boohoo Marketing Strategy and Communication Chloe Weston N0733476
3930 Words
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Introduction Methodology
WHERE THEY ARE NOW About the brand Brand Performance Market Overview PESTLE Macro/Micro Trends Core Competencies Current Campaigns Competitors Consumers Customer Journey Map Social Media Audit Shopping Experience Brand Issues/Challenges
35-36 37-38 39-40 41-42 43-44 45-46
WHERE THEY WANT TO GET TO
3 Year Marketing Strategy SMART Objectives Consumer Year 1 Year 2 Year 3
1-2 3-4
7-8 9-10 11-12 13-14 15-16 17-18 19-20 21-22 23-24 25-26 27-28 29-30 31-32
HOW THEY WILL GET THERE Communication Plan Budget Measurements/ATL&BTL Conclusion
61-65 66-69 70-72 73-77
Appendix Image References References Bibliography
49-54 55-56 57-58 59-60
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Introduction Fashion ecommerce has dominated the retail market in the last 20 years. With the rise of social media and an excessive new demand for fast-fashion, physical shopping is loosing preference over online buying, with 53% of Millennials finding online shopping more convenient (McDonald, 2018). One brand that has utilized this change is boohoo. This online-only fast fashion Etailer offers easy access to the latest trends at an affordable price targeted towards a younger demographic that are now actively more comfortable shopping from the comfort of their own home. But as ecommerce becomes saturated with fashion brands that are putting online marketing and sales at the forefront of their communication, the differentiation of brands and the need to retain consumers is becoming increasingly challenging (Pozin, 2018). This report will explore what improvements boohoo can make across their site, shopping experience and social channels to aid customer retention, distinguish themselves among main competitors and drive brand engagement alongside sales within the rapid growing UK Etailer and Fashion market. From this a three-year strategic marketing plan as to how the brand can progress alongside market innovation will be developed. Furthermore a one-year communication plan that shows how boohoo can effectively utilize communication tools to begin to improve the brand will be established. This report will equally show how the brand can target the core demographic of 19-21 year olds that are quickly becoming an Etailers dominant source of sales.
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Methodology Secondary Research In order to structure a marketing strategy and communication plan for boohoo, relevant Primary and Secondary research was conducted to observe the current and future market, where the brand is situated within this and overall what trends are present within the market that can be utilised. Secondary research was conducted through credible sources, The Financial Times and boohoo PLC were used to gather market share and financial information on the brand and the boohoo website was used to develop the initial perceptions of the brand. Sources such as Euromonitor and Passport were further used to identify trends within the Etailer market and how boohoo fits within this. Credible competitor analysis was conducted through each opposing brands website for an accurate portrayal. The benefits of this research are that it provides an in depth review of brand health and the overall market as well as the ease of access and credibility helping to support the relevance of the report. However, it does not give an insight into consumer perceptions and experiences with the brand, an element that is key for this report and is in turn fulfilled through primary research.
Primary Research Primary research was conducted to aid the Secondary research. An online survey was shared to discover consumer perception and awareness of boohoo as well as what the target consumer wants from their shopping experience. The limitations from this were that the age range that answered was restricted and often irrelevant due to it being shared through Facebook, therefore not only reaching the brands 19-21 target demographic. This was however added upon through three interviews with the core demographic to discover why they do/do not shop with the brand and what they would like to see from boohoo, in turn gaining a wider understanding of where the brand sits with their intended consumer. Interviews with brand representatives and a brand presentation from boohoo itself were also provided to gain industry knowledge as to how the brand perceives themselves and how this correlates to what is presented to consumers.
Key results from the survey
Key results from the interviews
100 Respondents.
3 Respondents.
63% of respondents have not shopped with boohoo before.
‘The brand’s social media should be more relevent/product centric with less images from other accounts’
Perceptions of the brand include: ‘Trendy, aimed at 18-30’ ‘Up to date fashion’ ‘Hit or miss with quality’
‘The boohoo website is very cluttered and I find it difficult to use when looking for something in specific’
54% of respondents stated that they are most influenced by discounts when purchasing online.
‘I could not differenciate a boohoo advert from a similar brand’s advert’ 3
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Where they are now
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About the brand Founded in 2006 by Mahmud Kamani and Carol Kane, boohoo quickly became one of the first established fashion Etailers to dominate the fast fashion market by offering easy access to up to date styles and trends to consumers (boohoo, 2018). The brand has a primary demographic of 16-24 year olds and during its years of success has launched globally across the US and Australia and ships to 240 countries with its choice of over 36,000 products ranging from women and menswear to beauty. The boohoo group has become one of the leading online fashion retail agencies, alongside boohoo, boohooMAN, PrettyLittleThing and Nasty Gal; the brand ensures they are the first in the industry to promote and sell the latest trends (boohoo, 2018).
What The Brand Does
SELL
APPAREL
DESIGN
SHOES
ACCESSORIES
MARKET
SOURCE BEAUTY PRODUCTS
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“WE ARE ENTIRELY FOCUSSED ON OUR CUSTOMERS AND EVERY ELEMENT OF OUR MODEL BEGINS AND ENDS WITH THEM. WE ENGAGE, WE LISTEN, WE LEARN, WE CREATE AND REPEAT.” -boohoo PLC, 2017.
