Deb Shops, a low-cost mall retailer that specializes in junior and plus-sized merchandise in sizes 0 to 26 for young women ages 13 to 25, 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 “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).
The Situation
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.
The campaign was a success. In the first four weeks of the campaign, www.debmodelsearch.com saw more than 25,000 registrations and more than 5,000 model entries, a growth of approximately 1,000 percent over the first week. Yet Deb has not continued the momentum the campaign created.
Deb has a presence on Facebook, MySpace, LinkedIn and YouTube. Yet Deb, as of December 28, 2009, had no links to any of the social media sites on its main Web site. And despite an extensive store network, Deb’s Facebook site, for example, only had 6,844 fans as of December 27, 2009, an increase of nearly 450 fans since November 2, 2009 (Facebook.com, 2009). Deb’s YouTube site had only 147 subscribers on December 27, up just one subscriber from November 2. Channel views totaled 3,120 on December 27, 2009, up from 2,991 views on November 2 (YouTube, 2009). In addition, Deb’s MySpace blog, a good use of social media to build a brand, has not been updated since July 24, 2009 (MySpace.com, 2009). The other postings made in 2009 were on April 9; February 2, 18 and 21; January 4, 23, 29 and 30. Such neglect of a social media renders the tool virtually ineffective.
Marketing Objective
In a 10-K SEC filing filed by Deb Shops on April 13, 2007, the company said, “We believe that many of the malls in which we operate our stores are destination locations for our customers. We also believe that our target customer visits the malls in which we operate on a regular basis and that in addition to shopping in our stores they also visit other teen apparel retailers.
“As a result, we believe the most effective form of marketing is through visual merchandising within our stores. Our visual merchandising is designed to create an image of depth, with product offerings using coordinated and accessorized fashion displays. Our displays also present layered items to encourage multiple unit sales. In connection with the opening of a new or newly remodeled store, we frequently use radio advertisements to develop customer awareness of the new or remodeled location.
“Our Web site, www.debshops.com, is designed to drive additional store traffic, showing up-to-date seasonal fashions for our junior and plus-sized customer, some of which can be purchased online. It also serves as a marketing channel that helps to build brand awareness and contains a store locator. Our gift cards can also be purchased on our Web site.” In addition, Deb Shops said its goal is to increase “sales, profitability and cash flow.” In 2007, the company reported revenue of $324.7 million, with a profit of $21.4 million (10-K SEC filing, 2007).
Deb no longer relies solely on store displays and radio advertisements to accomplish its goal of increased sales, profitability and cash flow, having added social media into its marketing mix. However, Deb can benefit from setting a specific marketing objective. Such an objective should be specific, measurable, achievable yet challenging and build upon its goal.
With that goal in mind, an effective marketing objective for Deb would be “to persuade 25 percent of the target audience through a year-long social media campaign that Deb Shops offers them the most value for their money.”
Target Market
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).
In addition, USA Today’s Jayne O’Donnell reported on December 28 that discounters, price-conscious teen stores (like Deb) and social-media-savvy retailers are best-positioned to thrive in the 2010. While teen stores have tended to do better than others during the recession, those with the best prices have soared, putting Deb in a good position to affect its bottom line.
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. 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.; Target Corporation; and The Wet Seal, Inc. Looking at Facebook alone, Deb has the fewest fans of any of its competitors. Compare Deb's 6,844 fans to Target's 683,771 and The Gap's 499,826. 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 130,397 Facebook fans; Charlotte Russe, 62,791; and Wet Seal, 42,394 (Facebook.com). In addition, Charlotte Russe, which also has a big presence on Twitter, has been called a "social-media supernova" and is currently the fastest-growing online retailer in 2009 (O’Donnell, J., 2009).
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 its target market through this valuable marketing tool.
Strategy
Twitter, Facebook, YouTube, MySpace, blogs. These are the tools of today’s marketing and public relations practitioner. Yet posting occasionally on your Twitter account or writing blogs or maintaining a Facebook pages just for the sake doing so doesn’t constitute a social media marketing strategy. Blindly jumping into social media is a terrible mistake that can create major setbacks. The value of Facebook is that it allows users to communicate with friends, family and long-lost classmates as well as businesses and nonprofit causes they support. The reality of many people in the 21st century is that their lives do not allow them to be as involved in their community as they would like to be. Facebook offers an easy way to keep in touch and connected to those they care about. But it also offers users an opportunity to seek out special offerings.
Deb Shops Facebook Fan Amanda Wilson proclaimed in a posting, “Debs should post coupons to use in the stores on the Facebook page!” She’s not alone in what she says she wants. A study released from Razorfish on consumer behavior, suggests all consumers really want from their favorite brands on social media is a good deal. FEED: The 2009 Razorfish Digital Brand Experience Report, posted November 8 on Media Post News (Walsh, 2009), surveyed 1,000 connected consumers about their attitudes toward social media marketing and how digital is changing the way they interact with brands.
