Importance of Data Analytics in Digital Marketing

Data analytics is the collection and analysis of customer data, including their needs, tastes, and desires to improve marketing strategy. It is a fundamental part of a digital marketing strategy and has numerous advantages. First, analyzing past and current trends gives sellers a better understanding of the target market (McGaw, 2020). For instance, demographic data shows potential buyers ages and interests. This makes marketing more efficient since they will know which products to advertise to whom. Data analytics also facilitates personalized marketing as a substitute for generic methods such as sending bulk texts. Consumers have increasingly grown averse to spam advertising and it is, therefore, essential for promoters to know how to sell without irritating their prospective clients (Young Entrepreneur Council, 2019). Additionally, data analytics can give sellers insights into future customer behaviors and enable them anticipate their purchases. They can then develop products that are suitable for that group and secure a ready market even before developing it (Knippel, n.d.). Besides personalized marketing, predicting market trends, and building customer relations, digital marketing increases business profitability and creates brand loyalty.

Effective digital marketing also entails monitoring and measuring performance. Through data analytics tools, salespersons can assess their progress, determine their operation efficiency, and know which areas require more effort. Feedback is essential in marketing because it shows sellers the effectiveness of their chosen strategies (Martin, 2019). Positive responses act as a motivating factor for them, while negative ones provide an opportunity for improvement. Additionally, data analytics shows whether a company achieved its key performance indicators (KPIs). Examples of KPIs include sales growth, website visits, social media reach and engagement, and blog post visits (Klipfolio, n.d.). In summary, by using data analytics tools, marketers can evaluate their products performance and impact on the market.

References

Klipfolio. (n.d.). Digital marketing metrics and KPIs. Web.

Knippel, E. (n.d.). What is data-driven marketing? How to use smart data to deliver a higher marketing ROI. Adverity. Web.

Martin, N. (2019). Why utilizing data in your digital marketing strategy is so essential. Forbes. Web.

McGaw, D. (2020). The importance of analytics in digital marketing. UTM. Web.

Young Entrepreneur Council (2019). Eight reasons why customers dont open your emails (and how you can fix it). Forbes. Web.

Marketing in a Digital Age

Direct marketing has been around for many centuries. The methods used continue to vary with every age and generation. Levinson et al., (2007) state, Marketing continues to evolve and mature (p. xi). As long as the need to place products and provide services to consumers exists, direct marketing will remain. As opposed to mass marketing, it provides marketers with an immediate response to their marketing efforts.

It ensures that marketing efforts target specific consumers. This increases the chance of getting business while minimizing waste associated with untargeted marketing. Direct marketing in the digital age employs digital technology to conduct marketing campaigns.

The internet is the media of choice. It however necessitates the development and maintenance of databases. These databases provide marketers with the necessary information from which they develop marketing campaigns.

The development of a database is a painstaking process. It requires that each consumer who interacts with the company leave certain information with the company. The companies then uses the database to, locate potential customers and to generate sales leads (Armstrong & Kotler, 2011, p.476).

The information collected and stored in such a database may include a customers demographics (age, income, family members, birthdays), psychographics (activities, interests, and opinions), and buying behavior (buying preferences and the frequency, and monetary value  RFM  of past purchases) (Armstrong & Kotler, 2011, p.476).

Once developed, the database is a very potent tool for targeting sales and promotion efforts to reach specific customers. Very advanced forms of analysis are necessary to take advantage of the information contained in the database (Porter, 1991). This acquisition and storage of large volumes of personal data is what creates concerns for many people.

The online environment is a new area of human experience. There are still many valid fears surrounding various issues regarding participation in it. The key privacy concerns internet users have include security concerns, and nuisance. Security concerns revolve around internet fraud and identity theft. Nuisance sources include spam, malware, and viruses.

The retention of private information in marketing databases makes individuals vulnerable to these forms of online privacy concerns.

Apart from unsolicited mails, promotions, and targeting by the marketing company, there are also issues relating to third parties accessing those databases, and using the information to reach a private individual for their own purposes. In authoritarian states, such databases may provide authorities with the information they need to crack down on personal freedoms.

For consumers to remain willing to share their personal information with online marketing companies there is need to develop and maintain stringent security and marketing policies that will reassure their clients. The companies keeping databases need to do everything in their power to ward off unauthorized access to the databases. This will protect consumers from malicious access.

In addition, their policies covering the use of the database for their marketing purposes must respect the privacy of consumers. This may include giving the customer the initiative to access their services, other than trying to reach them directly since this will make them appear bothersome.

The need for individual discretion when filling online forms may also help to reduce the amount of personal information that lies out there. This necessitates mass education of internet users to enable them to avoid internet frauds.

Reference List

Armstrong, G., Harker, M., Kotler, P. & Brennan, R., 2009. Marketing: An Introduction. 10th ed. Upper Saddle River, NJ: Financial Times Prentice Hall.

Levinson, Jay Conrad, Jeannie Levinson and Amy Levinson. Guerrilla Marketing: Easy and Inexpensive Strategies for Making Big Profits from Your Small Business. 4. New York, NY: Houghton Mifflin Harcourt, 2007.

Porter, M.E., 1991. Competitive Advantage. In C.A. Montgomery & M.E. Porter, eds. Strategy: Seeking and Securing Competitive Advantage. Boston, MA: Harvard Business School Publishing Division.

Asian Hotel Industry and Digital Marketing Strategy

Introduction

Industry background

Emerging technologies have redefined marketing. One of the new areas of marketing that have emerged due to new technologies in digital marketing. Digital marketing is an important and ever-growing area of interest and a key component of marketing plans and business strategy in modern society where technology has become an integral part of marketing. It is a process that firms use to increase sales and get customer attention by using various digital marketing tools such as company website, email, and social media. Social media marketing is the most modern among these tools and gets massive customer attention. An industry such as the booming hotel industry especially in a high-growth geographical region such as Asia is primed for the use of digital marketing (Barnes & Scornavacca 2004, p. 130).

In fact, digital marketing seems like a natural choice for most of the leading hotels. The inclusion of digital marketing in the overall marketing plans is an effort that will yield great results, perfect in a people-intensive business. This research is important given the economic potential and the large scale marketing operations of hotel industry in Asia. It is a sector that has experienced huge growth in the recent past. Phenomenal economic growth, a number of countries in Asia, particularly in the Asian Tigers, has contributed to this growth. The researcher intends to conduct a study to determine whether the hotel industry in Asia has a well-established framework of performance metrics to evaluate their digital marketing strategies.

Research aim and objectives

When conducting research, it is always important to define the research aims and objectives. According to Delving (2006), research aims and objectives help in defining the destination of the research. It helps the researcher to determine what is to be achieved out of a given study. The overall aim of this research is to measure the returns of digital marketing in the hotel industry in Asia. The researcher seeks to investigate the benefits of digital marketing to the hotel industry in Asia. Based on this overall aim, the researcher developed a number of objectives. The following are the objectives that the research seeks to achieve.

  • To review the current best practices of measuring the returns of digital marketing in the hotel industry in Asia.
  • To compare various performance metrics utilized to measure returns of digital marketing by the leading hotels in Asia and establish the most effective metrics.
  • To define the performance metrics used to effectively measure the returns of digital marketing strategy and develop a standardized framework for the hotel industry in Asia.

To achieve the above aim and objectives, the researcher will conduct a study in this field using both the primary and secondary sources of data.

Research questions and hypotheses

When planning to conduct research, it is important to develop research questions that will be used to collect both the primary and secondary data. Research questions act as a guide that the researcher uses to know data which is relevant to the study. The following research questions will help in the study.

  • Does the hotel industry in Asia have a well-established framework of performance metrics to evaluate the returns of its Digital marketing strategy?
  • How often do the hotel industry in Asia review their performance metrics based on the changing technologies used in marketing?

The researcher will use the data collected from primary and secondary sources in order to effectively respond to these questions. Based on these research questions, the researcher developed the following hypotheses.

  • H1. The hotel industry in Asia has a well-established framework of performance metrics to evaluate the returns of its Digital marketing strategy.
  • H2. The hotel industry in Asia often reviews its performance metrics based on the changing technologies used in marketing.

These research hypotheses will be confirmed or rejected based on the information that will be gathered from the review of the literatures and primary data that will be gathered from a sample of respondents.

Research Limitations

According to Anderson (2004), sometimes it is very important for a researcher to clearly define the limitations in the study in order to inform those who will be using the report about the relevance of the document in different contexts. Anyone who may use the findings of the report must know the context under which both the primary and secondary data were collected. This way, it becomes easy to know how and when to use the findings and maybe how to modify the report to fit into a different context. This study focuses on the hotel industry in the Asian Tiger (Hong Kong, Singapore, South Korea and Taiwan) and Tiger Club (Indonesia, Malaysia, the Philippines and Thailand) economies only.

The study is limited to large multi-national companies only (such as Marriott International, Hilton Worldwide, and Starwood Hotels & Resorts) and excludes stand-alone hotels, national or regional hotel companies. When using the document, it is important to put into consideration the above limitations. When using it in a different context, it may be necessary to make some adjustments in order to fit into such other contexts.

Review of Literature

The use of emerging technologies in marketing has attracted the attention of many scholars, some of whom had ignored some of the currently most popular marketing platforms. According to Ayanso and Lertwachara (2014), when Facebook started out as a social media in the United States and soon after to the rest of the world, it was considered a platform where youths, especially those in colleges, could spend their leisure time chatting with friends. In fact, a section of the society considered it a platform for lazy individuals who had no clear future with their lives. It never occurred to some of the leading firms in the world that social media, especially Facebook, would become a formidable marketing platform that would attract marketers from all over the world.

Things have completely changed as Facebook, and other social media platforms have become very important marketing channels, especially for firms targeting adolescents and young adults (Bowen & Ozuem 2015, p. 78). Almost all the leading hotels in Asia currently rely heavily on social media to market their products to the international market. The major customers of these hotels are the international travellers coming to these Asian countries.

It is not easy to precisely determine which parts of the world they may come from, and this makes social media very appropriate when it comes to marketing their brands. Lee (2014) says that social media helps these hotels to keep close contact with viable global clients.

According to Chaturvedi and Barbar (2014), the social media marketing programs usually centre on efforts to create the content that attracts the attention and encourages readers to share it with their friends in various social networks. This social media strategy depends on the willingness of the individual customers to share their experiences with their peers in a way that will bring out the positive image of the firm. On the other hand, company website and email are tools directly driving corporate message and are paid media. Lusted (2011) says that this makes social media more trustworthy to potential customers than the other paid media. Through social media platforms, customers get to share their experiences with their friends. This acts as an independent review of the performance of these hotels.

The reviewers are not paid to give their opinions about the services they get from the hotels they visit. Their reviews are independent opinions based purely on the services they received their level of satisfaction, and how they rate the services of a given hotel compared to others in the same market. Obee (2012) describes this as viral marketing. A firm that succeeds to exceed the expectations of its customers creates evangelists out of them.

The evangelists find it easy to use the social media platform to share their pleasant experiences with their friends. According to Collier and Magid (2012), people tend to trust the information they get from friends when planning to visit hotels. Through social media, people easily interact, and information about services offered by different hotels and restaurants are readily available. Social media offers a platform where people get to share their views on different experiences, including services they get from various providers. It is also an inexpensive form of communication, a fact that has made it very popular among young adults.

Overview of Hotel Industry in Asia

In the recent past, the hotel industry in Asia has attracted massive research given the positive forecast for growth in this sector. In their findings, it is evident that the region has registered a consistent positive growth in a number of tourists in the last ten years, from 2002 to 2012 with the exception of the year 2009 due to global economic recession (Obee, 2012). In 2012, international tourist arrivals in this region under investigation grew by 4.3%.

The same year saw positive growth stemming from a number of factors including tourists taking advantage of a weaker euro to travel to eurozone states, as well as a growing middle class in Asia who have an increasing inclination to travel abroad. Business Monitor International (BMI) forecast that annual growth in international tourists arrivals will remain between 4-5% for the five years from 2013 to 2017 (Kaplan & Haenlein 2010, p. 65). The factors acting in favour of growth in the Asian hotel industry include the following:

  • A growing and increasingly affluent middle-class interested in travelling around the continent, especially during their holidays.
  • The middle-class helping boosts both domestic and international travels through their savings that banks use to extend loans to the hotels to expand their operations.
  • Growth in domestic/ inbound travel majorly from short-haul regional South East Asian markets, in addition to the traditional long-haul markets such as the Eurozone and the Americas.
  • The growing number of tourist attractions centres spread across Asia.
  • We are improving connectivity between destinations because of an improvement in infrastructure as a result of co-operating governments, for example, co-operation for regional growth and prosperity in the ASEAN region.
  • Availability of a young and talented workforce, especially as compared to the mature economies of the West.

All these factors offer enormous potential for further growth in the Asian Hotel Industry. They have contributed to the growth that has been experienced in this sector.

Digital strategies for the hotel industry

Digital marketing in the hotel industry has increasingly become relevant as firms try to find ways of reaching out to their clients using various approaches. According to Randazza (2010), digital marketing can take various approaches. The most popular digital marketing strategy in the world today is social media marketing that has been discussed above. A dominant social media platform that is actively used by many hotels today include Facebook, Tweeter, and YouTube.

