Sperry Apparel marketing plan
Executive Summary
Company Profile
Market Segmentation & Targeting
Situation and Company Analysis
Ethics and Social Responsibility
Marketing Information and Research
Customer Decision-Making Profile
Positioning and Differentiation
Branding
Marketing Mix (4Ps)
Product Strategy
Pricing Strategy
Place: Distribution Strategy
Promotion: Integrated Marketing Communications Strategy
Budget
Action Plan
Risk Factors
Attributions
Sperry is currently a shoe brand with multiple collections looking to expand into apparel. Adding apparel not only will add to the company for higher profit but customers will also love the addition. Lastly, Sperry will become a one stop shop.
The target segment will be the working middle class. People with or without growing families.
Sperry has been a well-known brand since 1935 with reasonable priced high-quality shoes.
· Add apparel to the brand
· Increase in profit/sales
· Increase in customer base
Company Profile
● Company Name: Sperry Top Slider
● Industry: Shoes and Apparel
● Headquarters (city, state, country): Richmond, IN, United States
● Year founded: 1935
● The number of employees: 351
● Annual revenue (estimated): $50 Million
● Major products and/or services: Boat Shoes
● Target customers: Men, Women and Children
● Distribution channel(s): Retail/Department Stores and Online
● Key competitors: Johnson & Murphy, Dr. Martens & G.H. Bass
● Link to website: Sperry Boat Shoes for Men, Women, & Kids | Sperry
● Link to Yahoo! Finance information page (for public companies): N/A
Market Segmentation & Targeting
· Providing comfortable and affordable stylish shoes boot and slippers to those who may have a harder time finding good shoes
· Potential customers are men, women, and children. Those who want many options in style, call, and size. There is a shoe for everyone, a one stop shop.
· Key Segments in this market include material, region, type, distribution channel and end-user
· 2 Segments this company serves is the Behavioral and they are Psychographic. 1) Behavioral segments specifically around-users. When customers find a produce that has excellent quality and affordable, they tend to be repeat customers and advertise the product. 2) Psychographic segment, specifically lifestyle. This product comes in different material and styles to appear to all lifestyles whether you are going to work, play or stay home.
· This marking plan focuses on both behavioral and psychographic because they are the main two that will help the company succeed. With these segments there will be profit and growth opportunities because there is a market for it and will always be. All comes down to the strategy.
Situation and Company Analysis
Factors that affect our customers purchasing power and spending patterns include current inflation, job loss and the state of the current pandemic. The U.S. is currently going through both a recession and recovery state. The pandemic in 2019 cause major shutdowns around the world which led to a recession with the highest unemployment rates. In 2021 the economy has tried to recover from months of loss and even in 2022 we still have not recovered.
Finding staff will be problematic. Not only with the issue of getting people to work but also dealing with illness and unexpected call offs. The current interest rates are and has been increasing due to demand and cost of material. Everyone is trying to recover. Consumer confidence has shifted as more need to focus on needs rather than wants and with the shut down and cancellations of activities people are staying home.
Within the Shoe industry we must focus on diverse ways to market. Not only in stores but via social media on all platforms, online ads, and commercials for example. Also, they world seems to be going paperless when it comes to cash. There are many options to pay other than your basic credit/debit card. And there are now new systems that allow you to make installments like Afterpay or Klarna. Our company must ensure we have enough payments options available to keep the customers we have and get new ones.
The trends in our market include style, comfort, and affordability. The seasons change just like people do. There are always new intranets in the market from small too big. Our company must always follow customer needs and wants. By getting constant feedback whether good or bad.
Sperry currently has six top competitors according to Zoominfo. They include Johnston & Murphy, Dr. Martens, G.H. Bass, Shoemail, Scarosso and Hotter.
Competitors
Key Selling Points
Johnston & Murphy
Also sells clothes and accessories
Dr. Martens
Appels to younger generation, more “hip”
G.H. Bass
Co-Company of Bass Outdoor known for quality
Shoemail
One stop shop for assorted brands of shoes in one place
Scarosso
Very versatile collections of Italian shoes
Hotter
Offer Comfort-Tech which allows consumers to choose different cushions
Political environment affects our business regarding taxation policies. The government can change tax laws which will change pricing good or bad on the product which can affect sales. Also, foreign trade laws regarding material can affect product on hand.
