Category: Marketing

Introduction

Even after the near-fall of the U.S. luxury-products industry in 2009, the industry continues to exhibit positive growth. The U.S. economy, although coming out of recession, is better off than it was in 2008. Jewelry companies are fighting to return to the positions of profit they enjoyed prior to 2008. Online jewelry and diamond retailers have reported an increase in sales. However, the mid-market jewelers are showing considerable hope with significant growths in this sector (Demarco, 2012).

Tiffany to launch male moisturizer

Tiffany & Co. is one of the luxury-items retailer jewelers. The company has performed well throughout the recession period. The company has a strong brand associated with romance, quality, and style. Some of its major strengths include a strong and direct selling strategy, wide variety of offerings, strong brand name, and a strong balance sheet. Tiffany & Co has a strong direct selling strategy because of its retail stores in the U.S. and abroad.

The firm has also incorporated online selling of products. The company has also been in the industry for a long thus giving it an enviable product name. The companys strong balance sheet is another major strength. In 2012, the companys asset base was worth $4.16 billion against total liabilities of $1.81 billion. The company continues to experience several weaknesses that include declining cash flow, low-profit margins, and increased scarcity of raw materials.

The company has several opportunities that it can exploit to change its fortunes. One opportunity is in the male toiletries market. Damassa, Hyder, and Wilcox (2007) asserted that there has been a new lifestyle for men to spend more on appearance and that this market continues to show huge prospects every year. This market has been very resilient to the financial climate and is set to blossom in the next couple of years. The industry has, to date, been dominated by big brands such as Unilever and Procter & Gamble. Tiffany & Co has chances of succeeding by targeting niches such as skincare and eco-friendly products. The best product to launch would be a male moisturizer that is eco-friendly. This product will also have a ready and untapped market waiting to be explored.

The expansion through online sales is another opportunity. Online shopping is now a global phenomenon, and in keeping with this trend, the firm should expand its online sales. Expanding can be achieved by launching an e-commerce website where customers can buy products online or through online promotions such as on Twitter. This would not only increase sales but also increase profit margins by reducing the operational costs. There also exists a huge opportunity in new markets such as mens fragrances and the low-end products market.

Essentially, the low-end silver styles comprise the non-gemstone, sterling silver jewelry of a $200 price. These pieces are mainly intended for younger women, an example being the open-heart Elsa Pertti necklace. This piece accounted for 30 percent of annual sales in 2007. However, Tiffany & Co continues to face threats from counterfeit goods. This is especially in the online market, where most online sales under the Tiffany & Co are normally counterfeits.

The unstable and poor economic situation in the U.S and Eurozone continues to cause worry and anxiety for the firm. The increasing rental rates in the U.S also threaten the situation as the company continues to lease stores. Increased rates mean the operating costs will rise, thus declining profit margins. The jewelry industry has several competitors, with select few firms having the brand recognition to command large portions of the market.

Whereas the market has some regional players, Tiffanys high-end reputation enables it to maintain a national and international presence. However, the firm faces stiff competition in the sale of watches where it has not been able to stake a substantial claim. It is important to note that, unlike other industries, entry into this market is very prohibitive. There is a lot of capital needed to enter the industry, thus shielding established players like Tiffany & Co from new competition. Procuring raw materials for a new player would also be difficult, given that most producers of diamonds sell it in bulk.

The luxury jewelry market has few substitutes given. However, within the industry, there are substitutes between different types of products. Tiffany & Co has established itself as the leading player in engagement rings. Mikimoto dominates the luxury pearls while Rolex leads in luxury watches. These companies pose a threat of posing competition to Tiffany & Co.s products. There are also changing symbols of luxury and exclusivity, which pose an indirect threat to Tiffany & Co. Some wealthy people will buy cars or homes as a symbol of their wealth more than they are likely to buy jewelry.

• Organizational mission:

  • Committed to the provision of high-quality luxury that will satisfy our esteemed clients.
• Performance Goals:

  • Increased sales by introducing a new product targeted for the low-end market.
  • Increased profit margins
  • Strong brand name
  • Expansion to other geographical areas.

Marketing strategy

Tiffany & Co has a strong and unique brand name. This makes it a market leader in the jewelry market both in the U.S and around the world. If the company wanted to introduce high-quality skincare products targeted at men both at the low end and high-end markets, such products would be awfully successful. Here, the broad target is men. As discussed earlier, men have experienced changing trends and are more mindful of their image. There has also been an increase in the male population across the world. For example, U.S. sales in mens toiletries reached $2,392.7 million in 2006 and continue to grow to date (McDonald and Dunbar 2013).

A metro-sexual generation of men has come up. This generation is willing to spend time and money on looks, skincare, and accessories that have hitherto been the preserve of women. Tungate (2008) noted that this explains the increase in mens magazines. It is important to consider that, in keeping up with the companys brand and exclusivity, such items should be targeted more to the high-end market with no limitation to geographical locations. However, the change in the economic situation has shrunk this market too much for it to be relied on solely. Thus, I propose that Tiffany & Co launches male moisturizers in two forms; one intended for the high-end market and different products that are affordable to the middle-income class.

Target audience

It is estimated that, by the year 2015, the total market for mens toiletries and fragrances will reach £1.10 billion in the United Kingdom. In Brazilian, the market for mens products was valued at USD 3.28 billion. In every country, including the U.S., the U.K., Italy, Spain, and even Japan, there exists such a huge market that is untapped. The benefits are immense as this provides new markets, increases the flow of money, builds the brand name, and increase profit margins for the company.

To tap this market, the company must consider opening several stores in strategic cities so as to market these products easily. With Tiffany & Co already having many stores in Japan and the U.S, it will be prudent to open in unsaturated areas such as Switzerland, Germany, and Italy. Some of the best marketing methods Tiffany can use include advertisement, direct marketing, viral marketing, and public relations.

After the identification of our target market, the next step is to segment the target market. As Tiffany & Co, we can segment first by geographical locations and then by demographic aspects of our clients. The most important is the observation of demographic variables. The luxury-items industry is quite exclusive and quiet. Thus, any attempt to make it easily accessible to everyone devalues the luster associated with the firm. On this aspect, Tiffany & Co stores should be stocked with high-end male toiletries and fragrances.

This is to serve the already tapped high-end market that is looking for exclusivity and prestige. This should serve as the most important for the long-term survival of the firm, given that any association with a lack of class will completely destroy the company. However, it is important to realize there is another huge market in the middle class that may have previously been in the highend bracket, but with the economic downturn in the U.S and Europe, cannot afford the high-end products. This market should not be ignored. The company should open new stores under a different name, such as Tiffany Men, and stock these stores exclusively with high quality but affordable male items.

This not only guarantees booming sales but also safeguards the company from the risk of losing high-end clients. It is also important to consider the age of customers in segmenting them. It is important to note the demographics in each of these countries in order to market these products effectively. For example, men above the age of sixty will tend to want mature and conservative products. However, the young men are more liberal and whose disposable income may be quite high. It is important to conduct extensive market research so that the company can be fully aware of the situation as it is and effectively market its products.

Marketing methods

After segmenting our target audience, it is important to choose a marketing method that is not only cost-effective but also helps in achieving maximum results. One method is advertising. Given the financial clout of Tiffany & Co, the company should embark on a massive advertising campaign to market its new product. In advertising, the male moisturizer is one of the many male toiletries. It should be acknowledged that men are not accustomed to buying or using many toiletries. This is especially products from companies that have traditionally produced products for women.

According to Dines and Humez (2003), the task here can be described as an initiative to market masculine products, which have hitherto been regarded as feminine. It is important to take several factors into consideration in packaging such a product. One of the factors is color. The color of a product may often enhance the qualities of product. Thus, masculine products are often packaged in black, gray, and a muted blue, unlike the feminine products that will often be in soft colors such as pink and blue. Another factor is the information provided. Given that men are less experienced in toiletries, a lot of information will be given to the male consumers as compared to their female counterparts.

The advertisement should also consider the visual pleasures evoked once it is displayed to the consumer. In our case, a male moisturizer should reference freshness and purity. The messaging should also be packaged such that it refers to the third person. This means that the majority of male toiletries is to be bought by females for their male partners. Finally, the advertising should take into account the racial sensitivity issues given Tiffany & Co products would be marketed to different racial and cultural areas. Thus, each region should be given a suitable advertisement plan that suits it favorably.

Effective marketing also involves product branding and pricing. Given the two target groups, one in the high-end market and another in the middle-class market, the products should be priced and packaged to suit these two groups.

For the high-end market, the price consideration is rarely an issue. As such, the product should be set at a high price in the range of $2000 to $4000. Among the middle-class market, the product price should be affordable in the range between $150 and $600. The two products should be distinctively packaged and stocked in different stores, with the high-end product in the traditional Tiffany & Co store while the middle-class product is stocked in exclusively-male stores

The use of male celebrities to advertise comes up. In an era where people see celebrities as role models, getting these celebrities to market our products would be immensely productive. Research has shown celebrity advertising to be highly effective, especially on skin products. In the U.K., there are several icons that could help market these products. They include masculine actors such as Daniel Craig of the James Bond phenomenon, musicians, and footballers such as David Beckham.

Viral marketing is also one key strategy that should not be overlooked. Given the geographical segmentation of Tiffany & Co clientele, an online marketing strategy helps reach the global village that the world has become in a short while, thus saving time and resources. This may include podcasts, discounts for online shoppers, promotional campaigns on social media platforms such as Twitter and Facebook.

Summary

The launch of a male moisturizer at Tiffany & Co is a feasible plan. However, its success will largely rely on an effective execution plan by the company. To execute the plan effectively, Tiffany & Co needs to invest more time and resources in market research to get more accurate information on demographic factors such as disposable incomes in every targeted age-group, as well as in every country. The company will also need good public relations machinery as it seeks to enter new markets. It is prudent that, for the purposes of launching this new male moisturizer, the company should consider hiring a Public Relations firm.

This will be critical in helping the company mount an effective marketing strategy. Given the many stores, the company has opened, distribution of these products will be an easy affair. However, the company should continue opening stores in unsaturated markets.

References

Damassa, S., Hyder, Z. and Wilcox, J. (2007). Strategic Report for Tiffany & Company. Web.

Dines, G., & Humez, J. M. M. (2003). Gender, race, and class in media: A text-reader. Thousand Oaks: Sage.

