Monday, November 2, 2009

Deb Could Better Use Social Media to Reach Teen Consumers


Every generation of teenagers believes it is unlike any that came before. In some respects they are right. Today’s kids never knew a world without the Internet. To them, control, alt, delete is as familiar as learning their ABC’s. Today’s teens also are part of a generation with access to more money and the free time to spend it.

The Teens Market in the U.S. Report (2009) predicts the market for products bought by and for the 25.6-million-member teen market is expected to increase from $189.7 billion in 2006 to $208.7 billion in 2011, despite an estimated 3 percent decline in the teen population (Marketing Charts, 2009). Specifically, teen girls account for a healthy portion of the billions that teenagers funnel into the economy. They also are receptive to advertising in traditional places as well as alternative media, making social media an important marketing tool for businesses serving the teen market (PRWeek, 2003).

One such company, Deb Shops, specializes in junior and plus-sized merchandise in sizes 0 to 26 for young women ages 13 to 25. The low-cost mall retailer operates more than 340 stores in 43 states as well as an online store (Debshops.com, 2009). With roots dating back to the 1930s, Philadelphia-based Deb Shops, according to its corporate Web site “is focused on providing current fashion and compelling values” and strives “to guide young women with dependable advice and empower them with current fashion and styles that fit both their figure and budget" (Debshops.com, 2009).

According to Quantcast (2009), 64 percent of Deb customers are female; 45 percent between the ages of 13 and 17; 84 percent are white; and 60 percent are from families earning between $30,000 and $100,000 a year.

In 2008, Deb Shops had no online presence (Krol, 2009). Its Web site was information-based rather than product-based. A year later, the retailer’s first foray into e-commerce is considered a success (Krol, 2009). In addition to building an e-commerce site, Deb began collecting e-mail addresses in its bricks-and-mortar point-of-sale system, and started using affiliate programs to drive site traffic, paid search and SEO, banners and targeted media, and partnerships with established brands where it makes sense Prior to the site launch, Deb Shops had a file of 60,000 names, most of which were old and dormant. Since the site launched in February, the database rocketed to more than one million opt-in names (Krol, 2009).

The retailer partnered with Seventeen magazine on its first campaign for prom, linking to the publication's Web site to jointly promote a contest. That added exposure enabled Deb Shops to build its database more quickly and drive more customers to the site. Deb also partnered with Jay McCarroll, winner of the fashion-focused reality show Project Runway to promote homecoming events.

Deb has a presence on Facebook, MySpace, LinkedIn and YouTube. But despite its extensive store network, the Facebook site, for example, only has 6,400 fans as of November 2, 2009 (Facebook.com, 2009) and the YouTube site had just 146 subscribers and 2,991 views (YouTube, 2009). Given Deb’s demographics, the online world offers many opportunities to improve its marketing efforts. In addition, since Deb customers are heavy cell phone users who text more often than they talk on the phone, the retailer could benefit for experimenting there.

Deb’s principal competitors, according to Quantcast (2009) include Charlotte Russe Holding, Inc.; Gap Inc.; Hot Topic Inc.; Limited Brands, Inc.; Target Corporation; and The Wet Seal, Inc. Looking at Facebook alone, Deb has the fewest fans of any of its competitors. Compare Deb's 6,400 fans to Target's 568,000 and The Gap's 475,000. While these two stores also attract buyers outside Deb's target audience that Deb isn't likely to reach, Deb's other competitors with similar demographics also have better numbers. For example, Hot Topic has 87,000 Facebook fans; Charlotte Russe, 57,000; Wet Seal, 28,000; and The Limited, 17,300 (Facebook.com).

All in all, social media offers businesses like Deb an opportunity to create two-way communication with customers. While Deb has recognized the benefits of social media, the company could do a better job of reaching out to customers through this valuable marketing tool. Over the next few weeks, I plan to make social media marketing suggestions that I beleive will help Deb better communicate with and attract the teen consumer.

References:
Debshops.com. Retrieved November 2, 2009.

Facebook.com. Retrieved November 2, 2009.

Knight, K., 2007, January 8). Study: Most Teen Girls Are On Social Network Sites: Teens are rushing to social networking sites. BizReport. Retrieved November 2, 2009, from
http://www.bizreport.com/2007/01/study_most_teen_girls_are_on_social_network_sites.html.

Krol, C. (2009, September 14). Deb Shops' First Foray into E-commerce Ends Up a Success. Retrieved November 2, 2009, from http://www.netplusmarketing.com/netplus-news/news-article.cfm?id=77.

Marketing Charts (2009, September 17). Millennials Highly Receptive to Permission-Based E-mail. Retrieved November 27, 2009, from http://www.marketingcharts.com/direct/millennials-highly-receptive-to-permission-based-email-10410/?utm_campaign=newsletter&utm_source=wmd&utm_medium=textlink.

PR Week (2003). MEDIA ROUNDUP: Growing Teen Sector Finding Room for More Than Fluff. Retrieved September 26, 2009, from http://www.accessmylibrary.com/coms2/summary_0286-23149680_ITM.

Quantcast (2009, October 16). Debshops.com Demographics Summary. Retrieved November 2, 2009, from http://www.quantcast.com/debshops.com/demographics#summary.

The Teens Market in the U.S. Report. Retrieved November 2, 2009 from http://www.marketingcharts.com/interactive/teen-market-to-surpass-200-billion-by-2011-despite-population-decline-817.

YouTube.com. Deb Girl Model Search. Retrieved November 2, 2009, from http://www.youtube.com/user/DebShops#p/c/2069B3E8D4BCDC67.

1 comment:

  1. Deb is a good choice, in my opinion. It'll be interesting to see what you come up with. I know that where I grew up, Deb wasn't marketed really, as compared to Wet Seal or Charlotte Russe (neither of which, to my knowledge, has plus size apparel. Surprising to me that Deb doesn't have a larger market - perhaps Torrid is to blame? Also owned by Hot Topic.). Deb kind of had a "bad" reputation for being cheap or uncool...which is probably completely unwarranted. I think a good social media campaign could really change their image and make them appeal to a wider audience.

    This is a great choice, I'm glad you picked it!

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