ThirdLove Sport Support
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Introduction The contents of this book contain my senior capstone initiative to bring a new product category to the intimates brand, ThirdLove. I am proposing the new product category to be sports bras based upon competitor research, marketplace and consumer trends, and whitespace within the brand’s assortment-all of which specifics will be provided in the following pages. The book will contain research and insights to support all proposals for this initiative as well as deliverables being a line list, assortment plan, and marketing plan.
Capstone Objective The purpose of this capstone is to demonstrate my merchandising and marketing skills as I intend to go down the merchandising path for my fashion marketing career. The capstone initiative itself has two aims being to grow the business and steal market share from competitors.
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@ThirdLove
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@ThirdLove
Table of Contents Brand Research
6-7
Competitive Analysis
8-9
SWOT Analysis
11
Market Research
12-13
Target Customer
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Customer Profile
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Design Inspiration
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Line List
20-21
Pricing Strategy
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Assortment Plan
24-25
Current Marketing Strategy
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How Sports Bras are Currently Promoted
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ThirdLove Sport Support Marketing Plan by Channel
28-29
Social Media Strategy: Instagram
30-31
Social Paid Ads
32-33
Conclusion
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Works Cited
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Brand Research Mission: To deliver a perfect fitting bra to women everywhere
@ThirdLove
ThirdLove was founded by Heidi Zak in 2013 after Heidi realized the gap in the marketplace for high quality bras at affordable prices that fit women of any size4. and shape. This is why ThirdLove offers half cup sizes and a wide size range of 78 sizes to choose from based on measurements from real women. The brand is unique for recognizing that bras need to be designed based on the specific breast shape and size. This is why the brand was the first to come out with a 60 second fit finder test that customers can take online to find their correct size based on a series of personal questions about their body4. The brand later followed this with the launch of their try-before-you-buy program. The bras that are sent back from this program are then donated to women in need with the help of a non-profit called I Support The Girls. In 2018 alone, the brand donated around $4 billion dollars worth of bras and is considered the largest donator of bras in the country.4 (Estreich, 2018)
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“We’re one of the fastest growing consumer brands in the country, and known as ‘the brand to catch Victoria’s Secret” - Heidi Zak, ThirdLove CEO4 To date the brand has raised 30 million in funding from angel investors and reportedly did 80 million in sales for 20178. A big factor in the brand’s success is it’s championing of diversity, body positivity, and inclusivity, which can be seen in all marketing touchpoints for the brand and even in product. The brand released a collection of bras that redefines the traditional color “nude” with five different shades6. They also don’t call their larger sizes “extended sizes” because they believe plus sizes are just another size. The brand’s current product offering includes bras, lounge bras, nursing bras, underwear, bodysuits, and sleep and lounge wear. It’s average price for a bra is $68, but the brand does offer a loyalty rewards program in which customers can save up to $40 when they buy two or more bras- another strategy the brand employs to drive customer loyalty and entice new customers as well. (Estreich, 2018) (Kavilanz, 2019) 8 (Robehmed, 2018) 4
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@ThirdLove
@ThirdLove
Competitors Third Love occupies the intimate apparel space in which the most well-known brand and market leader is Victoria’s Secret.This is the brand ThirdLove is going after in-terms of stealing market share, however, the brand faces competition from Lively, AdoreMe, Aerie, and Soma who all share the same pursuit. Of all the competitors, the most similar to ThirdLove are Lively and AdoreMe. Lively shares the same core belief of empowering women and offers a wide offering of product that blurs the lines between active, lingerie, and swim ,while AdoreMe is another inclusive intimates brand offering sizes for petites and plus size women. I’ve included Aerie as a competitor because although the brand has a younger target customer, it has become centered around diversity, inclusivity, and
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body positivity. Lastly, Soma is another competitor to be included because ThirdLove has older women as their customers, which is Soma’s target demographic. The Soma brand also shares the same philanthropy in that they also donate bras to women in need. The common thread between all of these competitors is that they offer a wider product assortment than ThirdLove with all of them having sports bras as a product category. That being said, while these brands are all direct competitors, ThirdLove must also consider its indirect competitors which include any activewear brand offering “active intimate apparel”.
