Reimagining Retail : Bloomingdales

THE FUTURE OF

BLOOMINGDALES REIMAGINING THE RETAIL EXPERIENCE

Art Direction 729/334 | Prof.Judy Salzinger

THE OBJECTIVE Re-imagine the retail experience for a millennial consumer at Bloomingdale’s by finding ways to re-engage the consumer using modern technology trends, an omni-channel marketing plan, and the human gratification of self-discovery and design.

INDEX Industry Overview Boomingdale’s The Retail Industry Retail trends Pain Points Technology Trends Omni-channel retail

The Strategy 02 03 04 07 09 10

Consumer Overview Millennials Consumer Persona Key Insights

11 15 24

Competitive Analysis Primary Competitors

29

Storyscape Organizing Idea Platform

33 34 36

The Campaign Concept Visual Identity Deliverables Path to Purchase

39 41 42 78

INDUSTRY OVERVIEW

BLOOMINGDALE’S Then: 1970 Bloomingdale’s in the 70’s was one of the first type of stores that housed a variety of items all under one roof. Their core principal at the time was to promote items first or as bigger or better. They brought about the whole concept of retailing as theatre where they had themed rooms or displays. More than a place to shop, Bloomingdale’s became a social event, a gathering space for shoppers and a place to be seen.

Now: 2015 Bloomingdale’s is now in crisis. With the increase in several department stores, it has become irrelevant and caters to an older generation. The new age consumer has adopted new channels of communication that Bloomingdale’s has yet to maximize its potential.

So, we asked ourselves...

How can we make Bloomingdale’s relevant again?

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THE RETAIL INDUSTRY 2015: State of Transition With the drastic socio-economic changes in the last decade alone, the top priorities in this industry are innovation, marketing and online/media. There is a merging of channels where online and brick and mortar stores exist in tandem with each other. Several stores are now using new forms of technology to attract shoppers.

It’s all about the CONSUMER EXPERIENCE People want to feel loved when they buy something. Today’s consumer wants things their way. The retail industry has understood the concept that...

We aren’t selling commodities, we are selling experiences.

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RETAIL TRENDS

Social Currency The power of social media has become clearly evident.

Applying this to retail has become a recent trend.

Be Everywhere Consumers want what they want when they want it.

Retailers must use mobile and social platforms wisely.

One-click Everything Enabling people to plan their perfect store experience is important.

E.g.: Marc Jacobs had a pop up store where you could pay by using social media.

E.g.: Target uses image recognition to streamline mobile purchases.

E.g.: Banana Republic and Gap let shoppers reserve clothes online for In-Store pickup.

Opportunity: Provide shoppers

Opportunity: Provide shoppers

Opportunity: Provide shoppers

with something to talk about

with a convenient online as

the ability to integrate their

and to spark the conversation.

well as instore experience.

online shopping with real life.

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RETAIL TRENDS

Power to People

Digitize the World

Lifestyle Curation

Making the consumer the hero is not a new concept, but it is something that is now more important than ever.

Technology has changed the modern shopper’s journey.

Using this will help retailers retain their customers.

Retailers are not selling products alone, but also an aspirational lifestyle.

E.g.: Nordstrom has personal shoppers text customers the latest fashions.

Opportunity: Provide shoppers with personalized experience.

E.g.: ModiFace photo analysis generates personalized skincare recommendations. emerging

Opportunity: Provide shoppers with an idea of the

technology to create a better shopping environment.

lifestyle they can experience at Bloomingdale’s.

Opportunity: Use a

E.g.: Sears experential shop has selections of connected products.

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RETAIL TRENDS

Product Immersion Consumers want to interact with products before they make their purchase decision.

E.g.: Warby Parker lets its users try out their glasses for a week before they make their final decision.

Opportunity: Allow consumers the ability to experience the product in different ways.

Zero Inventory

Kill the Checkout

Visualization experiences allow the consumer to ‘see’ an entire catalog of products in a variety of settings.

Most stores are now digitizing methods of payment so that they can seamlessly purchase anything anywhere.

E.g.: Lowe’s has interactive rooms that allows shoppers to virtually visualize home remodelling products.

E.g.: Apple pay is designed for consumers to make contacless transactions.

Opportunity: Provide shoppers with a wide range of options without overwhelming them.

Opportunity: Provide shoppers with hassle-free payment.

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PAIN POINTS We tried to discover the problems that a typical shopper faces as he goes about his journey so that we can uncover key insights that would lead us to form our strategy for the campaign.

