By: Anna Economu

Table Of Contents
Company .3
Subsidiaries ....4-9
Key Personal ...9
Income Statement ..10
History ....11
Category and Competition ..11-13
Products within Category 13-14
Brand Analysis 14-15
Advertising/Marketing Communication .15-16
Recent News ..17
Perceptual Map 18
Pyramid .18
Promotions ...19
Digital Strategies 19-20
Dashboard .21
Brand Value .22
Brand Exploratory ..23
Media 24-25
Recommendations 25-26
Citation ..27

Company
Steven Madden, Ltd started in 1990, with a mere $1,100
in his bank account, Madden began crafting shoe designs
from his Queens-based factory and the Steve Madden
brand was born. With sheer guts, years of experience in
the footwear industry and unique creative designs, Steve
Madden formed one of the most iconic fashion brands in
America. Their headquarters are located in Long Island
City, New York. He has an innate sense of what's hot,
what's next and what's exciting.
His vision to give fashion
forward men and women a
unique way to express their
individuality through style
resulted in millions of
customers worldwide and
propelled his designs to the
forefront of the fashion
industry. Inspired by rock and
roll, fused with a jolt of sex
appeal and urban edge,
Madden creates products that
are innovative, sometimes wild
and always spot-on-chic.
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Today, the Steve Madden brand represents a lifestyle. It is

about embracing fashion while still maintaining that
funky independence that first defined the brand 20 years
ago. With his product offering now including other
accessories such as watches, jewelry, handbags, belts, sun
wear, cold weather, outerwear and hosiery, Steve
Madden is always looking towards the future.

Subsidiaries/Consumer Profile
Steve Madden has a variety of product lines that target
different demographics. In the Wholesale Footwear
Segment;
Steve Madden Women's. We design, source and market
our Steve Madden brand to department stores, specialty
stores, luxury retailers, value priced retailers, national
chains, mass merchants, online retailers and catalog
retailers throughout the United States and Canada. The
Steve Madden brand has become a leading life-style
brand in the fashion conscious marketplace. Steve
Madden Women's offers fashion forward footwear
designed to appeal to customers (primarily women
ages 16 to 35) seeking exciting, new footwear designs
at affordable prices. New products for Steve Madden
Women's are test marketed at Company-owned retail
stores. Typically, within a few days, we can determine
if the test product appeals to our customers. This
enables

us to use our flexible sourcing model to rapidly respond

to changing trends and customer preferences, which we
believe is essential for success in the fashion industry.
designs, source and market a full
collection of directional young
women's shoes under the Madden
Girl brand. Madden Girl is geared
for young women ages 13 to 20, and
is an opening price point brand
currently sold at major department
stores, mid-tier retailers and specialty
stores.
Steve Madden Men's. We design, source, and market a life
style collection of men's footwear for the fashion forward
man, ages 18 to 45 years old, under the Steve Madden
brand. Retail channels include major department stores,
mid-tier department stores, better specialty stores, online
retailers and independent shoe stores throughout the
United States. Price points for Steve Madden Men's
products range from $70 to $150 at retail.
Madden. The Madden brand is a street wear focused
collection of footwear geared to meet the trend directions
of the 13 to 21 year old fashion consumer. Madden
products range from $45 to $85 and are sold to national
specialty stores, better department stores, mid-tier
department stores, online retailers and independent
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specialty stores.

Steven designs, source and market women's fashion

footwear under the Steven trademark through major
department and better footwear specialty stores
throughout the United States as well as in our retail stores.
Priced a tier above the Steve Madden brand, Steven
products are designed to appeal principally to fashion
conscious women, ages 25 to 45, who shop at department
stores and footwear boutiques.
Stevies and Steve Madden Kids. Our
Stevies and Steve Madden Kids
brands are designed, sourced and
marketed to appeal to young girls,
ages six to 12, and are sold at
department stores, specialty stores,
online retailers and independent
boutiques throughout the United
States.

On October 5, 2010, the Company acquired the Betsey

Johnson trademark and substantially all other
intellectual property of Betsey Johnson LLC. Products
branded under the Betsey Johnson and Betseyville shoe
brands are distributed through department stores such as
Nordstrom and Dillard's and online retailers such as
Amazon and Zappos.

