Stuart Weitzman Media Spend
No official data was found on the media marketing spending amount of Stuart Weitzman for 2018. Tapestry, the brand's parent company, spent $228.4 million for the whole company's marketing activities in 2018. Based on the given percentage of 4% of the total revenue for the whole company, the total marketing spending amount for the Stuart brand was extrapolated to be $14.95 million.
We started our research by looking for directly available data on the media spending of the Stuart Weitzman brand and any available breakdown. We looked for this information on its official website, on its parent company's website, on financial publications sites like the Financial Brand, American Banker, Wall Street Journal, NASDAQ, and other related sites; business sites such as Forbes, Biz Journal, Business Insider, and others; marketing sites such as Digital Agency Network, Strategy Online, Ad Weekly, Adage, and others; market research sites such as Statista, IBIS World, Mordor Research, and related sources; press release sources such as Cision, Globe News Wire, and others; consulting sites such Harland Clarke, McKinsey, PWC, Deloitte, and other relevant sources. Based on this search approach, we were not able to find the actual media spending and the corresponding spending breakdown of the Stuart Weitzman brand. What we found from Tapestry, its parent company's annual report is the marketing spending of the entire Tapestry commanpany.
We then looked at the sites of advertising agencies such as Blue Fountain, R/GA, Big Spaceship and others to determine if they have indicated any marketing campaign statistics that might help in deriving the actual media spending of Stuart. However, Stuart's marketing spending amount and breakdown are not found on these sites. What we found are the general campaign strategies that the agencies are deploying for their clients.
We also expanded our search to look for slightly outdated information. We hoped to use any historical data to extrapolate the current media spending data. However, what we found are some outdated data on how much Stuart has allotted to market one shoe. We also found a percentage of increase of the brands' marketing budget for the year 2015. However, we were not able to find further information that can help us triangulate the current media spending data.
We then checked if there are industry averages on the percentage of revenue or marketing budget that are typically allotted for media spending. We then found a report that provides some details on typical percentage allotment of marketing budgets. Based on the percentage found, we were able to do a rough calculation of the media spending breakdown of typical companies. We then calculated the breakdown of media marketing expenses based on the standard percentages.
Given the limited information on the marketing budget, we have presented our calculations below on how we derived some helpful figures on Stuart's media spending and partial breakdown. We also provided some relevant marketing spending data for the entire Tapestry company.
Stuart Weitzman Media Spend
In 2018, the Tapestry company spent a total of $228.4 million in various media marketing campaigns as directly stated in its annual 10K report. The report stated that this amount is around 4% of its net revenue of $5.88 billion. These numbers for Tapestry above are not calculated and are shown as-is or explicitly in the annual 10K report so no calculations are performed.
Applying the same percentage to Stuart's own revenue, the estimated marketing spending of the brand is calculated as follows: 4% X $373.8 million = $14.95 million.
This is also roughly consistent with the suggested marketing percentage of 4.4% of the total revenue for the retail industry in general. In terms of the brand's actual selling, general, and administrative expenses (SG&A), the total amount is $213.90 million.
CALCULATIONS OF STUART WEITZMAN'S MEDIA SPENDING BREAKDOWN
Based on the available average industry data, the following are the average percentage of marketing budgets that are typically allotted for each marketing media channels:
Online channels: 42% X $14.95 million = $6.28 million
Offline channels: (100% - 42%) X $14.95 million = $8.67 million
Social media marketing: 25% of total online spending
= 25% X $6.28 million = $1.57 million
OTHER HELPFUL INFORMATION
Tapestry's marketing strategy for each of its owned brands involves a 360-degree method. The company ensures that its marketing campaigns are consistent in all the available channels. Its campaigns aim to produce pertinent and rich marketing messaging in all the channels that the company uses to reach its customers. The marketing channels that the company employs for each brand include direct mail, online, print, out-of-home, and social media marketing. The Stuart brand also has an e-commerce site where its products are showcased.
The Stuart Weitzman brand is engaged in the production of women's shoes that are known to be well-designed and functional. The brand is also broadening its portfolio through its handbags and jewelry line. It was acquired by Tapestry, a high-end lifestyle company in 2015.
When Stuart Weitzman was first established, the brand spent around $8,000 in marketing campaigns to convince one customer to purchase one shoe pair. The brand also heavily marketed its brand in social media platforms. This paved the way for a solid return on social media spending in terms of new customers onboarded and sales increases. In 2015, Stuart Weitzman planned to invest a significant increase in its Facebook marketing, spending by over 300%.