McDonald, M., & Dunbar, I. (2013). Market segmentation: How to do it, how to profit from it. Chichester: John Wiley & Sons.

Tungate, M. (2008). Branded male: Marketing to men. London: Kogan Page.

Introduction

Walmart has 282 units in Canada, and it faces enormous competition from various nations and contenders. The strongest competitors are Kmart, Target, ShopKo retail chains, Costco Wholesale, Meijer and BJs discount. Numerous other more modest retailers target a little market specialty that can likewise contend with Walmart utilizing specialization methodologies.

Competitor Bench

In online market, clients set aside cash by spending low expenses to purchase items and administrations from Walmart contrasted with similar items and administrations of Tesco, D-shop, and Amazon. Walmart is occupied with conflict with Amazon in the web-based business market in expanding the stock of things on the site (Pandey et al., 2021). Target and Walmart permit buyers to check the stock accessibility of a specific item at neighborhood stores. IKEA is a popular place for Canadian people to search for home décor and garden essential with higher quality products that Walmart. However, it has much higher prices than Walmart. Costco is the best known for its discount markets not only in Canada but also globally, whereas Walmart is situated in North and South America. Your Canada Drug Store is a famous drugstore which sells wider range of drugs in comparison to Walmarts small variability.

Porters Five Forces Model

Threat of Substitutes

There are some different retailers that contend forcefully against Walmart by work in specific items or selling their items online worldwide just as there are some non-concentrated however manage wide fury which can be found in another store offered by Walmart. The retailers those offer special items having unmistakable advantage over contenders.

Threat of New Entrants

New rivals in the field E-trade and M-business are significant danger for Walmart however Amazon is driving in this online business. There is a pattern of diminishing number of autonomous retailers, most of retail locations are shopping center and corporate retailers. As there is no obstruction to fire up a store in USA, Walmart has the danger coming from new contestants.

Industry Rivalry

Walmart has been confronting contest in various nations where direct rivalry comes from large retailer chains. Despite Kroger and Target, others have additionally worldwide tasks which make culmination in unfamiliar nations as well (Pandey et al., 2021). After Walmart, Target is the biggest retailer that convey markdown merchandise with top caliber and greater item assortment which draws in major league salary clients and creates higher incomes.

Bargaining Power of Customers

The purchasers can place Walmart under tension in the domain where it works. Clients overall if request excellent items at low costs, it makes Walmart adjust to their assumptions and it considers its clients as incredible force as they have numerous options from where they can purchase and have adequate data that implies at the point when they purchase, they can check costs from various stores.

Bargaining Power of Suppliers

As Walmart is huge in size, providers have little force against this organization for dread of losing incredible deals hence it can leave little provider. This works with Walmart to push the provider to be more proficient, lower costs and more helpful for clients. Occasionally it treats its provider that is viewed as uncalled for as in does not lead them to raise their benefits.

SWOT Analysis for the Walmart Global Marketing and Online Business in Canada

Reference

Pandey, R., D, D., Jayant, J., Vashishth, K., Nikhil, N., Qi, T. J., Kee, D. M., Mei, T. C., Xin, R. Y., & Qhi, L. Y. (2021). Factors influencing organization success: A case study of walmart. International Journal of Tourism and Hospitality in Asia Pasific, 4(2), 112123.

If youre about to write a paper on Colgate marketing strategy, check out our sample! Here, youll find information about marketing mix of Colgate, the companys campaigns, positioning, branding, and other aspects.

Introduction

A marketing plan is a comprehensive document that covers an organizations product promotion efforts for a given year. The establishment of a marketing plan is essential for any given business since it is one of the strategies that bolster competitiveness (Basch et al. 2013). Both small and large companies maintain a marketing plan that guides the policies aimed at promoting the sales of their products or services. Usually, organizations refer to their marketing plan at least once a month or quarterly. Keeping track of the progress regarding the marketing aspect of operations is useful since it facilitates an evaluation of the failures and successes attained. Importantly, the key stakeholders in a company need to be aware of the marketing strategy applied. Knowledge of the marketing plan ensures that the stakeholders make significant and realistic inputs that influence the strategies positively (Rampier 2012).

Established by William Colgate in 1806, the Colgate Company has been applying strategic marketing plans over the years to foster the competitiveness of its mouthwash and oral care products. The introduction of oral care products occurred in 1873 (Berger 2010). The current market situation places Colgates products as one of the most-sought after compared to its rivals such as Pepsodent, Close-up, and Dabur. Thus, carrying out a SWOT analysis of the product is essential for assessing the performance of the companys marketing plan over the period that it has been in operation. Further, evaluating the goals and objectives of Colgate would provide a better understanding of the factors that promote or undermine the companys success. The marketing mix applied by Colgate is worth analyzing to understand how it manages the aspects of its product, place, price, and promotion. Therefore, this paper focuses on Colgates marketing plan investigating the areas of the current market situation, market analysis, objectives, and goals of the marketing strategies employed.

Current Market Situation

The current market conditions place Colgate as a trusted oral care and mouthwash product offered to customers in various regions around the globe. The Colgate brand incorporates an array of oral hygiene products including mouthwashes, toothpaste, and dental floss (Singh 2012). As noted earlier, the launching of oral health products occurred one and a half decades after the death of the founder, William Colgate. Therefore, the Colgate brand has been on the market for at least 144 years.

Colgate applies an effective market segmentation strategy that enables it to meet the needs of customers from different backgrounds. Market segmentation refers to the subdivision of a companys market base to facilitate research on the needs of the various groups it serves with products or services. In this respect, Colgate currently applies different segmentation approaches covering the aspects of demographics, psychographics, and behavior (Basch & Rajan 2014). The demographic segmentation allows Colgate to sell toothpaste to both the adult and children categories. For the case of adults, it sells several brands of toothpaste that meet the needs such as teeth whitening and reducing sensitivity (Byron 2011).

On the other hand, Colgate has split the kids market into four age groups that include 0-2, 2-5, 5-8, and 8-12 years. Colgate provides the 0-2 years group with toothpaste that is devoid of fluoride components to prevent damaging the developing teeth. The company also serves the 8-12 years category with transition toothpaste as they advance to adulthood (Basch & Rajan 2014). The psychographic and psychological aspects of segmentation that Colgate employs focus on the personality, values, and lifestyles of the consumers. The toothpaste sold to these segments depends on the needs of the customers as well as their background.

Colgates main competitor is Pepsodent. Pepsodent enjoys a swift distribution channel provided by HUL as it seeks to penetrate the markets dominated by Colgate. However, Colgates brand value gives it an edge over Pepsodent and other competitors including Close-up and Dabur (Berger 2010). However, to boost competition, Colgate has improved its distribution networks in the recent past as denoted by the accessibility of its products in at least 200 countries.

SWOT Analysis for Colgate Marketing Strategy

Undoubtedly, an array of internal and external factors affect the performance of Colgates marketing strategies. Thus, the integration of a SWOT analysis is useful for the sake of understanding its strengths, weaknesses, opportunities, and threats. The strengths and weaknesses denote the internal marketing factors whereas the opportunities and threats comprise of the external factors.

Strengths

Colgate enjoys a profound brand recall and visibility, making it a household name in the fast-moving consumer goods (FMCG) sector. Further, Colgate has a broad product line ranging from oral care to pet nutrition that promotes the lowering of the costs incurred in logistics (Berger 2010). The wide distribution web used by Colgate makes its supply chain efficiency and thus, fosters the availability of toothpaste in both rural and urban markets. The healthy financial status of the company built for over two centuries gives Colgate an edge over rivals such as HUL in fostering the efficiency of its marketing strategies (Bhasin 2016a). Moreover, the substantial market share of Colgate in various regions makes it continue leading the pack in the FMCG industry.

Weaknesses

The saturated toothpaste market undermines a greater expansion of Colgates market share as rivals offer similar products in various markets. The market has commoditized the Colgate brand implying that players use it to promote their toothpaste products (Singh 2012). Ineffective cost controls have seen the company struggle to make profits without hiking its prices thereby, giving rivals an opportunity to capitalize. Further, Colgate offers limited brands in different market segments compared to its competitors thus, providing an opportunity for rival companies to make strategic moves to fill the gaps left (Bhasin 2016a).

Opportunities

Colgate can broaden its product line in the different market segments in a way that would meet the unique needs of customers thereby, improving the sales (Byron 2011). An improvement of its distribution channel to offer products in the rural market would go a long way towards beating the saturation issue it faces in the FMCG sector. Mergers and acquisitions would also reinforce the marketing strategies of the company by expanding the companys operations in new markets (Bhasin 2016a). Additionally, communicating the usage rate of toothpaste in its promotional engagement would be useful in predicting the timing aspect of marketing.

Threats

Intensified competition has made it difficult for customers to differentiate the products offered by Colgate from those provided by competitors. Further, counterfeit toothpaste has damaged Colgates brand image (Bhasin 2016a). Small profit margins also undermine the sustainability of the companys marketing strategies. The heightening cost of materials forces Colgate to increase prices which could prompt customers to look for similar products that go at lower prices (Berger 2010). Further, ethical issues arising from the animal testing allegation made against Colgate could tarnish the companys image (Basch et al. 2013). The diversified oral care industry triggers various brand switching behaviors among consumers thereby affecting the consistency of Colgates marketing outcomes.

The Objectives of Colgate Toothpaste Marketing Strategy

Colgate has several targets and goals for its sales volume, market share, and profit. The company seeks to bolster the growth of its declining sales volume in the toothpaste business and thus, promote financial stability. To realize this, Colgate needs to surpass $16.034 trillion net sales globally achieved in 2015, a lower figure compared to the $17.3 trillion recorded in 2014 (Colgate-Palmolive: 2015 Annual Report 2016).

Currently, Colgate boasts of a significant 55% of the market share in the oral care sector. Its competitors including HUL and Dabur claim 21% and 14% of the market share respectively (Colgate-Palmolive: 2015 Annual Report 2016). Thus, creating a marketing plan that would yield a 2% growth of the market share would be highly commendable. The goal of the company is to dominate the sector by gaining a substantial market share in the global toothpaste markets.

The 2014 and 2015 financial years realized insignificant profit growth for Colgate denoted by the 20.6% and 17.4% profit margins respectively (Colgate-Palmolive: 2015 Annual Report 2016). Thus, achieving a profit margin of 20% in the subsequent financial years would be healthy. Colgate upholds the goal of realizing global growth and economic development would be an indication of securing the target.