HELPFUL Ideas
HARMFUL Concerns
Internal
Strengths
● Strong brand presence in department stores.
● Content Marketing, Sales, Networking
● Multiple shoe collections and styles.
● Made for casual wear, leisure, and the sailor in you.
● Value brought to customers is long lasting, durable shoes at an affordable price.
Weaknesses
● Weak brand presence in retail stores
● Lack of execution
● Lack of accessories and clothing
● Current Services fail as they only offer shoes. Customers want a one stop shop.
● Current services fail to bring value as customers have to go to another sire or store to find the matching attire unlike Nike, Eastbay, or Nautica
External
Opportunities
● C-PESTs the company could take advantage of is being more competitive with marketing.
● The target markets unfulfilled needs are having clothing and outerwear to match shoes.
● Emerging target market is the new generation that works but dresses business casual.
● Ways the company and competitors can benefit by working together is by launching different collections to reach all target markets.
● Collaborating with customers via survey can help to build brand presence or allowing customers to create their own shoe.
● Market demand is steady but has decreased as work from home and become the new normal.
● Changes in the government has inflation at an all-time high, which has made prices for material skyrocket.
● Global issued to continue to make an impact is COVID-19.
Threats
● Tactics that competitors use to pursue customers include promotions, discounts, and free shipping.
● Strengths of the company’s biggest and or emerging competitors is one stop shopping, multiple collections, and multiple styles of shoe.
● Competitors’ product or services are superior to the company’s offerings because they are targeting multiple markets and have good strategies in place.
● Competitors are likely to respond to any changes in the way the company markets by having a great marketing team that is aware of customers wants and needs to be implemented.
● The company is behind in adopting modern technologies for marketing as they do not offer enough ways to pay such as Afterpay, Klarna etc.
● International competitors are taking away market share but offering the “same” shoe but at low price and quality. Also offering free shipping but not as fast as the actual company.
● Customers dislike that most of the shoes still have a “boat” shoe style. They like to comfort but want more.
● Market demand is decreasing due to the pandemic. No work equals no pay and work from home equals no shoes.
Mission: “To create a timeless and durable classic you can count on and create life’s memorable experiences on and off the water”
Objectives: 1) To be become the top selling shoe company, 2) To continue to recreate and transform the brand for the better, 3) To always value customer’s feedback. The company’s goal to becoming the top selling shoe company is by expanding where our product is sold. Transforming the brand by adding accessories to the collections from hats, gloves, and outerwear within the next three years. Continuing to get feedback from current and potential customers to ensure we understand the needs and wants to improve and stay on track.
What Sperry is currently doing regarding corporate social responsibility and pursing sustainable business practices include: creating a sustainable future by building products and partnerships that are designed to protect water. They also now have a SeaCylced Collection where shoes are made with recycled canvas, reclaimed leather and recycled rubber. Sperry’s goal is that by 2024, 50% of their models will be part of the SeaCycled Collection. Lastly, Sperry is reducing packaging by eliminating single-use plastic.
I would recommend Sperry continue their current practices but also include/allow customers input regarding specific materials that can be used and over create your own shoes.
An important problem that needs to be solved with Sperry is how to add clothing to the brand without diminished history of shoes.
The information Sperry needs to make effective decisions include Cost, Customer Perception, Price and Product Information
For Sperry it is recommended that they us Primary research such as focus groups and Surveys. I recommend this approach as Sperry is not a clothing brand and if they want to get any positive/negative response it needs to be from customer feedback.
The primary decision makers in my target segment are:
· Buyers of all ages
· Buyers who like stylish, affordable, comfortable shoes
· Our buyers make buying decisions based off occasion, price, and comfort
The primary problems out products help solve is the buyers need to have shoes for work and leisure and provide assorted styles for different seasons worldwide. Our product also solves the want to spend less monies and be stylish at the same time.
Our target segment is based off the three following categories:
· Personal and Demographic Characteristics which include:
· The Millennial customers and Generation X buyers.
