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Targeting the Millennial Customer
- 1. Joins the Movement Chad Foster Indiana Baltodano Eliza Weiss Jamie Berlin Kevin Jaedon Tran Dana Bezozo
- 2. Who is the American Rag Girl?
- 3. Casual
- 4. Dreamer
- 5. Fashionable
- 7. Fun
- 8. Flirty
- 9. Youthful
- 11. American Rag Target Market “We think that she is in the know and looks for hot new trends, they just may be a little tamer than some other brands. She is, overall, our sexy ‘good girl’” – Sean Orr, Product Manager American Rag Shoes Millennial Competition Age range: 15-25 *
- 12. American Rag Customers by Age 18-19 Years 0% Unknown 10% 62+ Years 11% 20-31 Years 16% 18-19 Years 20-31 Years 32-41 Years 32-41 Years 17% 52-61 Years 19% 42-51 Years 52-61 Years 62+ Years Unknown 42-51 Years 27% Total American Rag customer base: 1.9 M Source: Purchase History 6/20/2010 – 6/18/2011, Macys Marketing Department
- 13. Spend by Age Group Total Spend: $82,612,223 Source: Purchase History 6/20/2010 – 6/18/2011, Macys Marketing Department
- 14. Millennials Care About Issues
- 15. Millennials & Causes 8 out of 10 will trust a company more if it is socially & environmentally responsible. 42.5% of undergrads believe that it is important to influence social values, which is the highest the value has been since 1993. 69% consider a company's social & environmental commitment when deciding where to shop Source: Generation Y gets involved; USA TODAY
- 16. American Rag Joins the Movement: Fashion and Philanthropy
- 17. The Tote Bag Launch • • • Join the Journey to Brazil Campaign Include Millennials Capitalize on Current Trend
- 18. The Next Step… Human Services and Health Education, Arts, Culture and Humanities Public Society Benefit, Environment & Animals
- 19. “Vote for the Tote” Competition
- 20. Millennials & Social Media 75% Social networking for Millennials has have a profile on a grown 70% since social networking 2005 site 1 out of 5 Have posted a video of themselves online Source: Social Media & Mobile Internet Use Among Teens and Young Adults, Pew Research
- 21. Vote for the Tote! 1 Facebook Users Submit Designs For Charities. 2 The facebook community votes and comments on design finalists picked by Macys. 3 Winning designs is made and sold at American Rag.
- 22. Vote for the Tote! 1 Facebook Users Submit Designs For Charities. 2 The facebook community votes and comments on design finalists picked by Macys. 3 Winning designs is made and sold at American Rag.
- 23. Vote for the Tote! 1 Facebook Users Submit Designs For Charities. 2 The facebook community votes and comments on design finalists picked by Macys. 3 Winning designs is made and sold at American Rag.
- 24. Online Image Case Study: Macy’s Million Dollar Makeover
- 25. Production and Pricing Strategy
- 26. Product Development Department: American Rag Handbags Vendor: Sunrise Production & Transport 3 Months Delivery to Store 2 Weeks Source: American Rag Handbags Department
- 27. Pricing Strategy Revenue (Final Market Price) $20.00 $200,000.00 Landing Cost (Vendor/SPA/Etc) $6.92 $69,000 Donation to Charity $2.00 $20,000 $8.92 $89,200 $11.08 $110,800 Total Costs of Goods Sold Profit Margin Mark Up Percentage 55.4% Source: American Rag Handbags Department
- 28. Exit Strategy After 8 weeks 25%-30% Source: American Rag Handbags Department
- 29. Exit Strategy After 12 weeks 50% Source: American Rag Handbags Department
- 30. Exit Strategy Liquidation Source: American Rag Handbags Department
- 32. Marketing & Advertising Venues Strategy: Pandora Takeover Cost $50,000/month ~7.1 million impressions •100 million listeners •Targeted advertisement •Not just a pop-ad – can create a brand experience Source: Macys Marketing Department
- 33. Marketing & Advertising Venues Strategy: Facebook Targeted Advertisement Cost $25,000/month ~4.1 Million •Inform millennials about “Vote for the Tote” and increase participation Source: Macys Marketing Department
- 34. Marketing & Advertising Venues Cost $30,000 Strategy: Online campaign •Capitalize on American Rag’s partnership with Seventeen Magazine Source: Macys Marketing Department
- 35. Product Placement Magazines/Print Media Give to relevant celebrities
- 36. mStylelab & Facebook Users can upload outfits incorporating their American rag bags onto facebook/mStyleLab
- 38. Further Expansion Additional Such as… Merchandise Discount With Tote College Discount
- 39. Our Initiative Will… – Create awareness – Improve brand equity – Expand customer base – Create a Macy’s exclusive “it” item – Tie American Rag brand to a “hot,” millennial-driven social trend
Editor's Notes
- Out of 1,961,562 total American Rag customers 30% fall w/in 42 – 51 age range
- Total 1,961,562 - Total Spend $82,612,223
- Who knows what Toms or Lauren Bush’s Feed Bags are? The customer we just described to you does! The mil. customer is a perfect target market for our concept! As mentioned before, “she is a late adopter,” and thus, is receptive to trends which have already been established. Large trend By partnering with Feeding America, y, and z, we hope to capitalize on this movement Toms shoes made SUCESS (insert DATA) GET FEED NUMBERS
- Millennials are classified as a Civic (Hero) generation, which means that during our generation’s lifetime there will be increasing civic engagement throughout society as we spearhead a new “civic realignment” in our country. Mil. Are increasingly aware of and engaged in volunteer work, community service and philanthropic activities. Authors Morley Winograd and Mike Hais wrote in their book, Millennial Makeover, that civic realignments are characterized by the following: * “Identification with specific political parties and straight-ticket voting”* “Rising voter turnout and/or maintenance of turnout at high levels”* “Positive attitudes toward politics and political institutions”* “Focus on broader societal and economic issues”* “Greater ability of the political process to deal with major concerns and institution building”* “Greater economic equality and relatively small income and wealth disparities”
