Steve Madden began in 1990 designing chunky platform shoes. It has since expanded its brands to target various age groups, including Madden Girl for ages 15-20 and Steven for ages 25-40. The company distributes products through retailers nationwide as well as internationally. Founder Steve Madden started his career in the shoe industry in 1974 and drew inspiration from street styles. While Madden was imprisoned for securities fraud from 2001-2005, the company launched its Steven line. Today, Steve Madden remains innovative in design and quick to market, helping it compete successfully against other brands. The target market includes men and women ages 21-34 who are fashion-conscious professionals.

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Type and category of retail channel
Steve Madden is a shoe line that originally was for style conscience women between
16 and 25. Since the founding of the business, it has launched several sub brands such as
Madden Girl, targeting girls between 15 and 20, as well as Steven, a higher end
sophisticated line targeting women between 25 and 40. While these sub brands have
divided the target market age range, the Steve Madden brand still targets women between
the age of 18 and 35.
The company distributes its products through retailers, national chains and mass
merchants throughout the United States. They also distribution arrangements in Asia,
Canada, Europe, the Middle East, Mexico, Australia, Central and South America and India.
The company operates in five segments: wholesale footwear, wholesale accessories, retail,
first cost and licensing.
Why
I have chosen to look into Steve Madden because I have always been a loyal customer. I also
wanted to get to know their history and the way they connect to their customers. Also
seeing how they compare to their competition and the advantages/opportunities that they
have interested me as well.

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History of channel
Steven Madden’s career started in 1974 when he was sixteen. He was a stock boy for
a shoe store called Toulouse. He later worked for Jildor shoes where he really started to
learn the shoe business. After there he went to work for as a salesman for L.J. Simone. One
day he was in the factory playing around with the shoes and started to develop his own
concepts. It was there that he started to believe that he could start his own shoe business.
After eight years of working to L.J. Simone, he left the company and in 1990 started Steve
Madden.
Madden began manufacturing his own designs and selling them to small trendy
Manhattan stores. He became known for having a chunky platform look, which in turn
became his signature style. His designs caught the attention of clothing designers like Betsy
Johnson, who used them in her fashion show. When asked what inspired him Madden
responded, “What inspires me is what I see people wearing on the streets of the world from
New York to London and beyond. I get my ideas and inspirations from pounding the
pavement all over the world. Today, fashion is dictated by individual style. To me, the
fashion of the future is anything that a young guy or girl feels good wearing as long as it’s
put together in the right way.” (Halasz and Stansell).
In 1993 the company had 13 employees. Its styles consisted of boots, clogs and
sandals. The collections were now being sold in department stores (the first department
store to pick them up was Nordstrom) and footwear specialty stores. Most of the stores
were located in the New York area, as well as California and Florida. That same year the
company went public and sold 1.725 million shares at $4 each. Public offerings were made
through Stratton Oakmont Inc. of Long Island, New York. The shares were eventually
transferred to BOCAP Corp in Florida.
Steve Madden acquired Adesso Shoes in 1995. Adesso brought a new target market
to the company for an “older, more sophisticated, career- and fashion-oriented woman”
(Halasz and Stansell). That year, due to acquiring of Adesso, the company’s sales reached
$38.74 million and rose to $45.82 million in 1996. Madden’s styles in 1997 included