· Gender: Female (single or married with kids) who shop for themselves or for the family.
· Life Stages: Independent youth working a 9 to 5 or entrepreneurs along with those looking for comfort.
· Lifestyle: The working middle class.
· Social and Psychological Characteristics
· Motivation to satisfy the need of style and comfort.
· Believing the brand is good enough to make a purchase or even multiple.
· Business casual work environment where the buyer who looks for a shoe that can be dressed up or down and be work in social settings.
· Situational Characteristics
· Brandy Loyalty: Most buyers find a brand(s) they like and stick to them. For example, I have very flat feet. For the last 20 years I have tried multiple brands and have found some good and bad. I have stuck to Sperry, Nike and Uggs. Those fit comfortably, are of excellent quality and affordable.
· Buyers make purchase of our product as a want and a need for certain occasions.
· Price is also a huge factor as price can make or break a final sale and if priced properly buyers will keep coming back.
Three marking tactics that would be effective at reaching its target market include: Promotions, TV Ad’s, and Social Media Marketing.
· The Millennial generations is a specific target group that uses multiple social media platforms including Twitter, Facebook, Instagram to name a few. By using these platforms to market the product by just having a page or ad would help substantially.
· Deals and Promotions are always good tactics from BOGO, free shipping etc. Having frequent deals/sales not only keep current customers but attracts new customers as well.
· Lastly, TV ads are still especially important especially during prime-time event such as the Super Bowl, NBA Championship, Olympics, World Series etc. Ads for adults also need to be placed on the children’s channels (nick jr., cartoon network) as parents are watching those channels with their kids.
· Reasonable priced product with high value then the competitors
· Our collections offer assorted colors and styles to fit your specific needs. Our products are also easy to clean and maintain.
· The benefits of buying our products are that you can be stylish and comfortable all year round. The convenience of being able to by online or in store. We offer multiple methos of payment including affirm. Lastly, there are always promotions, sales, and discounts. Sometime multiple at a time.
· The market niche I want to fill is the lower-middle working-class citizens with or without family. The position strategy I would you is the “Best fit for Customer” Approach. As our customers generate the dales. There is not us without them. We want to ensure the product meets their needs. This is the right approach because we want to ensure our market is heard and always satisfied.
· “To the middle-class worker Sperry is the only stylish yet affordable shoe that you can look good in for work and for play because we are timeless”
I do recommend repositioning for Sperry. Reasons are that the more competitors that offer the one stop experience. With that experience you can get the shoes and matching outfit at the same time without going to multiple stores. Another reason is the brand itself. People love the brand and want/should wear it from head to toe.
The brand I am trying to expand is the one that can never be forgotten. One that can inspire the world to live life fully
“To ignite the human spirit by delivering the promise of sea-based adventure and discovery, providing customers around the world with sure-footed confidence and style to pursue their own odysseys”-Sperry
Describe your brand voice and personality using the is/is never template:
● Sperry is authentic, affordable, stylish and a timeless classic
● Sperry is never: dull, outdated
A brand strategy that will help build and contribute to what our segment market wants includes:
· Issuing a survey with every purchase or just online via the website.
· Having a person(s) that checks survey responses for both positive and negative feedback to take back to the marketing team.
· Start small with tops i.e., free shirt with a purse of $100 or more. So, customers can get a feel for what is yet to come.
Sperry is currently in the Maturity Stage and here is why:
· Sperry has been around since 1935
· The company at first only catered to the boaters who needed non-slip shoes to prevent injury.
· The company was acquired by the U.S Navy in 1939 to now manufacture shoes for sailors
· Sperry now offers multiple types of shoes including the boat shoe, sneakers, boots, flats, loafers, and slippers.
· Produces now cater to not only men but also women and children
· Since 2021 Sperry has opened two brick and mortar stores and forty outlet locations in the U.S.
Sperry is working at an elevated level of quality and consistency they have been able to continually evolve. Features that can be added to the brand include having outerwear, accessories tops and bottoms. The design delivers to consumer’s values as they cater to all styles and age groups. The only improvement I would add is adding more clothing to the brand.