Marketing Mix of Colgate

Evidently, the Colgate brand is one of the most successful in the globe as over half of the worlds households purchase the companys toothpaste products. In this light, the marketing mix of the business is very successful owing to the reputation of the brand. Thus, analyzing the 4Ps of the brand is relevant for the sake of understanding the aspects of the product, place, price, and promotion. The presence of the brand in over 200 countries suggests that the management of the company ensures that the customers can access the product easily and at affordable prices (Bhasin 2016a). The product promotional efforts also showcase success owing to the growing market share of the companys products globally.

Product

The Colgate brand concentrates on a broad range of goods associated with oral hygiene. The company offers several varieties of toothpaste to almost every group of customers situated in over 200 countries (Bhasin 2016b). The company has also introduced products that meet the oral hygiene needs of children thereby, showing the comprehensiveness of Colgates marketing strategies. The Colgate kitty of products is complemented by toothbrushes that have soft bristles capable of reaching every nook of the mouth to combat germs and tooth decay (Berger 2010).

Besides the toothbrush, Colgate also offers mouthwash and toothpowder as one of its conventional products. The two products serve different categories of the companys target market. Providing the products to various customer segments is a marketing strategy that seeks to fulfill the dynamic and unique needs of its customers (Berger 2010). For instance, people experiencing oral issues such as bad breath find the mouthwash as useful in cleaning their mouth.

Importantly, Colgate aims at providing products that enhance dental hygiene successfully (Bhasin 2016a). Hence, the toothpaste contains abrasive components including fluoride that facilitates the removal of the plaque from the teeth. Further, the materials used to make the toothpaste polish the surface of the teeth satisfactorily by removing the hidden food stains.

Currently, Colgate serves the market with at least 13 toothpaste products (Berger 2010). The products meet the needs of customers in various ways including the cavity protection, plaque and gingivitis protection, and offering extended duration of fresh breath. Additionally, the products relieve sensitivity, strengthen the enamel, whiten teeth, and control tartar (Bhasin 2016b). The solutions offered by the product win the confidence of the customers hence, creating an appealing brand image.

Place

The uniqueness of the strategies applied by Colgate contributes to its exceptional performance in the market. The companys products are readily available in different regions (Basch et al. 2013). The company has a streamlined supply management system that allows the manufacture and delivery of the products to suppliers. The companys stable distribution channels are accountable for the creation of new customer bases and the maintenance of the interests and expectations of regular customers.

Colgate liaises with dental stores that facilitate the accessibility of its products in different areas (Bhasin 2016b). The availability of the products in almost all the retail stores, departmental stores, and supermarkets accounts for the high sales made by Colgate. Customers in the rural, semi-rural, and urban markets can access the products without challenges (Rampier 2012). Moreover, Colgate uses various online platforms to foster the accessibility of its products. A single click allows customers to visit the companys website and other online shopping portals to order for a variety of Colgates products (Berger 2010). The move has made it convenient for customers by saving them shopping time. The accessibility of the products offered by Colgate makes the company the only one to find in over half of the worlds households. It signifies the efficiency of its marketing strategies (Colgate-Palmolive: 2015 Annual Report 2016).

Price

Colgate observes a competitive pricing policy primarily, for its toothpaste products since they account for the companys mainstream offerings (Bhasin 2016a). The company sells its products at prices that are comparable to those of competitors or slightly high. The pricing strategy seeks to alter the psychology of the customers to the companys benefit by underlining the positive and sustainable advantages of using its products.

The additional cost that the customers incur for purchasing Colgates toothpaste is insignificant compared to the effectiveness of the products in improving their oral health (Bhasin 2016b). The company also prices its unique products varyingly to meet the purchasing power of different sections of its customer base. For instance, due to its extra whitening capabilities, the marketing team prices the Visible White toothpaste highly compared to Max Fresh, which provides regular dental care (Berger 2010). Furthermore, the company adjusts its prices reasonably to avoid exerting a substantial financial burden to customers thus, sustain its customer base (Berger 2010. P. 21).

Colgate Company packages its products in a range of sizes to reinforce the attractiveness aspect of marketing. The 50g, 100g, 200g, and 500g packs have different prices that ensure the affordability of the products to customers with diverse backgrounds (Basch et al. 2013). The company also offers additional quantities to customers as part of its product promotion strategies (Bhasin 2016b). The pricing strategy has been integral in bolstering the sales figures that result in the generation of high revenues.

Promotion

The Colgate brand has earned its reputation thanks to attractive packing as well as innovative advertising. The use of red color as the standard packaging shade makes the appearance of products synonymous with the companys brand when one sees them on the shelves (Berger 2010). The beautiful in-store arrangements are useful in reinforcing the promotional aspects of the brand.

The establishment of several advertising policies enables Colgate to promote its products through different platforms. The objective of the companys promotion is to increase sales volume, win new customers, and enlighten clients on the benefits of its products. Colgate uses a communication mix that comprises electronic media platforms such as radio and television as well as print media like magazines and newspapers to achieve these objectives. It also uses billboards and hoardings to promote toothpaste brands (Basch et al. 2013). The popularity of the internet to both the customers and the company has made it a strategic product promotion platform that heightens the companys revenues (Wilken & Sinclair 2011).

Colgate provides valuable information to customers via its website. The information provided promotes the product by detailing the benefits of trying them. Further, the social media accounts that Colgate manages such as Twitter, Facebook, and MySpace create an interactive platform where the company can get customer feedbacks regarding its products (Bhasin 2016b).

Conclusion

Colgate has adopted an efficient marketing plan that is accountable for its dominance in the FMCG sector. The high brand image created by effective marketing strategies has reinforced the companys competitive edge against HUL and Dabur. However, the company needs to broaden its product line to fulfill the needs of the different market segments. Further, penetrating the emerging markets in developing countries would be a strategic move that would bolster the realization of its target sales, market share, and profits.

Reference List

Basch, C & Rajan, S 2014, Marketing strategies and warning labels on childrens toothpaste, American Dental Hygienists Association, vol. 88, no. 5, pp. 316-319.

Basch, C, Hammond, R, Guinta, A, Rajan, S & Basch, C 2013, Advertising of toothpaste in parenting magazines, Journal of community health, vol. 38, no. 5, pp. 911-914.

Berger, A 2010, A strategic analysis of Colgate´ s toothpaste product line, GRIN Verla, Munich.

Bhasin, H 2016a, Marketing mix of Colgate, Web.

Bhasin, H 2016b, SWOT analysis of Colgate, Web.

Byron, E 2011, Whitens, brightens and confuses, Wall Street Journal, vol. 44, no. 138, pp. 465-491.

Colgate-Palmolive: 2015 Annual Report 2016, Web.

Rampier, M 2012, Sales promotion of fast moving consumer goods, International Journal of Logistics & Supply Chain Management Perspectives, vol. 1, no. 1, pp. 59-67.

Singh, S 2012, Branding scenario in the Indian marketplace: a study of select global, national & retailers FMCG brands, The Business & Management Review, vol. 2, no. 1, pp. 88-99.

Wilken, R & Sinclair, J 2011, Global marketing communications and strategic regionalism, Globalizations, vol. 8, no. 1, pp. 1-15.

Canada Goose marketing strategy is closely related to its advertising. This essay analyzes the luxury brands marketing plan and suggests some strategies regarding Canada Goose target market.

Executive Summary

Canada Goose is a large producer of premium-class winter, autumn, and springtime clothes in Canada. Its production facilities include eight manufacturing plants, six retail shops, and over 1000 employees. Its yearly revenues exceed 300 million dollars annually (Bloomberg, 2019). The company has a stable position in the Canadian and the US markets but is experiencing trouble expanding to the European market due to high competition and to the Asia-Pacific markets due to the threat of counterfeit products.

It also has issues with the ecological community due to allegations of animal abuse and mistreatment. The companys marketing and advertising strategies include traditional marketing, word-of-mouth advertising, and relationship establishment. The company should refocus its attention from Baby Boomers and Gen X customers towards Millennials, who now comprise most of the workforce.

Company Background

Canada Goose Holdings is a Canadian company specializing in all kinds of winter clothes, from jackets and parkas to vests, hats, gloves, and other warm apparel suited for cold weather. The company was created in 1957 by Sam Tick and specialized in selling vests, raincoats, and uniforms for snowmobile driving and other outdoor apparel (Bloomberg, 2019). The companys initial name was Metro, but it was changed to Snow Goose as the company expanded its sales across Canada in 1985. The rebranding into Canada Goose happened in the 1990s when the company decided to go global, and the copyright claim for the Snow Goose name belonged to a different European company (Bloomberg, 2019).

As it stands, the company operates six retail stores and eight production facilities throughout Canada (Bloomberg, 2019). Canada Goose Holdings caters to all customers in the premium outdoor apparel sector, including men, women, teens, children, and infants. The two primary methods of selling merchandise include wholesale and direct supply. Canada Goose provides its products to retail stores and distributors in 38 countries and reaches out directly to customers across the globe via e-commerce (Bloomberg, 2019). Recently, Canada Goose began the exploration of the Japanese market by establishing a partner-operated retail location in Tokyo.

The company specializes in high-end outerwear, with major product lines including parkas, traveling jackets, shells, vests, knitted products, and accessories. Different products are suited for winter, spring, and autumn seasons. Canada Goose does not have a dedicated summer-wear operation. The premium class of the products is ensured by using expensive materials, such as duck-down insulation and coyote fur. In contrast, economy-class products utilize feather mulch, dog fur, and cat fur, which have lower status and weaker heat preservation properties.

The company has plenty of competition in the premium outwear clothing segment, the most frequently-mentioned rivals being the Parajumpers, Woolrich, and Moncler. Of these three, the Italian Moncler is the largest and strongest competitor, with over 1,4 billion dollars in revenue. Canada Goose, Parajumpers, and Woolrich stand at approximately equal footing, with circa 300 million yearly revenues each (Bloomberg, 2019). Nevertheless, Canada Goose has a firm footing in its home country since Parajumpers and Woolrich are US-based companies, and Moncler is a European company. To summarize, Canada Goose is a well-established brand that achieved partial globalization and has steady and positive revenues. However, it struggles to expand its reach beyond the established markets due to high competition and high risks of counterfeiting.