Ha v at ing ch to ec wa ko it ut Sa le P sp u eo sh O pl y gi ff e ve er s al th lt a he t d de on ta ’t ils qu es T tio oo ns m as an ke y d Pr ob le fit m tin s g in ro the om m a D or kin iffic ex g r ul ch et ty an urn in ge s s lo Diffi ca c u rig tin lty ht g t in ite he m

TOP SHOPPER COMPLAINTS 32.4%

20.1%

15.6% 10.2% 10.2%

7.2% 4.3%

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TECHNOLOGY TRENDS

Convenience Technology that aims at making activities easier for people. The modern consumer wants things done quickly and in a simple way.

Some examples include smart vending machines, geomapping and contactless payment.

Interactive Some forms of emerging technology are a great tool to increase interaction between the consumer and the brand.

This helps to increase brand loyalty.

Face recognition, interactive walls and holograms all fall under this category.

Analytics Customization is now the main need for consumers today. Technology that uses data and provides a unique experience is becoming very popular.

For example, several retailers are already using big data, sensors and beacons.

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OMNI CHANNEL RETAIL A multichannel approach that seeks to provide the customer with a seamless integration of channels (e.g.: tablet, smartphone, store, etc.)

It compliments the lifestyles of the consumer and leads them through a personalized buyer’s journey.

CONSUMER OVERVIEW

MIL.LEN.NIALS

WHY MILLENNIALS? They are Big

They Spend

$200bn

of the population

annual spending power

• Crucial influencers.

• High purchasing power.

• Early adopters.

• Searches for authentic brands to make their purchases from.

• Seeks out products/ experiences that are tailored to their likes.

They are Social

• Look to user generated content to make most of their decisions.

• Always connected and on the go.

• Not afraid to share their own personal views and opinions.

• Multitaskers - generally use more than one device at a time.

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HOW DO THEY MAKE SHOPPING DECISIONS? “Before I make any purchase, in-store or online, I do a bit of research about it through reviews, blogs, social media, etc.”

“Every time I’m at a store, I search for deals online through my phone simultaneously.”

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CONSUMER PERSONA

THE

TREASURE HUNTER

THE

SHOPAHOLIC

THE

CITYSUMER

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HOW DO THEY SHOP? They are early adopters.

Most millennials prefer to make purchase directly on their smartphones. Since they are always strapped for time, they find making decisions on the go easier and convenient. They see technology as a way to improve lives and make better choices.

They don’t trust easily.

With such an increase in user generated content, this generation cohort looks to reviews, blogs, video-logs and other sites before they make decisions about anything. They don’t trust easily and like brands to be authentic and honest.

They are narcissistic.

And this may not be a bad thing. They want their opinions to be heard, they want the brands that they are loyal to to care about them and they want to make a difference. They voice their views on retail experiences - both positive and negative - that affected them in their lives.

WHAT DO THEY LOOK FOR?

Value

Authenticity

Quality is important to the millennial but the price must be fair. (Although fair can have different definitions.) Brands that have a USP are found to be more credible.

The concept of “making it their own� is big with millennials.

They are constantly exposed to and influenced by diverse experiences. Brands need to prove their effectiveness to millennials and show how they can still be relevant in their lives.

Instant Gratification With all the modern technoloical advancments, the millenial generation now expects to get what they want immediately, and they expect customer services to be available and at their fingertips 24/7.

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THE TREASURE HUNTER ALLIE JACKSON “ I always do my research to find the best deals before I make my purchase.”

Age: 23 Career: Public Relations Income: $46,000

BRANDS

SOCIAL MEDIA

Allie is a strong and independent woman who just completed her bachelor’s degree and found an entry-level job in a big company. She is very savvy and spends her money wisely.

You can find Allie looking for online deals in her favorite stores and eating healthy food. She is in a serious romantic relationship and lives in her own apartment, which she shares with her little poodle, Sasha.

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THE TREASURE HUNTER PATH TO PURCHASE

Need Recognition

Information Search

Realizes the need for purchase. Browses social media, but does not look for i n f o r m a t i o n particularly.

Conducts extensive online search, reads reviews, blogs, social media and fashion websites.

Evaluation of Alternatives Visits multiple stores, searches for price variations, coupons, offers in magazines, newspapers, etc.

Talks to friends and family and gets their opinions.

Purchase Decides on the store and knows exactly what she wants.

Post Purchase Continual usage of product - has either positive or negative experience, makes her opinion known, writes reviews and blogs about her experience.

Triggers • • •

Special occasions, gifts Window displays Coupons, rebates, discounts

• •

Social media, online contests Word of mouth Page 19

THE SHOPAHOLIC FIONA HAMILTON “ If I find something I like, I buy it.