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Brand Performance The brand boohoo has seen a significant increase in sales and market share from 2017 to 2018. Overall brand revenue has increased by 32% within the 12 months, with average order value accompanying this through a further 4% increase (Rovnick et al, 2018). Regional group revenue has in turn scaled up, sales in the United Kingdom have almost doubled from the 2017 revenue of £182 million to the 2018 revenue of £355.6 million, indicating the brand’s clear point of focus for sales is on it’s origin country (boohoo PLC, 2017). Further regional sales in the United States and the rest of the world have seen an average of 90% increase, clearly portraying the growing awareness and perceptions surrounding boohoo within the previous 12 months (boohoo PLC,2018). Overall group brand revenue is expected to keep this increase in future years, with 2020 revenue predicted to grow to around £1 billion and 2021 revenue averaging at £1.3 billion (Market-Screener, 2018).
United Kingdom
£355.6m Rest of the World
£65.2m United States
£92.7m
Rest of the Europe
£66.3m
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2016 £195.4m
2018 £374.1m
REVENUE 2017 £283.4m
CONVERSION RATE TO SALE
+30BPS
2018 2017
4.3% 4.0%
+4%
AVERAGE ORDER VALUE 2018 2017
£39.25 £37.76
+6%
ITEMS PER BASKET 2018 2017
3.06 2.89
NUMBER OF ORDERS
+22%
2018 2017
13.6M 11.1M
The number of active customers increased by 22% to 6.4 million from 2017-2018. In addition, a 0.3% increase in conversion rate to sales was calculated through the boohoo website alone, a significant increase against competitors such as Topshop which saw a 1.6% conversion rate in 2018 (Guesswork, 2018). Order value and numbers further increased within the 12 months, with items per basket rising by 6% and overall orders increasing by 2.5 million.
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With 2018 revenue of £374.1 million, boohoo has contributed 0.12% to all Ecommerce sales within 2018. This places boohoo as one of the top brand to hold a share within this market, with only the brand’s top competitor ASOS reaching above with a share of 0.65%. Womenswear is the dominant contributor towards this market share and annual revenue. Ranges such as dresses, tops, jackets and in addition footwear have continued to expand allowing significant profit. The development of the boohoo plus and petite ranges have contributed to an extra 10% of revenue within the year also, predominantly advertised through the #Doyourthing campaign that promotes inclusivity (boohoo PLC, 2018).
0.05% of all Ecommerce Sales in 2018 11
Market Overview boohoo operates predominantly within the Ecommerce market. In 2018, this gathered revenue of $481.2 billion and is expected to rapidly increase within the forthcoming years, predicting to almost double by 2022. Within this, boohoo is placed in the apparel, shoes, accessories and, more recently, the beauty market. All markets are expected to increase by a minimum of 10% by 2022, with the highest being the apparel ecommerce market, which is forecast to increase by 49% in just 4 years.
APPAREL
$475B
+40%
SHOES $96B
2022
$135B
+53%
ACCESSORIES $67B
2022
$103B
+13%
BEAUTY PRODUCTS 2018 2022
2018 $481.2b
$317B
2022
2018
ECOMMERCE REVENUE
+49%
2018
2018
2022 $712.9b
$68.7B $77.8B
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(Orendorff, 2018) (Statista, 2018) (Owler, 2018)
PESTLE POLITICAL
ECONOMIC
At present, political influences on the market include Brexit and even the multiple general elections in recent years. Despite these factors and the fact that the Brexit deals will be followed by the value decrease of the UK pound and any future change in laws (Dixon and Jo, 2017), boohoo has not seen any affects on its sales and revenue and has continued to make profits. However, once a Brexit deal or no deal is presented, laws and sales across Europe and even the rest of the world could change significantly. SOCIAL
Disposable income rates and Brexit have caused a significant change in spending in recent years. Millennials are now being called spenders not savers due to increasingly less financial security for the future meaning that there is little income able to be saved, particularly for students. This is beneficial for boohoo as Millennials, mainly aged 1921, are the brands core consumer, hence the continuous increase in profits for the brand over recent years (Petro, 2018).
Social media influence dominated the market at present and it is used as a way to easily communicate brand sales and values towards a wide demographic. Consumers can also share their brand experience create more user generated content which is beneficial for boohoo communication (Ypulse, 2018). Within this, boohoo lacks relevence, as, despite having a range of social media platforms and being heavily active within this, they do not post continuously relevent and engaging content through these. In addition, it is becoming more difficult for Millennials to get on the property ladder, causing them to live at home for longer. This may allow them to have more of a disposable income and could allow them to spend more on luxuires such as new outfits, a heavy impact on boohoo’s sales in return. LEGAL
Technology is becoming an increasing factor within the market today. Ecommerce sales has seen an 84% increase between 2011 and 2016 (Euromonitor, 2016) and social media is becoming an essential form of brand communication, with both aspects becoming crucial to brand marketing strategy in the forthcoming years. This is essential to boohoo as their only form of revenue and sales is produced online, as they have no physical stores. With the decline of the high street becoming apparent also, the move towards technology and online for brands is essential for survival (Shaw, 2018).
Online brands have certain obligations to be transparent with their consumers about sales and their sustainability, something that is crucial to success in the era of the internet (Saunders, 2018). In addition, the upcoming Brexit could bring changes in EU regulations that could bring further changes in the way brands market their products and further how they are priced and where they are sold, in turn affecting boohoo’s international sales.
Due to consumers becoming increasingly aware of environmental issues, these factors are beginning to have an impact on all brands. At present, boohoo are one of the popular fast fashion brands that are lacking sustainability and has come at the forefront of consumer attention with their sale of ÂŁ5 dresses (Ferguson, 2018).
