marketing plan

Footloose and Fancy �1

""""""""""Foostloose & Fancy "

Marketing Plan """"Jennifer Davis

Dr. Julia Cronin-Gilmore Bellevue University """"""""""""""""" """"""


Table of Contents "Executive Summary ………………………………………………………………………….… 3

Situation Analysis ………………………………………………………………………….……4

Internal Environment ……………………………………………………………………4

Customer Environment …………………………………………………………….……5

External Environment ………………………….………………………………………..7

SWOT Analysis …………………………………………………………………………………8

SWOT Matrix ……………………………………………………………………………8

Developing a Competitive Advantage …………..……………………………………….8

Developing a Strategic Focus ……………………………………………………………9

Marketing Goals and Objectives …………………………………………………………………9

Marketing Strategy ………………………………………………….…………………………..10

Primary Target Market ………………………….……………………………………….10

Secondary Target Market ………………………………………………………………..10

Product Strategy …………………………………………………………………………11

Pricing Strategy ………………………………………………………………………….11

Distribution or Supply Chain Strategy …………………………………………………..11

Integrated Marketing Communication Strategy …………………………………………11

Marketing Implementation ………………………………………………………………………12

Cultural and Structural Issues ……..……………………………………………………12

Tactical Marketing Activities ……………………………………………………………13

Evaluation and Control…………………………………………………………………………..13

Formal …………………………………………………………………………………..13

Informal …………………………………………………………………………………14

Marketing Audits ………………………………………………………………………..14

Refeneces ………………………………………………………………………………………..15

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Executive Summary

The goal of the marketing plan for Footloose and Fancy for the year of 2015 is to

increase the number of new customers and to increase the number of customers returning to the

store to purchase more products. By increasing new customers by 5 people each month it will

keep the business growing and also introduce to the community that the downtown location now

carries more then just shoes and accessories. Also by giving retiring customers incentives to

purchase again loyal customers will continue to purchase. To support these goals community

and group actives will be planned to introduce the new products. A customer history database

will allow returning customers to be tracked and rewarded.

New managers will have to be hired to accomplish and achieve the overall plan.

Employees will have to be committed and knowledgable about products to continue to provide

top of the line customer service that the stores are known for. Incorporating all of this will

continue to grow the business while still keeping loyal customers.

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Situation Analysis

Footloose and Fancy is a locally owned shoe store located in Lincoln Nebraska. The

store was founded in 1975 by Marla McCabe in downtown Lincoln. Since then a second

location has opened in east lincoln to try to ignite the interest of consumers who don’t want to

find parking downtown (Switzer, 1995). The downtown store has now changed focus from just

shoes to also incorporate a large amount of clothing. With doing this the stores mission

statement includes doing good and being good with focusing more on environmentally friendly

and outdoor clothing (Footloose & Fancy expanding downtown, 2012).

The Internal Environment

When the second location in east Lincoln began to profit more then the original location

downtown the current owners Matt and Jane Stricker decided to change the focus of their

original locatiokn. The marketing goals and objectives changed to accommodate the new

clothing lines brought into the store. The store gained the well known brand North Face as it

was to be a North Face concept store. With the original shoe store priding itself on the

traditional “sit and fit” concept the new clothing addition to the store must refocus the store to a

“do good, be good concept”. The objectives changed to a environmentally friendly, community

conscious organization trying to benefit the greater good. The products brought into the new

concept store other than North Face include Patagonia, Kuhl, Lole and Mountain Hardware

among many others. The idea behind these products all encompass lessening the footprint left

behind.

Footloose and Fancy has a extensive background in the shoe industry. With it being the

third Birkenstock store opened in the United States it has gained quite the following in the shoe


industry. With the new clothing side opening it needs to gain the same type of following to keep

customers. The new layout downtown makes it hard to see the shoes which people originally

came to purchase. This has been quite frustrating for many customers. It has separated the

clientele that the two stores are seeing. The emphasis of the two stores are seen drastically

different. Shoe versus clothing. The positive impact that can been seen with the clothing is that

it is drawing in new customers. The negative impact is that when customers are visiting the

downtown store for shoes they are getting frustrated with how difficult it is to shop for shoes

there.

The Customer Environment

Footloose and Fancy’s current customers consist of heavily of Birkenstock lovers. Loyal

customers that have shopped at the downtown location for over 35 years. Since then many shoe

brands have been added to attract a variety of different people. With the location being so close

to the University of Nebraska Lincoln campus the downtown store does draw in many college

students. College prep styles like Tom’s and Sperry Topsiders have been a couple of many

additions to products offered in the stores. The new addition of clothing in the downtown

location has started to attract the outdoor enthusiast with clothing for many outdoor needs

including but not limited to running, hiking and yoga.