I like brands that offer exclusive clothes that not everyone has.”

Age: 31 Career: Interior Designer Income: $130,000

BRANDS

SOCIAL MEDIA

Fiona is a talented freelance interior designer who is financially dependent on her husband. She has a 2 year-old son and has a full time nanny to take care of him.

Fiona does Pilates regularly and is always indulging in fast weight loss diets. She loves to go shopping with her girlfriends and spends large amounts of money on clothing and household products. She loves to gossip and cares a lot about her friends’ opinions.

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THE SHOPAHOLIC PATH TO PURCHASE

Need Recognition

Information Search

Evaluation of Alternatives

Purchase

Post Purchase

Realizes the need for purchase. Browses social media, but does not search for i n f o r m a t i o n p a r t i c u l a r l y.

Sometimes skips this stage entirely.

Does not conduct an intensive search.

Looks through fashion magazine and websites. Prefers to rely on the knowledge of friends and the latest ‘fads’.

Mostly does not look at alternatives once she knows what she wants and where she wants to buy it from. She may check out other products on her phone.

Buys the product.

S o m e t i m e s purchases other products along with it on an impulse.

Continual usage of product - has either positive or negative experience, makes her opinion known through social media or by sharing with her friends.

Triggers • • •

Online interaction Events and shows Blogs

• •

Magazines and catalogs Membership and loyalty programs Page 21

THE CITYSUMER TED MARTIN “ I prefer quality over quantity.

I don’t mind spending a bit more on something that will last longer.”

Age: 27 Career: Software Engineer Income: $74,000

BRANDS

SOCIAL MEDIA

Ted is a techno savvy millennial who lives his life to the fullest. He is a free bird and enjoys the nightlife with his friends and dates. He is not afraid to try new things in order to get authentic experiences, which he usually shares on social media.

He prefers quality over quantity in the products he buys and takes his time to make the best decision. He works for a technology company in California but plans to start his own company soon.

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THE CITYSUMER PATH TO PURCHASE

Need Recognition

Information Search

Evaluation of Alternatives

Purchase

Post Purchase

Recognizes the need for the product, based on his current situation and environment.

Looks to social media, word of mouth and credible sources for information and opinions. He may also look at magazines and catalogs for options.

Weighs his options before making a purchase, however if he believes that the product is the best there is, he will not look at alternatives.

Knows what he wants, but is still on the immediate lookout for items that could potentially be of better quality and price.

Continual usage of product - has either positive or negative experience, makes his opinion known by directly contacting the company, social media or blogging.

Triggers • • •

Special occasions One time events Gifts

• • •

Social media, websites Promo codes Window displays Page 23

KEY INSIGHTS Dwell vs. Shop While Bloomingdale’s was extremely popular a while back, they have failed to engage the millennial consumer. The modern shopper has needs that vary from what Bloomingdale’s originally catered to.

From our research, we discovered that most millennials are bored when they shop. They prefer to browse various shops before deciding to make a purchase. This is where we landed at our first key insight...

Millennials browse more and buy less.

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KEY INSIGHTS Fueling the Experience Economy Our consumer prefers to have more options available for less. Which is why we decided to incorporate into our campaign something that allows the consumer access to a unique experience like no other.

Moreover there is a priority shift that is taking place. With the increasing popularity of social media, experience and travel are more valued than material possesions and millennials love to share them.

What we concluded was that experiences mean more to today’s youth than ever before.

Experiences shape a millennial’s identity.

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KEY INSIGHTS Access Over Ownership Building off of our previous insight, the concept of having the opportunity to experience something is more important than owning it. Millennials do not trust easily and are suspicious about the world around them.

They appreciate honesty and love the concept of authenticity. They truly believe that happiness cannot be bought. They prefer to spend time on money to create memories.

From this, we inferred that our shopper loves things to be customized to their tastes and interests.

They crave genuine and personalized experiences.

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MEDIA MIX Our key insights helped in selecting a media mix that would work well with the type of consumers that we are targeting. While selecting the media for the campaign we kept three things in mind.

Maximum Media Impact Capitalizing the strength of individual media to select a mix of the best ones and not the consumer with too many media choices.

Keeping Prospects Engaged An integrated media mix that meets the different needs of prospective consumers so that we can maintain frequent contact without being redundant and annoying.

Unobtrusive, Part of Daily Life Building off of our previous point, we wanted our campaign to reach multiple touchpoints but be seamlessly integrated into our consumer’s busy lives.

