final west elm paper

Shawna Justus-HenryJinah KimAshley NelsonEmily Wiley

SMHM 3850

Promotional Campaign Project

TLC Promotions

Overview

TLC promotions main objective is to get the West Elm’s company name out there to the public. Many people are aware of the West Elm store, but the company itself lacks advertising their brand name more to their consumers. With all efforts we want to reposition this company and get the name out there to open up a broader consumer base through HGTV and local home builders such as: Landon Homes and American Legend Homes in Texas. We think this will be the best thing for the West Elm company considering the fact that West Elm is an eco-friendly environment, which needs to be stressed a lot. The home builders we choose are also conscious of the eco-friendly environment as well. This is what sets West Elm apart from its sister stores Pottery Barn and Williams Sonoma. When our consumers can get a better insight on what sets West Elm apart from their sister store, we can establish a more effective way of advertising to consumers to boost sales.

Situational Analysis

Cultural Context

One of the world-wide pressing issues and concerns has been saving the earth from global warming by using less fuel, a decrease in the release of fumigations into the air, less release of harmful chemical wastes, saving the water, and sustainability by exercising recycle, reduce, and reuse (United States Environmental Protection Agency). West Elm quickly realized and targeted a market that many home furnishing retailers have not yet thought about and became one of the first home furnishing retailers who are providing sustainable products and making aware of this necessary cause. The “green”, eco-friendly, and sustainability movements influence the general public to participate at least in smaller ways in daily lives such as discarding soda bottles into recycling bins, and that makes people feel like they are making a difference, so why not own furniture, decorative accessories and textiles that are made from sustainable products/methods as well. It makes the consumers have a positive purchase experience and also allows them to feel like they are part of good cause, which they are. West Elm’ adaptation of blog’s represents the company’s young, unique, artistic and luxurious aesthetics and connects the West Elm brand with mature young demographics (http://blog.westelm.com).

Historical Context

West Elm produces a wide range of products from decorative accessories to furniture that can be utilized in any room of the home. Their designs are known as contemporary modern,

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high-design aesthetics at affordable prices that offer a major value (Speed, 2011). Their products are packaged with clear instructions and sustainable efforts to support the quality of their merchandise. The current promotional strategies include catalog distributions, limited time only sales ranging from 20%-15% off promotions (West Elm®), and at the end of each season they promote bigger percent off sale and clearance items. West Elm does not have many brick and mortar store locations, but the few that exist allow customers to get a true feeling of what the company is all about. Through the use of big windows, natural light gives a bright warm inviting environment; products are displayed spaciously from each other, eliminating clutter and confusion, allowing customers to shop more conveniently. The store sales staff present the product image as well; they are mostly young, trendy dressers, and helpful when it comes to product knowledge or just overall customer service. West Elm’s main advertising strategy has been catalog distributions and a rare billboard here and there, which are usually located near target segments in popular areas like Uptown Dallas. The targeted consumers are young women professionals, thus creating a very narrow segment. West Elm needs to expand to bigger demographics and can do so through brand repositioning. TLC Promotions propose to partner with HGTV, sustainable home builders, and advertise in more trendy fashion oriented magazines as well as through newspaper inserts to increase West Elms consumer base and profits. The brand’s quality and value will be emphasized through these media outlets, hoping to gain customers from current competitors of IKEA, Crate and Barrel, Target, and Pier 1 Imports.

Strengths

o Sustainable productso Good quality for the valueo Aware of what customers desire and expect

Weaknesses

o Poor brand communicationo Failure to promote products through multiple media outletso Small target market

Opportunities

o Expand target market to older consumers and include women and meno Use new media that will create brand loyalty and social understandingo Re-position brand in consumers mind, re-call

Threats

o Competitors following same sustainable effortso Mimics of good quality/low price productso Customer loyalty towards competitors brands

