EXECUTIVE SUMMARY
ETHICS FORM ETHICS FORM ETHICS FORM ETHICS FORM ETHICS FORM
GLORIA YASEIN N0753203 1039 WORDS ETHICAL CLAUSE
“I confirm that this work has gained ethical approval and that we have faithfully observed the terms of approval in the conduct of this project.” Date______________ Signed ____________
1 2 3 4 THE CONTENTS 5 6 7 8
INTRODUCTION
p.6
AIMS AND OBJECTIVES
p.8
WHERE IS BOOHOO NOW? p.10 p.20
YEAR 1 MARKETING STRATEGY p.22
YEAR 1 COMMUNICATION PLAN YEAR 2 AND 3 MARKETING STRATEGIES p.24 CONCLUSION p.27 APPENDIX p.29
#INTRODUCTION -6-
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SWIPE LEFT TO EXPLORE Since being founded in 2006, boohoo has experienced massive growth. As, evidently, their trend-led product offering, unbeatable prices, and engaging social approach have enabled them to gain a strong foothold in the UK online fashion market. Nonetheless, the erosion of their USP and the profound discrepancy between their claimed and actual identity, combined with a lack of innovation, has currently left consumers perceiving boohoo as nothing more than a brand that sells cheap clothing. However, for boohoo to maintain their success and continue driving customer retention and brand engagement amongst experience and value-driven Gen Z and Millennials, they must focus on emotionally differentiating themselves. This will be achieved through the creation of distinctive storytelling narratives, a heavy focus on digital innovation, and most importantly, an emphasis on delivering a unified customer experience.
#AIMS AND OBJECTIVES -8-
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let’s set some goals Aims
1. Establish boohoo to be a fashion BFF by reinforcing their identity and showcasing their core values throughout every part of their customer’s journey.
2. Differentiate boohoo’s customer experience from their competitors by focusing on innovative integration of technology, personalisation and experience in their digital platforms. 3. Build a strong relationship between boohoo and their consumers by driving emotional loyalty.
and crush them.
Objectives 1. To change perceptions towards boohoo by reinforcing its core values, increasing sales by 20% between March 2019 and August 2019. 2. To enhance customer loyalty of existing customers, increasing order frequency by 30%, between September 2019 and February 2020. 3. To enrich the digital shopping experience with the implementation of technologies, increasing website conversion rates from 4.3% to 5.3% by February 2021. 4. To make boohoo the preferred online fast-fashion retailer for 16-24-year-old females in the UK by February 2022.
#WHERE IS BOOHOO NOW? - 10 -
2018 FINANCIAL PERFORMANCE
Despite operating in a tough retail environment, boohoo have had an outstanding financial year, with their revenue for the year rising to £374.1 million, ‘up 32% (29% CER) on the previous year’. (Boohoo, 2018)
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MARKET HEALTH The sustained growth of the online fashion market has paved the way for online-only retailers such as boohoo, Asos, and Missguided that are moulding themselves to be strong contenders in the market. Traditional and multichannel market players are now struggling to keep up with their everevolving proposition that is increasingly resonating with a mobile and social first generation. (Willmott, see GlobalData Retail, 2018) However, as this market is becoming increasingly saturated, unlike boohoo, retailers are leveraging the power of macro-trends such as dynamic storytelling, customisation, and omnichannel strategies to deliver a compelling journey that stands out and sets them apart.
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COMPETITOR ANALYSIS
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Evidently, competing in the fast-fashion industry, boohoo face intense competition. However, apart from having the lowest prices in the market, they have no other key differentiator. As explored in the main body report, this is not a viable USP.
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In addition, despite claiming to be different by representing values such as inclusivity, authenticity and innovation, their confused branding and underdeveloped site signify otherwise. As demonstrated by their direct competitors ASOS and Missguided, boohoo must strive to differentiate themselves by delivering a customer experience that demonstrates a ‘deep understanding of their customers and relentless innovation’. (Stone, 2017)
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ASOS
Zara
Boohoo
Missguided
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(Attention) POOR ASF
NEVER NOT CONNECTED
TARGET AUDIENCE
“98% of Gen Zers own a smartphone.” (UNiDAYS and Ad Age Studio 30, 2018)
GEN Z VALUES, OR............... “60% of Gen Z would prefer to buy a product over an experience – but only if it aligns with their values and has positive civic impact.” (Asos, 2018)
THANK U, NEXT.
