In 1982, Vera Bradley was founded with an idea of two neighbors, a work space of a ping pong table, and $500! The founders were disappointed while traveling that baggage was no longer beautiful and they started their own brand. The company was named after founder, Barbara Bradley Baekgaard’s mother, Vera Bradley. Vera worked for the company as a sales person until she passed in the early 1990s. The stores still celebrate her birthday each year (“About Vera Bradley”)!
Vera Bradley is headquartered in Fort Wayne, Indiana where they continue to have their annual outlet sale at the Allen County War Memorial Coliseum Exposition Center. In 1987, Ernst & Young honored the co-founders as “Entrepreneurs of the Year” and twelve years later they were …show more content…
Vera Bradley market position allows them to strategically employ a pricing skimming strategy. Because of their retail and outlet presence that can charge higher prices initially in the retail space and then decrease the price when the products are moved to the outlet. This strategy allows the retailer to maximize profits in the space where consumers are less price sensitive but also attract a market segment that is more price sensitive. Vera Bradley uses data analytics tool, InsightPricing to manage their business. InsightPricing allows retailers and brands to determine optimal entry price points and forecast average unit retail prices before products hit the …show more content…
First, Vera Bradley should explore the option of expanding into global markets like Europe, India and China. Europeans typically travel more than consumers in the United States, so I recommend expanding the travel line. Historically, Vera Bradley has avoided creating products for men. A men’s line would open a revenue vein but would likely needed to be marketed under another name likely “Bradley”. Millenials are another market segment that could create opportunities. However, a new product line would need to be customized for the age group, I would recommend expanding the leather and career collections. Consumers seem to be interested in more solid leather products. The company has also increased the marketing budget from $2 million to $10 million to strengthen their online presence and customer
Vera Bradley is headquartered in Fort Wayne, Indiana where they continue to have their annual outlet sale at the Allen County War Memorial Coliseum Exposition Center. In 1987, Ernst & Young honored the co-founders as “Entrepreneurs of the Year” and twelve years later they were …show more content…
Vera Bradley market position allows them to strategically employ a pricing skimming strategy. Because of their retail and outlet presence that can charge higher prices initially in the retail space and then decrease the price when the products are moved to the outlet. This strategy allows the retailer to maximize profits in the space where consumers are less price sensitive but also attract a market segment that is more price sensitive. Vera Bradley uses data analytics tool, InsightPricing to manage their business. InsightPricing allows retailers and brands to determine optimal entry price points and forecast average unit retail prices before products hit the …show more content…
First, Vera Bradley should explore the option of expanding into global markets like Europe, India and China. Europeans typically travel more than consumers in the United States, so I recommend expanding the travel line. Historically, Vera Bradley has avoided creating products for men. A men’s line would open a revenue vein but would likely needed to be marketed under another name likely “Bradley”. Millenials are another market segment that could create opportunities. However, a new product line would need to be customized for the age group, I would recommend expanding the leather and career collections. Consumers seem to be interested in more solid leather products. The company has also increased the marketing budget from $2 million to $10 million to strengthen their online presence and customer