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MEDIA MIX

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COMPETITIVE ANALYSIS To find our key competitors, we decided to divide our competitors into three categories that, when combined, form a memorable experience for the consumer. They are convenience, experience and variety.

VARIETY

EXPERIENCE

CONVENIENCE Page 30

PRIMARY COMPETITORS

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THE STRATEGY

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Purpose

Shared Experiences

Enabling people to express themselves with what they buy.

Brand

To be unique, stylish and confident in their lives,

Curate Yourself

Offers a variety of fashion and accessories, home decor, beauty products and gifts for all occassions, offers an experience.

Product

Desire

Consumer

To gain approval and recognition of others in order to achieve a greater self esteem.

Shared Values

Need Page 33

CU.RATE

To select, organize, and present (online content, merchandise, information, etc.), typically using professional or expert knowledge.

WHY CURATE? We, as independent individuals, have the ability to design and create how the world perceives us through our personal look, what we involve ourselves in and what environments we surround ourselves with.

We curate our everyday lives.

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OUR PLATFORM USER

CONTENT

CURATION

Our platform is based on three pillars - user, content and curation.

Bloomingdale’s provides the initial content, which the user then selects, organizes and applies to their personal lookbook. The user is then invited to contribute to his or her own content (e.g.: selfies, critiques, comments, etc.) resulting in the curation of a personal look and aesthetic. This applies to millennials specifically because of their enjoyment in personal reflection and contribution of their thoughts and opinions.

For our campaign, we wanted to...

Connect with what millennials love to do.

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OPPORTUNITIES IN CURATION • Plan your shopping trip

• Positive fitting room experience

• Share experiences

• Integrate online shopping into real life experiences

• Sync online + in-store experience • Create a personalized experience • Locate items instantly • Curate your lifestyle • Experience product in various ways • Easy payment methods • Never wait at checkout Page 37

THE CAMPAIGN

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INITIATION

PARTICIPATION

FINALE

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CURATE YOURSELF The Bloomingdale’s Curate Yourself campaign is broken up into three distinct phases that allow the consumer to transition easily through our marketing plan, leading up to the final event titled Bloomingdale’s Hall of Fame.

Our purpose Engage consumers by encouraging them to create a personal lookbook revolving around their individual lifestyles. This lookbook will not only encourage consumers to become involved in the Bloomingdale’s community, but also allows the company to respond to them as individuals, encourages the feeling of self-realization and definition, and rewards select consumers with a once-in-a-lifetime experience for their recognition of who they are and what they want to represent.

#curateyourself

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VISUAL IDENTITY TYPEFACE

COLOR PALETTE

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PHASE 1: INITIATION

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Phase 1: Initiation Guerrilla The introductory phase begins with a singular guerrilla advertisement: a giant interactive screen in a highly populated location (e.g.: Union Square, New York). The overall purpose of this screen is to introduce the new Bloomingdale’s app, to encourage interested consumers to begin their Bloomindale’s lookbook, and to start the buzz about the Hall of Fame and New York Fashion Week reward. The direct purpose of this screen is to surprise passer-byes while inviting them to participate using the interactive glass podium placed several yards in front.

On the Screen There will be model moving around and interacting with the environment they are viewed in. With the podium, users can change the environment by selecting different clothing options, new furniture pieces, fragrances, etc. Each addition made by the current user will cause a different reaction from the figure on the screen. (E.g.: Consumer selects a sunhat. The sunhat appears on the figure on the screen, and she smiles touches her new hat admiringly, closes her eyes and looks as though she is enjoying the sunshine.)

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Curate Yourself App If a consumer likes what he or she has created, there is an option to save the design by downloading the application and using Bump or the individually generated code that can be accessed through the Curate Yourself application. After the screen has received attention from the news sites, blogs, social media, etc., other large interactive screens will be placed in large cities across the nation.

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Guerrilla

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Union Square

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Union Square

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Interactive Podium

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Interactive Podium

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Phase 1: Initiation Social Media, Digital Media, Outdoor Ads, In-store Ads As the initial phase of the campaign progresses, it will be paralleled with social media attention (e.g.: Twitter, Facebook, Instagram, Vine, Snapchat), outdoor advertisements (e.g.: billboard, bus ads, mall signage), and digital media (e.g.: website banner ads) that direct the consumer to the large interactive screen(s).

These have the ability to be specific to location, encouraging the user to find and discover the screen in their area.

