Retail Brand Extension Essay

In the past, Target Corporation has partnered with many already successful designers. Jason Wu, Missoni, Yves Saint Laurent, and Zac Posen are just a few examples of the designers chosen for these profitable partnerships. Target Corporation is known for partnering with popular designers to create items that are not only affordable but also quite innovative. Each time that Target releases a new partnership line, fashionists rush to their nearest Target store to get their hands on an item that has been touched by their favorite designer. Target has shown that this strategy can create a tremendous buzz.

For our line extension, we have chosen to have out line sold at Target Corporations nationwide. Target has had much experience with collaborations, making this an easy extension. Our planned products would be sold best at a retailer, like Target, that attracts the multi-channel shopper. Because there are so many Target stores nationwide, we are confident that out product would be able to reach the masses. Tory Burch is an iconic American designer known for her classic shapes and preppy style. Her desirable designs have made her a well-known figure throughout the American household.

American movies and TV shows have included Tory Burch within their style repertoire helping to make Tory Burch a status brand. Her timeless designs have helped to create a brand that will forever feed the American woman from a young age to an old. We see no better designer than Tory Burch to partner with the Target Corporation. Our plan is to create a line of shoes and accessories that will transfer the iconic preppy-chic vibe that Tory Burch has made so popular into the dearly loved Target Corporation. Our brand strategy will consist of creating an extension without a sub-brand. The line will be called Tory Burch for Target.

Tory Burch will design several items that will then be manufactured and exclusively sold by Target Corporation. Tory Burch is not a new designer entering the retail industry, however for the first time, the Tory Burch brand will become accessible to the mid-level income shopper. Because Tory Burch already creates handbags, accessories, and shoes, this partnership is not a category extension but a line extension. A line extension is a multi-product branding strategy whereby a firm markets one or more new products under an already established and well-known brand name (Online Business Dictionary).

Tory Burch’s accessories are more sought after than her clothing, making the accessories become status pieces that will be favored by the Target shopper. For this reason, we have selected the accessory and footwear categories to implement into Target Stores. Because the Tory Burch items will be highly desired, we plan on distributing our products through many different channels. Using multi-channel retailing will allow for any shopper to purchase Tory Burch for Target items at any time. Our first focus will be in-store. Inside the store we will set up a pop-up shop.

This area will contain all of the Tory Burch items that Target offers. The main essentials of this small “shop” will be the signage and layout. The promotional signage will begin at the front of the store. As the customer enters the store, they will be able to look down and see printed Tory Burch sticky-feet that will lead them to the Tory Burch pop-up shop. Promotional signage will also be hung from the ceiling and will contain the words “Tory Burch for Target”. The signs will be navy and lime green with a splash of pink. Within the “shop” we will have point of sale signs that will be placed near each product.

These signs will contain the prices, the place from which Tory Burch drew her inspiration, and Tory Burch’s tips on how to wear each item. The layout of the Tory Burch area will be very important in order to maintain an even traffic flow. We have chosen the free form layout to encourage the shopper to explore and find navigation throughout the Tory Burch area. This layout will allow for the Target shopper to feel as if they are actually shopping in a Tory Burch store. The next channel that we plan on using is the online market channel.

Advertisement will be crucial for the success of the online market channel. Tory Burch for Target advertisements will be seen on Facebook, Twitter, Spotify, Pandora, YouTube and on the Target website home page. These advertisements will encourage those who are already using their computers and smart phones to jump onto the Target website and look at the new products. To encourage online shopping, we will have five products that will be “online exclusives”. Shoppers will only be able to purchase these five select items from the online market channel.

The online market channel will provide a way for shoppers who are not near a Target store to attain the exclusive feel that the in-store shoppers will receive. Our final channel will focus on the “girl-on-the-go”. We will create an App that can be downloaded for free and used on smart phones worldwide. This App will help take some of the traffic from the Target homepage and put it onto another channel which will keep the Target website from crashing. This App will also contain style tips and videos for the techie to watch and gain inspiration from.

