Marketing Plan

Pier 1 imports

Domini LeNoir

MRKT620

Dr. Philip Strum

Summer 2014

Pier 1 imports

EXPLORE. EXPERIENCE. ENJOY.

O U R S P I R I T

T I M E L I N E

O U R W O R L D

T H E 3 E ’ S : E X P L O R E . E X P E R I E N C E . E N J O Y.

T H E 4 P S

S W O T

W E W A N T Y O U

… A N D Y O U !

S I M I L A R …

… B U T D I F F E R E N T

T H U S F A R

M O R E T O C O M E

R E L O C A T E

B U D G E T

R E F E R E N C E S

Agenda

Our Spirit

Mission

Pier 1 Imports offers distinct, casual home furnishings at a good value. Our ever-changing collections are presented in a sensory environment that encourages customers to have fun shopping for their homes.

Pier 1 is a socially conscious company that conducts business with personal and professional integrity. We employ committed, caring associates whose first priority is responding to the needs of our customers.

Timeline

1962

1970

1979

1988

1989

1996

2003

2012

Pier 1 imports First Store

$100 million Annual Sales

Pier 1 Preferred Card Established

120,000 Pier 1 Preferred Card

Customers

American Stock

Exchange

Design Concepts program developed

Opened 1000 store

Celebrated 50th Anniversary

Our World

2000 – 2006: The Big Change

From brick-and-mortar to technology and energy sourcing

Forced reinvention of brands, products, process

Closing of industry giants, including Linens n’ Things

2007 – 2008: The Great Recession

United States housing prices crash

2009 – 2012

Housing prices bottom out

Mass foreclosures = years to buy homes

2013 – Present

Emergence and competition from online furniture retailers

Superstores such as Target and Walmart, and off-price department stores such as Marshalls, Ross, and TJ Maxx become destinations for consumers seeking home furnishings

The Three E’s

Explore.

Join Pier 1 on a treasure hunt, rediscovering

coveted relics of personal charm and encountering new

objects that add magic and wonder to any living space, encompassing the

essence of YOU!

The Three E’s

Experience.

As YOU map your way through the labyrinth aisles of Pier 1 stores,

enjoy the sensory adventures of muted

lighting, scented candles, furnishings of

exotic colors and patterns, and unique

additions to YOUR home décor.

The Three E’s

Enjoy.

Whimsical fancies and nostalgic ideals are

realized through self-identified sacred objects, as YOU take home your

precious pot-of-gold, actualizing dreams long

forgotten and suppressed.

Product

Pier 1 offers an eclectic selection of home goods from

countries around the world

Place

Pier 1 has 1,072 brick-and-mortar stores in United States and

Canada, and supplies about 45 stores in Mexico

Vermont is the 50th state to join Pier 1 imports in the US as of July

2014

Pier 1’s e-commerce website successfully launched in 2012

Price

Pier 1’s prices are inline with competitors and Pier 1 sales promotions outpace competitors.

Prices in Pier 1 range from $10 and under for small gifts and accents, to $600+ for larger furniture sets.

Promotion

Pier 1 Rewards Card Earn 1 point for every $1 you spend at Pier 1 and get a $10 Reward for every 200 points Receive a special gift from Pier 1 on your Birthday Enjoy members-only offers, sneak peeks and special bonus

point events

College students receive a 15% discount with student ID

E-newsletters and mobile marketing

Pier 1 catalogue

Huge in-store sales and seasonal promotions up to 50% off

Strengths

Handcrafted products

Diverse selection of unique imported global items

Online customers have option of in-store pick-ups

Existing distribution networks are trusted and

established

Weaknesses

Product recalls

Low consumer in-store presence

Perception that products are high priced

No established brand identity in products

Less control over product quality from other countries

Opportunities

New products

Store remodeling

New target audience

Creating customer loyalty

Revival of housing market

Improved customer service

E-commerce platform: enhance and engage

Threats

Bad customer service

Narrow target audience

China’s rising labor costs

Uninformed consumer

Competitive home-furnishings market

We Want

From the June 20, 2014 Pier 1 imports Annual Report:

• Knowing that SHE increasingly shops through multiple channels, we have deployed a range of tools to engage HER, from initial browse, to purchase, to delivery.

Growing directly from our 1 Pier 1 initiative begun just a short time ago, these new services – particularly In-Home Delivery – ensure that SHE’S being offered the level of service SHE seeks.

And whether SHE shops with us in store or online, HER experience with Pier 1 Imports is seamless.

Her

…And YOU!

The goal of the new target markets will be to engage people in all stages of life.

In doing, we recognize YOU!

The Child

The Teen

The College Student

The Young Professional

The Adult

The DIY

The Lifer

The CHILD

Create a memory for YOUR child with a unique piece that will remain timeless!

The TEEN

Accent YOUR room and let YOUR personality shine!

The COLLEGE STUDENT

Enhance your dorm with a lil’ bit of home and a lil’ bit of YOU!

The YOUNG PROFESSIONAL

Embrace YOUR unique ideas with eclectic pieces!

The ADULT

Let YOUR home show who YOU are!

The DIY

Give YOUR space a taste of the exotic with pieces from around the world: All in one place!

The LIFER

YOU know who YOU are, now show it!

