Marketing Strategy
Per Ansoff’s Strategic Opportunity Matrix, Williams-Sonoma relies on market penetration. The company appears to have a stable range of promoted products that are mainly aimed at existing clients. Prior research shows that Williams-Sonoma utilizes data analytics efficiently, applying it to the history of users’ searches and purchases on its affiliated websites. Then, promotional offers are customized for the clientele, keeping them relevant to the existing audience.
Segmenting and Targeting
Three possible target segments for Williams-Sonoma are (from higher to lower priority):
- Middle-class adults aged 35-50 who own their own houses or apartments. These people value the quality and usability of their homeware, willing to spend good money on it. They have developed careers, which provide them with a higher share of disposable income, as well. This target group is promising in terms of lifetime value because of their purchasing power and the habit of visiting homeware stores (both physically and online).
- Work-from-home parents are aged 25-40 with higher-than-average incomes. These people spend much time at home, which fuels their desire to surround themselves with high-end homeware. Parenting is also a major contributor, as the quality of the products is valued, being associated with the safety of the child. The potential of this segment lies in its size, as the number of people working from home has seen an increase in the fallout of the pandemic.
- Young adults aged 21-30 with an average income or higher and a broad social circle. These people are extroverted and sociable, hosting a range of social events at their homes. In order to create a better image of their lifestyle and impress their acquaintances, they are willing to spend more money on house and kitchen products. This idea reflects the potential of the segment, as such clients are better susceptible to marketing tools.
Positioning
- For the clients who value their comfort
- Who struggle with finding safe solutions for their homes and kitchens
- We are a houseware retailer
- Offering high-end products that make the house safer, cozier, and more comfortable
- Unlike mass-market companies
- We have a selection of reliable products that improve the quality of customers’ lives at a great value.
Product
Today, Williams-Sonoma offers a wide variety of kitchenware, from utensils to electronics. The company will benefit from introducing a new collection of holiday-themed dinnerware devoted to Christmas, Halloween, and Thanksgiving. The existing clientele, certain of the brand’s quality, will be willing to purchase such collections to impress their guests during celebrations and support the holiday spirit. Even though such dinnerware will be used a few times per year, customers will want to purchase such unique, high-end items that assert their status.
Place
Williams-Sonoma relies on a multi-channel framework of distribution that has proved useful in the age of the pandemic. Traditionally, the company has maintained a brick-and-mortar presence which has been heavily supported by e-commerce activities since the 2010s. William-Sonoma’s website and mobile application are fully functional, providing their users with access to the company’s catalog and special offers. As the pandemic persists, a stronger emphasis is needed on digital distribution in light of the overall uncertainty and restrictions in the case of physical interaction. COVID-19 has taught clients to use e-commerce to its full potential, meaning that the audience of this distribution format has been rapidly increasing.
Promotion
Advertising: continue to use a higher share of digital advertising – with a global paradigm shift toward e-commerce, digital marketing is more promising for the company.
Personal Selling: not use – in light of the pandemic, personal interaction is complicated, whereas customers learn the benefits of remote communication and e-commerce.
Public Relations: continue to use – in the 21st century, effective PR helps to build a positive image of Williams-Sonoma as a stable company that respects global values (equality, sustainability, transparency).
Sales Promotion: continue to use – as WS is a high-end company with higher-than-average prices, short-term sales promotions help it expand the customer network by attracting hesitant buyers.
Direct Marketing: continue to use data analytics – WS’s personalized offers using big data showed their effectiveness, and this format is promising in the age of data-driven business.
Price
Williams-Sonoma relies on premium pricing, as its rates are higher than the sector’s average figures, backed by its quality and reputation. It positions itself as a high-end brand, and the prices serve to underline the superior quality of the product.