Marketing Plan
-
Upload
jennifer-davis -
Category
Documents
-
view
148 -
download
0
Transcript of Marketing Plan
Footloose and Fancy �1
""""""""""Foostloose & Fancy "
Marketing Plan """"Jennifer Davis
Dr. Julia Cronin-Gilmore Bellevue University """"""""""""""""" """"""
Footloose and Fancy �2
Table of Contents "Executive Summary ………………………………………………………………………….… 3
Situation Analysis ………………………………………………………………………….……4
Internal Environment ……………………………………………………………………4
Customer Environment …………………………………………………………….……5
External Environment ………………………….………………………………………..7
SWOT Analysis …………………………………………………………………………………8
SWOT Matrix ……………………………………………………………………………8
Developing a Competitive Advantage …………..……………………………………….8
Developing a Strategic Focus ……………………………………………………………9
Marketing Goals and Objectives …………………………………………………………………9
Marketing Strategy ………………………………………………….…………………………..10
Primary Target Market ………………………….……………………………………….10
Secondary Target Market ………………………………………………………………..10
Product Strategy …………………………………………………………………………11
Pricing Strategy ………………………………………………………………………….11
Distribution or Supply Chain Strategy …………………………………………………..11
Integrated Marketing Communication Strategy …………………………………………11
Marketing Implementation ………………………………………………………………………12
Cultural and Structural Issues ……..……………………………………………………12
Tactical Marketing Activities ……………………………………………………………13
Evaluation and Control…………………………………………………………………………..13
Formal …………………………………………………………………………………..13
Informal …………………………………………………………………………………14
Marketing Audits ………………………………………………………………………..14
Refeneces ………………………………………………………………………………………..15
"""
Footloose and Fancy �3
Executive Summary
The goal of the marketing plan for Footloose and Fancy for the year of 2015 is to
increase the number of new customers and to increase the number of customers returning to the
store to purchase more products. By increasing new customers by 5 people each month it will
keep the business growing and also introduce to the community that the downtown location now
carries more then just shoes and accessories. Also by giving retiring customers incentives to
purchase again loyal customers will continue to purchase. To support these goals community
and group actives will be planned to introduce the new products. A customer history database
will allow returning customers to be tracked and rewarded.
New managers will have to be hired to accomplish and achieve the overall plan.
Employees will have to be committed and knowledgable about products to continue to provide
top of the line customer service that the stores are known for. Incorporating all of this will
continue to grow the business while still keeping loyal customers.
""""""""
Footloose and Fancy �4
Situation Analysis
Footloose and Fancy is a locally owned shoe store located in Lincoln Nebraska. The
store was founded in 1975 by Marla McCabe in downtown Lincoln. Since then a second
location has opened in east lincoln to try to ignite the interest of consumers who don’t want to
find parking downtown (Switzer, 1995). The downtown store has now changed focus from just
shoes to also incorporate a large amount of clothing. With doing this the stores mission
statement includes doing good and being good with focusing more on environmentally friendly
and outdoor clothing (Footloose & Fancy expanding downtown, 2012).
The Internal Environment
When the second location in east Lincoln began to profit more then the original location
downtown the current owners Matt and Jane Stricker decided to change the focus of their
original locatiokn. The marketing goals and objectives changed to accommodate the new
clothing lines brought into the store. The store gained the well known brand North Face as it
was to be a North Face concept store. With the original shoe store priding itself on the
traditional “sit and fit” concept the new clothing addition to the store must refocus the store to a
“do good, be good concept”. The objectives changed to a environmentally friendly, community
conscious organization trying to benefit the greater good. The products brought into the new
concept store other than North Face include Patagonia, Kuhl, Lole and Mountain Hardware
among many others. The idea behind these products all encompass lessening the footprint left
behind.
Footloose and Fancy has a extensive background in the shoe industry. With it being the
third Birkenstock store opened in the United States it has gained quite the following in the shoe
Footloose and Fancy �5
industry. With the new clothing side opening it needs to gain the same type of following to keep
customers. The new layout downtown makes it hard to see the shoes which people originally
came to purchase. This has been quite frustrating for many customers. It has separated the
clientele that the two stores are seeing. The emphasis of the two stores are seen drastically
different. Shoe versus clothing. The positive impact that can been seen with the clothing is that
it is drawing in new customers. The negative impact is that when customers are visiting the
downtown store for shoes they are getting frustrated with how difficult it is to shop for shoes
there.