The Target Corporation defines itself as a trendy and hip retailer, with quality products at an affordable cost–hence the slogan “Export more. Pay Less. ” This way of marketing attracts a target market that consists of middle-class women shoppers. Statistically speaking, 93% of Target’s shoppers are women, the average age of the shopper is 41, and the shopper’s average household income is $63,000,000. These aspects of the Target Corporation’s target market are fitting for that of the Tory Burch for Target brand extension.

On the innovation curve, those that fit into the target market for the Tory Burch for Target brand extension are early adopters. They want to stay hip and trendy at an affordable cost. In order to project how successful this extension could be, we used a mixed method of qualitative and quantitative research questions directed to a group of 45 women in our target market. Open-ended and closed questions were used in the survey to provide freedom of expression while really thinking about the topic, but at the same time providing the ability to score and compare answers in a quantitative fashion.

The questions were served in a survey format with the discretion of anonymity, sent out to women within the age range of 18 to 45. The average age of the women in this research group is 29, coinciding with our initial target market of the Tory Burch for Target line extension. The first quantitative question requested the women to provide how often they purchase Tory Burch products. The majority of women said that they have never purchased a Tory Burch product, however, this could be due to affordability or the lack of accessibility.

One woman stated that her sister used to live in Chicago and had access to Tory Burch products anytime she wanted, but she moved to Arkansas and has a harder time buying these products. The second most popular answer was that these women have only purchased a few Tory Burch products, compared to the once per month/week option. The second, an open ended question, compared the opinions of whether the women would be more inclined to purchase a Tory Burch brand name product or our new offer of the Tory Burch for Target products. The majority answer included our Tory Burch for Target proposal.

Most of the women had the same general reaction to the question. Those who would rather have the name brand products stated that the quality of the line extension cold be much worse than that of a name brand product. However, those majority who chose our line extension were excited at the idea of Tory Burch being accessible, affordable, and agreed that the extension would bring in more customers for Tory Burch, and also help Target as a retailer.

One woman stated, “Tory Burch is an expensive name, at Target the signature Tory Burch style would still be sought out but with a more affordable price tag. The third and fourth questions, both quantitative, focused on which products they would purchase and by which channel they would purchase them from. The most popular channel selected was the In-Store channel, followed by Online and a few for the Phone App. Only 2 of the 45 women stated that they would not buy a Tory Burch for Target product, however almost all products (handbags, shoes, or accessories) were chosen by each survey taker when asked which products they would choose.

The fifth, and last, qualitative question was to extend the research among other women by asking if their mothers, sisters, or aunts would be interested in the line extension and why or why not. The majority answered yes to this question, stating that these women have similar tastes, Tory Burch can extend to many different age groups of women, and most of them shop at Target already. Graphs displaying this research are displayed in the back of this report. The products that we plan on creating are intended to help the Target female shopper execute Tory Burch’s iconic look.

All of the items will be mass-produced and will be made of lower quality materials than the Tory Burch name brand products. This will be the differentiating factor between the Tory Burch line and the Tory Burch for Target line. The chosen items for the Tory-Burch for Target line will be one scarf, one sandal, three flats, two heels, one cross-body bag, one carryall bag, one clutch, one necklace, one bracelet, two pairs of sunglasses, one E-Tablet case, and two iPhone-5 hard-shell cases. . All of these items will contain the well-known Tory Burch logo.

A sample of these items can be seen at the back of this report. The Tory Burch for Target brand extension is a good fit for the Target Corporation because it follows their retail criteria. Tory Burch is a trendy designer in the fashion world that designs products that the Target Corporation aspires to imitate in an affordable manner. Because Target Corporation has had such great success with designer partnerships in the past; Tory Burch has the probability to succeed at Target, as well.

This concept is much like the GO International program that Target put on from 2006 to 2011, when they partnered with profitable designers, such as Proenza Schouler and Thakoon. Surely Tory Burch for Target is a perfect brand extension for the Target Corporation under these circumstances.

References

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