Vera bradley case study

Running Head: VERA BRADLEY CASE 1

VERA BRADLEY CASE

Vera Bradley Case Entrepreneurial Process Review

Sahaboob Yassin

ENT/527

12/12/2016

Louay Chebib

Introduction

Vera Bradley was founded in 1982 by two women; Patricia Miller and Barbara Bradley Baekgaard. Through friendship, vision, determination, and common goals, both ladies were committed to each other to carry on their vision of selling handbags, accessories, and luggage that could potentially transform into worldwide business (Bygrave & ZacharakisBygrave, 2014). In this review, insight on what resources were critical to developing Vera Bradley and a formed conclusion from information about the market research and level of analysis and planning employed by both Barbara and Patricia will be covered.

Additionally, the case includes an opinion expressing Vera Bradley’s sales, distribution, and production strategy as well as feasible alternatives formed about the three different strategies, based on Vera Bradley’s resources. Opinion addressing Vera Bradley’s initial focus on middle-aged and older women and whether the company’s decision will lock it out of expansion to a younger demographic market is also included as well as a formulated opinion of whether Barbara and Patricia’s focus on company culture is advisable during this early stage of company development and growth will be addressed. Lastly, a complete examination on what would happen to the sustainability of that culture if and when the company experiences major growth will be presented. Comment by Dr. L. F. Chebib: Sentence is Too long

What Resources were Critical?

Like any other business, Vera Bradley required certain resources to set up a productive business. Other than the availability of resources, the two founders required cash to fund for fabric, one seamstress, supplies, business cards and permanent employees. They also needed financial know-how, and would-be investors, who believed in their capacity to get the business up and started for the gift exhibitions to present their products (Bygrave,Bygrave & Zacharakis, 2014). Following their first visit to a trunk show were they sold all twelve trial product bags, the two women got their spouses to loan them $250 apiece to buy fabric, zippers, and other items required to make their handbag and place in an advertisement for a prospective seamstress to keep their small business flowing. The two founders required vendors such as Will Little, who helped in displaying Patricia and Barbara strategically in the front of shows to draw purchasers.

With time, the two came up with a vision after seeing the need to expand Vera Bradley owing to the augmented inquiries about more products. Jointly, both founders decided to obtain a bank loan following Barbara’s reception of a check from her husband’s ex-work colleague. Due to their limited experience and knowledge in financing, the two women sought financial expertise from the local office of, the SCORE (Service Corps of Retired Executives (SCORE) (Bygrave,Bygrave & Zacharakis, 2014). The local office appointed George Cook, a retired financial executive to go and help the ladies and by analyzing their associated sales, marketing cost, distribution, and production, he gave advised on different ways of profit-making for Vera Bradley. Comment by Dr. L. F. Chebib: usage

Market Research, Analysis, and Planning

The introduction of an assortment of feminine accessories, handbag, duffel bag, and the sports bag into the market by Vera Bradley was done at the right time. During travel and leisure time at the airport, the two women observed that many travelers all owned similar, dull, uninviting luggage, handbags, and sports bags and therefore planned on targeting the market by drawing in young college students, middle-aged women and college graduates entering into the workforce (Zellers, 2016). Patricia and Barbara explored their market well aiming to appeal to all age groups of women, and paying attention on what buyers’ reactions, needs, behaviors, wants, and styles regularly change. Launching novel products to a dynamic market like they both chose was the finest decision either one could make for the company.

Furthermore, the level of planning and analysis was mastermind as both founders were able to assess the various sizes of handbags, traveling bags, and sports bags, merely by visiting the airport. Through their exploration and the assistance of relatives and outside sources, Patricia and Barbara were able to examine the growth rate and the potential of the market (Bygrave,Bygrave & Zacharakis, 2014). By both women making use of their children’s creativity, they managed to produce smart products and got a chance to see their customers’ preferences concerning where and when to buy the company’s products, the standard prices for the products, and promotional techniques that could be potentially successful.

Vera Bradley Sales and Distribution Strategy

Due to insufficient seamstress production capacity to meet the expanded for product demand and inadequate amount of material and zippers for the product, the company faced a difficult time in their production and distribution strategy. Since resources were scarce the easiest way to guarantee that cash would not go into waste was to network and explore every single dimension entailed in the company’s collection (Bygrave,Bygrave & Zacharakis, 2014). The two founders should have conducted research in their neighboring areas of various fabric shops which traded in the accessories and material required for the manufacturing of their product. By using the town’s phone book, out-of-the-city phone books, or the information hotline from the house phone could have provided a quick way to locating shops which sold quality fabric (Bygrave & Zacharakis, 2014).