Competitive Advantage of ThirdLove ThirdLove is uniquely positioned among their competitors in that they are the only brand to rely on customer data. The bras were created based on measurements from real women with the brand having accumulated over 500 million data points from its customer base4. The brand can use this data to further innovate its product offering and fit as it continues to acquire new customers and grow its sales. The brand already beats out the competition in terms of sizes offered with 38 more sizes than the average offering of its competition6. Plus, they are the only brand to offer half cup sizes furthering their competitive advantage. While other brands have adopted their own fit finder quiz, no competitor offers both the quiz, try before you buy program, and rewards system. This has helped the brand acquire new customers and keep current customers loyal and will remain an asset to the brand for the future. ThirdLove is the total package with no other brand offering the best fit based on breast size and shape as well as being philanthropic, body positive, inclusive, and diverse.
(Estreich, 2018) (Kavilanz, 2019)
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@ThirdLove
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@ThirdLove
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S W O T
-wide size offering including half cup sizes -massive amount of data collected (500 million data points) -inclusive and philanthropic brand
-inability to fulfill demand (1.3 million on waitlist for extended sizes launch which sold out 3 times) -no physical store experience
-expand product assortment with activewear and swim -expand international sales efforts -look into adopting technology into products
-tariff war with China puts production in uncertain state -market saturation as more e-commerce intimate apparel players enter the space
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Consumer Insights There are over 150 million women in the United States alone with the average woman wearing a bra at the age of 126. Of the US population, about 80% of women don’t fit in traditional bra sizing. This is because little innovation has been seen in bra sizing for the past 60 years2. From ThirdLove’s fit finder quiz, 70% of responders have identified as having a size issue before buying ThirdLove bras. The average woman owns 10 bras, but only wears 3 regularly. During her lifespan, her bra size changes six times (on average)4. The recommended lifespan for bras is to replace them every six months for optimal comfort, fit and wear. In terms of bra styles, millennials and non millennials both identify sports bras as a top “go to” style1. According to a report from NPD, the things most considered before purchasing a bra is the availability of size, long term comfort, durability, and support. The simplicity and comfort offered from a sports bra is what makes it a natural fit in today’s fashion world. However, it’s important to note that 1 in 5 women avoid exercise due to a sports bra that doesn’t fit10.
“Sports bras, and similar seamless styles need to be part of a brand’s merchandising strategy,”-Marshall Cohen, chief industry analyst at The NPD Group12 Bahler, 2017) Cartwright, 2019) 4( Estreich, 2018) 10 (Segran, 2018) 12 (“Sports Bras | Staple of Millennials’ Bra Wardrobe”, 2016) 1(
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Market Insights
Statista
ThirdLove occupies a global industry worth $110 billion14 and a market in the US worth $7 billion7. The sports intimate wear market (sports bras, leggings, and socks) is set to generate 41 billion dollars by 2019, while the global sports bra market is forecasted to reach 21.7 billion by 202411. According to The NPD Group, sales of wire free bras grew by 10% in 2018 proving that the shift towards comfort with bralettes and sports bras is continuing to grow.9 These figures can only be supported by the growing importance of health and wellness and the growing popularity of the athleisure trend. 9
(Safdar, 2019) (“Shipments Value Global Sports Bra Market Worldwide�,2018) 14 (Vidi, 2016) 7 (Mahoney, 2019)
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@ThirdLove
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Target Market Demographics Gender: Female Age Range: Late 20s to early 60s Location: Major cities/metropolitan areas Income Level: 65k-120k Education: College Educated Marital Status: Single or in a relationship
Psychographics Attitudes: openminded, compassionate, hard-working, loyal, driven, ambitious, independent Values: comfort and style, family and friends, quality over quantity Interests: women’s empowerment, wellness, self care, reads blogs and sites like Refinery29, fitness VALS Segments: Innovators & Achievers
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Customer Profile Based upon ThirdLove’s current target market, the ThirdLove Sport Support initiative targets a customer that falls within a similar demographic and psychographic group. This target customer can be seen through Cassie Brooks, a 32 year old sales director making $85k a year. Cassie currently lives in Seattle, which she loves for its blend of city and nature. She is a strong single woman, who chooses to spend her free time indulging at hip vegan restaurants, attending classes at her local yoga studio, and reading the latest posts on Refinery29. She has a strong friend group in which she is known as the cheerleader of positivity for others. She already owns several ThirdLove bras and is frustrated that she hasn’t found a sports bra that gives her the same perfect fit, support, and style that these bras do. ThirdLove’s Sport Support is perfect for a woman like Cassie Brooks because her active lifestyle and beliefs are a match made in heaven for this new product line.
