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.

1 | P a g e

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

2 | P a g e

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 22 IPOs 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).

3 | P a g e

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.

Locations

4 | P a g e

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

5 | P a g e

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 International business travel accident insurance

6 | P a g e

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

Target market

7 | P a g e

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.

Location evaluation

8 | P a g e

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.

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

9 | P a g e

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 a while

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.

Merchandise mix and Merchandise price ranges

10 | P a g e

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

from seven and a half to thirteen. The average price for the shoes in this category is $89.95.

11 | P a g e

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

“Meet the Maker”. This sweepstakes had people sending in pictures of them wearing their

12 | P a g e

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.

Competitive analysis

13 | P a g e

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: AllIncome: $25,000+

Men and WomenAge: 30+Ethnics: AllIncome: $35,000+

Men And WomenAge: 30+Ethnics: AllIncome: $35,000+

Men, Women and ChildrenAge: Toddler to adultEthnics: AllIncome: $20,000+

WomenAge: 18+Ethnics: AllIncome: $25,000+

WomenAge: 30+ Ethnics: allIncome: $$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’sOnline: Men’s Women’s, Sale, Clearance

Online: Women’s organized by boots, sandals, causal, dressyMen’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 assortmentOnline: 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’sOnline: Also separated as above. Also into Athletic shoes, Performance, Sandals, Sneakers, Boots

In store: Separated into boots, dressy, sandals, casual, clearance/saleOnline: 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 of Merchandise

Men’s: Causal, Dress

Women’s: Athletic, Boots,

Women’s: Casual, Boots,

Women’s, Men’s, Boy’s, Girl’s:

Boots, Casual, Dress, Sandals,

Boots, heels, casual

14 | P a g e

Women’s: Casual, Dress, Pumps, Wedges, Sandals, Boots

Dressy, Flip Flops, Sandals, Wedges, PumpsMen’s: ‘All shoes’

Dressy, Wedges, Made in Italy

Sneakers, performance, Sandals, Casual

Trends

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 numberIn store: Sale associates

Online: email, Phone numberIn store: Sale Associates

Online: Email, phone numberIn Store: Sale Associates

Online: Email, Phone CallIn store: Sale Associates

Online: EmailIn store: Sales Associates

Online: Email, Phone CallIn 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: Create demand for products by updating consumer’s idea of the company Celebrity press

15 | P a g e

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.

Sources:

16 | P a g e

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

Wong, Marisa. “Jail Over, a Designer Steps Up” People 21 November, 2005 Web. 1 March, 2013

17 | P a g e

Holson, Laura. “Steve Madden is Back” The New York Times 13 February 2013 Web. 1 March 2013

18 | P a g e

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

19 | P a g e

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?

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.

20 | P a g e

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

21 | P a g e

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

Dress

22 | P a g e

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?

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

23 | P a g e

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.

24 | P a g e

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.

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.

25 | P a g e

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.

26 | P a g e

27 | P a g e