High Street Women’s Footwear
Shoes Report
Fashion Marketing & Consumer Insight EFMM1004 Hsin Yee Wong 0804680 Year 1 Fashion Management & Marketing
Contents
Page No.
Executive Summary Research Methodology
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Introduction The Market Target Consumer Key Brands Synthesis PEST Gap in the Market
4 4 4 5 5 6
The Company in its Current State Faith Mission Statement The Marketing Mix Product Price Placement Promotion Target Consumer Competitors Corporate identity
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Conclusion
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Recommendations Proposal The New Consumer Marketing strategy Promotional Strategy SWOT
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Executive Summary There is more competition in the women’s High Street footwear market than ever. The market is currently growing at a steady pace with minimal increase in sales over the past years. It has been realised that products are becoming predictable each season and as a result, there is a demand for innovative and creative footwear that will get consumers to impulse buy. Faith will be developing their product range with the launch of a new footwear concept to target current consumers. This product is expected to be a sell out, as there is no product quite like this already available on the footwear market. The product is fashionable and avant-garde and will contribute to help increase Faith’s market share, hoping the idea will bring some success to the business.
Research Methodology Through this market report, I have collected both quantitative and qualitative research. The sources of information used in the compilation of this report include: Primary • Questionnaires - To establish consumer behaviour • Focus Group - To identify the strengths and weaknesses of the proposal • Shop visits and observations - To define the company’s corporate identity and competitors. Secondary • Trade press (Drapers) - To establish current market status • Internet (Mintel’s financial reports) - Market details • Magazines - Previous promotions • Company/competitor website - Comparative shop
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Introduction The footwear market has been struggling recently, with consumer spending slowing. Fashion stores and other non-specialists have been driving sales1 with 29.6% of market share2 (Appendix 1), up from previous years, and consequently are encroaching on the share previously held by specialist retailers.
supplies footwear to all these typologies, with most consumers falling under the ‘Choosy’ and ‘Same shoes’ category. This suggests that availability of options is key to many consumers.
Key Footwear Brands Although fashion stores and other non-specialists have been driving sales, there are still key players within the footwear specialist segment. It has been reported that Clarks are a major footwear specialist who are performing successfully maintaining high market share each year.4 Today, consumers are being presented with a bewildering array of choice. Low value footwear has kept the market going, but consequently resulted in difficulty for sales figures to increase. This is a market in need of a boost after no signs of significant increase in sales over the past years. Consumers are not concerned as to where they purchase their footwear which has lead to footwear non-specialists taking a big share of the footwear market.
Top 5 Women High Street Footwear Retailers5
Target Market
1. Clarks 2. Barratts (Stylo)
High street footwear is lead by women.3 With such a range of styles and varied price points, the market is aimed at all socio-economic classes, making it very competitive.
3. Schuh 4. New Look 5. Faith
There are four different consumer typologies
Appendix 2
within the market. The high street footwear market MINTEL, Footwear Retailing - UK, Market Size and Forecast (2008) Drapers Online, Faith left standing at pace of change (2008) 3 MINTEL, Footwear Retailing - UK, Women Lead (2007) 4 Drapers Online, Women’s footwear indicator (2009) 1 2
5
MINTEL, Footwear Retailing - UK, Retail Competitor Analysis (2008)
4
Synthesis
encouraging young consumers to spend rather than save.6
A market struggling to grow due to tighter profit margins leads to the need for products that will influence impulse purchasing. Stores with a broad product range; particularly clothing retailers benefit as sales can be gained through other product areas. There is big gap in the market for avant-garde and fashion driven footwear. The market requires more creative and innovative designs. This has shown to be a success with the likes of UGGs and Crocs. Retailers need to differentiate themselves to offer a competitive edge, gaining the ability to create a stronger brand identity.
Social • Footwear fanatics are keen purchasers of new styles. • Consumers are purchasing footwear in consideration with occasions and current outfits in the wardrobe. • 6-inch heel trend states the need for more comfortable footwear as consumers struggle to
Since consumers are buying footwear as investment pieces, impulse buying has becoming important to businesses in order to increase sales.
walk. (Appendix 3) • Long working hours and travelling distances urges the requirement for comfort and compact footwear.
