IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
Contents 1. 2.
3.
4.
5.
6.
Introduction………………………………………………………………………….p.3 Macroenvironment research. -1.1 Market review……………………………………………………………..…....p.3 Microenvironment research - Competitors. - 2.1 Our competitors……………………………………………………………… p.4 - 2.2 Competitor brand’s reviews……………………………………………..…..p.5 - 2.3 Benchmarking……………………………………………………………...….p.6 Microenvironment - Segmentation. - 3.1 Characteristics of millennial………………………………………………..p.6 - 3.2 Attempts to attract millennials………………………………………..…....p.7 Communication. - 4.1 Communication medias………………………………………………….......p.7 - 4.2 Communication as part of retail……………………………………….......p.8 - 4.3 Media Gap………………………………………………………………....….p.9 - 4.4 SWOT analysis………………………………………………………………..p.10 The target group. - 5.1 Millennials values………………………………………………………........p.12 - 5.2 Personal interaction………………………………………………………....p.13 The conclusion & our strategy. - 6.1 Strategy……………………………………………………………………..…p.13 - 6.2 Price………………………………………………………………………..….p.14 - 6.3 Product………………………………………………………………………..p.14 - 6.4 Placement…………………………………………………………………….p.14 - 6.5 Promotion…………………………………………………………………….p.15 - 6.6 Platforms for personalised shopping……………………………………..p.15
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
Introduction This study examines how the millennial influence is affecting brands within the jewellery market in modern European countries. The following paper contains an exploratory section, which focuses on a brief description of the current macro-environment within the Spanish jewellery market. Furthermore, ten jewellery brands will be scrutinized on an analytical level, where the focus will be on clarifying the role of competitors, segmentation, and brand communication in order to propose improvements in operational areas within the final deliberative part of the study. Consequently, the conclusion consists of a construction of a possible brand strategy, to respond to the marketing and communication issues within the jewellery market, which are stressed in the analysis.
1. Macroenvironment research 1.1 Market review The jewellery market has a €148 billion turnover yearly (CBI, Ministry of Foreign Affairs October 7th 2016), and that number is increasing by 6% each year. The jewellery market itself is worth approximately €65.5 billion. Within the market, the prices on the high end pieces are going up, whilst the low end prices are dropping. (Dauriz, Linda, Remy, Nathalie and Tochtermann, Thomas and contributions from Ewa Sikora, McKinsey&Company 2014). In both of these segments sales are rising at a high rate. The brands with the greatest market share based on the latest research (2009) are Cartier (32.9%) and Tiffany & Co (14%) (IC-Agency 2009 Internet: searching for fine jewellery on the Internet. CIJ International Jewellery TRENDS & COLOURS – Europa Star HBM, Geneva). Furthermore research shows the revenues of the top three brands in the market. Swarovski’s revenue report (2015) is leading with a €3.37 billion increase (Swarovski, 2016., Corporate fact sheet), Pandora’s is approximately €2.2 billion, and (Pandora 2015 annual report) Tiffany’s is €437.9 million (Tiffany&Co 2015 Annual report). In addition to that, the environment within the market is becoming increasingly competitive, which was also triggered by the financial crisis in 2008. The jewellery market in Spain consists of over 16.000 companies. It plays an important role in the European industry as it is in fourth place in the ranking of manufacturers, behind Italy, United Kingdom and Switzerland. The Spanish jewellery market has an estimated 1.5 billion euro turnover. In 2015, 42% of all purchased jewellery products were costume jewellery, 32% designer, and the rest was imitation and no-name (Segato, Elena., 2015 The jewelry industry in Spain). This clarification of the macro-environment naturally leads to a further analysis of the competitors market in order to examine the segmentation of millennials.