TECHNOLOGY
ENVIRONMENTAL
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Macro/Micro Trends Trend
ANYWHERE ECOMMERCE
INNOVATIVE TECHNOLOGY
Description Anywhere Ecommerce includes branded content being found across all communication platforms. The combination of fashion and social media allows brand to communicate with consumers 24/7 and therefore build brand awareness and even loyalty from this. Product centric content and influencer marketing has further become a forefront marketing strategy for all brands, with Instagram holding brand engagement rates with an average of 13.71% of users actively communicating with this marketing; much higher than the 0.43% on Facebook. Affiliate marketing is also dominant within this macro trend as it offers consumers easy and direct access to the content they are seeing on social channels, in turn making the customer journey easier and quicker, aiding the demand for fast fashion (Orendorff, 2018). With online shopping growing, brands have to incorporate new and innovative technology in order to make their consumer journey as easy, beneficial and unique as possible. One section of tech that brands are beginning to incorporate is online sizing. This includes the consumer putting their own body measurements, preferred fit and opinions on previously bought items onto the website which in turn allows brands to provide the best size/item for your specific body type and preferences, providing a more accurate and beneficial experience for the consumer. Expanding within this, brands such as ASOS are now using technology to create personalised trend boards for consumers where they can find products suiting their individual style (Roberts, 2018).
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At present, boohoo is using the anywhere Ecommerce trend through their saturated social media platforms and communication tools. Where this lacks is through often irrelevant content being presented on social channels rather than utilising this to market product centric and influencer content. Personalisation is key for boohoo’s marketing with the use of unique home pages, discounts and emails and is therefore a trend that the brand uses to it’s full potential. Improvements within this would be to incorporate more innovative technology within the shopping experience to make it easier for the consumer and to incorporate sustainability within the brand’s mission and USP.
Trend
PERSONALISATION
ETHICAL FASHION
Description At present, 43% of purchases are influenced by personalised recommendations or promotions and 75% of consumers prefer brands to personalize messages and experiences. In addition, 94% of companies see personalisation as an essential marketing tool. New developments within this include creating tailored home pages for frequent visitors to websites in order for a more effective experience (Orendorff, 2018). Website context cookies are also being utilised to map individual customer journeys and observe how they shop, how long for and how they got to certain points within the shopping experience, something that is further used to tailor marketing and promotions through social media, emails and subscriptions, making the consumer feel more in touch with the brand and it’s communications (Goebel, 2015). The drive for ethical and sustainable fashion has become relevant in the last 10 years due to fast fashion brands now rotating new stock on a weekly basis. This is allowing consumers to become accustomed to buying cheap and quickly produced product which is in turn contributing to an average of £140 million worth of used clothing being disposed of each year and consumers are beginning to become more environmentally aware and want to inspire change. From this, companies are looking to invest more into their CSR and are looking at how they can transform their brands to become more eco-friendly and even vegan. Examples of this are UGGS who now use vegetable leather tanning and Reformation now using more eco-friendly denim dying (Rolland, 2018).
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Core Competencies MISSION To provide on trend fastfashion for consumers whilst being guided by the inclusive culture of the brand and their sustainable and fair operations (boohoo PLC, 2018).
VISION
USP
To be recognised as the leading Ecommerce fashion retailer for the target demographic of 16-30 year olds through understanding competitors, delivering growth and innovation to increase market share and by continuously driving consumer engagement through all communication forms (boohoo PLC, 2018).
The brand’s USP comes from their vision to keep up to date with current trends, actively communicate with consumers, provide a tone of voice that is friendly and fun and predominantly promote inclusivity within the brand. This is highly similar to competitors; there is no dominant USP within this brand and the overall market and is therefore not aiding consumer retention (boohoo Presentation, 2018).
ARCHETYPES
30% Lover
50% Diva/Glamour
20% Rebel 17
The Key archetypes for boohoo are the Diva/Glamour, Lover and Rebel. This is primarily shown through promotional aspects, campaigns and overall website theme. In addition this targets a younger and friendlier core demographic (Gabor,2017).
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Campaign
Communications In recent years, boohoo has placed more focus on campaigning their plus range through the use of important celebrity influencers, something that has become a core competency for the brand. The most recent campaign for this is the collection with Gemma Collins, a reality TV star that has become an advocate for body positivity since her rise to fame. This collection is also largely campaigned through social channels and the boohoo website.
One key marketing tools used by boohoo is the use of current and mainstream influencers. In a more recent Christmas campaign, Love Island stars Kaz Crossley, Alexandra Cane and Kendall Rae Knight are the face of boohoo’s latest collection. This campaign is predominantly online and is shown across all social channels as well as being promoted through these influencer’s social media.
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Current Campaigns Campaign
Communications boohoo uses on the move marketing as their main form of offline marketing. This often incorporates either a recent campaign, such as the #Doyourthing campaign, or simply a bold print with the boohoo logo. This is an effective way of increasing brand awareness as it enables the brand to target a greater demographic as the promotion is constantly moving. This further places the brand within the high street atmosphere, something that the brand therefore lacks as they do not have any physical stores.
The long running #Doyourthing campaign incorporates the brand’s core competencies of being inclusive, fun and friendly. This is dominant across all brand social channels as well as being at the forefront of the boohoo website. This is also one of the more dominant campaigns to be promoted both on and offline through billboards, bus stops etc. This more in depth use of the brand’s vision accompanied with the combination of both on and offline promotion has kept stable brand awareness, with 30% of 18-24 year olds stating that they would consider boohoo when making their next purchase after seeing these campaigns (boohoo Presentation, 2018).
