Kate Spade rebranding by maddiebrick

REBRANDING KATE SPADE Strengthening the Brand in its Current Market

Madeleine Bricklebank 220264578

Contents Executive Summary 1 Introduction

2-3

Rationale

4-9

Recommendations

10-17

Conclusion

Bibliography

19-22

Executive Summary Fashion branding aims to deliver a valued product to a customer through a variety of different outlets, ranging from a unique experience and recognisable identity, to an engaging vision to portray to its customers. Branding and marketing alike try to satisfy its target customers’ needs and create a meaningful relationship consistently in a buyers purchase experience (Hameide, 2011). However, if these branding aspects no longer align with the companies desired vision and do not create value for the customer, a rebrand may be necessary to resurrect the relevancy and popularity of the brand (D’Arenzio, 2016). This report will explore American lifestyle brand Kate Spade’s current visual branding strategies, values, and customer base to understand why its success has depreciated in recent years (Reuters, 2019). It will investigate how the brand visually represents its personality, exploring how and why this no longer aligns with its desired vision. This report will give recommendations as to how Kate Spade can improve its brand equity and rebuild the once strong relationship with its customers, with a focus on engaging with the Generation Z audience. This will include suggested improvements to its use of social media , website and visual branding to realign Kate Spade with its vision and brand message and appeal to a Generation Z market. This report will include a website and social media mock up plan, as well as a rebrand with the intention to re-establish the brand in the modern fashion market. Theories such as D’Arenzio’s ‘brand sickness’ model will be used to understand why Kate Spade has lost connection with its customers and how the issue can be ‘treated’ to improve the consumers current perception of the brand. Hamiede’s branding process will also be used to understand the importance of visual branding and which changes are appropriate for Kate Spade. These features will be used to reach a conclusion to find the most effective way to rebrand Kate Spade and strengthen it in its current market.

Introduction

bagaholicboy.com

Kate Spade grew to popularity in the 1990s with its signature ‘polished and chic’ designs. The brand encapsulates a joyful style with its products and is recognised for its colourful handbag collections. Founder Kate Brosnahan Spade came from a working-class background and found that there were no handbags on the market that were fashionable yet still functional for the everyday working woman. In 1993 she launched six stylish, yet practical handbags and they soon became a fashion favourite of the 1990s and early 2000s. Spade grew to high status with the brands causal and accessible approach to luxury fashion and was made instantly recognisable by its eponymous nameplate design and bold colours. This approach gave young women the unique opportunity to purchase stylish items without the hefty price tag (Syme, 2018). Today, the brand has expanded into designing clothing, shoes and other accessories, and has built an established luxury brand with the “power of modern and sophisticated colours” at the heart of its ethos (katespade.com, 2023).

Figure 1 Kate Spade was sold to Neiman for around $59 Million in 2006 and then sold on a week later to Liz Claiborne for an estimated $124 Million. The public brand is now owned by Tapestry (formerly Coach) and was bought in 2017 for $2.4 Billion (Hanbury, 2018). According to Statista, there are 397 stores worldwide (statista. com, 2023), with a mix of speciality and outlet stores. In 2019, 50% of its North American stores were outlets (Danziger, 2019). Kate Spade is also sold in several department stores worldwide. In the UK, it is stocked in luxury retail stores such as Harvey Nichols, Selfridges, and Fenwicks. Handbag pricing ranges from £550 to as low as £125, positioning itself as a mid-range brand alongside the likes of Coach, Michael Kors, and Radley. The brand positioning map (figure 1) clearly demonstrates Kate Spade’s direct competition based on a combination of price point and accessibility to its customer base. This pricing makes Kate Spade more accessible to a wider audience, and in 2019, 60% of its customer base were millennials (born 1981-1996) (Forbes.com, 2019). As its brand mission identifies with modernity, uniqueness and femininity, it suggests that they target towards young women, yet its popularity in the 1990s and 2000s has continued into modern day with millennial women and is seemingly not yet to reach such success with the younger Generation Z (ages 11-26). 3

Rationale Kate Spade’s brand image plays a huge part in a business’s identity and how it connects with a consumer. Comunale (2009), breaks this idea down into 3 pillars:

Emotional – a memorable and consistent representation of a lifestyle that aligns

with the brands vision and target customers’ needs. Kate Spade’s mission values creativity, self-expression and “invites women around the world to live every day to the fullest”. With this brand mission in mind, theorist Aaker (1997) would define Kate Spade’s brand personality as ‘excitement’, as it strives to be creative and imaginative with its products to develop unique designs and collections.

Internal – the brands vision is emulated through its employees and pushes the

brand image to customers. It believes that its staff brings the brand to life through optimism, originality and a unique personal style that embraces imagination (businessoffashion.com, 2023). “We Strive to be our best and do things in a way that’s uniquely our own”.