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
2. Microenvironment research – Competitors 2.1 Our competitors Following chart represents a list of ten main European jewellery brands that are considered to be the most influential within the market:
1.Pd Paola
6.Tous
2.Aran Jewels
7.Tiffany & Co
3.Maria Pascual
8.Uno de 50
4.Swarovki
9.Michael Kors
5.Pandora
10.Maria Black
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
2.2 Competitor brand’s reviews The following chart illustrates the main properties of each of the brands. JEWELLERY BRANDS
PRICE (average product)
PRODUCT (range)
PLACE (of sale)
PROMOTION
Pd Paola
30-50€
Rings, Necklaces, Earrings, Bracelets
Online store
Facebook, Instagram
Aran Jewels
20-40€
Rings, Earrings, Necklaces, Bracelets
Online store
Facebook, Instagram
Maria Pascual
20-40€
Necklaces, Rings, Earrings, Bangles
Online store
Facebook, Instagram
Swarovski (Lola and Grace)
70-100€ (20-50€)
Necklaces, Pendants, Earrings, Bracelets, Rings
Pandora
50-120€
Tous
35€+
Bracelets, Rings, Earrings, Necklaces, Pendants, Chokers
Online store, Own store, Department Store- 500+ stores worldwide
TV, Billboards, Social media, Online advertisements, Magazines
Tiffany&Co
80€+
Bracelets, Rings, Earrings, Necklaces, Pendants, Wedding bands, Charms, Brooches
Online website, Own Physical store, and Catalog orders
Instagram,Facebook, Fashion and Luxury magazines, Banners
Uno de 50
40-60€
Bracelets, Rings, Earrings, Necklaces, Anklets
Online store, Own Physical stores-100+ stores, Department Stores
Instagram, Facebook, Twitter
Michael Kors
60-100€
Rings, Earrings, Necklaces, Bracelets
Online store, Own Physical store, and Department Stores
High Fashion Magazines, TV, Instagram, Facebook, Twitter, Snapchat, Billboards
Maria Black
50-90€
Both online and physiFacebook, Instagram, cal stores(Own store, Twitter, TV, High FashDepartment Store)ion Magazines, Bill2,680 around the world boards.
Earrings, Charms, Brace- Online store, DepartInstagram, Facebook, lets, Rings, Necklaces, ment Stores, Own store TV, Magazines, Banners, Pendants Billboards
Earrings, Bracelets, Necklaces, Online stores, Physical Rings,Anklets Stores 35+ countries worldwide
Instagram, Facebook, Own Website
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
2.3 Benchmarking The following chart represents a benchmark of the ten chosen brands:
Real Quality Jewellery
Pd Paola
Aran Jewels
Maria Pascual
X
X
X
Swarovski & (Lola & Grace)
X X
X
X
X
Customer Reviews
X X
Physical Store Location
X
X
X
Exclusive to brand / unique Products
X
X
X
Affordable Price for millennials Effort into packaging
Uno de 50
Michael Kors
X
Maria Black
X X
X
X
Tiffany & Co.
X
Majority of products appealing for Millennials Free Delivery & Returns
Tous
X
Respondence to Trends Emotional product value
Pandora
X
X X
X
X
X
X
X
X
X
X X
X
X
X
X
X
X X
3. Microenvironment research – Segmentation 3.1 Characteristics of millennials In the Focus group study conducted during the primary stage of research, it was found that millennials want to display their confidence by showing off their personal style and taste. This accounts for one of the ways they express themselves in their everyday life (Ad Hoc). The results of a study conducted on millennials show that 46% of them feel pleasure when buying technology, whilst only 25% feel pleasure when purchasing jewellery (Yurman, David., Unity Marketing, 2014). At the same time, Ad Hoc research tells us that the main reason for millennials purchasing jewellery is for pleasure, as this was the reply of 49% of our questionnaire respondents. Secondly, millennials spend time researching jewellery products before buying any expensive pieces. However, primary research has shown that the consumer buying behaviour is more impulsive when shopping for inexpensive products. Finally, if a luxury brand delivers an impressive shopping experience, millennials will be interested in spending a greater amount of money. This character description of millennials leads to study the attempts of the jewellery brands to attract this segment.
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
3.2 Attempts to attract millennials There are a variety of brands that focus on millennials in the jewellery market, such as Swarovski, PD Paola, Maria Pascual, and Maria Black. Furthermore, there are examples of sub-brands that focus exclusively on millennials, for instance, Swarovski’s line Lola & Grace. In that specific line they offer affordable jewellery, which is on the lower end of the price range. There are a number of ways these brands use to attract customers. First is the Mix & Match concept, which we further investigated in our Ad Hoc research. This concept is widely used by brands, and consists of offering options to personalise products. This makes them suit each specific customer more efficiently as the consumers are able to combine a number of pieces of their liking. Swarovski is one of the main brands that adapts to this concept with the sub-brand Lola & Grace. Secondly, Pandora chose to readapt their prices, to return to the concept of affordable jewellery (CBI, Ministry of Foreign Affairs, October 7th 2016). In addition, Tous is adapting with a similar strategy (Ad Hoc). These brands started considering the demands from millennials, one of which is offering jewellery of an affordable price range. From analysing the segmentation within the microenvironment it is worth including a further study of the brand communication to observe the media channels used and its effectiveness in relation to the target group.
