DSW Consumer Segmentation

Designer Shoe Warehouse (DSW)Consumer Segmentation

Emily Barr

Kate Blickenstaff

Kristen Falencki

Devinne Kelly

Rachel Roman

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OVERVIEW July 1991- Officially incorporated July 2005- IPO under ticker symbol ‘DSW’

Branded footwear and accessories retailer

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OVERVIEW

Focus (mission statement):• Distinctive shopping experience • Satisfies rational and emotional needs• Vast, exciting assortment• In-season styles• Convenience and value

• Recent advertising campaign:• “It’s where you get those shoes.”• DSW Fall 2011 Commercial

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PRIMARY CONSUMERS General Consumer Characteristics

• High quality products• Value-seeking• Love to shop• Fashion conscious• DSW rewards • Fiscal year 2010

• 90% of sales came from rewards members

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CONSUMER PROFILE TRANSFORMATION

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CONSUMER PROFILE TRANSFORMATION

Two factors impacting consumer profile:

(1) Economic downturn “Trade-in customers” Increase in awareness among the significantly affluent Inventory increases to luxury brands

(2) Introduction of new product categories

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CONSUMER PROFILE TRANSFORMATION

Two factors impacting consumer profile:

(1) Economic downturn

(2) Introduction of new product categories• Kids’ shoes• Private label merchandise

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CONSUMER SEGMENTATION STRATEGY

Consumer Insights: Segmentation Strategy

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CONSUMER SEGMENTATION STRATEGY (Continued)

Social Consumer Characteristics• Brand Strategy: Mixing luxury with bargain pricing

• High-end labels• Fashion and status are important• Celebrity influence

Cultural Consumer Characteristics• Brand Strategy: Mixing luxury with bargain pricing

• Economic downturn • Increases in discount shopping• Balancing fashion and budgeting

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CONSUMER SEGMENTATION STRATEGY (Continued)

Personal Consumer Characteristics• Brand Strategy: Mixing luxury with bargain pricing

• Internal rewards• Stretching a dollar and bargain-hunting• Setting a family standard

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COMPARING CONSUMER PROFILES:

DSW VS. COMPETITORS

Similarities Differences

Shopping approach Vast quantity and assortment

Provide value and fashionable styles

Organized and clean

Zappos: same niche/focus Test Stage

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COMPARING CONSUMER PROFILES:

DSW VS. COMPETITORS

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OVERLOOKED CONSUMER SEGMENTS

Potentially missing consumer segments

Main consumer segment focus

Implementation of new product categories

66%

15%

13%

6%

Growth Opportunities

Women'sMen'sAthleticsAccessories

“The product assortment of each store is dependent upon the demographics of the retail store location” (DSW 10K, 2010).

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Thank You