HOLLIE WEBB-HINTON N0693942 WORD COUNT: 7998
ACKNOWLEDGEMENTS Firstly, I would like to thank the FMB teaching staff at NTU for guiding me through the past three years of this degree. I have learnt so much from you all, and am exceedingly grateful. Secondly I want to express my gratitude to my beautiful friends, whom have become family, you have my whole heart. To my wonderful parents, I cannot thank you enough for supporting me through my time at NTU. You believed in me when everyone else had lost faith, for that I am eternally grateful. And finally, I want to thank my beloved Godmother Janet and Grandfather Peter who sadly passed away shortly before they got the chance to read this. They were huge proponents of education and always championed my successes, something I never took for granted.
ETHICS CLAUSE This submission is the result of my own work. All help and advice other than that received from tutors has been acknowledged and primary and secondary sources of information have been properly attributed. Should this statement prove to be untrue I recognise the right and duty of the board of examiners to recommend what action should be taken in line with the University’s regulations on assessment contained in its handbook. signed .............................................................. print name .......................................................................... date .................................................................
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INTRODUCTION
Introduction: P.1-2 Project Rationale: P.3-4 Aim & Objectives: P.5 Methodology: P. 6
THE BUSINESS OPPORTUNITY Stage 1 Reflection: P.8 Identifying the problem: P.9 Concept Testing: P.10 Chapter Summary: P. 11-12
THE BUSINESS SUMMARY
The Business Overview: P.14 Business Objectives: P.15 Brand DNA: Branding & Guidelines: P.16-19 Brand DNA: Identity & Audit: P.20-25 The App: P.24-27 The Partnerships: P.28 The Business Model: P.28 Value Proposition: P.29
MARKET ANALYSIS
Chapter Introduction: P.31 Market Size & Forecast: P.31 Market Segmentation: P. 32 Market Drivers: P.33 Market Threats: PESTLE: P.34-35 Market Positioning: P.36 Competitor Analysis: Good On You: P.37 Competitor Analysis: Fashion Revolution: P.38 SWOT: P.39 Market Readiness: P.40
STRATEGIC DIRECTION
Chapter Introduction: P.42 Consumer Segmentation: P.42 Pen Portrait: The New Mindful Consumer: P.43 Pen Portrait: The Self Actualist: P.44 The Partnership Acquisition Process: P.45 Strategic Objectives: P.46 3 Year Strategy: P. 47-52 Chapter Summary: P.53-54
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THE COMMUNICATIONS STRATEGY
Chapter Introduction: P.56 Communications Strategy Overview: P.56 Communications Objectives: P. 57 The Communications Matrix: P.58 B2B Strategy: Year 1: P.59-61 B2C Strategy: Year 1: P.62-68 KPI’s: P.69 Year 2 & 3 Communications Plan Overview: P.71-72 Critical Path: P.73 Chapter Summary: P. 74
BUSINESS MANAGEMENT Chapter introduction: P.76 Financial Objectives: P.76 Raising capital: P.77 Start-up costs: P.78 Sales forecast: P. 79-82 Profit & loss accounts: P.83-85 Marketing budget: P.86 Sensitivity analysis: P.87 Cash flow forecast: P.88 Chapter Summary: P89-90
THE EVALUATION
KPI’s: P.92 Risk Assessment: P.93 Growth Plan: Ansoff’s Matrix: P.94 Conclusion: P. 95
JUSTIFICATIONS
References: P. 97-98 Bibliography: P.99-101 Image References: P.102-111 Appendix: P.112-134
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INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION INTRODUCTION
INTRODUCTION This report aims to present an in-depth outline and analysis of Span, an app designed to make the process of shopping for fashion sustainably easier for consumers. It will include a breakdown of branding, business structure and strategy, market analysis, a three year communications plan, and business management (finances). The business takes inspiration from insights developed in the ‘Stage One’ report, formulated as a result of the tensions raised by consumers in an attempt to tap into an underrepresented area of ethical fashion, ensuring Span disrupt the marketplace standing out from competitors as a result of its innovative offering.
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R AT I O N A L E
In recent years the relationship between sustainability and fashion has become increasingly fraught, with the industry developing into the second most polluting on the planet. As a result, reducing the disparity between the two has become of utmost importance for both brands and consumers alike, ensuring something that was ‘once seen as a burden or box-ticking exercise’ now be a ‘major opportunity for innovation and even revenue’ (J.W.Thompson Intelligence, 2018). However, while the shift towards a more sustainable fashion industry is clear, there are still multiple ‘complexities and nuances that brands must navigate’ (J.W.Thompson Intelligence, 2018), one of which being the paradoxical relationship that exists in consumer behaviour regarding the gap between their good intentions and purchasing choices (illustrated in Stage One). According to industry expert Stella Claxton, the disparity exists because ‘product labelling is not good enough to help consumers’ make better choices when purchasing clothing (see Stage One, page 54), a belief supported by the Metro which implied that information is the answer to closing the attitude-behaviour gap, but that it must be ‘digestible and practical for all levels of education and laziness’ (Larbi, 2018). And this is where Span comes into play. The aim of the business is to help close the attitude-behaviour gap by providing consumers with the information they need to make informed choices in easy to read ‘mini reports’ that they can consult conveniently prior to making a purchase.
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O B J E ACI MT I V E S OBJECTIVES OBJECTIVES O B J E C T I V E S OBJECTIVES O B1. J E C T I V E S O B2. J E C T I V E S OBJECTIVES O B3. J E C T I V E S OBJECTIVES The overarching aim of this report is to outline a plan that will ensure the successful launch of Span, becoming a leader within the shopping subsector of the UK Mobile Apps market.
To curate a business that successfully bridges the attitudebehaviour gap in fashion, by providing consumers with the information required to make more sustainable choices when shopping.
To develop a community in which consumers can share and receive information regarding the sustainable performance of brands.
To becomes the leading app in the UK to facilitate the environmentally friendly consumption of brands.
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METHODOLOGY In-depth primary and secondary research was conducted to inform the strategic plans and market analysis included within this report, as a means of assessing Span’s viability as a business and scope for success upon their entry to market.
RESEARCH METHOD
SAMPLE
The insights produced from these methods have singularly inspired every aspect of brand development, strengthening Span’s USP by making the service more disruptive.
RATIONALE
LIMITATIONS
Online survey
A selected sample of 50 respondents aged 18-30.
The aim of this survey was to test the business concept amongst target consumers, to assess the need for such a service and determine its success upon entry to market.
The limited time constraints meant that the proportion of respondents be so small. Therefore it must be considered that the data collected from the survey is not wholeheartedly representative of the opinions of this demographic.
Instagram polls
A selected sample of 50 respondents aged 18-30.
A series of of Instagram polls were conducted as a means of assessing consumers’ receptiveness to brands’ marketing on different social media, to identify which would be more successful for Span to use when creating campaigns.
Much like with the online survey, the limitations incurred with this method were mostly tied to time constraints, restricting the proportion of responses. This again means that the data produced from these polls isn’t wholly representative of the preferences of this target demographic.
Interview with Matt Denman
1 respondent (CEO of Podium).
An in-depth one-to-one interview was undertaken with industry expert Matt Denman (who has previously created services/software for auditing), as a means of assessing Span’s viability, strength of concept, and ability to procure funding.
This method is absentee of any limitations, largely because the data produced is not designed to be representative, rather to inform aspects of strategy by employing the insights produced from a reputable and experienced source.
Interview with Matt Hinton
1 respondent (Linkedin Relationship Manager).
This email interview was conducted to learn more about how Span can employ Linkedin to better forge relationships with potential partnering fashion brands.
This method is absentee of any limitations, largely because the data produced is not designed to be representative, rather to inform aspects of strategy by employing the insights produced from a reputable and experienced source.
Secondary research
Marketing reports, books, journal articles, trend reports, videos, etc.
Secondary research was employed to inform sections such as the Market Audit, Business Strategy and Communication Strategy, as a means of assessing how Span can better itself as a business to ensure its success.
These resources were again absentee of limitations, as they were selected based on their reliability (and lack of bias).
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BUSINESS
OPPORTUNITY
BUSINESS
OPPORTUNITY
BUSINESS
OPPORTUNITY
S TA G E O N E R E F L E C T I O N
The justification behind the existence of Span stemmed from consumer insights revealed within Stage One. These primarily related to the factors that inhibit consumers from committing to the green consumption of fashion, highlighting the fact that there are a number of barriers in existence that have created this disparity between good intentions and actual purchasing behaviours (otherwise referred to as the attitude-behaviour gap). These relate to general misconstrusions regarding sustainability- particularly how consumers themselves can ‘contribute on an individualistic level’ (see stage one, page 22), and an inherent lack of information regarding the sustainable contributions of brands and their products. Thus, the inspiration behind Span was born.
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IDENTIFYING THE PROBLEM
As aforementioned in the previous section, Stage One insights revealed that when consumers did attempt to shop sustainably, it was immensely challenging to do so, given that ‘product labelling isn’t good enough to help consumers make the right choices’, and that information regarding the sustainable nature (or there lack of) of clothing/brands ‘is usually kept in a separate area on a website or in a lot of detail within a company report’ (see Stage One, page 22), therefore making it inaccessible for consumers as it is inconvenient to procure this when shopping. This singular insight revealed a significant gap within the market: consumers need a service that provides them with this information in a more digestible manner, on a singular platformminimizing the perceived inconvenience associated with changing habitual patterns of clothing consumption to those that are more sustainable.
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88% S AY I T ’ S C H A L L E N G I N G TO F I N D I N F O R M AT I O N A B O U T E N V I R O N M E N TA L CONTRIBUTIONS OF C L OT H I N G B R A N D S
CONCEPT TESTING SURVEY 2018 (see Appendix, pages 118-120).
7 0 % WO U L D B E I N T E R E S T E D I N U S I N G A N A P P TO H E L P T H E M T R A C K T H E I R C L OT H I N G CONSUMPTION
£
6 2 % WO U L D U S E A N A P P TO HELP THEM SHOP FOR C L OT H I N G I N A M O R E S U S TA I N A B L E M A N N E R
2018 10.
C H A P T E R S U M M A RY
In conclusion, as illustrated by the consumer tensions and demand identified in this chapter it can be assumed that a business such as Span would perform well in the market, garnering enough users to be fully functional.
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BUSINESS SUMMARY BUSINESS SUMMARY
Span is a disruptive mobile app catered towards supporting consumers as they switch-up their purchasing behaviours for those that are more environmentally friendly, by arming them with the information they need to make better choices in a single platform. The brand’s hope is eventually, with the advent of consumer support, they will be able to close the attitude-behaviour gaps in fashion. Span is a learning software: it deals in data at a commercial level. The exchange works in two ways: the consumer learns more about the sustainable performance of brands and their own patterns of consumption, and in exchange, Span learns more about their preferences/primary concerns when shopping and the manner/volume in which they consume. The app promotes sustainable fashion in a number of areas addressing the factors that widen the attitudebehaviour gaps that exist in consumers’ pre and post paths to purchase, facilitated through the following functions: brand ‘mini reports’, the product ‘barcode scanner’, the ‘disposal near me’ section, and a ‘consumption tracker’ (all of which will be explored in more detail later in this chapter). The intention of the app is to find a balance between limiting the overconsumption crisis that the fashion industry faces. The functions featured within the app do not force people to consume, nor do they encourage them to avoid consumption completely, it can be used in a variety of different ways, be that by consumers who need to purchase something but want to do so in the least harmful way possible, or by those who desire to reduce their consumption.
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OV E R V I E W
B U S I N E S S OV E R V I E W
BRAND DNA
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OBJECTIVES To establish Span as the first and only app to facilitate the sustainable consumption of fashion, by auditing the production methods of both fast fashion and ethically driven brands.
To get 50 fashion brands to subscribe to partake in the service by the end of the first year of operation.
To procure 5,000 users by the end of the first year of operation.
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NAME & SLOGAN The brand’s name was inspired by their main aspiration: to ‘span’ the green gap in fashion, it acts as an indicator to consumers of what they can expect from the brand prior to interacting with them.
The strapline is equally as indicative of their offering, the words ‘making sustainable fashion sustainable’ tells consumers everything they need to know about Span prior to deciding to interact with the brand.
LOGO
As noted by Posner (2011), logos provide the most ‘fundamental visible elements’ of brands and should ‘capture and represent the essence or core idea behind the brand’. Span’s logo is indicative of its sole purpose: to hand back autonomy to consumers, providing them with the information they need to make better purchasing decisions.
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This is reflected through the use of shopping bag with an image of the Earth on the front, indicating that the fate of the planet is in the hands of the consumer. The logo is designed in a manner that works as an app icon on mobile screens, hence its simplicity.
COLOUR
The green colour scheme was selected in accordance to its association with environmentalism/’ecologicalbusiness’ (Widrich, 2015).
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SCHEME
Contrasting rich tones of mustard yellow and vibrant shades of mint were included to break consumers’ negative perceptions of sustainable fashion being ‘unattractive’ (see Stage One, page 23).
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FONT
HEADINGS ABCDEFG HIJKLMN OPQRSTU VWXYZ The selected text type for Span’s headings is Microsoft Yi Baiti. This specific font was chosen with the intention of ensuring that the content featured within the app gain the attention it deserves. Its bold design will resonate more with users acting as a directive to better guide their journey with Span, effectively showcasing the different ways in which the app can help them adopt a more sustainable lifestyle.