Customers are able to purchase the products offered at Footloose and Fancy else where in

Lincoln, mainly retail based businesses. Many shoes stores in Lincoln offer Birkenstock as well

and some of the other major brands carried in the two stores. Large department stores tend to be

the biggest threat with giving customers more of a selection. Department stores have the square

footage to be able to display products so customers can see each item in a different department.


Customers have become very price sensitive in terms of purchasing the items offered in

both stores. With the prices of products being on the high end consumers have began to rely on

discounts. Footloose and Fancy has offered Groupons in the the past and have seen many issues

with this. When the Groupon is available there is a spike in purchases. After the Groupon has

ended business tends to slow down drastically. Loyal long term customers have also began to

rely on discounts with as many coupons that have been issued. Another event that influences

customer behavior is the summer sale that is held every year. This has been a long tradition

where shoes of all types are brought into the stores to put a significantly discounted price,

anywhere from 25 to 75 percent off. Many customers wait out the regular purchasing seasons to

see what can be purchased at these discounted prices.

During holiday seasons the inventory has been hard keep up with. With high demand

items being out of stock from wholesalers it puts a stress on the company with loyal customers

having to shop else to purchase gift items. Though this has been seen most places with the high

demand items.

Potential customers have began to shop else where due to the high price point of items

offered in the two stores. Betula is a brand that has been introduced into the market at a much

smaller price tag (Dougherty, 2006). The company was founded by one of the Birkenstock

brothers there for can release the product with the name Birkenstock on it. The same look can be

achieve at a lesser quality and lower price tag.

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The External Environment

As identified earlier in the paper there are many competitors that effect Footloose and

Fancy. Large department stores like Scheels and Dillard’s offer the same products. There are

also many smaller retail companies that can be accounted for as threats to the company. For

instance a small local retail store named Moose’s Tooth has been in Lincoln since 1983 offering a

variety of outdoor clothing and also shoes that both companies now carry (Moose’s Tooth Inc,

2014). Moose’s Tooth has a much longer background in supplying Lincoln with outdoor

clothing versus Footloose and Fancy (Carr, 1993).

Other shoe companies like Brown’s and Comfort Plus also offer the “sit and fit” scenario

that Footloose and Fancy used to pride their service on. With still carrying many of the same

brands these small stores give consumers another outlet for the products.

Lincoln has continually grown since 2010 with a growth rate averaging at 4 percent

( United States Census Bureau, 2104). The median income per house from 2008 to 2012 is

sitting at 49,504 dollars (My Best Segments, 2014). With this being said the high price point of

products at Footloose and Fancy would tend to be out of reach to a good portion of the

population. This is creating the price sensitivity and consumers seeking out discounts for the

products. About half of the population is female which is in favor for the locally owned store

due to over half of their inventory being women's shoes and clothing.

Technological advances have affected the company with consumers being able to seek

out discounted prices else where. The demographics affect the most from this are the age range

of 21 to 34 year olds. These demographic equal a large portion of the population of Lincoln due


to the University of Nebraska, Lincoln campus. These consumers are able to use the internet to

find the best price.

SWOT Analysis

Developing Competitive Advantages " Footloose and Fancy has an advantage when it comes to introducing its products to new

consumers every year. The student population of the University of Nebraska brings in new

consumers every year. This is also a perfect place to find employees who will help develop the

network on campus. The store could use college prep to its advantage and introduce some of the

product on campus to gain a following of customers.

With the store downtown being new to the clothing industry if the store and employees

could figure out how to incorporate the “sit and fit” customer service they are know for into the

Strengths:"1. Well known for long time Birkenstock sales"2. Customer focused service to ensure proper fitting shoes"3. Two locations in Lincoln, one close to UNL campus and the 2nd location offerers easier parking

Opportunities:"1. Internet shopping becoming increasingly more popular, development of a website would benefit the company"2. UNL college campus brings in new students every year which means new consumers "3. Customer market larger with the addition of clothing "

Weaknesses:"1. Shoes poorly displayed at downtown location"2. New to the Clothing industry"3. Inventory during coupons and sales not stocked deep enough"

Threats:"1. Large corporations have a wider selection of products"2. Economic income not rising with the cost of products making consumers more price sensitive "3. More places carrying the same products offered to consumers giving them multiple outlets to purchase"


clothing side customer satisfaction would start to rise. The downtown store needs to figure out a

way to incorporate the shoes so they are visible to satisfy consumers going downtown to look at

shoes. If the store can figure out how to improve customer satisfaction at the downtown location

the threat of large corporations would become less of a problem.

