Brand Positioning

Case Study: Leading Footwear Retailer

Situation
A leading footwear retailer found its same-store sales growth slowing while facing increasingly aggressive competition from mass merchandisers, especially Wal-Mart. Without same-store sales growth, the retailer’s entire financial model was in jeopardy since they had only spun off with an IPO a year earlier and desperately needed to show growth to the financial community. New store openings were no longer sufficient to deliver against the Street’s (and management’s) expectations, saturation had been reached. That is, there was now a company store in virtually every shopping mall and on every shopping street in the U. S. Management’s Goal was to increase annual same store sales from 1 – 2% growth to at least 3.5%.

Solution
We completed extensive qualitative and quantitative research among frequent shoe shoppers, emphasizing: (1) current customers, (2) Wal-Mart loyalists, and (3) targets of opportunity, e.g., Hispanic, teens, etc.

The consumer research led to an agreed-to consumer “Needs Hierarchy” and a recommended 11-point/Five-Year Plan to address branding, consumer experience, and operational/logistics priorities. Additionally, our analysis led to a refocusing of the brand positioning to overtly emphasize the strong emotional bonding between loyalists and their “favorite place to buy shoes.” In short, our research uncovered a deep, emotional, literally exciting relationship between loyalists and the chain—a closeness and a bond that we have rarely seen in other businesses. Capitalizing on this bond was key to repositioning the chain toward an emotional brand and away from a focus solely on price.

Results
A new ad agency revised the advertising strategy following the recommended positioning. Within a year, same store sales increased 6.2%—double the target—and the stock price reached an all-time high. At least as important, the company has survived and thrived in direct competition with Wal-Mart, a claim that many other chains cannot make.

Contact John Rosen for more information.