Integrated Marketing Campaign
EXECUTIVE SUMMARY
Within the current retail industry, Urban Outfitters is one of the best known companies today. They are known for keeping up with the current trends, and always being different. Urban Outfitters is a place for college kids to feel like they are still home, and welcomed somewhere. The IMC campaign, “Gifts even your mother-in-law would enjoy” focuses on millennials to engage them within the company as well as letting them know UO is a place to find gifts in the store for everyone. This company focuses on the connection of the products and how it makes somebody feel accomplished in doing something when shopping with UO.
OVERVIEW
In 1970 is when it all started, when the owner Richard “Dick” Hayne was in college while living with his roommate. They decided to open a retail store near the University of Pennsylvania wanting to cater to college kids for a fun as well as casual environment to find the latest trends such as clothes, accessories and even home decor. This company has kept a consistent goal of making someone feel comfortable and welcomed to their store. Urban Outfitters has become extremely successful while reaching one of the top retailers known today, all around the world. With this being known, they continue to strive in their 245 locations in 4 continents.
MARKETING AUDIENCE
Within the Generation Y, they are focusing more on relationships and being actually connected to a product for it to be sold, and Urban Outfitters is adapting to that change. Urban Outfitters is wanting to adapt more to reaching a broader scale of an audience now that millennials are getting older. This company is focusing on ages 18-45, internationally. The millennial generation is one that is focused on careers, family and leading busy lifestyles while still focusing on relationships. Because they are busy, they want shopping experiences to fit into their lives. They also want to feel comfortable, relaxed and stylish. This is where UO fits into perfectly providing the right style of clothing for this generation, and adapting to the change.
Throughout research, Urban Outfitters will focus on the current market trends throughout this audience such as various platforms from traditional, magazine covers and social media for a visual engagement. Some of the qualities this generation focuses on strong expectations and most parents are considered ‘best friends’ the campaign, “Gifts even your mother in law would enjoy” will become very well known, like the brand.
HISTORY
It all started in 1970, when Richard “Dick” Hayne was 23 years old, and his roommate, Scott Belair came up with the idea to open a retail store. Belair was in the process of taking an entrepreneurial class at the time, when they opened their first store that was called “Free People.” They opened in a small space across the street from the University of Pennsylvania. Its mission was to provide second hand clothing, furniture, home decor and jewelry for a casual fun environment for college.
Since the first store opened in West Philadelphia, Urban Outfitters continued to strive to connect with their customers on more of a personal level, by unique products as well as the store design. UO kept this consistent, and still does by preserving original features in each store they open instead of transforming into something new. In each store, they have stripped the back paint to its original first layer, and exposing the brick walls. Their approach goes beyond historical features, but as well maintaining the history in a fresh and new shopping atmosphere.
By the 1990’s, the original customer was entering a new stage of life, so they started thinking more about the approach of their target audience. Meg Hayne wanted something to indulge her creative side into, and Dick realized this wasn’t isolated. Therefore, they went on build a lifestyle brand that catered to creative, educated and affluent 30-45 year-old women. Anthropologie was born, and a refurbished automobile shop was open in Wayne, Pennsylvania. This was a discovery for the customer, offering her a shopping destination with a well-curated mix of clothing, accessories, and home décor that reflect her personal style and individual lifestyle.
In 1993, UO sold shares for 18$ a share to the public. Today the company trades on the Nasdaq under the ticketer URBN. Then in 1998, they sailed across the atlantic to open a european store in Kensington High in London. Eleven years later, Anthropologie followed, opening a store on Regent Street, (also in London) that spans 11,000 square feet across three floors. Soon after, the brand opened another location nearby.
Anthropologie released its first catalog in 1998, targeting the millennials new shopping experience. In August of that same year, Anthropologie.com was established. It wasn’t long after when Urban Outfitters and Free People opened online stores as well.
In 2002, is when they started opening more, especially in New Jersey when the first Free People store was established. This was a small boutique for a mix of natural and rugged to provide the best shopping experience for her. After 10 more years of operating out of scattered offices in Philadelphia, UO moved to the navy yard, where products can be manufactured. After this in 2011, Urban Outfitters entered the world of bridal with the launch of BHLDN, with an assortment of dresses to choose from. Since then, this brand has expanded.