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leopard-print platforms, zebra-print loafers, chunky four-inch heels and satin prom-night
shoes. The chain of Steve Madden stores grew to 17 in the year of 1997.
In 1998, Madden acquired the l.e.i. license from R.S.V. Sports Inc., a trademark well
known for jean wear and foot wear for the young girls and teenagers. Also in that year, the
company did well with net sales rising to $85.78 million (and then almost doubled in 1999
to $162.04 million). Also during this year the company started selling Jordache footwear
under license with the target market for girls ages 10 to 16. The Steve Madden brand in
1999 consisted of a wide range of footwear, including boots, sneakers, evening shoes,
slippers, casual and tailored shoes and sandals. All we designed to appeal to women in the
age range of 16 to 25. Retail stores expanded to 41 retail locations by the end of that year.
In 2000 the announcement of Madden’s new line Stevies would be made for girls
age 6 to 12. It was a spinoff of the designs from Steve Madden and was to be sold in
department stores and specialty stores (not in the stand alone stores). The new focus for
Steve Madden in 2000 was to expand into appear. The whole focus for the company was to
“develop Madden from head to toe in both Steve Madden and Stevies” (Halasz and
Stansell). Retail locations reached 58 stores by mid-year of that year. 41 of these stores
operated in major shopping malls with in 15 states, four stores in Manhattan alone and the
remaining stores were located in “highly traveled urban street locations in Philadelphia,
Washington, D.C. and Florida” (Halasz and Stansell). These stores were designed to draw
the attention of your fashion-conscience women. They did this by making the store
atmosphere like a nightclub.
2000 was rough year for the creator of the company. Madden’s ties to Stratton
Oakmont, the original company in charge of the shares for the public. Madden was accused
of receiving shares below the offering price. Federal prosecutors indicted Madden on
charges of “securities fraud, conspiracy, and money laundering in 22IPOs of stock,
including the IPO of his own company” (Halasz and Stansell). Madden pleaded guilty in
2001 and was sentenced to 41 months in federal prison. While Madden was in prison, Steve
Madden Ltd. began a new line called “Steven”. This line “moved the company from the
trendy 16-24 demographic into upscale footwear for a more mature crowd” (Sanders).

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Since the company did not want to replace Madden’s style eye, they just went with what
they already had. All the brands were doing well as far as increasing profit margins and
inventory totals.
In 2005 Madden was released from prison and returned to the company as the
creative force of the company once more. He hit the ground running with new innovative
concepts that kept competitors, such as Sketchers and BCBG Girl, at bay. But not all of his
designs were the hit that he hoped they would be. In trying to break into the athletic
footwear branch, Madden designed “Fix”. The shoe was considered a souvenir from a bad
acid trip due to its colors and style. Critics did not take to the shoe the way Madden and
hoped and they stated ‘”It’s old. It’s done. You need to define yourself in this market place”’
(Setoodeh).
Due to the slowing economy in 2007 and 2008, Steve Madden sales started to slow.
The company did weather the turn down better than some of its competitors and in 2009
reported record sales and earnings (Halasz and Stansell). But the company’s success was
due to not only Madden’s design talent, but the way the company was able to get the
products out on the shelves faster than its competition. After the team had come up with a
design, it is sent to a mini-factory that is located at the headquarters. There they turn it into
a trial product in limited numbers by the end of the day. The trials are then placed in stores
around Manhattan by the end of the week. If the footwear is successful, it can be on all store
shelves across the United States within six to eight weeks. A process that usually took
competitors six to eight months to do.
The company has succeeded so well not only from its own brands but also the
growing arsenal of partnerships that it has. In 2010, they acquired control of the Betsey
Johnson fashion house. Also in 2010, the company purchased Big Buddha, a handbag and
belt maker. Its wholesale division is also running strong with partnerships with big names
such as DSW Inc. Even with a few stumbles, Steve Madden remains in the forefront of the
fashion industry and is on track for continues success for years to come.

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Locations
Steve Madden original location was in downtown Manhattan. Its retail stores have
saturated the New York, Florida and California market. The company is expanding into
more states with their retail stores. In 2011 Steve Madden opened its first retail store in
India, targeting women between 16 and 40.
Department stores, including Macy’s and Nordstrom, also sell Steve Madden, and Steven.
These shoe lines, as well as Madden girl, can be purchased at DSW shoe warehouse.
Mission statement
Our main mission is to consistently deliver trend right designs to our customers. To further
build our business, we will leverage out tremendous brand equity, dominant position in
fashion-forward footwear, and industry-leading design team and will work to ensure that
Steve Madden Ltd. emerges as a global lifestyle branded company.
Mantra
Peace, Love, Shoes