Self-Identity – the brands visual identity reflects the consumers own self-image. This can be aspirational for the buyer and mirrors their own personality. Kate Spade invites women to be curious, intelligent, quick-witted and strong. The brand encourages young women to “live every day to the fullest” and to be sophisticated, playful and creative each day. With these brand values in mind, the consumer would expect Kate Spade’s visual marketing to be as bright and colourful as its message, but when looking at its website this idea is not represented. The landing page and product pages use a simple layout with a predominantly black and white colour scheme, occasionally using simple pops of colour (figure 2). This lack of consistency between the brands ethos and its visual representation is not only confusing for the consumer, but also makes it unclear who its products are targeted to and what the brand stands for. 4

katespade.co.uk

This lack of consistency can be used to explain why Kate Spade has fallen in popularity and sales in recent years, which can be represented with Hamiede’s (2011) branding process (figure 2). The process highlights the several steps a brand must go through to represents its identity with its target customers, first being the brand decision, which relates to its mission and vision, and second being its positioning strategy which relates to not only its financial features but its visual personality. The brand decision and the brands’ visual identity (features and personality) no longer align with the target consumer (Generation Z), as it is plain and simple compared to its bold brand mission. This means that the branding process is not effective and may no longer create value for the customer. To re-establish Kate Spade with its new target customer, it must realign the brand decision with its visual marketing and be consistent across all its digital platforms to accurately represent its values.

Figure 3

Rationale Current Online Presence The use of social media has skyrocketed in recent years, with apps like Instagram, TikTok and Facebook being a key component to keeping a brand relevant and to generate awareness. Social media allows consumers to gather information about a brand as well as being able to understand its identity and personality digitally (Manson, Et al., 2021). Kate Spade is present on several social media platforms and has amassed millions of followers collectively.

@katespadeny

A study from PewResearch found that 84% of 18-29 year olds use at least one social media site and that 76% of users have purchased something they saw on social media (Wong, 2023). This shows how influential a digital platform can be to the younger generation, and by marketing its products across several sites Kate Spade is optimising its online presence. Spade typically uses its accounts to promote new products, give styling advice, and updates on its current social impact projects. It also utilises the use of influencers to showcase its products, with personalities such as @nataliaspotts and @skaylarmarshai frequently posting short form content on Instagram to show how different items can be styled or worn. Overall, its social media channels are very colourful, creative and product centric, aligning with the brands mission. This also ties into Hamiede’s (2011) branding process, as its social media is being used to communicate its vision to consumers and is focused on representing its products in a way that aligns with the brands values consistently.

Figure 4 @pexels

Despite Kate Spade’s social media use aligning with its brand mission, its engagement with its followers is inconsistent. For example, an Instagram post uploaded on the 8th December 2023 gained less than 2000 likes, despite having over 3.3 million followers (Instagram. com, 2023). This inconsistency relates to D’Arienzo’s brand sickness model, as the lack of engagement shows how the brands content and values are not connecting with its target audience. This diagnoses Kate Spade’s brand ‘sickness’ (figure 4) as a ‘muddled perception of the brands promise’ meaning that its values and mission is not clear and therefore not emotionally connecting with the consumer (D’Arienzo, 2009). With 97% of Gen Z consumers saying that social media is their top source for shopping inspiration, brand equity and recognisability should be a top priority for a brands digital presence (Kastenholz, 2021). This idea also relates to Hamiede’s branding process, as it shows that Kate Spade’s communication to its customers is lacking consistency and therefore impacting its customer experience and perception of the brand (Hamiede, 2011). 7

Rationale

Varsity.co.uk

Learning from Coach - A successful rebrand

Coach, like Kate Spade peaked in popularity in the early 2000s with its trendy purses and celebrity status but had since fallen out of the limelight with its failure to rebrand towards a new, younger audience. This all changed in 2020 with the resurgence of the Y2K fashion trend, which Coach used to its advantage. The brand partnered with 2000s superstar Paris Hilton to promote its new, modern collection, stepping away from its classic monogram designs and opting for a sleeker, ‘timeless’ design (Truscott, 2022). This highlights the importance of recognising external influences such as trends and social forces and utilising them into a brands’ strategy. By doing this, Coach was able to target towards the Generation Z audience as it understood the customers interests and what was popular at the time (Hamiede, 2011).

uk.coach.com

Coach used its success to launch ‘Coachtopia’, a fun and colourful sub-brand targeted towards the eco-conscious Gen Z consumers (Petro, 2021). The line features a variety of products from clothing to handbags and are all made with the idea of a sustainable supply chain and a circular economy in mind. The line explicitly targets the Gen Z age group and have used this idea to build a community, labelling its customers ‘Coachtopians’ (uk.coach.com, 2023). This community allows the Gen Z customers to feel represented by a brand that was once targeted towards the millennials who wore Coach in the peak of its popularity in the early 2000s, giving young people the opportunity to be a part of a popular luxury brand. The success of Coach’s rebrand highlights the importance of understanding your customers’ needs and values and integrating them into a brands digital marketing strategy. For Kate Spade to rebuild a relationship with its customers, it must first understand what their needs are and what influences them to shop, alongside how these ideas can reinforce its current brand values.

