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ARTD 2040 Digital Fashion Marketing BA Fashion Marketing 24397741 Nomin-Erdene Surenjav 1
Contents 1. Introduction 2. The Brand 3. Target customer 4. Situation Analysis 5. Objectives 6. Tactictis to implement Digital marketing stragtegy 6.1 Marketing Tool Social Media 6.1.1 VKontakte 6.1.2 Critical Judgement 6.2 Marketing tool Mobile Marketing 6.2.1 Instant Messaging 6.2.1.1 Critical Judgement 6.2.2 QR code 6.2.2.1 Critical Judgement 6.3 Viral Marketing 6.4 Conclusion 7.Action 8. Control 9. Pendix 10. References
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Introduction There are many internet based organizations and most of them started business online basis. However, 69% of all organizations do not have any digital marketing strategy (Chaffey, D and Bosomworth, D 2013). A lack of structured planning for digital marketing is evident in relatively unsophisticated adopters of digital channel. It is important to create a separate digital marketing strategy and the activities should be integrated into annual planning. According to Business zone, it stated that digital marketing is replacing the traditional offline marketing and around 82% of adults in UK equivalent to 42 million individuals went online in the first three months of this year. Furthermore, digital marketing is important because it brings benefits of conducting effective and efficient customer surveys. Thus, it enables to monitor real-time responses of customers and make the strategy more effective. Report Objectives Therefore, Base is planning to develop a digital marketing planned approach to improve customer knowledge to reach Russian audiences online and support the flagship store in Moscow. Digital marketing is “Achieving marketing objectives through applying digital technologies” Chaffey, D and Chadwick, F (2012) and it is beneficial to increase the sales, add value on the brand, developing customer relations, reduce costs on customer surveys and extend the brand image online. This report proposes to develop the Base’s digital marketing plan in Russia. Base applies SOSTAC planning framework to develop the digital marketing strategy. SOSTAC® is a strategic planning process framework that gives you a clear structure to work through to create and manage your plan.
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The Brand Base has been growing organically since its inception in 2008. The brand is a lifestyle brand bases in the heart of the East London, renowned for bringing the outdoors to the street. The brand designs high quality products with focus on functionality and creative attitude, fusing both local and global influences. The products are manufactured sustainably and range from men’s apparel such as basic t-shirts, to jeans, to beanie hats, all designed to take you from the city to the outdoors, and back again.
Target customers in Russia
Base’s current target consumer is male, urban city dwellers, aged between 25 and 35. He works within the creative industries and tend to belong to the middle class. This affords him the lifestyle synonymous with cool, contemporary city regions. The consumer is mostly an innovator or early adopter in that he is not concerned with mainstream fashion retailers, instead preferring to shop at independent stores. He is environmentally conscious and concerned with sustainable production and sourcing, therefore he values ethical products and garments. Furthermore, the Base’s consumers is high-tech lifestyle drives their decisions, they need to be in the driver’s seat and approach a brand for information. They often tend to do research on Google and Yandex search tools on the internet to look for new insights and inspirations.
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Situation analysis This market is new to Base and Base does not have any relevant previous experience with it, thus it is crucial to understand and research the market before entering the market. In order to plan Base’s digital marketing strategy in Russia, it is important for the company to be aware of its internal capability to deliver and external marketing environment
Strengths
Opportunities
-Environmental and Sustainability awareness -Multilingual service -Easy to use online ordering system -Strong management and strategy -Customers can order from all regions in Russia
-Cross border e-commerce segment is increasing rapidly -Using Russian social medias to connect with target consumer -20-35 years old consumers use internet increasing (our target customer) - Russian consumers are brand conscious and are willing to pay more for branded apparel.
Weakness
Threats
-Language barriers. -Lack of marketing and sales expertise
-Local competitors with lower price -The import VAT is high (18%) -Online fraud activities by hackers
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Objectives Base is set the objectives for digital marketing strategy using the 5s framework. The 5Ss of digital marketing is a starting point to make sure if our brand is covering the all aspects of digital marketing. The framework compromises sale, speak, serve, save and sizzle. Base’s strategic period to fulfil above objectives is up to 6months.