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Customer service, philosophies and program
Customer loyalty is something that Madden strives to achieve. For loyal customers,
they keep returning for quality shoes that are fashionable and up on current trends. They
also want the quality of shoes that is expected of Steve Madden.
One of the ways that the company is trying to get customer loyalty is by having them
join the mobile commerce. With the sign up of the mobile commerce, customers get a one-
time offer with their purchase. Also with the mobile commerce a stylist is offered. This
entails texting the name of a shoes to 91919 and you will receive and text back on how best
to wear the shoe both casual and dressed up.
Customers also know that Steve Madden offers a lot of specials online and in stores.
If they are a part of the emailing list or follow Steve Madden on Facebook, Twitter or
Instagram, they find out when all the specials are taking place. Knowing all the way to be a
part of promotions and how often they take place, customers keep returning to Steve
Madden for their great deal.
Employee relations, philosophies and programs
“Steven Madden Ltd. is proud to offer full-time associates and their eligible dependents an
exceptional benefits program to help our associates stay healthy, meet their financial goals,
protect their incomes and their families, and balance the demands of work and personal
life” (Stevemadden.com).
Healthy Start
Medical insurance
Dental insurance
Vision insurance
Health care flexible spending account/dependent care flexible spending account
Protection from the Unexpected
Life insurance
Disability insurance
Accidental death and dismemberment insurance

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International business travel accident insurance
A Helping Hand
Employee Assistance Program (EAP)
Health advocate
Qualified transportation expense account
Stepping Towards Tomorrow
Opportunity to save for retirement and receive free money with Steven Madden
Ltd.’s 401(K) plan matching contribution.
Time for Yourself
Paid time off
Paid holidays
Treat Yourself
Generous discounts towards fashionable Steve Madden merchandise
Plum benefits
1-800 Flowers
Geoff & Drews Cookies
New York Sports Club

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Target market
The typical customer is about 25 years old and works in a sophisticated, fashionable
urban office. She lives in a nice area of the city where she can walk to work, changing from
flats to heels when she reaches the office. She could work at a PR firm and makes an annual
income of $70,000, which leaves enough disposable income to support her fashion forward
style. She could be single, or dating someone, and like to transform her work look to her
going out look after she leaves the office. She is adventurous, friendly and outgoing. She is
part of a close group of girl friends that all like to keep busy during the week and go out on
the weekend.
This is what a customer profile for Steve Madden could look like. The target market
for the company are men and women between the age of 21 and 34. They are college
educated and working in an office in an urban area with an income that starts at $35,000 a
year, for those who are at an entry level position, and goes up from there depending on
where they are in their career. They shop at higher end store such as Banana Republic and
Macys. They are career focused and worried about environmental issues and political
issues. They enjoy being outside when they are not working, staying busy and spending
time with their friends.
These customers are regular clientele that come in to do their shopping. They are
staying on top of what the trends are through the store. This target market also uses the
internet sight to see what is new, if they do not have the time to go into the store as much
as they would like to.

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Location evaluation
London Beijing Mall Store Front
Location decisions are important because the placement of a store is what will bring
in customers. For Steve Madden, the placement of the stores is due to convenience and
specialty shopping. The Steve Madden stores and merchandise are positioned as free-
standing stores, mall stores, store within a store and online. The company has positioned
itself this way so they can reach out to more customers.
Being inside of a mall, they are available to those who come in from different areas
to do their shopping, as well as those who do their regular shopping with in the mall. Being
inside a mall also puts the store in close proximity to their competition. This could lead the
customers to comparative shopping and the possibility that they could go elsewhere to get
what they are looking for.
Stand-alone store are in urban areas were malls may not be located.These locations
get a lot of foot traffic walking by and would possibly not have the regular clientele.These
locations could also be put in close proximity of competitors. But with this location, the
customers are less likely to do comparative shopping than they would if they were in a mall
setting.
Store with-in-a-store has clientele that would not shop at a standalone or mall
locations. These locations bring in the one-time shoppers or those who just need to shop
every once in a while. They are not the regular customers that the other locations would
have. These locations put the product literally right next to their competitors. This means
that there is a lot of comparative shopping taking place. There is the greater possibility that
the customer could go with the competitor that with Steve Madden.

