CRM and Targeted Marketing
Company: Kids Foot Locker
Team Members:
Part 1: Corporate Profile Chart
| Describe the business model of the company | The company operates both B2B and B2C business modelsThe B2B model focuses on corporate clients, such as teams, schools, and institutions dealing with many kids or reselling the products at retail.B2C model focuses on direct engagement with customers, using its retail stores and online platforms (Rodriguez, Peterson & Krishnan, 2018). |
| Identify the industry it competes in | The company operates in the fashion industry, specializing in kids’ sports shoes and footwear, with a preference for sporting designs. |
| Provide a brief overview of its history and scope of operations including: size, location, functions performed, and estimated sales/volume. | The company is a multinational corporation with a presence in over 28 countries globallyThe company operates over 3000 stores in these foreign locationsThe company is present in North America, Europe, Asia, Australia, and New ZealandSales were also made through websites and mobile appsThe sales volumes reported in 2020 were $7.5 billion |
| Provide its Mission Statement. | Mission – to fuel a shared passion for self-expressionVision – to create unrivaled experiences for customersPosition – to be at the heart of the sport and sneaker communitiesPurpose – to inspire and empower the youth culture |
| Describe its Primary Customer group | The primary customer group of the company is the youth and kidsThe company specializes in sneakers and other sports shoes for kids/youths |
| Identify its major competitors. | Footaction. 3,000. $300 Million.The Athlete’s Foot. 946. $185 Million.WSS. 1,600. $337 Million.Shiekh Shoes. 1,500. $284 Million.Finish Line. 10,000. $1 Billion.DTLR VILLA. 1,300. $200 Million.Shoe Show. 8,900. $1 Billion.City Sports. 501. $100 Million. |
| Describe the Differential Competitive Advantage it has established in the industry it competes in. | The differential competitive advantages of the company include Consolidated global market shareExpansive customer base globallyTransformation with market dynamics Operating multi-channel retailing Embracing e-commerce trade (Dewicka, Trziszka and Ziomek, 2019). |
| Briefly describe how it captures Customer transactional information. | The company captures consumer transactional information through: Digital payment platforms like credit cardsOnline sales through its website storesOnline sales through its mobile apps |
Part 2: Target Market Profile
| DEMOGRAPHICS What is the basic factual census-type information on the target market as a whole? | Include information on: Gender(s) – both male and female genderAges (ranges) – kids category of customers from 0 to 18 years of ageMarital statuses – not applicable as the company’s focus is on kidsFamily Type – not applicable as the company’s focus is on kidsFamily Life Cycle – not applicable as the company’s focus is on kidsGeneration – modern-day generation, particularly Generation Z because of their preference for online shopping Incomes (ranges) – middle-income classOccupations – not applicable as the company’s focus is on kidsEducation (high school + etc.) – elementary school through college and university Home Ownership – not applicable as the company’s focus is on kids |
| GEOGRAPHICS Where does the target market live and work? | Include information on where the target market resides, such as: Region or provinces – the company is a multinational corporation with a presence in over 28 countries globallyCity size (small/medium/large) – the company operates in large established markets in foreign and local markets, such as New York, London, Sydney, Density (urban/suburban/rural) – the focus is on the urban population, who mostly are of school-going age. |
| PSYCHOGRAPHICS What are the prevailing attitudes, values, interests, habits, opinions, and approaches to life that this target market shares? | Clearly describe the target market’s general approach to living: The personality traits of the target market include middle income to high-end families who fancy designers for their footwear and fashionThe lifestyle values of the target markets are clients who want the best quality and designs of their footwear, particularly sneakers and shoes.Leisure activities, hobbies, and interests of the target market are sporting activities, including athletics, football, and other outdoor activitiesMedia habits of the target group include a preference for online or digital platforms for accessing news and other necessary information, such as internet sites, social media platforms, mobile apps, and online TV and radio (Chiang, 2017).The target market is a major consumer of technology, with most using their smartphones, tablets, tablets, e-readers, and smartwatches. Y&R 4C Cluster(s) that apply – Customers are young kids – Cost is designed for the middle class to the high-end customer – Convenience is provided by the online stores operated by the company – Communication is undertaken through digital marketing platforms |
| BEHAVIOURISTICS How does this target market use and interact with the product? | Include information on how and why consumers will buy the product as follows: The level of Involvement in Purchase is very high, which informs the high-profit margins that the company makes, attributed to high sales volumes.The level of Search for Information is extensive as information about the company and its products are readily available across various platforms and accessible through digital platforms (Ascarza, Ebbes, Netzer & Danielson, 2017). The main occasion for product use is not specific. The products are designed for the kids and younger generation, who generally wear them everywhere, for leisure, recreation, socializing, home visits, family activities, and other personal engagements. The main product benefit sought from using the company’s products is fashion, as it mostly deals with designer sports shoes and sneakers. A primary and secondary usage of the products is the same, given the target clients, kids from zero to 18 years. The shoes and sneakers come in different designs and, as such, are suitable for different purposes. The frequency of usage of the shoes and sneakers from the company is high, and as such, the frequency of purchase is also high.The degree of brand loyalty to the product is high because the company deals with an assortment of different designer sportswear for its clients. |
Description of PTC
The PTC of the company comprises the young generation, as the company mainly deals with sports shoes and sneakers for kids aged zero to 18 years. The kids targeted for these products reside mainly in urban areas, including cities, towns, and metropolises globally. The customers use these products for all occasions, as they are not engaged in any professional sporting activities. The gender includes male and female clients, who are of school-going age from elementary school to college or university. As such, they are mainly considered as students who purchase these products through their parents or guardians.
