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Definition of Success and Critical Issues

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Definition of Success and Critical Issues

In order to run Ed Williams Mens Wear successfully in the future, Lowell expects to increase the sales, and stay competitive in the growing market.

  • Ed Williams Mens Wear can attract younger customers
  • Maintain its high-end image and high-service while keeping customers’ loyalty

Situation Analysis

Internal Analysis

Ed Williams Menswear has successfully established its high level of personalized customer service and its fashionable clothing. (See exhibit 1). Currently, ED William has high expenses that are causing a steep drop in their profit margin. The company has a 44% gross profit margin which is below the industry standard’s margin of 50%-55% (   ). Advertising and Promotion constituting 9.5% of expenses (….), but direct mail promotion is ineffective for maintaining relationships with old customers and attracting new customers. The northwest location’s rent is cheaper compared to downtown’s, however the store is in suburban area, therefore it might loss some walk-in customers (  di tu fen bu ). Moreover, the store appearance and layout make young customers think Ed’s more catered to their dads’.

External Analysis

Calgary was home to a large numbers of head offices, and the economy is vibrant due to oil and gas factor, which means that the demand in suits and other casual wear is relatively higher. However, the menswear business is getting more and more competitive because lots of retails see a huge potential in Calgary market. The majority of customers were over 35 which cause customer aging problem. On the other hand, the popularity of “Dress-down Friday” also deceased sales in suits. Additionally, based on gender shopping habits, man tend to less patient with shopping than women, and most of men don’t like being told what to wear because it will make them feel inferior about themselves (See exhibit 4).

Decision Criteria

Ed Williams Men Ware has been successfully in selling high-end menswear. The total sales of company was $1,943,925 in 2009. Lowell expects to attract more customers, especially young customers, to increase the company’s sales.

  • Increase sales to $2,000,000 or more in the 2012 fiscal year.
  • Keep high standard of customer service
  • Beneficial to the business in long-run

Option Analysis

Option 1. Focus on online marketing

This option focus on online advertising by using Facebook. Ed’s current marketing strategy is by word-of-mouth which doesn’t spread as fast as the social media. Direct mail has high cost and not environmental-friendly. Moreover, distributing direct mails few times a year sometimes cannot reach to customers in time due to changed address. As the research shows, 92% of Canadian are using email whereas 70% using social media, the Net income for this option is $34,091 (See exhibit 6).

The risk associated with this option is the costs associated is high and addition staff might need to be employed. In order to mitigate this risk, we could use funds that was for printing mails to cover high cost in social media.

Option 2. Expend next door to add Women’s line

This option includes open a women’s clothing store next to our current location. It can be a very complementary business for EWMW because one category is women who likes shopping for their husbands. Women tend to enjoy with shopping process while men just shopping when they need. The research shows 49% of male said shopping is about getting in and out (See exhibit 4). Women purchase more often than men on Ed during one year, and some women are not just purchase for themselves but also purchase for their husbands.

However, women’s clothing retail stores are more competitive and women have less loyalty on brand than men. In addition, Lowell doesn’t have experience in women’s store. This option will be suffered from $13,482 loss (See exhibit 8), and it seems the loss will not recover in the following years, so it does not meet the third decision criteria. In order to mitigate this risk, management have to do a lot of marketing research before deciding which women brands we will carry.

Option 3. Renovate the current store and change the layout

Ed Williams has been opened more than 20 years, and the store looks outmoded and shabby. Young people refuse to go into the store thinking Ed William is for their “father’s age”.  Renovate the current store can look more appealing to young customers. Additionally, displaying our best suits and fashion casual clothing in front of the window so that it might increase possibility of walk-in customers.

This option has high cost and does not meet the first criteria, but help Ed William keep competitive in long-term perspective. The first year’s net income will be (  ), however, the loss can be cover by future operation.

The risk associate with this option is we might lose our loyal customers during renovation and carrying women clothing line is a bold choice given we have no experience in this industry.

Recommendation and Action Plan

Exhibit 1: SWOT Analysis




  • Extensive experience in menswear business
  • High quality clothing
  • Good customer service
  • In-store tailoring
  • Variety products
  • Fashionable brands of young clothing
  • Flexible working hour
  • Loyal customer bases
  • Strong entrepreneurial sprite
  • Low rental


  • old store, young customers think it is their parents store
  • Poor websit design
  • Outside of downtown location
  • Ineffective mail advertising
  • High price
  • Unattractive layout
  • Older employee and unexperienced employees


  • Growing population has potential to be a large target market
  • Lots of head offices boots demand for business wear
  • Big women market
  • The market on social media
  • Open a new store


  1. Capitalize on website and social media to attract young people
  2. Create a loyalty program
  3. Explore new market on women


  1. Change the visual of the store and its layout
  2. Explore advertising and increase brand awareness


  • Aging customers
  • Dress down Friday
  • Consumers shopping in US
  • Only have signal location
  • Lots of competitors


  1. Maintain the loyalty of customers
  2. Keep good stander reputation


  1. Decrease the price and do some promotion to gain the market

Exhibit 2:  PEST Analysis

Low tax, big market and strong pursuing power attract more new retailers.





Vigorously develop tourism

Increase minimum wage

Low tax

GDP increase 5.2%[1]

Canada dollar are stronger than before

Between 2006 and 2011, the population of the City of Calgary grew by 10.9%1

Young people (age 20-35) take 20%1

Social media become popular

Dress- down Friday

Mess media marketing

Security of online shopping and ads



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