Walter E. Smithe FurnitureMarketing Plan

The Smithe Brothers

TABLE OF CONTENTS Executive Summary

Market Analysis

Competitive Analysis

Brand Analysis Survey Results

Generational Insights

Consumer Behavior Insights

Competitor Website Insights

Audience

Creative Summary

Mood board

Creative Samples

Media Schedule

Budget

Long Term Planning

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Samantha Bakke Kylie Zavadil

Executive Summary

Brand Position:The Chicago Consumer who is passionate about the dream of a beautiful home, Walter E. Smithe is the only family-owned furniture retailer that offers a full interior design studio and premium quality with a lifetime warranty.

Smithe Campaign Message: Water E. Smithe’s customizing process is available with every piece of furniture and it’s easy to choose the furniture that match your taste.

WES Campaign Message: Smithe now offers the WES brand for a younger, upbeat audience.

Summary: Through our research findings we are suggesting the Walter E. Smithe adjust their target audience for both the Smithe line and the WES line.

Our marketing campaign will focus on 3 main touch points: the customer’s digital experience, customer’s in-store experience, and customer’s experience with traditional media. All of these touch points will work to enhance the customer’s relationship with the brand.

The three main digital touch points are the WES and Walter E. Smithe website, mobile application, and social media. Each medium will overlap with information and inter activity.

Digital components will include:

• Social media presence: Facebook, Twitter, Pinterest, and Blogs• SEO• A picture preference quiz• A live customer service chat room• A build-your-own-furniture application • A virtual catalogue with more variety • A track-your-furniture application that can be used across multiple platforms to encourage continued relationship

Traditional media will continue to be utilized with the support of digital. Walter E Smith commercials will still have the approachable fun charismatic brothers, however, a stronger emphasis on product will be apparent.

Traditional media will include:

• Television• Radio• Direct Mail• Outdoor• Email

Media Timeline:Traditional media will appear before major holidays such as January 1st, Presidents Day, Veterans Day, July 4th, Labor Day, Thanksgiving, December 26th. There will be short 1-2 week campaigns focused on recliners during Mother’s Day and Father’s Day. Dining room sets will have a 1-2 month campaign in October in time for holiday gatherings. Social media will run consistently all year round.

 Figure 1.1

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Market Analysis Industry Changing consumer lifestyle, rising disposable incomes, extensive choice of products, increasing migration to urban areas, and western influences are creating an increasing demand for a wide array of furniture products. The furniture industry operates very closely to the housing industry, which was severely affected by the 2008 economic downturn. While the American economy is slowly recovering, many furniture manufacturers are putting their focus on the developing nations of the world such as China and India in order to reduce costs. Reduced discretionary spending a longer furniture replacement periods have taken their toll on the furniture and fixtures industry as a whole. The global furniture and furniture industry will reach $436.5 billion by 2015. According to figure 1.1, within the U.S. alone, furniture and bedding sales reached $80

billion dollars. Of that 80 billion, stationary sofas and sofa-sleepers accounted for $12.1 billion (15% of the total market), master bedroom sets will account for $8.4 billion dollars (11% of the market), and bedding will account for $11.4 billion in sales (11% of the total market). It is safe to say that sofas and bedroom furniture are the most demanded offering of the furniture and fixture. According to the Retail Planning Guide published in December 2011 (figure 1.2), U.S. furniture and bedding sales will reach $96 billion, a 20.1% change from the year 2011. Of all the regions within the U.S., the south had the highest share of furniture and bedding making 37% of all sales. The Midwest and Western regions of the U.S. tied for 22% of all sales and the Northeast accounted for 19%.

Trends Many large retailers are marketing low cost furniture that can mass-marketed to the public. Many fear that the high cost of customized

furniture will drive down sales in a highly competitive and saturated market. There is an increasing demand for sustainable, multi-functionality furniture. Clean and simple design that also offers storage capabilities will be more accommodating to small and sometimes cluttered homes. New materials such as recycled wood and natural fabrics are meeting the needs of many environmentally conscious consumers. Colors themes lean towards neutral palate with bold pops of color and dramatic patterns in oranges and pastels. There is also a major trend among consumers to research online before making a major purchase. According to comScore, between 2009 and 2010, there was a 7.4% growth rate for online furniture category sales. Recent data from Grey Suit Retail shows that consumers spent, on average last year, 82% longer on sites that contain catalogs. And, e-commerce capabilities increased the consumer’s attention span by another 21%. Nearly eight out of 10 U.S. adults use the Internet. 58% of people conduct online research on a product they’re thinking about buying, according to September 2010 figures from the Pew Internet and American Life Project. They’re doing the research more often, too. Pew’s figures show that on any given day, 21% of adults are conducting online product research, up from 9% in 2004. And finally, a research report conducted by HGTV and Furniture/Today reported that when a customer goes shopping for master bedroom furniture, 60% of shoppers prefer to search online before they shop in store.

 Figure 1.2

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Smithe WES Crate & BarrelLogo

Product Specs Customized furniture from 201 workshops from around the world,Sleek with patterns

Customized furniture for ages 28-35

Modern, sleek, painted, mostly wood piece.

