Chapter 18 - Sales Promotion and Personal Selling

This week's chapter focuses on a company's sales promotion and personal selling. Fortunately,  Gilt Groupe's entire business model features sales promotion and actively finds way on building their personal selling skills. As stated  in last week's post, Gilt's has a growing membership of over 5 million. With a membership base, the website programmers at Gilt can compile very vital information to the marketing managers and buyers on what type of items customers are buying.

Sale promotions are enticing to any consumer trying to find a deal. For example, if you walked into a store and saw a suit you really like, generally speaking the first think you would do is look at the price tag. Paying full price for something now a days seems a little bit wrong considering that our economy is in a financial crisis and saving every dollar really counts. Major department stores have sales more often than 10 years ago and consumers see this pattern. However Gilt Groupe is a company that runs sales all year round. This is their man advantage when drawing in new and repeating members to their website.

With its large member base, one can only assume that personal selling is something that is a major disconnect with Gilt. However, after being a member myself since the company started in 2007, Gilt's personal selling techniques are very effective. Being a members based platform, the company can track very unique information. For insistence, being a member requires one to input their first and last name, email address, home address, date of birth, gender.

Once a member, you can edit your email settings on what you type of newsletters you would like to see.

Lastly, a member can go through the company's brand directory and choose what brands are their favorites. This is one of many features for the company to edit their newsletters so that every time a specific brand in your favorite goes on the website, it will featured in the email you receive. Below is an example of the favorites option. 

Chapter 17 - Advertising and Public Relations

Since Gilt Groupe is an E-Commerce members only business model, their advertisement/marketing is featured solely through social media platforms and the company's very own website. By being a members-only business, the company can gather very unique and vital data on each customer. According to Gilt's CEO Kevin Ryan, the company sends out 2,000 different versions of its daily newsletter to its 5 million members based on their personal preferences. Its data also provides Gilt with the Holy Grail in advertising by quantifying data on the spending patterns of loyal, wealthy nearly recession-prof consumers. 

Other department stores looking to reach out to buyers can't access these type of big-spending consumers the same way. Ryan states, "A Sak's or Macy's can't do this because they do not have a membership-only model. The only people who can do this area are flash sales types and Facebook."  

But Gilt's data is more valuable than Facebook's for this particular breed of advertisers, because Gilt.com doesn't have to guess what people's spending habits are. Once you are a member, Gilt can gather precise information due to a member first and last name, age, home address and what type of things they purchase. Every time a customer makes a purchase on the website, the company stores this information and will adjust how they market and advertise to that individual. For example, if I start to buy more ties and suits, they will advertise an email newsletters to my liking. 

Below is a short 3 minute video the company created to show its Public Relations. 

Chapter 15 - Retailing

Unfortunately the original company I chose to write about (Gilt Groupe) is strictly an E-Commerce business platform and does not have any brick and mortar locations. Therefore I decided to write about Bergdorf Goodman for this week's blog post on Retailing.

Bergdorf Goodman is a luxury department store located in New York City. It was founded by Herman Bergdorf in 1899 and is one of the oldest department stores in America. Currently Bergdorf Goodman operates 2 locations across the street from each other on 57th st and 5th ave. Bergdorf Goodman's main store is located on the west side of the street and was opened in 1928. This location is the company's women, children, and home store. The 2nd location was opened in 1990 and is located on the east side of 57th and 5th ave. This is the company's mens department, servicing everything from made to measure suits, hair cuts and a nice shave.

I decided to write about Bergdorf Goodman (Men's store) because I have always been fascinated with luxury clothing at such a young age. Luxury clothing to me represents a form of success and achievement when one can afford expensive clothing. When walking into Bergdorf Goodman one may be taken back with how elegant the store is designed and merchandised.  Bergdorf Goodman arguably is the only location in New York City that sells all the luxury designer brands under one location. It truly is a one stop shop for designer clothing. In this store, one will find shop in shops. Shop in shops are small designated area for a designer to build a shop within Bergdorf Goodman. Below is a photo of the Tom Ford dress shirt shop in shop.

Here is another photo of the Yves Saint Laurent shop in shop located on the 3rd floor.

Below is a photo of Lanvin's shop in shop located on the 3rd floor.  This happens to be one of my favorite brands.

Overall Bergdorf Goodman exemplifies and prides themselves on a true shopping experience when visiting their store. The company's customer services does not fall short to the high prices clothing they sell.  One can buy YSL, Tom Ford, Ralph Lauren Purple Label, Gucci, Lanvin, Dior Homme, Givenchy, Balmain, Thom Browne, Isaia, John Lobb (and more) at each of these designer's privately owned stores all located within 3 city blocks from Bergdorf Goodman. However, customers will continue to shop at Bergdorf Goodman because of their excellent customer service and the feeling of being apart of "OLD NEW YORK." There is truly no other store in America quite like Bergdorf Goodman. 

Chapter 6 - Consumer Decision Making

It is very crucial for a firm to understand  how consumers make their decision when making purchases.  Acquiring this knowledge will help a firm's decision on how they specifically market their products to their consumer.

As you all may know by now, Gilt Groupe is a members only flash website that offers designer clothing for men, women, and children up to 80% off.  As a consumer, being apart of a members only website like Gilt.com creates an atmosphere of exclusivity for the shopper's experience.

We live in a world today were designer clothing and goods represent a sign of success and wealth. Generally speaking, the average person would choice to wear designer clothing but never do because of the high cost.  Gilt is a business platform that caters to all consumers that want to wear designer clothing but at very affordable price.

The first step to gain a consumer's trust is through brand recognition.  There are many off price flash websites in the market today but Gilt Groupe is the first of its kind.  Gilt's advantage to their business model not only from the product they sell but lies with the people they employee.  By hiring veteran clothing buyers that have priceless relationships with designer brands provides the company a major advantage.  These relationships allow Gilt.com to sell these designer clothes at a discounted price on their website exclusively. Once a consumer gains the trust of a company through brand recognition, a stimuli occurs and now you have a customer making a decision based on how well things are priced on the website. That is why Gilt.com has over 5 million members and still counting.