The Customer Environment
Footloose and Fancy’s current customers consist of heavily of Birkenstock lovers. Loyal
customers that have shopped at the downtown location for over 35 years. Since then many shoe
brands have been added to attract a variety of different people. With the location being so close
to the University of Nebraska Lincoln campus the downtown store does draw in many college
students. College prep styles like Tom’s and Sperry Topsiders have been a couple of many
additions to products offered in the stores. The new addition of clothing in the downtown
location has started to attract the outdoor enthusiast with clothing for many outdoor needs
including but not limited to running, hiking and yoga.
Customers are able to purchase the products offered at Footloose and Fancy else where in
Lincoln, mainly retail based businesses. Many shoes stores in Lincoln offer Birkenstock as well
and some of the other major brands carried in the two stores. Large department stores tend to be
the biggest threat with giving customers more of a selection. Department stores have the square
footage to be able to display products so customers can see each item in a different department.
Footloose and Fancy �6
Customers have become very price sensitive in terms of purchasing the items offered in
both stores. With the prices of products being on the high end consumers have began to rely on
discounts. Footloose and Fancy has offered Groupons in the the past and have seen many issues
with this. When the Groupon is available there is a spike in purchases. After the Groupon has
ended business tends to slow down drastically. Loyal long term customers have also began to
rely on discounts with as many coupons that have been issued. Another event that influences
customer behavior is the summer sale that is held every year. This has been a long tradition
where shoes of all types are brought into the stores to put a significantly discounted price,
anywhere from 25 to 75 percent off. Many customers wait out the regular purchasing seasons to
see what can be purchased at these discounted prices.
During holiday seasons the inventory has been hard keep up with. With high demand
items being out of stock from wholesalers it puts a stress on the company with loyal customers
having to shop else to purchase gift items. Though this has been seen most places with the high
demand items.
Potential customers have began to shop else where due to the high price point of items
offered in the two stores. Betula is a brand that has been introduced into the market at a much
smaller price tag (Dougherty, 2006). The company was founded by one of the Birkenstock
brothers there for can release the product with the name Birkenstock on it. The same look can be
achieve at a lesser quality and lower price tag.
"""
Footloose and Fancy �7
The External Environment
As identified earlier in the paper there are many competitors that effect Footloose and
Fancy. Large department stores like Scheels and Dillard’s offer the same products. There are
also many smaller retail companies that can be accounted for as threats to the company. For
instance a small local retail store named Moose’s Tooth has been in Lincoln since 1983 offering a
variety of outdoor clothing and also shoes that both companies now carry (Moose’s Tooth Inc,
2014). Moose’s Tooth has a much longer background in supplying Lincoln with outdoor
clothing versus Footloose and Fancy (Carr, 1993).
Other shoe companies like Brown’s and Comfort Plus also offer the “sit and fit” scenario
that Footloose and Fancy used to pride their service on. With still carrying many of the same
brands these small stores give consumers another outlet for the products.
Lincoln has continually grown since 2010 with a growth rate averaging at 4 percent
( United States Census Bureau, 2104). The median income per house from 2008 to 2012 is
sitting at 49,504 dollars (My Best Segments, 2014). With this being said the high price point of
products at Footloose and Fancy would tend to be out of reach to a good portion of the
population. This is creating the price sensitivity and consumers seeking out discounts for the
products. About half of the population is female which is in favor for the locally owned store
due to over half of their inventory being women's shoes and clothing.
Technological advances have affected the company with consumers being able to seek
out discounted prices else where. The demographics affect the most from this are the age range
of 21 to 34 year olds. These demographic equal a large portion of the population of Lincoln due
Footloose and Fancy �8
to the University of Nebraska, Lincoln campus. These consumers are able to use the internet to
find the best price.
SWOT Analysis
Developing Competitive Advantages " Footloose and Fancy has an advantage when it comes to introducing its products to new
consumers every year. The student population of the University of Nebraska brings in new
consumers every year. This is also a perfect place to find employees who will help develop the
network on campus. The store could use college prep to its advantage and introduce some of the
product on campus to gain a following of customers.
