Payless ShoeSource is a large footwear retailer founded in 1956. While it was once widely known for inexpensive shoes, declining sales in recent years prompted a rebranding effort. The marketing plan aims to reposition Payless as a family brand by focusing on emotional connections through "Mommy and Me" campaigns. Proposed changes include a brighter logo, eco-friendly packaging, standardized international store designs, and a cleaner website interface to appeal to millennials. The goal is for Payless to be seen as the one-stop shop for shoes for all ages and occasions.

1. MARKETING PLAN
BY: SOPHIA DUONG, CATHY LEE, GININA LINGAT, RIZKHAN ONIES
TXC 173
SQ 2015

2. Initial Analysis: History
1956 – Payless Shoe
Source is founded in
Topeka, Kansas by
cousins Louis and Shaol
Pozez
1961 – it becomes a public
company as the Volume
Shoe Corporation
1979 – the Volume Show
Corporation fuses with the
May Department Stores
Company
1980s – Payless is widely
known in the United States
for its Pro Wings line of
discount sneakers, which
had Velcro straps instead
of laces
1996 – Payless became
an independent publicly
held company
2004 – Payless announces
that it will exit the Parade
chain and will close 100
Payless shoe outlets
2007 – the company
acquires the Stride Rite
Corporation and changes
its name to Collective
Brands, Inc.
2008 – Payless brings in
Project Runway winner,
Christian Siriano, to design
a line of inexpensive shoes
and handbags
2011 – the company
brings in a total revenue of
$3.4 billion for the year

3. Initial Analysis
Number of people who have shopped at
Payless
• Business advisor, David Gordon
says, “The message [of Payless]
was, come to us and we’ll give you
cheap footwear. But people don’t
see that as a trigger to purchase
shoes anymore.”
• Payless is not paying attention
to the lifestyle trend
• The emotional connection with
the customers is lost
• All Payless has to offer is
cheap prices

4. Initial Analysis: The 4 P’s
Product Pricing Placement Promotion
• The products are trendy,
products are not entirely
the problem
• There is still room for
improvement
• Team up with high-end
designers who can
create lines that will
target a more fashion-
forward audience
• The inexpensive prices
still remain appealing to
customers
• Online retailing
• Brick and mortar retailing
• There are Payless stores
abroad in Barbados, Thailand,
Jamaica, the United Arab
Emirates and the Philippines
• Many brick and mortar stores in
the United States have closed
down while all stores in
Indonesia, Malaysia and
Singapore have been shut
down
• Need to rethink and recreate a
new marketing strategy before
opening up any more physical
store locations
• Marketing is currently very
dependent on advertising
cheap prices and
promotional sales
• Marketing needs to adopt a
different strategy
• Needs to aim to market a
lifestyle, not just cheap
prices
• Need to create an emotional
connection with customers

5. Initial Analysis: SWOT Analysis
Strengths Weaknesses Threats
• Prices are inexpensive and appealing
• Products are trendy
• Licenses with big names like Marvel,
Disney and Nickelodeon to attract
parents
• Only offer inexpensive prices
• Face competition with Walmart, Target
and specialty retailers like Athlete’s Foot
• Not appealing to the changing market
• Competes with Target, DSW, Famous
Footwear and Zappos
• Is not seen as “cool” to shop at
• Not attractive to the Millennials, who also
hold a large amount of buying power
Payless’s BOGO promotion is an example of the company attempting to generate more
revenue with promotional events

6. Initial Analysis: SWOT Analysis
Opportunities
• Market a lifestyle
• Create an emotional connection with customers
• Payless is well-known for their wide variety of
products which can help to set them apart from
competition
• Celebrities dress their children similar to how they
dress themselves, so more upscale-looking shoes
will be more appealing to young parents
• Partner up with more upscale designers to appeal to
the more current, independent, working individual
• Target baby boomers and the gray market (or the
Silent Generation), who both have a lot of buying
power
Examples of lifestyle markets, from top left to bottom
right: business-oriented individuals, young parents,
athletics, Millennials/college students, healthy and
active Baby Boomers

7. Competition
Famous footwear:
-130 year old company
-men, women, children
-advocate of healthy living, contemporary fashion and family
-1,100 stores brick and mortar and online
DSW:
-400 stores nationwide brick and mortar and online
-98 years old
-men, women, and children
Target:
-specifically mentions in mission, goal is to be the destination in all
channels
-113 years old
-1,934 stores in the US and 127 in Canada and online
-men, women and children
Zappos:
-online
-joined amazon in 2009
-16 years old
-men, women and children
Various companies with similar
products that compete with
Payless

8. Competition Analysis
While Payless is a well established company that has been around for 59 years, other companies
such as Target, DSW, and Famous Footwear have 50 years or more experience. Essentially, all
these companies have the same goal of serving as a stop for the entire family. With newer
competitors such as Zappos, that developed in the prime age of technology, Payless’s e-tailing is
nothing unique. Each company markets their fair pricing, so for Payless to market how cheap their
products are is not enough to differentiate the company from the rest.
Questions to think about:
• Why should I shop at Payless rather than the rest?
• What makes Payless special?
• As a consumer, what brings me back to Payless?