MAIN BODY
ABCDEFG HIJKLMN OPQRSTU VWXYZ
The font employed throughout the main body of text in Span’s branding and communications is Helvetica, used for the sole purpose of clarity. It’s simple clean design enables the brand to ensure that the information they share with users be interpreted correctly, preventing risk of misinterpretation or confusion. The messaging shared by the brand needs to be communicated effectively as a means of better engaging a larger proportion of users- this text type helps achieve this.
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KAPFERER’S BRAND IDENTITY PRISM BRAND PHYSIQUE
BRAND PERSONALITY Personality Tone of Voice USP
R E L AT I O N S H I P
BRAND C U LT U R E
Brand Promise
Values
C U S TO M E R REFLECTED IMAGE
C U CSU STTOOM EMR E R SELF-IMAGE
Consumer Facing Marketing
Emotional Benefits
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I N T E R N A L FA C E T S O F T H E B R A N D
I N T E R N A L FA C E T S O F T H E B R A N D
Mission Vision Essence
I N D E N T I T Y P R I S M CONT.
PHYSIQUE MISSION: To create a community of like-minded individuals committed to pursuing a more environmentally friendly fashion industry. VISION: Span aims to become the first app within the UK mobile app market to audit all fashion brands (be they fast fashion or ethical) on their sustainable contributions/ production methods. ESSENCE: ‘Sustainable consumption made easy.’ Span’s essence is one of the most integral aspects of their identity, it communicates their intentions and reflects their values, ensuring that they feel as authentic as possible.
PERSONALITY PERSONALITY: Pioneering, principled, environmentally aware, inspirational, and incentivising. TONE OF VOICE: Transparent, inspiring, uplifting, honest, impactful, and empowering. USP: Span facilitates the green consumption of fashion by providing consumers with the information they need to make better choices. Span’s personality and tone of voice is one of the most important parts of their branding, as it trickles down into every element of their communications with consumers and businesses alike- and has been crafted with this in mind, designed to engage both audiences in a more encouraging manner.
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VALUES: Transparency Span is committed to being entirely transparent with both consumers and businesses as a means of ensuring that the information it collects and presents be as valid as possible to avoid misinterpretation and misrepresentation. Additionally transparency will help Span facilitate closer relationships with its users by creating an air of trustworthiness around the brand, absentee within the industry as a result of the committing of harmful acts such as greenwashing (giving them a competitive advantage). Planet over profit The ultimate goal for Span is not one of economic growth, rather to remediate the negative impact of the fashion industry on planetary health. While profit is essential in keeping the business afloat it isn’t the business’ primary focus, each function has been designed with this in mind in an attempt to find a balance between sustainability and economic growth. Accessibility & inclusivity Span is a brand for anyone with or that would like to adopt a sustainable agenda, be that businesses or consumers. They are therefore committed to auditing the sustainable contributions of all fashion brands (be that with or without environmental agendas) so make the process of switching purchasing behaviours an easier transition.
R E L AT I O N S H I P BRAND PROMISE/PROPOSITION: To provide consumers and brands with the opportunity to adopt their own sustainable agendas by giving them the knowledge required to do so.
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I N D E N T I T Y P R I S M CONT.
C U LT U R E
I N D E N T I T Y P R I S M CONT.
REFLECTION Users act as a reflection of Span and are therefore an extension of their beliefs and values. Thus, communications must mirror these similarities, using Span’s tone of voice to effectively target this segment of people. Therefore, messaging in this regard should be honest and empowering, showcasing the ways in which the business can benefit the lives of consumers.
SELF IMAGE In relation to tone of voice and personality, it is intended that consumers feel inspired and empowered when interacting with Span, by using the service to better themselves in conjunction with bettering the planet. EMOTIONAL BENEFITS: Self fulfillment: Tapping into their ‘self-transcendence’ and ‘selfenhancement’ values (see Stage One, page 9), Span provides consumers with the opportunity to better themselves reducing the volume and polluting manner in which they consume. Community: Span provides its potential users with the ability to become a part of a larger community, joining together to help clean up the fashion industry. Self awareness: The information Span provides consumers regarding their consumption will better inform them of the ways in which they can improve the planet on an individualistic level.
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‘ M I N I R E P O RT S ’ their production methods, and other factors that influence consumers’ purchasing decisions including: price, size, availability, and aesthetic (see Appendix, page 120).This function is enabled by blockchain technologywhich helps ‘trace the provenance of goods and services across that landscape in an automated fashion’ (Salty, 2019).
THE APP
Span’s primary offering is one of sustainable auditing, rating the production methods of fashion brands in the UK. This information is included as a subsector of a search option within the app, which users can select to look for the brand they intend to purchase from, and click on to view a ‘mini report’ giving the brand a (traffic lighting) rating for the sustainability of
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THE APP
‘ BA R C O D E S C A N N E R ’ In an extension of the ‘mini reports’, the app contains a ‘barcode scanner’ which uses the same blockchain technology to audit the sustainability of individual garments. The idea is that this feature could be used in-store or online providing consumers with the small amount of information they need to quickly
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decide whether or not they should purchase the product in question. If the consumer decides that the rating issued is worthy of a purchase, they can buy said product within the app- Span will receive 10% commission from this sale.
‘DISPOSE NEAR ME’ Facilitated through Span’s employment of navigation-based technology, the ‘dispose near me’ function shows consumers a list of the most sustainable places to dispose of their unwanted clothing within their current location.
Ranked according to sustainability and distance, this feature helps to close the attitude-behaviour gap that exists in consumers’ post-purchase behaviours, listing all of the better options available to consumers asides from landfill and charity shops.
THE APP 26.
THE APP
‘CONSUMPTION TRACKER’ The final function included within the app is a ‘consumption tracker’, a platform designed to monitor users’ fashion consumption on a monthly basis. Presented in the form of a graph, users can clearly see the peaks in their spending and can compare this information
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to that of previous months to review their progress.This function additionally provides users with the ability to restrict retail app usage to help them reduce the volume of clothing they are purchasing.
T H E PA RT N E R S H I P S Partnering brands are an essential aspect of Span’s business model. The service cannot function without the advent of fashion brands, given that the app needs these partnerships to gain the information required to run the ‘mini reports’ and ‘barcode scanner’ regarding supply-chains and methods of production. Therefore, Span must place particular attention to crafting a successful communications plan as a
means of targeting these brands- be they ethical or fast-fashion giants- as a means of encouraging them to subscribe to the business. The inclusion of ethical and fast-fashion brands is imperative in securing the success of Span upon their arrival to market, highlighted in their values. Variety in this regard helps engage users in green purchasing behaviours, as it shows that it is plausible to shop sustainably from all brands.
THE BUSINESS MODEL Span operates within a business model that us both consumer and business facing in an attempt to succeed in meeting their brand vision, given that the closure of the attitude-behaviour ‘cannot work in isolation’ (Muter-Hamilton, 2019). The subdivide between the two is reflected in Span’s streams of revenue, these being subscription and commission.
B2C:
The app would be free for consumers to use, seeing as ‘71%’ are often reluctant to download apps that they have to pay for (Reynolds, 2018). Monetisation of the app in this regard would potentially affect consumer perceptions of the brand in terms of authenticity, seeing as the purpose of the service is to hand back autonomy to the consumer using information. If distrust exists between the brand and consumer, it would be impossible to procure the information required from the consumer to run the app, largely because ‘online privacy is proving an increasingly important issue for consumers’ (Moss, 2017). However, in the barcode scanner section, the app would provide the opportunity for the user to purchase the item they are researching, within the same platform, taking 10% commission from the sale of that product (the remainder of which going to the partnering retailer who sells that specific product).
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B2B: As aforementioned above, Span’s primary revenue stream is business facing, the reason being that it is unsustainable to charge consumers who want to change the harmful manner in which they consume fashion, when they are already unfairly ‘having to accept sole accountability for the emergence and growth of the green gap’ (see Stage One, page 24). By charging the partnering brands a subscription fee for being a part of the service, Span can help hold them accountable for their more damaging behaviours, ensuring they be more transparent, appealing more to distrusting consumers.
VA L U E P R O P O S I T I O N In the context of retail, fashion brands face the challenge that rising demand for transparency can lead to ‘the oversharing of company affairs and potential conflicts with the need to protect trade secrets’ (Chitrakorn, 2018). Therein lies the appeal of Span.
£
As an external agency designed to audit the production processes of brands, revealing a small proportion of this information in a more digestible manner to consumers, this service wouldn’t risk spilling such secrets. It acts as a balance between transparency and privacy.
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4
KET MARKET MAR
INTRODUCTION
When assessing how Span will perform upon its arrival to market (within the UK), it is important to assess the mitigating factors that will implicate its potential success. The following chapter will analyse these factors, focusing on areas such as: market size and forecast, market readiness, competitor analysis and positioning maps, and competitive advantage and differentiation.
Analysis within this chapter has been informed primarily by industry reports detailing the performance of the UK Mobile App Market, largely because it is the most relevant sector in reference to Span and its offering. However, other markets such as ‘Online Retail’ and ‘Clothing’’ have been consulted and employed to better determine the performance of the app, because the service also indirectly taps into them too.
SIZE & FORECAST
£
F O R E C A S T TO G R OW B Y £ 2 . 6 BILLION IN 2023
REVENUE GREW BY 1.5 BILLION IN 2018 According to a 2017 report published by Mintel, ‘mobile app revenue generated from the iOS and Google Play app stores has returned to a strong growth after signs of a slowdown in 2015’ (Moss, 2017). This projection has been evidenced in recent years, proving that there is room for growth within the UK mobile app market, with revenues expected to rise to a potential ‘£2.6 billion in 2023’ (Reynolds, 2018). Growth within this sector has been driven predominantly by the increase in ownership of digital devices, reaching a peak of ‘93% among 16-34-year-olds’, driving ‘nearubiquitous’ app usage (Reynolds, 2018).
Therefore, it can be assumed that Span would be secure within this market with plenty of room for growth over an extended period of time, within which the brand can innovate and disrupt. Consequently, as a result of its success the UK mobile app market has become evermore saturated making user retention increasingly challenging for brands. If an app does not ‘add value’, ‘differentiate itself’, or ‘provide entertainment’ sufficiently (Reynolds, 2018), it will fail to capture the attention of users; therefore Span must consider the implications of such preferences prior to its entry to market, as a means of ensuring success.
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S E G M E N TAT I O N
In accordance with overall market performance, it is important to assess which categories of apps on iOS and Android perform best in the UK, so best to assess where Span will exist within the market and be defined/categorised as a result. Leaders in this segment include ‘Social Media’, and ‘Messaging’ with a respective 56% and 57% of users employing these apps on a daily basis (Reynolds, 2018). However, the sector that Span fits into is relatively new, curated by Apple and Android in 2015, the ‘Shopping’ category- a segment that supports the ‘purchase of consumer goods’ or ‘materially’ enhances the shopping experience (Apple, 2019). Therefore, at present, it doesn’t occupy as significant a proportion of users, with a small market share of only 1.39% (Statistica, 2018). Additionally, Span fits into other segments within the mobile app market, including: Navigation, Finance, and Lifestyle due to the nature of the services featured within the app such as the ‘consumption tracker’ (which allows consumers to track their spending on clothing month-to-month) and the ‘dispose near me’ function (that showcases consumers the most sustainable ways they can dispose of unwanted clothing near their current location).
Ideally, Span would be featured within any of these segments, given that they perform significantly better with a collective market share of 10.59% (Statistica, 2018). However, primary competitors such as ‘Good for You’ have been categorised within the singular shopping category, therefore it can be assumed that the same will be done to Span. In order to target as many users as possible (in-turn generating more revenue for the business), Span needs to tap into their preferences. A 2017 report published by Mintel highlighted that apps that are free to download but that feature ‘microtransactions, where consumers make small purchases for marginal advantages’ have a tendency to perform better- hence why social media and gaming apps are so successful (Moss, 2017). In order to ensure their success upon entry to market, Span must tap into these preferences (an imperative given the performance of the segment in which it will exist)- its potential to attract users is strengthened by its feature of microtransactions within the ‘barcode scanner’ section. The option to make purchases is less assumptive, creating an air of trustworthiness around the brand, making it more attractive to users.
DA I LY U S A G E ( A P P C AT E G O R I E S )
DA I LY U S A G E ( A P P C AT E G O R I E S )
MESSAGING SOCIAL MEDIA
57% 56%
H E A LT H
14%
R E TA I L
13%
GAMES
29%
O F F I C E / WO R K
10%
MUSIC STREAMING 22%
MAPS
9%
VIDEO STREAMING 19%
DAT I N G
4%
FINANCE
16%
See Appendix, fig. 1..
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DRIVERS DRIVERS DRIVERS
A 2018 Mintel ‘Clothing Retail’ report noted that ‘the main reason why people use apps to shop online for fashion is the idea that prices are cheaper online than in-store’ (Dover, 2018), essentially shopping online makes the process of seeking good deals easier for consumers, as they can do so using one device across multiple different platforms. This preference for using online retail platforms to webroom is something that Span should take full advantage of, using their search option (a service that users can use to compare brands on sustainability, price, availability, and sizing, etc.) to attract the ‘41%’ of consumers that shop online to find better prices (Dover, 2018).
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DRIVERS DRIVERS DRIVERS
As aforementioned in the size and forecast section, the mobile app market has been ‘driven by rising ownership of connected devices, with the vast majority of the population owning smartphones’ (Reynolds, 2018). This seismic shift has given way to an increase in the popularity of apps amongst consumers, which will eventually lead to a more saturated marketplace long-term, as businesses become more receptive to growing consumer interest in this area. Span must remain wary of this trend, overcoming this barrier to their success by properly communicating their USP to users to better stand out in such a packed marketplace. With regards to the consumption of clothing online, growth in this sector is a direct result of consumer desire for webrooming.