4. Communication 4.1 Communication media channels Research shows that brand presence and its’ interaction on social media platforms are commonly used as a communication technique of the ten brands selected as competitors. Platforms used by the given brands mainly appear to be Instagram, Facebook and Twitter. Instagram is often linked directly to an ecommerce platform, which enables an effective and direct path for the consumer decision process. The communication of the chosen brands contains a high concern for e-commerce rather than traditional Above The Line advertising. Instead, there appears to be a high demand for engaging with millennials through various social media channels. In addition, it is worth mentioning the brands’ use of big data, especially on Facebook, where the majority of the ten chosen brands practise contextualised advertising affected by cookie traces of the given consumer. The communication is furthermore based on a high concern for authenticity supported by a closeto-customer and transparent bilateral dialogue. By this approach, the brand is enabling direct consumer interaction. Primary research shows that the brands have turned purpose-driven, as one of the core values for Millennials is the presence of purpose in the products they purchase. The young generation want their expenditure and time to have a certain amount of impact. To meet this Millennial demand for purposepurchase, most brands include transparency in their distribution channels and into their communication. This lets millennials into the behind-the-scenes of their possible purchase. The brands are attempting to 7
IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
meet the high concern for creating a meaning connected to the product. Moreover the majority of the brands practice reposting of customers’ pictures on social media, to share the experience of the brand by the given customers. To target Millennials, they use a strategy of featuring celebrities and social media influencers to state an example of the usage of the jewellery. This clarification of brands’ use of media channels concludes how this form of two-way communication with consumers benefits the brand and their reputability. 4.2 Communication as a part of retail Furthermore, the research has found that brands display more than one type of model to stress the diversity to Millennials. Specific jewellery pieces seen at Uno De 50, focus on their unique and chromatic designs. It is a common belief among the brands that they attempt to represent the core values of Millennials as a group, but also target the aspirations of Millennials. This is especially seen at Michael Kors, whose communication embodies a high-end jewellery and standard of luxury, for an affordable price. It is moreover a shared strategy between the brands to target in a personalised manner, yet still taking into account the individual needs of every millennial customer. It has become a question of the brand showing a conversation with the consumer, more than direct marketing in their communication strategy (Chapman, Carol. 2010. Authentic Brands Live their Story! Does Yours? The brand Ascension Group). Three out of the ten brands we chose are limited to e-commerce, which seems to have its advantages and disadvantages. The effectiveness of the brand communication judged by the consumer responses shows a bilateral opinion on online retail. Ad Hoc research shows that Millennials feel uncomfortable buying on online retail platforms. They stress the uncomfortable aspects of joining one’s personal information with an online platform and that the purchasing system is too complicated and demands too much of their time. At the same time, they emphasise the importance of an online platform for information search and evaluation of purchase alternatives. To this, the Ad Hoc research shows that millennials value the brand attributes of having a physical store to carry out the actual purchase (as a POS). In evaluation of this point it might be concluded that three out of ten of the main brands (PD Paola, Aran Jewels and Maria Pascual) are limited in relation to meeting the demand for a purchase within a physical store only practicing online retail. In relation to advertising, Ad Hoc shows that the brands function best when represented by an influencer in a PR relationship and not as sponsored content. Millennials seem to want to explore the market themselves, yet they still want to be served the latest trends by interacting with the brand, but without being forced. In order to implement better the two way process of communication, between the consumer and the brand, the brand needs to involve itself in as many useful media outlets possible. 8
IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
4.3 Media Gap According to the consumer responses there seems to be a gap in the use of social media. Ad Hoc research shows that more than 60% of the participants said that they “always use the social media platform Snapchat”. Comparing that with the use of social media platforms of the ten chosen brands, none of them seem to interact via Snapchat, but instead on Twitter, which only 6.4% is “always using”. This might be caused by the fact that the majority of the respondents commented that they use Snapchat for private interactions with friends and as a less serious social media platform compared to Instagram. Yet, the same respondents added that now the app is expanding with newsfeeds from different blogs and newspapers, and would like to expand their activities on Snapchat to grouped activities within communities. In these, there seems to be a gap of interaction on a wider scale with consumers. To this, 56% of our survey’s respondents stated that they spend a minimum of three to five hours a day on social media, including Snapchat. When evaluating these responses to the communication of the brands, it appears that social media is crucial for a brand to connect with millennials. Yet, nearly half of our respondents answered that they follow their own personal style. Although equally, results show that social media content influences most participants when buying jewellery. In order to support the consumer responses on the media gap within the market, a SWOT analysis is conducted to analyse how well each of the chosen brands is doing in the current period of time.
