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Market study - Sales management and negotiation techniques - Rent the runway

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  1. Executive summary
    1. Company profile
    2. Target consumer profile: NEEDS and WANTS
    3. Mission statement
    4. Market analysis: USA
    5. Strategic options
    6. Sales strategy
  2. Case study questions

Rent the Runway (RTR) was founded in New York City in November 2009 by Jennifer Hyman and Jennifer Fleiss, with the idea that nowadays female consumers purchase costly products for the reason that they create a unique experience that goes farther than the price itself. Hyman observed a business opportunity; women who seek to have that experience also have budget and social limitation, since the clothes were used specifically for one occasion. For this reason, Rent the Runway has been established as an eCommerce business with a goal to democratize luxury in the U.S. by enabling millions of women the access to wear expensive clothing and accessories.

[...] Even if this is an commerce business, the company has also six stores in Chicago, Washington DC, Georgetown, San Francisco, Topanga and Las Vegas. If Rent the Runway is compared to Netflix for its business model, this is because both companies created a new way to sell their products and services. This is the Mission Statement of the company to ?access to a new ownership?. This willingness can be explained with the creation of a new market segment on the clothes sale market. [...]

[...] In addition, for Polish women who pay more attention to fashion trends, but are also aware of how fast these trends change, renting products from Rent the Runway could be a good alternative for buying. Given the circumstances, a company like Rent the Runway has a potential in Poland and with prices adjusted to the market situation, it could become a very successful platform. References Bertoni, S How Mixing Data And Fashion Can Make Rent The Runway Tech's Next Billion Dollar Star. [...]

[...] Fortunately, RTR has found the solution by disposing a ?150,000-sq. ft. fulfilment centre.? and equipped with a speed reverse- logistics system? (Rent the Runway, 2017). Finally, they developed their own app along with their website help customers find the right dresses and accessories amidst nearly 65,000 items? by ?leveraging a huge amount of fit data? upon their customers. (Rent the Runway, 2017) Sales Strategy The Sales Strategy of the company is quite special, due to the concept of the business model. [...]

[...] The company has two customers, the first one and the most important is the current American woman, from age 20s to 40s, middle class, with access to internet and interest in social media (for example they follow Refinery291 and theSkimm2) and apparel and fashion, that desires to purchase an expensive dress to be part of the fashion world. The second target customers are still not customers, although the plans for RTR are to be an online store where retailers such as Zara and H&M can display their unsold inventory, provide the service and the community for renting the clothing these businesses have in stock. [...]

[...] However, the company and its managers do not take its position for granted and all strategies are considered to be improved. Concerning the current Sales strategy, Rent the Runway manages it efficiently with a good knowledge of the market. The items and services proposed by the company concern a specific part of the population; it concerns people who are eager to wear a designer's dress or accessories for a special occasion. Then the soft way to sell their products is well thought for this type of customers. [...]

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