Competitive Landscape - Old Navy

Part
01
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Part
01

Summer Messaging, Tech & Experiential Strategies- Target

The required information on Target have been provided on column C of the attached spreadsheet.

SUMMARY OF FINDINGS

  • Founded in 1962 in Minneapolis, Target is the "second largest general merchandise retailer in America."
  • The company’s main brand message is "Expect More. Pay Less."
  • Target has utilized messaging such as Sun's Out, Fun's Out, Sun Squad, Summer Fun, and others for this summer.
  • Target and Vineyard Vines have launched the #VineyardVinesForTarget campaign on social media to promote their limited-edition collection of 300 unique, affordable items.

Part
02
of eight
Part
02

Summer Messaging, Tech & Experiential Strategies- Kohls

As part of its summer strategy, Kohl's has recently published summer apparel videos on its YouTube channel. The entirety of the requested information about Kohl's is included in the attached spreadsheet.

findings

  • As of 2017, Kohl's had a total of 1,154 department stores.
  • The main differentiators that Kohl's emphasizes are its longstanding history, impressive product/brand selection, discounts/savings, simple shopping experience, and innovation/use of modern technology.
  • A component of Kohl's summer strategy is a featured product line called "Celebrate Summer Together."
  • Two components of Kohl's tech/experiential strategy are its tech innovation center in California and its Kohl's Innovation Center at the company's headquarters.

your research team applied the following strategY:

We found company overview information about Kohl's from its website and from a profile of the company published by Reuters. To identify the company's differentiators and standout messaging, we looked at the company's website that maps out the key focus areas for the company, as well as the company's slogans/taglines. To find information about the company's summer strategy, we reviewed multiple areas of the company's website and reviewed its social media channels. Lastly, we found information about the company's tech and experiential strategies from a press release published by the company and from a section of the company's website that details its efforts with regard to innovation and technology development. Together, this research process provided us with all the information we sought about Kohl's.
Part
03
of eight
Part
03

Summer Messaging, Tech & Experiential Strategies- Walmart

Walmart promotes themselves as having everyday low prices and being the one-stop shop for its customers. The requested competitive details for the brand are included in the attached spreadsheet.

BRAND HIGHLIGHTS

Part
04
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Part
04

Summer Messaging, Tech & Experiential Strategies- TJ Maxx

The required information on TJ Maxx have been provided on column F of the attached spreadsheet.

SUMMARY OF FINDINGS

  • TJ Maxx was founded in 1976 by Bernard Cammarata and operates over 1,000 departmental stores across the US today.
  • It differentiates itself from competitors as a department store chain that sells products at prices that are generally lower than other similar stores.
  • TJ Maxx’s TV spot called “Summer Bod” featured people in squirrel costumes and was used to promote its Sierra brand.
  • The company has recently partnered with Instagram tastemakers to launch a multi-city interactive game built around the brand's message on 'maxximizing' to demonstrate that shoppers don't need to sacrifice price or quality to find their desired items at TJ Maxx stores.

Part
05
of eight
Part
05

Summer Messaging, Tech & Experiential Strategies- American Eagle

American Eagle Outfitters, commonly known as American Eagle, is a youth-focused international specialty retailer that offers trendy clothing, personal care products, and accessories at affordable prices. It usually creates fun events for its customers during the summer. These events are aimed at promoting the brand, by encouraging customers to use its merchandise collection in expressing themselves. The company has implemented technology such as Alia’s kiosk software in order to provide a better customer experience for its shoppers. Detailed insight into American Eagle messaging and strategies have been populated in the attached spreadsheet.

OVERVIEW

  • Competitive Advantage and Messaging: American Eagle uses an optimization engine and a digital distribution network for order fulfillment. Consequently, it provides its customers with a shopping experience that is faster and more convenient compared to its competitors. Some of its major taglines are "Brighten up" and "Live your life".
  • Summer Specific Strategies: American Eagle usually creates fun events for its customers during the summer. These events are aimed at promoting the brand, by encouraging customers to use its merchandise collection in expressing themselves.
  • Tech & Experiential Strategies: This year, American Eagle has started using Alia’s kiosk software to enable shoppers to scan items using an iOS device. Among other features, this allows a shopper to quickly see alternative size options, request other styles and sizes, find product recommendations, send emails to themselves, and monitor their cart totals. All this is done without the customer having to leave the fitting room.

