DSW Consumer Segmentation
- 1. Designer Shoe Warehouse (DSW) Consumer Segmentation Emily Barr Devinne Kelly Kate Blickenstaff Rachel Roman Kristen Falencki
- 2. OVERVIEW July 1991- Officially incorporated July 2005- IPO under ticker symbol „DSW‟ Branded footwear and accessories retailer 2
- 3. OVERVIEW Focus (mission statement): • Distinctive shopping experience • Satisfies rational and emotional needs • Vast, exciting assortment • In-season styles • Convenience and value • Recent advertising campaign: • “It‟s where you get those shoes.” • DSW Fall 2011 Commercial 3
- 4. PRIMARY CONSUMERS General Consumer Characteristics • High quality products • Value-seeking • Love to shop • Fashion conscious • DSW rewards • Fiscal year 2010 • 90% of sales came from rewards members 4
- 5. CONSUMER PROFILE TRANSFORMATION Remained Loyal to Original Target Market Economic New product Factors (Recent categories downturn) 5
- 6. CONSUMER PROFILE TRANSFORMATION Two factors impacting consumer profile: (1) Economic downturn “Trade-in customers” Increase in awareness among the significantly affluent Inventory increases to luxury brands (2) Introduction of new product categories 6
- 7. CONSUMER PROFILE TRANSFORMATION Two factors impacting consumer profile: (1) Economic downturn (2) Introduction of new product categories • Kids‟ shoes • Private label merchandise 7
- 8. CONSUMER SEGMENTATION STRATEGY Consumer Insights: Segmentation Strategy 8
- 9. CONSUMER SEGMENTATION STRATEGY (Continued) Social Consumer Characteristics • Brand Strategy: Mixing luxury with bargain pricing • High-end labels • Fashion and status are important • Celebrity influence Cultural Consumer Characteristics • Brand Strategy: Mixing luxury with bargain pricing • Economic downturn • Increases in discount shopping • Balancing fashion and budgeting 9
- 10. CONSUMER SEGMENTATION STRATEGY (Continued) Personal Consumer Characteristics • Brand Strategy: Mixing luxury with bargain pricing • Internal rewards • Stretching a dollar and bargain-hunting • Setting a family standard 10
- 11. COMPARING CONSUMER PROFILES: DSW VS. COMPETITORS Similarities Differences Shopping approach Vast quantity and assortment Provide value and fashionable styles Organized and clean Zappos:same niche/focus Test Stage 11
- 12. COMPARING CONSUMER PROFILES: DSW VS. COMPETITORS 12
- 13. OVERLOOKED CONSUMER SEGMENTS Growth Opportunities 6% “The product assortment of each 13% Women's store is dependent upon the Men's demographics of the retail store 15% location” (DSW 10K, 2010). 66% Athletics Accessories Potentially missing consumer segments Main consumer segment focus Implementation of new product categories 13
- 14. Thank You 14
Editor's Notes
- #8: Also focusing on reaching customers via: Cross channel Mobile International