Packaging
Redesign
Hillary Frazer
Company History
•  Started by Horace Saks and Bernard
Gimbel
•  Opened first store in 1924 at 5th
Avenue between 49th and 50th Streets
•  Specialty shops within a large space
•  Launched Esteé Lauder’s cosmetics
line in the 1940s
•  Opened America’s first Dior boutique
in the 1970s
•  Launched Donna Karan’s first
collection in the 1980s
Today
•  45 stores in 23 states
•  Saks Incorporated
includes Saks Fifth
Avenue, OFF Fifth,
and Saks Direct
•  Over 350 women’s
apparel brands
•  140 women’s shoes
and handbags brands
Fiscal Year 2010
•  $2.7 billion in sales
•  Net sales increased 5.9% in comparison to the
previous year
•  Women’s apparel accounted for 37% of business
•  Accessories were 18.9% of business
•  Cosmetics were 12.1% of business
•  Men’s apparel was 15.2% of business
•  Women’s shoes were 12.8% of business
•  Other categories contributed to 3.5% of business
Saks Fifth Avenue Product Mix
Men’s and Women’s
•  Apparel
•  Shoes
•  Handbags &
Accessories
•  Cosmetics
Kids
•  Apparel, shoes,
accessories
Home & Gourmet
•  Home décor
•  Bed & Bath
•  Dining
•  Gourmet foods
•  Kitchen
•  Tech & Accessories
•  Travel & Luggage
•  Pet accessories
Target Market
•  Current Saks Fifth Avenue customers (men,
women, and children): upper middle class
to wealthy socioeconomic status,
fashionable, brand conscious
•  Tourists: draw in more tourists with the
exclusivity of the brand and the new
packaging
•  New customers: potential growth with more
environmentally conscious shoppers
Market Trends
•  Eco-friendly is a
trend sweeping
all markets
•  Many retailers are
already making a
switch to a more
sustainable
packaging
structure
Positioning Statement
We provide the highest quality apparel, accessories, and cosmetic brands
for women and men. Our new shopping bag line as well as shipping
requirements are the most environmentally friendly possible.
Competition
Bloomingdales is a
direct competitor to
Saks Fifth Avenue in
their market. Their
brown bags are made
of recycled paper and
are more eco-friendly
than Saks’ current
bags.
•  41 stores, 4 outlet stores
•  Part of Macy’s Inc.
•  Offers some of the same brands as Saks
Fifth Avenue
•  Target Customer: upper middle class
individuals who are fashion forward and
brand conscious like Saks customers
•  Lower median price point in comparison to
Saks
Competition
Bergdorf Goodman is
also a competitor to
Saks Fifth Avenue. Their
shopping bags are
made of a heavy duty
paper, and require a lot
of dyes.
•  2 locations
•  Part of Neiman Marcus Group
•  Same brands as Saks Fifth Avenue as well as
some other higher priced brands
•  Target Customer: wealthy individuals who
are very brand conscious and enjoy
luxurious commodities
•  Slightly higher in median price point in
comparison to Saks
Past Packaging
The most recent packaging
designs use minimal color and a
repeated design or short phrase.
Current Packaging The Problem
Shopping Bags
•  No sustainability angle
•  Thick, bleached paper
•  No incentive to keep
or reuse
•  Expensive
Shipment
•  Too much over packaging
•  Inefficient packing methods
Current Costs
1,000 bags
$1830
@ $1.83 Each
Although these bags are relatively cheap to
make they are harmful to the environment
New Product Line
•  Shopping bags made of cotton
based paper
•  Vegetable oil based inks
•  Repeated cotton motif to form a
pattern
•  Smaller bags as well as gift wrap
will have this design in variation
•  Garments will be wrapped in a
recycled tissue paper per the
customers request
Shipping Instructions
From Saks’ Corporate Vendor Relations Handbook:
•  You are encouraged to use recyclable, ecologically safe packing
materials whenever possible. Use packing materials to protect your
product in transit so that it is received in saleable condition. However,
we do not want you to be excessive with these materials and waste
resources.
•  Pack your merchandise in such a manner as to prevent concealed loss
or damage in transit.
WRINKLE PREVENTION
•  Cover each garment with a clear, clean polyethylene (dry cleaning) bag
to prevent soiling or wrinkling.
•  Place tissue or cardboard between the layers of merchandise if
necessary to prevent crushing and shifting of the contents.
New Shipment Methods
•  Boxes shipped by item style
•  One plant based plastic overwrap per box
•  Only items on hangers may be plastic overwrapped
•  Items that have embellishment may be wrapped in tissue
to prevent damage during shipment
•  Boxes must be recycled, not thrown away
Distribution Channels
Online: Purchases made online and shipped to
homes will implement the new shipment
requirements including the least amount of
packaging and collateral materials. A detailed
description of the new packaging will be on
the receipt included in the box.
In Stores: New York City locations will roll out
the product first. A few months later it will be
diffused throughout the company. Purchases
made in stores will have the new shopping
bags as well as the new recycled tissue paper.
New Costs
Cotton Paper Roll 24” x 50’
$107
Makes 100 bags @ $1.07 Each
Not including possible extra charges for environmentally
friendly dyes, these new bags are slightly cheaper.
Marketing Campaign
Emphasis on email, social media,
signage, distribution of bags, ads
around the city
Goal: Increase sales 8% to LY. Increase
traffic and purchases by 10% to comp.
Email Blast
Social Media Tools
Saks Facebook page will promote
the new packaging strategy. For
example, “like our new shopping
bags and receive 10% off your next
purchase.
Twitter will be used to market the new
shipping and packaging product line. This
promotion will also have links to details
describing the “going green” aspect of the
product.
Taxi Advertisement
Signage in Store
Fifth Avenue Store will
have signage at door
entrances and registers
to promote the new
packaging.
Projected ROI
•  Current bags: $1.83 each
•  Proposed bags: $1.07 each
•  Proposed new shipping methods will
reduce waste and cost
With projected sales growth of 8%, 2010’s
sales of $2.7 billion should increase to $2.9
billion
In Conclusion
Our mission is to create a new packaging strategy for
Saks Fifth Avenue, that not only allows them to cut
costs but make the step towards going green. The
marketing of this new product will be distributed
through a series of advertisements, social media, as
well as emails. The new shopping bag features
sustainable materials and a simple design.