Excerpt
Table of Contents
1.0 Project Objectives and Overall Research Approach
1.1 Company Overview
1.1.1 Steve Madden Ltd
1.1.2 Why Steve Madden
1.2 The Purpose of a Review
1.3 Research Objectives
1.4 Research Questions
1.5 Research Design
2.0 Information Gathering And Accounting / Business Techniques
2.1 Research Methodology
2.2 Methods Used to Collect Data
2.3 Sources of Information
2.4 Ethical Issues
2.5 Limitations of Information Gathering
2.6 Models of Analysis
2.6.1 Marketing Mix (4P’s)
2.6.2 Segmentation, Targeting and Positioning (STP) Model
2.6.3 The SIVA (Solutions, Information, Value, Access) System
2.7 Research Ethics
3.0 Results, Analysis, Conclusions and Recommendations
3.1 Results
3.1.1 Marketing Strategy
3.1.2 Steve Madden Ltd Marketing Strategy
3.2 Competitors Marketing Strategies
3.2.1 Nine West Marketing Strategy
3.2.2 Guess Marketing Strategy
3.2.3 Aldo’s Marketing Strategy
3.3 Analysis
3.3.1 Analysis of Steve Madden Ltd’s Marketing Strategy
3.3.2 An Effective Marketing Strategy
3.3.3. Comparing the Strategies of the companies
4.0 Conclusion
5.0 Recommendations
1.0 Project Objectives and Overall Research Approach
Competing in today’s economy and market has become complicated because of the existence of so many competitors, changing customer needs and behavior, and the evolving market on various aspects. One of the ways through which organizations can ensure they remain sustainable is through development of strategies that can give them a competitive advantage over the others. According to Lafley and Martin, (2013, p. 6), a strategy “is an integrated set of choices that uniquely positions the firm in its industry so as to create sustainable advantage and superior value relative to the competition”
Steve Madden Ltd is one of the most successful companies operating in the shoe design sector. The choice of the topic was informed by the desire to understand more about the nature of competition in the shoe design industry. It is a unique field that calls for more research to understand the reason behind the success of the company after decades of hard work. The desire to seek the result of their excellent performance is what led to narrowing to the particular topic. Marketing can be used as an important factor to attain such success. The choice of the topic was thought on that line, and this particular project is sought to test whether the hypothesis is positive or negative.
1.1 Company Overview
1.1.1 Steve Madden Ltd
Reuters, (2014) elaborates that, Steve Madden Ltd is a company that sources, designs, markets and sells a variety of footwear under its brand as well as from private labels. The company sells footwear for men, women and children, as well as fashion handbags and accessories. There are five segments other through which the company operates; Wholesale Accessories, Wholesale Footwear, First Cost, Retail and Licensing.
According to Steve Madden has captured markets in the whole of USA and Canada, as well as international markets which are; Europe, Asia, Mexico, the Middle East, South America, India, Central America, and South Africa. The company markets its products through its e-commerce websites and retail stores as well as mid-tier department stores, major department stores, luxury retailers, specialty stores, national chains, catalog retailers, value priced retailers, and mass merchants. It also has special distribution arrangements for the sale of its products in international markets.
1.1.2 Why Steve Madden
The current footwear industry is characterized by heavy competition from mature companies and an inconsistent and rapidly changing market. When this is combined with the pressure of competing with well-known and successful brand names such as Nike, Sketchers and Kenneth Cole, it becomes tough for companies in the industry to prosper. Steve Madden Ltd has however, been successful in being a profitable leader and in the branding of the Steve Madden name. In the first quarter of 2014, the company registered net sales of $304.6 million, which is a 9.2% increase compared to a $278.9 million in the first quarter of 2013. It also registered an increased net income of $23.6 million in 2014 up from $23.4 million. Jefferies, (2008) clarifies that, this is a company to watch out for whether in the stock investment or in the shoes market this forms the basis of selecting this company for a review of its marketing strategy.
1.2 The Purpose of a Review
According to IUCN, (2000) conducting a review has different purposes. In any organization, there are certain agreed set of performance levels that need to be met. A review provides information on whether these were achieved. In this case, a marketing strategy always has goals to achieve. One of the ways of determining if these goals are achieved is through a review. This research shows how Steven Madden Ltd’s marketing Strategy works to achieve its aims. A review is also a systematic way of collecting data to make judgments, draw conclusions and make strategic decisions Adele argument supports the opinion that, a review of Steve Madden Ltd’s marketing strategy could reveal important information that can inform the organization about the effectiveness of the strategy. It could reveal its weaknesses that were previously unknown and a new one or a modified one developed. It will provide information that will be used to judge and make conclusions about the role of the organization’s marketing strategy. All these provide important literature in marketing strategies and can guide organizations on how to capture and retain customers in various markets. Comparing the effectiveness with other competitors also reveals a marketing strategy as a competitive advantage.
1.3 Research Objectives
To assess how effective the Steve Madden Ltd’s Marketing Strategy is on creating more sales for the company.
To identify if there are any strengths and weaknesses and how the company has possibly worked on them to achieve competitive advantage.
1.4 Research Questions
- What is Steve Madden’s marketing strategy?
- Is there a common marketing strategy that Steve Madden uses?
- What are the strengths and weaknesses of this strategy?
- How Steve Madden Ltd is’s marketing strategy unique when compared to the competitors’?
- What is an effective marketing strategy?
- How effective is Steve Madden’s Marketing Strategy?
