david's bridal - case study

David’s Bridal Case Study

Professor Byrnes

BUS 467, Section 2

March 26, 2015

Lee, Miller, and Stephenson 1

David’s Bridal Case Analysis

Introduction

In 1950, David Reisberg launched David’s Bridal in Fort Lauderdale, Florida. Reisberg was

focused on helping brides find the perfect bridal gown at an affordable price by having one of the largest

assortments of bridal gowns and bridesmaid dresses anywhere. David’s Bridal is the largest bridal chain

in the United States with more than 300 stores located in 45 states as well as Canada and Puerto Rico. As

brand managers, our job is to carefully select the best option for David's Bridal to implement that will

result in increased sales and market share. Thus, we decided that David’s Bridal needs to alter and

reevaluate their marketing strategies, segmentation, targeting, and positioning to a younger generations of

brides who shop and purchase differently than previous generations.

Objectives

As a company facing the economic pressures to continue providing high-quality bridal gowns at

an appropriate price, David's Bridal must decide between various options as to how to increase its sales,

market share, and consumer base. Over the next year, David's Bridal should focus on obtaining the

interest of women aged 25-34. The company should also revamp its advertising campaigns through

targeting that brings them the highest ROI such as the internet/social media, magazines, and catalogs

(Figure 1). The short-term objectives with an email test program were to increase revenue and

profitability via a more effective media plan and also to align media channels with the emerging habits

and practices of new brides. As a long-term goal, David’s Bridal should strive to regain its sales to the

way they were before the economic recession.

Problems

David's Bridal faced several problems as a result of the economic recession. CEO David Huth was

concerned about the future growth of his company despite the success in sales as of 2011. His customer’s

culture was changing because people were waiting longer to get married and each year the number of

weddings occurring was decreasing. On average, once the bride turned 27 and the groom 29, they were

ready to get married so the wedding industry was down 16% in 2011. Couples were opting for simpler,


less formal weddings, which resulted in smaller guest lists, wedding parties, and ultimately, less spending

in comparison to couples in the past.

Options

To begin with, David's Bridal first options are to increase brand recognition and product design.

The company should also have its retailers use social media, referrals, marketing, and new technologies

before and after weddings due to its 100% customer turnover. Due to the fact that there was an economic

recession, David’s Bridal should shift to a strategy based on “where the consumer connects” and adjust to

capture the buying power of a new generation of brides. Second, the company should develop a new

approach that would resonate with the upcoming bridal generation and effectively market to the 25-34 age

range because that is where the bulk of its consumers are.

Environment Analysis

Company

When the company first started in 1950, the bridal salon served the needs of local brides with an

assortment of affordable gowns. The salon did well regionally and Phillip Youtie purchased it in 1972

with a vision to expand the David's Bridal name. Thus, from 1973 to 1988 he opened up 17 additional

salons that were leased as bridal boutiques in department stores under the David's Bridal banner. Now in

2011, David's Bridal was owned by a private equity firm called Leonard Green & Partners. Prior to that,

David's Bridal had been owned by Macy's Department Stores, but then was sold off and established as a

partner and bridal registry program with Kohl's in 2005. Moreover, of all brides searching a gown, 50%

visited a David's Bridal and 33% purchased a gown at one. A typical store offers more than 2,500 off-the-

rack gowns ranging in size from 2 to 26. The store environment was basic with minimal decor and a

concrete floor. In addition, no returns were accepted, but the benefit to customers of this "warehouse"

approach was that the dresses were sold for 60% less than they were in a typical bridal salon.

Customers

In 2011, there was a new generation of brides who were more accustomed to digital media, online

shopping, social networks, blogs, and mobile applications. Bridal parties were dancing down the aisle,


creating viral YouTube videos, and tweeting on their smartphones. Due to the recession, brides were

spending less money on flowers and decorations, gifts and favors, and entertainment, but were still

choosing to spend the most on their wedding dress. In addition, couples were looking for low-cost options

to personalize their weddings through unique experiences. Lastly, most brides who had purchased her

wedding dress at David's Bridal were more likely to purchase their bridesmaids' dresses there too.