Market Analysis

Segmentation and Expected Growth

Overall sales in the clothing and fashion industry are down in all major markets worldwide. The US clothes market, one of the largest and wealthiest in customer buying parity, reports a 4% decrease in overall sales (Chen, 2018). At the same time, outdoor apparel is the only segment in the industry that claims steady growth, defying the overall trends with a 2% increase in sales. Sports outwear, and weather-resistant clothes segments show even higher growth, with a 3.2% increase in sales in 2018 (Chen, 2018). It bodes well for Canada Goose, as their respective segment of luxurious outdoor apparel is also growing.

The total market in the US alone for active apparel has been up to 48 billion dollars (Chen, 2018). Out of this number, around 12 billion dollars are held by luxury outdoor apparel, with an estimated growth to nearly 20 billion by 2026 (Transparency Market Research, 2018). Canada Goose and its direct competitors, such as Parajumpers, Woolrich, Moncler, and others, make up the top 10 clothes producers in the West.

Trends

There are five market trends currently influencing the luxury outdoor apparel sector, which are as follows:

• Millennials as the primary market consumers. The markets emphasis has shifted from Baby Boomers and Generation X to Millennials and Gen Z, which comprise over 75% of the current workforce (Bethune, n.d.). At the same time, they are the primary consumers of outdoor clothing for all marketing segments, including the premium segment. They are characterized by an increased appreciation of brands, higher levels of independence, and a conscious attitude toward businesses, politics, and the environment. They are also avid Internet users, making significant shifts in the traditional advertising and branding strategies that most companies have used for the past 19 years.
• Cause-driven companies are at an advantage. This trend has a connection with millennials being the new driving consumer force in the market. Issues like equality, exploitation, ecology, and corporate social responsibility are important factors that attract customers to brands (Grodzki et al., 2018). This factor impacts premium outdoor brands like Canada Goose, as their production involves consuming natural resources and animal materials (feathers, fur, etc.). Therefore, companies need to learn to balance authenticity with eco-friendliness. The issues of equality and exploitation are driving production values home as customers become increasingly aware of unlawful and unethical practices of employing labor in 3rd-world countries to produce luxury items for the West.
• A new definition of outdoors. For decades, outdoor goods were primarily associated with winterwear and protection from the snow. However, the advances of the 21st century made it easier for individuals to travel and explore, significantly increasing the potential for outdoor activities (Bethune, n.d.). The new definition of quality outdoor wear includes durability, versatility, and a healthy amount of customization options to enable the wearers to express themselves. Thus, the requirements for outdoor products now include weathering different environments while retaining their good looks and uniqueness of design.
• Urban = Outdoors. Many producers associate the great outdoors with hiking and nature. At the same time, the majority of customers describe themselves as soft outdoors type, meaning that while they enjoy an occasional hiking trip outside of the city, the majority of times, they will wear outdoor products while going about their daily lives in an urban environment (Bethune, n.d.). It places additional requirements for materials, appearance, and functionality of the design.
• Bloggers and Internet celebrities are the new idols. The influence of athletes and regular media celebrities in advertising is fading (Bethune, n.d.). Although each famous media persona can lend a more significant amount of exposure than a hundred regular bloggers, the sheer number and influence of internet personas on the market are much stronger. Millennials enjoy the practical application of goods, honesty, and connection they get from watching streams, subscribing to Instagram posts, and reading blogs more than they do from paid celebrities doing advertisements.

SWOT Analysis

SWOT analysis is a universal technique implemented in small-scale and large-scale strategic planning, which could help identify Canada Gooses key strengths, weaknesses, opportunities, and threats instead of a potential expansion to other markets (Phadermrod et al., 2019). It helps to specify the objectives in connection with various internal and external factors that could prove beneficial and detrimental to accomplishing corporate development and marketing goals (Kotler et al., 2013). SWOT analysis of Canada Goose is as follows:

As it is possible to see, Canada Goose has a solid home customer and production base (Brydges & Hracs, 2018). Its positioning in the domestic market is dominant, with the company being one of the largest Canadian brands. Besides, most materials required for premium-class outerwear production can be found at home. The company has a history of healthy working relationships with several indigenous suppliers, ensuring the highest material quality standards. Combining these strengths enables Canada Goose to create a solid competitive product.

The companys weaknesses revolve around various legal regulations on the fur and skin trade and the limiting business model of selling premium-class goods. Not everyone is capable of affording a 1000$ winter coat, meaning that a large number of customers in the low and middle class are effectively barred from buying from Canada Goose by the steep price ceiling, which is the price to pay for being a premium brand (Brydges & Hracs, 2018). Lastly, the company primarily serves North American and European markets, meaning that any venture outside the comfort zone will take much work.

Canada Goose has several opportunities for increasing its revenues, brand exposure, and market share. The first potential solution is to expand into the summer clothes category and create premium products for high-humidity and temperature environments. These garments would not only attract additional market share but enable the company to expand into previously inaccessible due to climatic conditions markets, like Africa and the Middle East. Countries of the Gulf Cooperation Council (GCC) are among some of the most high-paying markets for premium and luxury items.

Additional opportunities lie in providing goods to large markets in Eastern Europe and Asia, such as China and Russia, which are known for harsh weather, especially in the Northern provinces of either country. Lastly, the globalization of commerce allows Canada Goose to expand into distant markets without having to set up brick-and-mortar shops, deliver goods to customers directly, and use e-shops to reach customers.

Canada Goose should be wary of threats that may diminish its presence in the market. The greatest threat is coming from counterfeit goods made in China. Since the companys brand name relies on premium prices and quality to maintain its image, the apparition of fake, cheap lookalikes will reduce sales and detract customers from the company (Brydges & Hracs, 2018). The ecological side of production is also an issue for Canada Goose, as it has a long-standing enmity with PETA due to the allegations of animal cruelty. Lastly, the company should guard against brand dilution by selling its goods in multi-brand retail stores where the products will not stand out.

PESTLE Analysis

A PESTEL analysis is a valuable external market analysis tool that allows companies to outline and monitor macroeconomic factors that would impact the organizations market performance (Aithal, 2017). While the tool does not offer direct insights into the internal state of the organization, it allows one to evaluate the chances of a successful product launch when entering a foreign market (Aithal, 2017). Canada Goose would benefit from conducting a PESTEL analysis before committing to brand globalization. Below is a PESTEL analysis for the company:

• Political. The company faces internal political opposition from parties against animal cruelty. Disclosure of the details behind animal slaughter for producing high-quality winter garments can force the local government to pressure the company (Hu et al., 2018). External political factors include the threats of state-protected competition in emerging markets, such as China.
• Economic. The economic situation for Canada Goose is beneficial. The market for premium outdoor goods has been steadily growing even despite the overall decline in the clothing and fashion industry. The company maintains stable growth and has beneficial economic prospects ahead of it.
• Social. The company experiences social tension due to its aggressive acquisition of native animal farms, pushing out smaller businesses in rural communities (Hu et al., 2018). Besides, several scandals have revolved around improper ways of collecting animal material for clothes.
• Technological. The technology surrounding the creation of outdoor wear is moving slowly. Although small innovations are being made, especially in the choice of materials, clothes are similar to how they were ten or twenty years ago. Nevertheless, Canada Goose can benefit from developing and utilizing materials with better insulation, thermal resistance, and tensile strength.
• Ecological. Canada Goose has major issues with its ecological imprint. The company utilizes coyote fur for its trimmings, while certain species of coyotes are endangered in Canada and the US. Its confrontation with PETA also resulted in several lawsuits, tarnishing the companys reputation and labeling it ecologically unfriendly (Hu et al., 2018). Canada Goose should invest in minimizing its impact on the local ecosystem.
• Legal. The use of fur and skin in outwear products is associated with numerous legal obstacles towards the treatment and harvesting of animals. Also, the companys standing in China is weak, as the government unofficially endorses counterfeit products.

As can be observed, the economic situation is the only significant factor working for Canada Goose. While various negative developments are present, the company is used to working with them in the domestic market. Counterfeiting is the largest threat to the corporate brand name to date.

Existing Marketing Strategies

Marketing Objectives and Product Positioning

Current market objectives of Canada Goose include expanding to other regions, retaining its dominant position in the Canadian and US markets, and ensuring its brands authenticity in the face of tarnishing and counterfeiting. The company positions its products as premium-class high-quality, high-versatility outdoor products, appealing to medium-upper class customers while featuring a highly-recognizable brand (large Arctic Initiative logo on the sleeve). Besides, the company seeks to provide the Canadian and US military with winter clothes, thus pursuing government-sponsored contracts.

Marketing Mix (4Ps)

The marketing mix for Canada Goose is as follows:

• Place. The companys main markets are Canada and the US, where the brand name is famous, and the climatic conditions require robust outdoor garments (Wu & Li, 2018). It tries to make ventures into Europe and Asia, but the progress is slow due to steep competition.
• Product. Canada Goose provides parkas, traveling jackets, shells, vests, knitted products, and accessories. Seasonal offers include winter, autumn, and spring-suited clothes and items.
• Promotion. The company has a low-key promotion strategy, mainly relying on traditional outlets (TV, radio, banners, and paper advertisements) and word-of-mouth to sell its items in the market.
• Price. Canada Goose is a premium brand that uses expensive materials (duck fluff, coyote fur) as materials for its items and coats. These make the goods the company provides expensive, with the price for a single winter coat reaching over 1000 USD (Wu & Li, 2018).

Canada Goose Marketing Strategy

Canada Goose marketing strategies involve paid advertising, word of mouth, and relationship marketing. The company adheres to the traditional ways of operating a brand. It seeks to enhance its relationships with the existing customer base by improving the view of the brand as premium, exclusive, and authentic (Wu & Li, 2018). By appealing to the expensive TV and radio advertisements, the company wants to show potential customers that it is rich enough to purchase these, thus creating an association between itself and wealth.

Word-of-mouth tactics, though slow, are expected to have greater efficiency, as recommendations from a friend are worth a lot more than an internet-based or a TV promotion, making it more likely for the person in question to buy Canada Goose products (Wu & Li, 2018). Although the company engages in company-to-customer deliveries and Internet marketing, it does not run any large-scale social media campaigns beyond what is generally expected from a large company in the age of smartphones.

