Picking up on on the discussion from Part One of this column, let's look at the business side of Vineyard Vines.Going To College
Early on, the company focused on the college market as a key demographic and it has been a successful effort.
A la Jimmy Buffet, Vineyard Vines has “college tours” that bring the VV lifestyle directly to college students on their campuses. Complete with beach parties and pink foam whale hats reminiscent of Buffet’s “land sharks” they are marketing the Vineyard Vines brand directly to a core consumer audience.
To say that Shep and Ian created and effective and inclusive grassroots marketing environment is an understatement; they knew exactly which demographic they were targeting and how to reach it.
Unfortunately, they might have been a little too successful in that particular market. In the eyes of some, the brand has become somewhat synonymous with beer chugging, rowdy preppy frat boys. While not an image problem per se, this reputation among college and immediate-post college consumers does somewhat degrade the brand’s image within part of its core market.
Unflattering subsets aside, this kind of legwork develops an enthusiastic customer base that sees their support of the brand as part of their own lifestyle. The company has a business unit dedicated to producing customized designs for colleges, their sport teams and fraternal organizations.
Whale heads
To keep these collegiate efforts coordinated and effective, it also has dedicated brand managers who focus solely on the university market; working with student leaders, administrators and sports teams. A key goal of course is that as these students grow up and head off to their own careers, a new supply of Vineyard Vines diehards are ready to open their wallets.
Wearing the Whale
The Vineyard Vines brand also fits nicely into the current trend of preppy/New England Americana we have seen in men’s and women’s wear for the past few seasons.
The company’s classic, some say pedestrian, designs will be in style for years and have a certain malleable nature that engages both New England Gold Casters and Southern preps from key markets like Charleston, South Carolina.
The brand also has an appeal that reaches those who will never set foot on the Vineyard and who will never be part of “that” life. This issue alone spawned a wide-ranging discussion in Part One of this article and even prompted me to write a side column on the issue of branding real life.
As the preppy trend has matured from “see how over-the-top preppy I can be” to a more grown up blending of classic patterns, colors and textures, Vineyard Vines finds itself well positioned to be a sort of baseline purveyor of East Coast preppy. The current economic downturn also provides a silver lining of sorts because customers are drawn to safe, stable, familiar styles now more than ever.
For some then, the traditional designs of Vineyard Vines shirts, pants and shorts represent stylistic security as well as comfort. As a number of readers pointed out in their comments on Part One, Vineyard Vines is no Ralph Lauren. While the two share a seaside/preppy/windswept lifestyle brand, where Ralph is champagne and oysters, Shep and Ian are Sam Adams and lobster rolls.
Family friendly marketing
The brand has never been about highbrow, but it does appeal to the lifestyle sensibilities of many who want some of the privileged coastal life.
Functionality plays role as well. A Vineyard Vines polo, tie, fleece jacket or classic “bare feet” D-ring belt will be in style now, a year from now and probably 10 years from now. To some the brand is very functional, forgettable in fact. A number of people have told me that apart from the whale logo they find those khakis, polos and shorts interchangeable with other mid-market purveyors like Gap or Eddie Bauer.
Their tote bags have become, especially for many young women, signature accessories. Other items like blazers, oxfords, shorts and pants all reinforce the VV lifestyle without the overbearing brand association of a Ralph Lauren-like status issue. The message is often that if you are a Vineyard Vines person, you are a fun loving low key brand ambassador who doesn’t need go out of your way to impress others.
Vineyard Vines' tote bag
Washington, D.C., has also found the brand to be a good fit. Apart from its appealing natural heritage and traditional preppy theme, there is a long running and bipartisan relationship that politicians, particularly from the Northeast, have with Vineyard Vines ties. During his presidential run, Senator John Kerry (D-MA) commissioned blue donkey ties for his staff which quickly attained must-have status. Since then, Vineyard Vines ties and belts sporting donkeys, elephants, and American flags regularly dress up blue or red political operatives from Capitol Hill to K Street.
Even those classic Vineyard Vines totes have been tricked out with blue/donkey or red/elephant trim – no doubt a de rigeur item on the Hill.
The Business of Fun
From a purely business perspective, Shep and Ian are pretty smart guys. They understand the power of branding and customer association to the Vineyard Vines island lifestyle. They are heavily involved in non-profit, good will and social activities in many of their key markets. The brothers understand the financial and marketing benefits of letting their brand grow organically and in markets that make sense.
One of those markets is corporate branding. The company recently announced a lucrative contract with the National Football League to produce neckties and select garments and accessories featuring team logos where one might normally find repeating sailboats.
Paired with an earlier Major League Baseball agreement, the NFL contract is a coup that will extend the Vineyard Vines brand into the profitable sports marketing space.
As reported last December in SportsBusiness Daily, NFL Vice President of Consumer Products Susan Rothman said, "we have ties in the market, but they don't have the quality that Vineyard Vines has." She went on to say that additional team branded Vineyard Vines products are a logical next step.
In addition to its collegiate and professional sports business ventures, Vineyard Vines provides an extensive corporate branding service that captures lucrative company contracts for employee polos, fleece, etc., and corporate gifts, like tote bags, hats and jackets.
Minding The Store
Vineyard Vines has taken a creative approach to its retail outlets as well. The company makes a concerted effort not to cannibalize existing retailers whenever possible. In many cases, they actually partner with their existing retailers in developing a new stand-alone Vineyard Vines store.
The Memphis, TN, store's family owners/partners
This strategy captures local market knowledge and existing customer bases, engenders goodwill with their local partners and consolidates retail channels. It also frees up the corporate team to focus on product development and branding efforts.
At least one of my readers indicated that he feels the company’s product line is too one-dimensional and stylistically limited to support dedicated retail outlets. While a valid point, those products are selling and the stores appear to be doing well.
The company has won numerous awards, including being named a 2008 All-Star Awards winner by Apparel Magazine for outstanding achievements in the apparel industry. Though I heard from several detractors, mostly other bloggers, Vineyard Vines continues to be profiled as case study in creating and building a passionate and successful business.
The company also recently invested in robust back office and supply chain management software so that costs can be controlled and inventory managed across the various retail platforms (web, catalog, company store and retail).
If there is an area of legitimate concern regarding Vineyard Vines’ brand, I think it is the issue of dilution. By broadly moving into so many tangential markets – collegiate, fraternal, club, professional sports, corporate – the Murrays do run the risk of thinning its image and muddling what "Vineyard Vines" means. If I can pick up a dozen San Francisco 49ers VV ties at Marshall’s, exactly how special is that brand? What lifestyle am I really buying?
It’s a legitimate concern and frankly one I suspect has already been mulled over up at the Stamford, Connecticut, headquarters.
An in case anyone is wondering, no, I do not have a stake in the company and no, it is not supporting me in any way. I contacted Vineyard Vines and asked for some time to speak with Shep or Ian but I have not yet heard back. Guys, if you’re reading, I’d love to get your thoughts on all this.