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
4.4 Swot analysis The following tables are the SWOT analysis for 3 of our 10 chosen brands, which are on the opposite ends from each other according to Ad Hoc research: 1. Pd Paola Strengths (internal affairs)
Weaknesses (internal affairs)
Opportunities (external affairs)
Threats (external affairs)
1. Affordability 2. Attractive to millennials 3. Present on social media displaying bright and natural aesthetics 4. Youthful working staff/employees 5. Offers special/occasional promotions 6. Minimalistic and simple product range 7. Use of big data 8. Designs ‘little treasure for today’s elegant and modern women 9. It is possible to buy packs with up to four pieces of jewellery in which the quality of the jewellery remains as buying single pieces 10. Reposting pictures from customers 11. Order tracking online 12. Shopping is possible 24/7/365 13. World wide shipping 14. Use of quality materials (gold plated) 15. Use of videos displaying new collections in fun and attractive environment 16. Mix & match concept adopted
1. Limited to online retail 2. Lack of Physical store, which might be considered crucial in relation to consumer responses. 3. Mainly displaying one type of female model 4. Diseconomies of introducing line extension of watches 5. Orders under 30€ have delivery/shipping as an extra expense 6. Express shipping (delivery within 24) is only available to mainland (Spain) 7. Express shipping is not available during sale periods/promotions 8. Limited service hours for customer service 9. No acceptance of returns, except when pieces delivered in unacceptable conditions.
1. Broaden use of social media platforms to Snapchat 2. Creating communities for followers to interact within 3. Events -> Giveaways and competitions on social media 4. Focus on micro influencers
1. Competitors transparency 2. Competitors use of competitions / giveaways on social media
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
2. Tiffany&Co. Strengths (internal affairs)
Weaknesses (internal affairs)
Opportunities (external affairs)
Threats (external affairs)
1. Brand equity: -> Easily recognizable (packaging) -> Has become a synonym with luxury 2. Well-established execution: -> Disciplined and controlled approach to pricing and unit development -> Including more silver pieces -> Including more fashionorientated lines 3. High emotional connection with consumers 4. Rich heritage filled with legendary jewels and milestones 5. Timeless elegance 6. Emphasizes holiday/occasional campaigns/promotions 7. Use of super influencers and celebrities 8. Present on a wide range of social media platforms, including Snapchat 9. Displayed in fashion and luxury magazines 10. Is expanding its assortment of affordable silver and fashion jewellery
1. “Not in trend” image caused by the 179 years on the jewelry market -> Might cause millennials to forget or feel no desire of the brand, in that they seek contemporary, modern designs. -> Yet Tiffany acknowledges this risk to which the brand hired a new design director, to help the brand achieve a creative edge 2. Seasonality: -> A high percentage (30%-35%) of the company’s sales are generated in the January quarter to which it becomes crucial to generate a strong holiday shopping season.
1. Further investment in new fashion lines (e.g Tiffany T collection) -> Gradually line extension might enlarge the customer base and bring more aspirational customers into the Tiffany community 2. International expansion -> Special focus on emerging countries where people are rising out of poverty and into the middle class. This economic improvement within an increasing middle class will enable Tiffany’s to expand its unit base abroad (China and large parts of Asia) 3. Opening of small-format stores 4. More transparency on social media (Instagram, Snapchat) 5. Creation of social media activities within communities on Snapchat or Instagram.