Canada Goose Target Market: Recommended Strategy

The recommended marketing strategy for Canada Goose should revolve around reaching a wider audience and re-establishing itself as a premium brand for millennial customers (Kotler et al., 2013). So far, the analysis of the corporate practices shows that the company is still catering to the older generations, using outdated marketing approaches and appeals. Millennial customers are no longer the future; they are the present. Most of these individuals do not own a TV set or watch it too much, as the Internet is effectively replacing cable television. Therefore, Internet advertising should be primarily emphasized (Kotler et al., 2013). Canada Goose should utilize its site and extensive online media outlets to attract additional customers.

Promoting paid advertisements on Youtube and hiring famous bloggers to present the merchandise is a good approach. The costs would roughly equal those of TV advertisements but project the brand name to a broader audience. It is advised to focus on quality rather than quantity for the brand to maintain its premium reputation (Kotler et al., 2013). It is why paid stars are preferable to a multitude of cheaper and less famous bloggers, despite the greater potential outreach. The exclusivity of the brand is supported by the price, meaning that the wider outreach program would not be effective either way.

Besides, Canada Goose needs to work on its reputation as an ecologically-friendly company. To do so, it should donate to charities and other organizations, work on humanizing the treatment of animals used to produce the materials for its outwear products, and invest in items that do not use any fluff, fur, or animal skin (Naderi & Van Steenburg, 2018). The company could rebrand itself as a technologically-advanced producer that uses biodegradable and naturally replenishable materials to attract ecologically-minded customers while maintaining the same prices and quality that make Canada Goose a premium brand (Biçakc1olu et al., 2017).

The company should utilize market penetration strategies to expand to other regions, such as China and Russia. While Canada and the US are profitable markets, Canada Goose already has an entrenched position there, which is not going to change due to market saturation with other domestic brands. Europe is an unlikely target for expansion because it is the home turf of Moncler, the largest premium outwear company and a direct competitor of Canada Goose. Japan is also a likely target due to the number of its citizens packed on a relatively small territory.

Lastly, Canada Goose should invest in developing a summer collection. It would enable the company to reach out to new customers within the existing markets and open additional venues in other countries, such as Egypt, South Africa, Saudi Arabia, the UAE, Qatar, and Kuwait (Kotler et al., 2013). These countries are known for their hot climate, making them excellent customers of summer clothes. Combined, all these measures would help transform Canada Goose and give the company the big push it so desperately needs.

Conclusions

Canada Goose is one of North Americas largest producers of premium-class outwear. It has been enjoying steady growth and development during the past years due to the excellent conditions of its market segment, which showed substantial percentages even while the rest of the clothes and fashion industry declined. The greatest challenge the company has to face is its lack of expansion towards promising foreign markets, poor ecologic reputation, and outdated concepts of marketing, which prevent the company from growing faster. Counterfeited products and steep competition are significant factors, especially in Asia-Pacific.

The companys strong points include a strong brand name and a stable position in the North American markets. It has a long-standing relationship with suppliers and full supervision and control over the production process, which allows the creation of premium-class outwear of high quality. The analysis presented in this paper showed a dire need for the company to reinvent itself as a Millennial brand by engaging in corporate social responsibility, exploring the venues of social media advertising, and diversifying its product range to include eco-friendly and summertime clothes. Particular attention should be paid to ethical manufacturing to avoid tarnishing the brands name through scandals involving PETA and other ecological organizations.

References

Aithal, P. S. (2017). ABCD analysis as research methodology in company case studies. International Journal of Management, Technology, and Social Sciences (IJMTS), 2(2), 40-54.

Biçakc1olu, N., Ögel, 0. Y., & Ilter, B. (2017). Brand jealousy and willingness to pay premium: The mediating role of materialism. Journal of Brand Management, 24(1), 33-48.

Bethune, A. (n.d.). 5 consumer trends impacting outdoor marketing. Web.

Bloomberg. (2019). Company overview of Canada Goose Holdings, Inc. Web.

Brydges, T., & Hracs, B. J. (2018). Consuming Canada: How fashion firms leverage the landscape to create and communicate brand identities, distinction and values. Geoforum, 90, 108-118.

Chen, C. (2018). Retail may be sinking, but outdoor apparel is killing it. The Street. Web.

Grodzki, E., Powers, S., & Burnstine, A. (2018). Attracting millennial consumers in the digital age. Scripta Neophilologica Posnaniensia, (18), 29-34.

Hu, M., Qiu, P., Wan, F., & Stillman, T. (2018). Love or hate, depends on whos saying it: How legitimacy of brand rejection alters brand preferences. Journal of Business Research, 90, 164-170.

Kotler, P., Keller, K. M., Sivaramakrishnan, S., & Cunningham, P. H. (2013). Marketing Management (14th ed.). Don Mills, Ontario: Pearson Canada.

Naderi, I., & Van Steenburg, E. (2018). Me first, then the environment: Young Millennials as green consumers. Young Consumers, 19(3), 280-295.

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.

Transparency Market Research. (2018). Global outdoor clothing market  Snapshot. Web.

Wu, Y. L., & Li, E. Y. (2018). Marketing mix, customer value, and customer loyalty in social commerce: A stimulus-organism-response perspective. Internet Research, 28(1), 74-104.

Introduction

Rolex is a luxury watchmaker that focuses on making high-quality elite wearables. It focuses on combining classic designs with innovative technology and materials in its watches. The marketing strategy is brand-focused, building equity around it that translates into sales. All its products, marketing, and content are focused on privilege and superior quality rather than attempting to quantify sales to the average consumer. The brand is associated with the best and most prominent figures in the world, including icons of sport, industry, and popular culture (Epstein). The elevated level of prestige and luxury is allowing the company to set high prices for its products and increase annual assets.

I agree strongly with the approach that Rolex has taken for its marketing strategy and brand growth. The brand value has become so equitable, that around the world it has become synonymous with the concept of a watch and the idea of luxury. The companys approach to segmentation of capturing the majority of market share in the elite watch sector is significant since it can pursue a top-down strategy of growth. It no longer needs to worry about achieving the elite spot of its industry but can focus on gradually spreading into lower-level markets without disrupting its brand. Rolex has shown that a carefully crafted targeted advertising campaign in combination with its superior quality is the apex of marketing brand awareness.

Recommendations

The price of Rolex watches has become its distinguishing point of sale, adding on to the brand. However, it is only reachable for a very limited consumer population which eventually leads to decreased sales. Furthermore, it does not necessarily benefit Rolex if everyone knows the brand, but few can purchase it. Despite being of superior quality, the watches are considerably overpriced, far above inflation levels. As consumer purchasing power in global markets rises, it may be beneficial for Rolex to adjust its prices downward to begin targeting upper mid-class customers. The company will continue to bring in a profit, with previously high margins compensated by rapidly increased unit sales. It will allow access to emerging markets such as China (Tang). Wider availability of the product will not decrease brand value since Rolex can still maintain quality and its star-studded associations.

Rolex watches are the centerpiece of craftsmanship and reliability. However, despite innovating its mechanical watch technology, it remains with a classical design. As the future of wearable technology grows near, Rolex can lose its strategic position, requiring innovation of its product. Rolex is beginning to slowly shift its strategy of improving on traditional watchmaking by combining it with modern innovation. This includes the use of modern materials, everlasting mechanisms, and integrating IP68 protection (Koh). However, the company should attempt to break standards and create a new hybrid of watches, combining classical elements with electronic features of smart devices. Investment in research and development may prove to be profitable as market expectations and consumer demands transition to the future.

The method and place of advertising utilized by Rolex have been consistently traditional as well. Even in the 21^st century it consistently uses print ads in magazines and runs its television commercials. Even these advertisements celebrate the iconic and historical status of the company. However, only in 2012 did it begin a slow transition to social media, creating Facebook and YouTube pages. These are used rarely and cautiously, rarely distributing any content (Epstein). The brand has actively emphasized its belief in customer feedback and social listening. However, with low social media participation where the majority of discussions are taking place, it is not utilizing that strategy well. The company should take a more aggressive social media approach to not only spread brand awareness but let customers know about the variety of products and promotions that are offered. It is a relatively inexpensive investment for the potential to increase sales in the long run.

Works Cited

Epstein, Eli. Rolex: How a 109-year-old Brand Thrives in the Digital Age. Mashable. 2014.

Koh, Wei. The Future is Now: Behind the Scenes at Rolex. The Rake. 2015, Web.

Tang, Syl. Time is Up for Above-Inflation Price Rises in the Watch Industry. Financial Times. 2016.

Abstract

Companies and organizations have turned to online marketing and advertising using web 2.0 technologies in order to capture the greater market that has now turned online. Web 2.0 can be summarized as a technology that uses new connections to expand its presence online. From the research which has been conducted , marketing and advertising using web 2.0 technologies has become an alternative to many organizations and companies due to its cost effectiveness and efficiency to reach the targeted market in a nick of time. This paper tries to analyses the effects of marketing and advertising using web 2.0 and its general impact to both consumers and the production companies.

Introduction

We are living in the era of digital world which is characterized by increased availability of internet enabling greater number of consumers going online spending most of their time on social sites like twitter, face book, YouTube among others. Due to this enormous use of internet, every business is rushing online in order to tab the marketing potential that this social media and web 2.0 sites have (Scott, 2010).

Darcy DiNucci in the year 1999 started this web 2.0 term. By definition Web 2.0 technologies are those web applications that provide the user with interactive information sharing, user-centered design and collaboration through the World Wide Web (WWW).They also enables users to interact with one another, be able to modify the contest of the websites, create and own data thus encouraging users to add value to applications as they use it as compared to other websites which are passive and static. This evolution of the web from passive and static nature to a platform that is user friendly has enabled the global user with abundant information and the businesses to embrace it as a discovery platform. Many businesses look into it as untapped gold vein. This has resulted into effective and affordable programs which provide the companies with greater marketing and advertising potential (Weber, 2009).

Web based communities, social sites like twitter and face book, blogs, wikis, and other web applications employ web 2.0 technology.

Advantages of marketing and advertising in web 2.0

Web 2.0 provide user with freedom, openness, greater user participation and experience, collective intelligence and dynamic content on the World Wide Web. Thus the consumers feel free to communicate and obtain the relevant information of the products they want.