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Industry Analysis

West Elm is a competitor in the home furnishings market. They primarily developed their brand image through catalogs and their ecommerce site. In order to build their brand image, they looked at competitors’ weaknesses in their promotional campaign which included “disorganized and chaotic or… overly rigid and sterile” catalogs (AIGA Design Archives). West Elm tried to amend these problems in their catalogs and ecommerce sights by coming up with a new catalog format and allowing the photographer the freedom to compose the images to go with the merchandise. West elm also uses a multitude of promotional coupons and sales on their ecommerce sight to promote their products. West Elm has been featured in many different magazines, including Better Homes and Gardens, Country Living, Family Circle, Lucky, and Woman’s Day. West Elm’s promotions through magazines are great for exposure to their target market. This leads their target market to their ecommerce sight, to a West Elm brick and mortar store, or to a West Elm catalog to achieve their shopping needs. However, this does not aid West Elm in spreading awareness about their merchandise and what they stand for to people who do not necessarily read Better Homes and Gardens (West Elm). In terms of consumer demand, the home furnishing industry saw a decrease in the demand of high quality furniture, with aging Baby Boomers choosing not to spend money on expensive, high quality furniture but rather on disposable furniture, it causes the home furnishings market to diminish (Lindenwood Associates,2011). In order to stay afloat in this industry, West Elm has to maintain their low prices and market this concept in order to attract customers.

Market Analysis

West Elm’s current target market is focused on women between the ages of 20 – 30 who enjoy a contemporary style on a budget (Strasburg, J.). In West Elm’s marketing plan, they make a point of being affordable, design conscious, eco-friendly, and worldly, by taking inspiration from around the world (West Elm). They do this through their e-commerce site and other marketing mediums in order to successfully pursue their target market. West Elm is a complete lifestyle brand that targets “young design conscious consumers” that are looking for furniture at affordable prices to put in their “apartments, lofts, or homes” (All Marketing Lists).

Competitor Analysis

Home furnishing retailers are competing to provide the best quality product for maintainable low prices in a diminishing home furnishings market. Major competitors include IKEA, Crate and Barrel, Pier 1 and Target. IKEA is one of West Elm’s main competitors, due to their offering of disposable, trendy furniture at low prices. IKEA’s marketing strategy is to “offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible can afford them” (IKEA). This concept in itself provides a lot to compete with for West Elm. IKEA is also doing very well despite the economic downturn, as evident by their “recent posting [of] a 10.3% jump in its net profit” from the year 2011 (Abbas, 2012). Ikeas success is partially due to the awareness consumers have of their products and prices, something that West Elm has a problem with. Another competitor of West Elm is Crate and Barrel and its

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CB2 line. Crate and Barrel’s advertising consists mainly of simply print ads, catalogs, and sales circulars, but they are looking to expand their marketing by about 10 million a year at the beginning to start targeting younger shoppers (Mcmains, 2012). Crate and Barrel appears to be doing slightly better than West Elm due to the fact that their prices are slightly lower than West Elm, which West Elm could compete with by offering “products that still have style but can be sold at a lower cost” (123HelpMe!.com, 2012). This market is competitive due to the struggles these companies have to face concerning the economy, and the companies who can offer quality, trendy products at low prices and still stay afloat will ultimately be the most successful.

Objectives

TLC Promotions objectives for re-positioning West Elm are to let general consumers know that the company offers more than catalog sales circulations and to expand the consumer demographics from young single professional women, to sophisticated and educated professionals and families. Also through brand promotion, TLC Promotions will promote and raise West Elm’s social ideal and awareness of sustainable products. Through new media approaches the West Elm brand will be exposed to a whole new market segmentation. The goal of these promotions is to gain brand recognition and make consumers aware of the sustainable efforts and connect with a broader target market, all within a 12 months’ time period with an expected increase in annual sales by 30%.

Strategy

Market Segmentation

West Elm’s new target market will include Gen X consumers that are in their late 20’s – 40’s and focus on women and men, resulting in a much larger market segment. TLC Promotions wants to focus on a target market that includes middle-aged professionals, eco-conscious consumers and households with 2 or more people whom are more causality to purchase products from West Elm based off their lifestyles. The accessibility of this target market is the second largest demographic accounting for over 50 million in the U.S. According to a survey by Vertis, 33% of Gen Xers plan to purchase furniture and 42% plan to purchase decorative accessories within the next year (RAB.com). These consumers have witnessed many up’s and downs within the economy, but studies show that they are spending more per household and are very brand-oriented (Baca). Since the recession retailers have encountered conscious consumerism from customers and now must work harder to position their products in the consumers mind. Gen X consumers are more likely to spend discretionary income on moderate price pieces that have more quality than an inexpensive, low quality piece. Surveys show that consumers with an income of $50,000 and above are substantiality impacting the home furnishings market the most (Unity Marketing, 3) and are placing a premium on goods with qualities of timeliness, usefulness and versatility (Loechner). As you can see, Gen Xers are the ideal new target market for West Elm and will generate a large amount of revenue based off their purchasing habits.

