Date: May 3, 2015

TO: Paige Robinson and Diana Karvelis, SCC

FM: Team 6B: Veronika Sebek, Kiersten Kuc, Alexis Schaefer

RE: Attracting the Older Millennial with “Luxury Investment” Messaging

Situation

Allen Edmonds currently has a target of conservative and successful men between the ages of

35 and 54, with a buying power of almost $11,000 more than millennials. Allen Edmonds

markets to this target by focusing its advertising around its American roots, craftsmanship, and

quality. Allen Edmonds is extremely proud of its history with U.S. Presidents and relies on its

brand awareness in the past to further its brand image today.

Despite this, Allen Edmonds is looking to expand its market to millennials in order to supplement

their aging target base as baby boomers near retirement. The new target of older millennials

between the ages of 25 and 34 is financially prepared to spend more money on high-end

brands, while 51 percent will buy products that represent their personality. Research has shown

that purchase of luxury brands peaks during this life stage, with 65 percent of the target striving

to wear the latest fashion trends. This offers Allen Edmonds the opportunity to usher in a new

generation of loyal wearers, as 79 percent of older millennials say they’ll remain loyal to a style

once they find one they like.

Recommendation

We recommend positioning Allen Edmonds as an investment in the target’s future and as a

symbol of luxury, highlighting the durability and style of its shoes.

Rationale

Image

● The target market of older millennial men believes that their purchases reflect their

projected image and help to define how they are perceived by their peers or bosses.

They see brands as a part of their identity and a representation of their lifestyle choices.

40 percent of Millennials have said that they would pay extra for a product if it’s

consistent with the image that they want to convey. Because of this, Allen Edmonds has

the opportunity to leverage its brand awareness among the current consumer. The brand

can position its products as an opportunity to get noticed by those higher up in the

corporate ladder and make a strong first impression in the office.

Luxury

● Allen Edmonds has the opportunity to position itself as a luxury brand because of its

focus on fine leather materials and attention to detail in the extensive shoe-crafting

process. The brand’s 212-step process has been the basis for producing handcrafted

shoes since 1922. The Goodyear Welt and high-quality materials are more expensive

and require more intensive labor, but come together to create high-end shoes. The

brand also offers the target a customized fit and wide range of sizes, adding to luxury

appeal.

Status

● Four consecutive presidents wore Allen Edmonds to their Presidential inaugurations.

Other celebrity endorsers include NBA players, professional golfers, and actors.

Celebrity endorsements are powerful forces for brands to garner brand awareness and

loyalty among millennial audiences. Recent research carried out by BDRC Continental

revealed that Product Placement can dramatically shift television viewers’ perception of

a brand. In the words of an in-depth interviewee, “If they’re good enough for the

President, they’re good enough for me.” By positioning Allen Edmonds as a high-end

brand worn by leaders, the brand can transfer trust from public figures and harness

positive brand association as a status symbol.

Style

● The brand’s commitment to classic style and its ‘American original’ image closely aligns

with the target’s desire to be well-dressed. The brand keeps up with seasonal trends,

including products such as its Fall Collection dress boots styled after the brand’s

standard Oxfords. Allen Edmonds also offers a variety of styles such as loafers, driving

shoes, boat shoes, oxfords, wingtips and golf shoes, which could help position the brand

as fashionable and versatile.

Investment

● Allen Edmonds has the ability to position itself as an investment because its shoes are

perceived by consumers as worth the money. Allen Edmonds shoes are long-lasting and

durable due to the company’s unique recrafting service. This service offers several

packages that repurpose the cork bottoms, soles and leather, and return the shoes to

the consumer in almost new condition.

Lifetime Relationship

● Allen Edmonds has the prospect of capitalizing on millennial brand loyalty. While 60

percent of millennials say they are often or always loyal to brands that they currently

purchase, nearly half say the quality of the product is the most important attribute in a

purchasing decision--more than twice that of price. If Allen Edmonds directs its

advertising efforts toward the lifestyles or current needs of the new target consumer, the

brand can entice millennials to make a first-time purchase that could lead to a lifetime

relationship with the brand.

Next Steps

Allen Edmonds should use several touchpoints to reposition itself in the eyes of the millennial

target. First, the brand should use promotions to appeal to first-time buyers and build a lifetime

relationship with them. In-store retail marketing also provides a great way for the brand to reach

millennial men, and Allen Edmonds should revamp the store’s look to appear more high-end

and modern. This would help position the brand as luxurious and stylish, two important factors

for millennial purchases. Allen Edmonds can harness the influence of notable public figures

through endorsements and placement in popular movies and TV shows. By positioning the

shoes in high-profile contexts, the brand can revamp its image to appeal to style-conscious men

wanting to move up in their careers. The brand should also use social media and its website to

communicate its new positioning to the target. Sixty-two percent of millennials say that if a brand

engages with them on social networks, they are more likely to become a loyal customer.

Because of this, Allen Edmonds can use these online touchpoints as an opportunity to turn the

target into loyal, lifetime customers. By harnessing the image-conscious nature of millennial

men in its marketing efforts, Allen Edmonds can effectively reach and impact its new target

consumer.