By setting up relationships with fabric vendors, the two women would not have avoided problems with limited fabric, as they would have become consistency purchasers who buy the product from the fabric dealers. The fabric vendors could have also been looking for new accessories and patterns (Fortune.comEng, 20156). Although the business partners started their journey with one seamstress, they should have worked on placing ads in the local newspapers to obtain more sewers once the initial seamstress was found to aid with the transition of their product. This course would have provided the founders an opportunity to make as many sports bags, handbags, and duffel bags with increased sales and no delay. The sales strategy was satisfactory enough even with the scarce amount of cash obtained to get the Vera Bradley growing until their third year into company’s success. Comment by Dr. L. F. Chebib: ? Comment by Dr. L. F. Chebib: Use the authors name when known

The two founders should have also intended on working on their distribution strategy of prospective retailers, department stores, factory outlets, etc. immediately T they got the chance in Tavern on the Green situated in New York City’s Central Park (Zellers, 2016). The strategic plan for production could have focused on introducing a restricted number of signature patterns every year with just two to four solid prototypes showcases every time of year. The strategic plan for sales should have explored the trend of such firms as Coach, Michael Kors, Kate Spade & Company, and other rivals (Fortune.com, 2016). Recruiting interns of various age groups to assist in research and also design market trends would also facilitate sales for Vera Bradley.

Vera Bradley’s Initial Focus

Vera Bradley early focus on middle-aged and older women was because of their special preference and also through their know-how in commuting from one state to another. Middle-aged and older ladies, who have retired, working class business ladies and moms on the go, were more likely to travel during family visits, world exploration or business trips. Patricia and Barbara predicted the need for fashion, versatility and class among middle-aged women and older women during their traveling (Tunipseed, 2016). The products had the middle-aged and older women keyed up about the maturity of its design and beauty (Zellers, 2016).

Patricia and Barbara’s decision for Vera Bradley will not decrease in sales or extension to younger demographic market. College women are at a stage of seeking higher responsibilities in the prospective careers and graduates are on their way into the job market need to get ready and be seen as young, mature, elegant and adaptable to their workplace. The company makes out that they have to be conventional with the changing desires of the society (Bygrave & Zacharakis, 2014). As trends and product design change, Patricia and Barbara are still committed to appealing to both younger and older women.

Company Development and Growth

The company’s management should pay attention to their culture as an important aspect during Vera Bradley’s early stage of growth and development. If ignored, the results could be detrimental. The company should put seriousness into its mission, vision, expectations, ethics, value, work environment, language, goals, habits, and language. In the course of interacting with companies, consumers put interest in the way they are treated, as well as the attractiveness and affordability of the product (Bygrave,Bygrave & Zacharakis, 2014). If Vera Bradley fails to introduce into its staff the significance of what the firm represents, they will push the customers away due to bad reputation. Vera Bradley firm will face a decline in profit and impact its experiences at a period of major growth. If culture is attended to at the early phase in its development and growth, Vera Bradley will experience affirmative growth in their experience and expansion.

Conclusion

In conclusion, a plan and vision require courage and constancy when opening a business. Patricia and Barbara are two exceptional ladies who took a chance at opening Vera Bradley and handling the encouraging and appalling experiences with confidence and trust in each other. Although they entered into business of selling handbags, sports bags, and accessories with limited experience and knowledge, they were ready to seek the proficient assistance from experts and friends hence gaining all through their journey. Vera Bradley’s resources aided with its company distribution, sales, and production strategy. The focus on older women and middle-aged women has now evolved to various age brackets of females due to the diverse trends and yearly transitions in society. The company should focus on its culture as a way of ensuring unwavering success.

References

Bygrave, W., & Zacharakis, A. (2014). Entrepreneurship (3rd ed.). Hoboken, NJ: John Wiley &

Sons.

Eng, D. (2015)Fortune.com. (2016, October 28).. How Vera Bradley’s founder bagged success. Retrieved from

Fortune: http://fortune.com/2015/09/12/vera-bradley-founder-barbara-bradley-baekgaard/

Phoenix.edu. (2016, October 26). Vera Bradley Case Entrepreneurial Process Review. Retrieved

from University of Phoenix: https://newclassroom3.phoenix.edu/Classroom/#/contextid/OSIRIS:50586652/context/co/view/activityDetails/activity/4ea1f767-da19-4bf2-9d88-39d94d68ea76/expanded/False/tab/Instructions

Tunipseed, D. L. (2016, October 27). Question: Case 13, Vera Bradley in 2014: Will the

Company's ... Retrieved from Chegg: http://www.chegg.com/homework-help/questions-and-answers/case-13-vera-bradley-2014-company-s-strategy-reverse-downward-trend-synopsis-major-case-fa-q11934165

Zellers, Z. (2016). THE NEW FACE OF VERA BRADLEY. Design , 28 (9), 42-48.