1. Overly expansion within fashion-orientated and average affordability lines might make the brand less desirable in the mind of the consumers due to the reduction of exclusivity and high-end prices. 2. Tiffany might seem less desirable to it core base of affluent clients if over appealing to aspirational consumers through line extension. 3. Competitive brands using micro influencers to engage further with customers through brand communication
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
3. Uno de 50 Strengths (internal affairs)
Weaknesses (internal affairs)
Opportunities (external affairs)
Threats (external affairs)
1. Handcrafted in mainland (Spain) 2. Artisanal design, natureinspired and organic forms. 3. Pieces celebrating unique, daring and independent women 4. Present on large scale of social media including own brand blog – contains a high millennial appeal, but the jewellery doesn’t reflect the same. -> Blogging regarding latest trends from Fashion Week within Clothing and compare new trends with the brand jewellery. 5. POS is both online and in physical stores 6. Occasional promotions 7. Affordable price range 8. As one of the few brands they function on Youtube 9. Jewellery + watches 10. More than 100 boutiques 11. 2 year guarantee 12. Transparency within distribution channels (manufacturing process) 13. Online chat for customer service 14. Reposting pictures from customers
1. Only free delivery over 100€ 2. The jewellery seems to edgy for target group and Ad hoc shows that none of the participant would buy a item. not desirable for millennials 3. Adapts to the fashion jewellery trends e.i. introducing ear cuffs, chokers and ring collections to wear all together on your hands, but doesn’t seem desirable for millennials 4. The handcrafted element gives the jewellery both a uniqueness (desired), but appears at the same time – the round edges makes it look old. 5. Packaging doesn’t say much about the brand – red box.
1. Remaining in the handcrafted origin of the jewellery, but adapting and investing in more fashionjewellery lines 2. Create communities in order to get deeper customer insights to enable a possible millennial targeted line. 3. Expand presence on social media platform to Snapchat 4. Use of micro influencers 5. Invest in packaging and customization
1. Competitors might be new brands such as Maria black, Maria Pascual and PD Paola due to their simplicity and jewellery for everyday use. 2. Brands with smaller and more focused product range
5. The Target Group 5.1 Millennials values Ad Hoc research clearly shows that millennial girls mainly celebrate the purpose behind brands, for example social purposes that align with their personal values (Fromm, Jeff, Advertising Age 2013). They are attracted to jewellery that include functional features they can benefit from. This concept is often referred to as “smart jewellery”. Both are powerful forces for influencing the purchasing decisions of millennial customers. Secondly, it is approved that sentiment is one of the biggest purchasing drivers, since their buying behaviour is always based on a deeper level of emotional connection, leading to taking 12
IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
action rather than just considering the purchase (Swartz, Lea, Luxury society by Digital Luxury Group 2015). It is more about the value and personal meaning behind the jewellery pieces than the price. Millennial girls appreciate and cherish the person buying a jewellery piece for her, and values that more than the jewellery item by itself, as we analysed in the primary qualitative research. Resulting from this approach to the Millennials values, companies are adapting their communication strategies towards this target group in order to achieve better interaction. 5.2 Personal interaction Nowadays, Millennials want companies to react to them directly and to interact with them on a personal level (Fromm, Jeff, Advertising Age 2013). As a result marketers can connect better with their target audience by including crowdsourcing into their marketing communication strategy. By letting them be able to operate as co-creators of a new product line, they help them connect and engage with the brand on a deeper and more private level (Bratvold, David. Convince&Convert.com, 2012). By using web videos marketers can enhance engagement because visual images are the most appealing and have the highest ROI among all types of content, as is stated by Business.com in it’s 2016 issue published on June 16 (Khan, Jawad, Business.com 2016). Another tool to use is big data to find out more about the geographic information, demographics, lifestyle and buying behaviour of the target group. Therefore customized products and services, as well as personalised Email-marketing and contextualized advertisings via Facebook are highly efficient, since Millennials are striving for experience and seek personal expression/statements through brands (Oxenford, A., Bingham, A., Evans, P., Miller, E., Maney, K., Salas, P., Varsavsky, M., Schrage, M., Purbrick, J. 2007, Bankinter) In comparison to the older target groups, Millennials are highly influenced by their friends and family (Miller, Ken, BoF 2010), as Ad Hoc qualitative research clearly approves. The results of this research show that the participants have a high concern for opinions and advice from friends and family before considering the purchase of a jewellery item. They are unresponsive to traditional marketing strategies, since they are more aware of marketers targeting strategies online, yet they are the most responsive generation when it comes to online offers (Active Media, 2016). Taking all the specifications of the target group into consideration, a conclusion can be drawn regarding the operation of our own brand. All of the details of this aspect will be discussed in the conclusion section of this report.
