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Execution

Innovation. Design. Execution. Sales. Mission Statement Bring profound comfort, fun and innovation to the consumer ’ s life. Mission Statement

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Execution

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  1. Innovation Design Execution Sales

  2. Mission Statement Bring profound comfort, fun and innovation to the consumer’s life. Mission Statement To be best in class in delivering sports and lifestyle accessories, by developing product that includes innovation, speed to market, eco responsibility, and business management.

  3. The Active Energy Brands Division Timeline Partnership with JR286 in 2009. Abe Dweck Joins AE and starts aggressive brand acquisition 1995 AE Starts Active Energy Brands Rich Stober President 2008 Brand Acquisition 2010 With partnership from JR286 Accessory Exchange founded in 1909 Accessory Exchange Enters Dept Store Business 1970 Founded as Sutton Sourcing Acquired the K-Swiss Brand

  4. People Sales Financial Innovation They are the foundation to who we are. We have assembled a team of people with the most diverse backgrounds and experiences who are passionate innovators. We know sport and fashion accessories. Our company has been sourcing, designing and selling fashion and sport accessories for 101 years. Growth is Key Objective! In House Current Key Account structure Independent commission or agencies Partnering with Crocs Retail and On-line operations Commission $ paid to Croc reps A Strong Financial Strategy Strong Cash Position Solid Banking Relationships Allows Inventory Management Supply Chain Efficiency Price-Value Purchasing Sales Integrated Merchandising, Design, Development & Brand Identity! Work closely with internal footwear and apparel teams for continuity in technology and design of the brands direction. Accessory focused consumer research assures unique innovative product that is relevant to Croc’s target market Melding People, Sales, Financial and Innovation for Success

  5. Corporate Headquarters New York Design/Merchandising Los Angeles, New York Product Development New York, Los Angeles, North Carolina, Hong Kong, Shanghai Sales Offices New York, Arkansas, Chicago, Minneapolis, North Carolina, Los Angeles Distribution New Jersey, LA, North Carolina, Toronto Sourcing Office Hong Kong, Shanghai An International Presence

  6. CHINA OFFICE Melding People, Process and Technology For Success

  7. A Global Presence Corporate Headquarters –New York Design/Merchandising -New York/Shanghai/ LA Product Development -New York / North Carolina -Hong Kong / Shanghai Sales Office New York, Arkansas, Minneapolis, Chicago, North Carolina, LA (June) EDI / Logistics -New York / Shanghai Distribution -New Jersey, LA, North Carolina,Toronto International FOB Ship Point -Shanghai Sourcing Office - Hong Kong, Shanghai

  8. A Global Presence Logistics Corporate Headquarters –New York Design/Merchandising -New York/Shanghai/ LA Product Development -New York / North Carolina -Hong Kong / Shanghai EDI / Logistics -New York / Shanghai Distribution -New Jersey, LA, North Carolina, Toronto International FOB Ship Point -Shanghai Sourcing Office - Hong Kong, Shanghai World Wide Sales & Distribution U.S. Sales Offices New York, Arkansas, Minneapolis, Chicago, North Carolina, LA

  9. Melding People, Process and Technology For Success Combined JR286 & Active Energy Brands Supplier Base

  10. A Retail Distribution Advantage Sporting Goods Dicks Sporting Goods Modell's Hibbett's TSA Academy Big 5 Dunham's Sports Chalet Foot Locker Mass Walmart Target Kmart Specialty Store Market Shoe Chains Famous Footwear Shoe Show Shoe Carnival Payless Journeys Department Stores Saks Lord & Taylor H&M Nordstroms Macys Dillards Belk Chain Stores JC Penney Sears Kohls Outdoor REI Gander Mountain Bass Pro Cabellas Off Price Nordstroms Rack TJ/Marshalls Steinmart Stage Gordman’s Clubs Sams Bj's Costco Key Accounts Distribution: $100 million +

  11. Technology Continued investment in applications to support multiple business models Sales Data Inventory EDI Purchase Order OM Accessory Exchange IT FA AP WMS AR Testing RFID to better manage product GL

  12. Process Market Research POS Results Launch Planning Success Tracking Progress Ongoing Product Cycle Design Product Development Test Replenishment Forecast Mfg Production Ship POS Info Retail Orders Stock Adjustment In Store Need

  13. Going Forward Growth is Key Objective! In House Current Key Account structure Independent commission or agencies Partnering with Crocs Retail and On-line operations Commission $ paid to Croc reps A Successful Sales Strategy

  14. Melding People, Process and Technology For Success Crocs Organization Chart Division President VP- Sales VP –Design/ Merchandising Logistics /Finance Product Development / sourcing

  15. Crocs Sales Organizations Melding People, Process and Technology For Success VP – Croc Sales Rep Coordinator Key account sales CROCS DIRECT Sport specific Shoe chains Dept stores Off price independent 16

  16. Product History Initial Product Proposals - Bags

  17. Product History Initial Product Proposals - Hats

  18. Product History Initial Product Proposals - Kids

  19. Going Forward Promotion – Product Placement – Consumer Awareness

  20. Going Forward Product Process Part One Part Two • 1. Learn about the Brand - Who is Crocs? • Mission • Heritage • DNA • Consumer • Retail Environment • Product Initiatives • 2. Research • Market • Trends • Color/ Fabrics • Consumer 1. Create Concept Boards 2. Brief Product Team 3. Review Initial Designs 4. Finalize Presentation to Brand 5. Brand sign-off 6. Launch to Market

  21. Going Forward PRODUCT IS KING!!!! Head-to-Toe Concepts • UV Protection Headwear • Technology in Bags • Lightweight • Controlled Weight Distribution • Fabric Innovation • Concept that ties to Toning • Eco-friendly/Reusable Shoppers • Suedes and Canvas to hook to Ftwr Concepts • Warm, Fuzzy Knits and Flannel Lined Hats • And … • Medical Technology in Socks ? • Innovation. Fun. Simplicity. Comfort.

  22. Faster Product to Market Vendor Managed Inventory Dynamic Sales Structure Equals Increased Market Share

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