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Positioning Strategy

The West Elm brand will differentiate from competitors by offering sustainable products that are long lasting and affordable. West Elm stands apart by “being clear about their standards and can speak about the story behind their products” (West Elm We Care). With this simple and distinctive positioning strategy, consumers will be able to identify the West Elm brand easily and over time become loyal customers. TLC Promotions plans to position the brand as good quality with moderate prices, which allows West Elm to fall right in the middle of the positioning map shown below.

Brand Communication

Through the use of new media, TLC Promotions has allowed West Elm to stand apart from its subsidiaries and be seen as a unique, quality/affordable, environmentally friendly home furnishings brand designed for women and men. West Elm’s new mission is: To enhance customers lives at home. West Elm will no longer be dependent on William Sonoma or Pottery Barn customers. The brand will incorporate great design and also be affordable while also making a positive impact on the environment (West Elm We Care). TLC Promotions plans to persuade consumers through reason-why ads and testimonial ads by partnering with HGTV to communicate social justification. The overall goal is to create a “love bond” through affective association between consumers and the West Elm brand.

Execution

TLC Promotions plans to re-position West Elm by partnering with HGTV and local sustainable home builders like Landon Homes or American Legend Homes in Texas. Print ads will be featured in magazines such as Elle Décor and Esquire. Incorporating T.V. commercials

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on HGTV and merchandising products on the show Red Hot & Green as well as in the Green Home giveaways will help bring awareness to consumers of the West Elm brand. All of these media outlets are related to the home or the target market, essentially working together as a whole. Here are some examples that TLC Promotions plan to incorporate:

Elle Décor Magazine Page

o Gen X consumers read an average of 4 magazines on a regular basis (asne.org)

o Elle Décor is a popular magazine targeted toward women in this segment

o West Elm will be featured in Elle Décor for each changing season to display new trends

and products year-round

Esquire Magazine page

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o Esquire targets men and is one of the top 10 most popular men’s magazines

o Help gain brand recognition by male consumers

o This outlet will feature blogs and eco-friendly products at least 4 times a year

Newspaper Insert

o Ability to select geographic segment

o Inexpensive advertising method

o 24% of Gen Xers read the newspaper everyday (asne.org)

o Inserts will be positioned when sales promotions are running or as percent off coupons

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Event Sponsorship with Parade of Homes

Sponsorship on HGTV

o Sponsorships are a popular means to expose a brand, even in economic downturn

o Connect a brand with emotional experiences

o This outlet will be used throughout the year, depending on what events are happening and

when the T.V. season is for a particular showo The average weekly viewing of T.V. for Gen X is 24 hours (asne.org)

Evaluation

West Elm will test their advertising effectiveness by creating advertisements that have a sense of understanding their audiences, which are their consumers, meaning who they plan to target. When we place our advertisements in such media we want to make sure when placing our

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ads in newspapers and magazines our ads incorporate validity, reliability, and trustworthiness. How we plan to carry out these key concepts is making sure West Elm’s advertising efforts keeps in mind the message they are trying to convey in validity. We will explain what makes our products relevant to what we proclaim in our ads. Basically why we think buying our eco-friendly products cannot only benefit the consumer, but help the business remain successful and keep their consumers interested in buying their products. Through reliability we will find ways to back up how effective eco-friendly products are in a household, especially when we want to also cater to households of two or more people as well. Lastly, most importantly we want to ensure our consumers understand our business concept, and make sure it makes sense to them why we stress a greener environment within a household in our household appliances and furnishings.

References

123HelpMe!.com. (2012, April 7). Retrieved from Williams Sonoma Business Case Study: http://www.123helpme.com/williams-sonoma-business-case-study-view.asp?id=168184

Abbas, A. (2012, January 26). About.com Furniture. Retrieved from What is Ikea Doing Right?: http://furniture.about.com/b/2012/01/26/what-is-ikea-doing-right.htm

AIGA Design Archives. (n.d.). Retrieved February 2, 2012, from West Elm Brand Development: http://designarchives.aiga.org/#/entries/%2Bid%3A631/_/detail/relevance/asc/0/7/631/west-elm-brand-development/1