1.5 Research Design
This research takes the qualitative approach of understanding the marketing strategy and its effectiveness. Bhattacharyya elaborates that, a qualitative research is a method of inquiry that focuses of understanding human behavior and aspects of social life, and any governance behind such behaviors and aspects. It generates words as data for analysis. It is applied in different contexts, for example in market research, social sciences, and other academic disciplines.
Elain and Linda add that, qualitative research can take the form of an evaluation or experimentation depending on the aim. In this research, focus is on the review of a marketing strategy and its effectiveness. The approach taken therefore is that of evaluation. Experimentation is used when a researcher needs to establish something new, or to prove something.
2.0 Information Gathering And Accounting / Business Techniques
2.1 Research Methodology
In accordanec to Khan this is the most crucial part of a research because it elucidates the major process of carrying out a research in a study. Research is defined differently by different renowned authentic authors. It can be defined as a scientific process of collecting information on a particular subject to test its workability. Additionally, it can be defined as the procedure that seeks to give solutions to questions that do not have definite answers.
There are various reasons of collecting data. Elain and Linda explain that in fact there are four reasons behind the same. The first is to identify new fields that have not had the visitation of researchers. Secondly, research is done to expand knowledge. That means that the research might have been done in previous years, but, the available information is not adequate enough to help. Third reason is to undertake a thorough understanding of the way some of the products acts and reacts in a market. Finally, a study can be carried out as a response to the socio-economic and political happenings. In this particular study, the second reason is the most relevant since it is a research that is developed to check on the effectiveness of the market strategy that the company utilises. The company utilises the strategy to the products that they sale to their customers. The subtopics that follow give a clear detail of the procedures used to collect the data and how the data will be analysed to make sense.
2.2 Methods Used to Collect Data
Thomas, Nelson and Silverman explain that, data collection in qualitative research takes the form of observations, interviews, audio-visual materials, and a review of documents such as the peer papers, and journals. In this research, data collection was done using a review of documents. The aim of the research is to conduct a review on a marketing strategy, with nothing new to establish, therefore, a review of documents is an appropriate method. Additionally, existing documents provide the best source of information for an evaluation of this kind.
2.3 Sources of Information
Kothari insinuates that, data will be collected from magazines, books, memos, newspapers, websites, annual reports and other relevant documents found both online and in print form. The above sources represent both primary and secondary sources of information. The primary sources of information will validate the data availed by the secondary data. William and Barry gives additional otpions that, the primary data in this case is the information will be gotten directly from the company, it website, and reports generated from the company. There is an analysis using the 4P’s, Segmentation, Targeting and Positioning, and the SIVA models. This, in addition to a comparison of the marketing strategy with the competitors’ will find out any unique features in Steve Madden’s marketing strategy. The Models also inform the research on the effectiveness of the marketing strategy.
2.4 Ethical Issues
The project does not provide any ethical issues because it is open for scrutiny to the public. The information too, is gotten from sources that are credible. Bhattacharyya additionally explains that, the sources as elaborates in the preceding section will include peer reviewed journals, magazines, websites, and direct information from the company.
2.5 Limitations of Information Gathering
Tracy (2012) elaborates that collecting information from existing documents is advantageous because of their availability locally, their easy access and inexpensive nature. It however, has limitations which have to be noted. Existing documents may be inaccurate because some of the websites from which information is obtained may not be authentic. Not all information about a company from case study reports are true, some may depend on an author’s interpretive approach. Searching for the right information is also quite challenging. Take an example of Steve Madden Ltd’s marketing strategy. Finding a report from the company or any other article with the right information about the strategy was a problem. It is also not easy to access company reports with reliable information.
2.6 Models of Analysis
2.6.1 Marketing Mix (4P’s)
Schultz, Barnes, Schultz and Azzaro define it as the choices the managers have to make when bringing a product or service into the market. In developing a marketing strategy, one of the common frameworks used to make an informed decision is the 4P’s. This refers to the product, place, price, and promotion. Charles, Joe and Carl explain that, the 4P’s framework requires marketers to develop marketing strategies or programs based on the product features, effects of pricing, the place and promotion. It is based on the assumption that if a marketer gets the product, the price, the place and the promotion strategy right, then the organizations will obviously get customers for the product or service.
2.6.1.1 Products
When developing a marketing strategy, the marketer has to consider a variety of factors in order to develop a plan that will enable the customer understand the product, like it and buy it. Powell (2012) further clarifies that, the marketer has to consider what the company offers that can meet the needs of the customer, the features it has that will satisfy such needs, how and when the customer will use it, what the product will look like and how the customer will experience it, the size most appropriate for the customer, the color, and so many other factors. Hence, when executing a marketing strategy therefore, the marketer should be aware of what the product features, design, quality, packaging, and customer service is going to communicate and yield.
2.6.1.2 Place
The organization already has information about the share of market it is targeting. It can find out more about the places where buyers look for the product, how the buyers look for the product, for example, if they do it online or from specific stores, and how it can access the right distribution channels. Ferrell and Michael expounds that, if a company finds out that delivering a product to customers’ homes is one way of improving sales, then the right decision would be developing a strategy that incorporates such form of distribution.
2.6.1.3 Price
George further elaborates that, the price of a product influences the customer’s decision on whether to buy it or not. A marketing strategy should only be developed after a thorough research on the most acceptable price; prices that will make consumers buy the product to expected targets. A marketing strategy can include different ways of making the customer pay for the product.
2.6.1.4 Promotion
Guy defines promotion factor to be all about communicating the value and benefits of the products to the consumers. It is about persuading the consumers to be customers to the company’s products. Promotion is usually done through direct marketing, advertising, public relations, sales promotions and personal selling among so many other methods.
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