Urban Outfitters & Pizzeria Vetri Case Study: Urban Outfitters & Pizzeria Vetri Kelly N’tumba Ilunga LeTourneau University MKTG 2503: Principles of Marketing Dr. Isabella October 13, 2023 Urban Outfitters & Pizzeria Vetri 2 1) What type of SBU strategy should your team develop to help Urban Outfitters accomplish this new combination (store & restaurant)? Based on group’s class discussions, reading assignments, thinking homework and lectures, please explain the reason for your choices (why) and provide 2 academic and practical recommendations for your clients. Additionally, for the client to understand better what you are proposing, please provide 2 relevant examples that support your recommendations. Urban Outfitters boasts a significant competitive edge due to its unique market approach. To effectively merge its clothing and dining concepts into a cohesive business unit, it's essential to redefine the target market and conduct a comprehensive SWOT analysis, examining strengths, weaknesses, opportunities, and threats for both Urban Outfitters and Pizzeria Vetri. This analysis should consider the compatibility of Pizzeria Vetri's target market with that of Urban Outfitters, enabling the creation of a unified entity that caters to consumers' clothing and dining needs. Additionally, understanding the purchasing power of both sets of customers and tailoring products and services to their preferences will foster market growth. Similar concepts, like Hard Rock Cafe and Bubba Gump Shrimp Company, have succeeded by offering both clothing and dining services, emphasizing the importance of market-specific SWOT analyses. The focus on a high-end market necessitates maintaining the same level of quality, customer service, innovation, and unique products, such as coal-fired, brick-oven pizzas, rather than replicating mass-market competitors like Pizza Hut or Domino's. Grimaldi's Pizzeria serves as an example of a highend, quality pizza provider that distinguishes itself through ambiance, wine offerings, and exemplary service, appealing to a discerning clientele. Rebranding both companies into a single, unified concept offers opportunities to redefine goals, products, and values. This approach can ignite curiosity within the current customer base and attract new audiences, reshaping customer expectations. Domino's Pizza's successful rebranding is a case in point. In 2009, facing a mere 9% market share, they rebranded to improve customer satisfaction. By 2016, their market share had surged to 15%, and they gained the Urban Outfitters & Pizzeria Vetri 3 highest customer loyalty among pizza chains by adopting innovative practices like chatbot-based ordertaking on social media (Sanders, 2021). 2) What steps should Urban Outfitters follow to develop the most advantageous strategic communication plan to support this combination (store & restaurant)? In other words, how could they create interest in this new phase of the company? Based on group’s class discussion, reading assignments, thinking homework and lectures, please explain the reason for your choices (why) and provide 2 academic and practical recommendations. Additionally, for your client to understand better what you are proposing, please provide 2 relevant examples that support your recommendations. Urban Outfitters, with its primary focus on a young demographic, can boost its appeal by embracing technology and creating a captivating social media presence that resonates with the trendy and fashionable tastes of young consumers. This approach aims to convince them into visiting physical stores and restaurants, steering away from the existing trend of online shopping. An illustrative local model for this strategy is Silver Grizzly Espresso, strategically positioned in downtown Longview. This establishment serves as a hub where a diverse clientele can unwind, be productive, and savor coffee, tea, or cookies. Silver Grizzly Espresso has leveraged its Instagram presence, boasting around 6,850 followers, to actively engage with customers. They consistently update their Instagram stories with customer experiences and share new products and promotions on their feed. The establishment also extends special discounts to LeTourneau University students, fostering a sense of belonging and customer loyalty. Due to their "cool" Instagram image and in-store experience, they have even incorporated merchandise to serve as a promotional tool. In tandem with this, enlisting influencers popular among this youthful demographic on platforms like Instagram and TikTok can yield parallel outcomes. Influencer marketing proves effective in building trust with consumers who have become increasingly skeptical of conventional brand marketing. A notable case in point is Adidas, which significantly benefited from this strategy by collaborating with influencers like Selena