According to Rosen (2013), another emerging digital marketing strategy is paid search presence. In this strategy, firms pay Google to feature names of their websites prominently when online communities are searching for anything related to hotel services. Others are paying another website to redirect their online visitors to their hotel websites as a way of increasing their online presence (Guest 2013, p. 150). This strategy has become very common among the leading hotels in Asian countries upon which the research was based. Content marketing is also becoming popular as these firms seek to find various means of reaching out to their clients in the global market.

Performance metrics for digital marketing strategies

According to Vincent (2011), it is important to determine performance metrics of the digital marketing strategies in order to know whether it not they are adding desired value to the firm. The performance metrics can be looked at from different perspectives. The first perspective of performance metrics is the reach (Ayanso & Lertwachara 2014, p. 78). This means determining how well digital marketing strategies help in reaching out to the target audience. In this metric, the platform chosen must be able to reach out to a large number of the targeted audience as possible. In this context, social media platform, especially Facebook and Tweeter, and paid search presence have performed incredibly well in the hotel industry (Duckett 2001, p. 35).

The reach is looked at in terms of unique visits, geographical coverage, and mobile readership. It must be effective in these three areas for it to be considered capable of offering needed services. The second metric is engagement which refers to how relevant viewers find contents in website to be, and how well the content engages visitors in terms of informing them about what they desire to know from their searches. The third metric is sentiments generated from these digital media platforms. Success will be achieved if the comments from viewers are positive and show their support for a given product the hotel is promoting (Vincent 2011, p. 84).

Online review as a digital marketing strategy

According to Rosen (2013), social media has had a massive impact on performance of hotels not just in Asian countries but also in the world at large. These platforms are now actively used for the online reviews. Rosen (2013) says that most of the online reviews are made through social media, especially Facebook ad Tweeter. People get to interact in the social media and through this they get to share their experiences.

Although in such forums they do not get to give a full review such as rankings of hotels they visit, they can inform their friends about benefits and shortcomings of specific hotels they visited (Vincent 2011, p. 56). In many cases, before one makes a purchasing decision, they tend to inquire from friends who have had the opportunity to visit such places. Their views play an important role in defining decisions that an individual will make.

In many individuals would take photos in order to record their true experiences when they visit various hotels in various parts of this region. When they post such videos on YouTube, it can have a massive impact on decisions made by an individual concerning buying their product. That will be considered a real image of what to expect when they make a visit to such hotels.

According to Rosen (2013), the importance of online reviews has seen several firm in hospitality sector use it as a digital strategy to target specific customers in the market. The main problem that many firms still grapple with is how to measure performance of such digital marketing strategies. Getting a reliable and effective metrics that can help determine true impact of online reviews in social media has been a challenge. It is easy to use some of the emerging online tools to monitor potential customers online behavior.

Through these tools, it is possible to determine the time they spend in a given website, specific information they give emphasis on their searches, and such other online behavioral patterns. However, Rosen (2013) says that it is almost impossible to determine how such behavioral patterns translate into actual purchase.

It may not be possible to state with certainty that a given purchasing decision was made because of information gathered from the online reviews (Weida, 2009). It is possible that other forces could have influenced the decision of such a buyer. This makes it necessary to come up with a research such as this, to investigate how hotels can measure the effect of such online reviews on the purchasing pattern of clients. This way, it will be possible to know how effective it will be to use online reviews as part of the digital marketing strategy that a firm uses to increase the awareness and popularity of its brand and products.

Theoretical perspective

In this paper, the researcher plans to use a number of theories to support the findings of this study. Theories always help in validating a given research. The researcher will use a number of internet marketing theories and concepts that are relevant to the topic. Some of the theories that will be used in this study include Game Theory, Network Theory, Collective Intelligence Theory, and Generational Theory.

Gaps in the literature

The researcher identified some gaps in the existing bodies of knowledge that will be addressed in the study. It was established that most of the existing literatures majorly focused on the digital marketing in the United States and parts of Europe (Esfandiar, 2007). Digital marketing in Asia is yet to receive appropriate attention of scholars. This makes it necessary to conduct a research that will reflect a local context.

Research Methodology

The aim of this research paper is to understand whether big hotel chains in Asia have a well established framework of performance metrics to evaluate their DM strategy. Simply counting the number of hits on the websites, the likes on their Facebook pages and re-tweets on Twitter for example, will not be sufficient information to gauge the performance of digital marketing. This quantitative approach will be very limited in scope and not present the story behind these numbers or the story that can be helpful to business.

For instance, does increased number of likes on the Facebook page mean there is more check-ins at the hotel? Qualitative research when used alongside Quantitative research broadens our understanding of the bigger picture. Qualitative research goes much deeper beyond just numbers and builds context to the statistical data. It looks at the story behind the numbers and reasons behind the factual information. In this section, the researcher defines methodology that will be used in collecting, analyzing, and presenting data.

Data collection

Primary research will be conducted through personal interviews with the help of questionnaires. Interviews will also be conducted via email, telephone conversations and as excerpts taken from business journals. The sample size for personal interviews will be chosen based on the availability of online marketing managers from the chosen hotels, primarily the three hotel chains under consideration. The researcher intends to use stratified sampling techniques given that research will use a number of respondents from different hotels. In order to understand the research in a broader context, interviews will also be conducted with other stakeholders in the hotel industry such as Travel companies, hotel consulting companies and market research firms.

Data analysis

As mentioned above, the researcher will use both qualitative and quantitative data analysis methods in order to arrive at the desired conclusion. Quantitative data analysis will help in giving the numbers on issue under investigation. For instance, it will help in determining how frequently unique visits are recorded in a given website of a firm (Wernerfelt 2006, p. 240). It will also help in determining the number of respondents who are in agreement with the hypotheses developed in the section above. This will be very important because they are expected to help in confirming or rejecting these hypotheses.

However, Aiello (2014) says that quantitative data do not give an explanation behind a given story. In this study, the researcher is not only interested with the figures from the field, but also a clear explanation behind these figures. Qualitative data analysis makes it possible to give an explanation of figures that will be given through quantitative data analysis. Using mixed methods of data analysis will help in coming up with a comprehensive information that is self-sufficient.

Research philosophy

Research for this integrated and consultative project will be a combination of qualitative and quantitative methods. This research philosophy of combining the two methods of research is critical when developing a complete picture of the digital marketing scenario in the Asian hotel industry (Yu & Ting 2012, p. 250). Given that digital marketing brings together social, mobile and website marketing one will need to look at numbers and the story the numbers tell. A mixed research methodology is best suited to this project because it will facilitate developing a comprehensive conclusion over the issue under investigation. Quantitative methods will facilitate understanding of the numbers while qualitative methods will bring out a detailed explanation of the statistical data.

Validity, reliability, and appropriateness of triangulation to your research

Aiello (2014) defines validity as the appropriateness, applicability and truthfulness of a study. It is the ability of research instruments to produce results that are in agreement with theoretical and conceptual values. In this research, internal validity will be facilitated by ensuring that the sample used is a true representation of entire population. The stratified sampling technique proposed in data collection ensured that the participants were from different hotels in different cities within the defined geographic location. External validity in this research study will be assured by using triangulation method. This means that researcher will make use of more than one technique in the data collection process. This will play an important role in boosting the correctness of the final conclusion of the report.

The researcher will also ensure that information collected from the field is not in any way influenced by the personal biasness. According to Finlay (2005), reliability means that the study is consistent and lacks any ambiguity. It refers to the ability to trust something to provide information that addresses specific issue at hand. This largely depends on the type of tool that is used in analysis of the collected raw data. In this research study, the use of SPSS (Statistical Package for Social Scientist) software is considered appropriate in enabling the researcher to arrive at reliable conclusions. Based on guidelines given by Aiello (2014), the research will adopt the principle of openness, coherence, and discourse as a way of improving reliability.

Timescale

The table below shows the timeline for this project from proposal development stage to the last stage of compiling the report.

Timescale

Resources

Detailed research will be carried out on DM in the hotel industry in Asia, looking at leading hotel companies such as Marriott International, Hilton Hotels Worldwide and Starwood Hotels and Resorts in this geographical region. The best practices will then be studied and combined to form a dashboard that can work as a best practice standard of excellence. Primary Research will be conducted based on questionnaires designed for Online Marketing Managers in the industry. Secondary Research will help analyze and interpret the Primary Research. Sources of Information:

  • Marketing and Business Administration text books and reference texts.
  • Past dissertations available in the libraries at Singapore Management University and National University Singapore.
  • Newspapers, business magazines, and e-newsletters.
  • Academic journals available online.

Other help with information will come from the follow sources:

  • Google Scholar.
  • Sage Research Methods Online.
  • Directory of Open Access Journals (DOAJ).
  • Abstract Databases (ERA).
  • Citation Indexes.
  • Emerald Research Database.
  • Mintel Market Research.
  • Business Source Complete.
  • Keynote Market Intelligence.

List of References

Aiello, L 2014, Handbook of research on management of cultural products: E-relationship marketing and accessibility perspectives, Business Science Reference, Hershey.

Anderson, P 2004, Research Methods in Human Resource Management, Chattered institute of Personnel Management, London.

Ayanso, A & Lertwachara, K 2014, Harnessing the power of social media and web analytics, McMillan, London.

Barnes, S & Scornavacca, E 2004, Mobile marketing: the role of permission and acceptance, International Journal of Mobile Communications, vol. 2, no. 2, pp. 128-139.

Bowen, G & Ozuem, W 2015, Computer-mediated marketing strategies: Social media and online brand communities, Oxford University Press, Oxford.

Chaturvedi, S & Barbar, R 2014, Impact of social media on consumer behaviour. Journal of Research in Management, vol. 2, no. 2, pp. 12-58.

Collier, A & Magid, L 2012, MySpace: Safe online networking for your kids, Pearson Education Limited, Harlow.

Delving, A 2006, Research methods: planning, conducting and presenting research, Wadsworth, Belmont.

Duckett, J 2001, Bureaucrats in business, Chinese-style: The lessons of market reform and state entrepreneurialism in the Peoples Republic of China, World Development, vol. 29, no. 1, 23-37.

Esfandiar, M 2007, Economic Reform, Growth and Convergence in China Econometrics Journal, vol. 10, no. 2, pp. 1-25.

Finlay, A 2005 Introduction to Basic Research Methods Handout, Cengage, New York.

Guest, G 2013, Describing mixed methods research: An alternative to typologies, Journal of Mixed Methods Research, vol. 7, no. 1, pp 141-151.

Kaplan, A & Haenlein, M 2010, Users of the World, Unite! The Challenges and Opportunities of Social Media, Business Horizons, vol. 53, no. 1, pp. 5968.

Lee, I 2014, Integrating social media into business practice, applications, management, and models, Phoenix Books, New Delhi.

Lusted, M 2011, Social networking: MySpace, Facebook, & Twitter, ABDO Publishing Company, Edina.

Obee, J 2012, Social networking: The ultimate teen guide, Scarecrow Press, Lanham, Maryland.

Randazza, J 2010, Go Tweet Yourself: 365 Reasons Why Twitter, Facebook, MySpace, and Other Social Networking Sites Suck, F+W Media, Cincinnati.

Rosen, L 2013, Me, MySpace, and I: Parenting the net generation, Palgrave Macmillan, New York.

Vincent, F 2011, MySpace for musicians: The comprehensive guide to marketing your music online, Course Technology, Boston.

Weida, K 2009, Housing Characteristics, Property Tax and House Prices, Economic Research Journal, vol. 4, no. 1, pp. 11-015.

Wernerfelt, B 2006, Efficient Marketing Communication: Helping the Customer Learn, Journal of Marketing Research, vol. 33, no. 2, pp. 239-246.

Yu, X & Ting, J 2012, China 35 large and small city real estate industry technology efficiency researches-demonstration analysis based on three phrases DEA model, Special zone Economy, vol. 3, no. 4, pp. 224-293.

Digital Marketing in the Fashion Industry

Introduction

Today, the development of marketing strategies and ways of business development is impossible without considering technology. The most common marketing technologies are online sales, digital marketing, SaaS, cloud computing, cloud storage, robotic process automation, and robotics to collate data. The fashion industry is a massive segment of the global market that contacts billions of consumers worldwide. In recent years, digital marketing technologies have played an increasingly decisive role in creating a successful marketing strategy for the mass market and high fashion clothing stores. This essay will present how the fashion industry uses digital marketing technologies to attract new customers and increase customer engagement. It will also define the terms marketing strategy, CRM, and digital marketing. The first part of the essay will provide an overview of the marketing technologies actively used in the fashion industry today. The following part will assess and explain the use of technology in the fashion industry. Sustainability issues will then be discussed, and referenced recommendations will be presented on the future use of digital marketing technologies.

Definition of Important Terms

A marketing strategy is a strategy to attract potential customers who should become customers of a companys product. A marketing strategy can be built on a value proposition, key brand messages, and customer data, including demographic and other characteristics. It can incorporate marketing plans that describe marketing activities and marketing initiatives (Barone, 2020). A marketing strategy can remain unchanged for quite a long time, as it contains the businesss essential elements. At the same time, a marketing plan is a kind of map, a logistic scheme for achieving a marketing strategys goals. Therefore, various techniques, including marketing technologies, are usually used to implement marketing plans, where the details of specific marketing campaigns are presented (Barone, 2020). The marketing strategy can also include a description and analysis of the marketing technologies effectiveness, as this allows ensuring sustainability in the application of these technologies.

