The project was to create a buying plan for a company. My group and I chose Nike.
Since Nike is a billion dollar company with many different products, we focused on footwear.
From there we did four plans total: a buying plan, assortment plan, and two plans for two locations we felt best suited the company.
The buying plan was based on a planned $350M in sales. We calculated that August and January were our "hottest" months due to back to school season in August, and after Christmas shopping in January. Our next two favorable months were September and December, due to markdowns from the summer (back to school) season in September, and promotions during the holiday season in December. Lastly, we decided that our two "slowest" months would be October and November, while November would start to see more sales during the end of the month after Thanksgiving. We planned according to the months.
The next plan was the assortment plan. We broke down the footwear category once again and decided to focus on two sports: running and basketball, as these shoes make up majority of sales in the Nike footwear business. We believed that from these two categories 60% of sales would come from basketball shoes, while 40% would come from running.
We decided that we would have a size run from 5-10 for women, and 6-12 for men. After research, we conducted that the most common shoe sizes for women were 7 and 8, the second most common sizes were 6 and 9, while sizes 5 and 10 were the least common. For men, the most common were 9 and 10, the second most common were 7,8, 11, 12 and the least common shoe size was 6. We also believed that 60% of the sales would come from male customers, while 40% would be from female customers.
We then moved onto our locational plans. We picked a town called Grapevine in Texas that is located on the outskirts of Dallas and Fort Worth, TX. We went with a location outside of two major areas to reach a broad range of consumers, and meet our consumers' footwear demands. We believed that this stores planned sales would be $400M.
Our second location was in Portland, OR. We believed this store would generate $500M in sales. Due to its location, the store reaches a various range of consumers that would help the store flourish.
The project involved many hours, extreme research and a lot of critical thinking as well as math/Excel skills. I learned from this project how to input calculations in Excel, as well as conduct a buying plan for a multi-billion dollar company on a smaller, more refined level.