Famous Footwear 2012 Annual Report Download - page 13

2012 BROWN SHOE COMPANY, INC. FORM 10-K 11
Marketing
We continue to build on the recognition of our wholesale brands to create dierentiation and consumer loyalty. Marketing
teams are responsible for the development and implementation of marketing programs for each brand, both for us and
for our retail partners. In 2012, we spent approximately $21.5 million in advertising and marketing support, including
public relations, tradeshows, consumer media advertising, production, cooperative advertising, advertising agencies and
digital advertising with our wholesale customers. The marketing teams are also responsible for driving the development
of branding and content for our brand websites. We continually focus on enhancing the eectiveness of these marketing
eorts through market research, product development and marketing communications that collectively address the
ever-changing lives and needs of our consumers. In 2012, the marketing teams were instrumental in the development and
execution of new product launches, including target consumer identification, branding, positioning and marketing to both
the consumer and trade audiences. We intend to continue the growth of our social media presence as we believe increasing
our focus on social media will help drive us into the next generation of marketing, allowing us to connect even more
intimately with consumers.
Portfolio of Brands
Wholesale Operations oers retailers a portfolio of leading brands from our healthy living and contemporary fashion
platforms. The following is a listing of our principal brands and licensed products:
Healthy Living
Naturalizer: Introduced in 1927, Naturalizer has become a global family of comfort lifestyle footwear brands meeting the
needs of women across the marketplace with uncompromising comfort, fit and style. Our flagship Naturalizer brand is sold
primarily at Naturalizer retail stores, national chains, department stores, online retailers, catalog retailers and independent
retailers. The brand is distributed in 60 countries around the world. Suggested retail price points range from $69 for shoes to
$199 for boots. Naturalizer held the No. 2 market share position in the moderate zone within the women’s fashion footwear
category across NPD tracked point-of-sale channels at the end of 2012, according to The NPD Group/Retail Tracking
Service. Natural Soul by Naturalizer provides women with uncompromising value and is sold primarily in national chains, our
Naturalizer outlet stores and Famous Footwear retail stores. The brand held the No. 6 market share position in the moderate
zone within the women’s fashion footwear category across NPD tracked point-of-sale channels at the end of 2012, according
to The NPD Group/Retail Tracking Service. Suggested retail price points range from $69 for shoes to $109 for boots.
Dr. Scholl’s Shoes: Dr. Scholl’s Shoes is an authentic brand of innovative footwear designed with uncomplicated, playful style
for a healthier life. Dr. Scholl’s Shoes delivers proprietary comfort technology across all distribution tiers. Dr. Scholl’s Shoes
crafts unique styles that oer men and women the freedom to live active lives of discovery and play with ease; inspires them
with designs that express their youthful spirit; and champions an optimistic lifestyle of relaxed confidence and spontaneity.
This footwear reaches consumers at a wide range of distribution channels: mass merchandisers, national chains, on-line and
catalogs, specialty and independent retailers and department stores and our Famous Footwear retail stores. Suggested price
points range from $25 to $150. Dr. Scholl’s Shoes held the No. 8 market share position in the comfort zone within the women’s
fashion footwear category across NPD tracked point-of-sale channels (defined as department stores, national chains, athletic
specialty/sporting goods and shoe chains) at the end of 2012, according to The NPD Group/Retail Tracking Service. We have
a long-term license agreement with MSD Consumer Care, Inc. (formerly Schering-Plough Healthcare Products, Inc.) to sell
Dr. Scholl’s Shoes, which is renewable through 2026 for the United States and Canada and 2014 for Latin America.
LifeStride: For more than 70 years, LifeStride has created quality footwear for women who value style and comfort. Oering
work-to-weekend styles, LifeStride is both versatile and comfortable for all-day wear. LifeStride’s rich history and attention
to comfort create delight at first sight with trend-right styling, feminine, details and great value. With the introduction of
SoftSystem® comfort technology, LifeStride oers comfortable, work-to-weekend footwear that dresses up or down at
the right value. The brand is sold in department stores, national chains, on-line and our Famous Footwear retail stores.
Suggested retail price points range from $50 to $100. LifeStride ranked No. 3 in market share position in the moderate zone
within the women’s fashion footwear category across NPD tracked point-of-sale channels at the end of 2012, according to
The NPD Group/Retail Tracking Service.
Avia: Avia is a sports enthusiast and fitness brand oering shoes for serious and recreational athletes. The brand is primarily
distributed through national chains, mass merchandisers and our Famous Footwear retail stores at retail price points from
$50 to $110. The brand held the No. 15 market share position in the athletic zone within the women’s footwear category
across NPD tracked point-of-sale channels at the end of 2012, according to The NPD Group/Retail Tracking Service.
Ryka: Ryka is a women’s performance lifestyle brand focused on fitness. Ryka is managed, designed and solely dedicated
to creating women’s performance footwear. The brand is distributed through department stores, specialty retailers and our
Famous Footwear retail stores at retail price points from $45 to $85.
Nevados: Nevados is focused on satisfying the needs of men and women outdoor enthusiasts. The brand is primarily
distributed through national chains and mass merchandisers at retail price points from $35 to $90.