Advertising using web 2.0 social networking sites provides the required crossness between the company and the customers by their ability to move beyond targeted messages to real conversations. This one to one marketing strategy enables the business to design messages which are targeting individuals online thus making it easier to know what the clients think of your products and company (Tuten, 2008).

Increased frequency of social contacts can help the business to improve the dynamics with its clients since social networks enable the community to expand dynamically and hence extending the reach of the company indefinitely. Joining local business communities helps to reach to the local users while joining bigger communities will increase your visibility beyond some geographical boundaries. In fact social sites are considered as viral in nature due to their extendibility and acts as a way through which you delegate your duty of marketing and advertising to your customers as they tell others about the products, free offers and discounts available (Weber, 2009).

Use of web 2.0 sites and other social networking provides the businesses with command over the image and style they create and bring much information to both the business and the clients as compared with traditional methods of advertising and marketing.

The greatest benefit of web 2.0 is its cost free nature. It saves you from the extra costs incurred during advertising campaigns and provides you with the effect the advertisements had while you are in the office. This you can achieve them right in your office. Web 2.0 is the way forward for smaller businesses which have limited funding to advertise their products (Scott, 2010).

Web 2.0 sites may enable you to reach your target audience and also your target audience doesnt have to haunt you. This saves time, effort and money spent from advertising to wrong target audience. Social network has broken down the brand identity which was built by campaign driven advertisement neutralizing the market for smaller business to compete with giant ones (Tuten, 2008).

The ability of Web 2.0 to provide different contents to different users depending on the locality by enabling the users with the choice to select their locality, has helped the users with relevant information that suite them in order to enable the clients make informed decision before purchasing the products this method is called geo marketing (Weber, 2009).

Finally, the web 2.0 sites are convenient since you can work any time of the day and from anywhere you maybe as long as you are provided with internet connection.

Disadvantages of marketing and advertising using web 2.0

As much as we have dealt on the advantages of web 2.0 in marketing and advertising it however it has its own downfalls. Web 2.0 has are venerable to vandalism as many people have the capability to own and control data that is on the web 2.0 site. A person can intentionally damage or destroy the contents of the website including impersonation of other websites which can lead to distorted information which has raised questions on the credibility of information that is available on the sites (Scott, 2010).

Web 2.0 requires newer technologies prompting the clients to have them in order to view the sites as compared with traditional marketing and advertising methods. Low speed internet connection is another hindrance which prevents the clients from accessing large and complicated websites (Tuten, 2008).

Web 2.0 sites have the general inability of clients to smell, physically feel the products and test them before making online purchasing this inability has really hindered many people from going online due to the unreal nature of the advertisements and hence it becomes difficult for new brands to find their way in web 2.0 markets (Scott, 2010).

Security concerns are also another issue as customers dont feel save while purchasing online as some of their information may fall into wrong hands recently many companies have been caught selling their customers information to other companies. Another security issue is to the clients will receive exactly what they have purchased although online merchants have tried to address this issue by building strong brands like Amazon and leveraging systems of feedback still it remain an issue to many (Weber, 2009).

Finally marketing and advertising through web 2.0 sites is time consuming as it is based on relationship marketing strategy. It needs a lot of time to develop many relationships online which takes patience and greater efforts.

Conclusion

Even though web 2.0 has gained greater popularity than many advertising and marketing tools, it still has many disadvantages that need to be sorted out in order to achieve its effectiveness. Advertisement and marketing cannot solely rely on the web 2.0 technologies. There is the need to incorporate other traditional methods of marketing in order for the business to achieve its goal.

References

Scott, D. M. (2010).The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly, 2nd Edition. Hoboken: NJ.Wiley.

Tuten, T. L. (2008). Advertising 2.0: Social Media Marketing in a Web 2.0 Worlds. Westport:Conn. Praeger.

Weber, L. (2009).Marketing to the Social Web: How Digital Customer Communities Build Your Business. Hoboken: NJ.John Wiley & Sons.

Executive Summary

The report describes a marketing strategy developed to help SPAR Oman grow in the local market and address current threats to its competitiveness. The environmental analysis revealed that the company has a distinctive position in the market and a positive brand image that appeal to niche customers, yet fails to compete on product prices. Thus, it is suggested for SPAR to increase innovativeness and focus on the digitalization of services because e-commerce is one of the most significant retail trends nowadays.

The main identified marketing objective is to increase sales rate through greater customer attraction and maximization of such values like quality and convenience for them. It is recommended to promote and analyze responses to new services by using online sources, which can increase the cost-efficiency of the proposed strategy.

Introduction

The license for SPAR in Oman is given in 2014 to Khimji Ramdas, one of the leading business conglomerates in the country. With access to SPARs vast knowledge and assets obtained from the brands experience across the globe, Khimji Ramdas became able to provide quality service and products to local consumers and capture new revenue streams. With twenty-four stores open in 2017, the total retail sales of SPAR Oman equated 27,342 million euros (SPAR International, n.d.a).

The main contributing factor to the excellent sales rate was the retailers commitment to such core values of the brand as freshness and quality. Along with this, Omani customers are attracted by goods developed by various European and Asian producers that cannot be purchased in other stores (Bureau 2015). Nevertheless, in order to foster further growth, it is essential to understand the retailers strengths, weaknesses, and overall characteristics and use this knowledge to develop an effective marketing plan. The present report will aim to do that by formulating a set of marketing plan objectives for SPAR Oman based on the market analysis findings.

Current Market Analysis

Porters Five Forces Analysis

Such elements of Porters model as substitutes, suppliers, buyers, and potential entrants drive the rivalry among existing companies in the market (Indiatsy et al. 2014). However, SPAR Oman seems to have good control over these forces and, as a result, its competitive position is strong. Firstly, the threat of substitutes is managed through the offering of European and Asian foods, such as energy drinks and coconut water, that other stores do not sell (Bureau 2015).

The main advantage generated through product uniqueness is that many consumers may be willing to pay higher prices to purchase some of the hard-to-get products. Secondly, the bargaining power of suppliers is rather moderate in the retail market because the goods supplied to grocery stores are not very differentiated in general and companies may switch from one supplier to another without significant losses, yet SPAR manages to gain even greater control over this force by building partnerships with many suppliers across the globe.

It is devoted to the development of supplier loyalty and generating values for them, including technological and informational support (SPAR International, n.d.b). Thus, suppliers businesses become more dependent on SPAR, which decreases the risk of loss and change.

When speaking of the bargaining power of buyers, it is high in the retail market. Customers demands and interests are ever-changing, and this factor emphasizes the necessity to offer innovative services and products. SPARs uniqueness of products and the provision of relevant goods, such as organic foods, serve to control the bargaining power of buyers, expand the customer base, and develop their loyalty.

Additionally, the threat of new entrants is mainly controlled by SPAR through its strong equity, positive brand image, extensive experience, and competence in supply chain and distribution activities. However, new e-commerce businesses may appear in response to the growing trend for online shopping (Mkansi, Eresia-Eke & Emmanuel-Ebekake 2018) and, since online space is associated with fewer capital costs, they may pose threat to SPAR over time.

The level of competition in the Omani grocery retail market is intense, with a large number of small and big businesses present. One of SPARs largest competitors is LuLu Hypermarket. It is a highly popular department store, offering a wide range of products, including garments, technologies, cosmetics, and grocery. Similarly to SPAR, it enjoys a high level of control over distribution activities that allow the firm to save on supply chain and storage (Mahfod et al. 2017). Compared to SPAR, LuLu implements a cost leadership strategy while also paying significant attention to quality, which makes the store attractive for consumers from highly diverse backgrounds (Mahfod et al. 2017). Notably, low pricing is a primary focus of LuLus promotional campaigns.

SWOT Analysis

Market Segmentation

SPARs products are mainly oriented towards adult consumers (age 18-50), with and without families. While some goods offered by the retailer meet the needs of a highly diverse population, a significant part of them falls under the category of niche products (for instance, organic foods). Weinstein (2013) states that customers in this category pay a premium to the company that satisfies their interests. Therefore, SPARs customers are primarily those individuals who have an above-the-average level of income. Additionally, it is valid to say that besides quality, innovativeness, and exclusiveness of products, SPARs customers value convenience because a lot of them access the stores from the local neighborhoods where they reside..

Marketing Plan Objectives

Specific

SPAR will aim to increase the rate of sales by focusing on innovation and quality of services and products (for instance, e-shopping and product delivery) as part of the marketing strategy. This will help to attract more diverse customer groups with both niche and general purchasing interests.

Measurable

A 30% increase in offline sales due to better customer attraction, as well as a 5% online revenue contribution, will be SPARs goal. Additionally, a 50% improvement in customer satisfaction rate will be achieved.

Attainable

Within the first quarter after the launch of the new marketing strategy, a 5-10% increase in offline sales and a 10-15% enhancement in customer satisfaction will be expected.

Relevant

By communicating such values and innovation to potential and existing consumers, SPAR will develop greater awareness of the brand in Oman and foster customers trust. As a result, more people will come to the stores and will buy products there.

Time-Bound

The objectives will be attained by the end of the year after the marketing strategy is launched.

Recommendations

Products and Services

It was identified during the environmental analysis that e-commerce is one of the primary consumer trends. Thus, SPAR should bridge in-store and online services that would help to maximize the value of convenience and consequently increase customer satisfaction. Notably, the freshness of products will be a paramount value in online shopping at SPAR because food spoilage is one of the primary concerns among grocery shoppers worldwide (Mkansi, Eresia-Eke & Emmanuel-Ebikake 2018). Overall, the new service should allow customers to browse through available options online, then request in-store fulfillment and delivery and must also guarantee the highest possible quality of goods.

Place

SPAR may develop its own online shopping platform or collaborate with already existing online grocery platforms, such as Omgrocer. However, the former variant is preferable because it is associated with greater control over the quality and accuracy of order fulfillment. At the same time, consumers will be able to order delivery of products for any preferable time at different offline stores.

Price

Service prices should remain competitive but can be slightly above the industry average if an appropriate quality-price ratio is maintained. Additionally, extra values can be generated by offering online shoppers with discounts and free delivery on purchases above a certain sum (for instance, RO 30).

Promotion

Considering that mainly technologically savvy individuals that are active online will be interested in digitalized shopping experiences, social media platforms and other online sources will become the primary promotion tools. Through them, SPAR will actively engage in a meaningful dialogue with users, which will help raise their expectations and create additional value (Anurag & Duhan 2017).