One of the essential tools in the interaction of a company with its potential and regular customers is customer relationship management (CRM), which contains fundamental business methods and principles. CRM involves covering sales processes, customer service, forecasting, trend analysis, and customer behavior analysis (Hargrave, 2019). CRM can use various tools, including digital marketing technologies, such as creating an attractive website, bulk emailing, and communicating with customers on social media. The goal of CRM is to adapt to current trends, make a good impression of the brand among customers, and grow the customer base. Sometimes the term CRM also refers to those marketing technologies used to attract customers or improve the brand experience (Hargrave, 2019). CRM is implemented at all stages of the customers life cycle, including discovery, learning, purchase, and after-sales service.

Digital marketing is a CRM tool and involves using the Internet, mobile devices, social networks, search networks, and all the technologies available within this use. Since digital marketing is a CRM tool, its ultimate goal is to reach consumers (Barone, 2020). Digital marketing has appeared recently; it appeals to new generations of consumers, uses new ways of presenting information, and requires new approaches. Digital marketing is characterized by targeting or segmentation and interactive technologies (Barone, 2020). There are many channels of interaction with customers within digital marketing, such as advertising in search results, email marketing, blogging, Web 2.0 communication, video-streaming, and photo sharing. Web marketing is the centerpiece of a company website, while pay-per-click (PPC) advertising, content marketing, email marketing, social media marketing, video marketing, and SMS marketing are some other examples.

Digital Marketing Technologies Review and Analysis, Web 2.0, SEO, and Google Ads

Fashion brands always try to keep up with popular tech trends. They adapt their marketing strategies to emerging markets, old and new, where digital marketing is the primary means of interacting with audiences. Besides, the use of digital tools is the key to success in attracting younger generations. According to Muniesa & Giménez (2020), one of the leading digital marketing methods used in the fashion industry is Web 2.0. Web 2.0 describes the phenomenon when users can view content and make changes to it (Kenton, 2018). An example of Web 2.0 is posting comments on websites, social networks, and specialty websites such as Britannica or Wikipedia, where users are encouraged to create content.

More generally, Web 2.0 describes the tendency for the Internet to have diverse user-generated content and user experience technologies, compared to Web 1.0. Therefore, Web 2.0 describes changes in how the Internet is used and presents a new era characterized by a high level of information exchange and interaction between users (Kenton, 2018). Notably, Web 1.0 describes the early Internet era when websites were more static and had limited functionality. In contrast, Web 2.0 is characterized by adding comments, creating accounts, and publishing articles. Outstanding examples of Web 2.0 are WordPress, podcasts, polls, personal blogs, and social media with all the interactive features they offer.

SEO tools, SEM, and social media are important digital marketing tools too. Scientists note that Pinterest is one of the primary sources of information dissemination for high fashion brands such as Chanel (Muniesa & Giménez, 2020). At the same time, scholars emphasize that luxury brand websites are very stylish, but perform poorly when it comes to user experience and functionality (Muniesa & Giménez, 2020, p. 235). It is also noted that high fashion brands are not taking full advantage of search engine optimization (SEO) opportunities, losing potential traffic, and revenue. Google is one of the most influential channels through which shoppers find brand information and shop. Therefore, scientists recommend that brands be sure to optimize sites for SEO. Low ranking in Google searches leaves brand websites unavailable to many potential consumers.

Besides, Google Ads and Facebook Ads are widely used in CRM as they provide a high level of segmentation and targeting of advertising messages. Muniesa & Giménez (2020) note, you can target your ads to 35-year-old married Parisian men who love Prada, Gucci and Versace (p. 234). Besides, ads targeting allows specifying indicators like the company where the potential buyer works, their position, and music preferences.

Review and Analysis of Digital Marketing Technologies, Storytelling

Another exciting aspect of the marketing strategies of high fashion brands is brand exclusivity. Ways to properly convey this exclusivity include creating private member groups, offering concierge or shopper services, and digitally delivered loyalty benefits (Muniesa & Giménez, 2020). However, there is another tool for creating a loyal relationship with a customer, increasing customer engagement, and brand awareness  storytelling (Romo et al., 2017). Telling the story behind a brand helps explain its values and uniqueness. According to scientists, this method is used in video marketing strategies, social networks, and public events.

An example would be the #series events organized annually by Louis Vuitton in different cities. Through storytelling, brands shape the key messages and values, creating stories of the collection creation process, describing the life path of the brand founders, the procurement processes, and the origin of the materials from which products are made (Romo et al., 2017). Shows of behind-the-scenes events, individual interviews with creators, and employees are also in great demand. Brands also use digital platforms, interacting with the public through blogs, forums, social networks, to develop viral marketing and make customers a part of the brands world.

Scientists present digital marketing technologies in the fashion industry using famous brands Prada, Chanel, and Luis Vuitton. In particular, Prada prefers storytelling on digital platforms, including social media and mobile, engaging celebrities and bloggers. Prada also uses online sales to promote sales from the brands website (Romo et al., 2017). Chanel offers richer content using the website, social media, and blogs to connect with customers. On the companys website, one can find a series of videos that present historical information about brand building, new and old collections, haute couture presentations, and other events through storytelling. There is also a series of mini-videos that Karl Lagerfeld filmed to revive the brands image (Romo et al., 2017). These videos, presented in chronological order, reveal the main stages of the brands history and evolution. One of the most striking examples is the video Coco inside Chanel, which presents the founders story and her path to fame.

Luis Vuitton is also actively using digital marketing strategies, focusing on product quality, manufacturing processes, and emotional communication. Besides, Luis Vuitton advertises exhibitions, which it organizes in different cities, presenting seasonal collections (Romo et al., 2017). Like the previous two brands, Luis Vuitton uses social networks and attracts celebrities to promote the brand. For example, Selena Gomez became the face of the most recent digital marketing campaign that targeted millennials.

Review and Analysis of Digital Marketing Technologies, Influencer Marketing

Another way to communicate with potential consumers and regular customers is through influencer marketing. According to Sudha & Sheena (2017), the fashion industry uses the importance of influencers opinions to consumers, which are expressed in the form of blogs, posts, photos, or videos on digital platforms such as Facebook, Twitter, YouTube, and Instagram. Influencer marketings advantage is its interactivity and high level of user engagement, who can comment on their experience using the companys products and share it with friends. However, buyers freedom of expression has led to the need to minimize negative messages and maximize positive ones, which should help create a positive customer experience within CRM. Therefore, fashion blogs became an essential way for brands to digitally interact with customers and promote products to targeted consumer segments. In this way, influencers have become hubs or meeting points for shoppers and the primary place for exchanging opinions.

Targeting potential influencers is done in the same way as segmenting customers  using Google Ads or Facebook Ads. More advanced tools include AdWords campaigns and more sophisticated CRM tools such as SAP C4C, Microsoft Dynamics, Sage CRM, and Salesforce CRM (Sudha & Sheena, 2017). The purpose of influencer marketing is to identify and activate individuals who impact the target audience or environment. The brand then recruits these influencers to participate in marketing campaigns to increase audience reach or increase sales.

When working with customers through influencers, brands focus on developing trust and genuine relationships. Influencer marketing can be paid or unpaid. In the case of unpaid marketing, the influencer uses the brand to enhance personal social growth (Sudha & Sheena, 2017). Paid influencer marketing involves influencers participating in paid marketing campaigns. Paid influencer marketing includes sponsorship, pre-advertising, and feedback (Sudha & Sheena, 2017). The form of the advertising message and the audiences reach depends on the digital marketing campaigns budget. Anyone can become an influencer, and sometimes it can be a group of people, an organization, or another brand. In addition to influencing and building brand trust, influencer marketing allows creating social dialogue around the brand.

The value that influencer marketing creates comes from three sources, namely reach, relevance, and resonance. Reach refers to the size of the audience that will receive the ad message. The higher the level of influence, the wider the audience reach, the higher the campaign budget (Sudha & Sheena, 2017). A right influencer should have more than average subscribers in a given niche and qualities that can motivate followers to take action. Sometimes its about reaching millions of consumers with a single influencer through multiple social channels and blogs. Next, relevance measures the influencers level of significance to the brands products. Finally, resonance reflects the level of activity an influencer generates by posting content (Sudha & Sheena, 2017). Resonance depends on the response that a single Twitter post or post on Instagram can cause in followers. One of the influencers most critical tasks is maintaining a strong relationship with an audience based on trust.

In the fashion industry, influencers are among the most sought-after campaigners for luxury brands. Scientists divide influencers into four main types: traditional influencers, emerging digital influencers, influencers by connection, and influencers by topic (Sudha & Sheena, 2017). Traditional influencers are PR agencies and celebrities, as well as industry experts. Emerging digital influencers are mainly bloggers who have gained recognition from a broad digital audience and are opinion leaders. Influencers by the connection are determined by the number of followers or friends on Facebook, Twitter, YouTube, Instagram (Sudha & Sheena, 2017). Usually, companies attract this type of influencer when they create a new brand or product. Influencers by topic are the influencers on specific issues whom brands generally attract to draw attention to existing products.

There are several most popular platforms for influencers  fashion blogs, video platforms, and photography platforms. Influencers usually blog regularly, posting graphics, photos, videos, comments, or event descriptions. Each influencer has an individual style, from which they cover the fashion industry (Sudha & Sheena, 2017). The central video platform is YouTube, where influencers can upload videos about fashion and beauty. This platforms advantage is the high interest among subscribers, as the videos usually describe various practical tips that can be applied in everyday life. Instagram, Pinterest, Tumblr, and other photo platforms target the younger generation and have the advantage of fast photo messaging speeds (Sudha & Sheena, 2017). Besides, influencers common benefit is a high level of trust in reviews, photos, and videos, and direct communication with the audience.

Google Trends and Online Virtual Fitting Rooms

Another useful digital technology tool related to online sales rather than digital marketing is virtual online fitting rooms. This tool allows creating a parametric consumer avatar after entering the given dimensions, such as size, weight, and height (Guercini et al., 2017). The use of online virtual fitting rooms is an excellent solution for online sales as it increases customer engagement and reduces shopping risk. Online selling is a new business model that is being adopted by many well-known clothing brands today.

Simultaneously, Google Trends is a useful tool for analyzing and forecasting seasonal demand fluctuations and other fashion industry trends. According to Silva et al. (2019), Google Trends accurately determines the style and fashion preferences of various target groups, providing appropriate targeted analytics. This digital tool allows assessing a particular items popularity, such as jeans, sunglasses, waterproof watches, or bomber jackets. Besides, Google enables fashion brands to track search queries and predict purchasing decisions (Silva et al., 2019). Therefore, Google Trends creates a significant competitive advantage for companies that use this tool, allowing them to use resources more efficiently.

Moreover, Google Trends enables more accurate decisions about strategic fashion management. With the help of analytics, brands can identify seasonal demand patterns, analyze the behavior and demand for competitors products, identify opportunities for brand expansion, and the most appropriate marketing terms (Silva et al., 2019). In particular, the tool makes it possible to display the seasonality of demand for any selected product, representing changes in the demand curve. Simultaneously, it is possible to specify more extended periods to get an idea of fashion changes over the decades.

Analysis of competitors allows analyzing the demand for competitors products and assessing the adequacy of their behavior. Besides, identifying opportunities for brand expansion implies additional planning investment options in manufacturing, new product development, and marketing. Google Trends allows assessing trends for individual units of goods, groups of goods, and entire sectors in a particular industry (Silva et al., 2019). Therefore, before planning an expansion, a marketer can find out what the likelihood of a high ROI is and how successful the development will be. The demand for a particular product can gradually increase or decrease and be subject to more or less seasonal fluctuations.

Finally, using the right marketing terms or unit names can be a decisive factor in determining the demand level for that product. Changes in language and product names are usually associated with changes in sales geography (Silva et al., 2019). Therefore, Google Trends offers brands the opportunity to use the most appropriate definitions for the units or product groups they plan to bring to market. Correct use of the language is essential as, for example, the demand for the same items can be very different for the US and UK (Silva et al., 2019). Therefore, scientists recommend using Google Trends as a digital marketing tool that helps improve consumer demand.

Digital Marketing Sustainability

The primary indicator of digital marketing campaigns sustainability and reliability is the broad reach of the audience through many digital channels and creating interactive communication based on social dialogue around the brand or product. The large number and variety of digital interaction methods allow reaching various audience segments. Besides, tools such as Google Ads or Facebook Ads suggest the most detailed targeting. These tools are also indispensable when a marketer needs to analyze current trends or forecast seasonal demand (Silva et al., 2019). Various CRM tools such as Web 2.0, SEO marketing, storytelling, or influencer marketing make it possible to achieve a marketing campaigns most specific goals.

Scientists also point out many advantages of digital marketing over traditional approaches. Specifically, Rathnayaka (2018) says that the increase in internet penetration leads to an increase in audience reach to 40% of the global population. It is also noted that digital marketing techniques enable companies to have a proactive presence on web platforms, provide a 7/24 service, keep the information up to date, and provide customers with brand access and brand information (Rathnayaka, 2018). Digital marketing also makes it possible to take care of customers and brand status and is convenient in customer availability and employment.