The pricing for Sperry products can vary. Depending on which footwear you are looking at/or a specific collection. When looking at the competitors and their prices you will see they also have a wide price range depending on the shoe style.
Regarding customers and pricing, I do think our customers are content and have been sincev1935. Sperry also continues to have special promotions, discounted items due to season change and sometime free shipping. Going forward with Sperry even if clothing is added to the brand, I do not believe the price will increase.
In conclusion what Sperry’s pricing says about their product is that they are affordable, dependable and of excellent quality and value.
Currently Sperry used a retail distribution approach. Missed opportunities include:
· Less Sales
· Less Profits
· No one stop shop experience
· Being able to expand the brand
I do think the Sperry would benefit if they used both retail and wholesale channels. Sperry already has the one channel in used but wholesale would create more avenues. Customers want the one stop shop. For example, Sperry shoes are sold on amazon but the “sold by” retailer is not Sperry. Why let someone else get the profit. If they sale wholesale, then the purchaser must deal with sales and losses. Sperry already has multiple retail outlets
Approach
Sperry will use Social Media platforms plus sales promotions both online and in stores to engage customers both old and new about the new product. Our campaign will target our audience by bringing awareness to the brand changes.
Goal
In consideration of the of your previous analysis, you need to identify at least one goal for the campaign.
● Audience: Working middle class
● Goal: To add profitable appeal to the existing brand
● Call to action: Try me for free with every purchase
Messages
1) Primary Message: Sperry Provides affordable, comfortable shoes now adding apparel to its brand
2) Message Pillar: Sperry invites you to try our new product. You love our shoes, now you will love out clothing.
3) Proof Point: We have been around since 1935 providing timeless products.
4) Call to Action: Try me for free with any purchase.
Promotional Mix and IMC Tools
Digital Marketing
● Website and social media: ads can be on all platforms showing the change. On the website that will be a running banner and link to the new apparel.
Direct Marketing
● Postcards: Reaches new and existing customers. Shows new apparel and has discounts and coupons posted.
Sales Promotion
● Free shirt with any purchase: with offering and item for free gets customers attention and can have higher expectations for the rollout
Sales Alignment
Sperry is currently in Stage 3 of the sales process. What the brand is trying to do is produce a solution to resolve concern of customers wanting apparel and a one stop shop experience.
Measurement (KPIs - Key Performance Indicators)
● Total sales/revenue: Higher Sales means the campaign is working and customers are aware of the new product.
● New/incremental sales: Shows if customers are aware of the addition
● Engagement: The more comments, shares and reviews shows if the apparel is something to move forward with or stop.
Item
Purpose
Cost Estimate
Postcards
Mailings to customers to advise of the change and promo
$2,600
Social Media Ads
To advise persons on social media of the additions
0.97-3.56 per click
T-Shirts
For the free with any purchase campaign
$22 per 25 Shirts
Website Banner
For online customers making purchases
In-House
Estimated campaign impact: $5,000 for the campaign
Timing
Activity Type
Brief Description
Audience
Owner
3.1.2022
Fabric
Choose a fabric for the apparel
Apparel Team
Bill
3.15.2022
Online update
Choose how the banner online will look and placement
Marketing
Jason
4.1.2022
Order
Order t-shirts for campaign roll-out
Purchasing
Sandra
4.1.2022
Postcard
Pitch and Submit ideas
Marketing
Jason
5.1.2022
Review
Check merchandise, postcard, and website info for approval
Entire Team
5.23.2022
Final
Approval and/or revisions
CEO & CFO
Sperry
6.1.2022
Launch
Update website and send mailings
Customers
· The campaign execution is not strong enough
· Customers will not be happy with the change
Steps to ensure/reduce risks are listening to any complaints, following up on reviews while continuing to check progress.
.
https://www.wolverineworldwide.com/our-brands/sperry-top-sider/
https://www.sperry.com/en/sustainability/
https://www.sperry.com/en/about-us/
https://www.webfx.com/social-media/pricing/how-much-does-facebook-advertising-cost/
https://www.customink.com/products/t-shirts/made-in-the-usa-t-shirts/112
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