Developing a Strategic Focus

The strategic focus of Footloose and Fancy after changing the downtown location to

include clothing is introducing the new products to consumers while ensuring loyal customers

they can still receive good customer service and products that they have received in the past.

"Marketing Goals and Objectives

Footloose and Fancy has two goals to focus on for 2015: Increase the number of new

customers and increase the number of returning customers.

"Marketing Goal A - Increase the number of new customers

Objective A1: Increase the number of new customers by 5 people per month. Current

employees can refer friends, family and acquaintances. Customers can participate in referring

and receive a 10 percent discount for each referral. Customers can be tracked by last name in a

customer history database.

Objective A2: Post all new product pictures and information on social media networks.

Hire a part time social media manager to continually mane the social media accounts.

"


Marketing Goal B - Increase the percentage of customers who are returning to purchase at the

stores.

Objective B1: Increase loyal customer shops by 10 percent each quarter. Customer

service and using incentives for loyal customers should increase the volume of shops. For each

return visit that results in a purchase goes towards earning a 25 percent discount.

Marketing Strategy

Primary target market

The primary target that Footloose and Fancy should focus on is young to middle age

active adults. With the downtown location adding clothing into the products offered the target

market should reflect these products. As customers seek the active clothing the shoe products can

be tied in, many of the shoes offered also reflect this active lifestyle. When consumers come in

for either clothing or shoes, add on sales can begin to occur. When customers make these add on

purchases they will begin to recognize the store for the wide variety of products offered.

Secondary target market

The secondary target market for the stores should focus on returning customers. The

stores have had loyal customers shopping with them since the downtown store has opened in the

70’s. With changing the store the consumers need to be reassured that their original needs will

still be met. With this the employees should still focus on their “sit and fit” customer service and

while helping the consumers they can talk about add sales. The customer knowing that the

products and services they used to receive from the stores is still available to them will keep

them coming back.


Product Strategy

The major focus for product strategy should remain on customer service and selling the

benefits and features offered. Since the products are anywhere from mid to high end showing the

value of the product will be key. Getting representatives from product companies could be a

benefit in educating the customers or even the employees about the benefits of each product.

Pricing Strategy

The overall prices for the products are usually set by each individual company. Therefor

the prices in comparison to the competition are very similar. In order to compete with the

competition due to these prices being pre-set it is necessary to come up with a strategy that

discounts the products to keep a competitive edge and keep customers coming back.

Distribution or Supply Chain Strategy

The overall distribution plan is focusing on the two stores and online sales. Currently

most sales are done via the stores. Developing a website that will show all products offered and

sizes available will create a new distribution channel that will benefit by reaching a great area of

distribution.

Integrated Marketing Communication (Promotion) Strategy:

One marketing communication strategy that will promote the goal of gaining more new

customers every month is holding a event for the public to attend to promote the products that


are sold at the stores. Pushing these events will help introduce the products to a greater amount

of people. With the stores primary target market being aimed towards outdoor and active people

events like group runs and yoga classes will help advertise the products Footloose and Fancy has

to offer for this market. Coming up with an event every month will reach out to the community

and get consumer actively thinking about the stores. To reach the secondary market of returning

customers holding a promotional event for each quarter for the loyal shoppers will keep them

coming back. A promotion where the second purchase made every quarter the customer will

receive 25 percent off the second purchase. This will help increase sales and give the customer a

reason to return.

Marketing Implementation

Structural Issues

A few positions will need to be added to the company to implement the new marketing

strategy. A position for someone to manage social media will need to be added. This position

will be in charge advertising the events that will be taking place by each week updating the sites

with information of when and where these events will take place. It will also daily allow product

information to be posted daily with information on new products or even just knowledge about

different products sold in the stores. The second position that will need to be added is a training

manager. To keep the “Sit and Fit” standard of customer service scheduled visits from

representatives from each brand sold in the stores will keep employees informed about products.

Lastly the company will have to hire a new website manager. This employee will be responsible

for keeping the website up to date with the new product and sizes available.


Tactical Marketing Activities

Evaluation and Control

Formal Controls

Additions in human resources will need to be hired before this plan can be implemented.

