Sports Management Market Analysis BY trent2691 1. Situation Analysis First one must analyze the capabilities of the firm and its ability to develop and implement a successful promotional program. The successes and failures of past programs must be analyzed as well. Pier 1 Imports kept its focus throughout the years. Pier 1 opened its first store in 1962 in San Mateo, California. Its objective has been to offer the consumer distinctive items. The company has been successful with that marketing plan.
The company started in 1962 with one location, and today Pier 1 has more than 1,200 locations. Since the company has been around for 51 years, and as established the strong socially responsible image they do not have to focus on their company image as much as an upcoming company. The company has seen twelve straight quarters of sales and growth profit with Alex Smith as the CEO since 2007 (Dishman). The most recent advertising slogan that Pier 1 has implemented is “Find What Speaks to You” (Pier 1). The purpose of a situational analysis is to understand the marketing problem.
An analysis is made of a company and its competitors on the basis of: 1 . Size and the share of the total market: a. Pier 1 is in competition with Bed Bath & Beyond Inc. hich occupies 34. 3% of the market, and Williams-Sonoma Inc. which occupies 7. 5% of the market, while Pier 1 controls approximately 4. 3% of the market. 2. Sales history, costs, and profits: a. “In April 2007, Pier 1 Imports implemented a turnaround strategy that involved improving merchandise assortment and margins, while reducing inventory and associated operational costs.
However, such an attempt has not been fruitful, with reduced consumer spending since the recession significantly hurting the company’s overall sales. To this point, revenue is expected to fall at an annualized rate of 0. 5% ver the five years to 2013 due to declining same-store transactions and closures of underperforming locations. As economic conditions continue to improve, however, IBISWorld projects that the company’s consolidated revenue will experience strong growth. From 2012 to 2013, industry-specific revenue is expected to increase by 3. % to total $1. 3 billion. oose)” 3. Distribution Practices a. Pier 1 uses and indirect channel of distribution. This company imports a selection of unique products from India, Vietnam, and 58% of its merchandise is distributed from China. This leaves the company vulnerable to variations in the value of the ollar and other trade disruptions. The large amount of merchandise received from China can also affect Pier 1 in the future as the Chinese labor wages are likely to increase, which can also cause the sourcing costs for increase for Pier 1 . 4.
Methods of Selling a. Pier 1 sells online as well as in store. The recently new CEO Alex Smith has chosen to put forth more money into making the store environment and the service offered more pristine. Although he knows that e-commerce is the cutting edge of how many consumers shop today. He still believes that seeing the products that Pier 1 offers on small cell phone screen does not do the company and its products Justice and opening new ones in the heavily populated areas. 2. Campaign Analysis Pier I’s current slogan is “Find What Speaks to You”.
Pier 1 Commericals with ‘Find What Speaks to You’ Slogan That slogan is on the advertisement that was broadcasted on many different television networks. Those few lines are what many consumers think when shopping for home d?©cor for their own homes. Most shoppers choose pieces and items that reflect their own personalities, or things that reach out to them. The ad is effective because of that. Each home is decorated uniquely and Pier 1 advertises for that unique touch that each consumer strives to ad to their home d?©cor.
Additionally, the ad declares to “Find What Speaks to You” this also suggests that it is that simple to be able to acquire these items in your home. In other words, the ad indirectly says that anyone can afford these products, but in a creative way; not as though their products are subpar, but that if the consumer has an eye for this product heshe can afford it. This slogan’s attitude remains consistent throughout the company. When browsing on Pierl . com the first series of scrolling ds on the website says, “Neat things, neat prices. This headline remains consistent with the main slogan because it is again insinuating that this company has individual, “neat”, things that they could not find somewhere else plus at the competitive price that Pier 1 is offering (Pier 1). Another way that this campaign remains consistent throughout the company is on the “About Pier 1” page. The company states, “Pier 1 Imports is dedicated to offering customers distinct home furnishings and d?©cor at a good value. Our merchandise is a constantly evolving assortment based on customers’ lifestyles and relevant home rends”… All merchandise is carefully selected in order to offer our customers exclusive, one-of-a-kind product that reflects excellent quality at a great value. ” In addition this company’s campaign maintains a consistent attitude in that their products are not the only one of a kind experience they will receive when dealing with the company. The company promises that the service and assistance that you will receive while shopping at Pier 1 is also one-of-a-kind. The current CEO, Alex Smith, also made an emphasis on this strategy ensuring that their employees omplete countless hours of training to become the best at what they do (Dishman).