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Main Competitors boohoo
Communications boohoo is an online only brand and are heavily active on all social media. Offline marketing is limited to vehicle promotions and billboards and revolves around a party/glamour theme. Influencers and collaborations are key for boohoo's awareness.
Topshop
Topshop opperated both on and offline. They are also heavily active across all social channels and are limited with collaborations.Their promotion is a mixture of glamour and simplicity.
PrettyLittleThing
An online only brand that is highly similar to competitors. Heavily active on social channels and promotional themes surround glamour/rebellion.
InTheStyle
An online only brand that is limited in its promotion. They offer constant collaborations with current and upcoming influencers which is promoted dominantly on social media.
Asos
Online only and uses social channels to promote new lines, brands and blog posts they offer. Tone of voice is simple and superior and they are selective with discounts.
Missguided
Opperated both online and has a selected amount of stores providing an exclusive feel to the brand. They are highly similar to boohoo and PLT in terms of glamour/rebellious themes within promotions. They are active with influencers however not as much as competitors.
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Competitors Strong Brand Personality/USP
Constant Discounts
Limited/Seasonal Discounts
Weak Brand Personality/USP
This positioning map communicates boohoo’s market position in relation to its competitors through evaluating the strength of brand USP against what promotional offerings they offer to consumers. The brand currently has a weak brand personality due to it’s similarity to competitors such as Missguided and PrettyLittleThing who all offer somewhat identical product ranges and promote a similar tone of voice. In addition, compared to key competitors such as Asos and Topshop, boohoo offer almost constant discounts/deals which aids awareness as, from conducting a survey, over 50% of respondents stated that this is a key influencer in purchase decisions, however, by limiting this a more exclusive and in turn stronger USP may be established over competitors who have similar offerings.
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Consumers Consumer
Consumer Profile (Psychographics) The Fashion Student
The Working Young Adult
The Influenced Teen
Rebecca is a 20 year old female who is originally from Surrey and is currently in her second year of study on a Fashion Journalism course at a London University. She is heavily interested in fashion and keeps up to date with current events within the market and has a wide understanding of current influencers and brands. Her style is smart yet bold and she enjoys experimenting with prints, she dresses for the job she wants and is highly motivated to succeed. Being a student, Rebecca has an active social life and is always looking for new and unique outfits to wear. She follows new trends heavily and is consistently active across all social media platforms. Her interests include blogging, spending time with friends and visiting unique places. Emily is a 22 year old female who is currently working at a small marketing firm in Manchester where she began as an apprentice at 18. She takes pride in her appearance and enjoys incorporating current trends into her daily wardrobe, however she is often lost as to where is best and easiest to buy her clothes. She is active on social media and looks to influencers in similar situations as hers for style and daily motivation. Emily enjoys reading and follows important news stories. Her often busy schedule means that she has little time to go shopping therefore online shopping is her go to afternoon activity; she is looking for current, simple and fast fashion at an affordable price to wear at work socials and is looking for comfortable clothes on the weekends. Hannah is a 15 year old female who is currently studying for her first set of exams at Secondary School in Birmingham. She has no distinct style yet and enjoys experimenting with different trends to see where her comfort lies. Hannah is always on social media and follows a large amount of influencers and bloggers by which she gets fashion and life inspiration from as she is still deciding what career path to take when she finishes school. She loves watching reality TV and often buys what she sees her favourite celebrities wearing or promoting if it is within the small allowance her parents give her each month. She is always looking for cheap clothes online, loves to go window shopping with friends and is heavily influenced by what her friends like and wear.
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Forms of Communication
Awareness/ Stimulus
Consideration/ Interest
Purchase
Experience Product
Digital Communication TV
Social Discovery
Search
Consumer puts related content to brand in search engine. They browse through the options and land on the boohoo main website through SEO marketing.
Website/Mobile
Phone/Technology Product Experience
Affiliated link takes consumer to boohoo website. Consumer overlooks hompage which may be personalized subject to them being a returning/new customer. Subsections are then followed depending on customer needs.
The shopping experience is the closed. Consumer may decide to share experience/opinions on socials and/or with peers andremember this for future purchase decisions. Consumer interest is peaked and further website and specific product searches are made and more items are considered/added to basket.
Steps are followed to purchase. Login details are required either as a loyal customer or guest with the option for CRM/promotions/ discounts.
Purchase is made on phone/tablet/ laptop. Steps are followed to ensure promotions and deals are applied and delivery information is provided.
Products are delivered to chosen option and consumer experiences them. They then decide on whether they are happy with their purchase and if they are keeping the items.
Home/work
The two main customer journeys for boohoo originate from discovering an interest for products through social media campaigns or product placement on sites and SEO searches. While TV advertising, email marketing, on the move awareness and peer suggestions are also key to boohoo’s sales, both social media and SEO searches will almost always be key touchpoints within a customers journey with the brand. To improve, communication across all social channels should be product and collaboration focused to drive maximum sales through these customer journeys. Sticking points within this include consumers not being able to access the full range of products due to the amount offered on site and the overflowing aesthetic of the site, something suggested in consumer interviews as a reason for disinterest in the brand, therefore significantly restricting potential sales.
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Consumer Journey Map Forms of Communication
Awareness/ Stimulus
Consideration/ Interest
Purchase
Experience Product
Digital Communication TV
Social Discovery
Video/Product/Influencer content seen on social media (Facebook, Instagram, Twitter). Consumer is made aware of product and follows affiliated link for possible purchase.