METHODOLOGY

The research team scored the American Eagle website, and industry reports in order to locate information on its objective and capabilities. We then scoured it's social media pages, press releases and industry reports for information on major summer, technology, and experiential strategies.
Part
06
of eight
Part
06

Summer Messaging, Tech & Experiential Strategies- H&M

H&M promotes themselves as a low price, sustainable, diverse fashion brand. The requested competitive details for the brand are included in the attached spreadsheet.

Brand Highlights

  • "Stay true, stay you" is the tagline for their recently launched Pride line.
  • One way H&M sets themselves apart from the competition is through their designer collaborations. The latest collaboration is with Giambattista Valli.
  • The brand is very active on Instagram and promotes a wide range of their products on the platform.
  • H&M offers clothing and accessories for men, women, and children.
  • Through a partnership with HoloMe, H&M is creating human holograms.
Part
07
of eight
Part
07

Summer Messaging, Tech & Experiential Strategies- Additional Competitor #1

Abercrombie & Fitch Co. is an omnichannel specialty retailer that offers a wide range of apparel, accessories, and personal care products for men, women, and children under three brands: Hollister, Abercrombie & Fitch, and Abercrombie Kids. The company commits to offer unique products of exceptional comfort and enduring quality that "allow customers around the world to express their own individuality and style." They operate 861 retail stores across North America, Europe, the Middle East, and Asia.
As requested, we entered Abercrombie & Fitch Co.'s overview, competitive advantage & messaging, specific strategies for Summer 2019, and tech & experiential strategies on their corresponding rows in the spreadsheet attached.

KEY FINDINGS

  • Abercrombie & Fitch Co. sees its product, people, and process as its three differentiating factors from its competitors.
  • The company positions itself as an iconic brand that reflects the attitude of the modern customer while staying true to the "effortless, American style."
  • A&F's omnichannel infrastructure consists of 20 websites in 11 languages and process 29 currencies.
  • The company is active across all three major social media platforms, posting once or twice a day.

YOUR TEAM APPLIED THE FOLLOWING RESEARCH STRATEGY

To look for one additional competitor to Old Navy, we looked into market reports and credible news articles about the fashion industry. Through this research strategy, we found Business Insider's article on the biggest sibling company rivalries in the clothing industry, Business of Fashion's article on America's most beloved mall brands, and CSI Market's report on the retail apparel industry. All these articles contain information on the competition between apparel brands including Old Navy. Excluding those brands that have already been added in the spreadsheet, J.Crew and Abercrombie & Fitch are mentioned in all three sources. Since we only need to select one additional competitor, we looked into their revenues. Forbes reported that in 2018, Old Navy's revenue of approximately $8 billion accounted for almost 50% of its parent company's total revenue. For the fiscal year 2018, Abercrombie & Fitch had revenue of $3.59 billion while J.Crew had about $2.48 billion. Based on this information, we selected Abercrombie & Fitch as an additional competitor to Old Navy.
Part
08
of eight
Part
08

Summer Messaging, Tech & Experiential Strategies- Additional Competitor #2

Marshalls originally opened as an Army and Navy Store in 1956. Today there are over 1400 stores in the United States alone. The off-price Marshalls stores catchphrase, “Never Boring, Always Surprising”, is the focal point on how the store sells itself to customers. They offer constantly changing brand names and designer fashions at 20% to 60% below general retailer prices. The Marshalls social media summer message to promote its stores is “SPRING into Marshalls”. Marshalls required details are in the attached spreadsheet, column J. Below, we discuss the topic in more detail.

Overview

  • Today Marshalls has over 1400 stores in the United States alone. Marshalls originally started as an Army and Navy Store in 1956 it has successfully become an off-price store for apparel and home fashions.
  • TJX Companies, Inc owns the Marshalls brand along with five other brands.
  • Marshalls ever-changing brand names and designer fashions are 20% to 60% below general retailer prices.
  • The company’s capabilities and objectives are summed up in its catchphrase “Never Boring, Always Surprising”.