- It is going to be a tote with intention to extend to other categories – graphic tees, flip flops It is going to be for charity At first we are going to launch charity tote with Brazil trend Then, with success it will focus on Charities X, Y, Z in further quarters Thus, Brazilian inspired design engage Millennials … Goal: Make people walking advertisements Change every quarter Co-ed* Start huge, gives us something to build upon Great way to launch idea May – July – 2nd Quarter – continue w/ other charities during 3rd quarter Can continuously change charity – charities can change as relevant -- think GLOBAL millennials are all about fast/disposable fashion, open to change and continuously seek it, so refreshing the image every quarter will drive more purchases
- Environmental defense fund Climate change: Avoiding catastrophe Oceans: Restoring abundance Health: Safeguarding people Ecosystems: Preserving and restoring them They are most inspired when they believe that their contribution can make a difference in their own communities. Or they are supporting something they are truly passionate about In many ways, America is the land of plenty. But for 1 in 6 Americans, hunger is a reality. Many people believe that the problems associated with hunger are confined to small pockets of society, certain areas of the country, or certain neighborhoods, but the reality is much different. Right now, millions of Americans are struggling with hunger. These are often hard-working adults, children and seniors who simply cannot make ends meet and are forced to go without food for several meals, or even days. "Every dollar you donate to Feeding America helps provide 7 meals to men, women and children facing hunger in our country. ” Thus, for every item we sell, we can provide 14 meals to Americans in need 1 in 6 Americans suffer from hunger 1 in 4 children do not have enough to eat
- We are the most likely to use the internet and send or receive an email at least occasionally (90 percent reportedly do), although Gen X and Boomers aren’t far behind (at 87 and 79 percent, respectively). And Millennials are not only most likely to have created a profile on a social networking site, but we are also most likely to visit our profile page “several times a day” (29 percent say they do, compared to 19 percent of Gen Xer’s and 11 percent of Boomers). Furthermore, we are the only generation with a majority reporting that they visit their profile page “several times a day” as opposed to “once a day”, “every few days”, or “once a week or less.” And we also have more positive attitudes about technology than other generations–we are the most likely to say that technology makes life easy rather than harder, are the most likely to say technology brings people closer together than drives them further apart, and are the most likely to say that technology allows people to use their time more efficiently. Over the last five years, Millennials' use of social networking sites exploded compared to older generations. In 2005, only 7 percent of Millennials used social networking sites; now 75 percent do. http://www.nationaljournal.com/njonline/no_20100225_3691.php Compare growth in SN to GenX 7/50, Boomer 5/30, and Silen 2/6
- People will submit works which they feel best represent charity x, y, or z Allow people to supplement their work with a you tube video or short essay explaining their passion (Possibility of a viral video*) Finalists will be chosen and their works will be placed on facebook to be voted on For each respective charity, the work which wins the most votes will be chosen to be printed on the merchandise To keep things fresh, 3 new winners will be chosen every 6 months Inform art colleges about competition (RISD, Parsons, Prat, SCAD, etc.) Stimulate word of mouth Learnings from Spring ‘11 Mstyle Lab Project Brief Talk about current AR Online media presense. Goals: Drive Traffic to AR Facebook page Model: Million Dollar Makeover Drive traffic to the site Social media to reach possible millennials Strong on-going campaign to build friend base Mainly for American Rag and Material Girl From the Key Performance Indicators, it has already made half a million dollars with hardly any advertising and with the relaunch in august they plan to advertise with MTV and Seventeen Magazine it is a good place to go with it
- Goals: Drive Traffic to AR Facebook page Model: Million Dollar Makeover Drive traffic to the site Social media to reach possible millennials Strong on-going campaign to build friend base Mainly for American Rag and Material Girl From the Key Performance Indicators, it has already made half a million dollars with hardly any advertising and with the relaunch in august they plan to advertise with MTV and Seventeen Magazine it is a good place to go with it
- Buying Plan 10,000 Units 652 Doors
- Average Margin is 63%, Black Friday is 45%. Pricing is for a 2 color tote. Impulse purchase
- Maintain consistent donation percentage throughout markdowns (20%) Hard Mark
- Maintain consistent donation percentage throughout markdowns (20%) Hard Mark
- Maintain consistent donation percentage throughout markdowns (20%) Hard Mark