‘ Governments are lagging behind on
P E S
international commitments to safeguard the planet’s ecosystems, with politicians failing to grasp that economic growth depends upon environmental protection’ (Milman, 2014). ‘The Government should investigate whether its proposed tax on virgin plastics, which comes into force in 2022, should be applied to textile products’ (The Environmental Audit Committee, 2019).
Governmental reluctance and general incompetence in making sustainability a priority diminishes consumer concern, meaning they may fail to see the importance of changing their patterns of consumption and choose not to download the app.
‘The Government’s recent pledge to review and consult on extended producer responsibility for the textile industry by 2025 is too slow’ (The Environmental Audit Committee, 2019).
‘As Brexit begins to hit consumer confidence: political uncertainty leads to a dip in consumer spending’ (Dover, 2019). ‘With consumers increasingly aware of the risk of a no-deal Brexit, it is likely that uncertainty has driven this cautious approach to retail spending’ (Partington, 2019).
‘Consumers are not inclined to be loyal to brands as they once were because the underlying value of loyalty itself is no longer particularly relevant’ (Kusek, 2016). ‘The standard for brand switching is no longer the failure of a brand to perform but rather its inability to seem like an entirely new and interesting option at every single purchase cycle.’
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Economic uncertainty caused by Brexit has had an impact on consumer spending, making them more cautious, cutting back on spending and making them more unwilling to deviate from their habitual patterns of consumption, therefore Span will need to work harder at convincing them to use the app to help change these behaviours, by showing them the ways it can help to save money.
In a market as saturated as that of mobile apps, Span will need to constantly evolve their offering as a means of retaining consumer attention and building brand loyalty. Without this they will be unable to sustain the business, failing to create resonance, falling into insignificance.
T L E
‘Technology has long been a key driver of change in fashion. While digitalisation has provided a number of solutions, exactly how it will impact the future of fashion is still unknown’ (O’Connor, T., 2018). Technology has helped improve supply chain traceability: ‘The advent of technology has given way to Blockchain, a system that can be used to track and audit production’ (MuterHamilton, 2019).
Technology has facilitated the mass majority of sustainable innovations created within the fashion industry, including Blockchain. This system makes it possible for people to track fashion brands’ methods of production, facilitating transparency whilst at the same time holding them accountable for their more polluting behaviours. Meaning, whilst at present there is a lack of primary competitors in this market Span must consider the threat of new copycat entrants as access to this technology becomes more widespread.
The Environmental Audit Committee (2019),recommends that the Government ‘reforms taxation to reward fashion companies that design products with lower environmental impacts and penalise those that do not.’
Absentee of effective Governmental legislation, at present fashion brands currently face no punishment for their polluting behaviours or reward for sustainable contributions. As a result they will inevitably be reluctant to subscribe and partner with a brand like Span, as there is no law forcing them to be transparent about their production methods. Without these brands the app will struggle to function and make money.
‘To be sure, there is reason to be skeptical that sustainability attributes will ever influence fashion purchases to the extent they have in the food business’ (Bloomberg, 2018).
Consumer perceptions of sustainable fashion are less positive than that of food (which is perceived as organic, a proxy for healthy). It doesn’t ‘stir shoppers’ passions as dramatically’ (Bloomberg, 2018), meaning it will be hard at first for Span to incentivise potential users to download the app.
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INTRODUCTION Fashion Market
Inclusive to all brands
Exclusive to sustainable brands
Alternative Markets
The aforementioned positioning maps shows where Span would sit in and amongst its competitors comparatively in accordance to marketplace and provision of information regarding the sustainable contributions of brands (as illustrated by the axises). The brand’s primary competitors in relation to their positioning are: Good on You, and Fashion Revolution given that they are similar in terms of the services
that they provide and the values they possess. Secondary competitors include: Barcoo, WeGreen, Henkel, and Goodguide- positioned within the app because they feature similar functions but aren’t operational within the UK, or because they operate in the ‘shopping’ subsector of the mobile app market but have a different focus (i.e. food or beauty).
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C O M P E T I TO R A N A LY S I S
GOOD ON YOU
As illustrated in the aforementioned positioning map, and the table of differentiation (see Appendix, page 116), Span’s primary competitor within both the mobile app and fashion market is Good On You. Much like Span, the platform audits sustainable fashion brands on their processes and production methods, rating them in terms of ‘price’, ‘people’, ‘planet’, and ‘animals’. Additionally, it informs consumers of discount codes that they can use when shopping from these brands, to save money. In terms of competitive advantage, Span
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will have the upper hand based on their provision of other functionalities (i.e. the ‘product scanner’, ‘consumption tracker’, and ‘disposal near me’ sections), providing users with the opportunity to better themselves through a variety of different means. However, when competing against this brand, Span will have to work on communicating this USP to potential users to stand out, given that Good On You have the advent of celebrity endorsement- supported by UN ambassador Emma Watson (via sponsored posts on social media).
Span’s secondary competitor within these sectors is Fashion Revolution, with their provision of the ‘Transparency Index’. The index (a subsector of their website) is a report designed to inform consumers of the sustainable contributions of brands
C O M P E T I TO R A N A LY S I S
FA S H I O N R E V O L U T I O N
(or there lack of), over the course of 85 pages, similar to Span again in terms of offering. Fashion revolution operate as an initiative rather than a retailer/business, and therefore pose less of a threat to Span’s success.
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SWOT SWOT SWOT SWOT SWOT SWOT SWOT
STRENGTHS With an inherent lack of competitors, and a large proportion of consumer demand, it can be assumed that Span will perform well upon their entry to market. With their unique proposition and innovative functions, the brand will stand out in the eyes of potential users boosting awareness and in turn downloads. OPPORTUNITIES Span should take full advantage of the untapped shopping sector within the mobile app market, by taking the time to expand their service, perfecting its functionality. In doing so they will improve their proposition, and build the capability to garner consumer trust in a unique offering that would otherwise be ignored for fear of unreliability.
The points of contention and opportunities highlighted within this SWOT must be addressed/encompassed within Span’s three year marketing and communication strategies. If they fail to do so the brand will risk rejection upon their arrival to market,
WEAKNESSES In such a large market, where consumers’ attentions are spread thin over endless proportions of apps and brands it will Bbehard for Span to stand out after their initial entry to market. Therefore, it is imperative that they work on utilising communications to effectively promote their value to potential users, paying particular attention to their USP. THREATS Sustainability provides huge value for brands in the fashion and mobile app markets, meaning, while the current existence of competitors is almost nonexistent it is highly likely that after their entry to market, there will be an influx of copycat companies with similar offerings.
and miss out on opportunities to grow and garner larger proportions of users (and in turn profit). The brand should therefore use them as directives, through which they can successfully and seamlessly integrate themselves into the lives of consumers.
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SWOT SWOT SWOT SWOT SWOT SWOT SWOT
S WOT
40.
READINESS
While the ‘shopping’ category remains largely untapped as a result of its newness, it is gaining more traction amongst users. Aforementioned insights from stage one (see Appendix) coupled with data produced from an online concept testing survey revealed that an app designed to help consumers ‘shop for clothing in a more sustainable manner’ would indeed gain traction amongst potential users, with 63% revealing it would be something they’d be interested in downloading (see Appendix, page 122). It can therefore be assumed that an app as disruptive as Span, with minimal competitors, and an offering that taps into consumer concerns and preferences (regarding the environment and how they can help improve its health), will be successful when it hits the shopping subsector of the UK mobile app market.
5
BUSINESS STRATEGY BUSINESS STRATEGY
This chapter will outline the ways in which Span intends to market itself to potential users and partnering fashion brands, through its offering and value. The first step in devising strategy is outlining the consumers that Span ought to target, noting their beliefs and preferences to ensure that the service taps into these desires making it more attractive, cementing the brand’s success upon their entry to market.
The next is to create a series of objectives, which will act as directives through the three year strategic plan, pinpointing key targets and the time frame in which they should be achieved. Additionally the chapter will include a comprehensive outline of the brand’s strategy over the course of the next three years, highlighting important aspects of growth and setting realistic goals for expansion.
C O N S U M E R S E G M E N TAT I O N Given that understanding the user is central to all aspects of effective marketing strategy, it is integral that Span identify the ‘segmentation variables’ that define the group of consumers they need to target. Widespread media coverage of the importance of sustainability has lead to the formulation of the ‘New Mindful Consumer’, a group of environmentally conscious Millennials, motivated by ‘personal values around duty, doing the right thing and making a positive contribution’ (J.W.Thompson Intelligence, 2018). In appliance to their shopping behaviours (regarding the consumption of fashion), a 2017 Euromonitor Global Consumer
INTRODUCTION
CHAPTER INTRODUCTION
Trends Survey suggested that ‘sustainability is playing an increasingly important role in consumers’ purchasing decisions’ (Passport, 2018), but that ‘design, quality and price remain the top purchasing factors in fashion’, concerns that Span addresses within their auditing and should communicate to attract this group to use the app. The consumer isn’t specified by gender, rather age, with the mass majority being 18-30. As a means of acquiring these consumers, Span must tap into their preferences and communicate their values as a means of aligning themselves with this group, encouraging them to download the app.
42.
P R I M A RY C O N S U M E R
THE ‘NEW MINDFUL CONSUMER’
Meet Emmie, the ‘New Mindful Consumer’, a 22-year-old Journalism student from London. She likes attending protests, debating, reading, travelling, and visiting vintage stores. Emmie finds out about Span from influencer recommendations, downloading the app because she finds it impossible to shop
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sustainably from high-street retailers and shops that aren’t vintage/upcycled. She continues to use the app because she loves being a part of the Span online community, continually bettering herself as a conscious consumer for the sake of the planet.
Meet Stanley, a 30-year-old operations assistant from Camden. He enjoys skiing, meditating, travelling around the world, and eating out with friends. Stanley finds about about Span from sponsored Linkedin posts at work, downloading
S E C O N DA RY C O N S U M E R
T H E ‘ S E L F A C T UA L I S T ’
the app because he wants to limit the volume of clothing he purchases monthly. He continues to use the app to track his progress and search for the best prices prior to making a purchase.
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A RT N E R S H I P A C Q U I S I T I O N
THE PROCESS The partnership acquisition process is one of immense importance, given that the participation of fashion brands within the service is in all aspects the primary function of the app, and is also the main way Span will make revenue. Therefore prior to launch, all of their focus should be on forging relationships with the companies they want to include in the service, encouraging them to subscribe to part-take in the platform. This will be facilitated through the creation and conduction of an effective business plan in the months pre launch (in June). The value businesses can derive from Span is vast, and consumer demand for such a service is high; however it is still a risk for these fashion companies to agree to part-take in a business that isn’t at that time operational and cannot guarantee sales. Industry expert Matt Denman noted that pitching the business shouldn’t be an issue, noting that ‘if you’ve got a great proposition and story, then you’ll have no problem’ (see Appendix, page 124).
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OBJECTIVES O B J E C T I V E S OBJECTIVES OBJECTIVES O B1. J E C T I V E S O B2. J E C T I V E S OBJECTIVES OBJECTIVES OBJECTIVES OBJECTIVES To procure 5000 users by the end of the first year in operation.
To get 50 brands to subscribe to partner within the business.
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YEAR STRATEGY 3 YEAR STRATEGY
1. 2. 3.
To launch the service in June on both iOS and Android within the shopping sector of the UK mobile app market.
To procure 5000 users by the end of the first year in operation.
To get 50 brands to subscribe to partner within the business.
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3 YEAR STRATEGY 3 YEAR STRATEGY
Y E A R 1 G OA L S
Y E A R 1 S T R AT E G Y In the first year it is imperative that Span’s strategy remain realistic. Given that their launch occurs in June (because of the length of time it will take to develop the app and perfect the software within it). Span’s primary focus prior to launch should be acquiring partnering brands as a means of facilitating the main functions of the app, through the creation of an effective communications strategy. To make this process easier, they should initially target smaller, independent companies both with and without sustainable agendas as they are more likely to agree to participate. The advent of free marketing and increase of publicity should be incentive enough to encourage these brands to subscribe to the business, and provide Span with the information they need to run the app. In year one, Span should aim to get fifty brands to subscribe to be a part of the business, as a
1
means of ensuring that users don’t feel limited when employing the app to shop. The benefit in targeting smaller brands is their condensed product offering. For Span, this will make the process of developing the software behind the ‘barcode scanner’ easier, as they will have to assess and audit smaller quantities of garments. In conjunction with this, they should also consider containing the navigation based ‘disposal near me’ function to the Greater London area within the UK. While this does limit users’ ability to utilise all of the features within the app, it again will give the business more time to perfect the software, before expanding it within years two and three. As a progressive web app, Span will ‘inevitably drive a shift in user expectation’, meaning ‘they will assume a superior level of functionality’ (Gove et al., 2017) which is why functionality expansion is such an integral aspect of the service.
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YEAR STRATEGY 3 YEAR STRATEGY
1.
To expand the team beyond CEO, marketer and app developer, recruiting a production manager, digital strategist, copywriter, and social media strategist.
2.
To expand the ‘disposal near me’ function to include other major cities (i.e. Manchester, Birmingham, Newcastle, Sheffield, Liverpool, and Leeds).