PEST Analysis Political • Environmental issues • Ethical issues are important as businesses need to prevent child labour.
Technological • Multi channel retailing - Home shopping • Secure online transactions • Limited green and ethical shoe ideas are emerging onto the market. • Lack of creativity and innovation
Economical • High unemployment • Value of footwear has become an important factor particularly during the recession. • ‘Modern students’ acceptance of debt are 6
T.Jackson, S.David, Fashion Marketing (2009)
5
Filling the Gap An avant-garde and stylish product more suited to the young and outgoing, will need to fit into a brand that already targets this consumer on the High Street.
The Company in its Current State Faith’s Company Strategy Faith are footwear specialists offering fashion forward and creative male and female shoes, bags and accessories. Faith’s values are ensuring style and affordability, with products for everyone at varied price points. Faith lost over £5 million during the 2006/07 financial year7 (Appendix 4) and as a result they are moving away from the overcrowded market to a more upmarket level. However, Faith still seem to be popular amongst consumers aged 18-25.
Mission Statement To provide a range of footwear to those who are passionate about shoes offering function, individuality and fashion forward goods at an affordable price.
7 MINTEL, Footwear Retailer, Company Overview (2008)
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Product
Product Range and Services • • • •
Footwear in sizes 3-9 Wearable and fashionable designs Providing consumers with plenty of choice. Sub ranges include bags, accessories, and shoe care. • Free re-healing on request • Direct service - Products can be ordered from the warehouse if not found in store. • Home shopping
Images courtesy of Faith.co.uk 7
Price
• Varied price points to suit a wider range of consumers. • ‘Price for many people is a major indicator of quality.’ Easy.M, Fashion Marketing (2009) Here the price point reflects a mid to upmarket footwear specialist. • £3.95 delivery on orders online
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Product Placement
Faith’s Concession in Topshop, London
Store Locations • 86 stores in major towns and cities. • 154 concessions with Debenhams and Topshop. (Mintel, 2008) Online Distribution • Faith.co.uk • Asos.com This method of distribution creates a better brand awareness and also makes it convenient for those consumers who don’t have a Faith store nearby. Faith’s Online Website
Faith Store, London, Oxford Street
Faith’s Range on ASOS.com
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Interacting with the Consumer Magazines - Faith are often seen in fashion magazines; particularly in LOOK and Grazia whether it is for a promotion or being mentioned for its design style.
They distribute a full range on their online website to provide convenience to those who do not have a store nearby.
A limited range is sold on ASOS to attract a wider proportion of similar consumers.
Faith are seen in major towns, cities as standalone stores or as concessions in Topshop and Debenhams. Bold advertisements draw immediate attention to passers by.
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Promotion Strategy
In-store offers
Online sales
Discount Vouchers in Magazines - Grazia, LOOK
Collaborations • Breast Cancer • Britains Next Top Model • Penguin publishers
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Faith’s Target Market Market Segmentation • Socio-economic class ABC1C2 • Young female footwear fanatic • Single or with a partner • Aged 18-35 • Lives in city or town • Smart/casual dress • High spender with sufficient disposable income which may be borrowed • Brand loyal, fashion conscious • Enjoys socialising • Regular traveller
General Browsers‘This is my leisure time, and if you inspire an engage me, I might buy today.’ - Mantra Maslow Hierarchy of Needs When purchasing footwear, consumers are particularly hoping to satisfy their physiological and safety needs. They require the basics of fashion, comfort and style. The footwear that is wearable and safely manufactured providing comfort enabling the consumer to get home in a healthier way especially during the 6-inch heel trend period.
Customer Profile
The Footwear Fanatic*
She is 25 years old and full of energy. She lives life to the full, living in the busy capital of London, works hard
as a fashion merchandiser, plays hard and loves having a good time. She is confident and dynamic with a fast
lane lifestyle. Feminine yet one of the boys when it suits her she is acutely aware of what is happening on the
fashion scene with constant reading
of VOGUE and Elle magazines.
