric’s softness (nanotex.com). Pricing In order to compete with Brooks Brothers, Polo Ralph Lauren needs to lower their prices slightly. Brooks Brothers suits currently are priced at $1000 for basic colors and fabrics and $1100 for special prints or fabrics. I suggest Polo Ralph Lauren should lower their suit prices from $1400-$1500 to $1100-$1200 for suits in The Ralph, The Preston, The Hunter, and The Blaine cuts. This will allow them to compete directly with Brooks Brothers while still offering an opportunity to prove why the Polo product is superior. The Polo Ralph Lauren tuxedo should remain priced at $1500 as it is a specialty item. The Chase suit should be priced at $700. The stain resistant fabric will not be as fine of quality as other fabrics used in Polo Ralph Lauren suits. This will be the expectation of the customer as they are purchasing for the sole purpose of using it in instances where spills are likely.

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Place In order to maintain a close connection with the customers who purchase Polo Ralph Lauren suits, I believe the distribution of these new products should be limited to direct retail. This means the full collection of suits will be available on RalphLauren.com as well as within the Ralph Lauren flagship stores in Chicago, Greenwich, Moscow, London, Tokyo, Milan, Paris, New York, and Los Angeles. The brand should also work to include a selection of the new products within its 60 US Ralph Lauren stores (Ralph Lauren p. 12). However, many of these 60 stores focus their merchandising on the higher priced Ralph Lauren lines and have limited retail space. Therefore, Polo should open its own direct retail stores designed specifically to appeal to male customers. The brand should initially start with the ten following locations:

• Atlanta, GA- Phipps Plaza. Located in the heart of Atlanta’s prosperous Buckhead community, Phipps Plaza is an upscale shopping center featuring Nordstrom, United Colors of Benetton, and Armani. Atlanta is also home to the large undergraduate, graduate, medical, and law student populations of Emory, Georgia State, and Georgia Tech. (http://www.simon.com/mall/?id=210)

• Nashville, TN-The Mall at Green Hills. This mall located in Nashville’s Green Hills area is host to a wide range of stores including Burberry, Lacoste, The Gap, and Louis Vuitton. As the premier shopping destination for Nashville, it is the perfect location for a Polo Ralph Lauren store particularly as the mall is easily accessible for Vanderbilt, Belmont, and Lipscomb students and faculty. (http://www.themallatgreenhills.com/)

• New Orleans, LA- Shops at Canal Place. As a home to traditional Southern manners and preppy style grown out of the city’s historic mansions, New Orleans seems a natural location for a Polo Ralph Lauren store. The city is home to Tulane, the University of New Orleans, and LSU’s School of Medicine. The Shops at Canal Place is a shopping center near the French Quarter that boasts a Saks Fifth Avenue and a Michael Kors. (http://www.theshopsatcanalplace.com/)

• Evanston, IL- Downtown Area. Although Chicago is home to a Ralph Lauren flagship store, this North Shore suburb is a great locale for a Polo Ralph Lauren store as it is home to Northwestern University as well as an affluent local population. The downtown area of Evanston is home to outdoor shopping with preppy favorites like Northface. (http://www.downtownevanston.org/)

• Cambridge, MA- Harvard Square. As the home to America’s most prestigious university, Cambridge would be a great location for a Polo Ralph Lauren store. Boston has a massive student population including MIT, Boston University, and Boston College. The Polo Ralph Lauren aesthetic is also the perfect match for Boston locals who live and breathe East Coast prep. Harvard Square is home to great outdoor shopping with a mix of corporate stores like The Gap and Urban Outfitters and local boutiques and bookstores. (http://www.harvardsquare.com/)

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• Washington D.C. – The Shops at Georgetown Park. This shopping center features local boutiques as well as J. Crew, Intermix, and H&M. Located in the heart of the Georgetown, this shop would no doubt be popular not only with Georgetown students but with the thousands of D.C. professionals working in politics who strive to present themselves in a conservative but fashionable manner. (http://www.shopsatgeorgetownpark.com/index.aspx)

• Charleston, SC- King St. As a major tourist destination and home of Southern culture and traditional preppy style, Charleston is a great location for a Polo Ralph Lauren store. The King St. area is the city’s largest outdoor shopping district with everything from local antique stores and boutiques to Banana Republic and Lacoste. (http://www.charlestonsfinest.com/lists/Kmen.htm)

• Kansas City, MO- Country Club Plaza. On the border of Kansas and Missouri, Kansas City is easily accessible from a number of Midwestern locales making it a tourist destination. The Plaza is a massive outdoor shopping area featuring Michael Kors, Kate Spade (a Kansas City native), J. Crew, and The North Face. (http://www.countryclubplaza.com/Index.htm)