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Wholesale retailers is another location that Steve Madden has placed itself. The
biggest wholesale that they have partnered up with is DSW shoes. DSW gets shoes that
have not been seen in other store locations or online. This location brings in regular, and
one time shoppers. As a regular shopper, they would know that DSW also sells Maddens
and can go there to get shoes not offered anywhere else. For the one time shopper, if is
another option when they are looking for a shoe they may need. Yet, being a part of a
wholesale environment puts Madden right next to competitors. Giving the possibility that
customers could go with the competitor over Madden.
The last way that the company has positioned themselves is on-line. This lets every
kind of customer reach the company. The regular, one time, the every once in awhile
customer is what this location is set up for. This can also set the company up in direct line
with competitors. Customers can have more than one window open at a time while
shopping to see what they like about the two different products.
The advantages of non-store locations compared to store locations is that with the
non-store, customers can see all products that are available, and has a larger variety of
sizes, colors, etc. Also with the non-stores, customers can look up to see what store have
what they are looking for so you can go to the store and look at them before trying them on.
Steve Madden has set their locations up to reach out to every customer that they
possibly can. Yet at the same time, it has also set itself up to be in direct line with its
competitors.

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Merchandise mix and Merchandise price ranges
The major classification of merchandise that is carried by Steve Madden (in retail
stores, department stores, and online) is shoes. The company has over one hundred styles
with men’s and women’s shoes combined. The largest assortment of shoes that the
company sells is women’s shoes. The other assortment of shoes that the company sells is
men’s shoes.
The women’s shoes have different categories. The most popular of the categories
are; boots, booties, sandals, wedges, flats and pumps (which also includes special occasion,
platform, and dress). All products are carried in a deep assortment of colors, patterns, and
material that they are made out of. Colors run from black and neutral colors to blues, reds,
pinks, gold and silver. The assortment of patterns run like snake skin, leopard, glitter, lace,
leather (paten and flat) and suede. Women’s sizes run from five to ten. The most popular
sizes being six and a half to size nine in boots and sizes six, eight, nine and nine in a half in
pumps. All of the women’s shoes run in price from $69.95 all the way up to $229.95. The
company originally had a price point that was lower to keep if affordable for the customers.
But over the year, prices have risen to keep up with the competition and to keep quality up.
The most popular women’s shoe right now are sandals and wedges. This is due to the fact
that spring and summer are right around the corner and women are starting to get this
season’s trends before they are out of stock.
Men’s shoes, like women’s, have different categories. The most popular of the
categories are; basics, boots, causal and dress. Men’s shoes do not come in as deep of an
assortment of colors and patterns as women’s does. The colors that run the most popular is
black, brown and white. The material that the shoes come in are leather. Men’s sizes run

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from seven and a half to thirteen.The average price for the shoes in this category is $89.95.
The most popular shoes in men’s are the dressy and casual shoes. These shoes would be
the most popular because they can be worn for work or every day wear. This gives men the
versatility of how to wear them.
Promotional strategies
Steve Madden has a variety of ways that they get promotions out to their customers.
If a customer signs up on the website, the company will send emails when there are
promotions going on online, as well as when new lines are available and even suggestions
on what they thing you would be interested in.
The biggest promotional strategy that the company runs is sales promotions both in
stores and online. Most of the promotions online include: take 25% off purchase, free
shipping (sometimes the two are paired together), stock up and save. Stock up and save
runs where if you spend so much, you will get 20% off, if you spend so much above that you
get 30% off and if you spend so much above that you get 40% off your purchase. During
these promotions, sizes and colors fly off the shelf as customers purchase the shoes they
want or need.
In-store promotions include: buy one shoe at regular price, get the second shoe for
so much off. In stores have also done a scratcher, where you are handed a card when you
walk in and scratch off the top. Whatever percentage is revealed is the amount that you get
off of you entire purchase, only on regular priced items.
Steve Madden has embraced the world of social networking. Through Facebook and
Instagram, Steve Madden has contest and sweepstakes. The most current sweepstake was

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“Meet the Maker”. This sweepstakes had people sending in pictures of them wearing their
Steve Maddens and the public votes on who wore their shoes the best way. Whoever wins
the sweepstakes gets a gift card to purchase new shoes. Also through social networking, the
company lets its followers know of when there is any online or in store promotions that are
happening.
One promotional strategy that the company needs to work on is becoming more
visual to customers. The last time that Steve Madden ran a campaign in a magazine was win
Steve Madden himself was being released from jail and they wanted everyone to know he
was coming back. All of the Madden’s competitors are visual to customers within
magazines. Madden needs to find a way to get back into magazines. It will also bring in new
customers who may not shop Steve Madden already.