Part 3: Persona
- Location – Where do people from this persona live?
- The company targets customers from global markets, evidenced by its multinational corporate model where it operates over 3,000 stores in more than 28 countries across Europe, New Zealand, the United States, and Australia, among others. Most of the target customers reside in urban centers, such as cities and metropolises within these markets, which make it easier for the company to reach out to them.
- Age – What is the age range of this persona?
- The company specializes in kids and teenagers aged between 0 years and 18 years. The market share is wide given the fact that more than two-thirds of the world’s population comprises of the young generation. In this regard, the target market is suitable for the company because of provides an expansive customer base readily available across the globe.
- Gender – What is the gender of people in this persona?
- The company does not focus on a specific gender but rather deals with products for both male and female genders. As such, this explains why it sells sports shoes and sneakers for both male and female players, athletes, and sports-persons in different games or sports involving kids and teenagers under the age of 18 years.
- Education Level – What is the education level of this persona?
- The education level of the persona ranges from elementary school to college or university. The elementary school persona is those kids who are just starting school and want sports shoes or sneakers for going to school or playing around at home. Then comes the persona in primary school, followed by those in secondary school, as well as those in college or university under the age of 18 years.
- Job Title – What field of work do your customer work in and what types of job titles do they carry?
- The target customers of the company do not have any job title but would be easily categorized as students considering the fact that the majority of them are still within the school-going age from 0 years to 18 years. The occupation of children within this age bracket is mainly attending school in their respective grade or level, such as elementary school, primary school, secondary school, and college or university.
- Language – What languages do people in this persona speak?
- The persona of the company does not speak a specific language, like the fact that the company operates as a multinational corporation with a global presence in over 28 countries. As such, the company has to structure of tailor its communication language to suit the clients within its specific market, such as using English when operating in English speaking countries, French when operating in French-speaking countries, and Spanish when operating in Spanish speaking countries.
- Income Level – What is the income range of this buyer persona?
- The target customer of the company is within the middle-income and high-income social status. The income range of the buyer persona is noted from the pricing adopted by the company for its products, as most of them are not affordable to low-income earners.
- Interests – What are the interests of people in this persona?
- Since the company focuses on kids, it is presumed that the main interest of the persona is playing. As such, it is presumed that the kids for playing, be it in professional games such as athletics and basketball or simple, fun games at home or school, would use the sports shoes and sneakers that the company sells to its target clients across the world.
- Family Life Cycle stage
- The family life cycle stage targeted in this case is parenting, which involves babies through adolescents. In fact, the persons who purchase these products are not the kids who use them, but their parents and guardians who consider it appropriate for their ids to use products from the company. It is a parenting stage where the parents play a strategic role in providing for the needs and wants of their children.
- Relationship Status – What is the relationship status of this buyer persona?
- The relationship status of the buyer is single and not ready for engagement or not available because they are still kids at a very young age and not in a position to get into any gainful or serious relationships, such as dating or marriage. However, some adolescents aged 17, 18, and 19 years could be exempted from this category if they have serious intimate or romantic relationships
- Favorite Websites – Why type of websites do people in this persona frequent?
- The persona of this company are major consumers of digital content, and as such, frequent sites with digital information, including social media sites like Facebook, YouTube, Instagram, and Tik Tok. As such, when marketing its products using digital marketing strategies, the company should focus on these mostly frequented digital marketing platforms, particularly social media marketing.
- Social Media Habits – What sites is this persona active on? What type of sites do they frequent?
- As mentioned above, the social media habits of the target consumers or persona of the company are to consume content from other social media users placed on these sites. The most common social media sites where these consumers patronize include Tik Tok, Instagram, and Facebook.
- Buying Motivation – What is this persona’s reasons for buying your product?
- The motivation for the persona buying the product is sporting, games, and fashion. As noted above, the direct consumer of the product is not the one who purchases the product. However, the product is purchased by a third party, usually a parent or guardian or teacher, on behalf of the final consumer because the consumer is still a kid and probably cannot afford to purchase the sports shoes and sneakers that the company sells.
- Buying Concerns – What is this persona’s concerns when buying your product?
- The concern expressed by the persona while buying the product is the quality of the product, given the fact that kids are not very good at taking care of things entrusted to them. Since the company deals in only kids products, it is imperative that the quality of the products meet the requisite quality so that they do serve for the expected period, as opposed to falling apart within a short time. The longer they are used, the higher the value for money they provide.
- Concerns in life – Family, career, etc
- The persona is still a kid and, as such, has little or no concern in life other than enjoying their childhood and adolescence.
References
Ascarza, E., Ebbes, P., Netzer, O., & Danielson, M. (2017). Beyond the target customer: Social effects of Customer Relationship Management campaigns. Journal of Marketing Research, 54(3), 347-363.
Chiang, W. Y. (2017). Discovering customer value for marketing systems: an empirical case study. International Journal of Production Research, 55(17), 5157-5167.
Dewicka, A., Trziszka, M. and Ziomek, J., 2019. The CRM system and its role in raising the competitiveness of enterprises. Annales Universitatis Mariae Curie-Skłodowska, sectio H–Oeconomia, 53(2), pp.17-24.
Rodriguez, M., Peterson, R. M., & Krishnan, V. (2018). Impact of CRM technology on sales process behaviors: empirical results from US, Europe, and Asia. Journal of Business-to-Business Marketing, 25(1), 1-10.
