MGMT 580 001: Marketing

Professor Connie Porter

Case Study #4 – Team 7
 

EILEEN FISHER:
Repositioning the Brand
EXECUTIVE SUMMARY: While EILEEN FISHER has a strong brand identity, there is a gap between the firm’s
intended identity and the customer perceived brand image. The extent of the gap depends on which
market segment is being analyzed, but there is a gap nonetheless. On measures of brand equity, EILEEN
FISHER’s equity is quite healthy in the Established Woman segment, but needs bolstering in the Emerging
and Nascent Woman segments. Looking at brand value before and after repositioning, the value is slightly
increasing, but there are risks associated with repositioning that must be addressed for the value to
continue to increase. These risks include alienation of loyal customers, brand dilution, new target risk, and
channel distribution risk. The benefits of repositioning include shifting brand associations, increasing market
share, and extending the profitability timeline.

“On our honor, we have neither given nor received any unauthorized aid on this paper.” – Team 7
QUESTION 1A: BRAND IDENTITY
Since the inception of the firm, the brand identity and foundation of EILEEN FISHER has been set in the
cultural values of inspiring creativity, instilling confidence, and cultivating connection (p. 4). The firm’s
brand identity has always been to use designing and selling clothing as a vehicle to understand and
connect with women while empowering them and advocating social consciousness.
The principles that frame the brand identity of EILEEN FISHER include:
● Simple Design Philosophy - designing timeless pieces that were flattering for women regardless
of their body type
● Social Ethics - making supply chain decisions based on moral business practices and human
rights
● Corporate Responsibility - creating a company culture that both inspired and encouraged
creativity while remaining fully committed to each individual’s overall well-being
● Advancement of Women - encouraging female entrepreneurship through the annual issuance of
grants to businesses that embody EILEEN FISHER’s social and cultural values.

QUESTION 1B: BRAND IMAGE

The EILEEN FISHER brand identity is clearly defined. However, the brand image perceptions and
associations vary across the three consumer segments. For consumers within the Emerging Woman and
Nascent Woman segments, the brand associations are mostly negative. They view the brand as
appealing mostly to expecting mothers and grandmothers; women who are looking for comfort more
than style. They describe EILEEN FISHER clothing as “expensive,” “not flattering,” and “unattractive”
(Exhibit 5). They also have very little or no awareness of the brand’s social values and environmental
consciousness.
The Established Woman belongs to the generation most commonly referred to as the baby boomer
generation; women born between 1946 and 1964 that maintain a youthful, active outlook and lifestyle.
Among this segment of consumers, brand associations of tradition, comfort, and accomplishment
abound. Women say that, “EILEEN FISHER is for people like me.” However, there is room for
improvement here as well, as women are “craving more structured pieces and a more fitted silhouette.”
Like the Emerging and Nascent Woman segments, Established women are equally uninformed about
the brand’s social values and environmental consciousness. Ultimately the brand image exists on a
spectrum, ranging from a brand that exudes simplicity and functionality to a brand that embodies
shapelessness and seniority.
The gap between the brand image and the brand identity outlined above must be bridged in the
repositioning process in order for the brand broadening to be effective. EILEEN FISHER’s management
can do this by improving brand associations, recognizing the potential risks of repositioning, and
mitigating those risks through Product, Price, Place, and Promotion.

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QUESTION 2A: BRAND HEALTH
The health of EILEEN FISHER’s brand equity among the Established Woman segment is healthy,
especially in the measures of loyalty, price premium, perceived quality and value, and market behavior.
On the measures of leadership and organizational awareness, brand health is wavering. Among the
Emergent and Nascent Woman however, across all measures, brand health is poor. Looking several
years into the future, if a repositioning strategy is to be effective, brand equity must improve in all
measures, particularly in the Emerging Woman segment.

Loyalty - Price Premium and Customer Satisfaction

Among the Established Woman segment, loyalty to the EILEEN FISHER brand is healthy. Aaker
describes price premium as the best metric for brand equity since it should be sensitive to any other
driver of brand equity. In the case of EILEEN FISHER, there is a high, positive price premium. This is
evidenced by EILEEN FISHER’s high rate of sell-through in department stores—the percentage of
products sold at full-price. EILEEN FISHER’s loyal customers are willing to pay full price for her clothing,
demonstrating strong brand equity on the loyalty measure. In fact, many of the salespeople were EILEEN
FISHER customers before they became employees. Additionally, EILEEN FISHER’s e-commerce website
and web traffic outperformed national averages, demonstrating a willingness on the part of consumers
to seek out the brand’s products.