Consumer interest is peaked and further website searches/ similar product links are followed and more items are considered and added to basket.
Search
Website/Mobile
Phone/Technology Product Experience
The shopping experience is the closed. Consumer may decide to share experience/opinions on socials and/or with peers andremember this for future purchase decisions.
Affiliated link takes consumer to boohoo website and/or product specfifc page. Consumer overlooks product and decides to choose sizing and add to basket.
Steps are followed to purchase. Login details are required either as a loyal customer or guest with the option for CRM/promotions/ discounts.
Purchase is made on phone/tablet/ laptop. Steps are followed to ensure promotions and deals are applied and delivery information is provided.
Products are delivered to chosen option and consumer experiences them. They then decide on whether they are happy with their purchase and if they are keeping the items.
Home/work
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facebook and twitter
Facebook and Twitter are used in a similar way to Instagram. There is more focus on upcoming lines and collaborations and there is even more consumer engagement through the separate Twitter handle for customer service. However, both social channels still post third party content and would benefit from keeping content within the fashion market and about the brand.
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Social Media Audit The brand is most active on Instagram. They have 5.8 million followers and promote relevant hashtags for B2C and C2C engagement. Content includes a mixture of product promotion, current events and relatable quotes. From the survey and interviews conducted, perceptions of the content include that the social media should be more relevant to core competencies of the brand and the products they offer as opposed to sharing images from other influencer social channels and ‘relatable’ tweets as these can be found elsewhere and would in turn help boost new product awareness.
More product and promotion centric content is uploaded on the boohoo Instagram story. Here the brand actively engages with its consumers to see what current trends they are enjoying and use this as a way to promote new collaborations with influencers. This is something that should be further expanded into the brands main posts for maximum engagement.
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1 2 3 Overwhelming content found to be a sticking point for consumers.
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Shopping Experience
4
Ease of shopping experience found to be another sticking point for consumers due to difficulty refining searches.
An evaluation of boohoo’s website has been conducted through following a basic shopping experience alongside current consumer perceptions in order to gage what consumers like about the shopping experience as well as points of struggle within this. Initially, the website promotes discounts and new lines relevant to who is shopping (i.e. Student discounts for student consumers are shown). Following this, when accessing the product subsections, consumers are met with a wide range of choices, something that, from primary research conducted, consumers have stated they find overwhelming and time consuming to look through when they do not have a specific product in mind. After accessing one of the main product sections a further list of options is provided for the consumer to choose from, refining their search. However, on evaluation, it is shown that through this refining, it has taken more than three more stages in order to find a more specific product, in this case little black dresses, which in turn still provides 500+ products on offer to consumers. To contest this, boohoo should consider cutting down the product range enabling an easier and more beneficial consumer shopping experience, further boosting brand engagement and perceptions.
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Brand Issues/Challenges (SWOT) Strengths
Weaknesses
Website is continuously updated with current trends to keep in line with competitors.
Wide product range means that consumers may not have access to the full offerings from the brand as they may not scroll through all sections.
The brand offers a wide product range which places them within different markets, reaching a wider consumer range.
Social media content is often irrelevant to the brand’s offerings and USP and communication with the consumer lacks due to this.
Social media and influencers are used in an active way to engage with the brand’s target demographic.
Wide product range crowds website making it time consuming for the modern time conscious consumer.
Offer a wide range of discounts indicating an awareness of their core consumer
Love Island personalities are used in an already Some brand influencers are effective in relating oversaturated market, promoting the brand as to the core demographic such as Gemma trying to be too relatable and current. Collins and Fashion Influx Often-poor quality clothing and inconsistent 6.4 Million active consumers 2018 sizing problems. Not currently a sustainable brand.
Opportunities
Threats
Provide more accuracy by using what’s my size technology.
Saturated fashion Etailer market meaning it is challenging for the brand to differentiate themselves from competitors.
Cut down product range to make it easier for consumers to shop with the brand. Make each option have 5-10 pages to keep customer engagement.
Lack of physical store decreases footfall and possible brand awareness, unlike some of key competitors (Missguided, Topshop).
Redesign website making shopping experience easier.
Poor sustainability and constant sales place brand perceptions at a disadvantage.
Build Sustainability within the range through new lines and collaborations.
Large product range means that consumers don’t have access to full range of products on offer and they may loose interest.
New campaign using brand USP of inclusivity – show range of consumers in everyday situations such as spending time with family, at school ect. 32
Where they want to get to
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3 Year Marketing Strategy Plan
This three-year marketing strategy plan is used to layout the long-term plan for boohoo, whilst including a tactical communication plan that will be carried out within the first year with the aim of improving brand awareness and perceptions. The overall aim of this plan is to improve B2C engagement, aid customer retention through creating a more innovative shopping experience and provide the brand with a strong and distinguished USP. This is so that, as the fashion ecommerce market becomes even more saturated, boohoo’s updated USP will keep them at the forefront of consumer’s minds.
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SMART Objectives
Years Year 1 (Communication Plan)
Year 2
Year 3
SMART Objectives To increase expected revenue for 2019 by 5% through expanded forms of communication and influential marketing. To increase customer retention for 2019 by 5% through an updated brand image and a more straightforward innovative shopping experience. To distinguish boohoo amoung main competitors through collaborations relating to expanding the already present but weak USP. This will be measured by a 5% increase in customer retention by 2021. To increase predicted 2021 sales by a further 5% through the promotion of a new sustainable range/collboration by the beginning of 2022. By 2023, sustainability will be a factor in boohoo's USP, in turn distinguishing themselves amoung other dominant competitors.