AUTHENTICITY IS COOL
SOCIAL MEDIA CREATURE “A single member of Gen Z burns through 68 videos a day on YouTube, Snap and Instagram!” (EVP, 2018)
I'M (NOT) LOYAL, BABE
MEET EMILY WESTON, 19 INSTA-QUEEN
FRIES OVER GUYS
TREND AND BARGAIN HUNTER
GIRL POWER
FOMO
YOUNG.DUMB.BROKE
Boohoo’s trendy and affordable product offering lures in a wide demographic of 16 to 24-year-old females who have a strong desire for value, newness, and instant gratification combined (Mintel, 2018). Unsurprisingly, as exemplified by primary research, their target audience is motivated to purchase from boohoo primarily by their prices. However, to ensure they are cultivating brand evangelists, they must evaluate and cater their approach against ‘Gen Z cultural shifts.’ (Merriman, see Zaczkiewicz, 2018) Specifically, their value-driven purchasing, amplified need for authenticity, and preference of YouTube and Snapchat, that boohoo have neglected to consider, will play a pivotal role in the successful evolution of their brand.
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- 16 Social Channels Analysis
Boohoo have amassed a strong following on every channel they are active on, particularly Instagram. As, employing BFF, Influencer and Hashtag marketing across these channels have allowed them to intimately connect with their consumers.
Website Analysis
Despite setting innovation as a main strategic priority, boohoo’s onsite experience was relatively average. In spite of an established ease of use, clear product images and swift checkout processes, the lack of technological advancements such as AR and social commerce tools is evident and contributes to an unfulfilling experience. For boohoo, this has unsurprisingly contributed to static conversion rates; their savvy consumer’s expectations are high.
However boohoo is missing out on a valuable opportunity when it comes to communicating their identity, by not using purposeful messaging and taking an active role on Gen-Z favourite social media channels (YouTube and Snapchat).
Customer Journey Analysis
Boohoo’s customer journey is far from ideal. The mapping of a typical ‘boohoo’ journey has allowed for the identification of major pain points that mostly stem from boohoo’s unwillingness to harness technology and social credentials to better streamline and facilitate their customer’s journey.
(see Appendix 10-11)
1. Awareness • underwhelm ed- “Ugh. Th eir instagram is so basic. ”
• reassured- “I won ’t find a dress cheaper than £5 .”
2. Consideration
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annoyed- “With out product reviews or fit technology, I have no way of knowing if this will fit lik e the picture .”
3. Decision
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y c a c o v Ad lved.” d n a y o inv et Loyalt n’t
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SHOPPING EXPERIENCE RATINGS
6/10 8/10 3/10 3/10 5/10 - 14 -
“SPEED, CONVENIENCE AND IMMEDIACY” “NEWNESS” “INTERACTIVITY” “EXPERIENTIAL” “INSPIRATION” (Drapers, 2018)
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#YEAR 1 MARKEtING STRATEGY - 20 -
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PHASE 1
YEAR 1 improve customer loyalty.
During Year 1, boohoo will begin to improve customer loyalty by effectively communicating their core values (such as inclusivity, authenticity and innovation) throughout their marketing mix and through the introduction of a ‘points for engagement’ loyalty scheme ‘that will emphasize membership and access to [personalised] experiences.’ (CrowdTwist, 2018)
PHASE 2
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“Facilitating connections and creating unique spaces where communities can be built is the next stage in cultivating customer loyalty.� (-Moriarty, see Turk, 2018)
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#WEAREINNOVATIVE MISSION This will involve bringing their website up to standard and working towards an omnichannel approach, by including product videos and reviews and linking their blog content directly on their site -before they can innovate in Phase 2.
#WEARESOCIALANDAUTHENTIC MISSION Boohoo’s student ambassadors will play a more active role when it comes to building connections between boohoo and their customer, by becoming ‘The Fix’ blog editors.
#WEAREFUNANDINCLUSIVE MISSION During festival season, an edit will be created by them with the involvement of their social media followers. This collection will be promoted by featuring raw footage of “babes doing their thing” in a video campaign, Instagram stories and YouTube vlogs.
LAUNCH OF BOOHOO BABE LOYALTY SCHEME To support the launch of the loyalty scheme and raise high awareness, it will be promoted through boohoo’s site and social channels, as well as through an enigmatic QR campaign featured on taxis across the UK.
#VIPBOOHOOBABE MISSION Marking the birth of this new VIP community, members will have the chance to enter a draw to win 1 of the 100 invites to a “boohoofied” launch event. Ambassadors such as Kendall and Alexandra will be utilised to encourage people to convert to ‘babe status’.