Perceived Quality and Leadership

Among the Established Woman segment, EILEEN FISHER is a leader in quality, performance, and
consistency. The brand is considered to be a “bridge line”—a line of clothing that occupies market space
just below that from high-end designers like Armani and Prada. Bridge lines peaked in popularity in the
early 2000s, and while many declined, EILEEN FISHER’s sales continued to grow. From 2000 to 2008,
their sales grew 151% (Exhibit 2). Despite this healthy growth, there were still some concerns regarding
perceived quality in the Established Woman segment. For example, in individual interviews, core
customers cited a desire for more edginess and interest in other brands (pg. 7). Emerging and Nascent
Woman’s perception of quality is less relevant since they perceived the brand to be not for them,
precluding them from purchasing.
EILEEN FISHER’s most innovative practices are those that revolve around a socially and environmentally
sustainable business process. It is committed to the advancement of women, donating grants to women-
owned businesses that embodied the shared values of social consciousness, sustainability, and
innovation (page 5). EILEEN FISHER also has a profound commitment to its employees, distributing 30%
of pre-tax profit as bonuses, and issuing 31% of shares to her employees. These practices could
contribute positively to brand equity, yet consumer awareness of this innovation is vague and uncertain
(Exhibit 5).

Associations / Differentiations: Perceived Value, Brand Personality, and Organizational Awareness

The EILEEN FISHER brand-as-product is healthy in the Established Woman segment. It provides this
segment the functional benefit of elegantly simple clothes that flatter their changing bodies at a price
point they are willing to pay (Exhibit 5). They perceive the value, the benefits they are receiving, to be
worth the money. However, the perceived value is lacking in the Emerging and Nascent segments. They
are unwilling to pay the price premium for a brand that they feel does not understand them or produce
products that they want.

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The EILEEN FISHER brand-as-personality is well established. It is “beautifully simple clothing that moves
with real life” (Exhibit 1)--the Established Woman segment responds to this personality since it aligns with
their lifestyle profile. There is a shared emphasis on traditional aesthetic and a shared appreciation for
simplicity and authenticity. This personality however, does not align with an eclectic image, a concern for
Emerging and Nascent women. The brand personality is mostly healthy in the Established Woman
segment, but as they grow and exit the market, the personality will become a source of weakness for
brand equity if it is not modified to represent the new era of Established Women.
The EILEEN FISHER brand-as-organization has allowed them to develop an extremely loyal customer
base in the Established Woman segment. These women trust this organization so much that most
EILEEN FISHER salespeople were customers first. While the organization is successful in establishing
their identity in terms of their products, they have been less successful in establishing their identity as a
socially responsible company. Even amongst its most loyal customers, “many have only had a vague
awareness of the social and environmental initiatives that the brand supports” (Exhibit 5).

Brand Awareness
EILEEN FISHER maintains a healthy brand awareness, but that awareness is connected, in most
consumer’s minds, to the Established Woman lifestyle. Therefore, while vaguely aware of the brand,
Emerging and Nascent Woman do not consider the brand to be a brand they would use. This is
evidenced by Eileen Fisher’s 16-year-old daughter not wanting to wear the clothing, and her son’s
friends’ perception that the clothing was for their grandmothers (page 7).

Market Share
Since the company started, EILEEN FISHER has enjoyed continued growth (Exhibit 2), powered by its
hold on Established Woman and unwavering commitment to its core values and capabilities.
Department store distribution channels’ enthusiasm in carrying the brand also contributed to the brand’s
favorable market share amongst Established Woman. However, the price point is too high to appeal to
Emerging Woman, who were more likely to be saving money for mortgages and children’s education,
and Nascent Woman, who were more likely to be bargain shoppers.

QUESTION 2B: BRAND VALUE

All things considered, the value of the EILEEN FISHER brand is increasing. Brand value is defined as the
benefits associated with the brand, less the cost of purchasing and owning the brand. It’s important to
note that the “benefits” are perceived, because it is the consumer’s perception of EILEEN FISHER and the
firm’s products that determine value. The most significant driver of the perceived value is the firm’s
brand equity. When assessed before and after repositioning, brand equity is slightly higher after
repositioning, particularly with the Emerging Woman segment. Their brand associations have slightly
improved, improving brand equity overall. This slight improvement implies an increase in brand value.
That being said, the brand has reached a critical moment and will only be able to continue trending
upward if the firm’s efforts in the repositioning of the brand are executed with an eye towards risk
mitigation.

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QUESTION 3A: BENEFITS AND RISKS TO REPOSITIONING
EILEEN FISHER’s repositioning strategy has the potential to reap the following benefits:
• Shifting Brand Associations
The current perception is that the line is “dowdy,” which prevents potential shoppers from finding
styles that they might actually like. The repositioning strategy attempts to change this perception by
re-imaging the clothes displayed in stores and advertisements.
• Increase Market Share
If EILEEN FISHER can become more attractive to all of the consumer segments while sticking to their
core capabilities, they will gain market share. The company has proven that they are leaders in the
high-quality clothing category and they are not trying to deviate from that market. Furthermore,
Emerging Women are eclectic shoppers. If EILEEN FISHER can change their opinions of the brand,
they will buy the product at the current price points even if they don’t commit to the entire line.
• Extend Profitability Timeline
Currently, EILEEN FISHER customers are growing old with the company, and a repositioning is
necessary to build loyalty with younger segments. If EILEEN FISHER can successfully capture new
customers, the profitability timeline of their company will extend significantly.