3. 4.
To gain 10,000 more users.
To recruit 150 new brands, including 20 of those that identify as fast fashion retailers.
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3 YEAR STRATEGY 3 YEAR STRATEGY
Y E A R 2 G OA L S
Y E A R 2 S T R AT E G Y As the number of consumers using the app increases, so too will the demands on the business. Therefore, in year two it is imperative that Span expand their team to include a digital strategist (who would assist the app developer in carrying out expansion within the app, making developments to the software), a social media strategist (who would take over running the brand’s social media accounts, interacting with users), a copywriter (to strengthen the messages included within Span’s branding and promotion), and a product manager (to help the CEO oversee the development of the platform). In addition, attention should be placed on expanding the capabilities of the app, enabling the ‘disposal near me’ section to be employed by users that live in major UK cities (such as Manchester, Birmingham,
2
Liverpool, Newcastle, Sheffield, and Leeds). By doing so the brand will be able to accommodate the needs of larger proportions of users, making the service appear more attractive. Strategy should also be centered around recruiting an additional 150 brands to subscribe to the business (including 20 fast fashion brands/high street-retailers). By expanding their offering in this regard, Span will be better able to achieve their vision of becoming the first platform within the UK mobile app market to audit all fashion brands on their sustainable contributions/production methods. This will also help procure more users, by attracting those that seek to learn more about the offering of all fashion brands- not just those that are environmentally focused.
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YEAR STRATEGY 3 YEAR STRATEGY
1. 2. 3. 4.
To expand the navigation service again to include counties.
To recruit another 200 brands to subscribe to the business.
To procure 15000 new users.
To start expanding into the footwear market.
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3 YEAR STRATEGY 3 YEAR STRATEGY
Y E A R 3 G OA L S
Y E A R 3 S T R AT E G Y In their third year of operation Span should be more ambitious with their expansion strategies, given that at this point they should experience a significant increase of brand awareness and profit. To accommodate again for these new users, the brand should work on developing the ‘disposal near me’ section’s capabilities once more to include counties in addition to cities. In doing this and by recruiting another 200 more brands, the service will be able to meet the needs and now raised expectations of users, so that none feel limited. At this point in time Span should expect an increase in competitors with similar offerings,
3
given that the software to curate such a business will be readily available. Therefore, they should seek to strengthen their USP by expanding into the footwear market, including these brands within the ‘mini reports’ and ‘barcode scanner’ functions in the app. In year three, Span’s focus should be on researching the brands they wish to include and strategising the ways in which they can target, adapting them into the business seamlessly. This line extension should be launched in the following years beyond this three-year plan, once these brands have agreed to subscribe to partner in this business.
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C H A P T E R S U M M A RY
The strategy within this chapter has helped to outline Span’s scope for growth over the course of the next three years, acting as a directive through which they can develop the service to boost its value in the eyes of users and partnering brands, securing an increase in revenue year on year. Additionally, it also notes the areas in which communications will assist in procuring the elements needed to ensure the brand’s survival within the market, which will be outlined in the next chapter.
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COMMUNICATIONS COMMUNICATIONS COMMUNICATIONS COMMUNICATIONS COMMUNICATIONS COMMUNICATIONS COMMUNICATIONS COMMUNICATIONS COMMUNICATIONS
6
After outlining the importance of securing users and partnering brands as a B2B and B2C facing company, it is imperative that Span follow an effective communication plan to ensure that both of these parties part-take in the business. This chapter will present a three-year communications plan for both of these sectors as a means of targeting both.
OV E R V I E W When constructing a communications strategy, it is important that Span attempt to enact this plan across multiple platforms to engage as many potential users as possible. An omnichannel approach to communications will help the business convey their value proposition to consumers and partnering fashion brands, providing them with multiple touchpoints, in which they can experience the app prior to its launch, helping them procure the parties required to enable the functions included within the app. The strategic plan will be split into two parts: B2B and B2C, executed across different quarters in the brand’s first year of operation, to effectively target these two groups. An outline of this strategic plan exists within the Communications Matrix below.
56.
INTRODUCTION
6
CHAPTER INTRODUCTION
OBJECTIVES O B J E C T I V E S OBJECTIVES OBJECTIVES 1. O B2. J E C T I V E S OBJECTIVES O B1. J E C T I V E S OBJECTIVES 1. OBJECTIVES OBJECTIVES AWA R E N E S S
To gain 10,000 followers collectively online across Facebook, Twitter, and Instagram.
To support the launch of the business in June, by generating 50% awareness on social media amongst target consumers.
ENGAGEMENT
To achieve a minimum engagement rate of 35% per post on Instagram by the end of the first year of operation.
DRIVING APP TRAFFIC
To achieve a CTR (click through rate) on sponsored posts by 5%.
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C O M M U N I C AT I O N S M AT R I X COMMUNICATION
PURPOSE
MEDIUM
FREQUENCY
AUDIENCE
OWNER
Social media: Facebook, Twitter, Instagram.
Once.
Partnering Brands.
Production outsourced (see Appendix, page 134).
Sponsored Linkedin posts.
To introduce the business concept to potential partnering brands and convince them to subscribe.
To convince Linkedin. potential partnering brands to subscribe.
Monthly.
Partnering Brands.
Marketing Lead.
Once.
Partnering Brands.
CEO, Marketing Lead, and App Developer.
To introduce the brand to consumers and encourage them to download it.
Social media: Facebook, Twitter, Instagram.
Once.
Environmentally Conscious Consumers.
Production outsourced (see Appendix, page 134).
Sponsored posts. To encourage consumers to download the app and increase awareness.
Instagram.
Four (June, August, October, December).
Environmentally Conscious Consumers.
Marketing Lead.
Influencer posts.
To encourage consumers to download the app and increase awareness.
Instagram.
Three (June, September, December).
Environmentally Conscious Consumers.
Informative website.
To inform users and potential users about the background behind the business.
Online website.
Once.
Environmentally Conscious Consumers.
Marketing Lead and the ‘Ethical Fashion Review’, ‘Extinction Rebellion’, and ‘Fashion Revolution’.
To launch the brand.
Face-to-face/in person.
Once.
To encourage consumers to download the app and increase awareness.
PR Newswire.
Once.
Environmentally Conscious Consumers.
Video campaign.
Pure London expo.
Video campaign.
Collaborative launch event with Birdsong. Launch event press release.
To introduce the Face-to-face/in business person. concept to potential partnering brands and convince them to subscribe.
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Environmentally Conscious Consumers & Partnering Brands.
Marketing Lead.
CEO, Marketing Lead and Birdsong. Marketing Lead and PR Newswire.
Y E A R 1 B 2 B S T R AT E G Y V I D E O C A M PA I G N It is imperative that Span procure partnering brands prior to their entry to market. In order to do this they need to effectively communicate their value proposition to these brands, and should therefore produce and share an informative video to Linkedin introducing the app to these fashion companies. According to Linkedin Relationship Manager Matt Hinton, ‘video content is engaged with by members at 3-4x the level images would’ (see Appendix, page 127) so producing a campaign in this
manner would be more successful in formulating these relationships. The video should showcase the functionality of the service, and the consumer tensions that inspired its creation to prove to businesses that there is value in such an innovative proposition. In addition, the video should feature as a sponsored post on the platform, to target a greater proportion of brands.
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Y E A R 1 B 2 B S T R AT E G Y S P O N S O R E D L I N K E D I N P O S T S A N D S A L E S N AV I G ATO R It is of paramount importance that Span effectively communicate their value proposition to consumers prior to their launch in June, to pique user interest early and convince them to sign up to the app when it enters the market. In order to properly achieve this, the brand should create a short two minute video showcasing the primary functions of the app, and the ways in which it can add value to the lives of its users. The use of video as opposed to photo is justified by the fact that videos have a tendency to resonate more with consumers, as illustrated by the conduction of an Instagram poll which revealed that 73%
of respondents learnt more from video campaigns than photo campaigns (see Appendix, page 127). A survey published by databox targeted to marketers supported this fact, noting that 60% of their respondents stated that ‘video tends to drive more engagement’ online (Dopson, 2019). The video will be published across Facebook, Twitter and Instagram in the form of a sponsored post in an attempt to better target Span’s primary consumer (as the business can use these platforms to tailor the post’s audience to fit the demographic confines of this group).
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Y E A R 1 B 2 B S T R AT E G Y PURE LONDON Given that Span’s offering is absentee of physical touchpoints, they need to be more creative when targeting potential partnering fashion brands, especially before their launch. Therefore, the business should consider attending fashion networking events as a means of broadening peer awareness. In lew of this, the brand should exhibit at the Pure London Expo in the London Olympia, in the February before their launch in June. According to their website, over ‘17,000 highcalibre visitors’ attend the event every season (Pure London, 2019: A), proving that there is plenty of opportunity for the brand to forge relationships with these retailers, introducing
them to the app and its function. The Expo also provides businesses with the opportunity to matchmake with each other through their ‘Grip app’, ‘enabling brands to find the business contacts and connections within the Pure London ecosystem’ (Pure London, 2019: B), acting as an building Span’s capability to network with businesses that would be interested and fit well within their service. At the exhibit they should run their own ‘concept stand’ (see Appendix, page 135) with visuals displaying the app’s functionality, and a screen showcasing their B2B introductory video, strengthening their pitch.
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Y E A R 1 B 2 C S T R AT E G Y V I D E O C A M PA I G N Alongside the sponsored video, Span should follow up with continual sponsored posts on Linkedin as a means of updating potential partnering brands of expansions within the service, to generate more appeal encouraging them to subscribe. By paying for these posts and the site’s Sales Navigator service, Span can ‘utilize the member and company data in Linkedin’ to ‘identify other companies to sell/ market to’ and receive recommendations of the ‘key contacts within these businesses’
(see Appendix, page 129). This information will prove invaluable in helping the brand to boost awareness amongst its peers by informing them of the ways in which they should tailor each post to their interests/ specialism, achieving maximum engagement and conversion. The posts should be linked to Span’s Linkedin profile, directing brands to their contact information should they wish to participate within and subscribe to the business.
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Y E A R 1 B 2 C S T R AT E G Y S P O N S O R E D I N S TA G R A M P O S T S IIn addition to the sponsored posts containing the introductory video, Span should follow up with regular pictorial sponsored posts in the months following the launch of the brand as a means of continually increasing consumer awareness. These should primarily be posted on Instagram as it is the ‘most effective social network’ at reaching consumers (Richards, 2017), as affirmed by an online poll in which 98% of respondents identified the site as their preferred social network (see Appendix, page 124). The main benefit of uploading sponsored posts to this site are the built-in analytics. Instagram ads provide businesses with the ability to tailor each post to specific demographics of consumers (as illustrated in the images below), enabling Span to directly
target environmentally conscious Millennials, in turn increasing their levels of engagement. Other benefits of these posts include increased rates of conversion, as businesses can choose to link their apps to the image, which consumers can follow to download. The inclusion of such a function will be essential in boosting the proportion of users following Span’s launch in June, building scope for an increase in the months after. These posts should be equally as informative as the video, depicting the value the app can add to the lives of its users through its offering, but should also include user testimonials given that ‘Word of Mouth is the most valued outcome of engagement’ (Dahl, 2015) instilling potential users with more confidence in the service whilst increasing its appeal.
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Y E A R 1 B 2 C S T R AT E G Y INFLUENCER POSTS Additionally, Span should commission three environmental online influencers to post about the app in an attempt to yet again boost awareness and conversion. Accounts such as the ‘Ethical Fashion Review’, ‘Extinction Rebellion’, and ‘Fashion Revolution’ (with a collective 443,000 followers), would be the perfect fit due to their positive reputation and similar target audience. The benefit of such a collaboration lies within its ability to enrich Span’s social media content strategy, filling
in the gaps between the sponsored posts and introductory video. The brand should space out the three in the months of June, September and December in accordance with the size of the accounts’ followings, starting first with the ‘Ethical Fashion Review’ then ‘Extinction Rebellion’ and ending the year with ‘Fashion Revolution’ in order to achieve maximum impact. This will also prove to be more cost effective for the brand, seeing as the price per post increases per 100,000 followers.
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Y E A R 1 B 2 C S T R AT E G Y I N F O R M AT I V E W E B S I T E In order to enrich the user experience of Span, the brand should create an informative website as a touchpoint for consumers to learn more about the background behind the business, its proposition and mission/vision, and values.
In doing so Span can formulate closer with its users by being completely transparent about their intentions, processes and ambitions, alongside exclusive content and regular updates about expansions within the functionality of the app.
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Y E A R 1 B 2 C S T R AT E G Y C O L L A B O R AT I V E P O P - U P S TO R E W I T H B I R D S O N G In order to create as much buzz around the brand as possible, Span should conduct their own launch event in the form of an experiential pop-up in collaboration with one of their partnering brands: Birdsong. The aim of the launch would be to provide potential users with physical interaction with the app as a means of showcasing its capabilities and value, securing a significant proportion of users in Span’s first month of operation. The event should be collaborative because it will help the business build awareness by giving them access to Birdsong’s customers, who fit the same demographic constraints of Span’s target consumer. In addition the use of
collaboration means that the event can sell clothing, and offer attendees the opportunity to trial the ‘product scanner’ function of the app, giving them an insight into the service and its provision. The collaborative element also means that Span can share some of the costs of running the event and revenue from the sale of products (as they would only take 10% commission, much like in their pricing structure). The event would take place in Notting Hill, London, in a rented space for a solitary evening, largely because the navigation software included within the ‘disposal near me’ function will be contained to the Greater London area in year one.
