It is confirmed. Kate Spade will be launching a lower-priced line called Saturday that is aimed at the cyber world. Costs will be half of what they are now for handbags, apparel, footwear, eye-wear, and house goods. The target demographic of this line is women from age 30 to 40, although the line style will be youthful and have dramatic bold colors. In a world of social media, companies have to adapt and use the Internet medium to stay successful. Communication mediums such as TV, radio, and magazine ads are very important, but if you do not use e-commerce or social media, you may fall behind your competitors. Kate Spade has recognized two important needs for the company’s future:
1. Need for more e-commerce involvement
2. Need to satisfy lower demographic demand
Kate Spade’s new marketing strategy will attack these two issues by launching the Saturday line that offers credible products of quality at a lower price online at www.saturday.com.
In the short time that I have been following Kate Spade, I myself have struggled to be a loyal customer to this company because of the costs. After I made my online purchase with Kate Spade’s “friends & family promotion, I completed two surveys for their personal feedback on my experience. It was a pretty lengthy survey and it honestly made me feel kind of embarrassed and upset. It asked me questions like, “do you own a Kate Spade purse? Why not? Are they too expensive? Where do you buy your accessories? Wal-Mart? TJmax? Ross? Bloomingdales? Michael Kors?” My answers definitely put me in the lower-income category and made me feel that I cannot maintain the Kate Spade Image realistically. As a conscious consumer, perhaps I should stop buying their products if they will break my bank or make me feel negative in any way. To my surprise, the next morning I received an email alert spilling news of the Saturday line that intended to expand their market.
This was a very intelligent business move for Kate Spade. Not only has she decided to specialize to specific segments to maximize customer satisfaction, but she is also competitively differentiating her company into the cyber world with a separate online addition.
Recently in my upper division marketing classes, I have been learning so many concepts and strategies that companies should use and why brand management is so important. In the short time that I have been following Kate Spade, I have been able to use her as a perfect example of a company that is successful because of their high brand equity and use of customer relationship marketing. Every week Kate Spade illustrates how a brand should be presented and why it is so important to have a great marketing team. I plan to use similar strategies with my own business. I also plan to drastically change my wardrobe when Kate’s Saturday line comes out!
To conclude this weeks post, I want to share an experience I had while working at Michael Mina. I sat a woman who was completely dressed in Kate Spade from head to toe. I couldn’t help but notice and share my thoughts with her. I asked her when she bought her outfit because I did not recognize anything she was wearing from online or the retail stores. She said, “ Well, because Kate Spade is my best friend, I get my pic of future items.” I almost died!
For further information about the Saturday line: click here
Until next time.