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@mynameisjessamyn
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Lululemon
ThirdLove
ThirdLove
Free People
WGSN
Free People
ThirdLove
Lululemon
C @ThirdLove
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WGSN
Lululemon
Design Inspiration To design ThirdLove’s first sports bra offering, I looked to other leaders in the activewear market as well as the brand’s competitors. After carefully analyzing their assortments, I noticed that mesh and laser cut details on the backs of sports bras are popular. I also saw this in my WGSN trend forecasting reports. Then, in terms of silhouette, I found that the racerback style was the most offered style, but in varying twists. I combined this analysis with ThirdLove’s own product to ensure their aesthetic would remain consistent. Therefore, the color palette chosen comes from not only WGSN trend forecasting, but also colors already offered by ThirdLove. In addition, I designed the bra styles based on ThirdLove’s current best sellers.You’ll notice the Cross Back sports bra looks similar to a current ThirdLove best selling bra, the “24/7 Cotton T-shirt bra”. Overall, I wanted the new product category to be on trend, while still upholding that polished, simple, yet feminine aesthetic that ThirdLove is known for. Women should be offered a sports bra that fits just as well and looks just as good as their regular bras so that they can feel confident in the gym!
Brand Identity Simple Polished
Sophisticated
Empowering
Feminine
Comfortable 19
Line List Style Name: Cross Back Sports Bra Style No: 4130212060059
Style No: 4130212060060
Price: $52
Back
Front
Price: $52
Style Name: Sleek Sports Bra
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Nylon/Spandex blend
Nylon/Spandex blend
Colors
Colors
Style Name: Mesh Racerback Sports Bra
Style Name: Laser Cut Racerback Sports Bra
Style No: 4130212060061
Style No: 4130212060062
Price: $58
Price: $58
Nylon/Spandex blend Colors
Nylon/Spandex blend Colors
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Pricing Strategy ThirdLove’s pricing of their bras hits a higher price point range than most of its competitors with the exception of Victoria’s Secret, the leader in the intimates market. However, ThirdLove offers higher quality bras for relatively affordable price points for that quality and superior fit. Price (high)
Low Quality
High Quality
Price (low)
The average bra for ThirdLove is $68 with their more detailed/lace bras hitting in the 70s or low 80s. This gives them a price range of $68-$84. The lounge category features a lounge bra offered at $48. Based on this information, I’ve decided to price the sports bra slightly above the lounge bra due to the details and support they provide that the lounge bra doesn’t include in its design. The sports bra will be less than any of the regular bras because the structure is less complex and utilizes a different material. Analyzing other brands, their sports bras were typically around their basic bra price points or price less than their regular bras on average. Therefore, I’ve decided $52 and $58 for sports bras at ThirdLove makes sense. The $52 styles are simpler in design, which is why they are priced slightly below the other two styles that involve more labor due to the detailing.