Competition

When analyzing the most common use of online wedding/bridal sites, five competitors came out

on top from 2009-2011. TheKnot.com, TheWeddingChannel.com, WeddingWire.com, and Brides.com

were David's Bridal main competition. Among retail-only sites, David's Bridal did have the greatest

traffic, but was still second to TheKnot.com (Figure 2). Furthermore, with an estimation of over 10,000

"mom-and-pop" businesses servicing its local communities, David's Bridal was facing intense

competition in the attire and accessories industry. Its national competitors were large department stores

such as Saks Fifth Avenue, Nordstrom's, Dillard's, and J.C. Penney. The only significant specialty bridal

boutique was Alfred Angelo, but it was smaller and declining in market share.

Channels

David's Bridal chose to have a dual path for distribution operations with a 192,000 square foot

facility in Bristol, Pennsylvania and a 174,000 square foot warehouse in Conshohocken. The Bristol

facility distributes all flat merchandise, including the bridal gowns. The company then turned to St. Onge,

a supply chain and engineering consulting firm that assisted David's Bridal with the transitions. On an

average workday, these two warehouses can ship anywhere from 10,000 to 27,000 units to retailers via

UPS.2 In addition, in Bristol, EuroSort provided a revolutionary sortation solution that allowed flat

merchandise to bottom drop at high speeds. Lastly, after partnering with Manhattan Associate, David's

Bridal was provided with two breakthrough solutions: a warehouse management system (WMS) and a

distributed order management system (DOM). Through its partnerships, David's Bridal improved its

monthly on-time deliveries, cycle time, direct labor costs, and overall logistics costs, which resulted in a

4% increase in annual revenue.3


Constraints

In addition to the problems David's Bridal was facing, there were more societal and economic

constraints. Weddings are typically not repeat events, so every year there was 100% customer turnover.

Additionally, more couples were prolonging marriage due to other alternatives on the rise such as

cohabitation, birth control, general acceptance of premarital sex, and access to assisted reproductive

technology. Furthermore, the overarching challenge of the company was to generate profitable growth

within a relatively flat industry. To complicate the matter, the target consumers and the media vehicles

used to reach those consumers were changing at rapid rates; making data analysis extremely difficult.

Lastly, the company lacked a distribution center so supply chain costs rose as gowns were inefficiently

shipped directly to the stores. This resulted in excess inventory distributed inconsistently across the chain.

Potential Target Markets

Generation X

Members of Generation X were born between 1965 and 1981 and tend to embrace tradition,

consistency, and balance. In addition, these members place a strong emphasis on family and work-life

balance as they are responsible for caring for both their parents and children. We want to focus on the

younger members of this generation who are around 30, since most of the older members are already

married. The reasonable prices of David’s Bridal are beneficial to these members because at this age, the

bride and groom will probably have to pay for the majority or all of the wedding. Since these members

value their time and work-life balance, David’s Bridal’s fast shopping experience and ability to take home

the gown on the same day is appealing to them.

Generation Y

Millennials were born between 1982 and 1990 and will be our main target as they are

approaching the primary ages of marriage. On average, millennial couples pay for 60% of their wedding,

so the price ranges of David’s Bridal will be appropriate for a bride looking for a gown under $1,000

(Table 4). This segment is used to experiencing high levels of individual recognition for participation in

team-oriented sports when they were younger. Therefore, millennials value higher levels of feedback and


interaction. David’s Bridal’s consultants will provide valuable advice and support to the bride by acting as

part therapist, part advisor, and part best friend. In addition, bridal consultants will assist brides by

knowing information about all of David’s Bridal’s merchandise and knowing how to coordinate a dress

with the accessories they offer.

Generation Z

Members of the “Net Generation” were born between 1990 and 2000. We will focus on the older

members of this group because they are approaching adulthood or are ready for marriage. We are also

targeting the older members because the younger members may not yet be considering marriage at this

stage of their life. This generation is highly connected and has never experienced life before the Internet,

texting, cell phones, or social media. They will be interested in shopping online, through the David’s

Bridal website, email campaigns, digital media, or podcasts. Most of all, this digital generation will

appreciate the unique interactive tool, “Dress Your Wedding,” which enables brides to virtually try on

outfits for members of their wedding party. The brides can also enjoy post-product reviews and 360°

photography of the gowns in motion available on their site.