Brand Strategy Smithe brothers personality represent the furniture, family, and fun. They often reference pop culture and media in commercials to make their brand memorable.

Sophisticated and modern furniture for young middle class.

Sleek, clean furniture for the middle upper classes

Price Does not list on website. Average price of sofa is $2000.

Average price of sofa is $1,000

$2,600 - $5,000

Positioning Statement

Only furniture retailers that offers a full interior design studio, and premium quality with lifetime warranty.

Furniture for those who want to feel modern with youthful and classy charm.

Crate & Barrel offers lifestyle that is elegant, clean, and natural in appearance.

Competitive Analysis

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Ikea Thomasville Ethan Allen CB2

Minimalistic, streamlined, geometric shapes, sometimes bold, bright colors

Classic furniture with small details and hand crafted appeal

Divided by lifestyles, widest rage of furniture design

Sleek modern, bold, minimalistic, best compares with Ikea

Create an environment that people do not want to leave

Classic modern furniture for the 40+ generation - for those who want a piece of their young years but with a trendy touch.

Demonstrate a sexy, sleek, and cohesive style that can fit in any home.

Target the young forward thinking audience who wants to make a statement

$400 - $1,200 - Main competitor with WES

Prices not listed on website. Customized furniture

$2,000+ $8,000 to $1,200

Affordable, modern, and youthful furniture that creates a personal atmosphere in every room

Classic style furniture for those who want elegance and a crossing between modern and old school charm

A style for everyone that all others will envy. Creates status with furniture.

Sleek modern furniture that will move you into the future of sleek and modern.

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Brand Analysis SummaryWalter E. Smithe is a Chicago based, family owned, luxury furniture store that was established in 1945. There are currently, 11 showrooms that generate over 70 million dollars in annual sales. They have 450 sales force employees, 225 interior designers, and 900 independent designers. Walter E. Smithe is part of the #1 furniture retail market in the world, Chicago, Illinois, which grosses $3.5 billion in furniture and interior design sales annually. Water E. Smith market share has increased a point or two in the past year due to many exclusive lines becoming available. Brand PositionFor the Chicago Consumer who is passionate about the dream of a beautiful home, Walter E. Smithe is the only family-owned furniture retailer that offers a full interior design studio and premium quality with a lifetime warranty. Brand PersonalityThe three Smithe brothers are the face of the brand. They are genuine, humorous, and personable. Current Market ConditionsChicago is highly competitive with over 100 retailers. Foreign production (China at $10 billion, Canada at $4 billion) is driving down prices. The market is consolidating (Wicks, Bay Aronson, and John M Smyth, Marshal Fields, and Plunketts have closed their doors forever). Decreasing housing starts has negatively impacted affect

traditional furniture stores. With the current high unemployment, consumers are not feeling confident and are hesitant about spending what little discretionary income they do have.

Target MarketThe current demographic of Smithe’s target market are females, ages 35 to 54 with a combined house hold income is 100k a year. They value family, quality, fashion, and style. They are proud of their home and consider themselves to be self-actualizes. The new WES brand targets 28 to 35 year olds. They are considered aspires.

4P’s

ProductWalter E. Smithe’s furniture selection comes from workshops around the globe. They offer over 2,000 unique frames and 5,000 exquisite fabrics and leathers. Famous lines they carry include Paula Deen, Martha Stuwart, The Keno Bros. Collection, Lauren by Ralph Lauren, Hotel

Maison, Pierre Deux by Highland House,

and Henredon Collection.

Over 225 designers give their customers a personal

consultation to meet their

individual design needs. Furthermore,

Walter E. Smith’s staff will also take personal

measurements of their customer’s home in order to make proper product recommendation. Facts:• 60% of Smithe’s customers chose to customize their purchase.

• Average turnaround time for furniture order is four weeks.• The average sale results in 2.6 items being purchased.• Couches and sofa’s are replaced on average every 10 years.• Dining room tables are replaced on average every 25 years.

PriceWalter E Smithe caters to the upper-middle and premium niche positions. Smithe’s brand warranties, and interior designs are a “license to charge a premium.” The average price of a custom sofa is $2,000. The new WES line will offer a more affordable line of furniture for half the normal price at around $1,000 a piece. PromotionsSmithe offers sales periodically throughout the year encompassing product discounts, complimentary in-home consultations, extended financing, cash discounts, and/or coupons. 85% of their marketing mix is television commercials. Place11 retail outlets throughout the metro Chicago land, including northwest Indiana. SponsorshipsStrong backing of the Chicago Cubs Baseball team.

Target MarketThe current demographic of Smithe’s target market are females, ages 35 to 54 with a combined house hold income is 100k a year. They value family, quality, fashion, and style. They are proud of their home and consider themselves to be self-actualizes.The WES brand targets 28 to 35 year olds. They are considered aspires.

You dream it. We build it.

