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Pier 1 Imports O2 S Case Study Final (2)

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Stacie Susens – Resolution Media Brett Goffin – Google, Inc. Pier 1 Imports:  Online to Store
Pier 1 Imports: Company Background The Company North America’s largest specialty retailer and original global importer of unique home furnishings Annual Sales $1.2 billion Store Locations More than 1,000 E-commerce Eliminated in 2007 – all sales come from in-store transactions Marketing Total marketing investment is 4-5% of sales allocated across direct mail, shared mail, TV, newspaper and online. Highest concentration in direct mail.
Pier 1 Imports: Marketing Challenge The Challenges Objective Support hypothesis that marketing dollars spent on Paid Search advertising results in an increased level of in-store sales. Sales Goals Increase sales across all store locations Return of Marketing Investment Spend marketing dollars more efficiently Economic Downturn Offset slow retailing environment especially for furniture and high consideration purchases
Pier 1 Imports:  Online to Store  Test Background ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pier 1 Imports :  Online to Store  Test Details Test Search + content Control None *Control stores matched test stores based on: geographic proximity, seasonality, same store sales, percent of sales coming from furniture, weather, etc v 1 Pier 1 Imports shared sales, unit and transaction data for purposes of test design and performance analysis. Resolution Media search marketing agency of Chicago helped build, track, & monitor campaigns 2 59 test  markets saturated with Google search and content ads for Pier 1 Imports brand terms and furniture category terms vs. 93 control markets that received no online media in test categories 3 Each test store’s performance measured against a well-matched* set of control stores to minimize noise; analysis allowed insight into performance by DMA, demographic, etc.
Pier 1 Imports : Online Ads Online Ads Unique Benefits of Online Actual ads Pier 1 Imports®  Amazing Deals on Fresh Fall Looks  at Pier 1’s Fall ‘N Groovy Event!  www.Pier1.com Sample ads Pier 1 Garden Party   Celebrate the Heat Wave at Pier 1  Stylish Outdoor Furniture Available www.Pier1.com Pier 1 Clearance   75% Off Tomorrow Only Cushions, Mirrors & Rugs at Pier 1 www.Pier1.com 1 Low production cost :  does not require the heavy investment of most offline media;   from postage to printing costs  to TV production. 2 Rapid and relevant:  online ads reduce time to market and offer advertisers flexibility to react instantaneously to market changes. Offline media execution usually requires from several weeks to months of lead time . 3 Minimal inventory exposure:  online flexibility means it does not carry the heavy risk of   printed books that require retailer to stock all advertised inventory. 4 Strong ROI:  online ROI calculation includes cost of media and development of creative. Offline ROI must factor in additional costs such as staff, printing, production, etc.

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Pier 1 Imports O2 S Case Study Final (2)

  • 1. Stacie Susens – Resolution Media Brett Goffin – Google, Inc. Pier 1 Imports: Online to Store
  • 2. Pier 1 Imports: Company Background The Company North America’s largest specialty retailer and original global importer of unique home furnishings Annual Sales $1.2 billion Store Locations More than 1,000 E-commerce Eliminated in 2007 – all sales come from in-store transactions Marketing Total marketing investment is 4-5% of sales allocated across direct mail, shared mail, TV, newspaper and online. Highest concentration in direct mail.
  • 3. Pier 1 Imports: Marketing Challenge The Challenges Objective Support hypothesis that marketing dollars spent on Paid Search advertising results in an increased level of in-store sales. Sales Goals Increase sales across all store locations Return of Marketing Investment Spend marketing dollars more efficiently Economic Downturn Offset slow retailing environment especially for furniture and high consideration purchases
  • 4.
  • 5. Pier 1 Imports : Online to Store Test Details Test Search + content Control None *Control stores matched test stores based on: geographic proximity, seasonality, same store sales, percent of sales coming from furniture, weather, etc v 1 Pier 1 Imports shared sales, unit and transaction data for purposes of test design and performance analysis. Resolution Media search marketing agency of Chicago helped build, track, & monitor campaigns 2 59 test markets saturated with Google search and content ads for Pier 1 Imports brand terms and furniture category terms vs. 93 control markets that received no online media in test categories 3 Each test store’s performance measured against a well-matched* set of control stores to minimize noise; analysis allowed insight into performance by DMA, demographic, etc.
  • 6. Pier 1 Imports : Online Ads Online Ads Unique Benefits of Online Actual ads Pier 1 Imports® Amazing Deals on Fresh Fall Looks at Pier 1’s Fall ‘N Groovy Event! www.Pier1.com Sample ads Pier 1 Garden Party Celebrate the Heat Wave at Pier 1 Stylish Outdoor Furniture Available www.Pier1.com Pier 1 Clearance 75% Off Tomorrow Only Cushions, Mirrors & Rugs at Pier 1 www.Pier1.com 1 Low production cost : does not require the heavy investment of most offline media; from postage to printing costs to TV production. 2 Rapid and relevant: online ads reduce time to market and offer advertisers flexibility to react instantaneously to market changes. Offline media execution usually requires from several weeks to months of lead time . 3 Minimal inventory exposure: online flexibility means it does not carry the heavy risk of printed books that require retailer to stock all advertised inventory. 4 Strong ROI: online ROI calculation includes cost of media and development of creative. Offline ROI must factor in additional costs such as staff, printing, production, etc.
  • 7.

Editor's Notes

  1. Strategy decision reasoning: This decision was made in an effort to help increase the company’s overall average ticket as well as increase furniture sales.
  2. A significant caveat to this test is the resulting lift in furniture sales. The 1.4% lift experienced specifically in the furniture categories during this five week test period is noteworthy because the average consideration for furniture purchases is greater than the five week test period. Additionally, the test was conducted in a timeframe that was tough for any retailer. The achieved sales lift is directly correlated to the level of Paid Search impressions and website visits.