Competitive Advantage and Messaging

  • The company sells brand names and designer fashions at 20% to 60% below general retailer prices.
  • Marshalls claims it is not seasonally bound like regular retailers when bringing in new stock. The company constantly offers new stock to consumers every few weeks.
  • On Marshalls “How Do We Do It” web page they claim to shop like consumers. When buying stock for the stores they are always looking for bargains and something new.
  • The company’s catchphrase or message is "Never Boring, Always Surprising".

Summer Specific Strategies

Social Media

  • Marshalls messaging and positioning for the summer on social media revolves around its use of the phrase “SPRING into Marshalls”. The phrase is its heading on all its social media sites including Facebook and Twitter.
  • On their social media sites, they have highlighted the beginning of summer with a visit from “The Voice Top 24”. The contestants did a performance at Marshalls.
  • The company also appears to have used the services of a couple of social media influencers this summer. On the official website under the menu “Get Inspired”, there is an article written by Erin Robinson. The Instagram link “#MarshallsSurprise”, displays pictures of Erin wearing various items around a summer theme.
  • A YouTube influencer, Bunny Birdy Gator, is seen walking into Marshalls and wandering around the store highlighting various products. The influencer spends a great deal of time in the family shoe section talking about the great deals to be found for summer in the store.
  • Marshalls family shoe department is one of the stores features according to the parent company TJX Companies, Inc.

Television Advertising

  • Three commercials were aired during the television series "The Goldberg’s" on different channels in April and May 2019.
  • The commercials display a distinct summer theme with the actors on the beach, in summer clothing and buying summer products.
  • The adverts all close with the phrase “Brands that wow. Prices that thrill.”

Tech and Experiential Strategies

  • In the latter part of 2019, Marshalls will release its first e-commerce site for buying its products online. The brand aims to replicate its treasure hunt experience for consumers in its stores. By replicating the blueprint already used by its sister brand T.J. Maxx, the company hopes to drive traffic to the stores via the online store.
  • Marshalls draws experiential interest in their products using its colored price stickers. Every price tag has a consistent labeling approach. White tags are normal priced products, red stickers are clearance prices and yellow stickers are final clearance products.
Sources
Sources

From Part 07
Quotes
  • "Abercrombie & Fitch Co. (“A&F”), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as the “Company” and “we”) is a global multi-brand omnichannel specialty retailer, which primarily sells its products through its wholly-owned store and direct-to-consumer channels, as well as through various third-party wholesale, franchise and licensing arrangements. "
  • "The Company offers a broad assortment of apparel, personal care products, and accessories for men, women, and children under the Hollister, Abercrombie & Fitch and Abercrombie Kids brands. The brands share a commitment to offering unique products of enduring quality and exceptional comfort that allows customers around the world to express their own individuality and style. The Company has operations in North America, Europe, Asia, and the Middle East."
From Part 08
Quotes
  • "Never Boring. Always Surprising."
Quotes
  • "Initially established as an Army & Navy store in 1956, Marshalls now has more than 1400 stores spanning 43 states, the District of Columbia and Puerto Rico. "
Quotes
  • "Be surprised with an ever-changing assortment of fashionable and brand name family apparel, home fashions, and more. Marshalls differentiates itself from T.J. Maxx with a full line of family footwear and an expanded men’s department, as well as The CUBE, a department specifically for juniors. "
Quotes
  • "Most of you know that I purged most of my clothes recently because my closet needed a revamp. Marshalls came in clutch with some fun spring/summer surprises like this trendy leather backpack and this floral dress at an awesome price! Check out my Instastories for more of the adorable things I found! "
Quotes
  • "Marshalls, owned by TJX Cos. Inc., likes being known for its “treasure hunt” experience — where shoppers rummage through a seemingly random assortment of dishware, clothes and other products for items that might not appear in any other store. Now it’s going to try to replicate this online."
Quotes
  • "Marshalls and other TJX Company stores — TJ Maxx, HomeGoods, HomeSense, and Sierra — indicate markdowns with the following price tag colors: white tags without stickers are normal prices, red stickers indicate clearance prices, and yellow stickers indicate final clearance prices (a.k.a. the best deals)."