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Redefined Consumer
Through this marketing strategy plan the aim is to target a wider demographic. While still targeting the core consumers such as the fashion student, working young adult and influenced teen, boohoo’s aim would be to focus on targeting the environmentally conscious consumer in addition. As sustainability and throw away fashion culture are becoming dominant within this market, Millennials and young adults are becoming more aware of the ways in which they have an impact on this and in turn how they can make a difference (Baker, 2015). Within this, boohoo’s aim, while again still targeting the present consumers, is to refine this to a 19-21 demographic, something which will be achieved through the later years in the marketing plan.
Consumer Environmentally Conscious Consumer
Consumer Profile (Psychographics) Sarah is a 21 year old female currently studying Economics at Manchester University. In her free time she volunteers at local charity shops and organisations that hold a focus on helping the envrionment. In the past, Sarah has always sought to buy her clothes wherever is convienient and provides her with her simplistic and comfortable style. However, since beginning University, she has become more aware of throwaway fashion and has begun to seek out more sustainable and ethical brands in order to help anyway she can. She enjoys all the current trends but often struggles to find brands that offer a combination of the style she wants and sustainability.
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‘68% of consumers now say it is important for companies to have an easy-to-use mobile and online experience to make them want to browse, research, and buy’ Davis-Felner, K (2018)
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Year One January - March Website and Social Channel reinvention
April - July New Ad campaign surrounding the #Alwaysboohoo, reinventing the USP
August- December Reimagine the Look Book and promote brand through University fairs and pop-up events
As boohoo is an online only brand, the use of their social channels and online shopping experience is key to sales, consumer perceptions and overall brand recognition. In a recent survey, 95% of online adults ages 18 to 34 were found to likely follow a brand on social media in order to find more information on them. This is because they find the content and information in these social media campaigns valuable, useful and overall relevant (Smith, 2018). This will be utilized in the first year of this marketing strategy; content on social channels will be product/range centric and focused on consumer engagement rather than the use of secondary images. Website reinvention will be developed during the beginning months of the communications plan. This will aim to change current consumer perceptions of the shopping experience being confusing and cluttered, therefore cutting the product range on offer is essential. Following this, a new campaign will run alongside the website improvements to reinvent the boohoo USP that will help differentiate from competitors. Once built upon, between August and December more experiential marketing will be used in the form of pop-ups at University fairs and popular shopping centres. As consumers are demanding more emotional and personal connections with brands, bringing a social experience to boohoo that are only online will create a customised experience for consumers, bringing a face to face element to boohoo.
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@mamacaxx
@bodyposipanda
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Year Two January - April Collaboration with the Be Real campaign
May - August New line promoted in collaboration with BodyPosiPanda
September December New line promoted in collaboration with Mamacaxx
In order to meet the SMART objective for year two, boohoo will collaborate with campaigns and social influencers in order to grow upon the inclusivity factor of the brands current USP and vision, something that is already built upon in the communications plan. By collaborating with influencers that promote body positivity and being your true self it will reinforce the #Doyourthing message that boohoo are, at present, aiming to promote. By showing the realism behind the campaign through these influencers it builds trust and a more personal relationship with consumers, something that is becoming increasingly demanded (Hyken, 2018).
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Year Three
January - May Design a new line with Inditex
June - December Promote boohoo's move towards sustainability and that this will expand in the future
In the final year of this marketing strategy, boohoo will meet the year three SMART objectives and utilize the Ethical Fashion macro trend by adding sustainability to their core competencies. To begin the year boohoo will design collaboration with Inditex, a sustainable wholesaler that works with other top retailers such as Pull and Bear and Zara. This will then be promoted throughout the later section of the year, it will not only alter consumer perceptions but it will target a new consumer demographic, the environmentally conscious consumer, a group that is not fully targeted yet within the fast-fashion market. This will in turn not only target the new, environmentally conscious consumer that falls within the core 19-21 age group currently not well targeted within the fashion Ecommerce market, but this will set a path for the future of boohoo as sustainable collaborations can continue to be a part of the brand’s vision.
46
47
How they will get there
48
Shop the collection NOW
The reimagined website will consist of a roll across screen showcasing the main discounts and new collaborations on offer. This will minimize the homepage allowing more of a focus on the offerings, reaching a wider consumer. In addition, the hashtags relating to the upcoming campaign will be central to the homepage, allowing consumers to keep this in mind when shopping and to generate more of a social buzz and consumer interactions. The central homepage will also exclude a men’s subsection as there is already a separate boohooMAN website, this will in turn provide more consistency within the site and target a more concise audience. Previous and current collections will be found under a separate headline showing easy access to the content. These will link directly to the products and have their own social media content pages that will be linked at the top of each page, clearly focusing a more social and interactive approach.
Tag your style #Alwaysboohoo
49
Reimagine Socials To begin this communications plan, the boohoo website will be reimagined to cut down the product range which will in turn make the customer journey easier and allow the core competencies of the brand to dominate through a more central focus on visuals of campaigns and products. Within this, loyalty schemes will be implemented (subscribe to email marketing and every 5 purchases you get a personalised discount) alongside online sizing options for the more efficient and innovative shopping journey that consumers have been demanding in recent years (DealerSupport, 2018). From primary research conducted, main opinions surrounding the shopping experience with boohoo were that the website was cluttered and that consumers found it difficult to shop with them when looking for something specific. By redesigning the website this will be altered allowing consumer perceptions of the shopping experience to shift. In addition, a recent Shopper Experience Index report shows that conversion rates increase by 270% when shoppers interact with better CGC visuals on the path to purchase, showing a clear link between a more innovative shopping experience and sales (DavisFelner, 2018)
January
The brand's Social media will also be reimagined to place focus on customer engagement. Content will include product centric posts, collaborations and how to style options. This will allow the brand to present itself as more serious in terms of their message, something that consumers respond better to, with 57% of consumers finding brands who try to be trendy and relatable on social media annoying (Davis-Felner, 2018). 50
.............................
