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FSF Case Study: Analytics

Applying data analytic methods to fully capture customer sentiment for brands

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Table of Contents

  1. Opening Slide
  2. Table of Contents
  3. Executive Summary
  4. Status of the Brands
  5. Launch Plan
  6. Vans Target Benefits
  7. White Claw Target Benefits
  8. Separating Impact of Collab Launch
  9. Collecting Third Party Information
  10. Technology Investments
  11. Performance Benchmarking
  12. Reasoning for Methodologies
  13. Appendix
  14. Graphics Citation

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When a collaboration is established between two brands of different industries, it can be a challenge to measure the impact for both of them respectively. However, advancements in data analytics for retail have been able to meet this challenge if brands understand who their customers are and what they want to achieve.

For my collaboration, I chose Vans Footwear, a subsidiary of VF Corp, and White Claw, a hard seltzer beverage. Even though these two brands come from two different industries, they do share many things in common. For example, their customer bases are comprised of young people who are focused on trends. They both also market themselves using similar cultural iconography.

Vans has a history of being part of the surfer culture as demonstrated with them being featured in the 1982 film “Fast Times at Ridgemont High” and White Claw uses the white claw wave as their logo. A more obvious connection between the two brands can be summed up by a quote from the Ridgemont film where the protagonist states “All I need are some tasty waves, a cool buzz, and I’m fine.” Above all, what these two brands want to achieve is to become a lifestyle brand which can be accomplished via this collaboration. White Claw can be associated with skate and swim ready-to-wear to fully encapsulate its status as the number 1 spiked seltzer drink and Vans can capitalize on a new, growing, trendy market for their core demographic. If both brands seize on the growing demand for spiked seltzer by working together, they could both cement themselves to each other’s customers as the must have product for their lifestyle.

Executive Summary

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Status of the Brands

  • Largest brand in VF Corp’s portfolio
  • Targets young consumers involved with action sports, art, music, street fashion
  • Revenue for VF in fiscal year 2019: $13.8B (12% increase)
    • Vans’ growth of 24% helped drive increase
    • Current revenue is $3B
    • Targeting $5B by 2023

  • Top selling hard seltzer brand
    • 50% market share

  • Current industry worth: $550M
    • Could reach $2.5B by 2021
    • Predicted annual growth rate of 66%
    • Footwear industry revenue: US$91,187m
    • Expected to grow annually by 2.3%

  • Main consumer demographic are young people (21-35)

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  • Limited release in the US
    • Major areas: NY, Miami, Chicago, Southern California (Hermosa Beach, Huntington Beach, Costa Mesa, Encinitas, San Diego)
  • 5,000-10,000 units of collab product
  • Initial product assortment takes inspiration from the flavors of White Claw: Pure, Mango, Natural Lime, Raspberry, Ruby Grapefruit
    • A multicolor, checkered style product will bolster the thrill of the collab and fits with Vans’ traditional checkered style shoe
  • $80 retail

Launch Plan

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Vans Target Benefits

Customer

Lifetime Value

Loyalty Program

  • Monitor who is clicking on their website from email marketing and following their social media pages

  • See who created an account with Vans ask if the collab product brought them here

  • Monitor consumer shopping carts to see if they bought the collaboration product using internal email lists
  • Influential can measure social media marketing campaign via influencers, monitor engagement rates, positive sentiment analysis, search interest, increase in foot traffic for each campaign

  • Monitor growth in social media accounts after collab launch; specific hashtags for collab product to see growth associated with collab product and not from internal or external influences

  • Vans Family App to suggest similar products to purchasers of collab product

  • While collab is going on, survey will be conducted to gauge lifetime value, in store or register if consumers are willing to purchase again from Vans

Customer

Acquisition

Email marketing

Brand

Awareness

Social Media

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White Claw Target Benefits

  • Monitor clicks from email marketing

  • Distribute QR code or rebate coupon for buyers of collab product to redeem at a WC distribution center for a free or discounted White Claw (provided they are 21+)

  • Allow customers to create an account with White Claw’s website to identify specific consumers and track purchase behavior
  • Monitor growth in White Claw social media accounts

  • Track feedback through specific White Claw hashtags in association with collab product marketing

  • Use of Influential to track impact and growth of collab campaign marketing
  • Create an app “Where’s my claw” that directs customers to their nearest store that sells WC