However, what is more, important is that online platforms can be used for market research and the development of highly targeted offline and online promotion campaigns. For instance, sentiment analysis via Linguistic Inquiry and Word Count and Netvizz can be conducted to evaluate users feelings associated with particular SPARs services and products. Additionally, it is possible to conduct an online survey to identify the main motives that can drive the use of the new service. With this information in hand, SPAR will be able to develop promotional campaigns that will appeal to the most relevant consumer interests.

Evaluation and Control

Customer response and sale numbers will be the primary key performance indicators. The data related to them will be gathered before, during (each month), and after the implementation of the strategy. Surveys distributed via offline locations, SPARs website, Facebook, and other platforms will be used to collect information regarding consumer satisfaction. Additionally, sentiment analysis and evaluation of user messages on Facebook and Twitter will help reveal if the online grocery shopping service is perceived positively.

Budget

Reference List

Anurag, S & Duhan, P 2017, Managing public relations and brand image through social media, IGI Global, Hershey, PA.

Bureau 2015, SPAR Oman plans to open 21 stores in Oman by the end of 2018, Business Live ME. Web.

Indiatsy, CM, Mwangi, MS, Mandere, EN, Bichanga, JM & George, GE 2014, The application of Porters Five Forces Model on organization performance: a case of Cooperative Bank of Kenya Ltd, European Journal of Business and Management, vol. 6, no. 16, pp. 75-85.

Jordan, J 2018, How much does an ecommerce website cost in 2018?, Atlantic BT. Web.

Mahfod, J, Ismaeel, W, Al-Haddad, A & Upadhyaya, M 2017, An exploratory study of cost leadership and differentiation strategy: the case of LuLu hypermarket, International Journal of Civil Engineering and Technology, vol. 8, no. 10, pp. 12881297.

Mkansi, M, Eresia-Eke, C & Emmanuel-Ebikake, O 2018, E-grocery challenges and remedies: global market leaders perspective, Cogent Business & Management, vol. 5, no. 1, pp. 1-28.

Schaffer, N 2013, Maximize your social: a one-stop guide to building a social media strategy for marketing and business success, John Wiley & Sons, New York, NY.

SolveMethod 2018, Average cost per click by country  Google AdWords CPC rate. Web.

SPAR International n.d.a. SPAR Oman. Web.

SPAR International n.d.b. Suppliers. Web.

Weinstein, A 2013, Handbook of market segmentation: strategic targeting for business and technology firms, Routledge, New York.

Wiese, A, Zielke, S & Toporowski, W 2015, Sustainability in retailing  research streams and emerging trends, International Journal of Retail & Distribution Management, vol. 43, no. 4/5.

Marketing entails making products that are desired by a certain section of the target population or consumer. Marketing has been viewed as an ongoing dynamic process involving a set of interacting activities dealing with a market offering by producers to consumers on the basis of reliable marketing anticipation (sales or demand forecast). It is clear that marketing activities should be conducted under an organized system that caters to all the players in the marketing environment. However, there are five competing philosophies under which organizations carry out their business: the production concept, product concept, selling concept, marketing concept, holistic marketing concept (Kotler 2003). The following paragraphs explain these concepts and how they vary depending on marketing situations.

Production concept: This concept proposes that consumers will favor those products that are widely available and low in cost. Thus, the organization focuses on what it can make. The focus is on performance and cost, and the price is based on production and distribution costs. This concept is best applicable only in the sellers market, in a buyers market it fails to retain market under keen competition. More so, it is applicable when customers are low-income earners and the product is a basic necessity.

Product concept: Management firmly believes that if the product has superb features, quality, and performance, customer response is bound to be favorable and all promotion efforts needles. Managers should be involved in making appealing products with quality features. Thus, the concept may be applied when the market does not price-sensitive or when customers are financially stable.

Selling concept: It outlines that a company cannot secure enough customer response to its product without high-pressure salesmanship and aggressive advertisement. This concept works well when the firm has adequate machinery for effective production and when the product is new in the market.

Marketing concept: The essence of the marketing concept is that the customer and not the product shall be the center of the entire business system. It emphasizes a customer-oriented marketing process. All business operations revolve around customer satisfaction and service. This concept applies when the management seeks to attract and retain customers.

Holistic marketing concept: This concept presumes that everything matters in the market-oriented process. These include the development, design, and implementation of marketing strategies, processes, and tasks. The components in this philosophy are integrated marketing, internal marketing, social marketing, and relationship marketing. This concept is applicable in the modern market because of increased competition and the need to adapt to the marketing environment (Bennett and Blythe 2002).

In conclusion, organizations need to understand their marketing environment and the need of customers in order to survive in the competing market setup. The various competing concepts discussed in this section, which vary according to the market situations, include the product concept, the production concept, the marketing concept, the selling concept, and the holistic marketing concept.

References

Bennett, R, & Blythe, J, 2002, International Marketing. Kogan Page Publishers, London.

Kotler, P, 2003, Marketing Management, Eleventh Edition, Prentice Hall, New York.

Product

Pizza Hut is a well-known restaurant that is primarily focused on modern Italian and Western cuisine. The franchise represents the worlds largest pizza chain with over 12,000 establishments and delivery points worldwide. Furthermore, the chain is known for its innovative approach to new product development. Despite a fairly extensive menu, its main product is pizza, which is sold in three sizes: small, medium, and large. Given the increasing competition from McDonalds, KFC, and Dominos, the company also strives to meet local markets needs by creating unique local menus for specific regions. In addition, there is an opportunity for the client to make a combined order in the chains establishments, which may include salads, breadsticks, chicken wings, pasta, desserts, sauces, and drinks. The main innovations of Pizza Hut are Stuffed Crust Pizza, and the franchise developed Tandoori Paneer Pizza, Country Feast, Exotica, Paneer Vegorama as their signature dishes in different regions.

Price

Pizza Huts pricing policy is based on competing for price analysis to meet the price-performance balance due to the competitive environment among pizza producers. However, the prices for franchise dishes are higher than the market average price in this segment. They can be characterized as a premium due to the high quality of the companys product. The chains restaurants operation involves the active use of the price skimming strategy to achieve an optimal sales rate. To balance pricing, Pizza Hut operates a combined ordering system created in partnership with PepsiCo (Alon et al., 2020). Thus, the simultaneous use of several pricing strategies will allow Pizza Hut to sell many products without drastic price reductions.

Distribution

Pizza Hut sells through two main channels: restaurant orders and home delivery. It should be noted that most of the chains establishments are located in class A urban areas. This is necessary to maintain the entire chains premium level and sell products at prices above-market prices. A potential client needs to independently get to one of the chains restaurants, which increases the establishments value. Amid the 2020 COVID-19 pandemic, many restaurants, including Pizza Hut, were forced to suspend full operations and switch to home delivery. Even though Pizza Hut already had a delivery system and large pizzerias sales increased, in the summer of 2020, 300 restaurants of the franchise were closed throughout the United States (Valinsky, 2020). In conditions of visiting restaurants impossibility, customers began to place orders online, which caused a drop in demand for visiting restaurants.

Marketing

Regarding sales merchandising, the primary tool for selling through this mechanism is the restaurant design and menu itself. In the pandemic, the main leverage to increase sales was provided by promotions that users could use when ordering online (Sharma, 2020). Pizza Hut in 2020 began to invest more in advertising since, in the conditions of being forced to stay at home, customers consume more media content (Fleming, 2020). The increase in buyers number is due to active advertising campaigns, a mobile application, and online promotions, which offer lucrative offers for combined orders. The franchise also pursues to increase its regular customers, which is achieved by implementing loyalty programs and additional discounts for customers who make orders regularly. In conditions of impossibility for the company to directly contact customers through the network of restaurants and the provided service, the company seeks to form trust relations via the Internet. To achieve this goal, advertising campaigns were created dedicated to the safety of delivery of orders, compliance with all hygiene, and sanitary standards. In some regions, Pizza Hut organizes food delivery for public health workers (Sharma, 2020). This is a sign of the social responsibility of business in unstable times and a successful promotion, demonstrating the companys readiness. According to the latest data, the average check for online orders increased by 50% during the pandemic because people live together within families and do not leave their homes (Sharma, 2020). Thus, Pizza Huts primary marketing strategy is to increase digital ad budgets, which has a beneficial economic impact on the franchise.

Each organization has strengths and weaknesses, as well as opportunities and threats to business development. SWOT analysis for Pizza Hut is as follows:

Strengths

Pizza Hut is the market leader in restaurants offering Italian cuisine, which includes pizza itself and other dishes. The company owns the largest restaurant chain, with more than 12,000 restaurants worldwide. Pizza Hut creates delicious and quality products, which is accompanied by a high level of service and meeting hygiene and sanitary standards. The companys organizational culture is at a high level, which is accompanied by regular pieces of training for personnel and high motivation of employees for their activities. Pizza Hut is certified as an International Standard Organization. The businesss strengths also include complete autonomy of work: Pizza Hut has its regular suppliers, as well as a courier service, which allows the company to operate regardless of the circumstances. Moreover, in a pandemic, the corporation demonstrates rapidly the ability to change in the market and public life.

Weaknesses

The fact that Pizza Hut has a large-scale restaurant chain around the world is not only a competitive advantage but also a disadvantage. The company has to bear additional costs for maintaining its restaurants and staff, which distinguishes them from competitors with a vast network of establishments. Compared to other similar chains, Pizza Hut prices are higher, which can negatively affect the consumer choice towards a cheaper product (Mothersbaugh et al., 2019). Moreover, Pizza Hut is more focused on the Western type of taste than Eastern, which is a disadvantage in some regions where customers tend to eat traditional local food with specific taste.

Opportunities

Given that Pizza Huts business is focused on the production and sale of food products, the most significant opportunity is the potential for expansion. Opening new restaurants, increasing the number of a loyal audience, occupying new market segments are areas in which the franchise can continue to develop. Since Pizza Hut is well recognized in the West and has a broad audience familiar with the brand, the East is the central region for development. Diversification and creating unique products for eastern countries will allow the company to increase its market share. In addition, access to a new market will expand the resource base, enabling the firm to lower prices for its products.