Marketing Program

After discussing the 3Cs, we can focus on the 4Ps of David’s Bridal, which consist of product,

price, promotion, and place. David’s Bridal needs to establish its brand in the minds of a new generation

of brides, which means the company should alter its strategy and 4Ps.

Product

David’s Bridal is a highly recognizable brand for finding the perfect gown at a great value. Not

only does the company carry a wide selection of bridal and bridesmaids’ gowns, but it also carries a large

selection of accessories such as veils, gloves, and shoes to ensure the bride has everything she needs for

her big day, which makes this P one of the most important ones. Overall, David’s Bridal should continue

providing a variety of products with excellent quality to attract its target market.

Price

David's Bridal wants to focus on helping brides find the perfect gown at an affordable price.


The gowns range in price from $99 to $1,500 with a concentration of gowns under $600. David’s Bridal

offers an extensive product line ranging from gowns to shoes to accessories in order to give brides any

and everything they need to make their wedding perfect. In addition, almost 75% of customers purchase a

gown less than $1,000 (Table 4). With that being said, David’s Bridal should focus on targeting those

consumers that will purchase a gown priced under $1,000. Consequently, the company should maintain

its prices since it offers a wide price range of products.

Promotion

David’s Bridal not only uses its products and price to catch its consumers’ attention, but also uses

a variety of promotional advertisements to capture the hearts of its target audience. One interesting

promotional advertisement David’s Bridal conducted was an e-mail test program. The company chose this

program because it was aligned with the way younger generations received information and it appeared to

have a stronger ROI in comparison to broadcast or print promotions. The email test program resulted in

higher open rates, click-through rates, buy rates, and spend per buy (Figure 2). Additionally, David’s

Bridal also uses creative promotional advertisements through catalogs and magazines (see Appendix A).

However, instead of focusing on catalogs and magazines, the company should focus more on direct mail,

email campaigns, and social media sites. Through these digital vehicles, it will be easier to reach potential

customers in the younger generation brackets. More importantly, David’s Bridal advertisements seem to

capture the hearts and minds of its consumers.

Place

David’s Bridal is the largest bridal chain in the U.S. with more than 300 stores in 45 states. In

addition, the retail stores should be placed in big cities and urban areas to reach its target customers. By

ensuring the stores are placed in the right market, David's Bridal is able to compete with its competitors,

which consist of department stores as well as specialty bridal boutiques. Furthermore, David’s Bridal has

obtained high levels of brand recognition as the best place to find the perfect gown at a great value.

Overall, with David’s Bridal product, price, promotion, and placement strategy, the brand will always be

known for its assortment of affordable products in the wedding industry.


Conclusion

As brand managers, a solution that we recommend David’s Bridal should implement is to focus

specifically on marketing to consumers that are willing to spend $1,000 or less. We believe this would

make the company most profitable because it targets 75% of the bridal market (Table 4). By focusing on

the right positioning, the sales of bridal gowns and bridesmaids dresses should increase with the proper

marketing. In addition, by providing a SWOT analysis, we can see the areas where David’s Bridal needs

to improve, which includes maintaining its strengths, addressing its weaknesses, accomplishing its

opportunities, and diminishing its threats. The only question is whether or not David’s Bridal can

implement a marketing strategy that will best correlate with their STP model and SWOT analysis (see

Appendix A). Incorporating a STP strategy and following the recommendations from our SWOT analysis

will increase the company’s market share and result in higher future profits.


Appendix A


David’s Bridal STP Model

Segmentation David’s Bridal two segments are Generation Y/Z, aged 25-34, who are looking for

less expensive bridal gowns that are less than $1,000

The other segment is for Generation X, aged 35-44, who are looking for more

expensive or higher-quality gowns over $1,000

Targeting Women, 25-34 year olds who are looking for bridal gowns and bridesmaid dresses

Positioning Consumers looking for high quality wedding attire and accessories for a reasonable price of less than $1,000

David’s Bridal SWOT Analysis4

Strengths Opportunities

● Reasonably priced bridal and bridesmaids’

gowns

● Largest bridal chain in the U.S.

