mothercare
Executive Summary 2015
Anna Robbins N0422553
961 words.
Current Situation In this report, I will be analyzing the current position of the Mothercare brand within the UK market. Mothercare is a UK based multichannel retailer specializing in products for parents and young children. Established in 1961 the brand has long been recognized as the UK market leader, however recently the brand began facing difficulty through an increase in competition and slow response to market changes, resulting in a £21.5 million loss in 2014. With a tired brand and financial instability it was my aim to produce a three year marketing strategy plan incorporating a one year tactical communications plan to help improve the brand’s performance within the UK.
Fig 1. Mothercare Catalgoue 1981
In 2014 the brand pushed their online presence, redeveloping the website and launching an app in May. Both of these online platforms have been very successful, with a 16% increase in online sales and the app receiving a 4.5 out of 5 rating on the app store. These changes have helped move the brand forward online, however in store there is still no change.
Fig 2. Profit/ Loss table, Mothercare Annual Review 2014
Fig 3. Baby product market shares, 2013, Mintel.
Research My first step was to conduct primary research into the brand and market. I achieved a sample of 53 by conducting an online survey targeting parents on online platforms such as the Mothercare Facebook page and mumsnet.com as I felt this is the ideal place to capture the traffic of my target audience. I then went to a local nursery and interviewed 6 parents regarding their shopping preferences when looking for products for their children and asked for their feedback on the Mothercare online channels. Following this, my final step was to visit a Mothercare store. Through observation I got a sense of the store environment and customer interaction with the brand, and again I questioned four shoppers on their experiences. Overall I felt
Fig 4. Own photo from Mothercare store primry research
my primary research was a great success, with a wide range of opinions and insights gathered. To get a broader understanding of the market I also engaged in secondary research through reports such as Mintel, Keynote and Mothercares published documents. I found articles on sources such as drapers, marketing weekly and the Financial Times particularly insightful during this stage of my research.
Key Insights My key findings from the research were that despite deteriorating sales the brand was still relevant in customers minds when asked to think of baby product retailers, highlighting it has not lost consumer awareness or trust, as most parents went on to associate the brand with high quality of goods, something that 90% of parents said they placed at the highest importance. Fig 5. Online Survey primary research results.
Fig 6. Word cloud from primary research
However, I found that the main deterrent for customers was that the brand had lost its indulgent feel, they couldn’t see the added benefits anymore; resulting in being perceived as expensive for what it offers. The service and store offer no differentiation to much of the competition who are under cutting the brand on price and convenience, something that time poor parents felt was a key strength in the market. Consumers highlighted they felt as a specialist store the experience should be more than “products on shelves� and more exciting, something that would encourage them to divert to the store. 79% of my sample said they felt knowledge and information about baby products is key to final purchase decisions; with many now turning to online baby blogs for advice.
Fig 7. Quote from primary research
Objectives Concluding from this, I developed 3 new marketing objectives for the brand:
Strategy My recommended strategy for the brand is to create Mothercare “showrooms” which go against shopping norms, creating a highly interactive and educational day trip for the whole family. I wanted Mothercare to be an exciting one-stop trip for expecting parents; inspired by the way people treat a trip to Ikea when moving into a new home. Stores will take parents on a journey through products suited to their baby’s needs, focusing on larger purchases such as car seats, pushchairs and nursery furniture, as research highlighted these are the biggest market sellers. Each of the areas within store will have interactive information screens and specially trained staff. A condensed clothing range will be sold in store, with most being moved online as research shows this is the biggest online seller, a future collaboration with a high end brand, such as “Les Petites Abeilles” will be developed to help the brand compete within the clothing market, while reducing the age range of clothing to five to reduce costs.
Fig 8. Proposed Store Layout Design
Communications
Fig 9. Current Mothercare Family card advertising
The communication plan for the brand is to raise awareness of their loyalty card, which offers a 5% return on all purchases. Little is known about the program within the UK with it being most predominant in Ireland. I will use below the line advertisements such as brought online advertising space on key UK baby blogs, direct emails, offering a “recommend a friend� incentive and having a stall at the annual Baby show UK.
Fig 10. Primary research results, Loyalty program
This proposed strategy would be carried out over three years with the communication plan over the first year. With the continued development of the brand along with improved in store brand experience I believe Mothercare can once again become a brand parents will aspire to and this will increase high end sales, returning the UK stores to become profitable.
List of Figures Fig 1. Mothercare Catalogue Cover, 1981, Mothercare archives. Fig 2. Profit/ Loss Accounts, Mothercare Annual Report 2014 Fig 3. Baby products market 2013, key companies shares, information from Mintel, baby products market report, 2013. Fig 4. Own image from primary research at Mothercare Store, Dec 2014. Fig 5. Primary research results, Market leaders Fig 6. Primary research results, word cloud, brand perception Fig 7. Primary research results, Quote from interviewee. Fig 8. Proposed showroom design mock up. Fig 9. Mothercare family card advertising, 2014, http://www.mummypages.ie/ introducing-the-mothercare-family-card Fig 10. Primary research results, loyalty program
Word Count 961.