With the store downtown being new to the clothing industry if the store and employees
could figure out how to incorporate the “sit and fit” customer service they are know for into the
Strengths:"1. Well known for long time Birkenstock sales"2. Customer focused service to ensure proper fitting shoes"3. Two locations in Lincoln, one close to UNL campus and the 2nd location offerers easier parking
Opportunities:"1. Internet shopping becoming increasingly more popular, development of a website would benefit the company"2. UNL college campus brings in new students every year which means new consumers "3. Customer market larger with the addition of clothing "
Weaknesses:"1. Shoes poorly displayed at downtown location"2. New to the Clothing industry"3. Inventory during coupons and sales not stocked deep enough"
Threats:"1. Large corporations have a wider selection of products"2. Economic income not rising with the cost of products making consumers more price sensitive "3. More places carrying the same products offered to consumers giving them multiple outlets to purchase"
Footloose and Fancy �9
clothing side customer satisfaction would start to rise. The downtown store needs to figure out a
way to incorporate the shoes so they are visible to satisfy consumers going downtown to look at
shoes. If the store can figure out how to improve customer satisfaction at the downtown location
the threat of large corporations would become less of a problem.
Developing a Strategic Focus
The strategic focus of Footloose and Fancy after changing the downtown location to
include clothing is introducing the new products to consumers while ensuring loyal customers
they can still receive good customer service and products that they have received in the past.
"Marketing Goals and Objectives
Footloose and Fancy has two goals to focus on for 2015: Increase the number of new
customers and increase the number of returning customers.
"Marketing Goal A - Increase the number of new customers
Objective A1: Increase the number of new customers by 5 people per month. Current
employees can refer friends, family and acquaintances. Customers can participate in referring
and receive a 10 percent discount for each referral. Customers can be tracked by last name in a
customer history database.
Objective A2: Post all new product pictures and information on social media networks.
Hire a part time social media manager to continually mane the social media accounts.
"
Footloose and Fancy �10
Marketing Goal B - Increase the percentage of customers who are returning to purchase at the
stores.
Objective B1: Increase loyal customer shops by 10 percent each quarter. Customer
service and using incentives for loyal customers should increase the volume of shops. For each
return visit that results in a purchase goes towards earning a 25 percent discount.
Marketing Strategy
Primary target market
The primary target that Footloose and Fancy should focus on is young to middle age
active adults. With the downtown location adding clothing into the products offered the target
market should reflect these products. As customers seek the active clothing the shoe products can
be tied in, many of the shoes offered also reflect this active lifestyle. When consumers come in
for either clothing or shoes, add on sales can begin to occur. When customers make these add on
purchases they will begin to recognize the store for the wide variety of products offered.
Secondary target market
The secondary target market for the stores should focus on returning customers. The
stores have had loyal customers shopping with them since the downtown store has opened in the
70’s. With changing the store the consumers need to be reassured that their original needs will
still be met. With this the employees should still focus on their “sit and fit” customer service and
while helping the consumers they can talk about add sales. The customer knowing that the
products and services they used to receive from the stores is still available to them will keep
them coming back.
Footloose and Fancy �11
Product Strategy
The major focus for product strategy should remain on customer service and selling the
benefits and features offered. Since the products are anywhere from mid to high end showing the
value of the product will be key. Getting representatives from product companies could be a
benefit in educating the customers or even the employees about the benefits of each product.
Pricing Strategy
The overall prices for the products are usually set by each individual company. Therefor
the prices in comparison to the competition are very similar. In order to compete with the
competition due to these prices being pre-set it is necessary to come up with a strategy that
discounts the products to keep a competitive edge and keep customers coming back.
Distribution or Supply Chain Strategy
The overall distribution plan is focusing on the two stores and online sales. Currently
most sales are done via the stores. Developing a website that will show all products offered and
sizes available will create a new distribution channel that will benefit by reaching a great area of
distribution.
Integrated Marketing Communication (Promotion) Strategy:
One marketing communication strategy that will promote the goal of gaining more new
customers every month is holding a event for the public to attend to promote the products that
Footloose and Fancy �12
are sold at the stores. Pushing these events will help introduce the products to a greater amount
of people. With the stores primary target market being aimed towards outdoor and active people
events like group runs and yoga classes will help advertise the products Footloose and Fancy has
to offer for this market. Coming up with an event every month will reach out to the community
and get consumer actively thinking about the stores. To reach the secondary market of returning
customers holding a promotional event for each quarter for the loyal shoppers will keep them
coming back. A promotion where the second purchase made every quarter the customer will
receive 25 percent off the second purchase. This will help increase sales and give the customer a
reason to return.
Marketing Implementation
Structural Issues
A few positions will need to be added to the company to implement the new marketing
strategy. A position for someone to manage social media will need to be added. This position
will be in charge advertising the events that will be taking place by each week updating the sites
with information of when and where these events will take place. It will also daily allow product
information to be posted daily with information on new products or even just knowledge about
different products sold in the stores. The second position that will need to be added is a training
manager. To keep the “Sit and Fit” standard of customer service scheduled visits from
representatives from each brand sold in the stores will keep employees informed about products.