March
51
New Campaign April Once all social channels are updated, promotion for this will be in the form of a new campaign surrounding the reimagined tagline #alwaysboohoo. At present the brand promotion surrounds the #DOYOURTHING campaign. While this promotes inclusivity which is one of the core competencies that boohoo use to describe themselves (boohoo Presentation, 2018) it is also quite simplistic in its approach and is almost identical to the ‘Keep on being You’ campaign by Missguided, a top competitor for boohoo. This has been further highlighted through consumer interviews where, when asked, they were not able to differentiate boohoo advertising from other competitors. The idea for this new campaign shows the core consumer going through aspects of their day wearing boohoo, changing brand perceptions to form the idea that boohoo is there for its consumers at any time, whilst still being able to express who you are individually, keeping in tone with the already present idea. Themes for this will further include the brands core competency of inclusivity and empowerment. Scenes for this will show students in lectures, young adults partying, teens spending time with friends ect. Social media influencers will then be used to promote this new brand image in line with recent/new in collections, keeping boohoo in the forefront of the social buzz. 52
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July
The boohoo Queen Estorestrum esto conest, aborepres que dolupie ndustibus as moles alique prepereici temolor am ut estotat ureiumq uosam, officiaspe sint volori dunt. Cullupt atemolut pa quiberatiam, con none eat que volorum re excere nos id ulliquas atin porempo rporitae simus explignis dolut qui quistrum expliquia ideris alit facepro blandiOtasi res magnim eius. Giam nonsequibus et atem re ipis nos di voluptatur, quam, quid quatur aute nos proress inveliquam qui ute nem ipsa non nus re magnis am volore quistorecto voluptio. Nam laborest aut eum sent quo imolupt atquas volupti assitas mincia et que simustia dus, qui ut excerunt volor maioribustia aut quia pligenimi, que prestotatem ima voloremqui venia ius, ipisquo tecus, to magnatem aut abor ant, sinciae venim quibus doluptat.
53
Look Book/magazine and Events
The next step is to redevelop a look book/magazine that follows in line with reinvented brand image that can be sent to loyal consumers on subscription basis every core season. This will be offered as an option through email marketing and is an easy way for loyal consumers to keep up to date with a brand that is constantly providing new content. This also provides the consumer with a clear brand narrative that accompanies the different collaborations, showing who the brand is even more. Expected success from this comes from key competitor ASOS, who’s magazine sales met 453,287 for the final 6 months of 2017 alone (Kakar, 2018). Within this, copies will be created between August and September that will be trialled and promoted at the University events and pop ups. Between October and December boohoo will hold fairs at universities and promote the reinvented brand image through flyers, personalised discounts, look books, games, photo opportunities ect. Alongside this, pop-up stands in central shopping locations will be set up during these months to target those who do not attend University. This will help target the core consumer age of 19-21 and create new brand awareness/ perceptions as well as generating a social media buzz. As, from the survey conducted, 91% of respondents have heard of boohoo, these events are more about changing perceptions to in turn boost sales as, within this, only 30% said that they would or have ever shopped at boohoo. Sales will further be increased as a 2014 survey showed that 48% of students will actively buy from brands that they interact with at freshers fairs (JC Leisure, 2014). The pop-ups will also increase footfall from a wider consumer range, something that the brand has previously lacked, as they do not have a physical store.
August
.............................
December
boohoo Issue 29 August 2019
The GC Edition 54
With an overall budget of 1 million, the finance has been allocated to each section of the communications plan as appropriate. The profit plan shows that, on estimate, 2019 expected revenue of £538,660,000 (based on a 44% rise in revenue calculated from the recorded year on year surge from previous years) would increase by 4.9% to £565,097,500. (Jahshan, 2019)
Initiatives Turnover (Using AVG RRP) £15
£0
Jan
Feb
Mar
Apr
Units
Inc. Variable (AVG gmt cost £7) COST OF SALES
May
150,000
170,000
0
0
0
2,250,000
2,550,000
TOTAL ONE OFF COSTS TOTAL COSTS
65,000 65,000
0 0
0 0
78,500 2,328,500
70,000 2,620,000
Profit (IN less OUT) (+/-) Cumulative Profit (+/-)
-65,000 -65,000
0 -65,000
0 -65,000
2,171,500 2,106,500
2,480,000 4,586,500
TOTAL ADDED PROFIT 55
Ju
Budget and Profit Plan
Jun
Jul
Aug
Sept
Oct
Nov
Dec
0,000
170,000
170,000
170,000
250,000
250,000
250,000
250,000
0,000
2,550,000
2,550,000
2,550,000
3,750,000
3,750,000
3,750,000
3,750,000
0,000 0,000
45,000 2,595,000
20,000 2,570,000
44,000 2,594,000
210,000 3,960,000
480,000 4,230,000
0 3,750,000
0 3,750,000
0,000 6,500
2,505,000 7,091,500
2,530,000 2,506,000 3,540,000 3,270,000 3,750,000 3,750,000 9,621,500 12,127,500 15,667,500 18,937,500 22,687,500 26,437,500 26,437,500 56
57
How this will be measured/ATL & BTL
Communication forms within this plan will also be updated. Above the line communications will include the events, TV marketing, social media marketing and on the more marketing such as cars, buses and billboards. While this is similar to current forms of communications, below the line forms will be updated including more concise and personal emails as well as the reinvented look book that will be created during the communications plan.