Base’s objects are the following: - To create strong brand identity and to increase the brand awareness in Russian Market -To support the flagship store in Moscow - To increase sale through the Base’s website by 10% in Russia -To improve the customer service online, using social media and instant messenger -Effectively use websites thus, reduce costs on service and traditional media costs -Increase the number of followers and fans on social networking sites by 5% in Russia -Reach 15 thousand followers on VKontakte
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Tactics to implement digital marketing strategy Base’s target consumers in Russia are heavily users of internet and they choose only the appealing trend and they are motivated by finding something new. They achieve these through searching on blogs and websites thus, they are mixing the trends, styles and make something new on their own. Base’s online value proposition is to bring the exciting activities with lifestyle contents. Base is using web and mobile marketing tools to interact with the target consumers.
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Marketing tools Social media Social media is the marketing tool which permits companies to communicate better with the end-consumers directly and on timely basis at lower costs compared to traditional marketing channels. One of the Base digital strategies is to utilize social network, namely VKontakte. VKontakte (In touch) VKontakte is defined as equivalent to Facebook in Russia and it has 45 million daily users from Russia, Kazakhstan, Ukraine, Moldova and Belarus. It is the biggest Russian social network that it is important channel for social media marketing. VKontakte allows users to message contacts publicly and privately; create groups, public page and events; also share tag images, video and audio. Therefore, Base is opening public page and group on VKontakte and we plan to reach 15 thousand followers in 6 months’ time. According to the Shishkova, V (2013) Russian consumer prefers to use internet in her mother language. Therefore, the Base’s VKontakte page and group will be translated into Russian thus, it enables Base to connect with Russian audience. Base uses VKontakte marketing to invite group members, event participants, as well as directing to customer service page. Furthermore, Base will communicate customers with interesting contents such as news on our new range products and new season clothes. In addition, Base is introducing and informing our blog websites (English websites) and also post videos of being hipster tutorials and inspirational ideas of this style for the beginners. Base is planning to run a competition to attract more customers. It is for the best street style photo shoot, people can tag themselves on VKontakte to participate in the competition. It has a viral impact on our customers that existing customers can inform about these competitions to potential new customers. In conclusion, the concept of marketing in VKontakte is the fastest way to tell to customers about what is going on in brand and also it is a viral marketing.
Critical Judgment There are few reasons why Base is using VKontakte for its digital marketing strategy. Firstly, VKontakte is the largest social network with upwards of 45 million daily users. There are few competitors such as Odnoklassniki.ru with 30 million users and Facebook with 7.5 users daily. Ghedin, G stated (2013) that Russian mostly operate on VKontakte and Facebook and less on Twitter, Odnoklassniki, LiveJournal. Instagram and Pinterest are not ready for these social networks yet in Russia. However, even Facebook usage is in the third by social network users registered in Facebook yet, only 0.7 million loyal users. Of which those who often travel abroad or having frequent contact with people from abroad tend to be the users of Facebook and in most cases these people often have both Facebook and VKontakte user account. To conclude, Facebook is widely approved in worldwide but Russia seemingly prefer their own social media websites. Odnoklassniki.ru is targeted for older age users that it won’t fit to Base’s target customers. Therefore, VKontakte is the most important communication tool to attract customers. Base is promoting the products on the VKontakte and it is time and cost saving activity. With the competitions posted on VKontakte Base takes advantage of promoting the brand in a timely manner. Through the tutorial videos base can attract more new customers.
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Mobile Marketing Mobile applications are highly significant development in mobile communication. The total number of internet users via mobile phone has grown by 42 percent in the last two years in Russia. In total 36 million people use mobile internet and the highest use of internet recorded between ages of 18 and 24. Furthermore, in Moscow 56% of all population possess smartphones and analysts expect that it will increase by 29% in 2013. Therefore, downloads of mobile application also tend to increase parallel to number of smartphone users. Base is exhausting Viber, WhatsApp mobile applications as a platform for Base marketing campaign.