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Assortment Plan % of Assortment
35%
30%
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Style Name Cross Back Sports Bra
Laser Cut Racerback Sports Bra
Style # 4130212060060
4130212060062
20%
Sleek Sports Bra
4130212060060
15%
Mesh Racerback Sports Bra
4130212060061
Price
Color
Size Offering
Seasonal
Core
$52
Band Size: 30-50 Cup size: AA-H
Black White Light grey Navy
Core
$58
Band Size: 30-50 Cup size: AA-H
Black White Light grey Navy
Core
$52
$58
Band Size: 30-50 Cup size: AA-H
Band Size: 30-50 Cup size: AA-H
20% 20% 15% 12%
20% 20% 15% 12%
Plaster Woodland Green Dark Garnet Cameo
Seasonal Plaster Woodland Green Dark Garnet Cameo
Seasonal
10% 7% 6% 10%
10% 7% 6% 10%
Black White Light grey Navy
20% 20% 15% 12%
Plaster Woodland Green Dark Garnet Cameo
10% 7% 6% 10%
Core Black White Light grey Navy
20% 20% 15% 12%
Seasonal Plaster Woodland Green Dark Garnet Cameo
10% 7% 6% 10%
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ThirdLove: Current Marketing Strategy ThirdLove markets their products across many platforms including their blog, podcasts, email, social media, and TV. Up until 2016. 90% of their marketing budget was allocated to digital and social media marketing3. The brand then realized it was important to diversify this strategy in order to acquire new customers, which is what led them to produce a national TV ad.
For social media, they have found success by targeting customers with the Instagram looka-like tool that allows targeting by placing ads on people’s feeds who are similar to those who already follow you. The ads specifically are usually customer quotes centered around the fit of the product by employing education or storytelling as the ad tactic. They also feature models of various skin colors and sizes to keep the authenticity of their brand. For Facebook, they also employ the education and storytelling tactic but through video ads. This resulted in a 27% increase in click through rate and 25% decrease in cost per user acquisition. Then for targeting on Facebook, the brand revealed that instead of using keywords such as “lingerie” to find customers, they search by interests of their customers such as “wine”, “cooking”, or “travel”.
3 (Dua, 2017) (“ThirdLove: Facebook Ads Case Study”,2018)
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How Sports Bras are Currently Promoted Instagram is flooded with ads for bras if you are a female within the 18-45 year demographic5. Most ads feature fitness stars, half naked women, or thin women to market the product in an aspirational way. However, in the past year, we’ve seen a shift towards unretouched skin, inclusivity, and comfortable looking product to make the ads more relatable to women. In regards to product shots within a brand’s Instagram page, sports bras are typically showed off through yoga poses or close up back shots to show them off. They usually have an educational caption to inform about the product. (George-Parkin, 2018)
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ThirdLove Sport Support Marketing Plan by Channel Website The collection will be featured on the homepage of ThirdLove’s site with a video of the product and button to shop the collection. A new product category will be created with “sports bras” and will be seen within the bra drop down merched between strapless and nursing. The product page for each style will keep the current format and consistency of diversity & inclusivity with the models shown wearing the product. However, I’d like to build upon this and include short videos showcasing the model in the product moving in the sports bra to promote the fit and support of each style. Lastly, the fit finder tool within the website will add new questions relating to sports bra fit and exercise activities to help the customer find the sports bra style best suited for her.
Blog ThirdLove’s blog, Unhooked, features stories weekly ranging from customer stories, product education, bra tips, and interviews with the founder-Heidi Zak. This variety will continue, but the stories will tie back into the new collection and further introduce the sports bra to their current customers. 2-5 posts of different content relating back to the collection would be smart with ideas consisting of the following: Post 1: Introducing ThirdLove Sport Support Post 2: Founder Friday (Heidi Zak talks about collection and how she uses it in her workout regime Post 3: Behind the Seams with Ra’el: ThirdLove Sport Support Post 4: Sports Bras 101 Post 5: Heres Why You Need One of Our Sports bras According to Our Employees
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Podcast ThirdLove already does heavy promoting with ad reads on several podcast shows such as Chicks in the Office, LadyGang, TrueCrime Obsessed, Call Your Girlfriend, A Little Happier, From the Heart Conversations with Yoga Girl, etc. It would be smart to continue sponsorships with existing podcast partners ,but in the ad reads highlight the new collection. The brand will also look to diversify its partnerships with more health and fitness oriented podcasts to reach this type of customer the brand is trying to acquire from other activewear brands.