Digital marketing sustainability in the fashion industry is ensured by improving content performance, generating revenue, competing with global brands, increasing brand reputation and credibility, and making content performance results measurable. Rathnayaka (2018) notes that there are some limitations, such as a lack of technological literacy among brand employees to fully exploit digital media capabilities, data protection issues, rapidly changing trends, and a limited budget for optimization.

Recommendations for the Future Use of Digital Marketing Tools

Given the overall success of digital marketing technologies and strategies in the fashion industry, it makes sense to discuss some aspects that will improve digital marketing campaigns. Scientists point out several vital points to consider when designing a digital marketing campaign: dialogue with customers, loyalty, promotion, awareness, and multi-channel communication (Rathnayaka, 2018). Dialogue with customers helps maintain a good brand reputation, even in critical cases. Customers loyalty is not as easy to win as in the past, so all means should be directed towards maintaining a high level of commitment. Further, the promotion should consider the markets satiety with various ads and maintain a balance between online and offline advertising based on 360 views (Rathnayaka, 2018). Besides, consumers are less inclined to self-seek product information, so brands have more freedom to present first. Finally, multi-channel communication allows increasing customer reach and not choosing between channels.

Customer relationships are the primary and ultimate goal of any marketing strategy. Scientists propose to consider three key points: ensuring customer satisfaction, a high level of service, and segmentation or targeting techniques. Noteworthy, customer satisfaction can be quickly earned by offering high-quality products and generating positive reviews (Rathnayaka, 2018). Besides, service quality still has a decisive influence on the customer experience of the brand. Further, proper segmentation allows determining customers needs more accurately. Plus, personalized services attract more customers to the brand and create emotional attachment.

It is not difficult to ensure that the above conditions are met. Still, it also requires that the company employees have the right skills, which will lead to the formation of the right customer attitude and proper company behavior in the digital market. Some of the critical skills in running a digital marketing campaign can be technical skills such as digital engineering, mathematics, statistics, analytics, and computing (Rathnayaka, 2018). These skills are needed by the marketer to analyze and predict consumer behavior and develop visualizations for statistics. Besides, personalizing customer needs requires creative skills. Finally, social communication skills are most important, as consumers expect a genuine and emotional relationship with a brand along with purchasing a high-quality product or service.

Attitude towards customers is determined by the fact that on digital platforms, consumers have the opportunity to leave both positive and negative reviews, so marketers need to maintain a positive brand image. Besides, marketers face the need to shift focus from immediate profit to forming long-term customer relationships. Finally, marketers need to have the right behaviors that reflect brand values and shape their image in the eyes of the digital shopper (Rathnayaka, 2018). The relationship between marketers and customers should happen in real-time, as this is what increases customer loyalty and creates a relationship with an element of preserved emotional connection.

Conclusion

Thus, digital marketing tools were presented, which are most successfully used by fashion brands. In particular, the benefits of Web 2.0, Google, and Facebook Ads, Google Trends were described. Marketing techniques, such as storytelling and influencer attraction, were also assessed. Fashion brand employees who work in the marketing department must have a range of technical and communication skills to use the presented techniques effectively. Besides, brand owners need to take into account that the digital and fashion markets are continually changing, as well as the way they interact with customers, and adapt to these changes, with an emphasis on consistent customer care and quality products.

References

Barone, A. (2020). Digital marketing. Web.

Barone, A. (2020). Marketing strategy. Web.

Guercini, S., Bernal, P. M., & Prentice, C. (2018). New marketing in fashion e-commerce. Journal of global fashion marketing, 9(1), 1-8.

Hargrave, M. (2019). Customer relationship management. Web.

Kenton, W. (2018). Web 2.0. Web.

Muniesa, R. L., & Giménez, C. G. (2020). The importance of the loyalty of fashion brands through digital marketing. Journal of Spatial and Organizational Dynamics, 8(3), 230-243.

Rathnayaka, U. (2018). Role of digital marketing in retail fashion industry: a synthesis of the theory and the practice. Journal of Accounting & Marketing, 7(20), 12-21.

Romo, Z. F. G., García-Medina, I., & Romero, N. P. (2017). Storytelling and social networking as tools for digital and mobile marketing of luxury fashion brands. International Journal of Interactive Mobile Technologies, 11(6), 136-149.

Silva, E. S., Hassani, H., Madsen, D. O., & Gee, L. (2019). Googling fashion: forecasting fashion consumer behaviour using google trends. Social Sciences, 8(4), 111-120.

Sudha, M., & Sheena, K. (2017). Impact of influencers in consumer decision process: the fashion industry. SCMS Journal of Indian Management, 14(3), 14-30.

Digital Marketing in Fashion Industry

Introduction

The fashion industry is one of the most competitive yet very lucrative businesses in the developed economies. According to Kingsnorth (2019), it is estimated that about 1,875 fashion retailers in North America and the European Union were forced to shut down because of their inability to sustain their operations. The projections show that about 10,000 similar outlets are set to close their operations this year because of similar reasons. It will be the worst record since the end of the Great Recession of 2008 (Peppard & Ward 2016). The trend shows how turbulent the industry is both in the developed and emerging markets. It is surprising that a report by Robertson (2018) indicates that the demand for fashion products is on an upward trajectory.

It is difficult to explain the phenomenon where the demand for products in a given market is increasing while firms in that industry are closing down their operations. The Middle East and African markets have seen a massive increase in demand for fashion products over the past two decades. Rum (2018) believes that rising globalisation, digital innovation, and changing consumer-spending patterns are some of the driving forces causing a seismic shift in this industry. A firm has to learn about these changes and redefine its operations to survive.

Despite the gloom in this industry, Robertson (2018) explains that numerous opportunities exist that a firm can tap into both in the local and international markets. It is estimated that the United States has over 17 million millionaires, while Europe has about 10 million millionaires (Kingsnorth, 2019). China, India, Japan, the Middle East, and many other parts of the world have tens of other millionaires. The statistics show that the number of superrich is growing consistently in different parts of the world. There are scores of others who may not be worth millions of dollars but capable of purchasing fashion products.

The emerging technologies in the fields of transport and communication are transforming the world into a global market, which creates the opportunity for successful firms to sell their products beyond the borders of their country. Digital marketing is offering a completely new experience for firms in the fashion retail sector to make their products available to customers. Unlike in the past when customers had to visit the brick-and-mortar stores, the online business model makes it possible for them to make their purchases by a simple click at their computers or smartphones. In this report, the researcher seeks to discuss ways in which a firm in this hyper-competitive fashion retail market can achieve success by embracing the digital marketing strategy.

Sector Review

Fashion industry remains a lucrative business for firms that understand market needs and how to deliver it in the most effective way possible. Robertson (2018) explains that online fashion sales have been growing consistently over the past decade. Traditionally, brick-and-mortar stores were effective ways of selling fashion-related products. People preferred visiting physical stores to try out a new product they want to purchase before paying for them. However, that trend is changing in modern society. The working class is one of the main consumers of fashion products. In most of the developed countries such as the United States, the United Kingdom, Germany, and France, many people are taking two jobs to make the ends meet (Robertson 2018).

Others prefer working for extra time to have the additional earnings that they can spend on luxury goods. As such, they lack the time that they can spend visiting retail outlets. Rum (2018) observes that although the brick model of business is still more dominant than click in the fashion industry, the latter is growing rapidly and may soon become the main mode of operations for retailers of this product. Figure 1 below shows the current and projected sales made in the click model in this industry. In 2019, there was a significant increase in sales within this industry, and the projections show that the growth will continue for the next three years.

Growth in the global online fashion sales.
Figure 1. Growth in the global online fashion sales (Kingsnorth 2019, p. 56).

Companies operating in this industry have been keen to adjust their operations accordingly in response to the changing market forces both locally and in the international markets. According to Kingsnorth (2019), Amazon offers a wide range of products and does not primarily focus on only fashion-related products. However, it has been setting international best practices in online trade. Its many years of operating exclusively in the online retail market and the desire to improve on its product delivery have enabled it to come up with unique ways of meeting the demand of its customers. As shown in figure 2 below, this company controls about one-quarter of the global apparel industry. The company has won the trust of its customers on various fronts.

First, it has come up with a safe payment method that protects its customers from cybercriminals. They are assured of the safety of their money during and after making such payments. Amazon has also been consistent when it comes to delivering on its promise. Customers know that they will receive the exact product they purchased within the right time and without any compromise. Other dominant players in the retail industry have emulated these best practices. Walmart is the second largest company in the online sales of fashion products. This company has years of retailing experience and has been keen on digitising its sales. Kohls, Macys, JC Penney, and Nike are also major players in the industry. Others include Gap, LL Bean, and Under Armour.

Leading global online fashion retailers
Figure 2. Leading global online fashion retailers (Robertson 2018).

The global fashion industry is turbulent, and many companies have been forced out of the market. However, Rum (2018) notes that the demand for products offered by the industry has been growing consistently with the growing global population and increasing purchasing power. As shown in figure 3 below, total online sales in the fashion industry increased from $ 253 billion in 2014 to $ 484 billion in 2018. The growth is expected to exceed $ 765 billion, as projected in the statistics. It means that in another eight years, global online sales in fashion retail will exceed $ 1 trillion. The data below also shows a growing trend of growth in the fashion industrys e-commerce.

In 2014, e-commerce share of the total fashion sales was estimated to be 14% of the total sales made in the industry. It increased to almost double, at 27% in 2018. The projections show that by 2022, 38% of the sales made in the fashion industry will be through online sales. Although brick-and-mortar model is still the best-preferred ways of selling fashion products, e-commerce is gaining momentum rapidly. The main reason why many people still visit these retail outlets is the desire to try out a new product and determine its suitability before making a purchase. The trend shows that soon, e-commerce will overtake the traditional bricks model of operation.

The growing global fashion industry e-commerce.
Figure 3. The growing global fashion industry e-commerce (Kingsnorth 2019, p. 76).

Strategic Approaches

The discussion above has shown the current trends and the growth of the global online fashion industry. In this section, the focus is to develop a digital marketing strategy for an online fashion retailer that is seeking to improve donor acquisition and retention cost effectively. In such a hyper-competitive business environment, the ability to attract and retail clients depend on the strategy that a company embraces. Bowsher (2018) argues while thousands of companies are forced out of the fashion industry every year, others are making huge profits and new entrants are achieving success despite the negative forces. It all depends on the capabilities of a firm. When developing a digital marketing strategy, the first step should be to understand specific factors that define the emerging trends and purchasing patterns of customers.

Understanding the Relationship between Fashion and Culture

One of the most important factors in the fashion industry is local cultural practices. Kingsnorth (2019) explains that although the western culture has had a significant influence on global fashion trends, one cannot ignore the impact of the local culture on this industry. What Chinese consider fashionable may not be appealing to a Briton or French. Similarly, what a South African considers trendy may not be appropriate for a Saudi Arabian. In most of the countries dominated by Muslims, women cannot wear revealing dresses popular in the west. The society has a standard dress code that women have to follow as defined by their culture. In such an environment, fashion must be based on local cultural practices. Designers have to come up with unique ways of making the dresses that are trendy for these customers while at the same time adhering to the standard practices. Peppard and Ward (2016) explain that one of the best ways of achieving a competitive advantage in such a market is integrating culture and fashion. The two cannot be looked at separately. Figure 4 below shows women embracing the haute culture fashion.

Haute culture fashion
Figure 4. Haute culture fashion (Camero 2018, p. 67).

Such a dress code may not mean much to people from the United Kingdom because they do not understand the cultural ties behind it. However, people who embrace it attach specific cultural values to it and believe that it is the best way of presenting who they are to the international community. Kingsnorth (2019) believes that different communities around the world are now keen on presenting their cultural practices through their dress code. One can easily know the religious beliefs of an Islamic woman simply through their dresses. Some African communities such as the Maasai of Kenya have also retained a standard dress code that is unique to their culture. It is important to understand the local culture in a given market and the manner in which it influences fashion. The firm should then integrate fashion and the local culture to have what customers would find appealing and acceptable.

Appropriate Strategy in the Market

According to Peppard and Ward (2016), one of the initial steps that the management of a given firm has to take in its operations in the market is to define the appropriate strategic approach that it needs to embrace as a way of achieving a competitive edge over market rivals. Porters generic strategies identify four approaches that a firm can embrace. They include cost leadership, differentiation, differentiation focus, or cost-focus. Figure 5 below shows the model. When selecting the most appropriate strategy, important factors that have to be considered include the financial capacity of a firm, specific products it is offering in the market, the purchasing power of customers, factors that define purchasing pattern in the market, and any other issue relevant to a given industry.

Porters generic strategies
Figure 5. Porters generic strategies (Rum 2018, p. 44).

The most appropriate strategy that this firm should embrace is differentiation. According to Cordon, Garcia-Mila, Ferreiro, and Caballero (2016), people tend to associate fashionable products with a given degree of class. They would be willing to sacrifice their savings to purchase a fashionable dress or shoes. As such, when a firm uses the cost leadership strategy, people would question the quality of the product. Bowsher (2018) further explains that there is a common belief in the market that cheap products have compromised quality. In the fashion industry, such an image may have devastating consequences on the ability of a firm to achieve success. Differentiation is appropriate because it focuses on what a firm can do in a unique way compared with other rivals. In this strategy, the firm focuses on meeting customers needs in a way that its rivals cannot. When a firm embraces differentiation as its preferred strategy, it would need to understand its strategic position and actions that it should take to achieve a competitive edge over its rivals as shown in figure 6 below.