INDUSTRY LEADER
Today, in the financial world of Urban Outfitters, Inc. they are the number one seller to the millennial generation, as well as the leader in retail. From the research of their revenue and profits, they have reported to increase in the 2 quarter 2018 by 13.69 % year on year. Urban Outfitters, Inc. a variety of customers, mainly as millennials, but people who enjoy casual, natural, and unique quality products.
Other than the fact of providing quality as well as competitive prices, Urban Outfitters, Inc. continues to grow as one of the most valuable retailing brands. They focus on customer service as their number one priority, and treat them as friends instead of a client. The unique approach in sales within this brand has brought them as one of the most known. Urban Outfitters has been engaging with millennials through social media, and other online platforms. Since milennials are comfortable with technology and mobile shopping, at least 80% of millennials are joined to one loyalty program. They have been increasing this by using an engaging rewards experience every purchase, or even social share, plus its free. This way customers are more engaged and feel like they are apart of this brand and what they do.
Urban Outfitters, Inc. has many competitors with this being said, but they remain to have the best statistics while remaining in the top 100 retailers. Many competitors strive to reach their goals such as Pacsun, American Eagle, Gap, and even companies like Amazon. There is a variety of products as well as customers that shop at Urban Outfitters, Inc. and that is what has made them one of the best industry leaders in retail.
CHALLENGES
In 2014, Urban Outfitters shares crashed at a high of 15% as sales plunged. According to Business Insider, there are several reasons the trendy fashion store was losing customers. The biggest reason is that the hip store simply missed the mark with some of their designs. They included clothes items that where to far fetched and unpractical that they didnt sell. The brand was also forced to pull a “depression” shirt, an “eat less” shirt, and a shirt depicting drunk jesus. This caused the brand to lose trust with the consumers.
PRESENCE
Urban Outfitters, inc. can be described as retro, counter culture, stylish, contemporary and hip. The company’s mission statement is as follows “Lifestyle merchandising is our business and our passion. The goal for our brands is to build a strong emotional bond with the customer. To do this we must build lifestyle environments that appeal emotionally, and offer fashion correct products on a timely basis. Our customers are the reason and the inspiration for everything we do.” URBN targets the 18-30 year old age market who typically reside in metropolitan areas. Since the fashion industry is constantly changing as well as technology, it is Urban Outfitter’s job to stay up to date with pop culture, trends and new ways to market their product. URBN sells vinyl records, ironic t-shirts, brands, accessories, books, shoes and much more.
Their diverse products allow them to appeal to a larger market and stray away from just being an ordinary clothing store. Urban Outfitters inc. currently has 245 locations, spreading to 4 continents. People shop at Urban Outfitters, Inc. because it is an inside look at what the youth is interested in. It is a one stop shop for new and exciting clothing that appeals to the trendy, fashionable, metropolitan kids all around the world.
TARGET MARKET
Within Urban Outfitters, Inc. they have a wide variety of shops that reach a large demographic, usually anywhere from ages 18-35. There is a lot of diversity within the company, but they also build relationships with the customers to make a lifelong connection. With this being said, Urban won’t be strictly enforced in the millennial age range, due to the variety of the store as well as the connections people make. The millennial generation are into brand names and have a more relaxed environment. They expect people to treat them special and with respect. These are some of the main aspects Urban Outfitters carries within their brand. The generation itself are very independent people who enjoy changes in the world.
Millennials are born with the sense of technology as it has been quickly developed through their lives. They are also into being transparent as part of their primary effort. The demographic is focused on mid-aged college students who care about their opinion. This generation is known for overcoming tragedies such as 9/11, and determined are to be successful. They are also known for being competitive, but collaborative.
Another trait this generation is known for is being family oriented or needing family. Family will take precedence over work. This may be because of the helicopter parenting they were given as children. Parents are generally considered “best friends” so often young adults and moms are shopping together in stores. Society has become a lot more diverse, and it is not known unless we make it known.