In terms of how this communications plan will be measured, social channels will be measured through consumer interactions such as likes, followings and B2C interactions. Google Analytics will measure sales and Influencer success will be measured through the number of followed affiliate links and their personal social interactions in relation to the products being promoted. Overall success will be measured through surveys surrounding brand perception that will follow orders through emails and footfall will be measured to determine the success of the University fairs and pop-up events.
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59
Conclusion
To conclude, this communications plan aims to increase consumer awareness and change brand perceptions in order to allow the brand to have a more distinguished USP, which will further boost sales. This plan aims to improve upon the already present but undifferentiating USP to allow boohoo to stand out amongst an oversaturated market by altering promotions, social channels and creating more active consumer engagement through the trial events and pop-ups. This, followed by the next two years of the marketing strategy will overall bring boohoo into a new market by producing content and marketing themselves in a way that competitors are not currently doing. This plan will bring improvements across the website, social channels and overall shopping experience that will aid customer retention and boost UK sales.
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Appendix
Situational Analysis: Conducted in the ‘where the brand is now’ section and involves market health, consumers, brand challenges and trend insights. Objectives: SMART Objectives are conducted on page 38. Strategy: shown through the three year marketing strategy. Tactics: Presented through the communcations plan in the ‘how the brand will get there’ section. Actions: Pages 49-56 set out the timeline and budgeting of how the communications plan will unfold. Control: Page 58 presents how the communications plan will be measured. boohoo’s top searches (01.07.18 - 10.01.19) and A sample of reach and interactions statistics (7 days, w/c 31.12.2018)
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Have you heard of boohoo?
Have you ever shopped with boohoo?
Which brand would you prefer to shop with?
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What/Who influences you the most?
Which social media do you use most often?
What aspect would you most like online retailers to use more of on their sites/social media?
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Secondary informations reguarding budgeting and reasons for communcations plan (Found in Bibliography) ‘48% of students plan on using new brands after seeing them at a Freshers’ Fair. This gives businesses all over the country huge brand building opportunities every year. And with 95% of all first and second year students that attended the fair planning to come back the following year, the potential for building up brand loyalty is high during Freshers week’- (JC-Leisure, 218). ‘The pop-up shop industry was valued at $50 billion in 2016’- (Steimer, 2017). ‘You can spend as little as $35,000 to upward of $2 million for a 30-second spot. Having a website professionally designed can run anywhere from $4,000 to $10,000. Of course, this range covers the cost of the web designer and copywriter, as well as a service provider and domain registration. Content curation, which could include blog posts, web-based articles and other web content, can cost $6,000 to $12,000 per year. Pay-per-click ads, where you pay only when a user clicks on the ad, had a rate of 84 cents a click in 2012’- (Severson, 2019). ‘In England, a record 27.9 per cent of the 18 year old population have been accepted through UCAS’- (UCAS,2018). ‘Pablo pop-up shop last weekend was a media and fan frenzy with lines around the block. Now the hip-hop artist is claiming it sold $1 million in merchandise over the its days’ -(Stutz,2016). AVERAGE ITEM COST: Calculated by accessing the mean of new in which ranged from £10-£60 and comparing this to the top searches which averaged to £15 (boohoo,2018). ‘For local television stations, advertisers can expect to pay anywhere from $200 to $1500 for a 30-second commercial. A 30-second spot broadcast nationally averaged around $123,000 as of 2016’- (Aland,2017).
Notes from transcript 1: Can you describe boohoo? Fast-fashion, cheap, on trend, poor quality. Can you explain to me a recent or any boohoo campagin? I cant recall any campaigns or adverts that I have seen from boohoo. Do you follow boohoo on social media? Do you like the content? Yes I follow them on Instagram but only for the discounts, I dont like some of their posts I think The brand’s social media should be more relevent and have more of a focus on products rather than just images from other accounts. Do you find it easy to shop on the boohoo website? Yes but I only ever shop on there if I have seen something on social media so i rarely look through the entire website.
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Notes from transcript 2: Can you describe boohoo? Fast-fashion, same as everything else, boring. Can you explain to me a recent or any boohoo campagin? I have seen the #Doyourthing campaign but I didnt know it was a boohoo advert until it said so, I could not differenciate a boohoo advert from a similar brand’s advert. Do you follow boohoo on social media? Do you like the content? No I don’t because i feel that the majority of fast-fashion brands post too much on their social on a daily basis. Do you find it easy to shop on the boohoo website? No, I rarely use the boohoo website and I often use other sites such as PLT because I find the website to be very cluttered and I find it difficult to use when looking for something in specific. Notes from transcript 3: Can you describe boohoo? Cheap, high fashion, same as everything else at the moment. Can you explain to me a recent or any boohoo campagin? I know the #Doyourthing campaign and have bought some items from them previously but I know that they are very similar to other brands. Do you follow boohoo on social media? Do you like the content? Yes but I dont like when they post Tweets I think they try to be too relatable. Do you find it easy to shop on the boohoo website? No, It is really cluttered and there is no clear trends and theres too many pop-ups for discounts. I find it too overwhelming.
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Tag your style #Alwaysboohoo
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The GC Edition
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