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Swot Analysis

Strengths• Smithe has acquired previously exclusive furniture collections to their product mix• Great customer relationship and follow up procedures• Only store in the Chicago area that offers a full interior design studio and premium quality with a lifetime warranty. • Multiple locations throughout Chicago land area• Family owned image makes them approachable and friendly.• Strong celebrity backing by Oprah, Martha Stuart and Paula Dean

Weaknesses• Website is out of date.• Poor picture quality display on Facebook. • No presence on Pinterest.• Some stores appear over crowded• Disconnect between commercials, website, and in store experience. • Website does not list prices• Consumers do not understand how furniture customizing process works

Opportunities• Expanding to Arizona and Florida to market to retired Smithe• WES line gives opportunity to target new demographic while expanding companies overall market share. • Further expansion of brand presence on social media websites• Improve customer experience by expanding product offering with room accessories (vases, kitchen materials, paintings) and bedding materials• Offer a sustainable furniture line• In store restaurant or hospitality offerings

Threats• Disposable income has been made practically unavailable since the economic downturn on 2008.• Major competitors have larger advertising budgets.

Pest Analysis

Politics can be a very touchy subject and therefore can be a very tough situation to read. As of right now, America is in a serious state of bankruptcy, which is affecting the small business owners such as Walter E. Smithe. The decisions the American people choose will heavily sway how Walter E. Smithe will continue to do business. Consequently, if President Obama becomes President again, a lot of large manufacturing companies will be moving to developing countries to keep their businesses above water, which would be a great idea for the business, Walter E. Smithe to seriously think about.

The Economy has affected the furniture marketing dramatically. It all started with the falling housing market, which meant less demand for expensive furniture. Then sites like Groupon, Craigslist and Amazon made it exponentially hard for higher end businesses to make money because they would discount products that were equally as good as the luxury brands at a lower price. Moreover, large manufacturing companies are moving to developing countries such as India which is taking away profit from made in American companies such as Walter E. Smithe Furniture companies. Also, America is in financial troubles and China is neck and neck with the United States and if we don’t get out of this financial turmoil, China will overtake America and start controlling important matters.

Social problems have really changed the way of living over the past 5 years. It is very hard to tell what the future design will be however, according to http://www.flixxy.com/ , transformable furniture will be over taking our store floors. Pieces that one can use throughout their whole lifetime. Such as a baby crib can be turned into a twin bed after they have grown up and are ready for a regular size bed. Then the bed can be transformed into a table. This could pose a probably for Walter E. Smithe because this would mean less purchases for when the person grows up. If one can keep reusing a piece of furniture since they were born, the buying frequency would decrease. Another social problem Walter E. Smithe needs to be aware of is the fast growing obesity rate. Car seats, airplane seats, and furniture have all expanded the regular seating size. It could attract a new customer if they knew Walter E. Smithe carried extra large furniture. Lastly, the green movement has been tremendous and a lot of people look at the fact that it is green certified. With this being said, it would be wise for Walter E. Smithe to consider using more green materials and maybe even some recycled materials for the future.

Technology is the fastest growing trend and it is nearly impossible to keep up with it. However, we thought that developing patterns would not only be on the furniture but it could be a backsplash for behind the television or even matched to be made into wallpaper. Matching in unique ways is a tricky piece of technology and Walter E. Smithe would be wise to look into the growing technological trend.

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Furniture Survey Results & Insights The first survey we gave participants on furniture preferences and buying habits of those surveyed. Twenty-five people of all ages responded. Seventy-eight percent were female.

Key Insights: Consumers need to know that Walter E. Smithe has a wide selection of pieces and that they can be custom made to fit individual preferences. Walter E. Smithe should focus on these three furniture attributes when advertising to their target audience.

• Comfort (58%), price (48%), and design and pattern (64%) were Considered to be the most significant reason why consumers purchase furniture.

• 84% of consumers feel that customized furniture is out of their price range.

• Consumers believe that chain furniture stores, such as Crate & Barrel, do not always have a better selection than local stores. • 68% of respondents had shopped at Ikea, followed by Crate & Barrel (24%) and Pottery Barn (20%).

Price

Customer Service

Design and Pattern

Location of Store

Family/Friends Referred Me

Customer Service

Online Reviews

Comfort

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Brand Survey Results & Insights

The second survey focused on the Walter E. Smithe brand. Participants were asked to view and comment on different aspects on the brand.

Participants viewed Walter E. Smithe’s website and wrote down their first impressions. Listed below are some key responses.

Positive Responses:

“It’s classy, old money, not affordable to the “regular” clients/shoppers. Good taste in style.”

“At first glance it looks like they would have high quality furniture, but try to make it as affordable as possible with sale and discount opportunities”

“Excellent quality. Outstanding service. Not cheap, but a reasonable value.”

“Looks expensive and sturdy”

Neutral Responses: “At first glance it looks like they would have high quality furniture, but try to make it as affordable as possible with sale and discount opportunities”

“The furniture itself looks really nice, but the page is very cluttered and difficult to take in.”

“It looks older, could be more sophisticated. The ad makes me feel like only older people/married people would be looking at furniture like this from a place like this. It looks trustworthy but a little on the warehouse furniture side” Negative Responses:

“Too traditional / stuffy, a bit low quality.”