Using differentiation strategy
Figure 6. Using differentiation strategy (Peppard & Ward 2016, p. 78).

Sustainable competitive advantage is one of the important strategic positions that a firm should focus on achieving. The fashion retailer will need to find a way that it can remain competitive in its operations in a given market. Another position is having a unique value. Customers visiting the retailer should have a unique experience that would make them have the desire to revisit the facility. The brand should be known to offer the best quality at reasonable prices in the market. The core-marketing message should emphasise on the unique value that the firm offers. As discussed above, this firm should embrace the message of integrating culture and fashion as a way of achieving its goals in the market. It will remind its global clients that the primary aim of the firm is not to force fashion designs popular in the west on its global market. Instead, it seeks to provide what the locals consider appropriate based on their socio-cultural values.

When using differentiation as the appropriate strategy, Kingsnorth (2019) states that the firm would need to take specific strategic actions. Disrupting the current market practice and amazing the clients would be important. In this case, this firm will focus on doing what other firms have not considered. The action should be amazing to the customers in a way that would make them want to make another purchase. The goal is to eliminate post-purchase dissonance among customers by making the entire experience memorable. The company should be remarkable in its actions. It must meet its promise to the customers at all times and avoid unnecessary delays when handling clients orders. It would be necessary for the firm to communicate its differentiated advantages to its customers. The marketing message should focus on what the firm offers differently compared with its market rivals. It would also be necessary to create a buzz. Customers should feel the presence of this firm in the market not only through its promotional messages but also through also specific actions that it takes to improve the overall experience of its customers in the market.

Personalisation in the Digital Strategy

According to Camero (2018), one of the main weaknesses of the digital marketing strategy is that the physical interaction between clients and salespersons is eliminated. Customers often value that relationship, especially the feeling that employees of a firm are understanding and helpful. Personalisation in the digital strategy is an attempt to create a memorable engagement with clients despite the fact that there will be no physical interaction. One such strategy is to identify important days in customers lives such as birthdays or important anniversaries. When the birthday for a particular customer is approaching, the firm can make an offer of a major discount as a reward to them. A text should be sent to them a day or two to their birthday, reminding them that they are considered important customers for the firm and that it would be necessary to reward them. They would be given an opportunity to buy clothes or shoes that they can wear during this important day of their lives.

The strategy would make these customers feel valued by the firm. It creates a sense of care and a personal relationship between the company and its clients. Bowsher (2018) warns that this strategy should be used with caution. For a firm to get this information, it would mean having access to personal data of customers. The information can be available on their personal information they provide to the firm when making their purchases, or in their social network pages. Some people highly value their privacy, and when they realise that the firm is mining their details without their consent, they may be upset. As such, this firm should have its own database where its customers can indicate important dates in their lives. It will be easier for the company to use information that customers provide voluntarily instead of data mined from social media or any similar sources.

Individuals responsible for making the deliveries should be trained on how to engage customers. They are the only point of contact between customers and the firm. Robertson (2018) explains that the language that these agents use is very important. They have to be respectful and show the desire to ensure that the client is satisfied. The delivery agents should know the name of each client and preferably have a picture that would enable them to identify these customers. If they manage to make a positive identification of the customer during the delivery, they should call them by their name. Phrases such as hello Mr. Gates or good morning Miss Janet can help create the desired personal relationship with the customer. They will be pleased that the agent knows them by their name. When making each delivery, these agents should not behave in a way that shows they are in a hurry. They should be willing to answer any question from the customer. In case a given client wants to unwrap the product to ensure that what is delivered is the exact product they ordered, the agent should wait and ensure that the client is satisfied.

The company should create a communication platform where it can interact with its customers, address their concerns, and understand the emerging market trends. One of these ways is to create a Facebook page. In its Facebook page, this company should discuss emerging market trends and specific features that customers would want to be adjusted in the products. Clients would be invited to discuss their experienced when using products from the company and areas they would desire to see improvements made. However, Camero (2018) warns that the firm should be careful to deal with individuals who may be intent on propagating negativity and malice for personal reasons or as a way of promoting other brands. One of the common ways is to block such individuals from the Facebook page. However, that would be an indication that the firm is not willing to address such claims. As such, the best strategy would be to expose their lies by allowing genuine customers who have had good experience to defend the firm and its image. The administrator of the page should then invite the individual to present a proof of their claims so that necessary measures can be taken

The Use of Interactive Website

In this digital strategy, this firm should go beyond having a website that can enable customers to view products and make payments. Instead, the website should be an interactive platform that online clients can use to engage representatives of the firm in case they have an issue that needs clarification. A client may be interested in finding a dress of a specific material, or a special gift for someone. In a brick-and-mortar business model, these customers can easily as store representatives to help them make an appropriate choice. However, such an opportunity is often not available in this business model. An interactive website would enable a client to get clarifications and determine the best product that would meet their needs. The live chat should be simple to use and if possible, it should be available in different languages. In many developed nations such as the United Kingdom, the United States, and many others, it is common to find cases where a significant part of the population does not speak the national language. Having alternatives such as Spanish, French, Mandarin, and Arabic may help address the language barrier.

This new firm should embrace the emerging concept of 3D website designs as a strategy that would enable it to achieve a competitive edge over its rivals. The new design makes it possible for a client to have a three-dimensional view of the product they want to purchase. Instead of taking several pictures of a product at different angles, this technology makes it possible for the client visiting the website to turn the angle of the item being views to in any desired direction. Robertson (2018) explains that this new web design is gaining popularity among advertising agencies in North America, Europe, and countries in the Far East. This company should be an early adopter of the technology to ensure that it reaps the benefits it offers.

Conclusion

The fashion industry is one of those classified as hyper-competitive and firms, which are unable to cope with the emerging trends and numerous challenges, are often forced out of the market. The projection shows that this year, about 10,000 firms in this industry may be acquired by other successful firms or simply close their operations because of the inability to cope with the forces in the market. Many have closed in the previous years because of similar reasons. Despite the negativity of the statistics in this industry, the study shows that the demand for fashion products has been increasing all over the world. It means that when a firm understands how to deliver the desired value for its customers in a way that can overcome negative forces in the market, then it would be assured of growth. This new firm should understand cultural forces in the market and then develop a digital marketing strategy that meets customers needs. The proposed strategies of differentiation and personalisation of its online operations would be appropriate in enabling this firm to achieve success.

Recommendations

The management of this company should consider the following recommendations in its digital marketing strategy:

  • A substantial amount of resources should be spent on promoting the image and brand of the firm. Customers often trust online brands, which are popular.
  • Employees responsible for delivering products after purchase should be trained on how to handle different clients based on their gender, age, race, religion, or any other demographical classification.
  • The firm should have an interactive website where clients can address their concerns when planning to make their purchases. The firm should also maintain an online presence through social media platforms.
  • The online payment system should be secure enough to avoid any cyber-attack on the firm or its clients.

Reference List

Bowsher, E 2018, Online retail sales continue to soar, Financial Times, Web.

Camero, J 2018, Growth hacking, digital strategy & business analysis in stages workbook, Cengage Learning, New York, NY.

Cordon, C, Garcia-Mila, P, Ferreiro, V T & Caballero, P 2016, Strategy is digital: how companies can use big data in the value chain, Wiley, Hoboken, NJ.

Kingsnorth, S 2019, Digital marketing strategy: an integrated approach to online marketing, Kogan Page, London.

Peppard, J & Ward, J 2016, The strategic management of information systems: building a digital strategy, Wiley, Hoboken, NJ.

Robertson, M 2018, Digital strategy: learn to transform your business for the digital age, Cengage Learning, New York, NY.

Rum, J 2018, Post with purpose: a digital strategy handbook, Lulu Com, Morrisville, NC.

Zipcar: A Comprehensive Digital Marketing Strategy

Zipcar is a great example of how marketing and sales tactics can be adjusted depending on customers changing needs. The company used to stick to two pricing models, whereas now a client can choose among three options that are different in terms of subscription duration and car models. Due to this innovation, the utilization of cars must have increased, thus, allowing the company to enjoy great positive revenue.

Moreover, Zipcar adopted a comprehensive digital marketing strategy that is designed to meet the interests of the products target audience, which primarily is young adults. Since this social group living in London is rightfully concerned with environmental footprint along with diversity and minority rights, the company integrates these areas in its marketing campaigns. However, it was not always the case, as the initial vision did not particularly focus on the ecological impact of the product. This feature was more viewed as something additional, not representing a core of a business. However, now the priorities clearly changed, and to grow successfully, Zipcar shifted its main focus to positioning itself as a responsible enterprise. Thus, postcard advertisements used before have been replaced with a smarter approach and social media platforms.

Digital Marketing Activities to Sell High-Involvement Products

The consumer decision-making process can be broken down into five stages. For organizations selling high-engagement products, these processes are more pronounced (Chaffey and Smith, 2017). The first stage involves recognizing the need for a purchase, and it is entirely based on the buyers wishes. For example, constant image advertisements for cars or the latest news from home developers keep brands heard and kept buyers informed of new offers (Kim and Chao, 2019). This type of advertising is found both on television and radio and in contextual advertising within social networks.

As soon as a person has recognized the need, they proceed to search for information. It is worth noting that on the second stage when searching for high-engagement products, aggregators and services for buying real estate or cars are fighting for the first lines, rather than the brands themselves. For example, Aalto and Zillow are popular sites for the sale and purchase of real estate in the United States, while direct advertising for residential complexes is usually outdoor and rarely distributed on the Internet (Manko, 2021). By comparison, Unilevers household chemicals are low-engagement products that use digital marketing (often television) for high brand repetition and retention; and often employ emotional arguments that are primarily excluded when buying, for example, real estate (Murphy and Murphy, 2018). In this regard, SEO, social media, in general, are excellent digital marketing tools for spreading information, including high-engagement products; however, in part, they are on the shoulders of aggregators more than companies.

Considering a specific car brand or developer, the company needs to be listed at the very beginning of the search results in a direct search. To do this, they often use the paid traffic mechanism of search engines  SEM (Ardiansyah and Sarwoko, 2020). Returning to the purchase process  having received the necessary market data, the user considers alternatives.

At the third stage, digital marketing is aimed at keeping the user on their site. First, the availability of characteristics, product and company reviews, coupled with a friendly interface that allows comparing products and quick answers to questions that arise, is the key to the companys success (Kingsnorth, 2019). Second, a client who is going to spend money should immediately express gratitude and, if he leaves the site, politely ask him to leave contacts (Tseng, 2019). Depending on the type of contact requested, usually e-mail, SMS, or social network, the company opens up another marketing channel (Smith and Zook, 2019). Here the company needs to choose a not too annoying plan for returning the client to its site.

The fourth stage of the direct purchase of the product can also create obstacles for the customer to pay. When purchasing a product, the fundamental rule for organizations is not to distract the customers from the purchase; otherwise, many aggravating factors can return them to the research stage (Smith, 2019). Here, the organization should not focus on digital marketing, and more attention should be paid to the terms of delivery, possible returns, and other useful information.

At the final stage after the purchase, especially in the case of products with high engagement, the company needs to provide the customer with support for the new product and, if available, loyalty program bonuses (Santandreu & Shurden, 2017). It is also advisable to keep in touch with current and partnership offers, and promotions unobtrusively may also be of interest to a person who has already bought a car or house. However, this option still should be considered as a limitation in digital marketing since, for example, a too frequent irritant car dealer will discourage any desire to turn to him again. Such purchases are made by people quite rarely; however, if customers again have an opportunity or need, they should not have any questions about where they will want to turn again.

Reference List

Ardiansyah, F., & Sarwoko, E. (2020) How social media marketing influences consumers purchase decision: A mediation analysis of brand awareness, JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 17(2), pp. 156-168. DOI: 10.31106/jema.v17i2.6916.

Chaffey, D., & Smith, P. R. (2017) Digital marketing excellence: planning, optimizing and integrating online marketing. London: Routledge.

Kim, R. B., & Chao, Y. (2019) Effects of brand experience, brand image and brand trust on brand building process: The case of Chinese millennial generation consumers, Journal of International Studies, 12(3). DOI: :10.14254/2071-8330.2019/12-3/1.

Kingsnorth, S. (2019) Digital Marketing Strategy: An integrated approach to online marketing, 2nd Edition. London: Kogan Page Publishers.

Manko, B. A. (2021) Teaching user-friendly web design: A case study on Zillow.com in the real estate industry, Journal of Information Technology Teaching Cases. DOI: 10.1177/20438869211002201.

Murphy, P. E., & Murphy, C. E. (2018) Sustainable Living: Unilever In Progressive Business Models (pp. 263-286). London: Palgrave Macmillan, Cham.

Santandreu, J., & Shurden, M. C. (2017) Purchase decisions for high involvement products: the new generation of buyers, Journal of Marketing Development and Competitiveness, 11(2), pp. 88-92.

Smith, K. T. (2019) Mobile advertising to Digital Natives: preferences on content, style, personalization, and functionality, Journal of Strategic Marketing, 27(1), pp. 67-80. DOI: 10.1080/0965254X.2017.1384043

Smith, P. R., & Zook, Z. (2019) Marketing communications: Integrating online and offline, customer engagement and digital technologies. London: Kogan Page Publishers.