Superga. On February 9, 2011, the Company entered into a

license agreement with Basic Properties America Inc. and
BasicNet S.p.A., for the use of the Superga trademark in
connection with the marketing and sale of footwear.
Founded in Italy in 1911, Superga is recognized for its
fashion sneakers in a wide range of colors, fabrics and
prints.
design, source, and market a
full collection of handcrafted,
Goodyear welted boots. The
designs are inspired by vintage
Americana and created using
time-honored craftsmanship.
The FREEBIRD by Steven
collection conveys a unique
fashion life style that transcends multiple generations.
FREEBIRD by Steven products are currently sold, at retail
prices ranging from $195 to $450 at major department
stores, mid-tier retailers, and specialty boutiques.
Report. The Report and Report Signature brands were
acquired in our May 2011 acquisition of Topline
Corporation ("Topline"). We design, manufacture,
market and sell our Report branded products to major
department stores, mid-tier department stores and
independently-owned boutiques throughout the United
States.
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Mad Love. Formed in April 2011 as a joint venture with the

Company, the Mad Love brand is an exclusive beach-tothe-street life style brand created to appeal to women with
a young attitude and active life style and marketed to
Target.
On August 13, 2014, the Company
acquired the Dolce Vita and DV
brands and other intellectual
property assets in the acquisition of
Dolce Vita Holdings, Inc. The Dolce
Vita brand is a contemporary
women's footwear brand with price
points ranging from $120 to $350. The DV brand, which is
designed for younger fashion conscious women, has price
points ranging from $60 to $200. Both brands are
distributed through department stores such as Nordstrom,
Bloomingdale's and Macy's and online retailers such as
Amazon and Zappos.
Brian Atwood. In March 2014, the Company acquired
the Brian Atwood designer brand and the B Brian
Atwood contemporary brand from Brian Atwood IP
Company LLC. Founded in 2011, Brian Atwood is known
for luxury shoes manufactured in Italy.

International Division. The International Division works

through special distribution arrangements for the
marketing and sales of our products in Asia, Australia,
Europe, India, the Middle East, South and Central America
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and New Zealand.

Private label business. We design, source and market private

label footwear primarily to mid-tier chains and mass market
merchants. In addition, we design, source and market
footwear for third party brands, such as Material Girl and
Candies.

Key Personal
Steve Madden is the founder
and former CEO of Steven
Madden, Ltd0

Edward R. Rosenfeld,- Chairman & Chief Executive

Officer
John L. Madden- Director
Rose Peabody Lynch- Independent Director
Robert Smith- Independent Director
Thomas Schwartz- Independent Director
Ravi Sachdev- Independent Director
Richard P. Randall- Independent Director
Peter Migliorini- Lead Independent Director

History
1990: Steven Madden opens his eponymous company.
1993: Steven Madden, Ltd. becomes a publicly
owned company.
1997: Madden signs its first licensing
agreements.
1999: Madden doubles its net sales and income.
2000: Steven Madden is indicted on charges of federal
securities fraud.

Category and Competition

Steven Madden, Ltd. is part of the

textile fashion footwear industry. It
is highly competitive with about
100 manufactures, 1,500
wholesalers, and 30,000 retail
outlets. The fashion industry is
highly competitive and the barriers
to entry are low. The company
competes with specialty and
accessory companies as well as
companies with diversified footwear
product lines. Steve Maddens top
competitors are Guess, Kenneth Cole,
Skechers, Jessica Simpson, Aldo, Ugg,
and many more. Many of the
companys competitors are better

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and have a greater amount of resources. They also have a

broader range of products that go beyond footwear and
accessories, making it difficult for Steve Madden to
compete.
Steve Maddens methods of
distribution vary for each of the
product lines. They are sourced
separately based on the
individual design, style and
quality specifications of the
products in each product line.
The company does not own or
operate manufacturing facilities;
they instead use agents and their
own sourcing offices to source
their products from
independently owned
manufacturers in Mexico, China,
Brazil, Italy and India. The company distributes their
products from four third-party distribution warehouse
centers, two located in California, one located in Texas, and
one located in New Jersey, and through two company
owned warehouses located in New Jersey and Canada.
Steve Madden believes in utilizing distribution facilities
that are specialized in distribution fulfillment, their retail
store and Internet customer are served more promptly and
efficiently.
Their wholesales customers consist principally of better 12

department stores, major department stores, mid-tier

department stores, national chains, mass merchants, value
priced retailers, specialty stores and catalog retailers.
Some examples of where Steve Madden products are
located include Macys, Dillards, J.C. Penney, Nordstrom,
and Belks.
Some of Steve Maddens
businesses, including their
Retail segment, have
experienced holiday retail
seasonality. Aside from seasonal
fluctuations, the companys
operating results fluctuate from
quarter to quarter as a result of the timing of holidays,
weather, and timing of larger shipment of footwear, market
acceptance of their products, and product mix. Virtually all
of Steve Maddens products are purchased through
arrangements with a number of foreign manufacturers.
Risks in foreign operation including work stoppages,
transportation delays, interruptions and changes in social,
political and economic conditions can affect the company.
They can result in disruption of trade from the countries in
which their manufacturers and suppliers reside. There were
no found legal considerations.