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Competitive analysis
Your
Channel:
Steve
Madden
Competitor
#1: Guess?
Competitor
#2:
Kenneth
Cole
Competitor
#3: Sketchers
U.S.A.
Competitor
#4: Bakers
Footwear
Competitor #5:
Donna Karen
Target
Customer
(Segments)
Men and
Women
Age: 18+
Ethnics: All
Income:
$25,000+
Men and
Women
Age: 30+
Ethnics: All
Income:
$35,000+
Men And
Women
Age: 30+
Ethnics: All
Income:
$35,000+
Men,
Women and
Children
Age: Toddler
to adult
Ethnics: All
Income:
$20,000+
Women
Age: 18+
Ethnics: All
Income:
$25,000+
Women
Age: 30+
Ethnics: all
Income: $
$35,000+
Store Type &
Design
-Stand
Alone
-Store
Within a
store
- Mall
-Online
-Store
within a
store
-Outlet
-Mall
-Online
-Store
within a
store
-Outlet
-Online
-Mall
-Stand alone
-Outlet
-Online
-Mall
-Online
-Store within a
store
- Online
Visual
Presentation
Store:
Women’s
organized
by boots,
pumps,
casual,
Men’s
Online:
Men’s
Women’s,
Sale,
Clearance
Online:
Women’s
organized
by boots,
sandals,
causal,
dressy
Men’s: ‘All
shoes”
In store:
Men’s &
Women’s:
Selection
of shoes on
display but
not a total
assortment
In store:
Selection
of shoes on
display, but
not a total
assortment
Online:
Organized
into
categories,
both men’s
and
women’s:
casual,
dressy,
boots, etc.
In store:
separated
into Men’s,
Women’s,
Boy’s and
Girl’s
Online: Also
separated as
above. Also
into Athletic
shoes,
Performance,
Sandals,
Sneakers,
Boots
In store:
Separated
into boots,
dressy,
sandals,
casual,
clearance/sale
Online: Boots,
sandals,
casual, dress
Online:
sparated into
boots, heels,
flats/casual.
Not very
customer
friendly when
trying to
look/search for
shoes.
In store: on
displace
Uniqueness
of Product
Offering
As different
prints such
as animal,
glitter. Use
of metal
and spikes.
Simple
styles to
very
embellished
Variety of
prints
(mostly
animal),
use of
different
colors and
styles
Simple
styles and
Patterns.
Some
Metallic
colors and
animal
prints.
Different
variety of
styles in
sneakers and
casual wear.
Large variety
of colors
Different
variety of
styles. Use of
different
prints. Use of
different
fabrics (lace,
suede, etc.).
Simple styles
to
embellished
(use of spikes,
metallic, etc.)
Very different
styles than
Steve Madden,
more
sophisticated
and generated
to a more
mature crowd.
Use of
embellishments
Organization Men’s: Women’s: Women’s: Women’s, Boots, Casual, Boots, heels,

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of
Merchandise
Causal,
Dress
Women’s:
Casual,
Dress,
Pumps,
Wedges,
Sandals,
Boots
Athletic,
Boots,
Dressy, Flip
Flops,
Sandals,
Wedges,
Pumps
Men’s: ‘All
shoes’
Casual,
Boots,
Dressy,
Wedges,
Made in
Italy
Men’s, Boy’s,
Girl’s:
Sneakers,
performance,
Sandals,
Casual
Dress,
Sandals,
Trends
casual
Merchandise
Variety &
Assortment
Variety of
colors,
styles,
patterns
Variety of
colors,
styles,
patterns,
heel
heights
Variety of
styles,
small
variety of
patterns
and colors
Variety of
styles in
different
patterns and
colors for all
categories
Variety of
colors, styles,
patterns in all
categories.
Variety of
colors, styles,
patterns.
Price Range $69.95 +
$$
$99.99 +
$$$
$100 ++
$$$$
$50.00+
$
$59.95+
$$
$85.00++
$$$$
Customer
Service
Online:
Email,
Phone
number
In store:
Sale
associates
Online:
email,
Phone
number
In store:
Sale
Associates
Online:
Email,
phone
number
In Store:
Sale
Associates
Online:
Email, Phone
Call
In store:
Sale
Associates
Online: Email
In store: Sales
Associates
Online: Email,
Phone Call
In Store: Sales
Associates
S.W.O.T.
Strengths:
Known for unique and innovated style
Operates out of stand-alone stores, department stores, and online
Brand has several target markets
Price equates with quality
Good return policy
Seen as a fashion-forward line
Are involved in several markets
Located nationally and internationally
Weakness:
Too expensive for majority of customers
Steve Madden has gone to jail thus affecting brand image
No exclusivity
Similar style produced each season with little variation
Not as visible as the company should be
Opportunities:

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Create demand for products by updating consumer’s idea of the company
Celebrity press
More advertisement in magazines
Changing up styles each season and only bring back the “popular styles” of
the previous season.
Threats:
Price similar to competitors
Competitors have similar access to channels of distribution
Many competitors compete within the same market
Competitors like Kenneth Cole and DKNY have a higher perceived status.
Conclusion
Steve Madden has grown from a small company into a world known name in the
shoe industry. They will continue to grow and provide fashionable trend shoes to the
public.
One think that I believe the company should create is a customer loyalty program. I
believe that they should instate a points program. With this program for each dollar spend
they would receive one point. Once the customer has reached 500 or a 1000 points, they
would get so much off their next pair of shoes. I think that this would give customers even
more of an incentive to return to Steve Madden every time they need a pair of shoes or are
looking for that special shoes for a special occasion.
I also believe that the company needs to make itself more visible. Putting ads out in
magazines will bring to light new line that are being released and new campaigns. It will
also bring in new customers who may not shop Steve Madden or do not know what Steve
Madden offers. Placing ads in magazines such as InStyle or People Style Watch will also
bring in a younger demographic to the company.
While there are still things that the company has to work on, it has fought through
many ups and downs and survived. They are still at the top of their game and working hard
to be number one. With continued return customers and the welcoming of new customers,
as well as creating great shoes, Steve Madden has the ability to be around for years to
come.

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Sources:
www.Stevemadden.com
www.Shop.guess.com
www.Kennethcole.com
www.Sketchers.com
www.Bakersshoes.com
www.Dkny.com
Nielson Prizm Web 26 January 2013
Levy, Michael; Weitz, Barton, Retailing Management, New York: McGraw-Hill Irwin,
2012
Halsaz, Robert, and Christina M. Stansell. “Steven Madden, LTD.” International
Directory of company histories. Ed. Tina Grant. Vol. 123. Detroit: St. James Press,
2011. 384-388. Gale Virtual Reference Library. Web. 11 Feb. 2013.
Colbert, Catherine. “Steve Madden, LTD.” Hoovers Database. Web. 11 Feb. 2013
Weilheimer, Neil. “Milestone: Q&A with Steve Madden” WWD. 22 Feb. 2010. Web. 20
Feb. 2013
“Steve Madden Corprate profile”. Forbes Web. 1 March 2013
Young, Vicki M. “Steve Madden Heads to India” WWD 1 March 2011. Web 1 March
2013
Sanders, Monica. “Shoe Mongul Steve Madden Gets Sprung from Prison” Legal Zoom
October 2007 Web. 2 March 2013
Setoodeh, Ramin. “Back on His Feet Again” Newsweek 15 July 2007. Web 1 March
2013
Kats, Rima. “Steve Madden Mobile Revenue Exceeds $1M in 2010: exec” Mobile
Commerce Daily 27 January, 2011 Web. 1 March 2013
Gutman, Brandon. “Steve Madden on Mobile Commerce” Forbes 5 July, 2010 Web. 1
March, 2013

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Wong, Marisa. “Jail Over, a Designer Steps Up” People 21 November, 2005 Web. 1
March, 2013
Holson, Laura. “Steve Madden is Back” The New York Times 13 February 2013 Web.
1 March 2013