For instance there is no social media or training manager on staff currently. I would suggest that

both of those be hired and trained before proceeding with the plan, hiring from within or

promoting an employee with knowledge of the products would speed up the process. Additional

research and development of a database system would be beneficial in tracking events. Sign in

sheets for each event will be necessary to track new and returning customers. The management

that is hired mud be committed to the plan. A set schedule of events should be put into place, for

instance when group runs will be scheduled and yoga classes. Also a set schedule of when new

Specific Tactical Activites

Person/Department Responsible

Required Budget Completion Date

Product Activities:"Establish a monthly training program for Employees

Training Manager N/A Ongoing

Pricing Activities:"Loyal customer program to give discounts per quarter for second purchases

General Manager and Staff

N/A Quarterly/Ongoing

Distribution/Supply Chain Activities:"Start a website that sells products actively sold in the stores

Website Manager Annual salary of $45,000

Ongoing

IMC (Promotion) Activities:"Monthly public event"

Part time Social Media Manager & Full time Training Manager

Annual salary for Social media manager of $15,000 and Training manager of $30,000

Monthly


product is released will be beneficial. This way there is plenty of time to schedule employees

needed for events and also to schedule representative forms brands to attend. In depth customer

history should be kept to tracked at each event as well as how many customers received

discounts for being returning customers. The overall performance of discounts and events

should be closely tracked in the customer history. This way it can be tracked if the plan is

successful.

Informal Controls

Having a training manager will allow the employees to gain the knowledge needed to feel

confident in their skills and knowledge about the products offered. Being knowledgable will

help with the overall satisfaction. Also gathering a product information guide can be helpful to

employees where they can go to find information about products when customers have questions.

All employees will have to be committed to the plan as well. Having a sign up sheet where each

employee can sign up to attend and help with events can help plan ahead. At least 2 employees

should help at every event along with the manager, if need be more employees can be scheduled

if events become to large.

Marketing Audits

All activities will be monitored through the customer history database allowing the

company to see which activities are working and which ones aren’t. This way discounts,

scheduling and activities can be modified accordingly. Audits should be done quarterly to assess

the progress being made. If the plan doesn’t meet the goals then the objectives can be altered.


References:

Switzer, G. (1995, Mar 14). Owners, customers find birks a good fit. Lincoln Star Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/407084598?accountid=28125

Footloose & fancy expanding downtown. (2012, May 08). Lincoln Journal Star Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1011446965?accountid=28125

Carr, M. (1993, Aug 03). Moose's tooth keeps climbing. Lincoln Evening Journal Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/407410621?accountid=28125

THE MOOSE'S TOOTH, INC. (2014). (). Costa Mesa: Experian Information Solutions, Inc. Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1571873502?accountid=28125

Piersol, D. (2006, Mar 19). Shoe store owners are step ahead of the rest. Lincoln Journal Star Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/248152934?accountid=28125

Wallace, D. (2012). How small business can benefit from social Media/Networking sites. Agency Sales, 42(8), 16-20. Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1151389378?accountid=28125

Dougherty, C. (2006, Jan 21). What's in a name? A tale of family infighting and a test of wills SPOTLIGHT. International Herald Tribune Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/318715533?accountid=28125

United States Census Bureau. (2014). State & County Quick Facts[Data File]. Retrieved from http://quickfacts.census.gov/qfd/states/31/3128000.html

My Best Segments. (2014). Zip Code Look-up [Data File]. Retrieved from http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&menuOption=ziplookup&pageName=ZIP%2BCode%2BLookup#

Footloose & Fancy. (2014). About. Retrieved from http://www.footlooseandfancy.com/about.html

Scheels. (2014). Brands. Retrieved from http://www.scheels.com/shop/en/scheels-catalog/brands

Dillards The Style of Your Life. (2014). Shoes. Retrieved from http://www.dillards.com/shop/Shoes-Women/_/N-lgakZ1jl?cm_sp=shoes-_-ddtc-_-women+shop+all+012214

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http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/407084598?accountid=28125





http://quickfacts.census.gov/qfd/states/31/3128000.html

http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&menuOption=ziplookup&pageName=ZIP%2BCode%2BLookup#

http://www.footlooseandfancy.com/about.html

http://www.scheels.com/shop/en/scheels-catalog/brands

http://www.dillards.com/shop/Shoes-Women/_/N-lgakZ1jl?cm_sp=shoes-_-ddtc-_-women+shop+all+012214

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