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Y E A R 1 B 2 C S T R AT E G Y PRESS RELEASE Following the launch event, Span should produce a short press release published on PR Newswire, to maximise its exposure.
This will help generate awareness amongst both potential users and partnering brands alike.
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Y E A R 1 B 2 C S T R AT E G Y C R M S T R AT E G Y
As a consumer facing business, customer relations management is an essential element of the brand. Developing relationships with users is a key aspect of Span’s value proposition, meeting their needs in a new and innovative manner, but retaining them will require an in depth CRM strategy. Span is an online platform, absentee of a physical store-front in which consumers could have face-to-face interactions with a team of staff, therefore the development of relationship between brand and user must be bridged online. In order to do this Span must utilise channel management to the best of their ability, employing email, telephone and social media to facilitate interactions with consumers. The following channels will be utilised by Span’s marketing team to keep in contact with users, maintaining their relationship with the brand: App: The FAQ section of the app will include an email address and telephone number that users can contact if they have any queries regarding the service and its provision, or if they incur any malfunctions. Social Media: Online platforms such as Twitter will be used so that users can contact Span at any time, again if they want to learn more about the brand or if there are any malfunctions. Conversations in this regard will be more informal and friendly, in an attempt to forge closer relationships with users. Email: When signing up to the service users will be required to provide Span with their email address and asked if they want to receive updates via newsletter. Should they agree, they will receive these monthly informing them of any service updates and functionality expansions.
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KPI’S
OBJECTIVE To generate 50% awareness on social media amongst target consumers by December.
MEASUREMENT The volume of posts shared to the hashtag ‘Span’.
To achieve a minimum engagement rate of 35% per post on Instagram by the end of the first year of operation. To achieve a CTR (click through rate) on sponsored posts by 5%.
Add up post’s likes, comments, and shares, and divide by total number of followers then multiply by 100. Measure the total clicks on a post’s link, measure the total impressions on that post, then divide the number of clicks by the number of impressions and multiply by 100.
Number of followers on social media.
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OBJECTIVES 2&3 YEAR OBJECTIVES OBJECTIVES OBJECTIVES 1. OBJECTIVES O B2. J E C T I V E S OBJECTIVES O B3. J E C T I V E S OBJECTIVES OBJECTIVES To improve brand awareness year on year by 10%.
To gain 30,000 followers collectively online across Facebook, Twitter and Instagram.
To achieve a minimum engagement rate of 50% per post on Instagram by the end of year three.
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Y E A R 2 S T R AT E G Y OV E R V I E W ‘The importance of consumer-generated content (CGC) has increased over that of companies’ self-published content in the online world’, meaning ‘online information has shifted from publisher-centric to consumer-centric’ (Moriuchi, 2016). In order to address this shift, Span should create an Instagram campaign using co-creation in the January following their launch, as a means of celebrating the New Year, named ‘with Span I can’ designed to tap into users’ desire to better themselves. The campaign would require Span users to post about the ways in which the app has assisted them in improving their contributions to the
2
pollution caused by the fashion industry to the corresponding hashtag ‘withspanIcan’, which the brand would follow reposting their user’s posts to their official account helping to increase rates of brand awareness. In accompaniment to this campaign, Span should also continue with the B2B and B2C directed sponsored posts and influencer posts, as a means of procuring more partnering brands and users. With their increased revenue they will be able to increase the volume in which they post these, and expand their demographic reach, enabling the brand to access a greater proportion of their target market.
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Y E A R 3 S T R AT E G Y OV E R V I E W In year three, Span should focus on harnessing the power of fashion influencers, working with those that have a larger presence online like Naomi Smart and Arden Rose (whom have both previously collaborated with ethical fashion brands), but enact this on a new platform: Youtube. The primary benefit of working with these influencers is their audiences are not only ‘very engaged and finally accessible- not sitting behind the Netflix paywall or browsing with the “help” of an adblocker’ (Hoos, unknown), but also demographically and psychographically align with that of Span’s target consumer. By commissioning these influencers to explain the app, the ways in which it can be used, and their own experiences with its functionality, Span will be provided the opportunity to publicise their
visual branding and drive attributable traffic to their app. Much like in year two Span should accompany these videos with the B2B and B2C directed sponsored posts to again boost rates of brand awareness. In addition to this the brand should exhibit at LFW (London Fashion Week) in an attempt to strengthen their B2B communications strategy. Similar to their concept stand at Pure London in year one, this exhibition would attempt to help forge more partnerships with potential subscribing brands by showcasing their service but on a much larger scale. This event is comparatively more high profile, ensuring the brand get more traction, introducing Span to a larger proportion of companies and helping them to gain more media attention.
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3
R I T I C A L PAT
J A N UA RY
Linkedin sales navigator
F E B R UA RY
B2B promotional video Linkedin sponsored post Pure London
MARCH
Linkedin sponsored post
APRIL
Linkedin sponsored post
M AY
Linkedin sponsored post B2C promotional video
JUNE
Linkedin sponsored post informative website launch Sponsored Instagram post Launch event Press release Influencer post
J U LY
Linkedin sponsored post
AUGUST
Linkedin sponsored post Sponsored Instagram post
SEPTEMBER
Linkedin sponsored post Influencer post
O C TO B E R
Linkedin sponsored post Sponsored Instagram post
N OV E M B E R
Linkedin sponsored post
DECEMBER
Linkedin sponsored post Sponsored Instagram post Influencer post
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S U M M A RY
In summary, Span’s communications strategy is an integral aspect of ensuring their success and survival within the marketplace. It will define their ability to make revenue and grow in the years following their launch, given that it is the primary way for the business to procure users and partnering brands.
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BUSINESS MANAGEMENT
BUSINESS MANAGEMENT
Given its direct impact on the ability to function as a business, the following chapter will assess Span’s financial feasibility, outlining the ways in which it will gain funding, sales forecast, and profit and loss (including a sensitivity analysis). This will justify Span’s viability as a business.
OBJECTIVES
1. 2. 3.
To breakeven by the end of Span’s first year of operation.
INTRODUCTION
CHAPTER INTRODUCTION
To achieve a gross margin of 51% by the end of the first year of operation.
To increase net profit in year two by 6%.
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R A I S I N G C A P I TA L Procuring funding is an essential aspect of ensuring Span’s survival, helping to cover the costs associated with starting the brand (such as app development and licensing software). Span should source it from a variety of different places to make it easier to procure a larger amount of money to cover the losses made in the months prior to the brand’s launch. The total amount of funding required to cover these start-up costs and maintain cash flow is £90,000, spread across three platforms:
Crowdfunding, family investment, and personal savings. The mass majority of that sum should come from an Indiegogo campaign, raising £60,000- industry expert Matt Denman noted that achieving this shouldn’t be an issue given the strength of Span’s ‘story’ (see Appendix, page 124). The remainder will come from family investment (£20,000) and personal savings (£10,000), as this will prevent the brand from ‘giving away less eggs in the business’ (see Appendix, page 124).
C R OW D F U N D I N G £60,000
PERSONAL INVESTMENT
£10,000
FA M I LY I N V E S T M E N T
£20,000
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S TA RT- U P C O S T S In the first year of operation start-up costs occupy a significant proportion of Span’s overall outgoings, the majority of which exiting the brand’s account prior to making revenue after their launch in June. The most significant of all these costs is the app development,
costing the brand £52,000 followed by an additional £1,500 per month to license the software required to run its functionality. Other costs include business registration, insurance, computers, office supplies, rent and pre-launch marketing.
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SALES FORECAST YEAR 1
INTRODUCTION The following sales forecast was conducted based on Span’s projected aims regarding volume of users and partnering brands at the end of each year, spilt in accordance with the their separate streams of revenue (one B2B the other B2C).
B2C COMMISSION
Based on the assumption that the business would obtain 5000 users by the end of year one, the £254,459 revenue was calculated by working out the proportion of users in the launch month (June)- an assumed 833 gained from sponsored/influencer posts (based on their volume of their followers), and the growth rate in-between (a monthly increase of 40%). These figures were subtracted from the number of cancellations (15%) and human
error (where users purchase the product reviewed using the ‘barcode scanner’ function on the partnering brand’s e-commerce site not through the Span app) (15%), then multiplied by the number of times primary research respondents said they would use the app per month and then again by the average amount consumers spend in a single shopping trip, less 10% representing the proportion of commission the app receives per sale (£7.71) (see Appendix, page 123).
B2B SUBSCRIPTION Revenue from subscription was calculated in a similar manner, based on the assumption that Span would gain 50 partnering brands by the end of year one. Each would be charged £1000 per annum in subscription fees, generating a yearly income of £50,000.
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An assumed 37 brands would subscribe to the brand in their first month of operation, based on the volume of attendees at the Pure London event (increasing at a 95% monthly growth rate).
SALES FORECAST YEAR 1
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SALES FORECAST YEAR 2&3
B2C COMMISSION The assumed proportion of users in years two and three increases in increments of five, with a monthly growth rate of 5% in year two and 3% in year three (a significant decrease because the brand will be operational in all four quarters, as opposed to the two following their launch in year one).
The aforementioned calculations remained the same, but rates of cancellation and human error were increased by 10% and 20% in year two and then again by 15% and 25% in year three to match the growth of users. Revenue generated by commission was ÂŁ1,179,290 in year two and ÂŁ1,895,879 in year three.
B2B SUBSCRIPTION The pricing of subscription remains the same in years two and three, but the number of partnering brands increases much like with commission in increments of five (to 150 in year two and 200 in year three) as business awareness grows. Growth rate diminishes in years two and three to 10% and then by another 2%, again because the brand is operational in all four quarters not just two.
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SALES FORECAST YEAR 2&3
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PROFIT & LOSS YEAR 1
PROFIT & LOSS YEAR 1
The profit and loss statements note that Span will make enough money to sustain itself in all three years of outlined operation. Net profit generated in the first year is significantly lower in comparison to that of year two and three, largely because the business doesn’t launch until June, as a result making loss in the first two quarters.
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However, after gaining users Span will make a profit of £158,104 by December 2020. As a service provider the brand won’t incur any cost of goods, and absentee of the app development, has relatively low fixed costs as it doesn’t possess any production costs or store overheads, which is why the profit is so high in their first year of operation.
P R O F I T & L O S S Y E A R 1 E X PA N D E D
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PROFIT & LOSS YEAR 2&3
PROFIT & LOSS YEAR 2&3
In year two, the advent of team expansion (increased salary costs) and extension of the ‘disposal near me’ function means that the fixed expenses are more significant totalling £172,295. Be that as it may, with an increase in users and partnering brands, Span will see an
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increase in profit balancing out these new costs, ensuring that the brand makes £660,242 by the end of 2021. In year three the fixed costs remain the same as in the previous quarter, but the brand will have to spend more on marketing as a means of building scope to expand the business into auditing the footwear sector.
MARKETING BUDGET The annual marketing budget for Span’s year one strategy is £18,599, broken down in accordance to the three-year outline featured in the communications section of this report (as illustrated in the table below). The largest costing is the B2C launch event that takes place in June in collaboration with Birdsong, designed to introduce the brand to consumers. In years two and three the marketing budget
will expand in accordance to the brand’s growth. An increase in revenue allows for higher spending on marketing, enabling the brand to recruit influencers with higher followings to review the app on youtube and exhibit at LFW. Higher spending on more effective marketing will boost Span’s engagement and in turn generate more profit.
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S E N S I T I V I T Y A N A LY S I S In order to assess the brand’s monetary sensitivity, it is imperative to identify and analyse the impact of variables that may impact Span’s success, such as drop-out rate and human error. Therefore a sensitivity check has been conducted on the three year
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profit and loss accounts to assess their viability in best and worst case scenarios (+/-20%). Taking into account the impact of a 20% increase or decrease in net profit, it is clear to see that the brand would make money either way.
C A S H F L OW As aforementioned in the raising capital and profit and loss sections, the brand will make a loss in the first six months of the year prior to their launch. In order to cover these losses and maintain cash flow, Span need to obtain ÂŁ90,000 in funding tieing them over until they start making revenue.
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C H A P T E R S U M M A RY
In summary Span’s continual ability to maintain profit throughout their three years of operation, cements their viability as a business within this competitive market. Their financial security also allows for more risk taking (in terms of strategy) in the years following, building scope to expand into other sectors.
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90.
THE THE THE THE THE THE THE THE THE
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E VA L UAT I O N E VA L UAT I O N E VA L UAT I O N E VA L UAT I O N E VA L UAT I O N E VA L UAT I O N E VA L UAT I O N E VA L UAT I O N E VA L UAT I O N
KPI’S The following objectives/KPIs are indicative of the brand’s success as a business, monitoring Span’s viability within the market. If they cannot be met, it suggests that Span will be unable to function, failing to gain users and make money.
OBJECTIVE TYPE Strategic.
Communications.
Financial.
Financial.
OBJECTIVE
MEASUREMENT
To procure 5000 users by the end Span will use App Annie to of the first year in operation. measure their monthly app downloads, ensuring that communications has helped effectively obtain this target. To achieve a minimum Add up post’s likes, comments, engagement rate of 35% per post and shares, and divide by total on Instagram by the end of the number of followers then multiply first year of operation. by 100, using business Instagram measurement metrics to monitor likes and comments. To achieve a gross margin of Subtract expenses from gross 51% by the end of the first year of profit to get gross profit, divide operation. this value from total year one revenue and multiply this answer by 100. To increase net profit in year two Subtract second year profit from by 6%. first year, divide by 12 (representing the 12 months in a year), and divide this answer by first year revenue, then multiply by 100. This can be measured using profit and loss accounts.