Competition

Williams-Sonoma

Pottery Barn

Bed, Bath and Beyond

Ikea

Similar

Home furnishings

Product pricing and quality

Revolving variety of merchandise

Customer service

Visual presentations

Pier 1 Competition

Diversity of items: specialty, unique, and global

One-stop-shop

Higher price point Smaller Store

Incorporates furnishings for all aspects and rooms of home

Lower price point

Larger store

…But Different

Thus Far

2012: Clicks over Bricks

Pier 1 spent $200 million remodeling and relocating stores with the idea that the in-store experience is where the consumer needs to be.

2013: In-Store Pick-Up

Offering in-store pickup from the new e-commerce site, Pier 1 has found a way to get the consumer in the door.

2014: Papasan Pedicabs

Embarking on a nationwide celebration, Pier 1 has outfitted pedicabs in Vermont and New York with their signature papasans. Using #Pier1RideInStyle, Pier 1 is generating a lot of buzz.

More to Come: Cause Marketing Event

Home for the Holiday

November - December

Premise:

Furnish homes for low-income family in need.

Work in tangent with local charities to pinpoint families in need, and provide linens and decoration to homeless shelters.

Have Pier 1 staff on hands to assist in distribution of products.

Rationale:

Giving back to the community by providing families in need with home supplies and homeless shelters with linens and décor will bring some positive, comfort, and relief to

their lives.

More to Come: New Target Audience

Discovering YOU August – September

Premise:

Engage the back to school college crowd with dorm décor through collaboration with local colleges, promotions, advertising.

Design Pier 1 store with creative college themed design to spark interests in students.

Market 15% student discount though social media, such as Instagram and Pinterest, promote discount at college orientations.

Rationale:

By engaging kids entering college, Pier 1 hopes to establish a new consumer base, and ultimately future loyal customers

More to Come: New Strategic Alliance

The Adventure’s Just Begun

May and August

Premise:

Partner with local high volume hotel chains to design themed hotel rooms.

Hotel room themes can be based on various countries or an eclectic mix of the exotic, redirecting consumers to the new Pier 1 experience of adventure and discovery.

Rationale:

Through the creation of themed hotel rooms, Pier 1 will engage consumers on a new level, bringing Pier 1 to the traveler.

This will also allow Pier 1 to establish new networks for product distribution: Pier 1 pillows, throws, mirrors, tables, etc… as a standard in hotel chain.

More to Come : New Product Lines

New Adventures

January - April

Premise:

Incorporate a broader selection of common home items (such as bathroom décor, niche home appliances, teas, coffees, and wines), while still encompassing the global

and unique theme that is Pier 1.

Rationale:

By including objects such as bathroom décor and niche home appliances, Pier 1 will be able to tap into some of the competitors market without loosing the Pier 1 essence.

Adding teas, coffees, and wines may prove an added bonus to some of the pre-established décor, which beckons relaxation.

If Pier 1 is able to find quirky, new and inventive products, they will be able to tap into a unmet market, who are searching for the exclusive, rare and exotic.

More to Come: New Specialized PR Program

Be a Part of the Adventure June - July

Premise:

Hosting in-store classes on home design, DIY workshops, and talks on products and acquisitions with experts from various fields of travel, décor, and cultures.

Provide some for the newly established teas, coffees, and wines.

Perhaps charge a fee, and provide a discounted coupon to attendees.

Rationale:

To create the community of Pier 1 by putting consumes (both target and unmet) in touch with Pier 1 products in new way.

This should establish Pier 1 as a destination beyond the product, but also with the

product as the focal point. Stories behind acquisitions will bring the cultural world of the products to life for the consumers.

More to Come: New Logo

Unlocking the Magic

Indefinitely

Premise:

To add an element of the hunt, the adventure, the discovery, which is the very essence of the Pier 1 adventure by changing the 1 in Pier 1 to a key.

Rationale:

The key will cement the essence of the Pier 1 brand without drastically changing the known logo.

With the addition of the key in the Pier 1 logo, consumers will automatically associate Pier 1 with the exotic, discovery, and adventure, establishing brand loyalty.

Relocate

Budget

Exacting budgets continue to be refined.

Costing details will be submitted and approved prior to formal program implementation.

New Logo

Pier imports

References

Clark, J. (2014, January 7). Pier 1 beating online retail threat and benefiting from a housing recovery. The College Investor. Retrieved from http://thecollegeinvestor.com/11143/pier-1-beating-online-retail-threat-benefiting-from-housing-recovery/

Currie, A. (2012). Retrieved from http://message-board.okckidsfirst.com/ProfessorJordan/read.php?44,1927,3323

Dishman, Lydia. (2012). Why Pier 1 is choosing bricks over clicks - - and winning. Forbes. Retrieved from http://www.forbes.com/sites/lydiadishman/2012/10/18/why-pier-1-is-choosing-bricks-over-clicks-and-winning/

Engel, C. (2011). Pier 1 Imports to invest $200 million in growth. Furniture/Today, 35(31), 62. Retrieved from http://www.ebscohost.com

Pier 1 Imports, Inc. SWOT Analysis. (2012). Pier 1 Imports, Inc. SWOT Analysis, 1-7. Retrieved from

http://www.ebscohost.com Schnurman, M. (2010). How Pier 1 Imports made a turnaround. Dmagazine. Retrieved from

http://www.dmagazine.com/publications/d-ceo/2010/september/pier-1-imports-turnaround

(2013). SWOT matrix for Pier 1 Imports Inc. company in United States. BusinessPlanInternational.com. Retrieved from http://swot.businessplaninternational.com/companies-swot-analysis/90604-swot-analysis-pier-1-imports-inc-in-united-states.html