Tseng, L.-M. (2019) How customer orientation leads to customer satisfaction: Mediating mechanisms of service workers etiquette and creativity, International Journal of Bank Marketing, 37(1), pp. 210-225. DOI: 10.1108/IJBM-10-2017-0222

Sears Companys Digital Marketing Strategies

Sears image creation using social media

Sears has been around for over 100 years. Its recent launch of social media and product placement campaign aims at appealing to a young market aged between 10 and 17 years just before they get back to school. To achieve this, Sears has collaborated with celebrities who are dominant in youth interactive marketing to emphasize their back to school message, Dont Just Go Back. Arrive (Heller, 2008). This strategy aims at engaging the targeted teen and tween demographic during the back to school period. Sears has partnered with thirteen websites to develop virtual worlds, custom animations and social networking applications that will build their online portal, Arrive Lounge. This website has exclusive products that are targeted at the teen market, as well as, interactive content from the back to school offering (Heller, 2008).

Part of the content includes Vanessa Hudgens, a famous character from a popular High School Musical Series who shops for her school attire from the Sears clothes line. The market also gets an opportunity to vote for a male castor who will shoot the last episode with Vanessa. Other efforts to engage the teen and tweens are the remix master, which allows users to make their own music videos and share them on social media, and VIP Access Cards, which give exclusive benefits to registered members (Heller, 2008). Other interactive efforts involve the redirection of partner websites such as Alloy Media, Disney, Nickelodeon, Zwinky, GoFish, Addicting Games, and Meez, to Sears messaging and back to school campaign by developing custom virtual stores, custom games and 3d avatar creators that feature Sears products, or redirecting users to the Arrival Lounge (Heller, 2008). All these social media campaigns are aimed at connecting with the tween crowd (Heller, 2008).

Clothes shopping as a family decision

One of the ways that Sears has created a family shopping experience is by introducing an exclusive shopping apparel by Todd Smith that is being promoted using LL cool J. The new line comprises a lifestyle collection that is aimed at providing family friendly and affordable clothing. The partnership intends to provide a brand that is affordable to all families through the sale of less costly items such as jeans and t-shirts. Sears attracts both male and female clients who purchase hard lines and home items respectively. The marketing efforts by sears aim at getting their customers to cross shop using Hudgens and LL Cool J to create their site content (Heller, 2008). The collaboration between Vanessa, LL Cool J and Sears is beneficial in that it appeals to their diverse customer base. This partnership represents the cross-section that Sears embodies and affordability makes the products attainable to their customers. Sears is using the celebrities to create a buzz and establish popularity to reach their audience. In addition, the online interaction of the teen and tween audience with the brand allows young girls to dress up with virtual characters. This fun shopping experience at virtual stores hopes to create a market by leading up to requests to their parents to purchase the real item (Heller, 2008).

Information search patterns

Part of the new campaign by Sears in order to increase their market share involves the establishment of a brick-and-click strategy. The marketing team for Sears understands that the success of e-commerce is dependent on product comparison whereby customers can easily compare alternative products. The design of the online store has a huge impact on attracting traffic, and subsequent sales. Sears achieves this by implementing an effective information presentation format (Nah, Lee, & Chen, 2008). The possible ways to display are vertical and horizontal disposition. While vertical disposition displays the products in columns with their descriptions in rows, horizontal disposition uses the opposite arrangement. Sears employs a vertical disposition for both its feature items and product information. According to a study conducted by Nah, Lee, and Chen (2006) on information search patterns, consumers are more likely to purchase featured items than ordinary products that are listed in a vertical disposition. The use of vertical arrangement for Sears allows its customers to sort products easily by accessing their attribute information in a similar manner as physical stores that stack similar products from various brands together for easy attribute processing. Other elements employed in the display of products include use of images to display products, and listing items in different categories based on the provision of alternatives in a matrix format (Nah, Lee, & Chen, 2008).

Effectiveness of online user communities and social networks in reaching youth demographic

The expansion of Sears marketing strategies to the online user communities and social networks was aimed at creating engagement and promoting brand loyalty to the teens and tweens by reaching them in their own environment. Two social networks used by Sears are MySears and MyKmart. They are well designed social networks for Sears products reviews with message boards, active blogs, and an idea feature that employs a voting system to submit ideas to Sears. Sears has managed to remain relevant in the digital space by providing both engaging and promotional content such as the Facebook Timeline brand pages where they share their history with patrons (Bawden-Davis, 2012). Sears also shares content through Twitter deals and community programs on YouTube to foster relationships. It has also sought to make the shopping experience easier through the introduction of mobile apps for various smart phones. According to Michael Murray, the chief marketing officer of ecommerce at SHC, the social marketing techniques are effective due to the increase in engagement rates, better performance of the company based on their shares, increased comments, more traffic to their online stores, better click-through rates, customer dialogue, and also higher revenues than before the introduction of such techniques (Bawden-Davis, 2012).

Alternative marketing strategies

Industries find it challenging to keep up with the trends and interests of the youth. Some of the products at Sears are targeted at the youth demographic, while others are aimed at appealing to the youth in order to expand their market and build loyalty. The marketing strategies used by Sears take into consideration various features of the tweens and teens. These include increased networking, which makes them tolerant to diversity, comfort with using technology, materially content and financially conservative, informed, and environmentally conscious (Brown, Freddie, Dhaliwal, & Kunto, 2011). It is challenging to build loyalty with them since they are easily influenced by trends. As such, it is necessary to renew their interest in the products through various forms of marketing besides social media. These include mobile marketing in order to converse with their audience, and word-of-mouth marketing, since teens are easily influenced by peers. Studies show that over 50% of the Americans aged between 8 and 18 years own mobile phones. While targeting 8 year olds through the phone is not tactical, most teens and tweens need their phones to be socially connected and informed. Hence, mobile marketing campaigns that employ text messages, mobile apps, gaming and location-based social networks can be successful in reaching the youth. Since youth trust each other more than they do advertisements, word of mouth can be complemented with social networks to influence the trends of the youth (Brown, Freddie, Dhaliwal, & Kunto, 2011).

References

Bawden-Davis, J. (2012). How Sears Is Reinvigorating Its Brand Online. Web.

Brown, G., Freddie, B., Dhaliwal, J., & Kunto, G. (2011). Youth Marketing Handbook. MobileYouth, 1(1), 11.

Heller, L. (2008). The hip side of Sears: Sears has rediscovered its softer side and it has an edge. License Mag, 1(1), 30-34.

Nah, F. F.H., Lee, H.-H., & Chen, L. (2008). Information Search Patterns in E-Commerce Product Comparison Services. Customer Management Science, 15(4), 533-542.

The Optifast Firms Digital Marketing Plan

Executive Summary

The advent of social media has necessitated the development of digital marketing plans. Having been in operation for many years, companies such as Optifast could take use of the digital marketing space by developing appropriate plans. As a weight loss management program, Optifast is tailored-made to all overly obese persons targeted for enrolment. Optifasts SMART objectives include rebranding social media handles, partnering with social media personalities with mass following, increasing the frequency of posting across social media platforms, and generating micro-blog posts. Using a differentiated marketing strategy, Optifast can reach out to all segments in the market. Similarly, social media influencers will be vetted and hired to fulfill the objectives of creating a larger social media footprint. With SEO optimization, Optifast will increase the reach of its digital content hence being able to recruit more people into the weight loss program.

Company Overview

Optifast refers to a patient-centered and medically supervised weight loss management program designed to monitor and keep track of ones progress in the attainment of better health outcomes. At the center of the Optifast program is a VCLD (very low calorie diet) that allows patients to eat healthy while simultaneously losing weight sustainably (Nestlé Health Science, n.d.). The Optifast program takes about 26 weeks where persons are accorded a full meal placement plan, comprehensive patient education, and support in a bid to maintain a healthy weight (Renee, 2018). More specifically, the Optifast program is designed for the highly obese patients whose direct weight loss is attached to significant health gains.

SOSTAC Model

The target market for Optifast is the highly obese patients who intend to lose weight and ear other health benefits. While implementing the Optifast program requires the guidance of a qualified health nutritionist, their services can be rendered remotely and that allows for clients to be sources from all over the world.

SOSTAC Model
Figure 1: SOSTAC Model
SWOT Analysis
Figure 2: SWOT Analysis

Situation Analysis

Table 1: Optifast SWOT Analysis

Strengths Weaknesses
  • Has been scientifically and medically proven
  • Has been in existence for a long time (developed in 1974) with proven track record (Nestlé Health Science, n.d.)
  • Since it is an intensive program, it only takes 26 weeks for tangible changes to be recorded
  • Patients develop other health gains besides weight loss and obesity prevention
  • The programs parent company Nestle USA is reputable all around the world
  • Nutritional support from health experts
  • The program recommends a diet that is too rigid
  • Most of the work (dieting and exercising) has to be done by the client rather than the company
  • It is only restricted to overly obese patients
Opportunities Threats
  • Increased importance in weight loss and healthy living
  • Increased use and importance of social media
  • Increased numbers of internet users
  • Increased prevalence of obesity around the world (Agha & Agha, 2017)
  • Development of a mobile application to make it more accessible
  • Rapid development of newer social media platforms
  • Rapid population growth especially among youths and young adults
  • Severe competition from other online-based weight loss programs
  • Serious side effects including stomach upsets, nausea, and irregular bowel movements
  • The Optifast program is expensive
  • The program is time-consuming as people require multiple clinic visits
  • Negative reviews from past clients
  • Availability of free weight loss programs online

Optifasts Market Segmentation

Market segmentation is an essential step in the formulation of advertising strategies. The principle of market segmentation is to create distinct groups within the target group or consumers that an organization has (Ananeva, 2015). Such distinctions might be as a result of purchasing behaviors, geographical location, consumer attitudes, cultural beliefs, the difference in source of income and needs. Since consumers present with unique wants and needs, it is crucial to create segments in the market. By doing so, an organization ensures it prioritizes and allocates its resources efficiently. A companys can direct its resources towards specific marketing strategies as it is aware of the different target sub-groups in its consumer market.

Essentially, it is difficult to create a digital marketing approach that satisfies the individual needs or requirements of the target market. Hence, using market segmentation an organization will create different unique marketing approaches that will suit the disparate customers. Traditional marketing segmentation categories such as psychographics, demographics and geodemographic are not as efficient as differentiating consumers based on brand loyalty, purchasing behavior and attitude (Han, 2014). Nonetheless, all these segmentation categories will be necessary in formulating Optifasts digital and social media marketing plan.

Demographic segmentation divides market into subgroups identified by factual or physical data. Demographic variables used include occupation, age, marital status, nationality, religion, race, income or family size (Camilleri, 2018). Based on demographic segmentation, Optifast targets consumers of all age groups, race, religion and nationality. Females use Optifast more than males, individuals between the ages of 15 years to 65 years that are conscious about their weight, single mothers that work two jobs and lack time to attend the gym, as well as middle-income and high-income individuals consume Optifast.

Geographic segmentation focuses on the location of the target consumers. Segmentation depends on population density, terrain, natural resources and terrain. Markets can be differentiated based on regions as one area might have specific wants as compared to the other due such factors as warm and sunny weather (Camilleri, 2018). As such, Optifast consumer market is segmented geographically on the basis that it targets customers in European countries, North America and Australia. The different geographical parameters between these places mean that they require different marketing strategies to be employed due to language differences.

Psychographic segmentation arises from differences in variables such as attitudes, interests, activities, opinions, and personality. Psychographics explain why a consumer seeks to buy certain products and not others (Camilleri, 2018). Weight watchers and fitness enthusiasts have a high purchasing power of Optifast in comparison to those who are not. Healthy diet consumers and vegetarian have a positive attitude towards using Optifast as compared to the unhealthy diet and meat consumers respectively. Individuals in the rich society who consider buying end products as an aspect of identity have a high purchasing habit of Optifast as compared to the poor.

PEST Analysis
Figure 3: PEST Analysis

Table 2: Optifast PEST Analysis

Political Economic
  • Government regulations of online weight loss programs
  • Government regulations of online promotions of health information
  • Increased tax rates
  • New regulation on health experts and licensure
  • Inflation rates that reduce disposable income and the need to invest in a weight loss program
Social Technological
  • Negative reviews left by other Optifast users
  • Education levels
  • Lifestyle changes
  • The dynamic changes in the use of online content
  • Development of better weight loss methods
  • Accessibility to internet services
  • Leakage of stored patient data

Objectives

Under the SOSTAC Model, objectives refer to the targets that an organization sets that provide it with clear direction. Objectives should be SMART, that is, specific, measurable, achievable, realistic and time-bound. In this regard, objectives concerning Optifasts digital marketing plan need to adapt to the SMART framework, thus, provide the company with concise plans on means to accomplish high sales regarding this product. It is crucial to note that digital marketing plan will also take into consideration market segmentation when developing the objectives. The objectives include:

  1. Rebrand Optifasts Facebook and Instagram page in one month
  2. Hire social media marketing personnel in three months who will post creative images and videos every day in Optifasts Instagram, Twitter and Facebook page
  3. Increase engagement at Optifast website in the next 6 months using product promotions such as refer a friend and get Optifast premium package
  4. Partner with digital influencers in Instagram, Facebook and YouTube to make reels bi-weekly using Optifast products.
  5. Increase engagement in Twitter by 60 percent using the #weightlosswithOptifast.
  6. Generate and post micro-blog posts of Optifasts past clients and their experience on using the product at the companys website on a weekly basis (Han, 2014).