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Homework 1
1. Define the term Demographics: the statistical data of a population, especially those
showing average age, income, education, etc.
2. Define the term Psychographics: the study and classification of people according to
their attitudes, aspirations and other psychological criteria, especially in market
research.
3. Typical customer profile of your channel shopper including:
a. Age: 21-34
b. Gender: Female
c. Ethnicity: mixed
d. Income level: average $40,000 per year
4. In addition to specific statistics, (demographics) please detail in paragraph format
an overview of your customers. (Example- tourists or regular repeat clientele, one-
time purchasers, families, etc…)
The customers who frequent this location could fit into several categories.
Since this location is located in a large mall in San Francisco, it would have
regular clientele that comes in to see what is new in the store. One time
purchasers could come in to get the shoes that they would need just for a
certain occasion. This location is also in a high tourist area of San Francisco
that it is also a place where tourist can come in to purchase shoes that they
might not see where they are from, if they don’t have a Steve Madden
location around them.
5. Psychographics Profile of your channel shopper including:
a. Lifestyle: shop at higher end store (Banana Republic, Macy’s, etc.). Drive
moderately priced cars (Volkswagen).
b. Interests and opinions: careers, environmental issues, political issues.
c. Activities: like to play outside sports, go out with friends
Homework 2

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1. In general, why are location decisions so important?
Location decisions are important because placement is how to bring in customers to
the store. For my channel I believe that it is place due to convenience and specialty
shopping.
2. In general, what points are taken into consideration when a retailer chooses its
locations?
Economic conditions, competition, strategic fit, operating cost
3. Where is your channel positioned? (Example- free standing boutique, in a mall, on
line only? Etc…)
My channel is positioned as a free-standing store, in malls, as well as on-line.
4. Why do you think your channel has chosen this type of location?
I think my channel has positioned themselves this way so they can reach out to
more consumers. By being located in malls, they will be available to those who come
in from different areas to do their shopping, as well as those who do their regular
shopping in the malls. On-line is for those who like to do on-line shopping or could
be too busy to make it to the malls or stand-alone stores. Online is also used seeing
more of a variety and sizes and being able to get them at the consumer’s finger tips.
Stand-alone stores are easy access for consumers and have more of a regular
customer bases.
5. How close/faraway are their direct competitors?
Within the mall, competitors are all around the location. Free standing, they could
be close or far away, depending on the type of area that the free-standing store
could be placed in.
6. In reviewing whether or not your retailer is either multi-channel (i.e. store and
catalog and internet, etc…) or is a single location, discuss the advantages and
disadvantages of their format decision. If it is only a store or non-store location,
would it benefit from becoming a multi-channel operation, and if so, how?

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I think the format that they have for their locations is a good set up. It reaches out to
many different consumers. From regular customers, to the one-time customers.
With the online shopping it reaches out to these customers as well as the customers
who may never have gone into the mall or free-standing locations.
7. In general, what are the advantages and disadvantages of store vs. non-store
locations?
I think that there are disadvantages to non-store locations. The biggest one being
that you only see picture of what you are looking for and you might not be totally
sold on the size without trying it on. This could lead to the consumer not being
happy when they receive their product and leading to the long process of trying to
return. The disadvantage of just having a store is that they might not always have
what you are looking for, or not have your size. If there is not another location close
to you, the possibility of not getting what you were looking for could become even
harder.
Homework 3
1. Name the major classification of merchandise carried at your retailer. Discuss in
detail the various vendors, brand names, private label categories, licenses, etc.
Address quantity as it relates to both variety (breadth) and assortment (depth).
The Major classification of merchandise that is carried by Steve Madden (in retail
stores, departments stores, and online) are shoes. The majority of the shoes are
women’s ranging from boots to special occasion heels. They also have a selection of
men’s shoes.
Steve Madden: Shoes (men’s and women’s), Handbags, sunglasses, legwear, belts,
scarves, bedding, outwear
Madden Girl: Women’s shoes
Steven: Women’s heels
Big Buddha: handbags and belts
Betsey Johnson (licensed): accessories.
Topline Corp (private label; Report, Report Signature, R2 by Report): shoes

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2. Describe how the classification of merchandise is organized and presented in this
retail channel.
Women’s:
New Arrivals
Pre-Order
Best Sellers
Boots
Booties
Sneakers
Sandals
Wedges
Pumps
Platforms
Dress
Flats
Oxfords
Special Occasion
Neutrals &Blush
Madden Girl
Steven by Steve Madden
Sale
Clearance
Men’s:
New Arrivals
Pre-Order
Best Sellers
Exclusives
Basics
Boots
Casual