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Instant Messaging Instant messaging applications are simple messaging services that push contents through a mobile device’s data connections. Viber and WhatsApp are both apps that purpose to provide free communication between you and other smart phone users, without any difficulty of manually adding contacts. WhatsApp and Viber are both online messaging application and Viber is specific because it is being able to make phone calls without any charges, the person only needs a Wi-Fi or internet connection to the mobile device. WhatsApp has currently 450 million active users, of which 72% are the daily active users in worldwide (Fast Take news brief 2014). Viber has 100 million active users. Activities Goods can be ordered through WhatsApp and Viber. Thus, this enables customers to customize the products such as requesting their names to be printed on the tags and the consumers can also customize the product such as tag the name on the clothing they order. According to the Cole, D (2014), Burberry sought to do a different strategy than their competitors so using WeChat for their Autumn Winter 2014 show, allowed consumers to receive personalized images from the brand with their name on it. As a result, the messaging giant that boats over 300 million users. Base is circulating promotion illustrations, sale discounts, sale coupon vouchers, and sending greetings during the public holidays in Russia. (Base send images of the latest products or information to create excitement and interest and send discount to our loyal customers based on their buying habits. Furthermore, Base is working with live music bands to organise in store social events. Therefore, we use WhatsApp and Viber to send invitations of these events to our loyal customers.
Critical Judgment In Russia nearly 70% of all population use instant messaging on the smartphones, of which 50% regularly habit WhatsApp and 35% use Viber ages between 14 and 35. Furthermore, there are also in Top 10 applications in Moscow. Therefore, Base is implementing this strategy to communicate effectively to our loyalty customers. In addition, Telephone call tariff is relatively high in Russia thus, people prefer to use inexpensive method of making phone calls to place an order. Hence, it is important to implement strategy through Snapchat, because it enables our customers to contact directly to our operators and ask questions using their illustrations such as sending photos of their wanted products. For example, some people have seen the products from other people wearing it or seen on internet yet, it was difficult to find it on website or it is out of stock. Therefore, customers can send the picture by using Viber and WhatsApp to Base to ask more information about products and even place an order straight away. It is the fastest way to integrate with our consumers. Furthermore, this is the easiest way to integrate with loyal customers and understand them.
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QR Codes QR stands for Quick Response. QR codes are barcodes published in newspapers or billboards which can be scanned by a mobile phone camera and then it gives a link to direct to a website. QR codes can be used in promotional initiatives to allow target consumers to have quick access to a variety of information. Base is using QR code in many ways. Firstly, our brand introduces eco-labeling. These labels are made to inform customers about where the product is manufactured, what material is used, and an eco-label rating. Customers are able to scan QR codes that are provided on the eco-label to see the above information. Secondly, Base is bringing their online shops to the offline word using QR codes. For instance, Base plan to post printed photos of advertising our range of products on the walls of underground stations in Russia. These advertising photos will be modeled by Russian live music band celebrities. Thus, any person who has an interest to buy the clothes can then be able to just quickly scan the QR code to place an order of the product.
Critical Judgment A popular attack via QR code took place in Russia. For instance, Venice Architecture Biennale is covered in QR codes in Moscow in 2012, thus it is best way to introduce QR code in Russian Market. Russia metro in Moscow is the second world’s busiest subway with 2.4 billion annual rides and 6.6 million people daily ride beneath Moscow (Richard, K 2014). Therefore, it is beneficial to Base and easy to implement this marketing strategy. Furthermore, it makes the ordering system much easy and time saving.
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Viral Marketing Viral marketing is consumer-driven marketing as opposed to traditional interruption marketing that is controlled and driven by the marketer. Today the development of online social network helps dynamic expansion of viral marketing, and it seems inevitable for marketers to use this for accelerating word-of-mouth effects (Howard, 2005). The next digital activity that Base is launching is a viral marketing campaign “Let me take a selfie�. It is important for our brand awareness and to make consumers aware of the products and maximize web 2 of VKontakte and usage of QR code.
