HERE IS HOW BANANA REPUBLIC TARGET HIS MARKET SEGMENTATION AND ITS STRATEGY TO TARGET THEM
Banana Republic Takes Market Research Online
Retailer Banana Republic regularly consults several thousand of its most loyal customers on marketing ideas and initiatives, using online market research software to manage the customer community.
"It allows us to consistently measure brand health and performance over time, asking the same set of questions every quarter, to see how we do better or worse on those metrics," said Stefan Banducci, senior manager of business development for Banana Republic, a division of The Gap, in an interview with The CMO Site.
Its BR Insiders panel complements other market research tools, such as in-store customer interviews, to measure the health of the brand.
Banana Republic also uses the BR Insiders panel for various ad hoc research topics, relevant to whatever the company is interested in at the moment. For example, Banana Republic went to the panel to research how customers are navigating the economic downturn. "We saw quite a bit of things changing as people adjusted to the economic situation at hand. We saw a big increase in the demand for more versatile products, things that can go a lot of different ways, season for season," Banducci said.
The company uses software from vendor Vision Critical, rather than sending out email blasts with questions, because Vision Critical provides more control. Vision Critical allows Banana Republic to target such particular demographics as income, age, and price range, and then measure how different segments perceive different ideas.
Banana Republic targets a broad range of adult consumers. "We do segmenting on a 'psychographic' basis. We have Fashion Sophisticates and Fashion Followers on the women's side, and on the guy's side we have a segment called Looking Sharp and another called Regular Guy. They have different psychographic profiles that we leverage from a marketing perspective."
The service allows Banana Republic to send out marketing collateral to try on the BR Insiders panel -- for example, different magazine photos and images for campaigns, and pictures of future products. "You get the customer's perspective on what they like, what they dislike, and adjust the product and pricing and fit and other elements to make it better before it actually hits the stores."
In addition to Banana Republic, The Gap also operates its namesake stores -- where sales were down in March, despite relative strength in the retail sector -- and Old Navy. The company recently brought in new leadership. The Gap faced consumer backlash when it changed its logo in October, and it abandoned the new logo after a week.
Banana Republic uses a product called Sparq from Vision Critical to manage the BR Insiders panel. Sparq is also used by Microsoft, "every major sports team in the US," Virgin Mobile US, Nascar, BBC News World Service, and more, says Vision Critical CEO Angus Reid. In addition to providing software as a service, Vision Critical helps companies recruit members for its consumer panels.
— Mitch Wagner
, Editor in Chief, The CMO Site
The CMO Site is an executive social network that provides CMOs and other marketing executives from the world’s leading organizations with a real-time, online venue where they can convene to discuss how they're delivering on the most critical marketing priorities. Join us!
TYPES OF CUSTOMERS BANANA REPUBLIC TARGETS, (YOUNG BUYERS)
"It allows us to consistently measure brand health and performance over time, asking the same set of questions every quarter, to see how we do better or worse on those metrics," said Stefan Banducci, senior manager of business development for Banana Republic, a division of The Gap, in an interview with The CMO Site.
Its BR Insiders panel complements other market research tools, such as in-store customer interviews, to measure the health of the brand.
Banana Republic also uses the BR Insiders panel for various ad hoc research topics, relevant to whatever the company is interested in at the moment. For example, Banana Republic went to the panel to research how customers are navigating the economic downturn. "We saw quite a bit of things changing as people adjusted to the economic situation at hand. We saw a big increase in the demand for more versatile products, things that can go a lot of different ways, season for season," Banducci said.
The company uses software from vendor Vision Critical, rather than sending out email blasts with questions, because Vision Critical provides more control. Vision Critical allows Banana Republic to target such particular demographics as income, age, and price range, and then measure how different segments perceive different ideas.
Banana Republic targets a broad range of adult consumers. "We do segmenting on a 'psychographic' basis. We have Fashion Sophisticates and Fashion Followers on the women's side, and on the guy's side we have a segment called Looking Sharp and another called Regular Guy. They have different psychographic profiles that we leverage from a marketing perspective."
The service allows Banana Republic to send out marketing collateral to try on the BR Insiders panel -- for example, different magazine photos and images for campaigns, and pictures of future products. "You get the customer's perspective on what they like, what they dislike, and adjust the product and pricing and fit and other elements to make it better before it actually hits the stores."
In addition to Banana Republic, The Gap also operates its namesake stores -- where sales were down in March, despite relative strength in the retail sector -- and Old Navy. The company recently brought in new leadership. The Gap faced consumer backlash when it changed its logo in October, and it abandoned the new logo after a week.
Banana Republic uses a product called Sparq from Vision Critical to manage the BR Insiders panel. Sparq is also used by Microsoft, "every major sports team in the US," Virgin Mobile US, Nascar, BBC News World Service, and more, says Vision Critical CEO Angus Reid. In addition to providing software as a service, Vision Critical helps companies recruit members for its consumer panels.
— Mitch Wagner
, Editor in Chief, The CMO SiteThe CMO Site is an executive social network that provides CMOs and other marketing executives from the world’s leading organizations with a real-time, online venue where they can convene to discuss how they're delivering on the most critical marketing priorities. Join us!
TYPES OF CUSTOMERS BANANA REPUBLIC TARGETS, (YOUNG BUYERS)
We also use the segmenting and targeting approach for our car dealership business. First we identify out potential audience and attract them with creative ads and lucrative offers. Once they approach us, we convince them with the help of regular car sales text messages. This approach has been working great for us till date.
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