  • Encourage loyalty app/program after customers bought collab product, scan app each time when purchasing a White Claw and get rewards to encourage consumer behavior

Customer

Lifetime Value

Loyalty Program

Customer

Acquisition

Email marketing

Brand

Awareness

Social Media

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Separating Impact of Collab Launch

Regression Model

A/B Testing

Identifies which independent variables had the most impact on the dependent variables (given that a dataset has been standardized and each variable is in the same scale)

  • Example for customer acquisition:
    • Dependent variable: increase of new customer emails
    • Independent variables: collab email promotion, current sales figures, customer sentiment, new product sales that is not the collab product
    • See if overall model is a good fit (check for 50%+ R-Square and Adjusted R-Square)
    • Check if dependent variable can explain independent variable (see if p-value is below 0.05)
    • Check coefficient of collab email promotion variable (large coefficient means it had a large impact on the dependent variable)

Compares a controlled dataset to a dataset with applied changes

  • Example for customer acquisition:
    1. A Set (before collab launch): show select Vans or White Claw customers an email promotion without collab product featured
    2. B Set (after collab launch): show select Vans or White Claw customers email with collab product featured
    3. Results: Observe changes in sales and customers independent of collaboration launch

1

2

3

A Set

B Set

Results

New Cust. Emails

Collab Email Promo

Current Sales

5

2

0.55

0.56

1

2

3

0.025

0.045

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What brands already know:

Customer data, customer accounts and purchase history, sales figures for season, product performance at every point of distribution

What brands need to collect:

Sales data from retailers (in store or online), data from resale platforms, social media data

Collecting Third Party Information

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Technology Investments

HubSpot Marketing Hub

Marketing analytics products such as email marketing, ROI on social media ads, UTM codes for QR codes to precisely track web traffic from origin post

https://www.hubspot.com/products/get-started

Flywheel by Ascential

Optimizes effectiveness on the Amazon digital platform

https://flywheeldigital.com/strategic-consulting/

Influential

Uses IBM Watson machine learning AI to recommend influencers for social media campaign to monitor engagement rates, positive sentiment analysis, search interest, increase in foot traffic for each campaign

https://influential.co/

Mailchimp

Online email marketing CRM tool that gives important customer data to brands such as clicks on social media platforms, performance reports on a marketing campaign, targeted segmentation, etc.

https://mailchimp.com/

QR Code Generator Pro

Creates custom QR code for marketing campaigns

https://www.qr-code-generator.com/

Internal Data Teams

Both brands should invest internally in data analytics teams to properly manage company data who are skilled in data manipulation, data gathering, and visualization

https://www.tableau.com/

https://rstudio.com/

https://www.microsoft.com/en-us/sql-server/default.aspx

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Overview

Look at competitor/industry growth and set targets to beat that (annual projected growth of footwear retail is 2.3%; collab must add comparable growth according to collab’s units of production which would be 0.25% - 0.75%, increasing to 1% with apparel category additions)

 

Performance Benchmarking

Target Benefits

CA: Increase in sales growth (income statement) and loyalty program, average sign up per month (did it increase or decrease after collaboration)

 

BA: Growth in social media accounts, usage of brand specific hashtags

 

CLV: See how many products in which categories have increased after the collaboration launch

Next Steps

After 1st year of collaboration for footwear, expand into apparel (including but not limited to: men’s and women’s t-shirts, board shorts, and windbreakers) to scale collaboration for both brands to attain comparable growth rates as the US footwear industry

2.3% growth each year

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Reasoning for Methodologies

Today more than ever customers are interacting with brands in many different ways

Brands must have:

  • Procedures to capture customer interaction
  • Monitor their business in every platform that customers frequent
    • Social media
    • Apps
    • Online surveys
    • Email promotions
    • In store

As a result:

  • Create a seamless customer experience
  • Allow the brand to easily identify their customers
  • Quantify and qualify customer wants
  • Tailor the shopping experience to customer needs to increase the value of the brand
  • Establish order qualifiers and order winners