The survey found that promotions and discounts were primary drivers of friending a brand for 37 percent of Facebook and MySpace users and 44 percent of Twitter users. The report points to companies such as Starbucks, which has amassed nearly 5.3 million fans and soared to the top of Facebook brand pages by offering coupons for free pastries and ice cream, and Dell, which has earned kudos for generating more than $7 million in sales from its Dell Outlet through Twitter.
The findings suggest social media marketing isn't so much about boosting brand awareness as enticing users with concrete offers. Garrick Schmitt, Razorfish group vice president of experience planning and editor of the study, said "That to me is a big 'Aha! What we're finding is that with Facebook and Twitter, marketers are assuming some deeper dialogue, but what's really going on is – people want deals" (Walsh, 2009).
Social Media Plan
Social media is different from traditional mass media in that it allows for the quick dissemination of information to an engaged and targeted audience. It also provides those who want to know more about a company the opportunity to seek out information in a different manner. While consumers still value open and honest conversations, they also want something for their time in the form of a discount. The Razorfish survey is important to retailers like Deb because companies that use social media effectively are creating loyal customers. Razorfish found that the overwhelming majority of consumers who actively engage with a brand, by following them on Twitter or entering a contest such as Deb Shops Ultimate Prom Makeover Sweepstakes for example, can evolve from passive reactors to advocates almost instantaneously (Walsh, 2009). Such contests not only attract consumers but can be used to build databases by asking for op-in data, including e-mail addresses, Facebook fan status and cell phone information that can be used in other marketing approaches.
On average, 97 percent report increased brand awareness; 98 percent show increased consideration; 97 percent will likely purchase a product from the brand; and 96 percent may recommend the brand to their friends. Perhaps more importantly, 64 percent of consumers report making a first purchase from a brand because of a digital experience (Walsh, 2009).
To retain and add customers, Deb needs to shift focus from brand awareness and impressions to create campaigns that drive people to make purchases and spread the word to friends about products they buy. Deb is taking steps in this direction. For example, the same day that Wilson suggested a coupon, Deb announced its first Happy Hour special. Shoppers who bought a sweater between 7 p.m. and 11 p.m. got free leggings (Facebook.com, 2009). This is an interesting approach but it is limited to a specific item. A coupon, on the other hand, could have more wide-spread appeal because the decision about what to buy is in the consumers’ hands.
Deb has a great gallery tab on its Facebook page that allows visitors to try on sample prom dress and accessories. This should be expanded to include more styles. In addition, a similar tab could be created for back-to-school fashions, another busy time of the year for Deb.
In addition, Deb could benefit from an increased presence on Twitter. To date, Deb is only mentioned on other sites, such as coupon sites. A study released by Performics, the marketing arm of Publicis Groupe's VivaKi Nerve Center, and ROI Research, an analytics and technology firm suggest such inactivity is a poor marketing move (Sullivan, 2009). The study found that nearly 50 percent of people who saw a brand's name on Twitter went to a search engine to look for the product (Sullivan, 2009). The findings, presented at Ad:Tech, noted that about 44 percent of Twitter users have recommended a product on Twitter and 39 percent have discussed a product on Twitter (Sullivan, 2009). Twitter has evolved into one of the hottest social media platforms available and should part of Deb’s marketing arsenal.
Twitter, a microblogging site, continues to grow in popularity and importance in both the consumer and corporate worlds. No longer just a platform for friends to stay connected, it has evolved into an important component of brand marketing. From May 2008 to May 2009, Twitter was the fastest growing Web brand, increasing 1,448 percent from 1.2 million visitors in to 18.2 million (Nielsen Wire, 2009). Twitter, where ordinary people and business can make tweets of 140 words or less that can be updated at any time, even from a mobile device, offers companies a new tool to promote deals and interact directly with their customers.
As people spend more time on social networks, forward-thinking retailers are following their lead. Savvy businesses on Twitter know that effective communications isn't about just pushing content to readers; they also converse with others and respond to their concerns. Such retailers are rewarded with customer loyalty and increased sales. Dell, for example, reported in June (2009) that it had sold more than $3 million in PCs and accessories via Twitter promotions since it began experimenting with the social media tool in 2007 (Tode, 2009).
An Abrams Research survey (2009) of more than 200 social media leaders found that Twitter was the social media they would recommend businesses pay for if it were not free. In fact, survey responders recommended Twitter over Facebook by more than two to one, 39.6 percent to 15.3 percent, saying “It’s the quickest way I’ve seen to spread information virally to a wide scope of people attached in a lot of random ways” (Schonfeld, 2009).
The increasing use of Twitter coincides with a recent report from Interpret, which shows that Twitter users are twice as likely to review or rate products online than members of other social networking Web sites by a ratio of 24 percent to 12 percent. Twitters users also are more likely to visit company profiles than Facebook users and click on advertisements or sponsorships (Tode, 2009). According to State of the Twittersphere (2009), about 10,000 people create profiles on Twitter every day. This is good news for retailers. Yet Deb Shops has yet to make its presence known on Twitter, unlike several of its competitors.