Products within Category

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Brands within Steven Madden

Ltd. include Steve Madden
Womens, Steve Madden
Mens, Madden Girl, Stevies,
Steven, and others mentioned
further in Consumer Profile.
New products that have been introduced into the
marketplace are Steve Madden Mens and Madden which
are both mens clothing and shoes. They both have full
collections available and are a new project Steven Madden
Ltd. are excited to introduce and evolve. Accessories have
also been added to the brand, consisting of hosiery,
handbags, and outerwear. Benefits of both the product
lines, mens and accessories, are that they have a larger
consumer market to work with and they are offering men
and women a larger variety of products which will create
brand loyal customers. Innovations within the company are
primarily in e-commerce. A social media home page on the
website is attracting young socially active consumers.

Brand Analysis
All of Steve Madden Ltd. brands and licenses are valuable to
the company but there a few product lines that have been
top dog. 52% of net sales are from the wholesale segment,
14% from wholesale accessories segment and 25% of net
sales are from the retail segment. Wholesale segment can
be broken down further into top net sales according to
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brand.

1.
2.
3.
4.
5.
6.

Steve Madden Womens Division- 29% of net sales.

Madden Girl Division- 12% of net sales
Steve Madden Mens Division- 8% of net sales
Steven Division- 5% of net sales
International Division- 4% of net sales
Steve Madden Kids Division- 1% of net sales

Pricing is based on the level of the brand. For example,

Elizabeth and James is considered luxury footwear located
in high end boutiques, therefore the pricing on the shoes
tend to be higher. Madden girl is an opening price point
where it is much more affordable than Steven brand.
Typically, the prices on the footwear do not fluctuate in
price. Information pertaining the growth trends, category
shares by country and by region were not available.

Advertising/ Marketing
Communications
Success of Steven Madden, Ltd. is a
result of their focus on its
wholesale operation. While the
company has been focused mainly
on their footwear collections, they
are continuing to invest in its
accessories business. Their strategy,
aside from expanding into
accessories includes adding to

footwear for men in Steve Madden Mens and Madden.

They will be offering full collections that will help boost
their mens footwear sales. They are also adding more
than 30 stores and are looking to enter new markets.
There are no identifies specific promises. They are
making every effort to make fashion footwear that will
suitable for style-conscious young women and men.
Principal marketing activities include product
placements in lifestyle and fashion magazines, in-store
promotions as well as personal appearances by founder
Steve Madden. The company continues to promote their
e-commerce website where customers can purchase
products under brands, Steve Madden, Steven, Steve
madden Mens and select Madden Girl styles. They are
also offering exclusive content, and opportunities to
participate in contests. Steve Madden is also making
every effort to connect with their customers through
social media forums.

Recent News
Here are the 8 fastest growing retailers and their average
same-store sales growth in 2015 Q1 and Q2:
- Steven Maddden : 15.1%
- Skechers: 11.1%
- Kate Spade: 9.3%
- Foot Locker: 8.7%
- Express: 7%
In 2015 the same store sales growth was ranked number
1 within the country. This is because Steve Madden will
benefit proportionately as customers adjust their shoe
purchases to match the new looks (Forbes.com).

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Perceptual Map

Pyramid

18

Promotions

The way Steve Madden

promotes the company,
and products are by
using various social
media platforms, their ecommerce website, and
fashion magazines.

Steve Madden uses the

platforms to reach out
to loyal customers as
well as offering special
discounts and access to
exclusive content as a
form of brand loyalty.
Success rates of these promotions are fairly high given the
benefit many customers see in having them.

Digital Strategies

The Steve Madden website is used as

an e-commerce site that
concentrates heavily on product
listings and information. Customers
can shop and order items online.
However, the website has been
revamped this for the first time in
seven years.