Lastly the company will have to hire a new website manager. This employee will be responsible
for keeping the website up to date with the new product and sizes available.
Footloose and Fancy �13
Tactical Marketing Activities
Evaluation and Control
Formal Controls
Additions in human resources will need to be hired before this plan can be implemented.
For instance there is no social media or training manager on staff currently. I would suggest that
both of those be hired and trained before proceeding with the plan, hiring from within or
promoting an employee with knowledge of the products would speed up the process. Additional
research and development of a database system would be beneficial in tracking events. Sign in
sheets for each event will be necessary to track new and returning customers. The management
that is hired mud be committed to the plan. A set schedule of events should be put into place, for
instance when group runs will be scheduled and yoga classes. Also a set schedule of when new
Specific Tactical Activites
Person/Department Responsible
Required Budget Completion Date
Product Activities:"Establish a monthly training program for Employees
Training Manager N/A Ongoing
Pricing Activities:"Loyal customer program to give discounts per quarter for second purchases
General Manager and Staff
N/A Quarterly/Ongoing
Distribution/Supply Chain Activities:"Start a website that sells products actively sold in the stores
Website Manager Annual salary of $45,000
Ongoing
IMC (Promotion) Activities:"Monthly public event"
Part time Social Media Manager & Full time Training Manager
Annual salary for Social media manager of $15,000 and Training manager of $30,000
Monthly
Footloose and Fancy �14
product is released will be beneficial. This way there is plenty of time to schedule employees
needed for events and also to schedule representative forms brands to attend. In depth customer
history should be kept to tracked at each event as well as how many customers received
discounts for being returning customers. The overall performance of discounts and events
should be closely tracked in the customer history. This way it can be tracked if the plan is
successful.
Informal Controls
Having a training manager will allow the employees to gain the knowledge needed to feel
confident in their skills and knowledge about the products offered. Being knowledgable will
help with the overall satisfaction. Also gathering a product information guide can be helpful to
employees where they can go to find information about products when customers have questions.
All employees will have to be committed to the plan as well. Having a sign up sheet where each
employee can sign up to attend and help with events can help plan ahead. At least 2 employees
should help at every event along with the manager, if need be more employees can be scheduled
if events become to large.
Marketing Audits
All activities will be monitored through the customer history database allowing the
company to see which activities are working and which ones aren’t. This way discounts,
scheduling and activities can be modified accordingly. Audits should be done quarterly to assess
the progress being made. If the plan doesn’t meet the goals then the objectives can be altered.
Footloose and Fancy �15
References:
Switzer, G. (1995, Mar 14). Owners, customers find birks a good fit. Lincoln Star Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/407084598?accountid=28125
Footloose & fancy expanding downtown. (2012, May 08). Lincoln Journal Star Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1011446965?accountid=28125
Carr, M. (1993, Aug 03). Moose's tooth keeps climbing. Lincoln Evening Journal Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/407410621?accountid=28125
THE MOOSE'S TOOTH, INC. (2014). (). Costa Mesa: Experian Information Solutions, Inc. Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1571873502?accountid=28125
Piersol, D. (2006, Mar 19). Shoe store owners are step ahead of the rest. Lincoln Journal Star Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/248152934?accountid=28125
Wallace, D. (2012). How small business can benefit from social Media/Networking sites. Agency Sales, 42(8), 16-20. Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1151389378?accountid=28125
Dougherty, C. (2006, Jan 21). What's in a name? A tale of family infighting and a test of wills SPOTLIGHT. International Herald Tribune Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/318715533?accountid=28125
United States Census Bureau. (2014). State & County Quick Facts[Data File]. Retrieved from http://quickfacts.census.gov/qfd/states/31/3128000.html
My Best Segments. (2014). Zip Code Look-up [Data File]. Retrieved from http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&menuOption=ziplookup&pageName=ZIP%2BCode%2BLookup#
Footloose & Fancy. (2014). About. Retrieved from http://www.footlooseandfancy.com/about.html
Scheels. (2014). Brands. Retrieved from http://www.scheels.com/shop/en/scheels-catalog/brands
Dillards The Style of Your Life. (2014). Shoes. Retrieved from http://www.dillards.com/shop/Shoes-Women/_/N-lgakZ1jl?cm_sp=shoes-_-ddtc-_-women+shop+all+012214
"""