Email The brand will email current customers notifying them to get on a waitlist for the new collection. This will also complement an email that is a sneak peek/coming soon one to generate excitement before the launch. An email on the launch day will be sent out notifying customers of the new collection, along with an introduction to the collection that is product focused. The week of the launch will also include educational ones around the sports bra styles and sports bra facts.
Print The collection will be announced with a full page spread in the New York Times Sunday newspaper for the week the collection launches. This continues with their strategy to diversify their advertising in order to reach new customers. They have had success with the full page ads in the past and can further build upon this by continuing this strategy.
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Social Media Strategy: Instagram Organic Content The brand will continue its current content strategy for its page with a post giving a sneak peek to the collection and inspiration behind the design of it, studio shots of diverse and inclusive models wearing the product, flat lay shots, and quotes that relate to empowering and self care. In addition, the brand will add short videos of models in the product doing some form of movement/exercise.
Influencers ThirdLove already utilizes numerous social media influencers in which they call “ThirdLove partners” as part of their social media strategy. Therefore, I’ll be expanding on their influencer list by adding several body positive fitness influencers (Dana Falsetti, Jessamyn Stanley, Britney (@fittybritttty), etc.) to further introduce the new collection and target a body positive fitness conscious customer.
‹— @mynameisjessamyn 411k Followers 1,005 posts
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‹— @fittybritttty 162k Followers 2,154 posts
Even in the most high intensity workouts, our sports bras provide the perfect fit, comfort, and support so you can crush your workout.
92 sizes. The perfect fit for any workout.
Introducing Sport Support
92 sizes
The perfect fit for any workout.
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Paid Social Ads ThirdLove will maintain its current strategy of using the look-a-like tool when targeting customers, but should also add to its targeting strategy by targeting followers of activewear brands. The ads themselves will feature copy of customer quotes that highlight the fit, support, and comfort of the sports bras. which is a strategy the brand has found to be successful and currently utilizes. The imagery will be a mix of faceless model shots (which CEO Heidi Zak revealed to be the top performing ad type) and short videos featuring different models doing different workout activities. The models shown will continue to showcase diversity, inclusivity, to further strengthen the brand’s relatability and commitment to those values.
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“Finally, the support I need to confidently and comfortably get me through my toughest workouts. Between the fabric and ThirdLove’s always spot-on fit, this sports bra is perfection.” More on our new Sport Support pieces in this SheFinds.com article.
The Facebook strategy will continue with video ads, which proved to be most successful for ThirdLove’s Facebook ad strategy. The ads themselves will be similar to Instagram with customer quotes as copy to educate and provide an element of storytelling. The videos themselves will showcase the support and fit of the bra through different workout activities, to further highlight those qualities. It will also serve as a unique positioning point for the brand since most sports bras aren’t promoted this way.
“This is literally the most supportive sports bra I’ve ever owned. I can get through any workout confidently and comfortably without worrying about the status of my girls.”Brittney M. Try one of our sports bras for 30 days free — >
It really is the most supportive, well fitting sports bra I’ve ever worn. I’ve tested it in all my workouts and it truly is so well-made and comfortable. I love that the needs of big chested women like me are finally being addressed in the sports bra market.”- Erica
Introducing ThirdLove Sport Support
A Sports Bra So Supportive, You’ll Never Worry About Your Girls Again
Try a Sports Bra with Actual Support
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Conclusion In summary, my capstone initiative will be the creation of a new product category for ThirdLove being sports bras. This collection keeps to the tried and true aesthetic of ThirdLove with style, color, fit, and size. The collection itself will be the most inclusive sports bra offering within the market and sure to revolutionize the industry. It will lead to growth in revenue and steal market share from competitors as Victoria Secret and others refuse to acknowledge a huge customer base. The multi-channel marketing strategy with a heavy social media focus will further cement this revolutionary collection and garner more attention to the brand. The promotional strategy will capitalize on existing tactics, but add more video elements to feature the support and functionality of the products in this new collection. The major effort is to introduce this new product category to it’s existing customers, but also an effort to attract and acquire a new customer who sets fitness and health as a top priority and passion of her lifestyle. Overall, this initiative will help the brand to further continue its mission, which is to deliver a perfect fitting bra to women everywhere. Now women can find comfort, fit, and empowerment from not just a regular bra, but a bra that is as equally important-a sports bra!