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“Let me take a selfie”- campaign competition As social networks started being hit media, the number of people share self-portrait is increasing. A search on photo sharing appMETRO Instagram retrieves over 23AND millionTAKE photos SELFIE uploaded with the hashtag FIND ME AT THE STATIONS WITH ME (#) selfie, and a whopping 51 million with the hashtag (#) me.(BBC, 2013). Furthermore, according to COLLECT ALL THE PICTURES Time magazine in 2012, selfie was considered one of the "top 10 buzzwords" of the year. Hence, Base is AND using this buzz word to find the letters on the underground advertising posts and make the consumers complete a sentence of “LET ME TAKE A SELFIE”. The task is to find an appropriate QR code which is containing each letter and to complete the whole sentence. There are 194 stations in Moscow subway that 16 station will have each letters. As we before mentioned that Base is planning to post printed photo of advertising on the wall of underground stations in Russia. Therefore, the middle of post, there (10.08.2014-24.08.2014) is a man wearing letter t-shirt picture which the people need to take selfie with that picture and collectMore Infomartions ing the sentence of “Let me take a selfie”. However, any letter which is repeated in the sentence have the DON’T FORGET HASHTAG THE PHOTO ON BASE distinctive posts and colors which is distinguishing them from each other. Hence, anyone who tries to VKONTAKTE OR post SEND VIBER take a selfie with a same twiceWHATSAPP does not qualify.AND For example, “LET’s” ‘E’ is white color t-shirt, but LET ME WHO TAKE THE have BEST SELFIE WITH MEVKontakte. The winners will “ME’s” ‘E’ is SEE red. Competition participants to post their selfies on the get chance to win 30 thousand rubles with Base products. The campaign will continue for 3 weeks. As www.base.ru a result of this campaign, Base is seeking to boost the brand awareness around our target customers. +7(925)801-85-85 https://vk.com/base In conclusion, Base’s target consumers are interested in finding only the winning trend and they often use technologies to find something new. Therefore, Base need to walk with same step with consumers and integrate with the fastest as we can. Base uses websites and mobile applications to successfully implement our strategy because our targeted customers comfortably use them with the excitement of participating such interesting competitions. 13
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WIN THE PRIZE 30000 руб plus BASE new collection
Action Furthermore, all digital marketing tools are controlled by the brand’s digital marketing team in Russia and this team closely communicate with in house digital marketing department. Furthermore, the team will actively work in 6 months to reach the objectives.
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Control Base monitors the performance and success of the digital marketing strategy in several ways. Firstly, VKontakte enables us to see how many users have liked our web page and how many followers we have on our group page. All these controlling activities can give a real time outcomes without any much effort and it is cost saving and time saving. Secondly, for the WhatsApp and Viber we can collect contacts of our customers and can run a test on their buying behavior. Thus, Base can effectively improve the strategy in no time to adjust to the dynamic market. Furthermore, Base is giving an additional information about customer satisfaction survey on the back of the each receipts for the customers. This survey will have a winner’s prize draw. Customer satisfaction surveys are also sent by instant message and social media. Thus, Base can always modify the strategy and increase the succession rate of the strategy as well as adopting effective customer management.