We selected this specific target audience based on our prior research and knowledge of this brand, since we are millennials ourselves. After more research, and knowledge about the company we found their target market, and who they direct their products at. This generation fits in very well with the idea that urban outfitters tries to reach them through a relaxed environment and relationships. Leadership, and knowledge is very important to this generation. They are extremely interested in “DIY” and brands that are responsible.
The current audience for this brand is very well known, and admired for their quality. Urban Outfitters is known for its unique and diverse look as well as feel. Like stated before, they treat customers like a friend instead of a client, therefore this brings a lot of attention to this brand, especially in this generation.
CUSTOMER PROFILE
Meet John, the perfect ideal customer for Urban Outfitters. John, who recently turned 23, just finished school at State College and he has just began his new tech job. He is born and raised in the United States, and has a close relationship with his family. He currently lives in the Silicon Valley but he works and travels all throughout the west coast. He currently lives in a studio apartment with his cat Snickers. John is up to date on current events and is currently planning a trip to Asia with his girlfriend Annie where he plans to document the journey through a travel video.
In his free time John enjoys being active, working, spending time with his family and friends, experiencing new tech, and traveling. John is currently making $65,000 a year plus he does creative briefs on the side (graphic design, web development) giving him a little extra income. John loves it in California and has begun making many new friends. Since he is meeting all these new and trendy people, John needs to stay up to date with his fashion. John does most of his shopping online and on Poshmark but recently his girlfriend drug him into Urban Outfitters and now he almost exclusively shops there. John enjoys the styles offered at Urban Outfitters including their button ups, graphic tees, and other stylish accessories.
Meet Annie, a perfect ideal customer for Urban Outfitters. Annie is a recent graduate from UCLA and works in finance. She met her boyfriend John 1 year ago after literally running into him in the supermarket. Annie has always kept up in the fashion trends since she was in middle school. She always made sure she wasnt an outfit repeater by always making sure she had lots of options and combinations. During her senior year of high school she decided she needed to start looking nicer and investing in nicer clothes. She discovered Urban Outfitters and filled her wardrobe and bedroom with Urban Outfitters items. She is constantly shopping their seasonal items for both clothes and decorations. These trends continue through college and now into her young adult life as she happily lives in San Francisco. She has decorated the house she shares with 2 roommates AND her boyfriends apartment with Urban Outfitters posters, pillows, and other knick knacks. Annie has recently taken up a vegan lifestyle but if you ask John it may not last long.
MARKETING CAMPAIGN: GOALS, OBJECTIVES & STRATEGIES
Goal: Increase holiday sales to millennials in the next year to compete with other brands target audiences and to gain loyalty to the Urban brand.
Objectives and Strategies
1. To increase sales during holiday season by 20% compared to last year’s 13%
•Sell Promote and stock items that can be used at the dinner table during holidays by families.
•Offer discounts for small and inexpensive items such as accessories and hats.
• Utilizing holidays to help increase sales and broaden the company’s target market.
-To entice millennials to shop for the holidays.
•Advertisement utilizing the holidays as the season for giving for promoting gift items.
• Create an online contest to win a coupon or shopping spree for holidays
For example: Customers must upload a picture of their Thanksgiving feast with the hashtag Urban Outfitters to be entered in the contest.
• Advertise clothing that could be worn to Thanksgiving and Christmas dinners with family and friends and to festive holiday gatherings.
• Generate more online sales by providing Thanksgiving coupons for all online orders.
• The gift of giving is receiving 50% off for a purchase in January to entice customers to continue shopping after the holidays. Following trends and letting customers experience the joy of gifts.
2. Create social media campaign dedicated to Thanksgiving and Black Friday to reach 40% more audience members through media and word of mouth.
•Promote magazines' upcoming issues on Facebook, Twitter, and Instagram.
• Only upload pictures with an Autumn color palette for Instagram. This will make the brand consistent for more viewers.
• Use Twitter for the Black Friday online contest. Goal: to get #UrbanOutfitters trending.
• Post pictures of the Thanksgiving items on Instagram to show customers how they could have fun at the dinner table.
• Give away fall and holiday clothing to social media influencers, them tag @Urban Outfitters.