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PHASE 2: PARTICIPATION

Phase 2: Participation Mobile + Website After introducing the campaign through the guerrilla ad(s), the focus is drawn mostly to mobile devices. Using the Curate Yourself app and/or the Curate Yourself microsite, the consumer has the ability to browse Bloomingdale’s products/features and save the items that pertain to their lifestyle, thus building and forming their lookbook.

To access the app, the user must first create an account that will store the information he or she saves and can be used for personalized in-store services and deals. In addition to the products Bloomingdale’s provides, the user has the ability to upload their own pictures and share their lookbook items with a variety of popular social media.

As a person develops his or her look, they can easily submit to the Hall of Fame and New York Fashion Week through the application, earning them a potential invite and featuring in a local Bloomingdale’s store.

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Phase 2: Participation Curate yourself app • An option to create and store occasion-based wishlists and have a dressing room prepared for them ahead of time based on their selections

• A promotions feature that provides personalized deals with the ability to save individual promotions for future use

• Detailed information on the Hall of Fame and Fashion Week along with the ability to submit their work and the ability to browse who has already been selected

• A guerrilla ad feature where you can access your saved interactions using the individualized code provided on location the ability to find a store near the user

• A geo-fencing feature that allows the user to map their journey in the store and locate specific items • A scanning feature that allows the user to scan product barcodes and save/share the product the their lookbook/wishlists and social media

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Scan and Save

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Phase 2: Participation In-store Environment Along with the application and the microsite, several changes will be made in-store. Lounge areas will be placed in multiple locations around each store consisting of comfortable, innovative chairs and surrounded by large interactive screens. Each of the chairs feature a single, adjustable, glass touch screen that allows the consumer to use the personal shopper service provided by Bloomingdale’s. He or she can sit, relax and browse the profiles of the staff and what their specialties are.

After making a selection, the personal shopper will approach the consumer and be able to access their lookbook/wishlists, giving them individualized attention and an engaging shopping experience. While the consumer is waiting, they can use the glass screens to browse newly featured items in the store or they can interact with the three large screens around the lounge area. The large interactive screens will feature select consumer lookbooks from around the nation and potentially internationally. Consumers can approach the screens, browse through the different lifestyles, and even scan products that they enjoy.

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In-store Environment

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Billboard

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Billboard

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Phase 2: Participation Featured Nooks Another large change to the in-store experience is the Featured Nooks that will be placed around the store. These nooks will feature the consumers that have been selected based on the quality of their submitted lookbooks, and will contain a large interactive screen and a displayed environment based off their interests, style and shared personality.

Consumers can approach the nook and see what products are included in an individual’s lifestyle, while interacting with the screens in the same manner as the large guerrilla advertisement(s). Additionally, consumers have the ability to scan and locate specific products in-store or add them to their own lookbook or wishlists.

Those get the privilege of being featured in a nook will have a permanent place in the Bloomingdale’s Hall of Fame, and will receive an invite to an the all-inclusive trip to New York Fashion Week.

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Featured Nooks

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Featured Nooks

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In-Store Interactive Walls

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Phase 2: Participation Social Media, Digital Media, Outdoor Ads, In-store Ads As the participation phase of the campaign progresses, it will be paralleled with social media attention (e.g.: Twitter, Facebook, Instagram, Vine, Snapchat), outdoor advertisements (e.g.: billboard, bus ads, mall signage), and digital media (e.g.: website banner ads) that direct the consumer to the app/microsite and feature the selected consumers and their lookbooks.

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PHASE 3: FINALE

Phase 3: Finale Hall of Fame The last phase of the campaign will be the all-inclusive trip to New York Fashion Week as a selected member of that year’s Hall of Fame. Bloomingdale’s provides transportation, food and board, and exclusive tickets to the fashion shows and stylist events, as well as full attire for every formal occasion. Consumers will get to interact with top stylists and designers while getting to browse and purchase new products before they are released to the public. They will be featured an honored in the Bloomingdale’s tent specifically, allowing the world to access who they are and gain inspiration from these curated individuals.

Social Media During the final phase of the campaign, social media (e.g.: Twitter, Facebook, Instagram, Vine, Snapchat) will be used to showcase what is taking place at the event.

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Future of the campaign #curateyourself The Curate Yourself campaign has the ability to become an annual event. Those who did not make it to the Hall of Fame one year, have the ability to re-submit and go to the event the following year. Lookbooks can continue to be created in order to access personalized deals and maintain an organized, and consumer friendly shopping experience.

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Samyukkta Murali | Morgen Billingslea | Dustin Bramlett | Sonia Leone ŠCopyright 2015 Chapman+Variety All Rights Reserved