9. Inspiration
• Payless offers “a trend-right and comprehensive range of everyday and special occasion
shoes and accessory items at affordable prices for every member of the family”
• Maintain an ethical work environment and give back to the community
• Practice sustainable methods which include “lowering corporate and store energy
consumption and partnering with organizations to facilitate giving back to the community”
A section of Payless’s website,
describing how they give back to the
community

10. Target Market
•Demographics:
• Sex: women (children and men make up small portion of target market)
• Age: 18 - 44 years old
• Location: Northern America and Australia; expanding to Eastern Hemisphere
• Income: $75,000 or less
• Personality: Repeat customers - 40% within target group purchase at least 1 pair
of footwear at Payless at any given year

11. Target Market
•Psychographics:
• The consumer
• tends to be a stay-at-home mom
• shops at bargain stores like Ross, TJ
Maxx, Marshalls
• hunts for sales and buys in bulk
• favors comfortable clothing to run
errands in
• multi-tasker; always on-the-go
• enjoys spending spare time surfing the
internet, watching tv, spending time with
family/friends Payless customer who shops with her family

12. Image & Branding
•Cheap! Essentially the main objective in shopping at Payless
is that you pay less.
- “Everyone LOVES to Payless”
-BOGO, driving low prices just like Walmart
•Collaborations with Disney, Marvel, Nickelodeon, Airwalk,
American Eagle x Payless, Champion, and Christian Siriano allow
the company to use the status of others give more value to their
products
•Payless strives to establish a place in social media in order to
appeal to this generation’s communication expertise. Sites
include:
o Sole Style Blog: www.payless.com/solestyleblog/
o Twitter: @PaylessInsider
o Instagram: @paylessshoesource

13. Advertisements
On the left is a screenshot of a 1989 commercial, while on the right is a recent commercial. The idea behind the clips are the same where essentially
they show that women can buy a lot of shoes from Payless. This hurts Payless’s image because there is no story to their sales model. This kind of
commercial does not display any growth within the company. Times change while people respond to advertisement according to the that. In order to
cater to a new generation, the company should generate new content that responds to growth.

14. Rebranding
“Mommy and Me” created to appeal to all generations
•In order to establish Payless more as a family company, a new model is needed in
order to change the image of women buying a large amount of shoes.
•Creating advertisements with emotional ties to family will allow publics to be
emotionally affected.
•People grow up wearing Payless, shopping with their moms or other family members
o This idea recreates the memories people have associated with family.
• A new focus is “Growing Up with Payless”
o There are shoes for babies, children, teens and adults. Payless is essentially
a one stop shop for the entire family
• Campaigns can include:
o Mommy and Me advertisements that depict a little child with her mother and
both wearing Payless Shoes
o Father and Son promotions
o Familial images that evoke an emotional tie to Payless

15. Mission Statement
Currently:
Who We Are
Payless ShoeSource is the largest specialty family footwear retailer in the Western Hemisphere, offering a
trend-right and comprehensive range of everyday and special occasion shoes and accessory items at
affordable prices for every member of the family. The company’s mission is simple: To be the Go To, Get
More, Pay Less shoe store for our target customers
What they could be:
Who We Are
Payless ShoeSource is the Go To, Get More, Pay Less shoes store for every member of the family. The
company is the largest footwear retailer in the Western Hemisphere with a variety of shoes and
accessories for every occasion. Along with the company’s effort to be ethical and sustainable, the
company’s overall mission is that they are there for modern families every step of the way.