In addition to the benefits, EILEEN FISHER’s repositioning strategy also runs the following risks:

• Alienation of Loyal Customers

Consumers choose brands that signify who they are or who they would like to be. After repositioning,
does EILEEN FISHER have a brand that represents who consumers want to be? Established Women
have the means to purchase large volumes of clothing at once at full retail price, and if they are
alienated, this could result in a dramatic loss of revenue. Regardless of consumer segment, the
average American woman is a size 14. The repositioning strategy aims their advertising campaign on
highlighting the clothes on models that are much smaller, risking further alienation.
• Brand Dilution
By targeting multiple segments with a wide variety of products, EILEEN FISHER risks brand dilution
through the overuse of her brand. With the widening product offering, there is also the risk of back
transfer; associations with new product could transfer back to the original products, negatively
impacting the brand if the associations are negative. Contributing to brand dilution, If customers do
not perceive a fit between the original product form and the new product form, in terms of product
features and/or concepts, EILEEN FISHER runs the risk of a loss of brand differentiation.
• New Target Risk
There are a lot of similarities between Emerging and Established women, so going after the Emerging
segment has the potential to generate market share and revenues for the company. Nascent women
on the other hand don’t have much spending power, and focusing too much on them might not
develop into profits. Additionally, with both new segments, EILEEN FISHER faces much fiercer
competition than she did as a “bridge line” in the Established Women segment.
• Channel Distribution Risk
EILEEN FISHER clothing enjoys the strongest sell-through in department stores, which translates into
a large chunk of real estate devoted to the brand on the sales floor. Department stores might start to
scale back that real estate if they don’t think they can count on EILEEN FISHER to provide consistent
quality and value to its customers.

EILEEN FISHER: Repositioning the Brand | 5  

QUESTION 3B: RISK MITIGATION

RISK MITIGATION STRATEGY

Alienation of In order to avoid alienation of loyal customers, it is essential that EILEEN FISHER maintain
Loyal the value proposition for the current core customers. These women are expecting
Customers simple, timeless, high-quality clothing, and EILEEN FISHER must continue to deliver.
Even with new product offerings, store displays can be used to accentuate the elegance
of the brand. Salespeople should be trained in how to strategically navigate the brands
repositioning, and how to communicate with both new and old customers.

Brand Dilution First of all, the best way for EILEEN FISHER to avoid brand dilution is refrain from
targeting Nascent women unless they are going to target them via multi-branding
strategy (House of Brands). Their trendy fashion preferences and lower price points are
too much of a departure from EILEEN FISHER’s brand identity, and to try to appeal to
them would stretch the brand too far from its core capabilities.
Second of all, as EILEEN FISHER broadens its product offering, it is going to have to
launch a new advertising campaign. EILEEN FISHER should use this as an opportunity to
invest in a social media presence that emphasizes the social values of the brand. Instead
of diluting the brand through overuse, Eileen can strengthen her brand by making sure
consumers know about the positive impact her company has on society. The EILEEN
FISHER brand encourages connections, and they can exemplify this value by engaging
with consumers in a variety of digital spaces. This presence will not only allow them to
spotlight the sustainable practices of their supply chain management, but they can also
use it to respond to public criticism. Even one loud voice on social media has the power
to damage a brand, and EILEEN FISHER needs to be prepared to protect their brand
from such attacks.

New Target In order to reduce the risk of targeting a new segment, EILEEN FISHER should be
Risk strategic about how it markets to the Emerging Woman segment. Since they are more
likely to pair EILEEN FISHER clothing with other designers, product promotion should
emphasize pieces that are easily paired with other clothing. Along with individual pieces
being attractive--instead of whole outfits--tasteful accessories (belts, scarves, jewelry)
should be available as well, possibly at a slightly lower price point to broaden brand
awareness. Even if Emerging Women aren’t making large purchases, EILEEN FISHER is
still building brand trust with these customers, increasing the chance they will continue to
patronize the brand when their incomes increase.

Channel As long as the brand continues to appeal to consumers, new and old, the risk of losing
Distribution retail real estate remains low. This risk could also be mitigated by multi-branding. If
Risk EILEEN FISHER decides they want to go after Nascent Women, an entirely new brand
will be necessary. Since EILEEN FISHER already has such great relationships with
retailers, it is likely that they would be willing to carry the new brand as well, possibly
offering up even more retail real estate for the company’s new venture. Lowering sell-in
on these products would encourage sell-through, making the brand more profitable for
the retailer.

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