Market Targeting and Strategy

After market segmentation, it is necessary that an organization be aware of the needs of these segmented markets. Customers purchasing power or attitude can only be changed if a company accurately targets into their beliefs, values, geographical location or social class. There are currently three possible marketing strategies that can be employed. They include concentrated, differentiated, and undifferentiated marketing. Through these strategies an organization can tap to consumers needs and influence their purchasing attitudes.

Undifferentiated marketing strategy uses the principle of nullifying the differences that exist in a market. Hence, it involves approaching the market with one marketing approach. The strategy is relatively affordable and helps a company save its resources (Camilleri, 2018). However, it is ineffective given the diversity there is in the market. The outcome of using this strategy is minimal, and an organization will experience negligible increment in sales (Nadube & Didia, 2018). Differentiated marketing strategy will utilize approaches that target the different segmented markets. It consists of developed individualized marketing approach for a sub-group. For this reason, an organization has to undertake extensive market research to identify the specific needs from these segments. In comparison to undifferentiated strategy, it is more costly but provides effective and specific results (Camilleri, 2018). On the other hand, concentrated marketing involves a company choosing one of the segmented markets and focusing on developing advertising strategies that target that sub-group. It is more cost-effective but it comes with the risk that an organization can face hefty losses.

Using the above Optifasts segmented framework, it is important to note that the digital and social marketing plan will also vary depending on the same. These marketing variables are also determined alongside how these populations are acquainted with technology. For example, even though Optifast targets single mothers who work two jobs or more and have less time to work out, it is possible they also have less social media interaction time. Or, many North Americans are tech savvy, thus, their population has a huge presence in the digital world as compared to Europeans. Fitness enthusiasts and healthy eaters are more likely to be drawn to digital platforms such as websites or blogs that promote exercises and healthy eating respectively. Thus, Optifasts social media and marketing plan have to take this into consideration to ensure effective targeting.

Optifast will utilize differentiated digital and social media marketing strategy. Given that Optifast has several segmented markets, differentiated strategy will provide an effective means to target consumer needs and influence their purchasing attitude towards the product. Under this strategy, the use of celebrity fitness bloggers, YouTubers and Instagram influencers to project various creative ways they incorporate Optifast will target fitness enthusiasts as well as well as consumers such as single mothers who are a potential segmented market. Given that most Europeans and North-Americans prefer online shopping, partnering with e-commerce platforms such as Amazon and eBay will be efficient in targeting such marketing.

Moreover, these geographical areas have high social media presence, thus, having ads run in Facebook, Instagram and Telegram will provide an opportunity to interact with the product. Having more posts and creative content regarding Optifast on its Facebook and Instagram page can aid in raising more clarity to consumers. Optifasts website needs to be SEO optimized to ensure that the general populations who use search engines such as Google obtain the first result of the same. The website should also be directly linked to Optifasts social media platforms so that consumers can have access to it. Posting online challenges such as whoever loses weight faster through Optifast through popular celebrities will win a gift hamper or meet a certain celebrity. So as to target middle-income population which makes up the majority of Optifasts target consumers, having consumer testimonial videos on other company media pages will aid in boosting sales. Hence, Optifast will partner with SMEs to foster awareness of these weight loss products.

Tactics and Action

Search Engine Optimization (SEO) is the first aspect that Optifast has to address. SEO is based on optimizing a companys content to ensure that search engine users can quickly access the link to the website (Amnaay, 2017). Through SEO optimization, Optifast can identify keywords which might include weight loss remedies, weight loss meal plans, high protein shakes, or healthy diet plans among others. Optimizing helps boost ease of access to Optifasts website in search engines. Ensuring ease of use of the website by using direct links to Optifast various products and their benefits as well as placing product promotions is an effective marketing strategy. Having micro-blog posts and video testimonial of clients in the website will further increase product engagement. Thus, consumers associate their ease of access and use of website with a good product, therefore, will likely purchase products from the website.

Email marketing is another digital channel that Optifast can explore. By using customer relationship management tool (CRM), a company can track the number of customers it has had over a given time, their demographics, and purchasing habits of their product (Gil-Gomez et al., 2020). CRM digital tool can be utilized to send personalized emails  after three weeks of purchasing Optifast  that contain concise and clear messages to convince them to purchase again. An example of email messages sent to customers can be, Hello Lynn, purchase two Optifast VLCD bars now and get a free purchase on your next buy. The marketing tactic works on the psychological principle that the customer will appreciate the value that the company is aware of them, hence, purchase again.

Influencer marketing is the easiest way to harness digital attention. Companies partners with specific sites, experts, or celebrities in the given field to garner attention towards their products using personalities with mass follower on social media (Chopra et al., 2021). Optifast can use the tactic of targeting websites, blogs and social media influencers that focus on healthy living. These celebrities can put forth 7 posts on their social media pages and draw their audiences towards using Optifast on a bi-weekly basis. To boost more attention to websites or blog posts, Optifast can have numerous giveaways at the community level such as in gyms and universities. Videos of these activities can be posted in different digital platforms.

Social media marketing is a highly effective marketing tactics that is employed by numerous organizations. Using Facebook, Instagram, YouTube and Twitter accounts frequently can help increase brand outreach (Amnaay, 2017). These platforms provide a means through Optifast can access and engage with a large number of their target market. Optifast will rebrand its social media pages and thus increase its posting frequency to a daily basis on all its social media networks except YouTube. The company will hire social media managers in the course of three months who will be responsible for ensuring that Optifasts pages are up to date and are interactive. Some of the engaging questions that will be used include what weird things have you done to lose weight? Or which is your best Optifast product? In twitter, the #weightlosswithOptifast will be used to invoke interaction with clients across the globe. One video will be posted on a weekly basis on Optifasts YouTube Channel depicting some aspects such as retail outlets that have the companys products on offer and people who have used Optifast and experienced results.

Control

The frequency of evaluation of the digital marketing plan will be undertaken based on objective that is being monitored. Performance of Facebook and Instagram pages will be evaluated using the insights that platforms provide on every post and will be conducted after every two weeks. An increment or decrease in engagement with the post will project the level of outreach to the target market. Twitter posts will be evaluated using the measure of the number of retweets, likes and comments an Optifast tweet has received. Moreover, post interaction alongside product interaction will be determined so as to depict whether after seeing social media posts, clients want to engage with the product by purchasing it. Optifasts website will provide a precise questionnaire to clients prior to purchasing a product on how they became aware of the product. A sample questionnaire will be, How did you know of Optifast?  Twitter, Facebook, Instagram, YouTube, Friend, Google, Blog, or Stumbled upon it. Such questions in the website will help the company aware of which social media platforms enable clients to interact with the product. If more product interaction and engagement arise from Instagram, then more emphasis will be placed on the same and changes made to the other platforms to meet the target engagement objective. Evaluation on the effect of social media influencers will be undertaken based on the number of clients that visit the website and purchase due to being influenced by celebrities. Hence, the website questionnaire will also include, Which social media influencer helped you know about Optifast? Having the statistics on this will enable the company to make informed decisions on the marketing plan changes that need to be undertaken.

Reference List

Agha, M. and Agha, R. (2017). The rising prevalence of obesity: part A: impact on public health, International Journal of Surgery: Oncology, 2(7), pp.e17.

Amnaay, C. (2017). The effectiveness of social marketing in small business performance: A case study of Central Business District, Nairobi. MBA. USIU.

Ananeva, D. (2015). Marketing plan for Aleksandra Cafe. Degree. Saimaa University of Applied Sciences.

Camilleri, M.A. (2018). Market segmentation, targeting and positioning, Travel Marketing, Tourism Economics and the Airline Product, pp. 69-83. Springer, Cham.

Chopra, A., Avhad, V. and Jaju, A.S. (2021). Influencer marketing: An exploratory study to identify antecedents of consumer behavior of millennial, Business Perspectives and Research, 9(1), pp.77-91.

Gil-Gomez, H., Guerola-Navarro, V., Oltra-Badenes, R. and Lozano-Quilis, J.A., (2020). Customer relationship management: digital transformation and sustainable business model innovation, Economic research-Ekonomska istra~ivanja, 33(1), pp.2733-2750.

Han, Y. (2014). Brand development of Chinese tea market. [ebook] University of Applied Sciences. Web.

Nadube, P.M. and Didia, J.U.D. (2018). Market targeting and strategic positioning, International Journal of Marketing Research and Management, 8(1), pp.32-45.

Nestlé Health Science, n.d. Optifast  Weight Management Program | Nestlé Health Science. [online] Nestlehealthscience.com. Web.

Renee, J. (2018). What Do You Eat for Dinner While on Optifast?. [online] Healthy Eating | SF Gate. Web.

Shake Shacks Digital Marketing Strategy and Plan

Introduction

This report presents a digital marketing strategy and plan for Shake Shack, an American regional chain of fast-food restaurants. The purpose of the report lies in developing the strategy for addressing the issues revealed during the digital marketing audit of the company. In particular, Shake Shack seemingly struggles with customer engagement and social media content variety, quality, and consistency. As a result, the company has significantly fewer subscribers and comments than a competitor like In-N-Out Burger, another regional chain in the U.S. fast-food industry.

After the social media audit, three practical recommendations for Shake Shacks digital marketing were formulated. Firstly, the company has to make its social media content more diverse and brand-oriented. Secondly, another round of social media audit should be conducted in order to improve digital marketing efficiency. Lastly, the company should create a content release schedule and adhere to it, thus solving the consistency issue. The path to fulfilling three recommendations is reflected in the sections of the digital marketing plan.

The Digital Marketing Strategy section outlines and justifies the selected strategic framework, presenting the elements that Shake Shack should enhance throughout the plans implementation. The Digital Marketing Objectives section offers a list of SMART goals that should be achieved by implementing the marketing strategy. The Digital Persona section contains a demographic, psychographic, and webographic portrait of Shake Shacks customer. The Digital Marketing Tools and Tactics section presents a digital tool optimal for accomplishing the objectives and reaching the digital persona. Finally, the Additional Considerations and Conclusion sections summarize the digital marketing plan and offer some insight into the success criteria and potential transformations in the digital marketing associated with AI and machine learning.

Likewise to the social media audit, this report relies on publicly available sources of information. For instance, the data on Shake Shacks customer persona webographics is taken from an open source rather than from corporate sources. Whereas such an approach to drafting a digital marketing plan and strategy is relatively easy and convenient, the strategy created with its assistance would likely require a correction based on the accurate corporate data.

Digital Marketing Strategy

Since Shake Shack is actively using various social media as a tool for customer attraction and retention, it seems logical to use the social media framework as a foundation of the digital marketing strategy. According to Hanlon (2019), the social media framework is based on the four key components:

  • Awareness  social media serve as a starting point for reaching potential customers, as they work significantly faster than offline marketing tools. Consequently, social media allow targeting specific customer personas and quickly raising awareness of the product;
  • Consideration  the stage where potential customers actively think about the product. Success at the consideration stage can be observed in website traffic, user engagement, messages, or mobile app downloads and installations;
  • Conversion  the stage of purchasing the product, which may occur without significant consideration in the digital environment. In the Shake Shacks case, conversion can happen via online order or a visit to a local restaurant;
  • Evangelism  the final stage, which should ideally happen once the conversion stage is over. The name of the stage points to the spread of positive feedback by satisfied customers.

After the social media audit, one can state that Shake Shack has significant issues at the consideration stage of the social media framework. The number of comments to the posts left by Shake Shacks official accounts on various platforms was consistently low. For instance, the engagement rate  the average number of likes and comments to the posts on Shake Shacks Instagram, reached only 0,1% (SpeakRJ, 2022a). In contrast, In-N-Out Burger achieved a 1,9% engagement rate (SpeakRJ, 2022b). According to SpeakRJ (2022a), an average engagement rate for an Instagram account with 100,000+ followers should reach 1,7%. A similarly worrying situation can be observed on other platforms. In the case of Twitter, the influence rate of Shake Shacks account  an average of likes, retweets, and replies by the total number of followers, is bordering 0% (SpeakRJ, 2022c). Therefore, the poor customer engagement in Shake Shacks social media is not merely an impression but a fact supported by the audit metrics.

Consequently, the digital marketing strategy should be aimed at improving customer engagement rates. The strategy must identify a digital persona of Shake Shacks customer and deploy a corresponding set of digital marketing tools effective for the engagement of such persona. In addition, a set of SMART  specific, measurable, achievable, realistic, and time-related objectives must be created in order to control the strategy implementation process. Shake Shack is likely losing in customer conversion component since the potential customers quickly become bored and disengaged. The digital marketing strategy based on the social media framework would target the weak spot in the customer journey cycle and fix the evident problem.