Figure 1

“Welcoming but a bit dated. The layout suggests it’s targeted towards an older audience”

“The brown makes it look so gloomy and serious like a law firm or funeral home”

Key Insights: Some respondents felt that the website and furniture were stuffy and outdated, perhaps for an older target audience. Others felt that the website communicated high quality.

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Survey Results & Insights Continued

We asked survey takers to please give their opinion of this Walter E. Smithe’s “Chicago Brothers” 2006 commercial and what message they felt it communicated.

Positive Responses:

“It seems to communicate that the furniture is quality and might be a bit more money because of that.”

“It looks more on the expensive side, but it also looks high quality and worth the price. The family atmosphere of the commercial also makes the store look more welcoming and friendly. You would want to buy furniture from them to help them be successful.”

Neutral Response:

“I like that the brothers are in the commercial. I thought it was humorous with the handle signal for the ‘E.’ You don’t see much furniture except two showcases.”

Negative Responses:

“The first two guys are great, makes it seem like fine furniture, but the part that has the guy who says, “Smithe with an E” is a little cheesy. The part about the designers should be clarified - not clear if that’s part of the standard price or what.”

We also asked them to watch Walter E. Smithe’s “Cicada Sale”

commercial. We were worried that the humor of the commercial made a disconnect with the luxury quality of the brand. Our hypothesis was proven true. Here are some responses that we received.

Positive Responses:

“I love this ‘Cicada Sale‘ commercial! Luxury? Not really, but it’s so fun, who cares! I’d get to the store, for sure.”

Neutral Responses:

“No, it doesn’t communicate luxury, but it does say to me that sales at Smithe are rare. So, we should take advantage of any sale at Smithe, when it happens.”

Negative Responses:

“This is ridiculous. Not a single piece of furniture is even shown and it’s hard for me to take them seriously at all.”

“WHAT DID I JUST WATCH!? It doesn’t even communicate that it’s for a furniture, let alone luxury!”

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Key Insights: Walter E. Smithe’s

commercial viewers find the brothers to be welcoming and approachable. Sometimes the commercials do not focus on the product enough to signify

that is it is a customized furniture brand.

 

Generational Insights

Technology/Digital MediaAccording to Pew Research Center (Feb. 2010), Millennials and Gen X’ers are more technologically connected than ever before. They are highly engaged with video content with around 23% - 32% watching videos online daily. They have social networking profiles and visit them quite often. Thirty-two percent of Millennials and 22% of Gen X’ers have posted a message to an online profile in the past 24 hours. Not surprisingly, Millennials as a generation are more open to sharing personal details about their life which makes them a valuable for resource for marketers. They readily embrace their role as brand ambassadors for their favorite products. Nearly 62% of Millennials and 48% of Gen X connect to the Internet wirelessly out of home via a mobile device. Perhaps the most startling fact of all is that over 65% of Gen X’ers and Millennials sleep with a cell phone next to their bed. The presence of technology in Millenials and Gen X’ers in undeniable. Walter E. Smithe should strive to have a prominent digital footprint among these generations if they wish for their brand to succeed in this ever changing environment. The brand’s digital media should include a mobile application for a tablet and smart phone, a highly interactive website, a strategic set of Email blasts, a strong social media presence, and an online catalog in order to remain valuable in the customers mind.

Life Priorities and OutlookRoughly a quarter of Millennials(23%) say they are currently married, compared with 59% of Gen Xers and 64% of Boomers. Beyond marriage and family, 21% of Millennials say that helping people who are in need is one of the most important things in their life. Older generations agree—20% of those ages30 and older say helping others is one of their most important goals. Equally important is owning a home. Among Millennials, 20% say owning their own home is one of the most important things to them.

Similarly, 21% of those ages 30 and older place the highest importance on owning a home.

This information suggests that Walter E. Smithe could potentially used these reoccurring themes of home ownership, marriage, and acts of good will among generations to market both the WES line and main brand to their target audiences. Going GreenProtecting the planet is a multi-generational cause these

Walter E. Smithe should strive to have a prominent digital footprint for their brand.

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days. Most Millennials recycleand try to buy green products, but the same can be said of adults of all ages. In fact, Millennials lag behind their older counterparts in terms of recycling. This is probably more an outcome of their stage in life than a measure of their commitment to the environment. Roughly seven-in-ten Millennials (69%) say they recycle paper, plastic or glass at home. That compares with 77% of Gen Xers, 72% of Boomers and 77% of Silents who recycle.

Millennials are just as likely as other age groups to say they try to buy green or environmentally friendly products, even if they are more expensive. Just over half of Millennials (53%) say they buy green products. Roughly the same proportion of Gen Xers (55%), Boomers (54%) and Silents (51%) say they do so as well. Income is a barrier to buying green products for adults of all ages—63% of Millennials withannual household income of $75,000 or more say they try to buy green products, as do 62% of those 30 and older in the same income category. That compares with less than half of those whose annual income is below $30,000.

This new moment towards a more eco-friendly lifestyle presents an opportunity for Walter E. Smithe and the Wes line in the future. Walter E. Smithe should consider including recyclable and sustainable materials in their furniture selection process.

 

Consumer Behavior Insights

Facts:

• 70% of Americans now say they look at product reviews before making a purchase.

