Dr Martens shifts gears with a strong emphasis on product marketing amidst profit decline
Facing a significant decrease in revenue and profits, Dr Martens is pivoting its marketing strategy from 'storytelling' to a product-centric approach, particularly targeting recovery in the US market.
To recover from a tough set of FY24 results, Dr Martens is shifting its marketing strategy. Instead of focusing on storytelling, the brand will now prioritize product marketing. This change is aimed at a more direct and relentless approach to promoting their products.
The footwear brand's global pre-tax profits have decreased to £97m, a significant drop of 42.9% compared to the previous year. Current CEO Kenny Wilson, who is set to step down next year, attributes this decline to a decrease in consumer demand in the USA.
In addition, the brand's total revenue for the year has also seen a decline of 12% to £877m, down from just over £1bn in 2022/23. Sales of boots in the US have particularly suffered, with a 17% decrease in sales in what the brand describes as a tough boots market.
The company's struggles have led to a revamp in its marketing approach, especially in the Americas market. The business acknowledged that the marketing and trading execution in the region was not as strong as it could be due to this.
Chief brand officer Ije Nwokorie, set to take over as CEO in 2025, is leading the charge to overhaul the marketing strategy for the autumn/winter season. The focus will be on boots, with the marketing team being reorganized to have a product-led approach centered around iconic products.
Nwokorie previously mentioned to Our Website in April that marketing could sometimes overshadow the product. He emphasized the importance of Dr Martens focusing more on its distinct product proposition. According to him, when a brand offers something unique, it should be the main focus of communication.
Marketing spend in the US is set to increase as a percentage of revenue in order to boost brand awareness, which has plateaued at 73%. However, there has been a noticeable decrease in consideration. To address this, the company will employ an "always-on" product marketing strategy for its key products, focusing on activities that target mid- to lower-funnel customers to drive consideration.
Although brand awareness in the UK experienced a slight decrease, it still leads the company at 92%. On the other hand, brand awareness in important EMEA markets such as Germany, Italy, and Spain saw a small increase of around 2% to 3%.
The business is aiming to cut operating costs by £20-25m by improving organizational efficiency, procurement, and streamlining operations due to poor results.
CEO Wilson emphasized the importance of boosting demand in the USA to achieve growth in FY26 and beyond. A detailed plan is being implemented, including increased marketing investment in the USA for the upcoming year.
“I am confident that the actions we are taking as we enter this year of transition will put us in good shape for the years ahead.”
Editor's P/S:
Dr. Martens' shift in marketing strategy is a necessary step to address the brand's declining performance. By prioritizing product marketing, the brand aims to reconnect with consumers and drive demand. However, it remains to be seen whether this approach will be effective in reversing the trend of decreasing sales. The brand's struggles in the US market are particularly concerning, and it will be crucial for Dr. Martens to regain momentum in this key region.
The company's plan to cut operating costs is also a prudent move, as it will provide some financial flexibility to invest in marketing and other growth initiatives. The appointment of Ije Nwokorie as CEO in 2025 is a positive sign, as she has a clear vision for the brand and is committed to delivering results. Overall, Dr. Martens faces significant challenges, but the new marketing strategy and cost-cutting measures provide a glimmer of hope for the future.