Digital Marketing Objectives

Since the key problem of Shake Shacks digital marketing within the social media framework is poor engagement, the digital marketing objectives should be aimed at resolving the associated issues revealed during the social media audit. In particular, the audit spotted the lack of variety, brand identity, and consistency in content posted across the platforms. Opresnik (2018) suggests using the SMART technique for setting meaningful objectives in a digital marketing plan. In the case of Shake Shack, it is possible to set the following digital marketing objectives:

  • Shake Shack will communicate brand culture and identity in social media posts. In particular, this goal will be achieved via posting photos and short videos of Shake Shacks employees, which present the companys corporate culture in a positive light. Initial target  one post per week on each of the three major platforms  Facebook, Instagram, and Twitter. The initial weekly target  200 likes and 50 comments on the new content type in total;
  • Shake Shack will increase customer engagement via interactive activities on social media. New content will include short polls and questions for the audience so that the customers can feel needed and appreciated. Poll/questions can be related to Shake Shack products, and the customers may also be given a chance to win the companys merch randomly. Initial target  one poll/question per week on each of the three major platforms  Facebook, Instagram, Twitter, and one merch giveaway a month. The initial weekly target  500 votes and 100 comments in total;
  • Shake Shack will demonstrate consistency and willingness to engage the customers by following a regular content upload schedule. New content will be posted on Facebook, Instagram, Twitter, and Tik-Tok four times a week. Depending on the news, the upload dates may be altered, but the customers will not be left without fresh content regardless of the circumstances.

These objectives may be considered modest, but the current engagement rates on Shake Shacks social media are even lower. In addition, the numbers can be adjusted depending on the actual results of the plan implementation. Opresnik (2018) advises constant testing of the social media strategy. Recording successes and failures would help understand which methods of customer engagement improvement are more effective. Moreover, since the digital environment works fast, the objectives are expected to change over time as the metrics update, and customer feedback accumulates.

Digital Persona

Selecting a proper set of digital marketing tools and tactics requires creating a digital persona. The term persona itself is rather surrealistic in the context of the digital environment. A persona is not similar to a person despite the fact that persona creation is aimed at personalizing the customer journey (de Ruyter, Keeling, and Ngo, p. 201). Therefore, one should consider the digital persona an avatar of the main target audience, a representation of the typical customers.

Each persona is based on elements that define its behavioural patterns. In this regard, a persona is not narrowed down to demographics since it takes customer needs into account (Duda, 2018). According to Hanlon (2019), there are three typical persona elements  demographics, psychographics, and webographics. Demographics represent such details as age, gender, ethnicity, income, and education of an average customer. Psychographics defines personality and emotionally-based behaviours related to buying habits. Finally, webographics demonstrate Internet usage patterns by a typical member of the target customer group (Hanlon, 2019). In Shake Shacks case, one can apply these elements to construct a digital persona and understand the potential causes of poor customer engagement.

Demographics

Demographics is one of the critical aspects of Shakes Shacks business model. Unlike many other fast-food chains which promote family leisure and offer special meals for children, Shake Shack positions itself as a more serious entity. The company relies on the adult millennial audience as the main demographic category of customers (Kim and Mauborgne, no date). Therefore, one can assume that an average Shake Shack customer is an adult person in the 25-40 years-old age range with a medium income level and at least a college education. The marital status of Shake Shacks customers may vary, but the company does not have a personalized approach for children. Overall, Shake Shack occupies a middle ground in demographics  it competes neither against big, family-friendly chains nor against premium-niche restaurants.

Psychographics

Adult millennials have been known for having specific personality traits which affect their consumer behaviour. Munsch (2021) found several distinct themes in the Millennial generations attitude to digital marketing. Most importantly, millennials tend to have a short attention span to digital communication  15 seconds on average. In addition, millennials value emotions in digital marketing, especially humour. Lastly, millennials consider the opinions of social media influencers more authentic and pay more attention to digital advertising if it includes popular music (Munsch, 2021). Shake Shack should recognize these psychographic features of the targeted customer persona and utilize them in digital marketing.

Webographics

The data on Shake Shacks customer persona webographics is quite limited. However, one can gain a certain insight from the traffic and engagement metrics of the companys official website. For instance, in March 2022, an average visit reached only 2 minutes and 13 seconds. Over 42% of the visitors viewed only one page before leaving the website. Finally, an average user viewed 4,45 pages before leaving (Similarweb, 2022). Some of these metrics were likely influenced by the author of this report, who spent many hours on Shake Shacks website and viewed almost all available pages. Otherwise, the webographics are consistent with an adult millennials digital persona, associated with a short attention span and a clear wish to get straight to business.

Digital Marketing Tools and Tactics

Considering the features of Shake Shacks primary digital persona, mobile marketing is a reasonable choice for a main digital marketing tool. Millennials tend to multitask, value influencers opinions, and have quite a short attention span; as such, mobile platforms which streamline the consumer experience have a better chance of engaging them. Mobile marketing replaces the old one size fits all approach with personalized promotions (Tong, Luo, and Xu, 2020). Adult millennials, who value their time and frequently consume content on the go, will likely be more satisfied by more targeted advertising and meaningful social media content.

One can define three effective mobile marketing tactics aimed at the adult millennial customer persona. Firstly, Shake Shack could use native mobile ads in-feed social  a format that behaves like a regular piece of content and facilitates customer engagement. Secondly, it is possible to deploy native mobile ads in-feed content within editorial fields and on news walls (Hanlon, 2019). This tactic would allow creating a match with website content without forcing the digital persona to spend extra time browsing. As such, the problem of the adult millennials short attention span would be mitigated.

Finally, Shake Shack could improve engagement via a branded mobile app that could be used to promote online loyalty programs and online ordering. This tactic would assist in spreading awareness about new products and recent events among loyal customers, who often act as word-of-mouth initiators (Patsiotis, Atik, and Perrea, 2020). In addition, the targeted digital persona would receive personalized treatment from the company, which is valuable in the modern state of digital marketing. Overall, these mobile marketing tactics would reconcile the goal of increasing customer engagement at Shake Shacks social media platforms with the previously discussed demographics, psychographics, and webographics of the adult millennial customer persona.

As the last notion, Shake Shack could deploy an auxiliary digital marketing tool content marketing. As a persona-tailored instrument, content marketing is helpful in a multitude of ways  it increases brand visibility, enhances search engine optimization (SEO), and inspires social shares (Hanlon, 2019). In this regard, content marketing would be useful for solving the issue of the relatively poor content quality and variety on Shake Shacks social media. A combination of mobile and content marketing tools should generate new customers within the prioritized digital persona and retain the current customers who might be at risk of becoming disengaged.

Additional Considerations

Success in implementing the digital marketing strategy will be measured through several metrics. The most obvious ones are the number of likes and comments under the uploads on major social media  Facebook, Twitter, Instagram and TikTok. An increase in the influence and engagement rates will show that the strategy yields positive results. In addition, Opresnik (2018) suggests looking beyond the popular metrics and evaluating more advanced ones, such as conversion rates. Shake Shack struggles in the customer engagement department, which might hinder the conversion process. Therefore, the progress in customer engagement via mobile and content marketing should be supported by improvements in conversion and financial results.

In regard to the consequences of digital transformation, such as the development of AI and machine learning technologies, one should expect rapid advancements in product personalization. Marketers already can attain in-depth insights into customer behavioural patterns due to recent developments in machine learning and deep-learning algorithms (Tong, Luo, and Xu, 2020). If Shake Shack wants to withstand the competition, adopting AI and digital learning will become necessary in the next three to five years. Otherwise, competing against the restaurant chains, which will be able to attract the customers with the convenient recommendations based on their physical movement trajectory or analyze market trends at incredible speed, would become problematic.

Finally, the spread of AI and machine learning techniques will create certain ethical concerns which must be considered. In particular, cybersecurity and the protection of customers personal information will become even more vital than today. Potential data leaks would greatly endanger both customers privacy and corporate reputation. Additionally, the companies will have to resist temptation and refrain from the excessive usage of their customers data for commercial purposes. Consequently, many business enterprises will face a choice between the utmost protection of customers security and the potential financial gains from the competitive advantage. Whereas the former path is undoubtedly right from an ethical standpoint, a danger of some companies preferring the latter option will always be a factor in the future.

Conclusion

The social media audit revealed problems with customer engagement and content variety on Shake Shacks official accounts. Given this fact, a digital media strategy based on the social media framework was developed. The strategy emphasized improvement in customer engagement rates since poor customer engagement is likely associated with lower conversion rates and subsequent financial losses. The SMART objectives for engagement improvement, digital customer persona, and digital marketing tools and tactics were chosen as the primary strategic elements.

In regard to SMART objectives, the strategy outlines three key directions. Most importantly, Shake Shack should begin communicating corporate culture and identity via uploads on official accounts. Secondly, interactive activities should become a consistent element of customer engagement. Lastly, the content uploading schedule should prevent the loss of connection with the audience. Constant monitoring of customer feedback should be implemented in order to adjust the objectives if the situation demands it.

The selected digital marketing tools are linked to the outlined customer persona  an adult millennial in the 25-40-years-old range. The people who constitute it are characterized by a short attention span, high trust in social media influencers, and the willingness to conduct business quickly. Consequently, the digital strategy deploys mobile and content marketing as the primary tools. The combination of such tactics as native mobile ads, customer engagement via the branded mobile app, and content management should generate new customers within the targeted persona and assist in retaining the current ones.

Finally, Shake Shacks should consider adopting AI and machine learning technologies in the next three to five years. The advancements in these fields can significantly improve the personalization of services, which is highly important for marketing effectiveness. However, the spread of AI and machine learning in marketing would likely result in customer security-related threats, which creates significant technical and ethical challenges for the companies. In particular, the dilemma between potential gains and customer security protection would become critical in the future of marketing.

References

de Ruyter, K., Keeling, D. I., and Ngo, L. V. (2018) When nothing is what it seems: a digital marketing research agenda, Australasian Marketing Journal (AMJ), 26(3), pp. 199-203. doi: 10.1016/j.ausmj.2018.07.003

Duda, S. (2018) Personaswho owns them, in von Gizycki, V & Elias, C.A. (eds.) Omnichannel Branding. Springer, pp. 173-191. doi: 10.1007/978-3-658-21450-0_8

Hanlon, A. (2019) Digital marketing: strategic planning & integration. Sage Publications.

Kim, C., and Mauborgne, R. (no date) How Shake Shack flipped the burger restaurant

Munsch, A. (2021) Millennial and generation Z digital marketing communication and advertising effectiveness: a qualitative exploration. Journal of Global Scholars of Marketing Science, 31(1), pp. 10-29. doi: 10.1080/21639159.2020.1808812

Opresnik, M.O. (2018) Effective social media marketing planning  how to develop a digital marketing plan, in Meiselwitz, G. (ed.) Social computing and social media. User experience and behavior. Springer International Publishing AG, pp. 333341. doi: 10.1007/978-3-319-91521-0_24

Patsiotis, A., Atik, M., and Perrea, T. (2020) The influence of m-marketing tools on consumer buying process: evidence from the dining sector, International Journal of Retail & Distribution Management, 48(10), pp. 1037-1056. doi: 10.1108/IJRDM-06-2018-0109

Similarweb. (2022) Shakeshack.com.

SpeakRJ. (2022a) Shake Shack.

SpeakRJ. (2022b) In-N-Out Burger.

SpeakRJ. (2022c) Shake Shack.

Tong, S., Luo, X., and Xu, B. (2020) Personalized mobile marketing strategies, Journal of the Academy of Marketing Science, 48(1), pp. 64-78. doi: 10.1007/s11747-019-00693-3

Appendix 1: Digital Marketing Strategy and Plan Canvas

Steps 1 and 2: Strategy and objectives

Strategy Customer Engagement Improvement (under the Social Media Framework)
Objective #1 Brand culture and identity communication. One post per week on Twitter, Facebook, and Instagram. Initial weekly target  200 likes and 50 comments on the new content type in total
Objective #2 Enhancing communication with the customers via interactive activities. One poll/question per week on each of the three major platforms  Facebook, Instagram, and Twitter, and one merch giveaway a month. Initial weekly target  500 votes and 100 comments in total
Objective #3 Increase of consistency in content uploading. New content will be released on Facebook, Instagram, Twitter, and Tik-Tok four times a week.

Step 3: Persona

Persona element Persona: Adult Millennials (25-40 years-old age range) What was the data source?
Demographics An average Shake Shack customer is an adult person in the 25-40 years age range with a medium income level and at least a college education. The marital status of Shake Shacks customers may vary, but the company does not have a personalized approach for children. Kim and Mauborgne (no date)
Psychographics Millennials tend to have a short attention span to digital communication  15 seconds on average. In addition, millennials value emotions in digital marketing, especially humour. Lastly, millennials consider the opinions of social media influencers more authentic and pay more attention to digital advertising if it includes popular music. Munsch (2021)
Webographics In March 2022, the average time of visit on Shake Shacks official website reached only 2 minutes and 13 seconds. Over 42% of the visitors viewed only one page before leaving the website. Finally, an average user viewed 4,45 pages before leaving. Similarweb (2022)

Step 4: Digital Marketing Tools

Plan: Pre-purchase, purchase and post-purchase
Digital toolbox element Objective being achieved Persona: Adult Millennials (25-40 years old)
Mobile Marketing Increase customer engagement via more effective personalization
Tactic 1: Native mobile ads in-feed social Increased engagement due to similarity with preferred social media content
Tactic 2: Native mobile ads in-feed content Additional engagement on platforms convenient for the customer persona
Tactic 3: Loyalty programs and online ordering promotion via branded mobile app Enhanced loyalty due to increased feeling of appreciation
Content Marketing Increase customer engagement via enhanced content management on social media
Tactic 1: Content variety increase Increased satisfaction with the content variety
Tactic 2: Uploading consistency increase Improved engagement since the company provides interesting content regularly.