- People will submit works which they feel best represent charity x, y, or z Allow people to supplement their work with a you tube video or short essay explaining their passion (Possibility of a viral video*) Finalists will be chosen and their works will be placed on facebook to be voted on For each respective charity, the work which wins the most votes will be chosen to be printed on the merchandise To keep things fresh, 3 new winners will be chosen every 6 months Inform art colleges about competition (RISD, Parsons, Prat, SCAD, etc.) Stimulate word of mouth
- Pandora – free, personalized internet radio Pandora recently reached 100 million listeners Acc. to Pandora’s blog, 36 million of those users are monthly active listeners - Pandora has upped its market share of radio listening from 2.3% to 3.6%. – CNN.com (July 12, 2011) - http://articles.cnn.com/2011-07-12/tech/pandora.users_1_listeners-redesign-users?_s=PM:TECH Pandora allows you to create a brand experience with their advertisement because it not only gives you a rectangle box to include your ad, it turns the page into a branding story – up to 50% of the canvas (Nike Ex.) Allows for precision targeting because of our registration process (age, gender, geography) and what they learn about the user (music preferences, mood as based on music being listened to, browser, time of day, day of week). Source: Pandora: Music and Advertising Happily Married – webadvantage.net – interview with Vp of Advertising sales, Cheryl Lucanegro
- Pandora – free, personalized internet radio Pandora recently reached 100 million listeners Acc. to Pandora’s blog, 36 million of those users are monthly active listeners - Pandora has upped its market share of radio listening from 2.3% to 3.6%. – CNN.com (July 12, 2011) - http://articles.cnn.com/2011-07-12/tech/pandora.users_1_listeners-redesign-users?_s=PM:TECH Pandora allows you to create a brand experience with their advertisement because it not only gives you a rectangle box to include your ad, it turns the page into a branding story – up to 50% of the canvas (Nike Ex.) Allows for precision targeting because of our registration process (age, gender, geography) and what they learn about the user (music preferences, mood as based on music being listened to, browser, time of day, day of week). Source: Pandora: Music and Advertising Happily Married – webadvantage.net – interview with Vp of Advertising sales, Cheryl Lucanegro
- Pandora – free, personalized internet radio Pandora recently reached 100 million listeners Acc. to Pandora’s blog, 36 million of those users are monthly active listeners - Pandora has upped its market share of radio listening from 2.3% to 3.6%. – CNN.com (July 12, 2011) - http://articles.cnn.com/2011-07-12/tech/pandora.users_1_listeners-redesign-users?_s=PM:TECH Pandora allows you to create a brand experience with their advertisement because it not only gives you a rectangle box to include your ad, it turns the page into a branding story – up to 50% of the canvas (Nike Ex.) Allows for precision targeting because of our registration process (age, gender, geography) and what they learn about the user (music preferences, mood as based on music being listened to, browser, time of day, day of week). Source: Pandora: Music and Advertising Happily Married – webadvantage.net – interview with Vp of Advertising sales, Cheryl Lucanegro
- “Hot Lists” and “Must Have Pages” in popular and pertinent magazines Give to all relevant celebrities Send out items to important celebrities We heavily suggest you use traditional product placement because mill highly respond to it Celebrities who mill are responsive to, we have picked a few and showed them on the screen These techniques are imperative to creating a trend American rag already has an established partnership with 17 magazine and we strongly recommend that you leverage it + cost of promo = how many readers and ages single page ad in 17 will cost $64,000
- Many people have trouble putting together outfits, especially if they are trying to incorporate new and trendy itemsFrequently you will hear “how do I wear this?” and not knowing the answer, consumers shy away from buying the product Start by posting pictures of how to wear the products then replace the posted images slowly with ones actual customers come up with Example: Toms Lookbook.nu Help customers to identify creative outfits A technique that other companies, specifically toms and feed bags, have used and have had great success with is allowing their customer base to upload pics of themselves on to facebook and m style lab. M style lab already has an interface produced called your look. This could be used to further display our products on a high traffic site. This not only engages millennials but allows potential customers to see how styles can be worn.
- Shopping Experience Provide a unique yet familiar shopping environment Environment should match with consumer and product In store signage Music? TV/ interactive component clarifying mission statement? Rwanda example 400 doors The way we would like to see this product promoted
- Tell them what you told them 10% college discount 5% discount with bag Include other merchandise in assortment Flip-flops $15? Graphic Ts $15? Bracelets $15? 10% college discount 5% discount with bag We think that this is a concept that should not just be limited to a tote- but should be expanded to other merchandise to reach a broader customer base. Further expanding opportunities we see are graphic tees, flip flops, and bracelets. All representing or displaying the same artwork. Which all have images which eco design for the charity picked