• 79% of consumers now say they use a smart phone to help with shopping?

• The data revealed that the average shopper used 10.4 sources of information to makeA decision in 2011, up from 5.3 sources in 2010.

• 80% of reviews on the site of a given retailer are written by the top 20% of their customers by lifetime value. They are called the super shoppers. “People are scared to death of messaging not being all positive,” says Dave Reibstein. “But negative comments add authenticity.”

• 83% of moms say they do online research after seeing TV commercials for products thatInterest them

ZMOT - Zero Moment of TruthThe process of meeting consumer needs begins with the Zero-Moment-of Truth (ZMOT). Consumers are consistently searching online before they ever make a purchase decision. In former models, consumers reacted to a stimulus (some form of advertising) and they headed straight to the store to purchase that product, the “First Moment of Truth.”

Today, consumers want to know everything about a product and in most cases have made a decision about what they are going to buy a product before they set foot in a store. It is essential in today’s technology driven world to give consumers something to research about your product. Your company has the ability to be in the presence of the potential consumer the moment they are thinking about buying. Having an online and mobile presents is a must.

Key Insights: A successful SEO program is a must if Walter E. Smithe wants to be present in the ZMOT process. Additionally, it is extremely important to list key product facts including price, customizing details, and product endorsements on the website in order to drive traffic from the website into the store.

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Key Insights: Social media, brand

websites, product review sites, and online search

engines play a major in the consumers research

process.

Competitor Website Insights

Target Audience ConsiderationsWe examined Walter E. Smithe’s competitor websites. Something important that we found was that Smithe’s main competitors, Crate and Barrel and Ethan Allen, views were by females who lived in a house and had an average house hold income between $50,000-$74,999.

Additionally we have found that WES’s main competitors, Ikea and CB2, are perhaps targeting a younger consumer than WES. There is a significant amount of 25-34 year olds doing research on the site.

Recommendations:Based on this information we are suggesting that Walter E. Smithe target a female consumer with a lower household income ($50k +) that is comparable to its competitor’s target market. We believe that instead of having a target age range of 28-34 for the WES line, it should include those who are 25 and older so as not to alienate the younger consumer.

Crate and Barrel

Ethan Allen

Ikea

CB2

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Average Time on WebsiteAfter examining all of Smithe’s and WES’s competitors average time on website, we found that they spend an average of 6 to 9.5 minutes on the website. During that time, consumers are doing research about what that store has available. We believe this is Online with Goggle’s ZMOT theory and that consumers are gathering information and making up their mind about a purchase before entering the store. We were unable to pull Walter E. Smithe web statistics because their online presence is not considered substantial by Google to include in their web analytic library.

This is an indication how important it is for Walter E. Smithe to improve their website and engage their audience online while offering the most up to date information about their products. This will include professional photography, price indication, and some form on brand interaction to keep them on the web site longer.

Furthermore, we examined who is viewing Smithe’s and WES’s competitor websites based on their interests and keyword searches. The interests and keywords listed can be used in your search engine optimization efforts. This will allow you to compete for words with your competitors and drive more traffic to your website.

Crate and Barrel

Ethan Allen

Ikea

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Target Audiences

This is Sue Heartman. She is your typical Walter E. Smithe costumer. Sue is 45 years old and also has a bachelors degree. Combined with her husband they make close to $80,000 a year. She wants to admired by her friends and family when they walk into her home. She also values comfortable living and believes her home decor is an expression of her personality. She drives a mid size SUV Lexus. She makes most of the purchase decisions in the house hold and is constantly on the move running errors. She wants her teenage sons to grow up in a home in which they can be proud.

This is Betsy Rowlands. Betsy is 26 years old and has a bachelors degree. She has just been promoted at her current career and makes an income of $36,000 a year. Betsy lives along and rents a nice apartment in the city of Chicago. She aspires to have an apartment that is a reflection of who she wants to be and what her goals are. She values the importance of comfortable living. She loves watching Modern Family and watches the news on the daily bases. Betsy is extremely fluent in technology and is very brand loyal.

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Motivations to Purchase

Reasons why she buys furniture: • Her old furniture has worn out over the years and it’s time to replace it• She wants to update the look and feel of her home to be in line with modern style• She believes that her furniture is a form of self expression• She has just moved to a new home and wants furniture to fill it• She enjoys entertaining guests and will need new furniture that better accommodates them

Reasons why she buys furniture: • She just moved up the income latter and want to have furniture that reflect her new lifestyle• She was possibly just married and moved into a new house with her spouse. She’ll need furniture to fill it. • She is experimenting with style and wants to try something new• Perhaps she is receiving a college graduation present• She wants to impress her friends and relatives

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Walter E. SmitheCreative Brief

Who are we working for: Walter E. Smithe

What are we trying to ac-complish for them? Bring Walter E. Smithe’s sales back to their height before the recession.

Who are we talking to and what do they care about?Females age 34+ with HHO 50k +, with some college or greater educational background

They care about impressing those who come to their home and they want others to think that they are successful and on top of trends.

What is the single most meaningful promise we can make about this product service?Water E. Smithe’s customizing process is available with every piece of furniture and it’s easy to choose the furniture that match your taste.