16. Logo
2006 - Now
1956 - 2006

17. Logo
• Brighter orange
• Minimalistic design
• Broad target market
New logo

18. Tags
• Sleek design
• Emphasizes discount
• Made from recycled
materials
New tag design

19. Packaging
• Eco-friendly packaging
• Reusable
• Made from 100% recycled material
• Appeals to the socially conscious customer
New packaging design

20. Brick & Mortar Stores
Payless, Malaysia Payless, USA
Standardize changes across all Payless stores worldwide

21. Brick & Mortar Stores
Current exterior Revamped exterior
Minimalistic design with captivating photography to make
the store feel more “millennial”

22. Website
Current
home page
Cluttered

23. Website
New
home
page
Clean and alluring

24. Website Mechanics
•Preserve current mechanics
•Clean UI
•Streamline navigation
Current website interface

25. Website Mechanics
•Detailed product description
•Seamless checkout process
Current website interface

26. Expanding Marketing Efforts
•Improve website and social media sites
• More aesthetically pleasing visuals
and graphics
• Clean and straightforward
homepage
•Increase advertisements on different
channels
• Sidebar advertisements on
blogger’s websites
• Video ads on Youtube/Netflix
New Payless ShoeSource logos incorporated on the sidebars of major fashion websites
like Vogue

27. Expanding Marketing Efforts
•Ship merchandise to bloggers and Youtubers to
review products
• High level of influence and large volume of
followers
• Free means of advertising products
• Consumers can get inspiration from these
bloggers
Famous bloggers including Aimee & Dani
Song and Wendy Nguyen from Wendy’s
LookBook

28. Expanding Merchandise Assortment
•Environmentally friendly collection
• Use of eco-friendly materials
• Recycled materials/reusable
fabrics
• Cut down material waste
• Initiate eco-friendly programs
such as:
• Return cardboard shoeboxes
for discounts
Eco-friendly fabric swatches of organic cotton, bonded
leather, and hemp for the new environmentally friendly
collection

29. Expanding Merchandise Assortment
•Designer collaborations
• Christian Siriano from Project Runway’s
collaboration with Payless in 2010 was a huge
success
• Target’s collaboration with designers have been
huge successes and have drawn many more
consumers into purchasing the lines
• Try reaching out to other TV stars or even bloggers
to create their own lines
•Student collaborations
• Reach out to design students as part of contest to
create a shoe line
Siriano’s 2010 Payless Collaboration

30. International Marketing Efforts
• Payless is a global franchise that has 4,400 stores
• Places include the Philippines Canada, Riobamba, Ecuador, Thailand, Egypt and Australia
• Generic advertising similar within all countries

31. International Marketing Efforts
All the advertisements look the same in each country. There is value with the uniform
look, however, there is value in tailoring what is presented in the images. Each country
cannot be treated the same as the United States for each country has different taste
and values.
Suggestions are:
• Use celebrity endorsements from the specific country advertising in
• Similar designs to advertisements of that country

32. International Franchising
INTERNATIONAL FRANCHISING
The Payless international model is successful outside the Americas because:
•Payless connects with consumers who desire on-trend product at value prices
•The Payless self-select service model is the most efficient for selling footwear
•The Payless operational model drives transactions while delivering high customer satisfaction
Payless further drives this success in international markets by:
•Tailoring a portion of the merchandise specifically to the local market
•Marketing with understanding of holidays, pay period cycles, spending patterns and local
tastes/preferences that impact conversion
•Managing and understanding the complexity of growing a large, established brand in the often
fragmented and relatively undeveloped footwear market which exists in many countries
This is taken directly from the Payless website to display their efforts abroad.

33. References
About Famous Footwear | FamousFootwear.com. (n.d.). Retrieved June 2, 2015, from http://www.famousfootwear.com/en-
US/Content/Company.aspx
About Us | Payless. (n.d.). Retrieved June 2, 2015, from http://www.paylesscorporate.com/home/about-us/
Community Investment | Payless. (2014). Retrieved June 2, 2015, from http://www.paylesscorporate.com/community-investment/
About Zappos | Zappos.com. (n.d.). Retrieved June 2, 2015, from http://www.zappos.com/d/about-zappos
DSWINC - Home. (n.d.). Retrieved June 2, 2015, from http://www.dswinc.com/home.jsp
Payless - Shoesource. (n.d.). Retrieved June 2, 2015, from http://www.paylesscorporate.com/
Payless ShoeSource - Wikipedia, the free encyclopedia. (n.d.). Retrieved June 2, 2015, from http://en.wikipedia.org/wiki/Payless_ShoeSource
People who shopped for shoes at Payless ShoeSource (last 3 months), USA 2014. (2014). Retrieved from
http://www.statista.com/statistics/231495/people-who-shopped-for-shoes-at-payless-shoesource-within-the-last-3-months-usa/
Stafford, P. (2012, September 24). Payless Shoes caught on the back foot by shoe downturn and placed in administration | SmartCompany.
Retrieved from http://www.smartcompany.com.au/growth/economy/28144-payless-shoes-caught-on-the-back-foot-by-shoe-
downturn-and-placed-in-administration.html#
Target Corporate: Social Responsibility, Careers, Press, Investors. (n.d.). Retrieved June 2, 2015, from
https://corporate.target.com/#?lnk=fnav_t_spc_1_7