All Marketing Lists. (n.d.). Retrieved from West Elm Marketing List: http://www.allmarketinglists.com/mailing-list/west+elm+marketing+list/136574

Baca, Suzanne. (2007). The Gen-Xer trend to spend. Retrieved from http://businessrecord.com/main.asp?Search=1&ArticleID=4546&SectionID=5&SubSectionID=12&S=1

Bernstein, F.A. Bridge Line. (2003, September 1). Mid-priced but high-profile, West Elm Furnishings come home to a DUMBO headquarters. Interior Design. Retrieved from http://www.interiordesign.net/article/481959-Bridge_line.php?intref=sr

IKEA. (n.d.). Retrieved from Student Info: http://www.ikea.com/ms/en_GB/about_ikea/press_room/student_info.html

Lindenwood Associates. (2011, March 14). Retrieved from Knock On Wood? Not Likely To Help Save The Furniture Industry From Itself:

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http://businessrecord.com/main.asp?Search=1&ArticleID=4546&SectionID=5&SubSectionID=12&S=1

http://businessrecord.com/main.asp?Search=1&ArticleID=4546&SectionID=5&SubSectionID=12&S=1


http://www.lindenwoodassociates.com/articles/crisis-management/knock-wood-save-furniture-industry/

Loechner, John. (2010). GenX and Millennials Driving Recovery. Retrieved from http://www.mediapost.com/publications/article/124696/genx-and-millennials-driving-recovery.html

Mcmains, A. (2012, March 20). Adweek. Retrieved from Crate & Barrel Review Enters Final Stage: http://www.adweek.com/news/advertising-branding/crate-barrel-review-enters-final-stage-139095

Sokol, D. (2010, July 1). The Life of the Party. David Stark expands from event design to pop-up shops, tableware, and a book. Interior Design. Retrieved from http://www.interiordesign.net/article/530358-The_Life_of_the_Party.php?intref=sr

Strasburg, J. (2004, July). Williams-Sonoma’s West Elm finds home. Retrieved from http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/07/20/BUGT97O6731.DTL

West Elm. (n.d.). Retrieved March 2, 2012, from We Care: http://www.westelm.com/about-us/environmental-commitment.html?cm_type=Inav

West Elm. (n.d.). Retrieved February 2, 2012, from In The Press: http://www.westelm.com/about-us/press.html?cm_type=lnav

West Elm. (n.d.). Retrieved from 10 Things To Know About Us: http://www.westelm.com/aboutus/?cm_type=fnav&cm_sp=GlobalLinks-_-Footer-_WhoWeAre

West Elm. We Love® Shane Powers. Retrieved February 2, 2012, from http://www.westelm.com/shop/accessories-pillows/shane-powers-decor/?cm_type=gnav

West Elm. We Love® Stephen Antonson. Retrieved February 2, 2012 from http://www.westelm.com/shop/accessories-pillows/stephen-antonson-decor/?cm_type=gnav

(2012). Generation X’ examined in major study: Media Habits, beliefs about morality, religion, work, technology revealed. Retrieved from http://asne.org/Article_View/ArticleId/1044/Generation-X-examined-in-major-study-Media-habits-beliefs-about-morality-religion-work-technology-re.aspx

(2012). Home Furnishings and Décor Market. Retrieved from http://www.unitymarketingonline.com/cms_home/uploads/home_report_webcast.pdf

(2012). RAB Instant Background Report for Generation X Market. Retrieved from http://www.rab.com/sales_meetings/GenX.pdf

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http://www.rab.com/sales_meetings/GenX.pdf

http://www.unitymarketingonline.com/cms_home/uploads/home_report_webcast.pdf

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http://asne.org/Article_View/ArticleId/1044/Generation-X-examined-in-major-study-Media-habits-beliefs-about-morality-religion-work-technology-re.aspx

http://www.westelm.com/shop/accessories-pillows/stephen-antonson-decor/?cm_type=gnav

http://www.westelm.com/aboutus/?cm_type=fnav&cm_sp=GlobalLinks-_-Footer-_WhoWeAre

http://www.westelm.com/aboutus/?cm_type=fnav&cm_sp=GlobalLinks-_-Footer-_WhoWeAre

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http://www.adweek.com/news/advertising-branding/crate-barrel-review-enters-final-stage-139095

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http://www.mediapost.com/publications/article/124696/genx-and-millennials-driving-recovery.html