Threats

The main threat to Pizza Hut is the companys competitors, as there are many highly competitive companies in the pizza and other food markets. The main rival of Pizza Hut is Dominos Pizza, which continues its active expansion into the Eastern market. The coronavirus pandemic still poses a real threat to the food sector due to restaurant bans. Given Pizza Hut restaurants negative performance dynamics in 2020, this trend may continue if restrictions are extended.

References

Alon, I., Jaffe, E., Prange, C., & Vianelli, D. (2020). Global Marketing: Strategy, Practice, and Cases. Routledge. 3^rd edition.

Mothersbaugh, D. L., Hawkin, D. I., & Kleiser, S. B. (2019). Consumer behavior: Building marketing strategy. McGraw-Hill Higher Education. 14^th edition.

Fleming, M. (2020). How Pizza Hut overhauled its media strategy to be more efficient. Marketing Week. Web.

Sharma, K. (2020). Marketing in the times of COVID-19: Pizza Hut. Business Insider. Web.

Valinsky, J. (2020). 300 Pizza Huts are closing after a giant franchisee goes bankrupt. CNN Business. Web.

Introduction

ASOS is a fashion retailer established in 2000 and has headquarters in London. ASOS is an acronym that stands for AsScreenOnScreen and is registered with London Stock Exchange as ASOS PLC. It is an online store with over 85,000 products, available in ten languages through a mobile phone application or website, and targets the youth in their twenties. Since its inception, ASOS has continued to produce impressive results due to an innovative marketing strategy. Secondary research methods will be used to collect the financial data of the company. This essay will use the PESTLE method to analyze the marketing environment of ASOS and identify the key factors in the marketing mix that are critical for its success.

Performance of ASOS

ASOS released its annual financial report for the year ending 31st August 2021. It shows that the fashion store registered retail sales of 3.7 billion and a 20% increase in revenue (ASOS, 2021). There was a 13% increase in net income generated when compared to the same period last year. Total volume sales increased by 15%, a bigger proportion come from the United Kingdom which contributed 36%, followed by the European market at 18% and then the USA at 16%. However, due to lockdown restrictions, distribution expenses rose to £509.5M, a 15% increase from last year (ASOS, 2021). The number of visitors in a retail store directly translates to sales. The number of consumers grew by 12%, with the addition of 1.5 million active buyers.

Analysis of Marketing Environment

PESTLE analysis is an essential tool when analyzing the environmental factors that affect an enterprise. The PESTLE analysis method comprises six main areas: political climate, economic factors, social status, technological changes, and legal and environmental concerns (Schulz, 2019). The main factors likely to affect the business operations of ASOS are Brexit which is covered with a cloud of uncertainty, slow global economic recovery due to coronavirus, and fluctuations in foreign exchange rates since they operate in over 200 countries. Pollution poses a challenge to the manufacturing process, especially in using dangerous chemicals to dye fabrics and the generation of plastic for packaging. It is an energy-intensive process leading to a high carbon footprint, and coupled with the shipment of merchandise; it leads to global warming.

Marketing Strategy

ASOS marketing strategy analysis will use the marketing mix model; it includes the seven Ps since it is a service industry. These ASOS marketing mix-based business techniques aid the brands success (Palmatier and Crecelius, 2019). This innovative marketing strategy has helped the global company attain its business targets by being competitive in the apparel industry.

Product and Pricing Strategy

ASOS is a leading online store that sells clothing, shoes, and beauty products directly to customers. The products are for both males and females and have an extensive marketing mix product portfolio of over 85,000 products. Customers can choose from more than 850 brands on the online marketplace (ASOS, 2021). ASOS has adopted an affordable and competitive pricing strategy. They have a wide range of products covering the whole spectrum of prices. The products in the store are of good quality but at a cheaper rate. They have mid-season and end-season sales in which they sell products at much-discounted rates. They are popular, especially in overseas territories, since they do not charge a delivery fee most of the time.

Place and Distribution Strategy

ASOS is a worldwide web-based platform for buying clothes and footwear. After customers have purchased the items, they ship to their specified locations. They have numerous warehouses in several locations around the United Kingdom from which they can send the merchandise. As a digital commerce leader, the company has retail operations in more than 200 countries with over 166,000 Click & Collect locations around the world.

Promotion and Advertising Strategy

ASOS primary tools for promotion and advertising are the website and mobile phone app. It sends emails and promotional updates to enrolled email addresses regularly. For their promotions, they frequently send out pamphlets and brochures through mail and deliveries. They have built social media groups and communities on platforms such as Facebook, Instagram, and Twitter to keep people informed about their offers and discounts. ASOS is an online company; it communicates with its consumers through social media campaigns and unique video and picture content.

People, Process, and Physical Evidence

Since ASOS is an internet-based business, it has few workers compared to a physically present enterprise of a similar magnitude. Workers are only for critical departments such as customer service, marketing and branding, management, technical, and logistics (ASOS, 2021). The process of purchasing an item is different from a brick-and-mortar store. Upon selecting the desired clothes, they add them to the cart and pay via a credit or debit card. The ASOS platform is straightforward to use, and the most current discounts and deals are highlighted for customers to take advantage of them.

Success Factors

Target Market and Content

ASOSs marketing strategy offers niche campaigns with highly tailored content to their target audience that youth in their twenties. As a result of targeted campaigns, the youth easily connect with the message, increasing visitors conversion ratio to customers (Akbar, Omar, Wadood, and Wan, 2017). The business understands its target market, wants, and expectations from the stores they prefer to purchase (Li, Larimo, and Leonidou, 2021). For example, the ASOS Facebook page share creative pictures, and students posts and even plays word games with its audience. Thus, ASOS understands their target audience, and how to engage them hence easily making them buy their designs.

Use of Essential Topics

ASOS has done detailed research on their target audience, the youth in their twenties, and understands how to please them. They have excelled by addressing subjects that the youth is passionate to hear. With a massive student audience, ASOS has made sustainable development and accountability two of the most important talking points in its marketing initiatives, connecting with consumers through topics related to them (Schulz, 2019). ASOS Twitter account shares the companys commitment to integrating sustainability across the entire value chain. The two major goals are to achieve carbon neutrality and move towards a circular economy by 2030.

Rewards and Augmented Reality

ASOS is making use of the inequality marketing strategy by rewarding a selected group of customers for buying. Almost more than fifty percent of a businesss customers expect to be treated in a special way (Chan and Mok, 2018). ASOS embraced this marketing strategy by creating an entire Facebook page to assist students; its largest customer base receives a 10% discount on their purchases. ASOS is one of a few fashion stores to integrate technology into their marketing strategy. Augmented reality is built on the concept of digital overlays, which display virtual visuals alongside real-world images. Customers can now use the new Examine My Fit tool to see how an apparel item looks on various body shapes (ASOS, 2021). These are not photos; they are digitally enhanced pictures that overlay a certain attire onto a figure that nearly resembles the customers body.

Marketing Creativity and Innovation Strategy

Because marketing is amongst the most creative fields, marketers must have the ability to analyze how competitors are implementing strategies and come up with new ideas for doing marketing differently. As illustrated by ASOSs connection with basketball star Ovie Soko, the retailers marketing staff embraces creativity. This was strategic since the majority of ASOS customers are youth and value physical appearance. As a result of such partnerships, ASOS draws and interacts with a group of youth concerned about their appearance, precisely what a clothing brand wants. By embracing creativity, ASOS is just using old ideas in new ways, making it a world leader in the fashion industry.

Heavy Social Media Presence

ASOS has a special way of using social media to engage its audience. They allow their customers to showcase their buys on their website for fifteen minutes. Moreover, buyers can become their social media influences by sharing their outfits through Instagram under the hashtag #AsSeenOnMe. The company is excellent in digital marketing through social media platforms, leading to massive growth (Dave and Fiona, 2019). Recently they held four TikTok campaigns that turned out to be highly successful and received more than 15 billion total views (ASOS, 2021). This has helped increase sales and expand to other territories of the world, especially in new markets such as North America.

Prioritization of Customer Service

The company has put the customer first by replying to questions and complaints swiftly. Excellent customer service has helped ASOS increase its market size since consumers love to buy from responsive and fast stores (Burgess and Burgess, 2020). Unsatisfied customers receive a listening ear; hence, they do not cancel their orders (Viardot and Nylund, 2017). The store has a good reputation and addresses all issues not to go public and damage their image. Thus, they take care of their consumers, and in return, they always come back and buy again.

Areas of Improvement

Although ASOS has been successful over the years, there is still some room for improvement. A vital marketing strategy lacking is the creation of physical outlets that consumers can use to try out their outfits (ASOS delivers 24% sales and 275% profit increases  beyond the numbers, 2021, para. 10). Physical presence will increase sales by offering the opportunity to people who prefer to try out outfits before buying. Another opportunity lies in starting a loyalty scheme to reward returning customers. This will increase the rate of retaining customers and raise their store lifetime value.

Conclusion

ASOS was initially available only in the UK, but now it has become a global brand and is available in over two hundred countries. It has leveraged the following marketing strategies: partnerships, social media presence, campaigns, creativity and innovation, rewards and promotions, customer service, and trending technology such as augmented reality. One major success factor is unique collaborations with other brands and allowing them to sell their products on the ASOS store. Therefore, ASOS has grown tremendously and achieved a rare feat in the competitive fashion industry through digital marketing techniques.

References

Akbar, F., Omar, A., Wadood, F. and Wan Yusoff, W.Z.B., 2017. Niche marketing strategy framework for SMEs: A conceptual framework.

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Burgess, C., & Burgess, M. (2020). The New Marketing. Sage Publications Limited.

Chaffey, D. and Ellis-Chadwick, F. (2016). Digital marketing: strategy, implementation and practice, 6^th ed.

Chan, P.Y. and Mok, P.Y., 2018. The new wave of digital tailored fashion marketing with social media. Global Marketing Conference at Tokyo (pp. 121-122).

Dave, C. and Fiona E. C. (2019). Digital Marketing. London: Pearson

Li, F., Larimo, J. and Leonidou, L.C. (2021) Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science, 49(1), pp.51-70.

Palmatier, R. W., & Steinhoff, L. (2019). Relationship Marketing in the Digital Age. Routledge.

Palmatier, R.W. and Crecelius, A.T. (2019) The first principles of marketing strategy. AMS Review, 9(1), pp.5-26

Schulz, E. D. (2019). Marketing in the Digital Age.

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