● High level brand recognition

● Wide selection of gowns and accessories

● Expand groom and groomsmen attire by

targeting men

● Move stores into large shopping centers

● Add more gowns below $1,000 to match today’s

economic pressures

Weaknesses Threats

● High competition from department stores

such as Saks Fifth Avenue, Nordstrom’s,

Dillard’s, and J.C. Penney because they all

offer bridal gift registry services

● The company is currently only in U.S.,

Canada, and Puerto Rico so it needs to

expand into other international countries

● Not every piece can be bought online

● More small local bridal boutiques/mom-and-pop

stores are opening

● Consumers may think David’s Bridal is only for

brides/bridesmaids, but the company also offer

tuxedos for grooms and groomsmen and prom

gowns for younger consumers

● The website is only in English and Spanish while

other bridal sites are in multiple languages


Appendix B

● Who is in the decision making unit (DMU) for a wedding dress purchase? What are their

respective roles?

The bride is part of the decision making unit as well as the relatives and future relatives of the

bride. The bride has the final say when it comes to what style she likes, but her mother or whoever is

contributing to paying for the dress may also influence her decision due to budget constraints. The future

relatives of the bride may have some influence by giving their input as to what dresses look good. The

bride’s decision may also be influenced by the opinions of her friends or bridesmaids.

● What is the structure of a typical wedding dress purchase process? What are the critical

communication touch points during this process?

The typical wedding dress purchase process begins with brides browsing through magazines,

catalogs, and websites. Through their search, brides get a sense of their preferred style and choose bridal

salons that carry styles that match their taste. Next, brides call and make an appointment at a bridal salon

and go to the salon and tell the bridal consultants what attributes they are looking for in a dress. The

bridal consultants help the brides find dresses that match their requests, help the brides try on the dresses,

and provide advice. After the bride chooses her dress, she is then able to order the dress or purchase her

dress in store that day.

Initially, the brides are able to receive information about what bridal salons and dresses are available

to them through email campaigns, direct mail, bridal shows, trunk shows, magazines, catalogs, and social

media sites such as Pinterest and Instagram. Once the brides goes for an appointment, the consultants are

the main critical communication touch points for informing brides of what dresses are currently available.

● Given the results of the e-mail test study, what are the implications for the continued

success of DB’s electronic marketing communications program?

David's Bridal wanted to continue the email program because it led them to a strong ROI, a greater

promise for returns, more alignment with the way the new generation wanted information, and it was

more efficient than broadcast or print. There was more efficiency because the consumers could access the


information when and wherever they wanted. The email program also led to more engagement with

consumers, higher click through rates, and developed credibility with customers.

● What other parts of the marketing mix need to be altered for DB to maintain its market

leader position given its current/future customer base and industry environment?

For David’s Bridal to maintain its market leader position, the company needs to change the focus of

its promotions. Instead of concentrating on catalogs and magazines, there needs to be more emphasis on

the company website, online advertising, email campaigns, social media, and smartphone applications.

Through these digital vehicles, it will be easier to access potential customers that are "on the go."

As for place, David’s Bridal salons are not located in convenient locations. More salons need to be

placed in higher populated or growing cities, where many of their potential target customers can easily

access the store. Although, there are 315 David’s Bridal salons, the way that the salons are placed leaves

only one salon to serve a very wide area; requiring some customers to drive up to 45 minutes. Instead,

there needs to be more salons in malls because malls are typically in good locations that can serve a large

population of consumers. In addition, it is easier for women to shop in malls because there are more

resources available to them. If a woman cannot find what she was originally looking for in the store she

was just in, then she can go into the next store she wants.


Works Cited

1"David's Bridal: A Proposal for a New Generation." Darden Business Publishing: University of Virginia

(2014), 1-23. Print.

2Cole, Michael D. "David's Bridal: a Supply Chain Delivering on Dreams." Apparel. Edgell

Communications, 6 Nov. 2008. Web. 24 Mar. 2015.

3"David's Bridal." Manhattan Associates. Manhattan Associates, 29 Feb. 2012. Web. 24 Mar. 2015.

4Armstrong, Rebecca. "David's Bridal SWOT." Weebly. N.p., May 2012. Web. 24 Mar. 2015.

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