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Appendix

References

  1. A/B Testing. (n.d.). Retrieved from https://www.optimizely.com/optimization-glossary/ab-testing/.
  2. Browich, J. (2019, Sep 6). The Memes Are Pouring the White Claw Down Your Throat! Retrieved from https://www.nytimes.com/2019/09/05/style/white-claw-popular-memes.html
  3. Foley, B. (2019, September 19). What is Regression Analysis and Why Should I Use It?: SurveyGizmo Blog. Retrieved from https://www.surveygizmo.com/resources/blog/regression-analysis/.
  4. Interviewee #1, A.M., personal interview, (2019, Aug).
  5. Interviewee #2, V.B., personal interview, (2019, Sep).
  6. Interviewee #3, J.G., personal interview, (2019, Sep).
  7. Interviewee #4, J.H., personal interview, (2019, Aug).
  8. Interviewee #5, Y.S., personal interview, (2019, Aug).
  9. Interviewee #6, G.O., personal interview, (2019, Aug).
  10. Interviewee #7, S.W., personal interview, (2019, Aug).
  11. Reinicke, C. (2019, July 30). Hard-seltzer sales are booming in the US - and UBS says these 5 beer companies are best positioned to profit from the trend | Markets Insider. Retrieved from https://markets..com/news/stocks/beer-companies-stocks-best-for-hard-seltzer-boom-ubs-2019-71028400172#1-anheuser-busch-inbev-bud-1.
  12. Statista (2019, Sep) Footwear Sales. Retrieved from https://www.statista.com/outlook/11000000/109/footwear/united-states#market-arpu.
  13. Vans Brand Targets $5 Billion in Revenue by Fiscal Year 2023. (2018, September 12). Retrieved from https://www.businesswire.com/news/home/20180912005111/en/Vans-Brand-Targets-5-Billion-Revenue-Fiscal.
  14. VF Corporation. 2019. 2019 Annual Report. Retrieved from https://www.vfc.com/investors/financial-information/annual-reports
  15. White Claw Demographics and Consumer Insights. (n.d.). Retrieved from https://snapshot.numerator.com/brand/white_claw.

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Graphics Citation

  1. https://martechtoday.com/are-your-marketing-efforts-hurting-sales-the-need-for-a-consistent-view-of-the-consumer-journey-217975 (slide page 12).
  2. https://www.optimizely.com/optimization-glossary/ab-testing/ (slide page 8).
  3. https://rstudio.com/about/trademark/ (slide page 10).
  4. https://clipart.info/microsoft-sql-server-logo-png-4966 (slide page 10).
  5. https://commons.wikimedia.org/wiki/File:Tableau_Logo.png (slide page 10).
  6. https://www.g2.com/products/hubspot/reviews (slide page 10).
  7. https://www.trustpilot.com/review/www.qr-code-generator.com (slide page 10).
  8. https://flywheeldigital.com/strategic-consulting/ (slide page 10).
  9. https://www.stickpng.com/img/icons-logos-emojis/tech-companies/mailchimp-logo-text (slide page 10).
  10. https://shortyawards.com/10th/influential-teams-up-with-ibm-watson-to-revolutionize-influencer-marketing-and-technology (slide page 10).
  11. https://statistics.laerd.com/stata-tutorials/linear-regression-using-stata.php (slide page 8).
  12. http://www.myiconfinder.com/icon/buy-cart-ecommerce-market-shop-shopping-trolley/22937 (slide page 6, 7, 9).
  13. https://www.vippng.com/preview/ibwJwTR_png-file-svg-vector-new-customer-icon/ (slide page 6, 7, 9).
  14. https://www.malibumakos.com/ocean-waves/ (slide page 1-15).
  15. https://stockx.com/ (slide page 9).
  16. https://commons.wikimedia.org/wiki/File:Amazon_logo.svg (slide page 9).
  17. https://www.pngix.com/viewpng/ixhJJ_facebook-instagram-logo-png-transparent-png/ (slide page 9).
  18. https://commons.wikimedia.org/wiki/File:Vans_(brand)_logo.png (slide page 1, 4).
  19. https://www.championbrands.net/product/white-claw-hard-seltzer/ (slide page 1, 4).
  20. https://www.heidelbergdistributing.com/products-main/featured-products/white-claw/ (slide page 3, 4).
  21. https://latimesblogs.latimes.com/alltherage/2009/08/fast-times-at-ridgemont-high-anniversary-august-13-1982-vans-checkerboard.html (slide page 3).
  22. https://www.flaticon.com/free-icon/money-bag_189093 (slide page 9).
  23. https://www.flaticon.com/free-icon/megaphone_216883 (slide page 6, 7).
  24. https://www.pngkey.com/download/u2q8u2i1o0e6u2e6_checkered-vans-png-nz-justin-bieber-vans-shoes/ (slide page 4).