Why Men's Wearhouse is Ditching Branded Ads and Going for Promotion Gold
Looking at the recession as the new normal, Men's Wearhouse (MW) is tailoring its retail strategy to keep customers spending -- and coming back. Managers looking for continued growth in your markets, take note.
The men's clothier is getting rid of its well-known branding ad campaign (think grey-bearded chairman George Zimmer extolling the virtues of quality and price, "I guarantee it") in favor of "time-sensitive price promotions" to continue increasing market share.
Labor Day's buy-one-get-one-free ads resulted in "the single largest volume day in the history of the company," according to Men's Wearhouse president Doug Ewert, during the company's second quarter earnings call. Going forward, the company's going to invest in TV ads that tout special pricing and deals to nudge that 2 percent increase for the quarter a little higher.
But Men's Wearhouse isn't sacrificing service. That's in spite of the prevailing sentiment that service has fallen far behind value in customers' minds according to AlixPartners Consumer Sentiment Index study. Walk into a Men's Wearhouse a sales person practically meets you at the door. Many stores have a battery of knowledgeable staff to discuss cuts and colors and suggest appropriate tie and shirt combinations â€" just like at major department stores. The chain also has tailors on site.
Alongside this, Men's Wearhouse is continuing its tactic to provide value especially in its opening-price-point suits (around $200), with better tailoring, styling and fabric. The assortment features plenty of European cuts (very smart as guys jump on the slimmer 60s-style silhouettes showcased on Bravo TV's Mad Men) and upscale labels (without the uppity prices) such as Calvin Klein, Ralph Lauren, and Joseph Abboud.
It smart move considering that many clothing retailers are trimming staff and the quality of their goods in order to keep pace with value hunters. And there are a plethora of those. Between the uptick in unemployment and the lingering effects of business casual, John Challenger, CEO of the Challenger Gray & Christmas outplacement firm, sees a return to dressing up as a necessity. "Job seekers wanting to dress up for interviews don't have anything in their closet that fits or is in fashion. So, they are heading out to restock their suit collections. Places like Men's Warehouse that offer good value are going to do better than high-end retailers selling $1,000 suits."
With a nimble adjustment in strategy -- in response to its latest Labor Day hit -- Men's Wearhouse is developing a sound and flexible marketing strategy for the times.