Recommendations Using all the information above, it is clear that Kate Spade needs to rebrand as its mission and values are not visually represented on its digital platforms and website. D’Arienzo (2016) would label Kate Spade as a ‘tired brand’, as its popularity has declined and no longer seen as ‘useful’ to customers, this is highlighted through its decline in sales and lack of engagement online. As for its ‘sickness’ (figure 4), D’Arienzo would recommend accentuating the brands’ core competency with a unique and emotional campaign that rebuilds the relationship between the customer and the brand. With this idea in mind, the best way for Kate Spade to connect with a new, younger audience would be to rebrand with the brand values at the forefront of its campaign. Using Coach’s ‘Coachtopia’ as an example of a successful rebrand, one way to build new customer relationships would be with a sub-brand titled ‘SPADE’, which would aim to appeal to Generation Z by targeting its main interests and issues. This campaign would include a website makeover, a new Instagram page, and would be promoted heavily across social media, particularly TikTok. This section will give detailed recommendations as to how Kate Spade can effectively create and promote ‘SPADE’ to a younger audience and give evidence as to why this would be successful.

SPADE Target Audience To be able to connect with SPADE’s target consumers, it must first be understood how they interact with social media and advertising. A study from the Influencer Marketing Factory (2023) found that 40% of Gen Z consumers follow brands they like on social media and 97% use social media as their top form of shopping inspiration. The report also highlighted the importance of Tiktok, finding that 83% of users say that trending content has inspired them to make a purchase. An article from Forbes found that the majority of TikTok users are aged 16-24 (Gen Z) and can be the most effective way for a brand to connect and sell to a younger audience (Simpson, 2020). Similarly, on both Tiktok and Instagram, research from Sprout Social found that authenticity and relatability is the best way to connect with a younger audience. When applying this to SPADE, the best way to connect with a Gen Z audience would be to consistently post product and community-based videos that use a more relaxed tone of voice to allow consumers to relate and therefore build an emotional relationship with the brand. 10

@branbran1997

This could include creating content with staff members which will not only build an authentic online presence, but also help consumers feel more connected to the brand. This has previously been successful with Coach, particularly with the content creator Brandon Nguyen (@branbran1997), a Coach retail employee who has amassed over 170,000 followers from showing products and how they can be styled. This casual and authentic approach to social commerce would be a perfect way to easily integrate Kate Spade’s mission and values into its content; this would be a great ‘treatment’ for the brands sickness and allows consumers to feel more emotionally connected with the brand.

Another way to build a relatable and positive relationship with a younger audience would be to take an informal approach to digital marketing, particularly on TikTok. Short form content thrives on the platform and can be an easy way to grab a viewer’s attention in an authentic way. This can be done by following trends and popular sounds and making it relevant to the brand; interacting with followers and creating videos that appeal to what they like (eg: answering questions followers comment or showing products that have been requested) ( sproutsocial.com, 2023). This is a powerful way to build a sense of community and a strong digital relationship with SPADE’s customers which will in turn help reinforce the brands values and what it stands for.

Recommendations Brand Consistency and Touchpoints As previously mentioned, consistency across all digital channels is one of the most effective ways to communicate a brands message to its target customer. Kate Spade’s Instagram visually aligns with its brand mission but isn’t connecting with its customers; the brands website is plain and simple but lacks the element of fun that is expressed in the brands ethos. When creating SPADE and launching the sub-brand to a new audience, it is vital for its values to be easily recognisable and consistent across every platform to build a strong brand equity. Brand equity relates to a customer’s perception of a brand and in turn how desirable and valuable it is to the consumer. Armstrong-Gibbs and Mclaren’s (2017) Brand Equity model highlights the steps a brand must go through to build a strong relationship with its customers, starting from the bottom and building upon each stage (figure 5). Despite having strong salience with its millennial audience, Kate Spade can use SPADE to build awareness about its values in a way that appeals to a younger audience, and therefore create a strong brand equity with a Gen Z customer base. One way SPADE can build its brand equity is through the designable touchpoint wheel (figure 6) which highlights the different ways a customer can interact with the brand through different visual elements. In each section of the customer experience identity and new media design plays an important role, showing the significance of consistency and being easily recognisable. Figures 7 and 8 proposes a new logo design and colour palette which will be integrated into SPADE’s website and online social presence. This not only builds a strong brand salience but makes SPADE instantly recognisable at any point of the touchpoint wheel experience (Lee, et al. 2013).