Since Faith have achieved a couple of rewards over the years, she has gained satisfaction with their product range, owning several pairs of their shoes.
* Customer Profile constructed with Faith’s own customer profile and own questionnaire results from those who shop at Faith
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Competition Price/Quality matrix
Classic
High Price
Fashion Forward
Low Price
Faith’s Market Positioning • Reasonably fashion forward footwear • Affordable price points. • Current main competitors include those who target similar consumers; Barratts, New Look, Schuh, Office, Primark • Those who offer an innovative product or a similar product to Faith’s new avant-garde range will be future competitors.
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Corporate Identity Logo
Conclusion The high street footwear market has expanded, with footwear offered at fashion retailers as well as the footwear specialist stores. With the market being crowded and products becoming predictable, it’s time for an innovative, avant-garde and fashion driven shoe.
Store With females inspired by trends, such as the recent 6-inch heel trend which is highly uncomfortable and regular foot pains through work or travel, a new shoe is to be sold on the high street market to prevent further foot problems. Since females are most willing to invest in more than one pair of footwear , this would be the ideal segment to target. Following my primary research I found that those aged 18-25 are most interested in a compact comfortable shoe, whereas those older didn’t believe this product was ideal for them. 82% of respondents would purchase this product. 8
Packaging/Branding
Footwear specialist, Faith are the ideal retailer to stock the innovative idea. Their product range is fashionable yet affordable. More importantly the new product is suited to Faith’s current consumers. It’s an exciting shoe that hopes to create huge awareness towards healthy feet. 8
MINTEL, Footwear Retailing - UK, Women Lead (2007)
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Recommendations Since Faith have failed to increase sales significantly, a product development would be well suited to the business, in order to help growth. Launching a new product range incorporating a new function to footwear will increase brand awareness.
• Affordable, compact, stylish foldable shoes that easily fits into handbags • Comfortable inner sole to relieve aching feet • Ideal for various occasions
New Product
Customer Profile
The Part y Chic*
She’s 19 and lives life to
the full in the busy city of
Birmingham with house mates.
She studies and works hard and a major party animal. Not a huge
amount of disposable income, but that fails to stop her shopping.
She’s a girly girl who’s always
interested in fashion, particularly celeb gossip, chic flic films, all
of which influences her purchasing * Customer Profile constructed using questionnaire results of those who would buy the product
behaviour.
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New Consumer Market Segmentation • Socio-economic class BC1C2D • Young female footwear fanatic/choosy • 18-25 • Undergraduate/Postgraduate • Average paid job • Lives alone or with partner in city or town • Loves socialising with friends - clubbing, going out for meals and shopping (Appendix 5) Focused Fulfillers ‘I know what I want, and I want it now.’ - Mantra The consumer will have seen the product promoted and immediately knows that the shoe is a must have for her.
Marketing Strategy Product Location • Faith in major towns/cities • Faith’s concession at Topshop - A favourite amongst consumers aged 18-25. Would help increase sales through more exposure, possibly interesting more buyers. (Appendix 6) Visual Merchandising • Window display to draw in new consumers. • Displaying the merchandise in an effective manner. Slogan that is catchy and bold will grab attention. • Product concept clearly displayed adding additional interest.
Price
• Product needs to be affordable to students due to limited disposable income • They will be willing to purchase products ideal for their outings. • Most people willing to spend £35-£50 maximum on footwear. • The new product will cost £24 - cheaper than my main competitor. Students will benefit from further 15% off.
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Promotional Strategy Online Marketing • A photo shoot will be carried out to promote the shoe, these would be used in store and online in order to grab more attention to the design. • Direct marketing - subscribers to Faith’s will receive a newsletter regarding the new product range. • Advertisement on Facebook to attract the consumer who regularly uses social networking sites. (Appendix 7) A group can also be set up, which will not cost.