The changes are meant to appeal to the sites young,

socially active customers. The new site features usergenerated content from social media sites, and allows
shoppers to log in with their Facebook. SteveMadden.com
pulls and displays photos customers post on various social
media sites, with the tag of one of Steve Maddens various
hashtags, directly to the home page. Mark Freidman,
president of e-commerce, says We wanted the site to be a
combination of e-commerce and branding. Customers
are also now able to share purchases, reviews, and posts
from the website to their Facebook. The website redesign
employed a technique that adapts the look of the site to
tailor-fit the device the consumer is using.
The Facebook page is
updated with outfit
suggestions, Steve Madden
personal appearances, ecommerce site sale
advertisements, customer
photos of them wearing the
brands footwear. There is also posts made from past
events and photos recollecting the occasion. Twitter page
is filled with similar posts as from Facebook, and retweeted posts from followers. Twitter also gives the
customers and followers the opportunity to tweet Steve
Madden Help if they have any problems or concerns to
voice.
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21

Keyword: Steve Madden

Brand Value
The brand value for Steve Madden has defiantly
increased this year. It has improved greatly over the past
several years since, founder, Steve Madden returned to
his company after serving time in prison for two years
due to fraud. The company and brand is growing
tremendously. Introducing new products and working
with other companies through licenses has increased the
brands value. I believe if they keep up with what they are
doing, staying up to date with the trends, they are only
going to continue growing.

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Brand Exploratory
The research conducted included qualitative and
quantitative methods. Quantitative method included
creating a survey and distributing it to a random sample
of participants. The purpose of the survey was to
determine participants awareness of the Steve Madden
brand. Various questions included gender, age, income,
and what
products
they
associate
Steven
Madden
with
were asked. The results determined that men and women
between the ages of 21 to 24 earn an annual income of
less than $20,000 and are aware of Steve Madden brand
and believe it is not affordable. The results could suggest
that the participants are not aware of all the brands
Steve Madden has that offer various price points. Also,
participants were asked, when thinking of Steve Madden
brand how descriptive is the word trendy. This is an
indication that the company follows a specific pattern
and trend based upon the current culture.
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Qualitative research was conducted using free associations.

Participants were asked to describe what came to mind
when they were mentioned about Steve Madden brand.
The top answer that was same
throughout all participants
responses was the word
shoes. It is clear that
respondents are aware of
what the Steve Madden brand
is about. They know Steve
Madden creates fashion
forward footwear that is in
but also expensive. A few of the male respondents were
aware that Steve Madden offers mens products and have
purchased them. Overall, the quantitative research gave a
better perspective as to respondents awareness of the
brand.

Media

Seasonality
Historically, some of our
businesses, including our
Retail segment, have
experienced holiday retail
seasonality. In addition to
seasonal fluctuations, our
operating results fluctuate
from quarter to quarter as a

result of the timing of holidays, weather, the timing of

larger shipments of footwear, market acceptance of our
products, product mix, pricing and presentation of the
products offered and sold, the hiring and training of
additional personnel, inventory write downs for
obsolescence, the cost of materials, the product mix
between wholesale, retail and licensing businesses, the
incurrence of other operating costs and factors beyond
our control, such as general economic conditions and
actions of competitors.

Recommendations

Steve Madden brand is valuable asset to the

footwear industry. It has been a gateway for
young, hip fashionistas to express themselves
with their products. In order for Steve
Madden to grow more and expand their
brand they need to make a few changes. The
company needs to strengthen their
associations with international markets. They have had
acquired licenses from Superga in Italy, and that is a good
way to begin expanding into the marketplace, but they
need to make more associations. They could even try to
create an exclusive line for international consumers in
order to begin creating brand loyalty.

25

There are few marketing campaigns for Steve Madden.

Focusing on marketing their brand would allow them to
reach a larger consumer market. They would also benefit in
new marketing campaigns to show consumers how their
brand is expanding with new products and collections.
Steve Madden should also find a way to change their
promotions to involve their consumers. By redesigning their
e-commerce site they have already shown they are putting
their customers first by involving them in their social media
activities. This will spark attention in followers and
consumers creating a larger brand loyalty base.
Overall, Steve Madden has been attempting to rebrand
themselves by involving current trends that incorporate
customer input and ideas. They are continuing to explore
what the brand can offer their faithful consumers, as well
as hearing the voices of those consumers in order to create
something that will come to be a major change in the
fashion footwear industry.

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Citation
http://www.sec.gov/Archives/edgar/data/913241/0001
44530513000408/shoo-20121231x10k.htm
http://quotes.wsj.com/SHOO/company-people
http://www.fundinguniverse.com/companyhistories/steven-madden-ltd-history/
http://www.forbes.com/sites/liyanchen/2015/09/15/her
e-are-the-8-fastest-growing-retailers/
http://www.stevemadden.com/
http://www.stevemadden.com/custserv/custserv.jsp?pag
eName=AboutUs
https://finance.yahoo.com/q/is?s=shoo
http://www.annualreports.com/Company/stevenmadden-ltd

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