DSW Designer Shoe Warehouse

AIM Consulting

Amber Chiles, Megan Florez, and Iryna Kuchurivska

Company Background First store opening in Dublin, Ohio in 1991 Discount Retailer of shoes, offering between

24,000-30,000 pairs of shoes in at least 2,000 styles

In 2008 launched an e-commerce site and mobile site

2010 annual revenue of $1.8 million In 2010, became the 2nd largest market share in

adult footwear. Competitors

Collective Brands, Inc. JCPenny TJ Maxx Zappos

Current Marketing and Target Market

Market to style and value conscious men and women

DSW Rewards program “Where’d you get those shoes?”

StrengthsLarge assortment at affordable pricesConvenient store layouts make shopping easier for customersAlways offer clearance priced shoes for budget conscious customers

WeaknessesLack of awareness of children’s shoes available onlineChildren’s shoes not available in store makes shopping difficult for parentsOnly a national brand, makes competition with international brands harder

OpportunitiesUtilize social media to gain a larger audienceAdvertise on mommy blogs, social media, and magazinesExpanding internationally

ThreatsRetailers such as TJ Maxx and Target, or other online retailers such as ZapposNeeds a stronger brand identity that allows them to compete with retailers that offer children’s shoes already

SWOT

Problem & Solution

DSW’s children selection is on-line only and poorly advertised creating an inconvenience for shoppers

Create a new target market and raise customer awareness by offering children’s shoes in-store. Change store layout and adjust VM

appropriately Addition of promotions Assortment

Store Layout

Kid’s SpaceSmaller shoes,

more product“Store” within a

storeKid-Friendly

shoppingStress-free

shopping experience for parents

Store Layout/Visual Merchandising

Kid-Friendly fixture Shelves with rounded edges and plastic

coverings Rubber floor pad where kids play Carpet where shoes are Shorter wall fixtures ▪ Attachments on merchandise to

prevent falling

Visual Merchandising Same color scheme throughout store Utilize lighting Present merchandise in a way that is

appealing to the new consumer without losing the aesthesics

Promotional Strategies Children-friendly ads Free purse promotion

with a purchase for Mothers and Daughters

Focus on emotional appeal of mother

daughter bonding Cartoon belts for boys

with a purchase of shoes 4 major season

advertisements and special back to school promotion

Growing our Consumer Target Market

Focus dedication to mothers and not women in general

Children mimicking their parents through dress

Focus on positive advertisement revolving motherhood and being fashionable

Future Consumers

Providing unforgettable experience for daughters and sons with their parents.

Focusing on children as future consumers of DSW

Giving an opportunity to connect with their parents

Assortment

Focus on delivering wide range of footwear for children ages 4-10 years old

65% casual wear 35% special occasions 60% girls shoes 40% boys shoes

Evaluation

Sales reads bi-weekly to gauge children’s shoe sales Market research on best and least selling

brands to ensure stocking accordingly in the future

Customer Feedback Online Surveys▪ 20-30 questionnaire▪ Incentives to participating like 15% off next

purchase upon completion of survey▪ 6-9 month period

Conclusion

The addition of children’s shoes at DSW locations will increase profit and give DSW the opportunity to compete with other brands and stores that offer footwear for the whole family.

QUIZ TIME!!

What year did DSW open its first store? 1991

How many pairs of shoes are in a typical DSW store? 24,000-30,000

Name two of the four competitors of DSW? Collective Brands, JCPenney, TJ Maxx, or

Zappos Name two of the three ways AIM suggests

DSW to solve their problem of no children’s shoes in-store? Store layout/visual merchandising, promoting

to a new target market, and assortment