Origins Garden State Plaza

Localized Marketing to Drive

Loyalty and Sales

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

The Situation creating need for Localized Marketing…

Store #720 at Garden State Plaza is experiencing attrition of demographic customer base due to two main glaring situations.

1. Store relocation approximately 2 years ago has lost approx 25% of our sales to Macy’s

2. New location walk-by traffic is NOT demographic which is effecting AUS and UPT

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

The rational for localized Marketing effort…Customer comments heard on a regular basis– I thought you had left the mall– I remember you in the old location, didn’t know you were here still– Oh my gosh, do you know how far you are from Nordstroms!– I hate this end of the mall– I don’t like coming to this mall if I don’t have to– I go to Macy’s because it’s easier and closer to Nordstroms– I found you on the map, but getting here and finding you wasn’t easy. I

was just about to give up.

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

–Westfield Garden State Plaza ranks among the largest shopping malls in the United States, having been ranked 18th largest in the United States by the American Studies department at Eastern Connecticut State University Shopping Mall Studies.

–Westfield construct a 163,000-square-foot (15,100 m2) "entertainment lifestyle precinct" at the mall that will include the theater and 10 specialty retail stores, along with a 158,000-square-foot (14,700 m2) parking lot below the new wing. New stores, complemented by the new 16-screen AMC Theatres, include a relocated Borders, Dunkin' Donuts/Baskin-Robbins, Origins, Ruby Thai, and Sunsights by Solstice. The mall celebrated its 50th Anniversary with the new expansion and stores opened on May 25, 2007.

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Steps taken to improve localized Marketing…– Searched out opportunities with Mall Marketing

– Received FREE kiosk to advertise location and products

– Participation in Mall FabFinds weekly brochure distributed throughout Mall and on Mall website

– Participation in Mall promotional events such as: launch of FabFinds 4 table demo, 4th of July Lottery/Scratch off game

– Participation in Mall Marketing Manager’s Panel

Measurable Results…– Transactions have increased

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Participation on Mall FabFinds Weekly Promotion

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

FREE Kiosk Advertising Store Location

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Participation in Mall July 4th Promotion

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Suggestions to improve localized Marketing specifically for GSP

IDEA #1 - Store Grand Re-opening effort

IDEA #2 - Customer Re-activation/Win-back program

IDEA #3 - Customer Acquisition Program

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Suggestions to improve localized Marketing, why we need Corporate help

IDEA #1 - Grand Re-opening Campaign• We want to get FY10 off to a good start, but corporate global

marketing efforts are not enough if customers don’t know we are in their backyard.

– A strong DM campaign data-mining old customer lists (since 2006) with specific offer only good at GSP Retail Store for these “Special” customers. What has currently worked from Corporate level was the Modern Friction Postcard “We Miss You”. We had 52 Redeemed Cards. If mailing was 50,000QTY, and each store had a list of 330, GSP had a response rate of 16%

– Store Signage to attract attention– Possible one day event with entertainment, speaker, specialists, etc– To take place July/August to boost sales, announce new product

launches, announce to customers where their favorite store is now located

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Suggestions to improve localized MarketingIDEA #2 - Customer Re-activation/Win-Back Program

• A successful variable data campaign– A stronger DM campaign data-mining old customer lists (since the store

opened) with specific offer only good at GSP Retail Store offering customers the Product they use most for FREE.

– We have the data capture of customer preference

– We have the product photos

– We have customer addresses

– We have RFM behavioral data (Recentcy, Frequency & Monetary) values

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

A successful variable data campaign Case Study

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

A successful on-demand, variable data campaign Case Study

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Suggestions to improve localized MarketingIDEA #3- Customer Acquisition and Awareness Program

• Start a conversational marketing program to educate new customers on where we are located at Garden State Plaza and what the “New” Origins Brand has to offer– Email/Postcard Integrated Program

1. “Discover Origins with our Compliments” During these economic times, Origins as a courtesy to our customers we would like to extend an invitation for a complimentary facial to Try Before You Buy. We know how hard it is to select the correct skincare products. With this complimentary facial, you can be assured of your purchases with us. (FREE Facial Offer)

2. Get a FREE Guide to Skincare with Facial (Step by Step How To Wash Your Face)

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Cost Effective Production Case Study

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Cost Effective Production Case Study

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

Interactive Devices to Drive In-Store Business

Origins Garden State Plaza Localized Marketing to Drive Loyalty and Sales

– All these marketing efforts can be addressed on the local level for not only GSP but for all Retail Stores. There are a multitude of vendors supplying Out-of-the-box, turn-key solutions that involve little to no set-up costs, behave on a web-based system such as our Staples link and are scalable to provide Corporate with as much or as little control as needed and/or desired.

– Marketing tools such as web-based email blasts, mailing abilities, local ad placement, mass phone calling etc. can help improve each store’s profitability by getting time consuming local marketing efforts OUT of the hands of managers and guides, driving business to stores and getting managers and guides back on the floor to service customers 100%.

– Direct Benefits would be Improved sales, creation of more top stores, improvement of customer service.

– Indirect benefits would be consumer education, therefore improving return rate; increased sales volume, therefore lowering selling costs; more engaged employees, therefore lowering turnover.