Royal Beginnings Bridal and Formal

Shop: Buying For a Boutique

Submitted by (Group 9: Section B)

Ashika Meshram– MBA/06/127
Muthuraman A – MBA/06/145
Neetu Latwal – MBA/06/147
Vidhi Kochar – MBA/06/171
Ashish Agarwal – MBA/06/183
 BACKGROUND
 Anna & Jack Oleson co- founded Royal Beginnings Bridal and Formal Shop, a
full-service shop, designed to help customers create their customized look for their
special occasion in the year 1990.
 They catered to a clientele in search of bridal gowns, bridesmaid dresses, mother of
the bride dresses, tuxedos, prom dresses, invitations, and accessories.
 Their core business model was based on 3 factors:
Style
Price
Service
 The couple has to take important decisions regarding the delivery failures,
“miscommunications,” and strictly enforced minimum quantity purchasing
requirements with their current suppliers that had taken a toll on them both
financially and physically.
S W O T
• Strong shop Layout • Heavy dependence • Ample supply of • Increasing Online
• Variety of on suppliers customers according competition
merchandises • Excess inventory to statistics • Decreasing rate of
• Competitive pricing carriage • Increasing online marriage in US
• Up with trends presence • Counterfeit Issue
• Dedicated consulting • Excessive supplier
• Full service shop dominance
 5C FRAMEWORK
COMPANY
Started in 1990 by Anna Oleson and
her husband Jack Oleson. Expanded
into Bridesmaid, Mother’s Dresses
and Prom Dresses in 1991. Included
Flower girl dresses, Customized
Rental Tuxedos and Accessories in the
product portfolio by 2013
COMPETITION
No nearby store within a radius of 90
miles, but the recent boom in
technology online stores have become
one of their major competitors. No
CUSTOMERS brick-and-mortar store was able to
stay in business in their locality
80% prefer Brick and Mortar stores
whereas 20% prefer online stores.
About 40% of the customers have
already visited their online stores
before coming to B&M stores. They
normally visit the stores 3-4 times
with their family and friends and
spend about 12hrs in the store in total
 COLLABORATORS
Adrianna Papell, J.L. Johnson's
Bridal, Maggie Sottero, Mon Cheri,
Mori Lee, Jim’s Formal, Nedrebos,
Ursula of Switzerland, Alexia Designs
and Bill Levkoff, Alfred Angelo
CONTEXT
The couple has to take important
decisions regarding the delivery
failures, “miscommunications,” and
strictly enforced minimum quantity
purchasing requirements with their
current suppliers that had taken a toll
on them both financially and
physically.
 SUPPLIERS IN CONSIDERATION
7. (a)

No inventory required,
Long association. Medium
PROS MOQ, Quality of Material, Exclusive territory (no Easy business
competition within 90 miles Jim Formal: Mutually
Pricing. No extra charge for
radius), highly sought after beneficial relationship,
plus size, genenerous seam
brands, Wide variety, amazing pre arranged
allowance, style, customer
services early shipping
service

Huge losses due to

CONS Higher price, High Minimum
miscommunication from sales Limited presence of Nedrebos,
Order quantity
team No other cons as such
 7. (a) What suppliers should they retain? Why?

Jim’s Formal Maggie Sottero and Alfred Angelo

Ursula and
should be Mon Cheri gave should be retained if
Adrianna Papell
retained, as it them the exclusive they resolve the
provided them
provided the right to sell the issues faced by
special assortment
newest styles of product within the Royal Beginnings
for mothers,
rental tuxedoes, 90 miles radius and
therefore they
on time delivery were highly sought
should be retained
and competitive after by the brides
pricing
7.(b) Should they select any of the new suppliers – Clarisse,
DaVinci or Milano Formals? Why?
She can choose all three suppliers as:

01 02 03
All of them offered All three offered Also, all three had fewer
premium dresses at a price Bridesmaid and Prom retailers in US as compared
which was affordable for dresses and Da Vinci also to most of existing
the target group offered bridal gowns along suppliers which increased
with bridesmaid and prom the bargaining power of
dresses Royal Beginnings
8. What should Anna and Jack’s next steps be with respect
to improving supply chain relationships?

Step 1 Step 2 Step 3

Ensure that proper They can ask the suppliers to
Should get into supply
replacement and delivery notify them in advance before
relationship by avoiding
policies are mentioned in stopping supply of particular
the minimum order
the agreement with the product so that they can give
quantity clause
suppliers discounts and try to clear the
stock.