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Dress
Sneakers
Under $100
Sale
Clearance
3. What presentation creates the strongest visual impact in the channel?
I would have the say the presentation that creates the strongest visual impact would
be in store presentation. The way the shoes are set up on display inside the stores,
as well in the windows, makes it for easy browsing as well as it brings your eye to
the actual products.
4. Choose one item in the channel that is carried in a deep assortment of
colors/patterns and detail each color/pattern way?
The one item in the channel that is carried in a deep assortment of colors and
patterns would be pumps.
The colors that pumps usually come in range from; black, white, blue, red, pink,
blush, gold and silver.
The patterns range from; snake skin, leopard, glitter, lace, leather (paten and flat),
suede
5. How many styles are offered in this channel in more than two color/pattern ways?
100+ styles (men’s and women’s)
6. What size ranges are offered throughout the channel? What appears to be the most
popular size?

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Women’s: size 5 to 10. In boots the most popular size ranges from a 6.5 to a 9. In
pumps the most popular sizes are 6, 8, 9 and 9.5
Men’s: size 7.5 to 13. The most popular size in men’s shoes would be size 8 and up.
7. What are the channels bestselling colors right now? Justify?
From what I can tell from looking through the different styles is that anything in any
color but black is selling really well. I think this is because you can get black shoes
anywhere and with the patterns and variety of colors that they are offered in the
different styles, they are being purchase more quickly.
8. What items(s) appear to be selling well? Why?
Sandals, wedges and peep toes seem to be selling well right now. This is because the
new styles are starting to be released for the spring season and women are
beginning to purchase them now before the sizes and colors are picked over.
9. What are the average retail prices for the store’s best sellers?
Women’s best sellers: Average price $129.95 to $149.95
Men’s best sellers: Average price $89.95
Homework 4
1. Define online interactive communication techniques and which does your channel
use? Provide examples.

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Direct Marketing: Marketing that communicates with the target customers to
generate a response or transaction. I.E. Direct Mail, Email, Mobile Marketing
Online Marketing: Web Sites, Blogs, Social Media.
My channel uses Email Websites and social media to communicate with their
customers. With their website you can sign up for their online magazine which
shoes the new shoe trends and also email alerts. With Email they send any promos
that are going on to you. On their social media (Facebook) they are promotions just
for their followers as well as letting them know what promotions are taking place on
the website and in stores. The social media also shows what shoes are being
released and if there are any events going on with the company.
2. Define offline interactive communication techniques and which does your channel
use? Provide examples.
Personal Selling: sales associates help customers satisfy their needs through face-to-
face exchange of information
Sales Promotions: Contests, sweepstakes, special events, in-store demonstrations,
pop-up stores.
The stores have sales promotions are sales. As far as sweepstakes and contests, they
take place on-line through Facebook, Instagram, and the website.
Personal Selling takes place in all the stores. There are sales associates there to help
you. They do not have what you are looking for they will help you find it either from
a different store or online and if they can’t find them they will let you know when
they get it back in the store.
3. Define online passive communication techniques and which does your channel use?
Provide examples.
Direct Marketing: Email.

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The company only sends out emails if you go to the website and sign up for them.
They do not spam your in box with unwanted emails.
4. Define offline passive communication techniques and which does your channel use?
Provide examples.
Advertising: the placement of announcements and persuasive messages purchased
by retailers and other organizations that seek to inform and/or persuade members
of a particular target market or audience about their products, services,
organizations or ideas.
Sales Promotions: Coupons
Public Relations: managing communications and relationships to achieve various
objectives, such as building and maintaining a positive image of the retailer,
handling or heading off unfavorable stories or events and maintaining positive
relationships with the media
Direct Marketing: Mail, Catalogs
The company does more online advertising that mail out advertising. They also do
not do as much in magazine advertising as they should.
There are sales promotions in store and online. 20% of your purchase, free shipping,
and buy one get so much off the second pair, stock up and save, etc.
All companies have PR departments so I am sure that Steve Madden has a PR
department that deals with certain things for the company.
5. Please give your recommendations as to how your channel could improve its
promotional strategies.
I think that they should expand out into fashion magazines like Instyle, People style
watch, etc. It will bring in a different market of people who look through fashion
magazines.

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