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RISK ASSESSMENT The following objectives/KPIs are indicative of the brand’s success as a business, monitoring Span’s viability within the market. If they cannot be met, it suggests that Span will be unable to function, failing to gain users and make money.
EXTERNAL/ INTERNAL
RISK
THREAT
IMPACT
PREVENTION
External
Funding can’t be secured.
Medium
Absence of funding would mean that Span cannot afford the development of the app, and other additional startup costs.
Span can mitigate this risk by creating an effective proposition, and by applying for funding from varying platforms (i.e. crowdfunding sites, family and friends, and self investment).
External
Threat of similar entrants/ copycat businesses.
High
The advent of competitor’s with similar offerings would threaten Span’s positioning within the market, given that it would negate their point of differentiation as the only brand to provide such a service.
By effectively communicating their USP and by following the aforementioned business strategy, constantly innovating, Span will remain a market leader standing out from any potential copycat competitors. Expanding their offering/ functionality will secure this.
Internal
App malfunction.
Medium
Given that the app is Span’s only route-tomarket, malfunctioning software/technology would have a huge impact on their profit that month and irritate consumers (creating negative perceptions of the brand).
By employing an app developer within the team from their launch in June, Span can avoid this risk. It would be the developer’s job to carry out maintenance on the app at, as a means of ensuring that the consumer journey remains as smooth as possible.
Internal
Span doesn’t make its predicted revenue in year one.
Low
This would prevent Span from being able to enact the developments highlighted within the brand strategy section in years two and three, given that they wouldn’t be able to afford the salaries for new team members or expand the ‘dispose near me’ section to other areas in the UK.
By closely following the communications plan aforementioned, Span should be able to engage a large enough proportion of users to generate the forecasted sales. Additionally, the sensitivity analysis proves that, regardless of worst case scenario, Span will still be able to cover the cost of their expansion.
External
Partnering brands want to cancel their subscription.
Medium
By losing partnering brands Span will experience a significant drop in their revenue. In conjunction with this they will also fail to attract new and retain current users, given that the primary appeal of the service is its expansive provision of information regarding the production processes of multiple brands.
Span can eliminate this risk by including a clause within the terms and conditions brands must sign when agreeing to subscribe to the business, which commits them to partnering with the service for the full three years.
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G R OW T H P L A N In order to reach its full potential, in forthcoming years Span should focus on expanding their business in every way possible, be that into different markets, through product diversification, or just with the new brands that subscribe to
partner in the service In doing so they will avoid stagnation, as the ‘newness’/buzz around the brand will start to subside, and threat of copycat competitors will inevitably increase. This is illustrated in the Ansoff’s Matrix below.
A N S O F F ’ S M AT R I X EXISTING MARKETS/EXISTING PRODUCTS: The brand should continually work on getting more fashion companies to partner with the service, particularly those that are more high profile (e.g. ASOS and Topshop), to reach peak awareness amongst consumers.
EXISTING MARKETS/NEW PRODUCTS: Within the shopping mobile app market, Span should consider creating a chat room feature to bring their community of users together. Using this platform, Span users would be able to interact with one another, sharing tips on becoming more sustainable.
NEW MARKET/EXISTING PRODUCTS: NEW MARKETS/NEW PRODUCTS: Span should focus on expanding their auditing in In the future Span must consider expanding their the ‘mini reports’ and ‘barcode scanner’ sections, brand into new markets with new products, by moving into the footwear market, rating these collaborating with one of their partners to create brands on the sustainability of their production a fully sustainable and audited capsule collection methods, pricing, sizing diversity, and accessibility. of clothing. In doing so they can innovate their business to ensure it doesn’t stagnate after reaching peak awareness.
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CONCLUSION
If Span follows the implementation strategy within this report, they will be able to cement themselves as one of the most disruptive and innovative forces for good in the fashion industry. Their promise moves beyond resolving consumer tensions, by proposing a solution
to help resolve the second most polluting industry on the planet. Demand for this business is greater than that of menial products that can be worn and frivolously disposed of, it meets the needs of a dying planet and the concerns of an endangered species- the human race.
WE ARE THE FUTURE
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J U S T I F I C AT I O N S J U S T I F I C AT I O N S J U S T I F I C AT I O N S J U S T I F I C AT I O N S J U S T I F I C AT I O N S J U S T I F I C AT I O N S J U S T I F I C AT I O N S J U S T I F I C AT I O N S J U S T I F I C AT I O N S
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APPENDIX F I G 1 . M I N T E L M O B I L E A P P U S A G E TA B L E , J U LY 2 0 1 8
Reynolds, A., 2018. Mobile Device Apps – UK – October 2018 [online]. Available via : MINTEL [Accessed 11 March 2019].
112.
7P’S PRODUCT
The functions of the app include: a search option, in which consumers can look up brands and read ‘mini reports’ which assign said brands ratings in accordance to sustainability, price, sizing, quality, availability, accessibility, and style. These ratings take the form of a percentage, ranked in line with a traffic lighting system, addressing consumers’ primary concerns when shopping (see appendix, page…) eliminating the ‘perceived risks’ associated with deviating from the more habitual manner in which they purchase (Lin and Park, 2018). Other functions include a ‘barcode scanner’ (that operates in the same manner as the ‘mini reports’), which consumers can employ to scan the barcode of a product
(both online and in-store) and receive ratings again for sustainability, price, ethical production, sizing, availability, quality and style. Additionally, the app features a consumption tracker that consumers can use to track their clothing consumption month-to-month, and restrict retail app usage (to help minimise spending). The final feature is the ‘disposal’ section, which consumers can use to see the most sustainable methods/options near them that they can use to get rid of unwanted clothing. These functions tap into consumers’ preferences for apps that do ‘everything for them in one place’, responding to their receptiveness to ‘this consolidation of features’ (Moss, 2017).
PRICE
Span operates within the confines of a business model with two streams of revenue, these being subscription and commission (in the form of in-app purchases). A 2017 Mintel report noted that apps that are free to download, but that contain ‘microtransactions’ have a tendency to perform better (Moss, 2017). These microtransactions feature within the aforementioned ‘barcode scanner’ function, in which consumers have the autonomy to make the choice to purchase products- an option rather than a requirement. The second stream is one of subscription, in which the partnering brands featured within the service pay an annual fee of £1000 to participate.
Pricing structure: Subscription: The structure of pricing within the subscription revenue stream is organised into a singular tier, in an attempt to remain inclusive to all potential partnering brands, regardless to of their size or performance. All will be charged £1000 per annum to subscribe to be a part of the service, and will be authorised to sign terms and conditions alongside paying the payment- inhibiting them from dropping out of the service (a precautionary measure). Commission: The structure of pricing within the commission gained from the sales of partnering brands is simple: Span takes 10% of the profit made from the sale of each product. The profit made from this revenue stream will increase over time, as a rise in brand exposure will in turn lead to a rise in users, and in turn sales.
113.
PLACE
The Span ‘service’ occupies the form of an app for a number of reasons, but primarily because this particular channel better suits the functions featured within the service- making the user experience more convenient and seamless. The functionality of the app is of high importance, given that it must adapt to every consumer’s shopping journey, facilitating
the green consumption of fashion, by eliminating the perceived risks and inconvenience associated with deviating from habitual consumption behaviours. Therefore the functions/features within the app have been kept to a minimum, and included with a navigation bar, to help achieve this.
P R O M OT I O N
When it comes to promotion Span’s communication strategy must focus on two separate targets: businesses and consumers. Both are equally important in terms of ensuring the success of the service upon its entry to market, and therefore deserve their own focus.
B2B: Targeting businesses is of paramount importance, given that Span needs these partnerships in order to function. Therefore, primary focus should be placed on engaging these companies as soon as possible, prior to bringing the service to market. The businessto-business communication strategy should occupy the form of a ‘DRIP’ approach, the reasoning being because Span needs to continually target clothing companies as a means of facilitating new partnerships, helping to grow the business whilst at the same time engaging and retaining users. This approach will involve using a series of different platforms to engage this audience in every way possible. These include: trade shows, conferences, Linkedin, and social media. Communications in this regard will focus on delivering a message that is positive, inspiring, and encouraging, showcasing exactly why these brands should want to participate in such a disruptive and exciting service.
B2C: Following the targeting of businesses, Span will need to turn its attention to engaging users/consumers creating awareness, and generating interest in and around the brand prior to its entry to market, as a means of proving commercial feasibility to its partners and cementing its success. Much like the B2B strategy, the business-to-consumer communication strategy will adopt the ‘DRIP’ approach, continually engaging potential users which in turn will hopefully improve user retention- ensuring the app remain a ‘must have’ for the target audience. This approach will enact across multiple channels, building Span’s ability to target as many consumers as possible. These will include: social media, experiential pop-ups within partnering brands’ stores, and articles/featurettes within popular fashion publications (both online and offline). Communications in this regard should focus on being aspirational, inspirational and empowering- engaging users in a more positive and encouraging manner, which is why the overarching messaging will be one of education, gently informing people of Span’s intent as opposed to preaching it in an overpowering manner.
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PEOPLE
The team involved in delivering the Span service will be quite small, particularly in the initial stages of development, the members will include: the CEO, a marketer, and app developer. This is in part because the app will not possess a physical consumer facing store-front, meaning, a large team of staff is not necessary. However, in place, the written communication distributed across all of the online platforms that the service possesses
must be held in an equally high regard, as it is the only way consumers will interact with the brand. Therefore, communication guidelines must be put in place, and used when constructing marketing campaigns, emailing clients or consumers, and posting on social media to ensure that these interactions be positive, and keep in line with Span’s branding/tone of voice. This staff force will inevitably grow over time, to meet the needs of the business as it grows too.
PROCESS
Process refers to the processes involved in a product or service’s delivery, and how this affects the consumer’s experience. In this regard, process refers to users’ experience within the app, and communications with customer support (on platforms like Twitter and Facebook). These interactions must be as smooth and stress free as possible, as they will have a direct impact on consumers’ perceptions of Span, and these perceptions will impact others’. Therefore, to help combat these, the functionality of the app should be
of paramount importance. The inclusion of a navigation bar at the bottom of the app is designed to make the user experience quicker and easier, ensuring that the service makes their shopping journey insightful and convenient, rather than time consuming and stressful. Additionally, the option of being able to communicate with user support on social media platforms such as Twitter in real time, should hopefully improve responsiveness to any issues within the app, cutting down wait times.
PHYSICAL EVIDENCE
The provision of physical evidence is immensely important in reinforcing Span’s credibility as a business, especially seeing as consumers may already feel ‘distrusting’ of the service because it requires them to provide
personal data (Moss, 2017). As a means of combating this, Span should provide their own email receipts which they would send to users, following sales facilitated through the ‘barcode scanner’ section of the app.
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P O S N E R ’ S TA B L E O F D I F F E R E N T I AT I O N : G O O D O N Y O U MARKETING MIX VARIABLES
GOOD ON YOU’S OFFERING POTENTIAL AREAS FOR DIFFERENTIATION
COMPETITIVE ADVANTAGE
Product
Good On You is an app that audits on the performance of sustainable brands.
Span also audits the sustainable contributions of fashion brands, but assigns them traffic light ratings.
Breaking down this information is more attractive to consumers who want to access it in a short and easy to read manner (seeing as they are time poor).
Price
Free.
Free (but includes optional in-app purchases).
The advent of optional purchases (of partnering brands’ products) will give Span a competitive advantage, as it enables consumers to research and buy clothing in one platform.
Place
The service is Good On You’s solitary route to market asides from social media.
The app is Span’s sole route to market and online channel asides from social media.
Span will have to differentiate themselves on social media, using these online channels to inform consumers of their multiple functionalities (USP), to convince them to use their app and not Good On You.
Promotion
The app possesses a significant following online (with an accumulative 118073 followers on Instagram, Facebook and Twitter). Additionally, the brand uses celebrity endorsement, recruiting influencers like Emma Watson to publicise their offering.
As off yet, Span doesn’t possess as significant a following as Good On You, and will therefore have to work harder at communicating their USP (an multiple functionalities) as a means of differentiating themselves.
Span are at a disadvantage in this regard given the advent of Good On You’s celebrity endorsement. Therefore, as aforementioned, the brand will have to use social media to fully communicate their USP (multiple functionalities), eventually building enough of a profile that they to can work with popular influencers.
Physical evidence
Good On You doesn’t have a physical storefront as they aren’t a retailer. The business exists primarily on their app and social media channels.
Like Good On You, Span doesn’t have a physical storefront, but their employment of CRM will make up for this and give them a competitive advantage, by interacting with users, helping to facilitate closer relationships (and build brand loyalty).
The advent of CRM will make users feel more supported and remain loyal to Span, therefore using their app over Good On You’s.
Process
The business is segmented in accordance to their functions, enabling consumers to search for brands (and their sustainable processes), save these to their favourites, and to search for offers (discounts on sustainable brands).
Much like good on you, Span is also segmented in accordance to functions, but information is broken down into ratings (as opposed to paragraphs of text). This better facilitates sustainable consumption because it provides users with the information they need in a more digestible manner.
The advent of numerical ratings instead of text makes Span more convenient than Good On You, particularly for consumers that are time poor and need that information quickly.
People
Given the absence of a physical storefront, Good On You doesn’t possess a staffforce.