• St. Louis, MO- Plaza Frontenac. On the opposite side of the state, St. Louis sits on the border between Missouri and Illinois. The Plaza hosts Neiman Marcus, lulemon, Talbots, and Lucky Brand. St. Louis is also home to the college populations of Washington University and St. Louis University. (http://www.plazafrontenac.com/directory/womens-apparel)

• Plano-TX- The Shops at Willow Bend. As a northern suburb of Dallas, Plano is a great location for a brand that is about the All-American look. The Shops at Willow Bend is home to preppy favorites including J. Crew, Lacoste, and Vineyard Vines. Polo Ralph Lauren will be an excellent addition to that mix. (http://www.shopwillowbend.com/shopping/womens_fashions)

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Promotion Polo Ralph Lauren and other Ralph Lauren brands currently rely on print and online ads. This new plan will not require any real shift in these current promotion tactics. The new Polo Ralph Lauren ads will mimic the design aesthetic created by the below already existing Polo Ralph Lauren ad.

The new ads will merely replace the model with another wearing a Polo suit in addition to adding small text at the bottom informing the customer where they can find the new merchandise as seen on the next page.

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In addition to full page print ads like this one, Polo should also use online banner ads that allow the consumer to click through to the Polo Ralph Lauren website where they could view the full collection of suits and find information about the new stores. Ralph Lauren no doubt has a large e-mail database which they can easily use to send promotional e-mails about the new suit collection and store openings. Finally, Polo should consider holding special in store shopping events at the new stores when they open. Events can be specifically tailored to college students from a local university or to local professionals. Perhaps, Polo could target a large law or consulting firm to invite to an in store event featuring discounts on products and one on one consultations with sales staff.

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Measurement and Evaluation The primary means of measurement and evaluation will be to monitor sales of the new suits both in store and online as well as the overall sales for the Polo Ralph Lauren stores. While it may take a few years for the concept of the stores and the suits to catch on with consumers, the uptake rate should be considerably quicker than with some other expansions since the Ralph Lauren name is respected and Polo Ralph Lauren already has a large customer base. Risk Analysis and Assumption The major risk from this plan is causing long-term financial harm to the Ralph Lauren Corporation. The company will have to invest considerable funds into this plan particularly to open so many new stores over a ten-year period. However, I believe there is a strong place in the market for Polo Ralph Lauren suits and direct retail stores. Additionally, as stated in the Goals & Objectives section of this plan, Ralph Lauren has made it their primary goal to increase direct to consumer business. This plan is merely just another way to do that. Expected Outcomes and Long Term Goals I expect the American male consumer will be excited to have a new option for professional wear that is competitive with Brooks Brothers. Polo Ralph Lauren is already a popular brand with American professionals for their time away from work, so there is no reason to expect they would not embrace this new line when it is offered to them in an affordable and accessible way through direct retail. Long term, Ralph Lauren may want to consider allowing Polo Ralph Lauren suits to be sold in upscale department stores. However, it is essential for this line to not be confused with other wholesale products Ralph Lauren creates, so this should only be considered once Polo Ralph Lauren establishes itself as a well-known source for quality suiting.

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Citations Ralph Lauren Annual Report. 2011 Ralph Lauren Designer Profile. New York Magazine.

http://nymag.com/fashion/fashionshows/designers/bios/ralphlauren/ Ralph Lauren Company Profile. LexisNexis. http://0-

www.lexisnexis.com.library.scad.edu/hottopics/lnacademic/? Chedder Berk, Christina. “Retailers, Stand by Your Man”. CNBC.com. 13 February 2012.

http://www.cnbc.com//id/46313994 Clifford, Stephanie. “Men Step Out of the Recession”. New York Times. 19 February 2012. http://www.nytimes.com/2012/02/20/business/men-are-buying-fashion-accessories-after-

slow-recession-sales.html?pagewanted=1&_r=1 Frank, Robert. “The Five Species of Luxury Consumer”. Wall Street Journal. http://blogs.wsj.com/wealth/2010/12/21/the-five-species-of-luxury-consumer/ Han, Young Jee, Joseph C. Nunes, & Xavier Dreze. “Signaling Status with Luxury Goods: The

Role of Brand Prominence. Journal of Marketing. Vol. 74 (July 2010), 15-30. Rozhon, Tracie. “Dressing Down Tommy Hilfiger”. New York Times. 26 December 2004.

http://query.nytimes.com/gst/fullpage.html?res=9B0DE0D71130F935A15751C1A9629C8B63&pagewanted=all

www.ralphlauren.com www.brooksbrothers.com www.nautica.com www.tommyhilfiger.com