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