What is the brand insight? Many consumers don’t know that customizing comes standard with purchase. Many feel that it is out of there price range. Walter E. Smithe has over 500 collections to choose from with thousands of fabrics available all under one roof.

What should the brand mean to the audience?

Walter E. Smithe furniture is a way for the audience to express their individuality and personal taste. They are the go to for customized furniture and reliable service.

What else is it important for use to know about this com-munication?Technology is a driving force in this market. Consumers are re-searching the brands before they visit the stores.

What media will be used?• Banner ads and side panel ads• Facebook cover photo • Television• Radio• Direct mail• Outdoor board• Email insert

WES Creative Brief

Who are we working for: WES line

What are we trying to accomplish for them? Create a 50% brand awareness among target audience in Chicago land and motivate them to purchase pieces from this new, hip furniture line.

Who are we talking to and what do they care about?Females 25+ with HHO 50k + incomes with some college or greater educational background. They aspire to have a home that’s stylish, cool, and comfortable.

What is the single most meaningful promise we can make about this product service?The WES brand offers a wide modern range of furniture that will match your personality and style.

What is the brand insight?The WES brand is more affordable extension of the Smithe line that has a more youthful, feel.

What should the brand mean to the audience?Purchasing this furniture is the first step towards unique style and the next phase of their adult life.

What else is it important for use to know about this communication?Technology is a driving force in this market. Consumers are researching the brands before they visit the stores.

What media will be used?• Banner ads and side panel ads• Facebook cover photo • Television• Radio• Direct mail• Outdoor board• Email insert

 

Walter E. SmitheMood Board

The image above is our inspiration for the Walter E. Smithe brand. We believe that the when a customer enters a store they should experience the about sensations. We believe the brand should remind users of their home so they can visualize the furniture being part of their lives. The furniture should be comfortable, calming, and welcoming.

Our surveys reveals that customers previously viewed the Smithe furniture as somewhat stuffy and old. We believe that the new color palette to the right will help Walter E. Smithe become a more fresh and vibrant brand, just like the three Smithe brothers.

The colors are rich and deep. These colors are rich, organic and create a presence or statement of power importance.

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WES LineMood Board

The image above our inspiration for the WES line. We believe that the when a young customer enters a store they should experience the sensations listed above. We believe the WES line should make the customer feel vibrant and confident while the patterns and style.

The new WES color palette is filled with vibrant yet natural tones. These colors are energetic yet calming all at the same time. We felt it was important to include some neutral tones as well so the WES customer will have options when choosing a coordinating accent furniture pieces.

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New Walter E. Smithe Site

Website

Landing Page Just like the store, the website will have a loading page where the viewer is able to choose which brand they want to view. There will be the WES logo and the Walter. E Smithe logo. Once the viewer clicks on the desired brand, it will direct them to only the web-site they chose. Additionally there will be a Facebook link, live chat option, prices and estimates, and a picture furniture personality quiz.The WES home page is intended to be super sleek and modern.

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New WES Site

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Social Media

Facebook• Use a cover photo that expressed brand personality and promotions• Content should explain about upcoming promotions, the newest commercials, new products, and perhaps family news if it relates to the brand• Utilize Facebook time line to highlight was is important and minimize smaller stories.• Update minimum of once a week

Twitter: • Update everyday• Should be done be done by one of the brothers, a social media expert, or the design staff themselves.• Try to focus on the product and trends in the furniture industry. • Re-tweet if someone comments on Walter E. Smithe in a positive way.

Pinterest:• Post your room designs for people to share. • Always link photos back to your website.

Blogs• Entries should always be about current industry trends and the brands relationship with the customer.

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“Track Your Furniture” Application

Yelp reviews and personal interviews revealed that many customers were dissatisfied because their furniture was made wrong. The “Track your Furniture” application allows the customer to track the manufacturing process of their furniture so they can notify the right party if the furniture is not being made according to their personal specs. When a furniture engineer assembles the piece, he must take a picture, upload it, write a brief sentence or two of what he completed, and sign his name. They can access this via their online account, iPad, or smart phone.

In-store Furniture Customizing Application

The in store furniture application is a one of a kind application. We wanted to focus on the costumer and make them feel very warm and welcoming. We would greet them at the door with a cup of coffee and an IPad. While browsing the furniture in side the store, they will scan the QR code that will be located on the side tag. After they have scanned all the furniture they liked, they are able to go through the application and apply any type of fabric they’d like. Also, they will be able to go through and pick out different armrests, different cushions, different legs and anything else they find appealing. After they choose everything they like, they will be able to upload all the information they put together and

meet with a designer (the designer is able to meet before the process too). Once they are done using the Ipad, they are able to save all the information they picked out onto their user name. Therefore, once they get home they are able to access the information through their personal home computers.

Online Catalog

The online catalog should be focused on all the furniture that is present in the store. A virtual catalog will be on the website will be present for the viewer at home.

Outdoor Board

The billboard, which will be on 90-94, and bus stop advertising, which will be on Michigan Avenue, will be taking place during the spring where foot traffic is booming and higher income shoppers are shopping and commuting into the city to go shopping. Outdoor board will be placed twice a year for one month at a time.