Given the absence of a physical storefront, Span doesn’t possess a staff-force.
Again, by using CRM and social media platforms like Twitter to interact with users, Span can stand out from Good On You, by building a community of like-minded and loyal users.
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P O S N E R ’ S TA B L E O F D I F F E R E N T I AT I O N : FA S H I O N R E V O L U T I O N MARKETING MIX VARIABLES
FASHION REVOLUTION’S OFFERING
POTENTIAL AREAS FOR DIFFERENTIATION
COMPETITIVE ADVANTAGE
Product
A website that includes: An ‘index’/report designed to inform consumers about the sustainable contributions of brands (or there lack of).
While Span’s offering is similar with regards to their provision of information regarding the sustainable contributions of brands, it exists on a different online platform as an app. This is more convenient for consumers who can then access that information conveniently when out shopping.
This element of convenience (in that the app can be used on the go) will make Span’s service more appealing to users, as the information is easier to access and understand.
Price
Free.
Free (but includes optional in-app purchases).
The added inclusion of optional in-app purchases will help provide the brand with a point of differentiation, as it provides more than just information.
Place
The index is published as a sub-sector of the Fashion Revolution website.
The app is Span’s sole route to market and online channel asides from social media.
The app will be easier to access, as it remains a permanent feature on users’ phones.
Promotion
The index itself is not outwardly promoted on its own. Fashion revolution use social media primarily to publicise their brand and their collaborations with fellow initiatives (of a similar nature), such as Extinction Rebellion, as a means of showcasing the polluting nature of the fashion industry.
The ‘mini reports’ included within the app are one of primary features included within the app, therefore Span will place more focus on publicising the function to better attract users.
The advent of influencer support will give Span an advantage, bringing them the attention they need to differentiate themselves from existing competitors like Fashion Revolution.
Physical evidence
Fashion Revolution doesn’t possess a physical storefront as they aren’t a retailer. Instead they operate across online channels, producing content for their website, social media, blog, and YouTube channel to better inform consumers about the damaging aspects of fashion and how they can help individually reduce these.
Similarly to Fashion Revolution, Span will not possess a physical storefront, large in part because the service is designed to be used within the stores of other retailers, it is a solely digital business.
Additional features like the consumption tracker strengthens Span’s USP, as it provides consumers with more than just information, helping them change their polluting behaviours in a manner of different ways.
Process
The index is less easy to navigate. It occupies the form of a report, featuring 68 pages of in-depth content. While the subject material is split into sections it is still inconvenient for consumers to navigate, and the content is difficult to digest.
The information regarding brands’ sustainable contributions is audited in ‘mini reports’ under a search platform, broken down into traffic lighted ratings.
The process of navigating the Span app is much easier than that of the Fashion Revolution Index. Largely because the ‘mini reports’ are much more condensed, designed to give on the go consumers the information they need to make good choices in a quick and digestible manner.
People
Fashion Revolution identifies as more of a movement, and therefore consists mostly of a coordination team (who runs and maintains the website/ organisation) and supports (those who engage with the brand on social media (producing content that Fashion Revolution can then repost on their online platforms).
The team involved in delivering the Span service will be quite small, particularly in the initial stages of development, the members will include: the CEO, a marketer, and app developer. This is in part because the app will not possess a physical consumer facing store-front, meaning, a large team of staff is not necessary.
In order to stand out from Fashion Revolution, Span should employ the use of CRM to better address their consumers’ needs, given that they don’t possess a traditional staff force. In doing so, they will become far more interactive and attractive in the eyes of potential users.
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P R I M A RY R E S E A R C H F I N D I N G S : C O N C E P T T E S T I N G S U R V E Y
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P R I M A RY R E S E A R C H F I N D I N G S : C O N C E P T T E S T I N G S U R V E Y
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P R I M A RY R E S E A R C H F I N D I N G S : C O N C E P T T E S T I N G S U R V E Y
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P R I M A RY R E S E A R C H F I N D I N G S : I N S TA G R A M P O L L S - C O M M S
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P R I M A RY R E S E A R C H F I N D I N G S : I N S TA G R A M P O L L S - F I N A N C E
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P R I M A RY R E S E A R C H F I N D I N G S : I N D U S T RY I N T E R V I E W- M AT T D E N M A N M: So I can give you a run down of the business… I: That would be great! M: Okay, so we actually run a couple of businesses from this office, one being Podium which is a joint venture between myself, Mark (who you met yesterday), and Moneysupermarket. Effectively, all it is trying to do is build a digital platform for mortgages; so my background is in financial services. Basically when most people apply for mortgages they end up going through a broker on the phone, which isn’t particularly technically advanced. Moneysupermarket get 15 million consumers turning up to their site every year asking for mortgage advice, so we are trying to build a digital platform to do that. And then my background prior to that- I build a business called HD Decisions, which I sold to Experian that effectively just helps consumers online figure out which financial products they’re actually going to qualify for… so I don’t know if you’re in the market for a credit card or a loan or a mortgage or anything, but if you’re looking on TV you might have seen it advertised all the time now- so these sort of quick check services to find out if you’re going to get anything, well that’s my company. We were enabling big brands to sell direct to consumers, by building apps, websites, and digital platforms. I: On average how much do you spend on licensing technology/software? M: I mean it totally depends. That has changed over the last 10/15 years, and obviously it changes all the time. I mean, when we set up the fist business, you’d buy all of these boxes of some hardware and that would’ve cost a fair amount, but now its of the order of low thousands every month, to rent cloud computing services and all the software that we use for building the capabilities is all open sourced so it’s free or pretty cheap. So I’d say, whereas historically you might have spent sort of 10 to 50 thousand pounds per month building out a bigger infrastructure, now we only spend 1 to 2 thousand a month on cloud computing, and then another on the software. It’s now a really small percentage of overall budget, so it’s like low single digit percentage. I: That’s brilliant! M: But it’s stable as well, so in the first few months you can start really low and not pay anything at all really and grow slowly, you don’t have to make any big commitments. I: What is the maximum you think I could ask as an average from investors? M: It totally depends on the sort of business… um… and it depends what sort of route you go down. I think there is a number of different financing options. So our experience is self invested- trying to boost as much cash as you can yourselves, and from friends and family, because you end up giving away less eggs in the business. It also totally depends on the story you have to tell around the kind of story and proposition, but… uh… yeah the initial ask for the business could be anything from around 25 to 50 thousand pounds. And that probably will give you enough for proof of concept, to then talk to clients and investors and receive another 100 to 200 thousand. The bit that makes the most difference, in my experience, is if you are looking to build something that that you need consumers to sign up to directly, because you need distribution and you need marketing money. And if you need marketing money you need to have really deep pockets, either that or you find a partner that doesn’t put money in, but gives you the distribution as part of the deal. One of the main reasons we were so excited about the Moneysupermarket joint venture was because they sort of have those 15 million consumers there, so we don’t have to spend a penny to get them. So distribution is often the killer for most start-ups, because you can build a really good product, but you can’t necessarily get people to use it. But there are different models, so you can either get the cash and do it yourself which is very expensive, and you need really good pockets, or you can partner with somebody who already has distribution. I: Yes, that’s kind of the hope for my business. I: Do you think that bigger businesses/companies would be interested in partnering with my idea? M: I mean clearly sustainability is a massive um topic at the minute, I mean people are talking about it and are very interested I think. I mean… give me a little flavour for it… I: So essentially, partnering with brands, and getting them to pay a subscriptional fee to be a part of the business and help provide me with the information I need to to give them a rating for several different areas. It’s supposed to kind of eliminate consumer perceptions of risk when trying to shop more sustainably, and in turn should hopefully boost sales for them and users for us. M: So sort of like a Which rating or something like that? I: Yeah something similar… M: But from a sustainable perspective, okay. M: So you wouldn’t be looking to drive consumers through your platform to buy the products? You’d be looking to have your rating on other people’s?
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P R I M A RY R E S E A R C H F I N D I N G S : I N D U S T RY I N T E R V I E W- M AT T D E N M A N I: Yes. M: I think that is definitely easier to do, particularly for you. Um, so I think the question in this is the amount of credibility you would have in that rating, and how that will affect consumer confidence and buying, and that sort of thing. And I guess a lot of people say, well can the big businesses not do that themselves? And I guess there are a couple of things in that market that are stopping them: one is a need to be independent, and being seen to be independent- otherwise are you seeing any value in it? And then often with big businesses, we’ve found that they can’t because they just don’t have the focus, even if this is a small part of the bigger picture, they just don’t see it. Another thing is that big businesses just tend to be slow at achieving anything and it would cost them a fortune to do something like this themselves, so no- I don’t see why not. I: Perfect, have you formulated or created a product/service that has worked in partnership with other brands/ companies? M: Yep, yeah… It’s a good way to go about things I think in terms of lower risk entry to the market. It does come with challenges though, so there’s a partner that needs to be happy with things- you know you might think that the longest thing to do will be the build, but… Well let’s say you were going to go about this great market wide ability to assess sustainability of products that brands are selling, if you needed to make a small change to the website you could do it yourself in a couple of weeks, but it might take them forever because they’ve got big release schedules. You’ve just got to… there’s a kind of frustration factor that you’ve just got to factor in as well. I mean even if it’s a great product, and they’re very keen on it, doesn’t mean it happens very quickly. So often what we find, is that if you take some of that effort away from them you can get things done a lot quicker. A great example is that we’ve worked with big brands like Moneysupermarket previously, and we’ve asked them to adopt a service of ours and integrate it into their consumer proposition, when actually it would have been quicker to just say we’ll take the consumer proposition off you as well- we’ll brand it how you want it, it will be Moneysupermarket, but we will just do it because it takes too long. I guess if you’re going to go with really big high-street brands they are going to want to do everything themselves, but if you are going with more independent providers, or a blend of both if that’s the ambition, then I sense those independents would be relieved if somebody took some of that pressure off them. I: How have you facilitated/formulated those relationships? M: Um. I guess unfortunately still a lot of it comes from… so if you’ve got a great proposition and story, then you’ll have no problem getting time with people- which is the main challenge, and then once you’ve got that time with people that’s it. Unfortunately it still boils down to who you know, and so while Linkedin might not be the sexiest of platforms, it is pretty useful in business in terms of who you know well, and which colleagues and friends and family know people also. But equally, if you’ve got a decent message then contacting phone cold isn’t a bad thing either. A lot of it will come back to credibility and who much businesses believe you can deliver what it is that you’re looking to do. But it’s not such a barrier that you should give up on what you’re looking to do. I guess with what you want to do, endorsement from anyone that has exposure in that market I guess will be really useful, but I’m less familiar with leveraging social media for business development, so for us it’s more or less about who you know than fashion oriented trends and things like that. I: Do you think it would be wise for me to have three tiers in my subscriptional revenue stream: 3 different price points allocated to brands in accordance to their size and profit margins? M: Yep, definitely. My biggest bit of advice when pricing that we’ve found is that there is a really strong temptation at first to discount your pricing to get people to sign up. Um and you can sort of say, well here’s my standard pricing but because you’re one of my first few clients, we will put you on discounted pricing. My advice is do not do that if you can possibly avoid this, because, it’s then really difficult to get them off that discounted pricing, and then you set this sort of expectation that they can pay this, and therefore what we have seen that works better is giving it away to the first people. This is because they want that adoption first of all, but also because no-one really thinks they are going to get that free, and so it’s a much easier conversation to go back and say you’ve had six months free now, we need to move to standard pricing- rather than well we need to boost that pricing up a little bit. But I definitely think that tier pricing helps, depending on how you’re thinking that tier pricing would work. I’m guessing you’re thinking the bigger the brand the more they pay? I: Yes. I: Yeah so, the idea is with the element of tracking the ratings of the product, if the consumer did choose that they wanted to buy that product afterwards, they would click that link and would be taken to the partner’s e-commerce site where they could buy it, and I would then receive 10% of that sale. M: Yep, I would try to get the business to work of the subscritional stream, and then the commission stuff would just be a nice thing to have on top of it.
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P R I M A RY R E S E A R C H F I N D I N G S : I N D U S T RY I N T E R V I E W- M AT T D E N M A N M: The bigger brand will probably be thinking the more volume, the less I pay, but that really just depends on how you position this. But no absolutely. Maybe you could… um… I don’t know how you’re thinking of pricing, but often folk like to think they’re getting a good deal, even though actually when you’re working out the economics that is not necessarily the case, and so you might put people into those three brands depending on: volume, but actually i.e. a type of licensing type cost. So if you’re making less than 10 thousand units, it’s this price, but actually the unit price of those big ones might be less than the top brands, because they’re in the higher subscription bands. So they might think they’re paying less than the smaller brands, but in actuality they aren’t. I: Is it okay to have two streams of revenue, so to operate on subscription, but also potentially commission? M: Yep, it depends on what the kind of aim is. So I think, I suppose you should get as much revenue based on ongoing activity (so subscription), i.e. so somebody is paying for that service upfront but then it is ongoing, but anything that basically means you get paid each month, then that just creates much more value in a business than other models. Just because that’s just regular income, not saying that you don’t have to do anything for, but that you could be in bed earning it and the business is still getting revenue. If that makes. But what would the commission look like? So is it based off of a lift in sales as a result or? I: Yeah so, the idea is with the element of tracking the ratings of the product, if the consumer did choose that they wanted to buy that product afterwards, they would click that link and would be taken to the partner’s e-commerce site where they could buy it, and I would then receive 10% of that sale. M: Yep, I would try to get the business to work of the subscritional stream, and then the commission stuff would just be a nice thing to have on top of it. I: Do you have any advice for myself or the business venture? M: Don’t discount give it away for free is one of the biggest things, um… I think don’t be afraid of trying it out on as many different people as you can, getting everybody’s reaction on it will be good- not just people that will say yes yes yes, but also people that are gonna be pretty critical as you’d rather tease that out now. Um… don’t be afraid of getting in front of potential clients as well, sooner rather than later, because what we’ve found is that it is relatively easier to get potential partners in the pipeline than push one or two over the line and so don’t kind of say I’ve got these three clients in my vision and then I’m just going to focus all of my efforts on those, because for reasons outside of your control those partners might go away. So just try to have a broad a pipeline as possible of people at the front. Yeah just don’t be frightened of making a go of it. Fail as quickly as you can, and give it another go. And I guess just work with people you get on well with, ultimately it won’t be successful if you don’t. Also London is a great but expensive place to run a business, employees tend not to be as loyal as there is ample opportunity there, so keep that in mind. I: Thank you so much! M: Cool that’s alright.