Gomez. This Urban Outfitters & Pizzeria Vetri 4 collaboration led to a remarkable 24.2% surge in sales, while rival Nike experienced a 9.1% decline. Furthermore, a direct approach targeting students from various educational levels, including high schools and universities such as the University of Pennsylvania and Drexel University, through brochures can serve as a powerful communication strategy. By offering promotions and discounts, which are highly appreciated by students, Urban Outfitters can make a substantial impact. The company could take this engagement further by introducing a new product line tailored to these educational institutions, incorporating their colors and names. This strategy mirrors how Barnes and Noble's promotions, discounts, and college-themed products resonate with students, making it a favored hangout for the local student community, alumni, and attracting international and exchange students. 3) Based on our class discussions in which planning scenarios and visualization is an important factor in strategy, draw (you can use shapes and arrows from Word’s INSERT (Shapes) to design. Please, give your recommendations to your clients as to the store design layout should look like when combining a clothes store and restaurant. You can also recommend an altogether different layout – sometimes is good to think outside the box. Think about how the design could be link to your optimal marketing strategy. Briefly, EXPLAIN your choice (why) of design layout. Use Word INSERT tab and choose the Shapes to design your store and customer flow. Urban Outfitters Entrance Pizzeria Urban Outfitters & Pizzeria Vetri 5 I would opt for this design for both the restaurant and the clothing store with a strategic mindset. My goal is to ensure that all our customers, regardless of their primary interest in either our clothing products or our food service, have the chance to explore and interact with our various products on both sides. Placing the primary entrance within the clothing store would compel our customers to enter the store first before accessing the restaurant. Hopefully, they’d be attracted by something on the way or would walk around the store while waiting for their food. Urban Outfitters & Pizzeria Vetri 6 References 9 brands who nailed Influencer Marketing and got amazing results. GRIN. (2022, February 9). Retrieved from https://grin.co/blog/brands-using-influencer-marketing/ Matthew, J. (2021, December 10). Understanding influencer marketing and why it is so effective. Forbes. Retrieved from https://www.forbes.com/sites/theyec/2018/07/30/understandinginfluencermarketing-and-why-it-is-so-effective/?sh=5bb6b41971a9 Sanders, R. (2021, July 22). 5 incredible examples of successful rebranding. Simplilearn.com. Retrieved from https://www.simplilearn.com/incredible-examples-of-successfulrebranding-article Urban Outfitters & Pizzeria Vetri 7 Footnotes 1 For APA reports, add footnotes manually on their own page following references. Do not use the Insert Footnotes method on the References tab as they will not be formatted correctly. For APA formatting requirements, it’s easier to type your own footnote references and notes. To format a footnote reference, select the number and then, on the Home tab, in the Styles gallery, click Footnote Reference. The body of a footnote, such as this example, uses the Normal text style. If you delete this sample footnote, don’t forget to delete its in-text reference at the end of the sample Heading 2 paragraph on the first page of body content in this template. Urban Outfitters & Pizzeria Vetri 8 Tables Table 1 Table Title Column Head Column Head Column Head Column Head Column Head Row Head 123 123 123 123 Row Head 456 456 456 456 Row Head 789 789 789 789 Row Head 123 123 123 123 Row Head 456 456 456 456 Row Head 789 789 789 789 Note: Place all tables for your paper in a tables section, following references and footnotes. Start a new page for each table, include a table number and table title for each, as shown. All explanatory text appears in a table note that follows the table, like this one. Use the Table/Figure style, available on the Home tab, in the Styles gallery, to get the spacing between table and note. Tables in APA format can use single or 1.5 line spacing. Include a heading for every row and column, even if the content seems obvious. A default table style has been set up for this template that fits APA guidelines. To insert a table, on the Insert tab, click Table. Urban Outfitters & Pizzeria Vetri 9 Figures Title Figure 1. Include all figures in their own section, following references, footnotes, and tables. Include a numbered caption for each figure. Use the Table/Figure style for easy spacing between figure and caption. For additional information on APA Style formatting, please consult the APA Style Manual, 7th Edition.