Television

Television will focus on more furniture than humor as to display the product and allow the customer to see selection and understand the brand. Commercials will run around major holidays when people are off work and have more time to shop.

Email

Email blasts will be done once a month with people who subscribe. Inserted in JPG format and have promotions and new furniture arrivals as the main focus.

Radio

Radio will happened seasonally or four times a year. Promotions and new furniture arrivals will be the main focus of the radio commercials.

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Budget

Walter E. Smithe

TOTAL BUDGET: $1,890,000

Digital: • Facebook = $65,000• SEO (Google Ads) = $250,000• Direct E-mail = $0• Twitter/ Pintrest = $0

Traditional Media: • Television Commercial = 1 Million + Production• Radio = $500,000• Direct Mail = $40,000 (Printing, paper, shipping, stampage)• Outdoor Billboard (bus shelter) = $35,000

WES Line

TOTAL BUDGET: $2,110,000

Digital: • Facebook = $ 80,000• SEO (Google Ads) = $300,0Di00• Direct E-mail = $0• Twitter/ Pintrest = $0

Traditional Media: • Television Commercial = 1 Million + Production• Radio = $ 600,000• Direct Mail = $ 50,000 (Printing, paper, shipping, stampage)• Outdoor Billboard (bus shelter) = $ 50,000

JAN   FEB   MARCH   APRIL   MAY   JUNE   JULY   AUG   SEPT   OCT   NOV   DEC  

WES/  Smithe  

6   13  

20  

27  

3   10  

17  

24  

3   10  

17  

24  

31  

7   14  

21  

28  

5   12  

19  

26  

2   9   23  

30  

7   14  

21  

28  

4   11  

18  

25  

8   15  

22  

29  

6   13  

20  

27  

3   10  

17  

24  

1   8   15  

22  

Social  Media  

                                                                                                 

SEO    

                                                                                                 

Email                                                                                                    

WES  TV  

                                                                                                 

Smithe  TV  

                                                                                                 

Radio                                                                                                    

Direct  Mail  

                                                                                                 

Bill  -­‐    Board  

                                                                                                 

 

Media Schedule

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JAN   FEB   MARCH   APRIL   MAY   JUNE   JULY   AUG   SEPT   OCT   NOV   DEC  

WES/  Smithe  

6   13  

20  

27  

3   10  

17  

24  

3   10  

17  

24  

31  

7   14  

21  

28  

5   12  

19  

26  

2   9   23  

30  

7   14  

21  

28  

4   11  

18  

25  

8   15  

22  

29  

6   13  

20  

27  

3   10  

17  

24  

1   8   15  

22  

Social  Media  

                                                                                                 

SEO    

                                                                                                 

Email                                                                                                    

WES  TV  

                                                                                                 

Smithe  TV  

                                                                                                 

Radio                                                                                                    

Direct  Mail  

                                                                                                 

Bill  -­‐    Board  

                                                                                                 

 

Long Term Planning

Long term planning is critical. Through the extensive research we’ve collaborated, the 3 main factors are, being completely eco-friendly, focus some attention on multi cultural marketing due to the rise in the Hispanic population, and start a social good program because Millennials in particular feel that helping others is very important to them. Programs could include giving 10% of profits to help give children beds or possibly helping homeless veterans.

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Appendix and First Hand Experiences

Crate and Barrel - North and Clyborn I visited Crate and Barrel lo-cated next to the Red Line stop on Tuesday, February 14, 2012. The first floor is filled with kitchen accessories, pillows, blankets, vases, and fresh flowers. Shelves are very high and stocked full. On top of the tables, featured items are on display with price clearly marked. One of the sales people approached me and asked if I need help looking for something. I told her no then she proceeded to tell me her name and where she would be located in the store if I need her. After exploring the first floor, I mad my way to the sec-ond floor via escalator. The walls were covered in light yellow-white stone. The floor mainly focuses on very neutral color of furniture. Some had patterns or colors that were colors found in nature. None of the furniture color pallets were overstated, however some had an accent color with neutral under-tones. Each area had it’s own vignette.

CB2 - North and ClybornThis store is targeted towards a younger demographic. Furniture is more affordable than Crate and Barrel and would be a direct competition with WES new furni-ture. This furniture is very modern and sleek. Color palette consists of bright colors such as blue and orange. Customer service was not present. Salesmen waited at the checkout counter and did not approach me as I looked through the store.