• An exclusive feature in Grazia prior to product launch. • Coverage in Glamour and Heat magazine to create more product awareness. • Hopefully the new product will get picked up on by other media to create more exposure. Sales Promotion • Limited free cotton bag with purchase, to put heels in- influence consumers to buy now and increase demand for the new product.
Target Media Other PR Activities • Collaborate with Graduate Fashion Week by including a voucher in goody bags for those who attend the show. • A launch party at the flagship store where product will be available for purchase. • Celebs invited to create more attention for the product as Press recognises the pieces they wear..
Fashion and gossip magazines were preferred publications for potential consumers of the new product. Advertisements will be featured in magazines that have a good readership figure. 17
Proposal Conclusion - Will it Work? My marketing and promotional strategy has been based around the results of the questionnaire and focus group. Keeping this in consideration has help me tailor my strategies to suit my target market. • According to MINTEL, the high street footwear market is lacking innovation. Success has been shown with the likes of UGGs and Crocs. Heading this direction is a good start and I have differentiated the brand from competitor products. • A new footwear concept which consumers like to see. This will create a bigger brand awareness • •
•
•
SWOT Strengths • Avant-garde/ innovative idea • Fashion driven • Limited choice currently on the market • Strong visual merchandising Weaknesses • Environmental issues not considered within product despite the importance of it today. Opportunities • Expanding design ideas • Taking into consideration environmental issues.
for Faith. Using recycled materials instead, ie. recycled Product awareness created through a range of denim, components from previous garments etc. product placements. Faith is in need of product development. This will Threats contribute in increasing sales having slumped • Innovation already established - differentiation over the past years. from other competitors will be the main target. 82% of people stated they would be interested in this new product. Many shown enthusiasm suggesting that this is a product that they needed after a night out in heels. Faith is a brand currently attracting the young females as well as the slightly older consumer the target consumer for my product is one that is a loyal consumer of Faith.
Dune Post Party Flat Pumps - £18
Redfoot Revolution After Party Shoes - £29.99 18
Appendices Appendix 1- Footwear market share
Appendix 2 - Footwear non-specialist market share
Appendix 3 - Troubles with 6-inch heels
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Appendix 4 - Faith Group, financial performance
Appendix 5 -
Appendix 6 -
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Appendix 7-
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Bibliography MINTEL, Footwear Retailing - UK, Market Size and Forecast (2008) [Online] Retrieved 3rd March http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=280591/display/id=336219#hit1 Drapers Online, Faith left standing at pace of change (2008) [Online] Retrieved 4th March http://www.drapersonline.com/news/footwear/ MINTEL, Footwear Retailing - UK, Women Lead (2007) [Online] Retrieved 3rd March http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=280591/display/id=336216 Drapers Online, Women’s footwear indicator (2009) [Online Publication] Retrieved 4th March http://www.drapersonline.com/news/footwear/ MINTEL, Footwear Retailing - UK, Retail Competitor Analysis (2008) [Online] Retrieved 3rd March http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280591&anchor=atom/display/id=336226 MINTEL, Footwear Retailing, Retail Profiles (2008) [Online] Retrieved 3rd March http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280591&anchor=atom/display/id=336227 T.Jackson, S.David, Fashion Marketing (2009) [Publication] Faith (2009) [Online] Retrieved 10th march www.faith.co.uk Faith Bites, More about Faith (2009) [Online] Retrieved 10th March http://blogs.faith.co.uk/ Facebook Advertisement (2009) [Image] Retieved 26th March www.facebook.com Fashion Promotion, ‘Bags of Style’ (2007) [Image] Retrieved 26th March http://www.fashionpromotion.co.uk/page5.htm S. Monica, MSN Health & Wellbeing (2008) Are your heels really ‘killer’? [Online publication] Retrieved 15th March http://style.uk.msn.com/fashionandbeauty/whatshot/article.aspx?cp-documentid=9979010 Redfoot Revolution (2009) [Images] Retrieved 15th March http://www.redfootrevolution.co.uk/index.php Mintel, Footwear Retailing - UK - May 2008, Consumer Typologies [Online] Retrieved 4th March http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=280591&anchor=atom/display/id=336225
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