At least three of Deb’s competitors realize the potential Twitter offers them to disseminate relevant and timely information to a captive audience. The Gap, Charlotte Russe and Target all have a presence on Twitter. The Gap has 17,514 followers, Charlotte Russe with 6,800 followers and Target with 4,107 followers (Twitter.com, 2009). These retailers know that Twitter can help them create awareness for their brand, promote a product or educate consumers. Twitter also can be used to promote tie-ins with a business’ Web site and retail locations. On Black Friday, The Gap used Twitter to inform New York City residents and visitors where its “Gap Cheer” bus (filled with dancers and drummers) would be parked to give away sweaters and jeans (Rosenbloom and Cullotta, 2009).
Twitter remains a great medium with a huge, untapped potential that smart retailers include as a practical and strategic part of their marketing communications plan. Deb would be wise to follow in the footsteps of competitors like The Gap, which embrace Twitter and all it has to offer.
Social media is so important in today’s business climate because it allows people to connect in the online world to form intimate relationships. In a very basic sense, social media adds a personal connection to content, whether it’s the written word, audio or video. Blogs, for example, in many ways are just electronic newspaper columns, the written word in a new, user-friendly, online format. Similarly, many videos posted on You Tube could just as easily been traditional TV commercials.
Chance Parker of JD Power (2009) has touted the benefits of social media, saying, “Social media can do great things, but focusing on measuring and metrics can be a trap. You can miss some really valuable insights. Don't stop there. You've got to not only listen, but hear what people are saying" (Cherecwich, 2009).
Using Twitter, Facebook and MySpace takes the written word, combines it with photos, and presents it in a more interactive, personal way that resonates with young and old fans alike. Social media is no longer an experiment. The way social media has exploded represents a culture shift in how we interact with each other and with businesses. Savvy businesses recognize this and have incorporated social media into their marketing plans. Those who fail to recognize this cultural shift will in all likelihood fail to thrive.
Sample Executions
Building on Deb’s sample prom dress gallery, Deb can make its messages stand out in increasingly cluttered online mailboxes by using digital greeting cards to entice customers into their stores. For the fourth year in a row, OfficeMax has teamed up with JibJab with the “Elf Yourself” (http://www.elfyourself.com/) holiday card promotion. About 35 million “Elf Yourself” cards were sent in 2008, according to OfficeMax (2009). Since 2006, the seasonal site has attracted 284 million visits in what some consider the most successful social-media marketing campaign that the Web has seen so far (McCarthy, 2009).
“ElfYourself” allows visitors to the Web site to affix their head, their family members' or even their boss’s to a dancing elf body put to music, ranging from hip and hop and disco to country and holiday classics. This year, Facebook and Twitter have joined in, allowing fans to tweet a link to their video creations or share them on their Facebook profile, or e-mail or embed the videos on their own Web sites. In addition, the site allows users to sign-in with Facebook Connect to find headshots from their own photo albums or their friends' (McCarthy, 2009). Those happy with their creations, can order merchandise featuring the elfin video for $4.99 to play back after the holidays or transfer it to an iPhone. Otherwise, the video expires once the holiday season has ended. Such changes promise to attract even more visits this year (Warren, 2009).
But instead of elves dancing around in traditional red and green regalia, site visitors could create videos with characters wearing Deb formal wear, seasonal favorites or other select fashions. Such a site would particularly appeal to Deb’s target audience, young women ages 13 to 25. The video would allow want-to-be models to try out the runway in a non-threatening, fun way. Such a site differs from the gallery already on Facebook in that it allows consumers to upload their own faces on the models.
Animation adds a sense of whimsy to shopping that will attract young and older buyers alike. It adds movement to an otherwise static object. While Deb’s target audience is the 13- to 25-year-old, many shoppers include older customers shopping for young friends and relatives. Animation is one way to garner attention and help Deb stand out among the clutter.
At a time when budgets are especially tight, animated e-cards and videos like "Elf Yourself" are proving more popular than ever. ComScore data recently reported that the category received a seasonal boost in traffic in October, thanks to Halloween, Boss's Day and Sweetest Day. The sector attracted 21.9 million Americans, a 15 percent increase from September, making e-cards the top-gaining category for the month (MarketingVox, 2009).
Deb could benefit from such a popular social media tool as "Elf Yourself," which has proven it can attract millions of visitors, many of whom also become customers.
Deb Shops is planning to team up with Seventeen magazine again. This time, the two businesses will be promoting the Ultimate Prom Makeover Sweepstakes. The contest runs from January 23, 2010 to February 22, 2010. This event offers Deb a great opportunity to delve into the Twitter world. In addition, Deb could seek to team up with Men’s Warehouse, which created a virtual prom to appeal to teen boys (http://www.virtualprom.com/shareprom.php?id=407). The site proved very popular.
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