Store ObservationsI visited Walter E Smith furniture store on 2009 North Clyborn, in Lincoln Park. Arhaus Furniture is their direct competitor location wise at the corner of Clyborn and Cortland. There is also a Back to Bed across the street that may compete for mattress sales. Upon entering the store, there is a nice dining room set located to the left of the door followed by a set of stairs that lead to the main level. The store is open and airy with wood ceilings and beams across for support. There is an abun-dance of natural light and some skylights as well. Most furniture is slick, and lacks bulk and stuffing. In most cases patterns pieces are often accompanied by neu-tral shades of color either in the carpet, wall paint, or pillows. Most furniture sets on display are arranged in a room setting with different accents such as a flowers, art work, and vases on the table. Each piece coor-dinates together to make a full bedroom set. In the center of the store, they have an area where all of their fabric samples are hung. It appears that they have at least 300 samples of fabric to choose from. After wondering the store for about 5 minutes. After wonder-ing the store for about 5 minutes I was approached by a young sales women named Emmy Kolovic. She immediately asked if there was anything in particular for which I was looking. I told her that after graduation my parents had agreed to buy me furniture as a graduation present. She explained to me that any furniture style I liked could be altered with any fabric and that normal orders take up to eight weeks to deliver. I asked if she had any catalogs available and she replied that they didn’t. However, all furniture styles were available online. She preceded to hand me her card

and wrote down some major brand that they carry. The first un-usual place I went to Joes Bar on Weeds Street. There were a lot of young, “hip” people there. Nobody was drinking wine, and everybody was drinking beer. My experience was that if there is some sort of music that people could relate to, people will enjoy their experience a lot better. Also, if people go with friends, they seemed to have a lot better of time then going by them-selves. An insight I have came to conclusion for the Smithe & WES Brands would be to do some mar-ket research on what is the most favorable music for each brand. Since the WES brand is younger and more hip, they might play more contemporary music. How-ever, if they were to play music in the Smithe store, they would probably play more jazz music or oldies. The second place I vis-ited that was unusual was Amish Bakery store inside a mall (not sure which one). This was a very unique experience. Something’s I observed was that people were kind of hesitant to go to the bak-ery because it seemed like they were afraid of the people. How-ever when I went over there, they were the nicest more welcoming people. They helped me in any-way possible. An insight I could draw for the Smithe and WES brand was that they need to have welcoming and heart warming people. Even though people were hesitant to go see what the Amish people were selling, maybe the Amish people weren’t as welcom-ing as when you actually went over there to go speak to them. Therefore, the people that work at the Smithe and WES Store need to look and feel welcoming to the customer. Otherwise the people will react badly.

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Favorite Piece of FurnitureMy favorite piece of furniture is actually not exactly furniture but I use it on furniture. What I am talk-ing about is my, heated blanket. First off my lovely boyfriend gave it to me and secondly it keeps me warm all throughout the night and never fails me. I also love it be-cause I can plug in anywhere and it’s easy to wash. Lastly, it’s big however I can fold it up to a pretty small piece and store it.

My favorite piece of furniture is my “boss” chair. It has a super high back, wooden arm rests, and legs that look like lion’s feet. The patter is red with gold flow-ers. The chair makes you feel powerful and important, hence the name “Boss” chair. Perhaps all of the furniture in the WES line should be named after people of power and influence rather than just simple commons names. I went to a restaurant near my house and it had lighting that was mounted on the walls. The Smithe store that I visited on North and Clyborn lacked atmosphere and lighting. Perhaps the furniture should have stylized lighting to give it more personality. I went to a family owned coffee shop with antique furniture and family photos on the wall. Appar-ently the coffee shop had been owned by two generations of fam-ily. I think it would be nice to have Smithe family photos as part of the interior design. Perhaps, the Smithe brother could offer framing as part of their design process. We turned to a page of the local newspaper and there was some form of Easter sale going on in one of the adds. Sam and I no-ticed the strong grass pattern at the bottom. We began to wonder if the Smithe brothers could of-

fer a custom pattern creation for their clients. Clients could have a unique pattern that only they would have rather than choosing from existing patterns.

Sight: -Clean and collective put together sample rooms. -Picture Preference Quiz - Greeters and/or Sales people with smiles and ready to work - Luxurious price tags - Simple and organized - People enjoying themselves with their family - People testing out the furniture

Smell Homemade baked cookies New furniture Wood Clean Fresh

Taste Homemade baked cookies

Feel Relaxing Self gratification Soft Inner love (I have worked hard and am able to buy nice pieces of furniture). Safe and secure

HearLaughter HappinessPeople discussing choices

Unique medium Digital Magazine or perhaps wel-come home gift courtesy of WES. My favorite piece of furniture is my “boss” chair. It has a super high back, wooden arm rests, and legs that look like lion’s feet. The patter is red with gold flow-ers. The chair makes you feel powerful and important, hence the name “Boss” chair. Perhaps all of the furniture in the WES line

should be named after people of power and influence rather than just simple commons names.

Inspiring Insights I went to a restaurant near my house and it had lighting that was mounted on the walls. The Smithe store that I visited on North and Clyborn lacked atmosphere and lighting. Perhaps the furniture should have stylized lighting to give it more personality. I went to a family owned coffee shop with antique furniture and family photos on the wall. Appar-ently the coffee shop had been owned by two generations of fam-ily. I think it would be nice to have Smithe family photos as part of the interior design. Perhaps, the Smithe brother could offer framing as part of their design process. We turned to a page of the local newspaper and there was some form of Easter sale going on in one of the adds. Sam and I no-ticed the strong grass pattern at the bottom. We began to wonder if the Smithe brothers could of-fer a custom pattern creation for their clients. Clients could have a unique pattern that only they would have rather than choosing from existing patterns.

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