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P R I M A RY R E S E A R C H F I N D I N G S : I N D U S T RY I N T E R V I E W- M AT T H I N TO N Thank you so much for taking part in this interview regarding using Linkedin to facilitate business-to-business partnerships. Please note, that by filling out the questions below you are agreeing to participate in my research study. Participation is voluntary, so should you wish to withdraw your information at any time, please let me know via email (N0693942@my.ntu.ac.uk). By taking part in this interview you are agreeing to consent to the information you provide being used within this project, all information given will be kept private. All results will be kept in accordance to the Data Protection Act and will be destroyed at the end of the project. Thank you. How does Linkedin facilitate business to business-to-business relationships? LinkedIn facilitates this at a free level via Member Connections but members are limited in being able to contact only people that are “within their network” via their 1st and second degree connections. At a paid level we facilitate B2B activities and relationships via; 1. Sponsored Updates – With the number 1 activity of Members on LinkedIn now being to engage with content in their news feed the ability for businesses to Sponsor Content that appears in a Members news feed is one of our fastest growing products. The business can select the content they would like to sponsor and picks the specific demographic of person they want to target (this could be based on the company they work for, location, industry, skills etc). When a Member clicks on the content they can be diverted to another website or the lead can be captured in LinkedIn and the business is charged a dollar amount for the click 2. Sales Navigator – This is a product that utilizes the member and company data in LinkedIn to help business’ identify other companies they can sell/market to and recommends the key contacts within these companies. It also utilizes company updates and information to recommend the best time to reach out and provide an angle to leverage in the messages that you send through the product Are these relationships more successfully formed offline or online? Being an online platform the relationships are definitely better first formed online and then further nurtured both online and offline. Do business pay for these services? Yes How can businesses appear more desirable on the Linkedin platform? A business can help make themselves more desirable on LinkedIn by fully building out their Company profile, growing their Follower base and posting relevant and engaging content to their company page on LinkedIn. When they have a corporate (paid) solution with LinkedIn they are assigned to work with a LinkedIn Relationship Manager who can work closely with them to advise on how they can more effectively communicate their brand and appear more desirable. What would be more successful on the site: a video or image campaign? Video content is engaged with by Members at 3-4x the level of images so we would always recommend video content over images How can you use Linkedin to measure KPI’s (key performance indicators)? All of our free and paid products come with full back end analytics to enable companies to track their improvement and success. This includes message acceptance rates, follower growth and influenced leads (Leads that ultimately bought via LinkedIn marketing. Does Linkedin run any experiential/networking events/pop-ups/seminars/expos to help businesses forge these relationships? We hold many client events, exec roundtables and work shops for the companies we work with and that purchase our solutions with a key goal being to help them with their networking.
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FINANCE: EXTENDED PROFIT & LOSS YEAR 2
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FINANCE: EXTENDED PROFIT & LOSS YEAR 3
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F I N A N C E : J U S T I F I C AT I O N S EXPENSES
COMPANY
DATE ACCESSED
PRICE
URL
Office space (inc. wifi, utilities, etc)
Hubble HQ
9th March 2019
£130pm
https://hubblehq.com/office-space/5953/paradise-dockslight-filled-studio
Macbooks X 2
Apple
9th March 2019
£480pm
https://www.amazon.co.uk/Cristal-Original-Ballpoint-Medium-Point/ dp/B000I5ZK2U?ref_=fsclp_pl_dp_1
Work phone
Tesco Mobile
9th March 2019
£15pm
https://www.tescomobile.com/shop/ apple/iphone-se
Pens
Amazon
9th March 2019
£8.49
https://www.amazon.co.uk/Cristal-Original-Ballpoint-Medium-Point/ dp/B000I5ZK2U?ref_=fsclp_pl_dp_1
Paper
Euro Office
9th March 2019
£14.89
https://www.euroffice.co.uk/ product/Euroffice-A4-PrinterPaper-Ream-Wrapped-2500Sheets-80gsm-White-Paper/ ABE986?AFF=LIB6819154&s_ tg=pla-303525752539&_$ja=acid%3a874-847-2214%7cci d%3a1027165402%7cagid% 3a61520921970%7ctid%3apla-303525752539%7ccrid%3a329105949533%7cnw%3ag%7crnd%3a17187444053897667322%7cdvc%3ac%7cadp%3a1o1%7cmt%3a%7cloc%3a9046399&gcl id=EAIaIQobChMIo6jh39fr4QIVIzPTCh2ckQEOEAYYASABEgLBkvD_BwE&s=1
Highlighters
UK Office Direct
9th March 2019
£2.58
AFF=LI&gclid=EAIaIQobChMIso79gtjr4QIVg53VCh3O0QlEEAQYBSABEgI-6PD_BwE&s=1
Binders (X3)
Euro Office
9th March 2019
£47.28
https://www.euroffice.co.uk/ product/5-Star-Office-BoxFile-Lock-Spring-with-RingPull-75mm-Spine-Foolscap/ AAM223?AFF=LIA7255676&s_ tg=aud-375174340933%3apla-399604026676&_$ja=acid%3a874-847-2214%7ccid%3a1027165402%7cagid%3a62846926701%7ctid%3aaud-375174340933%3apla-399604026676%7ccrid%3a329048743578%7cnw%3ag% 7crnd%3a1699308379772257507 %7cdvc%3ac%7cadp%3a1o2%7cmt%3a%7cloc%3a9046399&gclid=EAIaIQobChMIu-y9vNjr4QIVhp3VCh3XxQCIEAQYAiABEgLwx_D_BwE&s=1
Stapler
Wilko
9th March 2019
£1.75
https://www.wilko.com/en-uk/ wilko-medium-stapler/p/0414084
Staples
Wilko
9th March 2019
£0.50
https://www.wilko.com/en-uk/wilkostaples-266mm-x-2500/p/0260665
Liscensing software
Matt Denman Interview
29th March 2019
£1,500pm
See Appendix, page 127
App development
createanet.com
29th March 2019
£52,000
See Appendix, page 134
CRM software
opencrm.com
26th March 2019
£33pm
https://www.companyaddress.co.uk/ post/58
Business registration
Company Address
24th April 2019
£12
https://www.digitalrisks.co.uk
26th March 2019
£24pm
https://www.digitalrisks.co.uk
29th March 2019
£177pm
https://www.adobe.com/uk/creativecloud/plans.html?plan=team&step=2&promoid=WT7FJ7K8&mv=other
Digital Risks Insurance (employers’ liability, cyber liability, business contents insurance) Adobe creative cloud (X2)
Adobe
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F I N A N C E : J U S T I F I C AT I O N S EXPENSES
COMPANY
DATE ACCESSED
PRICE
URL
CEO
Pay Scale
29th March 2019
£19k per annum
https://www.payscale.com/mypayscale. aspx?pid=a1f771c9-e57f-4fc4-acc711318c93d29a&wizardid=7&s=0&ft=0
Marketing Lead
Pay Scale
29th March 2019
£21k per annum
https://www.payscale.com/mypayscale. aspx?pid=895ff8ef-f0d3-424f-99c2-2788edbde8eb&wizardid=7&s=1&ft=0
App Developer
Pay Scale
29th March 2019
£22k per annum
https://www.payscale.com/mypayscale.aspx?pid=305bd5e5-5dfa-4e50-a623-33d69a15ae a5&wizardid=7&s=1&ft=0
Production Manager
Pay Scale
29th March 2019
£24K per annum
https://www.payscale.com/mypayscale. aspx?signedUp
Digital Strategist
Pay Scale
29th March 2019
£26k per annum
https://www.payscale.com/mypayscale. aspx?pid=3aa5f33d-edd1-40dd-bc66-e7b5f46f1922&wizardid=7&s=1&ft=0
Copywriter
Pay Scale
29th March 2019
£19K per annum
https://www.payscale.com/mypayscale. aspx?pid=b9ebc161-9864-484d-a686b299ce84cb0e&wizardid=7&s=1&ft=0
Social Media Strategist
Pay Scale
29th March 2019
£19K per annum
https://www.payscale.com/mypayscale.aspx?pid=742fc5d1-845a-4a95-81b2-48c3535b89f4&wizardid=7&s=1&ft=0
Informative website
Squarespace
24th April 2019
£16
https://www.squarespace.com/ domain-name-search/?channel=pbr&subchannel=go&campaign=pbr-dr-go-uk-en-squarespace-general-bmm&subcampaign=(brand-domains_ squarespace-domains_bmm)&gclid=EAIaIQobChMI67_o1dPr4QIVh0PTCh03wgenEAAYASAAEgJ9KvD_BwE
Video B2B
Bareska Creative
24th April 2019
£5000
See Appendix, page 134
Video B2C
Bareska Creative
24th April 2019
£5000
See Appendix, page 134
Linkedin Sales Navigator
29th March 2019
£430
See Appendix, page 134
Linkedin sponsored posts
29th March 2019
£11pp
See Appendix, page 134
influencer youtube videos
CPR Strategy
1st May 2019
£2280pp
https://www.digitalmarketing.org/blog/ how-much-does-influencer-marketing-cost
Sponsored posts (Instagram)
24th April 2019
£150
See Appendix, page 134
Pure London
Pure London
24th April 2019
£1899
See Appendix, page
LFW Exhbition
LFW
1st May 2019
£5000
See Appendix, page
Venue (including utilities)
We Are Pop-up
24th April 2019
£450
http://wearepopup.com/u/w1-gb-nottinghill/
Insurance
Higos
1st May 2019
£125
See Appendix, page
Print marketing
Insta Print
1st May 2019
£16
https://www.instantprint.co.uk/flyers-leaflets/ a5#!?lamination=no&size=a5&paper=value-silk-150gsm&sided=single&rangesizeq=0&turnaround=Standard
Social media promotion
24th April 2019
£150
See Appendix, page 134
Rails (X3)
Argos
1st May 2019
£9.99 per rail
https://www.argos.co.uk/product/8752714?cmpid=GS001&_$ja=tsid:59157%7Cacid:480-316-7430%7Cc id:596225723%7Cagid:30099173793%7Ctid:pla-218991982113%7Ccrid:94121430633%7Cnw:g%7Crnd:2553242798341688650%7Cdvc:c%7Cadp:1o3%7Cmt:%7Cloc:1006965&gclid=EAIaIQobChMIwJDUyb3p4QIVRLUYCh03bQAWEAkYAyABEgKgs_D_BwE
Seating
Ikea
1st May 2019
£130
https://www.ikea.com/gb/en/products/remsta-armchair-tallmyra-dark-green-art-80344758/
Photographer
Bid Vine
1st May 2019
£150
https://www.bidvine.com/event-photography/ price-guide
Press release
PR Newswire
1st May 2019
£250
https://www.newswire.com/send-a-pressrelease/?_vsrefdom=google-ppc-international&gclid=EAIaIQobChMI85ST-7vp4QIVQZztCh2aEwqbEAAYAiAAEgLapPD_BwE#getstarted
Launch event
131.
F I N A N C E : J U S T I F I C AT I O N S : I M A G E S
Sales Navigator & Sponsored post costings: Linkedin.
Sponsored social media post costing: Instagram
B2B & B2C sponsored video costing.
Pop-up launch event insurance quote.
App development cost.
132.
PURE LONDON COSTING INTERVIEW I: Interviewer PO: Phone Operator I: Hi, I’m calling as a representative for the brand Span to learn more about the pricing for your Stands at Pure. PO: Hi there, sure thing could you tell me more about the business so that I can give you a better quote? I: Sure thing, essentially Span is an app that facilitated the green consumption of fashion by auditing/traffic lighting brands in ‘mini reports’, additionally the app also applies this on a micro product level with the ‘barcode scanner’ function, and includes a ‘consumption tracker’, and ‘disposal near me section’. PO: That sounds really interesting, I think the best fit for you would be the concept stand which costs £1899, would you like me to email you more information about exhibiting at Pure? I: Sure, thank you.
LFW COSTING INTERVIEW I: Interviewer PO: Phone Operator I: Hi I’m calling on behalf of Span an app that facilitated the green consumption of fashion by auditing/traffic lighting brands in ‘mini reports’, additionally the app also applies this on a micro product level with the ‘barcode scanner’ function, and includes a ‘consumption tracker’, and ‘disposal near me section’. I want to enquire as to how much it would cost to exhibit at LFW? PO: Hi, it costs around £5000 for businesses to exhibit at our event, is there anything else I can help you with? I: No thank you!
133.
CONSENT FORMS
134.