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Appendex A Russian Social Networks in Numbers
Appendex D Market of mobile devices and platforms in Russia
Appendex B vKontakte reach new record in daily visits
Appendex E Growth of mobile internet
Appendex C smartphone userage in Russia Appendex F Russian Mobile internet users- age distribution
References
Oshkalo, A (2013) Available at: http://www.russiansearchtips.com/2013/08/smartphones-in-russia-numbersand-facts/ http://www.russiansearchtips.com/tag/russian-social-media/ 15
References
Chaffey, D(2012).Digital Marketing.(5th edition). Essex: Pearson Education. Zorpas, M(2014). The Future of Fashion: A Business Perspective. ARTD2040. Available at: Blackboard. Beechler,D (2014). What the WhatsApp and Mobile Messaging Feeding Frenzy Mean for Marketers. Available at: http://socialmediatoday.com/drewbeechler/2201156/what-whatsapp-and-mobile-messagingfeeding-frenzy-mean-marketers [Accessed 15 May 2014]. BBC News Magazine (2013). Self-portraits and social media: The rise of the 'selfie'. Available at:http:// www.bbc.co.uk/news/magazine-22511650. [Accessed 15 May 2014]. Cole,D(2014).Burberry Customizes Fashion Show to Fans Through WeChat. Available at: http://www. advertisingaphasia.com/burberry-customizes-fashion-show-fans-wechat/ . [Accessed 15 May 2014]. Ghedin,G (2011). Social media in Russia: why is Vkontakte better than Facebook?. Available at: http://www.digitalintheround.com/social-media-russia-vkontatke/ [Accessed 15 May 2014]. Ghedin,G (2013).Marketing on Vkontakte: how to engage the Russian audience. Available at: http://www. digitalintheround.com/vkontakte-marketing/ . [Accessed 15 May 2014]. Ghedin,G (2013).Social media marketing in Russia: Facebook vs. Vkontakte. Available at: http://www. digitalintheround.com/social-media-russia-facebook-vkontakte/ . [Accessed 15 May 2014]. Johnston,B (2013). Six effective ways to use QR codes. Available at: http://www.idealog.co.nz/businessplan/six-effective-ways-use-qr-codes [Accessed 15 May 2014]. Oshkalo,A (2013).Smartphones in Russia – Numbers and facts. Available at:http://www.russiansearchtips. com/tag/mobile/. [Accessed 15 May 2014]. Oshkalo,A (2012). Russian Mobile Internet Usage Had Doubled During 2011. Available at: http://www. russiansearchtips.com/2012/04/russian-mobile-internet-usage-had-doubled-during-2011/. [Accessed 15 May 2014]. Oshkalo,A (2013).Russian Social Networks in Numbers. Available at: http://www.russiansearchtips. com/2013/01/russian-social-networks-in-numbers/ . [Accessed 15 May 2014]. Oshkalo,A (2012).82% Of Russians Use Social Networks – Go Get Them!. Available at: http://www.russiansearchtips.com/2012/02/82-of-russians-use-social-networks-go-get-them/. [Accessed 15 May 2014].
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References Oy,V,W (2013).Planning on online marketing strategy in Russia.HAMK University of Applied Sciences. Available at:https://www.theseus.fi/bitstream/handle/10024/66522/Victoria%20Shishkova%20 FINAL%20THESIS.pdf?sequence=1 [Accessed 15 May 2014]. Pankin,A(2011).Mapping Digital Media: Russia. Country Report. Available at: http://www.opensocietyfoundations.org/sites/default/files/mapping-digital-media-russia-20130610.pdf. [Accessed 15 May 2014]. Richard,K,S(2014).Busiest Subways The World’s Busiest Subway Systems in Major Cities. Available at: http://geography.about.com/od/urbaneconomicgeography/a/Busiest-Subways.htm. [Accessed 15 May 2014]. Schneiss,K (2014). But first, let me take a selfie!. Available at: http://www.theracquet.net/viewpoint/ but-first-let-me-take-a-selfie-1.3161456#.U3Kfz1yVhlJ. [Accessed 15 May 2014]. Tommy,T(2012). How to develop a killer marketing plan, methods used, general rules, six key steps, business models and samples.Available at:http://tommytoy.typepad.com/tommy-toy-pbt-consultin/2012/02/a-marketing-plan-should-be-a-written-document-not-scratchings-on-a-cocktail-napkinor-recalled-from-memory-to-take-your-bus.html [Accessed 15 May 2014]
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Base Clothing UK
Base.
www.base.co.uk 4
Base Clothing UK НАЙТИ МЕНЯ НА СТАНЦИИ И ПРИНЯТЬ SELFIE СО МНОЙ Base. СОБИРАТЬ ВСЕ ФОТОГРАФИИ И Выиграть приз
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ks e te l k i i t FIND ME AT THE METRO STATIONS AND TAKE SELFIE WITH ME COLLECT ALL THE PICTURES AND
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WIN THE PRIZE 30000 руб plus BASE new collection (10.08.2014-24.08.2014)
DON’T FORGET HASHTAG THE PHOTO ON BASE VKONTAKTE OR SEND WHATSAPP AND VIBER LET ME SEE WHO TAKE THE BEST SELFIE WITH ME +7(925)801-85-85
www.base.ru https://vk.com/base
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