Fahrenheit 313
Background
Founded by Frederick Paul in 2016, Fahrenheit 313 is “Detroit’s Hottest Sneaker Exchange.” Aiming to completely revolutionize the retail customer experience, Fahrenheit 313 facilitates the buying, selling, and trading of high-end luxury sneakers between customers through its Sneaker Exchange program, which includes extensive cleaning, refurbishing, and appraisal processes. Fahrenheit 313 operates primarily online and through its new brick-and-mortar location on Livernois Avenue as of March 13th, 2020 (“313 Day”), serving both customers and giving back to the local Detroit community through several social responsibility initiatives. Fred came to me through the Detroit Neighborhood Entrepreneurs Project (DNEP) looking to revamp his go-to-market strategy amongst the presence of more prominent national competitors. My MKT 407: Designing Persuasive Communication students and I worked with Fred to accomplish his goals of creating a more consistent and recognizable brand identity, tapping into uncommon market segments, and building customer loyalty.
Research
Industry
The total global sneaker market is growing and is expected to be worth $97.8 billion by 2024.
The resale market for high-end limited-edition sneakers has grown exponentially over the past three years led by the rise of smartphones and mobile selling platforms.
The sneaker market is dominated by three brands — Nike, Adidas, and Air Jordan.
The global retail resale market is expected to be worth an estimated $431 billion by 2023.
Competitors
StockX, Grailed, and GOAT have created their own digital consumer environments for buying and selling sneakers.
The top sneaker resale sites include Flight Club, Stadium Goods, RIF LA, Sole Supremacy, and Project Blitz.
Consumers
The stigma associated with second-hand fashion is disappearing.
Sneakerhead culture has expanded to include more women and children as well as thrifters and environmentalists.
Culture, rarity, and purchasing channels are the main factors influencing purchases by sneakerheads.
Company Analysis
Strengths
F313 is entering the industry at the peak of sneakerhead and hype culture
Unique value proposition: Buy/Sell/Trade
No dependence on imported materials
Weaknesses
Lack of online and social media presence
Small staff and limited resources
Business is highly dependent on consumer and membership activity
Opportunities
Leverage sustainability aspect of the brand
Expand customer base to include women and children
Create loyalty in customers through rewards
Threats
Skepticism towards second-hand fashion
Big-name competitors with successful online presences
New branding can cause confusion with current customers
Customer Segments & Personas
17-35 year-old Sneakerheads
Fahrenheit 313 provides Sneakerhead Sam with an easy and trustworthy way to keep up with the latest sneaker trends.
Environmentally-Conscious Thrifters
Fahrenheit 313 provides Theo the Thrifter the opportunity to shop sustainably and affordably without sacrificing self-style.
Women, Moms, & Families
Fahrenheit 313 provides a simple yet personalized experience for non-Sneakerheads to purchase high-end sneakers for their loved ones.
Recommendations
Marketing Strategies
Psychographic Positioning
Strategy
Media Mix
Strategy
Against Competitors
Strategy
Positioning Statement
Fahrenheit 313 is 'Detroit's Hottest Sneaker Exchange,' founded upon delivering a revolutionized retail experience for sneakerheads, thrifters, and families of sneaker lovers — offering high-quality sneakers at affordable prices and emphasizing the importance of building a strong community and aiding the environment.
Integrated Marketing Communications Message
United by HEAT. Fueled by FIRE.
This message serves to create a community founded upon the hype that comes from both general sneaker culture and F313’s involvement in the Detroit community. Through the love for sneakers and a passion for helping others, this message targets thrifters and sneakerheads, both 20 to 30- year-old men aiming to save money, help the environment, and stock up on sneakers.
Every Sole Has a Story.
This secondary message emphasizes the story behind F313’s sneakers and targets 20 to 30-year-old women aiming to purchase shoes for family, friends, and children. The narrative aspect of this proposal serves to create first-hand meaning for customers not buying for themselves, urging them to see the difference that F313 can make beyond storefront boundaries.
Student-Made Material
As part of the agreement between the MKT 407: Designing Persuasive Communication clients and I, the client is entitled to full ownership of the creative materials from the winning team of his/her choosing. Every client’s portfolio of student-made material includes two business presentations and papers, IMC message, promotional strategy, detailed budget, media timeline, and the specific deliverables tailored to each client.
The DigitALL team created a variety of materials, including several Instagram campaigns, a media plan, new shoebox packaging, stickers, a customer rewards program, and a social networking platform featured below.