The About Pier 1 webpage also backs this statement up again stating: “We employ committed, caring associates whose first priority is responding to the needs of our customers. ” The visual consistency is also constant throughout the different channels of advertisements. The Pier 1 website has different ads displaying varying furniture layouts and themes, all which have a bohemian-based theme. The website’s general font is not the usual Times New Roman either; the creative font adds a unique effect that contributes back to the whole campaign theme. Furthermore, the mainstream commercial contributes to the theme as well.
The picture below shows the creative font that Pier 1 chose for their website. 2. Product Positioning Strategy Pier I’s product positioning strategy is by product user and product class. The company uses the strategy position by product user because Pier 1 offers many much of what Pier 1 has to offer in their homes, because it may not be their taste or the style they are wanting to achieve. While Pier 1 attempts to offer something unique for almost every home, the store has a certain style that can only some consumers would like. The image below is an example of a room layout and design that only some consumers may like.
Every consumer has different taste, and Pier 1 may not appeal to some at all. The company positions by product class in that Pier I’s ads claim that you can come to the store and find what speaks to you uniquely. Pier 1 differentiates from Target or other major department store by claiming that they offer more unique products that not many other consumers will have in their homes also. Most consumers want to decorate their homes in a distinct way that sets their home apart from the next. Creative Brief a. Addresses the need to relay a fresh and one-of-a-kind home d?©cor theme. b.
Objective: keep the interest of consumers and continue to receive their business c. Target audience: consumers 35-44 years old (they occupy the majority, 23%, of the market segment) d. Key benefits: “authentic and distinctive merchandise reflects the diverse cultures of the many countries we explore. We offer a broad assortment of items and styles, with something for everyone-useful, decorative and the purely whimsical. We help our customers reflect their personal style. ” e. Creative strategy statement: “Find What Speaks to You”. . Demonstrate unique, but affordable home d?©cor. Accommodating to many different styles -Product differentiation -Consumer experience: bazaar, store is maze-like allowing consumers to discover what pieces they want in their homes. 4. Media Strategy The communication channels that Pier 1 chose to use to deliver their advertising messages were internet, social media, mass media, and online catalogs. The media strategy they chose to use was is effective in what Pier 1 was trying to achieve. They are trying to make their brand known in the home d?©cor industry, use visuals to show heir distinct style, and the visual aids also appeal to the emotions.
Most consumers see the ads showing the living room furniture they have always wanted, and in in return drive them to go to Pier 1 to purchase those items. The choices of media relate to the effective execution of the message strategy because the main goal is to appeal visually and that is what the ads do. Pier 1 does not use the radio as a form of media, because there is no way to show what products that they offer. The ability to show what products the company offers is the way to get consumers online or in he store to purchase from the company.
The ads use imagery, so that the consumer will associate what they have seen in an ad with the brand. 5. Effective Balance between Creativity and Effective Message? There is an effective balance between creativity and relaying the message effectively. The advertisements and website design that Pier 1 has chosen to use throughout their integrated marketing communications strategy are consistently also it is never overwhelming. The room layouts and furniture choices they use for their website scrolling ads are always clean, organized, and clear of clutter.
Throughout viewing the store there are thousands of products in the store, but they are all organized by general themes and transition from one theme to another in an order. Works Cited Dishman, Lydia. “Why Pier 1 is Choosing Bricks Over Clicks And Winning. ” Forbes. (2012): n. page. web. 30 Jul. 2013.. Jose, Eben. “Home Furnishing Stores in the US. ” IBIS World n. pag. Southeast Missouri State University. Web. 30 Jul 2013.. “Pier 1. ” Pier 1 Imports History. n. page. Print.. “Pier 1. ” Pier 1 Imports About Us. n. page. Print.. “Pier 1. ” Pier 1 Imports Philanthropy. n. page. Print..