6. Conclusion 6.1 Strategy We will be focusing on adopting a 360 degree approach to our Marketing Mix strategies explained in detail in following paragraphs. Our chosen brand’s values are: speed, purpose and authenticity. We want 13
IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
to focus on speed, regarding availability of latest trends and also offering fast service to our customers. We point out the importance of purpose, regarding the social values we put into our brand in all stages of production, manufacturing and retail. This will allow us to create a large community of people and advocate for a trustworthy relationship between them, which will increase loyalty. Authenticity, our last value, will be displayed by our marketing transparency. This will be and shown by including background information as well as openly sharing inclusive personal information of the company. Since Millennials nowadays can easily interpret marketing strategies, it is crucial for our company to earn a trustworthy relationship with our customers and promote an honest approach. We will act on aligning to our brand’s values and aim to operate inside the brand culture, that each of our customers can be part of. 6.2 Price The Price of the products made by our company will lie at below 200 euros per piece of jewellery. However, as it is supported by Ad Hoc (81,1% of the responses), the most popular price range amongst our respondents was €20-60 per piece of jewellery. 6.3 Product Our main Product attribute is simplicity, but with an added edge and a modern twist. The jewellery sold will be mainly gold plated and sterling silver pieces, since these were the highest chosen categories by 58% of the respondents. Our product range will contain jewellery for everyday use, but also special pieces for special occasions. We figured out that style is key when purchasing, according to 51,4% of the respondents. We will offer a wide product range, that consists mainly of earrings, necklaces, and rings. We have collected clear quantitative data from our conducted questionnaires, showing that 47.8% of the respondents said that “Simple and minimalistic / clean” jewellery style if their favourite. At the same time, 44.9% of the responses said that “Classy and elegant” jewellery is also wearable for them. In addition, we have found that the most non-desired styles are “dark and gothic” (71,0% of the responses), and “Chunky/statement pieces” (41.3% of responses), which also gives us information on what styles we should not gravitate towards. 6.4 Placement As for the Placement of our jewellery, we will be selling in both online and physical stores. In the support of that concept we will be linking the value of technology since that makes shopping itself easier and creates a pleasant shopping experience for our customers. The points of sale will include multibrand stores also supported by Ad Hoc. 37.7% of respondents said that they prefer shopping for jewellery in multibrand stores (physical), and 65,9% said it is important to touch and feel the products while shopping. As a result, 32,6% finds themselve “unintendedly finding jewellery when going shopping for 14
IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
clothes�. This concept can be most easily achieved in a multibrand store environment. We will be using an Indirect short distribution channel, to deliver the products straight to the POS. For our brand these will include multibrand stores, our own retail stores and online shop warehouses / storage facility. 6.5 Promotion Considering the promotion of our brand and it’s presence on social media - competitions/giveaways are one of top options to create communities. These events allow an interaction and socialization of a current or potential customer base. We will focus on using interactive advertising strategies, for example the customers will be to mention three friends in a comment on our page in order to get a deal / offer. In addition to this, we will offer occasional promotions. This strategy choice is supported by Ad Hoc, as this leads to exponential growth, due to an increase in brand awareness. 6.6 Platforms for personalised shopping We will be using Instagram as one of our platforms: portraying lifestyle situations with the jewellery displayed as a part of the composition. Another technique is the use of mix&match, which we have discussed in detail earlier on. This idea is the most appealing as shown in Ad Hoc focus group. It is important to stress the fact that Snapchat is a significant platform to make use of. This social media platform was the most used according to the respondents. As well as this, it allows for an easy two way interaction between the producer and the customer in getting direct feedback. We will also adopt the use of web videos: they call to action, which is important for enhanced engagement. Another point to make is the need of working with influencers and celebrities to attract their fan bases to the brand and increase the size of the target group and number of people reached. Personalised shopping is another way of attracting the modern customer, which will be achieved by our brand through the use of big data for personalised contextualised content. The utilisation of an omni-channel sales approach should be taken into account, as recent research shows that it is most effective on today’s consumers. This strategy helps provide the customer with an integrated shopping experience. Therefore we will be sure to develop our own unique omni-channel infrastructure in our brand. The customers will then be able to interact with the brand in both physical and online stores via mobile and other electronic devices, apps, social media platforms or magazines and vice versa.
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IED Barcelona Ba (Hons.) Fashion Marketing and Communication CWK 2: Marketing and Communication Report
Level 4 01/02/2017
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