Designer Shoe Warehouse (DSW) Consumer Segmentation Emily Barr Kate Blickenstaff Kristen Falencki Devinne Kelly Rachel Roman
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