Figure 5

Figure 6

Logo design and colour play a huge role in how a brand is perceived. For example, bright colours have been used in SPADE’s colour palette such as orange and yellow as they have positive connotations such as happiness, confidence and optimism, which relate to Kate Spade’s brand values. This can evoke positive emotions for the consumer and allow them to associate the brand with optimism and playfulness (Lischer, 2023). Similarly, using a simple logo and removing the text is not only used to visually express the sub-brands name, but also pays homage to Kate Spade herself, highlighting that SPADE represents the creativity and sophistication of the brands ethos. By doing this, it will solidify SPADE’s identity and help to align its brand message with its positioning strategy (Hamiede, 2013).

Figure 6

Figure 7

Recommendations Website and social media Recommendations Pictured right is an example of how SPADE’s Instagram grid might look; it uses a product centric approach with a standout bright and colourful theme that fits perfectly into the brands creative and unique values. There is a clear logo recognition and uses young models to relate to its target audience. The feed would also include User-Generated content (UGC) and a mix of video and image posts to show product styling and give inspiration. UGC tends to be more favourable with consumers as they believe that the content will be more trustworthy compared to traditional advertising, further building an authentic and emotional relationship between the brand and the customer (Bahtar., Muda, 2016). Furthermore, influencer marketing would be a powerful tool to attract new customers who share similar values as SPADE. Featured bottom right are several female influencers who have a large digital platform and are in the Gen Z age group. They typically post fashion and lifestyle content and frequently use their platform to promote products and brands. By using influencers with a pre-existing fan base, it is easier to encourage followers to visit SPADE’s social media and website as they trust the influencers opinion and already share similar interests with them. These influencers also can be used to develop a strong brand equity with the customer and build a sense of relatability by taking an approach which is unique to the person and their fanbase, but still integrates the brands’ identity and values into the content (Biaudet, 2017). This will further build an emotional connection with the brand and can help to develop its identity with young, popular influencers that the customer already relates to. This content can also be transferred onto different digital platforms such as Twitter and TikTok, which will keep the brands content consistent and potentially reach a wider audience.

Current Instagram feed @Katespadeny

Recommendations Pictured right are three examples of how the SPADE website may look. There are 2 landing page examples, created with Canva and WordPress. Both examples utilise colour and product images to integrate the values of creativity and fun, alongside the use of informal language and a casual tone of voice to build a sense of relatability with the desired younger audience. The homepage features the F shaped pattern which is designed to be the most appealing and easy to digest for the consumer (Nielsen, 2006). This combination of colours, language and imagery allows the consumer to understand SPADE’s exciting and playful personality and invites customers to be involved and learn more from the simple yet eye-catching layout.

Nielsen (2006)

Conclusion

To conclude, the aim of this report was to understand why Kate Spade needed to rebrand and give recommendations of how to do so. By using D’Arienzo’s brand sickness model it was discovered that its brand values of creativity, optimism and originality aimed towards young women were not being represented in its digital channels or website, which lead to a lack of interaction online and a recent decline in sales. To ‘treat’ this I recommended that it creates a sub brand titled SPADE - taking inspiration from Coach’s ‘Coachtopia’ – that aims to appeal to Generation Z and promote Kate Spade’s values in an authentic and creative way. As it is aimed towards a younger generation, social media such as TikTok and Instagram is heavily used to build a strong relationship and brand equity with the customer. This included using bright colours and an informal tone of voice to represent the brands playful personality, alongside featuring UGC and Influencer marketing to show customers the versatility of products and simultaneously giving SPADE a larger platform towards young women who are interested in fashion. Similarly, SPADE’s social media will be used to connect with its customers and take an informal approach, using the platform to be creative and playful to relate to the customer and show the brands personality rather than just product marketing. The website similarly features the bold colours and creativity of its social media platforms, which builds a consistent and memorable brand image that customers can relate and be drawn to. The report also investigated Hamiede’s branding process and the importance of a clear brand identity and how this can help the customer to understand the brands values. I believe that integrating these recommendations into SPADE’s branding strategy will successfully promote its brand values and personality in a modern and effective way that a young audience can resonate with, therefore re-building a strong emotional and trustworthy connection between the customer and the brand. By doing so, SPADE will be able to create a sense of brand community and strength that the customer will feel invited to join and be a part of, therefore re-establishing Kate Spade as a desirable and fashionable brand for young women.

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