COMMUNICATION PLAN
#YEAR 2 AND 3 MARKEtING STRATEGIES
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YEAR 2 focus on digital innovation.
Following a successful branding revamp, boohoo can now focus on digital innovation by building upon their onsite experience. This will involve the incorporation of e-commerce staples such as live chat and emerging technologies such as an AR outfit builder on their website and mobile app.
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YEAR 3 ensure a unified customer experience.
PHYSICAL
SOCIAL
UNIFIED COMMERCE
MOBILE
With Year 1 and Year 2 working in synergy to deliver a digital omnichannel experience, boohoo can invest in experiential sample sale pop-up stores that will serve to strengthen the connections they have established the past 2 years, through in-person interactions.
WEB
#CONCLUSION - 27 -
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THE END Therefore, to ensure boohoo continue driving sales growth in the UK, all three years will strive to work in unison to build long-lasting relationships between boohoo and their customers. This will ultimately be achieved by investing in an authentic, personalised and innovative approach to commerce that reinforces their identity across all brand touchpoints and adds a meaningful, unrivalled value to their overall shopping experience; hence, further fuelling their vision.
xoxo
#APPENDICES - 29 -
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REFERENCES Asos. 2018. Annual Report 2018. [online] Available at: <https://www.asosplc.com/~/media/Files/A/ Asos-V2/reports-and-presentations/26-10-2018-ar-v2.PDF> [Accessed 2 November 2018]. • Boohoo. 2018. Annual Report 2018. [online] Available at: <http://www.boohooplc.com/~/media/Files/B/ Boohoo/reports-and-presentations/4042-boohoo-randa-hyperlink.pdf> [Accessed 1 November 2018]. • CrowdTwist. 2018. Giving Customers What They Want: Personalized And Predictive Brand Experiences. [online] Available at: https://resource-center.crowdtwist.com/i/965856-giving-customer-what-they-want-personalized-and-predictive-brand-experiences/1?. [Accessed 10 December 2018]. • CrowdTwist. 2018. Why an Emotional Connection Matters in Loyalty and How to Achieve It. [online] Available at: https://resource-center.crowdtwist.com/blog/why-an-emotional-connection-matters-in-loyaltyand-how-to-achieve-it. [Accessed 14 December 2018]. • Drapers. 2018. The five factors of great customer experience. [online] Available at: http://guides.drapersonline.com/5971.guide. [Accessed 26 November 2018]. • EVP. 2018. Gen Z: Peer-To-Peer Influence Is King. [online] Available at: <https://edventurepartners. com/gen-z-peer-to-peer-influence-is-king/> [Accessed 4 January 2019]. • GlobalData Retail. 2018. Clothing And Footwear Spend Via Online-Only Retailers Is Set To Soar 67.4% Over The Next Five Years Reaching £7.5Bn In 2023. [online] Available at: <https://www.globaldata.com/ clothing-footwear-spend-via-online-retailers-set-soar-67-4-next-five-years-reaching-7-5bn-2023-says-globaldata/> [Accessed 11 January 2019]. • Mintel. 2018. Clothing Retailing - UK - October 2018. [online] Available at: Mintel. [Accessed 12 November 2018]. • Mintel. 2018. Womenswear - UK - May 2018. [online] Available at: Mintel. [Accessed 10 November 2018]. • Stone, D., 2017. Missguided wins Digital Business of the Year award. [online] Available at: https:// fashionunited.uk/news/retail/missguided-wins-digital-business-of-the-year-award/2017112326939. [Accessed 21 December 2018]. • Turk, R., 2018. The 6 Trends That Shape The New Consumer Landscape. [online] Available at: <https:// fashionunited.uk/news/fashion/the-6-trends-that-shape-the-new-consumer-landscape/2018100239263> [Accessed 1 December 2019]. • UNiDAYS and Ad Age Studio. 2018. Gen Z: Decoding The Digital Generation. [online] Available at: <http://adage.com/d/resources/system/files/resource/UNiDAYS%20-%20Gen%20Z%20Decoding%20 the%20Digital%20Generation_0.pdf> [Accessed 1 December 2018]. • Zaczkiewicz, A., 2018. Generation Z: Influential And Intuitive Fashion Shoppers. [online] Available at: <https://wwd.com/business-news/marketing-promotion/generation-z-ey-advisory-insights-1202678904/> [Accessed 11 January 2019]. •
BIBLIOGRAPHY AND APPENDIX A full bibliography and appendix can be found in the main report.