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Works Cited 1) Bahler, Kristen. “Sports Bras Are the New T-Shirt - And It's Killing the Lingerie Market.” MONEY.com, 27 Mar. 2017, money.com/money/4711601/sports-bras-as-fashion-popu larity/. 2) Cartwright, Megan. “Zero to Production in Five Months @ ThirdLove.” InfoQ, InfoQ, 15 Jan. 2019, www.infoq.com/presentations/thirdlove-ml. 3) Dua, Tanya. “Up-and-Coming Lingerie Brand ThirdLove Is Launching Its First Ever TV Campaign - and It's a Direct Attack on Victoria's Secret.” Business Insider, 11 Sept. 2017, www.businessinsider.com/lingerie-upstart-thirdlove-is-coming-out-with-its-first-ever-tv- ads-2017-9. 4) Estreich, Oliver. “Heidi Zak: Co-Founder & Co-CEO, ThirdLove.” The Native Society: Per sonalizing Thought Leadership, The Native Society: Highlight Your Story, 26 July 2018, www.thenativesociety.com/tnspeak/heidi-zak-co-founder-co-ceo-thirdlove.html. 5) George-Parkin, Hilary. “Why Are There So Many Bra Ads on Instagram, Anyway?” Racked,Google, 30 Jan. 2018, www.racked.com/2018/1/30/16938678/bra-ads-on-in stagram-women. 6) Kavilanz, Parija. “Bra Sizing Is Wildly Confusing. Her Company Seeks to Change That.” CNN Business, Cable News Network, 17 Jan. 2019, www.cnn.com/2019/01/16/success/ thirdlove-fresh-money/index.html. 7) Mahoney, Sarah. “How ThirdLove Is Reshaping Customer Experience.” Marketing Daily, Media Post, 14 Feb. 2019, www.mediapost.com/publications/article/331995/ how-third-love-is-reshaping-customer-experience.html.
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8) Robehmed, Natalie. “Next Billion-Dollar Startup: Entrepreneurs Create $750M Bra Business By Exposing Victoria's Weakness.” Forbes, Forbes Magazine, 18 Oct. 2018, www.forbes.com/sites/natalierobehmed/2018/10/18/next-billion-dollar-startup-en trepreneurs-create-750m-bra-business-by-exposing-victorias-weakness/#2f 899c454d03. 9) Safdar, Khadeeja. “Target Takes on Victoria's Secret.” The Wall Street Journal, Dow Jones & Company, 24 Feb. 2019, www.wsj.com/articles/target-takes-on-victorias-se cret-11551016920. 10)Segran, Elizabeth. “Reebok Debuts a Shape-Shifting, NASA-Inspired Sports Bra.” Fast Company, 3 Aug. 2018, www.fastcompany.com/90213486/reebok-debuts-a-shape- shifting nasa-inspired-sports-bra. 11)“Shipments Value Global Sports Bra Market Worldwide.” Statista, 0-www.statista.com. library.scad.edu/statistics/956248/shipments-value-global-sports-bra-market/. 12)“Sports Bras | Staple of Millennials' Bra Wardrobe.” NPD Group, 6 June 2016, www. npd.com/wps/portal/npd/us/news/press-releases/2016/sports-bras-are-a- staple-of-millennials-bra-wardrobe-reports-npd/. 13)“ThirdLove: Facebook Ads Case Study.” Facebook Business , www.facebook.com/busi ness/success/thirdlove. 14) Vidi, Madelena. “Get the Scoop: How ThirdLove Is Dominating Mobile.” Mobify, Mobi fy, 6 Sept. 2016, www.mobify.com/insights/thirdlove-dominating-mobile/.
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Annika DuPree Senior Capstone Winter 2019 38